Marketing Strategy Narrative Essay

Published: 2021-07-02 04:14:02
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Executive Summary Pensonic company is founded by Dato chew Weng Khak in 1982. The vision of Pensonic company is becoming the successful Asian brand. Pensonic set to deliver product and service in meeting customers satisfaction as their mission. The objective for the company is to become the worldwide well known household appliance brands. Basically, Pensonic target on the niche market. They mainly focus on one product line which is home appliances. The marketing mix is the most fundamental elements that needed to operate a company.
Pensonic introduce a green product which is a mini portable fridge need to consider all the factors in term of the quality, safety, design, packaging and so on. After a new green product is introduced, Pensonic needs to decide the distribution for the product. Whether Pensonic want to have distribute their product through direct channel, retailer channel, wholesaler channel, or agent/broker channel. Besides that, Pensonic also need to consider which types of promotion strategy that is suitable to use.
Sales of the company is correlated to the promotion strategy that used by the company. Choosing a right pricing strategy is also important for the company operation. Pensonic needs to carefully choose a pricing strategy so that the company will not suffer from loss. Every company will come to the stage that facing market problems and opportunities. When Pensonic encounter market problems and market opportunities what types of action that needed to be taken? A right strategy would lead Pensonic to growth more further than others company.

In conclusion, Pensonic has a good opportunity to launch a green product or start the green initiatives. In term of their financial, brand equity, and the experience that they have should be not a problem for Pensonic company to start on the green initiatives. Background The background of the Pensonic group is founded by Dato Chew Weng Khak as a sole proprietor who started the as a small shop at Balik Pulau, Penang which selling electrical appliances trading under the name of Keat Radio Co. Sdn Bhd in 1965.
His initial setup Keat Radio Co. has profited well to enable him to expand into his first branch in 1974. The birth of Pensonic brand was conceived in 1982 by Chew Weng Khak to produce locally manufactured electrical appliances in order to ensure long-term growth of his company. The Pensonic brand carries a special meaning-THE SOUND OF PENANG coined from the word “PEN” for Penang and “SONIC” for sound. The brand name has the distinction and grown into one of the most successful Malaysian brand in household appliance.
It was the first Malaysian brand to have received the Brand Promotion Grant from MITI of Malaysian in 2005 and it has also received a numbers of excellence design awards. Pensonic Holding Bhd is the largest Malaysian household electrical appliance company in the country. Where their product are export to ASEAN countries, Middle East and South countries. Most of their product is mainly sold in the local market. After several years, the name PENSONIC has become synonymous with reliability and durability and their brand has evolved into a well- known player in the home appliances market.
The vision of Pensonic Holding Bhd is becoming the successful Asian brand. It intend to become the first mind-share when consumer would like to purchase the electrical appliance. Their mission is to deliver quality product and service in meeting customers satisfaction. Their business philosophy is offer to its customers a combination of high quality customer services, competitive pricing and maximum flexibility. Their business also committed to deliver timely, quality product and services in exceeding customer satisfaction.
The slogan of “Quality is our Priority” always consolidate their position as the leader in quality and reliability. Objective of Pensonic Holding Bhd is to become the worldwide well known household appliance brands. It want extend the Pensonic brand name and link to the established meaningful positioning so they will measures the awareness and response of the market in order to make adjustment to the marketing campaigns as necessary. Target marketing strategy that use by Pensonic Holding Bhd are Concentrate (niche) marketing.
Their selling categories are blender, electric kettle, electric oven and air conditioner and other are most categories in home appliance. So their primary consumer targeted are family is in the middle-upper income professional because they are often use the product that offer by Pensonic. This concentrate marketing strategy can enable them to earn more profit but also suffer greatly if the segment turns sour. MARKETING MIX PRODUCT STRATEGY Basically product is anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need.
Nowadays there many products with different brand, in order to identify a product in the market it need product identification which consist of branding, packaging, symbol and others. Besides, a product also must solve consumer problem and benefit them. Pensonic had offer many home appliance, in this case we are focuses on doing research for one the Pensonic product which is Pensonic portable mini fridge for the masses because it is an indispensable home appliance for many people.
Product planner need to think about the three levels of the product which are core benefits, actual products and augmented product. The core benefits of Pensonic portable mini fridge are easier consumer to bring it anywhere or any time when need it and also for those who are sticklers for space. For a college student, their hostel are not so widely so they are encourage use this portable mini fridge because this appliance doesn’t need much space at all and also convenience them to carry out for travelling or camping.
