Marketing and Promotional Strategy for Cereal Brand - Assignment Example

Marketing and Sales Contents Assignment Market Research 3 Assignment 2: Distribution Channels 7 Assignment 3: Market Segmentation 9 Assignment 4: Marketing Plan 13 References 18 Assignment 1: Market Research Focus Group Review A focus group interview is a method where the researcher tries to reach out to potential participants for comment and feedback. During development of new products or services, organizations generally incorporate focus groups in marketing, planning or evaluation stage. It can also be used during development of strategic plans or mission statements (NCBI, 2013). In the context of ‘all natural granola style cereal,’ objective of the focus group is to understand initial reaction of individuals from different spheres, after using the product. The current focus group will help in answering critical questions, which can further give rise to new ideas and strategies. Specifically, the current focus group will concentrate on; Gathering beliefs, opinions as well as attitudes regarding the new cereal. Testing their assumptions. Encouraging discussions regarding the cereal and ways to improve the product. Understand and evaluate comments and feedback of the participants. Learning and understanding more about cereal eating habits and preferences of consumers. Planning a focus group interview The first step of a focus group project is to determine various components and project partners. The current focus group project is on a newly developed ‘all natural granola style cereal.’ So, project partners for this focus group will be participants such as, housewives, young consumers of the age group 21-30, young executives and middle-aged professionals. Project partner will also include a moderator, a auditing expert, a technical and a assistant. The total number of participants included in the group will be 10. The focus group is expected to be diverse providing feedback and ideas from different perspectives. As such, the selected focus group will be a mix of male, female and young participants, who are consumers of cereals (NCBI, 2013). Carrying out the test In order to obtain best and effective results, the focus group will be exposed to various tests. The entire focus group session will be divided into four sessions. Sampling of Cereal Brands: During first stage of the focus group project, a sample survey test will be included and the attendees will be given three cereal brands, where only one brand will be of the company. They will be asked to differentiate on the basis of taste, appearance and likeness. Some of the model questions that can be asked to participants in the sampling survey are: Focus group interview: In the second stage, questions will be asked separately to the focus group regarding quality, taste and other features of the product. Some of the questions that can be asked during the cereal sampling are; 1. Did you find any similarity or difference in the three cereals while eating? If yes, why? 2. If no, do you think all the cereals are from same brand? 3. What are the factors you consider while opting for a cereal? a. Taste b. Brand c. Price 4. Which is more important while buying a cereal? a. Taste b. Price c. Family preference Focus Group discussion: The next stage will include an open discussion forum, where the participants will express their views and opinions regarding product, usage and avenues for further improvements. Analysis: After successful conduction of a focus group, the next important stage will be dissemination of data and information gathered during the process. Analysis of the data will help in evaluating alternatives and deciding appropriate actions for future (Vrontis, 2008). Information with similar comments is known as themes. Also, information will be analyzed for identifying differences. From similarities and differences, findings will be generated that would determine future actions required for the newly developed product. For instance, if perception after the focus group session turns out to be majorly negative, then proper actions will be taken to rectify that particular attribute of the cereal. An overall dissatisfaction among participants for the cereal might imply dissolving the product (Kotler & Armstrong, 2008). Airline Questionnaire Survey Brief Rationale and Instructions: A customer satisfaction survey is one of the most basic, yet critical, surveys conducted by organizations. Customer satisfaction surveys are performed with the objective of determining the perception and brand awareness among customers. It is also used for determining factors responsible for present and future marketing strategies of an organization. The major rationale of the airline questionnaire survey is to determine satisfaction among airline passengers traveling with the brand. The questionnaire comprises objective questions with multiple options. The survey will help in identifying the factors, which provide satisfaction to current passengers as well as those factors, which need to be addressed or assessed for establishing better services in future (Kotler & Armstrong, 2008). Survey questions 1. While making decision to fly with XYZ airways, how important were the following factors Very good Good Average Bad Very bad Punctuality in terms of flight times Counter services our flyer program overall air comfort during the airline services 2. Which part of travel during our service is more convenient, arrival or departure? a. Arrival b. Departure 3. Do you feel completely safe during journeys on our flights? a. Yes b. No 4. What is overall importance of the following elements in establishing your loyalty and satisfaction towards an airline service? Rationale Questions Least Important Neutral Most Important Reliability The airline service must be consistent and dependent Assurance The employees should be skilled, courteous and knowledgeable Empathy The airline service gives individual importance to the passengers Responsiveness The airline provides prompt and quick service to its passengers Tangibles The airline’s interior is attractive, hygienic and the meals are standard and timely. Location The location and availability of the airline authorized