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A) ABSTRACT
This report is intended on describing unique Marketing strategy (4 Ps) of different companies in
succeeding their way. The Product, Pricing, Placing and Promotion are looked into separately
and sub sections (2 companies each) in order to make the readers more comfortable.
The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist
in implementing the M. strategy. M. managers use this method to attempt to generate the optimal
response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is
important to understand that the MM principles are controllable variables. The MM can be
adjusted on a frequent basis to meet the changing needs of the target group and the other
dynamics of the M. environment.
The function of the MM is to help develop a package (mix) that will not only satisfy the needs of
the customers within the target markets, but simultaneously to maximize the performance of the
organization.
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B) INTRODUCTION
"Marketing mix" is a general phrase used to describe the different kinds of choices organizations
have to make in the whole process of bringing a product or service to market. The 4Ps is one way
– probably the best-known way – of defining the marketing mix, and was first expressed in 1960
by E J McCarthy.
The 4Ps are:.
PRODUCT-
 The product is either a tangible good or an intangible service that is seem to meet a
specific customer need or demand.
 All products follow a logical product life cycle and it is vital for marketers to understand
and plan for the various stages and their unique challenges.
 It is key to understand those problems that the product is attempting to solve.
PLACE-
 The place is all about with how the product will be provided to the customer. Distribution
is a key element of placement.
 The placement strategy will help assess what channel is the most suited to a product.
 How a product is accessed by the end user also needs to compliment the rest of the
product strategy.
PRICE-
 Price covers the actual amount the end user is expected to pay for a product. How a
product is priced will directly affect how it sells.
 This is linked to what the perceived value of the product is to the customer rather than an
objective costing of the product on offer.
 If a product is priced higher or lower than its perceived value, then it will not sell. This is
why it is imperative to understand how a customer sees what you are selling.
 If there is a positive customer value, than a product may be successfully priced higher
than its objective monetary value.
PROMOTION-
 The marketing communication strategies and techniques all fall under the promotion
heading. These may include advertising sales promotions, special offers and public relations.
 Whatever the channel used, it is necessary for it to be suitable for the product, the price
and the end user it is being marketed to.
 It is important to differentiate between marketing and promotion.
 Promotion is just the communication aspect of the entire marketing function.
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C.1)PRODUCT
Product is anything that can be offered to a market that might satisfy a want or need. In
manufacturing, products are bought as raw material and sold as finished goods. A product can
be classified as tangible or intangible.
 A tangible product is a physical object that can be perceived by touch such as a building,
vehicle, gadget, or clothing.
 An intangible product is a product that can only be perceived indirectly such as an insurance
policy.
A product needs a name: a name that people remember and relate to. A product with a name
becomes a brand. It helps it stand out from the clutter (cover or fill) of products and names. [1]
1.1) UNIQUE PRODUCT
Some products are very unique in nature as they have characteristics that differentiate them from
other products that belong to the same category.
As an umbrella is a device consisting of a circular canopy of cloth on a folding metal frame
supported by a central rod, used as a protection against rain. [2] Rather than simply developing
the existing umbrella design Gerwin Hoogendoom set to work to create a unique aerodynamic
canopy which was able to point into the wind and remain stable even in extreme wind condition
not simply satisfied with wind tunnel testing, this new design subject to extreme testing in racing
car, parachute jumps and even water skiing to demonstrate that the SENZ storm proof
umbrella range could really handle any conditions yet still maintain both rigidity and its
weather proof in capability.[3]
SENZUMBRELLAS.COM:
Senz was started in 2005 by Gerwin Hoogendoom who, as an industrial designer, felt there was
an opportunity to create the ultimate, storm proof umbrella.[3]
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Despite ridicule from college friends, Gerard Kool and Philip Hess, Gerwin stayed committed to
his project. He initially approached existing umbrella companies to work alongside, but was
turned down. Undeterred, he continued with the project, alone.
After inventing some extremely clever solutions, Gerwin realized the potential of his umbrella
and was able to convince Gerard and Philip of its worth too. Within no time at all they had drawn
up a business plan and made the first prototype, albeit on Gerwin’s grandmothers’ sewing
machine! It was at that moment that they decided to give it a shot! With no entrepreneurial
experience, they rented a tiny office space and started the company. Thus, senz° was born – quite
literally – they wanted their umbrellas to make sense. In November 2006, about a year later, they
introduced senz° to the market.
Senz° was the brainchild of young Industrial Design and Engineering student Gerwin
Hoogendoorn. After a frustrating week, where three umbrellas temptation to the elements and
broke, he felt a calling to devote his graduation project to design the ultimate umbrella. An
umbrella that could withstand the elements, specifically wind. True to his word he accomplished
his mission. 3400 years after its invention in Egypt, the umbrella was finally taking on a new
form. [4]
Figure 1.1.1: SENZ UMBRELLA: Enjoy the weather.
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UMBRELLA BY SENZ
SENZ° is the original storm umbrella, designed to protect you against all weather conditions.
The senz° original storm umbrella will withstand 100 km/h winds. Senz umbrella is proud to
introduce the first game changing innovation in umbrella design. Sweeping the board in its first
year, the design won multiple major design awards including IF Design Gold Medal, IDEA Gold
Award, Good Design Award, Observer Design Award and of course the Dutch Design Award.
We have received a tremendous amount of requests from British consumers, as they are the best
experts in the world when it comes to bad weather. We know which way the wind blows, so your
typical umbrella hassles will soon be a thing of the past. Even the harshest British rain will feel
like liquid sunshine. [5]
Figure 1.1.2: Senz original storm umbrella will withstand 100 km/hr.
Senz design line models come with:
 Patented rib-flex technology for maximum protection and comfortable soft handle.
 Unique eye savers, comes with luxury sleeve, maximum UV protection.
 Windproof up to 100 km/hr. The senz umbrella will not let you down during stormy
weather.
 Stylish: a sophisticated storm umbrella, the senz comes in variety of contemporary colors
and designs.
 Comfortable: senz umbrella are easy to hold. Their asymmetrical shape allows them to adapt
to the ever changing wind position, making them lightweight.
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 Warranty: all are product come with a no nonsense warranty. Any product faults results in a
new senz umbrella, or the replacement of any missing part. [6]
SIZING AND DIMENSIONS OF SENZ UMBRELLA
 Folded length: 94 cm
 Folded width: 3.5 cm canopy arc length (front to back): 110 cm
 Canopy arc width (side to side): 107
 Weight: 593g
Figure 1.1.3: Dimensions of senz umbrella.
FEATURES:
 CANOPY: The water repellent pongee (soft) fabric provides UV protection. While drop
of the rain slide off.
 FLEXIBLE RIBS: The patented construction allows the senz storm umbrellas to
withstand wind up to 100 km/hr without going inside out.
 ELASTIC CORD: The flexible senz cord provides an easy and comfortable carrying
experience.
 AERO DYNAMIC SHAPE: The aero dynamic shape of the senz storm umbrella allows
you to play with wind. While maintaining the best possible rain protection.
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 EYE SAVER: The eyes of fellow pedestrians are protected by these unique rib tips.
Finally no more umbrella eye poking.
 HANDLE: The oversized handle combines a comfortable grip with a unique pull down
opening system.[7]
Figure 1.1.4: Features of senz umbrella.
DIFFERENT TYPES OF SENZ UMBRELLAS ARE:
 SENZ ORIGINAL: The model that started the senz° movement. Always adopting the
best position into the wind due to its unique aerodynamic design, the senz° original is
comfortable to handle even in the most extreme conditions. Light but incredibly strong, it
can handle winds of up to 80 mph without inverting ensuring the user stays dry and
unflustered even during the very worst of the British weather.
 SENZ XL: The bigger, yet lightweight brother of the senz° original designed for those
who prefer additional protection. With unique aerodynamic design and super light yet
ultra strong construction an extra large umbrella has never been easier to handle. Wind
tunnel tested to withstand wind speeds of 80 mph without inverting; the senz° XL
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provides maximum rain protection and visibility coupled with unrivalled performance,
comfort and good looks.
 SENZ MINI: Small but perfectly formed, the senz° mini is the very last word in
practicality. Designed to the same exacting standards as the larger models, the senz°
mini slices effortlessly through wind and rain, keeping you dry and composed even in
the very worst conditions whilst fitting easily into your bag or pocket .
 SENZ SMART STICK: Designed for the fashion conscious young adult and available
in a range of funky colors the senz° smart offers an affordable alternative to the design
line original whilst retaining the characteristic senz° shape. The ergonomic rubber
coated handle provides comfort and grip whilst the lightweight fiberglass, aluminum and
treated steel frame ensure that the senz° smart is wind resistant to 80km/h. Now playing
with the wind has become not only easy and comfortable, it’s fun and affordable too.
 SENZ SMARTS (FOLDING): The ultimate accessory to match any outfit, senz° smart
s slices effortlessly through wind and rain and slides into your bag or pocket with ease.
Following the latest fashion the smart s comes in a range of funky colors and striking
prints and its comfort and strength means rain can be fun again.[7]
Figure 1.1.5: Problem by umbrella. Figure 1.1.6: Problem solved by senz umbrella.
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1.2)UNIQUE PRODUCT II:
A washing machine is a machine used to wash laundry, such as clothing and sheets. The term is mostly
applied to machines that use water as opposed to dry cleaning (which uses alternative cleaning fluids, and
is performed by specialist businesses) or ultrasonic cleaners. Rather than a unique product named
Scrubba Wash Pack light weighted, easy to carry.
Figure 7.2.1: Washing Machine Figure 1.2.2: Scrubba Wash Pack
Calibre8 Pty Ltd.
The Scrubba Wash Pack is an innovative product of Calibre8 Pty Ltd. Patented in Australia and
New Zealand. The word Scrubba, the Scrubba logo, the slogan
‘travel clean, light and free’
is trademarks of Calibre8 Pty Ltd. [8]
Weighing less than 145g (5 oz.), the Scrubba wash bag is the lightest and most compact
"washing machine" in the world.
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SCRUBBA WASH PACK:
The Scrubba Wash Pack is a versatile and weatherproof pack by day and environmentally
friendly and effective washing machine at night. The Scrubba wash bag is the only bag with
hundreds of internal Scrubba nodules that efficiently clean your clothes in minutes.
Idea of scrubba came from:
The idea for the Scrubba wash bag was conceived in 2010 when founder Ash Newland took a 4
month break from his job as a patent attorney in Australia and decided to travel to Africa to
climb Mt Kilimanjaro with a mate.
Scrubba Wash Pack made from:
The Scrubba wash pack is made from a strong but lightweight 40 denier nylon fabric with an
abrasion resistant 210 denier nylon fabric base and back panel. The internal Scrubba washboard,
viewing window and lining are made from high-quality polyether urethane to provide resistance
to hydrolysis (water damage), good chemical and microbial resistance and low-temperature
flexibility.
7 easy steps to clean clothes [9]
Figure 1.2.3: Steps to clean clothes
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Step1:Fill
Add 2-4 litres of water, items of clothing, a few drops of washing liquid (Body wash or shampoo
also works)
Step2:Roll&Clip
Seal the Scrubba Wash Pack but expelling some air and rolling down the top of the pack.
Step3:Deflate
Expel even more air from the Scrubba Wash Pack through the valve.
Step4:Rub
Place the Scrubba Wash Pack on a table or the floor. Rub the clothes against the flexible
washboard from the outside of the Scrubba Wash Pack for 30 seconds to 3 minutes.
Step5:Rinse
Empty clothes and dirty water from the Scrubba Wash Pack. Rinse the clothing with fresh water.
Step6:Dry
Hang the clothing to dry
Step7:Pack&Go
Your clothes are now clean, so repack your Scrubba Wash Pack and off you go. [2]
Benefit [10]
 Pack lighter and cleaner
 Wash clothes anywhere
 Save money
 Enjoy travel
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Figure 1.2.4: Parts of scrubba wash pack.
Clothing can be washed at once[11]
Generally, the Scrubba Wash Pack is effective at cleaning a couple of T-shirts, a couple of pairs
of undergarments and a couple of pairs of socks at once (e.g. 2 days worth of summer clothes).
While the Scrubba Wash Pack can hold more clothing, the washing efficiency may be reduced if
too much clothing is added.
Size of the Scrubba Wash Pack
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The Scrubba Wash Pack when laid flat measures approximately 54 cm x 32 cm (21.3 x 12.6
inches). We can pack it in travel bag flat, compactly rolled up or use it to organise clothes and
separate them from other travel gear.
Feature
Figure 8 : Feature of srubba wash pack.
Capacity of the Scrubba Wash Pack
The total volume of the Scrubba Wash Pack is around 13L (~3 gal). However, as the washing
method requires you to seal the bag and rub the clothes against the washboard from the outside,
the optimal working volume is around 3-4L (~1gal).
Hot water is use
Due to the waterproof lining in the bag, we recommend that water no hotter than 50°C (122°F) is
used.
