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Marketing

Cola Marketing Strategies

The advertisements on television and cinema houses will be aired in the summer season i. e. from June to September. The television campaign would be aired on BBC, Show Movies, MTV and other popular channels. Advertisements will appear on the television in two, four hour time intervals, one in the afternoon and the other in the night. The press advertisements would also start at the same time of the year and would appear in newspapers and magazines on a day to day or a weekly basis depending upon the nature of the medium.
Internet marketing would be done on a continual basis by advertising on social networking websites, sports websites and other websites that are popular amongst the youth (Promotion – introduction to the promotional mix, 2009). Implementation: The implementation of the devised strategies would start as stated from June under the supervision of the marketing director. There are a number of ways to evaluate the success of the implementation. Advertisements can be evaluated by conducting surveys and interviews with people amongst the target audience (Nielson, 2009).
The surveys would also be helpful in getting a feedback about the marketing strategy and will also be helpful in improving the strategy (McKay, 2002). Conclusion In an industry where two firms are responsible for 70% of the worldwide sales, a new entrant has a lot of challenges that lie ahead, before an actual product can be launched (The Story Of Coca Cola, 2009). The barriers to entry are in supply chain management, buying power of retailers and demands of distributors.

Apart from the logistics issues the biggest issue is to create brand awareness and to attract a new customer (Kotler & Armstrong, 2003). Customers are reluctant to shift from the brands that they like and have seen for years. Hence, a new firm has to develop a sound marketing strategy in which the firm targets is market effectively and then positions its offering to the selected target market. Consequently, product differentiation becomes an important challenge, since essentially there is not much difference in the carbonated soft drinks.
Brands only succeed if they are able to convince the customer that they are offering something different and better as compared to the others. This can be achieved by effective advertisement. Advertisement is one of the most important tools of creating a brand image in the customers mind. Therefore, the strategy for our product is to target its market effectively i. e. the youth and adults, offer them a variety of products that they can use and above all differentiate our product as the one that is better than the others (Kotler & Armstrong, 2003).
References
Ahmed, S. (2009). Marketing Strategies: Coca-Cola. Retrieved April 16, 2009, from http://www. scribd. com/doc/10552013/Coca-Cola-Marketing-Strategies Beyond Colas: The Soft drink category stretches from traditional colas into flavored soft drinks, energy drinks and alternatives. (2002). Beverage Industry: Stagnito Publishing Company. Coke. (2009). Retrieved April 17, 2009, from Coca-Cola Product Descriptions: http://www. virtualvender. coca-cola. com/ft/index. jsp Kotler, & Armstrong. (2003). Principles of Marketing 13th ed.
New Jersey: Prentice Hall. McKay, B. (2002). Pepsi and Coke Roll Out Flavors to Boost Sales. Wall Street Journal . Nielson, A. (2009). The drink pocket book. Pepsi. (2009). Retrieved April 16, 2009, from www. mcafee. cc/Classes/BEM106/Papers/UTexas/2003/Pepsi. pdf Pepsi Targets. (2009). Retrieved April 16, 2009, from http://www. pepsi. com/ Pepsico Financial Statements. (2008). Retrieved April 16, 2009, from http://ccbn19. mobular. net/ccbn/7/195/203/ Promotion – introduction to the promotional mix. (2009).
Retrieved April 16, 2009, from tutor2u. net/business/marketing/promotion_mix. asp Push or Pull? (2009). Retrieved April 17, 2009, from http://tutor2u. net/business/marketing/promotion_pushpull. asp Sophie. (2003). Retrieved April 17, 2009, from sophie. neuez. free. fr/Rapports/Rapport_comm. pdf Strategic Marketing: Coca Cola Company Versus Pepsico. (2002). BusinessWeek , 12. The Story Of Coca Cola. (2009). Retrieved April 16, 2009, from Oakwood Publishing Company: http://www. studyworld. com/basementpapers/papers/stack16_16. html

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Marketing

Unit 1 – a Managerial Approach to Marketing

Kimberly Bell American Intercontinental University Unit 1 Individual Project MKT640 – A Managerial Approach to Marketing November 11, 2012 Abstract This paper reflects challenges brought on by starting up a new product, the effectiveness and efficiency of technology when marketing, and the battle of legal and ethical complication. Given are examples of different situation of each topic to demonstrate how each take place when starting a new product or service. The Marketing Scenario Introduction
When bringing a new product or service together there are certain aspects to be considered for a successful product or outcome. Those aspects may include target, sector, location, creating an effective marketing plans and advertisement strategies. There are also certain issues and challenges that may arise when bringing this new product or service into existence. Challenges in New Product Launches When bringing the new product or service into the market, without a plan in place for its targeted consumers, sector, location, sales and distribution tactics there will be several issues and challenges to face.
According to Bloom, if all these problems are anticipated and handled creatively, social marketing efforts can succeed (Bloom, 1981). Challenges: Target Market and Sector. One challenge that is very distinct is target consumers and sectors. These two challenges differ where ever you go. When bringing that new product into existence you must do the research of the market for the sector and target market. Therefore, realizing the market sectors as well as the target consumer can determine the difference that one or the other may cause for a major challenge.

