The Marketing strategy of Toyota in China market Essay

The Marketing strategy of Toyota in China market Essay.

1.0 Title of the Project

The investigation marketting strategics of Toyota in China.

2.0 Objectives of the Projects

The objective of the project in the following.
• In the international market, Toyota’s facing the external environment
• The face of Chinese customers, Toyota has taken what kind of marketing strategy
• The strategy for the economic benefits of TOYOTA

And the sub-objectives of the report are giving as follows:
➢ The use of SPELT analysis of the external environment faced by Toyota
➢ Sale promotion
➢ In the Chinese market, Toyota’s business situation.

Including its financial data and market share
➢ The impacts of the product life cycle

3.0 Statement of Issues to be Investigated

At first, in order to know the factors that influence a global business organisation to change products and services to adapt their products to local market conditions. I will analyze the marketing strategy of Toyota. Secondly, the factors which impact pricing decisions such as the company costs; customer ability to pay; the price of competitors will be reviewed in this report.

Thirdly, investigate the different types of promotion methods used by Toyota evluate their impact on customer.

4.0 Reasons for the Choice of Issue and how this Issue Directly Relates to Topics

My topic is market strategies of TOYOTA in China. Marketing strategy is a method of focusing an organization’s energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements. So the issues I have investigated are the subjects, which are related to the topic. In addition TOYOTA have advantage and success in those issues.

5.0 Covered as Part of the Group Award

• Creating a culture of customer care
• The subject “Economics 2: The World Economy” refer to the free trade, the balance of payments and Chinese entering of WTO. Multinationals doing business in Chinese market through running trade between two countries.
• Micro and Macro Theory and Application. I would investigate the Chinese investment policies, and try to understand the detailed inferences of Chinese GDP, economic level and unemployment rate. Such things are all correlative in this subject.

6.0 Justification for Choice of Businesses

I would like to choose Toyota to be my investigation object. The level of management which has responsibility for the strategic overview of the business. Normally they should be looking at where they want the organisation to be in five to fifteen years time. “Customer First” slogan, for today’s consumers, are no longer strangers. When a reporter walked into the FAW Toyota dealership, see the left’s refreshing to hear.” Two years to achieve “one-time repair rates of the first” MA is not Food and fodder first.

7.0 TOYOTA Access to Information of Method

Companies can use two key sources of information:

• Primary – This is information gathered first hand by the organisation for a specific purpose. We should obtain it by ourselves. The primary sources of my study were obtained by the application of survey and questionnaire to investigate the customer need. And ask the department manager to get some documents of output and annual report. I also use telephone interview to obtain the correlative information from a department manager of marketing.

Secondary – This is information that already exists. This information should always be checked first as it is readily accessible and saves time and effort being used in collecting primary information. The relevant textbooks, newspapers, magazines and Internet collected all the secondary sources. The secondary information sources referred to here include: internet, newspapers, magazines, books (e.g. reference, encyclopaedia, educational, fiction), brochures (e.g. holidays, products, and services), financial statements (e.g. bank, insurance, and bills), directories (e.g. telephone, yellow pages, and companies)

8.0 The Method of Research Need to make use of in the Project

• The face to face Communication
This is a method used ectensively in establishing relationships with customers.
• Questionnaires
Questionnaires can be used to find out whether customers’ expectations are being met by current products or services. Turn to the internet and books for secondary information

9.0 Statement of Criteria

9.1 Analyze the 4P theories of Philip Kotler which have been Affected the TOYOTA

• Discuss the selection of suitable product to meet domestic customer needs
• Evaluate the pricing strategy to be used in the foreign market
• Evaluate the suitable mix of promotional tools that could be used in international markets.
• Indicate the place choice

9.2 Generic strategies— MichaelPoter

They outline the three main strategic options open to organizations that wish to achieve a competitive advantage( cost, leadership, differentiation and focus). TOYOTA successfully use differentiation strategy that provide differentiation goods and services to customers.

Section 2: Planing

2.0 Identification of the Resources Including Time Needed to Carry out the Investigation

The information of total Chinese economic background and the mainly Chinese investment policies to foreign investors could get from the official websites of Chinese government. Some investigate and finance reports could tell me the detailed information about some given companies. And these may spend several days in my first week. Then I will spend a few days to gather some firsthand information through questionnaires, telephone interviews, ect. This can intuitively know the views of consumers to the Toyota, at the same time, to find the promotion characteristics and advantages of the Toyota by comparing with other beverage companies in those methods.