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C.2) PRICE
Price is the value that is put to a product or service and is the result of a complex set of
calculations, research and understanding and risk taking ability. A pricing strategy takes into
account segments, ability to pay, market conditions, competitor actions, trade margins and input
costs, amongst others. It is targeted at the defined customers and against competitors.
There are several pricing strategies:
Premium pricing: High price is used as a defining criterion. Such pricing strategies work in
segments and industries where a strong competitive advantage exists for the company. Example:
Porsche in cars and Gillette in blades.
Penetration pricing: Price is set artificially low to gain market share quickly. This is done when a
new product is being launched. It is understood that prices will be raised once the promotion period
is over and market share objectives are achieved. Example: Mobile phone rates in India; housing
loans,etc.
Economy pricing: No-frills price. Margins are wafer thin; overheads like marketing and
advertising costs are very low. Targets the mass market and high market share. Example:
Friendly wash detergents; Nirma; local tea producers.
Skimming strategy: High price is charged for a product till such time as competitors allow after
which prices can be dropped. The idea is to recover maximum money before the product or
segment attracts more competitors who will lower profits for all concerned. Example: the earliest
prices for mobile phones, VCRs and other electronic items where a few players ruled attracted
lower cost Asian players.
These are the four basic strategies, variations of which are used in the industry.
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2.1)Dollar Tree’s Unique Pricing Strategy
When we talk about retail, discount, variety industry
there can be observed different price for different
products.
But Dollar tree, Inc. is a chain of discount variety store
providing a single price for all the products.
Dollar Tree, Inc.
Dollar Tree, Inc. is an American chain of discount
variety stores that sells items for $1 or less. A Fortune
500 company, Dollar Tree is headquartered
in Chesapeake, Virginia and operates 13,600 stores
throughout the 48 contiguous U.S. states and Canada. Its
stores are supported by a nationwide logistics network of
ten distribution centers. The company operates one dollar
stores under the names of Dollar Tree and Dollar Bills.
The company also operates a multiprice-point variety
chain under the name Deal$. Dollar Tree competes in
the dollar store and low-end retail markets. Each Dollar
Tree stocks a variety of products including national,
regional, and private-label brands. [12]
Figure2.1.1: Logo of Dollar Tree
Founded: 1991
Headquarters: Chesapeake,
Virginia, United States.
Founder: Macon F. Brock, Jr.
Founded: 1986
CEO: Bob Sasser
Stock price: DLTR (NASDAQ)
US$ 63.93 +0.47 (+0.74%)
19 Oct, 2:00 PM GMT-4 –
Disclaimer
Tagline: Everything’s $1
Subsidiaries: Family Dollar, Deals,
Dollar Tree Canada
Departments: Health and beauty,
food and snacks, party, seasonal
décor, house wares, glassware,
dinnerware, household cleaning
supplies, candy, toys, gifts, gift
bags and wrap, stationery, craft
supplies, teaching supplies,
automotive, electronics, pet
supplies, and books, milk, eggs,
pizza, ice cream, frozen dinners,
and pre-made baked goods
No. of locations: 13600 (2015)
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Business Segments
Each Dollar Tree store carries an average 6,000 items at any given time. The company sells its products in
three different business segments:
Consumable merchandise (48.1% of net sales): This includes candy and food, basic health and
beauty care, and household consumables such as paper, plastics and household chemicals and
in select stores, frozen and refrigerated food.
Variety Merchandise (46.9% of net sales): This includes toys, durable house wares, gifts,
fashion health and beauty care, party goods, greeting cards, apparel, and other items.
Seasonal Goods (5% of net sales): This includes Easter, Halloween and Christmas
merchandise, along with summer toys and lawn and garden merchandise. [13]
Figure 9.1.2: Dollar Tree Store.
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 4,400 stores throughout the
U.S and in Canada.
 >5,500 employees.
 Variety of products
 Tapping the international
market specially emerging
economies.
 Acquisition of smaller retail
chains.
 More visibility through
advertising and customer
focused services.
Strengths Opportunities
Dollar Tree’s Unique Pricing Strategy
Dollar tree uses flat pricing strategy.
This strategy works well in the following situations.
 Many similar products. Your site sells a wide variety of
products that are priced nearly the same. In this scenario, flat pricing is simpler to manage, easier
for consumers, and also results in greater profit
 Subscription pricing. A new trend in online retail is subscription pricing, where customers can
sign up for a flat price of, say, $25, $49, or $99 to receive a set of products every month.
Dollar tree is able to offer extremely low prices for all of its products. It claims to be able to achieve
this because their buyers "work extremely hard to find the best bargains out there", and it has
“great control over the tremendous buying power at the dollar price-point”. Its prices are
primarily designed to attract those with financial difficulties, but it has also become popular with
more affluent customers. They buy products on an order-by-order basis and have no material
long-term purchase contracts or other assurances of continued product supply or guaranteed
Flat pricing is a strategy where a
limited number of prices are used
for all product offerings, such as in
dollar stores where every product
is priced at one dollar.
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product cost. No vendor accounted for more than 10% of total merchandise purchased in any of
the past five years.
Competition
Dollar Tree vs. Comparable Dollar Stores
Dollar Tree is a discount retailer that competes with other stores that have similar business
models. Thus, the company faces direct competition from dollar-store chains, such as Family
Dollar Stores (FDO) and 99 Cents Only Stores (NDN), that sell many of their products at or
around $1.
Dollar Tree vs. Big-Box Sellers
As a discount retailer, Dollar Tree faces significant competition from big-box sellers like Wal-
Mart Stores (WMT) and Target (TGT), whose enormous scale allows them to extract value in
their inventory purchases and pass these savings on to consumers. Dollar Tree Stores, however,
attempts to differentiate itself with its smaller-format stores that enable the company to open
shop in most rural, small town, and urban markets while incurring fewer overhead costs. Along
these lines, the company is more focused on urban areas than Wal-Mart, which has traditionally
focused on dominating rural and small-town markets.
Figure 2.1.3: Dollar Tree Competitor’s Stores
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Comparisons among Competitors of Dollar Tree [14]
During 2010-2014 Dollar Tree has maximum net profit margin, gross margin, current ratio, and
earnings per share.
Figure2.1.4: Competitor Analysis, source: dollar tree.
Figure 2.1.5: Net margins of Dollar General, Family Dollar, Dollar Tree.
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Comparison in increment in annual stock price of Dollar General, Family Dollar and Dollar Tree
for the year ended 2014.
Figure2.1. 10: Increment in Annual Stock Price.
2.2)UNIQUE PRICING STRATEGY II
A unique pricing strategy used by other coffee chains or restaurants is that they have a set price
for each product which they deliver to the customer. They have set menu card and each item to
be sold at different price. Other coffee chain price plays a very important role. Like for example
in the following picture we see the set prices of café’s item.
Figure 2.1: Cafe’s menu (source: Internet)
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COMPANY PROFILE
Ziferblat (free space) is an International coffeehouse chain, at which customers pay for the
time spent there, rather than the food – offering unlimited free wi-fi, tea and biscuits.
Figure 2.2.1: Source Wikipedia
Ziferblat a small Russian for "clock face," might be the first shop of its kind in the UK, but it’s
well established in Russia. Its founder is Ivan Mitin, a mustachioed man from Moscow with a
tendency to philosophize. Ziferblat, a small Russian chain of coffee shops opened a location in
London. Ziferblat which started in 2011, opened nine Russian branches and one in the Ukraine
before breaking into Western Europe. Some of the features of the café chain are[16]:
 Cafe Ziferblat offers customers all-you-can-eat biscuits and endless tea.
 It charges for time spent, and customers must prepare their own coffee.
 They must even wash up their own dishes
Industry Restaurants
Genre Coffee house
Founded 2011
Key people Ivan Mitin
Number of employees ~170
Website ziferblat.net
Figure 2.2.2: Logo of Ziferblat
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BENEFITS OF ZIFERBLAT
 Guest must serve themselves using a coffee machine and kettles.
 Complimentary snacks, including fruit and vegetables, can be prepared in the kitchen.
 There’s also a piano, a record player and unlimited Wi-Fi to provide entertainment.
 Customer can help themselves to coffee from the professional machine, or have it made
for them [17].
Figure 2.2.11: Self Service of Ziferblat.
PRICING STRATEGY ADOPTED BY ZIFERBLAT
Ziferblat uses PAY PER MINUTE pricing strategy[18]
.
Pay per Minute pricing is basically a payment structure in which a customer has access to use
potentially unlimited resources for free except the time they spend there.
In ziferblat customer can use the space as they like. Sit and work here with their computer, can
draw pictures, read a book, invite their friends or meet someone new and have a chat with them,
and everything is for free here, except for the time people spent time costs three pence a minute.
They charge 6 pence per minute and that’s all.
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Ziferblat using interesting type of pricing strategy. They are essentially renting out working
space under the most flexible terms and conditions possible. While it’s billed as a ‘cafe’, their
pricing model is more in lined to a co-working space, though pricing by the minute is what
makes them innovative.
Ziferblat charging customers 3p per minute probably doesn’t yield a hefty profit margin.
However, the concept itself doesn’t feel like a gimmick. It’s a model that could have a bright
future[19]
.
UNIQUENESS OF PAY PER MINUTE PRICING STRATEGY
 Innovative strategy :
Idea of paying the time rather than the consumption is really innovative[20].
 Developing strategies :
From the business point of view it is improving its build a clear social media communication
strategy and developing a revenue strategy [17]
.
 Treating customer as micro tenants :
The key difference between Ziferblat and the other standard coffee chains is that they are
not treating customer just like someone they want to get money from. It is really significant
that they don’t call people as their customers, they call their customers as micro-tenants[17].
 Making people comfortable as they like :
They want people to be there and to share the space in a way they feel comfortable [17].
..
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 Uniqueness.
 Absence of directcompetition
 Internationality
 Appropriate choice of area
 Flexiblepricingsystem
 Vegan/vegetarianfriendly
 Government support.
 Partnershipwith
universities’ student.
 Capture large number
customers.
 Expansion.
 Organise get-together.
STRENGTHS OPPORTUNITIES
Page 25
C.3) Place (Distribution) Strategy
Place or distribution strategy refers to how an organization will distribute the product or service
they are offering to the end user. The organization must distribute the product to the user at the
right place at the right time. Efficient and effective distribution is important if the organization is
to meet its overall marketing objectives.
Distribution channels in marketing are one of the classic “4 Ps” (product, promotion, price, place a.k.a.
“distribution”). They’re a key element in your entire marketing strategy — they help you expand your
reach and grow revenue.
B2B and B2C companies can sell through a single distribution channel or through multiple channels that
may include:
Figure 3.12: Channels of Distribution.
In determining the best structure (or structures) for your business you’ll need to consider the
following questions:
 What is the most convenient means for customers to obtain the products or services they
want?
 What is the specific level of customer service standard required?
 What is the most cost-efficient way of providing accessibility and service?
 How many customers are there, where are they located, what is their average transaction
value?
 What structures do your competitors use and how efficient are they?
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3.1)A UNIQUE DISTRIBUTION STRATERGYIN CAR INDUSTRY
When we talk about car industry, before a car can be sold to a consumer, it has to be sold from a
manufacturer to a dealership. You don’t buy your Ford Focus from Ford; you buy it from your
local Ford dealership.
Tesla Motors Inc. an American automotive company has a much different distribution
strategy from that of other car manufacturers including Ford (F), Fiat Chrysler (FCAU), and
General Motors (GM). Unlike legacy automakers, Tesla does not have a dealer network.
According to Tesla CEO Elon Musk,
“Existing franchise dealers have a fundamental conflict of interest between selling
gasoline cars, which constitute the vast majority of their business, and selling the new
technology of electric cars.”[21]
Tesla Motors, Inc. (TSLA) an American automotive and energy Storage Company that designs,
manufactures, and sells electric cars, electric vehicle, power train components, and battery products.
Founded in 2003 by Elon Musk (Current CEO), JB Straubel (CTO), Martin Eberhard, Marc
Tarpenning, and Ian Wright. [22]
 Market Cap Asof May 2015 $25.5 Billion
 Country UnitedStates
 CEO Elon Musk
 Employees 10,161
 Sales $3.2 B
 Headquarters Palo Alto,California[23]
 Tesla Roadster
First manufactured product, offered from 2008-2012
 Model S
Currently only vehicle offered, 2012-present
 Model X
SUV, expected to be sold in early 2016
Figure 3.1.1:
Logo of Tesla
Motors
Page 27
 Model 3
Expected to be offered in 2017 Target Price: $35,000
 IPO: January 29, 2010, raised US$226 million
First American Car Company to go public since Ford (F) in 1956 Turned first profit in
Q12013
 Business Level: Focused Differentiation
 Target early adopters with high income. Model X target audience includes women,
who make up a larger proportion of luxury SUV buyers.
