Marketing Strategy

The marketing mix used by Tesla Inc. is a unique one, even in an industry where there are some brilliant marketing strategists. The marketing strategy is also known as the marketing mix or the 4P’s (Product, Place, Price and Promotion). Sometimes in the marketing of services an extended mix of 7P’s (Process, People and Process) is used. It is a set of marketing tools used by an enterprise to pursue its marketing goals and refers to the levels of marketing decision; the 4P’s.

Tesla has a noteworthy managerial control in all aspects of its marketing strategy. This height of control is what allows the company to make full use of its efficiency in reaching its intended customer base and increasing profits. Being one of the main producers of electric cars in the United States and some other developed countries, Tesla does not hold back and uses its marketing mix to facilitate market infiltration and potential growth in international markets. The marketing mix of Tesla encourages strong competition against other car manufacturers like Mercedes Ben, Ford Motors, Toyota Motors, Honda Bavarian Motor Works (BMW), Nissan Motor Company, etc.

These companies also engage designed marketing mixes to tackle that of Tesla in the automobile market. In the engagement of the marketing mix, the reputation of the Tesla brand grows alongside its increase in market penetration. The name Elon Musk, C.E.O of tesla is another factor that grows the brand. His popularity is an effective tool. In the analysis of Tesla, its brand is acknowledged as its major strength, playing the role of an important factor. The 4P’s strategy of Tesla is known to be quite an unusual one in the automobile industry.

TESLA’S PRODUCT MIX

As an Independent automobile producer that provides a broad collection of products made from cutting edge technology, Tesla follows a business to business (B2B) model which promotes and builds a network with other companies. The B2B model allows the supply of products as well as services.

Tesla is a well known distributor, manufacturer, developer and designer of eco-friendly products as well as offering eco-friendly related services to other automobile companies. Product development is strategically used to achieve its corporate goals in the product variable of the mix. As an international business, Tesla has many products, but the main product manufactured is the E.V. (Sedan) powered by a lithium-ion battery.

Tesla is famous for its electric cars. Tesla launched its first car, The Roadster followed by the Tesla Model S with first class features like auto-pilot self driving, adaptive lighting, a strong engine and a “defence mode” to protect passengers in case there is an attack. The Tesla Model 3 was introduced as the third generation car. With customers very expectant, the company registered a record maximum number of bookings. Its one of Tesla’s great works with its maximum safety standards.

A crossover SUV bodied in aluminium was unveiled as the Tesla Model X. It’s cutting edge Clean-air Tech offers passengers a level of protection from polluted air. It is also one of the quickest cars around, doing 0mph – 60mph in less than 3 seconds. It is also one of the safest. Nevertheless, in addition to the production of electric cars, the company produces parts for electric cars that other companies produce as this is a step in achieving the mission and vision of facilitating the movement of the world towards Electric vehicles and renewable energy.

Also Tesla produces batteries that store energy for both domestic and industrial use. In line with this, SolarCity Corp, producers of solar panels and providers of installation services was bought out by Tesla so they could broaden their product mix. As much as much as Tesla’s main focus is on Electric cars, it also looks to develop and broaden its international business and product base. This particular product mix strategy supports the maximization of profit by the company.

TESLA’S PLACE/DISTRIBUTION MIX

The geographical location and infrastructural venues where the demands of customers are met is an integral part of marketing. All organizations supply their products and services at these locations. For Tesla, all organizational, strategic and developmental decisions are made at the headquarters in Palo Alto, United States. Alongside is a widespread sales and distribution complex.

Tesla has distribution stores in Asia, Europe, Australia, South Korea, Dubai and North America. In May of 2018 Tesla had opened more than 5 outlets in the Canadian cities of Ontario, Quebec and Montreal. China is the largest market (both domestic and international) for Tesla’s electric vehicles, so much so that Tesla announced in 2018 that a production plant is to be constructed in Shanghai and is to produce 500,000 vehicles in a p of 5 years.

In the 4th quarter of 2018 it was announced that partial production will begin in mid 2019 (FINANCIAL TIMES, 2018). Tesla is also the only foreign automobile company in China that did not have to enter a 50:50 agreement with the Chinese government in order to set up and start production. Tesla started operations in San Carlos California and later expanded its domestic reach buy opening distribution centres in LA and New York.

Tesla had opened 260 distribution centres in only the United states by the end of 2016. Most of the stores are built in and around large shopping malls, giving the Tesla brand the ultimate maximum exposure. There is even a website where customers can go and pick a Tesla model of their choice to their specifications.

Tesla’s sales approach is designed in a way that customers come in direct contact with the brand and all the experience it comes with such as repair and maintenance services. This is achieved through the service centres and stores. Also Tesla vehicle owners can charge their cars at the various charging stations provided by Tesla. In China alone Tesla says it has more than 3000 charging stations. All three of their largest fast charging stations are found in China.

Most of the manufacturing is done at its facility in Fremont, California. Other plants are assembly plants. Examples are the Gigafactory 1 & 2 in Nevada and New York respectively. Instead of selling through dealerships Tesla advertises, promotes and sells its cars through online portals and company showrooms.

It is worth noting that one if Tesla’s Research and Development division is located in Athens, Greece, an example of the p of Tesla. The place/distribution mix underlines noteworthy corporate management control in the manufacturing, distribution and sale of vehicles.

TESLA’S PRICE MIX

Pricing is an important factor of marketing strategies. It is what supports the brand. In the case of Tesla, price is what backs their premium brand as well as maximization of profits despite a limited production level. Pricing is what affects profits as well as what customers perceive the company to be. Tesla comes of with the following pricing strategies:

• Premium pricing strategy
• Market oriented pricing strategy

From the onset, Tesla has used a premium pricing strategy. This comprises of various high price points according to the uniqueness or valued given to its products. It is evident in the willingness of customers to pay high prices for Tesla products as they are considered to be high technology and eco-friendly.

This also means that pricing depends on the level of innovation and design. At the end of the 2017 financial year, Tesla declared it had revenues of 11.75 billion dollars($) and a net income of (-)2.23 billion dollars($), clear evidence of Tesla’s effort to target wealthy buyers from the get go. Their products were meant for a target group of customers who are more concerned with quality, high tech plus eco-friendly products.

Irrespective of the price level, this group of customers would be able to make purchases. Subsequently, a line of affordable mid range products was launched for the middle-income target market. Prof. Clayton Christensen suggested that Tesla is creating a new mode of disruption, in which products start at the high end and move down (HBR, MAY 2015, P.22-23). In order to achieve this Tesla had to adopt the Market oriented pricing strategy.

Products greatly affected by this apart from its vehicle inventory were products from its acquired subsidiary SolarCity; solar panels and related product turned in great numbers. It was very successful and eventuated in high revenues and profit margins. Tesla expects to change or add to its pricing mix strategy when they come out with new products for different markets.

In order for us to understand any administration we have to either cognize about or make some research on it. So in this assignment I have chosen an administration. The administration I am making my assignment on is Polyflor South Africa. The administration will be described, including their products/services and their clients. In order to understand the administration we need to carry on a SWOT analysis, besides looking at barriers. If we have all the needed information from above we will understand the administration better and can get down with the selling program.

Question 1

• The administration I am traveling to depict is Polyflor Gross saless Africa otherwise known as Polyflor South Africa. Polyflor S.A is an industrial flooring company. The South African subdivision was established in 2004 by Denver Coleman and Sheila Coleman. The administration really originates from the United Kingdom where the first Branch of was established in Manchester.

Polyflor is all over the universe, they have subdivisions all over the universe. There are subdivisions all over Europe, Asia, North America and Australia. So they are fundamentally on every continent. Polyflor Manchester is the chief caput office.

Polyflor S.A is a household concern, where they all work together. The administration believes strongly in “ Team Work ” . And is all about profiting the consumer.

• Polyflor S.A has a figure of different merchandises. All their merchandises are heavy responsibility, industrial merchandises. They do chiefly shocking but they got some other merchandises that is non flooring, it ‘s really got to make with plumbing.

Their chief merchandise is heavy responsibility, industrial vinyl flooring. Another merchandise of theirs is industrial meshing gum elastic tiles. They besides do wooden block mosaics. The merchandise that is non shocking related that is comparatively new at Polyflor S.A is specialized industrial drains.

As you can see all their merchandises are industrial merchandises so they meant to be used in topographic points where the merchandises will be introduced to a batch of wear and tear. You will happen their merchandises in mills, large edifices etc. The vinyl flooring can really be seen chiefly in infirmaries and in many of the luxury coach line drives. The merchandises are non truly used in a private capacity.

Polyflor does n’t acquire their merchandises from merely one topographic point, their merchandises come all over the universe. Their vinyl shocking comes from the United Kingdom, from Manchester. That ‘s the majority of their merchandises they do. The specialised drains are imported from Germany. They do hold a local manufactured merchandise and that is the meshing gum elastic tiles that they really get from down the route from them.

