ASSIGNMENT THE MARKETING PLANNING PROCESS Student Name: Gulbaz Ahmad Student Id: M1003148 Module Title: Marketing Management London School of Business & Finance TABLE OF CONTENT S. NO| TOPICS| PG. NO| 1. | Executive Summary| 03| 2. | Introduction of PepsiCo | 04| 3. | Marketing Plan on Energy Drink| 06| 4. | PEST Analysis| 09| 5. | Porter Analysis| 10| 6. | SWOT Analysis| 11| 7. | Marketing Strategies| 12| 8. | Critical Reflections| 15| 9. | Conclusion| 21| 10. | References| 22| 11. | Links YouTube| 23|
Executive Summary PepsiCo have been operating in UK for the last 60 years during this span of time PepsiCo has introduced enormous food and snacks product in the UK region which has created a benchmark for other competitor. Now PepsiCo is starting to capture the youth of UK with the magic of their energy drink named as “STING”. PepsiCo UK has systematically developed an intensive marketing plan for the new product which comprised of all the relevant information that will be needed at the pre-launch and post-launching process.
The basic aim of PepsiCo energy is to capture maximum market share of energy drink in UK. Recent research has shown an increasing trend in the consumption of energy drink by 16% for that reason PepsiCo has started to prepare a marketing plan regarding to its energy drink. Intensive marketing and awareness promotional mix will use in product launch and initially free samples will be given to the target customer, the target audience will be comprised of youngster with age of 18—35. Discounted pricing strategy will be use to create market for the new product of PepsiCo.
Different types of model for environmental scanning have been used and will be used to develop appropriate strategy and these strategies will be evaluated and monitored through different tool and technique which will help to identify the trend analysis of the society as well as for the PepsiCo UK. Introduction of Company: Soft drink industry is one of the most thriving and vibrant industry in the world that have been rooted to many categories. Many product line extensions have been introduced under this single terminology.
But it’s the fact that two major key players in the soft industry are Coca-Cola and Pepsi with the largest market share of 51% and 40% respectively, these two have the strongest customer base in the world. Pepsi was initially known as “Brad drink”, this was invented by a pharmacist in late nineteen century in USA. Basically this drink was use to cure stomach pain but no one knows that this drink will become one of most popular carbonated drink of the world, after few years its original name was change by “Pepsi Cola”. (2) In mid of the 1950’s Pepsi was introduced in the UK and Ireland region.
Up till now this region has proved its potential in term of growth and most vibrant market in the soft drink industry, some new product such as Pepsi MAX have been launched by Pepsi Co in this UK region which has proven to be the best in growth and sales as compare to other region such as Asia, Canada etc. This strategy has encouraged the management of Pepsi co to consider UK as the most thriving part for product innovation and development. The most recent product innovation was done by Pepsi UK was launching new product by the name of Pepsi RAW which was the amalgamation of the soda water and other natural ingredient. 1) There are some other product has been introduced in UK region which haven’t launched anywhere else this have proved that UK market have enough capability to absorb product innovation and product development, this has encouraged the management of the Pepsi co. to introduce product such as: * Pepsi Twist * Pepsi Cino These strategies seem to be very pragmatic in UK which has proved its worth. Research held by a firm has claimed that more than 50% of the sales in UK of Pepsi co. are related to sugar free drink and flavoured soft drink such as Pepsi MAX and Twist.
Source: 1. http://www. pepsico. co. uk/pepsi-max 2. Wolburg, Joyce M. , “Double-Cola and Antitrust Issues: Staying Alive in the Soft Drink Wars, Journal of Consumer Affairs. Pepsi have an aggressive international advertising strategy in which they have taken many celebrities as a brand ambassador to create strong brand association. Pepsi have started its product diversification in 1965 after they have merged with Frito-lay. They have started to manufactured different snacks item for different region under the brand name of Pepsi co.
