Changing the marketing mix
Soaring sales of Jaguar and Land Rover cars have helped Indian firm Tata Motors to a huge rise in profits, the firm has announced. In the three months to December 31 2011, Tata Motors profits rose 41% as compared with 2010 to 34.1bn rupees ($692m; £441m), with sales up 44% to 453bn rupees. Its Jaguar Land Rover (JLR) arm saw sales rise 37%, helped by selling 32,000 of its new Range Rover Evoque. Tata’s chief financial officer CR Ramakrishnan said that strong sales at Jaguar Land Rover reflected changes to the product and marketing mix. He also cited the increasing demand for the firm’s products in Russia and China, which accounted for sales of 22.4% in the quarter. (BBC, 14th February 2012)
Reviewing the marketing mix can help a business to identify new strategies for meeting the challenges posed by competitors or the marketplace. Tata Motors global product offering has been strengthened by the new Range Rover model, as well as the additional customer demand in emerging markets.
The parcel delivery market is also highly competitive and Parcelforce Worldwide, also a market-orientated business, needed to respond to external changes. Customer research had highlighted areas in its business which required improvement.
Operating in B2B, B2C and C2C markets meant its product offering had become potentially confusing for customers. Under the review, the company took the opportunity to simplify and realign its product portfolio to match known customer needs. At the same time, customers needed clear choices between speed and value-for-money. Parcelforce Worldwide therefore mapped its service prices to the required speed of delivery (i.e. Global Express, Global Priority or Global Value).
With the new product and pricing structures set, Parcelforce Worldwide then ensured its promotional activities communicated the changes clearly and highlighted for customers the range of options they had to access services, both in person and online. The review has enabled Parcelforce to improve its market position and meet its business objectives.
Click here for lesson resources