International Marketing Mix: Tutbury Crystal Analysis - Essay Example

International Marketing Mix - Tutbury Crystal Analysis and Recommendations There are many issues in the vast arena of marketing. This paper deals with the case study of a company that wants to diversify through international marketing in terms of customer management. The crux of our paper is the development of an international strategy for the marketing of the crystal produced by Tutbury - a British manufacturing company, with an eye of better customer management through a system of appropriate entrepreneurial control for implementation of the marketing strategy. This has been done through the recommendations for a marketing strategy aimed at a certain target market. The second part of recommendations is based on an entrepreneurial control system that will help implement the necessary changes for the customer management and international marketing strategy. A family owned business that churns out the highest quality of cut glass and allied products that come under the lifestyle category, Tutbury is a name to reckon with. It has a rich heritage in customer management. Given its history and the prestige attached with owning pieces produced by this company, it would be a tough job to market this effectively in a region where little would be known about this exclusive brand without appropriate customer management. In this regard, it is imperative to loosely define international marketing before moving on. International marketing is that sphere of activities that is aimed at introducing a product in a country or group of countries with the aim of creating sales and some amount of awareness regarding the brand. (Bennett et al, 2002) Therefore, for a lifestyle product like crystal, what better than a country where lifestyle solutions are becoming a rage and the norm of the day - India. This Asian country is fast moving away from its traditional colonial bearings to discover style and charm in urban living. The new generation in India does not mind doling out that extra amount of cash to spend on good lifestyle products that will make a statement about their homes, lives and times. Welcome to the new Indian - Sassy, stylish and very, very choosy. (Fernandes, 2000) About Tutbury's: Born and marketed during the 1920s to the 1960s, Tutbury's was named Thomas, Webb and Corbett to start with until it was known by its present name in 1984, owing to the spot of it factory which was in a 15th century village named Tutbury. 2006 saw a strategic move on Tutbury's part where its factory chose to be based at Stroke - on - Trent, instead of Tutbury's. The branding of Tutubry's has been largely based on norms that revolve around exclusivity and a certain amount of mystery with the nitty gritties of the company. The basic finding that this paper will work on is that Tutbury's has capitalised on the lifestyles of a certain section of people so as to form a brand identity of its won. In case of the consumer base enjoyed by the company, there is a sharp segmentation in terms of the target group. The basic target group of the company includes people in the upper income group starting from the age of 30 and above. Further, the people who have retired and are in the age group of 50 and above, serve as a major source of profitability. Another important source of income for the product is the Internet. Therefore, the important element in the application of the entry point strategy for Tutbury's is to recognise the age and income groups that predominantly define the demographics in India, before going on to carry out segmentation and reach suitability in terms of the marketing mix. In this case, the entry point strategy may be used as a preliminary process that will help develop the marketing mix. This entry point strategy has been defined throughout the paper in the various elements of the marketing mix so as to find a suitable base for segmentation and subsequent brand positioning. Entry Point Strategy The first element when entering a new market is the risk factor. For Tutbury's there has been a strategic management of risk through a change of location as well as the launch of personalised and online services. There, is a need to now focus on changing passive international sales into hardcore business. It is important to capitalise on the opportunities by undertaking risks so as to achieve organisational growth. Therefore, once the entry level mode is applied to this situation, there will be a concerted effort towards arriving at decisions that have to do with control, risk and commitment as demonstrated in the diagram below: To deal with the risk factor at an entry level, this diagram shows that the commitment level needs to be high so as to start by catering to consumer satisfaction. With effective segmentation, it will be easy to find out the areas of investment so as to find an appropriate positioning on the scale where exports start. (Walter et al, 1988) Therefore, a good entry level strategy would involve introducing the fact that Tutbury's has an international face as its products go and can be modified to cater to any kind of culture or country. In this regard, there will be long term growth through the management of the immediate and other short term risks. In this case, the main risk comes from losing its exclusivity which can be tackled through the direct investment strategy. Even