Marketing Principles and Practices: Tusting's Strategy Analysis Report

This report analyzes the marketing strategies of Tusting, a luxury leather goods brand, and HSBC, a global financial institution. It examines Tusting's pricing strategies, including premium and cost-plus pricing, and explores the reasons for price differences between local shops and malls. The report also delves into HSBC's marketing communication tools, such as internet advertising, social media, and personal mails. It highlights the application of the DRIP model (Differentiate, Reinforce, Inform, Persuade) in HSBC's marketing efforts and provides recommendations for improvement. The report offers insights into how these companies leverage various marketing techniques to reach their target audiences and achieve their business objectives.

MARKETING PRINCIPLES AND
PRACTICE

TABLE OF CONTENTS
INTRODUCTION ...............................................................................................3
TASK 2 PRICING STRATEGIES...........................................................................3
TASK 3 MARKETING COMMUNICATION TOOLS.................................................5
TASK 6 SOCIAL MEDIA MARKETING IN THE NEWS............................................8
CONCLUSION .................................................................................................11
REFERENCES .................................................................................................12

INTRODUCTION
Marketing principles and practices are related to those strategies
which help to promote products in the market (Brush, Edelman and
Manolova, 2015). The report is based on the pricing strategies of Tusting
which luxurious English leather trade for five generations and they are now
Britain's largest and most highly regarded luxury leather luggage and travel
bags (About us, 2013). The report explains the pricing strategies which are
adopted by them. Apart from this, different marketing communication tools
has been identified through which they can make communication with the
audience. More than this, a detailed analysis of the social media marketing
has been done to identify the role of social media in marking of the products.
TASK 2 PRICING STRATEGIES
Pricing strategies for Tusting:
As the company is operating in different countries that is the reason
they uses different types of pricing strategies. This will help the organisation
to get more profit from the market. Generally they uses the Premium pricing
strategies. According to this strategy the prices of the product are set above
the market rate (Davidson, 2016). As they are the luxurious brand of UK so it
will be possible for them to get more profit in the market. Basically it is the
practice of keeping the prices high to encourage favorable perceptions
among the buyers based solely on the price (Pricing Strategies, 2010). This
practice is intended to exploit the tendency for buyers to assume that the
expensive items always enjoys an exceptional reputation. This strategy is
sometimes also called the skim pricing as it is an attempt to skim the cream
of the market (Hoppner and Griffith, 2015). Tusting generally uses that to
maximize their profits in the market where there are no substitute of the
products or having less value than the other products. Other than this, the
luxurious products are having the psychological association with adopting
the premium pricing. The implication of the marketing is done because high

profile people generally likes to buy the luxurious products that are having
high price tag (Meraj, Fernandes and Ross, 2016).
Tusting sometimes also follows the cost plus pricing which is the
method of setting the prices of the products more than the actual cost.
Through this, the organisation are quite capable of collecting much amount
of money form the market to cover their cost. In this strategy Tusting
includes the direct cost, indirect cost, material cost and overhead cost of a
single ladies handbag and add a markup percentage to derive the prices of
the products (Rana and Sharma, 2015). This will not only help them to cover
their cost but also it will help them to get profits in the market. Other than
this, it will help sometimes also creates the situation of monopoly
competition. Apart from that, through cost plus pricing Tusting is also able to
get more profits on the single design of the product (Salvo, 2015). They ca
also use it for their other product to gain profit in market. Generally the
markup is not so high so that it will be affordable by people to purchase it. In
addition to this, buyers also thinks that cost plus pricing is the affordable
approach to purchase the product easily. It will offer the competitive stability
to the company if all the firms adopt cost plus pricing strategies. It will be
generally used by the companies when they are having the much amount of
cost on the products (Sinapuelas, Wang and Bohlmann, 2015). As it will be
easy for them to afford the cost of the product. Other than this, it will be also
done for the intention of covering their cost on the products. As it is not so
common technique in market to finalize the prices of the products but still it
is much effective technique to cover the entire cost of the products without
giving too much prices of the products. It is also said as the economic theory
as it is possible for the company and customer both to afford the prices of
products. It will also make the people attracted towards the quality of the
products which leads to organisational profits of the company (Chrysochou,
2010). As it is not involved in charging too much prices of the products it will