Actual product of this appliance is their design. The design of this mini fridge is portable. That are portable enough when camping trip would involve a car, then the adapter can plug it into the car lighter socket to enable keep the food fresh and cold ready for great meals throughout the trip. Besides that the features of this appliance are not only keep the food cold, actually have heaters as well to keep the food warm. They are compact to keep the food cold or warm will keep food and drinks in the best shape when enjoy camping.
Other features are energy saving. This mini fridge can effectively preserve goods without consuming too much energy. Augmented product is means offering additional customers services and benefits. Basically this product will offer one year warranty, if the consumers have discover any problem of this mini fridge, they are allow to bring back to the company for repairing and no hidden fees is charges. This product are knows as consumer products which are bought by final consumers for personal consumption and categories s shopping goods because its bought less frequently, we only bought it whenever we need it or when our fridge are damage. Usually this good will sell at higher price and sell at fewer locations only compare to convenience goods. Normally, consumers purchase the goods based on the product attributes, branding, packaging, labeling other support services as individual product and services decisions. Pensonic is the one of the famous home appliance brands in Malaysia and their product quality, features and also style and design is already becomes trusted home appliance brands in this country.
Loyal customer will knows that they will get the same features, benefits and quality each time they buy and it will easily helps the Pensonic company to segment the market. Pensonic Company had design and producing the good packaging in the markets. Each times consumer bought this portable mini fridge, they will get the small carton container to protect this appliance. On this carton container, the Pensonic brand name have also label on it, when other consumers that saw this carton container will intermediary knows that brand is Pensonic brand. This brand identification is importance for the company Pensonic.
Besides that, on this packaging also address environmental concerns such as recycle and also can getting the info of the Pensonic company. MARKETING CHANNEL Marketing channel is the physical flow of the good and services from the producer to the final consumer of the goods. There is many way consumer can get the product. The company can use direct channel, retailer channel, wholesaler channel, and agent/broker channel for the consumer product. Originally Pensonic Company are using the simplest and shortest marketing channel which is a direct channel to market their product.
A direct channel carries goods directly from a producer to ultimate user. This channel forms part of direct selling which is the strategy designed to establish direct sales contract between producer and final user. This direct selling is an important option for goods requiring extensive demonstrations in persuading customers to buy. Internet and direct mail are potentially important tools for direct selling, it can encourage a potential customer to contact an intermediary such a retailer or a vital communication piece for many marketer.
After several years, Pensonic company becomes more flexible because their channel change over time. Nowadays, Pensonic exploring the indirect channel which is the retailer channel using the markting intermediaries to market their product. Jusco and Tesco are most contact efficiency that use by Pensonic company to distributed their goods to the final user.. . Both Jusco and Tesco are having many type activities that they providing which is amount of service they offer. Amount of service they offer meant that the total service the store providing to the producer.
Tesco are providing promoter for the electrical item as well as for the pensonic electric item also. Even they also separated the product according to the different brand of the product. Besides, Pensonic company store are vary in terms of the breadth and depth of their merchandise product lines such as blender, electric kettle and oven, fridge and other. Each product lines are classified into specialty stores because it carry narrow product lines with deep assortments within those lines.
Their products are sold in department stores such as Jusco and Tesco which carry a wide variety of product. Each line is operated as a separate department such as cloth department, stationery department and they also have electrical department which will stores the pensonic item as well as other brand of electrical item. Pensonic company using the selective distribution which only a limited number of retailers in a market area to handle its line. By limiting the number of retailers, it can reduces total marketing costs while establishing strong working relationships within the channel.
However the selected retailers by Pensonic company such as Jusco and Tesco often agree comply with the company strict rules for advertising, pricing and displaying its product. On the other hand, each channel will provide different function to the product. Retailer channel are providing transactional function. Transactional function involves adding value to the distribution channel by bringing in the intermediary’s resources to establish market linkages and customer contact. The intermediary can establish customer contact by helping or undertake the promotion part.
Retailer can make advertisement to promote the product and build customer and buyer’s relationship. In order to build the customer confidence toward the product retailer need to gather the information and marketing research about the need of the customer and tell them how the product can satisfy their need and want. Retailer channel also providing other services other than this which is physical distribution and risk taking. The goods need place so the retailer are providing warehousing to the product and they also take responsibilities to the transporting the product.
Moreover, the retailer also need to face many problem to make the work is done on time and the product arrive on time so that the customer or business user no need to wait for longer time to get the product. So, all this activities which provided by the retailer are advantages to the company because they can reduce their shipping, promoting and other cost. PROMOTION STRATEGY Promotion is all about companies communicating with the customer. Promotion Mix is the business tool to provide information, increase demand, differentiate the product, accentuate product’s value, and stabilize the sales.
It consists of a blend of advertising, personal selling, sales promotion, public relation, direct marketing, and interactive marketing. The major types of promotion mix that used for Pensonic mini portable fridge is advertising, and sales promotion. ADVERTISING Advertising is any paid form of nonpersonal communication about an organization, product, services, idea or cause by an identified sponsor. Usually Pensonic company advertise about their mini portable fridge or their other item through magazines, internet, newspaper, pamphlet and ext. he reason why they advertise their product using this method is because they can reduce their cost of advertising since this type advertising can communicate with a large number of audience in short time period. SALES PROMOTION Sales promotion is short term incentives to encourage the purchase or sale of a product or service. The company uses this strategy to introduce new product, getting existing customer to buy more, attract new customer, and maintain sales in off season since there are a lot of competition for this company product like its close competitor Panasonic, sharp, Samsung, Toshiba and ext.
The Pensonic Company is giving customer opportunity to participate in contest when they purchase product from our company. Furthermore, through contest it can give customer the chance to win something when they purchase the product from the company so they will feel the money that they use to buy the product from company still can gain something other than just for that product. Even from this type of promotion the company actually can build customer royalty because nowdays people tend to buy more when we are giving them something in return. PRICING STRATEGY
Price is the sum of all the values that consumers exchange for the benefits of having or using the product. Factor affecting the pricing decisions are customer perception of value and product cost. If the customer perceived price greater than value of product, they will not to buy in other words no demand above this price. If the company pricing the product below it cost, their profit will suffer in other words no profits below this price. In order to set the price for the product they need to identify their objective first whether they want to maximize their market share or maximize their current profit.
Pensonic portable mini fridge use the value-based pricing to set the product price. They setting the price based on buyer’s perceptions of value rather than on the cost. It offering just the right combination of quality and good service at a fair price. Pensonic first to assess customer needs and value perceptions, then tried to set the target price to match customer perceived value, after that determine the costs that can be incurred and finally design and produce to deliver value of target price.
The new product pricing strategy used by the Pensonic Company is skimming pricing strategy. The company set a high price for a new product and some of the customer are willing to pay so the company can earn but the company still make fewer sales because not every customer are willing to purchase or buy at high price. So the company will reduce the price of the product because market are highly price sensitive and when the price are low the market acceptance and growth are higher compare when the price are higher.
Besides, this strategy can attract a large number of buyers and win a large market share as their objective they want to win or maximize high market share but in order to win high market share the company need to keep the competition out of effect, as we know Pensonic company have many competitor like Panasonic, National, Sharp and ext. the reason why Pensonic company set high price when they introduce their product to the market is hey want to show the product quality are better and branded compare to other brand because consumer have psychological thinking that the higher the price the better the performance of the product. Price adjusted strategies using by Pensonic are promotional pricing which they will reduce the price of the product to increase their short run sales. This price adjustment can be use by offering special event pricing; the company will do this type of promotion in certain period of time or season to attract more customers.
Even they also provide customer free maintenance and longer warranties during the event. Furthermore, they also use psychological pricing, this meant that the price is not too high or too less because most of the customer think that the higher the price better the product quality and vice versa so in order to overcome this they will make sure that the price is suitable for the product and its quality. There is a factor which can affect the pricing condition which is pricing in different market. Pensonic mini portable fridges are under monopolistic market.
Monopolistic market have many buyer and seller of differentiated product at different price but the buyer are price sensitive compare to perfect competition market which is less sensitive because that market are price taker so they must follow the price list provided by the government. Since monopolistic are under price maker they can gain profit. Market Opportunity Every company perhaps need to know their product faring among the competing brands, they may to assess the brand awareness after the advertising and promotional campaign to find out the level of customer satisfaction.
However if the products launched in the market and its cannot gained much attraction of the potential customers, the company is currently facing the market problems. Marketing problem that facing by Pensonic Holding Bhd are their product image. Pensonic brand does not have a reputation as being compatible with the corporate world. Besides that, their home appliance brand are not targeted towards business people as their income is upper-upper classes, they are able and willing to purchase a large quantity of these appliance compare with ever family.
This cause them to earning the less profits. Marketer research found that market needs by the Pensonic Holding Bhd are increasing in demand by keeping and growing current customers by satisfy their need and want such as delivery and credit, warranty, installation and so on to building the strong brand. It will provide a high level of consumers brand awareness and loyalty. Pensonic brand also need to expansion to a new target segment by offer more differentiated product other than home appliance to develop a stronger positioning within each market segment and creates more total sales.
