Red Ltd. company believed that they could maximise their profits by producing hair gels at large scale. Conversely, Blue Ltd. company who also sells hair gels laid more emphasis on society and customers' need rather than quantity of hair gels. Blue Ltd grew within a few years and reached the heights of the business environment while Red Ltd. is suffering losses and is on the edge of closing down.
(i) What could be the possible reasons for Red Ltd. closing down?
(ii) Which marketing management philosophy do you think both the companies followed?
(iii) How can Red Ltd. company overcome its depressed position?
Red Ltd. company believed that they could maximise their profits by producing hair gels at large scale. Conversely, Blue Ltd. company who also sells hair gels laid more emphasis on society and customers' need rather than quantity of hair gels. Blue Ltd grew within a few years and reached the heights of the business environment while Red Ltd. is suffering losses and is on the edge of closing down.
(i) What could be the possible reasons for Red Ltd. closing down?
(ii) Which marketing management philosophy do you think both the companies followed?
(iii) How can Red Ltd. company overcome its depressed position?
(i) The possible reasons for Red Ltd closing down are that they may have focused on products that can be made easily available to consumers at a large scale and are inexpensive. They may have not focussed on quality of the products but emphasized on mass production and distribution. They have also resorted to excessive and aggressive promotional activities leading to high costs of promotion but sales may not have translated as promoted.
(ii) Red Ltd. followed the production and selling concepts while Blue Ltd. followed product concepts, marketing concepts, and societal marketing concepts.
(iii) Red Ltd. can take inspiration from Blue Ltd. and focus on improving the products by emphasizing on quality and catered to customers' and societies' requirements. They can collaborate with community groups to sell at the right place and price where gels are needed.
(i) The possible reasons for Red Ltd closing down are that they may have focused on products that can be made easily available to consumers at a large scale and are inexpensive. They may have not focussed on quality of the products but emphasized on mass production and distribution. They have also resorted to excessive and aggressive promotional activities leading to high costs of promotion but sales may not have translated as promoted.
(ii) Red Ltd. followed the production and selling concepts while Blue Ltd. followed product concepts, marketing concepts, and societal marketing concepts.
(iii) Red Ltd. can take inspiration from Blue Ltd. and focus on improving the products by emphasizing on quality and catered to customers' and societies' requirements. They can collaborate with community groups to sell at the right place and price where gels are needed.