For example, 1990’s McDonald’s launched a product called Deluxe line to target the older people and launched a tag line “Especially for the grown up taste” to market it but the launch failed disastrously due to wrong selection of target market. Challenges: Effective Marketing Plan Another challenging task is creating an effective marketing strategy. Creating a effective marketing strategy when initiating a new product is all about keeping the consumers needs in mind. The information presented in the marketing should so explanatory that it gives precise information to the consumer about the details of the product.
To give misleading information will cause product failure. Therefore, the marketing will be unsuccessful. For example, Levi Strauss came out with a product called type1 jeans with some different features in 2002 but the marketing and advertisements wasn’t properly devised and erroneously lead consumers in turn leading to failure of the product launch (Bonander, 2010) Challenges: Competition Another challenge is competition, when initiating a new product in the market because the market is constantly changing, entrepreneurs are constantly taking risks (ThinkQuest : Library).
For example, in 1985 Coca-Cola launch a new version of the drink with a tag line “The best just got, better”, but the taste and quality of the new drink was not accepted by the consumers as the strongest competitors PepsiCo took the advantage and maximized its sales (POM final). Technology and New Product Development Marketing efforts can be enhanced by the use of technology. While sales and profits are progressing, it can also help the organization succeed in its marketing campaign. For example most companies are using social media and networking site like LinkedIn to market their business and services.
These social networking sites can make the new product campaign even more effective. Technology: Distribution Technology can also allow way for distribution of products or services. Therefore, through desk top advertising, e-marketing, and online marketing, technology has led the way to easy access marketing (Herbert and Grace, 2008). For example, a software Gold Fire Innovator, developed by Invention Machine has three modules and comprises of tools that make use of value engineering and well formulated problem-solving methodology (TRIZ) to provide assistance to the users concerning the problem definition.
Its second module called researcher Facilitates Engineers in executing semantic searches related with the powerful databases for finding appropriate resolutions and concepts (Frey, 2006). Technology: Efficiency and Effectiveness Technology also helps in the quality, effectiveness, and efficiency of product data. For example, in the banking industry several models based on Data Envelopment Analysis (DEA) have been developed to help with the analyzing and processing of data (Yang, 2009). This process not only helps the organization to be more efficient but also more effective when servicing its customers.
Technology: Display Technology can also help to display your new product in an arena for a big or small audience. For example, with a web page the new product can be advertised and sent over the internet, whereas it will be displayed in a database to allow a professional and systematic presentation to a large audience and sharing the of a wealth of information on a continued bases. Legal and Ethical Implications in New Product Development Many legal and ethical implications are faced when launching a new product or service.
For example, packing, labeling regulations, disclosures, and standards. There are difference regulations set forth in different countries. There is a must that organizations understand the responsibilities regarding regulations are crucial to ensuring worldwide compliance and sustained economic edge (Akin-Ogundeji, 2010). Legal and ethical implications: Packing and labor There are various countries, which have specific regulations regarding packaging and labeling. There are also stipulates on how and where the labels should be placed on a products.
For example, in the US the PDP, is that portion of the package label that is most likely to be seen by the consumer at the time of purchase (General Food Labeling Requirements). This PDP must appear on the front of the product. Legal and ethical implications: Advertisement or Display The media also creates controversy due to interpretations of the signage used to advertise. For example, baby food called Gerber, when it was launched in the France, it means stack or vomiting, which had very bad impression on the customers and led to the reduced sales of the product (Perlman, 2008).
Legal and ethical implications: Media Advertisement and Display can really damages the launching of a new product because the audience can misused or misunderstand the given information. For example, when Coca-Cola entered china with the same name, the characters revealed the meaning as “Bite the wax tadpole” which was very unfortunate and misinterpreted by the people resulting in a controversy (Bite the Wax Tadpole). Conclusion It is to be concluded that from the above discussions that product development is extremely important.
It also determines the organizations success and failures. Therefore, it can provide a great advantage to the company success. However, in technology can provide a huge advantage and shorten the time of developing and marketing a product. Technology allows an organization to customize their product in the market. Lastly, the product should comply with the legal aspects to avoid problem with its success. References Akin-Ogundeji, D. O. Get Your Business Ethics Articles and Articles on Corporate Social Responsibility From Ethicsworld. rg. Get Your Business Ethics Articles and Articles on Corporate Social Responsibility From Ethicsworld. org. Retrieved November 11, 2012, from http://www. ethicsworld. org/ethicsandemployeesBhasin, H. (2010, January 22). Bite the Wax Tadpole – Why we chose a silly name. Web Development Ireland. Retrieved November 12, 2012, from http://www. bitethewaxtadpole. com/bitethewaxtadpole. htm Bloom PN, Novelli WD. Problems and challenges in social marketing. J Mark. 1981 Spring;45(2):79-88. PubMed PMID: 12280283. Retrieved November 11, 2012.
Bonander, R. 2010. Top 10: Failed Product Launches. Retrieved on November 11, 2012 from http://ca. askmen. com/top_10/entertainment_100/139d_top_10_list. html Brand Failure – McDonald’s Arch Deluxe. Marketing Strategy, Marketing Management, Marketing News, Advertising reviews. Retrieved November 11, 2012, from http://www. marketing91. com/brand-failure-mcdonalds-arch-deluxe/ Competition in the Market  The laws of supply and demand are bestevident in a competitive market. ThinkQuest : Library. Retrieved November 11, 2012, from http://library. hinkquest. org/C008486F/iiid. htm Frey, C. (2006). Goldfire Innovator takes product development, process innovation to the next level. Retrieved November 11, 2012 from http://www. innovationtools. com/Resources/ideamgmt-details. asp? a=147 General Food Labeling Requirements. U S Food and Drug Administration Home Page. Retrieved November 12, 2012, from http://www. fda. gov/Food/GuidanceComplianceRegulatoryInformation/GuidanceDocuments/FoodLabelingNutrition/FoodLabelingGuide/ucm064866. htm Herbert, H and Grace, A. (2008).
Technology. Retrieved November 11, 2012, from http://www. npgoodpractice. org/Topics/Technology/Default. aspx Perlman, C. (2008). 10 marketing Faux pas. Retrieved November 11, 2012, from http://www. level2wo. net/? p=35 POM final. Scribd. Retrieved November 11, 2012, from http://www. scribd. com/doc/75844842/POM-final Yang, Z. Bank Branch Operating Efficiency: A DEA Approach. Bank Branch Operating Efficiency: A DEA Approach. Retrieved November 11, 2012, from www. iaeng. org/publication/IMECS2009/IMECS2009_pp2087-2092. pdf

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Marketing

Salary Report: Marketing Manager

From the data provided by the Salary Wizard in CollegeGrad. com, powered by Salary. com, the median compensation for a marketing manager in Foster, CA is $110,071 annually (CollegeGrad. com). This is from the data taken from the human resources departments as of November 2008. On the other hand, the data provided in the America’s Career InfoNet shows that the median salary for the same position in California is slightly higher and is valued at $122,500 (“Marketing Managers: California”).
The data shows that there is a relatively high compensation for the marketing managers in the area of San Mateo, California. This could be attributed to the fact that this occupation falls among the high-paying jobs in the said industry. However, the demands in terms of knowledge, skills, and abilities would also have to be commensurate with that of the compensation that is given to the individuals in this occupation. With the skills and abilities that I have, I expect a compensation of $110,071, which is the median in Foster, CA.
This is because I could not consider myself to be on the average and would still have a long way to go in terms of professional career in respect to the value that is placed on my experience, skills, and abilities. Likewise, the capabilities that I have still show that there are rooms for improvement and advancement. It can be said that marketing managers in California enjoy a relatively competitive compensation in the industry. Likewise, I expect a median income with the experiences and abilities I have as there are still rooms for improvement to achieve a higher compensation.

References
Marketing Managers: California. State of Minnesota. 19 November 2008 <http://www. careerinfonet. org/occ_rep. asp? optstatus=011000000&soccode=112021&id=1&nodeid=2&stfips=06&search=Go#op2>. CollegeGrad. com. Marketing Manager. Salary. com, Inc. 19 November 2008 <http://collegegrad. salary. com/salarywizard/layoutscripts/swzl_compresult. asp? jobcode=SM15000044&jobaltername=Marketing+Manager&jobtitle=Marketing+Manager&narrowdesc=Marketing&narrowcode=SM04&zipcode=94404&metrocode=156&pagenumber=2&searchpage=keywordtitleselect&searchtype=1&geo=San+Mateo%2C+CA+94404>.

