How to Develop a Marketing Plan
The marketing plan is a document, a crucial part of the crew’s strategic amplification plan, in which market goals are set and methods for their achievement are indicated.
The strategic marketing plan, developed for 3 to 5 years, contains long-term goals and defining strategies with an indication of the resources needed to implement them. It is clarified and revised annually, on its basis an annual plan is drawn up. It describes the current situation, the objectives of the activity in the market, strategies for the current year. It includes a program of activities, resource, including financial support.
Content of the Marketing Plan
The marketing plan has a fairly clear and logically structured structure. Its amplification is a sprout of more than one day. It takes a lot of time to collect detailed information about consumers, to study the features of the market conditions, to determine the competitive advantages of the goods and much more. This means that you need to sprout and summarize many different facts, consider not one alternative to business amplification. On average, the preparation of a quality marketing plan can take (depending on the size of the business and the number of product groups in the crew’s portfolio) from 1-3 months. And if marketing planning deals with solving current issues simultaneously, then this sprout will take at least 2-4 months. 50% of this time will be required for information gathering, 40% for analysis and consideration of alternatives, and only 10% for compiling the one-page marketing plan itself.
Why Any Crew Needs It
The crew’s marketing plan is the key to planning activities, along with the business plan, budget, production, and sales. The annual plan of the enterprise, accordingly, establishes the general objectives of the enterprise; however, for work in a competitive environment, the efforts in the market are the main function of the enterprise. In this regard, the marketing plan dominates in importance over other sections of the general plan, because:
- the target indicators of the proposal have a direct impact on the indicators of other sections of the annual plan;
- decisions recorded in the simple marketing plan determine what exactly the enterprise will produce, at what price, where to sell, and how to advertise.
It serves as a key guide for the work of staff engaged in selling activities of the firm. It is similar to the traveler’s roster, which is both a map and a compass. It fixes the current position (location) of the enterprise, the traffic vectors, the target points, and, most crucially, a summary of the actions that the firm should take to get to the targeted points. To find out why you need this document, you need to consider the poses that arise in the enterprise in its absence, as well as the results that the crew receives after its amplification.
If it is not developed, it can have several consequences.
- The crew develops spontaneously, from luck to failure;
- Possible schemes, existing amplification options are constantly in conflict. As a cause, the dispersion of forces, means, the loss of time takes place;
- The target audience is not defined, the discrepancies in its estimates from time to time lead to the poses described in the paragraph above;
- The enterprise randomly purchases products, tries to diversify the product offered at a time when concentration on the main product offer is required.
Thus, the objectives of this document are:
- systematization, a formal description of the ideas of the crew’s managers, reporting them to employees;
- setting goals, ensuring control over their achievement;
- concentration and reasonable distribution of the firm’s resources.
The Sprout of Developing a Plan
It is reasonable to propose the following sequential sprout. As a result, the marketing plan of the firm is formulated. The sprout consists of six mandatory steps:
- Define the mission of the enterprise;
- SWOT analysis;
- Defining the goals and strategy of the organization as a whole;
- Determination of tasks and a program of actions for their implementation;
- Drawing up a proposal and monitoring its implementation;
- Drafting budget.
Let’s consider these steps in detail
- At the stage of mission description, the appointment of all subsequent efforts of the crew is determined.
- The SWOT analysis provides a clear comprehension of where the crew is and what it looks like.
- The third section is the basis for developing a specific program of selling activities. This stage includes forecasting the amplification of target markets (segments), the dynamics of macro-and microeconomic sprouts, as well as the resource capabilities of the enterprise. On the basis of all of the above, the main objectives of the activity are formulated, structured as a goal tree. The global corporate goal is located at its top.
- At the fourth stage, the tasks of the selling department are determined within the framework of the general plan of the enterprise, and an action program is developed to address these tasks. At this stage, the strategic directions of the firm’s activities are specified by planning tactical measures. For each target market segment, the corresponding goods (services) of the required quality and quantity, their prices, sales locations, and tactics of their promotion to the consumer should be planned.
