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Introduction to Marketing Planning
Marketing planning is a process of making strategies for development of new products or services by firms. Effective planning is the key to success for any organisation. Planning not only includes how to launch product in public or marketplace but it is also essential to keep in mind factors regarding customer’s ethics as well as rules and regulations imposed by government (Cravens and Piercy, 2008).
However, in current project, Britvic is the leading soft drink company situated in Europe. It produces soft drinks such as Pepsi, 7UP and Mountain Dew under agreements of PepsiCo. This firm has intended to launch orange crush as a new product in the year 2016. Various policies and strategies has been made in order to introduce this product in market.
Task 1. Be able to Compile a marketing audit
1.1 Changing perspectives
In modern era, almost all of the firm including Britvic, the leading soft drink firm in UK, are very influential regarding marketing plans. However, the cited firm has intended to plan its marketing strategies in such a way that affects customers in best possible manner. Earlier perspectives of firms were just marketing but nothing else (Andreasen and Kotler, 2003). Cost and quality of products was not of so much importance at that time. Customers only intended to purchase products. But now days, companies are aimed at focusing on quality rather than sales. It is because customers are also quality oriented rather than quantity. So the changing perspectives of firm are related to three main objectives: cost, quality and marketing.
The main purpose of Britvic is to produce products with low cost and high quality. In earlier days, production was not based on cost but now every firm focus to reduce as much cost as possible while production process. Secondly, customers were not likely consuming quantitative products earlier but with change of time they are preferring quality rather than quantity (Shilbury, Quick and Westerbeek, 2003). And lastly, marketing was not so influential previously but with changing techniques and introduction of modern technology marketing of products is on high verge and almost all firms are making effective marketing plans to advertise their products.
1.2 Capabilities for future marketing planning
As Britvic is the leading soft drink firm in UK therefore definitely it is very capable in producing its products as well as marketing them. Regarding its future marketing plan, it can be estimated that if decision-makers of Britvic follows the same procedures in future too, than no other firm can take over this cited firm for long-term (Myers, 2015.). Simultaneously, with its strong capability, managers of Britvic have decided to launch new soft drink named Orange crush in market. The main purpose behind introducing this drink is to provide new taste to their customers. Its good financial capability is also responsible for producing new drink because lot of fund is required to producing new product (Hollensen, 2015). Not only production process requires capital but marketing and advertising also needs huge amount of cash to promote new product in market. And this firm has high probability to do all this activities because of its capabilities.
1.3 Techniques for auditing and factors affecting marketing planning
There several factors that affects marketing planning of Britvic. External factors include political factors which includes customers. Change in preferences of customers is the main important factor that is not under control of firm itself. Political factors like government policies and rules also plays dominant role in affecting marketing plans of business. Britvic firm managers or market managers have to follow only that rules which are imposed by government. These external factors can not be controlled by the company as government frame the rules and regulations according to market conditions and global economy, health and safety of employees that helpful for organization. Britvic has to apply these policies and regulations for enhancing the brand name and improve the customer loyalty. In addition to that company also need to use the information provided by the government for the development of business in different parts. The changes in customer perception also a major factor that can not be controlled by Britvic as company can inform, persuade and remind them for product and services. Therefore, continuous research about customer’s needs, habits and preferences is required to understand what and how to produce that suits customers. (Kärnä, Hansen and Juslin, 2003). They cannot go beyond those limits otherwise it is regarded as unlawful. Technological factors include modern tools of advertising that makes promotional process easy for companies. But this should be performed in control because it is costly to use high level technology for small purposes. Competitors also impacts firm's marketing plan up to a great extent. Competing with other firms requires effective planning and Britvic has to maintain its cost and quality that does not affect perceptions of their customers.
1.4 Analysis of external factors
External factors of Britvic include PESTEL tool that indicates what type of factors are present in external environment of the firm that impacts its planning process.
Political factors: - Government plays big role in influencing planning policies if Britvic. Amendments of certain rules and regulations by regulatory authorities bound the firms to work under those limits only (Greenley, Hooley and Saunders, 2004). Cited firm's marketing managers have to adopt various policies that include interest of both government and customers. Simultaneously, it is also important for them to not to cross limits set by government.
Economic factors: - Factor such as inflation creates great impact on company's pricing policies because while inflation, purchasing power of customers get down and their less probability of people to invest more for costly products. Therefore, companies have to set their prices in such a way that suit is compatible while production as well as affordable by customers.
Social factors: - These are the factors that inspect social environment of the market. These factors gauge factors like cultures and demographic conditions (Sadjadi, Ghazanfari and Yousefli, 2010). These factors indicate purchasing behaviour of people during a particular time period. Therefore, production of soft drinks depends upon buying behaviour as well as demographic changes.
