Marketing Mix Of El Sistema

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for El Sistema

El Sistema makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix El Sistema is presented below:

2.1. Product

Product is one of the most important components of the El Sistema Marketing mix. The distinctive characteristics of the product by El Sistema are:

2.1.1. Quality

• El Sistema maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• El Sistema procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides El Sistema with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by El Sistema are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• El Sistema has a broad portfolio of products
• The broad portfolio helps El Sistema in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to El Sistema
• The broader product portfolio also adds more value for El Sistema

2.1.4. Benefits of product consumption

• El Sistema offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of El Sistema is its delivery of emotional benefits to the consumer
• Products manufactured and sold by El Sistema promise consumers an ego boost, confidence, and security
• El Sistema also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by El Sistema are available in different sizes
• El Sistema has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, El Sistema has also increased the trial rate
• Different SKUs have also helped El Sistema improve its product accessibility

2.2. Price

El Sistema marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix El Sistema uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, El Sistema encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of El Sistema products amongst consumers
• With premium prices, El Sistema has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in El Sistema products
• Using elements of premium prices in other product ranges has also allowed El Sistema to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since El Sistema has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, El Sistema also successfully adds more value to its products from the point of view of customers
• El Sistema also gains higher sales with psychological pricing
• Consumer purchase a higher amount of El Sistema products because of its use of psychological pricing
• El Sistema is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• El Sistema is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows El Sistema to cover shipping and customs expenses
• Geographical pricing also allows El Sistema to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, El Sistema is also known to use bundle pricing strategy popularly
• El Sistema also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• El Sistema experiences higher return on the cost of gaining a new customer
• With bundle pricing, El Sistema is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of El Sistema.

2.3. Placement

El Sistema places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of El Sistema in all markets
• Company-operated stores give El Sistema higher control over operations as well as store layout and design
• El Sistema also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to El Sistema in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• El Sistema licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for El Sistema in unstable markets
• Licensed stores have also given El Sistema high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, El Sistema has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by El Sistema by aligning it with local cultural values
• Licensed stores also help El Sistema in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• El Sistema has developed a successfully operational website for online order placement and order tracking
• El Sistema also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for El Sistema and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• El Sistema also places its products in supermarkets and hypermarkets across the country
• A large number of El Sistema target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for El Sistema

2.3.5. Partner agents

• In offshore locations, El Sistema also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• El Sistema contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for El Sistema also places high importance on the promotional tactics and strategies used. The promotional strategies allow the El Sistema to interact with the consumers and influence them directly. El Sistema uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• El Sistema has corporate profiles on all social media websites and portals
• El Sistema uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows El Sistema to understand the customers, their needs and demands
• El Sistema uses this feedback and incorporates it in its broader marketing and organizational strategy
• El Sistema also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• El Sistema has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by El Sistema and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by El Sistema on high valued purchases
• Frequent usage and purchase of products by El Sistema also has rewards against the loyalty card

2.4.3. Community Influencers

• El Sistema makes use of community influencers as its on-ground promotional efforts
• El Sistema identifies strong and confident individuals to be brand ambassadors in their communities
• El Sistema provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, El Sistema also makes use of out of house hoardings
• Hoardings increase visibility for El Sistema and also work towards building stronger brand recall
• El Sistema also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by El Sistema have progressed to include a slice of life elements and characteristics
• TV advertisements by El Sistema also highlight the functional benefits of the product

2.5. People

The marketing mix of El Sistema also places an essential focus on people development and people building. This is because El Sistema realizes the importance of employees in building strong customer relationships. El Sistema develops its employee and people by focusing on the following aspects:

2.5.1. Training

• El Sistema makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at El Sistema are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at El Sistema also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by El Sistema take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• El Sistema, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• El Sistema works on strengthening the organizational commitment in its employees
• El Sistema builds employee loyalty so that people can reflect their optimal best at work
• El Sistema also understands that satisfied employees will lead to happy and satisfied customers
• El Sistema regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• El Sistema also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• El Sistema employees are the face of the organization
• El Sistema are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that El Sistema distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• El Sistema remains one of the leading players in the industry also because of its focus on succession planning
• El Sistema conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at El Sistema
• Strategic succession planning has allowed El Sistema to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

El Sistema has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at El Sistema are clearly defined and communicated to the employees
• El Sistema makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at El Sistema

2.6.2. People Management

• El Sistema has also defined clear processes for people management through streamlining its human resource management department
• El Sistema has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed El Sistema to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• El Sistema also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• El Sistema manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for El Sistema for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for El Sistema as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for El Sistema include:

2.7.1. Store atmosphere

• The store design and management for El Sistema is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by El Sistema at ease
• The store design is also important for El Sistema because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for El Sistema to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• El Sistema has unique packaging, which is different from other players in the industry
• El Sistema also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by El Sistema
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by El Sistema

2.7.3. Website design

• The website design is simple and easy to use
• El Sistema has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of El Sistema also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings