CHAPTER 7
Marketing Plan: Product and Service Offering
Marketing Mix Objectives
The objective of the marketing mix is to promote and create brand awareness of dipcuits, which is a homemade biscuits. Indulgence wants a return of the investments in advertising the product. Also, one of the objectives is to recall the dipcuits and create a customer loyalty.
Key Results Area and Performance Indicator
Key Results Area Performance Indicators 2016 2017 2018
a. Increase brand awareness of dipcuits 2% increase in brand awareness 4% increase in brand awareness 6% increase in brand awareness
b. Increase the return of investments 2% increase in return of investments 5% increase in return of investments 7% increase in return of investments
c. Increase
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An increase of 2% is expected in the year 2016, 4% in the next year and 6% in year 2018. Through the marketing mix, Indulgence also aims to increase the return of investment by 2%, followed by 5% and 7%. Along with the increased awareness, it also aims to increase product recall. An increase in product recall will show 1% increase in recall by year 2016, 3% by year 2017 and 5% by year 2018. Lastly, the overall objective of the business is to attract more loyal customers. This would be indicated by a 2% increase in customer loyalty in the first year, 3% increase in the second year and 4% increase in the year 2018. This means that for every 10 customers, 2 of them should repeat purchase in year 2016, 3 out of 10 in year 2017 and 4 out of 10 in year …show more content…
Market Share in Units of Indulgence in Ten Barangay:
YEAR Population PTM USERS TRIERS FREQUENCY PENETRATION RATE MS Units
2016 11,110 0.21 1 0.95 56.96 0.0833333 10,421
2017 11,253 0.21 1 0.95 56.96 0.0833333 10,555
2018 11,397 0.21 1 0.95 56.96 0.0833333 10,690
2019 11,540 0.21 1 0.95 56.96 0.0833333 10,824
2020 11,683 0.21 1 0.95 56.96 0.0833333 10,959
Table 3. Market Share in Price of Indulgence in Ten Barangay
YEAR Population PTM USERS TRIERS FREQUENCY PENETRATION RATE Price MS Price
2016 11,110 0.21 1 0.95 56.96 0.0833333 30 312,625.41
2017 11,253 0.21 1 0.95 56.96 0.0833333 30 316,658.68
2018 11,397 0.21 1 0.95 56.96 0.0833333 30 320,691.95
2019 11,540 0.21 1 0.95 56.96 0.0833333 30 324,725.23
2020 11,683 0.21 1 0.95 56.96 0.0833333 30 328,758.50
The tables above show the Market Demand for Biscuits. Table 2 shows the market demand in terms of units while the table 3 shows the demand in price. We applied the same method used in the previous table but we added information for us to get the amounts. The data shown are from both research and survey conducted by the Indulgence. Triers are the number of people who are willing to try our products, while penetration rate is from the formula, 1/(Nos. of
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
In the beginning, we choose the Workhorse to become our first target market, and the Traveler has been our second target market. However, we didn’t get a successful sale at the beginning since our brand does not meet the needs of Workhorse and we had a very poor rating of our advertising for our target market even though we have a cheapest price in market. After a few quarters, we try to modify our brand and we find the Traveler may has high demand of our brand since we design a new brand for them, so we change the Traveler to be the first target market and the Workhorse move to second.
D. Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 cents. Outline the significant factors that could cause changes in supply and demand for the low-calorie, frozen microwavable food. Determine the primary manner in which both the short-term and the long-term changes in market conditions could impact the demand for, and the supply, of the product.
Actively listening- ( 3:42) (4:26) There were a couple instances where Travis seems distracted in the call and misses key information the client provides, resulting in the client repeating himself. We should remain focused and engaged in our call to guide the client through the process and acknowledge all info stated by the client.
Debenhams is a British public limited retail company that is motivated by profit so this business aims to maximise their profits. Debenhams was a small, private limited company back in 1813. Now, Debenhams is one of the most recognised retail stores in the UK and around the world, it is a public limited company. Debenhams is famous for being the retailer of well-known brands such as Jeff Banks, Ted Baker and Lipsy. Debenhams has continued to grow and they offer famous brands at reasonable prices and they are committed to keeping up with the latest fashions. Debenhams’ ownership is a public limited company.
