MODULE: PRINCIPLES OF LOGISTICS
- Product specification.
Britannia biscuits
It’s one of the household snacks consumed mostly by Indians and across the globe by at least seventy other countries in the world and still targeting more partners. This product is produced and supplied on a push system where the quantity produced is based on speculated demand by consumers. This brand extends to other products such as bread: white bread, brown bread, dairy bread, dairy products: cheese, milk-based beverages, and fresh dairy, cakes: gobbles, nut, and raisin, rusk: a toaster. Britannia primarily targets the middle-class people of India, which forms the majority of the population.
PayPal
PayPal is a commerce platform established to serve business needs and financial needs for its customers. As far as compliance with its legal policies following, PayPal services are available for any business merchant or individuals. It targets to reach each state on the globe. Still, so far, it has been accepted by over 200 countries worldwide with 295 million consumers around the world .its products and services include PayPal mobile apps, online shopping, and money transfer services.
iPhone
iPhone is a mobile phone product produced by Apple Company based in China and distributed to the rest of the world and mainly to the United States. This product is manufactured based on anticipated demand, relying on upcoming models, and already released product surveys. In January 2020, there have been 900 million active iPhone devices in the world (Tim cook, 2020).
I phone’s products extends to smartwatches, iPad tablets, iPod media player, smart speakers, television and AirPods wireless earbuds.
Colgate
Colgate primarily deals in oral hygiene care products produced for mass consumers across the globe. This good comes in the form of toothpaste, toothpowder, mouthwash, and also offers toothbrushes in a variety of shapes and styles to cater to different segments of consumers. Colgate adopts a channel of distribution to push goods from the point of manufacturing to the final consumers.
It targets every segment of society, and majorly, its typical consumers are middle-class families. Today Colgate aims bustling young families living mid-scale sub-urban mix community. The target population is the black and Hispanic individuals aged 18-35 years and children age seven and even younger.
Colgate offers personal care products, bathroom care, household care, toothbrushes, and a variety of toothpaste such as Colgate max, Colgate herbal, etc.
- MARKETING MIX
Britannia biscuits
Britannia’s product strategy was based on manufacturing a wide variety of products of biscuit and milk products. The cookies verities include sugar-free cookies, cream biscuits, and jam biscuits, amongst other products such as cheese, ghee, and butter.
Its pricing approach is majorly completion through price wars agonists its competitors like Parle products. It enjoys large profits from the majority middle class who tend to be price sensitive by selling at comparably low prices and offering large bundles of its products.
Britannia’s place and distribution tactic follow deals with large retailers like spencer and big bazaar, online ecommerce organizations, and local retail distribution. Today some of its popular products like Tiger biscuits have cut across international markets like Australia, Malaysia, and Indonesia.
Its promotion and advertising approach basing on a high reputation of over 100 years and a good perception of its products. Other means involves television advertisement, print media, and billboards. Through sports, Britannia also promotes its products by tagging its logos in cricket bats endorsed by international players and pushing the agenda that its products are essential for health.
iPhone
iPhone mostly introduces new devices every year, which supersedes the previous versions. Currently, it has iPhone X, which means that the earlier versions will be less expensive, thus attracting a different segment of customers. Apple iPhone offers a unique operating system, better speed than the existing competitor, flexible to the environment, and innovative mobile apps.
The pricing strategy is basing on minimizing manufacturing costs and offering value-added to the experience of a product. Also, Apple does offer a discount on its product to maintain its status, and gladly accept its loyal customers and the targeted customers.
iPhone place and distribution strategy extend to I –stores, independent stores, and online platforms like Flipkart, eBay, Amazon, etc. I stores are apple owned stores with highly trained salespeople and technical experts. Independent sore are few high-class stores, especially in malls.
iPhone advertising and promotion tactics include after-sale services, knowledgeable sales staff, point of sale advertisement, second-hand sales offers, ads, and social media talks.
Colgate
Colgate market strategy focuses on producing 13 different kinds of toothpaste at different sizes ranging from 20g to 300gns and for different users such as children. It offers excellent products such as toothpowder, mouthwash, and toothbrushes, all suited to adults, older adults, and children.
Its pricing tactic is that of price leadership with slightly higher prices than competitors’ perception of its superior products. Its estimates are regularly revised and maintained by advisors and ranges from 5 rupees for small sachets to 300g at 90 rupees.
The place and distribution formation follow a chain starting from the manufacturer to wholesalers, who then distribute to retailers and later to consumers. Moreover, Colgate avails its products in online shopping, supermarkets, grocery stores, and retail stores.
Colgate promotes its products via television advertisements, radio, magazines, newspapers, billboards, and digital marketing. It also uses social media ventures like Facebook, Twitter, and has an official website that gives discounts on products bought online.