They do n’t truly supply a service as they sell shocking and other merchandises, but they do hold support systems where they will the aid at anytime. They ever there for their clients. They besides got a station sale service where they will help refering their merchandises. If a client is necessitating aid or general aid refering their merchandises, the employees of Polyflor S.A will ever be at that place to assist every bit much as they can.

• For these types of merchandises there is non a immense mark market, as these merchandises are non used in a personal and private capacity. They are used in a industrial capacity, intending mills, infirmaries and so on. Polyflor S.A does non put in the shocking they sell their merchandises to the administrations who install it.

So Polyflor ‘s has non got an limitless sum of clients, but they do hold a big client base. Which the bulk of them are regular, on traveling purchasers of their merchandises. Basically, Polyflor merely sells to shocking contractors. Polyflor is non allowed to put in their flooring. So other shocking companies who do besides sell flooring and put in it. Purchase from Polyflor. Some of the chief flooring contractors that are regular clients are Peter Bates, Turner Piercing, Kevin Bates, Albert Carpets and many others.

Question 2

Looking at assorted administrations we need to understand them more. We can make this by carry oning a SWOT analysis. Basically a SWOT analysis is structuring of information, which is collected from the internal and external environment. It gives us a theoretical account in order to get down the selling planning procedure. Shows us the strengths, failings, chances and menaces of the administration.

Cloete ( 2010,21 )

So the SWOT analysis of Polyflor is:

Strengths:

• They are a recognized administration, good known in the flooring trade.
• They are known for holding the best quality merchandises.
• They are an international administration, so they are recognised all over the universe.
• Polyflor has one of the best proficient backgrounds in the flooring trade.
• They are a household concern so the squad of employees work truly expeditiously and good together.
• Keeping up in the new manner tendencies of today with their new designs on the flooring.
• They are a really environmentally friendly company.

Failings:

• Finding reps that know about shocking who will be able to sell their merchandises.
• Finding employees who are able to work with the merchandises and know about flooring.
• Not holding plenty South African manufactured merchandises.
• Geting bulk merchandises from abroad states, people need to acquire the merchandises and start assorted occupations utilizing Polyflor ‘s merchandises but they cant because Polyflor has non received the merchandises due to detain being imported from abroad.

Opportunities:

• The manner tendencies are altering all the clip, so Polyflor can hold new manner tendencies in the designs of their flooring.
• Most people and companies are going “ Green ” , so they want to utilize more environmentally friendly merchandises. So Polyflor can sell environmentally friendly merchandises and present new “ Green ” merchandises.
• Besides they could sell more locally produced goods, .
• Polyflor could non merely merely sell to shocking contractors for industrial usage, but besides opening up a new market for people to utilize it in a private capacity.

Menaces:

• Of class their chief menace is competition ; there are other shocking companies besides Polyflor. So they have to invariably maintain happening ways to remain on top and maintaining competitory advantage.
• Another menace would be that most merchandises come from other international states, which sometimes the merchandises are n’t delivered in clip. So clients could travel looking other topographic points.
• Besides coming from abroad, the monetary value of the merchandises could alter easy, due to currency, revenue enhancements, import and export responsibilities.

All of these facets can hold deductions on the selling scheme of the administration. Therefore it is of import to make this analysis.

Abstract

Pepsi Raw is a new product that has been developed by Pepsi Co for the soft drink consumers. The product is a carbonated and natural drink that contains no artificial ingredients, preservatives or color, rather it is made of natural products. Consumer behaviors can be used to develop the marketing strategies suitable for the marketing of the product. The market of the product can either be internally influenced by the consumer behavior or externally influenced. The external influences can be used to identify the market segments of Pepsi Raw and eventually multimedia strategies can be used to advertise the drink. The multimedia strategies are dependent on the consumers of each target market.

1.0              Introduction

Consumer behavior relates to the study of the reasons why consumers buy or fail to buy products in the market. It studies the behavior of the consumers in a bid to understand the forces that influence the consumers during the buying process. Certain characteristics of the consumers are analyzed such as the demographic characteristics and the behavioral variables among others to better understand the behaviors of the customers while buying products in the market (Khan, 2007). The main objective of studying the behaviors of the consumers is to use the information to develop marketing strategies that will help attract and retain the consumers. It also helps in managing the relationships between the customers and the company’s products.

Pepsi Co is a global manufacturing, distributing and marketing company that is involved in the food and beverage industry all over the world. The company consists of various brands of companies that include Pepsi Cola and Tropicana Products, Gatorade, Frito-Lay among others (Pepsi Co, n.d). The company has been producing various soft drinks through Pepsi Cola Company which operates in over 200 countries all over the world (Pepsi Co, n.d). The company’s biggest market share is in North America and the United States.

The company recently introduced a new drink into the market known as Pepsi Raw (Pepsi Raw, n.d). Pepsi Raw is a carbonated drink that is made of natural ingredients such as cane sugar, natural caramel, apple extracts, sparkling water and coffee leaf among others. The drink does not have the regular artificial colors and high sugar content found in other Pepsi soft drinks that are in the market. This paper discusses the consumer behavior and marketing strategies that can be used by Pepsi Co for the new Pepsi Raw drink.

2.0              Consumer Behaviors and Related Marketing Strategies

Consumer behavior is a complex and dynamic process that is multi dimensional and that helps establish the marketing decisions and strategies to be used by companies (Khan, 2007). Marketing strategies are the plans that companies use to achieve certain objectives in marketing and selling the companies’ products. While formulating such plans, targeted consumers of the product need to be analyzed to ensure the strategies that are formulated fit in with the consumers’ behavior. The strategies can also be used to shape the shape the behaviors of the consumers in a manner that benefits the company and helps it achieve its goals.

2.1  Target Consumer Perceptions

Among the different consumer behaviors that are analyzed to develop marketing strategies is the perception of the consumers on the product. A customer’s perception is the approximation of reality about the product and its performance. The customer’s perception is influenced by several factors such as the exposure to the product and the attention given to the product among others (Sharma, 2006 ). The customer’s perceptions may be based on the quality of the product, its price or what the product can do for them. In the food and beverage industry, the perceptions of the consumers are an important element in the sustainability of the market. What the consumers of the products in the industry think and perceive about the product directly contributes to the sales of the product.

Pepsi Raw was created as a natural drink that is different from other soft drinks in the market made of artificial ingredients and lots of sugar. Pepsi-Co had the intention to produce a product which would be considered healthier compared to the other drinks in the market. Consumers in the recent past have become more educated about their health and the products that are good for them. Terms like natural, chemical free, no artificial preservatives have become very meaningful for the consumers as they give them a perception that the product is healthy (StarMedia, n.d).

The marketing strategies that can be used based on this consumer behavior include advertising the product in the market using TV commercials to constantly expose the product more to the consumers and stimulate their thinking. The advertisements can also raise more awareness on the product and shape the perceptions of the consumers towards the drink and what it can do for them. The company can also use the packaging of the product as part of the marketing strategies by including the ingredients of the product to relate to the consumer’s perception and their consciousness. The color of the product can also influence their perception by using colors that are harmonious with the environment and that will create a perception of the product being healthy.

2.2  Motivation Influence

Motivation is the influencing factor and reason why most of the consumers buy things in the market (O’Dougherty, 2007). They are motivated to buy something because they need or want it. Motivation in consumers is composed of a drive in energy and direction. It may be hidden or in multiples that are publicly addressed. It is usually influenced by internal and external factors. Internal factors include the characteristics of the consumer and their personality that may motivate them to buy a particular product. External factors that motivate consumers to certain products over others include the status that they get once they buy the product.

The Pepsi Raw consumers that are targeted to buy and consume the product may be influenced by various factors and motivated to buy the product for various reasons. The consumers may buy the drink being motivated by the needs and wants that they intend to satisfy (Natural~Specialty Foods Memo, 2008). This is a Means-End-Chain motivational approach that the consumers use to buy the drink. This is because of the benefits and attributes that the drink has over the other soft drinks in the market. The drink ultimately leads to the satisfaction of their needs and wants and also provides additional benefits to them since it is healthier.

To develop a marketing strategy that will relate to the behavior of these consumers an attribute needs to be identified of the drink. This is mostly a concrete characteristic that is unique and dominant over the other products in the market. Progress should then be made on the consequences of the drink and the ultimate value that is satisfied as a result of the product’s attribute. Marketing strategies that use the means-end-chain tend to be effective when advertising is used to market the product over other marketing activities (Sharma, 2006 ).

2.3  Consumer’s Attitude

Consumer attitudes are the opinions that the consumers have including the feelings about the products and the behavioral intentions towards it (Khan, 2007). It also refers to the overall evaluation that the consumers have on the products. The attitudes of the consumers lead to the feelings that they have on the product with some of the consumers having stronger attitudes than others (Sharma, 2006 ). Consumers do not however behave consistently and maintain the same attitudes of the product over time. The attitudes of the consumers can be changed even though this is a difficult thing to do. It even becomes more difficult when the consumers suspect the company intent to bring about change in their attitudes and get them to buy more of the product or switch to the brand.