Besides that, Pensonic also need to develop the long-term partnerships with the other powerful brands. Pensonic can collaborate with many powerful home appliance companies to penetrate the market which reduces costs in marketing and increase revenue through long-term agreement deals while at the same time, creating a brand awareness as a trusted brand in the market. The home appliances company in Malaysia is currently facing shortage of green product in the market. The home appliances company dares not to start practice on green initiatives due to the lack of experience and knowledge in his field.
Some of the companies have the abilities to start on practicing green initiatives but they do not do so because they think that this green concept will not highly supported by the customers in Malaysia. In fact, Malaysian lack of awareness and knowledge about the green concept compare to other countries. Lack of technology is also one of the deterrents for a company to go green. Besides that, financial support is also playing an important role to determine the company decides to go for green. Pensonic home appliances company has a wide market in Malaysia.
Home appliances had become the undifferentiated product for ever family. Almost every family needed for home appliances. This has become a necessity for every single family. Due to this situation, Pensonic can take this advantage to come out a green product which can help the consumers to save some cost for example electrical fan that can reduce the energy usage. Currently, Malaysian is facing financial distress due to the economic downturn. People are suffering from the high charges of electric fees and petrol.
This situation can bring motive to Pensonic to invent some green home appliances that can help the consumers to reduce some of the living cost for example a green refrigerator that can minimize the usage of electric. Therefore, the consumer not only can save some money yet also playing a role of saving the earth for reducing the pollution. Pensonic has been established since 1982. It is the first ever home appliances company in Malaysia. Pensonic currently is the one of the famous and the best of the home appliances company in Malaysia.
With the twenty-nine years of experience, Pensonic has the priority and potential to start practice on green concept. In term of financial support, experience, technology and resources, Pensonic has the high brand equity in Malaysia. This is an advantage for Pensonic company, since the company had already built the consumers confident. Having high brand equity will also lead the consumers to less worry of the price. The consumers normally will accept the price that is set by the Pensonic. Loyal consumers will keep on supporting and repurchase goods from Pensonic.
Furthermore, Pensonic able to save some of the cost from advertising due to the loyal customers or experienced customers will share and spread the news or experience to their friends and family members. Practicing on green initiatives not only can retain the customers yet attract more new potential customers. Therefore, Pensonic is highly encouraged to start on practicing green concept. If Pensonic successfully practice on green initiatives, this will greatly improve the brand recognition as well as brand equity for Pensonic. Recommendation
In my opinion, I recommend that Pensonic should start the green practices from organizing green campaign. Through this green campaign, Pensonic not only can promote their product yet also giving green awareness to the customers. In this green campaign, activities like planting trees, green talks, green drawing contest and others activities which will greatly knowledge the customers to go green. During this green campaign, Pensonic can use this opportunity to introduce the products to the customers and demonstrate on how to operate the products.
Through this green campaign, Pensonic able to save a lot of cost in advertising. Other than organizing green campaign, Pensonic can support the green concept through the charity or donating some funds to the green organization. By supporting the green organization, Pensonic able to improve its brand recognition as well as to prove the quality of their products. In addition, joining into the charity or organization can also help Pensonic to reduce in advertising cost too. In rder to make more customers support or concern about going green, Pensonic can come out some strategies to attract more customers for instance customers who purchase one single green product from Pensonic, they able to get discount, vouchers, and others benefits. Furthermore, Pensonic can also donate 10% to the charity or organization based on the sales in the green products. This not only able to catch attention from the customers yet also increase more customers to support on green products. There are also some several green practices can be implied into Pensonic company.
Instead of using the plastics bag, Pensonic can provide biodegradable bags to customers. Encouraging customers to bring their own bags is also one of the ways to practice on going green. In order to encourage customers to bring their own bags, Pensonic can give a discount or award some points to customers who bring their own bags. Reducing in plastic bags usage will help to minimize the environmental impact. Besides that, Pensonic can also set a day in a week as a green day to remind the customers to go green. Promotion will be given to every customer for those who purchase on that particular day.
Doing this weekly green day promotion not only help to improve the sales yet promoting their product to others customers. Apart from that, Pensonic can also create or invent some green products and sell it to the market. One of the examples is the invention of Pensonic mini portable fridge that able to save energy usage and lower the environmental impact. This product will be supported by many customers since people in Malaysia are suffering the higher charge of electrical fees. Customers will choose to buy this product since its function give benefits to the customers in Malaysia.