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Marketing

The aim of marketing is to know and understand

“The aim of marketing is to know and understand the customer so well that the product or service fits him or her and sells itself. ” (Trucker) Produce arguments for and against this statement. By changing In 1973, Peter Trucker stated “The aim of marketing is to know and understand the customer so well that the product or service fits him or her and sells itself. ” Considering that marketing is an exchange process between two parties which results in both customer and organizational satisfaction (Jolter & Keller 2006).
It seems logical that, if a business is able to produce a product that is able to sell itself I. E. Does not require the assistance of a sales person) then marketing would be accomplished. That is, the customer acquires the product they are looking for, and the business gains its profits. However, Trucker further complicates the situation by saying this is achieved through “knowing and understand the customer well. ” This suggests that knowing and understanding customers needs is the only factor that matters.
Modern day marketers embrace the concept of finding the right product for their customers (Jolter & Keller 2006). Thus by identifying and pleasing customer needs his will lead to satisfaction of current customers and the attraction of new customers (Hemingway & Bayonne 2007). For example, when Sony invented its Play Station, Gillette its Mach Ill razor, and Nintendo its WI all three companies designed a product that customers desired so much they were inundated with orders before the products reached retailers (Jolter & Keller 2006).

Furthermore, by dividing consumers into groups of people that share the same needs, businesses are able to concentrate their efforts contributing to marketing success (Kennedy 2000). In 2003 Cataracts and Pepsi found and exploited the gap in he market for ready-to-drink coffee products. This proved a successful venture for the businesses and they are now market leader in the industry. However, it was not as simple as identifying customers needs. Cataracts and Pepsi produced marketing campaigns that would enhance people’s awareness of the ready-to-drink coffee and waited for the demand to catch up to the market opportunity.
This example shows us that marketing is not always a reaction to customer needs, but is a more proactive process where people are educated and told what they need. Customer observation and feed back are also important in the evaluation of customer distraction. Woodside and Wilson (1994) found by getting their customers to compare competitors marketing mix strategies, they uncovered the way a customer their preference. Furthermore, satisfied customers lead to long term loyalty and retention which ultimately creates success and profit for businesses.
For example, the lifetime value of a Cadillac owner is approximately $350,000. Thus, if a customer is lost early in the life cycle it would mean loses of hundreds and thousands of dollars for general motors (Best 2005). However, we live in a world filled with industrial rivalry and an ever changing macro environment. Hence, customer satisfaction alone will not achieve market success. When a business takes a ‘marketing orientation’ approach, not only does it analyses its customers, but it also takes into account competitors, and inter departmental dynamics (Kohl’ & Gasworks 1990).
Understanding the competitor plays a crucial role in the success of a marketing campaign (Ho & Choc 1997). It allows for the assessment of a business strength and weaknesses in comparison with other companies in the same industry, and the need for improved marketing efforts. Be it through product innovation and differentiation or increase advertising and promotion. For example, if we look at the gaming industry in the last decade. Sage, Nintendo, Sony and Microsoft have used each others as spring boards to create new and better products for their customers.
Furthermore, the long term effectiveness of a marketing strategy has been shown to closely relate to a company’s actions and not consumer response or competitor response (Appeals 2004). Thus, it is also important to note that whilst knowledge and understanding customers and competitors is essential, it is the way in which the information is used which leads to success. In conclusion, the statement by Trucker is correct to a certain degree. Ultimately if a product or service is able to sell itself then marketing is no longer required, hence the goal/marketing has been achieved.
However, the process of planning a successful marketing strategy involves more than Just knowing and understanding customer need. It also requires analysis of competitors and careful execution of a marketing strategy base on the knowledge gained.

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Marketing

Lvmh and Luxury Goods Marketing

1. Bernard Arnault has built LVMH into a luxury goods empire by making numerous acquisitions. Describe the strategy is being used here? Discuss why you agree or disagree with this type of strategy. If you disagree, what alternative tactics would you use?
Actually Mr. Bernard Arnault, one of the richest men in the world who took control of LVMH in 1990, has been snapping up luxury brands during past two decades one after another. He has build LVMH into a luxury good empire by conducting a selective acquisition strategy with which I agree. Now LVMH has more than 60 brands under control and is still pursuing some others including the old famous family business; Hermes.
LVMH structure is made up of Wines and Spirits, Fashion and Leather goods, Watches and Jewelry, Perfumes and Cosmetics and Selective Retailing. Although some may argue that there are issues such as lack of concentration on core business thereby exclusivity and rarity which are main characteristics of luxury brands can be faded, I firmly believe that not only has Mr. Arnault saved these special features of the business and is still focused on prestige, he has improved the profitability of each division by creating synergy between subsidiaries in terms of cost, corporate and management synergy.