The attitudes of consumers in the soft drink industry and other food and beverage industries have been changing over the years. Consumers have shifted to healthier alternatives that are benefit their bodies and also satisfy their needs (Hasan, 2008). The consumers have been demanding healthier drinks in the industry that add value to their health and that benefit their bodies (Pepsi Co, 2010). Pepsi Raw is one drink that will fit in with the current attitudes of the different consumers all over the world.

The marketing strategies that can relate to the consumer attitudes to Pepsi Raw should put more emphasis on the benefits and the ingredients that the product has that makes it a healthier option over other soft drinks in the market. The strategies should help capture the demands of the consumers by continually advertising the drink in a manner that exposes the benefits that the drink provides to consumers. The packaging of the product should include some of the details that the consumers are looking for and that can help change their attitudes about the drink (Tyagi ; Kumar, 2004).

2.4  Decision Making Criteria

Consumer decision making process is a way that is used by the consumers to solve some of their problems when purchasing. A problem in this state is the difference between what the consumer has and his or her desired state that will be accomplished by the decision making process (Sharma, 2006 ). The problem or need is recognized through a comparison of the current and the actual situation. When making the buying decisions there is no particular rule that is fixed and that must be followed. The decision may however be influenced by various factors including the social environment and the marketing strategy used on the product. The decision making process normally involves several stages which include identifying the problem, gathering information about the product, gaining knowledge about the product, analyzing the environment among others (Pride ; Ferrell, 2008 ).

Consumers are likely to be influenced by various factors when making a decision about buying Pepsi Raw drink. Some of the influencing factors include the needs that they want to satisfy and the qualities that the drink has to satisfy them (StarMedia, n.d). As the drink is an everyday product most of the consumers will be using a habitual approach to the decision making process and will tend to buy the same product over and over again based on the same criteria (O’Dougherty, 2007). The decision making process can be reduced with the appropriate marketing strategies. The consumers may be less likely to put a lot of effort in the search for alternatives if the marketing strategies used help define the drink as the best for the consumers (East, Wright, & Vanhuele, 2008).

The marketing strategies used should then seek to capture the interests of the consumers from the start and work to retain them. Product packaging is one of the best marketing strategies that can be used to help the consumer reach a decision of buying the drink. The packaging can include details that simultaneously inform and educate the consumer as well as attracting them to buy it. Other marketing activities can help establish the consumer’s trust in the drink and increase their chances of taking it again. The marketing strategy should also strive to develop some sense of integrity in the drink so that the consumers can consume and buy it often as a habit (Tyagi & Kumar, 2004).

3.0              Target Segment and Multimedia Strategies

3.1  External Influences on Target Consumer Segments

A target market normally represents the potential consumers of the product that a company is focusing on. These are the people who are most likely to buy the product and use it. They all have certain characteristics that are common in all of them that define them and their desire to consume the product. The characteristics may be based on their income levels, their ages, education levels or social levels among other characteristics. It is important for any company to segment the market and identify the potential consumers of the product. It helps conserve the resources of the company by focusing the marketing strategies to the consumers who are most likely to buy the product. It also helps the company to sell more of its product while using fewer resources. The selection of a target market is however influenced by various external factors which determine how the consumer segment can be determined.

(a)   Gender
Gender is an influencing factor when segmenting the market of Pepsi Raw. Various studies have shown that women are more health conscious about what they eat and drink when compared to the men. The women tend to take more healthy steps and are more concerned about what they eat or drink in order to maintain a healthy lifestyle. This is due to the fact that the women are more prone to risks when they consume soft drinks than the men. Studies have revealed that the women who take soft drinks especially soda tend to have a higher chance of kidney diseases (Science Daily, 2009). They also become prone to diabetes and obesity.

 It is for this reason that the market of Pepsi Raw can be segmented on this basis to ensure that the women reduce the chances of getting some of these diseases. The study carried out did not reveal any elevated risks for the men or the women who took other soft drinks such as diet soda. The regular sodas contained high amounts of sugar that increased the risks of getting kidney diseases for the women. The women can therefore be targeted based on the results of this study and become potential consumers of the product since it does not contain high levels of sugar.

(b)   Age
The age of the consumers is an influencing factor when selecting the target market of Pepsi Raw. Older people are more conscious of their health and what they eat or drink. As people grow they undergo various life changing experiences that make them more concerned about their values and their lifestyle together with what they consume. They begin to analyze their life and make decisions that will help them live a longer and healthier life (Lake, 2009). The young people however are a contrast of the old people. They consider themselves healthy and are less likely to take a lot of concern over their health and what they consume.

Pepsi raw can be targeted to the older generation who are most conscious about their health and what they eat or drink. They could also be suffering from age related illnesses or have ailments that do not recommend the intake of other soft drinks in the market. The drink can be targeted to these kinds of consumers who are more likely to enjoy the product. The younger people may not be able to enjoy it as much as they are more about fun when they are consuming the soft drinks. They would prefer the other soft drinks that have sweeteners and artificial flavors that make them sweet.

(c)    Social class
The Pepsi Raw drink can be targeted to the consumers based on their social class. The social class is the hierarchical structure that is used to categorize people and stratify them depending on their characteristics and the social status. People of a certain social class tend to behave in a similar manner and they relate with people of their class rather than with people of other classes (Lake, 2009). This influencing factor can be used to categorize the target consumers of Pepsi Raw and target a certain class that is more likely to consume the product more than the other classes.

The upper class society has the highest social standing and is more likely to consume the product rather than the other social classes. This class of people tends to have high economic capability and can therefore be in a position to purchase the product no matter the price set. The other classes might be influenced to buy other alternatives to the natural drink like home made lemonades or home made juices. The middle class and the lower classes may be inclined to buy other cheaper alternatives that would allow them to save some money rather than buying Pepsi Raw. The upper class would not have trouble purchasing the product no matter the price.

(d)   Lifestyle
The lifestyle of a consumer refers to the way a consumer lives. It refers to some of the characteristics of the consumer that relate to how they communicate, their dressing, eating habits, values, beliefs and attitudes among others. All this characteristics are used to define the lifestyle of an individual and they can influence how the market of Pepsi raw can be segmented.  The influencing factors in the lifestyles of the consumers would be their food and eating habits and the values that they hold. The market can be segmented based on the influencing factors such as the vegetarians and the non vegetarians.

The people who are strict vegetarians are health conscious and they only eat and drink what is considered to be healthy. They would be more likely to consume the product than the non vegetarians. Consumers who are also dieting and trying to lose weight and those who are cautious about their weight are more likely to consume Pepsi Raw as it would not be detrimental to their bodies and their weight in general. The product can be focused on these consumers to ensure that minimum resources are used in marketing and the company is able to achieve its marketing strategies.

3.2  Multimedia Strategies

Multimedia strategies include the various approaches that are used by marketers and advertisers to reach the different targeted consumers. The strategies involve a lot of integrated approaches such as the use of the TV, Radio, Print media and the Internet among others. All these approaches are used in a manner that reaches the targeted consumers. The consumers in today’s market are more sophisticated, more educated and they have more options in terms of watching, listening or reading advertisements (Koeppel, n.d). The marketing approaches must therefore be more complicated to match the consumers. The choice and combination of the media strategies depend on their suitability and their effectiveness to reach the target market. The use of the different multimedia approaches allows the marketers to take advantage of the opportunities that are provided by the changing marketing media environment that is constantly changing and essentially reach the targeted audience. The product type also plays a major role in determining the best combination of multimedia approaches that can be used.

In the case of Pepsi Raw and the different target segments there are various multimedia strategies that can be used to market the product and ensure that it reaches the intended market. The multimedia strategies will depend on their suitability and how effective they can be on each of the targeted market segments. Multimedia strategies that can be used to reach the women and the men on different levels include magazines and the internet. These two methods can be used to selectively target the consumers based on their gender and the different needs they have for the drink.

Women and men magazines can be used to advertise Pepsi Raw and the different ways it can satisfy the needs of its consumers based on their gender. In the internet websites that re gender based can be used to advertise Pepsi Raw and also reach a wider market. The net would be more suitable for the consumers who do not read a lot and who spend most of their time on the internet. A commercial of the drink can be streamed online on the gender based websites and the official company’s website as a video.

The consumer target group that is being targeted based on can be approached through TV commercials, use of radio advertisements, billboards and the print media. The approaches are suitable due to their ability to reach the high numbers of consumers in this targeted market. One commercial advertisement can be used to reach the different age groups of the consumers and not be discriminatory. This is because the overall benefits that the different age groups will derive from Pepsi Raw are the same. Other outdoor advertising methods can be used such as billboards as they will also reach a bigger audience within the market segment.

 Strategies that can be used to reach the consumers based on their social class would include making the product available only in the high urbanized areas where these people can easily reach it. The marketing strategies should exclusively target these consumers only to ensure the marketing resources are well utilized and high sales are recorded. Marketing activities that would exclusively target this people would include outdoor advertising methods during the different events that the targeted consumers are involved in. This would ensure that they are effectively made aware of the drinks and its qualities.

