Marketing Mix Of Grupo Pao de Acucar

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 Grupo Pao de Acucar

Grupo Pao de Acucar makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix Grupo Pao de Acucar is presented below:

2.1. Product

Product is one of the most important components of the Grupo Pao de Acucar Marketing mix. The distinctive characteristics of the product by Grupo Pao de Acucar are:

2.1.1. Quality

• Grupo Pao de Acucar maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• Grupo Pao de Acucar 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 Grupo Pao de Acucar with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by Grupo Pao de Acucar 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

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

2.1.4. Benefits of product consumption

• Grupo Pao de Acucar 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 Grupo Pao de Acucar is its delivery of emotional benefits to the consumer
• Products manufactured and sold by Grupo Pao de Acucar promise consumers an ego boost, confidence, and security
• Grupo Pao de Acucar 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 Grupo Pao de Acucar are available in different sizes
• Grupo Pao de Acucar 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, Grupo Pao de Acucar has also increased the trial rate
• Different SKUs have also helped Grupo Pao de Acucar improve its product accessibility

2.2. Price

Grupo Pao de Acucar marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix Grupo Pao de Acucar 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, Grupo Pao de Acucar encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of Grupo Pao de Acucar products amongst consumers
• With premium prices, Grupo Pao de Acucar 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 Grupo Pao de Acucar products
• Using elements of premium prices in other product ranges has also allowed Grupo Pao de Acucar to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

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

2.2.3. Geographical pricing

• Grupo Pao de Acucar is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows Grupo Pao de Acucar to cover shipping and customs expenses
• Geographical pricing also allows Grupo Pao de Acucar 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, Grupo Pao de Acucar is also known to use bundle pricing strategy popularly
• Grupo Pao de Acucar also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• Grupo Pao de Acucar experiences higher return on the cost of gaining a new customer
• With bundle pricing, Grupo Pao de Acucar 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 Grupo Pao de Acucar.

2.3. Placement

Grupo Pao de Acucar 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 Grupo Pao de Acucar in all markets
• Company-operated stores give Grupo Pao de Acucar higher control over operations as well as store layout and design
• Grupo Pao de Acucar 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 Grupo Pao de Acucar in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• Grupo Pao de Acucar 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 Grupo Pao de Acucar in unstable markets
• Licensed stores have also given Grupo Pao de Acucar high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, Grupo Pao de Acucar has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by Grupo Pao de Acucar by aligning it with local cultural values
• Licensed stores also help Grupo Pao de Acucar in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• Grupo Pao de Acucar has developed a successfully operational website for online order placement and order tracking
• Grupo Pao de Acucar 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 Grupo Pao de Acucar and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

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

2.3.5. Partner agents

• In offshore locations, Grupo Pao de Acucar also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• Grupo Pao de Acucar 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 Grupo Pao de Acucar also places high importance on the promotional tactics and strategies used. The promotional strategies allow the Grupo Pao de Acucar to interact with the consumers and influence them directly. Grupo Pao de Acucar uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• Grupo Pao de Acucar has corporate profiles on all social media websites and portals
• Grupo Pao de Acucar uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Grupo Pao de Acucar to understand the customers, their needs and demands
• Grupo Pao de Acucar uses this feedback and incorporates it in its broader marketing and organizational strategy
• Grupo Pao de Acucar 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

• Grupo Pao de Acucar 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 Grupo Pao de Acucar and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by Grupo Pao de Acucar on high valued purchases
• Frequent usage and purchase of products by Grupo Pao de Acucar also has rewards against the loyalty card

2.4.3. Community Influencers

• Grupo Pao de Acucar makes use of community influencers as its on-ground promotional efforts
• Grupo Pao de Acucar identifies strong and confident individuals to be brand ambassadors in their communities
• Grupo Pao de Acucar 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, Grupo Pao de Acucar also makes use of out of house hoardings
• Hoardings increase visibility for Grupo Pao de Acucar and also work towards building stronger brand recall
• Grupo Pao de Acucar also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Grupo Pao de Acucar have progressed to include a slice of life elements and characteristics
• TV advertisements by Grupo Pao de Acucar also highlight the functional benefits of the product

2.5. People

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

2.5.1. Training

• Grupo Pao de Acucar makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at Grupo Pao de Acucar are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at Grupo Pao de Acucar also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by Grupo Pao de Acucar take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• Grupo Pao de Acucar, 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

• Grupo Pao de Acucar works on strengthening the organizational commitment in its employees
• Grupo Pao de Acucar builds employee loyalty so that people can reflect their optimal best at work
• Grupo Pao de Acucar also understands that satisfied employees will lead to happy and satisfied customers
• Grupo Pao de Acucar regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• Grupo Pao de Acucar 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

• Grupo Pao de Acucar employees are the face of the organization
• Grupo Pao de Acucar are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that Grupo Pao de Acucar 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

• Grupo Pao de Acucar remains one of the leading players in the industry also because of its focus on succession planning
• Grupo Pao de Acucar 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 Grupo Pao de Acucar
• Strategic succession planning has allowed Grupo Pao de Acucar to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

Grupo Pao de Acucar has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at Grupo Pao de Acucar are clearly defined and communicated to the employees
• Grupo Pao de Acucar 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 Grupo Pao de Acucar

2.6.2. People Management

• Grupo Pao de Acucar has also defined clear processes for people management through streamlining its human resource management department
• Grupo Pao de Acucar 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 Grupo Pao de Acucar to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• Grupo Pao de Acucar 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

• Grupo Pao de Acucar 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 Grupo Pao de Acucar 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 Grupo Pao de Acucar as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for Grupo Pao de Acucar include:

2.7.1. Store atmosphere

• The store design and management for Grupo Pao de Acucar 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 Grupo Pao de Acucar at ease
• The store design is also important for Grupo Pao de Acucar 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 Grupo Pao de Acucar 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

• Grupo Pao de Acucar has unique packaging, which is different from other players in the industry
• Grupo Pao de Acucar 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 Grupo Pao de Acucar
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by Grupo Pao de Acucar

2.7.3. Website design

• The website design is simple and easy to use
• Grupo Pao de Acucar has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of Grupo Pao de Acucar 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