Category: Marketing and Advertising

Reflection on Whether Promotion Encourages Materialism

At present, many questions arise, while the promotion of various products makes us become materialistic.

Advertisements promote materialism in several ways. The first is by creating new needs and desires among people. Advertisements also encourage people to compete with each other by purchasing more and better objects. Finally, advertisements often encourage consumers to replace their old possessions by purchasing the newest and best model. This fosters a ‘throwaway society’. Your business can oppose this materialism by offering products that are built to last and meeting real, instead of manufactured, needs.

Also, kids are the main demographic that can be taken advantage of. Children under 8 are not able to understand advertisements as attempts to sell them products, and will accept any claims advertisements make without scrutiny. This makes them exceptionally vulnerable as targets of ads. The socially responsible move would be to target your advertisements at parents instead of directly to children. This will get knowledge of your product or service out without taking advantage of children’s lack of defense. Since children will be the consumers of the future it makes them create these habits of materialism from a very early age, and it can be dangerous for them in the future. Then the market of the future will be a market of materialism.

A study made in America by Suzanna Opree found that the children, that watched for television reported, being less happy with their lives than those that did not. Opree explained that this phenomenon is a result of the techniques of advertising agencies. The message that children are receiving from these advertisements are that buying a certain product will make you happy or popular. Since children can’t attain all these products, they are vulnerable to unhappiness. Children that have this mentality in their youth, carry it onto adulthood, causing them to be materialistic adults and still never feeling satisfied.

Although this specific study was done with children, everyone is vulnerable to the effects of advertisements. Agencies can make any product desirable through various techniques. Because advertising is so prevalent in our society, we are more aware than ever of everything that we don’t and most often, can’t have. It is no coincidence that materialism has increased among our society at very similar rates that advertisements have increased. It is important for everyone to be educated on what they are being exposed to on a daily basis. Every advertisement, no matter what it is, is meant to make you feel something. This feeling is what we need to be educated on. If we realize it is the actors or the dialogue of the advertisement making us feel a certain way and not the actual product they’re advertising, our mindset may change.

One study found that advertising causes materialism by proposing solutions to social problems – over time, it’s possible that people come to believe they can buy happiness, success, or love. Advertisements tell the world who we are and which groups we belong to, and influence people to judge and categorize the personalities of others based on their material possessions. This is certainly reinforced by the fact that their findings demonstrated that there are negative correlations between all dimensions of organizational citizenship behavior and materialism. However, it is a basic fact of human nature that we exhibit a vast array of differing personalities and preferences.

It is clear that advertising may influence behavior – however, it is far from clear that it would make individuals and societies more materialistic. Modern advertising is successful by associating brands with values and traits, linking them in consumers’ minds. To elicit positive responses, they must appeal to the personalities and desires of their target consumers. Thus, when successful in influencing our behavior and encouraging spending, they should also be successful in activating cognitive representations of positive traits or motivational constructs. Furthermore, considering that we’re much more likely to be continually exposed to the types of advertisement that complement our personalities, advertising may simply be encouraging consumers to pursue values, goals, and traits that they already hold. I think, while advertising may increase materialism in individuals and society, it will do so only to the extent that it increases other values to which advertising appeals.

The moment we let ourselves be blinded by the possibilities and the beauty of marketing and promotion we are going to find ourselves being less happy than before.

Analysis Of McDonald’s Marketing Management

Introduction

McDonald’s was founded in 1940 as a restaurant. It was first operated by Richard and Maurice McDonald in California. This is basically an American fast-food company. This is belonging to food and restaurant industry and now having the world’s biggest restaurant chain. This is serving more 69 Million customers over 119 countries. By the end of 2018 this has 37855 outlets. This is best for its French fries and burgers. Now they added soft drinks, wraps and desserts in their value chain. The company has changed it menu now because customers preferences and tastes are changing. They are now demanding more healthy food. So, McDonald’s added salads, fish, smoothies and fruits in their menu. McDonald’s has second largest employer of the world which is 1.7 million.

McDonald’s Corporate Mission and Vision Statement

Generally, the mission statement is a summary of the company’s goals, why this exits, what kind of product this is offering and what are the aims. McDonald’s mission statement is customer-oriented. An association’s corporate statement of purpose sets the reason and related exercises of the business. For this situation, McDonald’s statement of purpose builds up the organization as a powerful most loved sustenance administration goal. McDonald’s corporate mission is “to be our customers’ favourite place and way to eat and drink.”

Vision is statement is the road map of the company that where company want to see itself in coming five year, 10 years or in future. McDonald’s vision is to be the world’s best service restaurant that provided good quality at affordable prices, quick service, cleanliness and value so that they make customer delighted. McDonald’s corporate vision is “to move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world.”( Jurevicius, Ovidijus Jurevicius, September 14, 2013).

In addition to it McDonald’s New Slogan is: ‘The Simpler the Better’.

On the other hand, if we discuss the marketing orientation of McDonald’s then it comes to know that McDonald is the best fast food retailer in world’s market and focus on the needs and wants of the customers (Nwankwo and Gbadamosi 2010). McDonald offering so many varieties to satisfy the customers and doing marketing for them. Following are some products and services offered by McDonald:

• Hamburgers
• Big Mac
• Wraps
• French Fries
• Salads
• Soft drinks
• Coffee
• MC café beverages etc.

As we all know that McDonald’s is very renowned brand in the market. Today’s McDonald’s is earning into millions because of its branding. Branding is critical to a business because it puts impact on the sales of business. Branding can change how individual’s percept the image of company.

Brand plays a big role in marketing because through this a company gets recognition and become known to the customers. McDonald’s brand is Helping to clearly deliver a message to customers. This makes it different form the competitors. McDonald’s as a brand confirm the brand’s credibility in the marketplace. It helps in motivating buyers to make a purchase. Its Brand name Emotionally connect target prospects with a product or service and plays a crucial role in creating customer loyalty. McDonald’s brand is promise to the customer on what can be expect from the company about its products and services.

5C’s of every organisation used to analysis the key areas involved in its marketing decision. These plays crucial role in taking right marketing decision, well-defined marketing policy and strategy. Following is analysis of 5C’s of McDonald’s:

Company:

It is important to focus on the strengths, weakness, opportunities and threats faces by McDonald’s while focusing on the organization. McDonalds is world’s leading brand in fast food industry operating in more than 100 countries over 36000 locations and serving more than 69 million customers across the world. With such a good customer base this also has some weaknesses. McDonald’s faced criticism often for not having healthiest menu, because in the market there are other fast food chains with much netter healthiest options. In the such weakness, McDonald’s taken an opportunity to provide healthy choices in its menu and now serving some healthy foods as wrap, apple slice, salad, milk etc. Although Macdonald’s is getting advantage from these opportunities but still a high competition exist there from famous brands like Subway. This is stilled counted under the scrutiny of unhealthier menu options. The families are the biggest customer strength of McDonald’s. Today’s society guardians prefer to go for family meals with McDonald’s rather than healthier brand options.

Customers:

McDonald’s customer segment focused on lower- and middle-income status families rather than younger children. McDonalds is performs three main job which include functional, emotional and social. The emotional job is to provide a family with a family meal. The Functional job is to feed the whole family an affordable price. Social job is to provide entertainment to the families in form of play areas. To attract more customers McDonald is now improving the interior of its restaurant because previous dining of McDonald’s was congested, bad eating environment, unhealthy food etc. It included the following customer factors:

Who are the target customers: McDonald’s target customers are young children and families? As per the question of segmentation, this should go for niche market as this is highly profitable.

To whom company is serving: The company is serving to the all age group but at the current moment this is focusing on family meals. In addition to it, company is serving low class and middle-class economic families.

Market size and growth: The market size of McDonald’s is growing day by day because this make changes to its menu and added more healthy options along with fast food. So, with the changed menu it can serve to wide number of customers.