For the different market segment that is defined by the different lifestyles of the consumers, the multimedia strategies that can be used to advertise the product would include the different forms of media. The print media can be used to advertise to the different consumers in this market segment who prefer reading rather than watching or listening. The advertisements can be placed magazines and other publications that are concerned with various issues that concern people’s lifestyle such as health magazines and journals, sport and fashion magazines among others.

4.0              Conclusion

Pepsi Raw is a natural carbonated drink that targets the health conscious consumers who are cautious about what they eat and drink and the contents of the different foods. These consumers tend to be influenced to consume products based on the ingredients they have and the ones they have omitted. The different consumer behavior can be used simultaneously to establish marketing strategies that can effectively market the product. The internal influences on the consumer behaviors can be used to develop marketing strategies that can be effective to market the product. The marketing strategies that should be used by the company should embrace the characteristics of these consumers depending on the unique features that define them.

5.0              Learning Outcomes

In the discussion, the new product by Pepsi Co, Pepsi Raw has been discussed. The product has been identified to be a product in the soft drinks industry that is different from other soft drinks in the market. It has been defined as a carbonated natural drink that is brown in color and contains natural ingredients. It lacks any preservatives, artificial ingredients or colors. Some of the ingredients include cane sugar, natural caramel, apple extracts and sparkling water among other ingredients.

The main focus of the paper is the identification of the various consumer behaviors that are in the market and how they can influence the marketing strategies to be used in marketing Pepsi Raw. The paper also discusses the multimedia strategies that can be used in the market to advertise Pepsi Raw. The consumer behaviors were identified and highlighted. The definition of consumer behavior was described as complex processes that consumers go through that help define the entire buying process. The different consumer behaviors were grouped according to their internal and external influences in the market and the marketing strategies were described as the plans that are used to help attain marketing goals.

The different consumers after being analyzed were used to develop the marketing strategies. Among the different influencing consumer behavior that was analyzed included the consumers’ perceptions, their attitudes, motivation and the decision making criteria. For each of the influencing behaviors marketing strategies were suggested and differentiated based on the different customer behaviors. External influences on the consumers and the market were also analyzed together with their impact on the marketing strategies. The external influences included the gender of the consumers in the market, the different ages of the consumers, the social class of the potential consumers of the drink and the lifestyle that most of the consumers were likely to follow.

The different external influences that were discussed played a part in establishing the consumer target segments in the market. Each of the influences was analyzed in relation to Pepsi Raw and how they affected the marketing and advertising strategies to be used in the market. Multimedia strategies were also analyzed and discussed on how they can be applied in each of the market segments identified. The use of the multimedia strategies was dependent on the external influences in the market and the different target consumer markets. Consumers in the modern world are more informed and more educated about the options that they have in the market when it comes to advertising. This has necessitated the need to use multimedia strategies to ensure that each of the consumers in the different market segments is reached.

Reference List
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Executive Summary

KFC Corporation (KFC), established and furthermore known as Kentucky Fried Chicken, is a chain of cheap food eateries situated in Louisville, Kentucky, in the United States. KFC has been a brand and working section, named a concept of Yum! Brands since 1997 when that organization was spun off from PepsiCo as Tricon Global Restaurants Inc. (Bartlett & Rangan, 1992)

KFC essentially moves chicken pieces, wraps, plates of mixed greens and sandwiches. While its essential center is seared chicken, KFC additionally offers a line of flame broiled and simmered chicken items, side dishes and pastries. Outside North America, KFC offers meat based items, for example, ground sirloin sandwiches or kebabs, pork based items, for example, ribs and other territorial passage. The organization was established as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, however the possibility of KFC’s broiled chicken really returns to 1930.

In spite of the fact that Sanders kicked the bucket in 1980, he remains an imperative piece of the organization’s marking and ads, and “Colonel Sanders” or “The Colonel” is a metonym for the organization itself. The organization received KFC, a contracted type of its name, in 1991. Starting in April 2007, the organization started utilizing its unique name, Kentucky Fried Chicken, for its signage, bundling and notices in the U.S. as a component of another corporate re-marking program; more up to date and rebuilt eateries will have the new logo and name while more established stores will keep on utilizing the 1980s signage. Also, Yum, keeps on utilizing the condensed name openly in its advertising. In 1939, Colonel Harland Sanders previously gave the world an essence of his most acclaimed creation, Original Recipe? Kentucky Fried Chicken, including that mystery mix of 11 herbs. In 1952, he joined his first franchisee and consequently started the legend that is KFC, the biggest chicken drive-thru food domain on the planet. A great many individuals have come to adore his stand-out chicken, home-style side dishes and hot and crisp bread rolls. (Enz, 2005)

Modernized KFC

Today, in excess of a billion of the Colonel’s “finger lickin’ great” chicken meals are served yearly. What’s more, not simply in North America? The Colonel’s cooking is accessible in excess of 80 nations and domains around the globe. What’s more, with Yum! Brands, you can convey one to YOUR city. KFC is only one brand possessed by Yum! Brands, Inc. Yum! Brands additionally possesses A&W All-American Food Restaurants, Long John Silvers, Pizza Hut and Taco Bell eateries, and is the world’s biggest eatery organization as far as framework units with almost 32,500 in excess of 100

In Pakistan Kapola (Pak) ltd. is the franchisee of KFC. First KFC branch in Pakistan is in Karachi Gulshan. Our project covers all the marketing strategies used by KFC regarding to price, product, promotion, positioning, market and public relation and finally we analyze the consumer perception about KFC. Major competitor of KFC in Pakistan is McDonalds other competitors include Pizza Hut, Café Zouk, Salt’ n Paper and cooper and Kettle. Market strategies deal with the perspective of market to be served. KFC has first in entry strategy regarding market entry strategy, multi market strategy regarding to market scope strategy, international market strategy regarding to market geographic strategy. (Harris, et al., 2010)

Market Analysis

Although more than 50% of its sales come from Developed nations but those markets have stagnant growth rate and developing nations like India, China and many others have big potential for KFC. The market is still growing but fast food chains have low acceptance in developed markets. Developed nations are becoming more health conscious, it’s only developing nations which will share the market dynamics. (Pekar Jr., 1982)

4 P’s (Marketing Mix)

The Marketing blend is an arrangement of four choices which should be taken before propelling any new item. These factors are otherwise called the 4 P’s of advertising. These four factors help the firm in settling on key choices vital for the smooth running of any item/association. (Cravens & Piercy, 2006)

Product – What the organization is producing?
Price – What is the evaluating system utilized by the organization?
Place – Where is the organization moving?
Promotions – How is the organization advancing the item?
What are the two types of marketing mix?

1) Product marketing mix – Comprised of Product, price, place and promotions. This marketing mix is mainly used in case of Tangible goods.
2) Service marketing mix – The service marketing mix has three further variables included which are people, physical evidence and process. They are discussed in detail in the article on service marketing mix.

Product in the Marketing mix

KFC is one of the universes most prevalent junk food joint, having an incredible strength in burgers. KFC is synonymous with seared chicken and it tested the built up junk food market of ground sirloin sandwiches. The first item is weight seared chicken tenders enhanced with mystery flavoring of 11 fixings. Different claims to fame of KFC are Extra Crispy Chicken, home style sides and buttermilk scones. In 1990, KFC extended its menu and offered other chicken arrangements like Chicken Filet Burgers and wraps, plates of mixed greens, potato fries, sweets and drinks.

Pricing in the Marketing mix

The menu at KFC is offered at reasonable costs and they have embraced creative procedures to contend in various markets. In 2013, offer of KFC had come to $23 billion. The parent brand of KFC is on 201st position of Fortunes posting with income of over 13$ billion. The objective section for KFC is groups of youngsters in urban and semi urban area having a place with upper white collar class or working class. At the point when nit entered the market, the costs were higher which were step by step lessened later on to target bring down salary gathering. The cost is likewise similar to the contenders. KFC offers differential evaluating. The items are accessible as individual and in addition packs or combos. The valuing of groups is less when contrasted with joined cost of the considerable number of items. It is particularly worthwhile in value delicate markets like India.

Place in the Marketing mix

The author of KFC distinguished the significance of diversifying and set up first KFC eatery in Utah in 1952. Later on, the global outlets were opened in Canada, UK, Mexico and Jamaica in 1960s. The Headquarters of KFC is situated in Louisville, Kentucky. Today KFC is available in 125 nations worldwide with more than 20,500 outlets, which demonstrates its solid place procedure in its showcasing blend. It was the main Western Restaurant to open in China in 1987 and it is as yet going solid there. Normal every day normal requests cooked by an outlet are 250, out of which many are satisfied amid pinnacle hours.