also creates the good image of the product in mind of people which is great
for the goodwill of the company.
On the other hand, in the local shops the prices are quite different than
the malls. They are having a little low prices than the shopping malls as
people of middle class are not able to afford such kind of prices. The pricing
strategies which are analysed in research are quite similar to the strategies
which are used by Tusting (Gordon, 2012). It will help the company to get
the goals according to their expectation through which they are able to get
their objectives. Other than this, as the leather bags are in trend now-a- days
so it will be quite beneficial for the organisation to make their prices more
than other similar products. Apart from this, it is also concluded that the
strategies which are used in the company are different form the other
companies. More than this, the company will also able to make improvement
in their products so it will creates the differentiation in their products in
compare to other competition (Jobber and Ellis-Chadwick,2012).
Reason for difference in the pricing strategies and shopping malls:
The main difference in pricing of the local shops and mall is that people of
high profile generally likes to buy from the malls (Luca, and Suggs, 2010). On
the other people of middle class income are not able to afford the product
having high prices. That is the main reason found in the difference of the
prices of ships and malls.
TASK 3 MARKETING COMMUNICATION TOOLS
The task is based on the HSBC bank plc which is the largest banking
and financial services organisation in the word. It is also the international
network comprised around 7500 offices in more than 80 countries (About us,
2015). It task explains the marketing communication tools of HSBC through
which they can sell their products to the customers. This will help them
increase their business around the globe.

Marketing communication tools of HSBC: A range of marketing tools are
used by HSBC through which they are able to make connections with the
clients. They uses this tools to make the people attracted towards the
services of the company (Varadarajan, 2010). The use internet, social media
and messages to make communication with the audience. Apart form that
they also uses the advertisement on the newspaper so it will be convenient
for the customer to know about the services offered by the company. As
majority of people spend their time on social media so it is more beneficial
for them to make advertisement about the services on the social media
sites. Other than this, they also uses the local newspapers as the source of
making communication with the people so that they will be able to aware
about all the services of the company (Brush, Edelman and Manolova,
2015). Apart from this, use of internet will also help them to find about the
requirements of the people so that it will be easy for them to develop the
services accordingly.
More than all of this, HSBC also uses the personal mails to make
communication with the people. They collects the information of their
customers on their data base and make connection with theme at the time of
development of the strategies (Mihart, 2012). Through this, they are able to
send personal mails to the customers which will make able to get knowledge
about the latest products and services of the bank. They also uses to make
advertisement in the templates through which they will be able to do
marketing of their products and services in the market. It is also more
convenient for the bank to reduce the efforts of the marketing in the market
(Davidson, 2016). More than this, they uses their official website to make
advertisement of the products. The customers can directly go to the official
website of the company to find the new and latest services of the company.
Apart from all this,HSBC also uses the DRIP model to do marketing of their
services. The DRIP model is used to make communication strategies for the

organisation through which they will find the new and innovative ways to
develop the communication techniques to the customers. DRIP stands for
differentiate, reinforce, inform and persuade and can be an alternative to the
AIDA model (Hoppner and Griffith, 2015). AIDA model is also related to the
making effective communication with the people to make them attracted
towards the service of the company. Other than this, it will help the
organisation to get more profit in the less period of time. It was created by
Chris Fill and will be familiar to readers of his classic Marketing
Communications text (Meraj, Fernandes and Ross, 2016).
At the initial stage of DRIP is Differentiate in which HSBC has the scope
to make their products differentiated from the other company. This will help
them to make their products differentiated from other competitors. As
services of DRIP is quite useful and affordable by the customers (Rana and
Sharma, 2015). They can use this factor to get the customer attracted
towards it. The another factor of DRIP is reinforce which explains that HSBC
should reinforce the brand's messages and also consider consolidation and
strengthen their features of the products so that it will be quite easy for
them to make people aware about the services of the organisation. other
than this, it will also help them to make better advertisement of their
products (Salvo, 2015). Through use of this, the company also will be able to
find the strengths and weaknesses of their product so that it will be easy for
them to make effective marketing of their products in the market. They can
use their strengths to make people attracted towards the services. Through
knowing this, HSBC can make better communication with the clients. They
can also overcome from the weaknesses of the company so it will be more
easy to make increment in features of their products. It will also allows the
company to make connections with the number of people so that they can
increase their communication network (Sinapuelas, Wang and Bohlmann,
2015).

After that the next step is of inform which is related to make people
aware about the brand of the company and its services. HSBC will be able to
make explanation about the various features of their products so that the
customer will be able to find the benefits of the products for himself. Other
than this, it will also help the company to get best possible ways to make
communication with people (Chrysochou, 2010). They can make blogs,
emails and phone calls to the different people so that they can make
connection with them which is quite beneficial for the growth of the
company. Different ways are there through which HSBC will be able to make
connection with the people such as social media, internet, emails and
personal messages to the existing customers. This will help to make theme
inform about the new services. Other than this, the last factor is persuade
which is related to encouraging people for making purchase of the product
positively (Gordon, 2012).
Recommendations to HSBC to make improvement in their marketing
techniques:
As HSBC uses the excellent communication techniques but still they
require so new innovations in their marketing techniques so that they can
make better communication with the people. They should use latest
technology such as launching the new mobile application so that it will be
more easy for them to make people aware about their latest services (Jobber
and Ellis-Chadwick, 2012).
TASK 6 SOCIAL MEDIA MARKETING IN THE NEWS
Social media plays an important role in the marking of the products
online. Through this people will be able to find details about the product and
services offered by the different companies. Other than this, it will also help
the people to easily find the availability of the latest products and services
through which it is possible to get more positive results for the companies.

