10024767 marketing rll case

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MSc. FOUNDATIONS OF MARKETING

(MAN4146M)

MODULE LEADER – MARTIN HALEY

10024767UB Number

FULL TIMEAttendance Mode

11th OF JANUARY, 2011.Date of Submission

Statement of AuthenticityI certify that this assignment is a result of my personal work and does not exceed theword count notified.

Word Count: 1473(Excluding Appendices/Bibliographies, tables and diagrams)

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EXECUTIVE SUMMARY:-

In brief the purpose is to market a new innovative hot chocolate product in a food-beverage

industry for RLL. The product is a hot chocolate drink with extensive flavour collection.

RLL Company is one of the largest market share holders in the tea industry in UK. It is best known

for its tea and coffee sector exploits, RLL, is certainly one of the giants in the hot drinks industry of United Kingdom.

Today, RLL has an excellent reputation in the hot drinks industry and has ambitious plans to

further grow the brand. In the recent years the hot drinks industry has seen constant growth with

an 8.1% increase in the years 2005-2009. Moreover, the forecasted future sales indicate a 10.8%

increase in the industry for the next five years.

“Silk”, a hot chocolate drink is the first food-beverage industry trial by RLL with a view to expand

the brand in all genres of the hot drinks industry, following their exceptional exploits in the tea and

coffee market.

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INTERVIEWEE REACTIONS :-

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Interviewee(s) 1 2 3 4 5 6

/Question(s) Interviewee 1,

Female, 21 yrs.

Old

Interviewee 2,

Female, 46 yrs.

Old

Interviewee 3,

Male, 66 yrs.

Old

Interviewee 4,

Female, 66 yrs.

Old

Interviewee 5,

Female, 46 yrs.

Old

Interviewee 6,

Male,48 yrs. Old

1 – Do you drink

Hot Beverages?

I like a nice

chocolate drink

now and again

as a bit of an

indulgence youknow to pamper

myself.

Yes I drink coffee

a lot at work and

at home

Yes I’m a tea

drinker –can’t

get enough of

it

Oh yes I love a

cup of tea when

I get up in the

morning –sort of

gets the oldbody going. By

the way I also

love a nice

chocolate drink

before I go to

bed –you know

the sort, the one

you make with

milk. Sort of

relaxes you

Yes I drink a lot

of tea

Yes I drink tea in

the main but I

do like those

chocolate drinks

now and again

2 – Why do you

drink such

Beverages?

As I said I like a

nice chocolate

drink as a real

indulgence –

when I’m not on

a diet though

I drink coffee

because it gives

you a lift during

the day –it must

be the caffeine

I don’t know

just love the

taste –I’ve

always drunk

since I was a

nipper in the

war

I just said I find

tea refreshing

and milky

chocolate

relaxing

Don’t know just

always have but

I’m changing

the type of tea

to a herbal

variety no

caffeine in it

I’ve always

drunk tea ever

since I was a

nipper, but I like

to indulge

myself now and

again with a

nice milky

chocolate drink



INTERVIEWEE AUDIT :-

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Table 1: Spread-sheet analysis showing the inte rviewees responses to the Silk Marketing R esearch :-

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Interviewee(s) 1 2 3 4 5 6

/Question(s) Female, 21 yrs.

old

Female, 46 yrs.

old

Male, 66 yrs.

old

Female, 66 yrs.

old

Female, 46 yrs.

old

Male,48 yrs. old

1 – Hot

Beverages?

Chocolate Coffee (Work

and Home)

Tea Tea &

Chocolate

(mornings and

evenings)

Tea Tea & Chocolate

2 – Why Hot

Beverages?

Self-indulgence Stimulant Taste, Habitual Tea –

Refreshing,

Chocolate -

Relaxing

Habit –

Changing type

to herbal

Habitual, Milky

flavour - before

bed,

indulgence.

3 – Shopping

Areas?

Supermarket/Wee

kly

Secondary

buyer- Jill,

coffee shop

Secondary

buyer – Gillian

at the Co-op

Corner shop Local Health

Food Store

Supermarket,

secondary

buyer – Wife

(Ros)

4 – Influential

Aspects?

Thick, Rich

flavour, Smooth

texture,

Unsweetened,

Diet versions

Coffee Aroma Strong taste,

Brand loyal

(red-label) and

Gillian

Brand –

Twinning’s and

Cadbury; Add-

Milk type of

chocolate

Taste, Non-

Caffeine variety

Price - Anything

on offer, Try

anything new

5 – Would you

consider buying

called “silk”?

