Home-Based Services Marketing Strategy

This assignment delves into the burgeoning market of home-based services in India. It analyzes factors driving this growth, including rising disposable incomes and a preference for convenience. The analysis focuses on identifying target customer segments, particularly luxury consumers who favor online payment options and personalized services. The assignment emphasizes the importance of customized marketing strategies and highlights the potential impact of digital platforms in reaching these consumers.

International Marketing
Name of the Student:
Name of the University:

Marketing Mix
The marketing mix can be defined as a set of marketing tools that can help pursue the
objectives set for ACC:
Product Strategy
The product strategy refers to the product or service assortment offered by an
organization to its customers. The services offered in the residential care centres are mainly
services. The services offered at ACC are intangible. They include accommodation, high quality
home care, and domestic assistance to help them with household chores such as household
cleaning, washing and ironing clothes, and meals preparation (Nicholson, Meyer, Flatley, &
Holman, 2013).
ACC shall reaffirm luxury living for senior citizens with the well-designed suites and
infrastructure for the elite senior citizens in India. This service home shall add luxury along with
assisted living by maintaining good health. The two types of accommodation shall be available:
studio and suite. A suite shall have a separate living room and bedroom that offers more personal
space and privacy. However, a studio shall have a combined area for sleeping and sitting. The
room shall have double bed, writing table, geyser, built-in-cupboard, emergency call-point,
microwave, refrigerator and coffee maker. Further, the elderly are provided with a special diet
regime which is rich in proteins, vitamins and low on fat that encourages healthy living. The old
age home also arranges leisure activities where they can interact with one another and spend
some precious time. ACC shall have a minor operation room and intensive care unit in case of
emergency. The efficient medical facilities shall be provided by highly qualified MD doctors
(Sixsmith et al., 2014).

Pricing Strategy
The pricing strategy refers to the price that offers maximum profitability while focusing
on increasing market share. According to Tradingeconomics.com (2017), the GDP has been
constantly rising in the recent years. The GDP in 2016 was 2.264 trillion USD
(Tradingeconomics.com 2017). The GDP per capita in 2016 was 1,709.39 USD
(Tradingeconomics.com, 2017). It indicates that India is tapping spending power into the people
living in urban areas.
The products and services designed at ACC targets the upper income class people. The
price skimming strategy can be adopted by ACC in which the prices set shall be high at first. The
prices may be lowered over time. The aim of this pricing strategy shall be to capture the
consumer surplus at an early stage. ACC needs to enter the market in Mumbai and high prices
Recently, the purchasing power of people in India has increased that allows the people to
purchase premium products and services (The Economic Times, 2013). Premium charges may be
introduced at ACC that shall suggest high value in the minds of the consumer. The upper income
consumers shall care a little in spending when it comes to retirement or elderly care. This tactic
may encourage the competitors to enter the market. The payment shall be made by the
consumers using cash, credit card, debit card or other modes. The buyers may assume that the
value of services will be durably good, which is why it shall be worth paying a higher price.
However, ACC may attempt to lower the price after a certain length of time (Spann, Fischer, &
Tellis, 2014).

Promotion Strategy
Promotion mix refers to the mix that comprises of tools such as public relations, sales
promotion and advertising that can be used by the marketing team to achieve goals and
objectives. ACC may implement pull marketing approach in which the customers shall get to the
old age home. Mass promotions, mouth of referrals and advertised sales promotions can be used
to attract customers. Advertisements shall be shown on television, hoardings and social media to
grab the attention of masses. Further, when the elderly or young ones notice the advertisement,
they shall be looking to avail services at ACC after they get old or retirement. In this way, the
customers shall be pulled towards ACC (Tiago & Veríssimo, 2014).
Further, ACC can conduct advertisements and promotions on social or digital media. The
social media sites such as Facebook, Twitter, Instagram and others can be used for engaging
potential clients. The queries or concerns of the people can be addressed on social media sites for
maximum engagement. Video campaigns can be organized at these sites including YouTube that
shall catch maximum attention of the social media users. Moreover, digital channels such as
television and radio may be used as a medium for advertising and promotion of the old age
home. The budget for advertising and promotion must be allocated in a manner that allocates
maximum amount for promotion on social media and television. These two channels are most
widely used by the old age or young seekers looking for a luxurious retirement home (Ashley &
Tuten, 2015).
Distribution and Logistics Strategy
The distribution strategy ensures that the right product or service is delivered to the
customers at the right time. ACC can consider partnering with multiple hospitals and

organizations that can help broaden the scope of service delivery. As they key market segment is
luxurious or upper income class of consumers, the location for the residential care homes shall be
in proximity to malls, shopping centres, railway stations, and proposed metro station, and
medical centre. This shall make ACC to cope with the needs of independent senior living in
Mumbai (Karanja, Muathe, & Thuo, 2014).
The inventory needs to be managed for supplies required at the old age home such as
groceries, stationery, medical supplies and others. The right strategy ensures access to the right
products, and it also helps control costs associated with buying and storing goods. The inventory
pull system can be followed in which the production orders begin upon inventory reaching a
certain level. Internet can be used as a successful marketing channel and the payment can be
made virtually without having the need to visit the front office. The luxurious or upper income
consumers may choose to purchase services by making the payment online as it is highly
convenient. The services shall be customized depending on the needs of people (Feng, McVay,
& Skaife, 2014).

References
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study of branded social content and consumer engagement. Psychology &
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Karanja, S. C., Muathe, S. M. A., & Thuo, J. K. (2014). The Effect of Marketing Capabilities and
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Spann, M., Fischer, M., & Tellis, G. J. (2014). Skimming or penetration? Strategic dynamic
pricing for new products. Marketing Science, 34(2), 235-249.
The Economic Times, 2013. Rising purchasing power drives India's economic growth: OECD.
[online] The Economic Times. Available at:
<http://economictimes.indiatimes.com/news/economy/indicators/rising-purchasing-

power-drives-indias-economic-growth-oecd/articleshow/16839425.cms> [Accessed 4
Oct. 2017].
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bother?. Business Horizons, 57(6), 703-708.
Tradingeconomics.com, 2017. India GDP | 1960-2017 | Data | Chart | Calendar | Forecast |
News. [online] Tradingeconomics.com. Available at:
<https://tradingeconomics.com/india/gdp> [Accessed 4 Oct. 2017].
Tradingeconomics.com, 2017. India GDP per capita | 1960-2017 | Data | Chart | Calendar |
Forecast. [online] Tradingeconomics.com. Available at:
<https://tradingeconomics.com/india/gdp-per-capita> [Accessed 4 Oct. 2017].