Marketing audit BIC * INDEX 1MARKETING STRATEGY AUDIT4 1. 1Business Mission4 1. 1. 1The company’s mission, vision and values4 1. 2Marketing Objectives and Goals5 1. 3Strategy6 2Product strategy audit8 2. 1BIC’s product mix8 2. 2The product lines and their “augmented level”14 2. 2. 1FAQ15 2. 2. 2Contact us15 2. 3Comparison of BIC’s product mix with its 2 main competitors’product mix18 2. 4Expansion Strategies20 2. 5Areas that need improvement considering individual product decisions, product line decisions, product mix decisions and branding strategies24 3The pricing strategy audit24 3. The investors’ relations section of BIC web page24 3. 1. 1Pricing objectives24 3. 1. 2Pricing strategies25 3. 1. 3Pricing procedures26 3. 2BIC and the pricing topic27 3. 2. 1Factors affecting pricing27 3. 2. 2Pricing approaches29 3. 2. 3New product pricing strategies29 3. 2. 4Price adjustment strategies30 4Distribution strategy audit32 4. 1Description of the supply chain for the stationary product line from raw materials to consumer purchase32 4. 1. 1BIC supply chain and sustainable development33 4. 2Vertical Marketing System35 4. 3BIC’s distribution network in Spain35 5Marketing communications36 5. BIC’s promotional mix36 5. 1. 1Advertising:36 5. 1. 2Sales Promotion36 5. 1. 3Public Relations37 5. 1. 4Personal Selling38 5. 1. 5Direct Marketing38 5. 2An integrated communications strategy39 5. 3Choose two of your company’s ads and analyze them40 5. 3. 1First ad: Communications objective and content:40 5. 3. 2First ad: Structure and format:41 5. 3. 3Second ad: Communication objective and content:41 5. 3. 4Second ad: Structure and format42 5. 4“Push” or “Pull” promotion strategy42 5. 4. 1Advertising42 5. 4. 2Personal selling42 5. 4. 3Sales promotion42 6Bibliography44 4. MARKETING STRATEGY AUDIT Business Mission
The company’s mission, vision and values The mission of BIC is to make the consumer’s life easier by providing quality products that are safe. Some of the company’s perspectives are: “We offer simple, inventive and reliable choices for everyone, everywhere, every time. “ “Honor the past, invent the future. “ “Our vision and our philosophy are central elements of our culture, guided by our shared values: ethics, responsibility, teamwork, simplicity, and ingenuity. ” Since its founding more than 50 years ago, BIC has built its success on a clear vision: to make top-quality, affordable BIC products available to everyone.
While responding to the need for new product lines, the company continues to fulfill this mission by observing three fundamental values: A BIC product, above all, is designed to perform a specific function—draw a line, produce a flame, shave a hair. Design and technology reflect the efficiency with which each product carries out its function. BIC products make the consumer’s life easier. Indeed, BIC products provide easy answers for everyday needs. BIC chose to go straight to what’s essential: create something simple, yet reliable, which eases something we all do, that everyone can use.
This vision is at the heart of every brand move BIC makes. However, each time BIC identifies a specific need, it responds with technical ingenuity to optimize performance, thanks to its ongoing research and development. In addition to that, in order to win consumer loyalty. BIC provides the same quality of use from start to finish. With BIC products, everyone in the world is sure to find what they need, at an affordable price, offering both quality and reliability. BIC products are available to consumers worldwide with 3. 2 million retail outlets, from open-air pushcarts to superstores.
Finally, ethics and transparent financial information are part of the group’s values. This means that BIC enjoys the utmost trust from its partner. Marketing Objectives and Goals * The company and marketing objectives and goals for the upcoming years Firstly, their constant goal is to satisfy their customers (retailers) and their consumers by offering products that meet their everyday needs or their desires. Secondly, they want to continue to invest in the brand across all areas, which strengthen their position and pave the way for future growth in some countries like Australia, Russia and Brazil.
Thirdly, BIC is among the top 20 French companies for including sustainable development in their business strategy. For the upcoming year, they want to continue to develop products with environmental benefits in order to display their eco values on their packaging and to implement their policy of excellence in the factories while reducing CO2 and developing their employee’s skills. In parallel, they will pursue their commitment to enabling their consumers to make responsible choice. Finally, they will keep conquering market shares in developed and developing countries by combining quality with low prices. How BIC guides the marketing planning and performance measurement We think that they have stated clearly the marketing planning and performance measurement because in its annual report and in its sustainable development report we found the marketing activities (e. g. , e-marketing, promotional items, express yourself stationery marketing) that the company has done and it will continue doing, and their corresponding benefits and results. * The marketing objectives given the company’s competitive position, resources, nd opportunities As BIC is one of the world’s most recognizable brands and has been an international operation from the beginning with sales in 160 countries, on every continent, in both mature and emerging markets, 3. 2 million retail outlets sell BIC® products and an international presence with 9,700 employees around the world we believe that the marketing objectives are appropriate for this company because BIC uses different marketing mix for its different products and the company invests a part of the profit for improving their marketing and expand de business around the world.
