Marketing Essay Example
Marketing Essay Example Executive Summary
Marketing entails activities such as product design, strategies, pricing, and advertising, among others. Most of these aspects contribute to the success of marketing. The current paper is a marketing report of the Perfetto Juice Company. This company is based in the UK and operates in more than 15 countries. The paper begins with defining the elements of marketing that include research, strategy, planning and tactics. After that, the paper will present a list of the benefits of marketing orientation such as responsiveness, building customer value and constant improvement. Besides, the paper deals with the macro and micro-environmental factors that affect the marketing strategy of the Perfetto Juice Company. The Perfetto Juice Company has a strong brand image due to the production of quality products. However, due to the rapidly changing contemporary market, the Perfetto Juice Company needs to adopt effective marketing strategies aimed at ensuring its competitive advantage. So as to remain competitive, the Perfetto Juice Company needs to ensure that different aspects of marketing used by the company meet the wishes and needs of the target market.
Introduction
Marketing is a broad term that entails different activities such as product design, strategies, pricing, and advertising, among others. The mentioned activities are carried out in the marketing process. However, there are more important aspects of marketing that contribute to its success and serve as the backbone of marketing.
The given company is an organization that produces fruit juice. The company supplies healthy beverages to its clientele across the globe. The company is based in the UK and is proud to be the number one smoothie brand in Europe. Its target market ranges from children to adults. The Perfetto Juice Company operates in more than 15 countries worldwide. The paper entails a marketing report of the Perfetto Juice Company.
1.0 Task 1
1.1 Elements of Marketing Process
As noted above, there are more important elements of marketing that contribute to the marketing process. These are research, strategy, planning and tactics.
1.1.1 Research
Research is carried out to gather information on what the market wants. In the given case, the Perfetto Juice Company will carry out market research to identify the message it will adopt for its advertisement campaign and the channel that will be the best to be used. Besides, the company will determine the positioning by which it will target the right segment. According to Kotler and Keller, conducting market research helps companies analyze and determine their actions.
1.1.2 Strategy
Once the company has its data ready, it will get to know where its products stand and identify the position of the company in the market regarding its strengths and weaknesses. As indicated by the studies, this element gives a company an idea of the types of strategies it will need to implement and the factors it will have to take into account to remain competitive and successful in the market. Therefore, after research, the element of strategy decides a company’s mission, vision, goals and direction. The Perfetto Juice Company needs to ensure that its strategic plan is carefully elaborated by considering all opportunities.
1.1.3 Planning
Using the knowledge of where a company wants to be the company has to plan how it will achieve this goal. This is done by a company’s planning department. Kotler and Keller demonstrate that the marketing plan comprises of financial planning, sales forecasting, communications strategy and benchmarks that define how the company will meet its future strategic goals. The Perfetto Juice Company’s planning department needs to have a timeline to help monitor its achievement of the strategic plan.
1.1.4 Tactics
According to the research, tactics are the short-term plans a company implements to attract and retain customers, beat rivals, provide better customer value, and increase sales. For example, when a company provides an offer of Buy 1, get 1 free, it is applying the sales tactic of attracting customers. Besides, reducing the price for a product on a holiday is a promotional tactic. By adopting such tactics, the Perfetto Juice Company will ensure that it is in line with the planning it conducted at earlier stages. Research indicates that most companies remain successful in the industry because they adopt smart marketing tactics. Due to the competitive nature of the beverage industry, it is necessary for the Perfetto Juice Company to adopt smart tactics such as price reduction to achieve customer acquisition and gain good revenues.
1.2 The Benefits and Costs of Marketing Orientation for Perfetto Juice Company
Market orientation is a business viewpoint whereby the primary focus of a company is learning both the known and unknown needs of its target market and trying to fulfil them.
1.2.1 Responsiveness
Customer orientation is regarded as one of the core pillars of market orientation. Research states that the companies that adopt this orientation have an advantage over their rivals since they stay ahead of the curve in marketplace responsiveness. Adopting market orientation will be a significant advantage for the Perfetto Juice Company. This is because the company will not only manufacture products that will meet the needs of its target market, but also do it promptly.
1.2.2 Building Customer Value
A market-oriented approach will help the Perfetto Juice Company build customer value. The company will increase its customers’ loyalty to its brand hence develop customer repeat. Brand loyalty is important in marketing since it creates customer resistance to competitors’ lucrative offers such as introductory incentives. The customers, who feel their demands are highly valued by a company, reward the company with larger purchases and repeat sales.
