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Brandix Marketing Mix (Report)

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MARKETING MANAGEMENT

Group Assignment (Group No. 09)

BRANDIX

Group 09 |HNDA 2203 | Marketing Management| Higher National Diploma in Accountancy|


SLIATE
OCTOBER 20, 2021

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Coursework submission form: Group Assignment Group No. 09

Student Signature
Registration Number
Names

N.G.D.I.P.
KEG/AC/2019/F/0054
Kularathne

K.T.L.
KEG/AC/2019/F/0010
Pathirana

K.A. Lakmali KEG/AC/2019/F/0053

P.R.A.P.
KEG/AC/2019/F/0005
Karunathilaka

D.P.K.N.
Bandara KEG/AC/2019/F/0001

D.P.G.K.S.
KEG/AC/2019/F/0002
Senavirathne

Assignment Select a brand available in the local market (Local or International brand)
Brief and study existing marketing strategies used to market the selected brand.

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Year of Study Year 2 Semester 2
and semester
Course Name Higher National
Diploma in
Accountancy

Module Code HNDA 2203

Module Title Marketing


Management

Lecture Mr. A.J. Madushan


Conductor Priyadarshana

Date Wednesday, October


Submitted 20th, 2021

Date
Received
Marks

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Objectives of this report
General Objective
Examining the existing marketing mix of Brandix Lanka Limited and their marketing
strategies.

Specific Objectives
 Studying what 4P’s are
 Studying the marketing strategies taken by Brandix within the company and within
their manufacturing process.
 To determine better ways that Brandix need to be improved to make the brand more
competitive in the local market.

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Acknowledgement

We would like to express our sincere gratitude to Mr. Ruwan Kumara (GM of Operations in
Brandix), and Mr. Madushan (APM at Brandix) for their support and cooperation for getting
information.

Secondly we would like to thank the lecturer in charge of Marketing Management, Mr.
Madushan Priyadarshan, for giving us this topic and for the explanations and information he
provided.

Lastly we would like to show our sincerer gratitude to the group members, who were very
supportive in preparing this report and also it is our courtesy to give the disclaimer for all the
information we adopted from related websites and articles for making this report.

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Table of Contents

Objectives of this report ....................................................................................................... 4


Acknowledgement................................................................................................................ 5
Introduction to Brandix ........................................................................................................ 7
Marketing Mix (4p’s) ............................................................................................................ 8
BRANDIX’s Marketing Mix Analysis ...................................................................................... 9
Analysis of Product strategies ........................................................................................... 9
Analysis of Price Strategies ............................................................................................. 12
Analysis of Place strategies ............................................................................................. 13
Analysis of Promotion Strategies .................................................................................... 16
Identification of the Lacking Areas with Justifications ....................................................... 19
Recommendations.............................................................................................................. 20
References .......................................................................................................................... 22

Table of Figures
Figure 1 Marketing Mix (4P's) and it's Elements .................................................................... 8
Figure 2 Manufacturing clothing brands .............................................................................. 10
Figure 3 Types of Products that Manufacturing ................................................................... 10
Figure 4 Brandix Supply Chain Network ............................................................................... 14

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Introduction to Brandix
Brandix is one of the most renowned apparel manufactures in the world that manufactures
clothing for Victoria’s secret, Gap, Mark & Spencer, Etc. It is one of the leading apparel firms
in Sri Lanka along with MAS holdings. According to stats Brandix is currently Occupying more
than 60000 employees (Anon., 2018) over 42 locations around the country and which
generates over $750 million revenue annually. But none of this was achieved overnight. It
took years of dedication and commitment of all the stakeholders to make what Brandix today
is. The story of the Brandix started in 1972 (Anon., 2021) . Since then Brandix has acquired
series of companies, joint venture agreements, partnerships and other business integrations
to expand their operations.

Brandix mainly produces casual bottoms, intimate and sport wear, fabrics and other apparel
accessories such as threads, hangers, buttons, give them the cost and competitive advantage
over the competitors. Having advanced technology, up to date research and development
courses, consistent quality controlling, helps to produce world class products to the end
consumer.

Vision

“To be the inspired solution for branded clothing”

Mission

 TO LEAD - in being responsible corporate citizens. Not because we are


convinced that it is a good way of doing business, but because we believe it is
the right way of doing business.

 TO STRIVE - to make a meaningful difference everywhere we do business. TO


LISTEN and RESPOND to environment challenges that affect our society and
our planet.

 TO INSPIRE- people to work towards protecting and improving water access


and availability in our communities.