According with BIC’s figures about its presence around the world, the powerfulness and leadership in many countries, and the achievements in green production; we think that their marketing objectives are being fulfilled satisfactorily. Strategy * The company’s marketing strategy for achieving its marketing objectives The company’s business strategy was developed in the late 1990s was to produce and market low-cost, high-quality stationery products, lighters, shavers and to meet the consumer’s needs at any time. The company also pledged to continually seek innovative extensions that distinguished its products from lower-price competitors.
That’s why; the company is always striving to provide the same high quality for customers around the world. Another part of BIC Corporation’s strategy was to grow through acquisitions. The strategy for achieving its marketing objectives is to have innovative and high quality products at an affordable price. * The strategy in relation with the stage of the product life cycle, competitors’ strategies and the state of the economy In the uncertain economic environment that developed countries are experiencing, BIC’s economic model seems to be just what’s needed to meet changes in consumer demand.
Also all the classics are still on offer, good quality at the best prices, along with innovative, useful products with real added value. * Is the company using the best basis for market segmentation? BIC is using the best basis for market segmentation. Indeed, they use behavioral segmentation in order to provide products that meet the consumer’s needs. They look at the benefits sought by the consumers to design new products for example they have produced a wide range of licensed pens for brands including Kenzo, Harley Davidson, Harry Potter, and the likes which show how the company is targeting customers in p to date trends. * The criteria for rating the segments and choosing the best ones It has clear criteria for rating the segments but it is too difficult to mention them because they operate in many segments and offer lots of products. The main distinction that we can do in its product mix is: stationary, lighters and shavers; but BIC sells others types of products depending on the country. Also each type of product is divided according their function, performances, features, gender (shavers), etc. * Has it developed accurate profiles of each target segment?
We think that BIC has developed accurate profiles for each target segment because they serve efficiently; proof of this is their success, being the number one in USA in the men’s non-refillable shavers for example. * Has the company developed an effective positioning and marketing mix for each target segment? BIC has developed an effective positioning and marketing mix for each target segment. BIC is positioned all over the world like a company that offers good quality products at a reasonable and affordable price. In addition, BIC developed a different marketing mix for each target segment such as women and men’s razors.
So it recognizes that each type of person, whatever gender, age, profession, etc. , has different needs and wants to develop a product. Product strategy audit BIC’s product mix BIC is the world’s leading manufacturer of ball-point pens, selling some 22 million pens and other stationery items every day. The company’s ball-point pens revolutionized the writing world upon their introduction in the late 1940’s and still remain its core product as well as other stationery items, including the Wite-Out and Tipp-Ex brands of correction products.
BIC is almost equally recognized for its disposable lighters, launched in the mid-1970s, which continue to sell more than four million each day. BIC also is a top contender in the global disposable shaver market, selling 11 million razors daily. BIC also has acquired a strong stable of brands, including luxury pen maker Sheaffer, Conte pencils, Stypen and Tipp-Ex, both acquired in 2004, and Wite Out, as well as the new BIC Kids brand, launched in 2004. Beyond its core consumer products, BIC produces windsurf boards, kayaks, and similar sports equipment under its BIC Sports subsidiary.
The company also operates BIC Graphic, which provides promotional products to the corporate market. BIC has recently teamed up with Orange France to release the first ever BIC Phone, a cell which is sold with a pre-charged battery and made to be thrown away after a chunk of usage. The BIC Phone comes with a SIM card already set-up and roaring to go, with activation being the only needed step. Each BIC Phone will also offer 60 minutes of free talk time. But you can always add more minutes if you’re so inclined.