 Corporate Level: Related Constrained
Dominant business selling cars but also sells electric power train parts
 Cooperative Level: Strategic Alliances
Panasonic, Toyota, Daimler, Mercedes Benz,
 International Level: Transnational
U.S, Asia, Australia, Europe, and Canada. Centered in California. [24]
Figure 3.1.2: Tesla Delivery Country. Source: Internet
Page 28
TESLA’S DISTRIBUTION STRATEGY:
Tesla's strategy of direct customer sales and owning its own stores and service centers is a
significant departure from the standard dealership model currently dominating the U.S. vehicle
marketplace [25]. Tesla Motors is the only automaker that sells cars directly to consumers, with all
other automakers using independently owned dealerships, although some automakers provide
online configuration and/or financing. Tesla is indeed a different company with a different
strategy. To put it in CEO Elon Musk’s words,
“Our technology is different, our car is different, and, as a result, our stores
are intentionally different.”[21]
Figure 3.1.3: Tesla's Contact Point with Customers. Source: Tesla
ONLINE SALES: Tesla (TSLA) sells its cars online. It lets buyers book a car online, without
having to visit any of the dealers. Using a direct channel of distribution to connect consumers
with the product, especially a Web-based channel, can have several benefits. Most importantly,
web-based selling has:
 Low overhead
 Gives the product a potentially global reach.
 Higher rates of profit as no intermediaries share the profits
Figure 13: Direct Distribution Channel (Used by
Tesla).
Page 29
 Convenientforcustomers
 Available 24 hours a day
 Many customers appreciate the opportunity to give profits directly to producers and artists.
COMPANY-OWNED STORES: Tesla operates stores or galleries usually located in shopping
malls right alongside brands like Zara, Bloomingdales and Sees Candy — 22 in U.S. states and
Washington DC. Customers cannot purchase vehicles from the stores, but must order them on
the Tesla Motors website instead. The stores act as showrooms that allow people to learn more
about Tesla Motors and its vehicles. Secondly the showrooms are only the size of a small shop,
often only squeezing in a single vehicle into the space. This radical departure from car marketing
norms completely changes the traditional customer math.
Most cars dealerships would be lucky to get a hundred potential customers perusing the
cars on their lot each day. But because of their location, Tesla gets tens of thousands of people
walking right past their car, every single day.
Incredibly, many sales have come from people who had zero interest in buying a car until
they saw Tesla’s showroom (They were probably in the mall to buy a dress or see a movie).
Tesla believes in getting physically closer to your potential customers, so that they are more
likely to consider your product or service.
The galleries are located in states with more restrictive dealership protection laws such
as Texas and Michigan, which prevent discussing prices, finances, and test drives, as well as
other restrictions.
TEST DRIVES: Tesla Model S test drives are available at all Tesla store locations. The first
step is to request a test drive on Tesla’s website. A product specialist will then contact you within
one day to schedule a convenient time. Unlike other car companies, Tesla custom builds each
Model S for a specific customer. Test drives are about 15 minutes long and designed to
demonstrate the unique capabilities and performance of Model S. Tesla occasionally hosts test
drive events for those who don’t live near a store. You can reserve a test drive in advance from
our event schedule. [26]
Page 30
 Patents
 Marketing expertise
 Innovative products
and services
 Product Quality
 Eco-friendly Product
Line
 Increase Market
Share through High-
Growth EV Industry
 Governments
promote clean
energy
Is Tesla Pursuing the Correct Sales and Distribution Strategy? The biggest challenge for a
company in setting up its own distribution network is capital, or rather the lack of it. It takes a
substantial amount of money to set up a distribution channel. For this very reason, vehicle
manufacturers including Ford (F) and General Motors (GM) team up with third parties to sell
their vehicles.
NO DEALERSHIPS, WHY? Tesla, however, is using a direct business to consumer model,
and choosing to sell their cars via company owned stores. Tesla's vice president of business
development, in an interview, "We don't think that we would succeed using an intermediary
model where we sell a product that someone else sells to the public."[27] There are a couple of
reasons why:
 Tesla feels as though there is a “fundamental conflict of interest” for dealers trying to sell
both traditional gasoline vehicles and electric cars- they believe the products are just too
different to have a salesman fairly selling both.
 Electric cars are so new and unique that the sales cycle is often longer. Customers require a
great deal of information and education before making a purchase, and Tesla would rather
entrust the responsibilities of “electric car education” to their own employees. Tesla-
dedicate1d salespeople can have the luxury to spend time educating, as opposed to a
salesman at a dealership whose main goal is a quick sale and its corresponding
commission.
STRENGTHS: OPPORTUNITIES:
Page 31
ACHIEVEMENTS:
1) Tesla Motors on Forbes Lists as of May 2015
 #1 Innovative Companies
 #1,700 Global 2000
 #488 in Market value
 #113 America's Best Employers[23]
2) As of September 1, 2015 there were 2,800 superchargers in 500 stations worldwide. [28]
3) Tesla sells record 10,030 cars in Q1 2015, up 55% year over year.[29]
Figure 3.1.4: Model S Deliveries, Year Over-Year Growth
4) Tesla has outperformed its major competitors FORD, GM and TOYOTA in Q1 2015.
Figure3.1.5: Tesla has Outperformed Other Automotive Companies. Source: NYSE
Page 32
3.2) UNIQUE DISTRIBUTION STRATEGY IN MOBILE PHONE INDUSTRY
India is traditionally known for the offline retailing. However, the new player disrupted the
market by entering into exclusive arrangements with the leading online players like Flipkart and
Amazon. . And then followed Chinese phone-maker Xiaomi who sold their products only
on Flipkart. Nobody seemed sure that Xiaomi could do well in the Indian market. However, now
after selling millions of smart phones in a year, the company is further expanding in India.
Xiaomi is a privately owned electronics company that designs, develops, and sells smart
phones, mobile apps, and other technology products. Xiaomi is known for offering smart
phones at competitive prices by selling directly to consumers via online marketplaces with
minimal marketing spending. It is the top smart-phone company in China, as of the most recent
quarter of business, thanks to its appeal among fashion conscious, young consumers who can’t
pay up for the latest Samsung or Apple device but want an affordable phone that they can be
proud of and show off in public. That’s a recipe which Xiaomi believes can be adapted to India,
Southeast Asia and other emerging markets.
“We are an e-commerce company. We live on the internet. We are selling exclusively
through e-commerce. And the price there can be much lower, because the price on e-
commerce is essentially fulfillment and shipping cost,” explains Hugo Barra, VP Global,
Xiaomi. [30]
Founded by Lei Jun in 2010, the company is one of the world’s most valuable technology start-
ups. Began its operation in August 2010 with Android based firmware MIUI. [30]
 Country China
 CEO Lei Jun
 Sales in 2014 61 million units[31]
 Headquarters Beijing China
 International headquarter Singapore for its global
expansion activities Figure 3.2.1 : Logo of Xiaomi.
Page 33
 436 after service outlets in China
Figure 3.2.2 : STP (Segment, Target & Positioning) strategy of Xiaomi.
ARENAS
 Republic of China, Philippines, India, Indonesia, Thailand, Vietnam, Russia, Turkey,
Brazil, Mexico
 Smart phone, Smart TV, Wi-Fi router, set-top box, cloud storage, power bank, etc.
 Innovative MIUI interface
STRATEGIES ADOPTED BY XIAOMI
 The Triathlon Model - It is an integration of software, hardware and internet service.
The three pillars to its strategy are:
 Hardware as a service strategy
 An e-commerce sales model
 Focus on software, services and content
Xiaomi has a different business model than Apple or Samsung. Apple makes its profit
on the hardware, while Xiaomi makes their profit on services.
 The Aggressive Pricing Policy - Differentiation by Cost Leadership
Offering products at prices as close to the cost, rather ‘Bill of Material’ as possible.
Page 34
The Mi3 handset from Xiaomi sells for $327, whereas products having similar
specifications, from Apple or Samsung are sold at around $870.
 Focus on Social Media - Xiaomi relies basically on internet to market its products and
fuel sales. It leverages social media and word of mouth marketing to create a viral effect
among the internet acquainted youth
 “Customer-obsessed” strategy - Taking customer feedbacks to keep improving. It runs
frequent events such as ‘fan festival’ online shopping event with discounts and coupons.
 The Limited inventory concept - Xiaomi undercuts inventory cost by maintaining a
very low inventory. When Mi3 were launched initially, the first batch of 1 lack units sold
out in less than 2mins and the company took another 7 days to release 1 lakh more units,
which were then immediately sold out again.
 An eco-system of Smart products - Smartphone Industry is expected to saturate in
coming few year. Xiaomi provides an integrated model of hardware and software.
 Joint Ventures –
 Partnered with telecom carriers such as Hutchison Whampoa Ltd and PCCW Ltd in Hong
Kong.
 Flipkart in India.
 Starhub in Singapore.
BENEFITS OF PARTNERING WITH KEY INDIAN E-TAILER :
 Supply chain control
 Fastest go-to-market
 Easy setup
 Logistics support
 Identify early adopters and access to target consumers
 Trusted established partner
Page 35
DIFFERENTIATORS
 E-Business Capability :
“We are experimenting with a new sales channel and getting into general trade to
increase our reach and to make our products available more easily” [32] said Manu Jain,
India operations head at Xiaomi. Xiaomi also shuns traditional models of advertising and
depends solely on Social Media marketing and word-of-mouth. Xiaomi don’t invest in
traditional marketing, it lives on the social media which is a lot less expensive to us.
 Pricing Policy :
Sell through brick and mortar stores is expected to hurt the company’s already wafer-
thin margins. “The cost of doing offline business is of course higher... the margins will be
affected” [32], said Manu Jain, India operations head at Xiaomi. The company said the move
would have no impact on Xiaomi’s pricing in India. “We will not pass on the cost to
consumers. We determine our product’s prices by keeping the online sales channel in
mind, We will keep our supply chain lean and efficient to avoid higher costs”[32] Jain
said. Xiaomi makes money by selling apps, games and other online services. Xiaomi have
managed to keep the prices so low is because they sell at near cost price with low single digit
gross margins.
 Image: Apple of China
FORMULATE DISTRIBUTION STRATEGY
 Determine most optimal retailer/s to partner with and most appropriate deal structure
 Understand how to deal with network operators and structure deal
 Deeper dive into channel logistics
 The Mi3 handset from Xiaomi sells for $327, whereas products having similar
specifications, from Apple or Samsung are sold at around $870.
Page 36
XIAOMI OFFERED PHONES IN INDIA EXCLUSIVELY THROUGH
FLIPKART
Flash sale was the reason why Xiaomi decided to work with Flipkart when it planned to launch
in India. Flipkart has 22 million registered users which are growing at over 100% annually.
Xiaomi has been practicing the weekly flash sale model to sell its phones since the very
beginning.
“It (the flash sales model) is different in every new market that we go into. In India, we
chose Flipkart because it is a technology company. We (Xiaomi and Flipkart) see eye to eye
on things; we have both built ecommerce platforms and we both know what it means to sell
products online. We have, together, perfected the model here in India and we are going to
evolve a lot,” says Barra. [33]
Figure 3.3.3: How To Buy Your Mi Phone?
“The Xiaomi partnership has been a unique one. While we have worked with global brands
on exclusive partnerships before, the sales model we followed with Xiaomi was the first of
its kind in this country,” says Michael Adnani, VP – Retail and Head – Brand Alliances at
Flipkart. [33] For Xiaomi, which is called just Mi (pronounced ‘mee’) in India, the exclusive deal
with Flipkart has seen over 100,000 units of its flagship Mi3 being sold in less than three months
time. The company has since defocused itself from Mi3 sales.
Page 37
“This partnership gave us unique exposure to demand generation and marketing. It also
tested our technological capabilities – and helped us further streamline the user experience
on our site with every sale. And our ability to cater to these customers across the length and
breadth of the country is also rapidly developing with each partnership. We have set new
records with the Mi3 and Redmi – selling out 20,000 – 40,000 phones in the matter of two to
four seconds. This, in spite of the fact that the flash sale model had never been tried before
in Indian e-commerce. This is a sure indicator of the fact that online shopping in India,
along with its customers, is finally coming of age. More and more customers are willing to
experiment and trust the online model as long as they see value in it,” explained Michael.[33]
Michael spoke about Flipkart’s learnings in terms of technology. “Additionally, of course,
there have been the technology learnings we have gained from each and every sale. We
have dealt with unprecedented traffic and learned from the initial hiccups, scaling up each
time to ensure that the subsequent user experience is smoother and more seamless. This
has helped us test our claims of agility and scale in our technology to the fullest.” [33]
WHY ONLINE DISTRIBUTION ?
Newer entrants into the Indian smart phone space are choosing to ignore the traditional ways of
advertising and retailing in favor of online channels. Some key advantages of online when it
comes to smart phones were :
1. Less Time :
Getting to scale is very important in India and yes, in the long run, offline is the only way of
getting the scale but offline distribution takes time to build. There are a number of steps
involved in establishing a physical distribution network, e.g. identifying a strong national
distributor and regional distributors.
2. Faster consumer access :
On the other hand, with online channel, a new entrant can hope to reach the consumers in top
cities pretty fast. Hence, if a brand wants to attain scale and speed, online is a good cost
effective option.
