Marketing Communications: Analysis of Jalsberg Case - Essay Example

Running head: Marketing Communications: Jalsberg Case study Marketing Communications: Jalsberg Case study Foreword: This report is a blueprint for effects of the selection and implementation of communication mix on the marketing of Jarlsberg cheese in the New European countries. It contains practical and suitable recommendations for the company for increasing the sustainable growth and competitiveness by implementing the right and most suitable communication mix in order to address the target audience. It is expected that the implementation of these initiatives and recommendations will lead to effective promotion and positioning of the product and the company will be able to achieve its sales target. Introduction: The changing market environment has given rise to the needs of updated information more than ever in the past. The markets have transformed to international from local. With the increase in the exposure to masses and increased geographical market coverage, the need of quick and up to date information has also increased. With the changing business environment the buyers are also changing. With the increasing incomes the buyers have become more selective. For a company to launch its product in a new market it has become important to have the information from the buyer needs to buyer wants. On the other hand it is also important to have the knowledge of how to present the product in effective manner in order to reach the customer in an effective manner. With the changing business needs the new marketing techniques such as product differentiation, branding and advertising are also gaining immense importance. This paper is aimed at finding out the appropriate marketing communication strategy for Jalsberg cheese which is a famous branded cheese in American Market and ready to be marketed in new European market. Factors effecting the marketing communication are also discussed in order to increase the effectiveness of communication strategy. Aim The aim of this research is to examine how media communication can play an important role in the introduction of a brand in international market. Objectives To review the literature about this issue up till now. To improve the awareness about branding. To analyse the advantages and disadvantages attached. To investigate and find out the impact of effective media communication on brand introduction in a global market. Introduction of Company: Norseland Inc. was founded in 1978. The purpose of the company was to market and distribute Jarlsberg and other Norwegian cheese in United States. The Company is a 100% owned subsidiary of TINE Norwegian Diaries, which has the main responsibility for the production and marketing of Jarlsberg cheese. Introduction of Product: Jalsberg cheese has some snob appeal. Customers want to show they have ‘good taste’. Without complaining they accept the higher price of Jalsberg compared to other competitive products. The mild and creamy taste appeals to Americans, and many think that the taste of the traditional Swiss cheese, Emmenthaie is too sharp Present market: Jalsberg cheese has a major supply share in the US cheese market. The characteristics of typical Jalsberg buyer are: Female Earning more than US$ 80,000 per year. Over 40 years Now the company is aiming to introduce its Cheese brand Jalsberg in the newly extended European market. In order to undertake successful brand positioning Norseland has to design a marketing communication strategy, which should be crafted according to the European market conditions and consumer behaviour. The successful product positioning and promotion is only possible if all the required information in this lieu is gathered and used in the right direction. In order to fulfil modern information needs, new information technologies have also been evolved. The information regarding the buyer preferences and behaviour plays an important part in helping the management to take important decisions regarding the product such as pricing, promotion, competition etc. It is important for the company to establish a system in order to acquire a large amount of information for the marketing managers. “Competitive companies study their managers’ information needs and design marketing information systems (MIS) to meets these needs. A marketing information system (MIS) consists of people, equipment, and procedures to gather, sort, analyse, evaluate, and distribute needed, timely, and accurate information to marketing decision markers. To carry out their analysis, planning, implementation, and control responsibilities marketing managers need information about developments in the marketing environment. The role of the MIS is to assess the manager’s information needs, develop the needed information, and distribute that information in a timely fashion, the information is developed through internal company records, marketing intelligence activities, marketing research, and marketing decision support analysis.” (Kotler, 2000) The American marketing association defines market research as "The systematic gathering, recording, and analysis of data about problems relating to the marketing of goods and services". Consumer analysis is an important part of the market strategy. Every marketing campaign is aimed at consumers. In order to develop an effective marketing strategy it is important to understand the buyers needs and wants attached to a product. In order to understand how the consumers actually