though, its priority list speaks of countries like America and Australia as strategic places for expansion, internationalisation in today's world would mean a westward as well as an eastward growth owing to the fact that the East is booming and almost at par with the West as far as politics and economies are concerned. As an entry point mode, a company dealing with high end products needs to make a more individualistic statement. This calls for a mix of passive as well as consumer centric activities at the location as well as around it. For this, it is important to touch the pulse of the target consumers by being accessible to them distance wise. Therefore, it will be found that for an entry level product in an international market, exploring the retail market is the best option. The direct investment strategy is the best one for the entry mode strategy. Marketing Mix - The Indian Connection Product Considering the fact that Tutbury's is not easily accessible to many segments, it is important to tap the segments that have maximum potential. In this regard, it may be seen that India has a huge growing market of corporate services and add ons in the form of furnishing, training and other arenas. Not only is Montrose the perfect solution for providing these kind of products, it will also be one of its kind in this country when launched in tandem with Tutbury's Crystal. (Bennett et al, 2002) For this, the product must depend on extensive promotion with regards to the fact that its finishing is done in Poland, Italy and Slovakia. This will lend credibility for investors and other potential retailers who need to have basic information about what is unique about this product. In case of creating a demand, Tutbury's will also be able to tap into the maximum consumer base and build a wide range of consumer variation through the transmission of such information which will in turn add to its brand worth and identity. Also, this product is available in standard, personalised or bespoke forms. There is now a niche market in India for all these three forms. (Fernandes, 2000) Owing to its personalised packaging services for various target bases, the online option is a good one considering the online shopping and e commerce boom. In this case, the product dimension of the marketing mix may be defined as one that will cater to personalised forms of the products for buyers willing to pay the price involved. Place As discussed earlier, Tutbury's has recently moved from the remote village of Tutbury's to a new home in Stroke - on - Trent. This has been called a strategic move owing to the fact that, being on the regular tourist beat, Stroke - on - Trent enjoyed more customers which translates to enhanced market visibility. Visibility has also been fuelled by the fact that the physical positioning of the factory is near Wedgwood's many factory outlets and one of Portmeirion's. In fact, there also exists a fully operational retail outlet to promote Tutbury's as one of the prime attractions in the area, thus adding to Stroke - on - Trent's prime attraction as a site for pottery factory outlets. In this regard, Tutbury's must explore the strategic places in India where it may set up its factory along with an outlet, as well as strategic spots for the retail outlets so as to retain some amount of exclusivity. To start with, the Vineyards in the West of India are settled in a place near Bombay, called Shola. (Fernandes, 2000) This place is exclusive and a regular party and socializing hub with the jet set. Since wine and crystal are complementary for each other, a factory and a factory outlet in this area would be the best. Also, another spot is in South India where there is a major project by Dee Mandala to produce and sell wine. Mandala valley is situated near Bangalore and the owner, Mr. Mahadev Gowda owns over 5000 acres of land, out of which he is selling plots for commercial and residential purposes. (www.deemandala.com) These 5000 acres are being developed to emerge as the finest and most exclusive township in the country. It is also perfect for the Tutbury's factory and factory outlet. (Fernandes, 2000) Promotion Tutbury's has followed a very systemised an exclusive form of promotion. In this context, it is imperative that it do the same in case of India. Market segmentation in the entry level anaylsis, as discussed above is the best method to follow in order to gain useful insights into consumer behaviour. This will also help determine the exact segments within the country which needs to targeted. In turn, this process will provide a platform for effective brand positioning. This level of brand positioning will be in tandem with the policies and goals of the company in general. While personalised packaging is a huge draw and a signature service provided by Tutbury's in personalised selling as well as online sales, it has been observed that its international sales are not all that high as can be seen from the Middle Eastern example which is marked by passive sales that take place at exhibition. This translates to the fact that there is no initiative towards creating an awareness regarding the product through hard core promotion on foreign shores. This might explain why internationally famous companies like Waterford. At the same time, it may be asserted that Waterford does not have the kind of presence that Tutbury's boasts of as the latter