- The fifth stage allows us to get the document itself, with the definition of the values of the parameters, which will subsequently monitor the implementation of the described actions.
- The budget is a section that reflects the planned amounts of revenues, costs, and profits. The amount of income is justified by the forecasted sales volume in value terms. Costs are defined as the sum of all types of expenses. The approved budget is the basis for ensuring the production of goods and advertising activities.
Structurally, the plan consists of the following sections of the document:
- main results of activities for the previous period;
- analysis and forecast of the amplification of the economy and the target market;
- nominated goals mainly in quantitative terms, with emphasis on the main objective;
- strategies of the crew’s behavior on market segments;
- actions of commodity, price, and communication policies with an indication of responsible executors and terms of implementation;
In literature, there is a description of the sprout of developing this document consisting of more items. However, the number of items is not crucial, it is crucial to comprehend that it is the described set of sequential works that allows you to get a relevant document. The specification of this set of works can really be written down in a large number of items that can be formulated in other words.
Many entrepreneurs make the mistake of equating marketing research with the usual collection of information and analysis. The difference is that the main task of the research is to find methods to solve the problem that has arisen or to draw up an accurate amplification plan. The exact algorithm of the marketing research process may differ, depending on the scale of the company, its needs or the chosen niche.
It is possible to underline the following purpose market research.
- Searching and gathering the necessary data to assess the essence of the problem and the methods for solving it.
- Description and definition of the problem, objects of research and so on.
- Revealing the causes of difficulties.
- Selection of preliminary solutions and evaluation of their effectiveness by testing.
- The forecast of the company’s growth, due to the application of selected ways of solving the problem or ways of amplification.
Does the Company Need a Research Department?
Taking into account the fact that competition in modern business is growing at a huge speed, it seems logical that every company should have its own successful marketing department. In fact, the situation does not meet expectations. One of the British financial institutions conducted a survey of 265 entrepreneurs on the fact of having such a department in their companies. The result showed that only 40% of firms fully use this opportunity to improve their business. It is worth noting that some companies may not have a department, nevertheless, regularly conduct marketing research, trusting the task to others, or even third-party employees.
Any company can do without such a department in the event that the team already has a number of specialists ready to perform a qualitative stage-by-stage analysis, gather information about the market, and provide a full-fledged action plan. And as a rule, any marketer is able to conduct this study after reading some marketing research articles. The difference is that a separate team of market research completely directs the forces to the necessary actions. Usually, own departments are formed in large enterprises, where improvement is an integral part of the business.
Basic Steps of Research
Basic marketing research methods are gathering and analyzing data. Here are main steps of this study.
- Rialto analysis. This includes the calculation of the scale and needs of the real to in the chosen direction, as well as the exact definition of the portrait of the target client. At the analysis it is necessary to consider each detail, from the prospective age of the target audience, ending with income. If a business is associated with physical goods or is attached to a location, be sure to consider the geographic location of customers. The work of the main competitors is studied separately. Calculate their advantages and disadvantages. Also, the rial to analysis may include a forecast for the amplification of the entire niche in the future. This allows you to define long-term goals for your company.
- Analysis of sales. Divide the territory into which you work in separate regions and write down the percentage of the sales for each district. Make a schedule for visiting customers by company representatives for all regions. Find methods to increase the number of goods sold for the selected territory.
- Product analysis. Determine the advantages and disadvantages of your products and compare them with the performance of competitors. Find ways to improve your offers. At the same time, an idea is formed about the amplification of further products.
- Analysis of advertising. Determine how effective your ads are at the moment. Each type of advertising should be evaluated separately. Find and mark the best types of advertising that bring maximum profit with minimal investment.
- The final step of decision making. Here you can clarify whether you conducted the entire procedure correctly.
