marketing assgn edited (1)

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Contents

Overall business plan 3

Mission statement 3

Marketing goals and objectives 3

Marketing Audit 3

SWOT analysis 4

PESTEL Analysis 5

CSF 5

Positioning 6

Marketing strategy and tactics 6

Implementation and control measures 7

Marketing literature 8

Conclusion 11

References 12


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Overall Business Plan

The overall business plan for company would be to explore various innovative avenues

to sustain in the segment which is highly saturated and is also adversely affected by the

economic downturn. This can be achieved by differentiating its offering by

implementing a blue ocean strategy. The company will try to add various other products

such as books, electronics, CDs/DVDs through vending machines along with the

conventional ones such as food, drink, and cigarettes. On a long term basis the

company will try to explore the international possibilities and especially in the countries

which are currently in development mode and can potentially be economic superpowers

in near future. BRIC nations (Brazil, Russia, India and China) can be targeted one by one

starting with India due to the fact that this country has highest number of English

speaking persons compared to others.

Mission Statement

The mission statement of the company would be: To provide the domestic as well as

international customers with a vending facility which will be able to provide

conventional as well as contemporary and digital offerings in very convenient, clean

and comfortable vending machines.

Overall long-term and short-term corporate and marketing goals

and objectives

The short term corporate goal of the company would be to achieve a market share of

2% of the total UK market.


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The long term corporate goal would be to be amongst the top 5 vending solution

companies in the UK and worldwide by the means of innovative product offering and

selective globalization.

The short term marketing goal would be to develop a positive relationship with the

domestic customers and increase the sales at least upto 20 in a years time.

The long term marketing goal would be connecting and building a good relationship

with the market the new facet of marketing named relationship marketing.

Marketing Audit

Chiltern Vending is a Bedfordshire based private limited company part of the CV & Sons

Group operating the ChillVend brand of vending machines in the UK market. CV was

established as a family owned and operated business in 1966 by Martin Healey, an

engineer with experience in chilled food technologies. Martin built up the company

when vending machines were still a relatively new concept in the UK market. During the

70s and 80s, CV was able to find modest success in selling machines to factories,

schools, and office establishments based on concepts of novelty and convenience. The

company management has since passed through the hands of various family members

including Healeys son but has struggled with stability issues. The operational and

strategic responsibility of CV has now passed on to Martin Healeys grandsons Martin Jr.

and Sean Healey with Healy Sr. Still wielding considerable influence on decision making

at the board level.

Economy

In the factor of economy, the major risk for ChillVend is the chance of global and UK

economy going into financial meltdown. If the recession takes place and sustains for a

considerable period of time, the companys sales growth and the marketing and

promotional activities will be badly affected.


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An additional significant feature in economy is the developing markets which are

maturing in this vending segment. ChillVends growth will not only be affected by local

economy but also by the global economy as it is planning to expand its business the

developing markets. The sustained weakness of Euro as well as Asian financial

downturn can also hurt ChillVends plan of action and especially its plan for

international expansion.

Customers

The dominant user group for vending machines in the UK are the 16-34 age groups in

the C1C2 socio-demographic category while the AB category especially in the over 55

age range restricts itself to hot drinks. Demographic changes, population contraction in

the 15-24 age groups, health concerns, changing consumer preferences are all factors

that may affect market segments.

The focus of the industry currently is generally on food, drink, snacks, cigarettes etc.

With a shift of the targeted age group books, electronics, downloads, CDs/DVDs will be

sold.

The company has to target a huge segment of the latest generation which demands the

latest trends and styles. The company should also make an allowance for the varying

demographics of UK as well as other countries it intends to enter.

Competition

The UK vending market is increasingly fragmented with three major players Bunzl,

Selecta, and Sinclair Collis command around 18% of the total market. Many other

players share the rest of the spoils but no single operator holds more than 1.5% of the

total sales.


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With so many companies fighting for the pie, the market is very competitive. This leads

to a huge expenditure in marketing and promotions which uses a range of channels for

reaching the targeted group of consumers. Since the growth in domestic market is

sluggish in last few years and will continue to be so, although a future estimate of

turnaround is there, it will be important to enter new markets which are developing with

high growth rates.

