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Assignment on Marketing Planning
The purpose of this study is to understand the importance of marketing activities and having Strategic planning for a firm. For the purpose of clarity, we have dealt with the case of Pet Delight, which is a premium pet food products provider company. The company has been heavily dependent on the distribution management and has confused it to be the sole marketing activity. Assignment on marketing planning study informs us the importance of having an integrated marketing plan and that of conducting a thorough marketing analysis by the help of certain tools such Ansoff, Porter’s 5 force model, SWOT Analysis, BCG Matrix and Life Cycle Analysis. The study is an analysis and insight on these key concepts and has been very educative and informative.
Task 1: Compile marketing audits
A. Outlining the way professional perspectives in marketing planning have changed and developed since marketing first became popular
The professional perspective in marketing planning has seen a lot of development and changes ever since the popularization of marketing. The development of the marketing planning was in response to the business needs both internal and external. The decade 1950-1960, the economic environment was growth oriented which led to the development of marketing planning in response to the growing trend of entrepreneurship. As new businesses needed a marketing plan, this perspective became popular. The type of marketing planning in this decade was decentralized. The planning process included the reviewing of investments proposals, approval of annual budgets by the top management. 1970’smarked a change in the professional perspective of marketing planning as the cost of resources increased and the level of competition in the industry also showed a major hike, also there was an economic slowdown in this era, companies were suffering from financial crisis and new business needs started emerging. These new business needs needed a centralized control and all this led to revolution in the marketing planning perspectives of businesses this led to the emergence of strategic marketing planning which was centralized.
Strategic marketing planning ever since has become the effective way of plan implementation. All the big firms, in the recent era have senior executives that head the process of strategic planning. This new perspective of strategic planning aims at managing the assets of the company to have maximum financial returns and select business trends in accordance with the environmental changes. (Jain, Voola, & Wickham, 2012) In this, new era of marketing planning there are new trends .Marketer plan to have a broader presence via the social media, as the new business trend is to create an online presence.
Market trend: Businesses are focusing on creating a wide presence in the social media and marketing using the social media. In the present scenario, marketing linked to the activity of generating revenues for businesses. Pet delight enters into the Brazil’s Pet market. It provides variety of food products for the pets. Pet Delight’s entry has supported by the political stability and stable government policies. Meanwhile the thinking of the society get changed and the people become much more aware in regards to their pets needs to keep them healthy. From the raw and wet food made at home customers have switched towards the dried pet foods. It provide good opportunity in front of Pet delight. With the help of the latest technology they perform various activities like production, advanced R&D, marketing activities like online promotion, online selling, etc. New technology also helps in extrusion. Drying and cooling the food products. Brazilian market provides favourable condition to pet delight to enter into pet food industry of Brazil. Before entering into the market pet delight has to do market research to build effective marketing planning. Market research provides information about the market trend, level of competition, customer’s needs and wants, etc. Marketing planning is the effective tools which help in getting success on a short period of time. It is very essential to follow to avoid the loss in the beginning and provide an effective entry in the market.
C.Marketing audit of Pet Delight using models explained above
Analysis of Pet Delight using the models such as SWOT, BCG, Life Cycle, Porter’s 5 forces are done below;
- Political: The pet food market has become more regulated with the increased government and political concerns due to humanitarian outlook. The political stability and stable government policies in Brazil would support Pet Delight’s entry into these markets.Brazil is a higfh growth economy with expected GDP of 3.17 $ trillion in the year 2017.
- Economic: The economic environment of Brazil has a structure of high taxation and steep ratesof interests. In Brazil the high price of agricultural products have raised the price of pet food. The economic condition might pose challenges for Pet Delight.
- Social: The society regarding the pets have changed as people are now much aware of their pets specific needs and the emphasis to keep them healthy.Customers have switched to the dried pet foods from the raw and wet ones traditionaly made at home. This is a good signal for Pet Delight.In the Brazilain market there is spending on flea and tick products.
