Marketing for You

Marketing

for You

BARATH SRENDRAN

[email protected]

Maxim Vs Taster’s Coffee

Pioneers, Fast followers… and Slow Followers!

Different strategies used

▧Skimming strategy

▧Penetration strategy

▧Multiple segment strategy

Harley Davidson

Harley Davidson 1981

▧At one time, Harley-Davidson held nearly 100

percent of the U.S. motorcycle market. By 1981,

the Japanese companies had secured 94 percent

of the U.S. motorcycle market. How did this

happen?

Harley Davidson

▧Harley allowed the Japanese motorcycle

companies into the United States by not blocking

their entry with small motorcycles. Honda,

Yamaha, Kawasaki, and Suzuki entered the U.S.

market with small bikes and then gradually moved

into the larger sizes.

▧At that time, the Japanese manufacturers were

much more efficient producers than Harley, spent

more on advertising than Harley, and produced

bikes which were more reliable than Harley’s.

Harley Davidson

▧In the 1980s, Harley-Davidson made a recovery that many still consider miraculous—employing innovation and branding. Harley-Davidson managed their costs down. They cut their workforce by 40 percent and decreased salaries by 9 percent and froze them for two years. They visited the factories of their Japanese competitors, learned techniques such as just-in-time inventory, and made cost-saving innovations to their production lines. They also began programs to increase quality control.

Harley Davidson

▧Even though Harley refurbished their motorcycles, the associations of value needed to be re-established in the customers’ minds. After they had fixed their product problems, Harley ran several ads to inform their customers and potential customers. One memorable print ad showed a group of tough-looking motorcyclists with the headline, “Would you sell an unreliable motorcycle to these guys?”

▧The combination of process and product innovation and branding worked. By the end of the 1980s, Harley-Davidson had a 30 percent share of the overall U.S. motorcycle market, including nearly two-thirds of the large (over 750 cc) motorcycles. Today, the brand remains powerful, with considerable loyalty among their riders who say, as the ad does, “I believe the machine I sit on can tell the world exactly where I stand.”

Clarify Target Market and Positioning

▧Key to the rejuvenation of Mountain Dew was the

reformulation of its brand strategy. Research showed

that Mountain Dew had been perceived as a suburban

or even rural brand. Pepsi targeted the brand toward

urban teenagers. Mountain Dew had been known for

sports. That attribute was kept in the brand positioning

but it was moved to extreme sports. The attitude of

Mountain Dew was made edgier and irreverent. The

repositioning process took about seven years but

moved Mountain Dew into the number three position

among their target market.

Mountain Dew

Click for Playing Video

Modify Product or Service

▧How British Airways changed their Services -

Click here for Playing Video

Reformulate Branding Tactics

▧Even though you have changed your brand

strategy — targets and positioning — you must still

persuade the customer. You will likely need to

develop new brand communications to tell your

new story.

Miller Lite

▧The initial ad campaign for Miller Lite featured

retired athletes from baseball, football, and other

sports as well as author Mickey Spillane.

Initial OLD Video - Click here

New Video Click here

Old Spice

▧Old Spice was long regarded as “your

grandfather’s aftershave.” Procter & Gamble

successfully changed that position with an

aggressive communications campaign.

Old AD Old Spice - Click here

New AD - Old Spice - Click here

IMPORTANT POINTS

▧Perceived value is the maximum your

customer will pay. All of marketing is the

management of perceived value.

EMPLOYEES OF THE TRUMP HOTEL

COLLECTION

▧The Trump Hotel Collection believes that great service starts with the employees: Hire the best and make them feel special. Provide them an environment that is both challenging and nurturing. Trump service is based on the following principle: “ Our guests expect perfection — we must deliver. ” Employees are expected to perform according to Donald Trump ’ s pillars of success: passion, drive, and enthusiasm. During their orientation, new employees of Trump hotels learn the Trump service standards and their role in providing such a level of service. Their internal goal is unparalleled service for the guests, with an objective of securing 100 percent loyalty.

▧Emphasis is placed on the responsibility of the associates to recognize when a guest is upset and to make things right. Associates are recognized for coming up with their own solutions for guest issues but also understand what they are allowed to do in any situation. Complaints and how they are resolved are tracked.

▧Associates do not interact with guests until they have completed a training program and have been approved by the trainer.

The Three Main Purposes of Marketing and

Brand Strategy

▧1. Coordinate all the functions of your

organization so that they are all working together

to create and maintain a strong brand.

▧2. Concentrate your resources so that they are

used most effectively.

▧3. Communicate to those involved with the

brand — usually nearly everyone in the

organization — what they must do to create and

maintain a strong brand.

MILLER LITE Case study

BUILDING A POWERFUL BRAND STRATEGY:

MILLER LITE

▧Was Miller Lite the first low-calorie beer in the United States?

▧In 1966, six years before the introduction of Miller Lite in 1972 the first low-calorie beer in the United States was introduced— Gablinger’s Beer. Their first print ad touted Gablinger’s as “Great tasting premium beer 100 percent fat free, less calories than skim milk.”