Some of the popular products are: * Lays * Cheetos * Quakers Different strategies have been used by the Pepsi co in order to supply and sell these snacks, along with these products parallel marketing was implemented for the beverages product. More than 140000+ workers have been working in PepsiCo and it has the largest market share in snack and beverages in many regions, there are 400 different products in 200 countries are introduced by Pepsi Co. Many mergers and acquisition have been made by PepsiCo which result in new product development and innovation.
These strategies have increased the profitability of the firm along with new target market and help to increase the market share. Energy Drinks Market In UK: According to the survey it has claimed that in carbonated drink Coca-cola is the market leader followed by PepsiCo and then proceeds by diluting drink by Robinsons. They are the main manufacturer, seller and retailer in the beverage industry. The UK region soft drink comprises of these classification: * Juice drinks and smoothies (? 1800m) * Carbonated drinks (? 2000m) * Sports and energy drinks (? 680m) Diluting drinks (squashes and cordials worth ? 441m * Adult soft drinks (? 110m) * Bottled water (? 585m) Recent survey has claimed that more than 16% value has been increased in energy drink category means this region has a vibrant potential to introduce new product by PepsiCo. MARKETING PLAN OF ENERGY DRINK ‘‘STING’’ The past experienced have shown that PepsiCo UK have faced success related to new product development for that reason and after analyzing the potential in the UK region PepsiCo wants to launch energy drink by the name of “STING ENERGY DRINK”.
This drink is already available in Vietnam and Malaysia. To launch STING in the UK region intensive marketing plan has been planned which will comprise of: * Marketing Objective * Market Analysis * Market Research * Evaluating the Research * Defining STP * Budget Estimation * Marketing Strategies * Implementing Strategy * Establishing Strategic Evaluation Model 1. Marketing Objective: In this part some realistic goals have been set for achieving further objective in near future these objectives will be achieved within 2 year. This span will allow PepsiCo UK to establish plan into realistic goal.
Like PepsiCo UK want to introduce new energy drink (existing product) into the mature market will need some heavy publicity in form of print media and other medium. These STING objectives can be categorized into three main categories: * Six Months Objective * Short Term more than 6 Months less than 24 Months * 24 Months Objective Six Months Objectives: STING energy drink will be publicized intensively to create awareness in the UK region and main targeted audience would youngster. All the movie theatre and clubs will be placing complementary drink of STING to its customer.
This will help to create awareness target audience and brand association by the name of Pepsi Co will be developed. Short Term Objectives: In UK different marketing mix will used in order increase sales during 12 month, sales target would be to gather maximum number of target customer and further sales would be increased by 15% on annual basis. The profitability of this product would increase by 25% in the last 18 month. After establishing proper position in the mind of customer as well as in the market, different survey and researches would be conducted in order to identify the changes related to customer needs and market.
After 2 year STING product should be competition with the major brand of UK such as Monster, Rock star, Red Bull and tiger. The main objective of Pepsi Co would be to create STING as one of the popular energy drink among new generation. Pepsi Co will try its level best to develop this vision of goals among its employees because they are the main essences of an organization, different temporary incentive will be awarded to each staff member to motivate them.
Pepsi Co believes that without effective communication with the staff these goals wouldn’t be achieved in time. 2. Market Analysis: Market analysis will be analyzed through secondary data because this will help to develop and identify strategy according to market condition. Like recent research have claimed that for the last two year trend in the energy drinks have been increased by 6% with the value of ? 550m and marketing of different energy drink has been increased by 15% nearly. 3. Market Research:
Research would be conducted before launching STING energy drink in the UK region, this research would help an organization to identify the opportunities and threats exist in the market, this would also help to analyze the need and wants of the target customer. This research would be conducted through some independent research organization which might provide some authentic and reliable data which will lead to estimate the future trend analysis. Marketing research would be conducted through questionnaires, mail survey and focus group interview.