Yes No No No- Tea, Yes -

Chocolate

Yes - Chocolate,

No - Tea

Yes



INTERVIEWEE AUDIT:-

Table 1 .1 : Spread-sheet showing the (Agree/Disagree/Interesting )bifurcations to the Silk Marketing

Research:-

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Interviewee(s)

/Question(s) Agree Disagree Interesting

1 – Hot Beverages? Congeniality Factor of Hot

Beverages in all the cases.

Discrepancies in the Choice of

Beverages (Tea, Coffee & Hot

Chocolate)

Motivational Interests

( Indulgence, Self Pampering,

Relaxation), Locations (Work

& Home), Health

Consciousness ( Rejuvenation

& Diet Factor), Heavy/LightDrinkers

2 – Why Hot Beverages? Personal Welfares (Real

Indulgence, Lift during a day,

Relaxation and Refreshing)

Dissimilarities in selection of

beverages (Tea, Coffee & Hot

Chocolate).

Alteration from tea to herbal

variety, Childhood Habit, Diet

Factor

3 – Shopping Areas? Supermarket, Coffee Shop,

Local Health Shop, Co-op &

Corner Shop

Consumers and Buyers differ, Location (Supermarket,

Coffee Shop, Local Health

Shop, Co-op & Corner Shop) &

Situation (Secondary buyer)

based modifications.

4 – Influential Aspects? Texture, Taste, Flavour, Aroma

and Brand Image

Personal Beliefs (Offers &

Discounts) and Choice

Criteria’s

Motivational Differences

(Offers, Anything New in the

market)

5 – Would you consider

buying called “silk”?

Yes, if chocolate drink “Silk”, Name influences the

consumers to buy or reject

the product



INTERVIEWEE AUDIT : - SEGMENTATION 1:- INTERVIEWEE AUDIT: - SEGMENTATION

2:-

Table 2: Drinkers and Non Drinkers of Hot Chocolate :- Table 3: Demographics of Hot

Chocolate Drinkers:-

Gender Sectioning :-

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Hot Chocolate

drinkers

Non – Hot

Chocolate

drinkers

1– Why Hot

Beverages?

Self-indulgence,

relaxant, Milky

flavour

Stimulant,

taste, habitual

2 – Shopping

Areas?

Supermarket,

corner shop,

secondary

buyer

secondary

buyer, coffee

shop, health

shop, co-op

3 – Influential

Aspects?

Flavour,

texture, diet

version, price,

taste

Aroma, Strong

taste, brand,

4 – Would you

consider buying

called “silk”?

Yes No

Female Male

1 – Why Hot

Beverages?

Self-indulgence,

relaxant,

Milky flavour,

taste

2 – Shopping

Areas?

Supermarket,

corner shop,

secondary buyer

supermarket,

secondary

buyer,

3 – Influential

Aspects?

Flavour, texture,

diet version,

price, taste

Taste, price

brand,

4 – Would you

consider buying

called “silk”?

Yes Yes



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Interviewee(s) MALE FEMALE

/Question(s) Agree Disagree Interesting Agree Disagree Interesting

1 – Hot

Beverages?

Affirmative on

the consumption

of hot beverages

Different

Preferences of

hot beverages

Heavy hot

beverage

drinkers

Unanimous

Agreement

Variations in

Choice of

Beverages (Tea,

Coffee,

Chocolate)

Heavy/Light

Drinkers

2 – Why Hot

Beverages?

Milky Flavour,

Taste

Situational

Differences

(Drinking since

nipper at war,

Childhood

Habit)

Indulgence,

Personal

Satisfaction

Mental

Upliftment

Choice

Criterions

(Indulgence &

Taste)

Habitual Change

,

Diet Factor

3 – Shopping

Areas?

Secondary Buyer

(Wife is the

primary buyer)

Supermarket

and Co-op

Low

Involvement in

buying,

Dependency on

primary buyer

Primary Buyers Dissimilar

Locations

(Supermarket,

Coffee Shop,

Corner Shop)

Weekly

Purchase,

Shop timing

preferentialism

4 – Influential

Aspects?