“Synergy, in general may be defined as two or more agents working together to produce a result not obtainable by any of the agent independently. Corporate synergy occurs when corporations interact congruently. A corporate synergy refers to a financial benefit that a corporation expects to realize when it merges with or acquires another corporation” (Synergy).
As result of corporate synergy and this partnership, LVMH now has a bigger market share, wider range of products and less competition because the competitors are now members of the group and are all working together in a coordinated way. On top of that, they can take advantage of the existing selective retailing outlets to differentiate their products by adding value in their offering and demonstrate them as distinctive. Also, prestige, luxury and quality associated with the brand ‘LVMH’ influences every item being presented in these shops.
“A cost synergy refers to the opportunity of a combined corporate entity to reduce or eliminate expenses associated with running a business. Cost synergies are realized by eliminating costs that are viewed as duplicate within the merged entity.” (Synergy) This means reducing; promotional and advertising costs, sales cost, shipping cost, travel cost and also some managerial cost such as certain executives, human resources and head quarters office cost which finally influences companies bottom-line.
“Synergy in terms of management and in relation to team working refers to the combined effort of individuals as participants of the team. The condition that exists when the organization’s parts interact to produce a joint effect that is greater than the sum of the parts acting alone” (Synergy) As stated in the text of this case study,” Arnault implemented a corporate restructuring that groups the company’s subsidiaries into divisions. Previously, the heads of individual subsidiaries reported directly to Arnault; now, division heads meet with him to discuss strategy. Notes Arnault, “It’s much more efficient, because it allows us to put into practice all the synergies between the different brands in a coordinated way.”
Francesco Trapani, CEO of the Bulgari Gruop, the luxury brand recently acquired by LVMH, said: “The 2010 financial results show how the Company was able to brilliantly overcome the economic slump, reaping the benefits of the efficiency and cost containment strategy and therefore becoming more solid. At the same time, the intense creative and product development activity generated an even more competitive product offer, which enjoyed great success in all product categories.” (Knowel) He added: “At this positive moment of strong top-line growth, our alliance with the LVMH Group has created new synergies that will enable Bulgari to strengthen even more and pursue its long-term, worldwide growth.” (Knowel)
In conclusion, I believe that Mr. Bernard Arnault has made LVMH into the word biggest luxury brand by adopting acquisition strategy and creating cost, corporate and management synergy between divisions of the group.
2. How do LVMH executives adjust prices in response to changing economic conditions, and why?
In response to changing economic conditions, LVMH executives adjusted prices in sepcific ways in each market. In Asian markets, Patrick Choel, president of the perfume and cosmetics division has increased wholesale prices in order to discourage discount retailers from selling the products to consumers at low price. Instead, he has reduced the advertising budget to offset profitability in case the company faces a decline in sales. In countries where LVMH faced currency devaluation, managers raised the price to counteract the effect of currency depreciation. In Indonesia, the chairman of Vuitton, Mr. Yves Carcell canceled the plan for opening a new store.
Since Japan market is sluggish and there has not been a sign of soon economic recovery, Japanese consumers are reluctant to invest in stock market. Mr. Arnault figured out the difference between Japan where most of his business is, and the rest of Asia. He noted: “Japan is in a growth slump, but it isn’t going to have the same difficulties as Korea or Indonesia”. Japanese had not many other spending option and executives decided to raise prices at Louis Vuittons Japanese store.
Also Louis Vuiton manageres has worked closely with tour operators to predict the number of Japanese tourists traveling in Asia and to Hawaii whom 75% of sales depends on. At peak of tourism, they increase the price by 10 to 22 percent to maximize profit.
Furthermore LVMH took advantage of crisis by renegotiating store leases in Asian cities. In some cases, the company extended lease terms longer than before and reduced the rate by as much as one-third which resulted saving for the company.
The overall result has been an increase in price and the rationale behind this decision is the fact that price perception is a critical component of luxury goods’ appeal. In fact, executives know that sales volume would decline sharply due to the effect of crisis and they have lost a big number of their customers. It is not a good time for expansion and opening new stores, so they decided to stay focused on the narrow market segment of their loyal customers. Those who still had notable disposable income shaped a niche market which was still large enough to be profitable. On the other hand, LVMH helped profitability by reducing the cost and cutting expenditures on advertisements. This was the adjustment executives made as opposed to the other alternative; reducing the price and presenting products to a bigger number of consumers.
3. Explain why some customer might think the high retail prices charged for luxury goods are worth paying?
As peoples income increases, they are more willing to buy luxury goods because the demand of luxury items increase as people get wealthier. According to wikipedia.com once the consumption of luxury was limited to the elite classes which meant whatever the poor cannot have and the elite can was identified as luxury.
Consumers are willing to pay high prices for luxury goods because the brand is associated with quality, durability, scarcity and beauty. In fact, consumers pay for these values that they obtain by purchasing a luxury item.
“Several researchers focus on exclusivity dimension and argue that luxury evokes a sense of belonging to a certain elite group. Prof. Jean-Noel Kapferer, takes an experiential approach and defines luxury as items which provide extra pleasure by flattering all senses at once” (Luxury). Using luxury goods is a lifestyle and shows the wealth of consumer. These can also be reasons behind why some pay high retail prices charged for such items.
4. How were luxury goods marketers affected by the slowdown in tourism that followed especially after the attacks of September 11, 2001?
If we take a look at marketing mix, we can see what has been affected by slowdown in tourism is place, where a good or service is presented. Luxury goods are mainly presented in duty free shops at airports, in hotels and attractive places as tourist destinations. With the slowdown in tourism, as people are less willing to travel, airports hotels and attractive places are not that busy compared to the days before September 11 terrorist attack. Even those who still travel might care less about luxury because their main concern is security during the flight and at destination. I think this is how luxury goods marketers were affected by slowdown in tourism.

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Marketing

Marketing and Private Label Products

Topic: Zappos’s private label products Recommendation: To persuade the Zappos. com sell private label products to increase the revenue and decrease the transportation costs Audience Analysis: The board of Zappos. com, Operation Department Manager, Marketing department manager. Accountants of Financial department manager. Agenda: 1. Double-Digit annual sales decrease. 2. Blooming sales by selling private label products 3. Benefits and concerns of implementing this project 4. conclusion I. Introduction Zappos, world’s greatest online shoes retailer.
Though we hit 1 billion in our annual sales last year, two years before we expected, we are now confronted with challenge to keep stable growth in revenue. our profit has been decreased slightly since we committed next day delivery. During the economic recession times, we have to make some change to conquer this problem. As Marketing department staff, my proposal is that we could produce and sell our private label products. we have good reputation and large customer network. We can raise our profit by produce and sell private label products
Transitions Let’s get started with the problem II. Body A. Double digit sales decrease during the economic recession times 1. During the economic recession times, our revenue remain growing slightly, however our growth rate has been decreased rapidly. Let’s see the chart of our annual sales growth rate since 2001-2009. 2. Since many brands sell Canadian distribution rights to other partners, we can not sell these brands on its Canadian site. As a result, we can’t set a distribution center there to achieve substantial volume. B. Solution 1.

Selling private label shoes which are designed in US headquarter, manufacture in China. 2. Corperate with Chinese local factory to sign a contract to produce guaranteed qualified shoes. C. Benefits 1. Selling products from suppliers is less profitable than selling private label items. “If you can find a way to add 10 points of margin, you’re going to have a big success in that product line,” says Schmid, chairman and founder of J. Schmid & Associates in Shawnee Mission, KS. Selling products from suppliers is less profitable than selling private label items.
As we can see from the chart of Gross margin. 2. Selling  private label supports a catalog’s brand positioning. “Having hard-to-find or unique merchandise sets you apart — and this is especially [important] for a cataloger D. Counters 1. To Manufacture private label shoes, Zappos will increase R&D expenditures. It might be a problem for company’s operation cash flow. 2. Another big concern of sell private label shoes is risk of bad reputation of private label shoes. But I have confidence in our product department.
Transition: I have demonstrated the current problem we’ve met and I listed the advantages of selling private label items, the cost and benefits we would gain if we do this project. And the last, the next steps to be taken for this proposal. III. Conclusion 1. As we realized that our annual sales growth rate has decreased rapidly, also our gross margin has been maximized. Zappos should improve all aspects of its business to prepare for the difficult economic times 2. By outsourcing manufacture to China and designing in US, it can bring Zappos low cost, high quality shoes. . Final Recommendation: As Board of Directors of Zappos. com, you should consider selling private label shoes to our customers. References: 1. http://blog. minethatdata. com/2008/04/zappos-sales-trajectory-and-customer. html 2. http://bls. gov/fls/chartbook/section3. htm 3. http://blog. minethatdata. com/2009/09/zappos-profit-and-loss-statement-2007. html 4. http://blogs. zappos. com/blogs/ceo-and-coo-blog/2008/02/19/zapposcom-update-february-19-2008