Executive Summary- Allround is the leading medical product for cold in the OTC market. It is the most frequent purchase with a high conversation ratio, though the retention ratio has been decreasing, along with market share. Some competitors have introduced new products, and Allround is slowly waning having reached maturity. Therefore, the OCM Marketing team has developed a long term Marketing mix strategy until 10th period.
While the interpretation of D1 shows that the sales of East Tuna is 52.77% higher when advertising with the store display, by holding all other constant. The coefficient of D1 shows that if advertising with the store display is used, the sales of East Tuna would be 12,192.254 units. Correspondingly, by interpreting D2, East Tuna sales will increase by 318.39% when advertising with store displays and leaflets are used, by holding all other constant. When East Tuna uses both ways to advertise themselves, the sales of East Tuna would be 33,391.779 units. The R2 is 0.8248, which is higher than the R2 in the log linear regression model. This shows that a 82.48% of change in the sales of East Tuna can be described by the explanatory variables. The dummy variable regression model is better log linear regression model. The coefficient of D1 and D2 are statistically significant at 0.01 α level as their p values are 0.000. According to the information provided, both advertising tools are encouraged to be used in order to increase the sales of East Tuna. According to the 2 way scatter plot diagram, red dots are advertising with store display, green dots are advertising with both store display and leaflets, and blue dots are without any advertising at all. Obviously, the average sales of East Tuna is at highest with a figure of £19,025.67 when both store display
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
Myer is one of the leading advertiser is Australian retail industry. The Myer website won the ‘2010 Internet Advertising Competition Award’ (dtDigital Website 2010). Consumers bonds “in my store” with Myer, which may enhance their emotion with Myer. Myer also changed its strategy from price based promotion to service based from 2011. The Figure below shows that consumers felt more satisfied when shopping at Myer than in David Jones.
Total retail (users+non-users)MM $65.98 $39.68 Total factory sales (2/3 of retail)MM $43.99 $26.45 NRFC hurdle (factory sales)MM $45 $45 ? Pizza kit and topping: 43.99 MM, reach company's projected factory sales of 45MM ? Pizza kit only: 26.45 MM, Fail to reach company's projected factory sales of 45MM Exhibit 2 Sensitivity analysis Change in penetration rate Change in pizza sales Percentage change in pizza sales 25% to 15% - 7.11M
According to Smithson, Walmart can expand its markets to new and emerging markets especially in the third world countries, which can significantly increase its revenues. Secondly, the company can reform is employment practices and improve the quality standard and in doing so, attract more customers and improve its brand image. On the other hand, the company faces threats such as the rising healthy lifestyle trend I that the company in most cases does not provide customers with healthy goods. At the same time, the company can capitalize on this aspect and increase its revenues. Aggressive competition from other discount retailers such as Target creates a great threat to the company (Smithson, 2015).
"The Home Depot NYSE: HD, headquartered in Vinings, Georgia, is a home improvement retailer that aims for both the do-it-yourself consumer and the professional in home improvement and construction. It is the second largest retailer in the United States, behind Wal-Mart; and the third largest retailer in the world, behind Wal-Mart and French company Carrefour. The Home Depot operates about 1,900 stores across North America. The company operates stores in the United States (including the 50 states, Puerto Rico, the United States Virgin Islands), Canada, and Mexico. The Home Depot also operates EXPO Design Center stores in select U.S. markets, providing high-end home design products and services. Its 2004 sales totaled US $73.1 billion. It was ranked #13 on FORTUNE magazine's FORTUNE 500 The Home Depot also owns a chain of higher-end home decorating and appliance stores. The Home Depot employs over 325,000 people."
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
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Lawfer, M., R. (2004). Why customer come back: how to create lasting customer loyalty. United State of America: Career Press.