Tela-tel is a telemarketing company specializing in manufacturing and selling mobile phones. Our marketing strategy is designed to ensure that the organization's future and the organization's defined goals are met. This includes the organization's long-term goal of emphasizing the goals and direction of the organization. It is designed to outline the company's esoteric product culture and define the results of various activities of the company.
The case study of HBR in October 2016 is about the history of Tera for 5 years in Peru. Tera manufactures ponchos made from locally sustainable materials in Peru, and their rival Sila manufactures cheaper materials in Bangladesh. The age of Saira is higher and has a market share of about 60% Tela appears only in Peru, a country without Saira. Both companies will bear social responsibility and Saira will donate ponchos to each poncho to sell. Tara teaches to weave local workers. Saira's cloak cost is between $ 60 and $ 100, Tela's price is $ 40 to $ 70. Tela is not sure which side of the brand you should advertise.
Will consumers understand Tela's cost structure? Do you recognize that customers can cut costs by making donations and less investment in marketing (compared to Saira)? Or do they think Tela did not give enough compensation to workers? ("Consumers think low-priced products are low quality products.") The demand curve shows that low prices are equal to high demand. However, this is not the case if the higher the price is reputed or the image is high, or if the consumer infer the quality from the price. The latter may be the case for Tera and Sila.
Using Saira as a simulation proves that this strategy is feasible. However, Tela needs to be careful. Consumers may consider this to be imitators. Otherwise, the information becomes too complicated. They can easily alleviate this problem by clearly advertising what they are doing; support local entrepreneurs and workers. For example, the marketing slogan will focus on the fact that "for every poncho we buy we rely on 10% for Peru's workers education." This should be supported by other promotional tools such as public relations and sales (see Marketing Principles outlined by Kotler). However, this obviously increases the cost (as indicated by Sayala) because it does not assume a higher cost limit requirement than it is a problem. However, in terms of price improvement, Tela is not considered to be commercial and you need to pay close attention so that you do not lose social images.