Collaborators:

Collaborators include supply chain partners, distributors and other alliances. Researches shows that McDonald’s needs to critically evaluate its supply chain. There is need to evaluate bargaining power, what suppliers provide on the table, quality provided, efficiency of supply chain team and revenue sharing at every step of value chain. In McDonald’s case bargaining power of suppliers is weak. These are weak due to lack of regional and global alliance because McDonald’s serving worldwide. Moreover, suppliers of McDonald’s are not vertically integrated. McDonalds has some specific systems to audit the quality provided by suppliers. For this they have developed a “Supplier Quality Management System” for its suppliers. McDonald recognized third-party auditing such a BSI for verify the supplier facility.

Competitors:

McDonald’s is facing competition from other fast food chain restaurants like Hungry Jacks, Burger King, KFC, Starbucks, Chipotle, Wendy’s etc. McDonald’s has biggest market share as compare to other brands. All other brands having small market share but growing at very fast speed. Even McDonald’s restaurants are competing based on low price, menu variety, product quality, taste and fast service still there is huge competition in the market. The company is facing threat from subway which is focusing on healthy food and organic options. To beat such competition McDonald introduced healthy foods in its menu like salad, wrap etc. The firm is also facing threat from new entrants. Threats also arise from innovation of new technology and economic cycle. McDonald’s should improve its interior and dining of its restaurants to face threats from new entrants.

Context:

Context Analysis include social and political environment, economic conditions, legal environment, cultural environment. National and international policies influenced every organization and McDonald is also one of them. Most of the groups and health organizations are protesting consumption of fast food and imposing new policies. In addition to this, tax laws impose by government are affecting the growth of firm. Company also must follow employment laws, trade rules, labour act and other legal restrictions. In addition to its political environment of every country also put effect on functioning of McDonald’s. Every Country’s political parties has different ideology towards foreign investment, as McDonald is operating worldwide so must make planning according to the political factors of operating country. Furthermore, economic environment of every country is different. Each country has different inflation rates, boom, depression, Gross per capita income so McDonald must study every country’s economic condition while operating there.

Moreover, technology is changing at rapid speed. Companies must adapt new technology and to upgrade their system every time when technology changes. This process results in heavy costs. On the other hand, socio-cultural factors also effect the operating of McDonald’s. Every culture has different values, beliefs and food related preferences which affect McDonald’s sales.

How does the firm go about collecting information?

Data collection is very important task of every business to identify the customer needs, competition in market, about the changing technologies etc.

There are many sources of collecting data. Some are highly technical in nature while other are deductive. Basically, two type of sources are there form data can be collected;

• a) Internal sources. It means to collect data from employees, suppliers and collaborators of company.
• b) External sources: This include collection of data direct from customer, by indirect tracking the customers and from other published and non-publishes sources.

McDonald can go for market survey which mean to fill a questionnaire from the people about what they expect, what they are getting from McDonald, what they want etc. Another way is to pick some of customer randomly and conduct interview with them to know their experience and perception about McDonald’s. Interview can be conducted face to face or on telephone. Today more popular place to collect data is social media pages and their websites.

Here an observation method can also be used. In this way company will check its own records and feedbacks from customer. They can also get an idea what customer like about them and what don’t like. McDonalds can also go to purchase data from third parties who provides information about new threats, demands of customer, available competitors, Competitive advantages etc. This is also very important to collect demographic and interests of customer database which will allow the firm to target a specific market area which has huge potential. Firm can send online survey form to fill to collect information.

Potential market segments that are available to the McDonalds

After collecting data and Market analysis divide the market into segments is the base of every marketing strategy. Market segment is part of market where the people of similar age or same taste or same genders are living. Segmentation can be behavioural, demographic, economical, cultural and usage segmentation. Market segmentation is the process of dividing the whole markets into different groups of similar wants and needs. The motive behind this is to serve the customer in a better way and to manage the costs.

Dudovskiy (2016) claims that McDonald follow these segmentation criteria:

Geographic segmentation: This segmentation divides markets according to geographic areas. McDonald’s divide its business into various market segments like

1. America
2. Europe
3. Asia/Pacific, Middle East, and Africa
4. Latin America
5. Other countries

McDonald’s optimizes its Menu based on geographical segmentation. This is serving food according to the taste and preference of particular region.

For Example:

1. In India McAloo Tikki and McVeggie are available.
2. In the USA Bacon Smokehouse Burger and Quarter pounder (beef) burger are available.
3. In Arabian countries Beef Burger are available.

Demographical Segmentation: It included age, income, family size, socio-economic status, etc. McDonald’s demographical segments are based on below:

1. Children: McDonald’s offer a lot of toys, happy meals etc to attract younger segment audience.
2. Young Adults (Age group between 18-29)
3. Adults

• Behavioural; personality, perception, attitude, usage
• Psychographic; lifestyle, social class.

Behavioral Segmentation (McDonald should go for Behavioural market segmentation and should target the loyal customer’s segment on priority basis)

Behavioural segmentation is process of dividing the whole market into smaller homogeneous groups based on buying behaviour. This segmentation is done on the base of usage frequency, brand loyalty, benefit needed etc, McDonald can increase its sales by choosing Behavioural market segmentation by studying its existing customer’s brand loyalty and their usage frequency.

Parameters of Behavioural segmentation

McDonald target consumers can be grouped based on their following behavioural characteristics:

1. Occasion oriented: McDonald strategies must be occasion oriented Where a product purchased for occasion. On the special occasion like New year, Charismas etc McDonald should offer family deals on discounted prices and so many other offers to increase sales. This thing will help to build a good image in the eyes of customers as they will feel value of their occasions.
2. Usage oriented: This means how much and how many times product is being used by a consumer. By focusing on heavy users and medium users McDonald can increase the sale.
3. Loyalty oriented: There are so many customers who are loyal towards the brand McDonald. So, McDonald should focus on loyal customer and does not worry too much about new one. If your existing customers will be satisfied, they will definitely communicate with other about you and you will get new customers through world of mouth marketing. So high brand loyalty plays important role in market. So, the segment of customers with high brand loyalty with McDonald should be target on priority basis.
4. Benefits sought: Segment of customer with different benefit perceived can also be target.Every product has different quality and service which provides different benefits to every customer.

The above image shows the parameters or variables used in behavioural segmentation.

What advantages McDonald can take by using Behavioural Market segment and by targeting segment of loyal customers.

We all know that McDonalds has a good brand reputation which is serving more than 69 million customers. By targeting segment of loyal customer first McDonalds can reduce the cost of switching customer. Because there is huge competition in the market and so many options are available. Customer can switch to another brand. Secondly, by serving loyal customers better they will be happier and more satisfied and will spread good things about McDonald through world of mouth marketing. This will help to increase more sales and more customers

After the Market segmentation next step in value proposition. It is said that, “A brand’s value proposition is a statement of the functional, emotional, and self-expressive benefits delivered by the brand that provide value to customers in the target segment. A balanced value proposition is the basis for brand choice and customer loyalty, and is critical to the ongoing success of a firm.”(O’Guinn, Allen, Semenik 4E, 2006, p. 234).

Value proposition for target Market

• By providing convenient access to its locations.
• Comfortable seating and good dining in-store facilities for
• Discount offers for regular users or high frequency users.
• Distinct products based on benefit needed such as the Mac Chicken for children, Big Mac for elders etc.
• Good value offering and pricing
• Healthy options in menu for fitness-oriented customers.
• ffer extra to your loyal customers and give them priority.

In addition to it Positioning refers to selection of market mix which most suitable for the target market.

McDonald’s has made itself to be low cost restaurant and family friendly fast food business for quality products. We have variety of menu with so many health options for all benefit seekers. We are focused on less delivery and discounted meal offers. We are providing dual drive through to decrease the wait time. We offers special discounts to the loyal customers.

Marketing mix for above mentioned target Market

Product:

McDonalds primary products are hamburgers, chicken products, soft drinks, cheeseburgers, breakfast items, desserts and milkshakes. Based on usage frequency, sales of hamburgers are high as compare to other products. Although, McDonalds introduce some healthy options in menu, but people prefer to go subway or other stores for health meal as compare to McDonald. So, study of Behavioural market segmentation shows that usage frequency of health foods is less. McDonald should offer more healthy meals to the target segment of benefit needed to increase usage frequency. Customers for the brand loyal customer McDonald must offer buy one get one free option on its products to retain its regular customers. Offers and discounts should be given on weekends and on special occasions.