Within BIC’s product mix they have a variety of different lines which are aimed towards a wide variety of different people. * BIC have their stationary line which includes: Writing, correction, marking, coloring and other stationary * They have their lighters line which includes: Classics, electronic, decorated, lighter cases, utility lighters * They have their razors line which includes: Men, women * They have their sports line which includes: Boards, rig packages, sails, masts, booms, accessories, spare parts
Each line has been stretched and extended but as their most popular line is their stationary line which is their longest line is the example which we are going to use and has been stretched as follows: * Writing pens -products in the same range as current products include: Ballpoint pens, added value ballpoint pens, BIC select, fountain pens, rollers, gel ink, pencils, BIC Ecolutions Range Each of these lines then has been extended for example ballpoint pens range includes: -4-COLOR™ FASHION -CRISTAL® FOR HER -CRISTAL® DECOR -M10® CLIC LIMITED EDITION -2 COLOURS™ LIMITED EDITION CRISTAL® -CRISTAL® LARGE/BOLD As BIC is a company which is recognized worldwide and sells products in over 160 countries they generally mass market their products. Their stationary line has such a wide variety of products it had been demographically been segmented with ranges including a luxury and children’s range. Their lighters line has been divided into psychographic and behavioral segmentation with smokers being the most common users of lighters it is a lifestyle choice to smoke also behavioral as a usage occasion they have their utility lighters range example for lighting candles.
Their lighters range had been demographically segmented with their separate ranges for men and women. Lastly their sports range would be psychographic and behavioral segmentation as they are aimed specifically towards those who are into water sports. The product lines and their “augmented level” BIC uses 3 different types of services for augmented level within the company. These services provide for the three diverse lines of products that they produce: * Stationary: * Razors * Lighters FAQ http://www. BICworld. com/en/pages/faq/ This is a tab available on the BIC global website.
When entering this segment of the site, a consumer is shown a series of most asked questions by the market. These questions include questions on their brand, their development and their products- stationary, lighters, razors and ink removers. Each question is provided with a straight forward helpful answer. E. g. where can I purchase the writing instruments refills? Refills are available at a variety of retail and stationary supply outlets. If you are US consumers you can order refills at wheresybc. us. Contact us http://www. BICworld. com/en/pages/contact/
On the BIC website they also have another helpful tab on their website with a form for which consumers can fill out if they want to contact the company with any questions and queries These factors are all contributes to the value of the BIC brand. They offer high class training for their employees to ensure fully qualified staff. Next they distribute their employees into different department of the company to ensure every aspect of the company is running efficiently. BIC then uses the consumer service department to evaluate the most asked questions by the consumer, to provide these answers.
Here they can see where consumers have any problems and would like to take notice of these problems. These augmented services add value to the product as it supplies helpful information that the consumer finds helpful and in turn provides loyalty from the consumers and a growing market. BIC’s highest augmented revenue is received from another product available. They use brand extension to promote BIC SPORTS. BIC SPORTS was created on the coast of France the homeland of the creator of BIC, Marcel Bich. This company specializes in board and water board sports. It started off from developing the windsurf board.
BIC expanded to create better equipment for water sports including water surfing, kayak, kite-surf and children sailboards. All their production is based in Europe. BIC SPORTS produce the utilities and accessories for theses sports. They supply all over the world in over 90 countries, using the internet as their main distributor. Depending on where the consumer is from it will give the consumer details on retrieving BIC goods in their country. By showing a map and simply clicking on the country one lives all the information and details are available for the consumer to use.
From there the consumer can make an order of the products needed. BIC use their website to promote news and events. These events are held by different companies all over the world. Consumers can use the BIC website to get information on teaching of water spots and competitions held. Products available include: Sportyak. Type of small boat for water sports Windsurf boards: Kayak: Comparison of BIC’s product mix with its 2 main competitors’product mix Concerning stationary, the two main competitors of BIC are Pilot and Newell Bubbermaid. | Product mix| segments| BIC| BIC means quality products and low prices.
Overall, the company’s products are 20% cheaper than his direct competitor’s brand. BIC has different product lines: Writing, marking, coloring and drawing, correction and accessories. | BIC is in the throwaway segment of the stationary market. It produces products for people that want good quality for a good price but without intention to use it forever. The segments that BIC targets includes all ages. BIC is for everybody. In 2010, because of the recession, BIC increased its market share in stationary thanks to its “more for your money” positioning and support to new products including the BIC “Triumph” and Easy Glide ranges. PILOT| For 90 years, PILOT has been synonymous with the provision of new writing solutions. PILOT writing instruments are well known for their high quality manufacturing and comfort of use. Thanks to a very high level of innovation, combined with great industrial determination, PILOT has launched successive technologies that have totally changed the face of the writing market. Pilot has only one product line of pens. It sells exclusively accurate pens. | Pilot is in the throwaway segment like BIC but it positions himself in another way. It is more for people that are looking for luxury writing instrument with a high professional design.