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Marketing

Marketing Manager

Currently, Kellogg Company has been experiencing tremendous success in their new marketing strategies. Their savings are up and they are continuing to make profits in view of their employee efficiencies and coordinated sales and operations planning process. In connection to this, we would like your company to experience the same turn around in terms of sales and profits by adopting a new strategy pattern after the Kellogg’s marketing strategy, in order to address current problems relating to sales orders, pricing, delays, missed deliveries and so forth.
Kellogg’ experience As you may not know, Kellogg experienced the same problems that you are facing. Upon management evaluation, they found out that despite the huge peak in demand, it didn’t translate into an increased profit. This was because even though Kellogg’s sales personnel were making sales deals that moved a lot of cereals, but transactions were at terms that did not necessarily made profits. Sales forecast were frequently incorrect, and distributions were often inefficient resulting most of the time to redeployment of product to fulfill the order.
Upon careful evaluation, it was found out that much of the products are wasted and /or damaged as production personnel were determined to produce more cereals in order to avoid changeover because of missed deliveries. Given the success which Kellogg has experienced over the past years using a new strategy, we would like to draw your attention to the importance of a sales and operation planning process. We understand that Fitter Snacker is having the same problem even though you have enough personnel to run the sales of the company.

We honestly believe that developing an effective sales and planning process will help not only towards addressing the problems but most importantly in increasing the savings and profits of the company. As you know, process has been very important towards any corporate activities. Process is everything else in the group including how the group is discussing the activity, who talks or in the case, who is effectively doing things, and who does not. Business process therefore is simply an integration of the functional areas of the company.
That is, it will facilitate sharing of data effectively and efficiently between and within functional areas. Developing sales and operation process will certainly improve Fitter Snacker’s sales performance because it will help avoid much of the problems confronting the company such as incorrect pricing, excessive call to the customer for information, delays in processing orders, missed deliveries, and so on because details and other information regarding customer’s concern is not monopolized by a single department. In other words, every department can be functional to address this concern.
Shared information on customers concern is doing business on the customer’s point of view which more effective. In order to work well on this, you may need to check on the benefit of Enterprise Resource Planning (ERP). ERP programs “help to manage company wide business process, using a common database and shared management tools” and it supports the “efficient operation of business processes by integrating throughout a business tasks related to sales, marketing, manufacturing, logistics, accounting, and staffing” (Chapter 1, 1). Work Cited Chapter 1 “Business Functions and Business Process”

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Marketing

A Marketing Study

E-commerce or Electronic Commerce, is simply the business of buying and selling products in the electronic market, in other words known as the Internet. It provides a new medium for consumers to interact and find their needed and desired goods. Today there are already a number of E-commerce business types such as Business to Consumer (BBC) where companies offer a variety of products through catalogs using the shopping cart software, and Consumer to Consumer (ICC) where a site offering free classified ads and forums serves as a third party between meeting buyers and sellers.
This Marketing Study illustrates a proposed business venture, E-commerce in nature, to one of the most popular brands in 7-Eleven. The first part of the study will focus on the proponent company and the industry it Eleven would be determined on the basis of its hold of the market and its major monitors. The internal attributes of the company are also presented using the SOOT Analysis tool. All of these information regarding 7-Eleven will be used to arrive at the proposed new product: 1 Connect.
The marketing plan for the 11-Connect brand would be discussed through its benefits and unique selling position, as well as the steps on how the service works. Here, it would be shown that the number and distribution of 7-Eleven stores throughout Luzon plays a major role in the success of 11-connect. Finally, a financial analysis is conducted on this venture in order to determine its reparability. Using a price lower than all of its competitors would still produce a higher margin of profit because of the minimal costs that would be needed to fund the project. 4 page II.

