Detailed Analysis of the Marketing Mix for Chivas Regal Products

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This report analyzes the marketing mix of Chivas Regal whisky, examining its strategies across product, price, place, promotion, people, process, and physical evidence. The report highlights the importance of the marketing mix in determining product suitability for target customers and evaluating organizational activities. The analysis includes a detailed breakdown of Chivas Regal's product categories (single malts, Drambuie, and Scotch whisky), distribution channels (USA, France, Spain, hypermarkets, and online sales), promotional activities (branding, packaging, and sports sponsorships), and pricing strategies. It also discusses the role of employees and customers (people), the methods of product delivery (process), and the branding and packaging (physical evidence) in creating a positive brand image. The report references several academic sources to support its findings.
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Marketing mix refers to a term used in business whereby a business organization combines
the marketing tools or the marketing factors which includes the product, the price, the place,
promotion, the people, the process and the physical evidence of the product with an aim of
producing a desired feedback from the target group. (Allah Pitchay, 2012)
Importance of marketing mix
According to the marketing mix theory marketing mix enables the business to determine the
products or the services it should offer to the target group of customers.
According to marketing mix theory the purpose of the marketing mix is to enable the
business to recognize the suitability of the product for particular target group customers.
According to the marketing theory, marketing mix enables the business organization in
evaluation of activities carried out in the organization with the aim of improving the business
activities in order for the business to achieve the set goals. (Gajic, 2012)
Purpose of marketing mix
According to the marketing mix theory, the purpose of marketing mix is;
To enable the business determine the business strategies and the objective that the business
should attain within a certain period and ways of attaining to the stated objectives.
To enable the business to determine which product is suitable to a particular group of people.
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To enable the business to be aware of the market of the business products with an aim of
increasing the profit margin of the business organizations.
Products
Products are goods or services offered or provided by specific companies for the purpose
selling to the target groups demanding the product. For example the whisky product provided
by the Chivas regal royal salute company. (Gordon, 2012) The company uses differentiation
strategy to attain high competitive advantage in the market. The company gains a greater
market share by ensuring they have satisfied all users of whisky in the market. The whisky
product is divided into three categories; the first one is the single malts whisky this category
of whisky liquor is spiced with herbs and sugar to give a new taste that attracts persons who
prefer spiced whisky. The idea was to give a different taste in whisky .The second category is
drambuie whisky; it has dominated a smaller part in the market whose purpose is to satisfy
consumers who like sweeter whisky. The third category is Scotch whisky, this is the most
consumed category because of its high quality, and the category gives prestigious image that
attracts consumers.
Place
According to the Chivas Royal company ,the destinations where whisky are exported are
the USA, FRANCE and SPAIN , the company also makes them available in the large
hypermarkets, and they also store them in their well controlled stores. They also sell the
products online by creating their own websites therefore promoting the brand of the product.
Promotion
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The whisky company brands and package the products in a way that is more appealing to the
consumers in order to increase the demand of the product. The company advertise their
products to a target of young people by mostly sponsoring the sports events to get a chance to
market their products. (Istiqomah, 2016)
Price
Price refers to the value or the cost of the product. The main strategy of pricing in chivas
regal company is to influence more buyers to purchase the product. The different categories
of whisky liquor are priced according to the quality, taste and category. The company has
priced the product at slightly fair prices in order to gain competitive advantage in the whisky
market. In addition, high quality whisky product like Scotch whisky is sold at higher price
than brands of other categories because of its high value and quality. During peak seasons the
demand of whisky liquor rises therefore resulting to rise in price as well.
People
People involve the employees and the customers. Employees offer services to the customers
who receive the products and services in exchange at a price. The four main characteristics
influence their market offers, they include inseparability; the feature describes the main
quality of service differentiated from the goods (Er & Simon, 2015). The services offered by
the people are consumed by consumers without rejection. Perishability describes how
services and products available cannot be stored for long period before being sold, direct
interaction between employees and customers ensures sell of available services and
products. Intangibility describes the intangible goods and services. Basing on variability,
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products varied, like the Chivas Regal royal company the whisky products vary in terms of
taste and quality.
Process
This involves the ways or methods of delivering the products to the customers. The Chivas
regal royal company delivers different standards of the whisky products that could satisfy the
demands of different groups of people.
Physical evidence
Physical evidence refers to what the buyers see when they interact with the business. This
involves the mode of branding and packaging. The Chivas regal company branded the
product in a way that is more appealing to the consumers; therefore it created a positive
image of the business. (Sankrusme, 2014)
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References
Allah Pitchay, A. (2012). Marketing Mix from Islamic Marketing Perspective. SSRN
Electronic Journal. doi: 10.2139/ssrn.2017488
Er, A., & Simon, S. (2015). Marketing Mix of Ecotourism Product in Kuching, Sarawak,
Malaysia. Mediterranean Journal Of Social Sciences. doi:
10.5901/mjss.2015.v6n4s3p39
Gajic, J. (2012). Importance of marketing mix in higher education institutions. Singidunum
Journal Of Applied Sciences, 9(1), 29-41. doi: 10.5937/sjas1201029g
Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix. Australasian
Marketing Journal (AMJ), 20(2), 122-126. doi: 10.1016/j.ausmj.2011.10.005
Istiqomah, Y. (2016). The Influence of Marketing Mix (Product, Price, Place, and Promotion)
and Service on Customer’s Decision of Using BSM Saving Products. Global Review Of
Islamic Economics And Business, 3(2), 073. doi: 10.14421/grieb.2015.032-01
Sankrusme, S. (2014). Whisky Marketing Strategies Before Liquor Liberalization. SSRN
Electronic Journal. doi: 10.2139/ssrn.2684972
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