Aware of the competition in this emerging market segment, Pilot was careful to produce products that differentiated them from Cross and other stylus/pen makers. Their products are feature-rich and designed to appeal to the millions of customers buying hand-held computers and PDAs. | Newell Bubbermaid| Firstly, it has several brands in stationary: Rotling, Waterman, and Parker…This means it has several product lines too. Building Brands: That Matter to drive demand involves continued focus on consumer-driven innovation, developing best-in-class marketing and branding apabilities across the organization, and investing in strategic brand-building activities, including investments in research and development to better understand target consumers and their needs. | The Company is committed to building consumer-meaningful brands through understanding the needs of consumers and using those insights to create innovative, highly differentiated product solutions that offer performance and value. They differentiate themselves by doing an extraordinary amount of consumer research into the kinds of things that consumers want in these product categories.
They come up with truly innovative products that have differentiating factors that consumers want. With their Sharpie markers and pens, for example, they offer a wide variety of colors and sizes so that people can express themselves more colorfully. People like that and respond with brand loyalty. | Comparison: BIC markets a fairly wide product mix consisting of many product lines, including stationary, shavers, lighters and the sport line. Whereas Pilot and Newell Bubbermaid have less product lines than BIC. Indeed they focus only on the stationary market.
However, the lines of Newell Bubbermaid and Pilot are longer than the BIC’s product lines. They have more items within their product lines. Concerning, the product line depth, BIC offers more versions of each product in the line. For example, the four colors pen has many versions. We can see that BIC focuses more on the consumers’ expectations by providing cheaper pens in a time of crisis, for BIC it is essential to provide the best quality at the cheaper price whereas its competitors focus more on the technology and on the luxury of their products.
Expansion Strategies * Brief History Marcel Bich was an engineering who created the company. In 1945, Bich and Edouard Buffard acquired a factory near to Paris in order to produce parts for pencils and fountain pens. After great efforts and studies Bich created his first successful product a ballpoint pen, under BIC® brand. This product really had success, in the first year BIC sold 10000 diary pens and this figure was increased year by year thanks to its quality and affordable price. Between 1953 and 1967, BIC Company expanded his business around all ver the world: Italy, Deutschland, Spain, Austria, Brazil, UK, Oceania, South Africa, USA, Scandinavia, Middle East, Africa, Mexico, Japan and Canada among others. In 1969 BIC did a diverse line of BIC promotional products for corporate advertising and gifts, achieving leadership in the American continent as well in Europe. An example of this success was the entry in the Paris stock market in 1972. From the 1970s BIC started innovating and developed others kinds of products. Curious thing is that most of its products are disposable.
These are the main creations of BIC: * In 1973 BIC launches its lighters, which became the favorite lighters in America and others countries. * In 1975 BIC creates its disposable shavers, which also become very popular thanks to their quality and affordable price. * In 1981 BIC develops sport equipment, especially windsurf boards. * In 2008 BIC creates the BIC phone that is a kind of “disposable” and very basic mobile phone. Source: http://www. BICworld. com/en/BIC-group/history/ Obviously, BIC Company has developed many products and varieties of its products throughout its history.
Later we will explain some of the expansion strategies that the brand has done for that. Source: http://www. bicworld. com/en/bic-group/history/ As far back as 1979, BIC Company has acquired many and varied companies that have contributed to expand the market of the initial company in many sectors and countries. Some of its acquisitions are: Conte (drawing and coloring products); Tabur Marine-BIC Marine (boats and boards); Wite-Out and Tipp-Ex (correction products); Sheaffer (luxury writing products); PIMACO (adhesive products); Stypen (school fountain pen); Atchison Products, Antalos PP and Norwood PP (promotional products); etc. Product Diversification: 2009 2007 2006 1997 1992 1981 1979 1975 1973 1969 * Product, market and brand development strategies Now, we will explain the product, market and brand development strategies that BIC has used through the following examples; Product and Market Growth Strategies| Existing products| New Products| Existing Markets | Market Penetration| Product Development| | Promotions like “buy these crayons and take 12 pencils gift”| Launch of electronic lighters Vs. classical lighters | New Markets| Market Development| Diversification| Launch of female shaversExisting product: shavers (designed for men at first)New Market: femalemarket (shavers for women)| Launch of mobile phones (2008)| Brand Development Strategies| Existing product category| New product category| Existing brand name| Line Extension| Brand Extension| | Variety in BIC Cristal® ballpoint pens:Cristal® ClassicalCristal® FineCristal® Decor| Launch of lighters in 1973| New brand name| Multibrands| New Brands| | Sheaffer ® is a brand owned by BIC that sells luxury products for writing| | *
Areas that need improvement considering individual product decisions, product line decisions, product mix decisions and branding strategies BIC has already tried brand extension by making underwear or producing perfume. However, even if BIC is probably the most famous pen company in the world, its brand extension failed. Millions upon millions of people use BIC pens on a daily basis, and the company does very well in the pen sector. So, you really have to wonder about the company’s decision to not only make pens, but also make underwear.
