Rithika Marketing
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Transcript of Rithika Marketing
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'Marketing is so basic that it cannot be considered as separate function. It is
the whole business seen from the point of view of its final result, that is, from
the customer's point of view'.
- Peter Drucker.
Marketing starts with the human needs and wants. People need food, air, water, clothing and shelter to
survive. Wants are desires for specific satisfiers of these deeper needs. For example, one needs food and
wants a pizza, needs clothing and wants a Raymond shirt. Demands are wants for specific products that
are backed up by an ability and willingness to buy them. For example, many people want to buy a luxury
car but they lack in purchasing power.
McCarthy has provided an easy to remember description of the marketing mix variables. Over the years,
the terms-Marketing mix and four Ps of marketing-have come to be used synonymously.
Product: The most basic marketing mix tool is product, whichstands for the firms tangible offer to the
market including theproduct quality, design, variety features, branding, packaging,services, warranties
etc.
Price: A critical marketing mix tool is price, namely, the amount ofmoney that customers have to pay
for the product. It includesdeciding on wholesale and retail prices, discounts, allowances, andcredit
terms. Price should be commensurate with the perceivedvalue of the offer, or else buyer will turn tocompetitors in choosingtheir products.
Place: This marketing mix tool refers to distribution. It stands forvarious activities the company
undertakes to make the producteasily available and accessible to target customers. It includesdeciding
on identify, recruit, and link various middlemen and marketing facilitators so that products are
efficiently supplied tothe target market.
Promotion: The fourth marketing mix tool, stands for the variousactivities the company undertakes to
communicate its productsmerits and to persuade target customers to buy them. It includesdeciding on
hire, train, and motivate salespeople to promote itsproducts to middlemen and other buyers. It also
includes settingup communication and promotion programs consisting ofadvertising, personal selling,
sales promotion, and public relations.
Marketing mix or 4 Ps of marketing is the combination of a product, its price, distribution and
promotion. It must be designed by marketers in such a manner that these four elements together must
satisfy the needs of the organisations target market, and at the same time, achieve its marketing
objectives
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Segmentation, Targeting, and Positioning
Market segmentation is defined as "the process of taking the total, heterogeneous market for a product
and dividing it into several sub markets or segments, each of which tends to be homogeneous in all
significance. The markets could be segmented in different ways. For instance, instead of mentioning a
single market for 'shoes', it may be segmented into several sub-markets, e.g., shoes for executives, doctors
college students etc. Geographical segmentation on the very similar lines is also possible for certain
products.
Segmentation
The bakery will be selling its baked goods through several different channels of distribution. Each of
these channels will attract different types of people. These channels include local bakeries and super
markets and indirectly through hotels.
Targeting
Market segmentation reveals the market-segment opportunities facing the firm. The firm now has to
evaluate the various segments and decide how many and which ones to serve.
This business is targeting the market of Hotel as the wholesale market and small retail bakeries for as
over the counter and retail market. As per the segmentation the age group of the target people is 20 to
65 and it covers almost all the general public who may consume bakery products in bulk and on weekly
basis.
Positioning
Suppose a company has researched and selected its target market. If it is the only company serving the
target market, it will have no problem in selling the product at a price that will yield reasonable profit.
However, if several firms pursue this target market and their products are undifferentiated, most buyers
will buy from the lowest priced brand.People consume our products as they are freshly baked and
consumes of no adulterants. We are having less middle man to share our profits so our price is little bit
low compared to our competitors so it is positioned as economy class products with good quality.
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Strengths
An experienced baker with a great work
ethic. This will help to ensure quality
products are produced in due time.
The owner has her degree in Hotel
management and home science.
There are five family members willing to
work full time at the bakery. This means
that there are enough personnel to fill all
required positions.
The bakery will be located on the farm so
there is no need for any of the workers to
commute and land will not have to be
rented from an outside source.
The family has a strong commitment to
succeed.
The owner and the h family are well liked
and have a good reputation in the local
area. This will help attain and keep
consumer loyalty.
The family already owns a van that can be
used for delivery, so they will not have to
buy one.
The bakery is located near a busy highway
making it easier to make deliveries and for
customers to come to the bakery.
Weaknesses
The bakery is not located directly, making it less
accessible to tourists passing by.
The assistant bakers are relatively
inexperienced in baking and will require some
time at the job before experience is gained.
All employees of the bakery are part of the
family. This could cause stress in
employee/employer relationships as well as in
family relationships.
Costs of production per unit are relatively high
due to high overhead costs and low product
demand.
The family farm does not currently have natural
gas, therefore ovens must be electric.
In order to turn a respectable profit the bakery
will have to increase the price of its bread to a
value higher than that of many of its
competitors.
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Opportunities
There are few bakeries making
products from scratch in the local
area.
Rural bakeries tend to have less
competition than urban bakeries.
Consumers are making a move
towards a healthier lifestyle which
includes whole wheat and fresh made
products which the bakery will supply.
There is a lot of travel in the area
which may bring consumers into the
bakery who are passing by and would
like to stop for a drink or treat.
Homemade, natural and organic made
products are more popular in urban
populations and the trend continues
to rise.
The dominant age is the age of the
bakerys target market.
Threats
Many of the local bakeries and grocery
stores sell whole wheat and other
specialty bread products at a price
that is more competitive.
Many of the local grocery stores have
their own instore bakeries and
therefore do not want to sell
products, as it would be in direct
competition with theirs.
If the current preference for the
healthier breads and grain products
changes to a new health craze-which
does not include these goods, sales at
the bakery may drop significantly.
Utility prices or wholesaler prices may
increase leading to a higher cost of
goods sold.
Increases in fuel prices will increase
the Country Ovens delivery costs.
The dominant age of Saskatoon is
below that of the bakerys target
market.
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Channels of Distribution
Distribution methods are limited, with only two main methods which are over-the-counter retailing and
wholesaling. Products will be distributed through the van to retailers to sale it to end local customers.
Out of store products will be distributed in the van to the Super market, the small retail bakeries.
Wholesaling will be done to hotels twice in a week and rest of will be done by retailing. Deliveries to the
hotels will be every Saturday & Wednesday throughout the year. Competitors in the area will be
distributing products in a similar method.
The over-the-counter type distribution will be suited more towards breads, buns, Cup cakes. This
method will be more cost effective as there will be no middle man and the profits will be shared by the
manufacturer alone. This method is the best match for the business because profits will be higher on a
per item basis. Most of the competitors use the over-the-counter distribution method as well.
The wholesaling method will only include breads and buns because of the nature of the stores. These
products will match both the hotel products in that they are both selling high quality, specialty products.
These types of channels will reach the major target markets. The over-the-counter method will reach
the target market readily, because the business is targeting a demographic which is ages 20-65. This
demographic will be of youngsters who will visit fast food frequently and the household who prefer the
items for household use
Over-the-counter retailing will require sales support to work behind the counter at both the in the
bakery and the super market, while the wholesaling method will not require any extra staff.