The research process might take some time but it will superficially analyze the situation related to the potential of the new product offered by PepsiCo. This would help marketing manager to develop strategy accordingly which might help to achieve objective in a persistent manner. 4. Evaluation of the Researched Data: All the data that will obtained by PepsiCo UK will interpret and analyze the raw data in order to make strategy according to the situation and trend in the society The research will identify the wants and needs of current and potential patients and will help you to define your target audience.
This is also a good time to look back at the goals that has been developed earlier. Based on the collected data their might be possibility that goal might be modified according to condition. STING energy drink marketing plan will be identifying the potential vision for the new energy drink in the UK region, this planning would have a trifling effect after conducting a proper market research and its efficient analysis because this analysis would comprise of the following objectives: * Identify the difference between the PepsiCo and other competitors. Strength and weakness with context to other. * Competitors positioning in the market * Edges that might PepsiCo would be gaining through its new product. * This research would might help PepsiCo to identify the USP of the product or help to create those USP in order to gain advantage from other competitors. These competitive edge might be create due to USP of the product, the range of marketing mix PepsiCo will be offering to its target customer. PEST ANALYSIS Political Influences:
PepsiCo might confront different law related to food and drink; this might create hindrance in the product development process, other related law such as health safety act might have some impact on caffeine based product, there might be some European act might hinder the growth of the product. Working as a soft drink manufacturer might confront different kind of tax levy in the UK region. Economic Influences: Basic influential factor for PepsiCo UK might be the cost of manufacturing in such region for energy drink although PepsiCo have introduced its beverage through a local manufacturer which has given some advantages in cost of the product.
The economic impact of foreign exchange rates movements on them is complex because such changes are often linked to variability in real growth which wasn’t up to the expectation because of the financial meltdown; inflation was deflated by 0. 5%, interest rates was decreased up to 1% from the central bank of UK and some tax levies are expected from the government. Socio-Cultural Influences: PepsiCo always try to modify its product according to the current trends and need of the market, new energy drink STING campaign will be representing the current lifestyle of UK youth.
In order to make this plan effective different advertisement campaign will be launched on the basis of current lifestyle. According to the past research it has been reflected that current youth are toward more party lifestyle means “Chill out plans with friends in the weekend”. Technological Influences: PepsiCo have been working on different technological technique for many years in order to create vast portfolio in the global market, this is the fact PepsiCo have penetrate its product all around the world ranging from snacks to beverages and still developing new product in the market.
PORTER MODEL ANALYSIS Threat of New Entrants: Threat new competitor in the UK region is very much high. Because competition is very robust in this region many famous brands have penetrated in the market, but some of the famous is Red bull, Monster, Tiger etc. Threat of Substitute Products: As per analysis and past researches there is no such alternative of energy drink exist in the market but still vibrant competition could be faced by other product such as juice, tea, chocolate drink and milk. Bargaining Power of Suppliers:
In a recent research it has been analysed that bargaining power of supplier is quite low. PepsiCo UK might be requiring new relationship with the supplier because it’s a new energy drink in the market, saturation of the product might be high due to increased number of competitors. Bargaining Power of Buyers: This is the most crucial factor in this model it has been analysed that consumer need is hard to identify and difficult to main brand loyalty. PepsiCo has established its brand name for the last 40 years in the UK region but it’s very difficult to sustain the customer loyalty.
Therefore, in order to keep an edge from other competitor discounted price will be used to increase the attention of the target customer. Rivalry among Competitors: As per research red bull has more than 80% of the market share in the UK region which has created a monopoly in the energy drink market while rest of the market share is distributed in other competitors, rivalry among competitor is quite high because this sector has shown growth of 16% in the last year4.
