Marketing Mix Strategies in Indian Market - Essay Example

Marketing Mix Strategies in Indian Market: Colgate and Surf Table of Contents Introduction 3 2. Marketing Mix Strategies – A General View in India3 3. Market of Colgate and Surf in India – Brief Review 4 3.1. Marketing Strategies of Colgate 4 3.2. Marketing Strategies of Surf 6 4. Positioning Strategies of Colgate and Surf 7 5. Literature Review and Analysis 8 6. Conclusion 10 Reference list 11 1. Introduction Marketing Mix strategies generally refer to the processes used by various companies to create favourable market and market shares in a country (Marketing, 2010). The most commonly used marketing theory is attributed to the study of 4Ps within a market. It includes the price, the product, the place and the promotion techniques. In this essay, the main emphasis has been laid on the marketing mix strategies of Colgate and Surf in the Indian economy and how these strategies have led to the creation of positioning of those products in the market. The objective behind the selection of these two products in particular is that it analyses the market performance of two varying industries, that is, the toothpaste and the detergent industry. It also carries out a brief review of literature on the marketing mix theories and the positioning strategies followed by the two above mentioned products in the Indian market. 2. Marketing Mix Strategies – A General View in India In India, the marketing mix that is followed within a market is entirely related to the product, price, place and promotional strategies. The general views associated with these four perspectives have been discussed in the following paragraphs: Product, in short, solutions to the customer-base in overall India, refers to the physical good that is circulated in the whole market. In order to get a clear understanding of the product mix, one should be very clear about the concept of a product. Products not only include the physical presence of goods but also encompass services. Generally, a product that is launched into a market has to go through a life cycle which is called the Product Life Cycle (PLC). In order to study the marketing mix, one has to critically analyse every stage of PLC. The stages in a PLC are the introductory phase, the growing phase, the maturing phase and the declining phase. Price, in short, something that the customers need to pay in return of the product, refers to the valuation of that physical good, including its production costs. Price is considered to be very essential element in marketing mix. It is directly proportional to the revenues generated by the Indian economy (Marketing, 2010). Place, which means, accessibility of the customers, refers to the locations or destinations at which the physical goods will be made readily available to the customers. It also refers to the strategies that a product may follow through which it will be made available to the customers either by direct selling through counters or shops, by delivering the product at the destination of the customer or by making the product available to the customer through an intermediary. Stores or shops include retail stores, departmental stores, convenience stores, supermarkets or mom and pop stores. Products are made available at the doorstep of the customers through online ordering and billing procedure, that is, e-marketing or online shopping websites. Intermediaries are generally used by companies that are willing to increase the volume of their operations and sales. Promotion, in short, the channels of advertising or promoting the goods to the customer- base in order to make them aware of the products. Promotion mix refers to the advertising and publicity channels that are used to broadcast the products. It can be in the form of online selling, personal selling, and use of social media like radios, televisions or posters. 3. Market of Colgate and Surf in India – Brief Review The industries with which the two products are associated are considered to be the most challenging segments in the Indian market. While Colgate is a toothpaste brand of Colgate-Palmolive India Limited, Surf Excel is a detergent brand of Hindustan Unilever Limited. Colgate was discovered by William Colgate in the year 1806 (Colgate World of Care, 2015). On the other hand, Surf Excel has continued to lead the way of the detergent powder market in India, thus, catering to the cloth-cleaning needs of several households. Surf Excel has been serving India since 1960, as it was the first ever detergent introduced in India in the year 1959. It occupies a 40% market share in India and is the market leader in the detergent industry (Hindustan Unilever Limited, 2015). 