Post on 29-Nov-2014
Four Four PPs of Marketings of Marketing
Jerome McCarthy an American Professor first described the Marketing Mix Variables in terms of 4 Ps.
Product Place ( Distribution) Price Promotion
ProductProduct
Product design, features, brand name, models, style, appearance
Product Quality Warranty Package: Design Type, Material, Size, appearance
and labelling Service: Pre- Sale, and after sale, service standards,
service charges
PlacePlace
Channels of Distribution: Channel Design, types of intermediaries, location of outlets, channel remuneration, dealer- principal relations etc
Physical Distribution: Transportation, warehousing, inventory levels, order processing, etc
PricePrice
Pricing Policies, Margins, discounts and rebates. terms of delivery, payment terms, credit terms, instalment purchase facilities
Resale price maintenance
PromotionPromotion
Personal selling, selling expertise, size of sales force
Advertising: Media mix, vehicles, programmes
Sales Promotion.Publicity and Public relations
MARKETING PLANNINGMARKETING PLANNING
Tasks Involved in Marketing PlanningTasks Involved in Marketing Planning
Analysing The marketing Environment and spotting the opportunities and threats
Internal appraisal Setting marketing objective of the unit Formulating the marketing strategy of the
unit Developing detailed marketing plans and
programmes Formulating the marketing budget
Internal appraisalInternal appraisal
Assessing the Strengths and weakness of the Business Unit – Marketing – finance -Manufacturing and operations - R&D- Human Resources – Image of the unit – its relative priority etc
Assessing Health and status of Product lines, Products and Brands
Assessing the competitive advantages available to the Unit
Analysing the marketing Environment Analysing the marketing Environment and spotting the opportunities and threatsand spotting the opportunities and threats
Favourable and unfavourable factors prevailing/ emergingin the environment
Specific business opportunities available to the business units and their relative attractiveness.
Setting Marketing ObjectiveSetting Marketing Objective
Marketing objectives take the cue from Corporate decisions on SBU’s
Marketing objectives must be specified in clear terms
Marketing objectives set in key areas: Sales Volume – Market Share –Productivity –
Research & Development – Innovation etc
Formulating the Marketing StrategyFormulating the Marketing Strategy
Selecting the target market – studying the customer- his buying motives and buying behaviour
Positioning -
Assembling the marketing mix – Deciding the approach in respect of each of the four Ps
Developing the detailed functional plans Developing the detailed functional plans and programmesand programmes
Product Plan / Production Plan Sales forecast Plan Physical distribution Plan Channel Plan Advertising and sales promotion Plan Sales force Plan Sales organisation Plan
Reliance TextilesReliance Textiles(VIMAL)(VIMAL)
Company started business in 1960s with a small factory having four wrap knitting machines and a small dyeing section and just 70 people on its rolls.
After 15 years Vimal became India’s top most textile company
Mainly due to the Marketing strategy Vimal adopted
Marketing Strategy of Reliance Marketing Strategy of Reliance textiles textiles
Target Market selection
* Identified the “ “ well-to-do urbanites of Indiawell-to-do urbanites of India”” as its target markettarget market. * Product – High quality synthetic fabrics, using crimped yarn * The distinctive , sophisticated, and high price character of the
fabrics
PositioningPositioning Vimal fabrics was positioned on the plank of
Fashion The fashion theme was given an additional ‘value
dimention’ with the help of technology attribute
PositioningPositioning
Vimal fabrics was positioned on the plank of Fashion The fashion theme was given an additional ‘value
dimention’ with the help of technology attribute
Newly introduced crimped yarn DuPont cutting edge technology New dye process Modern design facilities
Vimal was positioned as a – “ “ Superior product offering superior valueSuperior product offering superior value ” ”
Product StrategyProduct Strategy
Premium Product based on modern technology Collaboration with DuPont of USA – Reliance for the first
time introduced the world’s best synthetic fibre technology in India.
Comprehensive Product Range Reliance entered into all four major segments of textile
business – Saris - Suitings - Shirting Dress materials
Wide Variety and choice – Employed 200 designers In suittings – 10000 designs every year In saris - 400 New designs every month In dress materials – 500 new designs every month …..
Product Strategy…Product Strategy…
Emphasis on quality - three step approach
1) It voted for the premium quality as a delibrate option
2) It actually delivered premium quality
3) It communicated to the customers that premium quality was being delivered
The Distribution StrategyThe Distribution Strategy
The Show Room or Exclusive Retail Outlet idea was the cornerstone of Reliance distribution strategy
1800 Vimal show rooms across the country – the largest retail network of its kind in India
The Distribution StrategyThe Distribution Strategy
Reliance promoted the unique distribution strategy
VIMAL SHOWROOMSVIMAL SHOWROOMS‘ ‘ the largest nationwide retail the largest nationwide retail
network’network’ there is one near youthere is one near you Reliance opened Jumbo
Showrooms in big cities under the banner of ‘Vimal Prestigious Showrooms’
Pricing StrategiesPricing Strategies
Premium Pricing strategy
Blend of ‘ What the traffic can bear’ and ‘Value for money’ pricing
Promotional StrategyPromotional Strategy Initial Promotion budget of 5 crore per Annum in
1970s
* Reliance believed in high power promotion
* Brand loyalty has been built up by sustained promotion campaign, using a good mix of different media.
Innovative approach * Vimal departed from conventional models dependant approach * They induced the customers to look at textiles as a technical
product and made them to talk of Crimped yarn , DuPont technology and Creative and Unique dress combinations
Different approaches for different Products/Audience Different promotional approaches to different regional markets.
Promotional Strategy…..Promotional Strategy…..
For Suitings Reliance divided the target markets into two… 1) The business people/ Executive community 2) The middle class gentle men
Promotional Strategy…..Promotional Strategy…..
For Suitings Reliance divided the target markets into two… 1) The business people/ Executive community 2) The middle class gentle men
Eg:- In Mumbai city Reliance developed Campaign “A” for business/ executive class –
consist of Ads in Business India, India Today etc.
Campaign “B” for middle class segment - consist of Ads in CineBlitz, Stardust and Illustrated weekly
Promotional Strategy…..Promotional Strategy…..Strategy for Saris
“A Woman Expresses Herself In Many Languages, Vimal Is One Of Them”
An attempt was made to create a rapport between Vimal and the buyer and appeal to her emotionaly
Promotional Strategy…..Promotional Strategy…..Strategy for Saris“A Woman Expresses Herself
In Many Languages,
Vimal Is One Of Them”
An attempt was made to
create a rapport between
Vimal and the buyer and
appeal to her emotionaly
Promotional Strategy…..Promotional Strategy….. The Fashion Show Idea
The ONLY VIMAL Idea
• Only Reliance was producing , crimped polyester yarn in the country.( at that time)
• Only Reliance had an advanced R&D facilities• Only Reliance was a position to offer 10000 designs and
colour combinations• Only Reliance was being rated by bodies like the World
Bank, as on par with textile firms in the most developed countries
Promotional StrategyPromotional Strategy
Effective Media selection * In the initial years 80% of the buget was earmarked
for promotion through press * Later with the advent of T.V this has been changed,
eventhough the cost is much higher. Bold Steps in sales promotion Ad campaigns with the telecast of - * Miss Universe Contests * Oscar Awards Nite * Sponsoring World Cup Cricket Etc