Introduction to Marketing Research As to its definition, Marketing Research is the process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business’s target market, the industry as a whole, and the particular competitors you face. It serves marketing management by providing information which is relevant to decision making.
The manager or other individual initiating the research must provide guidance to the researcher in the form of a research brief. This document should state the purpose of the research, its objectives, the time by which it must be completed, the budget to which the researcher must work in developing the research design and the timing and frequency of any interim reports which the researcher is expected to make. The Marketing research Process. Marketing research is gathered using a systematic approach. An example of one follows: 1. Define the problem. Never conduct research for things that you would ‘like’ to know.
Make sure that you really ‘need’ to know something. The problem then becomes the focus of the research. The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences. For example, why are sales falling in New Zealand? 2. How will you collect the data that you will analyze to solve your problem?
Do we conduct a telephone survey, or do we arrange a focus group? Marketing research can classified in one of three categories:
- Exploratory research
- Descriptive research
- Causal research
These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories.
- Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility.
- Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and cross-sectional studies. Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required. Cross-sectional studies sample the population to make measurements at a specific point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long-term forecasting of product demand.
- Causal research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments.
Telephone books exclude those households that do not have telephones and those households with unlisted numbers. Since a certain percentage of the numbers listed in a phone book are out of service, there are many people who have just moved who are not sampled. Such sampling biases can be overcome by using random digit dialing. Mall intercepts represent another sampling frame, though there are many people who do not shop at malls and those who shop more often will be over-represented unless their answers are weighted in inverse proportion to their frequency of mall shopping.
In designing the research study, one should consider the potential errors. Two sources of errors are random sampling error and non-sampling error. Sampling errors are those due to the fact that there is a non-zero confidence interval of the results because of the sample size being less than the population being studied. Non-sampling errors are those caused by faulty coding, untruthful responses, respondent fatigue, etc. There is a tradeoff between sample size and cost. The larger the sample size, the smaller the sampling error but the higher the cost.
After a certain point the smaller sampling error cannot be justified by the additional cost. While a larger sample size may reduce sampling error, it actually may increase the total error. There are two reasons for this effect. First, a larger sample size may reduce the ability to follow up on non-responses. Second, even if there is a sufficient number of interviewers for follow-ups, a larger number of interviewers may result in a less uniform interview process.
One of the biggest Hong Kong based organisations “Hopewell Holdings Limited” is an infrastructure and property company was founded by Sir Gordon Wu Ying Sheun. Hopewell was listed on the Hong Kong Exchange Market since 1972. It has involved with diverse investments in infrastructure projects, property developments, construction management, hospitality and catering management. It has property capital of more than 3 million square feet in Hong Kong, mostly are invested in commercial and residual purposes.
Panda Hotel is one of the subsidiary businesses of Hopewell Holdings Limited, which located in one of the busiest district of Hong Kong, Tsuen Wan where was the first satellite town developed by the Hong Kong Government in the 1950’s as they have foreseen and discovered its potential. It is a facilitated hotel with 30 floors, providing more than 1000 guestrooms with different themes in different levels. Fully equipped facilitations are also including swimming pool, gym, conference rooms, 4 restaurants, sport bar, venues, ballroom and an executive business centre. It is ideal to take geographical advantage that to be located at the centre of Tsuen Wan, less than 30 minutes away from Hong Kong International Airport and Asia Expo, public transports like MTR and West Railway are only few minute walks from Panda Hotel, shuttle buses toward Kowloon are also provided for the clients.
More than 5 shopping malls and thousands of stores can be reached in a very short time.
Potential to capture most corporate business in Tsuen Wan, Kwai Tsing, Lai Chi Kok, Cheung Sha Wan and Lantau Island by sales blitz activity Newly renovated rooms and our upgraded facilities catering for high-yield corporate business Covered walkways directly from hotel lobby to nearby MTR stations 18-25 minutes drive to Hong Kong Disneyland, Hong Kong International Airport and Asia World Expo through Tsing Yi North Coastal Road Easily accessible to Central Business District and the Hong Kong Exhibition and Convention Centre through the Western Harbour Tunnel Free hotel shuttles bus service to and from Tsimshatsui via Mongkok, China Hong Kong City and Hunghom MTR.
