Marketing Principles Assignment 2

UNIT TITLE Unit 4: Marketing Principles ASSIGNMENT TITLE Gatorade Marketing Mix Programme ASSIGNMENT NO 2 of 2 NAME OF ASSESSOR SUBMISSION DEADLINE January 2013 I, ____________________

BANKING ACADEMY, HANOI

BTEC HND IN BUSINESS (FINANCE)

ASSIGNMENT COVER SHEET

NAME OF STUDENT

REGISTRATION NO

UNIT TITLE Unit 4: Marketing Principles

ASSIGNMENT TITLE Gatorade Marketing Mix Programme

ASSIGNMENT NO 2 of 2

NAME OF ASSESSOR

SUBMISSION DEADLINE January 2013

I, hereby confirm that this assignment is my own work and not copied or plagiarized from any source I have referenced the sources from which information is obtained by me for this assignment.

_

Signature Date

Class SO4

Student no Signature Leader:

-FOR OFFICIAL USE (Course Administrator)

Unit Outcomes

Outcome Evidence for the

criteria Feedback Assessor’s decision Verification Internal

First attempt

work

3.1

Explain how distribution is arranged to provide customer convenience

3.2

Explain how prices are set to reflect an organisation’s objectives and market conditions

3.3

Illustrate how promotional activity

is integrated to achieve marketing objectives

3.4

Analyse the additional elements

of the extended marketing mix

4.1

Illustrate differences

in marketing products and services to businesses rather than consumers

4.2

Outcome Evidence for the

criteria Feedback Assessor’s decision Verification Internal

LO4

Show how and why international marketing differs from domestic marketing.

4.3 Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3

Outcome Evidence for the

criteria Feedback Assessor’s decision Verification Internal

Assignment

( ) Well-structured; Reference is done properly / is not done properly /should be done (if any)

Overall, you’ve passed / referral………outcomes

Areas for improvement:

 To achieve a pass, you must meet all the requirements defined in the assessment criteria

 To achieve a merit, you must identify and apply strategies to find appropriate solutions and appropriate methods/techniques as well as to present and communicate appropriate findings

 To achieve a distinction, you must use critical reflection to evaluate own work and justify

valid conclusions as well as to take responsibility for managing and organizing activities



ASSESSOR SIGNATURE DATE / 1 /2013 NAME: Doti Chee

Outcome Evidence for the

criteria Feedback Assessor’s decision Verification Internal

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands,including 19 different product lines that each generates more than $1 billion in annualretail sales Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana andGatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy

to our consumers in more than 200 countries With annualized revenues of nearly $60billion, PepsiCo's people are united by our unique commitment to sustainable growth,called Performance with Purpose By dedicating ourselves to offering a broad array ofchoices for healthy, convenient and fun nourishment, reducing our environmentalimpact, and fostering a diverse and inclusive workplace culture, PepsiCo balancesstrong financial returns with giving back to our communities worldwide

PepsiCo (NYSE: PEP), the world's second largest food and beverage business, todayannounced that it plans to invest US$250 million in Vietnam over the next three years

"I am pleased to announce that over the next three years we expect to invest $250million in our food and beverage businesses in Vietnam," said Mr Saad Abdul-Latif,chief executive officer of PepsiCo Asia, Middle East and Africa, to a gathering ofemployees, business partners and community leaders in Ho Chi Minh City "Vietnamrepresents one of PepsiCo's most exciting growth opportunities, and this investment is areflection of our confidence in this dynamic country and the talented people who liveand work here."

PepsiCo offers product choices to meet a broad variety of needs and preference fromfun-for-you items to product choices that contribute to healthier lifestyles Gatorade isthe Official Sports Drink for the NFL, NBA, MLB, WNBA, AVP, MLS, MLL, along withnumerous colleges and universities across the United States Further, Gatoradesponsors the New York and Boston Marathons, the Chicago Triathlon, the IronmanWorld Championship and developed the in-car hydration system for NASCAR

Gatorade director William Morris says his team has seen a fundamental shift fromdiscipline-based marketing to managing communication through product teams

“Before, we had a marketing communications department, or a PR department, pushingout strategy for all our products, no matter who the target was

“Now we have teams associated with each [Gatorade] product line looking at howpeople engage with the products,” he says These conversations in turn will influencewhere the brand goes in terms of new product development and its communications.

