Bic Corporation Marketing Strategies

Bic Corporation Marketing Strategies Introduction A smile is a curve that sets everything straight. Now a days, smile is being lost in this competitive world thus Bic Corporation is back with an innovation in toothbrush cum tooth paste know as Joy-Top. Dental hygiene is the most important part of dental care. This preserves the charming smile in most efficient manner. Primarily, good dental hygiene is essential to the health of the mouth which can be maintained by brushing teeth twice a day. It is also essential in a cosmetic manner. Pleasant, healthy smile makes a personality look more confident and thus makes them feel healthier while interacting with people. Bic Corporations, leading manufacturers of disposal pens, lighters and shavers. Manufacturing facilities are extensive in north and South America including Toronto, Canada, Milford, Connecticut, Clearwater, Saint.petersberg, Florida, Guatemala city and Mexico. Their products are low cost plastic items. The most affordable in their category are pens, lighter and shavers. Half of the companys production, sales and earnings lie on pens. The most prominent product is Clear plastic ball point Bics lighter is top seller in North America. It also makes correction fluid and pens and has acquired a premium pen manufacturing position. Joy-Top Bic Corporations focuses on low cost, good quality, disposable items, and innovations. So as to develop the product line of the company a new product called Joy-Top toothbrush cum paste has been taken into consideration. Pens, lighter, shavers are the daily used commodity for a common people so Joy-Top also appears in the same lane to these products. Whats new in Joy-Top? Joy-Top is a toothbrush which consists of head of tightly clustered bristles mounted on a handle which includes paste. The toothpaste contains fluoride which helps in increasing the effectiveness of brushing. When the bristles are pressed against teeth, in a required proportion of paste appears on the bristles internally. On an average the paste can be used for about 15-20 times. Features:- Brush head gives a great clean. The multilevel layer bristles in which the top layer act as a dental floss. As it cleans by improving gum health. Never brush too hard again when the bristles are pressed a bit hard against the teeth the paste appears internally in the bristles. If pressed more than once there will be excess of paste which can be harmful for the teeth. It is best suitable for travelers. Thus Joy-Top promises long term care. Comfort grip. Soft bristles Developing Marketing Strategies and Plan Mission statement: To provide dental health of superior quality and value which will improve the lives of the worlds consumers, as a result they will reward us with never ending smile and happiness. SWOT analysis: Strength Strong brand. Focuses on innovation. Price, Quality, Value. Marketing- Distribution, Awareness, Reach. Capabilities. Development of new technologies. Global advantages. Weaknesses Less competitive power. Low budget product. Customer service staff requires training. Drawbacks of proposition. Opportunities Development of new products. Competitors can be surprised. Business can be exceeded to overseas. Positive response from end users to new ideas. Good profit margin. Huge potential to rise in emerging markets. Variations according to season weather and fashion. Lifestyle trends. Threats Distraction from core business. High competition in the market. Unfavorable conditions due to environmental effects. High competition in the market. Global economic condition. Litigation (2011, Business balls) Summary SWOT analysis is a tool which is commonly used to provide useful information. So from the above we can say that the company is holding a strong position in todays world, keeping aside all weaknesses and threats this company can produce a product with long lasting future and considering some of the factors which are given below: Low cost Reliability Innovation Disposability Objective Objectives are the basis of policy and performance appraisal. They bind entire organization together. Objectives can also be explained as mission, purpose, which can be achieved within the expected time frame and with the available resources. (Business dictionary) Marketing objectives Target customer. Effectiveness and practical use. Research over hardness/Softness of bristles. Type of grip and general structure of toothbrush. Customer satisfaction. Product quality to be maintained in accordance with low cost. Word of mouth. Packaging to be done so as to attract maximum customers. Advertisement (Visual, Audio, Print media). Financial objectives To achieve growth in revenue of 10% per year. To increase earnings by 15% annually. To increase dividend per share by 5% per year. To increase in net profit margin 2-4% per year. Stable earnings during the period of recession. Gathering information and scanning the environment Secondary data: It is been collected by individuals or agencies for purposes other than primary research. Internet sources:- Internet search tools like Google and yahoo can help to find specific sites which are rich in information. Discussion groups, post to a chat room or news groups can help to find secondary data. Wikipedia: It helps in quick and easy search of relevant information through a bunch of