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1. Introduction
In this discussion, the main aim is to analyze existing marketing mix and discussion on certain elements that are practiced by “Top glove corporation Bhd“. In addition, a recommendation is been given given the fact for improvement in its marketing mix that should be made by the management for enhancing its profitability. “Top glove corporation Bhd” is a Malaysian rubber gloves manufacturer and also manufactures “masks, dental dams, and other products” and is considered a specialist. This company operates and owns 50 manufacturing facilities in “Malaysia, Thailand, China, and Vietnam”.
The founder of Top Glove is “Lim Wee Chai” and was founded in 1991 with its headquarters in “Shah Alam, Malaysia“. Approx 20,000 employees are working at “Top glove corporation”. This is the first private company in Malaysia that has received “ISO 37001:2006 Anti-Bribery Management system (ABMS)”. Rubber manufacturers in Malaysia include multinationals, local smallholders, plantations, and joint ventures with other nations. The total rubber area is “1.07 million hectares” in Malaysia out of which 7.21% are generally owned by plantation companies. The export of rubber and related products in Malaysia was “RM 4.563 billion” with an increase of 1.01% in the year 2022; the total number is “RM 4.609 billion”.
2. Elements of marketing mix
| Elements | Analysis |
| Products | In marketing mix, product is considered as a fundamental component where companies need to address the market demand and based on that they use to develop product development strategy. According to Kee et al. , through the application of product strategy, a company reflects what is hopes to reflect and in which way they need too plan to do so. For example, Amazon has adopted a customer centric approach so that they can comply with the market demand and at the same time developed product development strategy that is purely customer focused. As a result they developed Kindle by keeping the demand of the customer to read book “on the go mode” and approached to the global audience. In this way, the company becomes able to gain competitive advantage in the international market. |
| Price | In marketing mix, element pricing is considered as the “revenue generating element” and directly related with the business model. Simply it refers to the value of the product that a consumer supposes to pay. Based on the elements companies mostly determine the price level supposed to be adopted, discounts to be offered and the range of credit must be allowed to the consumers. For example, Nike used “value based pricing and premium based pricing strategy”. Through the application of the first one Nike, consider the current market price while determining price range for the product. As results, they get to know what the consumers are willing to pay for a product and thus the brand become able to gain competitive advantage in the global footwear industry. |
| Promotion | In marketing mix, promotion is used as a marketing tool to create a communication medium in buyer and seller. Here sellers try to convince people to buy their services or product. The aim of promotion is to attract, aware and induce people, create preference to buy that specific product. For example, Samsung used social media platform to attract customers and introduce their innovative products. |
| Place | Here place refers to that specific position where people can buy product of a particular company. It is connected with marketing goods, at right place, and at right time. Henceforth, place strategy depends upon physical distribution and channel of distribution. For example, Tesla choose city side location where they developed stores and galleries where people can check newest edition of the company. Besides that they also developed official websites so that people can connect with the company though online mode. |
3. Marketing mix elements practiced by Top Glove Corporation Bhd
| Elements | Analysis |
| Products | “Top glove corporation” manufacturers products like “latex gloves, Nitrile gloves, surgical gloves, face masks, personal care”, and more products related to rubber. They are the world’s largest manufacturers of gloves, have established a “corporate culture and good business direction”, and consistently produce “high quality and cost-efficient gloves”. Their aim of providing high-quality products at reasonable prices is an essential aspect of the success of this firm in Malaysia as well as other nations as well. Their products were in huge demand during the COVID pandemic when the maximum number of businesses that failed to operate “Top glove” was driven for meeting their demand for products in Malaysia and other nations as well . Their products are well packaged and are easily available to target markets and are being sold by maximum retailers across the nation. Although their shares are going down as demand for medical gloves has normalized. |