Developing Stage

Executive Summary

This report will use researched data about the business strategy of TOYOTA, and use these data to analysis the demond and supply performance and effect of TOYOTA. In this report, the author will use researched data about the product differentiation of Toyota, and use these data to analysis the product differentiation situation and effect of Toyota, at last, take some suggestions to Toyota about the product differentiation.


In this report, there are some research methods should be adopted, such as Internet, Journals, In-depth Interview and Questionnaire. In this report there are some concepts should be used, such as: Marketing Mix (Marketing: An Introduction), Marketing Strategy (Marketing: An Introduction), SWOT Analysis (Marketing: An Introduction), Marketing Position (Marketing: An Introduction) and Customer Care Strategy (Creating a Culture of Customer Care)

1.0 Introduction

Toyota Motor Corporation is a multinational corporation headquartered in Japan, and is currently the world’s largest automaker. Toyota employs approximately 316,000 people worldwide. The courage to challenge themselves in order to continuously exceed the future. Various measures of human users FAW Toyota has the heart of the service smooth, which is bound to FAW Toyota switched to the smooth development path. From the “one-time repair rates of the first” to “customer satisfaction first”.

2.0 Finding

2.1 The Use of SPELT Analysis of the External Environment Faced by Toyota

Toyota has a global geographic structure with subsidiaries and plants all over the world. Toyota’s external environment relates to major forces outside the organization with potential to influence significantly their products and services. Toyota America will be analyzed in terms of the opportunities and problems they are currently facing and their likely contributing factors. Under the general environment we will be discussing the six dimensions: demographics, economic, sociocultural, global, technological and political/legal dimensions respectively.


The current demographic situation in the US is that baby boomers are retiring. This will not directly influence Toyotas sales, but will influence the future buyers and vehicles that will need to be produced.


Toyota is currently the most profitable automobile company in the industry. The general industry that Toyota competes is with the big three’s and Honda. Right now the U.S. economy is in turmoil. Profitability outlooks are almost out the door. The American public is simply not buying, thus making it tough for Toyota along with their competitors.


Threw out the late 40’s to the present Toyota’s sales have steadily increased (Ireland, Hoskisson, Hitt C-235). The reason for this increase in sales was the negative reputation that American people had against the Japanese after WWII. This stigma has long been forgotten in the American society, thus accommodate Toyota factories in the US in the late 80’s (Ireland, Hoskisson, Hitt C-239). Presently the Toyota Company is widely accepted by general society of the U.S.


Toyota has set up production plants in the U.S., China, France, Mexico, and the Czech Republic (Ireland, Hoskisson, Hitt C-236). There are little changes in the global environment that Toyota does not combat. Their company supplies trucks, luxury vehicles, cars, and compact cars to fit the ever-changing needs of the global market.


Toyota has been able to stay in tune with the changing technological trends. Toyota has kept to its roots by staying with a strong belief in the “Toyota Production System”, and the motto of Kaizen (Ireland, Hoskisson, Hitt C-236). With the current adoption of just in time inventory Toyota has been able to keep costs low and use their technology to stay ahead of their competition in the US who still rely on mass production and assembly lines. Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles, an example being the Toyota Prius. The company eventually began providing this option on the main smaller cars such as Camry and later with the Lexus divisions, producing some hybrid luxury vehicles.

It labeled such technology in Toyota cars as “Hybrid Synergy Drive” and in Lexus versions as “Lexus Hybrid Drive.” The Prius has become the top selling hybrid car in America. Toyota, as a brand, now has three hybrid vehicles in its lineup: the Prius, Highlander, and Camry. The popular minivan Toyota Sienna is scheduled to join the hybrid lineup by 2010, and by 2030 Toyota plans to offer its entire lineup of cars, trucks, and SUVs with a Hybrid Synergy Drive option.[citation needed] Worldwide sales of hybrid vehicles produced by Toyota reached 1.0 million vehicles by May 31, 2007, and the 2.0 million mark was reached by August 31, 2009, with hybrids sold in 50 countries.