After all, BIC had already found success with BIC lighters and BIC razors, so why not go with something that isn’t disposable but can be; underwear. BIC wanted to use its disposable reputation, with its infrastructure network to get the product everywhere customers are. This led BIC to make disposable women’s underwear but, surprisingly, very few customers decided to buy this product. For some reason, people did not want to wear something associated with pens, razors and lighters around their private parts and the brand extension failed…spectacularly.
That’s why, if BIC wants to extend its brand, it should also change its reputation or sell others products below a new brand name (new brands) that people don’t relate to BIC pens, razors or lighters. The pricing strategy audit The investors’ relations section of BIC web page Pricing objectives BIC seeks to provide the world’s markets with products at affordable prices. BICs pricing objective is to be able to achieve maximum profits while producing a quality product that a market can rely on.
BIC wants to ensure that their product is of very high value in regard to its reliability, but keep it at a low cost unlike their main competitors. “We love the products and have been using them for so long now, good quality, and designed products, at fair affordable prices. This has always been BIC’s objective. ” ‘By stripping products of their glamour and distributing them widely and selling them cheaply,’ BIC can retain the view of low cost products Pricing strategies BIC uses different strategies for their products to be able to compete in each market.
Their pricing strategies are economy pricing and promotion pricing. Their main price strategy is economy pricing. This is simple low cost pricing. The manufacturing and production costs are kept at a low and made in bulk to cut costs on distribution. This in turn leads to BIC being able to set the price of their goods at low standard cost that keeps them at a competitive advantage. “Combining quality with low prices allows us to keep conquering market shares, both in developed and developing countries” BIC uses price promotion as one of their main source of price strategies.
They offer their products in bulk at lower cost e. g. set of 10 pens for the price of 5, pack of 10 razors for the price of 5. They can also use the BOGOF (buy one get one free) strategy which will ensure their products are once again bought in bulk. By using this strategy BIC sells in larger bulk and because of the promotion consumers may buy the product on impulse just because the product is on promotion at the time, therefore the profit lost by promotion so regained by the sudden rise in sales. Pricing procedures Starting with its first ball point pen, BIC has chosen to focus on what is essential.
Create simple quality products that make everyday life easier, and that everyone can use and afford. Today BIC writing equipment, lighters and shavers are still testament to that statement. The group’s priority is to provide high quality products at prices that are affordable to all, available in stores worldwide. BIC markets 44 million products every day. BIC is an active and committed player in a large number of emerging countries. BIC highly values the local manufacturing of its products and contributes to the economic development of the countries where it operates.
In these markets the consumers’ low buying power the determining factor in all of their commercial policies, and BIC accordingly adapts its offer to consumers in the lower income brackets. This is achieved by adapting the quality/price ratio of our products, modifying the packaging, or by developing innovative distribution mechanisms. In this way the group strives, through its products, to facilitate access to education and hygiene in developing countries. BIC and the pricing topic Factors affecting pricing BIC achieves the best combination of quality and price, because of this they are leaders in the market.
The sentence that follows summary very well the idea about pricing of BIC: “Reach every consumer need Write in many colors, highlight, draw, color in, correct, produce a flame or shave… with BIC® products, everyone in the world is sure to find what they need, at an affordable price, offering both quality and reliability. In addition, BIC products are available to consumers worldwide with 3. 2 million retail outlets, from open-air pushcarts to superstores” * Customer perceptions of value The customer value of BIC’s products is not very high because majority of these are disposable.
But, we think that customers like them and consider that they have something “different” than the rest of products. That “different thing” is the usefulness, high quality and affordable prices of BIC’s products. However, we think that the customer perceptions of value aren’t affected directly when BIC fix the price; the things BIC take into account related to this point are that the price continues being affordable for everybody and covering the needs that people demand. * Product Cost We believe that this point is one of the most important factors for pricing.
BIC takes advantage of economies of scale in the fabrication of its products, so they try to minimize the cost in order to establish affordable prices maintaining the best quality. BIC has an advantage that other companies don’t have; it doesn’t mind if the prices of BIC’s products are cheap because that doesn’t mean that the quality is low. Other internal and external considerations * Marketing Strategy BIC wants to continue being the world leader in stationery, razors and lighters; so BIC won’t change its image of the best quality at the best price (affordable).
