Marketing mix strategies of brass part industry

Transcription

1 Marketing mix strategies of brass part industry Ms. Richa Pandit 1, 1 panditricha@gmail.com Research Scholar in Management, Gujarat Technological University. Ahmedabad, Gujarat, India Ms. Devina Upadhyay 2, 2 Devina_upadhyay@yahoo.com Research Scholar in Statisctics, Department of Statistics, Gujarat University, Ahmedabad, Gujarat, India

2 ABSTRACT The marketing mix is all the key activities that are used in marketing business s products. This is frequently referred as the four Ps: Price, Promotion, Place and Products. A business will manipulate the four elements of the marketing mix in whatever way it has, in order to stay ahead of the competition. The brass parts industry is primarily an intermediate industry supplying a wide variety of brass parts and components to almost all the engineering industries ranging from electrical/ electronics industry to automobile industry. It s phenomenal growth could also be ascribed to the growth and diversification of other engineering related sectors of the industry. Survey of 30 Managers of Brass Parts Industry at Jamnagar was carried out. Structures questionnaire was use as research instrument. Analysis was carried out using ANOVA & tables. A study of marketing mix of Brass Part Industry was carried out in this paper. KEYWORDS: Brass Part Industry, Marketing Mix, Customers INTRODUCTION India is highly famous for the house of the brass products in all over the world. Particularly Jamnagar is famous for its quality brass products in the world. There are so many brass part firms situated in Jamnagar. Jamnagar is known for manufacturing of electrical, electronic, Engineering, Agriculture, sanitary, Forging parts, Extrusions, Hardware, Auto parts, Home Appliances and other Precision Brass Components. Jamnagar provides a complete platform to the brass metal parts, like the technical support, the testing centers, availability of raw material, skilled labor etc. Jamnagar is the biggest supplier of brass components. It provides employment to the people on large scale basis. The brass industry has to face many problems. Some are internal and some are external. These problems affect many other industries as well as the economic growth of the country. The employees who are directly involved in this industry are also get affected because they are dependent on industry for their livelihood. The economic growth of our country is also affected. Purpose of the research is to study marketing mix strategies adopted by different brass part industries. OBJECTIVES To study how the marketing functions and tools are implemented and performed at different brass part producers. 1. To know the policies for the quality improvement of the brass part. 2. To know the pricing method adopted by the companies for pricing the product. 3. To know how the brass firms can survive in recession time 4. To study the policies, companies are using to attract the customers. 5. To know about the promotional activities, companies are doing to increase their sales. 6. To study the loopholes of the brass part industry. 7: To study place mix of brass part industry.

3 RESEARCH PLAN Researchers have contacted 30 managers of brass part industry of Jamanagar City to fulfill the purposes. The task of collection begins after a research problem has been defined and research design chalked out. A structured questionnaire was use to reach the sample. The data, which is collected directly from the respondents to the base of knowledge and belief of the research, are called primary data. The normal procedure is to fill questionnaire from the employees of the company. So far as research is concerned, primary data is the main source of information that is collected through the questionnaire. Purpose of the research is to study the marketing mix strategies adopted by different brass part industries. This research will help the company to formulate a perfect marketing strategy. This will help the company for the formulation of competitive strategy as well as give idea whether advertisement is effective or not and if yes then up to what extent. ANALYSIS AND INTERPRETATION Obj.1: To know the policies for the quality improvement of the brass part. Policy adopted for quality improvement of the products. Table 1 Total quality management 25(83%) Six sigma 5(17%) Most of the company have adopted total quality management for the quality improvement. Rest of the companies have adopted Six sigma but have not total control on it they are working to have least defect. Table 2 Yes 23(77%) No 7(23%) Most of the company prepares their final products as the customers demand. Their products are based on the shape, size as demanded by the customers. Rest of the companies prepare goods and sell it to them who have such demand. Obj.2: To know the pricing method adopted by the companies for pricing the product. Policy adopted for Pricing: Table 3 Going Rate Pricing 22(73%) Mark-up Pricing 3(10%) Target Return Pricing 4(14%) Perceived Value Pricing 1(3%)