- Technological: Pet food industry is not untouched by the technology wave and has become very advanced. Integration of latest means of production and marketing such as advanced R&D and marketing activities such as online promotion, marketing through the web sites etc. has changed the scenario in Brazil. In order to survive the race of competition Pet Delight needs to upgrade it technologically. Pet Food industry in Brazil and all develop countries are using new technology to in extrusion, drying and cooling the food products. Processors these days are developed to implement effective killing of pathogens such as Salmonella in these food products. So the favourable conditions of the Brazilian market are indicative that Pet Delight should enter the pet food industry of Brazil.
Porters 5 Force Model Analysis:
- Threat of new entrants – With the rapid increasein pet culture Pet Delight always faces the threat of new firms entering the business .In the high growth and opportunistic Brazilian market this threat is also increasing.
- Bargaining power of supplier – The suppliers have the power to control price they receive as manufacturing operations epends on the supply of raw materials. The bargaining power of the suppliers depends on thewir numbers.But in the case of Pet Delight the bargaining power of suppliers are limited as Pet Delight are also the suppliers for their produces.
- Bargainig power of buyers – The number of buyers of Pet Delight and the importaqnce of each of the buyers have choice related power which controls the Pet Delight on isuues such as which customer segment to target.
- Threat of substitue products - There are many providers of dry pet food products in the Brazilian market as Pet Delight has not used marketing strategies to differentiate itself it has great threat of substitue that can capture the market by posititoning themselves better than Pet Delight by using marketing strategies in Brazil
- Rivalry among existing firms - There is a state of intense rivalry in the pet food business of USA and Brazil. The maret leaders being Royal Canin, Nestle Purina and Pedigree keep competitng amongst themselves for factors such as sales margin, price , market segments etc.
- Product Life cycle Analysis - The products of pet delight get obsolete in the market due to the availability of substitute product of well-established brands. Pet delight always provides various types of products in the market to maintain their market share. The life cycle of the pet delight product is not so much longer. From the phase of introduction it reach decline phase in a short span of period. Pet delight provide durable and qualitative product for the pets. In the beginning the product easily compete with the substitute products but as per the time period he reach the maturity level very soon because the other competitive brand introduced some attractive products for the pets. Hence, we can say that the life cycle of the Pet delight products is not so much high they get obsolete very soon from the market.
- BCG Matrix Analysis - Due to lack in marketing strategies Pet delight fail to attract the more customers which lead towards losing their market share in Brazil. The price of pet delight products are high because of new technology used for the R&D and production. They fall in the category of STARS which means there earnings are low and stable. They have to invest more for the purpose of the growth. Pet delight have lot of competitors in the market with variety of susitute product. In the absence of the proper marketing startegies Pet delight failes to attract the customers.
D. Current capabilities of Pet Delight for planning its future marketing activity
Based on the analysis of the different models above the capabilities of Pet Delight are evaluated below: As per the SWOT and PEST analysis pet delight get to know about their strength opportunities, threat and weaknesses with this they get to know about the market structure like political effect, economic conditions, social activities and thinking, necessity of technology. With the help of this analysis pet delight has to make plan to grow in the market. With the help of above analysis they can easily understand the nature and demand of the market. The demand of wet and frozen food product is high and the Pet delight is providing that product. It is an open opportunity in front of Pet delight to get the advantage of the needs. With the help of PLC analysis pet delight gets to know about the survival of product. BCG matrix provides the information about their position in the market. In short we can say that Pet delight is capable in making effective market planning to grow in the market. Pet delight can prepare effective planning in respect to future marketing activities. They have all the important information regarding the market nature, about their growth plan and all. The requirement is to make the effective use in making effective market planning for the growth prospective.
Task 3: Formulate a marketing plan for a product or service
A.Introduction to marketing plan and explaining the importance of marketing planning
Marketing Plan is the documented form of all marketing activities which an organization has to perform. Effective marketing plan include market analysis, market goals, marketing strategy, budget and plans and Analysis.