Google searches. It is great for finding out basic explanation of something very important. Scribd:-It is worlds largest social reading and publishing company. Information and original written content are shared across the web and mobile devices. Non internet sources:- Library:-Periodicals (Magazines, Journals and Newspaper) art materials which are published at regular intervals. Questionnaire: They are very cost effective as compare to face to face interviews. These are easy to analyze. Wikipedia helps in collection of quantitative data which can be helpful in market research. As Scribed connects people with the information online market research will be helpful for market planning. Library contains current information which helps to translate trends into marketing opportunities. Questionnaire reduces biasness. And thus Wikipedia and Scribed helps in providing necessary information and questionnaire and library serves a way towards the research and therefore these sources becomes the important aspects in drawing marketing plan. Technological Funds for research. Potential of innovative ideas. Communication and information. Communication across the globe. Buying mechanism of end users. Demographic Lifestyle Advertisement and sales promotion Consumer buying patterns. Brand, Company image. Difference in consumer opinions. Media views. Age. Level of education. Social class. Family. Economy Industry factors. Issues regarding money/International trade. Exchange and interest rates. Trends from home economy. Market cycle (2011, Business balls) Conducting marketing research and forecasting demand Future demand Toothbrush being a daily commodity needs special attention. Bic Corporation has decided to perform and experiment in the form of a new product Joy-Top. Brushing are teeth twice a day is a major part of our daily lives, everyone wants to have a beautiful smile but brushing teeth twice a day does not mean any difference so Joy-Top with enormous features estimates the capacity of 150 million toothbrushes to be sold per annum.. Thus estimating a production of 12.5 millions monthly. Marketing effectiveness It is the quality of the marketers to go to the market with the goal to achieve good results for both short term as well as long term. An increase sale is a goal of marketing but it is a measurement of the effectiveness of the entire company. Awareness:-Effectiveness can be through website visits, traditional media mentions, and social media mentions etc. Loyalty marketing:-Customer satisfaction, retention etc. These can be effective measurements to marketing efforts Creating customer value, satisfaction and loyalty Customer satisfaction is a measurement of product and services supplied by the company to meet end user satisfaction. Measurement provides an indication of the organization been good at providing products/services to the market. (2011, En.wikipedia) Measurement 1Reliability Performance Product range 2 Quality of communication Quality of offering Flexibility Reaction time Repairing quality Information, support Availability Quality of delivery service Quality of order handling 4 3 Analyzing Consumer Market The process of selection buying using disposing of ideas, services, and goods in order to satisfy needs and wants by individuals, groups and organization is consumer behavior. (2011, scribd) Factors affecting Joy-Top Cultural factors Culture: There are different taste and manners which are being seen throughout the world. Toothbrush, the daily routine commodity is used by one and all. Now the people residing in various parts may prefer to use different paste which may or may not be suitable for our product. Subculture: This culture mainly helps in segmenting the market into various small proportions. It consists of different religions, geographic regions, racial groups etc. The needs of this particular group depend upon their lifestyle. Thus local advertisement will affect the buying behavior for Joy-Top. Social class: These are the people determined by occupation, income, education, family background and location. The buying behavior of them will be according to their piece of earning. They may prefer spending their single penny for other useful things. Social factors Reference groups: These are the people pursuing special talent to convince people for the particular product so as to increase the customers. Thus by providing practical benefit of Joy-Top can help to increase the influence. Family:-The member of the family is most influential thus the role of the members are very important for example- If the buying decision of a particular product is influenced by elderly people then the advertisement will be targeted on them. Roles and status:-There are different roles and status of a person in the society for example- A man working in the organization as a manager will play the role of manager as well as a father therefore buying decisions will be influenced according to his role and status. Personal factors Age:-Joy-Top is basically for youngster and above. Consumer changes the purchase of goods and services with the passage of time. Thus as the age increases there will be different consumers within the range. Occupation:-Joy-Top is best suitable for travelers and people having high lifestyle. Economic situation:-This trendy toothbrush focuses on all people having different