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Marketing Mix (4p’s)
The marketing mix is a strategy that a company uses to promote one of its products or services
in the market. The four main elements of a marketing mix are product, promotion, place, and
price.

“Marketing Mix is the set of controllable, tactical marketing tools that the firm blends to
produce the response it wants in the target market. The marketing mix consists of
everything the firm can do to influence the demand for its product. “(Philip Kotler, 12th
Edition)

A product is any kind of thing that can be offered to a specific market for attention,
acquisition, or consumption. The product must perform well in order to be considered a
success. This is the only thing that matters if the other elements of the marketing mix are not
working.

Price is the amount of money customers has to pay to obtain the product, or the sum of the
values that consumers exchange for the benefits of having or using the product.

Place includes all activities in order to make the product available to target customers in the
‘right place’ and at the ‘right time’.

Promotion is the means by which an organization attempts to inform, persuade, and remind
consumers- directly or indirectly – about the products they sell.

Figure 1 Marketing Mix (4P's) and it's Elements

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BRANDIX’s Marketing Mix Analysis
Analysis of Product strategies
A good product or service can be created to meet a specific need or demand. It can be
compelling enough to motivate consumers to buy it. There is balance between the resources
used by Brandix and the product that they offer to society. So we can be sure that their
existence is suitable. Their quest to become the most successful sustainable apparel
manufacturer in South Asia is also successful. To that end Brandix company adopts robust
production strategies.

1. Apparel Manufacture
With nearly 50 years of experience, Brandix has been able to provide solutions to
brand around the world. Their products reflect the identification of their organization.
Phenomenal products, faster than anyone, flawless execution, optimal pricing and
intimate service, these are the values that define what makes them different from
everyone else in in sector. They are the reason why Brandix deliver the best products
and services at the most competitive prices.

2. Types of product
Brandix company offers a wide range of cognitively designed apparel products.
Without having a one product Brandix is manufacturing a wide range of apparel
products. From that they gained their advantage in the market.
 Sportswear such as leggings, sports bras
 Active wear including t-shirts and shorts
 Intimate wear
 Sleep and lounge wear
These categories include the designs you need to come up with at any point in your
life cycle from the earliest stages. Brandix mainly produces casual bottoms, intimate
and sport wear, fabrics and other apparel accessories such as threads, hangers,
buttons, give them the cost and competitive advantage over the competitors. Having
advanced technology, up to date research and development courses, consistent
quality controlling, helps to produce world class products to the end consumer.
Brandix is one of the most renowned apparel manufactures in the world that

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manufactures clothing for Victoria’s secret, Gap, Mark & Spencer, Nike Etc. producing
world class clothing brands they have becoming their target to become the largest

Figure 3 Types of Products that Manufacturing

Figure 2 Manufacturing clothing brands

apparel manufacturer in South Asia.

3. Apparel Supply Chain


Following a supply chain of apparel suppliers, contractors, sellers and service
providers around the world Brandix offers the right products at the right quality, at
the right time, at the right price in the right quantities. Brandix company obtains
suppliers of high quality raw materials to present high quality products. Accordingly,
those supplies extend to a supply chain.
They believe that a complete integrated supply can be expected when that supply
chain is carried on successfully and efficiently.

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 The strategic partners of Brandix (Pioneer, OCEAN LANKA, Sri Lanka best
PACIFIC)
 This is where these suppliers are selected, (Operational Excellence, Cost
effectiveness, Law compliance, Ethical behavior)
 Vendors have five rights to this supply chain,
1) Right quality
2) Right price
3) Right Source
4) Right time
5) Right quantity
Though this process, Brandix can sustain itself by presenting their product items within
this ethical framework. These products are in export quality so from first to end they
follow high quality steps even the packaging.

4. Product develop and innovation


Brandix company that the product it delivers to its customers and the ideas they
express are essential to the innovation of the solutions they obtain from them. It
allows innovators to come up with new ideas and new designs.
 Inqube
Inqube is a process of bringing forward ideas for the next generation of
clothing. The Inqube consists of a team of professionals with an in-depth
knowledge of active close-ups and technical apparel categories. It seeks to
develop world-class scalable designs. The Inqube focuses on a strong market
for presenting innovations. It provides solutions to the problems of the
customers.

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Analysis of Price Strategies

When selling a product or service, a company can employ a range of pricing tactics. Senior
executives must first determine the company’s pricing position, pricing segment, pricing
capability and competitive pricing reaction strategy before determining the most effective
pricing strategy.