3. Overheads cutting :
This also cuts out the overheads such as rent, salary of store staff and IT infrastructure.
Page 38
 Launching of new products
in market frequently.
 Innovative and Featured
products.
 Low selling price of
products.
 Effective promotion
campaigns.
 Increasing growth rate selling
of smart phones in Indian
market.
 Entry into more International
market.
4. More Profit Margins :
Sell through brick and mortar stores is expected to hurt the company’s already wafer-thin
margins. The cost of doing offline business is of course higher, the margins get affected.
5. Low Inventory carrying cost.
6.
STRENGTHS: OPPORTUNITIES:
Page 39
ACHIEVEMENTS
1. 26.11 million Miphones sold in H1 2014.
Figure 3.3.4: Source Mi
2. Highest 4G handset Indian market share.
Figure 3.3.5 : 4G Handset Indian Market Share. Source: CMR.
3. Xiaomi Customer Service Center won 2014 National Best Voice Prize in China.[34]
4. Xiaomi Ranks No.6 Most Admired Company in 2014 in Fortune China. [34]
5. Xiaomi rises to No. 3 in Global Smartphone Market. [34]
Page 40
C.4)PROMOTION
Promotion refers to raising customer awareness of a product or brand, generating sales and
creating brand loyalty. It is one of the four basic elements of the market mix which include the
four P’s i.e. price, product, promotion and place.
Companies do promotion to inform and convince individuals to purchase a product, subscribe to
a belief, or support a cause. Promotion is also defined as one of five pieces in the promotional
plan these are personal selling, advertising, sales promotion, direct marketing and publicity.
EXAMPLE- Coke released new bond film creating attention which then got promoted across all
social channels by people spreading the information due to excitement. [35]
 There are many companies who use these kind of promotional techniques to enter into the
market and add new ideas in order to persist for long. But there are few companies who
apply unique tactics like uber as compared to its competitors like lyft, Ola cabs, taxi for
sure, meru etc.
4.1)PROMOTIONALSTRATEGYOF LYFT
Figure 4.1.1: Lyft car
 Introduced lyft line which provides opportunity to save money by sharing a ride headed in
same direction.
 Use of social media like facebook and twitter.[36]
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PROMOTIONALSTRATEGYOF OLA CAB
Figure 4.1.2: Ola cab
 Known as radio taxi service provider.
 Provide promo codes for huge discounts.
 When auto unions call a strike it provides cab at INR 13 per kilometer.[37]
PROMOTIONSTRATEGYOF TAXI FOR SURE
Figure4.1.3: Taxi for sure cab
 Give choice of choosing driver and car too.
 Provide promo codes on Tuesday.
Page 42
 Promotion by offline advertisement, web, mobile.[38]
PROMOTIONALSTRATEGYOF MERU
Figure4.1.4: Meru taxi
 Lost and Found tracking system for any item left in a cab can be traced to the vehicle
reporting has used.
 Started ad campaigns and released radio ad campaign.
 Don’t drink and drive promotion to encourage people to call for a meru instead of
drinking and driving.[39]
UBER
Figure 4.1.5: Ubers logo Figure 4.1.6: Uber cab
Page 43
 Uber Technologies Inc. is an American international transportation network company
headquartered in San Francisco, California.
 The company develops markets and operates the Uber mobile app, which allows
consumers with Smartphone to submit a trip request.
 Since Uber’s launch several other companies have copied its business model a trend came
to be known as Uberification.
 Uber was founded by Garrett Camp and Travis Kalanick in 2009.
 Uber's pricing is similar to that of metered taxis although all hiring and payment is
handled exclusively through Uber and not with the driver personally.
 Uber too provide choice of driver and vehicle.
 Don’t not spend on media, TV, print and don’t promote post on social networking sites.
 Focused on building quality goods. [40]
UNIQUE STRATEGIES BYUBER
 Uber delivers kites on Makar sankranti.
Figure 4.1.7: UberPatang
 Uber team up with bookmyshow to provide discounted rides.
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Figure: 4.1.8: Free ride to T20 match
 Uber offer a lovers ride in an Uber Chopper on Valentine’s Day.
Figure 4.1.9: Uber Chopper.
 Uber gives discounts for everyone travelling to the Mumbai Business Week.
Figure 4.1.10: UberGo
Page 45
 They announce for free pick up and drop service in Chinnaswamy
Stadium in Banglore on April 2015 for T20 Cricket
Figure 4.1.11: Free pickup to stadium
 They celebrate Chandigarh’s 48th Birthday and give a 48% discount on
the same.
Figure 4.1.12: Celebrating 48th birthday of Chandigarh
 To compete at lower price levels, Uber introduced UberGo, UberTaxi and UberX.[41]
Figure 4.1.13: Low cost cars
Page 46
UBER’S MARKET SHARE
Figure 4.1.14: Uber’s growth 2014-2015
 Uber dominate in market coverage operating in 300 cities in 60 countries while lyft
operate in 60 cities in U.S.
 An average 46% of all total paid cars were through Uber in major markets of U.S. i.e.
steep rise from a mere 15% in the first quarter of 2014.
 With the introduction of cheap cars like Uber X, Uber go its market
share expanded.[42]
Figure 4.14.15: Competitive analysis of Uber and Lyft
Page 47
4.2) UNIQUE PROMOTION STRATEGY II
Nike adopted unique promotional strategies ,like making yourself as a hero and your lazy side as
villain ,make you involve in the story which makes them different in the shoe making industry.
Nike, Inc. is an American multinational corporation that is engaged in the design, development,
manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories
and services. Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the
company focused on providing high quality running shoes designed for athletes by athletes.
Founder Philip Knight believed high-tech shoes for runners could be manufactured a competitive
prices if imported from abroad.
Nike v/s other shoe manufacturing companies:
Promotions are mainly focused on the consumer with prices at trade promotions increasing or
decreasing with the context of the specific promotion drive. Both Nike and Other companies are
into a lot of sponsorships and advertising.
BRAND EQUITY: Nike centered their brand equity model on the platforms, the endorsement
focus strategy, creating a dominant media presence, development of Flagship stores, Nike own
Industry
Apparel, accessories
Founded 1964 (as Blue Ribbon Sports)
1971 (as Nike, Inc.)
Key people
PhilKnight
(Chairman)
MarkParker
(President and CEO)
Products
Athletic footwear and apparel,sport
equipments and other athletic,and
recreational products
Figure 4.2.1: Logo of NIKE.
Page 48
and sub branding. The Other Company’s strategies were based on, endorsement focus strategy,
advertising, sponsorship programs focusing on major global events, sports associations, and
teams, and sub-brands.
SPONSORSHIP OF TEAMS AND EVENTS: This will help them to create awareness with
help from different types of media. In contrast Nike has their focus on individuals like M. Jordan
and T. Woods and their success stories.
ADVERTISING STRATEGY: Nike’s advertising strategy was to create dominant presence in
media. Nike created media presence in several trend setting United States cities. TV ads linking
Nike to a city were used, but real drivers were huge oversized billboards and murals on buildings
that blanketed cities with messages featuring key Nike sponsored athletes, not products. Other
companies took up the competition with Nike through raising their advertising budget to a level
that made it possible to compete with Nike on the same conditions and the same strength as Nike
did to capture the consumer interest.
FLAG SHIP STORES: Nike's third strategy was to develop, flag ship stores, Nike Town shops
in bigger cities, first national, and then abroad. Nike was the first company to establish flagship
stores and it turned out to be a sensation. Other company’s choice was with which they made
great success
Promotional strategies of NIKE:
In 1985, Nike signed up then-rookie guard Michael Jordan as a spokesperson. Nike’s bet paid
off-the Air Jordan line of basketball shoes flew off the shelves and revenues hit over $100
million in the first year alone.
In 1988, Nike aired the first ads in its $20 million “JUST DO IT” ad campaign. The campaign,
which ultimately featured 12 TV sports in all, subtly challenged a generation of athletic
enthusiasts to chase their goals.
As Nike began expanding overseas to Europe, it found that its U.S.-style ads were too
aggressive. Nike realized it had to “authenticate” its brand in Europe, so it focused on soccer and
became active as a sponsor of youth leagues, local clubs, and national teams. Nike’s big break
came in 1994 when the Brazilian team (the only national team for which Nike had real
Page 49
sponsorship) won the world cup. That victory transformed Nike’s image in Europe from a
sneaker company into a brand that represented emotion, allegiance, and identification. And by
2003, overseas revenues surpassed U.S. revenues for the first time.
In 2007, Nike acquired Umbro, a British maker of soccer-related footwear, apparel, and
equipment. The acquisition helped boost Nike’s presence in soccer as the company became the
sole supplier of uniforms to over 100 professional soccer teams around the world.
In addition to expanding the brand overseas, Nike successfully entered new athletic footwear,
apparel, and equipment product categories by using endorsements from high profile athletes and
consumer outreach programs.
SOME OF THE BEST PROMOTIONAL STRATEGIES OF NIKE INCLUDE:
 Endorsement from high profile athletes- The Nike GOLF brand, endorsed by Tiger
Woods, has changed the way professional golfers dress.
Figure4.2.2: Tiger Woods in NIKE GOLF brand.
In tennis, Nike has aligned Maria Sharapova, Roger Federer, and Rafael Nadal to push its line of
tennis clothing and gear.
Figure 4.2.3: Maria Sharapova and Roger Federer promoting NIKE.
Page 50
To promote its line of basketball shoes and apparel, Nike continues to feature basketball
superstars such as Kobe Bryant and Lebron James.
Figure 4.2.4: Lebron James promoting NIKE.
 Partnership with Apple:
In past few years, Nike’s lead in running category has grown to 60% market share thanks to its
exclusive partnership with Apple.
Figure 4.2.5: NIKE+ Running GPS App for iPhone, iTouch and iPod.
Nike+ (plus) technology includes a sensor that runners put into their running shoes and a
receiver, which fits into an iPod, iTouch, or iphone. When the athlete goes for a run or hits gym,
Page 51
the receiver captures his or her mileage, calories burned, and pace and stores it until the
information is downloaded.
 Organizing events-
 Hosted human race events in 24 countries:
In 2008 and 2009, Nike+ hosted the Human Race 10K, the largest and only global virtual race in the
world.
Figure 4.2.6: Nike+ hosted the Human Race in London.
The event, designed to celebrate running, drew 780000 participants in 2008 and surpassed that in
2009. To participate, runners register online, gear up with Nike+ technology, and hit the road on
race day, running any 10K route they choose at any time during the day. Once the data is
downloaded from the Nike+ receiver, each runner’s official time is posted and can be compared
to the times of runners from around the world.
Figure 4.2.7: NIKE+ Human Race Promotion.
Page 52
 Hosted events at 2015 Super Bowl in Phoenix:
At the 2015 Super Bowl in Phoenix, Nike hosted multiple events including a game-day tailgate
party featuring current N.F.L. players and celebrity chefs. It also sponsored the Nike Speed
Zone, a free three-day consumer event with activities such as a 40-yard dash, a speed and agility
course, training clinics, skill challenges, and entertainment.
Figure 4.2.8: Event hosted by NIKE at Super Bowl in Phoenix.
 Nike women’s san Francisco half marathon 2015
The 12th annual women's race drew 25,000 participants who conquered the 13.1-mile course
from Union Square to Marina Green.
Figure 4.2.9: Nike women’s san Francisco half marathon 2015
Page 53
 Brand recognition
 High product quality
 Effective marketing
strategy
 Capacity of
innovation
 Strong distribution
chain
 Strong R&D
 Strong customer
relationship
 Favorable industry trends
 Direct to consumer
 Emerging market growth
 Innovative product
Strengths Opportunities
Page 54
CONCLUSION
The concept of the unique marketing mix and four P’s have been strongly dominant
paradigm marketing stage for different companies. Marketing managers must realize its
usefulness in the marketing of goods and services. Marketing mix analysis is a fundamental
step towards effective strategy. The four P’s of marketing including the product, price, place
and promotion are the four wheels of the vehicle on which the path of an organization’s
marketing success is actually dependent.
Marketing mix plays a crucial role while deciding the strategy of an organization. It is the
first step even when a marketing plan or a business plan is being made. This is because
unique marketing mix decision will also affect segmentation, targeting and positioning
decisions. Based on products, segmentation and targeting will be done. Based on the price,
positioning can be decided. And these decisions will likely affect the place and promotion
decisions. Thus, the unique marketing mix strategy goes hand in hand with segmentation
targeting and positioning.
It can be seen from the above companies; all the four variables of marketing mix are
interrelated and affect each other. So the overall marketing mix can result in the customer
base for some improvement. Marketing mix analysis is a fundamental step towards effective
strategy. Where other analysis are more related to environment and feasibility analysis, the 4
Ps of marketing including the product itself, pricing, placement and promotion are the four
wheels of the vehicle on which the path of an organization’s marketing success is actually
dependent.