1.2.3 Constant Improvement
Market orientation helps a company improve its processes and systems since it fosters a culture of implementation. Using the market orientation approach, the Perfetto Juice Company will be able to improve the product offerings and adapt to the present and future needs of its clientele.
2.0 Task 2
2.1 The Macro and Micro Environmental Factors
There are two kinds of external marketing environments; micro and macro. These factors are beyond the control of marketers, but they still influence the decisions made while creating a marketing strategy.
The macro environmental factors are those that indirectly affect a company by influencing market-related decisions. These include the demographics of the populace a company is operating with. Lamb et al. indicate that age distribution, religion, growth rate, and ethnicity influence customer preferences and the behavior of employees. Since the Perfetto Juice Company operates in different countries, it is important for the company to structure its products to suit the demographics and expectations of each region. Additionally, the economic factors related to the production of goods, distribution and customer purchase power influence business decisions within the company.
The physical forces such as natural renewal and non-renewal forces also influence the ways of how resources in the Perfetto Juice Company are utilised and managed. The technological factors will determine which kind of machinery the company will use in a particular country. This is dictated by the products a company can produce within a given time. Besides, the company should consider the political and legal requirements established by the government and pressure groups of each region. This is because the factors will determine the company’s production ability, design, pricing, and promotion. Furthermore, the Perfetto Juice Company needs to consider the socio-cultural factors. This is needed for the production of goods that are in-line with the cultural values of the company’s target market, as well as the cultural lifestyle.
On the other hand, the micro environmental factors are in the company’s propinquity. This is because they influence the company’s product range and organisation. Though the micro environmental factors affect the company directly, it is not possible for the company to change or improve them. They include market intermediaries, suppliers, governmental authorities, ultimate and industrial customers, and international customers. These factors are affected by the decisions made by the company. For example, the Perfetto Juice Company needs suppliers of raw materials such as farmers. However, the company cannot influence the decisions of farmers concerning the quantity and price of raw materials that they can supply at any time. Other factors influencing product differentiation, quality and quantity are the competitors and public. Thus, the Perfetto Juice Company needs to structure its business practices in line with the micro-environmental factors.
2.2 The Basis of Segmenting the Market
It is an important task for a single company to participate in a large-scale production, mass distribution and extensive promotion of products. This is because such operations result in increased operational costs. In order to reduce these costs, companies need to segment their market. Market segmentation is also meant to meet the demands of the target market. In the fruit juice industry, customers have similar preferences. All of them want juice that is meticulously produced and good for their health. Considering this requirement, the Perfetto Juice Company can segment its market as follows.
2.2.1 Demographic Segmentation
The product, juice, is not limited to any group, individual or gender. It is a product intended for everyone, be it the higher class, middle class or poor people. Though the product may require the target group to allocate a proportion of their income, it can be provided in quantities that would cater for people with different income. The main challenge for the Perfetto Juice Company is to convince its target market to buy their juice for its nutritional value. As such, the main target group of the company will be individuals that are health conscious and those who care about their weight. By taking into account this factor, the company will set affordable prices and adopt efficient strategies to convince its target group to buy the juice and smoothies produced by the company.
2.2.2 Psychographic Segmentation
Such issues as personality traits, lifestyle and personal values are used to segment the market. In this regard, the segmentation of the target group for such products as juice and smoothies should approach achievers. The Perfetto Juice Company should attract people who want to try their product in the market. The company’s advertising should focus on people of conservative views. Besides, it should create a perspective of healthier life if the juice and smoothies produced by the company are consumed.
2.2.3 Behavioural Segmentation
Based on consumer behaviour, fruit juice and smoothies can be segmented based on the benefits the consumers seek to achieve as a result of buying the product. The buyers look for the juice that will meet their preferences. Therefore, the company should ensure that the advertisements enhance customer loyalty. The Perfetto Juice Company should emphasise the importance to increase the consumption of the product during the day. To achieve loyalty, the company should ensure that the juice and smoothies serve the interests of the target market and satisfy customers’ expectations. This means that juice and smoothies produced should be of high quality.
2.3 Factors Influencing Market segmentation2.3.1 Strengths and Philosophies
The appropriate market segment can be described as the one where customer needs reflect the things a company has to offer regarding the business values, philosophy and product strengths. This will help the Perfetto Juice Company develop and deliver high-quality products. Besides, the company also has low-cost advantages in its operations. Therefore, it will benefit the company to choose a budget-conscious market with quality preferences.
