Marketing Products And Services In A Dynamic Environment - Case Study Example

Marketing product and services in a dynamic environment Student’s Name: Instructor’s Name: Course Code: Date of Submission: Executive Summary This report discusses how lucozade will be penetrate into the new market Omani. The main issues which are discussed include the target market of the product and the branding. Further, the report discusses the effects of branding the product which includes attracting and retaining customers as well as building loyalty among the customers. Moreover, the report discusses that effective communication is the strategy which helps foster the customer loyalty. The main channel of communication is through the media like newspapers, magazines and TVs and social media sites like Facebook, Twitter and instagram. Finally, the report proposes some ways in which the brand can be effectively managed. Table of Contents Executive Summary 2 Table of Contents 3 Lucozade Brand in the Omani Market 4 The Target Market 4 Geographic segment 4 Demographic 5 Behavioral 5 Psychographic 5 Analysis of the competitors 5 Brand Equity 6 Customer based brand equity (CBBE) 6 The Lucozade customer based brand equity 7 The salience phase 7 Performance phase 8 Imagery phase 8 Judgment phase 8 Feelings phase 8 Resonance phase 8 Strategy of the brand 8 Lucozade strategy to enhance their brand 9 Brand Loyalty 9 Strategies of International Marketing by Lucozade 10 Conclusion 11 Recommendations 11 Lucozade Brand in the Omani Market Before a company decides to penetrate into a new market, it must consider if the product has the features which can enable it to excel in the market. The lucozade brand can be assimilated in the market if the company conducts some research to understand the consumer buying behavior in the Omani market. The cultural and demographic factors should be considered when understanding the consumer buying behavior (Ghodeswar 2008). These factors are important when deciding to penetrate into new markets. The internet can be used to address issues of the customers and can be done candidly or collectively. Individuals who are aged ten years and above use the internet and this implies that the product can be introduced in the market by using internet and social media. The Target Market It is important that when an organization wants to introduce a product into the new market to understand the target market. This is important as it helps the marketing team to concentrate on marketing the product within the target market. The main aim of segmenting the product is to ensure that effective marketing strategies are applied in each market segment to create competitive advantage in the market segment (Ghodeswar 2008). In this effect, the Omani market can be segmented by factors such as geographic location of the customers, demographic and the behavior of the customers. Geographic segment Lucozade product will first be introduced in the Muscat area because the population in the area is higher. This implies that there will be a large market for the product (Hanzaee & Farsani 2011). Transport and communication network is effective in Muscat therefore marketing and distribution of the product will be easy and effective. Demographic The main target of the Lucozade market is the people aged between the years of 15 and 35. This age gap is important because these people need some much energy to conduct their vigorous activities hence they will be attracted to the brand (Hanzaee & Farsani 2011). Behavioral The market will also be segmented according to the attitude of the customers (Hanzaee & Farsani 2011). The marketing team should be able to consider the behavior of the customers and develop the brand which can create loyalty among the customers. Psychographic This is the segment which targets sports people like the athletes (Hanzaee & Farsani 2011). This is because lucozade will provide energy they need to help them regain energy after they have been involved in a vigorous exercise. Analysis of the competitors The reputation of the brand helps to improve the competitive advantage of the product in the market by differentiating the product from those of the competitors. The marketing team will develop a plan to create competitive advantage of the product in the market. They should consider the methods which are applied by the competitors in the Omani market and develop features which will differentiate the product from those of the competitors (Kaplan & Haenlein 2009). For instance, the product should be priced on a competitive basis and it should be packed attractively to make it look different from those of the competitors. In addition, the logo should be attractive to attract the attention of the customers. In the Omani market the competitors include Red Bull and Power Horse. The companies make good advertisements of their products and that is why they are doing well in the market (Kaplan & Haenlein 2009). Red Bull has two products which are energy drink and sugar free while Power Horse has only one product. The companies pack their products in cans. Lucozade will therefore introduce three products and they will be packed in cans and bottles to differentiate them from those of the competitors. The three drinks are sports, energy and revive. Brand Equity A strong brand will make communication to be easy, improve its efficiency and will give the customers the priority. Branding of the product also helps to differentiate the products from those of the competitors. Good quality products, excellent products and marketing of the product contribute towards the equity of the brand (Kaplan & Haenlein 2009). Brand helps to reduce jeopardy when the products are being selected and also helps to maintain the intellectual property. An effective brand helps to increase the sales thus improving the revenue of the organization. Big organizations can build brand equity regardless of what the