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How to Write an Essay on Innovations in Marketing

Most people fail to come out with good custom essays not because they lack talent or brainpower but because they lack a reliable guideline. By following a few simple guidelines, you can score high marks in writing a custom essay/dissertation writing. Here is given a sample custom essay writings on Innovations in Marketing.

Marketing of a product or a service centers round what are called 4Ps (Product, Price, Place and Promotion). Innovation is possible in each of these four Ps. A new packaging can change the look and feel of a product. An innovative pricing strategy might help bring in a new set of customers. A new venue of distribution like a chemist shop for consumer or a novel use of promotional tools can make a difference in the market. This article is about how innovation in 4Ps helped some companies make a mark in the Indian market.

Product-related Innovation

Sachet shampoo is a classic example of product innovation in the nineties. Sachet shampoo delivered a large pool of untapped consumers to the hair wash market through low unit price and convenience. A similar innovation helped the up gradation of an LCV (Light Commercial Vehicle). Tata Sierra is really Tata Mobile with a hard cover and a few modifications. This switch from b2b consumers (LCVs) to b2c consumers (cars) helped Tatas launch more upgraded versions like Indica later. Tanishq's Karatmeter is an innovation that measures the purity of the gold. This information empowers consumers. Now they need not go by the claims of the jeweler. In a market dominated by central and window air conditioners, Carrier Aircon successfully carved a niche for itself through split air-conditioners. "Colorbank" which enables a consumer to chose the exact shade of color he or she wants is a big leap in the paints market. Spartek successfully sold the concept of floor tiles to the Indian consumer (Before that ceramic tiles were confined to bathrooms.) 100 c c vehicles dethroned scooters as the largest selling category of two wheelers thanks to their fuel efficiency and style. In a similar manner quartz watches are edging out mechanical watches. Thus there are several interesting illustrations of product innovation in the Indian market of 1990s.

Price-related Innovation

Nirma is usually seen as a pricing innovation but it is more than that. It was a success of pricing, communication and overall marketing strategy. Dr Reddy's Labs skillfully used gaps in Indian patent laws to bring down the price of pharmaceutical products. Videocon for long used the protection of backward area manufacture to aggressively price its products. Bajaj's "Boxer" promises a high mileage at an all too affordable price of Rs. 29,000. The success of Tata LCVs is largely attributed to their ability to price competitively. Though there are more successes in India on low price promise, there are some from the premium segment as well. By providing a lifestyle product Titan not only got a premium but also convinced consumers to buy multiple watches. Whisper and Pantene, despite their high unit price, have not lagged behind in market share.

Place-related Innovation

The word "place" is used here roughly to connote distribution. Paint companies have achieved real-time connectivity with their dealers through wide-area-networks. This helps them stock optimum quantities with the dealer. Several multinationals and Indian companies are making use of VSAT connections to reduce information gaps. Many companies use video vans loaded with stock to sell in rural areas. These vans go to melas and shandies and are used as promotion as well as distribution vehicles. This distribution vehicle is significantly contributing to rural sales. Gujarat Ambuja transported cement through ships to the Kerala market and tried to improve the reach of the brand. ATMs have revolutionized banking. Recent entrants like ICICI bank are investing in ATMs rather than brick-and-mortar branches. The Bombay tiffin carrier service is probably the best illustration of providing high "place utility". The service delivers tiffin carriers from homes to offices. (Their service standards are supposed to be better than six-sigma, which means the probability of a tiffin carrier being delivered to the wrong address is less than 3 in a million).

Promotion-related Innovation

The promotional tools at the disposal of a marketing manager are typically advertising, sales promotion, personal selling, direct marketing, public relations and Internet marketing. Onida ("devil"), Ujala ("just four drops"), Titan ("Mozart's symphony"), Amul ("utterly butterly delicious") have found a place for themselves through innovative communication. Tata coffee and tea have made a name through innovative event marketing (e.g., "walking" posters, huge coffee mug in front of the Bangalore Palace etc.). Cello thermal ware effectively used sales promotion to trigger high brand awareness ("When they ring up, if you say "Cello" instead of "Hello", you get a gift"). Arun announced a scheme wherein ice cream is delivered free to your residence if you dial a number. Videocon used several innovative promotion schemes like "Money back Policy", "Gold Coin scheme" etc., to increase market share. Madura Garments did an extensive direct marketing campaign with tailors for their sewing thread. Reader's Digest successfully practiced direct marketing much before the word became fashionable in marketing lexicon. Maruti used Public Relations effectively by recalling a large number of defective cars from the market. Different organizations therefore, use different tools of promotion depending on their objectives.

Not all innovations work, however. Note that the sachet that worked in shampoos failed in toothpastes and talcs. In toothpastes, the provision of the dispenser to the sachet might help. In talc, however, sachets are unlikely to take off because freshness is lost once the sachet is opened. Detachable bristles for brushes did not work. Neither did coffee bags. Ruf-and-Tuf's product innovation of jeans stitch kits though welcomed initially could not be sustained because tailors used the Ruf-and-Tuf label on spurious material. Though all innovations might not work in the market, it is important to keep trying.

There is another important observation to make. Most product innovations in the Indian market are incremental. They are not discontinuous innovations that mark a paradigm shift (e.g., email). Contrast this with what happens in the more competitive markets abroad. Gillette spends millions of dollars to upgrade its blades. Its Sensor-Excel was voted the product of the decade in 6 European countries. Sony repeatedly introduced path breaking products like Walkman, solid state tape recorder, Trinitron picture tube etc., and revolutionized entertainment. Multinationals spend a lot more money and effort on research than Indian companies. That is the key to bringing out great products. Thus, if Indian companies want to make a mark, not just in India, but globally as well they need to pursue discontinuous innovations. These can be brought about only through targeted and coordinated efforts in R&D. That, as Churchill said, might mean an epic struggle of "blood, sweat, toil and tears".

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