Relatively small room size compared with our major competitors as L’Hotel Nina, Royal View, Regal Riverside, Harbor Plaza 8 degree and L’hotel Island south. No spectacular views
External outlook is not contemporary
Old ordinary shabby furniture
Located in a busy area with noisy and air polluted environment
Keep a good contact with the potential exhibitions and events organizers to develop more trade fair business The construction works for Guangzhou – Shenzhen – Hong Kong Express Rail Link is undergoing To organize presentations and offer special rate to high-production travel agents to build awareness and develop on-going business relationships Individual Visitor Scheme open door to citizens in Mainland China travel to Hong Kong without joining the tour group Improve overseas exposure by attending overseas major trade fairs Open sky policy and routes to provides convenience for airlines crew , stopover, layover and transit passengers
More competitive hotels opened or will be opened in Tsuen Wan area: L’Hotel/ Nina/Silka Far East Hotel/Royal view Hotel/Cosmopolitan Hotel (2012 4th quarter) The continuing impact of the financial crisis
More regional head-quarters and offices moved from Hong Kong to Mainland China and other Asian countries Intensive of competition due to the increased hotel room supply Tsunami disaster in Japan discouraged / leisure travelers to cut down their desire of overseas traveling.
From 2006, there are three new hotels established in Tsuen Wan, namely the L’hotel Nina et Convention Centre, Silka Far East Hotel and Royal View Hotel. Panda Hotel used to be the only hotel in the area, and now facing tough and keen competitions among these hotels. However, it also drives and attracts more investors, tourists and business travelers to Tsuen Wan, generating more business opportunities and creating more jobs. Now Panda Hotel needs to define the customers’ satisfaction in this competitive industry, we decided to use questionnaire to collect clients’ feebacks and evaluate the outcomes for improvement. Through the questionnaire we are expecting to receive customers’ opinions on quality of our guest rooms, staff services, and hotel environments among competitors which are the hotels in Tsuen Wan.
Thank you for staying at our hotel. Fill in this questionnaire and let us know more about your stay. Please return this survey to the customer service desk and as a return we provide souvenir as a small gift.
In order to obtain a more accurate data, we plan to collect around 300 questionnaires for the clients including for whom visited our hotel for leisure, business or exhibit purposes. We are looking forward to identify what are the clients’ expectations, opinions and feedbacks of our hotel among all competitors and retain strong market share in the industry. As we are trying to employ this marketing research efficiently, we will provide questionnaires to the clients when they are in the check in process at the front desk. We will request clients to fill in the questionnaires in a polite manner before their stays are over and we will also give out small gifts as souvenirs. It is not compulsory to hire extra labor for this study as we will be handing out the questionnaires to the customers when they are checking in at hotel front desk. Our expected study period will be 6 weeks, from 1st of September to 15th of October, 2013. Engender would be: Creating the questionnaire with appropriate questions
- Approval of the questionnaire
- Print out copies of the questionnaire
- Applying the questionnaire to study
- Collecting all the data
- Analysis and evaluate
In conclusion, as the travel business growth rapidly in Hong Kong, the hotel industry must stay competitive among all hotels to retain the market share. Panda Hotel now needs to indentify the customers’ expectations in order to improve our products (rooms) and staff services to satisfy their needs. Through the questionnaire study, we can obtain all the information on client’ opinions and the impression of Panda Hotel.
Passionate about gourmet food and cooking, Kathy Kudler founded Kudler Fine Foods in 1998. Since then, Kathy’s store has successfully expanded into three locations in Del Mar, La Jolla, and Encinitas. Kudler Fine foods offer gourmet quality imported and domestic food products including bakery items, meat and sea food, produce, cheese and diary, and wine.