Price:

McDonalds offers different price for its various product and services. For the behavioural segmentation targeting especially to the loyal customer McDonald must offers discount prices to the regular customer. There must be a point award system for every purchase of customer this thing will help to retain the customers and attract new customers. Currently McDonald’s focus on psychological pricing strategies in its price mix.

For example: McDonald had reduced the prices of its products in India by 25% to attract the customers to prefer McDonalds as dinner and lunch. This was also done to compete with the high competition of KFC, SUBWAY and Dominos.

As part of the promotional pricing strategy, McDonalds should offer discounts or bundling on certain products or combinations of meals. To serve the fitness-oriented customers more offer should provide on wraps and salads.

Place:

McDonalds is operating in more than 100 countries over 36000 outlets worldwide. This is serving through Mc Drive, Mc Café, McDonalds etc. For serving better to the target market McDonald should study the competitors ‘s dinning and seating facilities.

For Example: Hungry jacks a big competitor of McDonald’s in Australia having more space for seating and dining of customer as compare to McDonald’s.

Most of Mc Drive locations are near to highways which not offering good space for seating. So, for growth and to retain Customer McDonalds should focus on its interior development, seating and dining facilities. McDonald should focus on its locations and space availability.

Promotion:

McDonalds spend handsome money on advertisement every year. For advertising McDonalds use newspapers, billboard, Social media etc. Moreover, by sponsoring on events like FIFA cup, Olympic games etc firm can promote its new menu options. For behavioural segmentation McDonald must promote through its good and healthy slogans. Moreover, McDonald should develop those advertisements which target the benefit seekers like fitness-oriented customers. McDonald can use social media networks to promote its products.

People:

The people working at McDonalds has a dress code to follow. Employees performance should be evaluated periodically. This also has good delivery channels to give indoor services.

Physical Evidence:

The physical evidence puts great impact in the minds of the consumer. It include quality and hygiene, cleanliness and transparency of services. McDonald should focus on internal cleanliness and hygiene environment which is degrade as compare to other restaurants.

Process:

McDonalds should improve the processes to make it services fast and to make home deliveries faster. McDonalds should focus on more innovative ways to deliver services.

Conclusion

At the end we can say that McDonald has good market value and reputation of the brand worldwide but in spite of this McDonald is facing huge competition in the market from Hungry jacks, Burger King, Sub way, KFC etc. To survive in such strong competition and new entrants in the market McDonald should focus on customer loyalty to retain the old customer because customer may switch to other brands which have more healthy options. To make customers satisfy McDonald should focus on healthy meals and should adapt marketing mix according to the selected segment to target.

References

1. Balaji, M., Ghosh, R., Shah, J. 2016, McDonalds: behind the golden arches, retrieved 22 May 2019, < https://www.scribd.com/doc/11520753/Marketing-Strategies-of-McDonalds >
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3. Dudovskiy, J, 2016, McDonalds segmentation, targeting and positioning, retrieved 21 May 2019,< http://research-methodology.net/mcdonalds-segmentation-targeting-and-positioning/ >
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A Mix Of Promotional Strategies Of McDonald’s

Using a mix of promotional strategies in the marketing of goods and services is very important for all businesses. In the case study of McDonald’s they engage in a range of promotional initiatives to attract new customers and keep the same customers consistently coming back. The promotional strategies that Mcdonald’s uses include advertising, relationship marketing, publicity and sales promotions. Other companies that also use similar promotion strategies include Apple and Nike. By using a mix of promotional strategies this business can increase there profit on their goods and services by attempting to attract new customers, increase brand loyalty, encourage older customers and provide information.

Advertising

Advertising is seen in our everyday life now you see it on busses, billboards and on the television. McDonald’s use advertising as a way to engage there customers in there use of television that reaches a wide range. This Ads cost a lot of money to do like in 2009 McDonald’s launched and ad for there Mighty Angus and Grand Angus an voice actor Michael Carton in which the ad would cost over $10 million which was very successful. It was so successful that named one of the most successful ads in all of McDonald’s other ads. There are 6 main advertising styles include mass marketing, direct marketing, telemarketing, e-marketing, social media marketing and billboards. These Promotional strategies in adverting allow many ways to obtain there target market

Nike Inc. has the same use of marketing mix to uses the promotional strategies which also been done by other companies. The Promotional strategies nikes use include Publicity, advertising and sales promotions All these elements included in the promotion has different benefits for the business even if they are a multi-billion dollar company with the help of professional athletes like Lebron James, Cristiano Ronaldo and Kyrie Irving. (Opinion leaders) These athletes are involved in the promotion of Nike products in the sports they play. It is important for Nike to do this so they can expand their range of customers to as many as possible. This is all a part of the target market there sports line my only be seen in advertisements by athletes so it targets people who play sports or enjoy watching it this would change extremely if they had a person who has an office job and has no relation to sport this will decrease the sales of the item. Other companies that use the same type of advertisements include Adidas, Under Amour and Jordan they all use athletes to endorse there products. The different elements of the promotion mix play and influence in providing the customer in different ways to either gain a new customer or to continue with a previous customer. Nike is close to apple with how they gain customer attention. Apple knows its customers very well and has developed loyalty in their market share.

Relationship marketing

Relationship marketing is the development of long-term and cost-effective relationships with individual customers. McDonalds in there McCafe use loyalty cards rewards people after a number of purchases they are given a free beverage. A recently launched mymacca’s site which gives customers access to exclusive offers, newsletters, free Wi-Fi and online wallet. The loyalty program was introduced in the 1990’s by Coles then was also was introduced into Coles competitor Woolworths these being Everyday rewards because of the success Coles was having with it and encouraging customers to continue shopping at their store. In a recent survey found that 4/5 tend to shop at business with loyalty cards. Ikea also uses a Loyalty program called Ikea family card. The card provides cardholders with special offers just like McDonalds the benefits include discounts and entry into weekly draws. One of these deals include every $100 you spend you receive a $10 voucher. Apple has and loyalty program that does not involve a card or anything just that it is extremely hard to change from apple to an android to apple have a hidden loyalty program.

Publicity

Publicity is any free news story about a business’s product. McDonalds uses publicity as a form of promotion the publicity in news stories it gives new products in the eyes of consumers this helps to show people the product, raise awareness of a product, highlights the business and helps reduce negative picture of the item. McDonald’s news articles that show there products in a good view increasing their potential profit these include “McDonalds all-day breakfast a hit- shares hit record high”. McDonalds have used people like a well know chef in Los angles that you can make an “elegant meal” with only using McDonald food this would bring in publicity to show that they food is that good that a well know chef can create a good meal out of it. Sponsorship how McDonald gets there products onto an international events an example would be the 2002 winter Olympics the McDonalds sponsorship costed around $100million for 4 years but had smaller events that they have sponsored like local little athletics. They have also have sponsored vehicles in motor racing they have sponsored cars in Nascars they did not just sponsor one car but many cars. McDonalds has sponsored a lot of sports and having many spokespeople examples being Kobe Bryant, Michael Jordan and Yao Ming these people are all a part of the NBA. The NBA also has been the partners (fast food partner).

Sales promotions

Sales promotions is how you interact with activities or material for the customers. Sales promotions has goals to achieve to increase their products target marketing which leads to introducing new customers, encouraging samples of goods and increasing sales. McDonalds introduced a monopoly for a promotional reward it would work by making purchases of goods that would lead to stamps for properties that could lead to prizes like cash, cars, holidays and tvs. This promotional strategy being limited-time specials its encourages new customers and people to keep coming back for the possibility of winning something and this was happening in Australia the monopoly game costed McDonalds 167 million in giveaways. Nike have also used sales promotions in offering customers specials. The specials could be done during the holidays with high percentage of products to encourage new customers. Specials don’t only come in holidays for business but of course holidays are when people are going to spend a lot of money so specials will encourage people to purchase there products.

