Msml Marketin Strategies

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To Suggest the marketing strategies by analyzing the performance of products of

Malwa Cotton Spinning Mills Ltd. (MCSML)Barnala

Mr. Anirudh Pandit* & Mrs. Khan Tarannum M. R*& Mr. Mohd. Majid*** Assistant Professor Aryabhatta College, Barnala, Punjab,Pin:148101,India

**Assistant Professor, SLIET, Punjab, India.Email address: [email protected],[email protected],[email protected]

AbstractThe Indian textile industry is one of the largest segments of the Indian economy accounting for

over one-fifth of the total industrial production. To acquire the highest Share in the segment and

become market leader, one should retain and try to enhance its present customers and increasenew customers. To achieve this aim one should keep analyzing its products performance and

adopt appropriate marketing strategies. The objective of this study helps to investigate the

various factors that affect the performance of product in market place. This study used face to

face interaction and gathering information regarding product performance. The data were

collected from market located in Barnala city, of Punjab. The sample included 50retailers/wholesalers. The various performance affecting variables were identified by structured

questionnaire. These variables were quality, price, product range, distribution channel,

puntuality, advertisement. This study will help the company to understand the various factorsthat effect their product performance in the market place and by considering these factors

company can more focus on their marketing strategies.

Key words- Marketing Strategy, Performance, Structured questionnaire, distribution channel.

Introduction

The Indian textile industry is one of the largest segments of the Indian economy accounting forover one-fifth of the total industrial production. The Indian Textiles Industry has an

overwhelming presence in the economic life of the country. Apart from providing one of thebasic necessities of life, the textiles industry also plays a pivotal role through its contribution to

industrial output, employment generation, and the export earnings of the country. The industry

has a complex structure marked by presence of large-scale production units as well as small-scale independent units. The industry is manufacture driven with spinning having large-scale

operations and the retailing as the weakest link. This is in sharp contrast to the industry structure

internationally where buyers have the maximum leverage in the entire supply chain controllingthe changes in fashion and influencing the demand of various product categories across the entire

chain right up to the yarn manufacturers. Now since bulk of the apparel consumption, the main

output of the industry, is done in US and Western Europe therefore it is fair to say that it is the

US and European buyers who actually run the global textile industry thus internationally in the

textile industry all the manufacturers including the Indian ones dont have much bargainingpower.

The Sector Plays a Significant Role in the EconomyThe Indian textile industry is one of the largest and most important sectors in the economy in

terms of output, foreign exchange earnings and employment in India. It contributes 20 percent ofindustrial production, 9 per cent of excise collections, 18 per cent of employment in industrial
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Objective of the study

1 To find performance affecting variables in the market place.2 To suggest Marketing Strategies.

Review of literature

A marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitiveadvantage. Any organization that wants to exchange its products or services in the market place

successfully should have a Strategic Marketing plan to guide the allocation of its resources. A

strategic marketing plan usually evolves from an organizations overall corporate strategy and

serves as a guide for specific marketing programs and policies. Marketing strategy is based on asituation analysis- a detailed assessment of the current marketing conditions facing the

company, its product lines, or its individual brands. From this situation analysis, a firm develops

an understanding of the market and the various opportunities it offers, the competition and themarket segments or target markets the company wishes to pursue. Marketing strategy is the

complete and unbeatable plan, designed specifically for attaining the marketing objectives of

the firm/business unit. The marketing objectives indicate what the firm wants to achieve;the marketing strategy provides the design for achieving them the market arena. Marketing

strategy forms an integral part of marketing planning. A marketing strategy is most

effective when it is an integral component of corporate strategy, defining how the organization

will successfully engage customers, prospects, and competitors in the market arena.It is partiallyderived from broader corporate strategies, corporate missions, and corporate goals. As the

customer constitutes the source of a company's revenue, marketing strategy is closely

linked with sales. A key component of marketing strategy is often to keep marketing in line with

a company's overarching mission statement.

