DIFFERENT TYPES OF MARKETING STRATEGIES USED BY COMPANY

Company G is relatively new in initiating this product line and there is no initial spending on innovating new technology rather improvising the already existing technology. It is necessary for the company to differentiate its marketing strategy to penetrate in market to sustain and grow the position of the Company G in the market. For this purpose the company will focus on four major areas among them first one is product.

Product Strategies

There are three strategies for product proposed by Kotler. The three levels of product strategies include core product, actual product and the augmented product. The core product strategy is that the product of company G will consider the core or the foundation of benefits that the particular product offers to its customers as compare to other competitors’. Actual product strategy is to ensure and guarantee the potential customers to buy company G’s product only. This will happen only when the company G offers discrepancy advantage with additional benefits and feature to the customers as compared to the competitors in the market. Augmented strategy is to offer our customers after sales services, follow up, give them warranty, free delivery, etc. this will help in satisfying and make loyal customers even after the sale.

Pricing Strategies

There are many pricing strategies, to name few skimming pricing, penetration pricing, competition pricing, bundle pricing, premium pricing, psychological pricing, etc. However, the company G will follow, penetration pricing, bundle pricing and psychological pricing. Penetration pricing is that the company will place and set lower prices as compare to the competitors to increase market share of the new product line as well as to increase sales. Bundle pricing strategy is that the company will make the bundle of some products and sell them at reduced prices as compared to the competitors. For instance, the company will make the bundle of coffee maker and electric kettle, and both will be offering on low prices. Psychological pricing strategy is that the company will consider the psychology of consumers mind sets in placing the prices of products. For instance, instead of offering $1 product, it will be offered at 0.99$. These strategies will attract customers more towards company G’s product as compared to the competitors’ one.

Placing Strategies

As the product is directly selling to the consumer from the manufacturer so the most common placing strategies include three types of distribution those are intensive placing, selective placing and exclusive placing. Intensive placing is used for low priced products so it will not suit our product. Exclusive placing is done for high quality vehicles and to the single outlet only. This one also doesn’t suit our product. The third one is selective placing. In this type of placing, product is placed to the limited number of retail outlets. The company G will select an intermediary which has experienced in handling comparable products, to distribute the product.

 

Promotional Strategies

Company G will follow the pull strategy for the new product line. As the name shows pull, this strategy is to promote the product among the target market in order to create demand. This will help in obliging the retailers to stock the product in their outlets.

The emphasis of the company G would be on promotional activities, it is necessary due to the fact that it will highly affect the consumer behavior, it will develop the brand recall value among consumers. Another promotional strategy is the television advertisement will be played by analyzing the maximum available viewership time. Restaurants, café bars will be pursued by sales representatives of the company G and special offers would be given to them for purchasing the small kitchen appliances. For domestic users the small appliances product will be communicated as sophisticated, elegant and efficient product that will reduce their work load and complete what they have to do manually otherwise in just few minutes.

Another idea regarding the product is to present it as a gift item too. The message would be communicated as “why give old fashioned presents to your loved ones, make their life easy by giving them what you are enjoying” Company G small kitchen appliances.

Sales promotion activity is also followed by the company G. In this promotional activity, company will offer money off coupons, and special offers are given. The print media advertising will include flyers posters, ads in newspapers magazines etc. especially designed posters and flyers would be placed on super stores, appliances outlets as well as company owned outlets. The purpose of doing so is to communicate consumers about the new product line, how good it is and meets the needs and requirements of the customers.

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