3.1. Marketing Strategies of Colgate The 4Ps followed by Colgate in India are the product, price, place and promotion that have been discussed in the following paragraphs. Product mix of Colgate works in collaboration with Colgate toothbrushes that helps in fighting cavities and plaques and also assures cleaner and whiter teeth. The specifications that Colgate products possess are as follows: the toothpaste contains certain rough and coarse substances that helps in cleaning all sorts of dirt, it also removes food marks from teeth; Colgate is said to release fluoride to the gums of teeth which helps in curing the harm caused to them due to acid attacks; some technical improvements are also made to the existing contents of the toothpaste whose chemical reaction stops the growth of plaque. Apart from the above benefits that the product has on the well being of the common people, some other outstanding features are: fresh breath for a long period of time, removal of the hard yellow layer formed on the tooth surfaces, extra-whitening of teeth, contains soda and peroxide that are healthy for tooth, strengthens gums and makes tooth stronger. All these specifications of Colgate are accounted for the healthy teeth of small children (Marketing Mix of Colgate, 2015). Price mix of Colgate refers to the value that is associated with all the features mentioned above. Because of the benefits that Colgate has on children and adults, it occupies a greater share of the total revenue of the Indian market. Among all the categories of Colgate toothpastes, Colgate Pro Clinical is assumed to be the most expensive of all. On the contrary, Colgate Regular super tube occupies the lowest position in terms of price. However, on totalling the prices of the overall Colgate’s products, the average value of Colgate in the Indian market is accounted for $0.81 per ounce (Marketing Mix of Colgate, 2015). Place mix of Colgate refers to the destinations where its products are possibly distributed. Colgate has been successful in positioning its product in almost all of the renowned chain stores, medical shops and supermarkets. Some of them are Walmart, Walgreens, Albertsons and many more. Colgate’s products are also distributed to some of the retail outlets in India like the Kiryana Stores, co-operative stores and more. It is said to cater to the needs of all classes of consumers in semi-urban as well as rural areas. The handy tubes of Colgate are made available at the roadside shops too (Marketing Mix of Colgate, 2015). Promotion mix refers to the channels or modes of promoting and advertising its toothpaste. The first and the foremost source from where information about the product can be gathered is the company website itself, that is, the Colgate-Palmolive website (Marketing Mix of Colgate, 2015). Some other channels are as follows: All social media channels such as Facebook, MySpace and Twitter publicise about the product. Colgate toothpastes online coupons are made available on monthly or weekly basis so that more and more customers are aware of the product. Advertisements on Colgate toothpastes are also published on televisions and newspapers in a decorative or humorous manner in order to make it appealing to the customers. Another major initiative taken by Colgate to promote its product is its collaboration with ADA program which supports the illiterate and underprivileged kids of India. 3.2. Marketing Strategies of Surf Hindustan Unilever (HUL) has also tried its best to achieve the best market for its product “Surf Excel”. However, the way in which HUL has incorporated the 4Ps of marketing mix in its product has been summarised as under: Product – Surf Excel too has a wide range of products, some of them being Surf Excel liquid detergent, Surf Excel easy wash, Surf Excel quick wash, Surf Excel bar and many more. Unilever is said to be efficiently strategising on selling the right product at the right place. It focuses on all the three trade models, that is, the international model, the local model and the general model. This is how the company is gaining demand for their products. Moreover, it has also made changes to the packaging and labelling of their products like change in colour, change in aroma and use of polythene packets. Price – The pricing strategies of Surf Excel has always been structured according to its competitors. Its major competitors are Ariel and Brite Total which are the products of P&G and Colgate-Palmolive respectively. Surf Excel’s starting price was 1Kg for Rs.120 in the Indian market. It has also benefitted the market by making its product available in small pouches costing Rs.5 to Rs.10. The pricing strategies of the products have been completely focussing on the needs of every kind and class of customers pertaining to their financial standing (Farooq, 2014). Place – Surf Excel possesses a vast network of product distribution which enables the availability of the products at each and every corner of India. The company directly covers about 1millon retail outlets including 7000 vendors and above 2000 suppliers and connections. Promotion - Surf Excel has been heavily investing in promoting its products since the time it started gaining power in the Indian market. It is said to have invested about 80% of its share to electronic media such as televisions and online advertisements and the remaining 20% share to print media such as newspapers, leaflets and banners. Surf Excel has also been successful in attracting the majority of the customers through its appealing taglines such as “Dirt is good” and “the machine is not guilty, use the right detergent” (Patel, 2015). 