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How products are developed to sustain

competitive advantages
Sustainable competitive advantage is the focal point of a corporate strategy. It allows the
maintenance and improvement of an enterprise's competitive position in the market. It is an
advantage that enables business to survive against its competition over a long period of time. A
competitive advantage is an advantage over competitors gained by offering consumers greater
value, either by means of lower prices or by providing greater benefits and service that justifies
higher prices. When a firm sustains profits that exceed the average for its industry, the firm is said to
possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve
a sustainable competitive advantage.
Michael Porter identified two basic types of competitive advantage cost advantage.
A competitive advantage exists when the firm is able to deliver the same benefits as competitors but
at a lower cost (cost advantage), or deliver benefits that exceed those of competing products
(differentiation advantage). Thus, a competitive advantage enables the firm to create superior value
for its customers and superior profits for itself.

Cost and differentiation advantages are known as positional advantages since they describe the
firm's position in the industry as a leader in either cost or differentiation. A resource-based view
emphasizes that a firm utilizes its resources and capabilities to create a competitive advantage that
ultimately results in superior value creation. The following diagram combines the resource-based
and positioning views to illustrate the concept of competitive advantage.
Chief Burger is the market leader in providing different products like Burger and Pizza as there are
no competitors in this sector. There good image makes the organization more strong. Chief Burger is
providing good taste, quality products with qualified staff, good atmosphere and hygienic
environment. They are specialized in Burgers. Motivation level of staff is very high which make the
organization more prosperous. They are ISO (International Standard Organization) certified. They
have enough resources for operating different activities of the organization. They have created good
image in customers mind another big Strength and even a Competitive Advantage is the fact that
they have a full service restaurant because of the restaurant; Chief Burger can market too many
different segments that other restaurants cannot do. For example, Chief Burger can market to
families much easier than Shiraz and others because most of the Peshawar people are not good
financially so they can attract even more families by their low prices with good quality foods. They
are providing high range of products comparatively with low prices.

It should be easily accessible to the customers. They realize the need for pricing to reflect market conditions. In theory. For this purpose the middle man plays an important role. this trend is clearly consistent with value-based pricing. since marketing and sales are that part of the organization best positioned to understand value to the customer. Distribution is beneath the group of place and therefore organizations build-up an accurate distribution method so that it's easily accessible to the customers and it can improve possible sales for an organization. For example if Pepsi does not work on its distribution services and Pepsi bottles are just accessible at their factories then consumers might not be enthusiastic to get them. many have taken pricing authority away from financial managers and given it to sales or product managers. Middle man is basically the source by which companies distribute their products in market. The purpose of value-based pricing is not simply to create satisfied customers. not necessarily by making more sales. The purpose of value-based pricing is to price more profitably by capturing more value. . As a result. When marketers confuse the first objective with the second.Explain how distribution is arranged to provide customer convenience Distribution in marketing acts importantly to attract customer's convenience therefore. Companies in current scenario make sure that their distribution channel should be strong so that their product is available where there is need. but marketers delude themselves if they believe that the resulting sales represent marketing successes. it invariably undermines long-term profitability. the misuse of pricing to achieve short-term sales objectives often undermines perceived value and depresses profits even further. rather than at what the product is really worth. Customer satisfaction can usually be bought by discounting sufficiently. the system of distribution of an organization can show the key ability for the organization. they fall into the trap of pricing at whatever buyers are willing to pay. Therefore distribution system of an organization can be both its weakness and strength. It's more suitable for the consumer to purchase Pepsi from a close by retailer as compared to getting it from factory. Explain how prices are set to reflect an organizations objective and market conditions. Companies make sure the availability of their products at retailer shops and stores where customers can easily purchase it. however. Most companies now recognize the fallacy of cost-based pricing and its adverse effect on profit. In practice. Although that decision enables marketers to meet their sales objectives.