Gatorade is now moving towards being able to measure the effect of putting particularmessages into social media, as well as the kinds of sentiments people show inresponse “If the spend doesn’t really push up sentiment or awareness then we move to

a different channel,” he says

Success in this competitive environment is dependent on effective promotion of existingproducts, the introduction of new products and the effectiveness of our advertisingcampaigns, marketing programs and product packaging We believe that the strength ofour brands, innovation and marketing, coupled with the quality of our products andflexibility of our distribution network, allow us to compete effectively

The above data has been based on a real life organisation, but details have been changed for assessment purposes and do not reflect the current management practices.

Students are advice to visit as well as look into the organisation’s website, competitors’ information and other information relevant to the case.

With the information of ‘Gatorade’ in the Assignment 1, and the above, you, have been

asked to assist and present to your marketing manager a report on the following:

TASKS

 Explain how ‘Gatorade’ are developed to sustain competitive advantage (3.1)

 Explain how distribution of Gatorade is arranged to provide customer convenience

(3.2)

 Explain how prices are set to reflect Gatorade objectives and market conditions

 Illustrate differences in marketing products and services to businesses rather than

 Show how and why international marketing differs from domestic marketing for

Pass is achieved by meeting all the requirements defined in the assessment

criteria (Refer page 2 of this assignment brief)

Merit Identify and apply strategies to find appropriate solutions (M1)

Characteristics / Possible Evidence – Relevant theories and techniques

have been applied to individual elements of marketing mix to arriveeffective judgments for the given products as well as different marketingsegments and contexts

Characteristics / Possible Evidence – Appropriate methods select and

apply to justify different market segments and contexts using of varioussources of information for the given products

Characteristics / Possible Evidence – An appropriate structure and

approach has been used to prepare market reports to your clients’.Present data using a range of methods e.g tables or charts etc

Distinction Take responsibility for managing and organizing activities (D2)

Characteristics / Possible Evidence – Evaluate the importance and impact

of each element of the marketing mix to the marketing strategy andorganize activities to different segments and contexts

Demonstrate convergent, lateral and creative thinking (D3)

Characteristics / Possible Evidence – Apply the theoretical knowledge in

creating a marketing programme for a specific product and marketsegments, include all marketing mix decisions

1 The assignment should have a cover page that includes the assignment title,assignment number, course title, module title, Lecturer/tutor name and student’sname Attach all the pages of assignment brief/cover sheet with your report andleave them blank for official use

2 Ensure that authenticity declaration has been signed

3 This is an individual assignment

4 Content sheet with a list of all headings and page numbers

5 A fully typed up professionally presented report document Use 12 point Arial orTimes New Roman script

6 Your assignment should be word-processed and should not exceed from 3,000words in length A CD should be included with references and accompanyingnotes

7 Use the Harvard referencing system

8 Exhibits/appendices are outside this limit

9 The assignment should be not contain a bibliography – but should contain a list

of any references used in the assignment

NOTES TO STUDENTS FOR SUMMISSION

 Check carefully the submission date and the instructions given with theassignment Late assignments will not be accepted

 Ensure that you give yourself enough time to complete the assignment by thedue date

 Do not leave things such as printing to the last minute – excuses of this naturewill not be accepted for failure to hand-in the work on time

 You must take responsibility for managing your own time effectively

 If you are unable to hand in your assignment on time and have valid reasonssuch as illness, you may apply (in writing) for an extension

 Failure to achieve a PASS grade will results in a REFERRAL grade being given

 Take great care that if you use other people’s work or ideas in your assignment,you properly reference them in your text and any bibliography

 NOTE: If you are caught plagiarizing, the University policy and procedures will apply.

Marketing principle: Gatorade in Vietnam

Prepared for:

Ms Doti Chee (Lecturer)

Unit 4: Marketing

Banking Academy, Hanoi

BTEC HND in Business (Finance)

Viet Nam is an ideal market for PepsiCo in launch Gatorade Therefore, it is necessary forPepsiCo to understand the requirement of consumer and market in Viet Nam The reportevaluates this range base on many reliable sources and applies my marketing knowledge onGatorade, so this report includes:

 Explain how products are developed to sustain competitive advantage

 Explain how distribution is arranged to provide customer convenience

 Explain how prices are set to reflect an organisation’s objectives and market conditions

 Illustrate how promotional activity is integrated to achieve marketing objectives

 Analyses the additional elements of the extended marketing mix

 Plan marketing mixes for two different segments in consumer markets

 Illustrate differences in marketing products and services to businesses rather thanconsumers

 Show how and why international marketing differs from domestic marketing

The recommendation for PepsiCo is that the company should do research about market and itscustomers to have deeply understanding about them to meet their requirements Therefore, thecompany will gain more achievements in business operation.