4. Positioning Strategies of Colgate and Surf Marketing mix strategies can be said to be directly related to the positioning strategies of the two products. Positioning of a product can be defined as the technique of structuring the products or goods offered for sale by a company in such a way so that it can occupy a unique place in the market. Only if a product’s marketing is said to be efficient, then can the product hold a profitable position in a market (Khan, 2013). Hence, the positioning strategies of Colgate and Surf Excel can be discussed in the lines that follow. Both the products have been thoroughly successful in creating a better position in the Indian market as compared to the other brands in India. Generally, while doing the Segmentation-Targeting-Positioning (STP) analysis of a product, it is found that positioning of a product in particular depends upon the segmentation and targeting of that product. When it comes to Colgate, its target market can be stated as follows: today’s youth in the urban areas and the well-to-do rich consumers of rural areas in India. After having targeted the customers for Colgate, the next step towards positioning is the segmentation which divides the target customers into sections based on a number of factors such as males or females, different age groups, income and education, standard of living and many more. However, it can be said that Colgate has been positioned in the Indian market in such a way that it is capable of satisfying the needs of all the target customers as well as segments of consumers. Some facts that are found in favour of the positioning strategies of Colgate can be summarised as follows. Colgate has a huge network of distribution that includes the use of the modern methods of advertising that tremendously supports its position in the Indian market. The urban as well as the rural youth of today are largely attracted to this. It is reported that the company encircles about 940 direct stores and 3.8 million retail shops in all over India. This has made Colgate the second largest distributed product in India. Moreover, Colgate-Palmolive is making attempts in collaborating with the initiatives such as E-Choupal and Disha (Ravi, 2013). Surf Excel’s positioning strategies also depends on targeting and segmentation, but the only difference is that the target groups and segments vary from those of Colgate. The target groups of Surf Excel are categorised as follows: women who are of the age of 25 and above, home-makers especially those with small children, higher middle-class groups, rural and urban markets of India and many more. Unilever was of the view that positioning of their product can be done on two bases: one is the customer and the other is the competitor. In the initial stages of positioning, Surf Excel tried to prove itself as the most efficient washing powder among all the other powders. However, with increasing competition, it started positioning its product on the basis of their competitors. Their aim was to prove that their product is the best when compared to the other detergents like Arial, Tide and many more (Ramteke, 2013). 5. Literature Review and Analysis In spite of the fact that the modern marketing mix strategies of product, price, place and promotion are accepted all over India, they are still criticised by many at several points. Amine and Cadenat (2003) were of the view that these days, none of the retailers follow a specific marketing mix for their products; instead they keep making changes to their marketing strategies according to the emerging needs of the customers as well as markets. However, the importance of the 4Ps has been felt in many areas of the market. Several authors have different views on the product, price, place and promotion aspects of the marketing mix in India. According to Constantinides (2006), the varying features of the products when combined and incorporated in the product give a certain degree of perfection to it in terms of quality. The above mentioned authors had the same view with respect to the detergents prevailing and being marketed in the Indian market. Moreover, Brooks and Simkin (2012) also spoke in favour of the product mix. They stated that when customers buy detergents, they firstly look at various features and contents of the products that differentiate it from the other detergents in the market. They further mentioned that such features could be internal or external to the product. When coming to the pricing strategies in the Indian market, Kemmer and Boden (2012) were of the view that a product adopting such pricing strategies which satisfies the needs of the customers at a price suitable to them is the most efficient. They further stated that the detergent companies should plan out their costs and the pricing policies with utmost care as any variations or mistakes would lead to a shift towards the rival brands that provide alike