Marketing Strategy of Ayala Corporation

Ayala Corporation Marketing Strategy

by Shamsul
Ayala Corporation
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Marketing Strategy of Ayala Corporation


Ayala Corporation is the most popular and oldest Pilipino conglomerate, which the Zobel de Ayala family owns. The organization has evolved immensely and has several non-family shareholders. Today, we will discuss the marketing strategy and marketing mix of Ayala Corporation. The marketing mix covers 4Ps that are generally referred to as Product, Price, Place, and Promotion. This method enables a company to identify its marketing mix factors, pricing strategies, distribution and place strategies, and product strategies.

For making a successful marketing strategy, managers at Ayala Corporation need to understand the customers’ basic requirements. They must customize their services or products that can meet those requirements.


Objectives of Different Types of Marketing Strategies of Ayala Corporation:

  • Launch a New Product or Service:

Introducing a new product or service and highlighting its features, uniqueness, and superior quality.

  • Establish the Brands of Ayala Corporation:

Brand positioning is an important part of marketing and many companies spend heavily on this factor.

  • Increase Market Cap:

Marketing tactics can also be used to increase the value of the brand and its market share. It is possible by increasing sales.

  • Enhance Customer Loyalty:

Marketing can be used to attract both existing and new customers. It also helps to enhance customer loyalty toward the brand. An organization can organize events, provide information about products and services to increase customer loyalty.

  • Increase Sales:

To increase sales of existing products, marketing is a useful tool. It also helps to target a new segment of customers and positions the brand in the competitive market.

  • Bring in New Buyers:

Marketing also helps to enter new markets and boost sales. As a result, it helps to bring in new customers.

  • Get Existing Customers:

Selling accessories with the existing products is another way of marketing that helps to retain existing customers. It can also be done by increasing the usage rate of the existing products.


Definition of Marketing:

According to AMA (American Marketing Association), marketing is a combination of different activities that a company assumes to deliver, create, and communicate services and products that are valuable for customers, society, stakeholders, suppliers, and clients. According to Kotler, marketing is a practice through which organizations like Ayala Corporation can produce value for their existing and new customers.


5 Stages of Marketing Strategy Process:

The role of traditional marketing has shrunk due to the rise of AI-driven algorithms that offers marketers to measure different aspects of the market and customers. The culture of digital marketing is very useful for marketers, but creating a new market is still very overwhelming. Here are 5 stages of the marketing strategy process of Ayala Corporation,

5 Steps

  • 01 – Marketing Research and Analysis
  • 02 – Segmentation, Targeting and Positioning
  • 03 – Marketing Plan
  • 04 – Designing a Marketing Mix using Product, Price, Place and Promotion (4Ps)
  • 05 – Sustaining Value through Post-Purchase Services

Step 01 – Marketing Research & Analysis

Doing analysis and research is the first step in the marketing strategy process of Ayala Corporation. In this step, the organization needs to understand the unknown and even unmet requirements of customers. In order to comprehensively complete the research and analysis process, it is imperative to conduct a 5C marketing analysis framework that encompasses,

  • Customers’ Requirements:

What are the major requirements that Ayala Corporation needs to complete? Who are the potential and existing customers of new services or products?

  • Company:

What qualities or skills does the organization need to have to manufacture products that can easily satisfy customers?

  • Competitors:

Who are the biggest competitors of Ayala Corporation in the market? Do they have enough resources and a financial budget to give Ayala Corporation strong competition?

  • Collaborators:

What kind of value chain and supply chain partners Ayala Corporation needs to produce new products and provide them to the final consumer? What are the bargaining powers of the value and supply chain partners?

  • Context:

What are the micro and macro environment factors that can hurt the business environment in which Ayala Corporation works in?

Step 02 – Selecting Target Customer Segment

  • Segmentation:

Managers at Ayala Corporation can divide the big market into smaller segments in order to comprehensively understand the customer behavior, needs, and characteristics. They can divide the market on the following basis,

  1. Geographic
  2. Demographic
  3. Status
  4. Income
  5. Usage
  6. Loyalty
  7. Gender
  8. Social class
  9. Psychographic factors
  10. Self-perception

PRIZM is one of the widely used segmentation systems. It is used by advertising and marketing agencies.

  • Targeting:

After dividing the whole market into segments, it is necessary for Ayala Corporation to select a target segment. Targeting everyone is unnecessary because a product only holds a specific value proposition.

  • Conducting a Segment Analysis:

Conducting a segment attractiveness analysis is the initial factor in targeting. Under this process, all the segments are analyzed on the following basis,

  • Customer loyalty and behavior analysis:

It is vital to find out the customer behavior in each segment in order to dig out opportunities. It is also important to evaluate the customer conversion rate in order to find out the loyalty level.

  • Maturity of the market:

Let’s take an example of this process from the automobile industry. The demand for SUV cars is high than for electric vehicles. It means the SUV category is mature even though the profit margin is limited. But, anyone can predict the future of SUVs. The EV segment has higher margins, but it isn’t easy to guess its future.

  • Profitability in several segments:

As the above example shows, some segments show higher margins as compared to others.

  • Business models and types of competitions:

The way of competition also shapes the whole landscape of a market. The company needs a robust business model that can work in every market.

  • Differentiating and Positioning:

In this process, it is necessary to study how Ayala Corporation’s products or services differ from its competitors. Positioning is a process that involves where Ayala Corporation wants to see itself on the basis of functions, features, and qualities.


Step 03 – Making a Marketing Plan

  • Marketing Objectives:

There are plenty of objectives for which Ayala Corporation managers can create marketing plans, such as the launch of a new product, targeting new customers, venturing into international markets, repositioning of the brand etc.

  • Financial and Marketing Goals:

The second step assesses how much economic resources will be needed to perform the marketing plan. It involves a chain of processes like resources spent on a product from development to the final stage.

  • Marketing Mix:

Creating a marketing mix lies in the marketing plan goals and restrictions forced upon it by the economic resources.

  • Marketing Budget:

Budget each prospective activity that’ll be undertaken under the marketing mix process.

  • Evaluating and Monitoring Performance:

This is the last process that monitors and evaluates each marketing mix activity and compares it with the actual one.


Step 04 – 4Ps of Marketing Mix Ayala Corporation

  • Product:

Understand all the market dynamics and customers’ needs and develop the right appealing products for customers.

  • Place:

Analyze customers’ purchasing behavior and supply chain network costs to take a channel decision.

  • Promotion:

Connect with consumers through benefits and cases. It should be based on experience, not on the external features of a product.

  • Price:

To evaluate the price, you need to figure out several factors such as marketing strategy, firm position, brand positioning, and cost structure of the brand.


Step 05 – Post-Purchase Services of Ayala Corporation

The action required to attract and retain customers is very difficult and costly. The last step is crucial for retaining loyalty among customers. There are countless methods to enhance the post-purchase experience of customers,

  1. Offering spare parts and regular maintenance service if consumers want.
  2. Taking feedback and reviews and asking for suggestions.
  3. Providing installation and other similar services.
  4. Building spaces where consumers can share feedback and experience to assist other customers.
  5. Giving product care suggestions.

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