Primary Buyer,

New product,

Brand image,

Taste

Choice Criteria

(Taste, Brand

image, Price)

Majority

Influenced by

Taste

Choice Criterion

(Brand Image,

Aroma, Taste)

Health

Consciousness

and Locations

(Work & Place)

5 – Would you

consider buying

Not a suitable

name for tea

Purchase

(Preferences)

Choice Criteria

of Self Image,

Not an apt

name for tea or

Circumstantial

differences in

“Silk”, as a

name



Table 3.1: Demographics of Hot Chocolate Drinkers:-

Gender (Agree/ Disagree/ Interesting) Tabular Representation:-

INTERVIEWEE AUDIT: - SEGMENTATION 3:-

Table 4 : Demographics of Hot Chocolate Drinkers:-

Age Distribution:-

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Young (15-24) Middle-aged (45-54) Old (65+)

1 – Why Hot Beverages? Self-indulgence Milky flavour Relaxing

2 – Shopping Areas? Supermarket Supermarket, secondary

buyer

Corner shop

3 – Influential Aspects? Flavour, texture, diet version Price, promotions Brand

4 – Would you consider

buying called “silk”?

Yes Yes Yes



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Interviewee(s

)

Young (15-28) Middle Aged (45-54) Old (65+)

/Question(s) Agree Disagree Interesting Agree Disagree Interesting Agree Disagree Interesti

ng

1 – Hot

Beverages?

Drinkers of

Hot

Beverages

No

Informati

on

Self-

Pampering

&

Indulgenc

e

Analogous

Likability

for Hot

Beverages

Choice of

Beverages

(Tea,

Coffee, Hot

Chocolate)

Heavy

Drinker,

Locations

(Work &

Home)

Affirmativ

e on

drinking,

primarily

tea

One

preference

for

chocolate

drink

Heavy

drinkers

2 – Why Hot

Beverages?

Indulgence No

Informati

on

Diet

Factor

Rejuvenatio

n (Lift

during a

day),

Indulgence,

Milky

Flavour

Circumstan

ces

(Childhood

Habit,

Nipper at

War)

Change

from Herbal

to tea

Taste,

Refreshing

Choice of

beverage

Drinking

Since

Nipper at

war

3 – Shopping

Areas?

Supermark

et

No

Informati

on

Weekly

purchase

with

grocery

Buying

from

various

outlets

Locations

(Supermark

et, Corner

Shop,

HealthShop)

Difference

in the

consumers

and buyers

Various

Outlets

Locations

(Supermar

ket, Co-

op)

Shop

Timings

4 – Influential

Aspects?

Flavour,

Texture

No

Informati

on

Less

Sweet,

Diet

friendly

version

Personal

Beliefs

Various

Beliefs

(Aroma,

Offers,

Taste)

Health

Consciousn

ess

Brand &

Taste

Dissimilar

Brands

(Red

Label,

Twinning)

Influence

d by wife



Table 4 .1: Demographics of Hot Chocolate Drinkers:-

Age Distribution (Agree/ Disagree/ Interesting) Tabular Representation:-

INTERVIEWEE AUDIT: - SEGMENTATION 4:-

Table 4 : Demographics of Hot Chocolate Drinkers:-

Behavioural Segmentation :-

Hot Chocolate drinkers/non-

drinkers

Interviewee

(Young Female)

Interviewee

(Old Female)

Interviewee

(Middle Aged Male)

Benefits sought Self-indulgence, smooth

texture, rich flavour, diet

version

Relaxing, convenience,

quality, brand, milky flavour

Milky flavour, price

promotions

Purchase occasion Self-buy, weekly at the

supermarket

Self-buy, corner shop Secondary buy – Ros, wife,

supermarket

Purchase behaviour No information given Solos buyer Innovator – buy anything

new

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Usage Light drinker Heavy drinker Light drinker

MARKETING MIX:-

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Gender Age Behaviour

Female Male Young

(15-28)

Middle-

aged (45-

54)

Old

(65+)

Benefits

sought

Purchase

Occasion/Behavi

our

Usage

Product The profound

female

sectionsought

features like

smoothtexture, rich

flavour, milky

and diet

variety of HC

that did not

differ in taste

and quality

with the non-

dietary HC.

And sought HC

to help relax.

Silk is a good

brand nameand is

acceptable by

all female

segments.