Page 55
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per+minute+pricing+strategy&source=bl&ots=p5WFbMrbGx&sig=wWOWUgQDeF8LekI
Yz7uBCSK8F9Q&hl=en&sa=X&ved=0CDMQ6AEwA2oVChMIp8T53tfOyAIVjpCOCh0
yNgin#v=onepage&q=pay%20per%20minute%20pricing%20strategy&f=false
Page 56
19. www.usatoday.com/story/money/business/2014/02/18/ozy-pay-per-minute-freelance-
cafe/5583025/
20. www.calvertjournal.com/articles/show/2011/ziferblat-the-future-of-londons-pay-per-
minute-cafe
21. ww.teslamotors.com/blog/tesla-approach-distributing-and-servicing-cars
22. https://en.wikipedia.org/wiki/Tesla_Motors
23. www.forbes.com/companies/tesla-motors/
24. Herb Benson, Robert Korn, Samantha Nettnin, and Kevin Peterson.“Tesla: A
Comprehensive Strategic Analysis”.
25. Richard Read. "Terrified Of Tesla, NADA Launches Campaign To Tout Benefits Of
Franchise Dealerships". The Car Connection. Retrieved 2015-07-16
26. www.teslamotors.com>support>test-drive
27. www.washingtonpost.com/news/the-switch/wp/2014/10/22/why-tesla-keeps-fighting-for-
direct-sales-when-it-could-just-work-with-dealers/
28. www.greenoptimistic.com/charging-station-map-tesla/
29. www.venturebeat.com/2015/04/03/tesla-ships-record-10,030-cars-in-q1-2015-up-55-year-
over-year/
30. http://yourstory.com/2014/09/xiaomi-pricing-strategy-hugo-barra/
31. http://www.androidauthority.com/xiaomi-sells-61-million-handsets-577944/
32. http://www.livemint.com/Consumer/tpe6DR3Hxmd42K4XG1uIEO/Xiaomi-to-start-selling-
via-offline-stores-in-India.html
33. http://yourstory.com/2014/09/india-lessons-xiaomi-flipkart-future-plans-hugo-barra/
34. http://www.miuios.in/2015/01/xiaomi-in-2014-top-10-achievements.html?m=1
35. https://en.wikipedia.org/wiki/Promotion_ (marketing)
36. http://therideshareguy.com/category/driving-strategies/
37. http://www.slideshare.net/simplify360/ola-cab-is-the-leader-in-radio-taxi-market-research
38. https://www.taxiforsure.com/team/
39. http://www.nextbigwhat.com/story-of-meru-cabs-case-study-for-entrepreneurs-297/
40. https://en.wikipedia.org/wiki/Uber_ (company)
Page 57
41. http://hooklineandclincher.in/uber-marketing-strategy-india/
42. http://www.fool.com/investing/general/2015/05/24/lyft-vs-uber-just-how-dominant-is-uber-
ridesharing.aspx

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4P'S OF MAKETING

  • 1. Page 1 A) ABSTRACT This report is intended on describing unique Marketing strategy (4 Ps) of different companies in succeeding their way. The Product, Pricing, Placing and Promotion are looked into separately and sub sections (2 companies each) in order to make the readers more comfortable. The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist in implementing the M. strategy. M. managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the MM principles are controllable variables. The MM can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the M. environment. The function of the MM is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization.
  • 2. Page 2 B) INTRODUCTION "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by E J McCarthy. The 4Ps are:. PRODUCT-  The product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand.  All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges.  It is key to understand those problems that the product is attempting to solve. PLACE-  The place is all about with how the product will be provided to the customer. Distribution is a key element of placement.  The placement strategy will help assess what channel is the most suited to a product.  How a product is accessed by the end user also needs to compliment the rest of the product strategy. PRICE-  Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells.  This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer.  If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling.  If there is a positive customer value, than a product may be successfully priced higher than its objective monetary value. PROMOTION-  The marketing communication strategies and techniques all fall under the promotion heading. These may include advertising sales promotions, special offers and public relations.  Whatever the channel used, it is necessary for it to be suitable for the product, the price and the end user it is being marketed to.  It is important to differentiate between marketing and promotion.  Promotion is just the communication aspect of the entire marketing function.
  • 3. Page 3 C.1)PRODUCT Product is anything that can be offered to a market that might satisfy a want or need. In manufacturing, products are bought as raw material and sold as finished goods. A product can be classified as tangible or intangible.  A tangible product is a physical object that can be perceived by touch such as a building, vehicle, gadget, or clothing.  An intangible product is a product that can only be perceived indirectly such as an insurance policy. A product needs a name: a name that people remember and relate to. A product with a name becomes a brand. It helps it stand out from the clutter (cover or fill) of products and names. [1] 1.1) UNIQUE PRODUCT Some products are very unique in nature as they have characteristics that differentiate them from other products that belong to the same category. As an umbrella is a device consisting of a circular canopy of cloth on a folding metal frame supported by a central rod, used as a protection against rain. [2] Rather than simply developing the existing umbrella design Gerwin Hoogendoom set to work to create a unique aerodynamic canopy which was able to point into the wind and remain stable even in extreme wind condition not simply satisfied with wind tunnel testing, this new design subject to extreme testing in racing car, parachute jumps and even water skiing to demonstrate that the SENZ storm proof umbrella range could really handle any conditions yet still maintain both rigidity and its weather proof in capability.[3] SENZUMBRELLAS.COM: Senz was started in 2005 by Gerwin Hoogendoom who, as an industrial designer, felt there was an opportunity to create the ultimate, storm proof umbrella.[3]
  • 4. Page 4 Despite ridicule from college friends, Gerard Kool and Philip Hess, Gerwin stayed committed to his project. He initially approached existing umbrella companies to work alongside, but was turned down. Undeterred, he continued with the project, alone. After inventing some extremely clever solutions, Gerwin realized the potential of his umbrella and was able to convince Gerard and Philip of its worth too. Within no time at all they had drawn up a business plan and made the first prototype, albeit on Gerwin’s grandmothers’ sewing machine! It was at that moment that they decided to give it a shot! With no entrepreneurial experience, they rented a tiny office space and started the company. Thus, senz° was born – quite literally – they wanted their umbrellas to make sense. In November 2006, about a year later, they introduced senz° to the market. Senz° was the brainchild of young Industrial Design and Engineering student Gerwin Hoogendoorn. After a frustrating week, where three umbrellas temptation to the elements and broke, he felt a calling to devote his graduation project to design the ultimate umbrella. An umbrella that could withstand the elements, specifically wind. True to his word he accomplished his mission. 3400 years after its invention in Egypt, the umbrella was finally taking on a new form. [4] Figure 1.1.1: SENZ UMBRELLA: Enjoy the weather.
  • 5. Page 5 UMBRELLA BY SENZ SENZ° is the original storm umbrella, designed to protect you against all weather conditions. The senz° original storm umbrella will withstand 100 km/h winds. Senz umbrella is proud to introduce the first game changing innovation in umbrella design. Sweeping the board in its first year, the design won multiple major design awards including IF Design Gold Medal, IDEA Gold Award, Good Design Award, Observer Design Award and of course the Dutch Design Award. We have received a tremendous amount of requests from British consumers, as they are the best experts in the world when it comes to bad weather. We know which way the wind blows, so your typical umbrella hassles will soon be a thing of the past. Even the harshest British rain will feel like liquid sunshine. [5] Figure 1.1.2: Senz original storm umbrella will withstand 100 km/hr. Senz design line models come with:  Patented rib-flex technology for maximum protection and comfortable soft handle.  Unique eye savers, comes with luxury sleeve, maximum UV protection.  Windproof up to 100 km/hr. The senz umbrella will not let you down during stormy weather.  Stylish: a sophisticated storm umbrella, the senz comes in variety of contemporary colors and designs.  Comfortable: senz umbrella are easy to hold. Their asymmetrical shape allows them to adapt to the ever changing wind position, making them lightweight.
  • 6. Page 6  Warranty: all are product come with a no nonsense warranty. Any product faults results in a new senz umbrella, or the replacement of any missing part. [6] SIZING AND DIMENSIONS OF SENZ UMBRELLA  Folded length: 94 cm  Folded width: 3.5 cm canopy arc length (front to back): 110 cm  Canopy arc width (side to side): 107  Weight: 593g Figure 1.1.3: Dimensions of senz umbrella. FEATURES:  CANOPY: The water repellent pongee (soft) fabric provides UV protection. While drop of the rain slide off.  FLEXIBLE RIBS: The patented construction allows the senz storm umbrellas to withstand wind up to 100 km/hr without going inside out.  ELASTIC CORD: The flexible senz cord provides an easy and comfortable carrying experience.  AERO DYNAMIC SHAPE: The aero dynamic shape of the senz storm umbrella allows you to play with wind. While maintaining the best possible rain protection.
  • 7. Page 7  EYE SAVER: The eyes of fellow pedestrians are protected by these unique rib tips. Finally no more umbrella eye poking.  HANDLE: The oversized handle combines a comfortable grip with a unique pull down opening system.[7] Figure 1.1.4: Features of senz umbrella. DIFFERENT TYPES OF SENZ UMBRELLAS ARE:  SENZ ORIGINAL: The model that started the senz° movement. Always adopting the best position into the wind due to its unique aerodynamic design, the senz° original is comfortable to handle even in the most extreme conditions. Light but incredibly strong, it can handle winds of up to 80 mph without inverting ensuring the user stays dry and unflustered even during the very worst of the British weather.  SENZ XL: The bigger, yet lightweight brother of the senz° original designed for those who prefer additional protection. With unique aerodynamic design and super light yet ultra strong construction an extra large umbrella has never been easier to handle. Wind tunnel tested to withstand wind speeds of 80 mph without inverting; the senz° XL
  • 8. Page 8 provides maximum rain protection and visibility coupled with unrivalled performance, comfort and good looks.  SENZ MINI: Small but perfectly formed, the senz° mini is the very last word in practicality. Designed to the same exacting standards as the larger models, the senz° mini slices effortlessly through wind and rain, keeping you dry and composed even in the very worst conditions whilst fitting easily into your bag or pocket .  SENZ SMART STICK: Designed for the fashion conscious young adult and available in a range of funky colors the senz° smart offers an affordable alternative to the design line original whilst retaining the characteristic senz° shape. The ergonomic rubber coated handle provides comfort and grip whilst the lightweight fiberglass, aluminum and treated steel frame ensure that the senz° smart is wind resistant to 80km/h. Now playing with the wind has become not only easy and comfortable, it’s fun and affordable too.  SENZ SMARTS (FOLDING): The ultimate accessory to match any outfit, senz° smart s slices effortlessly through wind and rain and slides into your bag or pocket with ease. Following the latest fashion the smart s comes in a range of funky colors and striking prints and its comfort and strength means rain can be fun again.[7] Figure 1.1.5: Problem by umbrella. Figure 1.1.6: Problem solved by senz umbrella.
  • 9. Page 9 1.2)UNIQUE PRODUCT II: A washing machine is a machine used to wash laundry, such as clothing and sheets. The term is mostly applied to machines that use water as opposed to dry cleaning (which uses alternative cleaning fluids, and is performed by specialist businesses) or ultrasonic cleaners. Rather than a unique product named Scrubba Wash Pack light weighted, easy to carry. Figure 7.2.1: Washing Machine Figure 1.2.2: Scrubba Wash Pack Calibre8 Pty Ltd. The Scrubba Wash Pack is an innovative product of Calibre8 Pty Ltd. Patented in Australia and New Zealand. The word Scrubba, the Scrubba logo, the slogan ‘travel clean, light and free’ is trademarks of Calibre8 Pty Ltd. [8] Weighing less than 145g (5 oz.), the Scrubba wash bag is the lightest and most compact "washing machine" in the world.