Pricing methods

The pricing methods are the methods for calculating the price of goods and services by taking
in to account all of the aspects that influence the pricing strategy as a whole, such as the
product or service, completion, target, audience, product life cycle, expansion, vison etc.

Cost based pricing

Under a cost-based pricing method, Brandix can figure out how much it costs to make a
product and then add a markup based on the profit it wants to make. The strategy may not
be feasible in a highly competitive strategy with changeable pricing.

Market penetration pricing method

Brandix can use this pricing strategies to obtain a footing in the segment by launching a new
product at a loss or with a very low margin.

Market skimming pricing

Brandix may raise pricing for certain well-known brands if customers are willing to pay a
higher price.

Pricing depending on competition

The pricing strategy is determined by market competition. Brandix's aim under this strategy
is to match competitors’ prices and focus on lowering operational costs to boost profitability.

Price adjustment strategies

International pricing

Brandix is exporting their products. They mainly produce them for foreign countries like USA.
They price their products according to the country.

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Analysis of Place strategies
Place (Distribution) Strategy is one of the elements of the marketing mix (4P S). Place Strategy
is the process of spread their products or service throughout the market place such that a
large number of people can buy it. The place strategy determines where and how their
business will place their products and services so that major market share and customers are
attracted.

Using the right place allows a company to increase their sales and maintain these for a longer
period of time. On the other hand, means to a longer share of the market and an increase in
revenue and profit. Accurate positioning is an essential activity and the focus Is on reaching
the right audience on time. It focuses on where the business is located, where the target
market is located, how the two can be linked, how to store goods in the meantime, and
ultimately how to transport them. The “Brandix Company” export their product for the
foreign countries. With their vertically integrated supply chain, expanding global network of
manufacturing and operating location, an inspired employee base and infrastructure have
helped they deliver millions of garments to the customers.

Distribution Channel

A distribution channel is chain business an intermediary that move until a product or service
reaches the final buyer or end consumer. The main purpose of these channels is to deliver
goods to the end customers in the sales outlets as soon as possible.

Direct and Indirect Channels

Channels are divided into two different forms. One is Direct. Another one is indirect channels.
A direct channel is allowing the consumer to make purchases from the manufacturer, while
an indirect channel allows the customer to purchase goods from a wholesaler. Indirect
channels are common for goods sold traditional brick and mortar stores.

The price of good things can go up if there are more intermediaries involved in the distribution
channel in general. On the other hand, buying direct from a manufacturer through an or direct
channel or short channel may mean lower cost to the consumer. The company of the Brandix
are using Direct distribution channel for spread their products.

The company of the Brandix Apparel is using the following distribution channels

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Producer Export Agent Wholesaler Retailer

Consumer

Agent

An intermediary who has the power to work principal to facilitate the exchange. Unlike
wholesalers and retailers, dealers bring buyers and sellers together without taking ownership
of the goods. Agents are usually paid a commission by the principal.

Wholesaler

Mainly for retailers, other retailers or industrial, corporate and commercial users, mainly
resale or commercial intermediaries. Brandix Company using the B 2 B.

Retailer

A trading intermediary that sells directly to the public. There are many types of stores from
hypermarkets and supermarkets to small independent stores. The transactions in the case
are B 2 B. (From business to consumer)

Brandix Supply chain network

Figure 4 Brandix Supply Chain Network

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Brandix Supply Chain Management Functions

Transportation Management System

Brandix Supply Chain Management Functions Transportation Management System Frequent


exchanges of information and ideas between different parties within and outside the
company in the transportation service. Some foreign countries in particular are also involved.
To support the use of Brandix’s fully functional transportation management system, a shared
information system must provide the key elements, transactions kits, documents, and
support to support and create inter- corporate common- level commercials such as pricing,
routes, roles, and contracts. Extensive and diverse interactions should be support to facilitate
the booking, activations, data format and data dictionary of exchanged information in TMS.
The combination of these robust system infrastructure and collaborative applications enables
the user to perform all the functions required t design, execute, and analyze transportation.

The RITE Partners

A strong supply chain network of apparel and apparel suppliers, contractors, retailers,
resellers and service providers around the world is needed for the Brandix promise of inspired
solution that it will continue to deliver the right quality from the right source. At the right
time, in the right source. At the right time, in the right quantity and at the right price.

Role of Distribution Channels in Business

The goal of any business is to bring their product or service to market and create a distribution
line r channel and deliver it to customers. The relationship between manufactures and the
end customer is usually intermediaries such as wholesalers, retailers or brokers.
Intermediaries can be natural people or business. Distribution channel affect the prices of
goods and their placement in each market.

