Structure of the Marketing Department

8/3/2019 Structure of the Marketing Department

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Functions of the Marketing department

Segmentation

Mitchells segments its products on the socio economic classes focusing on- A, B+ and B.

Target Marketing Strategy

Target market is the set of people whom company target to sell there product. Mitchells target

children, house wives, and families and try to develop there promotional campaign according to

this. As they had the first mover advantage they utilized it fully and initially promoted its

products through newspapers, posters radio channels. But they mainly invested there resources inbuilding there corporate image.

Marketing Mix

Marketing mix is defined as the set of controllable tactical marketing tools that the firm blends

to produce the response it wants in the target market.

The marketing mix is also known as the Four Ps: Product, Price, Place and Promotion.

Product

Product is anything that can be offered to a market for attention, acquisition, use, or

consumption and that might satisfy a want or a need.

Quality Standard:

Keeping in view there customer health Mitchells has a special quality control department which

is also working to enhance and maintain the quality of its products. Different quality tests are

taken while producing all products to assure the quality. Complete hygiene environment is create

within manufacturing area of Mitchells which makes its products completely safe and healthy

product.


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PRODUCT IMAGE:

Mitchells is enjoying more then 38 percent market share against its competitor which tells the

story of Mitchells products image in market.

Price:

Price is the value that customers give up or exchange to obtain a desired product.

This is the most important factor considered while talking about the marketing mix. How

Mitchells price there products this is as follow:

Pricing strategy:

When company starts producing its product they use penetrating strategy keeping in view the

competition. This is because to attain most market share. Now company is still following same

strategy to retain market share.

Pricing product:

Right price to product is very difficult. Price plays very important role in the sale of any product.

So this is one of the major issues. Mitchells are following quality based pricing out of survival,

profit maximizing, and market share leader pricing. This is because Mitchells is market leader

now and they are now just focusing only on the quality of the products so they price according to

the quality of the product.

Geographical price adjustment:

Price of the Mitchells remains the same within the Pakistan. There is not price adjustment

within Pakistan.

Competitor pricing:


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Usually price is based on the quality of the product but it may vary in some case like if

competitor reduce the price there is the policy of the Mitchells that the also reduce the price to

stay in competition. Other wise price is only quality based.

Factor consideration while setting prices:

There are some factors keep under consideration while setting the price of the product some

them are:

1. Consumer buying power.2. Cost of the product3. Pricing strategy4. Advertisement cost.

There are some of the factors which are considered while setting the price of Mitchells.

Advertisement cost is one which is not often considered because advertisement varied on

different stages. So this is one which is least considered.

Distribution channels:

A set of interdependent organizations (intermediaries) involved in the process of making a

product or service available for use or consumption by the consumer or business user.

About the Mitchells they are also using different distribution strategies to make there products

available to every consumer. The information about Mitchells distribution strategy and channel

are as fellows:

Product type:

Product type means that company rate there product on the bases of final consumer. There are

different types of product which are as fellows:


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1. Confectionary products2. Grocery product

These are two types of the products. According to company they place their products as

convenience product this is one which easily available with low cost and customer need not to go

different stores to only for the better product.

Nature of distribution:

There are two distribution channels which are:

1. Direct channel.2. Indirect channel.

Mitchells is involved in indirect distribution channel. They are following this method:

Production Intermediaries retailers Final consumer

This is the distribution channels Mitchells is using to make there product available to every one.

Distribution policy:

There are also three types of distribution policies which are as fellows:

1. Intensive.2. Selective.3. Exclusive.

Intensive distribution means place product to every store and try to address each and every

consumer. Selective means few well known general stores or departmental store are used to

appeal people to there product.


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Mitchells is using intensive distribution along with selective distribution. It is because they are

try to appeal as many people as possible and through this technique they are being able to

address the most number of people.

Modes for distribution:

There are number of distribution mode like use tracks, rails, air planes, and pipes. But the

company is not involved in any of these. Company is only responsible to send the product to

intermediaries which are then take products to retailer. Company is just do only that they paint

the transmission mode like trucks which the theme of the company which show the product on

the trucks. Modes are also set keeping in keep these things which are fellows:

1. speed2. Dependability3. Availability4. Costs5. other

Promotion:

Promotion is to promote product through advertisement and some other factors. It not only

included advertisement but also setting target market studying there requirements and develop

product accordingly. What are the promotional activity using by Mitchells and how they use

them are as fellow:

Promotional strategy:

In the beginning the company is use push strategy to increase sales by setting low price try to

penetrate but by the time begin the strategy is changed to pull. It is because company now is

being able to attain the greater percentage of sales and now they are just considering to only

retaining this position now.


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Promotional Activities:

To promote the sale of the Mitchells company is involve in number of activities which are using

ads on TVs placing bill boards and with arrange some sort of concerts and public related

activities like health related programs.


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Modes for Advertisement:

Company uses different modes of advertisement to make there message to reach to every one.

Advertisement modes include TV channels, news papers, bill boards, health and safety programs

and by publishing different health and safety related magazines. All these are use to make sure

that they can address all the people they are targeting to. TV channels include all the local most

famous and often watched channels and same is the case of the news papers. Company called

these advertisement modes above the line and below the line. Above the line include TV

channels, cable networks, and exhibition. And below the line contain health and safety programs

and all that magazines.


