marketing-mix-of-gold-flake.doc

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GOLD FLAKE

Marketing Mix of Gold Flake

The marketing mix of Gold Flake consists of four P’s that is Product, Price,

Place and Promotion. The evaluation of the 4 P’s is done on the basis of the

attributes of the product, consumers taste and preference, research and

development carried by the company regarding the product, its retail outlets etc.

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GOLD FLAKE

1) Product :

Brand name: The brand name of Gold flake has a very good position inthe market. The brand name of Gold Flake is popular since last 25 years.

Quality: Gold Flake offers superior quality of cigarettes with a different

type of tobacco i.e. golden tobacco in it, which is being bleached before

manufacturing of the cigarette. This gives a different type of quality tothe product.

Safety: It is less harmful as the tobacco content is less. There is also a

filter connected to the end of the product, through which the tobacco

content is inhaled in less proportion while smoking.

Packaging: The packaging of Gold Flake is done in hard cardboard

paper. A packet contains 10 cigarettes and small packet contains 5

cigarettes. The packaging also includes the raw materials used for the

product, the harmful character of the product and the price of the product.

Accessories: The accessories offered by the product are a cigarette filter

and also a cigarette holder for smoking.

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GOLD FLAKE

2) Price:

Pricing strategy: The pricing strategy of the company depends upon the

demand of Gold Flake and also the prices of other products. If the price

of other brand is high the prices of Gold Flake are lowered down. If the

demand for the product is high the prices are risen up.

Retail price: Gold Flake has different categories. The price of large

packet of Gold Flake is Rs 34/-; small packet is Rs 28/- and loose

cigarettes cost around Rs 3.50/-.

Voloume pricing: The large packet of Gold Flake contains 10 cigarettes

which is Rs 34/-, small packet Rs 28/- contains 5 cigarettes. These prices

are offered to the consumers. To retailers the price offer is comparatively

less than that of consumers as the buy in bulk. The price depends upon

the quantity of the wholesale purchase by the retailers.

Price flexibility: Price flexibility is very less in this product. The prices

change depending upon the market and consumer’s demand and supply.

The prices also changes as per the tax rate and government rules and

regulations.

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GOLD FLAKE

3) Place:

Distribution channels: The distribution channel starts from the wholeseller then the distributers. The third party is the retailers and then finally

the retailers to the consumers.

Market coverage: ITC covers a wide range of the retail spectrum, from

premium outlets in the metros to small shops in the interiors of rural

India.

Order processing: the order processing is done as per the demand and

supply of the product in the market. In this category of product the

demand is increasing day-by –day, therefore each year the company has

to increase its production as per the increasing demand. Especially as the

standard of rural consumer is increasing, the demand for branded

cigarettes is also increasing. Therefore order processing has to be done

well in advance.

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GOLD FLAKE

Transportation: Long distance transportation is done through trucks and

containers depending upon the quantity of the product to be transported.

Small distance transportation like distributing to the local retailers is done

through small tempos.

4) Promotion:

Promotional strategy: The product was promoted throughadvertisements since it was launched. The branding of the product was

done by the ITC by applying two branding strategies: (i) “Honeydew

smooth” campaign (ii) ‘Price hikes’.

Advertising: Before the ban advertisements were done through

channels of media like television, radio, posters etc. after the ban on

advertisement, it is advertised in magazines and through sponsorship

of different events. After the ban Gold Flake was also promoted

through ‘Word of Mouth’.

Marketing communications budget: Before the ban advertisement

ITC invested 50 crores on advertisement of Gold Flake. After the ban

on advertisement fewer amounts is spent on marketingcommunication.

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marketing-mix-of-gold-flake.doc

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