services. The next most important strategies are that of promotion and place. Hanssens, et. al., (2014) were of the view that promotional strategies play a very crucial role in marketing mix. They supported the trends of providing price packs, discount coupons and free samples as a part of advertising and promoting of detergents in the Indian market. Hoffmann (2008) also expressed his views in favour of promotion strategies as they assist in generating maximum sales for the retailers and producers. Moreover, Hoffmann equally supported the placement strategies of products. They stated that proper channels of distribution such as through agents or wholesalers should be adopted to make the goods available at the right time and at right place. In contrast to the views stated above, the 4Ps of marketing mix is criticised on several grounds. Simister (2009) has listed the points on which 4Ps have been criticised in his article, ‘Small Business Marketing’. Firstly, if the goals and objectives of the marketing strategies of a company are not clear or specific, they can never claim that they have the most efficient marketing mix and this is where the 4Ps fall. Secondly, since all the companies and businesses run on a basic objective of satisfying their customers, marketing mix has nothing to do with that. Instead, Purchaser, Problem and Pain should be incorporated according to the author. Thirdly, the 4Ps does not mention anything about the feedback or experience of the customers on using the products. According to Ling (2011), out of the 4Ps, 3Ps are obsolete or waste. He mentions in his work that the price, promotion and place strategies do not exist anymore or is of no importance. He specifically emphasises on the reason for the above which is the emergence of new advanced and innovative information technologies that have got rid of the traditional 4Ps in India. However, from the above discussion, it can be analysed that the 4Ps of the marketing mix is not sufficient for any business or leading company in India. Marketers and business heads are required to come up with some more elements that will not only focus on marketing strategies but also take care of the after-needs of the customers. Therefore, it is necessary to incorporate an after-sale service in the marketing mix. 6. Conclusion Colgate and Surf Excel being two diverse products, the former pertaining to the industry of toothpastes and the latter pertaining to detergent industry, have their respective marketing strategies well in place. Both the products have been using a somewhat similar marketing and positioning strategies. In spite of the similarity, there still exist certain differences in their marketing approaches. This paper has critically analysed those differences. A major difference between the two products that have been pointed out in this essay is that while Colgate has a wider approach, the scope of Surf Excel is limited. Despite of the fact that both the products serve as a necessity, while Colgate is consumed by every kind of customer, be it a small child or a senior citizen in a society, the use of Surf Excel is restricted to only customers within the age limit of 25 and above. Such differences bring about variations in their positioning strategies too. The main objective of this essay has been to point out such differences in the products’ application and marketing and positioning strategies. Moreover, the essay has also emphasised on the arguments that have been made in favour of and against the 4Ps of their respective companies. However, it can be analysed from the above review that the two companies should try to do away with the shortcomings of the 4Ps by not only restricting themselves to the product, price, place and promotional techniques but also come up with some more innovative marketing and positioning strategies. Reference list Amine, A. and Cadenat, S., 2003. 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What Factors Might Cause Some to More Or Less Important Than Others? Germany: GRIN Verlag. Kemmer, M. and Boden, A., 2012. “Price” as one Parameter in the Marketing Mix. Germany: GRIN Verlag. Khan, T., 2013. STP strategy for New Product Launch-a Work in Progress. International Journal of Business and Management Invention. 2(3), pp. 56-65. Ling, B., 2011. They say 3 of the 4Ps of Marketing are dead. Design Sojourn. [Online] Available at: [Accessed 24November 2015]. Marketing Mix of Colgate, 2015. History. [Online] Available at: [Accessed 24November 2015]. Marketing, 2010. The Marketing Mix (The 4Ps of Marketing). [Online] Available at: [Accessed 25November 2015]. Patel, S., 2015. Case study on 4Ps of Surf Excel. [Online] Available at [Accessed 24November 2015]. Ramteke, P. C., 2013. STP and Marketing Strategies. [Online] Available at: [Accessed 25November 2015]. Ravi, Y., 2013. Segmentation, Targeting and Positioning. [Online] Available at: [Accessed 25November 2015]. Simister, P., 2009. The Four Ps of Marketing: Criticism of the Marketing Mix. Small Business Marketing. [Online] Available at: [Accessed 24November 2015]. Read More