2.3.2 Competition
Another external factor influencing market segmentation is the level of competition. According to the research, it is important for the companies to compare the benefits of offering products in different market segments. Choosing a marketplace with few competitors is always a better option. In the smoothies industry, customers rely on the major providers who control the market. The Perfetto Juice Company has an advantage since it is a widely recognised brand. From the scenario, the company was named the official juice and smoothies provider for 2012 Summer Olympic Games. This is a clear indication that the company produces quality products.
2.4 Consumer Buying Behaviour
The process of consumer buying is complex since there are many uncontrollable factors that influence customer buying behaviour.
Culture is the first factor influencing consumer buying behaviour. Culture entails the beliefs and attitudes adopted by people in the course of their development. Culture helps people develop opinions that influence their choices of purchasing particular products. As such, the Perfetto Juice Company needs to do a market research to gather information on the cultural preferences of its target market. This will help the company deliver products that will meet the customer’s cultural preferences.
Social status is the second influencing factor. The levels of social standing and income as well as an individual’s lifestyle influence their buying habits. A person who earns $200000 has a different lifestyle from the one who earns $2000. These two individuals have different buying habits. Besides, character also influences buying decision. Being either an introvert or extrovert influences the purchases made. Thus, the Perfetto Juice Company needs to engage in a vigorous marketing and advertising campaign to influence its target market in terms of purchasing juice and smoothies. The ads should focus on convincing the customers of the health benefits associated with the company’s products.
2.5 Product Repositioning
In some cases, the initial positioning of a product does not bring the desired results in terms of customer preferences. In other cases, this positioning could be successful, but the market position could be saturated. As such, companies need to reposition their products. For example, the target market may find the juice and smoothies to have a bad taste. Besides, they may dislike the packaging. As such the Perfetto Juice Company needs to address such issues by repositioning their product. For example, the company could improve the bad-tasting brand with a new one and add such labels as “New Tastes” to the juice packaging.
3.0 Task 3
3.1 Products Development to Sustain Competitive Advantage
To sustain competitive advantage, companies need to develop unique products. From the case scenario, it is evident that the Perfetto Juice Company develops the best products, which help it maintain a competitive advantage. The company employs differentiation and positioning strategies. The company produces a lineup of products distinguished by an amusing approach to the brand. The packaging cans have amusing labels that are refreshed twice a year.
3.2 The Role of Distribution Channel in Promoting Customer Convenience
A distribution channel refers to the processes through which a product moves from the production to consumption points. Each stage has organisations referred to as intermediaries. As indicated by the research, customers wish to buy from intermediaries because they offer a wider range of products.
Additionally, the use of the distribution channel will help the company reach out to more customers. Evidently, some potential customers may not be in a position to get to the headquarters of the company but through intermediaries, they will get access to the juice and smoothies market. Besides, through the use of a distribution channel, customers will have a consistent market supply. This is because the distribution channels will ease the storage of Perfetto Juice Company, which will in turn use the warehouses to store raw materials for production. The company can tack and trace the flow of its products in logistics networks through the use of barcodes. This will ensure that their customers get high-quality goods.
3.3 The Role of Pricing Strategies
Pricing strategies provide a reliable way of communicating with clients. Since the price is known to the buyer, they can compare different brands. The Perfetto Juice Company can use pricing to position its products as a high-quality brand.
Additionally, pricing serves as an instrument of competition. The Perfetto Juice Company can use pricing to differentiate its business from the competitors.
Studies report that pricing can substitute the sales promotion and advertising. As such, the Perfetto Juice Company can use pricing as a motivation to channel customers as a focus of the promotional strategy.
In determining the role of pricing strategies, the Perfetto Juice Company needs to evaluate the significance of prices in terms of customer reaction, competitive positioning and financial requirements.
3.4 Promotional Activity and Marketing Objectives
The promotional element of marketing is important for persuading customers to purchase a company’s brand over its rivals in the market. The integration of promotional activities is important to long-term brand building.
The first concept of integrating promotions is consistency. The Perfetto Juice Company should ensure that the ad messages reflect its core benefits of product quality. This will help the company persuade the customers.