economic situations Lifestyle: Joy-Top is a product which will help person to express their style in the surrounding. Personality:-Different features like self confidence, dominance etc can help to buy our product. Psychological factors Motivation:-Joy-Top can be a motivating factor so as to satisfy the needs of the consumer. Perception:-To set a better perception customer attention is necessary towards the product. Beliefs and attitude:-By launching special campaigns, customers attitude can be made positive. (2011, Business.ezinemark) Research tools The different research tools are as: Online marketing service:-Online study becomes premier data collection method for customer satisfaction research. Online research surveys are generally appropriate for customer satisfaction because data collected is quality as well as quantitative. Focus group research:-It is useful as a way to personally connect with buyers and observing their expressions and body language as they speak about the product and brand name. Competitive intelligence:-This is any information about competitors which is helpful for obtaining their strategies, strength, weakness and resources. Go to market plan:-This plan includes live market test, advertisement campaign which helps in understanding buyers attitude and behavior. Consumer buying roles Consumer buying roles relevant for Joy-Top are: Influencer: Helps in viewing influence between buyers and deciders. Buyer: Holds formal authority to select their products. User:-User of the product. Gatekeeper:-Controls information s and helps influencer and buyer. (2011, provenmodels) Stages of buying process Need:-Low cost and sales promotions like coupons, product samples can create the high need for the product. Collection of information:-Information can be collected through the sources as People (Friends, relatives, family etc) Product (details) Advertisements(Print ads, television etc ) Experiment(Using the product) Purchase decision:-Price, product, public relations can be the factors which can be consider while having buying decision. Post decision:-Physical evidence and price can be the market activity so as to confirm satisfaction to the consumers (2011, openlearningworld) Identifying market segments and targets Market segmentation:-This helps in identifying small portion the market which is different from one another. It helps customer satisfying their need. Consumer market segmentation:-Psychographic or behavioralistic are the most suitable variables to segment our consumer market. Psychographic segmentation:-In this segmentation customers are group according to different lifestyles. Variation in interest, activities, attitude, values, opinions etc helps to choose product differently Behavioralistic segmentation:-Customer behavior towards product varies due to usage rate brand loyalty readiness to buy occasions this is direct starting point for market segmentation. Business market segmentation:-The market customers are fewer in number and purchase larger quantities. There decision process involves more than one person like manufacturers, government, institutions etc. Behavioral characteristics:-This is suitable as it includes different buying status, purchase procedure and usage rate. Company type:-Company type includes industry, company size, and decision making unit. (2011, netmba) Evaluation of attractiveness of market segmentation Attractiveness will be evaluated as follows: Segment competition. Brand loyalty. Number of customers. Customers growth rate. Expected profit Target market selection Bic Company pursues selective specialization as this is multiple segment strategy for example- Lighters, shavers mainly target youth and above while stationary are targeted to all segments similarly Joy-Top targets youth and above. (2011, netmba) Dealing with competition Strategic group Big business is the strategic group for Bic Corporation. It includes business men, managers, employees, workers and many other similar groups in Bic Corporation. (2011, slideshare) Best companies in the manufacturing of toothbrush Butler gum Breath remedy Colgate Crest Dentek Dr. Fresh Glide Gripit Johnson Johnson Mentadent Oral B Plak smacker Reach Sonicare Sulcabrush Oral B is a worldwide market leader which targets children and adults. Their brushes are used by most of the dentist worldwide. (2011, Oralb) Objectives The main objective is to provide superior quality and services which improves the life of worlds consumers. Thus consumer will reward them with leadership sales profit and value creation. (2011, pg) Strength It focuses on five core strength: Understanding consumers-Fulfills the need of consumers. Innovation-Translates desire into new product. Brand building-Shapes purpose inspired brands. Go to market capabilities-Reaches consumers, retailers at the right time, at the right place. Scale-Drives consumer value and efficiency. Competitive intelligence Competitive intelligence is defining, gathering, analyzing about products, customers and competitors. Additional competitive intelligence which is required to have the complete knowledge of market leaders are: Competitors Ads-Clipping competitors ads will be helpful in collecting market material used by competitors. Competitors brochures-This helps to check out the marketing strategies, format, special offers, pricing, the key benefits