The mode of entry into these markets would be based on a sprinkled approach. This will

be done so as to keep a room for the incorporation of feedback from how the market is

reacting our company and how we need to make changes so as to generate better

products and happier consumers. The forecasting of profits will be done by the financial

teams and we are hoping to achieve a market share of about 5% by the end of 4 years

into the markets.

SWOT Analysis

Strength: The strength of the company is its legacy and experience in the UK vending

market. The company has been in the business for a few decades and they know the

dynamics of the market as good as any other player in the segment. Due to a long

exposure to the market and the customers, it is also an added advantage for the

company that it is well known amongst the existing as well as potential customers. The

reputation of the company would be kept intact by the use of customer relationship

management programmes extensively and to deliver high quality products every single

time. The reputation of the company would automatically be driven through good sales

and incorporation of customer feedback.

Weakness: Though the company has the potential to take the business to the next

level, but due to its small size it will suffer from inadequate cash flow. Moreover, credit

crunch is affecting suppliers of vending units while the Automatic Vending Association

(AVA), the industry representative body cites rising energy costs, financing bottlenecks,


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and lack of business confidence for the gradual decline in the market. The company is

looking into these kinds of problems and would branch out to newer countries and

markets which eventually would hedge the company against such kind of risks.

Opportunity: The changing domestic consumption and growing foreign economic

powers act as the main opportunities for the company. Introduction of more innovative

features such as pre-paid cards, cashless machines, and also expand the range and

quality of offerings available through machines can also pose as opportunity for the

company. Branching out to other countries and developing markets might also be an

opportunity and the plan to branch out would be followed up after finding the way

things are shaping up here.

Threat: The external threat for the company is traditional culinary tastes, socio-cultural

taboos, the availability of plenty of freshly prepared food, and issues around health and

safety, legislation, crime, and guaranteed supply of good quality ingredients may

hamper plans for rapid market expansion in domestic as well as foreign countries.

Internal threat is presence of Healy Sr. and other family members in the boardroom who

are slow to acknowledge and respond to market challenges and yet attempt to bring in

more modern and radical management practices. The company would try to bring more

radical management personnel without losing ownership. This would be done through

proper training and development programs as well as through research and

development of the company.

PESTEL Analysis

Political Environment: Vending which is essentially an US culture can face some

problems in UK due to its symbolism of the American culture. The resistant British

mentality was disturbed by the American free flowing culture and hence the problems.

Furthermore, there are several factors politically like the health policies and their

effects would have to be properly grasped before plunging into the market. Such


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policies of the government might hamper the profit and bring the sales down in vending

companies.

Economic Factors: Recession can prove to be a good as well as problem factor for the

vending company as more and more people will frequent it for cheaper foods. This can

be a boon in disguise for the companies.

Social Factors: Changing consumer tastes and recent legislative moves towards

restricting the availability of HFSS foods (High in Fats, Sugars, and Salts) in places like

schools have had a significant impact on sales. Most purchases are of low cash value,

less than 2 usually with the maximum value being 5 in the case of some cigarette

categories.

Technological Factors: Various technological developments including the EPOS link

with suppliers and logistics planning software and reliance of cashless means of

payment and measures to reduce fraud (Haberberg & Rieple 2008, p.133). The

technology of integrated systems via enterprise resource planning would also be setup

to build an easy way of monitoring the income levels from the machines.

Environmental Factors: ChillVend faces some serious competition from various other

vending companies in UK. The company would setup quality checks and ensure that the

product from this company is nothing short but the best among others. This would help

ensure that the competition would not be able to take advantage and prove to be a

bane for the company.

Legal Factors: In UK, there are several legal factors that would have to be managed and

eliminated in a proper way. There are factors regarding the licensing procedures as well

as the fees which are to be paid to them. Such factors would also be looked upon while

entering into the markets.


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CSF

The critical success factors for the company would be innovation and globalization. With

a sprinkled approach, the company is going to roll on new models by integrating

feedback and fusing innovation into their approach.