The next important aspect is coordination. The timing and selection of promotions through the media are important for reaching customers and influencing them. For example, the Perfetto Juice Company can promote itself as a wholesome brand and strengthen the perception through community involvement to enhance advertising.
3.5 Elements of Extended Marketing Mix
The following forms part of the service marketing mix. The first element is people. In the delivery of a product or service, the person delivering it is not different from the product. If the seller is rude to the customer who is purchasing juice or smoothie, the whole experience is labeled as bad. Therefore, the Perfetto Juice Company should invest in the appropriate individuals to perform the service role.
The second element is the process. Apparently, the provision of service needs to maintain a balance between standardisation and customisation. Besides, the processes involved require special attention. The process should be clearly defined on behalf of the service provider. The Perfetto Juice Company should ensure that the process involves areas where customer preference can be accommodated.
The last element is physical evidence. The attractiveness and comfort of a service location can influence the experience of the user. Therefore, the Perfetto Juice Company should ensure that they are operating in a calm and comfortable environment to ensure customer attraction and retention.
4.0 Task 4
4.1 Marketing of Perfetto Juice Company using 4P’s
The marketing mix consists of four decisions that need to be made with the aim of satisfying customers and achieving the company’s objectives. The four decisions include product, price, promotion and place.
Product: the company deals with healthy natural products such as fruit juice and smoothies. These products have been traded on the market for long, and the market seems to be saturated. Therefore, the Perfetto Juice Company needs to reach out to more customers and offer affordable prices for the products. Besides, ensuring that the juice and smoothies are of high quality will help the company retain its competitive advantage.
Pricing: as indicated by the existing research, a company should consider pricing strategies for it to achieve efficient marketing. Pricing decisions depend on the company’s expenses and the prices of competitors. To retain customers, the Perfetto Juice Company should develop high quality products and quote lower prices than its rivals.
Promotion: with the increased competition in today’s market, it is important for the companies to adopt promotional strategies aimed create awareness of their products among their customers. The Perfetto Juice Company should adopt promotional strategies that include sales promotion, advertising and personal selling. The company can also use the social media to reach a wider target market. In turn, this will boost the market share and sales of the company.
Place: this denotes the location where the products can be purchased. This includes virtual and physical stores. The Perfetto Juice Company can either distribute its products through distribution channels or sell them directly to customers.
4.2 Business versus Consumer Marketing
The success of a company’s marketing strategy entails achieving an understanding of the markets of operation. These can be consumer or business markets. The difference between the two markets can be defined by determining who is buying the goods and why the goods are being bought.
In the business markets, goods and services are sold to different businesses, governments and intermediaries who then re-sell them to customers. On the other hand, in the consumer markets, the goods are sold to the consumers for consumption rather than for re-sale.
Due to the differences in the two markets, the adopted marketing strategies would also be different.
Business markets involve sales and purchasing of goods and services by various businesses, governments and market intermediaries to facilitate the finished product that is then re-sold to the end user. In contrast, consumer markets involve the purchase and sales of goods and services to consumers for their use rather than for re-sale. The company needs to develop its strategies based on the needs and buying processes of the specific market.
In the consumer markets, the buying decisions for larger purchases might be complex. This is because the decisions might involve multiple family members. This is unlike the situation in the business markets where the buying process involves high decision making.
4.3 Domestic Market versus International Market
Marketing has been defined as the efficient utilisation of the resources of a company to meet consumer demands. Marketing is carried out either locally and nationally or internationally. There are certain differences between international and domestic marketing.
Domestic market entails selling of the company’s products within a local financial market. On the other hand, international marketing entails selling of the products in an international financial market.
Unlike the international market, there are no language barriers in domestic marketing. Besides, obtaining data on marketing trends is easier. In terms of international marketing, every country has its business laws, and every company operating in the international market must follow them. In addition, the international market is unstable, and companies need to be ready for any changes.
Conclusion
The paper encompasses a report on the marketing strategy of the Perfetto Juice Company. The company is seen to have a strong brand image due to the production of quality products. However, due to the rapidly changing modern market, the Perffeto Juice Company needs to adopt effective marketing strategies. The paper has discussed a range of marketing elements such as promotional strategies, the marketing mix, macro- and micro-environmental factors, market segmentation, and product development aimed at ensuring a stable competitive advantage. So as to remain competitive, the Perfetto Juice Company needs to ensure that different aspects of marketing used by the company meet the wishes and needs of the target market.
