marketing mix with 2 EPRG approach and a comparison with two companies

1. Marketing Mix
Topic-Price
Company-Coca Cola(Ethnocentric)
Company-Pepsi(Polycentric)

2. What is marketing mix
• The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical marketing
mix - Price, Product, Promotion and Place. Price: refers to the value that is put for
a product.
• The four Ps of marketing are the key factors that are involved in the marketing of
a good or service. They are the product, price, place, and promotion of a good or
service.
• One of the best-known models is the 4Ps of Marketing, which helps you define
your marketing options in terms of product, place, price, and promotion.
• The term often refers to a common classification that began as the four Ps:
product, price, placement, and promotion. Effective marketing touches on a
broad range of areas as opposed to fixating on one message
• The above information tells what marketing mix is about.

3. • Remember, the purpose of the marketing mix is to find the right
combination of product, price, promotion, and distribution (place) so
that a company can gain and maintain advantage over competitors.
• The price of a product online determines how much margin that
product will make, a portion of which can be used for marketing. If
the product has high margins, marketers have more money to market
a product. However, if a product has lower margins, there is less
money for a marketing strategy

4. Marketing mix (Price)
• Pricing is one of the four main elements of the marketing mix. Pricing is the
only revenue-generating element in the marketing mix (the other three
elements are cost centers—that is, they add to a company’s cost). Pricing is
strongly linked to the business model.
• The business model is a conceptual representation of the company’s
revenue streams. Any significant changes in the price will affect the viability
of a particular business model.
• A well-chosen price should accomplish three goals:achieve the company’s
financial goals (profitability)
• fit within the realities of the marketplace (customers are willing and able to
pay the set price)
• support a product’s positioning and be consistent with the other variables
in the marketing mix (product quality, distribution issues, promotion
challenges)

5. • In the words of Philip Kotler, “Price is the marketing-mix element that produces
revenue; the others produce costs.” Because it is a marketing activity fundamentally
different than the others, it is important that the implications of pricing's uniqueness
be fully understood.
• The price of a product online determines how much margin that product will make, a
portion of which can be used for marketing. If the product has high
margins, marketers have more money to market a product. However, if a product has
lower margins, there is less money for a marketing strategy.
• The combination of different 'price related variables' chosen by a firm to fix
the price of its product is called Price Mix. Price related variables
include pricing objectives, cost of product, competitor's price, profit margin
etc. Price is the amount of money customers have to pay to obtain the product.
• A price is the (usually not negative) quantity of payment or compensation given by
one party to another in return for one unit of goods or services. A price is influenced
by production costs, supply of the desired item, and demand for the product.

6. What is EPRG approach?
• EPRG stand for Ethnocentric, Polycentric, Regiocentric, and Geocentric. It is a framework
created by Howard V Perlmuter and Wind and Douglas in 1969. It is designed to be used in
an internationalization process of businesses and mainly addresses how companies view
international management orientations.
• According to the EPRG Framework (or the EPRG Model), there are four management
approaches that an organization can take to get more involved in international business
substantially.
• The EPRG Framework suggests that companies must decide which approach is most
suitable for achieving successful results in countries abroad. For this reason, the EPRG
Framework can be a useful tool to utilize if a company does not know yet how to manage
business activities between companies in the local country and a host country. The EPRG
Framework is additionally useful for making strategic decisions.
• In the following section of this article, the four approaches of the EPRG Framework
(Ethnocentric, Polycentric, Regiocentric, and Geocentric) are described more in detail.

7. Ethnocentric Approach
• Ethnocentric orientation is the approach whereby an organization believes that
the practices of the organization within their domestic market should drive their
international strategy. Polycentric orientation is when an organization
understands that every international market requires its own unique approach.
• This involves home country orientation that is domestic operations are
considered more important than international operations.
• The research and development program are focused on domestic customers.
• This is also called as domestic marketing extension concept.
• It treats foreign revenue as an add on to their domestic revenue.
• Extension pricing does not respond to the competitive and market conditions of
each national market and, therefore, does not maximize the company’s profits in
each national market.

