One of the Levi's Marketing Strategy:

Consumer research told Levis that customers found shopping for dress pents gave remarks as: slacks dept were dirty, finding the right size was difficult, and getting alternation was frustrating. Customers wanted Cash and Carry, off-the-rack dress pents. So Levi's devised a carefully crafted strategy to overcome the typical male distaste for dress pents shopping. Slates were sold in scientifically tested selling areas consisting of mohogany-toned circular store displays that allows easy access to the various styles and sizes. Levi's also responded with off-the-rackpants that require little altering. whereas most dress pents come only in even waist sizes, forcing alternations for off-size men, slates also come in odd sizes. All slates are hemmed and cuffed and have double pleats in the front. For customers with larger waist sizes, the pleats are more kindly placed.

posted by Abd ur Rehman

Break-Even Analysis and Target Profit Pricing:
Another cost-oriented pricing approach is break-even or a variation called target profit pricing. The firm tries to determine the price at which it will break even or make the target profit it is seeking. this is the point when the compney has no profit and no loss. In other words , we can say that it is the equillibrium point. Managers must have focus this point for a profitable business
Break-Even Volume: Fixed cost /selling price- variable cost. If a company has fixed cost of Rs 30,000 and Variable cost Rs 10 and selling price per unit is Rs 20, then its Break-Even Volume is= Rs 30,000/Rs 20-Rs 10= Rs 30,000.

posted by Abd ur Rehman

The company’s sales must be above Break-even sales to earn a profit.

Direct Model : DELL

The Direct Model plays a central role in DELL’s success in maintaining valuable relationships with their customers. As DELL deals directly with their customers they have huge opportunities to gather timely customer response. This response in turn provides the company with previous feedback. In early 1990s McKenna called the underlying marketing strategy “knowledge-based and experience-based marketing”. The feedback helps DELL to constantly revise their products in order to meet best customer’s requirement.
The advantage is especially applicable to the company’s large corporate customers. But the Direct Model certainly gives DELL an information lead over its competitors.

posted by Abd ur Rehman

Dear fellows, here is a competitors table.

competition is between Unilever, P&G ,Kraft and Nestle

posted by Abd ur Rehman

FINANCE STRATEGIES of UNILEVER
 Maintain company finance operations with in the
resources
 Maintain working capital keeping stock debtors
low.
 Adhere strictly to the ICAP accounting practices
and laws
 Tax management to gain legitimate advantages
lessening the burden
 Ensure internal control through internal audit
 Introduction of IT and implementation
 Ensure sales revenue generation meet targets
 Maintenance of purchasing function

posted by Abd ur Rehman

Ps of Marketing:Price, Product, Place, and Promotion

we focus on "promotion" to the detriment of other Ps in the marketing mix. When choosing programs for your marketing plan, consider each of the marketing 4 Ps ― price, product, place (distribution), and promotion. You are likely to find the results much better than if you include promotions alone.
The opportunities for incorporating all 4 Ps into your plan are numerous. You may find after studying the competition that increasing or decreasing your price is likely to result in better profits for your business, for example. Perhaps there is a distribution channel, such as electronic delivery or mail order, you haven't fully integrated into your business. With respect to products, developing a new product or giving an existing product a facelift are examples of business-building programs.

Penetration Pricing Strategy:
From a strategic perspective,A market share focused penetration strategy is most appropriate when it is important to exploit a potentially transient first mover advantage, or to quickly establish a broad installed base in anticipation of:
(a) Cost improvements from scale, scope or experience (learning curve)
(b) Substantial complementary product sales (e.g. razors and blades, toner cartridges for printers and copiers)
(c) Subsequent upgrade cycles (software)
(d) Network effects that provide increasing benefits as more customers buy the product (e.g. fax machines)

posted by Abd ur Rehman

Penetration Pricing Strategy:
From a strategic perspective, a market share focused penetration strategy is most appropriate when it is important to exploit a potentially transient first mover advantage, or to quickly establish a broad installed base in anticipation of:
(a) Cost improvements from scale, scope or experience (learning curve)
(b) Substantial complementary product sales (e.g. razors and blades, toner cartridges for printers and copiers)
(c) Subsequent upgrade cycles (software)
(d) Network effects that provide increasing benefits as more customers buy the product (e.g. fax machines)

posted b Abd ur Rehman

Why Gourmet Soft Drinks Are Hit:
There is one problem that you can’t find Gourmet soft drinks from any shop like international brands (Pepsi, Coca Cola company) are found. You can find these international brands from Pan Wala and any general store where as Gourmet soft drinks are only available in their own outlets. But now they have more than 90 outlets in Lahore which cover almost every part of Lahore so people use to travel a little far to have Gourmet soft drinks.