SITUATION ANALYSIS A. Company Background & Introduction 7-Eleven is a multinational company that franchises and licenses convenience stores. Currently, it has more than 46,000 outlets, which is a thousand more than the next leading franchiser in McDonald’s. Its primary headquarters is located in Dallas, Texas USA, while having large markets in Canada, Japan, Taiwan, Thailand, Malaysia, and the Philippines. The company’s establishment in the Philippines was on December 13, 1982 when the Philippine Seven Corporation (SC) acquired the license from Seven Eleven, Inc. Then Southland Corporation) to operate 7-Eleven stores in the country. Its main office is situated along Artists Avenue in Manhandling City, as more than 700 stores are distributed throughout Metro Manila, while maintaining presence in the whole of Luzon. In the year 2009, the company launched the Philippines Foundation which stands as its corporate social responsibility arm. Its main function is to benefit the communities eyeing served by each 7-Eleven store by giving priority to education, health and nutrition for preschool aged students belonging to poorer families.
With its success in brand recognition and financial productivity owing to the rapid multiplication of stores, along with its socio-profitability, it is no surprise that 7-Eleven has been ranked consistently in Entrepreneur’s Franchise 500, recently becoming the top franchise. It was also the 38th fastest-growing franchise while gaining the 2nd rank in Low Cost Franchises. These accomplishments by 7-Eleven are achieved as the many keeps up with its vision, maintains its corporate values, and pursues its goals (Table 1) while the summary of the background information on 7-Eleven is shown in Appendix A.
Table 1: Core of 7-Eleven 7-ELEVEN CORE Our Vision is to be the best retailer of convenience for emerging markets. Customer- focused Team work convenience Vision Corporate Values Goals 5 Page B. Market and Industry Analysis The products that 7-Eleven offers differ widely from actual items to services. Items are either non-edible such as cosmetics and school supplies, or food varieties from snacks, to drinks, to rice meals. The services meanwhile include bills and online purchases payment. A store would really offer convenience by providing all of the necessary and wanted products that a customer would need. ) Market Trends The market for this industry is practically every consumer of food and beverage as these are the main products that 7-Eleven provides. In narrowing this down, the consumers involved are those who prefer easy, quick and urgent transactions that could be found in nearby convenience stores. The market is less cost conscious and isn’t as geared into Health & Wellness since products offered by Hess stores are going to be more expensive and processed in nature. 2) Market Needs & Wants The needs and wants of the market are presented in the following table (Table 2).
Table 2: Needs and Wants of the Market MARKET NEEDS & WANTS Food options Beverage options Needs Secured dining places Cosmetic options Medicine Availability of products Wants Proximity of products Ease of buying Speed of transactions Consumers clearly need food and drinks and various options for each in order to sustain their bodies. A secured and well-ventilated area for the consumption of these odds is also essential for the consumer. Cosmetics such as shampoos, soaps, and lotions as well as medicine are the other needs of the market.
The wants meanwhile pertain to desires such as being close to the wanted products, having many options 6 | Page a certain item, and the ease and speed of buying. The convenience stores industry is designed to be able to provide these necessities and desires to customers. 3) Target Market and Market Size On a broad scale, the target market of 7-Eleven is practically everyone, especially since every person, at least in Metro Manila, could loud yield customers who want to easily access their needed and wanted products and services due to their time constraints.
Mostly, these are businessmen, students or laborers who only buy when they need a certain product. The target market could also consist of those with buying impulses. These can be people who stay up late at night suddenly deciding to buy food and refreshments, or employees seeking a quick break to buy snacks or treats from the nearby 7-Eleven. The market also includes households abruptly running out of stock of cosmetic products and those holding parties in need of drinking supplies. Basically, 7-Eleven has a wide and diverse market to cater.
The only ones not belonging to this market pie are most mothers who typically would want and find more time to go to supermarkets, compare prices, and choose the better options. C. Competitive Analysis The major competitors of 7-Eleven are the other convenience stores which are operating and open to customers for 24 hours. These include Mini Stop, Mercury Drugstore and San Miguel Food shop. 1) Marketing Mix The marketing mix comprises of the product range of each of the competitors, their pricing, the placement or channels of reaching the target market, ND the promotions which are ways to communicate with the customers (Table 3). 1 page Table 3: Marketing Mix MARKETING MIX Competitors Established Date Mini Stop August 2000 Ready-to-eat food, Packed food, Beverages, Health & beauty care, School supplies Similar to 7-Eleven Franchising Mall posters Mercury Drug Store March 1945 Packed food, Health & beauty care, Medicine Similar to 7-Eleven Franchising Mercury Suzuki Card, Freebies San Miguel Food shop May 2001 Product Range San Miguel food and beverage products Pricing Placement Promotion Similar to 7-Eleven Franchising Gasoline station posters The variety of products differs from one company to another.
San Miguel Food shop has the least product range as it is limited to its manufactured goods only. Mercury Drugstore has an edge on each of its competitors with its medicinal product lines, while Mini Stop is the most at par with 7-Eleven in terms of product variety. The pricing and placement of all the competitors listed doesn’t deviate much from 7- Eleven’s while promotional strategies are mostly limited to poster advertisements. Convenience stores in the Philippines. According to Zinnia Deal Penn, 7-Eleven has an estimated market share of 50%.
Figurer shows the market share (in percentage) of four dominant 24-hour convenience stores. 8 | Page Market Share % of 24-Hrs Convenience Stores in the Philippines 2% 23% 25% 7-Eleven Mercury Self-Serve Ministry San Miguel Foods Figure 1: Market Share of 7-Eleven and its Competitors It could be seen that the closest competitors of 7-Eleven are Mini Stop and Mercury Drugstore as both have a significant share of the market. Moreover, Mini Stop offers very similar products with 7-Eleven and has established itself in the consumers’ minds as the primary competitor of 7-Eleven.
Table 4 summarizes the business performances of each of the competitors. Table 4: Competitor Business Performance Market share Size Value to customers strengths BUSINESS PERFORMANCE SUMMARY 23% 25% 250 outlets 700 outlets Convenient, High quality, High service High standards in food, Wide product lines, Len- store prepared products New entrant Convenient, Reliable Wide product lines, Availability of almost all kinds of medicine Slow service 2% 50 outlets Convenient Near gasoline stations Limited to San Miguel products Weaknesses 3) Industry Attractiveness Porter’s 5-Force Model: 1.
Supplier Power: Since 7-Eleven offers a wide variety of products and is not limited to a specific brand of any item, the power of supplier is low because it can choose the 9 | Page most affordable company that can provide high quality items at the same time. The suppliers cannot mark its items with high prices because 7-eleven can easily switch to their competitors. 1. 2 Buyer Power: Buyers can slightly affect the pricing of 7-eleven items but only compared to the pricing of its competitors such as Mini Stop.
However, despite of the much higher price of goods compared in supermarkets, buyers cannot drive eleven’s pricing due to the additional service it offers, which is convenience. 1. 3 Competitive Rivalry: Currently, Mini Stop is 7-eleven’s major competitor because they one would offer new product or service, the other makes sure it will be available in their store in the next day. There are only few products which are only available in 7- eleven and some of them are Moonshine milk tea and the very famous Slurped. 1. 4 Threat of Substitution: Customers may opt to buy in supermarkets where there is a wider range and much lower cost of products.
However, these are open only for a retain period of time and a little far from residential houses. They can also choose to buy in sari-sari stores which are much near their houses but only with few choices and also, on limited period of time only. Unlike in 7-eleven, stores are open for 24 hours and 7 days a week and can provide almost all kinds of food and beverages and other items. Therefore, the said substitutions are not a big threat to 7-eleven. 1. 5 Threat of New Entry: Entrance to convenience store industry will be difficult because this requires good distribution system which cannot be easily learned and implemented.
It will cost long period of time to negotiate with good suppliers, put up several number of stores which can be easily accessed anywhere, run a store for 24 hours and properly distribute its items in its stores. 101 page Ill. SOOT ANALYSIS As the target consumers and the competitive field have been analyzed, it is important now to consider how 7-Eleven could utilize its strengths and opportunities while improving on its weaknesses and threats in order to reach its market and keep prospering in its industry. A.
Strengths Being around for more than 28 years while also being visible at every art of Luzon with more than 700 stores, 7-Eleven has established for itself a well- known and credible brand name. It has gained trust in the consumers’ minds with the convenience it brings and products it offers. The attributes that elevate the company over its rivals include having consistent store layouts and product displays that also changes at certain periods. This is achieved through the “company bible” called the Plano-gram.
It also features the Convenience Distribution Inc. (CDC) which is 7-Eleven’s modern distribution center that facilitates efficiently the warehousing and delivery of all its products. In addition, the company has also ventured the E-commerce industry through its bills payment services. B. Weaknesses With more focus allocated to the rapid expansion of 7-Eleven stores, the development of innovative products and services has become a weakness of 7- Eleven. They lack promo or bulk packages which are popular to customers of consumable goods.
Though they have already launched their E-commerce branch, it is still a quite limited platform as it is only restricted to vouchers and online C. Opportunities Various trends and lifestyle changes have led to the emergence of opportunities for eleven. For one, E-commerce has become a thriving industry with a vast market. Specifically, the Consumer to Consumer sites have attracted many customers as people have geared towards cheaper prices. There is also an unfulfilled need in the mode of payment for these online transactions as online shoppers without credit cards would want to be able to buy online through cash. 1 Page D. Threats The obstacles brought mostly by competitors bring the greatest threats against 7-Eleven. Its leading competitor, Mini Stop, has constantly been expanding as well which could lead to a decrease in market shares for 7-Eleven. A specific example here is the further growth of their already-successful “Dine-in” menu. Besides this, changing technology may lead customers to buy things through the internet instead of dropping by a store. These factors that have an effect on the operations of 7-Eleven are summarized in the table below (Table 5).
Table 5: SOOT Analysts SOOT ANALYSIS strengths well- known and credible brand name Good reputation amongst customers Most number of stores (more than 700) E-commerce venture in bills payment Opportunities E- commerce is a growing industry with a vast market Consumer to Consumer Sites eave gained more customers through the years People have geared towards cheaper prices Paying online-purchased items through cash (for those without credit cards) Weaknesses Deficient in innovative products Lack of promo/bulk packages Cash is the only mode of payment Limited E-commerce platform Threats Emergence of more competitors, thus a decrease in market share Innovations in the “dine-in” menu of Mini Stop Significance of online shopping and buying of goods thus leading people from 7-Eleven to the internet Now that the threats to and weaknesses of 7-Eleven have been identified, it should e determined how the company could deal with each (Table 6).
Table 6: Improvement Activities SOOT Weakness / Threat Lack of promo / bulk packages Expansion and improved “Dine in” menu variety of Ministry Deficient in innovative products / services More competitors resulting to less market share Consumers turning to E-commerce more than going out of the house Cash is the only mode of payment for the Commerce side Activities to address Weakness / Threat Group more demanded products with less popular ones in a package to boost the sales of the latter Develop a different product or service to nullify the competitor’s gained advantage Venture other trendy fields which have a large market base Expand the E- commerce side and get partnerships from online sites which have different customers Find ways to include debit and/or credit payment; Allow an easy procedure for cash transactions ‘V.
CURRENT SITUATION & PROBLEM STATEMENT With the discussion of 7-Eleven’s situation in the convenience stores industry, together with its SOOT, it could be inferred that the company is the current leader in the convenience store industry. It has a wide range of products and is incrementally improving its services for the convenience of their customers. Also, they have a superb and efficient distribution system (CDC) as stated previously which helps them in their everyday business flow. Due to its success, 7-Eleven has been imitated and followed by its competitors, from the variety of products to aggressive franchising. The challenge now is how the company would strive to do everything differently through continuous innovations.
E-commerce (Electronic-Commerce), or doing business online, has been mentioned to be the current trend because of the wide range of products that could be dealt to a wide range of buyers. Presently, 7-Eleven has maximized its strengths as they have also launched an E-commerce service in the line of Business to Consumer transactions. In light of this trend, with the looming competition and the improvement activities surfaced by the SOOT, 7-eleven will now try to penetrate the E-commerce market further by being a means of Consumer to Consumer transactions which can be implemented with the help of their existing distribution system. 131 page V. THE FUTURE A.
Vision Statement The company envisions itself to be the leading provider of convenience and accessibility in the consumer goods industry as it expands E- commercially. It seeks to be the primary means for online transactions and cash aments. B. Mission Statement The company aims to build partnerships with various E- commerce businesses from Voucher deals, to Online retailing, and to Buy & Sell sites. The company would utilize its efficient distribution center in delivering bought items and paid cash to respective Commerce users. C. Goals/ Objectives The goals of the company are to be the top mode of payment and delivery choice for retailers and to establish a high benchmark for servicing online consumers.
These could be achieved through the implementation of: 0 Cheaper shipping costs 0 Fast and serviceable delivery 0 Accessibility and nonviolence (open 24/7) D. Key Strategies & Programs In order to be the leading provider of E-commerce Expanding the market beyond BBC (Business to Business) consumers 0 Gaining a competitive advantage by yielding a service none has yet to offer This marketing plan serves to illustrate the proposed product for the company as it deals with its current situation and problem. The recommendation here has taken into consideration all the previous discussions regarding the industry that the company stands at, the current market it has, the positioning of its competitors, its torrents, weaknesses, opportunities, and threats.
This plan also follows from the vision, mission, goals, and strategies set in the previous section. For 7-Eleven, the leading convenience store franchise in the country, the product offered is a service. This resulted chiefly from the opportunities, as well as threats, that were raised in the field of Electronic-Commerce. The product to be offered by 7- Eleven in this marketing plan is the 11-connect. A. The Product Offered 11-Connect is a medium of transaction between the customers of ICC (Consumer-touchstone) electronic commercial companies, mainly Slit. Com. PH. Here, sellers and buyers doing transactions would have the option of paying for and delivering the product through the 11-connect.
The service occurs in 2 stages, the Confirmation stage simply laying out the would-be terms of the next stage through the online website, while the Delivery stage would deal with the actual transaction itself through 7-Eleven’s distribution system (CDC). The steps of the 1st stage of the service are as follows: 0 A seller posts his or her item for sale on the online store, like Slit. Com. PH, with the corresponding price (exclusive of delivery).