make their buying decisions, marketers must identify the motivators and the decision-makers. Consumer behaviour is influenced by four factors, which are culture (culture, values, social class etc.), social (community, family, social rules etc.), personality factors (age, sex, occupation, economic status lifestyle, personality etc.) and psychological factors (motivation, perception, beliefs etc). Addressing all these factors can lead to an effectively planned marketing strategy. People can be initiators, influencers, buyers, deciders and users. It is important to understand the type of behaviour in which the customer is involved such as the dissonance reducing buying behaviour, habitual buying behaviour, and variety seeking buying behaviour. Most of the buying behaviours of the customers involve a sequence of events in their buying decision. Recognition of the problem, search of information, evaluation for alternatives, purchase behaviour and post purchase loyalty or behaviour. It is important for the marketing manager to understand the buyers’ perceptions at each and every stage and to understand the influences operating at each level. Some of the factors, which can effect the buyers’ behaviour, are other’s attitudes, perceived risks and post purchase satisfaction. A satisfied buyer will continue to purchase and if not satisfied the customer will not only stop buying but will also spread negative opinion in relatives and friends (Kotler, 2000). Modern marketing calls for more than developing a product, pricing it attractively and making it accessible to target customers. Understanding Culture of target market: Society shapes our beliefs, values and norms. People absorb, almost unconsciously, a worldview that defines their relationship to themselves, to others, to organisation, to society, to nature and to the universe” (Kotler, 2000). According to Hofstede (1980) culture is a complex, multifaceted construct. There are two perspectives of culture. Individualism-collectivism dimension is one of them. In Zhang and Neelankavil's (1997) the researchers have mentioned the importance of cultural differences on the choice of advertising appeals and strategies by the different companies. According to Triandis (1990), individualistic cultures emphasise independence, achievement, freedom, high levels of competition, and pleasure; whereas collectivist cultures tend to embrace interdependence, family security, social hierarchies, co-operation; and low levels of competition. UK has an individualistic culture, which constitute the main factors of independence, achievement, freedom, high levels of competition, and pleasure. Advertising, as a form of social communication, is particularly reflective, and indicative of culture and its norms. To the extent that advertising does reflect cultural differences, and there exist clear differences between distinct cultural patterns, advertising appeals, which are specific approaches advertisers use to communicate how their products will satisfy customer needs (Arens & Bovee, 1994), should manifest such differences across these countries. According to a research conducted by Levitt regarding the importance of advertising following findings were reached: 1. A Company’s reputation improves its sales force’s chances of getting a favourable first heating and an early adoption of the product. Therefore, corporate advertising that can build up the company’s reputation will help the sales representatives. 2. Sales representatives from well-known companies have an edge if their sales presentations are adequate. But a rep from a lesser-known company who makes a highly effective presentation can overcome the disadvantage. 3. Company reputation helps most where the product is complex, the risk is high, and the purchasing agent is less professionally trained.(Levitt, 1965) Use of Advanced technology in Marketing: Last two decades have seen multi-fold progress in the use of Internet. Nua Internet Surveys have reported an increment in the number of Internet users globally, statistics state the users are increased in all regions of the world from 171 million in 1999 to 304 million in March 2000, an increase of 78 percent (U.S. Department of Commerce, 2000; USIC and IITA, 2000). The accessibility of the consumers to different products and services has also been increased. The advent of Internet has also changed the way of undertaking business. With the increase in the number of users the company can find it cost effective and easy to reach a mass market through Internet as compare to the traditional methods of addressing the customers. Especially in the developed countries the role of Internet has become crucial in designing the business strategy. On the other hand at the consumers side Internet has provide them with an array of products and choices available. The approach of business is also changed. (Zwass, 1996). Methodology Philosophy Easterby-Smith et al (1997) identify three reasons why the exploration of philosophy may be significant with particular reference to research methodology: Firstly, it can help the researcher to refine and specify the research methods to be used in a study, that is, to clarify the overall research strategy to be used. This would include the type of evidence gathered and its origin, the way in which such evidence is interpreted, and how it helps to answer the research questions posed. Secondly, knowledge of research philosophy will enable and assist the researcher to evaluate different methodologies