Positioning

Positioning comes from the segmentation and targeting. Hence before giving the

positioning of the company, target market and segmentation will be given.

Target segment: The target segment of the company will consist of tech savvy

teenagers for digital contents, working professionals and college going students for

different convenient products and conventional vending items. People, who generally

are time bound, i.e. do not have much time in hand and are price sensitive will be

targeted by ChillVend.

Segmentation: People who fall under ChillVends segmentation are broadly everyone.

Their biggest chunk of revenue and thus the profitability will come from the brand

loyalists and the patronages. These people generally do not have enough time to travel

to some store and will make use of vending machines for some of the daily used

articles. Time constraint or inabilities to travel are the two most important reasons

amongst them. Hence it can be easily deduced that the teenagers and the college going

students who stay on their own or in hostel are those who frequent these machines.

Working professionals also visit these.

Positioning: ChillVend's positioning will be as the innovator in the vending industry.

They will be vending digital products and different small size IT peripherals. Apart from

these they will position themselves as a vending company which will start vending a

range of products for which quality will be good and price will be affordable. For making

the waiting time very less the systems will be made efficient and user friendly. The


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positioning of the company would also be as an innovative and a globalised company

which believes in producing world class quality products with an aim to generate happy

consumers.

Marketing strategies and tactics

For deciding on the marketing strategy, we first need to identify what will be new

offerings by the company. Apart from the current bucket of offerings like food items and

cigarettes etc the new products which are intended to be vend by the machines are

books, electronics, downloads, CDs/DVDs.

Few decades in this industry, ChillVend is not at all a new comer in the segment. But

still the other companies like Bunzl, Selecta, Sinclair Collis etc. are reigning the market.

They are better i terms of market share and thus have an edge over ChillVend. In spite

of all these facts, ChillVend has to battle hard to top the list in every possible ways.

The key objectives of the marketing campaign for ChillVend are as follows:

Awareness about the Vending Facilities: To create awareness about the extensive

range of products that can be bought from various vending machines as well as

the factor that it saves time and money and offers lots of convenience for the

customers.

Awareness about the new products which will be offered through Vending

Machines: To define and communicate the concept of a vending machine and

related company as well as clearly explain the value this brings to its consumers

and to establish ChillVend as a renowned vending company, It will also drive

home the message regarding the new products which will be offered first on

ChillVend. So definitely it will help the company to build a differentiation factor.


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Campaign within the Budget: To provide with best in the class products any

competitors can provide but very much within the budget. Budget is very

important because this will help defining the scope of the campaign.

Basic issue that advertising would address: Establishing an image of ChillVend as a

quality vending company that addresses individual customer needs through its unique

and never seen before product offerings.

Key Benefits those will be communicated are wide range of products to the buyers, new

additions to the product repertoire of the company and best in class quality of the

products.

Campaign theme and appeal would be as follows:

The campaign would focus on holistic product offerings and not just some particular

daily items. It will stress on the new additions to the product offerings like digital

products and different small size IT peripherals.

It would also have an emotional appeal that highlights happy and smiling faces that

depict satisfaction.

The media which will be used are Billboards and print media. These have been decided

keeping in mind their low cost as well as wide reach.

Implementation and control measures

The evaluation of PR campaign is generally done post campaign and it determines if the

campaign is accomplishing its predetermined objectives. The tests are generally field

tests.

PR program impact measurement tools those will be used are:


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Perception surveys: By asking a cross section of individuals important to the brand

about their perception of the organization and its services/products. We can benchmark

awareness among key audiences.

Opinion polls: Use of smart polling to determine subtle opinion and perception changes.

They can go beneath peoples superficial opinions to detect not just what theyre

feeling, but why.

Media content analysis: The media's opinion won't necessarily track the same as public

opinion. We will evaluate media and Internet coverage for content including message

pickup, reach and frequency and compare this information to our program objectives.

Evaluation for Advertising Campaign:

The focus will be on testing the components of the advertise by checking its intended

meaning, its desired effect on the consumers and its desired effect on brand image.