8. • Ethnocentrism means that one may see his/her own culture as the correct way of living.
For those who have not experienced other cultures in depth can be said to
be ethnocentric if they feel that their lives are the most natural way of living.
• The belief in the inherent superiority of one's own ethnic group of culture ; Thinking
your culture is better than the rest. This topic is important because it shows how we see
each other and how we feel about the differences in between.
• Ethnocentrism has its important functions as well. Even though it may cause external
conflicts, it creates internal unity. It also makes individuals feel more certain about their
beliefs. Through providing individuals with a sense of belonging to a particular
community, ethnocentrism enables social order.

9. Ethnocentric Approach towards pricing Nissan
• In India, Nissan started its operations in 2005 by means of a wholly owned
subsidiary, Nissan Motor India Private Limited. The first Nissan car that was launched
in the country by this Indian wing was the brawny compact crossover SUV, Nissan X-
Trail, imported via the CBU (Completely Built Unit) route in India.
• Nissan’s ethnocentric orientation was quite apparent during its first years of
exporting cars and trucks in United States.
• Designed for mid Japanese winters, the vehicles were difficult to start in many parts
of the US during the cold winter months.
• In northern Japan many car owners would put blankets over their hoods of their cars
and they expected Americans would do the same.
• Nissan concentrated to make more comfortable to the people who love to ride fast
as they gave more cc engines to their cars so that people can ride

10. • As Nissan when we come to Indian the company has many variants for their customers they are
as follows.
• Nissan Micra. Starting at Rs 1.95 Lakh.
• Nissan Micra Active. Starting at Rs 3.1 Lakh.
• Nissan Sunny. Starting at Rs 3.2 Lakh.
• Nissan Terrano. Starting at Rs 4.15 Lakh.
• Nissan Evalia. Starting at Rs 4.5 Lakh.
• All Nissan Micra Reviews. The car has very good engine it is like a tiny monster
perfect for Indian roads, with very low maintenance, have some doubt about
roadside assistance, and spares, more opportunities in interior modifications...
overall very good car for 5 members family. So this car will a perfect car for the a
small family and the price is also low compared to other brands so the sale of this car
is more in India as the budget is low and with more features.
• The Nissan cars are n a recent Telegraph survey, Nissan came tenth in the most
reliable cars of 2017, with 98 problems per 100 vehicles. Reliability Index have
put Nissan ninth out of 32 brands for reliability, with a reliability index of 88.
Ethnocentric:
Home country is
Superior, sees
Similarities in foreign
Countries

11. • A Nissan from 1990–2004 is more durable and reliable than any other new one.
The manufacturer needed to increase profits so they decided to start
using cheaper parts. All their previous CEOs got the company more and more
bankrupt until Renault came along.
• The demand of the niccan cars is growing in Indian since the are giving more
features in their car in low price.
• Thus they are adopting the new battery cars features soon in 2021 end so that
the consumers can buy since the pricing will be more low and due to this the
nature will be also protected.
• So the cars are made according to the customers need as the recherché is done
on domestic stage.
• The focus of niccan is on the preference of the customers that the people prefer
to travel with as a rough and tough car.
• Thus the company focus on the county first then the foreign production.

12. • The company production is different compared to foreign production thus it is an
foreign company the company sale is tough to the foreign production thus the
models and cars are made according to the reach arch of the customers.
• The above are the prices that coca cola serves to the Indian consumers keeping
all the variants for the consumers and for different purpose.
• Local people work more in ethnocentric approach.
• The locals understand the market environments in their home-countries better
than expatriates do.

13. Sale in India Sale in united states of America

14. • The sale on Nissan in India from 2000-2019 is in the above slide thus the sale is more
in 2016 thus the up gradation and the company started to make models that are
similar to other and the pricing strategy was compared low with more features at the
start they started with their old concept after that set up there manufacturing unit in
India they studied the domestic area what are the preference of people what kind of
cars does people prefer what features they want to be in their car so they carried on
make good cars thus the sale was low compared to usa but there are sales.
• Thus in 2021 the is a peak time since they are introducing a min xuv compared to all
mini xuv they are many more features which compared to Mahindra Hyundai Tata ets
thus consumers will go more with Nissan.
• Thus you can see in both graph they are less sales after a certain period for Indian
2017 and in usa 2010.
• Thus company need to have many difference in Indian in the pricing sector.
• Nissan Group also announced total calendar year 2019 U.S. sales of 1,345,681 units, a
decrease of 9.9 percent compared to the prior year.

