MGT301 Principles of Marketing Assignment No. 1 Close Date 19th November 2014

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MGT301 Principles of Marketing Assignment No. 1 Solution and Discussion Fall 2014


Topic: Understanding Marketing Mix.

Learning Outcomes:
After attempting this assignment, following outcomes are expected:
1. Students will be able to comprehend the process of marketing mix; specifically for brand
extension in existing brand portfolio.
2. It will widen student’s vision to tackle and formulate appropriate strategies for an industry that
is eager to extend its brand portfolio.
Background:
Habib Oil Mills (PVT) Ltd was incorporated in 1954-55 and initially established as an oil
expelling unit. HOM has strong financial background and has substantial infrastructure managed
by professional staff. It has recognized track record in this business and also has numerous plans
for targeted prosperous growth in future. HOM is eminently known as the largest FMCG
Company of Pakistan, it is exclusively renowned for its Vegetable Oil, Banaspati Ghee, Canola
Oil and other similar ranged products. HOM produces premium brand cooking oils and
hydrogenated cooking mediums not only has this but it also markets the products through its own
distribution networks, which covers almost all commercially possible markets countrywide.
The Case:
The marketing policy of HOM foresees development of brand loyalties among the target market
through their sustained involvement and participation in a series of several promotional activities
run by committed and highly professional staff and consultants. Being a market giant in Oil
sector, HOM has added a few other products in its brand portfolio. The new product variants are;
Habib recipe mixes, Habib ready to cook, Habib plain spices, Habib Curry king, Habib Mayo
meal, Habib Tomato ketchup, and Abeer Super Basmati Rice. With these brand extensions,
HOM has entered in direct competition with Shan Foods and National Foods that are
predominantly known as the prominent figures of the domestic and international market in the
product category of recipe mix, spices and ready to cook food ranges. Requirement:
Being a student of Principles of marketing, you are required to suggest a suitable marketing mix
for Habib Oil to compete magnificently with other market giants for this new brand extension.
Marking Scheme:
The total marks of this Assignment are 10; mention at least 5 points in detail to justify your
answer. Each point carries 02 marks; avoid irrelevant text/material while answering the question.

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What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.