10-08-2013, 04:50 PM
EFFECTIVENESS OF MARKETING STRATEGIES ADOPTED BY KERALA SIDCO LTD
MARKETING STRATEGIES .docx (Size: 364.49 KB / Downloads: 41)
INTRODUCTION
Kerala SIDCO an undertaking of Government of Kerala apart from its activities for development of small scale industries in the state runs production units engaged in the manufacture of wooden, steel, hospital furniture, computer furniture, laboratory equipments, aluminum fabrication of any design. Also marketing products manufactured by SSI units in the state under our Marketing scheme. Marketing division of SIDCO provides assistance to small scale units in canvassing orders from government departments and public sectors undertaking by way of contract marketing and tender marketing. There are seven sales emporia and seven marketing centers all over Kerala. SIDCO participates in Exhibitions and trade fairs on behalf of SSI sectors for the promotion of their products. Steps are in progress to market SSI products in food, plastic, leather, rubber, electrical in addition to wood/steel/hospital furniture and laboratory equipments. In the light of government orders from time to time SIDCO can supply various furniture to government departments without participating in tender (govt. order annexed)
SIDCO mainly focusing on direct marketing, that means canvas orders from the government institutions and offices by the marketing executives then give orders to the small scale industries and collect products from the SSI units and sell the products to the institutions form where the orders has been canvassed. SIDCO mainly marketing the products to the government institutions rather than the private institutions. The main customers of SIDCO are the government institutions and offices.
BACKGROUND OF THE PROBLEM
This particular study identified its topic of project as “EFFECTIVENESS OF MARKETING STRATEGIES ADOPTED BY KERALA SIDCO LTD”. To understand marketing effectiveness we have to become a lot better at measuring marketing. Most market measurements or market metrics measure values.
These values might be awareness or brand strength, but how do these values relate back to actual purchasing and decision making by consumers and how do you optimize the amount you spend on marketing to get the best return? To start to make these types of measurement you need to carry out stimulus-response type measurements. These can be techniques such as conjoint analysis prior to market launch, or test and control or fractional factorial design experiments after market launch. For much of this type of work we need to know far better how marketing works. Traditional models such as Awareness-Interest-Desire-Action don't work well enough, or fails to capture enough of the reality of decision-making. Our pattern-cascade model fits far better with the idea of stimulus-response and leads into research and measurement techniques that look at how and what decisions are made and the patterns that consumers link to their purchases which we explore using techniques like our sensory-emotion process.
STRATEGY FORMULATION
SWOT analysis
This method provides a method for organizing information to identify strategies direction. The basic principle is that any statement about an organization or its environment can be classified as a strength, weakness, opportunity or threat. An opportunity is simply any feature of the external environment which creates conditions which are advantageous to the firm in relation to a particular objective or set of objectives. By contrast, a threat is any environmental development which will present problems and may hinder the achievement of organizational objectives. What constitutes an opportunity to some firms will almost invariably constitute a threat to others.
Competitive strategies
Management must identify the way in which it will compete with other organizations and what it perceives as the basis of its competitive advantage. The American strategist Michael Porter argues that the strategy adopted by a firm is essentially a method for creating and sustaining a profitable position in a particular market environment. Profit depends first on the nature of its strategy and second on the inherent profitability of the industry in which it operates. An organization in a basically profitable industry can perform badly with an unsuitable strategy while an organization in an unprofitable industry may perform well with a more suitable strategy.
Product development
This approach requires the organization to develop modified versions of its existing products which can appeal existing markets. By tailoring the products more specifically to the needs of some existing consumers and some new consumers, the organization can strengthen its competitive position. Veet the hair removal brand developed an ‘in shower’ version to appeal to existing consumers who may be more satisfied with the product if they could use it this way but also to appeal to new consumers who may usually shave their legs in the shower due to time pressures etc.
Diversification
Diversification (new products, new market) is a much more risky strategy because the organization moving into areas in which it has little or no experience. Instances of pure diversification are rare and its use as a strategic option tends to be in cases when there are no other possible routes for growth available. Caterpillar the plant machinery manufacturer successfully moved into the footwear and clothing market. The move was possible because the brand represented high quality, durability and dependable. These qualities were also sought by workers using the heavy plant equipment in their work wear and as they trusted the brand the clothing was also successful.
SMALL SCALE INDUSTRY
The prospect of development in the sector of small businesses has importance because of its beneficial impact on the industrial economy of the world. In developing economies entrepreneurship in small scale industries has special importance in context to employment potential, equitable distribution of wealth, balanced regional development and growth and above all, the preservation and development of ancient culture, art and craft.
In India the “size of business criterion” is used as a base of defining small scale business units. The definition of the small business in India has changed over years. During the year 1991, the Government of India has defined Small Scale Industrial Unit (SSI) as “a unit or an undertaking having an investment in plant and machinery of not more than Rs. 60 lakhs and not more than Rs. 75 lakhs in case of ancillary units.” Small scale industries, thus, occupy a prominent position in the development agenda of our country. This is because of their perceived importance in enhancing forward and backward linkages throughout the economically diverse sectors of the economy and their potential in generating employment and incomes.
Services rendered by taluk industries offices:
The services rendered by the taluk industries offices are to grant provisional registration to small scale industrial units, to help them in their coordination and development etc. these office keep the entrepreneurs of small scale industries well informed about the incentives and assistance offered to them by the government. They also recommend the names of small scale units which deserve to get incentives and assistance, to the respective District Industry Office. They also help in promoting new industry units, and provide leadership in conducting various development schemes in the taluk level.
Bridge Finance
Bridge finance is an interim finance which commercial banks provide to entrepreneurs on a short term basis to enable them to tide over the delay in getting sanctioned term loans. In case the borrowing entrepreneurs delays in submitting the necessary document, the commercial banks and other financial institutions shall also delay in distributing sanctioned term loans.
CONCLUSION
Data collection was done using questionnaires which were distributed to about 50 customers in Thiruvananthapuram district. Percentage analysis was done for interpreting results. Interpretations indicate that the marketing strategy of SIDCO is ineffective as it is not having any influence among the customers. SIDCO is not advertising in TV’s and most of the advertising is done through newspapers. Moreover, the company’s only way of marketing is direct marketing. Other marketing techniques are not even used by this company.
Even though majority of the customers have the opinion that the marketing strategies adopted by SIDCO are not influential and so it can be concluded from these results that the company’s marketing strategy is ineffective.