agents 5. Choose one element from options provided below that you would change to make the airline better and increase your satisfaction with our brand? a. Airfares b. On-board services c. Infrastructure (Interior and meals) Distribution and Collection: The target respondents will be passengers who are frequent customers of the airline. Choosing one-time or tourists might not be fruitful as they are not brand loyal. While the questions will be distributed and collected during the flight to each passenger, preliminary filtration of questionnaires will be based on available databases of the flying customers, showing their frequency of flights with the same airline. In order to enhance engagement of the passengers, incentives or perks can also be offered such as, free snacks or gift for passengers taking the survey. Information derived from the questionnaire: As discussed above, the questionnaire will be basically closed-ended with multiple questions. Even so, above questions are simple and easy to answer. The first question provides an elaborate understanding of factors responsible for satisfaction among the customers. Similarly, subsequent questions confirm customer’s perception regarding safety precautions and flight services offered by the airline. The next question is a broader analysis of the information such as, elements responsible for satisfaction and subsequent loyalty towards airline brands. The last question will help in determining services or features, which, as per customers, need improvement or assessment (Gobe, 2009). Information usage: The information gained through the questionnaire survey will help in analyzing many trends, patterns as well as perception among customers. The survey will allow soliciting feedback on various aspects such as, onboard and gate interactions, dependability of the airline, cabin interiors, aircraft boarding and baggage handling. Results will be further used for tracking various progresses in the airline services such as, efforts by customer services and important feedback on new enhancements in the airline services. The information will also be beneficial for connecting with opinions, ideas as well as experiences of customers. For instance, the customer relation department will be able to respond to target customers. Similarly, enhanced security measures during flight will not only increase satisfaction, but also improve overall trust towards the brand (Gobe, 2009). Assignment 2: Distribution Channels Marketing mix can be described as a set of tactics or actions implemented by an organization with the objective of promoting its products or brand in the desired market. In general, four major marketing mix elements include product, price, place and promotion. While many new elements have been discovered for the current study’s purpose, distribution strategy or place will be given major importance (Kliatchko, 2005). A general understanding of the four elements will help in evaluating their importance in marketing strategies. Price: Pricing is the product’s value. Factors that influence pricing are production costs, demand-supply scenarios, targeted segments and attractiveness of the market. It is also used for differentiating, demarcating or enhancing a product or brand’s image. Product: Product is the actual item sold to customers. The product strategy is to deliver with minimum operational expenses so that other marketing mix elements can be utilized. Place: It is the location, where sale takes place. Distribution strategy or place can be retail space, dealer location or any place where the customer come in contact with products of the organization. Promotion: It a combination of all activities, which is made in order to generate awareness and likeness for the service or product. For centuries, distribution has been a neglected part of the marketing mix, majorly because it is perceived as a part of an organization’s operations, rather than that of marketing. However, with increasing complexity of the distribution system, companies are giving more importance to this overlooked aspect of the marketing mix (Kliatchko, 2005). In general, the contemporary distribution system consists of acquisition system and physical or logistic distribution system. Unlike traditional distribution system, the current one is heavily influenced by factors such as, market structure, resources and organizational objectives, as well as overall marketing decisions. For instance, Wal-Mart has an intensive distribution system where most of the logistics and supply chains are controlled by company itself. The major rationale behind this distribution structure is that of minimizing expenses in long run and full utilization of company’s resources. Unlike Wal-Mart, smaller brands with low capital are unable to establish their own distribution systems. The importance of distribution channel or place can also be understood in retail sector, For example, most of the high-end apparel brands such as, Zara, have their showrooms and outlets in posh localities in big cities (Kliatchko, 2005). In premium retail branding, place is one of the major aspects of marketing mix and most of these retailers are even ready to pay premium pricing in order to gain desired place in the target location. Marketers have started to realize importance of distribution or place in their marketing mix decisions, majorly due to increasing complexity of the distribution system. For instance, major confectionary outlets follow intensive distribution where the objective is to bring customers to their retail outlets. Automobile companies follow selective distribution such as, careful and certified distributors, servicing firms and repair and maintenance outlets. Exclusive distribution is followed by companies, which are restricted to a particular customer segment such as, Gucci or Zara stores (Onkvisit & Shaw, 2008). Similarly, the process of distribution taking place through various strategic decisions helps in clarification of roles and responsibilities of the numerous channels like, distributors, agents, retailers and wholesalers. The importance of distribution channels can again be reflected through multi-channels strategy. In a distribution system, various