Promotion being a feature of marketing mix consists of communication among the consumer and supplier of that product. While reading marketing we mostly come across a word target market which is an important key factor for a company while promoting its products. When a business has the scope to set its price there is a number of pricing strategies or policies it might choose. Chief Burger has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. Promotion includes different phases from which we described some of them that how to accomplish aspire of target market through different promotional movements. As there are no such competitors of Chief Burger which could compete with the quality of Chief's Burger produced at Chief Burger. Sometimes a business has the scope to set its price and sometimes a business cannot. therefore the pricing strategy adopted by Chief Burger is 'market skimming'. The major motive behind all this is the mass media coverage of OLPER'S milk Ads and due to this message of OLPER'S milk is being transferred to every individual and group living in Pakistan.Pricing Strategy of Chief Burger The level of competition a business faces determines its pricing strategy. This is a golden era for Chief Burger as there are no competitors and hence. Thus it's also identified as marketing communications. Example: In recent years consumers of OLPER'S milk have improved here in Pakistan and therefore it has now got enough market shares in Pakistan. Some of the actions used for promoting a product are as follows: . They are charging lower prices due to the daily sales of the products. The pricing strategy is not just to get the worth of quality but also to gain maximum profits before any competitor enters because then Chief Burger will have to change its pricing strategy like more lower although the prices would be lowered with the new entrants in the market but not to a greater extent as the quality food products are produced by Chief Burger Illustrate how promotional activity is integrated to achieve marketing objectives These activities are performed in order to awake and aware the consumers about the product. Chief Burger is free to charge any price they want. Promotional activities are important factor because it tells the consumer about the product from different regions and it becomes difficult in selling a product if they are not being anticipated in the market through different promotional activities. They satisfy the target market as the food quality is worth the price paid.

Public Relation Department Promotion Mix There are four essential characteristics of promotional mix Advertising Publicity Sales Promotion Personal Selling Advertising: It's a paid appearance of communication of thoughts and goods within "prime media" like newspapers. billboards. wraps etc. . Television. Publicity: Publicity is promotion which is done by non-personal communication channel which is ended by unrevealed supporter or it's a method of broadcasting information to achieve public concentration. pamphlets. Publicity through different ways like Billboards. Promotion of sales likely through agents.Mass media like newspapers. magazines. banners. Personal Selling: Personal selling in one of the victorious way to keep good customers relationships. internet etc. Advertising is done in order to convince and inform its viewers. Specific branding and trademarks. A sales person of the company work behalf of them and they are well skilled in approaches and procedures of personal selling. and cinema etc. Radio. internet etc. posters. but this method is expensive. banners.

A particular targeted market is attained through some definite promotional movements. . Marketing Mix Designed in Chief Chief has designed its marketing mix on demographic basis. For example Buy-One-GetOne-Free.V and radio for their promotional activities because people living here don't have all those facilities like Internet. Discounts prices. It can be understood with the example of fertilizers companies more often use T. PRODUCT: The products which chief offers are quality products and "it offers a wide and varied menu to customers specializing in quality burger & chicken products". Currently it is doing more business than the other foreign food chains in Peshawar. Here is explanation of the 4P's of Chief. Free Samples etc "Direct Marketing" which is often listed as fifth part of marketing mix and "Sponsorship" is added as the sixth aspect. CRM. Free gifts.Sales Promotion: It is the fourth portion of promotional mix. PRICE: As price is combination of cost and profit. Their products have got taste and quality which is the requirement of every customer. They offer products that have appeal to all ages and taste. usage or test of a service. It is a scheme assumed by the company in order to encourage a sufficient enlargement in sales. billboards etc therefore promotional movements are done is order qualifications of the target market. Promotion and Target Market: The promotional actions performed by the organizations are done accordingly to their target market. Chief has a plus point over its competitors due to pricing because the price it charges is really affordable or reasonable as compared to its other competitors like KFC and Pizza Hut etc. This is why Chief has greatly expanded its network of consumers. New Media.