Delivery should be arranged in such a way as to limit the number of stops before the product
or services reaches the final customer. A distribution channel must be efficient and effective.
This means that transportation and other supply needs should be used at maximum capacity
and at the lowest possible.

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Analysis of Promotion Strategies

Promotion is the process of any types of marketing communication used to inform targets
audience of relative merits of product service or brand name. It helps to marketers to create
a special place in customer’s mind, it can be either an emotional route. The aim of the
promotion increase people awareness, create band loyalty, attract and induce to buy the any
product. Promotion is also one element from marketing mix.

Purpose;

There are three objectives of promotion. There are,

1. To present information to consumer and others


2. To increase demand
3. To differentiate a product

Promotion Channels

Promotion channel is the method or format for the placement of the company advertising
including internet advertising. The purpose of the promotional channel is to create a
connection between the organization that create a product or service and prospective
customer who may want to purchase it.

Following concepts of promotional channels can be practically deployed to brand name


“BRANDIX”

Public
Relation
Digital
Sponsorship
Advertising

Social Promotional Offline


Media Channels Promotion

Email Content
Marketing Marketing

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Social Media Marketing

Social media marketing is one of the most suitable promotional channel which may apply to
Brandix apparel limited to promote their brand name. Facebook is the most popular social
network, with over 2 billion peoples. Brandix also has their own FB page to promote product
and services.

Further, they use YouTube channels, Instagram and their own groups for their promotion
activities. They provide their updates from advertisement like about innovational fashion
designs, opening new branches, new recruitments. It attracts employees to its organization
and also attracts customer through social media marketing.

1. Increase their brand awareness


2. Humanize their brand
3. Establish their brand as although leader
4. Stay top of mind

Online Marketing

Online marketing is the process of advertising any kind of good or service to potential
consumer via digital strategies.

Brandix apparel limited using their own website to spread their information through all over
the world. They share what they do, what does Brandix manufactures for, their facilities, who
they age, how many factories they have, their objectives, what they can do, what did they do
for covid-19 pandemic. They share their own activities to attract their business and improve
their customer base. Also they share job advertisement in them to get decision for
stakeholders.

E-mail Marketing

Is the act of sending a commercial message, typically to a group of people using E-mail. They
use email to send advertisements, request business or solicit sales and donation.

If someone went to clarify information regarding product recruitments, they can send emails
to relevant personal and they can clarify their issues. Relevant personal reply to their emails
and sometimes automatics system general replies also they use.

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Public Relations

The company of Brandix focuses strategic communication management in marketing that


develop better relationship between their company and their export foreign countries.

They maintain a good brand image and a stronger relationship with export countries. They
spread their own story to public and build Brandix company credibility among foreign
countries. Marketing communication build good and bad perception of their corporate
images. They mention their brand name promoting their business without striving to keep
their brand image clean and safe, they won’t achieve market communication to be success.
Apart from that with giving attractive benefits to employees they have built their image in
society as a good one.

Offline Promotion

Offline promotion refers to any advertising that is carried out using traditional offline.
Examples are media, such as television, bill board advertisement, newspaper advertisement.

Brandix also adopt billboard advertisement and newspaper advertisement. They mention
marketing concepts. Especially Brandix convincing the salaries and wages of those who
engaged in apparel industry to attract employee the company.

Content Marketing

Content marketing is all about producing information and interesting material that helps to
target audience to solve their problems while positioning themselves as an authority. Brandix
website use to make weekly updates to Brandix blog or distributed through their other
channels. The Brandix company shares promotional videos through platforms like You Tube
are also a possible means of promoting Brandix brand.

Sponsorship

The Brandix apparel limited sponsor for the Olympic squad team presenting partner for the
Tokyo 2020 Olympics. Also 2017 according to the collaborative agreement, Brandix sponsor
with their opportunity of showcasing their robot design talent. Not only that they sponsor
2015 national occupational safety and health (OSH) week.

They spread their brand name by sponsoring.

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Benefits of the Promotion Strategy.

These are the key benefits of a promotion strategy;

 Targeting the right audience.


 Gain brand awareness.
 Publish their promotion at the best time.
 Increase qualified customer traffic.
 Engage with their target audience.
 Create customer relationship.
 Grow sales and profit.
 Build their reputation.

