Question

Six Mark Question
'Hayaram' is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.
The above pan describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables.

Answer 1

The variables are:

1. Product: Product means goods or services or ‘anything of value’, which is offered to the market for exchange. Here, they sell products which includes chips, biscuits, sweets and squashes.

2. Price is the amount of money customers have to pay to obtain the product. In case of most of the products, level of price affects the level of their demand. It is mentioned that it charges a comparatively higher price than its competitors as it sells quality products.

3. Place: Place or Physical Distribution include activities that make firm’s products available to the target customers. Here, it is said that they have five retail shops of their own and they sell their products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time.

4. Promotion: Promotion of products and services include activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It is stated that they regularly use different communication tools to increase their sales.