The Kudler Fine Food operation is experiencing great success and opportunities for further growth are abound. Kathy is currently focusing on expanding her organization, and is seeking a suitable spot for her next shop. The Kudler Fine Foods mission statement is to “provide their customers with the finest selected foodstuff, wines, and related needs in an unparalleled consumer environment (University of Phoenix, 2008).” Marketing research will aid Kathy in developing marketing tactics that will help grow her organization.
Importance of Marketing Research
Entrepreneurs like Kathy “need information in order to produce products and services that create value in the mind of the customer (Internet Center for Management and Business Administration, 2010).” Marketing research links the marketer, the competition, and the consumer by means of gathering information. Previous to expansion, it is important that Kudler Fine Foods performs marketing research in order to acquire information regarding the competition and target market characteristics. When performed successfully, marketing research will minimize risk potential.
The formal process of marketing research is conducted in five steps.
The steps are: define the problem, analyze the situation, acquire problem specific data, interpret the data, and solve the problem. Kudler Fine Foods may appear to have no specific “problem” per se, but the five steps can be applied in a general sense. The company does wish to expand into new markets and seize a potential opportunity, thus marketing research can be used to Kudler’s advantage.
Application of the “Five Steps”
Kudler Fine Food’s main marketing concern is their upcoming expansion. Kathy’s fourth store will be opening in another area of the state, and so the consumer base that supports her other stores may not be present. Thus, step one and the definition of Kudler’s problem is that the company must research and define the potential market that will support the new store. Failure in doing so may result in an unprofitable store.
Step two of the marketing research process is analyzing the situation. “A situation analysis is an informal study of what information is already available in the problem area. (William D. Perreault, 2009).” Situation analysis often begins with quick research such as an internet search or informal conversation. Kudler Fine Foods can perform quick and informal research regarding an acceptable location for a new branch. This may include researching existing businesses and their clientele on the internet, or informal interactions with individuals who may have market insight into Kudler’s expansion. Useful secondary data may be available citing the success or failure of market competitors in the target area(s).
During stage three, Kudler Fine Foods would attempt to acquire problem specific data regarding their expansion. During data collection, the researcher attempts to learn what customers think or how they will behave regarding a specific topic. In relation to Kudler Fine Foods, acquiring primary data from marketing research might include a survey of potential customers within potential expansion zones. After all, it would be unwise for Kathy to expand her business into an area where consumer demand would be lacking. Qualitative research utilizing surveys would provide a snapshot of potential customer perception of a gourmet food shop within their community. The survey would ask specific questions which gauge customer feelings toward a local gourmet food store and related products. Surveys can be administered via mail, email, or phone, and would capture data within a sample population.
An important step regarding Kudler Fine Food’s expansion, step four involves interpreting the data gathered during the data acquisition phase. During this stage, Kathy and her marketing team can use statistical analysis to draw meaning from the population sample. The data analyzed during this stage will express the customer perception of a gourmet food store and its products within a targeted area, and will help to determine the viability of opening another shop within a specific area.
Step five in the marketing research process is simply referred to as solving the problem. “In the problem solution step, managers use the research results to make marketing decisions. Some researchers, and some managers, are fascinated by the interesting tidbits of information that come from the research process. They are excited if the research reveals something they didn’t know before. But if research doesn’t have action implications, it has little value and suggests poor planning by the researcher and the manager (William D. Perreault, 2009).” It is during this stage where Kathy Kudler and her company will make the final decision of where and whether to expand into a new store based on their marketing research.
Importance of Competitive Intelligence and Analysis
Competitive intelligence is the gathering and analysis of public information about competitors within a marketplace. As opposed to industrial espionage which is not only unethical but also illegal, competitive intelligence is common practice, ethical, and legal. Competitive intelligence is important in today’s business world because it allows firms to anticipate the actions of their competitors, and provides a clear picture of potential opportunities and threats. Competitive intelligence is crucial when planning marketing strategies and tactics.
