Marketing Principles Assignment 2

Marketing Principles – Assignment Maple Group – F05A BANKING ACADEMY, HANOI BTEC HND IN BUSINESS (FINANCE) ASSIGNMENT COVER SHEET NAME OF STUDENT REGISTRATION NO UNIT TITLE ASSIGNMENT TITLE ASSIGNMENT NO NAME OF ASSESSOR SUBMISSION DEADLINE Unit 4: Marketing Principles Gatorade Marketing Mix Programme of 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 Marketing Principles – Assignment Maple Group – F05A Serial Group member (Vietnamese No Name) Group member (English Name) Class Student no Signature SO4 Leader: FOR OFFICIAL USE (Course Administrator) Assignment Received By: Date: Marketing Principles – Assignment Maple Group – F05A Unit Outcomes Outcome Evidence for the criteria Feedback Assessor’s decision First Understand the individual elements of the extended marketing mix LO3 Be able to use the marketing mix in different contexts LO4 Explain how products are developed to sustain competitive advantage 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 3.5 Plan marketing mixes for two different segments in consumer markets 4.1 Illustrate differences in marketing products and services to businesses rather than consumers 4.2 Show how and why international marketing differs from domestic marketing 4.3 Re- Internal Verification Marketing Principles – Assignment Maple Group – F05A Outcome Evidence for the criteria Feedback Assessor’s decision Merit grades awarded M1 M2 M3 Distinction grades awarded D1 D2 D3 Internal Verification 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 / /2013 Marketing Principles – Assignment Maple Group – F05A Outcome Evidence for the criteria Feedback Assessor’s decision NAME: Doti Chee (Oral feedback was also provided) STUDENT SIGNATURE DATE NAME : FOR INTERNAL USE ONLY VERIFIED DATE YES NO : VERIFIED BY : NAME : / / Internal Verification Marketing Principles – Assignment Maple Group – F05A SCENARIO – GATORADE IN VIETNAM 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 annual retail sales Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - 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 $60 billion, PepsiCo's people are united by our unique commitment to sustainable growth, called Performance with Purpose By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide PepsiCo (NYSE: PEP), the world's second largest food and beverage business, today announced 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 $250 million 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 of employees, business partners and community leaders in Ho Chi Minh City "Vietnam represents one of PepsiCo's most exciting growth opportunities, and this investment is a reflection of our confidence in this dynamic country and the talented people who live and work here." PepsiCo offers product choices to meet a broad variety of needs and preference from fun-for-you items to product choices that contribute to healthier lifestyles Gatorade is the Official Sports Drink for the NFL, NBA, MLB, WNBA, AVP, MLS, MLL, along with numerous colleges and universities across the United States Further, Gatorade sponsors the New York and Boston Marathons, the Chicago Triathlon, the Ironman World Championship and developed the in-car hydration system for NASCAR Marketing Principles – Assignment Maple Group – F05A Gatorade director William Morris says his team has seen a fundamental shift from discipline-based marketing to managing communication through product teams “Before, we had a marketing communications department, or a PR department, pushing out strategy for all our products, no matter who the target was “Now we have teams associated with each [Gatorade] product line looking at how people engage with the products,” he says These conversations in turn will influence where 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 particular messages into social media, as well as the kinds of sentiments people show in response “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 existing products, the introduction of new products and the effectiveness of our advertising campaigns, marketing programs and product packaging We believe that the strength of our brands, innovation and marketing, coupled with the quality of our products and flexibility 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 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 Marketing Principles – Assignment Maple Group – F05A • Explain how ‘Gatorade’ are developed to sustain competitive advantage • 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 (3.3) • Illustrate how promotional activity of Gatorade is integrated to achieve marketing objectives (3.3) • Analyse the additional elements of the extended marketing mix of Gatorade (3.1) (3.4) • Plan marketing mixes for two different segments in consumer