  • 10. Page 10 SCRUBBA WASH PACK: The Scrubba Wash Pack is a versatile and weatherproof pack by day and environmentally friendly and effective washing machine at night. The Scrubba wash bag is the only bag with hundreds of internal Scrubba nodules that efficiently clean your clothes in minutes. Idea of scrubba came from: The idea for the Scrubba wash bag was conceived in 2010 when founder Ash Newland took a 4 month break from his job as a patent attorney in Australia and decided to travel to Africa to climb Mt Kilimanjaro with a mate. Scrubba Wash Pack made from: The Scrubba wash pack is made from a strong but lightweight 40 denier nylon fabric with an abrasion resistant 210 denier nylon fabric base and back panel. The internal Scrubba washboard, viewing window and lining are made from high-quality polyether urethane to provide resistance to hydrolysis (water damage), good chemical and microbial resistance and low-temperature flexibility. 7 easy steps to clean clothes [9] Figure 1.2.3: Steps to clean clothes
  • 11. Page 11 Step1:Fill Add 2-4 litres of water, items of clothing, a few drops of washing liquid (Body wash or shampoo also works) Step2:Roll&Clip Seal the Scrubba Wash Pack but expelling some air and rolling down the top of the pack. Step3:Deflate Expel even more air from the Scrubba Wash Pack through the valve. Step4:Rub Place the Scrubba Wash Pack on a table or the floor. Rub the clothes against the flexible washboard from the outside of the Scrubba Wash Pack for 30 seconds to 3 minutes. Step5:Rinse Empty clothes and dirty water from the Scrubba Wash Pack. Rinse the clothing with fresh water. Step6:Dry Hang the clothing to dry Step7:Pack&Go Your clothes are now clean, so repack your Scrubba Wash Pack and off you go. [2] Benefit [10]  Pack lighter and cleaner  Wash clothes anywhere  Save money  Enjoy travel
  • 12. Page 12 Figure 1.2.4: Parts of scrubba wash pack. Clothing can be washed at once[11] Generally, the Scrubba Wash Pack is effective at cleaning a couple of T-shirts, a couple of pairs of undergarments and a couple of pairs of socks at once (e.g. 2 days worth of summer clothes). While the Scrubba Wash Pack can hold more clothing, the washing efficiency may be reduced if too much clothing is added. Size of the Scrubba Wash Pack
  • 13. Page 13 The Scrubba Wash Pack when laid flat measures approximately 54 cm x 32 cm (21.3 x 12.6 inches). We can pack it in travel bag flat, compactly rolled up or use it to organise clothes and separate them from other travel gear. Feature Figure 8 : Feature of srubba wash pack. Capacity of the Scrubba Wash Pack The total volume of the Scrubba Wash Pack is around 13L (~3 gal). However, as the washing method requires you to seal the bag and rub the clothes against the washboard from the outside, the optimal working volume is around 3-4L (~1gal). Hot water is use Due to the waterproof lining in the bag, we recommend that water no hotter than 50°C (122°F) is used.
  • 14. Page 14 C.2) PRICE Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors. There are several pricing strategies: Premium pricing: High price is used as a defining criterion. Such pricing strategies work in segments and industries where a strong competitive advantage exists for the company. Example: Porsche in cars and Gillette in blades. Penetration pricing: Price is set artificially low to gain market share quickly. This is done when a new product is being launched. It is understood that prices will be raised once the promotion period is over and market share objectives are achieved. Example: Mobile phone rates in India; housing loans,etc. Economy pricing: No-frills price. Margins are wafer thin; overheads like marketing and advertising costs are very low. Targets the mass market and high market share. Example: Friendly wash detergents; Nirma; local tea producers. Skimming strategy: High price is charged for a product till such time as competitors allow after which prices can be dropped. The idea is to recover maximum money before the product or segment attracts more competitors who will lower profits for all concerned. Example: the earliest prices for mobile phones, VCRs and other electronic items where a few players ruled attracted lower cost Asian players. These are the four basic strategies, variations of which are used in the industry.
  • 15. Page 15 2.1)Dollar Tree’s Unique Pricing Strategy When we talk about retail, discount, variety industry there can be observed different price for different products. But Dollar tree, Inc. is a chain of discount variety store providing a single price for all the products. Dollar Tree, Inc. Dollar Tree, Inc. is an American chain of discount variety stores that sells items for $1 or less. A Fortune 500 company, Dollar Tree is headquartered in Chesapeake, Virginia and operates 13,600 stores throughout the 48 contiguous U.S. states and Canada. Its stores are supported by a nationwide logistics network of ten distribution centers. The company operates one dollar stores under the names of Dollar Tree and Dollar Bills. The company also operates a multiprice-point variety chain under the name Deal$. Dollar Tree competes in the dollar store and low-end retail markets. Each Dollar Tree stocks a variety of products including national, regional, and private-label brands. [12] Figure2.1.1: Logo of Dollar Tree Founded: 1991 Headquarters: Chesapeake, Virginia, United States. Founder: Macon F. Brock, Jr. Founded: 1986 CEO: Bob Sasser Stock price: DLTR (NASDAQ) US$ 63.93 +0.47 (+0.74%) 19 Oct, 2:00 PM GMT-4 – Disclaimer Tagline: Everything’s $1 Subsidiaries: Family Dollar, Deals, Dollar Tree Canada Departments: Health and beauty, food and snacks, party, seasonal décor, house wares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies, automotive, electronics, pet supplies, and books, milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods No. of locations: 13600 (2015)
  • 16. Page 16 Business Segments Each Dollar Tree store carries an average 6,000 items at any given time. The company sells its products in three different business segments: Consumable merchandise (48.1% of net sales): This includes candy and food, basic health and beauty care, and household consumables such as paper, plastics and household chemicals and in select stores, frozen and refrigerated food. Variety Merchandise (46.9% of net sales): This includes toys, durable house wares, gifts, fashion health and beauty care, party goods, greeting cards, apparel, and other items. Seasonal Goods (5% of net sales): This includes Easter, Halloween and Christmas merchandise, along with summer toys and lawn and garden merchandise. [13] Figure 9.1.2: Dollar Tree Store.
  • 17. Page 17  4,400 stores throughout the U.S and in Canada.  >5,500 employees.  Variety of products  Tapping the international market specially emerging economies.  Acquisition of smaller retail chains.  More visibility through advertising and customer focused services. Strengths Opportunities Dollar Tree’s Unique Pricing Strategy Dollar tree uses flat pricing strategy. This strategy works well in the following situations.  Many similar products. Your site sells a wide variety of products that are priced nearly the same. In this scenario, flat pricing is simpler to manage, easier for consumers, and also results in greater profit  Subscription pricing. A new trend in online retail is subscription pricing, where customers can sign up for a flat price of, say, $25, $49, or $99 to receive a set of products every month. Dollar tree is able to offer extremely low prices for all of its products. It claims to be able to achieve this because their buyers "work extremely hard to find the best bargains out there", and it has “great control over the tremendous buying power at the dollar price-point”. Its prices are primarily designed to attract those with financial difficulties, but it has also become popular with more affluent customers. They buy products on an order-by-order basis and have no material long-term purchase contracts or other assurances of continued product supply or guaranteed Flat pricing is a strategy where a limited number of prices are used for all product offerings, such as in dollar stores where every product is priced at one dollar.
  • 18. Page 18 product cost. No vendor accounted for more than 10% of total merchandise purchased in any of the past five years. Competition Dollar Tree vs. Comparable Dollar Stores Dollar Tree is a discount retailer that competes with other stores that have similar business models. Thus, the company faces direct competition from dollar-store chains, such as Family Dollar Stores (FDO) and 99 Cents Only Stores (NDN), that sell many of their products at or around $1. Dollar Tree vs. Big-Box Sellers As a discount retailer, Dollar Tree faces significant competition from big-box sellers like Wal- Mart Stores (WMT) and Target (TGT), whose enormous scale allows them to extract value in their inventory purchases and pass these savings on to consumers. Dollar Tree Stores, however, attempts to differentiate itself with its smaller-format stores that enable the company to open shop in most rural, small town, and urban markets while incurring fewer overhead costs. Along these lines, the company is more focused on urban areas than Wal-Mart, which has traditionally focused on dominating rural and small-town markets. Figure 2.1.3: Dollar Tree Competitor’s Stores
  • 19. Page 19 Comparisons among Competitors of Dollar Tree [14] During 2010-2014 Dollar Tree has maximum net profit margin, gross margin, current ratio, and earnings per share. Figure2.1.4: Competitor Analysis, source: dollar tree. Figure 2.1.5: Net margins of Dollar General, Family Dollar, Dollar Tree.
  • 20. Page 20 Comparison in increment in annual stock price of Dollar General, Family Dollar and Dollar Tree for the year ended 2014. Figure2.1. 10: Increment in Annual Stock Price. 2.2)UNIQUE PRICING STRATEGY II A unique pricing strategy used by other coffee chains or restaurants is that they have a set price for each product which they deliver to the customer. They have set menu card and each item to be sold at different price. Other coffee chain price plays a very important role. Like for example in the following picture we see the set prices of café’s item. Figure 2.1: Cafe’s menu (source: Internet)
  • 21. Page 21 COMPANY PROFILE Ziferblat (free space) is an International coffeehouse chain, at which customers pay for the time spent there, rather than the food – offering unlimited free wi-fi, tea and biscuits. Figure 2.2.1: Source Wikipedia Ziferblat a small Russian for "clock face," might be the first shop of its kind in the UK, but it’s well established in Russia. Its founder is Ivan Mitin, a mustachioed man from Moscow with a tendency to philosophize. Ziferblat, a small Russian chain of coffee shops opened a location in London. Ziferblat which started in 2011, opened nine Russian branches and one in the Ukraine before breaking into Western Europe. Some of the features of the café chain are[16]:  Cafe Ziferblat offers customers all-you-can-eat biscuits and endless tea.  It charges for time spent, and customers must prepare their own coffee.  They must even wash up their own dishes Industry Restaurants Genre Coffee house Founded 2011 Key people Ivan Mitin Number of employees ~170 Website ziferblat.net Figure 2.2.2: Logo of Ziferblat
  • 22. Page 22 BENEFITS OF ZIFERBLAT  Guest must serve themselves using a coffee machine and kettles.  Complimentary snacks, including fruit and vegetables, can be prepared in the kitchen.  There’s also a piano, a record player and unlimited Wi-Fi to provide entertainment.  Customer can help themselves to coffee from the professional machine, or have it made for them [17]. Figure 2.2.11: Self Service of Ziferblat. PRICING STRATEGY ADOPTED BY ZIFERBLAT Ziferblat uses PAY PER MINUTE pricing strategy[18] . Pay per Minute pricing is basically a payment structure in which a customer has access to use potentially unlimited resources for free except the time they spend there. In ziferblat customer can use the space as they like. Sit and work here with their computer, can draw pictures, read a book, invite their friends or meet someone new and have a chat with them, and everything is for free here, except for the time people spent time costs three pence a minute. They charge 6 pence per minute and that’s all.
  • 23. Page 23 Ziferblat using interesting type of pricing strategy. They are essentially renting out working space under the most flexible terms and conditions possible. While it’s billed as a ‘cafe’, their pricing model is more in lined to a co-working space, though pricing by the minute is what makes them innovative. Ziferblat charging customers 3p per minute probably doesn’t yield a hefty profit margin. However, the concept itself doesn’t feel like a gimmick. It’s a model that could have a bright future[19] . UNIQUENESS OF PAY PER MINUTE PRICING STRATEGY  Innovative strategy : Idea of paying the time rather than the consumption is really innovative[20].  Developing strategies : From the business point of view it is improving its build a clear social media communication strategy and developing a revenue strategy [17] .  Treating customer as micro tenants : The key difference between Ziferblat and the other standard coffee chains is that they are not treating customer just like someone they want to get money from. It is really significant that they don’t call people as their customers, they call their customers as micro-tenants[17].  Making people comfortable as they like : They want people to be there and to share the space in a way they feel comfortable [17]. ..
  • 24. Page 24  Uniqueness.  Absence of directcompetition  Internationality  Appropriate choice of area  Flexiblepricingsystem  Vegan/vegetarianfriendly  Government support.  Partnershipwith universities’ student.  Capture large number customers.  Expansion.  Organise get-together. STRENGTHS OPPORTUNITIES
  • 25. Page 25 C.3) Place (Distribution) Strategy Place or distribution strategy refers to how an organization will distribute the product or service they are offering to the end user. The organization must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organization is to meet its overall marketing objectives. Distribution channels in marketing are one of the classic “4 Ps” (product, promotion, price, place a.k.a. “distribution”). They’re a key element in your entire marketing strategy — they help you expand your reach and grow revenue. B2B and B2C companies can sell through a single distribution channel or through multiple channels that may include: Figure 3.12: Channels of Distribution. In determining the best structure (or structures) for your business you’ll need to consider the following questions:  What is the most convenient means for customers to obtain the products or services they want?  What is the specific level of customer service standard required?  What is the most cost-efficient way of providing accessibility and service?  How many customers are there, where are they located, what is their average transaction value?  What structures do your competitors use and how efficient are they?