economic operators are involved and each operator is seeking certain amount of profit. Hence, correlation and cooperation is important for establishing a distribution process. Contemporary distribution process involves entire economic chain, ranging from producing raw materials, entire level of distribution and supply chain involving multiple operations to final consumption. As such, it is difficult for even bigger enterprises such as, Dell, to control the entire distribution chain. In such situations, best possible strategy is to outsource the distribution control partially to experts. For instance, Dell computers, whose major distribution channel include internet, need assistance while distributing products to far-away places. In such situations, companies such as, UPS and FedEx, is seen to takeover the distribution process. Thus, by outsourcing a part of distribution to expert shipping companies, Dell is able to benefit in revenues, operations as well as its customers (Onkvisit & Shaw, 2008). Assignment 3: Market Segmentation Majority of the markets cater to different customer groups sharing similar characteristics as well as buying habits. This distinctive collection of buyers with similar traits constitutes market segments. Target market segmenting is a process, where a particular market is segregated into submarkets, leading to better business opportunities. In current scenario, my product team is going to launch a new set of mobile phones. However, before establishing the line of mobile phones, it is essential to understand the target customers for whom these products will be manufactured (Harvard Business Review, 2009). Proper application of marketing segmentation at initial stages of new product development is critical as it will help in guiding the management to tailor our services and product features pertaining to the mobile phone. The overall objective is to understand exclusive demands of target customers, implementing them in the product and ensuring success of the new product line. An example of traditional segmentation is division on the basis of demographic traits such as, sex, education levels, age, income and social status. While these demographic traits are essential and provide a base for segmentation of customer, they are not sufficient for establishing an effective segmentation strategy (Harvard Business Review, 2009). In this segmentation process involving mobile phones, I will focus on few important non-demographic traits like, tastes, value, preference, technology orientation, usage factors and timeframe of usage. Marketers are increasingly realizing the importance of non-traditional factors over demographic factors. Effective customer segmentation is also pivotal for establishing a sound marketing campaign as targeted customers will be potentially receptive towards a particular advertisement or promotional tactic (Harvard Business Review, 2009). After analyzing initial product features as well as marketing goal, I was able to differentiate the segments based on age, income and usage and technology orientation. The essential market segments are described as follows; Age: On the basis of age, customers will be divided into two segments; Young consumers: These are consumers of the age group 13-25. They include students from school and colleges and newly appointed executives and graduates. Middle-aged customers: Middle-aged customers will include individuals of the age group 26-35. These will include professionals and graduates with 2-3 years experience and established professionals. The specific age group to be targeted for the current line of mobile phones will be middle-aged individuals. Also, young customers with affluent family income can be targeted. Income: Income will be a major factor while determining target customer segments. Customers will be targeted on the basis of their income group such as, that of middle income and higher income as well as luxury seekers. While middle income group customers seek value-for money propositions, high income group and luxury seeking customers will opt for mobile phones with high-end technology, applications and unique design features. Usage: On the basis of usage, customers will be categorized into high users and light users. Heavy users include customers using mobile phones multiple times in a day for routine activities such as, writing notes, making schedules, remembering events and constant communication. For them, mobile phones should be a package providing all necessary features for smooth and uninterrupted daily activities. Technology Orientation: Mobile phone users are termed as technology oriented when they prefer mobile phones with technology rather than a simple set. These customers want to stay updated in terms of technology and new application. Customers who are less technology oriented prefer comparatively less complex mobile phone with features that are simple and easy to use. Mainstream and niche market segments Out of the above customer segmentation, mainstream customer segment targeted for the new mobile phones will be technology-oriented, heavy mobile phone users aged between 25-40, belonging to upper-middle and upper class. These individuals generally own more than one set of mobile and will be attracted to innovative and differentiated features and offerings. At the same time, niche segment customers will constitute students from middle income group, middle aged executives from middle and high income group as well as mobile enthusiasts of age group 45-60. Since the product line will have multiple features and offerings, it is expected that the product will be able to cater to mainstream as well as niche segments effectively (Bayer & Taillard, 2013). The following template will define some of the characteristic traits of mobile phone users. These traits will be then appropriately applied for different customer segments. Trait Description Appropriate customer segment/category Mobirati It includes the current mobile generation. These are individuals who were provided with cell phone access at early stages of life and find normal life extremely difficult without cell phones. They avail mobile phones for multiple purposes such as, communication (taking, messaging