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Structure of Sales Department

Department Hierarchy:

Number of Employees Working In the Sales Department:

Permanent employees working in sales department about 187

Sales operations:

Mitchells is working properly in its sales operation around the Pakistan. All the sales of the

Pakistan are handled by the national sales manager (NSM) from the head office. Mitchells has 3

major sales offices in the different regions i.e. south, north, and central. Sales offices work

according to sales strategy made by the head office. Regional Offices under the supervision of

National sales office, continually work on its sales strategy, its design, planning and execution to

get the desire results. Mitchells offers some time different packages for the customers to

enhance the sales of its products. Some time these offers may differ from region to region on the

basis of sales. National sales office measurement the results of sales data sent by the regional

Sales Department (Head Office)

NSM

(National Sales Manager)

Regional Sales Office

(Central)

RSM

(Regional Sales Manager)


(North)

RSM



(South)

RSM


Regional Sales Office(Central)

ASM

(Assistant Sales Manager)

Regional Sales Office(North)

ASM


Regional Sales Office(South)

ASM



(Central)

Low-Level Mangers

Other Staff


(North)

Low-Level Mangers

Other Staff


(South)

Low-Level Mangers

Other Staff


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offices and decide the compensations, or quota for different regions to encourage the customers

to purchase more Mitchells products. Sales department ensures the availability of the products

in target market. Some time sales department give some special targets to the regional sales

offices to enhance the sales and gives reward to those who meet the challenges. Mitchells is

working well on its sales operations under considering the demographic situation of different

regions. Mitchells also offers sales programs to make better its sales operations.

Functions of the Sales Department

Sales Methodology:

Mitchells uses simple price for its all products. Mitchells charges those prices which are

challenging for its competitors. But in price matter, Mitchells do not compromise on the quality

of the products to compete its competitors. There is only one price around the country for every

customer without discrimination of area whatever it is rural, urban, or the remotest area of the

country.

Type of Selling:

Mitchells sells its products to its final customers through its intermediaries. There is no direct,

door to door, or personal selling in Mitchells. All the sales are done through its sales

distributors. At some other level like famous hotels, restaurants, club, Mitchells sells its

products directly.

Sales Returns Procedures:

Mitchells take back its those products which proved bad, un-hygiene etc. through its

intermediaries. Mitchells takes responsibility if any of the products found bad.


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Critical Analysis:

If we look at the mission statement of the Mitchells,we will find that Mitchells enters in the

market with the aim of to serve quality product to the customer, attracting and retaining

outstanding people, with promise to enhance its services to the customers. To be a company

which combines its people, technology, management systems, and market opportunities to

achieve profitable growth while providing fair returns to its investors. As far as I learned

Mitchells is working and striving for getting upon its mission and vision statement. It is also

known to us that Mitchells is getting the biggest market share in Pakistan. But there is a need of

more concentration on the task due to competitors. If we look at the media i.e. print or electronic,

we will find a lack of advertisement as compare to other competitors of same products which

Mitchells produce. There is a lack of other publicity of Mitchells products. Mostly people

thinks that Mitchells only produce Toffees. It is wrong. This perception is due to failure of

advertisement. There is weak system of supply in the market I felt in Mitchells. The distributors

of different districts / areas are working in the country. But, if we visit the remote areas, we will

find the unavailability of Mitchells products. It is due to weakness of supply chain management.


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SWOT

SWOT Analysis Of MitchellsStrengths

processing facilities

-volume industrialequipment

trained workforce

nationwide coverage

reliability.

confident

Weakness

Customer lists not tested

sectors

Resource Development

Opportunities

dominance as the innovator

leader

expansion

products -users respond to new ideas

Threats

Market demand very seasonal


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CONCLUSION

During my internship at Mitchells, I have found that Mitchells is sometimes proactive and

some time it adopts reactive approach. Mitchells is very much conscious and careful about its

sales and about the customer level satisfaction and tries to maintain a same graph of satisfaction

level and gives customer a quality, fresh farm products direct from their own farms. Mitchells is

very much concerned about its SWOT analysis and keeping a closer eye on every action it can

take for the better of its products. Mitchells management deals with developing a marketing mix

to serve a designated market. Their main focus is on the strategies at SBU level where Mi tchells

make their strategies considering three forces:

Customer

Competition

Corporation

Mitchells is concerned about the external information pertains social, economic, political and

technological trends and product/market environment. Mitchells is also very concerned about

the Corporate Appraisal and for this they keep a closer interact with all the groups of corporate

publics having a stake in the organization. In this context Mitchells is very much concerned

about the Financial Position of the company and evaluate this factor very closely for the further

decision making of their products.


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Recommendations for Improvement:

Mitchells is taking compositing edge in the market due to its own growing farms. Although

Mitchells is working well in the market and has proved itself a leader in the food industry, but

there is need of more concentration to make it better than present. There is weakness in the

supply chain system of the Mitchells. Management should take fully keep an eye on the supply

of the products in the whole country without discrimination of the rural, urban, or remotest area

of the country. There is also anotherproblem with Mitchells and that is its weak advertisement

campaigns in the media i.e. electronic or print. A strong campaign can leads Mitchells on more

height in the market as compare to its competitors. We know that Mitchells has a competitive

edge on its competitors due to its own growing fresh fruits. Due to this edge, Mitchells should

try to enhance its market share through changing or concentrating on its sales methodologies,

price, supply chain, strategies. It should also keep an eye on its competitors. In business, we

know that knowledge is power. Mitchells should not loose its power.


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References:

Mitchells website (www.mitchells.com.pk)

Companys annual report 2009

HRM Department

Sales Department
http://www.mitchells.com.pk/http://www.mitchells.com.pk/http://www.mitchells.com.pk/http://www.mitchells.com.pk/

Structure of the Marketing Department

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