Marketing Mix and Diversification Strategies
Added on 2020-10-23
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MARKETING PRINCIPLEAND PRACTICE
Table of ContentsINTRODUCTION...........................................................................................................................11.key marketing concept and terminology.............................................................................12. Marketing strategies and programs of The Virgin group...................................................33. Marketing mix and STP of Virgin group...........................................................................54. Marketing functions and its relation with other functional areas.......................................7Conclusion ......................................................................................................................................9REFERENCE.................................................................................................................................11
INTRODUCTIONMarketing is effort to promote and sale good and service to end customer. Primeobjective of marketing is to increase sale by enhance consumer satisfaction. Diversification isprocess of expanding business in different industry. Successful diversification can be done byeffective and efficient marketing practice. Present study gives the idea of marketing function andits relation with diversification. Report is made upon case study which identifies the problemsoccurred in Virgin group due to umbrella branding. Company overstached it sizes. Diversifiedproduct are not matched with core value and principle set by Richard Charles Nicholas Branson(owner). Report cover marketing function and activities which help it to become a giant empire.Report also put light on co ordination of different department of Virgin Group. Marketmix ofFirm also include to know how it uses different strategies for different products. Virgin Group isone of the largest company having its business in more than 400 countries. USP of this legendorganisation is its “ huge diversification” policy. Richard Branson not only set up brand at veryyoung age, he even took so intensive risk to establish it as a “ global company”. No other ownerand entrepreneur is famous with its brand as Richard Branson is, because his personality andethics can be seen all the business. Company offer financial services, bank, electronic gates,Airline, Rail transport, books, health care, wellness product, internet facility, mobile, radio,jewellery and films product to its customer. It has really big product base in business industry.Such a large diversification policy help to avail large market size but it also creates the problemof quality in product. Report also suggested the way Virgin group can manage the ethicalissue( compromise core value ) emerge due to loosing its concentration.1.key marketing concept and terminologyProduct strategyIt is a blueprint of product development stage and activities. Objective, directions,purpose of product are being formulated in product strategy of company. Strategic planning andmarketing planning are done to achieve these objectives and purpose. Company get a randomidea of would be product and it takes its actions to achieve this imaginary product. Productstrategies comprises vision, mission (short term goals), initiatives, big picture context etc.following is the rebranding marketing strategy used by Virgin Group for its product (Bahl. andChandra, 2018)Rebranding1
Here vision of Virgin group is to give different name to different business . Companyalso want to change name of diversified product based upon suggestion received by marketingexperts. Same name for every thing create image of “unfocused Firm” and goodwill of companyaffected by failure of diversified product. For instance organisation use “Virgin” with railservice, but these service is swamped by Britain’s poor integrated rail system (Cacciolatti. andLee, 2016)product development Virgin group can offer innovation and improvement in current product accepted bycustomer to regain its lost goodwill. Withdrawing from diverse business not a good idea as it canattach failure stigma with company. Company has to know the reason of failure. To align thediversified product with company's vision and core value, it can take initiative like rebranding,identification of customer's need, quality improvement, personalised product, gather data oftarget customer about regarding expectation, pricing and packaging modifications, use separatename for separate industry. Virgin Group's prime vision is “ changing business for good”, thatcan be easily achieved by these initiatives (Caselli. and.et.al., 2015)Branding Virgin Group desperately need barding effort in its business. Monolithic branding doeswork for company as expected. This marketing function focus on acquiring a special place andimage in customer's mind. Company can communicate its vision ,core value, product featureand benefit to consumer. It must use individual branding. It enables consumer to differentiate itsproduct form competitor and from its own sibling products. Here Firm need different brandname for different services because single name has some attached image and expectation ofcustomer. Like Virgin now earned image as best venture capital firm.Over starching and over useof same brand name lead to confusion and distrust among customer. So in order to improve thisarea, Virgin group must convey the objective and reason for diversification. For instance: ifcompany wants to change the name of virgin rail it should use promotional tools like (socialmedia, website) to give more information for product (DiMartino. and Jessen, 2016) . Effectivecommunication of information help the company in making good brand image and position inmarket and in customer mind.2
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