There are three levels of planning:
- Top level planning or strategic planning: Top level can plan the market strategies for the long term. The motive behind top level planning is to set the long term goals and objectives for the firm. They require market research for planning.
- Middle level planning or Tactical planning: Middle level or managers make plan to achieve the set organizational long term goals and objectives. To obtain or achieving the set goals and objective managers can set various short term goals. They get the set long term objectives from top level. Their job is to achieve the goals with the help of the employees.
- Operational level planning or Activity planning: Operational level makes plan to achieve the short term set goals. Operational level performs all the activities to get the set goals by middle level which helps in getting the long term goals of the organization.
- Stages of planning: Set organizational objective: Planning is the totally based on objectives. To achieve the set objectives organization has to prepare effective planning. First of all objectives can be fixed. With the help of available resources, external environment, etc. organization has to set the objectives.
- List of alternatives: To achieve the set objectives there are many alternatives are available. Organization has to prepare list of alternatives to achieve the objectives. Each alternative has their own merits and demerits.
- Choose the best alternative: From the list of alternatives organization has to select the best and suitable alternative to achieve the desired goals.
- Formulation of supporting plan: Supporting plans are those plans which provide support to the main plan.
- Put the plans into action: Supporting plan has to put into action to support the main plan to achieve the desired goals of the organization.
- Follow up: After putting the plans into action it is very important to monitor and control the activities. These monitoring and controlling activities lead towards achievement of objective.
B. New product development and the need to be innovative in the market.Review producty development techniques for Pet Delight.
Ansoff’s Matrix can be used as a technique to develop new products. T5he matrix has been discussed below;
- Ansoff’smatrix: This matrix is based on four growth strategies the growth strategies for Pet Delight have been discussed below;
- Market penetration: This strategy can be used by Pet Delight for developing the product it already has to enter and expand the existing market that is the pet food industry of USA. As there is still untapped potential for Pet Delight to expand in US markets. Pet Delight can increase promotion to do this.
- Product Development: Pet Delight can use this strategy to develop new products for the existing markets of USA, as the US pet food market is very innovative the new product might be accepted and achieve great sales and profitability. They can produce arrange of dry pet food products to suit the needs of different pets. Also it might introduce food for other pets such as cats, fishes, rabbits etc.
- Market extension: This strategy can be used by Pet Delight to take its existing Dry pet food to new markets in Brazil on the assumption that the slowdown in the US market leaves no expansion opportunity in USA.
- Diversification: This high risk strategy can be used by Pet Delight to develop new pet food products for the Brazilian markets.It can tap growth opportunities in the Brazilian markets by doing this. So Pet Delight can gain competitive advantage by developing some better food products that is not offered by the competitors in the Brazilian markets.It will also enable the company to form a reputation of being an innovative company.
- Techniques for new product developement for Pet Delight: Pet Delight can develop new products by adopting various process of new product development few of them applicable to the company R&D can be used to develkop new and advanced products.Pet Delight can survey the pet owners and conclude the new product development requirement based on the demands of the pet owners and their specific needs. (Greenhouse, 2011) Surveying field experts such as vetenerians and animal specialists by the delphi technique can also be used. (Armstrong, 2004)
C. Asessment of the current product mix/recommendations for pricing of the product /suggestions for distribution policy
- Assessing the current product mix of Pet Delight: Product mix contains the entire range of products that a firm offers. The existing product of Pet Delight is dry dog food and it deals in premium products purchased only by the rich sections of the society. As the economy is hit by recession so premium products is not an answer to capture market for Pet Delight. Pet Delight has a weak product line since it is only specific producer of dry food product whereas competitors are offering strong product line of the wet, raw and the dry variety. In addition, further classifying it based on specific needs. There is no depth in the product line of Pet Delight. Pet Delight needs to stretch its product line and include products of economical pricing to encourage medium and low-income groups to buy the products. Brazilian Pet Industry is expanding so to capture maximum market share in the Brazilian market Pet Delight needs ot have a product line that should have a length and width(Suttle, 2014).
