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Marketing Mix: Case Studies
Learn about these real life business case studies by reading this analysis and looking at the sample essays.
Ford offer a wide range of vehicles including small run-arounds, people carriers, pick up trucks, sporty cars and commercial vehicles of many types and sizes. Within each of their models they often offer a range of options such as hatchbacks, 5 doors and a range of colours. In this way, Ford hope to be able to have a vehicle to meet the need of almost any consumer, and so meet the need of a very wide range of target markets. Ford will regularly apply the product life cycle and Boston Matrix to analyse what changes it needs to make to its product range.
Ford prices are comparable with the other leading car manufacturers. Some car manufacturers use ‘psychological’ pricing techniques, for example £11,995 is said to look more attractive than £12,000. A very low price would not cover Ford’s costs and would suggest lower quality.
Ford use above the line methods with their TV, newspaper and cinema advertising. They also use below the line methods as they sponsor sporting events (e.g. the Champions League), and are involved in charitable work. This helps to convey their image as a caring and high quality company.
Ford sell their cars through a network of independently owned dealers as retailers are known in the car business. This enables Ford to have a wide geographical spread, without having to be directly involved in the selling of cars.
Tesco sell a wide range of groceries. They sell all the leading brand’s products like Kellogg’s, Heinz and Nestle, as well as their own brand products, which are made for them by manufacturers who will add the distinctive Tesco packaging. They hope to be able to cater for all customers by adopting a ‘good, better and best’ approach. This means that they offer a basic value Tesco brand, a standard Tesco brand and a range of Tesco Finest products, as well as ‘Healthy living’ and organic. They are also diversifying their product range away from groceries and into many other areas, including clothing, electrical, computing, banking and insurance. This is to take advantage of their established brand name and meet the need of as many customers as possible.
Tesco aims to compete with the other supermarkets by offering ‘money off’ vouchers if the same products could have been bought at a leading rival cheaper. As such, it is not trying to be cheaper than its rivals but the same. It also needs to be aware of how the main discounting supermarkets are doing, and this may affect its future pricing policy. Prices at the smaller convenience stores can be higher than in the supermarkets to reflect the difference in costs.
Tesco uses above the line promotion with its TV advertising. It also uses below the line promotion. Its Clubcard allows it to keep close track on individual customers and offer very specific promotions. It also tries to involve itself in the community with its links with charities such as Diabetes UK, the race for life. This is to enhance its image as a caring company.
Tesco is widely spread geographically across the UK and has established itself in other European and Asian countries through buying supermarket chains and expansion. In the UK, it has stores of many different sizes from its Tesco Extra hypermarkets to its Tesco Express and One Stop mini stores. It also uses internet shopping where, for a small extra charge, customers can buy online and get their shopping delivered. Tesco acts as its own wholesaler by having its own distribution centres which buy in bulk from the manufacturers and distribute to the individual stores.
Lewes Chimney Sweep
Lewes Chimney Sweep offers a service. That is sweeping chimneys for open fires and wood burners, as well as removing bird’s nests from chimneys. An important part of the product here is the quality, the certificate which can be used for insurance purposes, guaranteed cleanliness and a pleasant personality. This is a growing market, as more people have fires. The wood burner side of it is particularly expanding as people look for more efficient heating.
The price charged is the same as other sole trading chimney sweeps charge. This is because the owner does not want to start a price war, and feels that the price adequately reflects the cost of providing the service. At £39, there is an element of psychological pricing in keeping it below £40. He offers a discount for more than one chimney at the same address as his costs are then lower.
Lewes Chimney Sweep advertises in the local free magazine during the autumn. He also relies on word of mouth, ensuring that customers are left with his card. He comes out first if someone googles Lewes and chimney sweep which he feels brings in business.
This is comparatively simple as it must be in people’s homes. Going into people’s homes does affect the product however, as there must be an air of professional friendliness.