▧Gablinger’s beer was targeted for dieters but, if you are dieting, you don’t drink any beer because low-calorie beers have only one-third fewer calories. Gablinger’s did not do well. The genius of the Miller Lite brand strategy was to avoid the obvious diet position and stake out another position. What do you think of when you hear “Miller Lite”? Tastes great? Less filling? Notice that those are two benefits. When you put them together, you get a different kind of a benefit. “Tastes great, less filling” translates to “Now you can drink as much as you want and you won’t feel filled up.” Miller Lite did not go after dieters but the opposite—people who like to drink a lot of beer.

BMW Z3 Case study

USING NONTRADITIONAL Marketing

COMMUNICATIONS: BMW

▧In 1992, BMW introduced the Z3, a two-seater convertible, designed for several markets including young singles, fortyish men and women, and older drivers—all seeking a stylish, classic roadster. According to Jim McDowell, vice president of marketing, the communications goals included stimulating “the excitement and enthusiasm of the core customer base in a way that would draw broader attention and interest to the brand.” Management referred to this as “leveraging the buzz.” To achieve this goal, BMW used both traditional and non traditional communications. The non traditional methods included placing the product in a new James Bond film, Golden Eye. While the BMW Z3 appeared in the film for only about two minutes, it created considerable impact. BMW Z3’s were lent to television hosts such as Jay Leno and radio personalities to use as they wished on their shows. The Z3 was offered in the Neiman-Marcus catalog. Dealers hosted parties for key customers where Golden Eye was pre screened. Meanwhile, these “buzz” efforts were reinforced by traditional print and television advertising. BMW has continued to employ non traditional communications. Other BMW products were placed in subsequent Bond fims. Later, BMW sponsored a series of short films on the web, each featuring a BMW vehicle, the actor Clive Owen, and a well-known director such as Ang Lee and Guy Ritchie. All these efforts helped BMW move from the clutter of traditional advertising and created substantial buzz for the brand at a manageable budget level.

Land Rover – (brand architecture to be

coherent)

▧The attributes “ rugged ” and “ adventurous ”

are held in common by all the models in the Land

Rover line.

What to do to increase sales?

▧First you should have a

Product/Service to sell.

What to do to increase sales?

▧Every Product has target customers. You need to

understand your target customers for your product.

What to do to increase sales?

▧First don’t try selling your product rather try

understanding your customers.

▧Customers demand = opportunity.

Which stage of the Market are you in?

▧You need to understand your market. In which

stage your market is?

Which stage of the Market are you in?

▧Is your market consists of

innovators, Early adaptors,

or is it a mature market and

so on.

Which stage of the Market are you in?

▧You cannot sell a regular product to the innovators and an

innovative product to a general audience.

Which stage of the Market are you in?

▧Understand your product – market fit.

Product is part of Marketing

▧The general assumption is that most sales guys

think that marketing is separate from the product.

But in reality, product is part of marketing.

Product is part of Marketing

Product is part of Marketing

▧Continuous refinement of product should go hand

in hand along with marketing efforts.

▧Remember that, There is a marketing component

to every product.

Continuous refinement of product

Creating a Purple Cow!

Be Creative, be realistic!

▧Be creative when you create offers and marketing

campaigns, but at the same time be realistic.

Be Creative, be realistic!

▧Study competitors and your industry benchmarks,

as external sources add more information to your

creativity.

customers comes first

▧Understand that customers

comes first. Creativity comes

second.

Lead Generation is the life blood of all sales.

▧Lead generation is the key to sales success.

Without proper leads there can not be good

number of sales.

Lead Generation is the life blood of all sales.

▧The time spent for Lead generation should be

more than the sales presentations that you do,

because without proper leads there would be no

sale.

Use all kinds of methods

▧Use all kinds of methods from direct marketing to

web marketing for lead generation.

Go Long term!

▧You cannot expect miraculous results within a

short duration, always marketing activities fetch

you results only in long term.

Go Long term!

▧It takes more than 27 times to see

an advertisement before a customer

decides to enquire about the

product.

▧So, sales guys should do lots of

repeated sales calls to prospective

leads.

Understanding the market is the key!

▧More than the ability to sell / persuade, one

should understand the market. Should understand

what customers buy? And why they buy?

Understanding the market is the key!

▧If you know the market, you can easily narrow

down target groups and strategize your approach

to fit to your target groups.

Is your business seasonal?

▧Understand that most of the businesses are

seasonal and few months of the year the business

would be up and in few months it will be down.

Investigate the previous years trends

▧Take time to investigate the previous years

trends and understand facts, market realities.

Plan your marketing efforts

▧Strategize and plan your marketing efforts earlier.

Plan it for all quarters.

About the Author:

Barath Surendran He has more than 16 years of

experience working for various

corporate like GE Capital, Naukri.com,

and Manipal Group. Currently Heads a

Training company Techemate

Leadership Academy. And he is a

Visiting faculty to VBS and EDI Tamil

Nadu.

For Expert Guidance, Training and

Consulting please Contact below.

Contact : +91 9444063345, +918122219316

Email: [email protected]