customers pay for the product. Passive brand equity can be realized if the organization retrieves the product from the market. Branding helps to differentiate the product from those of the competitors and will also enable the customer to select the right product as well as building loyalty (Mitchell 2002). It helps the customers to remember the product easily and this promotes the protection of the brand in the market. On the other hand, there is internal branding which enables the employees understand the company’s plans about the product so as to strengthen the brand internally which will in turn affect the market brand perception. This implies that the management of the organization should encourage the employees to offer their best skills towards managing and improving the brand (Mitchell 2002). The Lucozade employees should be able to understand the brand plans and work towards achieving the brand equity. Customer based brand equity (CBBE) This is the model which considers the various elements which could help to improve the brand equity among the customers by improving the image and creating awareness of the product. There are many activities which work towards contributing to building CBBE. These activities enable the customers to interact and understand the brand well and this leads to building loyalty. Pyramid scheme which indicates the Customer Based Brand Equity (Mitchell 2002) The main objective of CBBE is to provide guidance to the steps which can be taken by organizations to change the perception of the customers towards building the brand. In the first phase which is salience phase the customer should identify the product and the brand attached to the product (Patino 2012). This is the stage where the customers are attracted to the product as a result of effective marketing. The customers then start relating the product to the brand name. The second phase is the performance phase which is the phase where the customer understands the attributes of the product and creates an image which is connected to the brand. The next phase is the judgment phase where the customer builds an image of the product and the feelings towards the product determined (Patino 2012). The feelings can be cheerful, dissonance or amusement. Finally, there is resonance phase which is the stage where the customers determine his feelings towards the brand. The Lucozade customer based brand equity The salience phase The Lucozade should build awareness of the brand among the customers (Moloney 2006). The media can be used to create awareness of the brand like media press, magazines, newspapers and social sites like Facebook and Twitter. Performance phase Lucozade should be able to satisfy the needs of the customers in the market. This helps to improve the competitive advantage since the customers will be satisfied with the brand (Moloney 2006). Imagery phase the image of lucozade aims to concentrate on sporting activities and sports people like the athletes in the Oman market. This can be done by sponsoring some of the sporting events like the Omani premier league. This implies that the product will be brought near to the customers, hence will try to improve the reputation of the brand (Moloney 2006). This will improve the competition and as a result will change the brand perception among the customers. Building [and fostering the image will help to build the brand image. Judgment phase from the sources like Facebook, Twitter and instagram it can be indicated that the customers globally are happy about the drink and they have a perception that lucozade is among the best energy drinks globally. This is because of the perfect reputation of the brand and also having the competitive advantage and the brand is available globally with high quality (Stieb 2006). Feelings phase The customers think that lucozade is a brand of joy because it sponsors some sporting activities (Stieb 2006). Once an individual takes lucozade, he or she feels energetic thus providing a feeling of happiness. Resonance phase the customers are satisfied with the product and this implies that they do not buy any other energy drink. It also supports by providing energy to individuals (Stieb 2006). Strategy of the brand These are the strategies which are applied to improve the sales of the product. In order to improve the performance of the brand in the market, the marketing manager should be able to improve competitive advantage of the product both locally and internationally and this helps to attract and retain more customers. The customer oriented strategy is the strategy which is applied by lucozade to improve the perception of the customers (Kaplan & Haenlein 2009). There is open communication between lucozade and the customers and this has improved customer experience. Through this communication, the customers are committed to provide feedback concerning the brand and as a result the customers are satisfied. The media has been used effectively to improve communication between the customers and lucozade. In this effect the customers have provided their opinions, hence the company is able to assess the satisfaction of the customers (Kaplan & Haenlein, 2009). There are ten advices which advice the company to use social media and the advices are classified into using the media and the other five are concerned with the social of the company. Lucozade strategy to enhance their brand The social media is the channel which is applied by lucozade to debate the customers. The company applies the media to create competitive advantage of the product instead of verbal marketing. The language which is used to debate the brand is Arabic because that is the official language in Oman hence the message reaches the target market well. The social media is used to manage the demands of the company and also improving the interaction with the customers. In addition, the company responds quickly to the enquiries of the customers