Even BIC will try to apply this policy to other products such as windsurf boards, “disposable” mobile phones, etc. * Objectives: quality leadership, keep out competition We think that the main objectives of BIC are to keep out the competition and having the quality leadership. So that BIC can do is preserve the best prices through the use of innovation and technologies to maintain the quality, and with this strategy they will keep out the competition. * Nature of the market and demand As the nature of the market in which BIC moves is not very valuable (disposable products) the prices have to be according with this kind of products.
Also the demand of these products claims the right price that BIC gives them. * Competitors’ strategies and prices Many competitors try to improve their products to cope the quality and prices of BIC. However, BIC have a strong brand name in the market and also offers better prices than the competition. * Economic conditions Nowadays we are living in a period of recession and crisis, so we try to save as much money as possible without compromising quality, if possible. BIC offers an affordable price in the majority of its products, so it is in tune with the economic context.
Also, BIC sells its products all over the world, even in underdeveloped countries, so the company has to establish the right price for this situation and adjusts to it. Pricing approaches We believe that BIC uses the approach of value based pricing because since the beginning of the company, Mr. Bich analyzed what the costumers needed. So, BIC always has in mind the needs of the consumers and the things that they value, and by taking this into account they set the price. BIC uses good-value pricing because the company offers the right combination of quality and innovation to fair price.
Generally, BIC applies everyday low pricing, but also they do some promotions. However, BIC uses the value-added pricing in the sense they offer some products with a higher price because they are green or with a technology differentiating the competitors. But this “higher price” is usually affordable and is in accordance with the features and quality. New product pricing strategies BIC does not use the Market-skimming pricing strategy. Indeed, its mission is to provide high quality for a low price. This strategy does not suit with BIC’s value. On the contrary, BIC uses the Market-penetration pricing strategy.
They put a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly to gain market share. Indeed, BIC sells disposable products on the market and that is a price sensitive market. People are not ready to pay a lot for disposable products; they want a good quality product for a low price. Moreover, the low prices must keep competition out of the market. As the company’s products are 20% cheaper than its direct competitor brands. BIC is clearly the winner in this competition. Price adjustment strategies * The product-form pricing
The company sells different versions of a product even though the difference is not based on cost. In the case of BIC, they have the classic version of the product that is cheaper and basic. Then they have the same product but a bit more expensive. This product has more design, more comfort or a product that is more special. For instance, BIC prices its 4-COLOR™ GRIP FASHION at 3€ which is 1€ more than the price of the CLASSIC 4-COLOR™. The 4-COLOR™ GRIP FASHION is more comfortable, it has fashion colors and a grip and it costs only a few more cents to build in. 4-COLOR™ GRIP FASHION CLASSIC 4-COLOR™. Promotional pricing BIC put its prices temporarily below list price or cost to increase demand. In order to do that, BIC use special event pricing. A good example was last year in France. For back to school 2010 in France, BIC rolled out operation EconoBIC in supermarkets and stationary stores. “The more the customers buy, the more they get,” by stocking up on items in the BIC, BIC Kids, Tipp-Ex and Velleda ranges to receive a reduction and a gift. They were offering games, educational software, alarm clocks… It was a great way to get useful products for children and adults during these tough economic times.
Distribution strategy audit Description of the supply chain for the stationary product line from raw materials to consumer purchase BIC made the ballpoint pen a success. Since its beginnings in 1950, the Company has refined the machines and manufacturing processes needed to manufacture pens in mass production while assuring high quality. These processes are highly technical and continuously modified to meet the requirements of an increasingly diversified product line. Well-trained employees, a rigorous quality control system and a focus n continuous improvement by our Research & Development team, ensure a high level of product quality. Manufacturing expertise: The BIC Group has high-technology facilities on all continents. The Company’s Quality Department regularly audits process and product quality in BIC factories. Production methods and quality standards are consistently applied in all BIC-owned factories. Contract manufacturers are also required to follow these standards, which are enforced by the Quality Department. Highly resistant ball: The roughly shaped tungsten carbide balls are first hardened in an oven to become almost as strong as diamonds.
Then, the balls are ground between two flat surfaces to become perfect spheres. 100% of the balls are checked for roundness and resistance. In-house knowledge of ball points: the tungsten carbide ball is inserted in the point support. Checks are carried out on a fixed percentage of points to control the precision of the setting which affects writing quality. Molding workshop: Most of the plastic parts are manufactured by co-injection molding. BIC produces its own molds created by its technology department. The cartridge: The assembled cartridges are run through a centrifuge process and then go through quality control.