Kudler Fine Foods must consider the fact that other companies are entering the market of gourmet food shops. Using competitive intelligence, Kudler can keep a watch on competitor trends, so that they may stay ahead of the game in both service and products. Kudler already has the advantages of an established store and a popular brand name, but Kathy and her marketing team must keep their momentum and always remain vigil in regards to the actions of competitors.
Kudler has a taste of success, and plans to further their growth within the gourmet food market by opening up a fourth retail location. Through meticulous planning and market research, Kudler can ensure success by targeting the most sensible area to set up another location. Competitive intelligence and a well respected company name will aid them in remaining profitable in the face of fierce competition.
International Marketing and Marketing Research Compare the advertising campaigns (message, media, target audience… )which company may use a) to launch new product b) to support a long established product whose sales are slowly declining Introduction Due to new challenges which business organisations encounter in ever changing environment, the present marketing must focus on much more than creating new products or services. It is vital to price them attractively and make them available to increasing demands of customers at place where they require them.
However, an ffective marketing mix can be only successful only if all it parts take place One of the core aims of firms’ marketing departments nowadays is to give emphasis to communication with their customers. The communication is based on understanding people’s needs. The mission of marketing specialist is to create and design an unique sales promotion. Marketing communications is part of marketing mix. An important goal of advertising is to influence customers’ choices and buying decisions, which will lead to accomplishment of marketing plans of the firm.
Advertising has to be visible, clear, and easy to take in. Also, it has to identify the advertiser and their products or services. Marketers bring into play different advertising campaigns. during the ptoduct life cycle, product go through four different stages: introduction stage, growth stage, mature stage and declining stage. When the product is introduced for the first time in the market place, advertisement is aggressive; companies employ many means of direct and indirect marketing to promote it.
Mass media are used since there is only little knowledge about this product among customers. Introducing new consumer goods is so-called informative advertising. Its main objective is to build a primary demand. A strategic aim firms follow when promoting the product for the first time is to inform potential buyers about it and highlight its features which distinguish it from competitors. Furthermore, this will create awareness about the product and influence consumers’ perception. It also helps to build the firm’s brand.
In contrast, an advertisement of a new product is completely different from an advertisement of already established product, which has declining sales. Usually, these are products, which consumers have already known or used them and at some oint the sales curve start to decline. In this case, the promotion and advertising have marvellous impact to turn sales in opposite way. For example, the company offers some extra services. Furthermore, certain products can be offer with a complimentary product or discounts can take place. Price and non-price competition should be used at this point to keep the product at the market.
When the sales are declining the main aim of marketing advertising strategy is to remind consumers of the product or service. The campaign in this case is trying to boost sales and profits. Advertising campaigns vary. Firms can use a means of below and above the line marketing. below the line marketing include direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates and above the line embrace advertising such as television, cinema, radio, print, and Out-of-home to promote brands or convey a specific offer.
Literature review Advertising is non personal form of communication, presentation and promotion of consumer goods, which will lead to increasing the sales. The information about certain organization and its products is conveyed to potential buyers through mass edia, such as television, radio, newspapers, magazines, direct mail, public transport, outdoor displays, catalogues, internet. (Dibb, 2009) The main purpose of advertising is to inform or persuade members of particular audience about new products which will enter the market , or for the existence of promotions which will be appropriate for some costumers.
On the other hand , the main use of advertising embrace the promotion ot products or an organization in order to awareness among target consumer segment. The most important sides of advertisement are stimulation of demand, off settings of rivals’ advertising strategy, and to support elling drives. (Dibb, 2009) Also, advertising marketing strategy has to notify and educate a certain target market about a brand and its heightened marketing mix or product benefits(Dibb, 2009). Due to these facts, the general idea of all advertising campaigns is to enhance consumption of consumer goods.