Most of the tests will be quantitative in nature and will measure certain metrics in Lab

testing format which will be done by both pre-test and post campaign.

Advertisement program impact measurement tools those will be used are:

Comprehension and reaction testing: A key concern is whether the ad conveys the

meaning intended. Another concern is the consumer's reaction to the ad.

Comprehension and reaction tests are designed to assess these responses. Personal

interviews, group interviews, and focus groups will be used for this purpose. This is a

pre test.

Inquiry tests: It is designed to measure advertising effectiveness on the basis of

inquiries generated from ads appearing in various print media. The inquiry will take the

form of the number of phone calls generated or direct physical inquiries.


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Recall tests: It is a field test. Traditional interviews with consumers help determine

recall and whether viewers remember the ads they see, as well as whether there is a

halo-effect among ads. Scores will be based on percentage of respondents who can

accurately recall the ad, idea communication, and likelihood of visit to the hospital.

A critical and evaluative review of appropriate marketing

literature

Different Phases in History of Marketing

According to Tedlow, Richard S. (1997) the history of marketing can be divided into

three different phases. The history of marketing will provide an understanding of the

business world today and is thus useful in the context of the U.K. Airline Industry and

Emirates airlines.

First Phase: Phase one is the phase of fragmentation due to the logistics reasons

and not for any marketing strategy. This phase which took place before 1880s is

known for its high margin and low volume. (The Rise and fall of mass marketing

By Richard S. Tedlow, 1997)

Second Phase: The second phase is known for the implementation of mass

marketing. This, unlike its previous phase, is famous for high volume and a low

margin. This phase came into existence because of two predominant reasons -

the upgradation to newer technologies like trains and the telegraph and several

other developments in the sector of technology especially related to

manufacturing. Phase two took place during 1880s to 1950s. Brand marketing

and management became important like never before during this period. (The

Rise and fall of mass marketing By Richard S. Tedlow, 1997)


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Third Phase: The third phase is the phase of segmentation. Innovations which

made this phase possible were initiated by advertising through radio and

television. Television advertising proved that certain classes of viewers are

impressed by distinct kind programs. This made the segmentation possible.

Marketers started concentrating on a defined group of potential customers who

were grouped according to their age, income, and education, which form the

factor named demographic factor or according to their way of leading life and

thinking, which form the factor named psychographics factor. Advertising through

the process of Image advertising started becoming very famous during this

timeframe. High volume and value pricing are two most important characteristics

which represent this particular phrase. (The Rise and fall of mass marketing By

Richard S. Tedlow, 1997)

Through these timeline the nature of marketing communication has changed

drastically. In the beginning only print media and billboards were used to communicate

with the existing and potential consumers. With advent of electronic media and very

recently internet the whole mode of marketing communication has evolved like never

before. We would now summarize different researchers and authors view on marketing

campaign.

Marketing Campaign

The widely accepted definition of marketing campaign amongst the researchers and

practitioners is a pre determined and planned series of activities which can be used for

making the prospective customers aware of a product or service which has been

launched or changed recently. The international body representing advertising

agencies, The Institute of Practitioners in Advertising (IPA), has defined a

Company

Information

Conviction

Changing behaviour

Customer

Needs

Wishes

Expectations

Means of

communication /

Message


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Figure 1A: A model of communication plan

marketing communication as a way of providing the correct potential customers with

the most persuasive possible selling message in a cost effective manner. On the other

hand, Kotler and Armstrong have given a different definition. They have said, marketing

communication can be of several natures like non-personal presentation and promotion

of ideas, goods and services with the media which have got mass reach such as

newspapers, magazines, television or radio. (Czinkota,2007)

American Professor Terence A. Shimp, defines the concept of communication in

marketing as "all elements included in the marketing mix of a mark, serving to facilitate

transactions by sharing ideas and consumer brand clients. The author stresses that not

only promotional variable allows the transmission of messages to consumers, but also

other components of the marketing mix. (Advertising Promotion and Other Aspects of

Integrated Marketing Communications By Terence A. Shimp, 2008)

The American expert, John J. Burnett, the role of communication in marketing is "to

support the marketing plan by sending the promise of marketing and also assist the

target audience to understand and trust one who announces specific advantages.