Assembly: Assembly is performed by high speed machines, with parts fed directly from the molding process. Production programs are sent in automatically. Each operator self-monitors production levels. Writing control: At this step, all writing performance criteria are controlled. Before leaving the factory: BIC’s total quality commitment extends to all aspects of its business including packaging, logistics and sales, giving retailers and distributors a world-renowned brand name they can deliver with confidence to consumers. BIC supply chain and sustainable development
BIC products are designed and manufactured leaving out anything that is superfluous. Lightness, quality and long-lasting have been the group’s guiding principles since 1950. In 2004, BIC is committed to a sustainable development approach. Source: http://www. bicworld. com/BIC-Annual-Report-2010/#/46 1. EcoDesign: Starting at the product design phase, a measurement tool enables BIC to work to reduce the environmental impact of a product to the entire life cycle. This process has been approved by the French eco-label NF Environment granted for 16 BIC writing intruments 2.
Raw materials to a minimum: BIC decreases its use of fossil fuel products by minimizing the quantity of materials and by developing refillable products. 3. Working with men and women: BIC is committed to skill development and training for employees, particularly through BIC University and the strong values that the group shares with its employees. A Code of Conduct derived from the standards of the International Labour Organization is in place in factories. 4. Made By BIC: BIC manufactures more than 80% of its products in its own factories. 6% of employees work in ISO 14001 certified factories, and that figure will soon rise to 80%. The management systems help reduce energy and water consumption an CO2, and waste production. 5. Making it safe: BIC products are subjected to multiple quality/safety tests. Inks are reviewed by an independent toxicologist and every lighter undergoes 50 automated controls before it is available for sale. 6. Optimizing transport: BIC measures its greenhouse gas emissions and works to reduce the number of miles that freight forwarders run empty.
The group seeks to favor transportation methods that pollute less for the same service. 7. Diversified, responsible distribution: Product distribution is adapted to the local requirements and possibilities. As part of the commitment to sustainable development, BIC gives presentations to and leads activities with its customers, office supply distributors and commercial purchasers. 8. Long lasting: 2Km of writing for a BIC Cristal ballpoint pen, 3000 lights for a BIC Maxi pocket lighter and more than 10 shaves with a BIC tripke-blade shaver. 9.
Philanthropic projects: BIC subsidiaries and distributors are present in many different countries where they support local humanitarian actions through product donations, financial aid and employee volunteer work. Vertical Marketing System BIC uses an administered VMS. It coordinates successive stages of production and distribution, not through common ownership or contractual ties, but through the size and power BIC, which is the dominant channel member. BIC can obtain strong trade cooperation and support from resellers. 80, 5 % of BIC’s products are produced in BIC’s factories .
The rest of the products (19, 5%) are produces by partners. BIC’s distribution network in Spain In Spain product distribution is adapted to the local requirements and possibilities. As part of the commitment to sustainable development, BIC gives presentations to and leads activities with its customers, office supply distributors and commercial purchases. We have not found certain information about the distribution network in Spain, neither any other country. We only know that BIC have a factory in Tarragona. However, we have tried to do a possible network that BIC could have in Spain or in a similar country such as France.
Marketing communications BIC’s promotional mix Advertising: * Ads incorporating funny situations and it demonstrate the spectacular (and exaggerate) things that you can get with its products (pull). This is an advert in which a man, who hasn’t shaved in some days, comes into contact with the chest of the girl shown and it explodes. It appears on TV. http://www. cracker. co. za/video/1483/bic-advert-featuring-rugbys-beast * Ads in wholesaler/distributor/businesses publications (push). Sales Promotion BIC usually sells “promotional packs” or gives the costumer some gift for the purchase of the customer (push).
Public Relations BIC tries to have an excellent image as a company that is responsible with the environment and that makes activities that encourage its CSR (pull and push). BIC organizes events, contests, participates in social networks and creates games in order to involve the customers in the advert campaigns and to show an accessible and close image (pull). Personal Selling They call to wholesalers and distributors in order to obtain a contract with them (push). BIC uses its sales force to maintain contact with wholesalers and the companies that are their business consumers. Direct Marketing BIC has created direct connections with customers through social networks and different activities in which consumers can participate (pull). Direct mail, e-mail or phone calls to direct/wholesale/distributor sales channel members to carry the first time new products (push). An integrated communications strategy BIC takes an in integrated communication strategy. Indeed, BIC delivers a clear, consistent, and compelling message about the organization and its brand to its customers. The defining characteristic of BIC’s communication is its ability to stand out with a simple message, but one that makes sense.
