With the increase in consumers’ demand, a lot of corporations are established every year to meet customers’ need. Therefore, businesses have to come up with unique ideas that can set their firms apart from competitors in the competitive market. The aim of this report is to compare the differences between three companies, namely NIVEA, JD and National Trust regarding the way in which these three enterprises use price, place and promotion to ensure customers buy their products.
1.2 Background
Places which are likely to be one of the main elements in the marketing mix is the location in which organizations use to make their products or services more easily accessible for their customers (The Marketing Mix, n.d). It is likely that enterprises would choose low-cost areas or the places where the young population or specialized human resources immigrate (Alonso and Bea, 2012, cited in Kavoura, 2013, p.6). Kavoura suggested that products need to be sold in the places where customers might possibly purchase them.
Price is known as the amount of money that consumers have to pay in order to receive services or products (The Marketing Mix, n.d). According to Shaprio and Sawyer (2003), there is a likelihood that the competitiveness of the company’s product may be decreased owing to the increase in price. Additionally, Davidson (1978, cited in Shaprio and Sawyer, 2003, p.357) claimed that the money which was poured into products cannot be recouped except that corporations’ sales are maintained.
Rowley (1998) stated that businesses use promotion to communicate with consumers. It is likely that a suitable promotional mix, which is the integration of diverse promotional channels, should be created so as to meet the promotional objectives.
2. Price strategy analysis
2.1 NIVEA
NIVEA VISAGE Young is a price leader and it sets the price rate which many competitors may follow or charge a lower price. Therefore, NIVEA might frequently review prices of its adversaries in order to remain its price competitive. In terms of product life cycle, when the goods are newly launched, they tend to be affordable. After gaining the trust of consumers, the company has the proclivity to raise the price until it is in the period of saturation. Then, the sales are likely to decline until the withdrawal (Appendix 1).
2.2 JD
According to JD (n.d), the main factor of the business’s marketing strategy is getting the price right. It appears that there are many pricing strategies that could be implemented to increase the need such as market penetration, competitive pricing and strategic pricing.
2.3 National Trust
National Trust stated that not only does the price which includes entrance to sites, membership fees, sales in shops and online have to cover the cost but it also has to remain competitive. This price needs to illustrate how worthwhile it is with the intention to attract more and more visitors and keep existing members.
2.4 Comparison
It seems that pricing strategies of NIVEA and JD focus on how to remain their prices competitive against other companies in their industries. However, National Trust’s main method is not only to cover the cost but also to keep the price competitive.
3. Place strategy analysis
3.1 NIVEA
According to NIVEA (n.d), they would take advantage of many appropriate channels to assure that its products will reach its aim market. One of the main distributions is retail outlets where customers desire to find skin care products. NIVEA claimed that approximately 65% of NIVEA VISAGE ranges are sold in high streets stores such as Superdrug. On the other hand, NIVEA also claimed that 35% of its sales primarily comes from large supermarket chains such as Sainsbury’s and ASDA. Moreover, some retailers sell NIVEA’s products online, for example, Tesco.
3.2 JD
According to JD (n.d), the firm opts to distribute its products in various places such as the high street, rural locations and shopping malls. Appropriate areas could maximize sales, limit the costs and as a result, maximize profits. In addition, JD suggested that there is an increase in using the internet to do online shopping so that the business also invested in e-commerce rather than focusing on conventional ways of shopping.
3.3 National Trust
It seems that the organization follow the distribution strategy as many others, it uses the internet. The organization claimed that people can pay for memberships online. Furthermore, National Trust suggested that its website has an online store so that many people can purchase presents, cards, hand-made and even ‘practical’ gifts.
3.4 Comparison
It is clear that the distribution plan of three businesses is different from each other. It appears that NIVEA and JD choose areas that are convenient for the majority of their consumers in order to display companies’ products. Besides, National Trust takes advantage of the internet to gain people’s attention.
4. Promotion strategy analysis
4.1 NIVEA
It can be seen that NIVEA VISAGE YOUNG chooses its promotion as below-the-line. According to NIVEA (n.d), the company uses three methods to advertise its products. First, it is the use of product samples which allow the consumers to have a real experience. Second, NIVEA published an online magazine known as FYI (Fun, Young & Independent) so as to raise people’s awareness about the trademark. Finally, NIVEA uses the power of social network websites such as Facebook for young audiences.
4.2 JD
As can be seen, its promotion strategy is a combination of above-the-line and below-the-line promotions. In terms of above-the-line promotions, it appears that JD not only pays for advertising in press and uses TV/radio advertising but also chooses product placement. As can be seen, JD has done various activities regarding below-the-line promotion. Firstly, JD stated that the company uses emails, magazines and leaflets in order to present product and lifestyle content. Secondly, there are some activities with celebrities such as sales incentives, sponsorship and product endorsement. Thirdly, the enterprise uses impressive photography and point-of-sale materials in shops and window displays. Finally, with the development of many social networks such as Facebook, JD could use those to take advantage of customer recommendations.
4.3 National Trust
According to National Trust (n.d), the organization use both above-the-line promotion and below-the-line one. It appears that the organization uses radio and places commercials in magazines and press which are related to its different customer. Moreover, National Trust claimed that an integrated promotion campaign is its new strategy which the organization wants to achieve. Finally, National Trust also stated that it uses social media in order to ensure the ‘shareability’ of its messages to the customers.
4.4 Comparison
As can be seen, NIVEA opts for only below-the-line promotion to bring the product to the consumers. In contrast, JD and National Trust use two different promotional ways which are directly paying for the media (above-the-line) and using indirect promotional methods (below-the-line) to persuade customers to buy products.
5. Conclusion
This report has already highlighted the differences between NIVEA, JD and National Trust. Although three companies have their own ways to do business, there are some similarities in terms of pricing, place and promotion strategies. All three companies are likely to use effectively the marketing mix concept regarding three main elements so as to achieve their marketing objectives. Each firm has its own plan to meet their demand and satisfy their customers.
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