(Nonprofit marketing best practices By John J. Burnett, 2007)

The use of marketing campaign is twofold. It can be used for acquiring new prospects or

potential customers and for retaining and rewarding the loyal and existing customers.

Information, ideas,

opinions, attitudes


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(Zeithaml, 1981) The factors which are instrumental in driving the ever evolving

importance of a marketing campaign are following:

1. Increased media fragmentation. According to the reports published by

Cambridge, Mass-based Forrester Research, the number of TV channels per home

increased to 82 from six between 1960 and 2004. On the other hand the numbers of

radio stations have increased more than twice during this period. With the advent of

internet this fragmentation has become even more. This high amount of fragmentation

and clutter in the choice of media are causing severe problems for the companies when

they are trying to communicate to the customers. Consumer changes the channels and

switch through the advertisements these days more than ever before which has caused

the act of catching the attention tougher. (Marketing Strategy and Competitive

Positioning By Hooley et al, 2011)

2. Increasing availability of customer data. With different customer relationship

management activities in place the data pertaining to the customers are readily

available to the companies which has changed the communication activity

drastically(Smith et al, 2004).

3. Short-term thinking. The short term thinking trend has brought a shift from

strategies keeping long term interest in mind (e.g. brand advertising) to strategies more

focussed on short term boost of sales (e.g. direct mail and sales promotions).

4. A call for more accountability. Advent of different ways to measure effectiveness

of any kind of communication strategy has also changed the way communication is

done from companys part. (Principles of marketing By Philip Kotler and Gary

Armstrong, 2008)


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Elements of Marketing Campaign

According to Kotler, the main three elements which are instrumental for making a

marketing campaign successful are market, message, and timing. (Marketing

Management By Philip Kotler, 2008)

At the outset the communicator needs to identify the market for which he wants to

design his communication. This selected market should be potent enough or should

possess ample resources which will help the business to run. A business based on the

marketing expertise and the products made by the company are designed in such a

way so that it impresses the target market. Hence the target market should be

identified at the beginning so that the communication plan can be devised according to

it. (Marketing Strategy and Competitive Positioning By Hooley et al, 2011)

The second element is the message, which includes different value added propositions

for the customers. The message has to be designed in such a way so that it appeals to

the target market. Robert Collier described this process as fine tuning the thinking of

the company with that of the customer. The company has to understand the customer

and his mindset so that it can grasp the needs, problems, fears and desires of the

customer and how the companys offering can satiate the target base. (Marketing

Management By Philip Kotler, 2008)

The third element is the timing of the communication. The timing at which the offering

is made can play a very pivotal role. A very well made marketing communication plan

can be rendered ineffective if the timing is not correct. A market sometimes passes

through phases when it reacts well to some particular products or messages. (Principles

of marketing By Philip Kotler and Gary Armstrong, 2008)


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Marketing Communications Effect on Consumers

Michael L. Ray in his book Advertising and Communication Management has said that

generally the credibility of the source of the message the consumers receive are

measured on the basis of several factors by them. These factors usually are public

relationship and image in front of the mass, reputation in the market, previous years

performance by the company, the delivered quality of goods and services of the

company, the brand ambassador, initiatives taken for social welfare and the image of

the medium.

The understanding of the coded message and the mood in which the target audience is

receiving the message are also factors which greatly influence consumer behavioural

effect of marketing communication (Dowling et. Al 2007). The comprehension of the

message usually depends heavily on the nature of the message, the ease with which

the receivers are processing it, the need they feel to process it and the intrinsic traits of

the receivers like past experience and learning, attitude, personality, perception, etc.

