MARKETING OF SERVICES

CASE ANALYSIS ON SERVICE MARKETING AND SALES AT VANDERLANDE

INDUSTRIES
Vanderlande is the global market leader for value-added logistic process automation at airports, and
in the parcel market. The company is also a leading supplier of process automation solutions for
warehouses. Vanderlande Industries needs to develop marketing mix strategies to achieve its
desired results within the market that it serves. By developing strategies that address the various
aspects of each element, Vanderlande Industries will be able to achieve its broad marketing
strategy.

NEW SERVICE INNOVATION

 Even though the company collaborates with other firms and provides the services to the existing
customers still the company has to innovate and provide the services which will differentiate
them from other firms.
 Service innovation means changing the way you serve your customers to create greater value for
them and deliver more revenue for your organization.

NEW SERVICE DEVELOPMENT PROCESS

 Business strategy development
The company has to review its vision and mission to understand what they have to do further.
The firm has to seek to be innovative in nature and has to find the opportunities to innovative
the service. The analysers of the firm have to maintain the stability and cost leadership strategy
has to be reviewed.
 New service strategy development
By understanding the new service development strategy, the firm will be in a better position
where they can come up the new ideas that can be formed into a better shape.
 Idea generation
There are many ways or methods through which new ideas can be generated that is by
interacting with others (the employees of the same company, friends, colleague, public etc) or
by the creative techniques it is possible to come up with new ideas.
 Concept development and evaluation
Once the idea is generating it has to further develop into a concept that will have a complete
information. Evaluation is done both by employees of the companies as well as by people. Once
the concept is developed it can be tested and evaluated by the employees to know whether it is
good and favourable and as far as to people if the concept satisfies, they it is good for the firm.

NAINISH KUMAR MISHRA

20182MBA9004
 MARKETING OF SERVICES

 Business analysis
Further the concept has to be analysed in both the terms that is marketing assessment as well
as financial assessment.
o In Marketing assessment, the firm has to identify its target market, forecast the sales
volume, indicate the product or service positioning, what is the competitor reaction.
o In Financial assessment the firm has to analyse sales volume and value, incremental fixed
cost, contribution and profitability of the new service.
 Implementation
Once the new service concept is succeeded through above mentioned stages now it can be
implemented effectively. It has certain stages where the concept has to go through in order for
the concept to be implemented.
o Service development and testing
o Marketing testing
o Commercialization
o Post-introduction evaluation
 Service development and testing
The new service which has been developed by the firm it has to be tested and the complete
service blueprint of the new service has to be present as service blueprint provides the firm the
direction how the services has to be delivered to the customers from the very beginning to the
end.
 Marketing testing
The marketing test is done to know how the product service will be received on a wider scale.
Marketing test helps to ensure that the firm marketing strategy are sound, and it can provide the
valuable information on customer response.
 Commercialization
Now the new service is introduced in the market. The has two objectives when the new service
is introduced in the market that is built and maintain the acceptance of the new services among
the customers and other one is that the firm has to continuously monitor the new services when
it is introduced and if there any problem it has to be solved.
 Post introduction evaluation
Once the service is introduced it has to be monitored and evaluated continuously. The services
have to be reviewed and changes has to be done as it will satisfy the customers effectively.
NAINISH KUMAR MISHRA
20182MBA9004
 MARKETING OF SERVICES

An analysis of the 7 elements of the marketing mix and recommended strategies among each
for Vanderlande Industries are as follows:
PRODUCT
 Vanderlande Industries sells its products under 5 broad categories, and each of these serves as
separate product lines. All of its products are sold under the brand name of Vanderlande
Industries.
 It should sell products with a lot of variety available, which allows customers to select the
product variety that best suits them.
 It should sell products that are highly differentiated, with various features offered to customers
that competitors don’t offer. Its products are therefore considered to be unique.
 Its products are perceived to be of higher quality than that of competitors. Therefore, customers
are willing to pay a higher price for these.
 It should sell products that are famous for its traditional design that is also practical for
customers to use.
Recommended Product Strategy for Vanderlande Industries
 Vanderlande Industries should extend additional benefits for purchasing its products that
include warranties, delivery and credit, after-sales service, helpline services etc.
 It should introduce new products that are in line with the latest trends in the market. It should
identify opportunities within the market and introduce new products that make use of these
opportunities.
 It should test newly introduced products in test markets before going for full commercialization
of these and introduce widen its product portfolio, offering new product lines to fulfil customer
needs.
 It should improve its product packaging such that it is more convenient to transport and use. Its
packaging should also be visually appealing so that customers are attracted to it.

