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