4P’s

Product- Low involvement product, can use Push strategy

Place-4%market share in India, wants to increase it by 2%. They can target the Tier-1 cities

Price- Price sensitive market, can offer discount, coupons and cash back

Promotion- Trade promotions and consumer promotions

Strategy

1) As already mentioned in the case that tyres are basically low involvement product the
company need to invest on their promotions. For more shelf space they can directly tie-up
with the retailers. Can use Push strategy in order to increase the day to day sales. Can offer
discounts, coupons or cash backs in order to attract some new customers. Can give
customised services to their existing customers.
2) Since India is a price sensitive market(overall) they can segment their market into 3types-
a) Repeat customers
b) One-time customers
c) In frequent customers

For Repeat customers they don’t have to spend much on promotions but they need to give them
customised services in order to have them on their sides. Quality will be the differentiator in this
case

For One-time customers they need to build a brand image first. Price may be the case they didn’t
buy for the second time so company can offer him some discounts in initial phases and need to add
value proposition in a way that the customer can further differentiate between their product and
other product

For in frequent customers they need to invest heavily on trade promotions (Push strategy, Short
term impact, pay as you go, short planning lead time) and also little amount on consumer
promotions (Pull strategy, Investment, long term impact, longer lead time)

3) The company can further segment the market on the basis of the income of the users. For a
price sensitive economy, price the users are paying for a particular commodity plays a huge
role, so they can lower their price in order to gain market share and later on they can use
their over other brands to pull customers.
4) They can give some discounts to retailers in order to gain more shelf space. Also, since it is
the low involvement product word of mouth from the retailers can influence people who are
buying the product.
5) In order to reduce the pricing of SKU’s the company can use Zero Inventory method; in this
way they can also provide some of their regular customers customised delivery
They can use Push Strategy

1) In push systems work released is based on downstream demand forecast

2) They can keep inventory to meet actual demand in order to reduce the storage cost
3) They can act proactively