There are some mature brand exist in the market such as tiger, monster, red bull, energy etc. 4= Food and drink site UK SWOT ANALYSIS Internal Features (Strengths & Weaknesses) PepsiCo has the strong brand name around the world in the beverage industry. Along with this strength Pepsi has the best distribution system in UK seems to be the best after Coca-Cola. These strengths might create an edge for STING energy drink in UK because effective supply chain management system does have some edges. External Features (Opportunities & Threats)
Biggest threat might be affect by competitor’s change of strategy that might affect the product position, change in lifestyle might be consider as a threat for an energy drink and most important government act related to the food and safety might change. Therefore, PepsiCo will revise its marketing plan according to the situation and need of the market. As for the customer base, UK region is the best for energy drink market as per analysis its customer base comprised of youngster comprise from 18-35 age.
PepsiCo have started to manufacture its beverages in the UK region with the help of third party this strategy have enable to maintain cost of the product at minimum level. After analysing the market for Vietnam and Malaysian region target audience will be the same in UK i. e. age will be ranging from 18—35, young people will be targeted in STING energy drink. Because there is no certain restriction associated with the culture or language in the target market, this market will be comprising of both genders and targeted to overall UK.
The main focus will be to attract the existing energy drink consumer of different brands but at the same time potential customer will be targeted as well. Identifying correct budget is always a biggest challenge for marketing managers as well as for finance managers because marketing plans require different budget for different product stages like introduction of the STING energy drink in the UK region might requires intensive promotional activities which means heavy expenditure at the introduction of the product, once brand name has been established then budget might cut down to half.
But this approach will be cleared after analysing the competitor’s strategy. However, 10—15% of the annual income will be spent on the STING energy drink marketing activity. But like it has been mentioned earlier that marketing activities varies from each stage of the product life cycle. 5. Development of Marketing Strategies: In this phase initial marketing strategies will be defined as per requirement of the marketing plans because these strategies will help PepsiCo to achieve goals related to the STING energy drink in the UK region.
These strategies will be defined in such a way that will analyze the target audience and position effectively in the mind of a consumer. Strategies are defined in such a way that would co-relate with the defined objective. Strategies for the STING energy drink has been categorized into two categories: * Long-term Strategies * Short-term Strategies Long-Term Marketing Strategies: Long term strategies would be comprise of more than 18 month period but less than 2 years, these strategies will be focusing toward brand building of STING in UK region, increased in the sales revenue.
Brand Development: In order to create long term affect in the mind of consumer, PepsiCo requires intensive marketing activities to create awareness in the mind of the target customer for STING energy drink. This seems to be considering as short term strategy but brand remains alive for decade, to up thrust the profitability for long term reminder marketing activities would be implemented. Horizontal Integration: PepsiCo have always tried to create a win-win relationship with the supplier and distributor because these relationship help to identify changes in the industry in advance.
Long term relationship helps to identify the new supply chain management system for customer. | Research and Development: Research and development is a continuous process in an organization, after launching STING in the UK region, research and development related to the product will made in order to customized product as near to customer need. This process might create some expense in the short run but this process is capable enough to create potential sale in future. Short-Term Marketing Strategies:
Short term marketing strategy would create awareness in the UK region, these strategies would help to positioned among target customer that STING by PepsiCo has arrived in the UK region. According to research sales team prefer to create a long term impact in the awareness strategies; they help marketing staff to create strategy in such a way that would be effective in the long run. Some short term marketing strategies related to STING energy drink could be: Discounted Price: In order to increase sales and encourage target customer, STING will be introduced 25% less from its original price.
This strategy might curtail the profitability of the product but increase in the product turnover might augment the profitability. Sample Product & Discount Coupon: This strategy would be vibrant enough to create awareness among target customer; different sample product will give in bars, cafe and educational institute. This strategy might off set the profitability in the short run but help to develop a base for profitability in the long run. Balanced Marketing Mix Strategy: Proctor has mentioned in his article that strategic marketing mix is as much important as communication of organization with its customer (Proctor, 2000)3.