An analysis has been done based on the different magazines such as
Marketing
Week and Brand Republic (Luca, and Suggs, 2010). Through this, it can be
found that how companies are using social media as their source of
marketing. In addition to this, the recent trends of the marketing is also
explained that help to make people aware about the new products.
How brands are using social media to make communication with the
people:
As the social media is very important for making people attracted an
aware about the latest products so the companies are using it for making
their brands more powerful in public. Other than this, it is also very
affordable by the companies to make advertisement in the social media
sites. Many companies are there such as IT companies, retail and fashion,
FMCG and fast food companies are there which are involved in doing
marketing through social media. For example according to campaign live,
IKEA which is the multinational company that works in the furniture retailing.
they advertise all of their products in the social media sites so that it will be
possible for them to make connections with the other people (Mihart, 2012).
Apart from that, it is also quite convenient for them to afford the expenses of
the advertisement. More than this, as most of the people like to spend their
time on the social media so that it will be easy for them to know about the
latest products that are offered by the company.
According to the brand republic magazine, the start up businesses are
also going to make advertisement through the social media such as
VivaTEch. It is one of them who are doing advertisement in the social media
sites and also they are getting the much positive results from that. Other
than this,they make advertisement on social networks as people can find the
services of the company more easily (Varadarajan, 2010). Other than this, it
is also found that the JCDecaux’s and L’Oréal’s Makeup Genius are also

involving in making advertisement of the company in market. Through this, it
will be easy for the company to make attention on requirement of the
customer as they can give reviews about the products also. Apart from this
companies other companies such as finance, technology, health, leisure and
automobile organisations are also there which are involved in making
advertisement of the services in the social media sites. Other than this,
many startups are there which are involved in making advertisement on the
social networks. Recently, John Lewis announces finalists for tech startups
accelerator programme that is JLAB (Rana and Sharma, 2015).
More than this, many fashion companies are also there which are
involved in making advertisement of their brand on the social media sites.
Many Retailers such as Asos, Topshop and River Island are there who are
working on tapping into expertise of technology which will make them able
to make people aware about their brands and products (Sinapuelas, Wang
and Bohlmann, 2015). The companies are moving towards the social media
as this trends are make them able to do better communication with the
people.
Recent trends in social media marketing: Various trends are there now-
a-days which are making the companies attracted towards the using the
social media. Certain things are explained as below: Video content: It is best feature of social media that it is making
availability of the facility to upload video content on the social sites so
that it will be easy for the company it make people aware about the
products and services. Other than this, it will be also more convenient
for the company to find the various products (Jobber and Ellis-
Chadwick,2012). This trend of social media to make the easy
availability of the product so that it will be convenient for the customer
to directly purchase the products without going to the official sites of
the company.

 Social shopping: Other than advertising the social site also make
availability of the online shopping to the customers (Mihart, 2012).
Through this,people directly will be able to order the products. Other
than this, it will also help the company to get better opportunities to
the company. Through this,they can get more profits.
 Marketing automation: Marketing automation refer to the software
platform which is designed to help businesses market across multiple
channels simultaneously. Local businesses are using the platform to
keep up with the growing amount of content they will need to deliver
to their customers and prospects (Varadarajan, 2010). Various option
are available for the businesses through which it is possible for the
companies to get more profit. This is the major things which is
responsible for making the products famous.
CONCLUSION
According to the aforementioned report, it can be concluded that,
marketing principles help the company to make effective positioning of the
products and services in the market. Apart from this, it can also be
concluded that the Tusting is using different kind of pricing strategies
through which it will be possible for them to get profit in the market. Other
than this, they also will be able to cover up their entire manufacturing cost of
the products. It will make people able to afford the products of the company.
Apart from this, different marketing communication tools are there which
help HSBC to develop contacts with the people. Through developing contacts
with people make the company able to perform much better in the market.
Thy uses social media, internet and other source through which it will be
possible for them to cover the entire market operations. Furthermore, social
media marketing tools are much useful for the business to make connections
with the people.

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