Technological factors: - Technological factors are closely related with innovation of new technology adopted by firm that can be either favourable or unfavourable in operational processes. Therefore proper awareness should be taken before acquiring new technology, if it provides gain than only it should be acceptable.
Legal factors: - These factors include two things that are laws imposed by government as well as policies mage by business officials themselves. According to laws regarding manufacturing of soft drinks, Britvic officials make their own policies for producing goods and services.
Environmental factors: - Factors that are determined by surrounding of business environment re known as environmental factors (Quinton and Harridge-March, 2003). This includes geographical condition, climate, global changes and weather temperature. Sudden change in any of these factors influences a lot to business firms.
Task 2. Understand the main barriers to marketing planning
2.1 Main barriers to marketing planning
Barrier means those hurdles or obstacles which resists or impacts badly on marketing plans of Britvic. There are certain barriers that impacts marketing plan, they are as follows:
Organisational culture: - Britvic's organisational culture is such that its employees and management has adopted a fixed culture for production ad all other operational process. Therefore any requirement in change cannot be acquired easily (Kendrick and Fletcher, 2002). They have to change their whole functions and this is not likely to be performed by them. In addition to that changes in the workplace influences the working skills and capabilities of individual and groups as employees resists to adopt changes and modification instantly. It is consider that changes in organizational culture and process create barriers in marketing planning of Britvic.
Change management: - Change management focuses more on attitudes of employees. In the cited firm, employees do not agree on changing management process. In other words, ccange in process of management is resisted by employees of the firm. This is one of the main barriers for Britvic. In addition to that changes in marketing trends and techniques of marketing create barriers for company as it increase the cost of marketing planning.
Ethical issues: - These are the issues that tackle decision-makers of Britvic between what is right and what is wrong. In the ethical issues consideration of moral values and beliefs of the customer is essential as company need to follow them for market pitching and implementation of marketing plan. While decision-making process some of the important topics or decisions are hindered only because of ethics present in all decision-makers. Ethical issues make barriers for marketing as it forces organization to make changes in promotional activities to influence the decision of customers.
Behaviours and resources: - In this factor, internal and external resources like employees, machinery and inventory management plays critical role in development and implementation of marketing plan. In the external resources company need to consider the mode of marketing tools that help to communicate information more effective and efficient manners. In that cost of external resources create barriers in marketing planning for Britvic. Behaviours of all members in decision-making are not same so there is chance of arguments between them (Dibb, 2001). On the other hand resource availability like ingredients for making soft drinks also depends a lot regarding decision-making process. In addition to that behaviour of marketing executives also create barriers for marketing.
2.2 Overcoming barriers of marketing planning
There are several ways from which marketing managers can overcome barriers of planning. They are:
Effective planning: - Through effective planning process and good understanding between view points of each other while decision-making, barriers can be removed easily. Reducing arguments and encouraging each other while setting plans is the best way to plan.
Allocation of resources: - Allocating resources at the right place in right time by right person empowers marketing planning. Optimum utilization of resources is helpful in saving time and labour as well as in reducing cost of operations.
Flexibility: - Acceptability of change management by each and every employee of Britvic is the most important requirement to remove marketing planning barriers (Ashill, Frederikson and Davies, 2003). If employees or workers are ready to work in any condition ordered by top level management, it is profitable for both employers and employees.
Behaviours: - Change in behaviours of employees and decision-makers s crucial for any business to have effective planning. Positive behaviour of employees indicates good culture or the organisation and it increases sense of teamwork (Ardley, 2005).
Task 3. Be able to formulate a marketing plan for a product or service
3.1 Marketing plan for Orange Crush
For introducing new soft drink produced by Britvic, marketing plan has been developed:
Situation analysis: - The very first thing Britvic marketing managers needs to do is analysing market situation. According to analysis of market for new product launch, management need to use add the ingredients that regularly used by the people. By the analysis it is considered that organization need to work on the taste of the Orange Crash. For new product development and launch considerations of these elements is necessary to gain the competitive advantage over the rivalry firms in the industry. In addition to that by evaluation of market for new soft drink, Britvic management can offer the promotional pricing and discount offers that will help to establish new drink in market. Combo and promotional offers with partnership with other food brand will help to create place in market. The main purpose for market research is to understand market environmental conditions that whether it is favourable or unfavourable to launch new product.
Target market: - For the targeting of people of UK for the new product, management can use concentrate targeting strategy to introduce and establish the brand. By following this strategy company will market the product as new refreshing and energy drink for adult and working people . This kind of targeting strategy will help company to persuade people to buy the new product of Britvic which is made for them to get energy. In addition to that company will also target the people by promoting the product as less sugar and caffeine that might not harm the health of customers. This kind of targeting strategy will help to meet the objectives and establish the new drink product in market (Phillips, Davies and Moutinho, 2001).
