final bentley fresh brew tea e team 9 -

Outline

Introduction

Marketing & Promotional Mix

Promotion Budget Allocation

Advertising

Sales Promotion

Personal Selling

Decision Summary

Introduction – (Main Char)

• Demographic Characteristics: – Gender: Female

– Age: 25 & above

– Household size: 3 or more persons

– Occupation: Skilled and Unskilled labor (Blue Collar)

• Geographic Char: – St. John’s metropolitan area

• Benefits Sought: – Strong high quality

– Bagged tea in “Boxed tea”

Introduction - (Previous Decisions)

• Team 1, Planning:

– Entering the market with a new brand named “Bentley Fresh Brew Tea”

• Team 2, Product Strategy:

– Blend: lower than the market brands

– Amount of tea: 1 Cup Bag

– Package size: Medium 60-72 bags

• Team 3, Pricing Strategy:

– Price: 2.49

Marketing Mix

1. Product

2. Price

Variables that marketing managers can control in order to best satisfy customers in the target market

3. Promotion

4. Place

Marketing Mix

Promotional Mix

“Promotion is all about companies communicating with customers”

“It is no longer enough for a business to have great products”

1. Advertising *

2. Personal Selling *

3. Sales Promotion *

4. Public Relation

5. Direct Marketing

6. Publicity

The Objectives

• Firm Objective:

– Increase Market share By 5% within two years

• Advertising Objective:

– Establish a 70% product awareness among Blue Collar Females by end of the first year

Budget Allocation Methods

1. Percentage of Sales

2. Fixed amount per unit sold

3. Meeting Competition Method

4. Task Objective Method


1. Percentage of Sales

Example: Two percent of the sales are allocated for advertising

Advantage: - Simplicity

- Controllable Budget

Limitation: - Less sales less advertising!

- Starting Company can not use it

- Depends heavily on past experience


2. Fixed amount per unit sold

Example:

Ten cents' worth of advertising per teabag box

Advantage:

- Simplicity

- Controllable Budget

Limitation:

- Less sales less advertising!


- Depends heavily on past experience


3. Meeting Competition Method

Example: We shall spend 2% over the average market advertising expenditure

Advantage:

- Company will level its advertising with the high

standard competitors

Limitation:

- Less sales less advertising!



4. Task Objective Method

Example: Establish a 70% product awareness among Blue Collar female workers by end of the first year

Advantage:

- Budget support strategic Objective

- Achievement is measurable

- Good for all Companies at any time

Limitation:

- Un-achievable objective

- No specific Budget

Advertising vs Promotion

Advertising Promotion About: A type of marketing tool A type of marketing tool

Definition:

Advertising is a one-way communication whose purpose is to

inform potential customers about products and services

A Promotion usually involves an immediate incentive for a buyer

Purpose: Increase sales, brand building. Increase sales.

Time: Long term Short term

Price: Expensive in most cases Not very expensive in most cases.

Sales: Assumption that it will lead to

sales Directly related to sales.

Example: Giving an advertisement in the

newspaper about the major product

Giving free products, coupons etc.

Is a paid form of non-personal communication about an organization, its

products, or its activities that is transmitted through a mass medium (TV/

Newspaper/…etc) to a target audience

Advertising

Large numbers of people

Remind them about

the firm's offerings

Make them aware Persuade

Radio

TV

Magazines

St. John's Newspaper

30 sec:

$20 to $40

30 sec:

$200 to $300

(7 PM to 11 PM)

Evening: $750

Morning: $500

Complete coverage:

$200 to $400 each

The Newfoundland

Herald

One page: $ 300

Cover: $600

Most effective and largest

penetration methods.

