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Transcript of Marketing Strategies
Marketing Strategies of Automobile and FMCG Industries.By Athif Ismail, Nizamuddin andFaisal Ahmed Khan,1st Sem-MBA,HKBK-CE.
Purpose/Objectives of Marketing strategies:Marketing strategies are used to achieve meaningful and measurable results in the market.
Marketing strategy involves careful and precise scanning of the internal and external environments.Internal environmental factors include the marketing mix and performance analysis. External environmental factors include customer analysis,competitor analysis,target marketanalysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.
Marketing strategyis the goal of increasing sales and achieving a sustainablecompetitive advantage. Marketing strategy is the key ingredient to the success of marketing plansand marketing.Marketing strategies used in FMCG Industry: About FMCG:Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items.Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial.Companies may follow the following marketing strategies:
1.Multibrand Strategy:A company often nurtures a number of brands in the same category. There are various motives for doing this.The main rationale behind this strategy is to capture as much of the market share as possible by trying to cover as many segments as possible, as it is not possible for one brand to cater to the entire market.This also enables the company to lock up more distributer shelf space.Example : Hindustan Lever . It has Dove in the ultra premium segment, Lifebuoy for the economy segment and brands like Rexona, Liril, Lux, Le Sancy for the intervening segment.
2.Product Flanking:Refers to the introduction of different combinations of products at different prices, to cover as many market segments as possible.It is basically offering the same product in different sizes and price combinations to tap diverse market opportunities.The idea behind this concept is to flank the core product by offering different variations of size and price so that the consumer finds some brand to choose from.Example: Vicks the cough and cold relieving medicine is now available in small containers and also as inhalers, cough drops and cough syrups.
3.Brand Extensions:Companies make brand extensions in the hope that the extensions will be able to ride on the equity of successful brands, and that the new brand will stand in its own right in the course of time.A well respected brand name gives the new product instant recognition and easier acceptance.It enables the company to enter new product categories more easily.Example: Amul. With the success of its first product, Amul milk powder, the company came out with Amul ghee, Amul butter, Amul cheese, Cheese spread, and finally added Amul chocolates to its portfolio.
4.Building Product Lines:Some companies add related new product lines to give the consumer all the products he/she would like to buy under one umbrella.Example: Britannia has adopted a similar marketing strategy. It has introduced different kinds of biscuits and baked foods in the past few years. By adding a number of flavours in each product line the company grew in the industry.
5.New Product Development:A company can add new products through the acquisition of other companies or by devoting ones own efforts on new product development. With the help of new products a company can enter a growing market for the first time, and supplement its existing product lines.Example: Dove by HUL is an example of creating an entirely new premium segment. For the first time in India, a soap with One-fourth moisturiser was offered to the consumer.It has been positioned for the super premium segment as a skin care product not as a soap.
6.Innovations in Core Products:In the FMCG market, the life of a product is short.Marketers continually try to introduce new brands to offer something new and meet the changing requirements of customer.It is prudent for a marketer to innovate from time to time both by technological expertise as well as from the consumers or dealers feedback.Such innovations are tried out around the core products of a company.
7.Wide distribution network:A very simple way of increasing FMCG companys market share is by developing a strong distribution network, preferably in terms of more locations.An extensive distribution system can be developed over time, or the company many acquire another company which has an extensive distribution network.Example: Brooke Bond, Asian Paints, Hindustan Lever, Union Carbide have developed a good distribution network.8.Monitoring the pulse of the consumers:Companies spend considerable effort to find out the what, where, how and when of their consumers.Well known companies frequently undertake marketing research to find out more about their consumers and how to satisfy their needs and wants in a better manner. It helps them to monitor the pulse of their buyers.Example: We may cite here the famous Marketing Research about instant coffee.
9.Advertising and Media coverage:Advertising is required to build awareness about an FMCG or brand which is available in the market but not many people might know about it.Informative advertising figures heavily in the pioneering stage of a product category, where the objective is to build primary demand.Persuasive advertising becomes important in the competitive stage where the objective is to build a selective demand for a particular brand.Reminder advertising is quite common with mature products.Example: Expensive four colour Coca-Cola ads in magazines tries to remind people to purchase it.
10.Sales promotion:Sales promotions offer a direct incentive to buy more in the short term.They are designed to stimulate quicker and/or greater purchase of particular products by consumers or the trade.Example : Pepsi has been doing a large amount of promotions since the time it entered India. Pepsi cassettes and T-shirts have been offered to young people all over the country.
Marketing strategies used in Automobile Industry by Bajaj:The Bajaj Group is amongst the top 10 business houses in India.Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.
Marketing strategies used in FMCG Industry:
Introduction of Bajaj Pulsar in the Indian Market:Developed by Bajaj Auto in association with designer Glynn Kerr Tokyo R&D, Pulsar was first launched on November 24, 2001. At that time, the Indian two-wheeler industry was populated by 80-100cc bikes with less power capacity. Bajaj had expected Pulsar to attract young power biking lovers of the country. The whole project cost Rs 100 crores (Rs 1 billion).
Product:Born as the Fastest Indian bike, the Pulsar 220F is a performance machine for the true enthusiasts. Its powerful 4 stroke, 220 ccDTS-i engine delivers 21Ps/bhp power and a healthy 19 Nm torque, making it the most powerful bike in its category. Designed for speed and performance, the Pulsar 220 is perfect for dragging in a straight dash or handling corners.It is a great bike for people looking for power and a comfortable ride on the Indian roads. It provides an easy top gear riding experience with less gear changes and instant pick up in any gear.
Place:For Bajaj Auto, the supply chain encompasses the process from vendors to the final customers via manufacturing. Therefore, the companys supply chain involves as much the vendors and the procurement to payment logistics, as it does the manufacturing to selling processes, or the order to cash system.
Price:The price of Bajaj Pulsar 220F depends on the city. For Karnataka, Ex Showroom price is 82k whereas the On Road price is 90,000 (Approx.)Bajaj Pulsar is one of the premier segment bikes which is reflected by its pricing. In the near future the price of Pulsar is bound to increase because of the pressure on profit margin of the company.
Promotion:Bajajs dealers had been selling scooters; they had little idea how to sell motorcycles. So the entire dealership network was trained to sell motorcycles.The introduction of Pulsar was executed with a completely different approach and a Definitely Male positioning. Bajaj kept coming up with better products like the Pulsar 180cc, then the Pulsar DTSi followed by the 200cc and 220cc Pulsars.The concept of Definitely Male was well accepted by the people and Bajaj came out with some astonishing ads. Though the DTSi technology was new, people accepted it very well. It easily conveyed the message it wanted to. In 2004, Bajaj completely revamped its identity, gave up the Humara Bajaj umbrella and came up with a completely new enhanced positioning focusing more on the technology and experience.With a new, sharp brand logo, Bajaj pressed itself as Digital Biking and Distinctly Ahead.The company has been regularly making alterations to it to make the motorbike look fresh at all times.Promotion Contd.Pulsar Mania - An advertisement showing some bikers performing various stunts on their Pulsar. An attempt to position itself as Indias true sports bike.MTV Stunt Mania After the success of Pulsar amongst stunt bikers, Bajaj decided to take a step forward by creatin