and clues to the marketing segment which may be underserved. Mystery shop-Mystery shop is actually to buy their products r services so as to experience the purchases process. Internet-Major search engines can help in gathering information about them. This also helps in visiting their websites which can give important clues. (2011, Gordon) Newspapers-Newspapers can also provide major information about the market leader. Competitive strategy Bic Corporation being the market challenger needs to gain the market share and become the leader. This can be done by attacking the market leader, other firms of the same size, smaller firms. Frontal attack strategy will be the most effective for Bic Corporation by providing quality, price with low cost. Setting product strategy Core benefits Core benefits are the benefits which are being enjoyed internally as well as externally some of them are as follows: Joy-Top can provide long term care. It is flexible as well as durable. Joy-Top provides oral hygiene in low cost. It helps in avoiding gum diseases. Outer case of the toothbrush will avoid contact with germs as it is a germ free case. Joy-Top is a toothbrush cum toothpaste. So travelers need not to take paste along with them. Augmented product Bic Click one of the New Zealands favorite retractable ball pen. Sturdy pocket clip. 1.0 mm medium ball diameter. Ridges on barrel for better writing Available in colors Blue, Black, Green, Red. (2011, au.bicworld) Developing pricing strategies and programs Pricing objectives To maximize long run profit as toothbrush is never ending demand. To obtain a target rate of return on sales so as to achieve profit. To get competitive advantage. To enhance the image of Bic Corporation. To increase sales volume. As toothbrush being easily available commodity customers are not likely to be price sensitive. As Joy-Top is a low cost product demands will be elastic. Pricing decisions Internal factors: Product pricing depends heavily on the productivity of operating facilities. Increasing productivity can reduce the cost of production of each product and thus allows the marketer to lower the product price. External factors:-There are number of influencing factors which are not controlled by the company but will have the impact on pricing decision. Pricing decisions changes due to following: Elasticity of demand Customer expectation Government regulation Competition and other products (2011, know this) Promotional pricing like 20% less of the actual price would be adapted by Bic Corporations. Designing and managing value networks and channels Marketing flows Physical flow-In physical flow manufacturer, transporters, and warehouses will directly deal to customers. Title flow-Title flows from supplier to the manufacturer then dealers and finally to the customers. Payment flow-Payment is received by customers then to banks-dealers-banks-manufacturer-banks and finally to suppliers. Information flow-Information flow from suppliers to transporters, warehouses, banks to manufacturers and from manufacturers to transporters, warehouses, banks-dealers-transporters, banks-customers and vice-versa. Promotion flow- It flows from suppliers-advertising agency-manufacturers-advertising agency-dealers-customers. Selective distribution is the most appropriate distribution as it works in normal pattern where sellers stock the product in consumer as well as in business market. Managing retailing, Wholesaling, Logistics Types of retailers The most appropriate retailers are: Departmental stores:-They bear a resemblance to a collection of specialty stores and offer considerable customer service. Advantages:- 1. Cheaper price than of special shops because of bulk buying. 2. Large range of goods Disadvantages:- Lower quality of service as compared to special shops. Supermarkets:-Supermarkets sell mostly daily products as well as food products. Advantages:- Sometimes cheaper than other shops. Quality is often assured here Disadvantages:- Generally prices are higher. Variety stores:-These offer extremely low cost goods with limited selection. Advantages:- Convenient Able to compare product price and features. No pressure to buy. Disadvantages:- No enjoyment of retail shopping. Privacy and security issues. Product category risk. Too many choices. Wholesalers They are the people selling service to the third party who in turn sells the products to their customers. Wholesalers are referred as decision support system for production and distribution. They propose an optimization model to satisfy the best service at low cost. There decision support system is developed to build different aspects and suitable models for selling. (2011, article alley) Market logistic issues The product has to be delivering at the right time for the right place in right condition. Outsourcing and considerable values are the functions to be performed by logistics. A thorough knowledge of materials, foreign exchange, custom regulations, purchasing, transportation, and information technology and supply chain management is required. (2011, bestlogisticsguide) Designing and managing integrated market communications Audience targeted Bic Corporations would target unintended audience as Joy-Top is a daily routine commodity and is used by one and all. (2011, everything2) Image Bic Corporations need to attract more customers and