NAINISH KUMAR MISHRA

20182MBA9004
 MARKETING OF SERVICES

PRICE
The current pricing strategy to set the price level that Vanderlande Industries follows is a
competitive based pricing strategy. This is because the data on competitors is easily available due to
a large number of competitors that exists within the industry.
 Vanderlande Industries sells its products at a higher price than competitors. This is because it
offers more features, and the high price makes up for these.
 It also takes costs into consideration to set prices for a few products for which either information
is not available on competitors, or are costlier to make,
 It currently uses product bundle pricing as well, where products are bundled together and sold at
prices lower than the total of individual items.
 It also uses an optional product pricing strategy for certain products, where it offers a price for
the base product and separate prices for the accessories that come along with it.
 It charges a greater price for the products it sells online. This is because delivery costs have
been included in the price of the product.
 It has fixed the prices of the final product. Channel members; retailers and wholesalers, buy the
product at a lower price and earn through their own margins.
Recommended Price Strategy for Vanderlande Industries
 Vanderlande Industries should introduce discounts and allowances, where it lowers prices for a
short period of time in order to attract customers and gain market share. It can do this by
reducing a percentage off the price of its products.
 It should use psychological pricing where it prices products so that they seem to be lower; for
example, it can price a product worth $100 as $99 as people would consider this to be lower.
 It should introduce new products with a price penetration strategy where it offers an initial
lower price than competitors to gain market share. This will ensure that new products that are
introduced are used by and become more popular than that of competition.

NAINISH KUMAR MISHRA

20182MBA9004
 MARKETING OF SERVICES

PROMOTIONS
Vanderlande Industries uses multiple media channels to promote its products. It uses traditional
media, which includes an advertisement on television and radio. This is beneficial due to its large
reach and ability to attract a large number of people. It uses online and social media advertising,
which is cheaper and beneficial due to the increasing usage of the internet.
 It advertises on various social media platforms with a focus on YouTube, Facebook and Twitter
due to the high monthly usage of these. It has over one hundred thousand likes or customer
following on these pages, which are exposed to frequent content uploaded by Vanderlande
Industries.
 It undergoes various sales promotion taking part in various trade exhibitions and events around
the year.
 It undergoes personal selling, with a large sales force to increase its presence in retail stores.
 It uses a percentage of sales method to determine the promotions budget for the year.
Recommended Promotions Strategy for Vanderlande Industries
 Vanderlande Industries should hire influencers on social media such as bloggers or popular
TV/movie stars, and include them in its advertisements. Bloggers can post content on their
social media pages in order to promote Vanderlande Industries. TV/movie stars can be included
in advertisement commercials to increase acceptance of the product by customers.
 It should initiate an advertising campaign where a consistent message is provided to customers
on all media platforms. This will help increase awareness for the brand within the minds of the
customers.
 It should undergo various digital marketing technique in order to improve the online traffic on
its website. These include a banner advertisement, Search Engine Optimization and creating its
blog.
 It should make social media posts that are more relevant to its target audience. The posts should
also be such that they encourage further action by customers such as sharing the posts with
friends or leaving feedback in the form of comments. These should incorporate the latest social
media trends such as hashtags, memes etc.
 It should start collecting data on customers and start sending them messages through email or
SMS, which will eventually result in repeat purchase by customers.

NAINISH KUMAR MISHRA

20182MBA9004
 MARKETING OF SERVICES

PEOPLE
 Vanderlande Industries has people working under its sales team that play a vital role in its
marketing efforts. These people have been trained in persuasive techniques, but also to show
respect to the business customers taking into consideration their preferences.
 It has people working in its customer service department. These are contacted by customers in
case of any issues within the product, and these people guide customers through the process of
getting the issues resolved. These people are trained to respect the customers and try their best
to get their issues resolved.
 It has people working with suppliers to obtain raw materials. These people play a vital role in
maintaining or improving the quality of the final product produced.
 It has people working at retail stores who help the customer on site, by answering any questions
or helping them decide the product that best suits their needs.
Recommended People Strategy for Vanderlande Industries
 Vanderlande Industries should undergo trainings for its sales force, customer services and
purchasing people as these play a vital role in delivering value to the customers.
 It should provide incentives to its sales force through bonuses for meeting targets, or through
commissions for the sales made.
 It should hire people that show respect towards customers, and are committed to the company.

NAINISH KUMAR MISHRA

20182MBA9004
 MARKETING OF SERVICES

PROCESS
 Vanderlande Industries to make sure that its products are always available at retail stores has
systems installed where retailers can notify when their inventory levels are low. Vanderlande
Industries provides them with more products while ordering its productions to replenish its
stock. This ensures that products are always available to customers when needed.
 It has an online delivery process, where orders are received in the computer system and based
on these orders, the relevant product from the inventory is shipped to the delivery service
provider.
 It is actively involved in researching market opportunities in order to understand customer
needs. It also develops understanding regarding customer needs through feedback collected at
store, its helpline or social media pages.
Recommended Process Strategy for Vanderlande Industries
 Vanderlande Industries should use computers across to handle its various process to increase
efficiency and timely delivery to customers.
 It should constantly look for ways to innovate and improve its processes in terms of efficiency
and cost. Costs savings would eventually lead to lower prices for its products.

PHYSICAL EVIDENCE
 Vanderlande Industries sells its products in a distinct colour packaging that easily identifiable
on retail shelves. These are placed on special shelves provided by the company, which also have
a distinct colour and design. This makes it easier for customers to locate such shelves in busy
retail stores.
 It has an online website that is user-friendly and allows customers to view its products in high
quality images taken from various angles.
Recommended Physical Evidence Strategy for Vanderlande Industries
 Vanderlande Industries should collect feedback from its customers regarding its packaging so
that it could improve on this.
 It should set up its own stores where it provides a shopper-friendly environment and ambience,
encouraging its customers to purchase its products.

NAINISH KUMAR MISHRA

20182MBA9004