4 Other 0 From the above details, it can be interpreted that most of the companies keep their prices of the products which is kept by the most of the companies in the market. The main reason for choosing this pricing method by most of the company is that Going rate pricing is the safest method for pricing as company can attract more customers by providing Discount & Allowances schemes by keeping the same price. Obj.3: To know how the brass firms can survive in recession time. Manage prices during recession period: Table 4 Decrease the Price 20(67%) Decrease the Cost 3(10%) Nothing Fixed, Based on the situation 6(20%) Providing Extra Discounts & Allowances 1(3%) Brass part industries have just faced recession before few years. Companies make many efforts to survive in recession also. As shown above, most of the companies decrease the prices of the product to that extent where they can earn minimum profit. Very few try to decrease the production cost and few of the companies believe that it is not fixed, it is based on situation. Obj.4: To study the policies companies are using to attract the customers. Providing Discount & Allowances for advance payment, bulk purchase or recession period buying. Table 5 Yes 24 No 6 It can be interpreted from the above data that 80% companies allow Discounts & Allowances for advance payment, bulk purchase or recession period buying. Rests of the companies get their products sold to their customers without offering Discounts and Allowances. Allow more credit period to the regular customers.

5 Table 6 Yes 23 No 7 From the above data it can be interpreted that approx 77% companies allow more credit period to their regular customers. Rests of the companies have strict payment policy even for their regular customers. Credit period allowed by the companies: Table 7 10 to 15 days to 30 days 8 30 days and above 7 Credit period is allowed by the company based on their collection policy. 50% companies allow only 10 to 15 days as credit period, 23% allow 15 to 1 month as credit period and rests of the companies allow more than 1 month as credit period. Impact of sales promotion over customer relations, satisfaction and loyalty. H0: There is no significance different in the perception regarding promotional activities to increase the sales. H1: There is significance different in the perception regarding promotional activities to increase the sales. Table 8 Variable P Α Sales promotion Interpretation: P < α Reject Ho. i.e. All the respondents believe that company should do promotional activities to increase the sales.

6 Obj.5: To know about the promotional activities, companies are doing to increase their sales. Promotional activity taken: Table 9 Particulars Mean By providing cash discount 0.83 By Allowances/gifts to certain buying limits 0.47 By lucky draw/ other schemes 0 By zero % Financing facilities 0.1 By Conducting Trade shows/ trade fairs 0.53 Companies select more than one promotional activity in order to increase sales. From the above data it can be interpreted that most of the companies choose cash discount method to promote their sales. Above data show the Averages of the promotional activity. Highest mean shows the mostly taken promotional activity. Few companies have also arranged trade shows, and few companies provide gifts and other allowances to certain buying limit. Most Preferable Advertising method: Table10 Television ads 11(37%) Print Ads 16(53%) Radio Ads 0 Film Ads 3(10%) Other 0 Advertising is one of the best tools, used for sales promotional. There are various methods for advertising but the most preferable methods which is used by brass part industry are Print ads and Television ads. 53% firm uses print ads as advertising tool. 37% firm uses Television ads and only 10% uses Film ads. Direct marketing can reduce overall cost of the firm: Table 11 Yes 22 No 8 From the above data it can be interpreted that approx 73% firms think that direct marketing can reduce overall cost of the firm. Direct marketing chosen by firms:

7 Table 12 Direct mail 19 Catalog Marketing 5 Telemarketing 6 Other 0 It can be interpreted from the above data that most of the firms using direct marketing if needed. Approx 63% firms have chosen direct marketing, 17% have chosen catalogue marketing and 20% firms have chosen telemarketing. Marketing Channel used to sell the products: Table 13 Zero level channel 6(20%) One level channel 15(50%) Two level channel 6(20%) Three level channel 3(10%) It can be interpreted from the above data that 50% of the companies uses one level marketing channel (manufacturer wholesalers/retailers customers) till the time products reaches to customers. In equal proportion companies uses two and three level of distribution channel i.e. 20%. Obj.6: To study the loopholes of the brass part industry. Biggest obstacle in development of brass industry: Table 14 Particular Mean Internal Competition 0.63 High scrap prices 0.53 Duties and taxes 0.13 Government policies 0.10 Foreign Exchange fluctuation 0.20 Inflation 0.07 The highest averages 0.63 and 0.53 shows the biggest obstacle in development of brass part industries. Most of the firms consider Internal Competition and High Scrap prices as a biggest obstacle. Rests of the reasons affect less than these two. Obj.7: To study place mix of brass part industry. Reasons for choosing particular location of the plant:

8 Table 15 Particular Mean Availability of workers 0.53 Transportation facility 0.37 Climate condition 0.10 Proximity to the market 0.20 Community attitude 0.03 Government Benefits 0.27 From the above data it can be concluded that firms are considering Availability of workers, Transportation facility and Government Benefits as the main reasons for choosing particular location of the plant. Availability of workers has highest mean 0.53, Transportation facility has 0.37 and Government Benefits has 0.27 mean. Rests of the reasons are less important for choosing location of the plant. Transportation facility used: Table 16 By road transport 22(72%) By Air transport 4(14%) By sea transport 4(14%) It can be interpreted from the above data that most of the companies use Road transportation facility to transport their finished goods to their customers. The percentage of Road transport facility used by the companies is 73%. Rests of the companies are using air transportation and sea transportation. FINDINGS 83% have adopted total quality management for the quality improvement. Rest of the companies have adopted Six sigma. 77% companies prepares their final products as the customers demand.products are based on the shape, size as demanded by the customers 73% companies believe that going rate pricing is the safest method. Most of the companies keep their prices of the products which is kept by the most of the companies in the market. 67% of the companies decrease the prices of the product to that extent where they can earn minimum profit. Very few try to decrease the production cost. 80% companies allow Discounts & Allowances for advance payment, bulk purchase or recession period buying. Rests of the companies get their products sold to their customers without offering Discounts and Allowances. 77% companies allow more credit period to their regular customers. Rests of the companies have strict payment policy even for their regular customers.

9 50% companies allow only 10 to 15 days as credit period, 23% allow 15 to 1 month as credit period and rests of the companies allow more than 1 month as credit period. All the respondents believe that company should do promotional activities to increase the sales. Most of the companies choose cash discount method to promote their sales. Most preferable methods which is used by brass part industry are Print ads and Television ads. 53% firm uses print ads as advertising tool. 37% firm uses Television ads and only 10% uses Film ads. 73% firms think that direct marketing can reduce overall cost of the firm. 63% firms have chosen direct marketing, 17% have chosen catalogue marketing and 20% firms have chosen telemarketing 50% of the companies uses one level marketing channel (manufacturer wholesalers/retailers customers) till the time products reaches to customers. Most of the firms consider Internal Competition and High Scrap prices as a biggest obstacle Firms are considering Availability of workers, Transportation facility and Government Benefits as the main reasons for choosing particular location of the plant. 72% firms use Road transportation facility to transport their finished goods to their customers. CONCLUSION Majority of the companies of Brass Part industry practice total quality management in Manufacturing Process. Moreover, they also offer customized product as per the requirement of the customers. Majority of the companies practice Going Rate Pricing method but during the recession time they have reduces prices of their products. As a part of promotional activities, companies of the brass part industry have offered discounts & allowances for bulk purchase. Majority of the companies have agreed that promotional activities have increased their sales. Most preferred method for promotional activity are cash discounts, direct marketing and television advertising. As per the research, internal competition & high scrap prices are the two biggest obstacles in the development of brass part industries. So far as transportation is concern, majority of the company prefer road transportation facility to transport their finished goods to the customers. REFERENCES Brady, George S., Henry R. Clauser, and John A. Vaccari. "Brass." In Materials andbook, 14th ed. New York: McGraw-Hill, 1997, Pages- 13 Brassington, F. and Pettitt, S. (2003). Principles of Marketing (3rd ed.), New York, USA: Prentice Hall/Financial Times. Constantinides, E. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing, Journal of Marketing Management: Jobber, D. (2001). Principles and Practice of Marketing (3rd ed.), New Delhi, India: McGraw Hill. Kothari, C.R. (2004). Research Methodology: Methods and Techniques, New Delhi: New Age International (P) Publishers Ltd. Kotler, P. and Armstrong, G. (2004). Principles of Marketing (10th ed.), New Delhi: Prentice Hall of India Private Limited.

10 Pride and Ferrel (1987). Marketing: Basic Concepts and Decisions (5th ed.), USA: Houghton Mittlin Company. Provo and Utah, Copper, Bronze and Brass, Journal of book of Mormon Studies, Maxwell Institute, 2000, Volume-9, Issue-2, pages: Stanton, W. (1984). Fundamentals of Marketing, New York: McGraw-Hill. William Benham and Richard K.Meade, The Technical Analysis of brass and the Non-Ferrous Alloy, University of California, 1911, pages