- Pricing Recommendations: My recommendations are that Pet Delight needs to adapt better pricing strategy. As a marketing consultant would recommend that Pet Delight being a relatively new company that has yet not captured a brand name and major market share should assess their competitors and price their products relatively lower so that the customers facing the ill effects of the economic slowdown will prefer Pet Delight. Therefore, they require analysing the pricing of the product line of companies such as Royal Canin, Purina and Pedigree.
- Suggestions for a distribution policy: Pet Delight had a well developed distribution policy but the factors it seemed to lack was the proper record keeping and documentation of the processes in the distribution this is what led to the loss in the distributioin system with the death of the distribution manager. As no one in the firm except him knew what needs to be done. Pet Delight showed heavy dependence on distribution and no focus on marketing orientation and promotion . The firm now needs to follow a proper distribution policy with promotion to create a brand awareness. The distribution should be in retail outlets, pet sotres, veternary clinics, shopping malls and all high visibiltiy locations where people go to shop pet food products also online distribution should be helpful for Pet Delght. The distribution should always be coupled with good and efficient promotional measures.
Pricing theory of the outline promotinal plan:
- Pricing theory: It is an economic theory which helps in getting the benefit from that entity who creates demand by providing them optimum market price for the product demanded.
- Promotional Plan: The marketing tool, strategies, and resources that a organization intends to use to promote their product or service. For the promotional plan pricing theory plays an important role. For the promotion of product price plays an important role which can attract the acustomer and satisfy the customer witht the quality and quantity. Price is the factor which affects the choice of customers so it should be attractive. On the basis of price sometimes cosnumers can change their choices. Some customers wait for the promotion of new product because in promotion they get attractive prices. If a promotion is attractive and successful for the organization it will provide better planning ways. For pet delight it is necessary to provide better price to attract more customers with quality.
D. Factors effecting the effective implementation of marketing planning
For developing marketing plan for Pet Delight I have considered several factors that can hinder the effective implementation such as;
- Lack of skill and knowledge of marketing planning in Pet Delight and lack of the involvement of the top management
- The financial constraints can also act as a barrier for the development of new marketing plan
- There is strong hold of existing brands in the pet foods industry which might act against the implementation of an effective marketing plan
- Decline in market size due to global slowdown might also affect the planning process as the market size has shrink. The sudden decline in the size of the market due to economic or social conditions such as recession can affect the marketing planning of Pet Delight. Because these uncontrollable factors negatively affects the marketing planning. Pet Delight cannot invest heavily on planning marketing activities.
- Legal regulations in the pet food industry have become stricter this might also act as a barrier in the introduction of an effective marketing planning for Pet Delight (MASTERSON, Rosalind and pickton, david, 2014).
Barriers in implementing the plan: Investment requirement plays an important barrier. Other factors also act as barriers like availability of resources (raw material), skilled persons, communication gap between top level management and others, study the problem without any reaction, tried to get everyone’s agreement, lack of time, lack of support from top level, lack of support from suppliers and other facility providers. For Pet delight barriers in implementation are availability of raw material at reasonable price, invest problem, lack of skilled labour, setting reasonable price (when raw material available at high prices, use of high technology for production, competition with other brand), etc.
Task 4: Understanding the ethical issues in marketing
A. Explanation of the ways in which ethical issues influence marketing planning
Management Team, Pet Delight
Subject: Discussing ethical issues influencing marketing planning
Hope that with the introduction of marketing strategy and my marketing recommendations for Pet Delight, your company is tackling all its existing problems. I am writing to your team to discuss the advantage of having an ethical business. I have tried to explain the value of doing business ethically below;
The ethical issues influencing marketing planning:
- Compromising prices: Pet Delight’s product should not be unethically high priced making it beyond the reach of people with financial constraints. It should be priced in a manner maintaining marginal profits as well as being affordable for average income groups.
- Dealing with cheap quality: Pet Delight should not indulge in misleading and falsifying advertisement showing the product does miracles to the health and well-being of pets. Excessive exaggeration of the quality and benefits of the products in promotion should be avoided, as it is unethical to mislead your customers.