The male

segment

are seek for

a drink that

makesthem relax

and also

sought a

milky

flavour

variety

A smooth

texture,

rich in

flavour, diet

versions of HC that did

not differ in

taste with

the other

versions of

HC

A milky

flavour

Is driven

by brands

and liked

an add-

milkversion of

HC

rich in

flavour,

relaxing,

smooth

texture,diet

versions,

indulgence

Solos buyers and

innovators

The Young

Female and

the Middle

aged man

are relativelylight

drinkers. In

comparison,

Old female

section

consumes

more hot

chocolate

and are

heavy

drinkers.

Price No information

was given

This

segment

No

information

Price

discounts

No

informatio

Price

discounts

No information

was given

No

information



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CUSTOMER AUDIT:-

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i) Who is important? For the purchase of Silk, the buying decision may be

individualistic or could be based on collective decisions

made by a family and it can be described in 5 ways as

the i) Initiator ii) Influencer iii) Decider iv) Buyer v)

User.

The Female group seems to possess all the attributesand therefore their buying decisions are individualistic.

In the case of the Male group, the wife is the main

influencer and buyer and the middle aged man could

be the initiator and decider and the couple are the

users of the product.

ii) How do they buy? This is known as the decision making process starting

from Identifying the problem to information search

evaluation then purchase. The consumers were more

influenced by the flavour and self-indulgence. Male

Segment is more interested in what was on offer but

all the segments are interested in the flavour and

texture since hot chocolate is a low involvement

commodity and purchase can easily be influenced by

emotions. Quality is essential.

iii) What is their

choice criterion?

The consumers choice criteria can be classified

into the 4 types: - Technical, economic, social

and personal.

Technical – Taste - e.g. Female who loved Hot

Chocolate for the smooth texture and rich flavour.

• Reliability

• Performance

• Convenience

Social – Price - e.g. Male who would buy when thereare promotion and affordability

• Value for money

Economic – Status - e.g. Female who was brand-

oriented

• Social belonging

Personal- Self image

• Ethics

• Emotions



INTERNAL AUDIT:-

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Men Human Resources have always been a point of

reckoning for RLL. In the past, as well as today it

holds firm with skilled operational departments

such as the R&D, NPD and Sales. RLL also

possesses an eminent management andproprietary team with the existence of Managing

Director, Sales Director, Group Finance Director,

Production Director and Marketing Director.

Money RLL possesses an undisputedly resilient financial

background. It is an existing market leader in the

tea industry with average sales revenue of 170.3 M

pounds and 26% market share mentioned in thepre-budget report. Its tea brand GP Tops also has

an inevitable 98% awareness in all genres of

customers signifying its strong brand image.

Moreover, the marketing director has also

confirmed the company to be equipped with skills

and resources for the launch of their new product,

“Silk”.

Machine The production director affirmed the unit’s ability to

incorporate an additional line for Silk and the cost

amounts to approximately 1M pounds which will

cover the cost of production, packaging and design.

Marketing – 4p’s Product– RLL possesses an intriguing product

range of market leading brands such as GP Tops

(Tea Bags) and Instant Tea. “Blue Mountain” gives

positive signs with a 54.68% increase in last 3

years in the coffee sector. It is a renowned high

quality brand with only the food beverage sector to

be ventured. “Silk”, thereby will be a great addition



COMPETITOR AUDIT:-

FRAMEWORK: - PORTER’S FIVE FORCES

➢ Entr y Barriers : -Penetration in a new market always has barriers to entry. Food-

Beverage market comparatively also possesses barriers but on a low count. It has

threats from huge companies who can venture in the food-beverage market

possessing all the resources justifying it. The brand also has an easy distribution

channel access.

➢ Supplier power : Suppliers are believed to be highly reliant on retailers which

clearly state the presence of numerous suppliers in the market. Any other specific

information is not mentioned in the case.

➢ Rivalry within industry : “Silk” as a product has to counter entry barriers as it is

a new entrant in a competitive market. Brands like Nestle, Wander and KJS who

possess majority of the market share will be an obvious barrier. “Silk” is an

undifferentiated product backed by the brand image of RLL but still has to

contend with occurrences such as Price Wars, Retaliation from existing brands.

➢ Buyer power :Buyer power is medium in the present scenario. On one hand,

buyers have the edge by knowing that the distribution is heavily reliant on the

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retail sector and also the threats of retailer’s integration into the industry. But, the

impact of our brand on the market leaves them with no choice but to showcase

our brand especially with limited food beverage producers in the market.