Toyota’s hybrid sales are led by the Prius, with worldwide cumulative sales of 1.43 million by August 2009.Toyota’s CEO has committed to eventually making every car of the company a hybrid vehicle. Lexus LS 600h hybrid sedan.Lexus also has their own hybrid lineup, consisting of the GS 450h, RX 400h, and launched in 2007, the LS 600h/LS 600h L. Toyota has said it plans to make a hybrid-electric system available on every vehicle it sells worldwide sometime in the 2010s.


Since Toyota has started production in the US they have had little political and legal implications. One theory that US manufacturers hold about Toyota is that they don’t have to deal with unions, have little financial burdens and retirement and pension plans, and have little healthcare and legal costs (Ireland, Hoskisson, Hitt C-239).

2.2 Sale Promotion

Customer Incentive offers valid on retail delivery of select new unregistered Toyota vehicles, when purchased or leased (as applicable – see chart eligibility details; if no details then purchase and lease are both eligible) from a Canadian Toyota dealership. Vehicle must be purchased/leased, registered and delivered between May 1 and May 31, 2010. Customer Incentive offers are from May 1 to May 31, 2010. See your Toyota Dealer to determine if tax applies before or after the application of the offer in your jurisdiction. Cash Customer Incentives are available for all Toyota retail customers except customers who lease or purchase finance through Toyota Financial Services at a special rate of interest offered by Toyota as part of a low rate interest program. All advertised lease and finance rates are special rates. Offers valid on retail delivery of select new and unregistered Toyota vehicles, when purchased from a Canadian Toyota dealership.

Vehicle must be purchased, registered and delivered between May 1 and May 31, 2010. See your Toyota Dealer to determine if tax applies before or after the application of incentive in your jurisdiction. A large year-on-year decline in Toyota Motor Corp.’s car sales in February is further somber news for the crisis-hit automaker. When will the world’s biggest carmaker be able to turn its poor sales around? The carmaker’s announcement that it will start an unprecedentedly large sales promotion this month comes on the heels of US congressional hearings on the Japanese car manufacturer’s massive recalls on Tuesday. According to statistics released by a US research firm Tuesday, Toyota sold 100,027 new cars in the US market in February, marking a 8.7 per cent decline from the same month last year and a second consecutive monthly drop. The greatest factor behind the decline in Toyota’s new car sales in February was a sizable 19.8 per cent year-on-year drop in the sales of the Camry midsize sedan.

Toyota’s woes are in stark contrast to the growth attained by such rivals as Ford Motor Co. of the United States and Hyundai Motor Co. of South Korea. In February, Ford and Hyundai saw their sales increase by 43.5 per cent and 11 per cent, respectively. Ford and Hyundai, along with General Motors Co., conducted a sales promotion campaign in which customers were offered a US$1,000 rebate per car if they switched from Toyota to these rivals when buying new cars in February. This contributed heavily to an improvement in Ford’s business performance, as shown by a more-than-double increase in the sales of its Fusion midsize sedan. Hyundai saw similar results with several of its cars, including the Sonata, a midsize sedan that is Hyundai’s answer to the Camry.

The manager of a Hyundai dealership in New York said sales there doubled in February from a year earlier, largely due to favourable Sonata sales and those of the Tucson, another popular sport-utility vehicle. However, a bitter sales competition among carmakers in the United States has served to raise the amount of sales incentives received by customers from automakers. In February, the figure rose by 10.6 per cent from the previous month.

Meanwhile, Toyota launched an unprecedentedly large sales campaign Tuesday, which includes offering car loans interest-free for five years, in hopes of turning the tide of poor sales. This has immediately prompted GM to start a similar interest-free auto loan program. The Wall Street Journal has said such incentive programs could have an adverse effect on efforts by the US Big Three automakers to return to profitability. Meanwhile, an increasing number of members of the US Congress are starting to argue that Toyota’s massive recalls should be perceived as an issue to be addressed by the US auto industry as a whole.

2.3 Toyota’s Financial Data and Market Share

Toyota Motor Corporation (Toyota) primarily conducts business in the automotive industry. Toyota also conducts business in the finance and other industries. It is organized in three segments: automotive operations, financial services operations and all other operations. Toyota automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and commercial vehicles, such as trucks and related parts and accessories.

