What do you do when you are a leading MNC and want to tap into the Indian consumer market? Look at how the second best global brands have executed their India strategy. While global market leaders have proven to be flat-footed and bookish, brands like Reebok, LG, Hyundai and Lee have stolen a march over their arch-rivals by burning the book and thinking on their feet. “Most MNC companies are run by a global manual, but those succeeded in India have shredded this manual and taken the ‘when in India, go local’ approach and developed on local consumer insight to chart their strategy,” reasons marketing consultant Harish Bijoor,CEO, Harish Bijoor Consults. Consider Lee. When it entered India in 1995, there was a very nascent market for branded apparel, much less premium jeans wear. Premium brands like Levi’s chose to play it safe by using the multi-brand outlet route, but Lee Continue reading
Marketing Strategies
Bettman Information Processing Model of Consumer Choice
Bettman (1979) in his model describes the consumer as possessing a limited capacity for processing information. He implicate that the consumers rarely analyze the complex alternatives in decision making and apply very simple strategy. In Bettman Information Processing Model, the consumer is portrayed as possessing a limited capacity for processing information. When faced with a choice, the consumer rarely undertakes very complex analyses of available alternatives. Instead, the consumer typically employs simple decision strategies or heuristics. These simplifying decision rules assist the consumer in arriving at a choice by providing a means for sidestepping the overly overburden task of assessing all the information available about all the alternatives. In Bettman Information Processing Model, there are seven major stages. Processing Capacity: In this step he assumes that the consumer has limited capacity for processing information, consumers are not interested in complex computations and extensive information processing. To deal with this problem, Continue reading
Green Marketing Strategies and Best Practices
Today there is a network of organizations or business entities manufacturing, or even marketing green products in an attempt to indicate safe environment concern. Green marketing involves the trading of products that are considered to be safe for the ecosystem or the environment. Activities incorporated in this process do not cause harm to the environment. Such activities may involve modification of advertisement, changes in packaging, production process, and product modification. However, the definition results in contradiction due to meanings intersections. Holistically, the nature of green indicates that in addition to retailers and suppliers, new stakeholders should be included. Such stakeholders include organizations such as NGOs, educators, community members, or regulators. Issues of the environment should equalize the principal requirements of the client. Green marketing has gained its popularity with time since there is an increasing trend in environmental appeals and the attractiveness of green products. In green marketing, consumers are Continue reading
Promotional Pricing – Meaning, Types, Advantages, and Disadvantages
Marketing includes a very important concept that is marketing mix; it has four major components that are promotion, people, price, and place. Nevertheless, in the marketing mix after the product, the second most important factor is the kind of price that is being used. This is because the distribution and the promotion mix can be modified by the kind of pricing being used. It can be an enormous job to set up the correct price for products and services while establishing a new company and it could be equally for a company that has a year of existence on the market. The problem could be that if prices are set too high, the risk may be losing customers or customers may not be interested in the product at all. If prices are set to low, the risk may be not returned on the investment and extremely low margins. Before establishing Continue reading
Case Study: Corporate Social Responsibility at The Body Shop
The Body Shop (TBS) has developed 2500 stores in 60 countries with a range of over 1,200 products in approximately 30 years, and is the second largest cosmetic franchise in the world. After the first TBS’s outlet founded in 1976, the company has experienced rapid growth and with expanding rate of 50% annually. When its stock first obtained a full listing on the London Stock Exchange, its price increased by more than 500%. In 1999, TBS was even voted as the second most trusted brand in UK by the Consumers Association. The founder, Anita Roddick had received numerous awards including Dame Commander of the British Empire for her contributions. TBS’s success is hard to observe from the extrinsic value but the ethical value which make the success of TBS so legendary and inspiring. Anita Roddick, founder of TBS first entered the industry by using £4,000 to open a small stand-alone Continue reading
Factors to Consider When Setting Prices
In the narrowest sense, price is the amount of money charged for a product or service. More broadly, price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible elements of the marketing mix. Unlike product features and channel commitments, price can be changed quickly. At the same time, pricing and price competition is the number one problem facing many marketing executive. Yet, many companies do not handle pricing well. Factors to Consider When Setting Prices A company’s pricing decisions are affected by both internal and external environmental factors. Internal Factors Affecting Pricing Decisions: Internal factors affecting pricing include the company’s marketing objectives, marketing strategy, costs and organizational considerations. 1. Marketing Objectives: Before setting Continue reading