Promotion in the Marketing mix

KFC has a site and additionally nearness in interpersonal interaction sites like Facebook, Twitter, Instagram and YouTube. It likewise has relied upon broad communications for advancement. The KFC notices show up in print and additionally communicated media. Print media incorporate papers, magazines including enticing presentation of KFC contributions, exceptional offers and costs. It likewise utilizes announcements and hoardings on inside city streets and parkways for commercials. It is renowned for its slogans like ‘Finger Lickin Good’, ‘No one Does Chicken like KFC’ and ‘So Good’ and these are constantly incorporated into the limited time exercises.

SWOT Analysis

KFC is known to be a favorite of meat and chicken lovers, and this segmentation is the main success factor of KFC. However, due to its franchise business model, the firm faces a lot of competition from other franchises like McDonalds and Burger kind. Besides burgers, indirect competition in the form of Italian and fast food is ever present. Some of these competitors are Pizza hut and Domino’s. Let us have an internal analysis of KFC to know what strategic initiatives can be taken by the company. (Omer, 2018)

Strengths

1. Global Presence: KFC is the world’s 2nd largest restaurant chain with more than 18,000 KFC outlets in 120 countries and territories around the world. It is market leader in Non-veg food joints categories in majority of countries it is in.

2. Strong parent company: It is the subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell . Yum! Brands, the fortune 500 company, is one of the world’s largest fast food restaurant companies in terms of system units—more than 41,000 restaurants around the world in over 125 countries & it help individual brands in optimizing its resource usage.

3. Veg & Non veg offerings: Although KFC is known for its finger licking Chickens menu but recently they ventured out in Vegetarian category which is helping them in increasing their business & attracting both veg & non-veg preferred customers.
4. Secret Recipe: Sanders’ Original Recipe of “11 herbs and spices” is one of the most famous trade secrets in the catering industry. A copy of the recipe, signed by Sanders, is held inside a safe inside a vault in KFC’s Louisville headquarters, along with eleven vials containing the herbs and spices.

Weaknesses

1. Unhealthy fats: Use of unhealthy fats & unhygienic calories is creating problem for the fast food chains to which KFC is not an exception.
2. Managing franchisees: Franchisee management is one of the critical issues in the success of the fast food chains and due to conflicting operational issues between KFC and its franchisees many of its outlets got closed since its inception.

Oppurtunities

1. Market expansion: Emerging economies and their changing lifestyle resulting into more of outings with family/friends, corporate parties will result in the high growth of the industry. Furthermore, the presence and popularity of McDonalds is anytime more daunting for KFC.
2. Specializing into vegetarian Menu: Although KFC recently entered in vegetarian fast food category but they have limited menu items as compared to other chains like subway, Pizza-hut, Mac Donald’s, who are already an established player in the segment. So specializing into Veg. items like they have in Non-Veg will help the company in its overall global growth.

3. Rise in health conscious population: Designing its menu for the health conscious population will be the driving force for the whole industry in the future because due to changing lifestyle people are getting less time for themselves due to which health issues are raising.
4. Penetration: Strengthening its outlet network by further penetrating the current market will help KFC in increasing its revenues & become no.1 player in fast food chain market given that now they have presence in both Veg. & Non-Veg. menu in the selected market.

Threats

1. Competition: KFC is not a leader in the fast food chain industry so it has to compete with all other well established fast food companies who all are flourishing in the market.

2. Changing Consumer Eating habits: With government & NGO’s health awareness campaigns people are becoming more aware of what to consume & what to not which is affecting the business of fast food Industry as a whole.

3. Raw Material prices: Rise in the raw material prices may affect the industry, of which KFC business is not an exception.
4. Closure of current Franchisees: Rise in channel conflict resulting into closing of the franchisees is affecting its brand image & resulting into negative word of mouth.

The competitive environment for KFC relates to five different factors, competitors, threat of entrants, suppliers, customers and substitutes. KFC has to face many currently strong competitors, as well as new rivals. However, KFC lacks of its products differentiation. Some actions can help KFC in order to achieve good management through process of planning, organizing, leading and controlling. In conclusion, KFC is invited a really potential market especially in developing countries, they should develop their advantages as well as limit the disadvantages as much as possible to satisfy customers.

Recommendations

In order to gain more customers satisfaction, KFC can do some renovation. First, KFC should make differentiated products to compete with its rivals. For example, create menu contains vegetarian food besides normal menu. Additionally, provides food in a variety of food sources like pork, lamb and so on. Secondly, KFC can give customer reward points for purchasing KFC’s products to get customer loyalty.

Furthermore, birthday cards or small gift in customer’s birthday can build a better relationship. KFC can increase its sale volume and advertise its brand wisely by running corporate discounts with its complements such as Pepsi, and Nestle.

Last but no least KFC needs to care more about their customers by gathering customer’s information. Therefore, it is easier to collect their feedback as well as do customer loyalty programs. All of the things mentioned above need a strong finance to support, however, its benefit definitely outweigh its cost.

PESTEL Analysis

Political

Kentucky Fried Chicken provides the fast-food service. To achieve their goals they make a political system that can guide them or they called as a guide service. This political system could change their business strategy and make the progress to their company. For example, they have employee that run the activity in the restaurant. They make a contract with the employee and make a pension fee. They also provide the alternative in buying KFC. KFC Hospice Dinners that delivering a caring outreach to the terminally ill. The Hospice delivers meals to the terminally ill nationwide. These meals are delivered directly to the patient in their own house. We always called that a delivery orders. The customers feel better when they enjoyed this system. KFC Cafeterias which offering dishes competitors. And KFC Grocery Products which The Cornel is always home. (Ibrahim, n.d.)

Economical

If we talked about the economy aspect, we talked about the fund or money. Kentucky Fried Chicken provides the lower price. They have a food packet; just like we buy the packet we can get the discount or something that support us to buy there again. In this economic analysis we find the benefit of economical that changes the strategy of international business of Kentucky Fried Chicken. They can grow up with the lower price and the satisfying service.

Social

Kentucky Fried Chicken is one of the International Company which has begun their company early and nowadays they are one of the biggest companies in the world. Why the KFC can be the biggest company. Kentucky Fried Chicken built they social connection with others organization or the company around the world. Beside that in their restaurant, they also provide the food that the tasted is related with the tasted in the country they took the place to build the restaurant. In addition about the employee, they are worked the people from the country which are have a good performance and have a talent in cooking for the chef. KFC also supported the many of events, they help the committee by sponsored the event. Sometimes they give the donation to the poor people. With this social activity they company will be known.

Technological

In this analysis, Kentucky Fried Chicken can go out of their home country. They use the modernization technology to advertise their product. They make a website of KFC so easily we just search in internet what do we want about KFC and so many information about KFC. There are also many transactions that do by internet and the KFC just delivered the order to the customer address. In our country they have the phone number that can contact if we want to order some food. Sometimes the customer lazy to go out to buy some food, this is the reason they make an order delivered.

Environmental

Environment is the one of the important analysis that must be had by the company. Without environment they can’t run their transaction because the environments are their customer and they get profit from the product that has been bought. Many people like Kentucky Fried Chicken Company because they are not like the industrial company. KFC Company does not disturb the public activity by make a noisy. They just invite the environment to come to the restaurant to enjoy their food.

Legal

Kentucky Fried Chicken is the legal company. They growth under the Yum! Brands. They gather with Pizza Hut and Mc. Donald’s that they are the food company. This legal analysis guides them to go overseas because the companies which want to going international business are the legal company. They also can hold their recipe because it has been legality so no one can steal it. In other hands, the employee also protect from the stealing cooking recipes. Kentucky Fried Chicken Company can growth bigger and bigger. They are legal so every activity is done in legal system.

Customer Analysis

Customer of KFC are the people from different age group, all who want to satisfy their taste buds with the finger licking delicious chicken menu. Most of the customers can be defined as youngsters or young adults who can shell out a minimum amount of money to have a delicious meal.

Competitive Analysis

KFC is facing strong competition from McDonalds, kokoriko, kyochan and many other local & national fast food companies. Also the local fast food joints are giving head on competition to KFC in the developing nations. In developed nations the different fast food outlets are eating up each other’s market share.
One of the major competitors of KFC is McDonalds and Subway. Both of them are in the burger category and where McDonalds offers burgers, Subway offers sandwiches. Subway is yet to reach its complete distribution potential but KFC and McDonalds are constantly at loggerheads with their vast global presence.

Consumer Needs and Wants
Needs and wants of a consumer are infinite. A person achieves his needs and wants by an identified process. Needs of a person are crystallized as wants and in order to fulfill wants, a person takes some actions. As a result of the actions taken, wants of a person are satisfied. This process is not a linear process, it is cyclical in nature, because as soon as one want is satisfied another crops up and the whole process is repeated again. There are some basic needs which are physiologically based and are unlearned. A person fulfills such needs without any influence from external factors or any intrigue; therefore marketing techniques are not required for such needs. While needs and wants which are learned and not physiologically based, are shaped by marketing.