➢ Substitutes :The threat of substitutes always surrounds the marketing existence of

a new product. There is a direct impact of any price variation on the other genre

of beverage. Moreover, the switching cost possessed is also low and in such a

susceptible market the customer willingness is very vibrant. Price also is a very

decisive factor in the longevity of the product as low involvement products are

always price affected.

MACRO AUDIT:-

PEST:-

Political/Legal Force s:-

➢ Political Forces No specific information provided in

the case study

Economic Forces :-

➢ Economic growth The economic breakdown in the

recent years has caused major issues

in the market stability. The GDP has

considerably fallen leaving all the

markets in a state of turmoil.

Government should initiate proper

measures against this negative notion

and help companies to revive

themselves out of the situation.

➢ Unemployment and Recession Unemployment also stays a deciding

factor in the purchase of the product.

Government incentives can create

new ways to combat this problem and

thus enable consumers to still buy our

products.

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Ecological/Physical/Environmental Forces:-

➢ Environmental Regulations Environmental issues also affect the

existing marketing decisions. The

foremost issue is of the carbonemission which causes trouble and the

people agree there purchasing

activities to be affected by the green

factor. It also has a positive impact on

companies as the less energy

consumed the less money to be paid.

New pest management legislation in

Europe could result in crop production

shifting to other countries and pricesfor commodities shooting up. This may

affect the cost of production of

beverages in RLL.

Socio-Economic Factors:-

Health consciousness Staying healthy and fit is the

notion at full flow these days.

People are much more aware to

avoid problems such as obesity

etc. and stay fit. It is also a

fashion fad to be slim and

thereby there is an increase in

the demand for diet versions.

RLL can leverage on this

opportunity and create a

healthier Hot Chocolate that will

appeal to the market.

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Population growth rate and age distribution The age group of 25- 54 is the

one to be targeted with an

average concentration of 62.75%

usage.The age distribution is

concentrated towards the age

band of 25- 54. And our targetmarket 15-24 – 12%, 45- 54 –

13% and 65+ - 4.4% totalling

about 29.4% of UK population.

Focusing on these target

markets will help grow out

market share and the product

sales

Technological Factors:-

Marketing RLL needs to look at the various

technological options available in

the market for boosting the

existence of the product.

Moreover, they can also use e-

facilities for an expansion and

customer database maintenance

Research & development RLL should needs to keep

researching on new technologies

and products and any new

innovation discovered can lead to

having a competitive edge over

rivals and vice versa

BUSINESS MISSION:-

“RLL is an esteemed organization and a market leader in the tea

industry. It acquires about 31% of the hot drinks market share. The

plan is to launch a new product named “Silk” in the food-beverage

industry and to gain a substantial brand share of 0-8% through

advertising, sales and NPD in a span of 3-5 years. It is also a

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multinational food company aimed at continually providing improved

premium products to its esteemed customers globally.”

MARKETING AUDIT:-

RLL is currently a major player in the tea sector in Hot drinks Industry and has achieved it through

high marketing orientation, high quality brand etc.

INTERNAL MARKETING AUDIT

EXTERNAL MARKETING AUDIT: - It includes two subsections namely

1) MACROENVIRONMENT: - PEST (Already discussed above)

2) MICROENVIRONMENT:-

Market Size:- In the year 2009, RLL occupied 31% of the hot drinks

market share in U.K, dominantly so the tea industry

comprises with a market size of 26%. It acquires a

meagre 5% market share in the coffee industry in 2009,

but its coffee brand “Blue Mountain” has shown a

staggering growth of 54.68% The food beverage

industry currently sections 8-10% of the hot drinks

industry with a steady growth.

Growth rate:- There has been slow but constant growth in the food-

beverage industry. The involvement of comparatively

less number of competitors in this market has not made

it outstandingly visible but it acquires a significant 8-

10% of the hot drinks industry and is on constant

increment year after year.

Market

trends:-

Market trends keep changing according to the number of

competitor increment/decrements. Price fluctuations

also cause numerous market changes. Social trends are

also of special mention in the case being held

responsible for frequently changing market trends.