and methods and avoid inappropriate use and unnecessary work by identifying the limitations of particular approaches at an early stage. Thirdly, it may help the researcher to be creative and innovative in either selection or adaptation of methods that were previously outside his or her experience. As the research philosophy depends fundamentally on the research question (Saunders 2000), the phenomenological philosophy has been chosen in this paper. This choice originates from that researcher’s topic/question that aimed to investigate the impact of media communication on brand introduction in a new market. In this specific research, -related to the question- the author collected data and developed a theory as a result of data analyses rather than developing a theory and tests it afterwards. Secondary sources Solution to the problem is found out by research in a scientific approach. To find a solution to the problem by research requires identifying and analysing the nature of the problem and experimenting with the new methods to find a solution. The first step to research is to select the basic method by which the problem can be identified and analysed. The aim of selecting any research method is to give most useful information to the key decision-makers in a most practical and cost-effective way. After adopting qualitative research method, there should be quantitative approach. The ideal researcher uses the combination of methods. At first, the qualitative approach should be followed. The most common forms of secondary sources are books, academic journal articles, official government statistics or financial records, and other publications. A wide amount of secondary data was collected and reviewed from an extensive range of sources. Information was gathered from articles in academic journals and magazines, textbooks, research documents and specialised Internet web sites. Qualitative versus Quantitative primary research techniques: Qualitative techniques stand in contrast to quantitative techniques, the main difference being that quantitative techniques involve numerical data whereas qualitative techniques involve more abstract information. Data collected using qualitative techniques do not generally lend themselves to statistical analysis whereas quantitative techniques do (Veal, 1997). The approach used in this research is qualitative (Jennings, 2001). Analysis: On their own, data are rarely used in their original form. Through the process of data analysis, value is added to the data to turn them into information. It is information rather than data which users especially policy and decision-makers are interested in (Uganda bureau of statistics, 2005). However this will be a very sensitive and critical stage in my research process as misinterpretation or over-interpretation is always a potential risk. The process of data analysis in this research will include the following steps: Indicate the date of the questionnaires. Who completed them, and the number of returns. Categorise the data collected. Reading through the secondary sources carefully and coding them after the event in relation to the themes and issues, and then categorising of data. conclusion: Norseland Inc should also communicate with present and potential stakeholders, and with general public. The marketing communication mix should consist of five major modes of communication: Advertising, sales promotion, public relations and publicity, personal selling, and direct marketing. Norseland Inc. must consider several factors in developing their promotion mix; type of product market, whether to use push or pull strategy, consumer readiness to make a purchase, stage in the product life cycle, and the company’s market rank. In case of the company as the target audience is between 18-25 years advertising can be the most suitable communication mix. Advertising can perform the following functions in the business markets: Awareness building: Advertising can provide an introduction to the company and its products. Comprehension building: As the product embodies new features. They can be best explained by effectively performed advertising. Efficient Reminding: As the product has short shelf life reminder advertising is more suitable and economic option. Legitimisation: Sales representatives can use tear sheets of the company’s ads to legitimise their company and products. Reassurance: Advertising can remind customers how to use the product reassure them about their purchase. References: Bovee, C. L., & Arens, W. F. (1989). Contemporary advertising (3rd ed.). Homewood, Ill.: Irwin. Hofstede, G. H. (1980). Culture's consequences: international differences in work -related values. Beverly Hills, Calif.: Sage Publications. Kotler, P., (2000). Marketing Management. Millenium Edition. Prentice hall International Levitt, T., (1965). Industrial Purchasing Behaviour: A Study in Communication Effects (Boston: Division of Research, Harvard Business School, 1965) U.S. Department of Commerce. (1999). "The Emerging Digital Economy II." available at : U.S. Department of Commerce. (2000). "Digital Economy 2000." available at : USIC and IITA. (2000). "The State of the Internet 2000." available at : Zhang, Y., & Neelankavil, J. P. (1997). The Influence of Culture on Advertising Effectiveness in China and the USA: A cross-cultural Study. European Journal of Marketing, 31(1), 134-149. Zwass, V. (1996). "Electronic Commerce: Structures and Issues," International Journal of Electronic Commerce 1 (1), 3-23. Read More