Marketing mix

The term "marketing mix" was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concepts are explained in most marketing textbooks and classes.

Four P's

Elements of the marketing mix are often referred to as 'the four Ps':

* Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration.

* Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

* Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place is not exactly a physical store where it is available Place is nothing but how the product takes place or create image in the mind of customers. It depends upon the perception of customers.

* Promotion- Represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations

A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, placement, promotion) of marketing management.

Product → Solution Promotion → InformationPrice → ValuePlace → Access

If any of the 4Ps had a problem or were not there in the marketing factor of the business, the business could be in trouble and so other companies may appear in the surroundings of the company, so the consumer demand on its products will become less.

Britannia Bourbon.

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces.

As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It was equally recognized for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In

recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Product: - A product is any offering that can satisfy a need or want. The major types of basic offerings are goods, services, experiences, events, places, properties, organizations, information and ideas. The company gives more importance in quality, packaging, services etc. to satisfy the customers. The product has its life cycle. The product strategies are modified in different stagesof product life cycle.

Britannia has made the Bourbon biscuit by copying the version made in England. A Bourbon biscuit is two rectangular pieces of chocolate biscuits on either side of oval chocolate goo which never spills.

Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits, topped with sugar crystals - presenting, the original Bourbon, from the house of Britannia.

India's first and favorite Bourbon's sweet adventure began in 1955. Since then, Bourbon lovers across the country have been caught opening this chocolate couplet, licking the cream, and nibbling at the melt-in-your-mouth biscuit, bit by bit. Some have been witnessed chomping it whole, at one go. Some have been noted to alternate it with sips of coffee; others team it with lots of gossip and gupshup, while a few have been observed enjoying it with a book. And some have been seen reluctantly sharing their Bourbon.

Whatever the occasion, wherever the hangout, Bourbon makes for great company. You can grab your very own Nano Pack or a Pocket Pack. The Hangout Pack is just right for chilling with friends. Take along a Party Pack for... yes, a party! And the Gift Pack will surely win you a few brownie points!

So go on, give yourself a happy high with a quick dose of Britannia Bourbon!

Price:-

Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product.

Pricing strategy:- Britannia Bourbon will now sell Bourbon in Rs5 packs. Britannia plans to make all of these biscuits available even at small tea shops. Commenting on the biscuit maker’s

new strategy, Harish Bijoor, chief executive of Harish Bijoor Consults Inc., said: “This strategy can contribute to large volumes, especially from rural areas. Since such packs are affordable, consumers get an opportunity to buy impulsively. I expect this move to contribute in excess of 15% of Britannia’s revenues in the first year alone.”

List of packets as per price:-

Britannia Bourbon has several types of packet as per consumer’s requirement. The different type of packet names are given below:-

Nano pack. Party pack. Hangout pack. Gift pack. Pocket pack.

All the packets belongs to different ranges. In this way company has increases it’s scope.

Discount:-

Like any other company Britannia Bourbon have festive offers, seasonal offers.

Place:-

While modest sales growth is of concern, a higher contribution from new product lines could boost growth rates for Britannia over a two-three-year period. This could be one of the reasons for the sustained market fancy for the Britannia Industries stock in the recent times.

Improvements in the operating profit margins have helped boost profit growth rate. Britannia's OPM in 1999-2000 first half improved to 8.9 per cent from 8 per cent. This has come mainly from savings in raw material costs. In 2000-01 first half, the proportion of raw/packaging materials to sales was 38 per cent, substantially lower than 42 per cent in the corresponding previous period.

Britannia's strategy of outsourcing manufacture could account for part of the gains. However, the softening of wheat flour prices in the latest quarter, due to comfortable supplies, are also likely to have helped. Similarly, staff costs, as a proportion of sales, fell from 6.9 per cent in 1999-2000 first half to 6.5 per cent in the same period of 2000-01. The company appears to have streamlined its workforce over the past year. Employee separation costs rose to Rs 1.10 crore in the first half of 2000-01 from Rs 0.3 crore in 1999-2000.