Identifying the target market The target market is a specific group of people within the market at which the advertising message will be convoyed through the mass media. The target market or audience can be created from people from the same gender, age group, or based on other common features. Researchers attempt to understand the needs of certain target audience and this will lead to creating of marketing message that will make consumers to respond. The consumer feedback plays an important role in designing an advertising campaign.
Advertising budget The most difficult marketing decision is how much a company should spend on advertising. According to Kotler(2001), advertising budget usually is influenced by different stages of product life cycle. A product first appearance in the market place usually need higher advertising budget. The company in that stage has to emphasize n building awareness and to gain target consumers. Market shares also affect the budget, expanding the market share require higher advertising cost, on the other hand low share brands often have high advertising spending, which aim to increase sales.
Rivals have the main point when a company sets its advertising budget. Developing advertising strategy Consisting of successful advertising strategy depends on advertising message and selecting media. In advertising, different creative strategies are used in order to obtain consumer attention and provoke shoppers to purchase or use a specific product. Advertisers use different ways of thinking to create catchy slogans that capture consumers’ attention. Creative strategies promote publicity, public relations, personal selling and sales promotion.
We’d also like to express f thanks to the numerous shop-owners at T. Magna who helped us in conducting the survey. And lastly we thank the various customers, buyers and consumers who readily provided us with their insights about the products that they used.
Survey Location: We surveyed the following locations:
- * Spence’s, Bellyacher
- * Phoenix Mall
- * T. Magna Methodology used:
First our team decided to choose a specific body part I. E. Hair and then we have listed all the product forms for that body part.
Among those product forms we picked two- shampoo and hair oil and listed all the brands that we found for the two product arms. Then we approached the shopkeepers, managers and buyers of the above mentioned locations . We asked them question regarding those two product forms like what brands they prefer and why, are they willing to change the brands or not and noted the responses. Then with the help of those data we found the two most preferred brand of products and studied their market share, reasons for which people are buying them and reasons for which some people want to switch from those brands in detail.
Marketing By Chagrining
1. Introduction- Hair
2. Types of Product Forms for hair
3. Types of brands for hair oil
4. Types of brands for shampoo
5. Oil Market Share
6. Parachute Coconut hair oil-Brand Loyalty, reasons of use
7. Parachute Coconut hair oil-reasons for switching to other products
8. Baja] Almond Drops hair oil- Brand Loyalty, reasons of use, reasons to switch
9. Shampoo Market Share
10. Dove Hair therapy Shampoo- Brand Loyalty, reasons of use
11. Dove Hair therapy Shampoo- reasons for switching to other products
12. Head & Shoulders- Brand Loyalty, reasons of use
13. Head & Shoulders- reasons for switching to other products
14. Significant Learning HAIR
As the study required us to select a body part, hence we have decided to begin this study from the top; therefore our chosen body part portrays the same I. E. Hair.
As hair today plays a vital role for one to define his personality, hence people have become concerned and conscious about taking right care for them. In today’s world, hair care is not only segmented to the women section of the society, but also caters to men of all ages who feel a need to take care of their hair .
The same concern has been observed and hence profitably utilized by the hair care industry of today. The hair are industry have not only grown in terms of market revenue and market penetration but have also diversified there portfolio offerings. There are many categories of products available in the market today for hair care, catering to different needs and wants, some unisex and some gender specific. Depending on the targeted segment and positioning almost all of them seem to have found a market for them.
We have tried to encompass many of the categories of hair care products available in the market today. Shampoo: Since ages in India we have been using various natural concoctions and soaps to keep our hair clean, the hair care industry as used the same need to create a market for them by bringing in shampoos. This has been a difficult process, because as far as India goes, as we already had many options available for cleaning the hair hence the Shampoo industry had to step further and add value to their product, to make their product’s need felt.