Major Types of Advertising objectives

Corporate/ product

line image building

Awareness Reminder to use

the product

Changing attitudes about

the use of the product form Changing

Changing Beliefs

about brand similarities

Attitude

Reinforcement

Establish 70% brand Awareness to blue collars females 25 years &

above with household of 3 or more persons

Our advertising message is

“The real taste for fresh Tea”

Advertising Recommendation…

Winter & Spring Campaign:

1. Radio

2. Billboards

All year awareness :

1. Magazine

2. Newspapers

3. Billboards

Spring & Winter

Campaign

1. Radio

Advantages:

Low Cost compared to TV - Mass use -

Audience selectivity

Disadvantages:

Audio only - less attention- Short life

Best Time: AM 7-10 & PM 4-7

Cost Radio: 30sec $30 = 6 times X $30 X

60 days = $10,800

Cost TV: 30sec $250 = 6 times X $250 X

60 days = $ 90,000

Advantages:

Flexible - Repeat exposure -

inexpensive

Disadvantages:

Many distractions for viewer - Non-

selectivity of audience

Locations:

St. John's in metro areas: Near

Dominion & Sobey's Hypermarkets

-Bus stations

Winter Campaign “Billboard”

Spring

Campaign

“Billboard ”

All year awareness

1. Magazine

Advantages:

long readership / +++TV guide & entertainment schedule.

Disadvantages:

No guarantee of position

Cost:

One page $ 300 X 12 = $3600

The Newfoundland

Herald

TV

Guide

inside

Entertainment

schedule inside

All year awareness

2. Newspapers

Advantages:

Flexible and timely-

Intense coverage- High

believability of printed

word

Disadvantages:

Short life - Read hastily

Cost:

One page ad is $500

$500X5X12= $30,000

St. John's morning newspaper

All year awareness

3. Billboard

Locations: St. John's in metro areas: Near Dominion & Sobey's Hypermarkets & Bus stations

Personal Selling

It’s the method of using sales force

to support a push strategy or a pull

strategy A Push Strategy

The use of a company's sales force

and trade promotion activities to create consumer demand for a

product,

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Personal Selling

A Pull Strategy Requires heavy spending on advertising and consumer promotion

to build up consumer demand for a product

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Personal Selling

30

Face-to-face sales

meeting

Customization of the

sales message to make

it clear to the buyer

Immediate response

Greater persuasive

impact

Important source of

marketing information

X High cost

X Salespersons focus

more on their personal

gains rather than

satisfying the customer

needs X Time ineffectual

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Sales Promotion

Definition:

Incentives that create an immediate short-term response, thus they

usually receive the top management support.

Reasons for using sales promotion:

Increase awareness

Positive word of mouth

Increase accountability

Complement advertising activities

Growing power of retailers

Sales Promotion

Sales promotion

Consumer-Oriented Promotions

Trade-Oriented Promotions

Consumer-oriented sales promotion tools:

Sampling: customers are offered regular trial sizes of the product either free or at a nominal price.

Coupons: Probably the most familiar and widely used of all consumer promotions,

now often available at point of purchase.

Premiums: A reward or gift can come from purchasing a product.

Sweepstakes and Contests: prizes are available either through chance selection or games of skill.

Rebates and refund: customers are given reimbursements for purchasing the product either on the spot or

through the mail.

Bonus packs: Additional amounts of the product are given to buyers when they purchase the product.

Price-off deals: Customers are offered discounts from the product’s regular price.

Loyalty programs

Event Marketing

Sales Promotion

Advantages of couponing Disadvantages of couponing

1. Make it possible to offer a price reduction for price-sensitive consumers

2. Reduce the retail price of a product without relaying on retailers

3. Coupons encourage repurchase after initial trial

4. Reduces customer’s perceived associated with trial of a new brand

5. Useful promotional devices for established products

1. Difficult to estimate how many consumers will use a coupon and when

2. Response to a coupon is rarely immediate

3. Many marketers attempt to expedite redemption by shortening the time period before expiration

4. It’s difficult to measure how many new customers and existing ones have used the coupons

5. Rather than attracting new customers, coupons can end up reducing the company’s profit margin

6. Costly

Sales Promotion

Sales Promotion

Will it be necessary for Mr. Evan use sales promotion tools for the successful introduction

of Bentley fresh? why or why not? If yes, which tool would you recommend and why?

Sales promotion recommendation : Use of Sampling tool at minimum cost

Our Recommendations….

• Budget

• Advertising

• Promotion

• Personal Selling

• Task Objective Method

• Winter & Spring Campaign

• All year awareness

• Provide Free Sampling

• In the future

Thank You ….Any Questions !!!

final bentley fresh brew tea e team 9 -

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