It further argues that marketing mix has its own importance; each element in the marketing mix shouldn’t be kept as a separate entity balance mix should be implemented for every product or service because it’s a fact that every multi organization celebrates its success due to balance marketing approach. 3. Proctor, T (2000), ‘Strategic Marketing: An Introduction’, London: Routledge There are four elements exist in the marketing mix, PepsiCo will elaborate these mix in its new energy drink: * PRODUCT:
PepsiCo UK is launching its energy drink by the name of “STING”, this drink will be caffeine base drink. STING by name itself means drink full of thrived affect. Two flavours will be introduced in the UK region i. e. raspberry and pineapple, this product will be available in 300ml disposable tin can in all over the UK region. * PRICING: PepsiCo will try to initiate discount price strategy in order to capture market share and develop a brand positioning in the mind of customer, price will help to attract the target customer because PepsiCo has its own brand equity in the UK region.
Therefore, the acceptability of the product might be high due to strong manufacturer brand name. Initially price ? 0. 75 will be charge for 300ml can of STING just to create awareness in the UK region afterward price will be set at ? 1 each. Initially it has been forecasted that around ? 0. 2m will be an additional burden on the financial statement because of this pricing strategy. * PLACMENT: Intensive distribution strategy will be used for STING energy drink; this drink would be available on every nook and corner of UK region just like other products of Pepsi.
Such as Pepsi Max, Tropicana etc same supply chain system will be used for this energy drink. * PROMOTION: Similar to intensive distribution strategy intensive promotional campaign will be used before launching STING energy drink, all the communication medium will be heavily used to create awareness among the target audience. This would help PepsiCo to well position the new energy drink, promotional campaign will be sponsoring different concerts and league matches in UK.
Hummer will be running in the main cities of UK which will be offering free drink to the potential customer. About 10% of the total expense from the current financial statement of PepsiCo UK is dedicated for promotional campaign of STING; all medium in the promotional mix will be used in this campaign. Implementation of Plan: The entire plan will be implemented within two months and company would be able to launch its product in the mid of July, summer season would be the best approach to launch STING energy drink in overall region.
Additional part time employee will be hired for promotional campaign on the other hand the basic infrastructure of PepsiCo UK will be used in STING energy drink; this approach will prevent additional cost. Marketing plan will be revised after every six month so that competitor strategy should be clearly identified. Evaluation of the Plan: Timely monitoring and evaluation of the marketing plan will increased the effectiveness of the marketing plan. Quarterly analysis will be made by PepsiCo to analyze the result related to STING energy drink.
There are few evaluation process recommended for effectiveness and efficiency of the plan: * Sales Review * Market Share Analysis * Balance Scorecard Analysis * Financial Analysis CRITICAL REFLECTIONS Writing critical analysis on an individual basis is not an easy task, the biggest challenge is evaluate the learning process that have augmented the knowledge about the marketing management, the course comprise of many superfluous topic but requirement was to evaluate only three of them.
The most intricate factor was to correlation from one topic to another, the biggest challenge was how I should evaluate the learning process. Therefore it has been decided by me to start with the value generation process in marketing management which was the basic core of marketing management course. It has been well said by Peter Ducker “creating value is inherent part of marketing”.
For that reason value placed by PepsiCo was evaluated by me, according to PepsiCo UK they have defined their value in such statement; “Our commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust- It’s about earning the confidence that other people place in us as individuals and as a company” As per company statement they have analyzed the viable effect of an employee for the success of the company means they have handed over all the crucial responsibility to their employees which might be a bench mark for others.
As according to my analysis creating value is a very crucial for customer as well as organizations employee, I have tried to analysis reason why value creation is consider to be an intrinsic part, for that reason Jones and Womack work has been discussed, their theory claims that value is seems to be set of principle which provide a guideline to the organization (Jones and Womack, 1996). It has been analyzed by me during this module that almost every multinational and national firm has a vision or mission which leads toward the development of the value, all these set of norms are interlinked with one and other.