  • 26. Page 26 3.1)A UNIQUE DISTRIBUTION STRATERGYIN CAR INDUSTRY When we talk about car industry, before a car can be sold to a consumer, it has to be sold from a manufacturer to a dealership. You don’t buy your Ford Focus from Ford; you buy it from your local Ford dealership. Tesla Motors Inc. an American automotive company has a much different distribution strategy from that of other car manufacturers including Ford (F), Fiat Chrysler (FCAU), and General Motors (GM). Unlike legacy automakers, Tesla does not have a dealer network. According to Tesla CEO Elon Musk, “Existing franchise dealers have a fundamental conflict of interest between selling gasoline cars, which constitute the vast majority of their business, and selling the new technology of electric cars.”[21] Tesla Motors, Inc. (TSLA) an American automotive and energy Storage Company that designs, manufactures, and sells electric cars, electric vehicle, power train components, and battery products. Founded in 2003 by Elon Musk (Current CEO), JB Straubel (CTO), Martin Eberhard, Marc Tarpenning, and Ian Wright. [22]  Market Cap Asof May 2015 $25.5 Billion  Country UnitedStates  CEO Elon Musk  Employees 10,161  Sales $3.2 B  Headquarters Palo Alto,California[23]  Tesla Roadster First manufactured product, offered from 2008-2012  Model S Currently only vehicle offered, 2012-present  Model X SUV, expected to be sold in early 2016 Figure 3.1.1: Logo of Tesla Motors
  • 27. Page 27  Model 3 Expected to be offered in 2017 Target Price: $35,000  IPO: January 29, 2010, raised US$226 million First American Car Company to go public since Ford (F) in 1956 Turned first profit in Q12013  Business Level: Focused Differentiation  Target early adopters with high income. Model X target audience includes women, who make up a larger proportion of luxury SUV buyers.  Corporate Level: Related Constrained Dominant business selling cars but also sells electric power train parts  Cooperative Level: Strategic Alliances Panasonic, Toyota, Daimler, Mercedes Benz,  International Level: Transnational U.S, Asia, Australia, Europe, and Canada. Centered in California. [24] Figure 3.1.2: Tesla Delivery Country. Source: Internet
  • 28. Page 28 TESLA’S DISTRIBUTION STRATEGY: Tesla's strategy of direct customer sales and owning its own stores and service centers is a significant departure from the standard dealership model currently dominating the U.S. vehicle marketplace [25]. Tesla Motors is the only automaker that sells cars directly to consumers, with all other automakers using independently owned dealerships, although some automakers provide online configuration and/or financing. Tesla is indeed a different company with a different strategy. To put it in CEO Elon Musk’s words, “Our technology is different, our car is different, and, as a result, our stores are intentionally different.”[21] Figure 3.1.3: Tesla's Contact Point with Customers. Source: Tesla ONLINE SALES: Tesla (TSLA) sells its cars online. It lets buyers book a car online, without having to visit any of the dealers. Using a direct channel of distribution to connect consumers with the product, especially a Web-based channel, can have several benefits. Most importantly, web-based selling has:  Low overhead  Gives the product a potentially global reach.  Higher rates of profit as no intermediaries share the profits Figure 13: Direct Distribution Channel (Used by Tesla).
  • 29. Page 29  Convenientforcustomers  Available 24 hours a day  Many customers appreciate the opportunity to give profits directly to producers and artists. COMPANY-OWNED STORES: Tesla operates stores or galleries usually located in shopping malls right alongside brands like Zara, Bloomingdales and Sees Candy — 22 in U.S. states and Washington DC. Customers cannot purchase vehicles from the stores, but must order them on the Tesla Motors website instead. The stores act as showrooms that allow people to learn more about Tesla Motors and its vehicles. Secondly the showrooms are only the size of a small shop, often only squeezing in a single vehicle into the space. This radical departure from car marketing norms completely changes the traditional customer math. Most cars dealerships would be lucky to get a hundred potential customers perusing the cars on their lot each day. But because of their location, Tesla gets tens of thousands of people walking right past their car, every single day. Incredibly, many sales have come from people who had zero interest in buying a car until they saw Tesla’s showroom (They were probably in the mall to buy a dress or see a movie). Tesla believes in getting physically closer to your potential customers, so that they are more likely to consider your product or service. The galleries are located in states with more restrictive dealership protection laws such as Texas and Michigan, which prevent discussing prices, finances, and test drives, as well as other restrictions. TEST DRIVES: Tesla Model S test drives are available at all Tesla store locations. The first step is to request a test drive on Tesla’s website. A product specialist will then contact you within one day to schedule a convenient time. Unlike other car companies, Tesla custom builds each Model S for a specific customer. Test drives are about 15 minutes long and designed to demonstrate the unique capabilities and performance of Model S. Tesla occasionally hosts test drive events for those who don’t live near a store. You can reserve a test drive in advance from our event schedule. [26]
  • 30. Page 30  Patents  Marketing expertise  Innovative products and services  Product Quality  Eco-friendly Product Line  Increase Market Share through High- Growth EV Industry  Governments promote clean energy Is Tesla Pursuing the Correct Sales and Distribution Strategy? The biggest challenge for a company in setting up its own distribution network is capital, or rather the lack of it. It takes a substantial amount of money to set up a distribution channel. For this very reason, vehicle manufacturers including Ford (F) and General Motors (GM) team up with third parties to sell their vehicles. NO DEALERSHIPS, WHY? Tesla, however, is using a direct business to consumer model, and choosing to sell their cars via company owned stores. Tesla's vice president of business development, in an interview, "We don't think that we would succeed using an intermediary model where we sell a product that someone else sells to the public."[27] There are a couple of reasons why:  Tesla feels as though there is a “fundamental conflict of interest” for dealers trying to sell both traditional gasoline vehicles and electric cars- they believe the products are just too different to have a salesman fairly selling both.  Electric cars are so new and unique that the sales cycle is often longer. Customers require a great deal of information and education before making a purchase, and Tesla would rather entrust the responsibilities of “electric car education” to their own employees. Tesla- dedicate1d salespeople can have the luxury to spend time educating, as opposed to a salesman at a dealership whose main goal is a quick sale and its corresponding commission. STRENGTHS: OPPORTUNITIES:
  • 31. Page 31 ACHIEVEMENTS: 1) Tesla Motors on Forbes Lists as of May 2015  #1 Innovative Companies  #1,700 Global 2000  #488 in Market value  #113 America's Best Employers[23] 2) As of September 1, 2015 there were 2,800 superchargers in 500 stations worldwide. [28] 3) Tesla sells record 10,030 cars in Q1 2015, up 55% year over year.[29] Figure 3.1.4: Model S Deliveries, Year Over-Year Growth 4) Tesla has outperformed its major competitors FORD, GM and TOYOTA in Q1 2015. Figure3.1.5: Tesla has Outperformed Other Automotive Companies. Source: NYSE
  • 32. Page 32 3.2) UNIQUE DISTRIBUTION STRATEGY IN MOBILE PHONE INDUSTRY India is traditionally known for the offline retailing. However, the new player disrupted the market by entering into exclusive arrangements with the leading online players like Flipkart and Amazon. . And then followed Chinese phone-maker Xiaomi who sold their products only on Flipkart. Nobody seemed sure that Xiaomi could do well in the Indian market. However, now after selling millions of smart phones in a year, the company is further expanding in India. Xiaomi is a privately owned electronics company that designs, develops, and sells smart phones, mobile apps, and other technology products. Xiaomi is known for offering smart phones at competitive prices by selling directly to consumers via online marketplaces with minimal marketing spending. It is the top smart-phone company in China, as of the most recent quarter of business, thanks to its appeal among fashion conscious, young consumers who can’t pay up for the latest Samsung or Apple device but want an affordable phone that they can be proud of and show off in public. That’s a recipe which Xiaomi believes can be adapted to India, Southeast Asia and other emerging markets. “We are an e-commerce company. We live on the internet. We are selling exclusively through e-commerce. And the price there can be much lower, because the price on e- commerce is essentially fulfillment and shipping cost,” explains Hugo Barra, VP Global, Xiaomi. [30] Founded by Lei Jun in 2010, the company is one of the world’s most valuable technology start- ups. Began its operation in August 2010 with Android based firmware MIUI. [30]  Country China  CEO Lei Jun  Sales in 2014 61 million units[31]  Headquarters Beijing China  International headquarter Singapore for its global expansion activities Figure 3.2.1 : Logo of Xiaomi.
  • 33. Page 33  436 after service outlets in China Figure 3.2.2 : STP (Segment, Target & Positioning) strategy of Xiaomi. ARENAS  Republic of China, Philippines, India, Indonesia, Thailand, Vietnam, Russia, Turkey, Brazil, Mexico  Smart phone, Smart TV, Wi-Fi router, set-top box, cloud storage, power bank, etc.  Innovative MIUI interface STRATEGIES ADOPTED BY XIAOMI  The Triathlon Model - It is an integration of software, hardware and internet service. The three pillars to its strategy are:  Hardware as a service strategy  An e-commerce sales model  Focus on software, services and content Xiaomi has a different business model than Apple or Samsung. Apple makes its profit on the hardware, while Xiaomi makes their profit on services.  The Aggressive Pricing Policy - Differentiation by Cost Leadership Offering products at prices as close to the cost, rather ‘Bill of Material’ as possible.
  • 34. Page 34 The Mi3 handset from Xiaomi sells for $327, whereas products having similar specifications, from Apple or Samsung are sold at around $870.  Focus on Social Media - Xiaomi relies basically on internet to market its products and fuel sales. It leverages social media and word of mouth marketing to create a viral effect among the internet acquainted youth  “Customer-obsessed” strategy - Taking customer feedbacks to keep improving. It runs frequent events such as ‘fan festival’ online shopping event with discounts and coupons.  The Limited inventory concept - Xiaomi undercuts inventory cost by maintaining a very low inventory. When Mi3 were launched initially, the first batch of 1 lack units sold out in less than 2mins and the company took another 7 days to release 1 lakh more units, which were then immediately sold out again.  An eco-system of Smart products - Smartphone Industry is expected to saturate in coming few year. Xiaomi provides an integrated model of hardware and software.  Joint Ventures –  Partnered with telecom carriers such as Hutchison Whampoa Ltd and PCCW Ltd in Hong Kong.  Flipkart in India.  Starhub in Singapore. BENEFITS OF PARTNERING WITH KEY INDIAN E-TAILER :  Supply chain control  Fastest go-to-market  Easy setup  Logistics support  Identify early adopters and access to target consumers  Trusted established partner
  • 35. Page 35 DIFFERENTIATORS  E-Business Capability : “We are experimenting with a new sales channel and getting into general trade to increase our reach and to make our products available more easily” [32] said Manu Jain, India operations head at Xiaomi. Xiaomi also shuns traditional models of advertising and depends solely on Social Media marketing and word-of-mouth. Xiaomi don’t invest in traditional marketing, it lives on the social media which is a lot less expensive to us.  Pricing Policy : Sell through brick and mortar stores is expected to hurt the company’s already wafer- thin margins. “The cost of doing offline business is of course higher... the margins will be affected” [32], said Manu Jain, India operations head at Xiaomi. The company said the move would have no impact on Xiaomi’s pricing in India. “We will not pass on the cost to consumers. We determine our product’s prices by keeping the online sales channel in mind, We will keep our supply chain lean and efficient to avoid higher costs”[32] Jain said. Xiaomi makes money by selling apps, games and other online services. Xiaomi have managed to keep the prices so low is because they sell at near cost price with low single digit gross margins.  Image: Apple of China FORMULATE DISTRIBUTION STRATEGY  Determine most optimal retailer/s to partner with and most appropriate deal structure  Understand how to deal with network operators and structure deal  Deeper dive into channel logistics  The Mi3 handset from Xiaomi sells for $327, whereas products having similar specifications, from Apple or Samsung are sold at around $870.
  • 36. Page 36 XIAOMI OFFERED PHONES IN INDIA EXCLUSIVELY THROUGH FLIPKART Flash sale was the reason why Xiaomi decided to work with Flipkart when it planned to launch in India. Flipkart has 22 million registered users which are growing at over 100% annually. Xiaomi has been practicing the weekly flash sale model to sell its phones since the very beginning. “It (the flash sales model) is different in every new market that we go into. In India, we chose Flipkart because it is a technology company. We (Xiaomi and Flipkart) see eye to eye on things; we have both built ecommerce platforms and we both know what it means to sell products online. We have, together, perfected the model here in India and we are going to evolve a lot,” says Barra. [33] Figure 3.3.3: How To Buy Your Mi Phone? “The Xiaomi partnership has been a unique one. While we have worked with global brands on exclusive partnerships before, the sales model we followed with Xiaomi was the first of its kind in this country,” says Michael Adnani, VP – Retail and Head – Brand Alliances at Flipkart. [33] For Xiaomi, which is called just Mi (pronounced ‘mee’) in India, the exclusive deal with Flipkart has seen over 100,000 units of its flagship Mi3 being sold in less than three months time. The company has since defocused itself from Mi3 sales.
  • 37. Page 37 “This partnership gave us unique exposure to demand generation and marketing. It also tested our technological capabilities – and helped us further streamline the user experience on our site with every sale. And our ability to cater to these customers across the length and breadth of the country is also rapidly developing with each partnership. We have set new records with the Mi3 and Redmi – selling out 20,000 – 40,000 phones in the matter of two to four seconds. This, in spite of the fact that the flash sale model had never been tried before in Indian e-commerce. This is a sure indicator of the fact that online shopping in India, along with its customers, is finally coming of age. More and more customers are willing to experiment and trust the online model as long as they see value in it,” explained Michael.[33] Michael spoke about Flipkart’s learnings in terms of technology. “Additionally, of course, there have been the technology learnings we have gained from each and every sale. We have dealt with unprecedented traffic and learned from the initial hiccups, scaling up each time to ensure that the subsequent user experience is smoother and more seamless. This has helped us test our claims of agility and scale in our technology to the fullest.” [33] WHY ONLINE DISTRIBUTION ? Newer entrants into the Indian smart phone space are choosing to ignore the traditional ways of advertising and retailing in favor of online channels. Some key advantages of online when it comes to smart phones were : 1. Less Time : Getting to scale is very important in India and yes, in the long run, offline is the only way of getting the scale but offline distribution takes time to build. There are a number of steps involved in establishing a physical distribution network, e.g. identifying a strong national distributor and regional distributors. 2. Faster consumer access : On the other hand, with online channel, a new entrant can hope to reach the consumers in top cities pretty fast. Hence, if a brand wants to attain scale and speed, online is a good cost effective option. 3. Overheads cutting : This also cuts out the overheads such as rent, salary of store staff and IT infrastructure.
