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The Elephant House Business Strategy Essay

About Elephant House

The Elephant house is a Sri Lankan company which is run under the group of John Keels. The Elephant brand boasts of a rich heritage that not many others can compete with. Elephant house has sustained for over 140 years and it is a sub company of john keels group. The elephant has remained as one of the reflecting, quality, trust and value-for-money in Srilanka. Manufacturers,Exporters & Distributors of Elephant House Beverages presently includes Carbonated Soft Drinks,Caffeine based Beverages,Ice Creams,Frozen Desserts and Processed Meats.

RETAIL-Manage and Operate Chain of Supermarkets.

Elephant House plans to introduce New Ice ream for Kids and sugar free ice cream for adults. Explain suitable marketing mix strategy for above plan.

Market Segmentation : Demographic
Age: Kids / Adults

Ice Cream for Kids.

Product :
Kids usually like different kinds of flavors’ (chocolate, strawberry, mango, etc). Elephant house can produce these flavors for children.

Price :
For kids product we can use small packages, they not eating lot, but they always want. So mini package for small price is suitable.

Place :
We can sell it through mobile shop in school areas and hot climate areas. Though Supermarket chains / Shops also elephant house can distribute their products

Promotion :
Elephant house can sponsor for school events, sports meet and they can organize national level events for kids and they can promote their product through TV commercial / posters.

Ice Cream for Adults.

Product :
We can’t mixture flavours for this ice cream, this is totally suger free ice cream, we can use some ayuvedic plants mixture for helping adults to save their heath conditions

Example : For Cholesterol patient we can add some cholesterol reducing plants as mixture for ice cream. Then they will buy it.

Price :

We should use medium and large package and reasonable price. Because adults buying goods for using for period. They can use refrigeration and save and use it.

Place :
Supermarket, Shops, mobile shops in hot climate areas

Promotion :
Always elephant house had the best promotion activities. It is better to do some TV ads

Elephant House Marekts Sausges for final customers and tourist hotels. Distinguish B2B and B2C marketing strategies with respect of Elephant house

Elephant house produces unique quality sausages that none can match. They market them mainly to the tourist hotels and some to the local super markets.B2B market concerns about selling the sausages to the hotels for them to prepare and sell; and B2C concerns the sales occurred to the local final customers. B2B and B2C marketing are both about people. Even when dealing with businesses, sales are still largely dependent on human relationships.

Elephant house will market the sausages business equally to the final customers as well as to the hotels to keep in touch with both the parties because customer loyalty or connections with elephant house is necessary for a successful B2B & B2C marketing.

However the reality is the hotels sector buys a large stock at once at any price so these are the benefits elephant house get through B2B marketing:

Involve a more complex value proposition than a typical consumer purchase. Have higher transaction values.
No need of packaging in small quantities
No need of extra advertising on the package

Of course, there are some consumer purchases that rise to the complexity of B2B decisions, But generally, B2C depends more on branding, advertising, promotions, to increase sales, which are often made in B2B, as opposed to the hard business calculations, and personal business relationships that drive B2B sales. Branding, advertising, and promotion are useless in B2B marketing because they will surely buy the product until there is no complimentary ; But B2B marketing’s is a more complex and lengthier buying cycle, it demands marketing involvement for a longer time and a huge amount of sausages at a time, Both types of marketing are about people, and making the right connection with the right people at the right time is the goal of both. But in B2B marketing, the “right people” and “right time” are usually not as clear as with consumers. It only consider what the “right connection” is

Buying Behaviors of Industry (Hotels) and Consumer

Elephant house decided to export soft drink to India.
Difference between Local and India Market.

Elephant house soft-drink package bottle is normally large then other competitors products. Elephant house soft drink Price is similar to other brands, Pepsi, Coke, Fanta, and Spirte are major competitors in local. Elephant house Positioned their soft drink as a support drinks for lunch or short eats, So they mostly targeting hotels, and also they trying to capture youths by promotion events, like wise sports carnival, national events and attracting advertisements. But in India Pepsi cola ruling its major market share. Pepsi cola is multinational company and leading soft drink manufacture in the world. Its has more capital / money power rather then elephant house. But India is a large number of people living nation so, elephant house also can grab few markets shares.

International Marketing Task.

Elephant house International Marketing task
Controllable factors
Place / Promotion / Product Price
According market segmentation Elephant house can change its price According
to product cost prices can chage, Adopting to Indian taste, Promotional events should do more for attract market, we have to sell product in supermarket, shops and mobile shops.

UnControllable factors

Domestic environment / Political legal forces / Economic climate / competitive structure. Local people culture, lifestyle , government economical policy, competitions

Indias environment / Political legal forces / Economic climate / competitive structure / Technology / Culture values / Geographical and infrastructure India have deffernt type of geographic sectors, India econmy is growing, Elephant house can hire low wage employees, Need to introduce high techonolgy, competition is high

Elephant house major decision in international marketing

Deciding whether to go to abroad
Profit Margin, Market Scale, Political Risks & Indians culture etc factors will decide it.

Profit ‘& Growth
Indian market is very big, so elephant house can capture few percentages in initial period.

Technology competence / Unique Product
Elephant house product is unique, its soft drink item are different from other competitive products, Pepsi cola & coke is similar but elephant house EGB is totally different. This can attract new market.

Economies of scale / tax benefits

Indian economic is growing, Indian personal income is rising, youth loves western life style, so Elephant House should correctly target its market before entering, Tax benefits is very less for foreign companies in India.

Competitive Pressure

There are leading, multinational companies are available its competitive pressure is very high.

Product Development cost
We have to adopt Indian taste and culture so product development cost is little bit higher.

We have to maintain limited production until capturing market.

Over production will make unnecessary cost & loss

Deciding which market to enter
India is huge nation, with different type of culture, tradition and lifestyle so we can’t enter it suddenly for competing whole market. Elephant house should think about one of high income and sri lankan friendly state in India. Maharasthra is better to enter. Mumbai is capital of Maharastara. Elephant Houses EGB can attract Maharastara states’ busy life style people.

Deciding How to Enter
Available methods for Elephant house to enter market are
Direct exporting
Joint venture
Direct investment.
Direct exporting is high cost method and joint venture is attractive but because of Indian partner’s behaviors sometime we have to lose our good will. So direct investment is more suitable for this progress. It little bit cost but we can reach sustainable competitive advantage from our good marketing planning.

Deciding on the Mareket programe.
Elephant house decided to use adapted marketing mix, its mean different products for different places (county/ state) because India is huge nation with different type of culture and races.

Deciding on the marketing organization
Elephant house international division will undertake this mission, and they will use Polycentric Management orientation method also.

When we anaylsing all strategies entering to India market will definelty give boost for elephant house products. If they can position atleast one product there in customer mind and if can create loyal customer for Elephant house whole entire business will be change to high profitable way.

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