Formulating the marketing strategy:Basically, formulation of marketing strategy consists of three main tasks:\1. Selecting the target market,

2. Positioning the offer,3. Assembling the marketing mix.

This implies that the essence of the marketing strategy of a firm for a given product or brand can

be grasped from the target market chosen, the way it is positioned and how the marketing mix isorganized. The target market shows to whom the unit intends to sell the products;

positioning and marketing mix together show how and using what uniqueness or distinction,

the unit intends to sell. The three together constitute the marketing strategy platform of the given

product.

Marketing Strategy Fall Under Two Categories:We have seen that target market selection, positioning and marketing mix formulation together

constitute marketing strategy. We have also seen that a firm can assemble the marketing mixelements in many different ways, depending on the relative weightage it assigns to thedifferent elements. The scope to carve out different combinations is, in fact immense. As a

result, business firms are able to employ an abundance of strategies and strategy stances


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in their relentless race to stay ahead of competition. However, a close scrutiny will

reveal that all these strategies can be fitted into two broad categories

1 PRICE ORIENTED MARKETING STRATEGY2 DIFFERENTIATION ORIENTED MARKETING STRATEGY

In other words, there are only two broad routes available for forging marketing strategies:any strategy has to be ultimately either a price-oriented strategy or a

differentiation-oriented strategy.

Price Oriented Marketing Strategy:

Firms taking to the price route in marketing strategy compete on the strength of pricing. They

use price as their competitive lever. They juggle the price of their product to suit the prevailingcompetitive reality. They can afford to offer lower prices and still make the targeted profits.

They elbow out competition with the cushion they enjoy in the matter of pricing.

Price route requires cost leadership, evidently, a firm opting for the price route will have to

have a substantial cost advantage in their operations. It should be enjoying an overall costleadership in the given industry and its lower cost should enable it to secure above verage

returns inspite of strong competition. The cost advantage can emanate from different factors like,scale economies, earlyu entry, a large market share built over a period of time, locationaladvantage, or synergy among the different businesses. The firms whole strategy, in fact will

revolve around building such cost advantage.

To successfully practice a price-led strategy, a firm should have consciously taken to the ideasufficiently early in its evolutionary process and prepared itself for adopting such a strategy.

Differentiation Oriented Marketing Strategy:

The differentiation route of strategy revolves around aspects other than price. It works on the

principle that a firm can make its offer distinctive from all competing offers and win through thedistinctiveness. And, a firm adopting such route can price its product on the perceived value of

the attributes of the offer and not necessarily on competition-parity basis. Maximum scope for

exploiting differentiation remains with the product. While all the 4Ps of marketing are importantelements from the point of view of strategy, the other Ps normally go as elaborations of the offer,

while the product forms its core. Product differentiation is of vital importance in product

management and has great potential in forgoing successful marketing strategies.

The product can be differentiated along two major planks:1 Tangible product attributes and functions,

2 Intangible characteristics and emotional associations.

The tangible product attributes and functions areDifferentiation based on ingredients,

Differentiation based on functional value,

Differentiation based on additional features,

Packaging contributing to differentiation,Differentiation based on Quality, Operational Efficiency, Technology, Service.

Research methodologyThis study used direct interaction with retailers/wholesalers. The data were collected from

market located in Barnala city, of Punjab, the period of study covered from October to

November, 2010. The project is carried out to find and analyze the variables that effect the

performance of products of MCMSL and suggest marketing strategies.


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1 SamplingThe sampling design adopted for the study is non probability convenient sampling. The sample

size for the study is 50 respondents and the sample population consist of retailers / wholesalers of

barnala city.

2 Data collection

This research uses both primary and secondary data. The primary data has been collected fromretailers/wholesalers of barnala city. The primary source of data collection was through

structured questionnaire. The secondary data has been obtained from the company sources andthrough internet and books.

