1. The Marketing Mix
The firm attempts to generate a positive response in the target market by blendingthese four
marketing mix variables in an optimal manner. Now, lets see the marketing mix for new launch
of AMUL’S CHOCO CRUNH i.e.,their products, price, place and promotion.
Competition Based Pricing
Setting the price based upon prices of the similar competitor products.Amul’s new launch Choco
Crunch Pricing is based on three types:-1) Product is lasting distinctiveness from competitor's
product. here we can assume a)The product has low price elasticity. b) The product has low cross
elasticity. c) Thedemand of the product will
rise.2) Products have parishable distinctiveness from competitor's product, assuming the product
features are medium distinctiveness.3) Products have little distinctiveness from competitor's
product. assuming that: a)The product has high price elasticity. b) The product has some cross
elasticity. c) Noexpectation that demand of the product will rise.Price is the factor that beats out
all other choclates in the competition. Such asCadbury. If you have been you must have seen that
Amul and Cadbury frenchise areright next to each other. But if given the choice people would
prefer Amul productsand not Cadbury as the prices of Amul product is quite cheap as compared
to their competitors like Cadbury and this has worked as an advantage for Amul since most
of the customers prefer amul product over cadbury’s product, due to this price factor.The prices
for an average milk product ranges between Rs. 20 and Rs. 35.
2. Comparing Prices Of AMUL and CADBURY:ProductAMUL
Dry fruit ChocoCrunch(pack of 20pcs)
By comparing the prices of the products of Amul and cadbury, we can see that the prices offered
by Cadbury are on the higher side as compared to Amul. Thus we cansee that cadbury’s target
customers are professionals, working couples and families inthe sec- a and sec-b categories that
detest the loud ambience of Amul and who arewilling to pay higher prices.Whereas Amul’s
typical customers are between the age of 07-50 years, which showsthat these include children’s,
youngsters and also aged people’s or are from the upper middle class or middle class families,
who can afford these prices and looking at thesetarget customers the company has designed its
outlet to look young and trendy withvibrant colors such as brownie, black current(purple) and
Butter scotch predominatingthe outlets.
A successful product or service means nothing unless the benefit of such a service can be
communicated clearly to the target market. An organisations promotional strategycan consist of:
Is any non personal paid form of communication using any form of mass media?
3. Involves developing positive relationships with the organisationmedia public. The art of good
public relations is not only to obtain favorable publicitywithin the media, but it is also involves
being able to handle successfully negativeattention.
used to obtain an increase in sales short term. Couldinvolve using money off coupons or special
Above A Pull Strategy (Left) Push Strategy (Right).
Communication by the manufacturer is not only directed towards consumers to createdemand.A
push strategy is where the manufacturer concentrates some of their marketing efforton promoting
their product to retailers to convince them to stock the product. Acombination of promotional
mix strategies are used at this stage aimed at the retailer including personal selling, and direct
mail. The product is pushed onto the retailer,hence the name.A pull strategy is based around the
manufacturer promoting their product amongst thetarget market to create demand. Consumers
pull the product through the distributionchannel forcing the wholesaler and retailer to stock it,
hence the name pull strategy.Organisations tend to use both push and pull strategies to create
demand from retailersand consumers.
An Amul butter ad on Pakistan's Kargil War fiasco. The image shows the "Amul baby" in
between George Fernandes and Vajpayee.Its advertising has also started using tongue-in-cheek
sketches starring the Amul babycommenting jovially on the latest news or current events. The
pun in her words has been popular.The Amul ads are one of the longest running ads based on a
theme, now vying for theGuinness records for being the longest running ad campaign ever.
Sylvester daCunha,was the managing director of the advertising agency, ASP, that created the
campaignin 1967 whose charm has endured fickle public opinion, gimmickry and all else.
A strong emphasis on target costing, design-to-cost, valueengineering, and design for
manufacturability. Minimum product variety. Significant manufacturing and
accountinginvolvement in development. Suppliers are well-integrated intothe development
process. Factory uses high volume equipmentspecifically oriented to the product; automated
Quality /Reliability /Dependability
A disciplined and rigorous product development process. Strongfocus on understanding
customer needs and providing productsthat meet those needs. Use of techniques like FMEA,
FTA,FRACAS, DOE, Taguchi Methods, poke-yoke, and reliability prediction. Heavy emphasis
on testing and qualification.Processes are oriented to self-checking and adjustment and useof
computer- aided inspection and test equipment.
Use of modular design approaches. Sufficient resources toundertake development processes
underway. Continuoussurveillance of the marketplace and understanding of customer needs.
Well-defined development processes based on tightlyintegrated design automation tools. Well-
planned and managed programs with clear definition and acceptance of responsibilities. Process
equipment to handle a wide range of work envelopes; FMS; quick set-up and changeover.
A technology plan and roadmap based on the business and product strategy and plan. Effective
technology management.Process to review new technologies developed outside for applicability
internally. Effective process to deploy n ew
technology to development programs. State-of-the-art designand analysis tools to support
requirements of new technology.Policies to invest in training and development of personnel
tomaster new technology. Culture open to new ideas and takingrisks. Investment in new process
A starting point is to define and understand the company's marketplace, customer needs
andcompetition. Based on this assessment, the company's primary competitive dimensions can
beselected and a strategy defined to develop and enhance these competitive dimensions.
Oncethis is done, product and process design based on IPD can be oriented to implement
6. POSITIONING STRATEGY
When the list of target markets is made, a company might want to start on deciding ona good
marketing of a product. But an important step before developing the marketingmix is deciding on
how to create an identity or image of the product in the mind of thecustomer. Every segment is
different from the others, so different customers withdifferent ideas of what they expect from the
The Process Of Positioning The Product Of A Company:
1. Identifies the differential advantages in each segment2. Decides on a different positioning
concept for each of these segments. This processis described at the topic positioning, here
different concepts of positioning are given.The process-data model shows the concepts resulting
from the different activities before and within positioning. The model shows how the predefined
concepts are the basis for the positioning s
tatement. The analyses done of the market, competitors andabilities of the company are
necessary to create a good positioning statement.When the positioning statement is created, one
can start on creating the marketingmix.
B2C and B2B
The process described above can be used for both business-to-customer as well as business-to-
business marketing. Although most variables used in segmenting themarket are based on
customer characteristics, business characteristics can be describedusing the variables which are
not depending on the type of buyer. There are however methods for creating a positioning
statement for both B2C and B2B segments. One of these methods is MIPS: a method for
managing industrial positioning strategies byMuhlbacher, Dreher an Gabriel-Ritter (1994).
7. Studying The Demographic Conditions Of INDIA
It is expected that 80% of this targeted population will get aware about the products with the help
of the sales promotion, advertising and other marketingtactics.
Out of the People being aware of the products & the company, 60% will havesomewhat exact
knowledge of the product.
It is expected that out of the people having the knowledge of the product, withthe product
features and the requirement of milk in the country, 40% willdevelop a liking for the products.
20% of the target audience who have developed a liking, will opt for thecompany’s product as
against the products they are using for dailyconsumption.
10% of the people who might prefer the product, will actually try it for the firsttime.
5% of the people
who have tried it for the first time, might be convinced to purchase the product again
8. Thus, adding up the people trying the product and the re-purchaser of the products, it comes up
to 624960 people