The consumer mood has great effect on the understanding of the message the

company intends to send. This mood of the consumers can be altered with the help of

different techniques of advertising. (Ray, 2009)

Relationship Marketing and Its Importance

Due to the focus of marketers and practitioners on the aspect of connecting and

building a good relationship with the market the new facet of marketing named

relationship marketing has evolved. Morgan and Hunt (1994) have defined Relationship

marketing as the marketing activities which are meant for establishing, developing, and

maintaining successful relational exchanges. (Hunt, 1994)

As we have seen in the first phase of marketing the producer and the consumer were

thought to be two different and disjoint entities. But due to today's technological


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advancements producers can communicate directly to the large customer base he has

(Prasad et. al 2001).

The primary objective of the process of relationship marketing is to influence and

subsequently involve the customers and incorporate them to the organizations internal

stakeholders. This ultimately is a part of the marketing initiatives taken by the firm

(McKenna 1991; Shani and Chalasani 1991). Wilson (1995) categorized different

variables those affect the relationship of firm with internal and external stakeholders.

These variables are Commitment, Trust, Cooperation, Mutual Goals, Interdependence

and Power, Performance Satisfaction, Structural Bonds, Comparison Level of

Alternatives, Adaptation, Non-retrievable Investments, Shared Technology, and Social

Bonds. (Jayachandran, 2005)

Conclusion

The Success of a product into the market is basically decided by two things, first is

Designing the product according to the need of the customer and second being equally

important, to communicate the target customer segment of the company in a proper

way. Without proper communication between the company and its customers,

customers may not get the product not because of they dont like the product but not,

because they are not aware of that product. Liking or disliking for a product by a

customer though somehow depends upon understanding your customer and then

designing the product that can cater their needs but still you cant fully say about liking

or disliking about a product by customer, so this is not into the hands of a marketer but

the second part that is communicating the customer about the product is into hands of

the marketer and they can control the acceptance of a product by customer by using

the 360 degree communication approach with the customer segment. Efficient use of

the resources as well as the communication tool decides the success of a campaign.


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Also one very important factor in designing a campaign is first to have a clear idea

about your target customer segment so that you dont deviate your message to other

audience which is not your target customer segment hence wasting the resources on

fruitless things.


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References

1. Kotler, P. (2003), Marketing Management, 11th ed., Pearson Prentice-Hall, Upper

Saddle River, NJ.

2. Terence A. Shimp ,2005, Advertising Promotion and Other Aspects of Integrated

Marketing Communications, pp 78-103.

3. Shani and Chalasani, 2008, Special Events: Inside and Out

4. Michael L. Ray, 2009, Advertising and Communication Management

5. Graham J. Hooley,John A. Saunders, Nigel Piercy, 2011, 4th ed., Marketing

Strategy and Competitive Positioning.

6. Adrian Haberberg & Alison Rieple, 2008, Strategic Management: Theory And

Application, Oxford University Press, Page 130-137

7. Smith p r, Taylor Jonathan, 2004, 4th edition, marketing communications,

Gutenberg press ltd, Malta

8. Czinkota, M & Ronkainen, I 2007, International Marketing, 8th edn, Thomson, Mason.
http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Graham+J.+Hooley%22http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22John+A.+Saunders%22http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Nigel+Piercy%22http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22John+A.+Saunders%22http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Nigel+Piercy%22http://www.google.co.in/search?tbo=p&tbm=bks&q=inauthor:%22Graham+J.+Hooley%22


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9. Dowling, G & Uncles, M 1997, 'Do Customer Loyalty Programs Really Work?', Sloan

management review, vol. 38, pp. 71-82.

10.Prasad, V, Ramamurthy, K & Naidu, G 2001, 'The Influence of Internet-Marketing Integration

on Marketing Competencies and Export Performance', Journal of International Marketing,

pp. 82-110.

11.Zeithaml, VA 1981, 'How consumer evaluation processes differ between goods and

services', in Donnelly, J.H. and George, W.R. (Eds), Marketing of Services, American

Marketing Association, Chicago, IL, pp. 186-90.

12. Burnett, John J., 2008, Nonprofit marketing best practices , pp 23-29

13. Jayachandran, S, Sharma, S, Kaufman, P & Raman, P 2005, 'The Role of Relational

Information Processes and Technology Use in Customer Relationship Management', Journal

of Marketing, vol. 69, no. 4, pp. 177-92.

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