3 Statistical tools used

The data is analyzed by using the Various statistical tools like percentage and pie charts werealso used for diagrammatic interpretation and analysis.

4 Respondents profileThe profile includes Quality, Price, Product range, Distribution channel, Time boundless,

Advertisement are presented in Table 1. A total of 50 respondents participated in the study.

Table1: Respondents profile

Factors Satisfied % Dissatisfied %

Quality 48 96 2 4

Price 32 64 18 36

Product range 37 74 13 26

Distribution channel 16 32 34 68

Punctuality 7 14 43 86

Advertisement 10 20 40 80

0

5

10

15

20

25

30

35

40

45

50

Dissatisfaction

Quality

Price

Product Range

Distribution

Channel

Punctuality

Advertisement

0

10

20

30

40

50

60

Satisfaction

Quality

Price

Product Range

Distribution

channel

Punctuality

Advertisement


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Chart 1: Respondent Profile of Satisfied Customers Chart 2: Respondent Profile of Dissatisfied

Customer

Results and discussion

It is clear from the table That among Six Variables only three variables are influencing the

performance of product in the market place.

1. PriceTable 1 reveal that price factor Some how effect the performance of product in the market

place. As Out of 50 respondents 18 respondents are not Satisfied with the pricing policy of the

company.

2 QualityTable 1 reveal that Quality is not the factor that effect the performance of product in the market

place.

3 Product rangeTable 1 reveal that Product range also effect the performance of product in the market place. 26

% of respondents are dissatisfied. They want an increase in the product range.

4 Distribution channel

Table 1 reveal that the percentage of dissatisfaction regarding the distribution channel is higher,it is about 68%.

5 PunctualityTable 1 reveal that Dissatisfaction is highest among the respondents regarding timely delivery

of the products , also its highest among all the variables studied.

6 AdvertisementTable 1 reveal that respondents are also not satisfied with the advertising activities undertaken

by the company.

LIMITATION:-

1Schedule of the Customers was very busy so some of the important aspects could not bediscussed in detail.

2Time available to interact with customers was quite short to get detailed information regarding

various aspects of Marketing Strategies.

3Some of the things were kept confidential according to the policies of the company therefore

details on various aspects like document.

4Some bias might have inadvertently crept into the investigations though best of efforts havebeen made to avoid such biases in the study.

Recommendations1. Improve the terms and conditions of payment.

2. Pricing policy should be revived. Use of more and more dealer coupons and discounts on

quantity purchase.

3. Use of better and improved Channel of Distribution.

4. Increase product range.

5. Timely delivery of products to customers.


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6. The company needs to improve a lot in advertisements; Advertisements are the best way to

enhance the sales. But the company is not able to advertise its products properly, due to which

the customer is unaware of any brand that comes from MCSML. It is common saying that Out

of sight is out of mind. Therefore the company must make attempts to use proper advertisingmedia so as to set their brands in the minds of the consumers. It should be more consumers

oriented rather than being customer oriented.Conclusion

The objective of study was to find and investigate the variables that effect the performance of theproduct in the market place. During the study, there were six variables that affect the

performance of the product in the market place. The variables are Price, Distribution channel,

Time boundless, Quality, Product range, Advertisement. The study shows that variables that

adversely affect the performance of the product are timely delivery of products. Most of theconsumers are conscious about advertising factor. In addition they also demanded for the full

range of the product. The satisfaction level is highest in quality in contrast to other variables.

References1Alkhafaji ,Abbass.F (2008) Strategic management( Formulation, Implementation and

Control) ,Jaico Publishing House, Delhi.

2 Kazmi, Azhar, Strategicmanagement and business policy ,McGraw Hill Companies, 3rd

Edition.

3 Kotler, Philip, MarketingManagement ,McGraw Hill Companies.

4Wheelen, Thomas L and Hunger, J.David Concepts in strategic management and business

policy ,Pearson, 12 th Edition, pp.247-249.

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Msml Marketin Strategies