In order to increase the sales of this green products, Pensonic needs to provide free installation, free delivery or warranty to the customers so that Pensonic able to gain the loyalty from the customers. Last but not least, Pensonic can advertise their green product and giving awareness via internet or social networking like facebook, twitter, my space and so on. This is the effective cost saving method yet also effective ways to deliver the information and value to the customers. Conclusion Pensonic group is a company that was founded by Dato Chew Weng Khak in 1982 after the transformation from its own SME Keat Radio Co.
Sdn Bhd. Most of the products that sold by the company are home appliances that easier for the need of the consumer in daily life. Pensonic group become one of the faster growth enterprise throughout its good product, marketing and promotion strategy on the global market. For the product strategy, its can see through a few steps that taken by the group itself. By having a research on the need of the consumer, the product was decide to fixed the need of the consumer from a single little problem that exist in the human daily life.
Besides that, it also get some confident from the consumer by having some after sales service such as warranty of the product, after sales customer services and after sales repairing services. Besides that, pricing also one of the main features of the group strategy on selling the goods, with a lower price compare to most of other brand with the similar or better quality of product. It makes the company more and more into the right track on growth. For the landmark the brand of the company in the global market, one of the key factor is to identify the channel for the marketing strategy.
How the goods can be channeling to the end user is the key factor. For Pensonic group, indirect selling strategy is one of the key ideas to make sure it’s company can attain the share of the global market. It distribute through hypermarket such as Jusco, Tesco, Carrefour and Giant. It can reduce the cost in through using the selective distribution while establishing strong working relationships within the channel. It can also reduce the cost of advertising as the retailer itself also need to contribute in the promotion strategy for the product.
For a company to withhold a share in global market, the way that a product is promoted to the end user make the thing go correctly. The most effective way to promote is through its advertising and sales program. Usually, Pensonic advertise about their product through soft and hard media. Sales program is also providing to encourage the purchase or sale of a product or service. This can help in introduce new product by get attraction from new and existing customer to buy more and maintain sales in off season from its competitor. Pricing is a main issue for a successful of a product.
Whether a product price is high or low also have its weakness. If too high the pricing, end user may not attracted while the pricing is too low will make the end user lost confident on the product quality. Hence, they setting the price based on buyer’s perceptions rather than on the cost. It is offering just the right combination of quality and good service at a fair price. Besides that, the price adjustment strategies also uses to promote short run sales by adjust the pricing of the product and offering special event pricing to attract more customers in certain season and period.
The last part is related to a company market opportunity. Pensonic group is still facing problem dealing with its market value as it not as famous as what the other brand do such as Panasonic, Toshiba and Sharp which already have a fixed share market in the global. Hence, they find out the solution that to target as their product as 2nd pricing group after the main stream brand. Problem solution based on valid, accurate, timely quantitative research to make vital marketing decisions concerning entitle customers. ncreasing in demand by keeping and growing current customers by satisfy their need and want such as delivery and credit, warranty, installation and so on to building the strong brand. It will provide a high level of consumers brand awareness and loyalty. Besides that, Pensonic group also should plan on research more products which relate to the green technology which serve as the main features on future trend. In the end, Pensonic group is still a new establish company with a comparable growth in the global market based on its marketing strategy, product development and promotion method to the end user.
Hence, it still has more way to growth in the future. From this assignment, we have deeply understand marketing concepts with an understanding the functions and role of marketing in organization and its relationship to organizational management. We also able to understand the marketing management process and analyze market structure and buying behavior. We will also be able to apply the marketing concepts in detail relating to making decisions in the future. Besides that, we also understand the importance of teamwork. Teamwork is something that must be a high priority and given constant attention.
Every group member needs to understand how important it is for them to work smoothly together if we want to finish our group assignment well. Each group member must be dedicated to the whole group and be willing to act unselfishly. We need to have the resources, accountability and commitment to deal with each other in a constructive and positive manner. The important of going green is to save our mother nature so that our future generation can live in healthier and happily. (5072 words) Reference Boone, Kurtz. (2006). Principle of marketing .
USA: THOMSON SOUTH-WESTERN. Malaysia Stocks: EP Manufacturing, Pensonic, SEG International. (Apr 29, 2011). Bloomberg. Retrieved July 4, 2011, from http://www. bloomberg. com/news/2011-04-29/malaysia-stocks-ep-manufacturing-pensonic-seg-international. html Pensonic. (2004). Retrieved July 2, 2011, from http://www. pensonic. com/main. htm Pensonic-Home Appliances, Kitchen Appliances. Retrieved July 7, 2011, from http://www. homepride. com. my/directory/pensonic/ The Marketing Mix. (1999). Retrieved July 17, 2011, from http://www. quickmba. com/marketing/mix/

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