While preparing this plan many professionals were informally asked by me that “What is meaning of value to them as well as for their organization? ” many have responded in a pragmatic way but one of the managers has quoted a situation that “Without value it’s like travelling in a black hole in outer space”. Deyst have argued that value creation process is effective in a manufacturing organization not very much effective in other intangible sector (Deyst, 2000)5.
It has been analyzed that service industry normally change its goal and direction rapidly as compare to the manufacturing firm but value are intrinsic part in this sector as well like for example: DHL has its own value creation process, FedEx has its own it means value creation plays an integral part for both sector. Another theorist Lean have argued that value should be created at each phase of the product development process, value and product development are strongly bonded together (Lean, 1998).
While accomplishing this module related to the STING energy have gained an experience that value can be created at any stage of the product life cycle but it’s a fact that each planning process requires an intensive value addition to create an edge from other competitors. Identical examples have been seen from my personal experience that many products whether from Unilever, Haagen-Dazs or FedEx value is being created for new and existing product, it can’t be proved that which sector proof to be best in value creation.
Lloyd has explained in his research for value creation that value creation doesn’t prove to be the best indicator for organizational goal or vision, value by itself is nothing (Lloyd, 1993). But in this assignment this theory hasn’t been proved well because values are the intrinsic part for any product or service, the best example would be the product that will be launched as an energy drink in UK region, as personal analysis it’s a fact that marketing planning or any planning carries a set of value in itself. 5.
Deyst, J. J. (2000), Value Model, Unpublished Paper, MIT, Cambridge. Broader concept in marketing was given by Kotler in 1969 for the first time then again it has revised as the time passes. Kotler refer marketing as a societal activity rather than a selling activity (Kotler, 1969)6. One of the marketer in the past has referred marketing as “Art of selling” but now a day’s as personal experience of mine is without marketing selling product is almost impossible, for e. g. many FMCG’s such as Unilever, P;G, PepsiCo etc. re spending billions of dollar in marketing activities although their brand equity and name has outrageously developed for the last many decade, but fear of outrun in the market still exists, it’s very much valid marketing has become a societal activity. Another concept was defined by Marketing Association “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”7.
This seems to be complete definition in today’s marketing practice but set of institution might be limited to few organization, it’s a fact that most of the organization excluding Multinational Corporation doesn’t fulfil all the relevant activities accordingly, as my personal research from many small organizations exist in London which are working as a intermediaries or associated with small business to product or service aren’t following all the attribute related to marketing association definition, most of them claimed that they do have some influence from marketing perspective but still lacking could be identify easily.
Zoltman has claimed in his article which was published in a marketing journal in the early 70’s that marketing and its concept can be effectively valid for social marketing which might bring some change in the society while he also claimed that goodwill can’t be sold in the marketing process (Zoltman, 1971)7. It means that author want all the marketing activities in the societal development process rather than product development process which has been claimed by lean.
While this thing has been denied by my personal life experience that goodwill can easily sold like product or service, all it’s required a strong brand name like McDonald, coca-cola, Intel etc all these have one thing common in their brand name i. e. strong brand equity which allow these companies to create and sell goodwill. This theory doesn’t relate for proper business or manufacturer but this can be implemented in the non-profit organization as well.
The learning outcome of this module before studying was very much vague because I thought marketing and selling are in the same league but as the time passes and module came to end it has been analyzed by me that now a day’s marketing has not only expand its horizon to create value but to create a long term relationship with the customer. 6. Marketing Bulletin, 1993, 4, 1 -11, Article 1, 7= AMA 2007. McCarthy has suggested these four popular “P’s” of marketing in the early 1960’s which have been classified into four categories: * Product Price * Placement * Promotion Before entering into this module I usually considered it as part of marketing but after analyzing all the marketing plan and article of the marketing management course it has been known to me that it’s of the important P’s in marketing, without these it wouldn’t be no marketing at all. But another important aspect that I have analyzed in this module that creating balance is very crucial and complex not even a multinational organization cannot developed a perfect balance in these “4P’s” of marketing.