Companies uses many was to achieve high sales by using coupons, which are discounts for items. Premiums are ways to get something more with a product like having extras added onto it like purchasing a basketball hoop and receiving a ball as well. Refunds helps to get customer satisfaction so when they may receive a broken product they may return it to get a new one or store credit. Samples are small amounts of products to test like food or lotion to see if they are interested in purchasing more and maybe developing a recurring purchase. Point of purchase display is a way to in which gets encourage customers to purchase products by having it stand out or be at the end of a purchase at the checkout to which is displays sales to which encourage customers to purchase stuff they may not need.

In conclusion, the promotional strategy have different befits, roles and achieving profit form there goods. To which they use to establish a target market to by using all the elements to encourage new customers. They adopt ways to use the promotional mix can be used to obtain the business marketing objectives.

Ways to Set up Digital Marketing and Advertising Strategy

Digital Advertising Strategy How to collect upward a highly effective electronic advertising strategy? When establishing a digital advertising strategy, the very first issue is to think carefully getting into account the specificities of the focuses on, marketplaces, items/solutions offered, etc. Many customers are usually registered in a minimum 1 local community site In 2010, a BSI (Brand name Technology Company) research showed that 81% of Western companies (12 countries) that had launched marketing communications did not have an interpersonal media strategy, which explained their failure. We must think about that before performing! Before, find out the other components of the digital advertising technique: 1scapital t: define the goals of the electronic marketing and advertising strategy

What are your advertising objectives? The answer should not be ‘because everyone is performing it’ but must meet one or more objectives. Of all first, this must become exact. We can make use of the memo method: Wise Particular: tangible prices Measurable: indicator indicators Attainable based on the context, Practical market if we have sufficient resources to do it Short term, ie described inside period. An instance of a new particular goal: ‘create a new weblog that may end up being in the best 100 most go through inside 9 weeks’ Our guidance: do not waste unnecessarily about goals that you will struggle to achieve because either they are too numerous or because they are too complex. 2nm: think about why develop an electronic advertising strategy The good reasons are many, but the first of all is that with the digitalization of companies, electronic marketing and advertising becomes essential. The levels are usually higher because several businesses possess vanished since the 2000s because they experienced not really producing this electronic change. It will be definitely essential to carry on recruiting, and canvassing, but the targets and rivals of the company are already using it on these digital levers. Digital advertising will be the field almost all utilized by businesses to create this modification.

Digital advertising, by it is possibilities, allows to much better relations with it is goals, to much better understand them, to find out even more precisely their requirements. Some thoughts: create the community

• generates prospects: contact information and contact info.
• gather email messages • manage the company’s e-reputation • sponsor influencers
• to generate visitors (SEO and inbound advertising)

3rchemical: who should this electronic advertising strategy end up being aimed in? Without this prior function, it is a waste of cash and time, so the definition of targets is certainly the most crucial step. You have to segment and focus on, know your market well. We recommend building the common user profile of the perfect client of the organization (or task). It will be not really unusual for one to create 2 or 3 various pieces of information, called personas also. Gentes are usually fictitious individuals symbolizing a perfect focus on user profiles. This method can make it feasible to much better get into account all the features of the customers of the services and products provided by the business. It will be a highly effective device that enables you to adjust your electronic marketing and advertising technique. It brings mainly solutions to the ‘why’ observed above. 4th: what information to deliver inside the electronic advertising strategy?

Centered upon the placing, the firm determines a good content technique particular to every one of the focuses on decided throughout the 3rdeb phase, the gentes. The arrangement must fulfill the particular requirements of the gentes. It must end up being obvious, consistent and simple. The focus on will be at the coronary heart of its content material technique, therefore all content material must become of higher high quality. The type of content also depends upon the chosen channels. On a blog site, the material will end up being various than on Facebook for instance. The most used type of content is editorial certainly. Certainly, conversation companies are usually employing even more and even more publishers. Presently, entrepreneurs are usually furthermore trading even more and even more in picture, movie and pc image software programs.

5th: how to establish electronic marketing and advertising strategy? Does that mean that for electronic advertising? Logos: the execution of a new true content material technique, storytelling, articles marketing and advertising, and brand name content material, permitting the firm to manage its picture, interact with its target audience and optimize his overall performance. Sociable Press to construct influence, and manage its communities to in a commercial sense participate them. Picture related to digital advertising strategy Impact: there will be zero more time any query nowadays of making use of (disadvantage) downwards conversation, from a new brand name impacting its stage of see to a good obtainable and passive viewers. In a side-to-side globe, influence is today a major component of communication.

The brand name must consider into accounts all the components of its environment. It must provide to each of them with coherent and related communication. Interpersonal selling encourages interpersonal buyers to become customers. Sociable systems represent a substantial marketplace in which businesses have got every attention in making use of them. The image of an ongoing company is a valuable asset to the company. It enables him to place himself in his marketplace. Inbound Advertising Strategy Inbound Advertising: is utilized to perform draw communication procedures, to attract focus on in the company’s systems. The attention will be to get notoriety and a brand name picture. Attract purchase of fresh visitors from sociable networks by generating content material that matches the requirements of the goals, along with the goal of getting them to the company’s system. For illustration the corporation website. It should become mentioned that B-to-B entrepreneurs with weblogs possess 67% even more potential customers.

Change: the objective right here is to sufficient curiosity him to keep his coordinates (getting web page, advertising, sign up to a new system, etc.) Close up: or even contact guide nurturing, that is, convince, reassure and reassure the guest that he or she is inside the correct spot to have got the item/support that fits his requirements. Pleasure: after the purchase, find the consumer to become a good ambassador of the item/services. Maintain the client in an energetic procedure. Ads The goal here is to generate Prospects and not the sale itself. There are usually many systems, the primary types are usually:

• google AdWords, it may be used to test its market and make the day-before • Facebook advertisements, much less effective (bad transformation price).
• Linkedin advertisements, really costly but extremely efficient specifically to enrich your neighborhood
• Retargeting Customization This is the contextualization of content based on the user’s behavior, geolocation, weather, time of day.

We are usually in one-to-one advertising. In 2016, even more than fifty percent of marketers were that customized campaigns had better ROIs (Come back on Investment). Providing the perfect articles at the ideal period on the best route appears to end up being the pattern in 2018. Advertising automation One-to-one advertising offers become important to effectively deploy its advertising strategy. Marketing automation allows you to set up highly individualized marketing and boost the turnover of the company. The strategy lays in setting up scenarios. These are linked with the return on investment of the operation directly. The essential scenarios for an increase in turnover: The welcome sequence: get an email gives the first glimpse of the company and the advertising of the company. This will be a collection of pleasant email messages pursuing the enrollment of a guest on the organization’s site. These email messages (5 to 10) can give food to the website visitor (growing in British) details about the brand name, the item/assistance. They are usually outfitted with phone calls to action to motivate the receiver to create a buy. Anniversary email: resolved to the consumer about the day of his birthday celebration. It will be a really efficient e-mail. Of program, it can become damaged straight down based to various anniversaries influencing the customer: the wedding anniversary of sign up, an adored one, etc.

Replenishment e-mail: very relevant for normal usage. The post-purchase email survey is a real way to re-engage the consumer. it will be usually nicely obtained by customers and causes a boost in product sales. Live life to send: sending emails when they are usually linked. This will be a great method to motivate the reactivation of sedentary connections. Forgotten Container Relaunch: This will certainly recuperate nearly a quarter of forgotten shelves. There will be a collection of leads to of desertion not really always associated to a switch of thoughts. What can make a rebirth can possess its attention? Technique for CM Developing an effective local community will be centered upon the well-defined technique that combines interpersonal strategies and instruments in to company functions and targets. There are usually numerous content articles on the subject matter. You can complete this reading on the excellent Web marketing and Com website There are 4 steps to creating a mature community: 1st step: Establishing upward: Social technologies and tools. Local community constructions. 2nm step: growing community: it is the starting of a new consumer, the instant to check the procedures and/or even equipment group and sociable. In parallel, establishing an upward watch to evaluate and prioritize the opportunities provided by socialization.