  • 38. Page 38  Launching of new products in market frequently.  Innovative and Featured products.  Low selling price of products.  Effective promotion campaigns.  Increasing growth rate selling of smart phones in Indian market.  Entry into more International market. 4. More Profit Margins : Sell through brick and mortar stores is expected to hurt the company’s already wafer-thin margins. The cost of doing offline business is of course higher, the margins get affected. 5. Low Inventory carrying cost. 6. STRENGTHS: OPPORTUNITIES:
  • 39. Page 39 ACHIEVEMENTS 1. 26.11 million Miphones sold in H1 2014. Figure 3.3.4: Source Mi 2. Highest 4G handset Indian market share. Figure 3.3.5 : 4G Handset Indian Market Share. Source: CMR. 3. Xiaomi Customer Service Center won 2014 National Best Voice Prize in China.[34] 4. Xiaomi Ranks No.6 Most Admired Company in 2014 in Fortune China. [34] 5. Xiaomi rises to No. 3 in Global Smartphone Market. [34]
  • 40. Page 40 C.4)PROMOTION Promotion refers to raising customer awareness of a product or brand, generating sales and creating brand loyalty. It is one of the four basic elements of the market mix which include the four P’s i.e. price, product, promotion and place. Companies do promotion to inform and convince individuals to purchase a product, subscribe to a belief, or support a cause. Promotion is also defined as one of five pieces in the promotional plan these are personal selling, advertising, sales promotion, direct marketing and publicity. EXAMPLE- Coke released new bond film creating attention which then got promoted across all social channels by people spreading the information due to excitement. [35]  There are many companies who use these kind of promotional techniques to enter into the market and add new ideas in order to persist for long. But there are few companies who apply unique tactics like uber as compared to its competitors like lyft, Ola cabs, taxi for sure, meru etc. 4.1)PROMOTIONALSTRATEGYOF LYFT Figure 4.1.1: Lyft car  Introduced lyft line which provides opportunity to save money by sharing a ride headed in same direction.  Use of social media like facebook and twitter.[36]
  • 41. Page 41 PROMOTIONALSTRATEGYOF OLA CAB Figure 4.1.2: Ola cab  Known as radio taxi service provider.  Provide promo codes for huge discounts.  When auto unions call a strike it provides cab at INR 13 per kilometer.[37] PROMOTIONSTRATEGYOF TAXI FOR SURE Figure4.1.3: Taxi for sure cab  Give choice of choosing driver and car too.  Provide promo codes on Tuesday.
  • 42. Page 42  Promotion by offline advertisement, web, mobile.[38] PROMOTIONALSTRATEGYOF MERU Figure4.1.4: Meru taxi  Lost and Found tracking system for any item left in a cab can be traced to the vehicle reporting has used.  Started ad campaigns and released radio ad campaign.  Don’t drink and drive promotion to encourage people to call for a meru instead of drinking and driving.[39] UBER Figure 4.1.5: Ubers logo Figure 4.1.6: Uber cab
  • 43. Page 43  Uber Technologies Inc. is an American international transportation network company headquartered in San Francisco, California.  The company develops markets and operates the Uber mobile app, which allows consumers with Smartphone to submit a trip request.  Since Uber’s launch several other companies have copied its business model a trend came to be known as Uberification.  Uber was founded by Garrett Camp and Travis Kalanick in 2009.  Uber's pricing is similar to that of metered taxis although all hiring and payment is handled exclusively through Uber and not with the driver personally.  Uber too provide choice of driver and vehicle.  Don’t not spend on media, TV, print and don’t promote post on social networking sites.  Focused on building quality goods. [40] UNIQUE STRATEGIES BYUBER  Uber delivers kites on Makar sankranti. Figure 4.1.7: UberPatang  Uber team up with bookmyshow to provide discounted rides.
  • 44. Page 44 Figure: 4.1.8: Free ride to T20 match  Uber offer a lovers ride in an Uber Chopper on Valentine’s Day. Figure 4.1.9: Uber Chopper.  Uber gives discounts for everyone travelling to the Mumbai Business Week. Figure 4.1.10: UberGo
  • 45. Page 45  They announce for free pick up and drop service in Chinnaswamy Stadium in Banglore on April 2015 for T20 Cricket Figure 4.1.11: Free pickup to stadium  They celebrate Chandigarh’s 48th Birthday and give a 48% discount on the same. Figure 4.1.12: Celebrating 48th birthday of Chandigarh  To compete at lower price levels, Uber introduced UberGo, UberTaxi and UberX.[41] Figure 4.1.13: Low cost cars
  • 46. Page 46 UBER’S MARKET SHARE Figure 4.1.14: Uber’s growth 2014-2015  Uber dominate in market coverage operating in 300 cities in 60 countries while lyft operate in 60 cities in U.S.  An average 46% of all total paid cars were through Uber in major markets of U.S. i.e. steep rise from a mere 15% in the first quarter of 2014.  With the introduction of cheap cars like Uber X, Uber go its market share expanded.[42] Figure 4.14.15: Competitive analysis of Uber and Lyft
  • 47. Page 47 4.2) UNIQUE PROMOTION STRATEGY II Nike adopted unique promotional strategies ,like making yourself as a hero and your lazy side as villain ,make you involve in the story which makes them different in the shoe making industry. Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company focused on providing high quality running shoes designed for athletes by athletes. Founder Philip Knight believed high-tech shoes for runners could be manufactured a competitive prices if imported from abroad. Nike v/s other shoe manufacturing companies: Promotions are mainly focused on the consumer with prices at trade promotions increasing or decreasing with the context of the specific promotion drive. Both Nike and Other companies are into a lot of sponsorships and advertising. BRAND EQUITY: Nike centered their brand equity model on the platforms, the endorsement focus strategy, creating a dominant media presence, development of Flagship stores, Nike own Industry Apparel, accessories Founded 1964 (as Blue Ribbon Sports) 1971 (as Nike, Inc.) Key people PhilKnight (Chairman) MarkParker (President and CEO) Products Athletic footwear and apparel,sport equipments and other athletic,and recreational products Figure 4.2.1: Logo of NIKE.
  • 48. Page 48 and sub branding. The Other Company’s strategies were based on, endorsement focus strategy, advertising, sponsorship programs focusing on major global events, sports associations, and teams, and sub-brands. SPONSORSHIP OF TEAMS AND EVENTS: This will help them to create awareness with help from different types of media. In contrast Nike has their focus on individuals like M. Jordan and T. Woods and their success stories. ADVERTISING STRATEGY: Nike’s advertising strategy was to create dominant presence in media. Nike created media presence in several trend setting United States cities. TV ads linking Nike to a city were used, but real drivers were huge oversized billboards and murals on buildings that blanketed cities with messages featuring key Nike sponsored athletes, not products. Other companies took up the competition with Nike through raising their advertising budget to a level that made it possible to compete with Nike on the same conditions and the same strength as Nike did to capture the consumer interest. FLAG SHIP STORES: Nike's third strategy was to develop, flag ship stores, Nike Town shops in bigger cities, first national, and then abroad. Nike was the first company to establish flagship stores and it turned out to be a sensation. Other company’s choice was with which they made great success Promotional strategies of NIKE: In 1985, Nike signed up then-rookie guard Michael Jordan as a spokesperson. Nike’s bet paid off-the Air Jordan line of basketball shoes flew off the shelves and revenues hit over $100 million in the first year alone. In 1988, Nike aired the first ads in its $20 million “JUST DO IT” ad campaign. The campaign, which ultimately featured 12 TV sports in all, subtly challenged a generation of athletic enthusiasts to chase their goals. As Nike began expanding overseas to Europe, it found that its U.S.-style ads were too aggressive. Nike realized it had to “authenticate” its brand in Europe, so it focused on soccer and became active as a sponsor of youth leagues, local clubs, and national teams. Nike’s big break came in 1994 when the Brazilian team (the only national team for which Nike had real
  • 49. Page 49 sponsorship) won the world cup. That victory transformed Nike’s image in Europe from a sneaker company into a brand that represented emotion, allegiance, and identification. And by 2003, overseas revenues surpassed U.S. revenues for the first time. In 2007, Nike acquired Umbro, a British maker of soccer-related footwear, apparel, and equipment. The acquisition helped boost Nike’s presence in soccer as the company became the sole supplier of uniforms to over 100 professional soccer teams around the world. In addition to expanding the brand overseas, Nike successfully entered new athletic footwear, apparel, and equipment product categories by using endorsements from high profile athletes and consumer outreach programs. SOME OF THE BEST PROMOTIONAL STRATEGIES OF NIKE INCLUDE:  Endorsement from high profile athletes- The Nike GOLF brand, endorsed by Tiger Woods, has changed the way professional golfers dress. Figure4.2.2: Tiger Woods in NIKE GOLF brand. In tennis, Nike has aligned Maria Sharapova, Roger Federer, and Rafael Nadal to push its line of tennis clothing and gear. Figure 4.2.3: Maria Sharapova and Roger Federer promoting NIKE.
  • 50. Page 50 To promote its line of basketball shoes and apparel, Nike continues to feature basketball superstars such as Kobe Bryant and Lebron James. Figure 4.2.4: Lebron James promoting NIKE.  Partnership with Apple: In past few years, Nike’s lead in running category has grown to 60% market share thanks to its exclusive partnership with Apple. Figure 4.2.5: NIKE+ Running GPS App for iPhone, iTouch and iPod. Nike+ (plus) technology includes a sensor that runners put into their running shoes and a receiver, which fits into an iPod, iTouch, or iphone. When the athlete goes for a run or hits gym,
  • 51. Page 51 the receiver captures his or her mileage, calories burned, and pace and stores it until the information is downloaded.  Organizing events-  Hosted human race events in 24 countries: In 2008 and 2009, Nike+ hosted the Human Race 10K, the largest and only global virtual race in the world. Figure 4.2.6: Nike+ hosted the Human Race in London. The event, designed to celebrate running, drew 780000 participants in 2008 and surpassed that in 2009. To participate, runners register online, gear up with Nike+ technology, and hit the road on race day, running any 10K route they choose at any time during the day. Once the data is downloaded from the Nike+ receiver, each runner’s official time is posted and can be compared to the times of runners from around the world. Figure 4.2.7: NIKE+ Human Race Promotion.
  • 52. Page 52  Hosted events at 2015 Super Bowl in Phoenix: At the 2015 Super Bowl in Phoenix, Nike hosted multiple events including a game-day tailgate party featuring current N.F.L. players and celebrity chefs. It also sponsored the Nike Speed Zone, a free three-day consumer event with activities such as a 40-yard dash, a speed and agility course, training clinics, skill challenges, and entertainment. Figure 4.2.8: Event hosted by NIKE at Super Bowl in Phoenix.  Nike women’s san Francisco half marathon 2015 The 12th annual women's race drew 25,000 participants who conquered the 13.1-mile course from Union Square to Marina Green. Figure 4.2.9: Nike women’s san Francisco half marathon 2015
  • 53. Page 53  Brand recognition  High product quality  Effective marketing strategy  Capacity of innovation  Strong distribution chain  Strong R&D  Strong customer relationship  Favorable industry trends  Direct to consumer  Emerging market growth  Innovative product Strengths Opportunities
  • 54. Page 54 CONCLUSION The concept of the unique marketing mix and four P’s have been strongly dominant paradigm marketing stage for different companies. Marketing managers must realize its usefulness in the marketing of goods and services. Marketing mix analysis is a fundamental step towards effective strategy. The four P’s of marketing including the product, price, place and promotion are the four wheels of the vehicle on which the path of an organization’s marketing success is actually dependent. Marketing mix plays a crucial role while deciding the strategy of an organization. It is the first step even when a marketing plan or a business plan is being made. This is because unique marketing mix decision will also affect segmentation, targeting and positioning decisions. Based on products, segmentation and targeting will be done. Based on the price, positioning can be decided. And these decisions will likely affect the place and promotion decisions. Thus, the unique marketing mix strategy goes hand in hand with segmentation targeting and positioning. It can be seen from the above companies; all the four variables of marketing mix are interrelated and affect each other. So the overall marketing mix can result in the customer base for some improvement. Marketing mix analysis is a fundamental step towards effective strategy. Where other analysis are more related to environment and feasibility analysis, the 4 Ps of marketing including the product itself, pricing, placement and promotion are the four wheels of the vehicle on which the path of an organization’s marketing success is actually dependent.
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