client. Thus Bic Corporations is focusing on trustworthy business image. Although, Bic is successful in maintaining trustworthy image through the products like pens, shavers, lighters, thus they tend to serve more customers. (2011, sbinfocanada) Objective of communication campaign The basic objective of the campaign is to educate the public. The goal of the campaign is to build peoples confidence in dental hygiene and to ensure a smooth product. The campaign would consist of free dental check-ups and thus the need of Joy-Top will be shown. Campaigning would consist of distribution of brochures, free samples and promotional products. Promotional tools In Store promotion:-This influences the consumer decision making process at the particular moment. A lot of purchases are made by impulse buying. Trade fairs:-This tool helps in export promotion and also an expensive tool. Advertising:-Advertising is directly targeted to the big audience and end users. It is also targeting the players in distribution channels, importers and wholesalers. Internet:-Internet offers display possibilities and advertisement space. Catalogues, brochures, company profile can be digitalize and put on the web. It is an economic and flexible option. The corporate brochure:-Material and print used are of superior quality and thus A3 sizes of papers are used to provide required information. (2011, infomipyme) Marketing communications budget The budgeting process helps in determination of the realistic plan for profit margin; 10-20% gross revenue is projected to marketing and communications. 4% on the purchase of advertisement and promotion media including internet, TV, newspaper. + 2% producing and printing all communications including newsletters, brochures etc. + 1.5% producing special events. + 2% promotional products + 3.5% salaries, consultants and independence. = 13% Total percentage of Bic budget going to communications and market (2011, getting attention) Managing mass communication: Advertising, sales promotion, event and public relations Joy-Top being a new product needs attention in the market. Advertisements will help the consumers to know about the product and the services without advertisement there are chances of bad word of mouth and fake visual clues. (2011, financialcrisis2009) Advertising goals Goals are very specific. Generally advertising goals are made to increase sales. It increases knowledge and awareness. Thus advertising goals are: Target market to achieve Corporate image Emphasis on Joy-Top Monetary expenditure Right time of advertisement Smile to the fullest and make this world a better place to live in -a message with Joy-Top reveals. Television and internet are most appropriate media as these media are the best ways to express this message. Promotion Consumer promotion is to stimulate sales by influencing the end consumers. Bic Corporations mainly focuses in serving end users. Thus consumer promotion is the best option. Promotion of public relation Bic Corporations being a brand name already sustains a good corporate image in the market. Promotions are being done using advertisements rather than public relations. Managing personal communications: Direct marketing and personal selling Direct selling Direct selling is basically marketing and selling products, directed to customers from fixed retail location. Bic Corporations prefer direct selling force as it has its own advantages which are as follows: There are more opportunities to meet new people. Internet helps in increasing sales tremendously An unlimited amount of money is been expected to be earned (2011, improvingyourworld) Selling activities should focus on professional sales people who are well trained and ethically responsible. Sales objective To develop a strong personnel relationship with the customer in order to be successful. A special skill which is not generally seen in common people. Role of E-marketing Internet plays a very important role in every aspect of product life cycle. It delivers the highest value during the growth and maturity. The medium of searching makes internet an ideal platform for informing sharing and educating. Primary goal of internet during launch is to create awareness, encourage trial and build a brand. Online brand building and awareness can be cost effective to serve consumers because the target audience can be naturally drawn to specific online information (2011, lewis) Sales Representative The biggest challenge for a sales representative is time and territory management. Some strategy requires selling Joy-Top is: They should have complete knowledge of Bic Corporations and their product. The person should be a good communicator and influencer. The representative must know the product. The representative must maintain customer contacts in order to get feedbacks, to know new trends and to have new customers request. (2011, llc) Executive summary Bic Corporations is a manufacturing company dedicated to low cost, innovative and disposable product. The company has production line as pen, lighter, shaver. The company was formed in 1945 and has 2700 employees. The company intends to become a manufacturer leader by expanding and adding to its product line. Thus a new daily base commodity (Toothbrush) has come into consideration. Referencing Anonymous., 2011. 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