and chatting), notification of daily events, memos and all daily requirements of life (Experian Information Solutions, 2014). Students and young executives Social connectors Social connectors are those individuals for whom communication is the most important aspect of using a mobile phone The major usage of cell-phone for them is constant social connection, updating themselves with social events and friends. They seek features related to instant messaging services and applications, ease of typing, mobile network connections as well as design of the phone while making a mobile purchase. Teenagers and College going students Mobile professionals Mobile professionals are those looking for multiple features in one single product. These are mobile phone enthusiasts with sufficient income to purchase every new technology available in the market. These are adventurous customers seeking new and differentiated features and applications while purchasing a mobile phone. They also depend on their mobile phones for upgrading their professional life as well as personal life. Customers from this segment generally own smartphones, providing them with effective communication access as well as quick information when need arises (Experian Information Solutions, 2014). Middle-level executives of the age group 30-40 and highly oriented towards technology Pragmatic Adoptors These are individuals who have been exposed to cell phones in their adult life period. While these customers are still learning about numerous features and applications of a mobile device, they do not shy away from investing in high-end mobiles. Customers of the age group 40-50, but not technologically oriented Basic Planners Basic planners are customers who have seen cell phones at the later stages of life. They are not technology oriented or perceive cell phones as important. For them, mobile phones are communication devices (Experian Information Solutions, 2014). Technology averse customers In the mainstream market segment, customers chosen were basically mobile professionals, which included customers of the age group 39-40, who are technology oriented, high-end users and adventure seekers. Clearly, features and offerings that will induce excitement and attract them are advanced technology, multiple applications, expandable memory and quick usage. In order to be attractive for the current segment, the mobile phone will have a quick processor and the RAM (random access memory) will be effective for swift operations. Similarly, expandable memory of 32 GB will be attractive for music enthusiasts as well as customers storing multiple data in their mobile phones. The mobile phone will be highly compatible with operating system for business processes, rendering the mobile attractive to young and dynamic business professionals (Bayer & Taillard, 2013; Experian Information Solutions, 2014). Assignment 4: Marketing Plan In the current situation, project management has become a demanding topic across New York and many firms are successfully offering courses pertaining to this field. After initial surveys and competitor analysis, it was found that these project management programs are in demand and profitable. Consequently, management training programs offered by our company will involve four crash courses in project management. The primary objective of these courses is to improve value offered to the current customers as well as attract new ones for generation of extra sales and revenues. The initial market research included review of competitor’s courses, interview with training directors from 15 different companies and a student survey in order to analyze their perception towards our company’s courses. Combining market research with the management goals, major marketing objectives for the management are as follows; 1. Increasing the number of customers by 15 percent every 6 month. 2. Gain a minimum of 10 percent revenue from new customers. 3. Utilize and promote the project management crash course to establish the management firm as one of the top 10 educational providers in New York. The long-term financial objective of the firm will be to establish a sustainable business, which achieves profitability within initial two years from that of commencing the crash course. In order to achieve marketing and financial objectives, an appropriate and effective marketing mix strategy is required. As discussed above, the product in this marketing campaign include 1. Project management fundamentals 2. Project planning and control 3. Project finance and budgeting 4. Project risk and quality management Pricing strategy Price of a product will be influenced by target segment as well as duration of the course. Price variation can also result from positive or negative promotion as well as achievement of marketing and financial objectives. The pricing strategy for project management courses will be based on overall cost of establishing the courses, present and potential future demands among consumers, pricing strategies of competitors as well as overall image of the brand (Kapferer, 2008). Cost: The objective of any cost strategy is to ensure that in long run, cost of production or marketing of the service or product is profitable. For our course, prices should be profitable in long run. Also, while looking at long-term gains from the prospective project management courses, it is important to compare long-term profit motives of successful competitors and establish standards accordingly. For instance, the management can set the courses at a marginally higher price compared to other such courses so that they are perceived to be qualitatively better. After initial success of the program, price can be reduced in order to gain more customers and generate higher profit from volume sale (Rapert, Velliquette & Garretson, 2002). Demand: The project management course will hugely depend on demand generated by current and potential customers. While setting the demand, it is critical to take in account the effect of pricing on overall volume of registrations. For instance, price sensitivity among different customers for newly established courses can affect its overall demand in the market. At the same time, quoting a very low price