Question

Part I)

a)Discuss the strategy of market penetration. As a marketing manager howand whywould you use such a strategy. (remember to explain using examples)

b)The Covid-19 crisis (Corona virus) has ledmany businesses small or big to rethink the way they do business while the population is under quarantine. Pick any businesssmall or bigand discuss howyou would adjust its four Ps (price, promotion, place, and product).

Part II)

Please read Henkel’s Persil: A “Glocal” Marketing Successwhich is attached and then answer the following questions:

1.How would you describe Henkel’s approach to market segmentation?

2.As with most marketers, Henkel uses a combinationof different segmentation variables. Discuss how the company might draw upon geographic, demographic, psychographic, and behavioral variables in determining its market structure. provide examples of each type.

3.Which variables appear to be most important to Henkel in targeting its customers. Look at its expansion plan. What variables will play into its expansion?4.Look at the range of Henkel’s detergent brands.Are there any downsides to having a more limited range of offerings? Speculate on the reasoning behind the range.

Answer 1

Every new company has to establish itself in to the existing market which is already occupied by big and richer companies who will never allow the new company to establish itself. Here arises the need of marketing strategy which help the young company to establish its position in the existing market. Markrting strategy is a strategy that allows a company to take a piece of the market from competitors, no matter how large and strong they are.

Importance of Market Penetration Strategy :

• To help the new company to make its product acceptable to the customers.A marketing penetration strategy helps companies evaluate the market through quick improvement of their products, knowing the pros and cons of competitors’ products.A new company has to fix the price of product insuch away that it is adjustable to the competitor's price and tempting to customer as it will help it to acquire large market share.
• To challenge the existing competitors and drive them out of market If a new company offers a more innovative and better product than the existing one and that too a consumer tempting price then it will challenge the existing competitors and will be able to attract their customer base and loyalty toeards itself. In this way profit and revenue of mature company will decrease.
• To increase the use of product by existing customers. This is possible due to so-called special offers and loyalty schemes. These two marketing methods allow already acquired and regular customers of the company to remain satisfied through special benefits and discounts for the company’s products.

Ways to craft a Market Penetration Strategy:

• Improve the Existing Product to Increase its Market Share and Drive Out Competitors By improving the existing products in term of features and customers requirements the new company will be able to attract a large customer base and throw the competitors out of the rat race. Real juice is renowned brand. Few years back it introduced a new product line named as Real activ which are sugar free juices. This was introduced as people nowadays are fitness conscious and like sugar free juices. This help the company to retain its loyal customers, acquire new customers and challenge competitors and acquire huge profits and revenue.
• Pricing This approach involves making the price for a product lower than that of competitors’ products to arouse customers’ interest.This allows a company to immediately get a part of the market, and gradually gain a reputation as a supplier of quality and inexpensive products.Once the product is established in the market then the prices can be increased.
• Scale Your Presence in the Market This refers to understanding the needs of target markets and then expanding the product base as per the requirements of the customers. Example of this is Apple company.First, it starts selling more of its products to its target markets. Apple expands the range of its products, for example, iPhones and iPads, to satisfy the needs of the target audience to the fullest.

2. Covid 19 has impacted many businesses small or big. Many business organizations have change their strategy to cope up with the tough times. Once such example could be related to Swiggy which has changed its business strategy. Normally it supplies good food to people but due to nature of disease people refrain from eating outside food and accepting it from sellers to avoid personal contact. It adopted the following strategies:

• Product Swiggy switched from supplying food to essential items like vegetables, fruits and milk etc. As people will be requiring these necessities in times of lockdown. To make it safe it is strictly accepting onlt online payments.
• Price Infact at some places prices are being charged more than normal for this service as in this tough times customers have less options and they require these essential commodities at any cost.
• Place Entire world is affected badly by Covid 19. Most of the big countries are adopting lockdowns and curfews to stop the spread of deadly disesae. Swiggy is using this strategy in most of the contries in the world.
• Promotion This service is being promoted through social media like facebook, internet and even whatsapp. Even ehen people open up swiggy app it is clearly mentioned that swiggy is offering this service .