SITUATIONAL ANALYSIS:–

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SWOT Analysis:-

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Strengths:-

1. Well established brand name

2. High quality brand of products

3. Price leaders

4. Strong relationship with retailers

5. Financially strong

6. Highly marketing oriented

7. Sustainable growth rate

8. Resourcefully Equipped

9. Customer Knowledge

10.Low Marketing cost compared to

competitors

Weaknesses:-

1. Heavily reliant on the retailers

2. Undifferentiated product

3. Weakest link in the competitor

analysis is in the area of New

Product Development.

4. Lack of Involvement in the food

beverage industry

Opportunities:-

1. Untapped emerging market

2. Increasing sales growth in the food

beverage industry

3. Weakening demand for substitutes

4. Undeveloped products and brands.

5. Low level of competition in this

sector

6. Lack of interest of the competitors

in product development

7. Increasing trend of Instant drinks

8. Positive response of people on the

product name “SILK”

Threats:-

1. Strong competitors e.g. Nestle,

KJS

2. Own Label products

3. The health consciousness

4. Prolonging economic recession

5. Potential increment in the

number of competitors



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ANSOFF MATRIX :-

Existing Markets New Markets

Existin

g

Produc

ts

Market Penetration

1 - Utilising our high marketing

orientation to the maximum

2- Relationship with retailers to be

exploited to gain customer attraction.

3- Well established brand image to be

used

4- High quality brand of products

5- Price leader status

6- Less Product innovation in hot

beverage industry

7- Sustainable growth rate

8- Financially Strong

Market development

1- Financially strong

2- Positive relationship with

retailers in the market

3- Resourcefully equipped

4- Customer Knowledge

5- Increasing trend of instant

products

New

Products

Product Development

1- Usage of Brand Image and

recognition

2- Increasing sales growth in the

food-beverage industry

3- Usage of the resourceful

relationship with the retailers

4- Low level of competition

5- Financial capability

6- Usage of high level market

Diversification

1- Creating a malted drink

and exploring other

markets outside the UK

2- Trying out new products

in a new market

3- Introducing silk otherparts of Europe, target

the children



RLL, a company possessing tremendous reputation, brand image and exquisite

resources to undertake any operation should employ its semantics on promoting their

new product “Silk” in the existing market. The company is fully equipped and ready

to venture in the new market of food-beverage industry. RLL has the skill and

resources to become a majorly reckoned force in this sector also, as it has already

done in the tea industry.

ATR MODEL:-

I

✔ Low Involvement of our product reassures the amendments required to

successfully conduct the remunerations needed to make the product a

triumph.

✔ Advertising strategies need to be at the top notch to attract customers.

✔ Best possible shelves in the supermarkets should be occupied with the

product at the time of launch using the positive retailer relations.

✔ The launch should be complemented with promotional offers & contests.

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AWARENESS

AWARENESS

REINFORCEMENT

REINFORCEMENT

TRIAL

TRIAL



MARKETING OBJECTIVES:-

➢ Specific target audience for the product would be all aged females.

➢ All the people who are hot chocolate drinkers would be the

measurable objective.

➢ Growth Rate for the upcoming years would be 0%-8 % would be an

achievable segment.

➢ Realistically, 60% of the brand consumers should be within the age

range of 15-24 and 40% within the age 65 years and above.

➢ The estimated time to gain the above mentioned objectives is 3-5

years.

“To launch our hot chocolate drink, “Silk”, amongst the young and

old females with a brand share of 60% within the ages 15-24 and

40% within 65+ and above and growing our brand share from 0% -

8% in 3 – 5 years.”

Strategic thrust - Strategic objectives

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IMPLEMENTATION:-

THE MARKETING MIX:-

Product The product “Silk” can be categorised into 3 portions

according to the target market: The Core benefit – a hot

drink to relax or to indulge in. The Expected product -

Product

variety

Various versions of hot chocolate can

be introduced in the market comprising

of a mixture of Milk, Malted and diet

versions of the product. “Silk”, thereby

can be explicitly having a differentiated

launch with all versions installed.

Quality The quality is an expected part of the

product should be a key factor of the

product to promote a re-enforcement.

Target market (the females) stressed

on it.

Design The design and packaging is essential

to lure our target market especially the

young females.

Features The healthy aspect of Silk is an

augmented feature that gives leverage

over competitors.

Brand name “Silk”, as a brand name appealed to all

the hot chocolate drinkers and will be asplendid contributor as the products

representative in the market in terms

of the customer attraction and sales

outcome.

Price RLL’s high quality of products and lack of competition

shown in the food industry as shown in the SWOT

analysis. High price will most likely be an option but price

discounts can be used initially to gain market share.

