Question

Compare Ocimum’s strategy with the strategies of other players in the industry? How is it similar to and different from the strategies of the other players?

Answer 1

STRATEGY SIMILAR TO COMPETITORS

Marketing Mix

Product: This element in the marketing strategy reflects the solution to the customers needs. This reflects in the creation of a unique product design name and features to stand out in the competitive market however, major factors to be considered to develop this product strategy are quality, variety, features, packaging, branding, and augmented services.

Pricing: Pricing requires an evaluation of the value of products for targeted customers; the pricing strategy would require choosing prices lower than the competitors while focusing on setting list price, credit terms, payment period and discounts.

Place/Distribution: Ocimum made important decisions on developing its distribution plan by deciding whether the company wants to make the product available to targeted customer segments through its channels or it needs a distribution partner to serve the customers needs however, modern customers give importance to the convenience and easy availability the selection of right distribution channels hence, requires Ocimum to integrate custom research outsourcing to consider the product characteristics i.e, perishable items would not be suitable in a long distribution chain.

Promotion: This was the most important marketing element for Ocimum where it has blended above and below the line promotional strategies to achieve its marketing objectives. The above the line promotion options are: television, radio and print advertising.

On the other hand, the below the line options are catalogues, tradeshows and direct mail campaigns.

STRATEGY DIFFERENT FROM COMPETITORS

To survive in an increasingly competitive market ocimum made efforts to set clear differentiation bases that could provide an edge against its competitors. To ensure the same ocimum outsourcing marketing strategy focused on identifying unique selling propositions(USPs) some examples of which are; high quality, low cost and uniqueness of Idea.

Having said that identifying these USPS is not sufficient to ensure the effectiveness of the marketing strategy indirectly depends on management's ability to communicate the identified unique selling propositions.

The same can be better understood with the help of porter's model:

Cost Based Competitive Advantage

The cost based competitive advantage works on developing capabilities to reduce the cost below the industry average and achieve the economies of scale. moreover it requires Ocimum to develop close collaboration between different functional areas.

Differentiation Based Competitive Advantage

The differentiation strategy focuses on developing brand loyalty by offering premium products. The company has done this by finding different ways to develop differentiation leadership such as by focusing on the reliability, durability, benefits and distinctive features of products and developing strong brand recognition by increasing expenditure on marketing efforts like celebrity endorsements and sponsorships. Ocimum has also achieved competitive advantage by adopting product, service, quality, image, people and innovation differentiation.