MARKETING MIX MODEL

The marketing mix model is like a cake recipe with basic ingredients like eggs, flour, sugar
and milk. However, a child’s birthday cake will require a recipe which is different from a
wedding cake. The key is to modify the ingredients to get the right cake for the right
occasion. The marketing mix works exactly the same way. The key ingredients are:

 Product
 Place
 Price
 Promotion
They are all necessary for the appropriate marketing of the product. But we have to choose
the right combination of each element to satisfy different customers’ needs.
By getting the mix right, we can ensure that our products reach the market segments it is
aiming at. This approach will help the business remain competitive and extend its market
share and influence.
Before jumping in to the marketing mix components we need to understand the expected
life cycle of our product.
The expected life cycle of our product D-shirt is illustrated in Figure 1.

Figure 1: Expected life cycle of D-Shirt

It is difficult to identify accurately which point a product has reached on its life cycle, or
what shape the life cycle will follow, but we can always prepare a basic strategy and the
marketing mix based on the obvious life cycle and make strategic changes according to
situations.
PRODUCT:
Our business model and product strategy is product oriented- create a product and then
market it to target customers.
The product, in terms of marketing, refers to all the elements that go into making the actual
product marketable. The main elements of the product are as follows:

 Design: Our products are designed by famous designer from France.

 Fragrance: Our USP is the fragrance technology we have come up with in our product.
 Quality: Made up of a combination of pure cotton and fragrant molecule technology, it
is highly comfortable and durable.
In addition, a perfume fluid is sold as complimentary product which can be used to revive
the fragrance of the d-shirt once every 2 years. It can be also used to change the fragrance
type.

PRICE:
The pricing strategy we will be following for our product is a combination of the following:

 Cost based pricing: Here the selling price is set to cover the cost of manufacture.
 Market oriented pricing: Under market oriented pricing we will be considering the
following approaches based on the stage of the product in its life cycle.

I. Premium pricing: There is a uniqueness and exclusiveness about the product

which can command a high price.
II. Price skimming – We will charge the highest initial price that customers will pay.
As the demand of the first customers is satisfied, we will lower the price to attract
another, more price-sensitive segment and try maintaining our expected sales.

The above with respect to the product cycle is explained in Table1.

PLACE:

This refers to both where from the products may be bought and to the channels of
distribution used to deliver the products to these places. Place is not always a physical
building such as a retail outlet or shop, but includes any means by which the product is
made available to the customer.

Our placing strategy will also consider the following:

 Primary target is major metro cities in the country.

 Set up brand stores in major shopping malls.
 Collaborate with ecommerce names like Myntra to make easy online distribution.
 Apparel industry is hugely based on perception. Hence store designs play an important
role in creating an elegant atmosphere and emphasizing a brand image while reflecting
current trends.

We have to make sure that we are getting the required quantity of our products to our
target customers against the problems or costs of distributing them, but at the same time
we also understand that making the products too easily available might reduce the
perceived value of the brand. Hence we will put limits where our products are sold and keep
a tight rein on how they are sold and its distribution channels. This will create a unique D-
Shirt experience wherever customers buy our product.

PROMOTIONS:

The major purpose of promotion is to obtain and retain customers. It covers:

 ‘Above-the-line’: It uses independent media to reach a wide audience easily.

Example: Magazine advertising.
 ‘Below-the-line’: which uses media over which the business has control, for
example, direct mailing. This type of promotion can be more cost-effective and give
more measurable response rates.
We will be using a mix of both.
Promotion is not just advertising – but advertising is only one aspect. Our promotion
strategies will include the following:

 Direct mail – for example, catalogues, newsletters you may receive by post or email.
 Exhibitions or events – Showcasing during Fashion events, Music events or even
sponsoring other events helps in creating awareness about the brand.
 Sales promotions, such as discounts, money-off coupons or competitions
 Public relations – perhaps through press conferences or by participating in charitable
events publicity can be attained through public relations
 Product placement – We can gift our products to famous people like
movie/sports/instagram celebrities so that they create publicity when they wear them.
This is seen as an endorsement for the product.
 Branding – We can use brand in the layout and decoration of its stores, its links to
music, its advertising campaigns, packaging and point-of-sales displays.
 TV Ads/magazines- We can publicize through television ads but in a limited manner. We
should not destroy the essence of our luxury product by showing too much of the ad..
We can also publicize it through fashion magazines.
 Social Media: YouTube Ads and social media campaigns are also planned.
Marketing Mix throughout the product lifecycle.

STAGES IN PRODUCT PRICE STRATEGY PLACE PROMOTION

PRODUCT LIFE STRATEGY STRATEGY STRATEGY
CYCLE
INTRODUCTORY Loaded with the Product will be Collaborate with Launch product
special feature introduced with ecommerce during fashion
of fragrance, the Premium pricing, names like events.
product will be since there is a Myntra to make Gift products to
launched in the uniqueness and easy online
celebrities to
market with exclusiveness about distribution
highlight them.
designs the product so that
matching with it can command a
the latest high price
trends.
GROWTH This is going to We will continue In addition set Along with the
be a very quick with the premium up brand stores above, add branding
phase for our pricing and slowly in major through TV ads,
product. move towards shopping malls. social media etc.
skimming.
MATURITY We will modify This phase will start Continue with Add public relations
the product as it with skimming the same as well. Involve in
reaches the strategy– where a measures CSR activities.
maturity stage. new product has
The boost of a premium pricing to
new product or give high revenues
style then whilst the product is
extends the life unique in the
of the range. market
SATURATION Products need This phase will Continue with Sales promotion will
refreshing to continue with the same be introduced along
avoid the dip in skimming strategy measures with the above
sales during the to give high mentioned.
Saturation stage revenues whilst the
of the life cycle product is unique in
which could the market
result in an early
decline.
DECLINE The additions Discounts will be Continue with All of the above will
and changes continued to attract the same be continued except
help sales rise new customer measures endorsement by
again, earning segment. celebrities.
extra sales
revenue and
profit before it
starts falling.