Media: - For the effective marketing of new product company will use the social and print media to inform the large audience as well as attract customers to try the new soft drink product of Britvic. In that company will develop a campaign on social media that will influence the decision of customers and persuade them to buy the product of Britvic. In addition to that use of print media tools like newspapers, magazines and posters will help to increase the base of customers as well as sales.
3.2 Importance of marketing planning in strategic planning process
For successful implementation of new product, powerful marketing-planning is required to attract the customers as well as meet the objectives of product development. On the basis of planning made by decision-makers, strategies are made in order to execute those planning (Wood, 2008). In the current scenario marketing of new product is essential for Britvic as many substitute products are available in the market same quality and price but to catch the attention of customer use of brand name and effective use of marketing tools like promotional offers, social media campaign and endorsement by the celebrity is help full for company to achieve the objectives for sales. In addition to that for new product marketing plays significant role as promoting the product as less sugar and caffeine that might not harm the health of customers. This kind of targeting strategy will help to meet the objectives and establish the new drink product in market.
For example, if distribution channel is needed for supplying products than what selection of appropriate channels like supermarkets or malls are decided where Britvic will supply products is also a part of marketing that influence the decision of customers. Strategies are made on the basis of planning therefore effective strategies are very essential to meet out plans. Strategic planning helps to identify internal and external factors that can affect the firm while development of new product.
3.3 Techniques for new product development
New product development is refers to invention of different product that may not exist in the market and introduce to gain the competitive advantage in the industry. It is the responsibility of management to analyse the market and develop the product which enhance the sales of company and encourage the brand name.
The objectives of Britvic for new product which is Orange Crash for that objectives of company are as follows:
- Offer quality product
- Development of market by introducing the product.
- Increase the number of sales.
- Use of market trends for development of product.
- Improvement in brand name and customer satisfaction.
- Sustain the market position and mark improvement in brand positioning of organization.
For example Britvic can develop new soft drink by analysing the market needs and trends that might influence the sales of their new product. In that company can develop product with some additional features like use of orange with mix of other elements like soda and spicy. This will help company to develop new product with additional benefits and attract the customers. Company can also use the feedback of customers for development of product as what they need in new soft drink products, it will help Britvic to develop the new product more effective manners.
There are various techniques that can be used for development of new product by Britvic firm (Labbi and Berrospi, 2007). For the purpose of introducing Orange Crush, managers of the cited firm has adopted following techniques:
Surveys: - Through surveys, managers are able to understand thinking and requirements of customers. Effectively handled surveys gives clear ideas of how to manufacture products that can be accepted by customers immediately.
Forecasting:- It is another method through which product's requirements and benefits can be ascertained. Through forecasting, estimation can be made about future sales volume of the product. Various plans like low cost and differentiation are implemented. Results acquired from these plans are evaluated and forecasting is done through figures obtained through evaluation.
Delphi technique: - It is a technique where unstructured group of experts organized. Each of them provides their views and comments about development of new product (Fisher, 2009). Finally, conclusion is made on the best viewpoint which is considered by every group member as well management officials.
3.4 Recommendations for pricing policy, distribution and communication mix
Britvic management has decided to launch Orange crush in market as a new soft drink for people. Therefore, various factors are considered:
Pricing policy: - While introducing new product in market, its initial price should be low that can attract more and more number of customers. In that Britvic can use the promotional offer prising and discounts for increasing the sales as well as influence the decision of customers, Low prices are beneficial for of organization to persuade customers to taste a new and high quality product in fewer prices and producing firm enjoys boost of sale with low price.
Promotion: - Another factor that is important while introducing new product is how to inform people about presence of new product in market. In that management will use the social and print media to inform the large audience as well as attract customers to try the new soft drink product of Britvic. Therefore through effective advertisement, Britvic's marketing managers can communicate with their customers to influence them for buying Orange crush.
Place: - For the sale of the new product, company can utilize the place like supermarkets, malls and stores of cities. This will help organization to improve the sales and make the product available at every place that help to improve the sales.
Product:- For new product of soft drink company will use the quality orange products to develop the Orange Crush. In that company will include the additional taste according to culture and demand of targeted customer groups will encourage the sales as well as demand of product.
Distribution: - of people are more likely to purchase it. Therefore it can be distributed through supermarkets, general stores, malls, cold drinks shops etc (Kwan, Fong and Wong, 2005). Distribution of such product should be done in very careful manner because there is possibility of leakage in containers.
3.5 Factors affecting implementation of new marketing plan
There are various factors that are responsible for effecting marketing plans, they are:
Resources: - Availability of adequate resources is the main factor considered while planning process. Firm must have enough resources that are helpful while marketing new product.
Market share: - The market share of Britvic depends a lot in planning process. Before implementing new product in market, managers of the firm must have full knowledge about their position in market (Simkin, 2002). They must identify whether introduction of new product is favourable or unfavourable.