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Marketing

Royal Danish Bearings Marketing Key Terms

Royal Danish Bearings – Marketing Key Terms Business and Management Keyword| Definition| Relation to RDB| Market Size| The number of individuals in a certain market who are potential buyers and/or sellers of a product or service. Companies are interested in knowing the market size before launching a new product or service in an area. | The ball bearings industry has a quite large market size given the development of the automobile industry. | Market Share| A percentage of total sales volume in a market captured by a brand, product, or company. RDB’s market share in the business is quite large, justifying its great expansion and organic growth. | Consumer Needs| Problems that customers intend to solve with the purchase of a good or service. | Indirect consumers need automobiles, however; automobile factories require ball bearings, resulting in RDB’s business opportunity. | Unique Selling Point| Real or perceived benefit of a good or service that differentiates it from the competing brands and gives its buyer a logical reason to prefer it over other brands.
USP is often a critical component of a promotional theme around which an advertising campaign is built. | RDB’s USP is its highly technologically advanced ball bearings, which are also environmentally friendly. | Competitive Advantage| A superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities. RDB’s competitive advantage is that they are an already globally known company and they are about to invest in their Research and Development department. | Brand Loyalty| The extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands. | Given logical assumptions, automobile factories and companies remain loyal to RDB’s ball bearings, given their high quality product. | Demand| Desire for certain good or service supported by the capacity to purchase it.
The aggregate quantity of a product or service estimated to be bought at a particular price. | RDB’s ball bearing demand is decreasing in Europe, however increasing in Brazil, China and India. | Marketing| The management process through which goods and services move from concept to the customer. It includes the 4Ps; Product, Price, Place and Promotion. | RDB plans to expand their marketing reach with the use of modern and technologically advanced media, in order to reach new customers and create brand awareness. Advertising| The activity or profession of producing information for promoting the sale of commercial products or services. | RDB is currently promoting their sales throughout their plans to expand into different countries with smaller environmentally friendly factories. | Promotion| The advancement of a product, idea, or point of view through publicity and/or advertising. | RDB plans to advertise in a greater scale. | ICT| Stands for “Information and Communication Technologies. ICT refers to technologies that provide access to information through telecommunications. It is similar to Information Technology (IT), but focuses primarily on communication technologies. This includes the Internet, wireless networks, cell phones, and other communication mediums. | This company is currently planning to establish a higher range of their information and communications technologies given that they require a higher advertising range. Brand Awareness| Extent to which a brand is recognized by potential customers, and is correctly associated with a particular product. Expressed usually as a percentage of target market, brand awareness is the primary goal of advertising in the early months or years of a product’s introduction. | RDB has managed to create brand awareness, given that they have been in the market for quite a while. They are old occupants of the market niche and their brand awareness is high. |