markets for Gatorade (4.1) • Illustrate differences in marketing products and services to businesses rather than consumers for of Gatorade (4.2) • Show how and why international marketing differs from domestic marketing for Gatorade in Vietnam (4.3) Marketing Principles – Assignment Maple Group – F05A GRADING Pass is achieved by meeting all the requirements defined in the assessment criteria (Refer page 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 arrive effective judgments for the given products as well as different marketing segments and contexts Select and apply appropriate techniques (M2) Characteristics / Possible Evidence – Appropriate methods select and apply to justify different market segments and contexts using of various sources of information for the given products Present and communicate appropriate findings (M3) 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) Marketing Principles – Assignment Maple Group – F05A Characteristics / Possible Evidence – Evaluate the importance and impact of each element of the marketing mix to the marketing strategy and organize 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 market segments, include all marketing mix decisions Marketing Principles – Assignment Maple Group – F05A • Uniforms and employee dress Gatorade design unique uniforms that have young and energetic characteristics for all employee and design follow the team colors In addition, in each uniform have logo of PepsiCo → Make customers Product: think people who work in Gatorade is similar with people who work in PepsiCo, it is not different As a result, it affects the awareness of customer Price: with Gatorade product, Distribution • Headquarters, transaction offices Promotion: Gatorade has headquartered in 555 W Monroe St Chicago IL 60661 (Ecorporateoffices, n.d.)Gatorade has some transaction offices in large city in Vietnam such as Ho Chi Minh City, Hanoi, Da Nang, etc → The headquarters of Gatorade stay in one of the largest cities in the world and transaction offices are stay in large cities of Vietnam so it show the big of Gatorade’s brand and the high position of Gatorade in sport drink market As a result, it helps consolidation of belief of customer with Gatorade’s brand and product • Packaging Many color for each bottle which suitable to each flavor of products For example, with Lemon Line flavor Gatorade has yellow bottle, Fierce Berry flavors has red bottle, Orange ice has color of bottle is orange that color is suitable with the featured of orange flavor → The differences of bottle color help consumers easy to find and define the flavor that they want with other flavors 3.5c Processes Gatorade has a major marketing planning process for their product include part, part is identify the positioning to the primary target market and part is the marketing mix strategy Marketing Principles – Assignment Maple Group – F05A Marketing Principles – Assignment Maple Group – F05A 4.1 Plan marketing mixes for two different segments in consumer markets 4.1a: Two different segments in consumer market for Gatorade Two segmentations for Gatorade in consumer market are based on product usage • • 1st segment: heavy user (professional) such as athletes, sportsman 2nd segment: medium user (amateur) such as student, active people 4.1b Plan marketing mixes for segment 1: Heavy user Marketing mixes • Products Increase the healthier ingredient can provide maximum energy, quickly resupply to the athletes while exercises Packaged in containers which are easy to handle with weights of 0.5 liter and 0.33 liter • Direct distribution channel to professional sports centers, sports clubs, sports- training centers and Tu Son Sports University Pay attention on higher income places • Help athletes saving time to find Gatorade’s products Almost athletes have high income: • Gatorade can set high price, perceived value pricing • Different pricing for different product lines There are some promotional activities closer to sportsman • Banners and leaflets at places where sports competitions are held in sports teams • Advertising in newspapers: The Thanh Nien, The Tuoi Tre, The Van Hoa & The Thao Advertising message should focus on its application of thirst quenching, • • Have better competitive advantages More customer • • • Retain old customer Raise awareness Raise sales • • Place Price Promotion Advantages Plan • • Athletes consume a lot of energy during heavy competition Keep customer loyalty Marketing Principles – Assignment Maple Group – F05A • • rehydration and energetic recovery Advertising message should focus on its special ingredients for professional sportsmen Sponsoring sports competitions held by schools and universities 4.1c Plan marketing mixes for segment 2: Medium user Marketing mixes • Products • Place • • Price • • • Promotion • • • Plan The design should be attractive and impressive The G Natural and the G Series sports drinks with various flavors preferred Supermarket and convenience stores Sports clubs, Youth clubs, gyms in big cities and towns such as Hanoi, Ho Chi Minh and Da Nang cities Gatorade should set cheap price in this segment because they don’t have much money Discounting for bulk buying and orders in a great number Advertising on TV Sport Stars channel, on PepsiCo website and on enewspapers Seeking famous sportsmen to be Gatorade representatives Giving a discount for the first buyers Advertising on TV channels preferred by the Youth such as VTV3, Sport Stars, HBO, on PepsiCo website and on e-newspapers The scenario for such advertising must be exciting, impressive with young, good-looking actors and actresses Advantages • Satisfy individual’s demand • More portables • More choice for customer • Attract more customer • Save money and time • Increase sales, revenue • Keep customer loyalty • Raising awareness • Raise marketing efficiency 4.2 Differences in marketing products and services to businesses rather than consumers Marketing products to business Elements Marketing products to consumer Marketing Principles – Assignment Maple Group – F05A Product Classification Target marketing Technically sophisticated, Gatorade use high technology, during the manufacturing process There are classifications B2C has classifications of • Capital goods good: Defendi through effective • Accessories.Building company’s image • Convenient good communicati ng • Raw material • Shopping good • Components.quality: • Specialty good • Supplies • Unsought good • Business services Easier to cover all organization In consumer market, Gatorade related by sport in Viet Nam has more difficult because Gatorade cannot cover all information about individual demandin Vietnam market In Business, Gatorade’s products are high quality, meet the international standards for sport drink Product Price Marketing mix Place Promotion Nature of demand Lower technical content, the satisfaction of consumer in technical is low Price negotiated to make balance profit for both Gatorade and organization • Limited number of large buyers: Gatorade does not have many large buyer • Short channels: organization buy product directly at Gatorade factory Emphasis on mass media advertising: Use sport newspaper, sport channel Major sports events, Gatorade is displayed in the stunning locations and easy to attract customers’ attention Derived or joint demand After-sales service which include delivery, purchase online, customer service pre-sales service, it quotations the price, and create opportunities to see products in action and free trials Custom-built: closer and high commitment Packing for resale Price fixed Gatorade used the price which prints in package • • Large number of small buyers Complex channels because consumer buy product by wholesaler or retailer Emphasis on personal selling: Trade shows in Big C supermarket Discount cards for close customers, and other networking events Primary demand Marketing Principles – Assignment Maple Group – F05A Time effects Customer service Long-term relationships Short-term relationships Critical to success Less important → In general, the table shown many difference inmarketing products and services to businesses and consumers Gatorade needs market product to meet all requirements of both business market and consumer market 4.3 Show how and why international marketing differs from domestic marketing 4.3a International marketing opportunity - Benefits and Risks Benefit • Through exports, PepsiCo expand their consumed market, because it is obvious that international market is larger than domestic market, the more potential overseas • customers are, the more sales increase When the domestic market does not consume the company’s product, the international market is the only way to consume excess production As a result, exports help decrease the costs of product and improve profitability; lead to selling • prices can fall to create conditions react to boost the volume of goods sold more Enhancing the understanding of international competition This benefit creates competitive advantage for Gatorade Risk • Sales is affected by factors outside PepsiCo’s control, specifically social, cultural, economic and technological factors, For example, culture of Vietnam is difference in each region  it is difficult to catch consumer’s requirement to satisfy them Especially, the buying decision of Vietnamese usually based on the people who used to that product and purchasing habits  difficult to attract customers 4.3b The differences between international marketing and domestic marketing Factors Social and cultural Domestic marketing International