The constitution of the grouped community, the recruitments, is a STRATEGIC step, it is a lengthy process and must be organic! (Illustration of impatient businesses who possess overpriced the number of their users.) The amount is not a new consultant’s worth of the partnership between the business and its customers. The interesting indicators are relevance and interaction. The relationship of a company to a user is based on a transparent and genuine exchange. This imposes a helpful conversation. We must, consequently, consider both good and unfavorable feedback.

Poor practices:

• bad versatility of the conversation in connection to the demands
• arbitrary moderation of the remarks
• a condescending attitude
• manufacturing of fake optimistic responses

3rchemical step: Community: To have obviously defined the roles, organized and financed the sources (CM, high quality, etc.). ), the described content collection, the creation of modified content material, etc. Engage:

• The conversation on Master of science will be about interesting people of your area. That will be to state to engage in industrial relationships, industrial transformation
• Possess brand name ambassadors, individuals who defend and market the brand name: advertising dedication.
• It will be a new organic development: ‘We feel fascinated, We were educated’, once customer and happy, We recommend.
• The easy dedication: the consumer states his curiosity in the brand name, to receive details (items, email, etc.)
• The dedication by the purpose of buy: it will be near to the take action of buy and inquires. As a total result, he says the views of others and surfs the Master of science.
• The dedication to impact: the already-consumer customer contributes to the development of articles, by commenting, and ranking items, he suggests the brand name to his personal areas (nearly all fascinating).
• Not really all Web customers react. We must consider 1-9-90 (1% produce content material, 9% transmit it, 90% read it). Determine the evangelists:
• You possess to appear in the evolutions (lengthy-phrase) of the beneficial feedback. • Notice if these views are usually meant to impact the view of others.
• They are usually essential customers; the even more essential they are usually, the even more prosperous the company will end up being. 6th: define the monetary and human being means The financial aspect and the individual aspect: these values should be taken into account when establishing the social press strategy.

Financial: Hiring a Community Manager, providing providers to a company for content material (text messages, computer images, etc.), superior balances, income talk about credit to the computer animation or formula of experience, etc. Human being: the theory will be to determine a new optimum duration relating to its options. It will be hard to evaluate the period to spend to it. The composing velocity will be not really the exact same for everyone. Inspiration, and individual issues, for instance, are components that must necessarily be taken into account. We must furthermore get into account the human being atmosphere. Information, occasions, research, and staff are crucial also. 7th: Choose your ecosystem. Proceed to obtain them in the best system: consumer understanding will help figure out the typology of media, all of a sudden the definition of tools gets supplementary. The choice of the platform must meet the logic of objectives, targets, messages, and orientation of communication. In 2016, where had been the focus on? Begin your own possess Market place.

Since the start, the marketplace is embodied by GAFA and some Pure players like Amazon, and eBay. It will become appropriate to create one’s very own company design. Numerous businesses possess created their personal Market (Rueducommerce, Cdiscount, Priceminister, etc.). It’s a digital shopping mall. This will be a web system (internet site) on which retailers market items/solutions to customers. The vendor advantages from the system and clients of the second option, in come back he must pay out the Industry a product sales commission rate he provides produced. Market segments locking mechanism info on clients at the danger of viewing them drawn by retailers. It is increasingly relevant to create your own marketplace, still market and whatever the marketplace (b-to-c, b-to-b, and c-to-c). This allows the company to control the competition or its suppliers even. In b-to-b, businesses have got a system of providers. If they digitize this system, a Marketplace is given by it. 8th: computing tools The goal is to measure the impact of the actions undertaken to reach the set objectives. This will assist optimize the activities used, enhance, check brand-new types and amplify activities. These signals or KPIs (Important Overall performance Indication) will permit analyzing the usefulness of the electronic technique for your brand name picture. These details will assist to a much better focus on marketing and advertising promotions and raise their efficiency. The greatest problem of this stage will be selecting the indications. It moves without telling that reading through these signals is a new main problem for businesses.

It will be recommended to establish up dashboards like transformation price signals, and indications to deepen the information of your clients: who they are usually, what behaviors and what passions define them, etc. A few fine details the kind of signals we may make use of mass media by the press. For strategies with functionality, the click on or the number of email messages authorized are usually basic indications to put into action. On the other hand for logos promotions, it will be required to fix up fresh signals. On Public Media The scope of publications: produce content on several media (Facebook, Twitter, Linkedin, Pinterest), and appear at which one is the almost all suitable? Who are usually the customers of each system? Which content material suits the greatest in each situation? Understand your own neighborhood: to understand your own customers much better, you must frequently publish, a person can easily figure out the content material they prefer, which will lead to your own messages. The suggested indication will be the number of magazines. Qualitative community assessment: Counting most people inside a community are not sufficient, a qualitative assessment of the community is usually required.

You possess to determine if they are usually advantageous and if they match into your focus on, the objective will be to concentrate your attempts on your perfect goals. Your community’s involvement is measured by remarks and ticks on the ‘Like’ buttons (soon ‘I do not like’?) And ‘Talk about’ your followers on Facebook, retweets or favorites from your fans on Twitter, or consumer suggestions on LinkedIn. Suggested indicators: number of fans, mixed along with community participation. Cultural media branding: To find away what’s being stated in relation to your brand, you need to have to use a watch system. This monitoring will enable you to understand who says your brand name and on what (from a tweet, a blog page, etc.), in which path and on what firmness. You will after that become capable to prevent an achievable downturn of notoriety by intervening as quickly as the 1st catalog seems. Suggested KPIs: number of endorsements acquired simply by your brand about interpersonal media, google trends, website statistics … Come back upon Expense (Return on investment) Holly Ford said: ‘The 2 nearly all essential things do not appear on the balance page of the company: its status and its men. ‘ The Return on investment is an indicator in itself since it will allow validating the relevance of the choices produced in the advertising strategy. It is the primary indicator because it is the result of calculating the profitability of marketing studies. The passions are usually very clear: increase earnings on the advertising levers included. Which dependable and quick indicator will make it probable to judge the relevance of the actions? Nowadays, it will be challenging to assess picture enhancement.

The concept of Return on Investment in the broadest sense must be taken into account. The worldwide effect on the company design that this electronic alteration imposes will be nearer to the Return on investment. The indications produced from the advertising activities (amount of appointments, CPC, Jump price, etc.) only allow measuring a part of the advantages of the digital strategy. For a global ROI, we recommend taking into account the price of renouncing also known as the chance cost. It’s really the price for the firm not really to spend in an electronic advertising technique. The computation will be carried out with regard to the turnover recognized thanks a lot to and that noticed without this digitization. Another way would be to measure brand awareness before and right after the marketing campaign. With cultural mass media signals, but furthermore with search engine styles. Reward: the view tools It is unthinkable to imagine getting a new digital advertising technique without holding a new view on the theme of the second option. The concept right here will be to figure out what sorts of info we should appear for and actually to arrange up equipment to automate this function, which can occasionally end up being tiresome. I propose to slice this paragraph on the view in three organizations: the view on popularity, how to automate its view (when feasible) and what equipment can assist us.

Comprehensive Appraisal of Marketing Strategies of PepsiCo

Market Segmentation

As we know that Pepsi is provided among a huge population which is called market. To distribute it and increasing the revenue the market should be segregated, Pepsi has segmented their market keeping four major segmentation variables in their mind which are:

• Geographic
• Demographic
• Psychographic
• Behavioral

Geographic Segmentation:

Geographic segmentation means dividing the market into different geographical units such as nations, regions, states, countries, cities of even neighborhood, Pepsi has put little emphasis to segment their market geographically. They are doing business almost in maximum places around the world.