From a long-term standpoint, biscuits, which remain the key revenue-drivers for Britannia, offer potential for improvement in growth rates through higher category penetration. While the premium end of the market has seen a flood of new entrants, including several multinational brands, Britannia, with its established distribution network, appears to be in a better position to capitalise on the growth in the mass market. The success of Britannia's mass market brand -- Tiger -- is evidence of this.

In the modern world, the concept of brand has undergone changes in meaning and essence. The concept of brand means to identify the potential customers and send them the correct company message at the correct time. This is the essence of promoting the brand of the company. Many people confuse brand with the name of the company. Others think the company logo promotes the brand image of the company and so logo is the brand. However, logo and company name play vital role in promoting the brand.

What is brand?

Brand refers to the idea that the customers and the public have in their minds about the company. In other words, brand encapsulates the associations, symbols and experiences of the public with a company. For example, you have had a bad experience with a particular bank. You will perceive that bank as the one delivering poor and unreliable services. You may never visit the bank for any further services. This thought of yours project the brand identity or business identity of the bank. On the other hand, you have had good experience with the products of the woolen manufacturing company. You would perceive the company as reliable that delivers good products. This perception of yours becomes the brand of the company.

How essential is brand promotion for the company?

To establish the positive brand image is essential and beneficial for any company. It helps in promoting the business of the company. An entrepreneur can generate maximum profits for the organization. It also enables the entrepreneur to retain the customers for longer time. This is feasible by creating an everlasting and positive impression on the mind of the customers. A marketer cannot prevent people from thinking anything about his company. However, he can certainly motivate them from thinking positive about the company. Therefore, the brand building and promotion are vital for an organization.

Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision. Promotion is the one of the major aspects in marketing strategies. By adopting various promotional activities the company create strong brand image. It also helps in increasing the brand awareness. It includesadvertising, sales promotions and public relations etc.

The following are two types of Promotion:

Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet, Mobile Phones, and, historically, illustrated songs) in which the advertiser pays an advertising agency to place the ad

Below the line promotion: All other promotion. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

Bourbon: The sweet taste of deception (Tempting the Youth)

Britannia Bourbon has finally taken to television, with its first ever commercial after 55 years in India. afaqs! digs into the many firsts for the brand in this communication attempt.

For a biscuit brand that has abstained from advertising in the 55 years of its presence in India, Bourbon has done a good job of making inroads into Indian homes. Betting on its affinity with consumers built by a product story, it probably found no reason good enough to advertise so far. Now, the brand makes its first concerted foray on television.

What it is like for the brand to go on a mass medium such as television for the first time and its direct focus on the youth, in spite of being a sweet bite for all members of the household.

The creative 'bite'

The TV commercial opens on a girl ringing the doorbell outside her boyfriend's house. As he opens the door, she excitedly shows him the DVDs she bought for what she assumes will be a cosy night for the two of them. A look from the corner of her eye tells her that he's spending the evening with his friends watching a match. Grumpily, she enters the house.

The girl takes a seat at the dining table, where she catches sight of a packet of Bourbon. She picks up a biscuit and the first bite gives her an idea – she begins to moan sensually in order to grab the attention of the males around. With each bite, her moans get louder, while the men eye her with lust.

Disgusted, the boyfriend kicks his friends out of his house, spelling sweet victory for her. The girl asks innocently, "Tere dost kyun chale gaye? (Why did your friends leave?)". The film closes on the voiceover 'Baahar se kuchch, andar se kuchch aur (Something on the outside, something else on the inside).

Small pack’s in Jar - Britannia marketing strategy

Its common sight now a retailer keeping small packs of biscuit in Jar similar to toffees and other confectionery. Britannia as well as Parle s biscuits are now available in Jars and products priced in the range of Rs 2/- Rs5/-.

Britannia's Bourbon , Cream treat , Good day and Tiger glucose are now available in small packs .These packs have 4- 6 biscuit a pack which is sufficient for one time serving for people .