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Marketing

Business: Marketing and Subway

1. 0 ELEMENTS OF THE MARKETING MIX 1. 0. 1 PRODUCT Subway offered a menu with wide variety meal and better quality fresh product such as pasta, salad, desserts, soup, the chain’s flagship sandwich which is the classic BMT, the 7 under 6 menu which featuring seven submarine sandwiches with 6 grams of fat or less, fresh veggies which already boasts lettuce, tomato, red onion and green peppers (Subway, 2012). Subway also brings in a line of new crab-controlled wraps in 2004 and the product itself has only 5grams Net Crabs.
Moreover, in the year 2005, a new menu has been added to Subway’s menu that is a delicious fresh toasted sub and the menu still in consumer demand until now. 1. 0. 2 PRICING The potential element of marketing mix is the price of the company offered because it is direct impact on the company, consumer and economy as well. Subway uses a little higher of upscale pricing than normal subs in the market. Subway offers different pricing strategy with value pricing. But create value products by service in terms of quality. 1. 0. 3 PLACE
This is concerned with activities needed to move the product or service from the seller to the buyer (Lancaster & Reynolds, 2003). Subway use nontraditional places such as supermarkets, airports, convention centers and business center and also another new market development as their major selling location as a franchise. People who in any kind of Subway sales point are on hand to ensure customer’s demands are coordinated with the right product and to elucidate the distinct options are obtainable. Moreover, Subway does research for their market on the location preference and predatory franchises regarding customer satisfaction. . 0. 4 PROMOTION Advertising, public relations, personal selling and sales promotions are the four components of promotion. For Subway, to generate a Unique Advertising Proposition (UAP) is obligatory since the company is a part of saturated market. Subway also approach Unique Selling Preposition (USP) into their market strategy by selling subs under 6g of fat. By create a selling proposition that connected with the advertising message with the product, it will engender an advantage in competition. Moreover, it is the goal to create a one-of-the-kind advertising . 0 ELEMENTS OF THE MARKETING MIX 1. 0. 1 PRODUCT Subway offered a menu with wide variety meal and better quality fresh product such as pasta, salad, desserts, soup, the chain’s flagship sandwich which is the classic BMT, the 7 under 6 menu which featuring seven submarine sandwiches with 6 grams of fat or less, fresh veggies which already boasts lettuce, tomato, red onion and green peppers (Subway, 2012). Subway also brings in a line of new crab-controlled wraps in 2004 and the product itself has only 5grams Net Crabs.

Moreover, in the year 2005, a new menu has been added to Subway’s menu that is a delicious fresh toasted sub and the menu still in consumer demand until now. 1. 0. 2 PRICING The potential element of marketing mix is the price of the company offered because it is direct impact on the company, consumer and economy as well. Subway uses a little higher of upscale pricing than normal subs in the market. Subway offers different pricing strategy with value pricing. But create value products by service in terms of quality. 1. 0. 3 PLACE
This is concerned with activities needed to move the product or service from the seller to the buyer (Lancaster & Reynolds, 2003). Subway use nontraditional places such as supermarkets, airports, convention centers and business center and also another new market development as their major selling location as a franchise. People who in any kind of Subway sales point are on hand to ensure customer’s demands are coordinated with the right product and to elucidate the distinct options are obtainable. Moreover, Subway does research for their market on the location preference nd predatory franchises regarding customer satisfaction. 1. 0. 4 PROMOTION Advertising, public relations, personal selling and sales promotions are the four components of promotion. For Subway, to generate a Unique Advertising Proposition (UAP) is obligatory since the company is a part of saturated market. Subway also approach Unique Selling Preposition (USP) into their market strategy by selling subs under 6g of fat. By create a selling proposition that connected with the advertising message with the product, it will engender an advantage in competition.
Moreover, it is the goal to create a one-of-the-kind advertising 1. 0 ELEMENTS OF THE MARKETING MIX 1. 0. 1 PRODUCT Subway offered a menu with wide variety meal and better quality fresh product such as pasta, salad, desserts, soup, the chain’s flagship sandwich which is the classic BMT, the 7 under 6 menu which featuring seven submarine sandwiches with 6 grams of fat or less, fresh veggies which already boasts lettuce, tomato, red onion and green peppers (Subway, 2012). Subway also brings in a line of new crab-controlled wraps in 2004 and the product itself has only 5grams Net Crabs.
Moreover, in the year 2005, a new menu has been added to Subway’s menu that is a delicious fresh toasted sub and the menu still in consumer demand until now. 1. 0. 2 PRICING The potential element of marketing mix is the price of the company offered because it is direct impact on the company, consumer and economy as well. Subway uses a little higher of upscale pricing than normal subs in the market. Subway offers different pricing strategy with value pricing. But create value products by service in terms of quality. 1. 0. 3 PLACE
This is concerned with activities needed to move the product or service from the seller to the buyer (Lancaster & Reynolds, 2003). Subway use nontraditional places such as supermarkets, airports, convention centers and business center and also another new market development as their major selling location as a franchise. People who in any kind of Subway sales point are on hand to ensure customer’s demands are coordinated with the right product and to elucidate the distinct options are obtainable. Moreover, Subway does research for their market on the location preference and predatory franchises regarding customer satisfaction. . 0. 4 PROMOTION Advertising, public relations, personal selling and sales promotions are the four components of promotion. For Subway, to generate a Unique Advertising Proposition (UAP) is obligatory since the company is a part of saturated market. Subway also approach Unique Selling Preposition (USP) into their market strategy by selling subs under 6g of fat. By create a selling proposition that connected with the advertising message with the product, it will engender an advantage in competition. Moreover, it is the goal to create a one-of-the-kind advertising