is not easily available unlike the former. Therefore, Tutbury's Unique Selling Point of USP is its exclusivity. This must be used in its favour to create an awe inspiring brand of visibility - an almost there kind of awareness shrouded in a mystery of its own. This sense of mystery is its entry point strategy as far as promotion is concerned. Therefore, there must be advertisement only in specific business class and travel magazines of national airlines. In this regard, with glossy print ads that focus specifically on the quality of the crystal, there needs to be an attractive spread that must make an impact in a simple way. This is owing to the fact that in order for a product like crystal ware, which is so intricate and delicate in its designs, there must be focus on simplicity. This can be followed by exclusive exhibitions in 5 star and 7 star hotels like Taj, Oberio, and many more. (Fernandes, 2000) Further, Tutbury's must choose an Indian face as its ambassador so as to reach out to the people on a personal note. Instead of a regular actor or actress, this brand ambassador must be a stately icon from business, media or even politics, so that people will take the brand more seriously. To build a more strategic brand identity, Tutbury's must follow the process of getting to know a jet set clientele over pre launch parties as well as post launch parties of wine, cheese and steak. In this regard, Tutbury's must create brand knowledge through presentations on the company and its history as well as reputation. Also, there must be media coverage by a maximum of two channels. For this, Zoom TV (a social page channel) and NDTV (a News channel of great reputation in India) must be chosen instead of the regular CNN IBN as NDTV is more Indian in its image. Further, there must also be international coverage of the launch details on BBC for its Non resident Indians, as these people have now taken to shopping on the great Indian shores where there is a lot more variety with retailers of all shapes and sizes flocking towards it. (Fernandes, 2000) Price Exclusivity is a major feature of the company which depends not only on promotion but also on related factors. This depends on the stock value also. In this regard, it has been mentioned earlier in the assignment that only 10% of the sales made by the manufacturer are to retailers. Therefore, in keeping with promotional strategy that Tutbury's itself must have its own outlets, where most of them should be factory outlets near vineyards, there is a strong focus on the exclusivity approach in the price. (Fernandes, 2000) Further, as a niche market, Tutbury's must retain a high price where personalisation of items is concerned such as bowls or vases as this has contributed to 75% of its sales where 95% sales have been on standard prices. This is a very close ratio and must be sued in the pricing to make sure that personalisation also catches up in India. As far as the pricing is concerned, it is also imperative for Tutubury's to resort to an assessment of the risk and return factor in the Indian market through variance and dominance analysis, which will reveal the future that the product has in the long term. This will help decide on the price in lieu of potential risks and an estimation of returns. (Walter et al, 1988) Entrepreneurial Control System: A control system in organizations largely influences its ability to recognize the social and cultural modes of control within it so as to lay down in clear terms the role of the entrepreneur when it comes to deliberating social control over the employees concerned so as to promote better customer management. This will help in the appropriate implementation of the international marketing strategy for Tutburys. The new marketing strategy has identified the role of the entrepreneur as regards the social control he exercises over the employees, as a crucial factor in the control system that influences the overall operations of the Tutbury's. The success and credibility of this exercise of control on the entrepreneur's part depends largely on the recognition of the importance of a set of beliefs and boundary systems that will decide what elements the control system will consist of as a package. Here, the Tutbury's will make use of the issue of democratization in an attempt to go beyond rhetoric and to develop a framework that integrates the role of transnational activism into the analysis of domestic regime change. This is where the systems based view of control fits in. While Comparative research on democratization confirms that underlying socioeconomic conditions affect the long-term sustainability of democratic reforms. According to Collier, this systems theory leads to several gaps in the performance as regards decision making at the lowest rungs of operation. The initiation of marketing reforms, as well as the process they take, can best be understood using an agency-based framework that links internal and external influences. Thus, with equal emphasis on external influences which constitute areas like social standing of an employee, the management exercises relevant social control through motivation of an employee to achieve the social standing he or she has in mind. 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Media, Culture and Society, Vol 22. Tutbury's Crystal. URL: www.tutburycrystal.com (Accessed during: February 2008) Read More