As per my research conducted on FMCG’s multinational organization which are loaded with enormous number of product portfolio, during my analysis it has been identify that different product have specific marketing strategies but still there are lacking in the product portfolio. Product: Product is the main ingredient tangible asset that is loaded with some features and combination of service, like buying LED TV will include product TV by itself and service warranty.
But if any companies related to service industry like Airline, SPA service, Travel agencies classified their selves in product or service categories, it’s seem to be most complex situation although Kotler and Armstrong have defined a new terminology related to these so called “Product” as “service product” (Kotler ; Armstrong, 2004)8. But still I was unable to differentiate, I have also analyzed the 7P’s of service marketing but still service was considered as Product, while this is quite clear that product are tangible goods or asset and this goes vice versa for service but still service considered to be in product categories.
I have also read the article related to marketing mix published by laser in the early 70’s he claimed that product provides a clear form of communication by the manufacturer to its customer, therefore he claimed that on the basis of the product attributes other strategies are defined and rest of the other intangible attributes are directly proportionate with it like product image, market share, goodwill of the firm etc. Pricing: Price is referring to the monetary value that a customer has to pay in order to acquire the product or service (Kotler and Armstrong, 2004)8.
There is common misconception among people that lower down the price will increase the revenue of the firm because sale turnover will be increased, it hasn’t been proved yet price influence the customer alone, because customer is not only reviewing the price of the product but as well as the product attribute and making a comparison among these two factor. As my personal experience if I am shopping for any product I will search out all the possible feature associated with the product with its quoted price if it satisfy me I will buy it, this thing happened to me while buying laptop for my personal use.
Normally manufacturer quote price on the basis of the going concern strategy but this ultimately helps in FMCG product but it can’t be used for niche kind of product such as Rolex watches, Jaguar etc. Sometime it has been analysed that price is determined due to various factor which aren’t visible in the mind of customer but for manufacturer or marketer they are quite clear about their strategy. After analysing all the material related to pricing it was analyzed by me that price isn’t single factor that normally consumer or customer seeks for it, this thing has been prove during my observation survey in Sainsbury.
Placement: According to Kotler and Armstrong placement is a part of marketing mix in which product is being available to the target customer (Kotler and Armstrong, 2004) 8. There can be various ways to distribute product like intensive distribution, selective and exclusive distribution. According to my experience these can be used for separate product accordingly and distribution strategy sometime help in development of firm’s image but still it hasn’t prove that much.
As per my analysis FMCG product required intensive distribution which means product will be available in every nook and corner of the store and according to my observation FMCG product need nothing but extensive distribution but this perception went wrong as Haagen-Dazs usually use selective distribution strategy for their product, although their product classification seems to be as FMCG product then why such distribution? However this thing has given a pragmatic approach that ometime distribution contributes in building firm image. According to proctor selecting effective distribution channel it plays a vital role in the value addition process. 8. Cited in Principles of Marketing by Philip Kotler Promotion: According to Kotler and Armstrong promotion are termed as means of communication used to explain the attribute and benefits of the product to the target customer and convince them to buy (Kotler and Armstrong, 2004).
In this learning module after product mix, promotion considered to be as vital part of marketing mix as per my analysis, although many case are related to promotion were experience but the biggest case of promotion was made by Coca Cola for revitalizing the taste. In this module my analysis was organization usually spends billions of pounds in promotional strategy but still they weren’t able to persuade target customer as per calculation. One thing that I have observed the need of people is triggered effectively by proper use of promotional mix. Description of the Marketing Plan:
Marketing plan is a road map related to marketing activities of a product or service, it is kind of guideline provide to the head of marketing that what are the objective need to be achieved from those plan?. Because these plans ultimately focus on goals that need to be achieved in the long run therefore it’s very crucial for an organization to evaluate and well researched the marketing plan. In this module I have learned a lot about marketing plan and analyzed the different marketing prototype plan in some of the organization during their visits.