Small Packs In Jar strategy is working for Britannia and is now Rs 250/- - Rs 300/ crore - business annually. These kinds of pack are hit in categories like teens and kids primarily. It provides an option for the consumer to buy biscuits in ready -to-eat-on-move as the present 16- 17 biscuit a pack concept is meant for family or group of friends.

COST REDUCTION IDEAS that would boost profits cut losses and improve productivity of the manufacturing unit whether Big, Medium or Small. Ideas which are easy to understand & Implement. Each idea has potential of saving upto 20-30%.

What is cost reduction

Cost reduction can be achieved through reduction, elimination, manufacturing activity.thorough analysis the best and least cost path is adopted for each activity. The best method to

thorough analysis the best and least cost path is adopted for each activity. The best method to achieve results are to bench mark operating parameters to world class companies .This drives every One to match or even surpass these figures.

The major parameters for any manufacturing unit

o cost per unit ($/unit)

o man-hours/unit

o units produced/unit time

o break down time (%)

o change over time ( min/hrs )

o waste (%)

o defectives (%)

o fuel consumption (k therms/unit)

o electricity consumption (kwh/unit)

o water consumption ( kltrs /unit )

o inventory turnover ( %)

o lead time (min/hrs / days)

Why cost reduction

o profits

o waste reduction

o increase productivity

o competition

o resource conservation

o image enhancement

Where to implement cost reduction

Areas for cost reduction are

o raw material procurement

o logistics - inbound and outbound

o production ( process ,time and work study,maintenance ,automation)

o energy

o human resource ( out sourcing )

o sales & marketing

o finance

How ?

In today’s competitive world Corporate and businesses are struggling to maintain profits and  healthy bottom lines .Cost of  production ,fuel, raw material and human resources is rising each year. These developments has prompted people to look for Cost reduction Ideas &methods. Those who have opted for focused cost reduction strategies have survived those who could not managed have perished .In recent economic down turn it becomes more important to make  cost reduction program a major initiative in  industry .Companies  are finding it difficult to retain people and are laying off people which is un precedented in recent history of  industrial recession .Companies have to develop its own cost reduction program for savings  without cutting jobs .

Britannia eyeing niche segments for growth BRITANNIA Industries Ltd is working out a product strategy aimed at capturing various niches of the snacking segment.

For one, the company is bullish about the "on-the-go" segment and is planning to roll out smaller packs under its major sub-brands. It would be gradually expanding its `ticki-packs' (packs of two or four biscuits) concept across its product range.

"The market today is heterogeneous; hence, we need to adopt a segmented approach to reach out to consumers," said Ms Vinita Bali, CEO.

The market has moved into a "consumption-oriented phase" which she describes as "lot more people with more money to spend on newer products."

Speaking about the "on-the-go" segment, Mr Neeraj Chandra, Marketing Head, said: "It is priced in Rs 1 to Rs 5 range. We hope to bring in our key brands under this packaging. "On-the-go" is not just about packaging, it is also about availability in different variants and distribution."

Another niche segment the company has identified as a potential growth driver is `in-between-meals snacking', and it would soon be rolling out more products to address this category.

The company has in the past launched products targeted at the "occasion-based" (such as Diwali greetings gift packs, etc) segment.

Meanwhile, it is currently test marketing newer products, which may be taken national subsequently.

These include cup cakes in Kolkata, Marie Gold Doubles in Chennai, and Mozzarella cheese in Mumbai.

It introduced Marie Gold Doubles with the `biscuit within a biscuit' catchline in Chennai and plans a phased launch in the rest of the country.

Higher aroma ghee too is being marketed only in the South. "We are testing out our hypothesis in probable markets. In fact, we may even choose to localize the availability of our products within a city," said Mr. Anupam Datta, head of the company's dairy business.

Last year, Britannia launched a health drink called Anlene in Kolkata and Chennai and is currently testing the "marketing mix" for the product.

"Britannia is lot more than just biscuits. Our other segments - bread, cakes, rusks and dairy - are doing equally well," Ms Bali said.