marketing (USA) (Vietnam) Relatively homogeneous market: Only Fragmented, diverse markets, and one nation has same language and diverse purchasing habits: Language, Marketing Principles – Assignment Maple Group – F05A Economic Political legal Technological Competitive culture and similar purchasing habits  cultures and habits of Vietnamese is easy to understand customers’ demand different than those of American  to attract them difficult to approach In contrast, Vietnam’s economy also The standard of living of American is develop stably, however, the standard of high  Spend more in consumer living just increase in recent years  the goods, specifically Gatorade - a sport demand of customer in sport drinks is drinks  demand is high limited despite of having a significant change PepsiCo only pay cost for tax such as Besides company tax, PepsiCo must company tax for US government extra costs for many kind of tax such as tariffs and customs duties, quantitative restrictions, exchange controls, local taxes In US, employees have been trained and can use the production lines proficiently  reduces costs, reduce technical errors in the production process of Gatorade PepsiCo know exactly their competitors’ product, prices, and costs; even understand plans the competitors used to use, always aware of them  easy to compete with them when PepsiCo has long history and famous brand in US Extra costs and time to train of Vietnamese to operate and maintain equipment Vietnam has more competitors that PepsiCo not catch much information about their strategies as well as their prices in the market  difficult to compete when Vietnam is considered as a new market to PepsiCo 4.3c Marketing mix strategies for international market 4.3c.1 Product The most important thing that any company also focus when entering into international market is to maximize sales and increase profits In order to reach it, Gatorade chooses to adapt the product, however for different country, each market they has different approaches of adaption For Gatorade in Vietnam, PepsiCo has used Communications adaption With this approach, PepsiCo does not need change and develop their product; it just changes the language This change is suitable for Vietnamese when their language skills are limited It helps for users to understand to content, component of the product More than ever, it plays a necessary role in deciding to buy the products of customers Marketing Principles – Assignment Maple Group – F05A 4.3c.2 Place Marketing Principles – Assignment Maple Group – F05A 4.3c.3 Price Marketing Principles – Assignment Maple Group – F05A Marketing Principles – Assignment Maple Group – F05A 4.3c.4 Promotion Marketing Principles – Assignment Maple Group – F05A Marketing Principles – Assignment Maple Group – F05A Conclusion Business operation in any fields also has competitions, whatever its size so a right business strategy is essential for every company It will help the company deal flexible and timely and exactly with the changes of business environment The right product: Pepsi CorporationInisthe a large specializing in the fields of production and supply of rightcorporation place: At the right time: sports drinks for the Vietnamese market over 15 years Gatorade product of PepsiCo is interested In the right quantity: by many countriesFor in over the world, the right price:one of them is Vietnam Moreover, opportunity to develop production is high when Vietnam joins WTO Knowing customers’ needs, PepsiCo produce sport drinks with the analysis and discuss how to produce a product, how to set price, contribute and promote effectively in Viet Nam market Besides, it provide the additional 3Ps in total 7Ps We plan a marketing mix strategy for segmentations in consumer market Show the difference between B2B and B2C market in produce and service Finally, we compare the difference between international marketing and domestic marketing Marketing Principles – Assignment Maple Group – F05A References list Anon., 2007 Gatorade Defends Price Increase [Online] Available at: http://www.cspnet.com/news/beverages/articles/gatorade-defends-price-increase [Accessed 15 December 2012] Anon., 2012 System Office News - Virginia Community College System [Online] Available at: www.vccs.edu/Portals/0/ContentAreas/./WDSinMarch2012.pdf [Accessed 15 December 2012] Branddunk, 2009 Powerade uses ESPN to attack Gatorade [Online] Available at: http://branddunk.com/2009/03/23/powerade-uses-espn-to-attack-gatorade/ [Accessed December 2012] Cleary, A., 2011 PepsiCo [Online] Available at: perleybrook.umfk.maine.edu/slides/Spring2012/BUS411/PepsiCo.ppt [Accessed 14 December 2012] Ecorporateoffices, n.d The Gatorade Company Corporate Office & Headquarters [Online] Available at: http://ecorporateoffices.com/TheGatoradeCompany-1954 [Accessed 25 December 2012] Enriquez, A.R.C., 2010 Gatorade Marketing Plan [Online] Available at: http://pdfcast.org/download/gatorade-marketing-plan.pdf [Accessed October 2012] Gatorade, 2009 Gatorade Situation Analysis [Online] Available at: http://issuu.com/halfadhalfpr/docs/gatorade_situation_analysis [Accessed December 2012] Gatorade, n.d Contact us [Online] Available at: https://cu.pepsico.com/gatorade [Accessed 17 December 2012] George, J., 2008 Assessing the Consequences of a Channel Switch - Carlson School [Online] Available at: decreases Gatorade’s manufacturing cost by at least 14%, or (ii) the switch increases the share of profit it can obtain by at least 13%, or (iii) the switch enhances demand by the equivalent of a price cut of 4.96¢ for a 32-ounces package [Accessed 19 December 2012] Investopedia, 2012 Distribution Channel [Online] Available at: http://www.investopedia.com/terms/d/distribution-channel.asp#axzz2EBiSpPRh [Accessed December 2012] Tanner, J., 2011 Principles of Marketing [Online] Available at: http://www.webbooks.com/eLibrary/NC/B0/B64/014MB64.html [Accessed 14 December 2012] Tanner, J., n.d Principles of Marketing [Online] Available at: http://www.webbooks.com/eLibrary/NC/B0/B64/014MB64.html [Accessed 14 December 2012] Marketing Principles – Assignment Maple Group – F05A [...]... following marketing strategies to compete with competitors Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A 3.1d: Branding 3.1d1: Brand leadership To be a brand leader, Gatorade of PepsiCo should focus on two factors: Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A 3.1d2: Brand... Principles – Assignment 2 Maple Group – F05A 3.2d Physical distribution Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A 3.3 Explain how prices are set to reflect an organisation’s objectives and market conditions 3.3a Market conditions Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A... their marketing efforts are more effective Display: In supermarkets, numerous grocery stores, convenience stores and at major sports events, Gatorade is displayed in the stunning locations and easy to attract customers’ attention Marketing Principles – Assignment 2 Maple Group – F05A 3.2c Selection of distribution channel: Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment. .. of distribution” includes the right product, the right place, the right time, the right quantity and the right price: Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A 3.2b Distribution channel Five basic functions that Gatorade should be achieved for its distribution channels include:... University policy and procedures will apply Marketing principle: Gatorade in Vietnam Marketing Principles – Assignment 2 Maple Group – F05A Prepared for: Ms Doti Chee (Lecturer) Unit 4: Marketing Banking Academy, Hanoi BTEC HND in Business (Finance) Prepared by: MAPLE GROUP Number of words: Submission date: 7thJanuary, 20 13 Marketing Principles – Assignment 2 Maple Group – F05A Executive Summary This... operation Marketing Principles – Assignment 2 Maple Group – F05A Table of Contents Marketing Principles – Assignment 2 Maple Group – F05A Introduction Marketing is an important activity for all the firms, it has strongly influence on the firms As we know, all the success’s company has much effectiveness marketing activity and they invest much money, human, and times to research and develop it Thanks to marketing, ... market share of PepsiCo by the end of 20 12 (Tanner, n.d.) • Increase company’s revenues by 5% in 20 12 (Cleary, 20 11) • Spend $15 million on a healthier more eco-friendly beverage brand in an already established country (Cleary, 20 11) 3.3c: How prices are set to reflect PepsiCo’s objectives and market conditions 3.3c1: Pricing issue Marketing Principles – Assignment 2 Maple Group – F05A FAB plays an important... 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 the assignment Late assignments will not be accepted • Ensure that you give yourself enough time to complete the assignment by the due date Marketing Principles – Assignment 2 Maple.. .Marketing Principles – Assignment 2 Maple Group – F05A PRESENTATION 1 The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer/tutor name and student’s name Attach all the pages of assignment brief/cover sheet with your report and leave them blank for official use 2 Ensure that authenticity declaration... Packaging Plastic bottles • • • • More fashionable Easier to know components and other information related to the product Lighter Easier to clean and reuse • Marketing Principles – Assignment 2 Maple Group – F05A Marketing Principles – Assignment 2 Maple Group – F05A 3.1b: Unique selling proposition (USP) Gatorade Thirst quenching  Replaces vital fluids and electrolytes  Improved performance  PowerAde