| Price | The price of products of “Top glove” is below the price of its competitors. With their “dynamic pricing” strategy, they are on top of competitors in Malaysia. It is an approach of setting cost of their product highly flexible by considering demand and vulnerabilities of market. With this strategy, “Top glove” was able to have more control over the volume of sales of its product. Several other manufacturers generally use fixed pricing for their products, which increases the risk of losing profit or revenue for firm. By implementing a “dynamic pricing strategy” in a firm, they were able to mitigate these risks and earned reasonable profits. The ideal pricing strategy of “Top glove” helped them to attract and retain their customers as their pricing strategy was aligned with their business goals and aim. In addition, they also used a “competition-based pricing strategy” as they generally compete in a “highly saturated place”. This strategy is used by “Top glove” as slight price difference act as a deciding factor for customers available in international market. |
| Promotion | “Top gloves” promotes its product by constantly communicating information about its products with its target customers and market as well. They use effective advertising strategies to enhance the reach of their product through, newspapers, tele4visions, billboards, and online. Their effective “personal selling” techniques like telemarketing which require strong communication and interpersonal skills for understanding customers and backing them with their knowledge is also an important strategy used by them for promotion of their product. In addition, “direct marketing” techniques are also followed by them for the promotion of their product and are considered an effective way for engaging customers. |
| Place | “Top gloves” products are exported to approx 195 countries worldwide and are sold across every nation so that the products are easily available to customers. In Malaysia, retailers across nation sell their products due to they can reach a maximum number of customers across the nation and are easily available in market. They operate in “Malaysia, China, Vietnam, USA, Thailand, Germany, and Brazil” and have approx 2000 customers worldwide. Selling their products with retailers helped them to sell their products at every corner of Malaysia, which played a vital role in enhancing their reach. |
Analysis
For marketing, a new or certain product to a consumer promotion is an important aspect that helps in enhancing growth and sales of a product leading to an increase in profitability for the firm. Industries in Malaysia generally use “Billboard advertising and social media marketing” for promoting their products. Promotion at famous, tourist-attractive, and populated places like “Kuala Lumpur, Georgetown, Kuching, Malacca,”, and more is an important aspect of the promotion of products in Malaysia.
It is an essential aspect of marketing mix as focusing on places where companies prefer to sell their goods so that products are easily available to the target market and have high customer reach. Distributing products to retailers available in every part of country is followed by a majority of industries in Malaysia for availability of their products. There are several famous places in Malaysia which include “Kuala Lumpur, Georgetown, Kuching, and Malacca” that companies choose for selling their product. Malaysia has an ideal climate, soil, and required land for the production of rubber due to which now Malaysia is one of the largest exporters of Rubber.
Anyone that is directly or indirectly involved in rubber production provides suitable raw materials for products related to rubber manufacturers in Malaysia. Customer is an important aspect of this marketing mix as they are the people who buy products and service provided by the manufacturers. Customers of Malaysia wants good quality products at a reasonable price as there are lots of option for them. In addition, recruiting right people for the firm online and by email is done by industries in Malaysia.
4. Issues of marketing mix elements faced by company
“Top glove” invests in their product and buys packaging material for their firm for “RM 46.25 million”. Packaging is considered an essential aspect as it helps in keeping the product safe from “transport, handling, and storage”. In addition, the packaging of “Top glove” is attractive and reliable and helps in enhancing customer engagement for products. Customers nowadays are more attracted to packaging and attractive packaging helps them in attracting customers. In addition, they need to be more focused on enhancing their attractiveness in the packaging of a product. For enhancing, it “Top glove” is acquiring an entire stake in “Eastern Press Sdn Bhd” for an amount worth “RM 46.25 million”. This acquisition will help them to allow planning and better “lead time relation” with relation to the supply of materials for packaging for their products. In addition, it will also help in getting better cost and quality control over the materials for packaging.