The group also works on making campaigns that use the brand’s basic values (quality, performance and the right price) like the “BIC gives you more” idea. BIC is always going the extra mile for their consumers. BIC’s consumers are better informed: For example, BIC launched a major communication campaign to inform consumers about the quality and safety of BIC lighters. There are more communication between BIC and its consumers and changed its communications technology. Indeed, BIC uses the internet by creating buzz with the video “les perles du bac” and the social networks.
BIC uses the rational appeal that relates to the audience’s self-interest. Indeed, BIC insists on the values that the consumers want like the quality, performance and the right price. In order to develop its integrated communication strategy, BIC also uses celebrities. For example, to promote its shaver recycling program, BIC is launching a new advertising campaign in France, with the advertising agency Hemisphere droit. The campaign features the soccer player Eric Cantona. This operation “BIC recycle” to show the commitment of BIC to sustainable development and its advertising campaign featuring Eric Cantona.
This campaign helps French consumers recycle their BIC shavers. Choose two of your company’s ads and analyze them First ad: Communications objective and content: This is a Billboard advertisement for BIC razors. The advertisement is not very informative one as there is no writing involved all that can be seen is the BIC logo which if people were not familiar with the advert would not make much sense. What BIC is trying to communicate is how good their razors are by showing the giant razor cutting the grass and the difference it makes is shown clearly. Here BIC is using emotional appeal by making the advert humorous.
This advert is targeted at men and women of all ages who use razors but due to lack of information could fail to obtain the DA of the AIDA model. As the add has little or no writing it catches the attention of the audience and hold interest to find out what the advertisement is for as it is humorous but it does not exactly create a desire to go out and purchase the razor. First ad: Structure and format: BICs advertisement lets the audience draw the conclusion by not having any writing on the ad it leaves everything up to the audience and as how they want to perceive it.
It’s quite a simple print advertisement which is used for billboards so it is large in size. As there is not much to the advertisement the image speaks for itself really so presents its argument strongly and quickly. It is quite a one sided argument BIC doesn’t show any faults in the razor in the advertisement it is a simple advertisement which is trying to show how good their product is, how close it shaves. Second ad: Communication objective and content: The second advertisement we looked at is a video which BIC made to also promote their razors: http://www. youtube. com/watch? v=9m-470k1tzU
This advertisement is targeted at men as it is promoting their new flex 3 men’s razor. To promote this new product they show a man who is completely shaving himself like a swimmer does but then turns out he is going to be a human curl so the advertisement is using emotional appeal by using humor to get the attention of the audience. As the man has shaved his head made to look like a curl he then goes on to win against the other team who all have full heads of hair by sliding along the ice as a human curl, they also go on to show men celebrating the win and they all have various designs either in heir hair or on their hairy chest which is implied that they had shaved the design using the BIC razor. This emotional appeal easily attracts attention and interest to the product and as the point is made with the use of the phrase “surprisingly smooth glide” it creates desires to actually try the product for them. Second ad: Structure and format This advertisement draws the conclusion for the audience by using the phrase “surprisingly smooth glide” after the man glides along the ice after using the new BIC razor to shaving his body and head.
This goes on to emphasize how close a shave you’ll get from using the product. Their argument is quite one-sided as is does not fault the product in any way. There strongest argument it made at the end with the help of the phrase by clearly stating how smooth a shave you’ll have from using the flex 3 razor. “Push” or “Pull” promotion strategy Using BIC promotional mix element, we are able to see that BIC uses both “PUSH” and “PULL” promotion strategies with their markets. Advertising Using the logo on their simple products e. g.
Lighters got the name recognized for bigger material. BIC used this technique by giving the lighters for free to get the name recognized, it cost the company little but earned them more in other lines of the company by recognition. This was a PULL factor. Personal selling BIC’s biggest markets are wholesalers, here the sell to distributors which then sell to smaller companies or to the general public. They use direct salesperson calling onto large retailers. This is a PUSH factor. Sales promotion In sales promotion BIC uses the PUSH and PULL.
With sales promotions such as “but one get one free” BIC are using this technique as a PUSH factor and directly selling to the consumer. One of BIC pull factor is advertising and sponsorship, using the brand name BIC SPORTS at sport events. BIC SPORTS are using this opportunity to be recognizes, pulling the audience into their market. PR: BIC uses their website to keep the market updated on on-going events and news on the sports which they supply for. Using this technique BIC SPORTS are keeping the market involved with the company and crates loyalty with in the market, this is also a PULL factor.
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