Needs, wants and demands of people are often not very clear and easy to satisfy, and differ from person to person (McKinley, p. 7). A person is sometimes not aware of his exact needs and wants. This mostly happens in higher level needs, which include luxurious objects. Marketing can be used to make it clear for people by making them aware about the features of a product and its uses. Marketing creates an imagination and idea about a product in minds of people which eventually turns into a want for that product and ultimately a person starts taking actions to achieve that want.

Marketing has an important role to play in shaping consumer’s needs and wants. Whenever some new technological gadget or product arrives in the market, marketing strategies come in to play. People never long for something they are not aware of. Marketing makes them aware about the product, its features and attributes. Thus marketing creates an expectation among consumers regarding the new product. Baker Michael defines this process in his book ‘Product Strategy and Management’ as ‘commercialization.’ It is a pre-planned and formal process which is conducted before the launch of a new product, in order to create expectations among the consumers.

Commercialization is observed in case of launch of any new product in the market, specially, whenever a new telecom company enters the market, initially it goes through months of marketing and commercialization process, and ultimately when it launches its services, people are already aware about it and it leads to the success and stability of the new company. Another example might be of the recent launch and success of Apple’s iPad. Their commercialization strategies were a direct success because of the factor of innovation in their new product. According to an analysis by Vertygo Team, success of iPad was backed up by a complex strategy. Apple initially launched iPad in a limited territory and for a limited time, while everyone else in other territories looked forward to it. When the expectation reached its highest level, iPad was launched in other parts of the world with varied prices in accordance with its varied features.

Commercialization has always been a useful tool for success of a new product. It is used to create expectations among consumers regarding a new product and it leads to the success of the product and long-term stability of the company. Marketing tools shape the needs and wants of consumers, specifically those which are not physiologically based and are unlearned.

References

Baker, Michael. Product Strategy and Management, Second Edition. India: Pearson Education India.

McKinlay, Irma. (2007). Marketing, First Edition. South Africa: Pearson Education South Africa.

Vertygo Team. iPad Marketing Strategy. Retrieved August 22, 2010 from http://www.vertygoteam.com/ipad_marketing_strategy.php

Product strategy –

For the new web based company it is been seen as a service center which deals with providing web based services to the different clients depending on the needs and requirement of the target segment group.

Pricing Strategy –

Initially since the new web based company is in its introduction stages, the pricing will be at affordable rates in order to encourage the business clients to avail their services at being able to follow the strategy of price competitiveness.

Place Strategy –

Since this company deals with the non store kind of the retail format, cyberspace is what they need to buy at its initial stages which imply that the new web based company markets and promotes its products and services on an online mode. The company is also at a disadvantage with reference to the strategies it follows since it is a non store kind of a format and hence the important task is to be very careful in designing the web site which creates an impression for the end users.

Promotion Strategy –

The will have to market on the business magazines, business news channels, national newspapers etc…If need arises it can promote the local customers. But the main aim of the firm should be to find out which companies they need to target and cash on depending on which they would promote the business. Catalog marketing and kiosks are also very important and reliable in this case of creating publicity.

Budget –

The total budget that is allocated is $ 55000 as of now, out of which $5000 will be kept aside for their web development and around $50000 were kept for sponsorships and advertising and some sort of marketing campaign for the awareness of this new web based company. The following budget is been prepared as of now as a start to the whole marketing effort and depending on the requirements further budget will be allocated. Implementation/Action Plans:

Since this company is new in the arena of web designing companies, care should be taken with reference to the implementation and the action plans and programs that will be associated with the schedule of events. This is because the impression and the test marketing which the company will undertake should have effect on the overall awareness creation. The various sponsors also will be highlighted the features and the milestones of this firm to ascertain their chances of further success. Depending on the above three months response in the market, the management will think of extending the same with a few variations in the future.

In their marketing campaign, the new web based campaign will highlight the best projects they had undertaken and completed so that the recognition and brand image has been created.

Evaluation and Control:

This is a very crucial step in order to maintain a balance between the actual and the expected performance of the organization. The firm might go in for strategic control technique to check if the organization’s goals and objectives have been met so that the long term perspectives of the firm have been taken into significant consideration.

Along with the strategic control profitability control mechanism also will be beneficial for the firm to adopt in order to develop an understanding in the area of profits and the margin that it would attain in the process of designing a web based application for various clients. Periodically audit check will have to be carried out by the firm to meet up to the goals and the objectives and to analyze on the lacuna or loopholes that exists in the process of development.

Conclusion:

Taking in consideration all the above points with reference to the macro and micro environmental factors, identification of the goals and the objectives, understanding of the target market and the segmentation method in addition to the marketing plan which includes the various marketing strategies that have been developed by the company indicate a sense of planning and strategic formulation of ideas and concepts which are an essential requirements of any organization

References:

Business Resource Software, (2008), “Marketing Plan”, [Online], Available: www. businessplans. org/Market. html, [Accessed: 2008, May 16]. Business Resource software (2008).

“Market Segmentation. ” [Online], Available: http://www. businessplans. org/Segment. html, [Accessed: 2008, May 16]. Bmj, (1999),

“Political economy of Technology transfer “,[Online], Available: http://bmj. bmjjournals. com/cgi/content/full/319/7220/1298 , [Accessed: 2008, May 16].

Executive Summary

The alcohol, entertainment, packaging and non-alcoholic industries are among the rapidly growing industries in the world and therefore present many opportunities to companies like Anheuser-Busch, Inc. It is evident that modern businesses are faced with challenges as a result of ever changing business environment which is largely attributed to the effects of globalization. Therefore Modern businesses must formulate strategies that will ensure the success of there production activities in their respective industries. Intense competition has become the norm of all firms and therefore each firm wishing to remain competitive as well as international in scope must formulate workable marketing plans that are long-term in nature. Such workable marketing plans should be formulated in a manner that considers the available resources, strengths, weaknesses, opportunities and threats of that particular company. For these strategies to be efficiently and effectively carried out, prior marketing research should be conducted to avoid unnecessary failures in the future.

Introduction

Business environments keep on changing and businesses like Anheuser-Busch, Inc. often has to adjust to any changes in the market place. Such changes may be brought about by the concept of globalization or saturation of home markets among other factors. Therefore, through marketing research, Anheuser-Busch, Inc. must efficiently plan for its future by incorporating all the anticipated changes in business environment as well as ensuring that the target goals of the business are achieved with ease (Brassington and Petit, 2000). Most of the times businesses are faced with challenges like competition and therefore the management of Anheuser-Busch, Inc. must formulate viable marketing strategies that will ensure the expansion and sustainability of business operations.

Company Description
Anheuser-Busch, Inc. was founded in the year 1852 but research reveals that the company was first incorporated in the year 1975. The company has its headquarters in the United States of America, Missouri, and in St. Louis. Anheuser-Busch is reported to be among the largest firms that manufactures brews in the United Sates of America. The company is actually a branch of Anheuser-Busch InBev and research indicates that the company contributes to approximately fifty percent of sale of beers in America in the alcohol industry.  The company produces different kind of beers that include Busch, Michelob, Natural Light, Budweiser and Bud Light brands among others. Anheuser-Busch Inc. does not only produce alcoholic drinks but it has also specialized in manufacturing of non-alcoholic beverages for instance Malt beverages and liquors which are not alcoholic brands. Further the company is involved in provision of entertainment services to its clients as well as packaging services (Anheuser-Busch, Inc., 2008).

According to latest business report the company is considered to be among the leading market leaders in alcohol industry in the United States of America; for instance, in the year 2007, the company earned revenue of approximately seventeen billion US dollars. The company further is very crucial to the world economy in that it has an estimated thirty one thousand employees who pay taxes to the government. Anheuser-Busch, Inc. have embraced the concept of diversification; for instance in the US the company has a lot of subsidiaries e.g. in Virginia, Florida, New Hampshire, New Jersey, Texas, Ohio, New York, California, Georgia and Colorado among other states. (Anheuser-Busch, Inc., 2008).

Proposed Mission Statement
Business research reveals hat for any firm to succeed it must formulate a good marketing plan that must clearly state its mission statement. Such a statement describes the Anheuser-Busch, Inc.’s fundamental purpose in the surrounding society especially with regards to production of alcohol. Such a mission statement must clearly depict some essentials such as the purpose; under this, it is basically what the Anheuser-Busch, Inc. is producing and the reasons for its existence in the first place. Anheuser-Busch, Inc. basically exists to produce beers, nonalcoholic drinks, provision of entertainment services as well as provision of packaging which have become part of the modern norm of the contemporary business society. Therefore, the proposed mission statement for Anheuser-Busch, Inc. is to become the world class producer of quality beers and non alcoholic drinks as well as provision of excellent entertainment and world class packaging services that meets the needs of the customers.