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target market the distribution channels would be through

the retailers as they have a large number of outlets. E.g.

Benefits of switching unit’s incentives could be offered to

such as free gifts, free tickets etc. Coverage – The

Supermarkets should be concentrated the most with

majority of the sales happening there. Other outlets such

as the Corner Shops and Coffee Shops can also be

considered.

Promotion Sales promotion: - Samples for taste for attaining short-

term incentives to encourage the purchase or sale of our

product “Silk”, E.g. Price Deals, Brand Loyalty rewards,

Coupons, Sweepstakes & Contests.

Advertising: - Extensive usage of various advertising tools.

E.g. Billboards, Newspapers, TV Adverts, Magazines &

Online Advertising.

Personal Selling: -Personal presentation by the firm’s sales

force for the purpose of making sales and building

customer relationships.

Public relations: -Building good relationships with the

company’s various publics by obtaining favourable

publicity, building up a good "corporate image", and

handling or heading off unfavourable rumours, stories,

and events. E.g. Press Release

Direct marketing:- Direct communications with carefully

targeted individual consumers to obtain an immediate

response and cultivate lasting customer relationships

CONTROL:-

Control features the Micro and Macro figurative:-

Micro:-4 P’s

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1) Product:

Product alterations are always an asset for the company when launching a

product. If the launched product doesn’t live up to the expectations then it can

be integrated with numerous flavors for attracting the people of all ages.

2) Price:

In a market comprising of less number of customers a product like “Silk”,

would face various atrocities like price wars and retaliation of competitors. To

combat such a situation, promotional offers, “Scratch and win” schemes can be

ventured out with to attain customer attraction and non-hampering of price.

3) Place:

Supermarkets being the main target areas can be a dodgy in response. “Silk” can be made available in other alternative locations such as renowned coffee shops,

theatres, work places, schools, colleges and various other public populated

places according to preference.

4) Promotion:

Advertising is always the best option to go about setting the people’s minds

according to our will. Strategic advertising tools such as billboards, TV Adverts,

Magazines, Newspapers, and Hoardings can be used for pertaining various

walks of people to get attracted to the product.

Macro:-

1) Political Factors should be considered and the daily happenings have to be taken

into account for time to time adjustment to pricing strategies.

2) Technological forces can be used to expand the variant product ranges all over

the national and international markets in the future.

3) Customer database should be maintained from the surveys and used for

improving product features yearly.4) Customer Feedback should be conducted through surveys should be conducted

on a quarterly basis to get the feedback of the performance issues and all issues

should subsequently be handled.

Summary of the Marketing Plan

RLL, the tea industry market leader makes its first launch in the food-beverage

industry. It plans to penetrate the new market industry successfully and gain a

substantial brand market share of 0-8% in due estimated time of its launch.

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Food-Beverage industry is a comparatively small but solid industry with its

market concentrations already reaching a significant 8-10%. “Silk”, is the first

food-beverage industry product for RLL. A company of RLL’s stature is

flatteringly equipped with all types of resources to launch the product and

sustain it in the new market. The company should immensely advertise their

product using the print and visual media interventions. It should use it brandimage and virtuous relations with the retailers to attract more customers

subsequently increasing their market sales.

Pricing strategies should also be employed with the extensive usage of

promotional offers, discounts, prize winning contests inclusions. The product

can be made superlatively popular and a huge success exploiting the already

esteemed image of RLL.

Contingency plan

An unconventional plan can always be convenient to a company for a product

being launched in a new market. If the conventional methods for “Silk”, don’t

work out as well as they were planned too, there is a methodology to survive the

wreck.

“Silk”, can be integrated with 3 or 4 designated flavours based on the taste and

preference of people of all ages in the market. The image of the product can bethen altered with hostile marketing with a view to target a certain section of

people and relate the drink to them in a pleasant manner to attract them to the

product. Plenty of offers can be introduced along with reward based strategies

on the purchase of every beverage to encourage more people to buy the product.

Moreover, the marketing plan is strong and should not require the secondary

assistance. But, with the ever changing priorities of people these days may be

this plan can resurrect the unlikely downfall of the primary marketing plan.

References:-

✔ Jobber, D. (2010), “Principles and Practice of Marketing”, 6 th edition. McGraw-

Hill Education.

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10024767 marketing rll case

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