as a way of improving their relationship and also the company is flexible in using the media (Aaker & Erich 2000). The slogan of lucozade is “YES” and this inspires consumers to buy the product to create yes moments. Brand Loyalty Creating brand loyalty helps to reduce the operations costs since the customers are retained in the organization. The main aim of lucozade using the social media is to interact well with the customers so as to build customer loyalty. This reduces the cost of operations while improving the relationship with the customers (Shamoon & Saiqa 2011). The website of the company is designed to ensure the customer provides their response about the product and this helps to build the brand among the customers. The company does the following to foster the consumer loyalty; The company responds quickly to customer enquiries in the social media, the company answers the enquiries of the customers regarding the company and its products and the company should respond as fast as possible to the consumers. The organization should be able to offer quality products and conduct effective marketing to create awareness of the brand to the customers. This will help to attract and retain customers since they will have brand loyalty (True 2006). This will improve the profitability of the organization because the company will have a competitive advantage. The process of creating and maintaining brand loyalty to lucozade include; Being near to the customers and sending out greetings during events Posting messages to customers like saluting the customers on Friday Responding to customers’ enquiries swiftly Give incentives to customers Recognition of the loyal customers and provide better treatment Interact with customers through meetings Treat the customers as heroes and this will ensure a continued relationship The customers should find it easy when buying the product (Tam 2008) Strategies of International Marketing by Lucozade Penetrating into international markets is a complex but it can help to improve the performance of an organization. Among the benefits which can be reaped from the international expansion include the following; I. The sales of the products will improve since the organization will attract and retain customers II. Increased number of consumers since the product will be sold in the global market III. It helps to improve the reputation of the brand since it operates in the global market IV. It helps to diversify the market, hence managing the risks of operating in a single market (Tam 2008) Since expanding the operations of the company into the international is complex than local market, there is need to take time to prepare for the market penetration. Effective planning helps to ensure that risks associated with entering into international market are managed (Robin 2010). The lucozade will manage to enter into the Omani market effectively because the organization considered the local culture and policies of the consumers and developed strategies which did not conflict the local culture. Moreover, the organization should select a local translator who will help to translate the local culture so that the organization will be able to communicate with the consumers effectively by developing appropriate advertisement. The organization also needs to make the local customers its partners and there should be an effective communication, thus improving the relationship with the consumers (Rauyruen et al 2009). Finally, the organization should use the customer feedback to improve its policies since the customers provide adequate information which can be used to make decisions on behalf of the organization and how to create competitive advantage. Conclusion Branding of the organization is an important aspect as it helps to improve the performance of the company in the market. Branding helps to differentiate the product from those of the competitors and ensures there is easy recognition of the brand. Social media has been applied by the company to improve the reputation of the organization and also creating awareness of the brand in the market. Lucozade has managed to improve its reputation in the market by focusing on the culture of the local people. The company should be able use the social media appropriately so that the customers do not develop negative feedback because this will affect the market of the product. Communication with the consumers is the main strategy in which the company fosters the market strategy and in this the company will be able to create competitive advantage. Recommendations The company should conduct both offline and online to improve the awareness of the brand among the customers. In addition, the company should conduct an effective competitor analysis to understand the strengths and weaknesses of the competitors so as to develop effective strategies to maximize on their weaknesses. Finally, the company should provide a printed booklet in Arabic language to be accessed by the Omani consumers and those who cannot access the social media. References Aaker, D & Erich, J 2000, Brand Leadership, New York, The Free Press Ghodeswar, B 2008, “ Building brand identity in competitive markets:a conceptual model” Journal of Product & Brand Management, Vol.17, No. 1 , pp. 4–12. Hanzaee, K & Farsani, F 2011, “ The Effects of Brand Image and Perceived Public Relation on Customer Loyalty”, World Appl. Sci. J. Vol. 13, No. 2, pp. 277-286. Kaplan, A & Haenlein, M 2009, Consumers, companies, and virtual social worlds: A qualitative analysis of Second Life, Advances in Consumer Research, Vol. 36, No. 1, pp. 873-874. Moloney, C. X 2006, "Winning Your Customer’s Loyalty: The Best Tools, Techniques and Practices" AMA Workshop Event(s). Misc. materials distributed related to event(s). San Diego. 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In Raymond Miller. Globalisation and Identity, South Melbourne, Oxford University Press. Read More