The product which I select for analysis is one Coca Cola second is Shampoos and soaps. As different kind of FMCG are available in the market with different brands and name. The company is basically manufacturing and involved in producing the shampoos, soaps and other consumer goods related to the spa industry. The company is highly efficient and possibly distributes and sells more than the 100, 000 units in a month. The two tier marketing channel is involved from the manufacturing to the distribution to the hand of the consumer, the manufacturer, the wholesaler, the retailer and then the final consumer. The promotional mix of Coca Cola is very integrated with a customized promotional material for each region or country as per the understanding of the local customer. The music employed in the television ads of Coca Cola are signature of their philosophy of happiness, refreshment and passion. The colors and characters in the television ads are also related to the attraction in each region of the world
Price of the Product:
The price for our products will be depending upon the competitors pricing & also the capacity of customers to pay. Coca Cola’s prices range no more than nominal values for its customers. Similar is the case with shampoos and soaps. As we are making some of the quality product which can be used a common user. By providing quality product the number of user will increase, along with it the number of sales will also be increased thus it will help our company to generate revenue and can be more profitable to the company (Kotler, Armstrong, Brown, Adam, & Chandler, 1998). The company will make possible that there may not be shortage in the products and can easily be available to the user, thus the product of the sale depends upon the number of the user as the user increases the productivity increases.
Pricing Objective:
The pricing objective plays a very important role. There are three main strategies of pricing i. e. profit oriented in which some sort of the profit is kept by the company and the price of the product is kept that much, sales-oriented strategies is the other type in which all the focus is done on the sale max sale are made to be possible, while in the 3rd status-quo strategies in which the focus is the brand and qualities.
The strategies which we are going to perform are status-quo strategies. As we may not be compromising on the quality of our products, this means that we should keep the best quality of the product. So that the user is satisfied and makes the minimum profit but should keep the standard. Yes I am strongly agreed with it because in order to make best and regular user will be increased.
Product Demand:
The product is easily available in the market and is according to the user requirements. Thus the product makes it possible to have both qualities demand and supply. As the quality is maintained thus the user are increased day by day. According to the five factor of elasticity which can affect the product are availability of substitutions, price relative to purchasing power, product durability, other product uses, and rate of inflation. Thus the main factor which the company is used is durability and substitution availability (Kotler, 1994). As both of these can generate a lot of revenue as well as the brand name will also be improved.
Product life cycle:
Different stages are involved in the production of the products.
Introduction
In this stage the imagination and planning for the products is done. In order to know whether it work or not will it generate some revenue for the company and will it be accepted in the market. The product is finally introduced in the market.
Growth
After getting approval of the products among customers, it go to the next stage which is growth phase. In this stage best design are made in order to attract max number of customers, which helps the company to grow and FMCG would be selling at its maximum.
Maturity
Maturity means the product reaches its final maximum sales stage. Maturity basically earns revenue for the company at its maximum. But this phase is very dangerous as few collapse after this phase and few further moves ahead by maintaining their positions in the market and among the customers.
Decline
Decline stage chances of this garment industry are although very low as people hold their position once established in the market.
Exit
Last but not the least exit strategy is seen very rarely but still few do so. When organization does not follow any market trend it loses its value and worth and this makes the company close its operations.
Product life cycle:
Competition is very important part of any business and specially the one we have chosen in garment industry. Competitive strategies impact the price strategy of our product because other brands do have impact on our sales. Other companies, the mode of distribution, or the internet factors also play very significant role in dealing with the product which we sell. Mode of distribution for a garment company is just like key to success, so this is the critical factor which changes the trends of sales if not controlled. Online selling is also one factor which needs to be considered very carefully now days. As companies have been making their online presence very attractive thus making the customer more closer to the products, thus this factor should also be considered well.
Price & amp; Quality:
The price of our product communicates about its quality, Yes it does. Is it value-based as it is among the major market products and fulfills basic needs of the customers and also the retails people. People have high demands for the product which causes it to sell well. The company is basically manufacturing and involved in producing the FMCG and other consumer goods related to the spa industry. The company is highly efficient and possibly distributes and sells more than the 100, 000 units in a month. The two tier marketing channel is involved from the manufacturing to the distribution to the hand of the consumer, the manufacturer, the wholesaler, the retailer and then the final consumer. Product is well recognized and thus gains quality factor which is necessary to maintain the company’s existence. AIDA stands for Attention, Interest, Desire, and Action. Looking up at the various campaigns of Coca Cola Company and its various products one sees that it draws the Attention of the customers very well by the hope of color of its advertisements, using animations that blend well and music signature of Coca Cola’s philosophy of Passion, Happiness and refreshment.
Discounts and Rebates
Discounts or rebates have been offered on FMCG product to promote them. Cash discounts are the most attractive ones, as people are interested in knowing what they are saving. But along with that a combination of other promotional discounts could be offered as well. Sales Promotion of FMCG is employed at various regions of the world from time to time to pace up with the slow periods of revenue (Lloyd, S. (1999). Personal Selling is not employed by FMCG to sell its products probably because of the reason that a product like FMCG does not require an individual salesperson to convince the customer to buy a product that does not involve much of involvement and decision making. Beta testing with Facebook has enabled to track closed-loop sales from site exposure to in-store purchase with very promising initial results that are above norms for what with other media is seen.
Pricing Tactics
Price tactics that our product works with includes Fixed & Competitive and Leader Pricing. This basically means that the products which we are selling, one is coca cola and its price is fixed price and having competitive pricings. While in case of shampoos and soaps the prices are based on leadership strategy where the product would be priced less as compared to competitors while maintaining the quality to increase the number of customers (Gentle, 2000). The retail locations and the stores could be conveniently chosen where the large community is involved in the daily or the weekly shopping and as the product is a substitute product to many of its kinds the special promotional strategies could be used in the retail section as well such as the promotion through the point of purchase near the cash counter. Moreover as the products are closely related to the beauty and spa for the increased consumer awareness the saloons and spas could be reached in order to promote the product and be the other kind of the retailer in order to create the awareness.