Identification of the Lacking Areas with Justifications


 Geographical location of the country
Sri Lanka is located at the edge of the Indian Ocean compared to other competitive
apparel exporters to the United States, the European Union and other rich nations.
Almost all countries geographically close to Sri Lanka are developing and low income
countries struggle to survive.
 Global Competition
Global competitiveness is becoming more likely. With innovation, new businesses are
emerging. If Brandix wants to stay in industry, it must focus on innovation to stay
ahead of the competition.
 Strong Competitors in apparel firm
As an apparel industry “Brandix” is not only one who is producing and exporting
apparel products. For instance, “Mas Intimates Private Ltd”, “Hirdaramani
international exports Private Ltd”. Brandix is mostly produce their products for
exporting. When it comes to local apparel production, contribution of Brandix is small.
It is a big opportunity that they have missed.

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 High employee turnover rate
In 15th October, 2020, the most recent bunch of COVID 19 in the face of the covid 19
pandemic in Sri Lanka was reported from a Brandix garment factory. 1036 employees
and 361 of their closet contracts were reported (Anon., 2020). They were initially told
to keep working to meet targets when they reported the symptoms. Because of having
a large employee, this situation went bad.
 Limited resources like funds availability for expansion since it was a private sector
 Government policies
Brandix had to limit their workers because of this Covid situations and the government
regulations.

Recommendations
Due to above lacking areas seen in the Brandix marketing environment, the following
recommendations are suggested;

 More safety measures for the labourers


Brandix has obtained OHAS certificate for their best employee practices (Limited, 2017).
When it comes to providing allowances and taking care of the employees Brandix places
themselves in a very high position. But we would like to recommend providing more safety
measures to the machine operators such as providing rubber gloves, recommended glasses
for laser machine operators for further protection. Also for product line labourers.

 Conducting marketing knowledge campaigns for employees


In most companies only the executive level has any knowledge of marketing management
which is why we recommend that it would be better if Brandix could educate their operators
on what proper marketing is to better performance in the future. Employees will be
encouraged. And will be effective.

 More involving to the local market


With the quality of foreign apparel exports, Brandix can produce their products to the
local market. It will also give a big advantage to them when facing the competiveness.

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With having a creative STP approach Brandix can be successful in local market as a
brand.
 New innovative products
In the current market, the product is considered as innovative because of its advanced
features. A little price would not only highlight the benefits of the products, but it will
also prevent other companies from entering the market. A high premium price may
attract new competitors, lowering profit margins.
 With the high brand awareness of Brandix, may either add a new brand to a current
product range or create a completely new product line.

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References
Anon., 2018. Brandix & CINEC launch BCCE: a new facility to enhance employee training. [Online]
Available at: https://www.ft.lk/hr/Brandix---CINEC-launch-BCCE--a-new-facility-to-enhance-
employee-training/47-659981
[Accessed 12 September 2021].

Anon., 2020. Sri Lanka: Quarter of country’s COVID cases linked to Brandix factory after symptomatic
workers told to keep working. [Online]
Available at: https://www.business-humanrights.org/en/latest-news/sri-lanka-a-quarter-of-the-
countrys-covid-19-cases-originate-from-brandix-garment-factory-after-workers-told-to-keep-
working-despite-reported-symptoms/
[Accessed 10 October 2021].

Anon., 2021. Brandix. [Online]


Available at: https://en.wikipedia.org/wiki/Brandix#cite_note-4
[Accessed 12 September 2021].

Anon., 2021. Definition of 'Marketing Mix. [Online]


Available at: https://economictimes.indiatimes.com/definition/marketing-mix
[Accessed 20 Sepetember 2021].

Anon., 2021. Marketing Channel. [Online]


Available at: https://directiveconsulting.com/resources/glossary/marketing-channel/
[Accessed 11 October 2021].

Brandix Lanka Limited, 2017. brandix.com. [Online]


Available at: http://www.brandix.com/brandix/index.php
[Accessed 6 December 2017].

Limited, B. L., 2017. Brandix Lanka Limited Sustainability Repor t 2015 - 2017, Colombo: Brandix
Lanka Limited.

Moran, K., 2021. Digital Marketing in Business: 8 Channels of Promotion and Their Advantages.
[Online]
Available at: https://www.noomii.com/coach-blog/digital-marketing-in-business-8-channels-of-
promotion-and-their-advantages
[Accessed 13 October 2021].

Trillo, C., 2021. PROMOTION STRATEGY: HOW TO PROMOTE YOUR BUSINESS [2021]. [Online]
Available at: https://www.evinex.com/promotion-strategy/
[Accessed 13 October 2021].

Twin, A., 2021. The 4 Ps. [Online]


Available at: https://www.investopedia.com/terms/f/four-ps.asp
[Accessed 20 September 2021].

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