This is not because of their superior taste. They also know that there taste is not as good as international brands are giving but their prices are low. Mostly Gourmet drinks are used in 1.5 litre which is of Rs. 45 and other big brands are of Rs. 60.
Other reason is their outlets, which are very neat & clean and give a high quality look. Generally people like Gourmet outlets environment and believe that products are of good quality.
So now it’s your turn, let me know your experience with Gourmet soft drinks: How much you love it? or How much you hate it?

posted by Abd ur Rehman

SOME FACTS RELATED TO KFC

Presently KFC has provided employment to over 1200 Pakistanis, which adds up to
6000 individuals directly dependent on KFC Pakistan.
 The Government of Pakistan receives over Rs.10 to 11 million per month from KFC
Pakistan as direct taxes.
 95% of all food and packaging material used in KFC Pakistan is procured locally,
which sums up to a purchase of over Rs.35 million per month.
 Each new outlet developed by KFC Pakistan costs approximately Rs.40 million,
which is a huge amount for our construction industry.
 Annual turn over in Pakistan 2.5 billion.
 KFC doesn’t buy its supplies from Pakistan

posted by Abd ur Rehman

KFC Product packaging:
its very amazing that KFC makes its own disposable packaging. If they need promotion Pepsi contributes in improving the packaging quality. KFC does family packaging. They use paper material for packaging to avoid health hazards and environmental pollution. KFC does brand labeling. Some of its products also have informational labels such as Halal, Veggi Burgers and Chicky Meals.

posted by Abd ur Rehman

Some Advantages and Some Disadvantages of INTERACTIVE MEDIA Advertising
Interactive Media: Advantages
1..Cost effectiveness.
2..Easy to modify.
3..Interactive content.
4..International reach.
5..Expanding market.
6..Constant availability.
7..Ease of traffic measurement.

Interactive Media: Disadvantages
1..Privacy concerns.
2..Partial market coverage.
3..Navigation problems.
4..Loss of control.

posted by Abd ur Rehman

Some Advantages and Some Disadvantages of MAGAZINE Advertising.
Magazine Advertising: Advantages
1..Tangibility.
2..High audience selectivity.
3..Good reproduction quality.
4..Long life span and good pass-along rate.
5..Prestige and credibility.
6..Ability to communicate detailed information.

Magazine Advertising: Disadvantages
1..Limitations on creative format.
2..Clutter.
3..Low reach.
4..Low frequency.
5..Long lead times.
6..Relatively expensive.
7..Difficulties in geographic targeting.
8..Inability to schedule to exploit day-of-week factors.

posted by Abd ur Rehman

Some Advantages and Some Disadvantages of NEWS PAPER Advertisement
Newspaper Advertising: Advantages
1..High reach.
2..High geographic concentration.
3..Good frequency.
4..Tangibility.
5..Short lead times (flexibility).
6..Relatively low cost.
7..Ability to communicate detailed information.
8..Ability to place in most appropriate location.
9..Ability to schedule to exploit day-of-week factors.

Newspaper Advertising: Disadvantages
1..High waste factor and inability to target.
2..Limitations on creative format.
3..Relatively poor reproduction quality.
4..Clutter.
5..Short life span.
6..High cost of national coverage.

posted by Abd ur Rehman

Some Advantages and Some Disadvantages of Television Advertising
Television Advertising: Advantages
1..Potentially high reach.
2..High persuasive impact.
3..Availability of uniform national coverage.
4..Exploits day-of-week and time-of-day factors.
5..Some geographic and demographic selectivity.

Television Advertising: Disadvantages
1...High total cost.
2...Short life span.
3...Inability to transmit detailed information.
4...Clutter.Relatively high waste factor

posted by Abd ur Rehman

Some Advantages and Some Disadvantages of DIRECT MAIL Advertisement

Direct Mail Advertising: Advantages
1..Audience selectivity.
2..Highly flexible.
3..Relatively uncluttered.
4..High level of personalization.
5..Ability to measure response.
6..Tangibility.
7..Low minimum cost.
8..Short lead times.

Direct Mail Advertising: Disadvantages
1..“Junk mail” syndrome and high discard rate.
2..Relatively high total cost.
3..Limitations on creative format

posted by Abd ur Rehman

Some Advantages and Some Disadvantages of OUTDOOR Advertisement.
Outdoor Advertising: Advantages
1..High reach and good frequency.
2..Geographic selectivity.
3..Relatively uncluttered.
4..Long life span.Large size.

Outdoor Advertising: Disadvantages
1..High waste factor and inability to target.
2..Relatively long lead times.
3..Can’t transmit complex messages or detailed information.
4..Not prestigious.
5..Limitations on creative format

posted by Abdur Rehman

Categories of Advertising Objectives
1. Informative advertising.
2. Persuasive advertising.
3. Reminder advertising.

posted by Abd ur Rehman

Reminder advertising:
To remind customers about where they can book the organization’s services.
To remind customers about facilities or services that are unique to the sponsoring organization.
To remind customers about when they should book or reserve the organization’s services.
To remind customers of the existence of the organization.

posted by Abd ur Rehman

Persuasive advertising:
To increase customer preference for the organization’s services.
To increase customer loyalty to the organization.
To encourage customers to switch from using a competitive organization.
To convince customers to book at the organization now or in the future.
To change customers’ perceptions.

posted by Abd ur Rehman