15. • Nissan's woes continued as it posted an eighth straight quarterly decline,
with sales dropping 19% in the last three months of 2020.
• Low demand forces Nissan to sell below competing vehicles. But low
demand is usually the result of a poor reputation which is the result of inferior quality.
• "We are in a position that we are no more able to operate that plant," said Ashwani
Gupta, chief operating officer, Nissan Motor Corp. It is much worse off in India. In fiscal
2020, Nissan sold less than 5000 units in India registering a 34 per cent decline over
the previous year.
• The main reason for the failure of the car was Nissan's pathetic after sales service. ...
Renault and Nissan had same cars with just different badges. The small market share
that Nissan had was also eaten up by its own partner and rival Renault. This finally led
to downfall of both the brands.
• Nissan Group also announced total calendar year 2019 U.S. sales of 1,345,681 units, a
decrease of 9.9 percent compared to the prior year.

16. • In a recent Telegraph survey, Nissan came tenth in the most reliable cars of 2017, with
98 problems per 100 vehicles. Reliability Index have put Nissan ninth out of
32 brands for reliability, with a reliability index of 88. This is much better than the
industry average (the lower the score, the better the reliability.
• Nissan Reliability Rating Breakdown. The Nissan Reliability Rating is 4.0 out of
5.0, which ranks it 9th out of 32 for all car brands. This rating is based on an
average across 345 unique models. The average annual repair cost for
a Nissan is $500, which means it has above average ownership costs.
• Top Selling Vehicles by Brand in the USA in 2017 – Nissan
• 1 – Nissan Rogue.
• 2 – Nissan Altima.
• 3 – Nissan Sentra.
• 4 – Nissan Versa.
• 5 – Nissan Pathfinder.
• Thus the above are the most selling cars in usa thus the Indian variants are different.
• The selling are different since the models are different but the total sales in more than
the usa.

17. Polycentric Approach
• This implies an orientation where international operations are
considered more important than domestic operations.
• It is also called as multi-domestic marketing concept and it is the
opposite of ethnocentric approach.
• In this the market believes that each market is unique in nature and
hence organizations make subsidiaries in different countries that are
allowed to manage the operations fit for the respective country.
• having more than one center (as of development or control) such as.
a having several centromeres polycentric chromosomes.

18. • Polycentric is an English adjective, meaning "having more than one center," derived from
the Greek words polús ("many") and kentrikós ("center"). Polycentricism
(or polycentricism) is the abstract noun formed from polycentric.
• In intercultural competence the term polycentrism is understood as attitude and openness
towards other cultures, opinions and ways of life: when intercultural actions and
correlations are interpreted not only with the background of own cultural experiences, but
when the independence of other cultures.
• A polycentric attitude is the view that the managers in the host country know the best
work approaches and practices for running their business. And a geocentric attitude is a
world-oriented view that focuses on using the best approaches and people from around
the globe.
• Polycentricism, a governance system in which multiple governing bodies interact to make
and enforce rules within a specific policy arena or location, is considered to be one of the
best ways to achieve collective action in the face of disturbance change.

19. • The Polycentric Approach is the international recruitment method wherein the HR recruits
the personnel for the international businesses. In Polycentric Approach, the nationals of
the host country are recruited for the managerial positions to carry out the operations of
the subsidiary company.
• The Polycentric Approach is the international recruitment method wherein the HR recruits
the personnel for the international businesses.
• In Polycentric Approach, the nationals of the host country are recruited for the managerial
positions to carry out the operations of the subsidiary company.
• The rationale behind this approach is that the locals of the host country know their culture
better and can run the business more efficiently as compared to their foreign
counterparts.

