In some previous articles we were talking about horizontal and vertical integration, penetration pricing, product placement and so on. These are just a few examples of strategies that a company can use to achieve its objectives. But what happens when, the goal is achieved and you succeed in becoming the leader on the specific market and there appears a new competitor? Breaking the entry barriers that you might have created as a leader on the market, the respective competitor might try to target the same customers as you, therefore you are at a risk to lose the gained market share and the loyalty of your customers. [Read more…]
The name McDonald itself brings water to my mouth because of their very very tasty food menu and especially because of their hallmark burgers. Kids as well as adults from around the world love McDonalds and it is a breakfast as well as a fast food home to many. So what are the factors which make people love McDonalds so much? Lets find out. [Read more…]
Break even pricing is a strategy focused on penetrating the market by keeping the price of the product in such a manner that the company is neither in profit nor in loss. Break even price has one of the simplest pricing formulas. Fixed cost + Variable cost = Total cost / Break even price. Thus, the key factor to maintain break even price is to determine the exact fixed and variable costs. The application of break even pricing comes when making business and marketing plans as well as when trying to penetrate a new market. Even in the business environment, break even price plays an important role. [Read more…]
Innovation comes at a cost. If you are going to bring a unique product, you need to invest in R&D, think out of the box and take a risk of launching the new product. When you are doing all this, you would off course keep the price of the product high to get the benefits in return. Hence, many companies which are innovative will use the skimming price strategy. Skimming pricing is used when a product, which is new in the market or just launched, is sold at a relatively high price because of its uniqueness, benefits to customers or its current Wow factor. However, slowly but surely when the product gets older in the market, then the price is dropped and the product is brought at competitive pricing. [Read more…]
If you have read the service marketing mix, then you would know that physical evidence is one of the additional 3 P’s of the service marketing mix. This is because physically evidence is specifically used for services. The problems with services is of differentiation. How do you differentiate a premium restaurant from a regular restaurant? To create such differentiation physical evidence is used. [Read more…]
This is one of the more sensitive articles here on marketing91.com. It concerns with the recent Rape case of an employee by a taxi driver who works for the company – Uber cabs. While the crime was heinous, and should not be pardoned, we at marketing91 are analysing the impact on the business altogether. Consider this – Uber has more than 1000 employees in India, and most of them earning their livelihood through the taxi driving service. The management had no role in the heinous crime that happened. They were innocent people going on with their life. This statement might have enraged many but i am coming to my point. The mistake of the management was one single thing – Managing people. [Read more…]
One of the hardest tasks of an entrepreneur is to meet the requirements of the market which in other words means managing supply and demand. How to manage supply and demand is a question which leaves even the best business owners and operation managers flummoxed. Even though there are different methods for estimating demand through forecasts and of increasing supply through manufacturing, the matching of supply and demand is never reliable or predictable enough. In those circumstances, a manager has to make do with the best estimate that he has. Thus, the need for managing supply and demand. [Read more…]
Marketing plan is an instrument which lays out the basic foundations of all your marketing activities, which in turn will help the growth of the organization. But is there a specific to time to implement a marketing plan? Experts say that your business should be in a position to implement plans. If you are on the defensive, then it is the worst time to implement new marketing plans. In such times, you should maintain the old strategies and ensure that you get out of the bottom. In general, marketing plan should be implemented when the company is in a desired platform and wants to reach a higher platform. However, you should not wait so long such that your company goes down in the dumps. Thus, the timing to implement a marketing plan is crucial in its success. [Read more…]
For the last 10 years, everyone has started to focus on innovation: innovation of ideas, innovation of services, innovation of products, innovation to reduce prices and what not. All of these steps have been taken to create differentiation. A differentiation strategy helps incorporate features in the products which helps to differentiate the product from the competition. There are many tactics for differentiation including use of the complete marketing mix, the STP and others.
Most of the big companies in the world such as Mcdonalds, KFC, Starbucks, Comcast, Arla Foods, LEGO, are doing their best to come up with different customized marketing strategies in order to be able to accomplish the needs of completely different segments of customers, from every continent. However, the opposite of creating differentiation is undifferentiated marketing and here we are presenting the undifferentiated marketing concept. As it sounds, it might be considered that we are taking some steps back in the past, when there was only one marketing strategy for all products and services, no matter the culture, demographics, social factors, etc. But is it like this? Or are we just being confused by the name? [Read more…]
The legacy of Harley Davidson began in the year 1903, in Milwaukee, Wisconsin, U.S.A when two young and exuberant minds of two friends William S. Harley and Arthur Davidson, started working on a project which was to overcome a hurdle of climbing hills on a cycle, in the nearby up hills. They planned to equip their cycle with a motorized engine to solve this situation and utilized a garage space in the house of Mr. Davidson, where the very first engine with a capacity of 116 cc was developed and fit into a cycle. What started as a mere experiment went on to become one of the most iconic brands in motorcycle industry, which is sought after by people across age groups and borders alike, and has created a niche for itself, by providing out of the box designs and latest technology, constantly changing with times, and in fact remaining abreast sometimes.