Toyota financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota financial services also provide retail leasing through the purchase of lease contracts originated by Toyota dealers. Related to Toyota automotive operations is its development of intelligent transport systems (ITS). Toyota all other operations business segment includes the design and manufacture of prefabricated housing and information technology related businesses.

Anyone who’s been watching market share in the auto industry over the years has known it’s only a matter of time before Toyota’s market share trumps GM’s in the U.S. According to a forecasting firm, that time could be as early as next year. IHS Global Insight predicted yesterday that Toyota will win a 17.6-percent share of the U.S. auto market, while GM will slip to 17.3 percent of the market. Through April, GM’s market share has dropped 2.7 points from the same time period last year, to 19.2 percent. Toyota has lost .3 percentage points, landing at 16.1 percent. The firm also predicted that this year’s seasonally adjusted annual sales rate (SAAR) will hover at 9.5 million units, a rate it reached last month.

The SAAR won’t reach 10 million units until September, it predicted. The SAAR fell from 15.4 million in February 2008 to 9.1 million a year later. George Magliano, the North American director of IHS, said the projected 9.5-million-unit SAAR for this year would be the lowest SAAR since the 1960s. Magliano also said annual sales won’t match 2007’s 16.2-million SAAR until 2013. In 2002, Toyota initiated the “Innovative International Multi-purpose vehicle” project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and to satisfy market demand in more than 140 countries worldwide.

IMV called for diesel engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in the Philippines, for supply to the countries charged with vehicle production. For vehicle assembly, Toyota would use plants in Thailand, Indonesia, Argentina, South Africa and Pakistan. These four main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota Innova. Appendix1 is about Toyota financial data.

2.4 The Impacts of the Product Life Cycle

In an effort to reduce the impacts of cars on the environment and society, Toyota has developed ‘Eco-Vehicle Assessment Systems’ (Eco-VAS) to evaluate performance. [pic]

Design and production

Development and design greatly affect the overall environmental impact of a vehicle. Fuel efficiency, exhaust emissions, the use of hazardous substances and raw materials are all assessed. Engineers use data from the Eco-VAS design tool to explore every potential impact and ways to overcome them prior to sending a single new car into production. Production. All Toyota manufacturing facilities are accredited to ISO14001 environmental management system, and work to aggressive targets to reduce energy and natural resource use, as well as waste and emissions. A range of other ‘sustainable plant’ activities are also adopted.


Within Japan, Toyota measures its environmental impact from the distribution of vehicles and vehicle parts throughout Japan and overseas. Vehicles are imported into NZ on the Toyofuji shipping line, owned by Toyota. The modern fleet is specifically designed as car carriers and incorporate the latest fuel-saving technologies for sea freighting, saving a third of the fuel compared to conventional shipping.


As well as leading the way with hybrid technology, Toyota is constantly improving conventional petrol and diesel engines to increase fuel efficiency and reduce emissions. In NZ we have the widest range of vehicles available including compact fuel efficient vehicles and commercial vehicles which feature the latest ‘common rail’ clean diesel technology. Our models are amongst the most fuel efficient in the market and the average fuel economy of all the vehicles we sell in NZ has improved by 13% since 2002. The maintenance and servicing of vehicles also has an environmental impact. To reduce the volume of waste generated during the driving stage, Toyota has extended service intervals, developed long-life fluids and funded equipment to recycle and recover materials at dealerships. In addition, all Toyota dealers follow a comprehensive environmental management programme which goes beyond local authority requirements.


End of Life Vehicles (ELVs) are cars which have come to the end of their lives. They are usually sent to dismantling companies where a number of parts are removed and reused. Toyota’s Eco-VAS design approach aims to improve the dismantling, resource recovery and recycling of materials at the end of the vehicles life. This approach has led to the development of a number of innovative technologies and processes, which reduces the demand on natural resources and the volume of waste to landfill. Toyota began recycling vehicle parts in 1970 and, since then, has been progressively implementing numerous recovery and recycling measures – in some cases creating new products for ‘wastes’ discarded by society.

