KAFEELA PARVINby

CASE STUDY marketing management

CASE

UNIQUE luggages which pioneered and later steered the moulded luggage marketing for above 30 years, had to face stiff competition from many contestants. The company developed the following marketing strategies to defend its position of leadership in the market:

*continues product augmentation *proliferation of low priced models

* Trade push and sales promotion

*expansion and diversificationUNIQUE luggages being the present

leader of the market , do you think that the above strategies are adequate enough to defend its position ? What other strategies could you offer?

INTRODUCTION

UNIQUE luggages have been holding their prime position in the moulded luggage marketing for 30 years and more.

Competitors and competitor’s strategies are now challenging their position.

Now UNIQUE luggages are on the urge to find new marketing strategies as well as to correct the flaws in already chosen's.

MISSION & VISION

To continue in number one position as the leader of the moulded luggage marketing in India.

To become one of the world’s most highly regarded premium life style travel brand.

To continue to define, develop, clarify & promote the brand, there by strengthening their position in every market segment and build a solid unbeatable platform for future growth.

SWOT ANALYSIS

STRENGTH

The organized industry is well structured, with good manufacturing and marketing patterns.

The product is already positioned in the market, established well, and is a leading power.

The firm is ready to make changes in their strategies according to the changing external environment.

WEAKNESS

Product has short life due to changing trends- add to the cost of production.

Limited global reach, despite being a global brand.

Inadequate market strategies to prevent competition.

OPPORTUNITIES

Fast growing fashion minded youth Global penetration of brand Increased demand from successful

customers New innovations in technology

THREATS

Youth segment is price sensitiveThe emergence of new competitorsNew legislations increasing the costsA downturn in the economy, reducing

overall demandAvailability of less time to find and

adopt new strategies due to competition.

MARKETING STRATEGY

Central to any marketing strategy is understanding your customer and their needs. The ability to satisfy your customers better than your competitors help you to build customer loyalty and increased sales.

STRATEGIES which the company has already developed according to the changing scenario :

1.Continues product augmentation

2. Proliferation of low priced models

3. Trade push and sales promotion

4. Expansion and diversification

1. Continues product augmentation The augmented product refers to services

and other activities that support the marketing of the main (or core) product.

augmented product may include a product warranty, service or installation, and may increase the price of the basic product being purchased. It also includes sales persons, service personnel, transportation and, where appropriate, assembly or construction of the product at the customer’s home or workplace.

PRODUCT TYPES:

Potential product

Augmented product

Expected product

Basic product

Core benefit

It can be: Guarantee – This provides a level of

assurance that the product will perform up to expectations and if not the company marketing the product will support the customer’s decision to replace, have it repaired or return for a refund.

Warranty – This offers customers a level of protection that often extends past the guarantee period to cover repair or replacement of certain product components.

Customer Service – This consists of additional services that support the customer’s needs including offering training and assistance via telephone or online.

Complementary Products – The value of some product purchases can be enhanced with add-on products, such as items that make the main product easier to use (e.g., laptop carry bag), enhance styling (e.g., cell phone face plates) or extend functionality (e.g., portable keyboard for PDAs).

Accessibility – How customers obtain the product can affect its perceived value depending on such considerations as how easy it is to obtain (e.g., stocked at nearby store, delivered directly to office), the speed at which it can be obtained, and the likelihood it will be available when needed.

Demerits of product augmentation:-1. Each augmentation adds cost

2. Augmented benefits soon become expected benefits and necessary point-of-parity, this means that competitors will have to search for other features and benefits.

3. As companies raise the price of their augmented product some competitors offer a “stripped-down” version at a much lower price.

2. Proliferation of low priced models Product proliferation occurs when

organizations market many variations of the same products.

This can be done through different color combinations, product sizes and different product uses.

Proliferation of low priced models means, producing wide variety of lower priced models, either by reducing quality or by other means.

Demerits of Proliferation:- marketing so many new products

leads to economic resources being wasted.

 the consumer becomes confused and mistakes are made in the purchase of products.

Product proliferation can sometimes also lead to cannibalization of the existing product lineof the company and should be justified by overall increase in market share.

3.Trade push and sales promotion Sales promotion is one of the seven

aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.)

Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers.)

Frequency programs

Sales Promotion Vehicles

Consumer-Oriented

Samples

Coupons

Premiums

Contests/sweepstakes

Refunds/rebates

Bonus packs

Price-off deals

Event marketing

Trade-Oriented

Contests, dealer incentives

Trade allowances

Point-of-purchase displays

Training programs

Trade shows

Cooperative advertising

Demerits of sales promotion: Increased price sensitivity.

 Quality image may become tarnished.

Merchandising support from dealers is doubtful.

 Short-term orientation.

4. expansion and diversification:- Any modification of a current product that serves

to expand the potential market implies that the company is following a strategy of product diversification.

Diversification may be achieved by entering into additional markets and/or pricing strategies.

Often the product may be improved, altered or changed, or new marketing activities are developed.

Demerits of expansion and diversification: Double Sales Team Expenses. Incompatible Businesses. Overestimate Synergy Savings. Lack Of Knowledge.

ADDITIONAL MARKETING STRATEGIES: Market integration strategy – big firms do

this to avoid competition by acquiring the contesting firm.

Test market strategy - When executing new initiatives, embrace the process of trial and error.

Total market strategy – instead of adopting single/multimarket strategy, adopt total market strategy which will suit all markets.

Instead of other entry strategies adopt ‘first entry market strategy’

Product repositioning strategy -  Reviewing the current positioning of the product and its marketing mix and seeking a new position for it that seems more appropriate.

 Product Scope Strategy -The product-scope strategy deals with the perspectives of the product mix of a company.

Product Design Strategy -The product-design strategy deals with the degree of standardization of a product. The company has a choice among the following strategic options: standard product, customized product, and standard product with modifications.

SUGGESIONS

Setting up a creative team. Investing more in to advertisement

and research Recruiting new talents. Experimenting both in product and

distribution schemes. A better ambassador and

advertisement.

CONCLUSION:

The strategies which the company has already developed are adoptable. But they have certain demerits. So it will be more beneficial if UNIQUE company focus more in to their correction before implementing.

Apart from their plans, further strategies can also be taken in to account along with the suggestions provided. And the firm continue in their leading position.

THANK YOU