The most common component I have found in those reports was as follows: * Introduction/Summary * Goals and Objective * Market Analysis * Defining target market * Financial forecasting * Marketing Strategies * Monitoring and evaluation process But these factors varies from one and other so target market or customer are the part of market analysis, because market analysis is more related toward the outer condition of an organization, as I have learned in this module to keep target customer and market analysis as separate entity.
Another aspect was financial forecasting according to me it’s a number game and it should be played by financial professional rather than marketing person, I am giving this statement because I have informally interviewed some of the professional that are being associated with the marketing plan and they were marketing professional but why they were forecasting the financial forecasting alone?? This question needs to be answered! Marketing strategies are the action plan that will be focused toward the four P’s of marketing which has been discussed in the earlier module, these strategies will help to achieve objective of the marketing plan.
Conclusion: In critical reflection as I have mentioned earlier it is not an easy task to evaluate other work and identify flaws related to it, but still in this module I have learned a lot in each phase of marketing plan at the starting of this module I wasn’t able to differentiate strategies use in the marketing plan but as the time passes reviewing the course outline, surfing on the net and spending time in the library has help me a lot. But still I feel lacking of knowledge because during this marketing plan Mr.
John (who worked as marketing manager in a multinational logistic company) has well said “I have been working in this field for the last 10 years but still I feel lack of knowledge, marketing is like an umbrella which seems to cover many aspect but prop by many branches”. Different skill were needed for different person but if I summarize as whole my communication process has been improved during this module, but still I feel that many things were missing in this assignment which need to be worked out more like How managers forecast the financial data?
How marketing plan is coping with risk factors? How real database help to develop the plans? How much cost include in changing the plan? However well balanced marketing plan is not possible there are some flaws associated which are moulded in such way that should fit in with the external environment. REFERENCES: * Harsharanjeet S. Tagpal And Ivan E. Brick (1982), ‘‘The Marketing Mix Decision under Uncertainty,’’ Marketing Science, (Winter), 72-92. * Kish, P. t al 2001, Measurement and Tracking of Brand Equity in the Global Marketplace: The PepsiCo experience. International Marketing Review. Vol. 18, No. 1 p. 91-96. * Kotler P ; Zaltman G (1971). Social marketing: An approach to planned social change, Journal of Marketing, 35 (July), 3-12 * William T. Robinson (1988), ‘‘Marketing Mix Reactions to Entry,’’ Marketing Science, (Autumn), 368-385. * Wolburg, Joyce M. , “Double-Cola and Antitrust Issues: Staying Alive in the Soft Drink Wars,” Journal of Consumer Affairs, Winter 2003, p. 40. * Robinson, W. T. (1987) ‘‘Marketing Mix Reactions Incumbents to Entry,’’ Working Paper, Applied Economics ; Marketing 87-01, William E. Simon Graduate School of Business Administration, University of Rochester. * Sims, J. T. (1986), ‘‘Japanese Market Entry Strategy at Work’’ Komatsu vs Caterpillar, International Marketing Review, (Autumn), 21-32. * Muris et al 1993, Strategy, Structure and Antitrust in the Carbonated Soft-Drink Industry. Quorum Books. Westport, CT. p85. WEB REFERENCES: * http://www. ciaa. e/documents/brochures/food_and_drink. pdf * http://marketing-bulletin. massey. ac. nz/V4/MB_V4_A1_Graham. pdf * http://www. businessplans. org/market. html * http://iaswcd. org/district_tools/pdfs/EasyStepsMarkPlan. pdf * http://www. oup. com/uk/orc/bin/9780199290437/baines_ch06. pdf * http://www. pepsico. co. uk/brands * http://www. referenceforbusiness. com/history/De-En/Double-Cola-Co-USA. html YouTube Links: Presentation: http://www. youtube. com/watch? v=GmDMYL29nXg Advertisement: http://www. youtube. com/watch? v=MsOxpXX4EB8