Marketing Mix Of LIC

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 LIC

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

Marketing Mix LIC is presented below:

2.1. Product

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

2.1.1. Quality

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

2.1.2. Ease of use

• The products manufactured and sold by LIC 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

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

2.1.4. Benefits of product consumption

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

2.2. Price

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

2.2.2. Psychological pricing

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

2.2.3. Geographical pricing

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

2.3. Placement

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

2.3.2. Licensed stores

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

2.3.3. E-commerce

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

2.3.4. Supermarkets and hypermarkets

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

2.3.5. Partner agents

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

2.4.1. Digital marketing

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

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

2.4.3. Community Influencers

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

2.5. People

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

2.5.1. Training

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

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

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

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

2.6. Process

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

2.6.1. Operations

• All operations at LIC are clearly defined and communicated to the employees
• LIC 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 LIC

2.6.2. People Management

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

2.6.3. Quality maintenance

• LIC 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

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

2.7.1. Store atmosphere

• The store design and management for LIC 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 LIC at ease
• The store design is also important for LIC 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 LIC 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

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

2.7.3. Website design

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