- PRODUCTS LIFE CYCLE
Every new product introduced in the market, whether monopoly or competitive, follows a cycle of four stages, namely, introduction, growth, maturity, and decline. These stages are inevitable and essential for a re-evaluation of product performance, pricing tactics, promotion strategies, and distribution chain.
Britannia biscuits
Britannia biscuits are currently on maturity stage, and this is due to its capability to compete with its nearest competitor Parle biscuits and making massive profits over the past years as well as appreciating the value of its shares. In 2019 the product was able to realize a net income of 3.73 billion which was a 23.92% increase of 2018 while Parle biscuits, on the other hand, achieved a 6% growth in revenue with reportedly having to lay off employees due to slow growth and falling demand of its products the same year.
PayPal
PayPal has been able to withstand high competition against its competitors like Skrill, Wepay, Checkout, Google wallet, etc. In 2019 PayPal realized a 4.96billons profit, which was a 17% increase from the previous year while Skrill made a 330 million profit. Also, PayPal users increased by 9 million in 2019, only despite being facing high competition from the four financial services providers.
iPhone
Apple has different products that are in various stages. For instance, the new red colored iPhone is in the introduction stage and marking a few sales and slow growth. However, this phone is released to raise awareness for aid and generate income for global funds. Apple Air pods are in the growth stage and experience large sales and increasing market share growth despite the iPhone being in the maturity stage and slowing industry sales and income. Most iPhone users are re-purchasers who consistently do not change the brand, and this could be the determinant that the good is in the maturity stage.
Colgate
Colgate was in the introduction stage in 1873 and was sold in jars. It was sold in Colgate ribbons in 1986 and later entered the Indian market in 1937. During 1990-2003 Colgate increased its sales, reaching every rural and urban supply, whereas 2003-2007 received the number one toothpaste award and retained 51% of market share. In the period 2009-2013, Colgate faced high competition from Hul and P&G. Till today it has had to introduce variant Colgate toothpaste and increase advertisement to maintain its maturity stage and avoid its decline.
- SUPPLY AND CHAIN OF DISTRIBUTION
Britannia biscuits
The critical intermediaries in the distribution are agents, merchants, and facilitators. The channel level in the supply chain runs from the producer (production) to agent brokers, wholesalers, distributors, retailers, and even consumers. The agent brokers deliver to wholesalers and distributors who sell to retailers who lastly sell to the final customer.
PayPal
PayPal has been able to reach its customers directly via PayPal shops and eBay websites. It has partnered with almost 190 markets and 24 currencies worldwide to reach its customers indirectly. For instance, it has a partnership with Master-Card. Hence, it issues an inter-linked branded debit card, allowing the PayPal registered customer to spend online in the 19 million merchants accepting Master Card.
iPhone
The entire chain of distribution of the iPhone starts from China, where pallets are packed in containers and shipped all over the world. The biggest consumer of the good is FedEx from China does China, followed by U.S.A. shipments to the United States to Memphis and Tenn, where the company headquarters are located. The iPhone is later distributed to i-stores, private distributors, and dealers, thereby reaching its customers with ease.
Colgate
The distribution chain runs from the factory to the warehouse; the warehouse has three segments, namely the super stockist, stockist, and cooperative stores, all who delivers to wholesalers and retailers except the super stockist who indirectly uses rural stockist. The wholesalers and retailers later provide to the final consumer, and the supply and distribution chain becomes complete.
References
Books and journals
- Wu, Y.L., and Li, E.Y., 2018. The marketing mix, customer value, and customer loyalty in social commerce. Internet Research.
- Arvis, J.F., Saslavsky, D., Ojala, L., Shepherd, B., Busch, C., Raj, A., and Naula, T., 2016. Connecting to Compete 2016: Trade Logistics in the Global Economy–The Logistics Performance Index and Its Indicators. World Bank.
Websites
- https://www.statista.com/statistics/263402/apples-iphone-revenue-since-3rd-quarter-2007/ [Accessed 14 May 2020]
- https://www.livemint.com/companies/company-results/britannia-industries-q2-net-profit-jumps-33-to-rs-403-cr-11573481512307.html [Accessed 14 May 2020]
- https://investor.colgatepalmolive.com/news-releases/news-release-details/colgate-announces-3rd-quarter-2019-results [Accessed 14 May 2020]
- https://www.cnbc.com/2019/07/24/paypal-q2-earnings.html [Accessed 14 May 2020]
- https://economictimes.indiatimes.com/wall-street-finance-ltd/balancesheet/companyid-11967.cms [Accessed 14 May 2020]