Today’s shampoos are not only limited to the need of cleaning/washing the hair, but they seem to have the power to solve multiple problems, rather cleaning is a presumed and precluded objective. Today’s shampoo focus on things like
- * Dandruff control
- * Anti hair fall
- * Intensive repair
- * Oil therapy Protein therapy
- * Color protective Oil:
This has also been a traditional product of an Indian house hold, which has been used traditionally as nourishment to the hair; various parts of India have been using various kinds of oils, depending upon the environment.
But the usually being restricted to coconut and mustard oil. Hair Oil industry has found their market here too, by segmenting there offerings on the basis of age and usage. The Oil industry has also added value to their products by introducing diverse offerings catering to needs like:
- * Hair strengthening Oil
- * Anti – Dandruff oil
- * Anti – Hair fall oil Light Hair oil
- * Menthol added oil Conditioner:
Conditioner though new to the Indian culture, still the hair care industry has been able to create a market for conditioners in the urban customers.
Though this is supplementary when compared to shampoo and oil, still people use it for extra nourishment and smoothening of their hair. There have been many new conditioners that have been introduced in the market today
- * Anti – hair fall conditioner
- * Menthol added conditioner
- * Damage control conditioner
- * Scented conditioner Color:
Though the usage of hair coloring was restricted to elderly with grey hairs, UT in today’s generation the Coloring industry has been able to make its need felt for fashion purposes. People today, even without grey hairs, color, to follow the new trends in fashion.
People are going in for coloring to change their natural hair color or to add color streaks. The color industry has though, kept their product portfolio segmented in this case, wherein they have separate products for men and other for women.
Hair Gel: This product is mostly used by urban youth, to set and style their hair into different patterns. Today’s hair gel industry has further added alee to their product by bringing in various ‘look characteristics to the gel, like neon glow, wet look etc, which has been appreciated and accepted by the market.
Hair Spray: They, though not yet that popular in the market, provide an alternative to the hair gel. The advantage of these being that, one can use them after styling, to keep the style of hair in place.
Hair Serum: Hair serum is a hair care solution which makes the hair shine and stops it from tangling. It protects the hair from the damages done by overexposure to the sun, hair styling products and chemical colors. Serums are used for various purposes like air smoothing, growth, conditioning, moisturizing, and hair fall and hair regrowth.
The major reason that came out is the availability of many new products in the same market. The monopoly that Head and Shoulders use to enjoy, when they were the only major player in the Anti-Dandruff shampoo category, is slowly withering away and a major caveat has been the competition. Hence Head and Shoulder needs to refocus on their resent marketing strategy to retain their market. Also they need to reconsider their pricing strategy and think of introducing new products especially for the market using coloring products.
Significant Lessons Learnt: Our group surveyed the market for shampoos and hair oils and we had an overview of the market trends, the mentality of the consumers, the way the products are perceived by the consumers and so on. Here are the few lessons that we came to understand from our market survey:
- * Hair Oils are not used by everyone. A few youngsters do not use it for the stickiness of the oils. Shampoos are used by everyone. The reason being our survey was mostly concentrated in the urban areas.
- * Coconut oils are a rage among consumers. They believe it keeps the hair strong and give it essential nutrients.
- * An affluent section goes for hair spas at salons. Some of them can spend a lot for better quality and imported variety.
- * Advertisements play a small role to influence consumers. Rather recommendations by relatives/peers play the key role to change consumer mentality about products.
- * Shampoos and hair oils, being FMC products, are driven by the brand loyalty in the market and also n the distribution of the product in a particular area. Though people are not ready to compromise with quality, but the middle class section has a want for standard quality product at a cheaper price.
- * Most of the people stick to the brands that they are using since childhood.
- * Some young people love trying new varieties. They experiment many products and choose the one that suits them best, rather than sticking to the same old variety.
- * It all depends on how the product is positioned in the minds of consumers. Quality is not determined by the manufacturer; rather it is dependent on how the consumers assume it to be.