Demographic Segmentation:

Despite the large customer base in the Soft Drink industry, Pepsi prefers to segment itself as the beverage choice of the “New Generation”, Generation Next, or just as the “Pepsi Generation”. These s advertising campaigns are what marketers’ terms adopted in Peps refer to as Generation X, which are presented to be between the ages of 18 to 29. In addition, Pepsi shifted its focus to the growing American teenage market in the 1990s by forming exclusive contracts with American schools and developing advertising campaigns such as “The Next Generation and the Joy of Pepsi’, featuring Britney Spears. Pepsi believes that if they can get this market to adopt their product, they could establish a loyal customer in a long run.

Psychographic segmentation:

Psychographic segmentation divides buyers into different groups based on social class, lifestyle or personality characteristics. People from same demographic group can have very different psychographic makeups Pepsi ‘s segmentation has also been emphasized psycho graphically. Their beverages are very much focusing towards lower and upper middle class as they can afford to drink Pepsi. They have a product like Mountain Dew a particular drink which is focused especially who has adventurous personality. Their campaign of this drink totally focuses adventurous young people.

Behavioral segmentation:

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses or responses to a product. In this segment, Pepsi company has been concentrating carefully. Because they offer in every Special occasions, for the people who seek for benefits off products, to their loyal customer base. Occasional cases like religious festivals; special days like mothers’ day , valentine’s day, friendship day, any individual’s birthday, marriage ceremony or anniversary in a Word in every special occasions there are people to whom buying Pepsi for celebration is a must.

Market Targeting:

Market Targeting can be carried out at several different levels, companies can target very broadly through “Undifferentiated Marketing”, very narrowly through “Micromarketing” or somewhere between “Differentiated Marketing” and “Concentrated or Niche Marketing”. There are four strategies of market targeting. Pepsi follows the strategy of “Concentrated or Niche Marketing”. In niche marketing Companies goes after a large share of one or a few segments or niches. Through concentrated marketing, the firm achieves a strong market position because of its greater knowledge of customer it serves in the niches it serves and the special reputation in acquires. Pepsi customers are mostly Teenagers and Young Adults between the ages of 14 to 30. It also targets at Schools, Colleges, Universities, Homes, Restaurants Hotels, and Stores. They focused on varietal differentiation since 1990 by introducing a string of niche products. To increase volume in order to counter flat Coca-Cola sales, Pepsi introduced Sierra Mist in 2002-2003 to take the place of 7Up and go head-to-head with Sprite. Pepsi has also tried to boost volume by introducing products that appeal to Specific target markets that it currently is not reaching. Pepsi has introduced Code Red and Live Wire, extensions of Mountain Dew, Pepsi One, and Pepsi Blue. Finally, Pepsi is countering declining sales of Carbonated drinks through the marketing and distribution of Starbucks ready to drink products, and the acquisition of SOBE and Gator ad. The success of Pepsi’s Mountain Dew Code Red launched in 2001 was the most successful soft drink innovation in 20 years and has spurred even more niche product introductions for PepsiCo as well as other competitors. In some sense Pepsi also follows the idea of “Micromarketing”. As they are they are promoting their brands to the local customer groups. They are sponsoring the signboards for the little or big shopkeepers in town. They are also providing refrigerator logoed “Pepsi”. All these they are doing to attract their target customers.

Market Positioning:

PepsiCo plans to further Create positions that will give products the Greatest advantage in their target markets. Pepsi has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Positioning Strategies of Pepsi: To find points of differentiation, Pepsi have followed some strategies which have differentiated themselves from others. Pepsi have differentiated themselves in the field of Product Differentiation, Channel Differentiation and image Differentiation. The unique characteristic of their product and their brand image has differentiated themselves from the other beverages in market.

Promotion Decisions:

Integrated Marketing Communications

Coordination of promotion and other marketing efforts for maximum informational and persuasive impact. Pepsi has popularity among the population. Therefore, it is quite a challenge for Pepsi Cola to maintain and increase this popularity. Integrated Marketing Communications (IMC) is one of the effective strategies that a researcher believe it will solve the existing problem in the business area. Nowadays, competition in the market tend to increase, the customer also change their lifestyle becoming incrementally changed, then using only one tool for marketing communication is not enough. It is because many senders of organization try to reach the same receivers or customers. So, using many of strategies and communication tools will help their brand to become well known. Integrated Marketing Communication (IMC) is a tool that suitable for encouraging the customer buying behaviors.

Promotion:

Communication to build and maintain favorable relationships by informing and persuading one or more audiences to view an organization positively and to accept its products.

Promotion Mix of Pepsi:

The promotional mix element used for the Pepsi Refresh campaign theme centered on social responsibility and delivered with a heavy dose of social media. They took it deeper than any other campaign, targeting the millennial generation ages 14 to 29 by utilizing social media as an additional source along with traditional media to launch the Pepsi Refresh campaign. The campaign aired on paid search and display ads on Yahoo and Google to traffic their viewer to a link on YouTube and Face book too included other channel like e-mail marketing and mobile sites which drive visitors to the site.

Promotion strategy of PEPSI:

Advertising:

For advertising, it used printed and electronic media. Every newspaper and magazine carries Pepsi advertisements that make the people interested towards it, Advertisement of Pepsi are eye catching and attractive, Through advertising it informs the consumer about new brands and flavors. Pepsi designs their advertising campaign focusing on the target markets. They research for the need of people before make the ads. Pepsi has used a variety of sales promotions over the years. They have used celebrity such as Michael Jackson, Beyonce for endorsements. This has been shown with the use of Beyonce AX. They have also had essay Contest to promotions through schools. They have giveaways in stores and coupon advertisement in newspapers:

• A paid non-personal communication about an organization and its products transmitted to a target audience through mass media
• Advertising is changing as mass media consumption habits are changing
• The Internet and digital media aim at smaller, more targeted audiences
• Advertising is highly flexible and can reach large or small audiences depending on need

Pepsi invests heavily in marketing like Coca Cola. The brand invested 4.1 billion dollars in marketing in 2017. Out of it 2.4 billion dollars were spent on advertising solely. This was however a bit less than its 2016 expenditure when it spent 4.2 Billion dollars on marketing out of which 2.5 billion dollars went to advertising. Marketing innovation is a key driver of demand in the soda industry and since the competition in the industry is very high, brands also compete in the area of marketing. The two leading brands Coca Cola and Pepsi invest billions in marketing to promote their products and brands. Pepsi has 20 Billion dollar brands in its portfolio that generate revenue in billions. It has run several iconic promotional campaigns and targets the young people mainly through its advertising campaigns. Digital engagement has become an important focus for PepsiCo and the brand is investing in engaging digital video ads and creating exciting advertising campaigns. Its “Bring Happiness Home” happiness campaign including a 20 minute long video has seen very high level of success in Greater China generating more than 1 billion views. The brand is focused on creating effective advertising and marketing campaigns for its sales and success to a large extent depends upon the success and effectiveness of its marketing campaigns. Apart from these campaigns Pepsi also depends on sponsorship for marketing of its brand and products. Pepsi also promotes its each brand individually like Gatorade a sports drink for the athletes is promoted through a separate campaign. Its “Made for This” campaign featured High School athletes. The campaign underscored that Gatorade is fuel for the athletes and their success. These marketing and advertising campaigns are made to draw new customers as well as to inspire brand recall.

Public relation:

A broad set of communication efforts used to create/maintain favorable relationships between organization and stakeholders. Pepsi is the first product to respond to consumer preference with lightweight, recyclable, plastic bottles. In addition, different approaches of promotional campaigns such as press releases have been imposed so as to make the product more appealing to the target market and to make these product marketable.

Personal selling:

A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation,Pepsi use pull strategy for selling the product. In every occasion Pepsi offers special offers. Like, they reduce the price; give extra quantity of drinks in the same price.

Publicity:

For publicity Pepsi use social media such as Facebook. Not only that Pepsi use YouTube to promote its product. It drives public attention toward the product. Pepsi also use brand ambassador and sponsor cricket team and world cup for publicity.