These include:

➢ Improved dismantling – Toyota has incorporated a range of easy-to-dismantle features into its new vehicles since 2003. Toyota’s Automobile Recycle Technical Centre researches tools and designs for improved dismantling. ➢ Reduction of harmful substances – Today many thousands of chemical substances are manufactured for a wide range of products, and the effects on human health and the environment are not always clearly known. Toyota is voluntarily working towards the early elimination of the use of four substances of concern (lead, mercury, cadmium and hexavalent chromium). In addition, Toyota is reducing the amount of PVC resin used, as well as toluene and xylene in thinning and cleaning solvents. ➢ Collection and recycling of hybrid batteries.

Toyota hybrid batteries have a warranty of 8 years or 160,000kms and last for the life time of the vehicle. We have a programme in place for nationwide collection and recycling of HV batteries. Batteries are transported overseas for disassembly and component parts (precious and scrap metals, and plastics) from electrode plates, casing, cables etc., are recycled or reprocessed. Motor vehicles contain hazardous fluids, gases and heavy metals, posing a potential risk to the environment at disposal, and a cost to society – especially for the 25,000 vehicles which are abandoned or illegally dumped each year.

A further 170,000 used vehicles enter NZ ever year. As these cars have an average age of seven years, they are closer to the end of their life which creates disposal problems here. At best NZ has an ‘average’ infrastructure to deal with cars, and only around 75% of a vehicle by weight, is recycled. In addition to its own research, Toyota invested in a major study by Massey University that investigated this issue and presented recommendations for improving the manufacture, dealer, customer and governmental response.

3.0 Assessment about Strategic of TOYOTA

Some criteria could assessment customer care of the Toyota.

3.1 Analyze the 4P Theories of Philip Kotler which have been Affected the TOYOTA

Product – A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer’s perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Place – Place represents the location where a product can be purchased.

It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.

Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). Toyota to raise the attention of the world’s first in the 1980s, when customers began to realize that Toyota has longer life and fewer repairs than U.S. cars. Today they are one of the car manufacturers the world’s most profitable, producing high-quality car, according to the tastes of users, now use less labor and inventory.

To this day, Toyota continues to increase production, product development and improve processes “The success of the Toyota way” to explain the principles and philosophy of economic management has brought to predict the success of Toyota. Book presentation Toyota’s approach to the production of savings (known as the Toyota Production System) and the 14 principles put to the Toyota reputation for quality and excellence. Book also presents ways in which we can apply the same principles to the improvement of business processes that can cut costs and production activities. The Toyota Production System has garnered praise and accolades not only in the realm of automobile manufacturing, but in the realm of operational efficiency.

The triple or integrative bottom line of People, Planet, and Profits, the underlying elements of the Toyota Production System can be summarized in the 4p’s: price, promotion, product and place . The 4P’s are at the heart of what Toyota wants to be culturally. Furthermore, there is much crossover in the fundamental framework of the Toyota Production System and Sustainability. On another note, the visible actions of Toyota are not the core of the Toyota Production System. As Stevens and Kent state, “Toyota does not consider any of the tools or practices – such as kanbans or andon cords, which so many outsiders have observed and copied – as fundamental to the Toyota Production System.” Rather, it’s the underlying cultural framework of the Toyota Production System that enables Toyota to outperform western production methods.

3.2 Generic Strategies – Michael Porter

Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and a better margin. The benefits of differentiation require producers to segment markets in order to target goods and services at specific segments, generating a higher than average price. For example, British Airways differentiates its service. The differentiating organization will incur additional costs in creating their competitive advantage. These costs must be offset by the increase in revenue generated by sales. Costs must be recovered. There is also the chance that any differentiation could be copied by competitors. Therefore there is always an incentive to innovated and continuously improve. [pic]

Differentiation: appealing to a broad cross-section of the market through offering differentiating features that make customers willing to pay premium prices, e.g., superior technology, quality, prestige, special features, service, convenience (examples are Nordstrom and Lexus). Success with this type of strategy requires differentiation features that are hard or expensive for competitors to duplicate. Sustainable differentiation usually comes from advantages in core competencies, unique company resources or capabilities, and superior management of value chain activities.

Such as Toyota, are very good not only at producing high quality autos at a low price, but have the brand and marketing skills to use a premium pricing policy. Some conditions that tend to favor differentiation strategies are: ➢ There are multiple ways to differentiate the product/service that buyers think have substantial value ➢ Buyers have different needs or uses of the product/service ➢ Product innovations and technological change are rapid and competition emphasizes the latest product features ➢ Not many rivals are following a similar differentiation strategy

4.0 Conclusion from Assessment

According to two aspects of evaluation of section 2 Toyota achieve success in market strategy. Toyota is shaking up its marketing strategy. The OEM plans to set up two new marketing companies later this year – one to oversee marketing within Japan and one for global marketing and assisting marketing for Toyota affiliates. The companies have not yet been named, but they will begin operations on 1 January 2002.