for an educational course might lower brand image, further reducing the demand. As a consequence, the best strategy to differentiate as well as maintain high demand will be to launch the products at premium pricing so as to create awareness and excitement among target customers. After the successful launch and generation of brand awareness among customers, price can be reduced for increasing sales by volume (Haberberg & Rieple, 2008). Competition: Competitor prices are another factor, which can affect overall pricing strategy of the courses offered by our company. Evaluating competitor prices will help in benchmarking, against which our prices will be positioned. However, it is not wise to follow competitors without any proper research or analysis and pricing should be done in such a manner that will differentiate our courses from others (Rapert, Velliquette & Garretson, 2002). Image: Image include overall brand value of our company, perception among consumers and users of our services, popularity of products to be launched and future growth of products. Most of our courses are placed in premium pricing range because of the lecture materials offered and top class professors who are hired. Banking on the above brand value, courses can be placed at a premium price with similar offerings such as, top class professors, reading materials and application based curriculum. Distribution (Place) Strategy An effective distribution (place) strategy will ensure that services or products are available as per customers’ requirement. It also means that products will be available in high quality and the environment will be appropriate for rendering services or products attractive and worthy. A good distribution or place strategy also means that the product is supplemented by multiple services so that it is utilized in most effective manner. The two most crucial distribution sources for the new project management crash course will be the educational institution providing the course as well as online programs. While the institutional programs will be targeted at customers such as, students and business executives living in New York, online program will be more applicable for international students living outside New York as well as international corporate professionals. The company’s catalogue present on the online website will act as a specialist intermediary, igniting demand among customers. While formulating distribution strategy for the course, few of the important aspects to be considered are customers, characteristics of products, nature of distribution, competitors, size of the company as well as the environment and surroundings wherein the courses will be conducted (Marieke, 2004). The customers will be students and young corporate professionals looking for promotion and career advancement. Thus, the courses will be application oriented and based on case studies. The courses will be held at seminar halls of the firm and depending on the number of customers, size of the classes will be determined (Onkvisit & Shaw, 2008). Promotional Strategy A perfect promotional strategy would mean attracting appropriate customers in right amount and at right time so as to distinguish products from that of competitors. The promotional strategy for the current project management courses will include public relations, promotion, packaging and advertising. Apart from that, direct marketing and personal selling will also increase overall awareness and knowledge among potential customers (Ferrell & Hartline, 2010). PR strategy: The objective of the PR strategy will be to generate positive interest among target customers. A good public relation will help in increasing the appetite of potential customers for more enquiries and information. This will also re-establish dormant customers such as, individuals who have taken courses from the company in two years as well as will reinforce company’s image among current customers (Lawler, 2008). Advertising strategy: Advertising strategy for the project management course will include promotion through billboards and posters in critical traffic points. The courses can also be promoted through print magazines by placing the advertisement in reputed educational magazines and journals. Direct marketing strategy: Direct marketing strategy will include both online and offline direct marketing. For instance, the company can distribute online flyers and mails to current customers of the educational firm in order to spread awareness and generate subsequent queries. In addition, online and offline sessions can also be conducted for the students who show interest in the course. Sales promotion: Sales promotion of educational courses has become a popular strategy in order to generate prospective clients and extend business operations. For the current course, our management team will hire sales professionals. These sales professionals will collaborate with various educational and coaching institutes and will generate potential leads including students and professionals (Ferrell & Hartline, 2010). References Bayer J. & Taillard, M. (2013). A New Framework for Customer Segmentation. Retrieved from http://blogs.hbr.org/2013/06/a-new-framework-for-customer-s/ Experian Information Solutions (2014). Mobile Consumer Segmentation System and Psychographic Scales. Retrieved from http://www.experian.com/simmons-research/mobile-usage-segmentation.html Ferrell, O. C. & Hartline, M. D. (2010). Marketing strategy. 5th ed. Connecticut: Cengage Learning. Gobe, M. (2009). Emotional Branding: The new paradigm for connecting brands to people. New York: Allworth Press. 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Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3627930/ Onkvisit, S. & Shaw, J. (2008). International marketing: strategy and theory. London: Routledge. Rapert, M.I., Velliquette, A. & Garretson, J.A. (2002). The Strategic Implementation Process Evoking Strategic Consensus through Communication. Journal of Business Research, 55, 301-310. Vrontis, D. (2008). The external environment and its effect on strategic marketing planning: a case study for McDonald’s. Journal of International Business and Entrepreneurship Development, 3(3/4), 306. Read More