Direct Marketing:

Pepsi Uses its direct marketing to distribute their product through PIZZA HUT, KFC etc. More than that, they use e-commerce Such as “Refreshments Services Pepsi.com’ to market the product.

Create Awareness

Awareness is crucial to initiating the product adoption process for new products, encourage Product Trial. If customers stall in the evaluation stage, marketers can use methods to encourage product trial in order to move them to product adoption. When Pepsi-Cola North America decided to design a promotion to increase awareness and sales this summer, they looked to their agency, TLP, and SCA Promotions. Together, SCA, TLP, and Pepsi designed a summer-long promotion that would offer one lucky consumer the opportunity to become the world’s next billionaire. Only SCA, could make it happen: coverage for $1 billion.

Objectives:

Boost Pepsi product sales and increase brand awareness with consumers. Capture consumers’ interest by offering the largest cash prize in promotion history for a national brand – $1 billion. Gain sponsor support by partnering with the WB Network, Marriott Hotels, and United Airlines.

Strategies:

Offer the billion dollar prize on a bottle cap promotion that culminates with a live game show on the WB. Invite consumers to visit www.billionsweeps.com and enter a unique sweepstakes entry code found on specially-marked products. Randomly select 1,000 contestants to play a game of chance on the WB’s live show for a guaranteed one-million dollars and a chance to take home one billion dollars.

Each of the 1,000 selected contestants would choose a six-digit number on the day of the game show. The 10 contestants whose number was closest to or exactly matched the one selected by the chimpanzee, Kendall (A.K.A. “Mr. Moneybags”), advanced to the elimination round. Play a suspenseful game of elimination to determine the final player. In return for forfeiting their chance at the billion dollars, players were offered an increasing cash prize during each round. Award other great prizes during the game show to continue the excitement. Coordinate additional coverage for the one million $15 instant win bottle caps. SCA’s coverage protected Pepsi from an unexpectedly high rate of redemption. SCA estimated the redemption rate and covered the cost of redemption over that amount, keeping Pepsi on budget and risk free.

Results:

• Four million consumers submitted more than 20 million game entries. Pepsi captured important demographic information for future marketing efforts.
• Richard Bay, a graphic design teacher from Princeton, WV, was the final contestant and won the guaranteed $1 million. To win the billion, his six-digit number would have had to exactly match Kendall’s. He was only two digits away from an exact match.
• United Airlines presented two around-the-world trips, Marriott gave a life-long time share membership, and three Mitsubishi cars were awarded.

Distribution Channel of Pepsi:

Marketing channels are sets of interdependent organization involves in the process of making a product or service available for Use of Consumption. By channel distribution of Pepsi means the intermediaries of the process through which Pepsi is transferred from the producer to the ultimate users. There are a lot of intermediaries between Pepsi producers and consumers. Some intermediaries like wholesalers and retailers buy and resale the product. They are known as merchant middle men, Intensive Distribution: PepsiCo follows an intensive distribution strategy to distribute Pepsi, To support their universal feature that they want to place their product in as many outlets as possible, Distribution Model of Pepsi: Pepsi uses two types of distribution model to distribute the product among the consumers. They are Direct Distribution System and Indirect Distribution System.

Direct Distribution System:

Pepsi Uses its direct distribution system to deliver suppliers. It Supplies the product directly with: PIZZA HUT, KFC. According to the marketing channel Pepsi uses zero level of marketing. We can see there are no intermediaries between manufacturer and consumer. This single type of marketing channel is maintained by Pepsi.

Indirect Distribution System:

In this system, there are a lot of intermediaries such as distributors retailers, Wholesaler etc. To make the product available at the right places at the right time in the market, the sales department of PepsiCo Company pays major attention on controlling the channel of distribution. So according to the marketing channel Pepsi uses 2-level marketing channel.

Number of Intermediaries:

Pepsi Provides direct and employed employment of 1,500,000 people (including suppliers and distributors). Distributors Distributors frequently have a business relationship with manufactures that they represent. The distributors of Pepsi maintain exclusive buying agreements that limit the number of participants. The distributor becomes the company’s direct point of contact. Distributors do not sell the product directly to consumers. At first PepsiCo supplies Pepsi to the distributors, then they resale the product to wholesaler of retailer, according to http://www. exporters. sg/, there are 70 distributors of Pepsi. Some of them are: OTC GLOBAL LTD, INDIA (Exporting and importing Pepsi in 500 ML pet Bottles), SUNRISE FOODSTUFF JSC, VIETNAM (Exporting Famous Brand Pepsi Soft Drinks 330 ml).

Wholesalers:

The wholesalers of Pepsi generally buy a large quantity of products directly from distributors of the company. Then they resale the product to the retailers, according to http://www. exporters.sg/ there are 70 wholesalers of Pepsi. Some of them are: FAR WAY GENERAL TRADING LLC (Exporting and importing Pepsi), Brand Distribution Poland LTD, POLAND (Exporting Pepsi 0, 33 l, 24 Case).

Retailers:

Retailers consist of small and large for – profit businesses that sell products directly to consumers. The retailers buy small quantities of an item from a distributor or a wholesaler. Then resale them consumers. According to http://www.exporters.sg/ there retailers of Pepsi, Some of the retailers are Akin Enterprise, BANGLADESH, ANSii Computers, BANGLADESH. The channel of distribution is a structure which presents among alternative channels of distribution of the different marketing situation faced by retailers, wholesaler and producers within the structure. To bearing maximum profits of all institutions channel of distribution should be treated as a unit of total system of action.

References

1. https://www.scapromotions.com/case-study/pepsi/
2. https://www.slideshare.net/FatemaTuzZzohora/a-marketing-plan-for-pepsi-assaignment

Detailed Planning of Marketing Strategy for Stamford International University in Bangkok

Marketing Situation Analysis

Stamford International University Founded in year 1995, located in urban area of Bangkok with the population of 5 Million inhabitants. Level of education in Thailand is increasing from before. Launching an MBA International and National program is brilliant and successful strategy for now days in the area like Bangkok with the majority of educated population and large number of foreign students. Marketing situation of Stamford International university based on top universities in Thailand, it ranked 84, and 6706 worlds ranked.

SWOT analysis

Strengths:

• New education reform has made education sector more lucrative: Stamford International University offers always new and fresh course often. It introduce new system 2 times per year and bringing update according to current situation of market.
• Strong and well-known brand name in US, Europe and Asia: The band name Stamford International University is well known brand in US in many states like (California, Washington, New York…), Europe (UK, Germany, France…), Asia (South and Middle Asia).
• Located in a business area: Unique business location of Stamford International University give the university one step ahead of its competitors, it make their business easy to achieve their goals with less expending.

Weakness:

• Little scope in extra curriculum activities.
• Limited land for expansion and development of course: Stamford Asok Compus located in Exchange tower only in less than half of the one floor, In case if Stamford want to target the Thai market less than 5 year than with increase of students they will face class room limitation and there is no way to expand its land in this current location.

Opportunities:

• Inflow of foreign students will bring huge revenues: Inflow of foreign students have a huge effect on cash flow of the university. Its not only beneficial for university although its more beneficial to the area around the university and country economy. Inflow of foreign students will make the area important and business location for others around the university.
• Opening of new branches in south Asia: Stamford International University not only target Thailand market, whereas want expand its business in south Asia and have plan to open new branches in: Malaysia, Vietnam and Singapore.
• Technology development in teaching methods: Stamford International University want to make its teaching system more digitize, they want to add more computers which connect with the teaching method of university and bring fresh data to discuss and develop strategy for it.

Threats:

• More likely depend on Tourism: Stamford International University will target the International students more than National students, relying on International Students can be risky. Any politic roles can affect the inflow of tourists.
• Politics and Government Taxation: Stamford International University for continue its services, have to pay multiple tax for Thailand government as an foreign registered institute.
• Country Economy: As general down of economy in a country will affect every sectors of the country including Institutions private of government institutes and Universities. But for a University like Stamford it will affect more in the revenue of the university because Stamford International University target middle- and upper-class peoples.
• Rapidly Changing information technology will make university to expend more to their business to keep them in the level of their competitors.