layout and decoration of the Chief Burger chain as well as the appearance and attitudes of . Analyze the additional elements of the extended marketing mix People The employees in Chief Burger have a standard uniform and Chief Burger specially focuses on friendly and prompt service to its customers from their employees. Also in near locality there are many offices and shopping stores from where people come here and enjoy quality meal in short time. As it's situated in the heart of the city in a very lucrative corner of Fawad Plaza on Jamrud road therefore it is focused to nearby areas like university town. PLACMENT: Chief has only a single outlet in Pakistan and it's in Peshawar. furnishing. Chief is located at the heart of the city so it is easily excess able.PROMOTION: Chief has not made special criteria for its promotional activities but it does promotion and its promotional activities are done through internet and bill boards and one more thing word of mouth plays important role in promotion of chief restaurant. The design. The employees are part time workers and full time workers (not a policy). The aprons of the employees distinguish them as Chief Burger workers. lighting. Hayatabad etc. Process The food manufacturing process at Chief Burger is transparent and hidden (the whole process is not visible to the customers). It has placed itself at a very good location as it is covering a maximum area. Physical Evidence Chief Burger focuses on clean and hygienic interiors of its outlets and at the same time the interiors are attractive and the Chief Burger maintains a proper etiquette at its joints.

This new and fresh drink is made to provide the consumers with energetic feel with taste as well. We have designed the marketing mix of our product which is in detail below: MARKETING MIX FOR STROKE PRODUCT: Stroke is a very fresh and tasty energy drink which has never been produced yet. Product Targets: This drink is mainly for the teenagers who drink other carbonated drinks which are causing harmful affects to their health. So they should use this new drink which is free of these carbonates. The design of the bottle gives a very sporty look which attracts youngsters. shape and taste. Recommend marketing mixes for two different segments in consumer markets New Product Development In this part we have developed a new product.its employees will influence customer perceptions of the service quality and experiences. . This product is an Energy drink by the name of "STROKE". Now another component of the service experience can be the Eviction Model which illustrates the various invisible and visible factors which influence the customer's experience. Lemon flavor with salt gives a very fresh and energetic taste to the consumers. Product Size: Stroke is available in two different sizes of 250ml and 300ml bottle. Product Differentiation: Stroke is different from other energy drinks on the basis of bottle design.

magazines. Although it requires a lot of money but still we are doing our best to make this product well known to each and every person. Its 300 ml bottle is for Rs 80 and 250 ml bottle is for Rs 60. This price is very much reasonable as compared to their competitors. newspaper. Price Determination: This is indeed a very important factor.PRICE: Price of Stroke is very reasonable as compared to its major competitors. For this purpose we have tried our level best to use our resources to the best of our abilities. In case of Stroke price is determined on two bases: Keeping in mind the existing competitor's price level. Calculating the cost on the product. For this purpose we have chosen following promotional tools: Advertisement: For advertisement we have used different kinds of media like television. In case of Stroke we have set the price keeping in mind the buying power of the customers. Price Setting: After determination next step is price setting. Other major energy drink brands are charging 140 to 150 Rs per bottle /cane. . We have calculated the cost which includes ingredients and packaging of the product. People who are using our product are telling others to try this and in this way our product is getting promoted. PROMOTION: For a product of such high standards like Stroke it requires good promotional activities. Adding the profit margin we have set the price. Word of Mouth: We have also used this tool of promotion to much extent. internet and radio.

com/essays/marketing/how-products-are-developed-to-sustaincompetitive-advantages-marketing-essay.ukessays. We have made our distribution channel very strong and our product is available on maximum stores in the city. We have made sure that our product is placed in such a way in market that it's in reach of every customer.PLACEMENT: Placement has a major role to play in the products success and failure. Read more: http://www. With waste distribution we make sure that our product is available for our customers all the time whenever they want it.php#ixzz3aOrruiCt .