Table of Contents

3.1 Explain how products are developed to sustain competitive advantage 7

3.1a: FAB (Features, advantages and benefits) 7

3.1b: Unique selling proposition (USP) 8

3.1c: The Product Life Cycle 8

3.1d: Branding 9

3.1d1: Brand leadership 9

3.1d2: Brand positioning 10

3.1e: The Ansoff Growth Matrix 10

3.2 Distribution is arranged to provide customer convenience 11

3.2a Five rights of distribution 11

3.2b Distribution channel 11

3.2c Selection of distribution channel: 12

3.2d Physical distribution 13

3.3 Explain how prices are set to reflect an organisation’s objectives and market conditions 13

3.3a Market conditions 13

3.3b: PepsiCo’s objective 14

3.4: Illustrate how promotional activity is integrated to achieve marketing objectives 15

3.4a: Marketing objective 15

3.4b Integrated promotional activities to meet objective 16

3.5 Analyse the additional elements of the extended marketing mix 17

3.5a People 17

3.5b Physical evidence 18

3.5c Processes 18

4.1 Plan marketing mixes for two different segments in consumer markets 19

4.1a: Two different segments in consumer market for Gatorade 19

4.1b Plan marketing mixes for segment 1: Heavy user 19

4.1c Plan marketing mixes for segment 2: Medium user 21

4.2 Differences in marketing products and services to businesses rather than consumers 22

4.3 Show how and why international marketing differs from domestic marketing 24

4.3a International marketing opportunity - Benefits and Risks 24

4.3b The differences between international marketing and domestic marketing 24

4.3c Marketing mix strategies for international market 25

4.3c.1 Product 25

4.3c.2 Place 26

4.3c.3 Price 26

Appendix 29

References list 29

Marketing is an important activity for all the firms, it has strongly influence on the firms As weknow, all the success’s company has much effectiveness marketing activity and they invest muchmoney, human, and times to research and develop it Thanks to marketing, company can makeconsumer know their product and service, in the other side, marketing help company can meetconsumer’s requirement However, marketing is the not easy to finish in the effective way for allcompany It is a long process need many times and effort of company Therefore, to achieve theobjective, all company have to have the specific marketing strategy, which define what you do tofind out who will buy this product or service, what their demand are, and how to company can do

to achieve them

There are many sources of information in this research such as internet, book, article, case studyand some research that study the same topic with this product In all sources, the main sources ofthis research are internet It brings information about Gatorade, the development history of theirproduct and all information about product such as series, flavors, style of product and so on.Besides internet, book, article, case study and others research are the important source to helpcomplete research about marketing of Gatorade in Viet Nam

However, because of limitations about time, words, this assignment only gives generalinformation The researcher hopes that those disadvantages will be improved in the future

3.1 Explain how products are developed to sustain competitive advantage

3.1a: FAB (Features, advantages and benefits)

Product Features Advantages Benefits

Gatorade

Many kind ofgreat tastingflavors

 More choices forcustomers

 More delicious

 Satisfies individualdemand of each people

 Loved by customers forfirst use

High quality  Contains more nutrients

good for body

combination of fluids,electrolytes,

carbohydrates

 Better for the health

 Make customers feelsafer when they usethem

components and otherinformation related tothe product

 Attract customers for thefirst sight

 Time - saving

Plastic bottles  Lighter

 Easier to clean and reuse

 Feel comfortable for use

 Economy of initialoutlay

Marketing Principles – Assignment 2

Maple Group – F05A

3.1b: Unique selling proposition (USP)

As can be seen, Gatorade has more innovative features which distinguish it from direct

competitors: PowerAde and Pocari Sweat It helps Gatorade to maintain the

competitive advantages and built a strong position in a niche market opportunity To

promote this, Gatorade create unique selling proposition, namely:

 “To thirsty, sweaty jock, ‘Gatorade’ is the original sports beverage that

quenches thirst while replacing fluids and electrolytes.”

 Gatorade is the only sports drink

 That is thirst quenching

 For the youth who leads an “active” lifestyle

 That promises to improve performance

 No brand has a similar position

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m a

Marketing Principles – Assignment 2

Maple Group – F05A

 Others focus on complete with electrolytes and positively charged ions(PepsiCo, n.d.)

3.1c: The Product Life Cycle

In Viet Nam, Gatorade build brand, increase sales and profit, so Gatorade brand would

be placed in the growth stage of the product life cycle In this stage, Gatorade needs to

follow the steps in the following marketing strategies to compete with competitors

3.1d: Branding

3.1d1: Brand leadership