Toyota explains that the new companies will function as two separate entities, allowing greater regional specialisation. Toyota’s recently appointed president Aiko Toyoda will head the ‘marketing assistance and coordination company’, along with Hiroshi Takada. Takada, a recent Toyota retiree who previously served as general manager of domestic marketing and advertising, will also head the domestic marketing company. The domestic unit will employ around 140 people, while the marketing assistance unit will have around 110 employees.

5.0 Recommendation

As we’re sure you know, Toyota is trying to deal with its largest recall ever – approximately 4 million cars are affected by what appears to be a safety issues concerning the accelerator pedal. Although some voices said that the problem was actually caused by some incompatible floor mats – which blocked the accelerator pedal and continued accelerating the car – it seems like it all happens due to a faulty pedal that could get stuck in some cases. Obviously, dealing with such a problem could prove to be extremely difficult, especially in an “against the clock” case. However, Toyota issued a Frequently Asked Questions article regarding the problem that could give you some recommendations on how to act if your car is affected by the faulty pedal. Here are the official advices, as provided by Toyota:

➢ Each circumstance may vary, and drivers must use their best judgment, but Toyota recommends taking one of following actions: ➢ If you need to stop immediately, the vehicle can be controlled by stepping on the brake pedal with both feet using firm and steady pressure. Do not pump the brake pedal as it will deplete the vacuum utilized for the power brake assist. ➢ Shift the transmission gear selector to the Neutral (N) position and use the brakes to make a controlled stop at the side of the road and turn off the engine.

➢ If unable to put the vehicle in Neutral, turn the engine OFF. This will not cause loss of steering or braking control, but the power assist to these systems will be lost. ➢ If the vehicle is equipped with an Engine Start/Stop button, firmly and steadily push the button for at least three seconds to turn off the engine. Do NOT tap the Engine Start/Stop button. ➢ If the vehicle is equipped with a conventional key-ignition, turn the ignition key to the ACC position to turn off the engine. Do NOT remove the key from the ignition as this will lock the steering wheel.

Toyota is a Japan automobile company and it has grown to be one of the magnates of the world. It is considered as the third auto company following the Ford and GM of America. The particular management of the company and its global sales system are the foundations of its success. The research focuses on the teamwork inner Toyota and with special focus on the sales departments. Since Toyota has initiated its businesses in many countries besides Japan, the staffs of the sales departments are of different nationalities, religions, cultural backgrounds and speak different languages. It seems hard for them to work in one team but they made it, and in fact it turns out to be efficient and excellent.

6.0 References

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The Marketing strategy of Toyota in China market Essay

Fashion Marketing Essay

Fashion Marketing Essay.

Before we consider the example of a fashion related marketing campaign, first we need to see in brief, what are the factors that make the marketing campaign successful in the target market where it is marketed? We can see that marketing campaign are a sort of communication tools that companies use to send their message across to the customers they are targeting. The more the communication process will be clear and attractive, the more the product will receive response.

However, in order to communicate effectively, identifying a specific target market is very necessary so that the campaign can be designed accordingly.

Thus when we talk about a fashion marketing campaign, we can look at the example of Cartier, which is a fashion brand and has its own stores and outlets across US, CANADA and UK.

What they have done is that they have selected a dark elegant color scheme in all of their marketing campaigns which include marketing for sunglasses, jewelry, perfumes and purses.

Being a fashion brand, elegance is one of the features that they have to concentrate all along because of the fact that the market they are targeting includes the elite class in the town which can afford expensive branded Cartier products. Thus in all of their campaigns they only have a single image in their advertisement which is placed in such a way that it tells the entire story and shows all the elegance of the product.

Moreover, the use of text is also very low because what the brand wants to show the target market is that the product itself shows what its elegance really is and they themselves do not need to show that to the elite class because the company wants to portray that every product that Cartier markets is unique, classy and branded. Thus, in the elite class, this type of elegant and simple fashion marketing has been very successful whenever Cartier launches a new product.