| Risk | Impact | Likelihood | Outcome |
| Labour issues | 4 | 3 | 12 |
| Buybacks of share | 5 | 3 | 15 |
| Management issues | 3 | 2 | 6 |
| Product issues | 2 | 3 | 6 |
Gloves are manufactured with help of “dipping technology”. Their effective process of selling their products and manufacturing using the latest technology to meet the demand for products through their “operational efficiency” is a major factor. Efficiency in operation helps in saving time and money, which helps in enhancing profitability for the firm. Having an effective process for product manufacture and sale is an essential aspect that is taken care of by “Top Glove” . Through their effective customer service, they can achieve repeatable and consistent customers for their products. They maintain a high quality of products and reduce waste with their sustainable approach that enables them to reduce the cost of production with their efficiency in operations. In addition, operating in Malaysia enables them to run smoothly without any shortage of raw materials, as Malaysia itself is the largest exporter of Rubber worldwide.
Analysis
Labor issues is a major problem that “Top glove” is facing and they were charged by the “Malaysian Government” for failing to provide adequate shelter and amenities standards to labors working at the firm. It affected brand image of “Top glove” harshly as it is an international company and unable to fulfill basic requirements imitating a bad image of a firm toward their worker. An increase in wages of workers is also a major concern for “Top glove”. Buybacks of share is also a major concern faced by “Top Glove” as the share price of the company started losing due to a sudden decrease in demand for their gloves due to which management itself spent “RM 1.4 billion” to buy back their shares using an internal fund of the company.
The main purpose behind the buyback of shares was to reduce the number of “outstanding shares”. In addition, product issues like mainly focusing on one product which is their glove manufacturing is a major issue as due to a decrease in COVID the demand for gloves has also begun to decrease due to which they should mainly focus on manufacturing other rubber products. Management issue is also a point of concern for “Top glove” as hiring educated employees and increasing in wages of workers lead to certain management issues within the firm. Educated employees are essential for a firm to enhance its productivity of the firm and look after the efficient working of the workers. In addition, for communicating and resolving conflict within the firm educated employees are required.
5. Recommendation
Inclusion of Social media marketing to increase their other products
| Specific | Implementing social media marketing for the introduction of new products as demand for gloves is decreasing |
| Measurable | Tracking of progress by analyzing the progress of sales of other products sold by them |
| Achievable | Creating a specific goal or target that are to be sold in a specific period |
| Relevant | Providing high-quality rubber related products at a reasonable price in accordance with the main aim of the organization |
| Time-Bound | For keeping it accountable a target date of approx 2 months should be set to acknowledge the progress |
Justification
- Implementing social media marketing is necessary for increasing product exposure as “Top gloves” is mainly known for selling gloves. Due to this reason enhancing product exposure for other products is an essential element to be considered. Social media have a huge customer base due to which the maximum audience is targeted at once.
- Social media strategy helps in broadening goals of a business and supports working of the firm by implying effective strategies for customer attraction. It can be done by justifying benefits of the products and the “Unique selling proposition (USP)” of product . For enhancing awareness of a brand and interest in a company’s product implication of social media advertising is necessary.
- Social media is considered an effective platform for exposing new products to customers, which helps in enhancing customer reach for the products. One attractive strategy can help in boosting up sales of desired product of a firm and helps in creating an opportunity for a growing target audience for the product.
- Implication of Social media marketing is a cost-effective method, as it requires very less investment in comparison with traditional marketing strategies like billboards, print ads, handouts, and more. This will also help in decreasing extra expenses for advertisement of a product leading to an increase in profitability for the firm.
6. Summary
In conclusion, every element of the marketing mix is being discussed taking care of various perspectives related to “Top glove”. After analysis, it was found that pricing strategy of the company was effective enough and was determined to take care of all the competitors in the market helped them to expand in international market. “Top glove” provides high-quality products at a reasonable price due to which their products were in demand and are top of competitors’ lists. The company has taken certain steps for enhancing the quality of its product and with its operational efficiency; they can manufacture products in accordance with the demand of the market. Whereas “Top glove” need to increase its exposure to other rubber products as demand for gloves has decreased drastically affecting profitability of the company.