Target Market

STP Analysis:

• Segment your market

1. Demographic: According to 2010 last census, out of 8.3 million population 5.7 million of them were registered residents which includes different types of race, like: Japanese More than 80000 population, Chinese 56000 population, European 48000 population and other Asian countries 117000 populations. Majority of these population are staying for education purpose. Based on demographic conclusion more than 50% of this population is young generation people. almost all foreign students traveling in to Thailand they’re speaking well English and MBA International program welcomes all types of race and people.
2. Geographic: Our location in Asok campus geographically its in the center of Bangkok with highest foreign population. Our Geographic target will be more foreign student, so we have plan to add more classes in Asok campus for both international and Thai students.
3. Psychographic: Based on psychographic analysis our target will be customers with urban Life style, more educated and open mind and Stamford International University offers an unconventional urban learning space.
4. Behavioral: How did our customers or student’s family will behave for their Child education.

• Target your best customers: Our best and Targeted customers are foreign students which they work and visit Thailand with middle- and high-class economy. For foreign and Thai students, we offer more facilities and second is high class National students with high family income.
• Positioning: Stamford International University position its education in top 100 in Thailand and 6706 position in the world. Based on International Students it’s in top 20 position in Thailand.

Marketing Objectives

Marketing objectives are the marketing strategy defined to achieve the overall business objectives.

• Specific: Stamford International University goal is to be among top 5 Thailand Universities with the highest number of foreign students and among top 100 Universities in All Asia.
• Measurable: Stamford International University’s aim to grow the number of students in MBA program by putting chart of foreign student’s candid and Thai students list yearly. And Stamford International University growing their business by different ways like social pages (Facebook, Instagram…), Board, seminars about new MBA program.
• Achievable: Stamford International University’s aim to achieve more share in Thailand market with target of 20+% between 2018-2022.
• Realistic: Stamford International University always keep updating their data, libraries and university system and they offer pre-courses, workshops to make the students more active to achieve more knowledge about their new launching program.
• Time: Stamford International University’s aim to achieve majority of share in Thailand market and All Asia in less than 5 years.

Marketing Program (7 P’s)

1. Product: As we know product is something tangible to being sold, so in case of university Students are our customers and the MBA degree which Stamford University want to give to the students is product and design of the degree is central to the product element of the marketing mix. The main job of University is to make their product and curriculum more developed to their customers and can provide needs of the students.

2. Price: Stamford International University offers their MBA program 25,000 Baht for each block for Thailand students and adding 3500 Baht international charges for International Students. And with this price they offer many free workshops and presentations.

3. Place: Place is the distribution method of an university which adopts to tuition to its market in manner to match students expectations, Stamford International University Place provide many facilities for International Students, like their access to Metro station, shops, mall and restaurants.

4. Promotion: Promotion Includes all the activities and tools that university want and can provide offering to the market, like: Sales promotional efforts, advertising, publicity and their public relations.

Stamford International University provide different types of promotion to their MBA students, like: Accepting Credit cards from Students which they cannot provide fee amount and give them fee offer with 10-15% discount for credit card students. Accepting Scholarship students from low economic countries. 80-90% discount for top ranked student.

5. People: In general, the people includes all the staff of university which interact with those students which enrolled in university, like: administrative support staff and academic team. Stamford International University have more than 50 active administrative staff and support staff to take care of their students.

6. Process: A University education requires payment prior to consumption, there is no ownership exchange, unlike tangible products the customer buy it and take the ownership of it and consume it. Process in Education institutes includes bureaucratic and administrative function of the university. A process in education institutes works like: Inquiries to registration of the student, Evaluation to examinations of the students and from result to graduation and degree. Stamford International University staff categorized as Financial department, Academic support, International support team, Visa sector, cashier and enrollment. Stamford International University have the processes of providing student need from the time they take admission to graduation; the staffs make sure the student registers in correct courses.

7. Physical Evidence: Physical Evidence is the tangible element of marketing mix. In University aspects variety of tangible include lecture facilities and teaching materials to the appearance of the buildings. Stamford International University for launching their new International and National MBA program invites lecturer from main branch in US to increase the quality of the studies.

Marketing Implementation

It’s a process which turns marketing plans into action assignment and ensure that such assignments are executed the plan’s stated objectives (Kotler 1997). Stamford is an international university and it want to expand its business in south Asia and all around the world therefore company uses advertising and different marketing programs which will use to target the various groups of people in the market, like: special seminars about education and marketing activities.

Action Plan:

Objective Periods for Tactic Activity: Term One (Jan-May).

Achieve the highest number of International candids. Beginning of the year is the time for International student inflow, and in this time of the year by adding more international lecturers and extra classes in weekend days (Saturday and Sunday) we will like to handle the maximum number of international students. Social media (Instagram, Tweeter, Facebook) channels

Board advertisements. Term Two (May-Aug)

Achieve the highest number of National and International candids. This period of time is normally selected by National and International students, our aim and goal is to increase the advertising and bring some promotion in the tuition and keep updating the resources and program. Social media (Instagram, Tweeter, Facebook) channels

Board advertisements. Term One (Aug-Dec)

Raise awareness This is actually the period that we can raise the awareness of our upcoming new year program to the customers with the help of Advertising and marketing team. This season of the year consider to be the best time for advertising and boost the sales and increase the awareness of our new program. In this period Stamford International University should focus on its advertising and expend more in this way to aware the customers as much as possible. We will consider to expend in two main type of adverting more than others which can be the Social Media and TV advertising. Social media (Instagram, Tweeter, Facebook). December Holidays Prepare for the upcoming season This is good to take advantage from holidays to increase awareness of our program and measure all the university and make them update if need to be, bring update to systems.

Evaluation and Measurements

Measurement carrying out actual measurement in aim to assign a quantitative meaning to a quality. Evaluation is the qualitative measure of the business situation and it calls for evidence of suitability, goodness and effectiveness. Evaluation of education institutes includes recommendation for a constructive action.

Purpose of Evaluation for Education Institutes:

• To determine the effectiveness of the program.
• To make sufficient and reliable decision about the program planning.
• To identify growth and lack of growth in knowledge skills.
• To Provide educational administrators about university needs.
• To measure the general trend in the development of the learning and teaching process.
• To provide an efficient management and economical management of scarce resources.

Types of Evaluation:

• Formative: Formative Evaluation use by Stamford International University to find out learning experience of students whether their able to do and attend what they were unable to do in past. And formative evaluation will help the students to perform well at the end of program. With the help of formative evaluation, the university will be able to know the strength and weakness of the student within an instructional context.
• Summative: Stamford International University often use summative evaluation to determine the broad objectives of a program which have been achieved in (Public examinations, promotions…)

As per result after applying these two techniques by university the summative evaluation shows more objective and useful than formative evaluation

Evaluation Tools:

• Sales (M&Y) = % of Sales Growth/Time
• Sales Volume = Sales volume increase % / Order quantity for the block*100
• Market Share = Total Revenue / Total Sales over a fiscal period
• Marketing Expenditure = Total Marketing expenditure / Marketing Sales
• Return on Investment = Current value of Investment – Cost of Investment / Cost of Investment

References:

1. A New Higher Education Marketing Mix (7P’s). Retrieved from: https://www.researchgate.net/publication/235284514_A_new_higher_education_marketing_mix_The_7Ps_for_MBA_marketing
2. Bangkok Population 2019. Retrieved from: http://worldpopulationreview.com/world-cities/bangkok-population/
3. Measurement and Evaluation in Education. Retrieved from: https://www.academia.edu/34793647/Measurement_and_Evaluation_in_Education_PDE_105_UNIT_ONE_THE_CONCEPTS_OF_TEST_MEASUREMENT_ASSESSMENT_AND_EVALUATION_IN_EDUCATION
4. Stamford International University. Retrieved from: https://www.4icu.org/reviews/11989.html
5. SWOT analysis for Education, School and Colleges. Retrieved from: https://rapidbi.com/swot-analysis-for-schools-and-education/