Customer's perceptions: - Buying frequency of customer purchasing habits matters up to a great extent while planning for new product development. Appropriate survey should be made to check whether customers are likely to have new product in market or not.
Economical conditions: - Proper knowledge of economical conditions is also necessary while creating a market plan. Factors such as inflations and deflations plays dominant role while introducing new product in market (Prue and Daniel, 2006). At the time of such conditions it is better to not to launch new product in market because customers have less tendency of purchase while inflation.
Strength: The strong areas of Britvic products are the quality and distribution that helps company to meet the objectives. Organization can use these strengths for developing and promoting the new soft drink product named as Orange Crush.
Weakness: From the analysis it is considered that organization is lacking in the effective budgeting and distribution of products. For the improvement, management of Britvic can take the help of consultancy firm to frame the budget and arrange the distribution of new product.
Opportunities: In the market of UK there are lot of opportunities for the development of business and expand the market share and size according to objectives. Britvic can utilize the market opportunities of UK by developing the soft drink product as per the taste and culture of local population.
Threat: For the new product of Britvic, company has the threat from the leading clod drink products like Colo cola and Pepsi which are the leading and most prefer brand in soft drink industry. In order to develop the market organization need to product quality product to sustain position in market in front of these two organizations.
Task 4. Understand ethical issues in marketing
4.1 Influence of ethical issues in marketing-planning
There is a great impact of ethical issues in marketing planning. Some of the ethical issues that influence s marketing planning are as follows:
Customers: - While making marketing plans, it is very crucial to have correct information of customers, their needs, preferences and habits (Li, 2005). Any wrong information about them can lead to failure of new product at initial stage only. Therefore, proper surveys are needed to be made for understanding what should be provided to customers.
Reputation of the firm: - Once the firm has lost faith of customers, it is not so easy to get back those customers. Strong strategic planning and efforts are to be made for rebuilding image of the firm.
Remuneration: - Low amount or salary or poor incentives creates negative impact on employees which leads to failure of product as well as employee turnover. Therefore proper employee management is very essential ethical issue.
Competition: - While making marketing plan for development of new product adequate knowledge about competitive firm is required (Ardley, 2005). It is an important ethical issue to be considered because if the cited firm wants to make differentiation in product than it is vital to know about product's features of competitive firm.
4.2 Responses to ethical issues
Britvic managers have prior responsibilities treat ethical issues of their employees in fair manner. Various policies are made that are always in favour of workers (Dennis and Macaulay, 2003). While recruitment process, recruiters main aim should be candidate's education qualifications, his skills and ability. And there should not be involvement of biasness. Some of the example of ethical issues is:
Discrimination: - There should not be existence of any discrimination towards employees working in the firm. All employees must be treated equally and there must not be any sort of partiality in between them. All of them should get remuneration according to their working performance as well.
Health and safety: - It is the most important factor regarding ethical issues of a business firm (Moutinho, 2011). Here in this case, health and safety of employees working in Britvic get safe and secured working environment that should be free from hazards. There safety is the responsibility of top level management and human resource managers are required to inform working conditions or about any requirement of employees to superior managers.
4.3 Consumers ethics and its effects on marketing planning
In marketing planning, approaches for studying consumer behaviours are increasing day by day. There are various consumers’ ethics that influences marketing planning in different ways:
Cultures: - Almost all customers of every firm have different cultures and they are likely to purchase only those products which come under their category. For marketing planning culture of the target market need to be analyse by Britvic that will help to pitch the product more effective manners (Wilson, 2004). Therefore, role of marketing manager here is to plan those products that suits cultures of customers and must not disappoint them in any condition. In cultural ethics consideration of values and beliefs of the target market play decisive role and affect the marketing planning for Britvic.
Behaviours: - In the ethical factors, behaviour of customers plays crucial role in marketing planning as company need to develop the plan that not influences the decision making of customer. In that cost of surveys and observation for understanding of behaviour also affect the marketing planning of Britvic. Customer's needs, preferences and habits are changing time to time. Therefore, marketers need to keep proper research on their buying behaviour (Cravens and Piercy, 2008). Most probably customers behave according to change in season. Keeping this factor in mind, marketing planning should be done. By following the behaviour of customer Britvic can develop more effective marketing plan for new soft drink product.
From the above report, it can be concluded that there marketing planning is very essential for achieving success to any firm. In this case, Britvic managers has intended to launch new soft drink named Orange Crush by 2016 so before implementing new product in market, researches have been made to know internal and external factor of the firm that influences its marketing process. It has to face many planning barriers which adversely affect in development of product but simultaneously firm's decision-makers have to remove those barriers by effective planning and good communication between each other. There are various ethics related to employees as well as customers that are to be understood well and planning is done by keeping in mind those ethics.
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