Porter’s five forces
It is very important for the Anheuser-Busch, Inc. to use the five forces to ensure that it strategically position itself in a way that it become very competitive to make sure that it remain in business and also make and maximize profits. Managers of Anheuser-Busch, Inc. have a very important role in ensuring that they do enough analysis so that they employ strategies to make them make the best out of the business that they do. Porter’s forces can be analyzed to act as yard sticks for Anheuser-Busch, Inc. to position itself so as to do a profitable business as they face a very competitive and saturated environment that is very sensitive to changes. Therefore the management of Anheuser-Busch, Inc. has to consider the following factors; (Porter, 1985).

The closeness of substitutes
Substitutes are alternative products that have the ability to satisfy similar needs and give solutions. Substitutes in the alcohol market reduce the potential returns of Anheuser-Busch, Inc. since they place a ceiling on the prices offered for beers in the market. Firms that realize that products being offered bring a lot of profits look for substitutes products that can substitute so that they may also enjoy profits. Anheuser-Busch, Inc. face a big challenge since its rivals are coming up with products that compete very much with the existing company’s original products e.g. the introduction of Heineken to many markets around the world (David and Fred, 2008).

Due to research, many alcohol industries are discovering new products every day that are either more effective or sweet to the customers. This has become a very big challenge to Anheuser-Busch, Inc. since the market has become open and new discoveries are welcome every time. Customers will always be tempted to try the new drinks and services to see whether they are more effective and are made to believe that the newest products and facilities on the market are the best since they are more new and tested. Anheuser-Busch, Inc. must constantly try to sell its products by marketing them all the time and assuring their markets that its products and services it has are the best. Almost all alcoholic and non alcoholic products produced by Anheuser-Busch, Inc. have tested substitutes and it gives the sellers and the users a variety of choices to choose from and thus making it very hard for some products to be pushed.

Anheuser-Busch, Inc. is facing very stiff challenges since many alcohol manufacturing companies are opening up everyday with better supplies from substitute goods that make them appear to be cheaper than the others. For instance; customers will go to those companies with variety of substitutes so that they may get more cheap products and services that can meet their needs (McGahan, 2004).

The Intensity of Rivalry among Established Companies
Many firms including Anheuser-Busch, Inc. face a very competitive environment that has a big concentration of rival competitors making it a very competitive venture in business. Anheuser-Busch, Inc. compete with its rivals across al levels and try all strategies to ensure that they beat its rivals and try to do extensive marketing and innovation to attract more customers every day. There are many established companies that are more organized and have better strategies than the new ones that come up and therefore have a competitive edge over the others. An established company will mean having a well developed network that has a good client base and that is supported by customer loyalty and therefore locking out the new firms that try to make an impact by trying the existing markets. Anheuser-Busch, Inc. gives a big challenge to the new companies in the market that try to make their products known. Even though substitute products are received in different industries, it becomes easy for the established firms to push customers to start using their new products in the market since they have a name in the market and customers are loyal to them. Customers will always be pulled to go to the already established firms like Anheuser-Busch, Inc. that they are used to them and will always feel that their services and products are the best. They also believe that products and services that are offered in the established firms are the best and all they offer are the best to take care of their needs (Porter, 1985).

The bargaining power of suppliers
Suppliers take advantage of their unique supplies to ask and bargain for what they want and enjoy the monopoly and charge expensively for the products or services that they offer. Customers are very sensitive to any changes that may affect them that are caused by the bargaining power of the suppliers. Suppliers are a competitive threat to Anheuser-Busch, Inc. and its competitors because they can raise the prices of new and the old supplies and therefore making the customers to try substitute products that can satisfy the same need. Suppliers may cost the Anheuser-Busch, Inc. a lot of financial constrain if they switch and fail to supply their products as it is involving to get new and reliable suppliers that can give quality and be efficient all the time (David and Fred, 2008).

Anheuser-Busch, Inc. must try as much as possible to bargain well with their suppliers so that it may get quality products at the right price so that they may also sell and price their products well in relation to those of the competitors so that they may not loose customers to the other firms. Suppliers will have more power if they are few or alone in the market and will give their products at a very high price and will affect the sales of the firms in the long run. It is very important for Anheuser-Busch, Inc. to have suppliers that can supply substitute products that are more or less the same so that their customers will not run to the other outlets that have the products that they need. In the event that the suppliers reduce their products quality and raise the price of their products, it will be a great competitive challenge to the Anheuser-Busch, Inc. and other firms that offer the same services. The determinants of the suppliers power of Anheuser-Busch, Inc. includes: suppliers concentration in one particular place that is central in location, volume of suppliers and finally the costs related to the total purchases that they do. The suppliers ensure that they take advantage of their strengths to bargain and register as much profits as possible and make the buyers of their supplies to accept what they offer and fix high prices (Porter, 1985).

The Risk of Entry by Potential Competitors
The new competitors enter into business with an intention to bring new capacities that never existed before so that they may give competition to the existing firms. Every new entrant into alcohol, nonalcoholic, packaging and entertainment business is a big threat to the existing firms since they may pose a big danger when they come and take the existing customers by intimidating them with good attractive services and also set their businesses in strategic points that will attract more customers. Such companies are very profitable and has therefore it has been attracting very many new entrants who perceive it as a good profitable business that has a lot of assurance since the customers will always need drinks and other services offered. Their main interest is to capture big market share that exists so that they make more sales and therefore make profits. Anheuser-Busch, Inc. faces a lot of competition from new entrants who come up with new and customer satisfying services and products. They are few barriers to the new entrants in this field and many businessmen are thinking of opening up one stop firms that are in strategic positions to attract customers. There are many barriers that might be faced by Anheuser-Busch, Inc. when entering new markets. They include the following: government policies on alcohol and entertainment, economies of scale, capital requirements that are needed to start a company, brand identities and reactions from firms in the respective industry.

The Bargaining Power of Buyers
This is the marketplace of outputs. Customers of beers, nonalcoholic drinks, and entertainment and packaging services like those of Anheuser-Busch, Inc. puts the businesses a lot of pressure since they are very sensitive to any change in prices and are always ready to window shop and find where prices are relatively cheap. The availability of substitute products in companies has made it very challenging for all those who run these businesses and are therefore supposed to learn from the behavior of their customers so as not to scare them to their competitors and therefore reducing their profitability. Many firms including Anheuser-Busch, Inc. give room for their customers to bargain and make the competitors to be on toes. It is very important for Anheuser-Busch, Inc. to highly depend on market intelligence so as to be very strategic in its pricing strategies since there are many firms that are ready to reduce their prices by negligible amount that can attract customers from their competitors.

Buyers are ready to run into substitute products that are being marketed everyday due to the changing technologies that are leading to cheaper and quality production of substitute products. Advertisers are taking advantage of the sensitivity that the buyers have to market new products that hit the market daily. Anheuser-Busch, Inc. should have a variety of products and services in its premises to pull all the customers and reduce the customers from moving to its competitors who offer various products and services in different prices. Since buyers are the ones that ensure that there is continuity of business, Anheuser-Busch, Inc. should learn and be very sensitive to the changing tastes and preferences in order to win buyers and also ensure that it remain loyal to them since the concentration of many firms is a big threat (Daniels and Caroline, 1993).

SWOT Analysis
This will involve analysis of both internal external environments by Anheuser-Busch, Inc. before investing in the target market. SWOT stands for strength, weakness, opportunities and threats. Both strengths and the weaknesses falls under the category of internal factors while opportunities and threats comprise external factors.

Strength
Strength in this perspective can be recognized as that unique ability possessed by a company and if such company makes use of such a prospect it can do well and can achieve a higher rating in terms of competitiveness in the industry. Much strength is posed by Anheuser-Busch, Inc. and it’s only through utilization of such strengths that it will do well in the market place. Since Anheuser-Busch, Inc. is among the top market leaders in the alcohol and entertainment industry, research indicates that it has a strong brand name of its products. Research reveals that customers often prefer products that they are familiar with and therefore the company’s management should focus on producing only quality products in the existing market as well as in the new markets by taking advantage of its common trademark. Anheuser-Busch, Inc. is a big company with many subsidiaries in many countries and therefore receives revenue from all these subsidiaries thus giving it the advantage of having an excellent financial base when compared to other firms who are new in the market. Therefore the company has to utilize such strength by diversifying in many countries as possible and in the process provides incentives like offering products at considerable cheap prices than those of its competitors as well as providing discounts and producing high quality products (Anthony, 1998)

Weakness
A weakness in this perspective can be defined as any element of a business that probably will prevent the success of laid down goals by the business and more often than not regarded to encompass the businesses assets, capabilities and resources which are not fully applied in attainment of the said objectives. Anheuser-Busch, Inc. though it is a market leader has some weaknesses too and such weaknesses should be addressed by the management in order to enhance the sustainability of the business. A good example of a weakness faced by Anheuser-Busch, Inc. is that of poor organizational culture whereby the way of carrying out activities has been questioned by many critics and particularly the way of competition it is engage in. It is alleged that the company sell and manufactures products which do not meet specification required by bureau of standards in some other target markets. There is need for the management to look critically this issue in order to avoid spoiling the name of the company, for example consumers may prefer other products because it will be viewed that the company is not sensitive to its consumers. Such weakness can also lead to government authorities closing down the existing subsidiaries and refusing to allow for opening of new branches. The other weakness is that of poor motivation of employees and research indicates that despite the fact that Anheuser-Busch, Inc. being among the top companies in the world, remuneration of its staff is considered not to match with the company’s name and its overall productivity in that they are still paid low wages than expected. Unless the management acts accordingly such weakness may lead to employees seeking greener pastures elsewhere in the industry. Such labor turnover rate may affect Anheuser-Busch, Inc. negatively in future in that those employees may relocate to Anheuser-Busch, Inc.’s rivals and thus leak information that may make the company lose in the market place in terms of market share and growth (David and Fred, 2008).