20. Polycentric Approach towards pricing coca cola
• Coke additionally utilizes the international pricing strategy. For example, the cost
of a 2-liter container of Coke in the United States is unique in relation to the cost
of a similar item in China. This needs to do with the distinction in financial
conditions, aggressive circumstances, and laws.
• Along these lines, Coca Cola has been following different evaluating procedures in
view of the necessity and considering the presentation of new items focusing on
various gathering of people.
• In this approach the coca cola looks international more thus the more amount of
coca cola has drunk in this countries like usa Australia.
• In this approach in totally opposite to ethnocentric approach this this looks more
towards host country organization.
• The plastic bottles are used less compared to Indian .

21. • Coca cola's staffing follows polycentric approach for managerial positions because
they "Think Globally and act locally”.
• In polycentric organization or management or managers see each country as unique
and consider that business are best run locally.
• Polycentric management means that the head office place little control on their
activities in each market and there is a little attempt to make use of ant good ideas
or best practices for other market.
• Polycentric strategy is a staffing approach in which host-country nationals are
favored on key management positions in the company’s subsidiaries. In this regard,
the host-country nationals are recommended at the expense of the parent-country
nationals.
• This strategy ensures that there is a minimal interference of the parent company to
the subsidiaries’ management (Colakoglu, Tarique & Caligiuri 2009).
• The strategy is appropriate when subsidiaries are located in market environments
with significant national differences as a result of consumer preferences, technical
standards or legal reasons.

22. • The Coca Cola Company uses polycentric strategy to provide the subsidiaries with the
independence and freedom conducting their business operations in accordance to their
product market environments.
• It also uses this strategy in order to give local businesses an opportunity to develop their
most suitable HR practices.
• Polycentric strategy has various advantages. One of the pluses is that it facilitates the
company to advance a management team in its subsidiaries with a thorough
understanding of the competitive, cultural and national environment.
• The management is also familiar with the nationals’ native languages. Another advantage
is that it enables the Coca Cola Company to reduce the costs needed for the employment
process.
• Polycentrism also enhances motivation of the employees as it provides the local
nationals with a chance to develop in their career ladders (Colakoglu, Tarique & Caligiuri
2009).

23. • When polycentric strategy is not applicable, companies should use a geocentric one
then. Finally, the study also recommends to utilize an ethnocentric strategy should as
the last resort when the other two approaches failed.
• It may also make difficulties to HCN managers when it comes to relocating to other
subsidiaries or the parent company.
• However, the major drawback of polycentrism is that it creates challenges in aligning
the activities and goals of the parent company and the subsidiary (Tian 2007).
.Moreover, host-country governments may favor home-country nationals in the
multinational companies’ subsidiary.
Additionally, the locals understand the market environments in their home-countries
better than expatriates do.

24. • More amount of tin cans are used thus this countries to protect
nature.
• Thus the amount of people over hear prefer coke with their meals.
• There is a huge difference.
• Hear the company calculates price according to the making cost thus
tin is used so the making cost is comparatively high.
• The above are the prices compared $-usa Rupees-India.
Diet Coke 20 oz. Bottle $1.89/138.72rs
Diet Coke Caffeine
Free
20 oz. Bottle $1.89/138.72rs
Coca-Cola 1L Bottle $1.99/146.06rs
Coca-Cola 2L Bottle $1.99/146.06rs

25. • So we can see hoe much is the difference between India and usa since
more use of tin is done in usa.
• The graph tell us about sale income and cost of goods
Thus we can see that in usa from 2013 to 2017
The sale of the product and the earning of the
Product.
Thus in another graph there will be sale in
Indian and earning in India so that a
companion can be done on this.

26. Sale in India of coca cola
• Thus comparing to other countries
India is the second for best sell of
coca cola.
• As you can see in 2014 17.33
billion rupees
• 2015-2016-17.55 sale and the net
profit as we can see that it was
drop in 2015 and 2017.
• But soon the coca cola company
came up with 5.54 net profit in
2018.
• Thus these are the facts and
figures of coca cola in Indian
market.

27. • Thus coca cola demand is more in foreign international country so the parent
company focus more in their foreign countries
• In this the marketer believes that each market is unique in nature and hens
organization make subsidiaries in different countries that are allowed to
manage the operations fit the opposite county
• Thus this was the polycentric approach towards the coca cola company.