- Policies and frameworks: It is good for businesses to function in the ethical way and follow certain code of conduct that shows they want to positively affect the environment, society and the surroundings. Pet Delight being a responsible company before conducting a marketing planning needs to understand the implications of its activities to the society and the pet needs it caters. Pet Delight can take initiatives for the society and the pets and abandoned animals.
- Wrong deliveries: Pet Delight shouldn’t exploit the opportunities of dry pet food products in Brazil by selling low quality products but it should offer them good products at affordable prices to their customers in Brazil.
These were few ethical issue related to the marketing planning of the pet food products and we hope that PET DELIGHT is using ethical businessfor marketing its products.
B. Carrying out research to locate examples of the ways in which organsations offering pet food deal with ethical issues in marketing
Now to substantiate the importance of having an ethical orientation for Pet Delight I will state examples of some Pet Food business doing ethical practices.
- Quality of food products and Pedigree: A leading pet brand pedigree appreciates the initiatives to adopt pets that are homeless and without shelter. Company has spent 1.5$ million to support the cause. It has recalled its products on suspecting contamination with the lethal Salmonella strain from its plants at Everson (Hareyan, Salmonella Prompts Tops, Pedigree Pet, Dog Food Recall, 2013)
- Disciplinary actions and procedures: This company has been very conscious about the pet concerns they abstain from using any by products and derivatives, they have a policy of using only natural additives, and they distribute their products in local shops encouraging the local retailers and not in the supermarkets. Their products are not highly priced. (Natural Dog Food Company, 2014) So even pet delight should take inspirations from the ethical steps used by the sepet food companies where they have shown that they for the petsand they have fulfilled their ethical duties as a responsible organization.
C. Expalining the meaning of consumer ethics
Mr. ABC, CEO PET DELIGHT
Subject: The importance of consumer ethics for Pet Delight and the effect of consumer ethics in marketing
Dear Mr. ABC,
This letter is oriented to explain the meaning of consumer ethics and indicative of the importance of consumer ethics and how will affect the marketing strategy of Pet Delight. Ethics are not only codes of practices to be followed by the companies but even consumers are aware and do moral choosing of the products that they buy this makes the understanding and practice of ethics for Pet Delight very important. Consumer ethics is the acceptance of products that are not having any negative impact on the environment and the people involved in the process of preparation of the products. (Giesler & Veresiu, 2014) Consumer ethics in the scenario of pet industry has become very prominent with the humanisation of the pets. People strongly advocate against the purchase of products that use cruel animal testing and do not disclose what they have to offer in their ingredients clearly.
It includes the following traits.
- Quality of the product to make the delivery commitments.
- To make the successful and timely deliveries for bettre experience.
- To give the proper responses and feedbacks to take care of the customers.
- To make a proepr return and fair trade policy in the organization.
- To make a favorable health and social care and making the employee consideration to use their potential ability to achieve the business dimensions.
This discussion on ethics has an aim that Pet Delight involves ethical code of conduct in the process of marketing and production.
- The ingredients of the products: The pet owners are very conscious about what they feed their pets with so I would recommend that Pet Delight should feed the pets with all natural products that uses tested ingredients, which would not harm their pets. This would make the pet owners feel that Pet Delight cares.
- Cruelty free brands: Pet Delight should refrain from all animal testing and be supportive of PETA’s initiative to prevent the practices of invasive testing on animals. Hope my attempt of establishing of a clear understanding has been sucessful. Therefore,I recommend that pet delight require keeping in mind all the consumer ethical issues before making a product or marketing it.
Honor Cmerubim, marketing consultant
By the help of this study I have understood the importance of firms to have a marketing bent of mind.The firm requires to conduct its portfolio analysis and calculate what does it lacks to gain competitive advantage.The process of marketing planning and strategic management is very crucial for the growth of a firm.A firm that neglects and fails to understand the importance of marketing can never be sucessful.
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