Opportunities
An opportunity in this perspective is anything that provides Anheuser-Busch, Inc. with distinctive advantage over its rivals in the market. It is anything that if the company maximizes it will lead to enhancement of achieving of goals. Because of globalization there is emergence of new potential markets all over the world. The company being well known should take advantage of this by ensuring that they reach to such new markets fast in order to attain large market share. The company should therefore take this advantage by diversifying to many countries particularly developing countries which they are now witnessing immense economic growth in all sectors of the economy including alcohol and entertainment industries. Because of the strength of strong and well built financial base the company has the opportunity of producing new products in the market for example new bears and other non-alcohol products without straining its budget. Such products should be unique and of high quality as compared to that of other firms in the industry in order gain significant market share. The company has an opportunity too of undertaking vigorous marketing campaigns and promotional activities when selling such products and therefore it may be viable to produce new products for long-term purposes.

Threats
A threat is looked upon as any happening which if not handled well might probably prevent the success of Anheuser-Busch, Inc.’s purposes e.g. consumers waning real income and rivalry along with other proceedings believed to cause risk to the procedures of the business undertaking. Anheuser-Busch, Inc. is essentially faced with powerful opposition in production of beers as well as in non-alcohol drinks because a lot of firms have chosen to join the marketplace for the reason that it is regarded as profitable. Another threat faced by Anheuser-Busch, Inc. is that of poor management in some other subsidiaries. Reports suggest that the staff of the company in other branches of the company may have been recruited on discriminative basis and therefore they have been incompetent in fulfilling their tasks. This threatens the company because many a times some branches have been closed because of misappropriation of funds due to poor management techniques. Such event is very risky because it affects the overall market share of the company in the market place (David and Fred, 2008).

Recommendations
Marketing Strategy
A marketing strategy is a plan of action in which Anheuser-Busch, Inc. will have to utilize in order counter the competition from its rivals and in the process attain a significant market share in the market arena. Since Anheuser-Busch, Inc. is a big multinational firm in the world it has in the past chosen to compete across entire market in market. However, this strategy has not gone on well with the company in that in some places particularly in Europe it has lost ground in terms of market share. Therefore, the best marketing strategy of Anheuser-Busch, Inc. is to compete in particular segments only that will perform better more than its competitors. To achieve this market segmentation should be carried out by Anheuser-Busch, Inc. prior to marketing activities (Grant, 2005)

Market segmentation
Market segmentation involves identifying those target markets that the company will do well. It is only through this strategy that Anheuser-Busch, Inc. can ensure its survival ability in the business. This is because through market segmentation the company will only specialize in few and potential target markets that will yield good returns and also it will require little resources to compete in the segments than competing across the entire market. The management of Anheuser-Busch, Inc. should ensure that the target market selected provides an opportunity of accessing the market information required in order to save time and financial resources.

Market Penetration Strategies
The company too may focus on market penetration strategies whereby it will be involved in manufacturing of new beers and other non- alcoholic products for both the existing and new potential markets in the industry. Such a strategy if it succeeds will lead to large market share in that the company will maintain the old as well as attracting the new customers (Bagley and Savage, 2006).

BCG Matrix Concept
Identification of portfolio plan too for the company will be an important strategy too for the company in that the management will be able to identify those subsidiaries that are not performing well in the market. Such a strategy involves classifying the branches of the company in to four groups as follows. The first group is that of a star which symbolizes a branch that does well and is said to have large market share in a growing market. The strategy adopted is that of building the business unit. The other group is question mark or problem child, which is a branch of the company characterized by declining market share in expanding industry. The strategy is that of harvest or divest to other markets. The third group is of cash cow which is characterized by low market share but in a growing industry. Cash cow normally sustains other branches because its cash flows are constant. The strategy associated with cash cow is harvest. The fourth group is that of the dog whereby the business unit in question has low market share in a declining industry. Such a business require a lot of financial resources and time thus losses are experienced. The strategy for such strategy is to divest to other branches or business units in order to avoid losses (David and Fred, 2008).

Implementation, Evaluation and Control
Under this, implementation will simply require the company to carry out its laid down tasks in order to achieve its objectives. Implementation will involve Anheuser-Busch, Inc. putting in practice its planned activities as well considering identifying alternatives and choosing from those alternatives the best options which yield excellent outcomes for the company. The use of advancement in technologies for example the use of Just in Time and Total Quality Management approaches in order to be efficient and effective in its undertaking. Implementation of the market strategies adopted will require both management and the staff of the Anheuser-Busch, Inc. to be committed in ensuring that all the set objectives are achieved and carried out in line with company’s policies and regulations as well taking in to considerations any legal considerations from the external environments (Cullen and Parboteeah, 2005).

The implementation process will entail the company allocating resources to the strategic business units to carry out the marketing strategies adopted. Although Anheuser-Busch, Inc. is said to be financially strong, this does not imply that the management should just allocate resources arbitrary to the target market. Prior research should be done before implementation that will reveal the amount of resources required to implement the strategies adopted by the company. The use of financial forecasting techniques such as those of seasonal trends and cyclical variations should be utilized by the company’s staff in order to determine the appropriate amount of funds, human resource and other materials required for the successful completion of implementation of the adopted marketing strategies. For example the company should aim to be a low cost producer but at the same time ensuring that the profitability levels and cash flows of the company are not adversely affected (David and Fred, 2008).

Evaluation should also be done constantly by the management of Anheuser-Busch, Inc. The target markets that the company gets into should be constantly assessed in order to know there productivity. Such evaluation should be based on profits levels that each target market identified contribute to the company. This is a stage where management identifies the strategic business units that are viable as well as those business units that are considered to be liability to the business i.e. those that do not contribute to profitability of the business but generate losses despite the fact that they are funded and managed well by the company. Under control strategy, the management of Anheuser-Busch, Inc. should constantly monitor the activities of the company in terms of its productivity. It is the duty for the management concerned to ensure that all production activities are in  order, the human resource recruited are competent and that the products manufactured are availed to the market without further delay. Controlling activities will also provide an opportunity to the company to compare the actual results with the expected outcomes and thus identify the areas that need to be addressed urgently (Hilltop and Sparrow, 1994).

Conclusion
We can therefore conclude that for firms to be successful in the market place it must therefore prepare workable marketing plans that will eventually ensure the success of the company in the long-term. Marketing strategies adopted should be those that go in line with the company’s mission and vision’s statements as well incorporating the issue of corporate social responsibility so that the strategies implemented are of benefit to the company, its employees and the surrounding society. Anheuser-Busch, Inc. should also utilize the opportunities that arise in the market place particularly in the alcohol industry by ensuring that it fully utilizes its strengths to accomplish those opportunities. Since modern businesses are faced with stiff competition as a result of globalization, Anheuser-Busch, Inc. must carry out marketing research in advance in order to be informed with all the marketing activities in the market place thus formulating market plans that will ensure profitability in the long term.

Epilogue and Further Research
Every business including Anheuser-Busch, Inc. is faced with challenges and it has to fully adhere to market regulations in order to avoid unfair competition. The concept of globalization cannot be written off either since many firms including Anheuser-Busch, Inc. has diversified to various markets and there are problems and opportunities associated with such globalization. Therefore Anheuser-Busch, Inc. should formulate strategies that are considered global in nature in order to meet the current expectations of the customers in the target customers. Such strategies like build, harvest or divest should be considered by Anheuser-Busch, Inc. when assessing the performance of its products in its target markets. Management functions of planning, directing, leading and controlling should be adhered to by the management of Anheuser-Busch, Inc. in order to significantly improve the operations of the company by achieving the required targets particularly that of sales increment of beers, nonalcoholic drinks, and entertainment services.

The management of Anheuser-Busch, Inc. should focus in the future and particularly focusing to both new and existing customers’ needs and expectations. From this study, it can be deduced that Anheuser-Busch, Inc. is a customer-focused business. Therefore the available knowledge of customers and markets should facilitate Anheuser-Busch, Inc. to construct and develop an extensive range of its products that are considered relevant to its target customers. Also Anheuser-Busch, Inc. should utilize the concept of marketing research to target and build up its potential markets in order to become an international leader in the market (Brandenburger and Nalebuff, 1995).

Reference
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