You may also be interested in the following: individuality vs nationality

Fashion Marketing Essay

Tesco Utilising the Marketing Mix Essay

Tesco Utilising the Marketing Mix Essay.

Tesco is one of the world’s international retailers and is recognised as the market leader in the UK supermarket sector. Tesco state that their core purpose is ‘to create value for customers to earn their life time loyalty’ Evaluate how Tesco and other supermarkets utilise the marketing mix to compete in the market place.

Tesco is the leading retailer with a market share in 2010 of 29.7% (Wright, 2012), a reason they have proven to be such a successful business is because of their well thought through slogan ‘every little helps’ which is simultaneously used to shape their core values, the slogan is now embedded throughout every aspect of the organisation.

Tesco along with many other business use the marketing mix model, otherwise known as the 7 P’s to set effective business strategies in order to provide a good quality of service to their customers. To compare the broadness of the way the marketing mix works for different businesses another leading supermarket chain should be chosen.

Asda in 2010 had a market share of 16.9% (Wright, 2012) also applies the marketing mix in considering any values or goals. Consequently their slogan is ‘Asda, always cutting prices’ Asda’s slogan is used similarly to Tesco’s as a means of shaping the business. This ethos is used in order to sell their brand effectively to get a higher amount of Revenue. In a highly competitive market, Tesco and Asda need to make sure the marketing mix model is considered effectively to ensure the business is strong enough to survive in the supermarket sector, meaning all core values must be relevant and work effectively for these profit orientated businesses allowing them to reinvest and develop their brands.

Price is a section of the marketing mix, when considering prices if a product is priced too low or too high, it could mean a loss of sales for an organisation. Tesco attempt to meet the consumers in the middle by having lower prices that still give them a reasonable amount of profit. One of their aims is ‘continually increase value for money’ they did this by completing a basket scheme where they then implemented individual prices per product line to insure no major price difference between them and Asda (Anonymous, 2000). However the problem Tesco are facing is that 80% of consumers fell into the “squeezed middle” bracket (Wood, 2011), consequently Tesco is having to cut the price of essentials and enforce a psychological pricing strategy to attract customers who are now below the middle class category to ensure they keep their revenues high.

Compared to Asda’s more laid back approach where their policy is to have ‘permanently low price through a rollback scheme’ research shows that their prices are on average 5-10% cheaper than the market average (Anonymous, 2000), after looking over Asda’s pricing methods it seems the favoured pricing strategy is the Economy pricing (Anonymous, 2003) where all costs are kept low to insure cheaper products and to make sure a mass market of consumers can afford various products due to the lower prices.

Product is a key part of the marketing mix, it involves the brand itself and the service a business is providing to gain a large amount of capital and attract customer loyalty. Tesco’s have expanded into many different markets with their range of products from petrol to food and clothes. It’s become clear to Tesco now that it’s value or basic range has become considerably popular and Tesco’s Value brand is now one of the biggest grocery brands in the UK, even bigger than large popular businesses such as Coca-Cola and Walkers (Anonymous, 2008). This break through has allowed Tesco to focus on other aspects of it’s product portfolio leading them to introduce over 2,000 new and improved food products after looking over customers reviews about product quality being increasingly important to them (Tesco PLC, 2011) as well as looking closer at it’s newer ventures, like Tesco bank and the Tesco’s in Korea.

However, when considering all the ranges of products Asda’s would find it difficult to compete with all their products as they are mainly focused on cheaper products which shows as around half their products sales are own label products (Walmart, 2010) Asda mainly focuses on their own brand products as they are the higher sellers and so they ensure there’s a continuous flow of new product innovation so that they are ahead of the consumers needs (Walmart, 2010). Place in the marketing mix looks at where the product/service is sold whether it’s on the internet, a small corner shop or a massive shop. A new place for the supermarket sector to sell at is the internet, because more and more consumers are working longer hours to get money it is simply much easier for them to do an online shop rather than having to go to the shop, which is shown well in Tesco’s new advert.

Tesco’s have made the internet shopping experience their own as they are currently the fastest growing online retailer in volume terms in the clothing, footwear and accessories market (Tesco PLC, 2011) as well as a 15% growth in the online business (Tesco PLC, 2012) proving that when they invested in the internet shopping experience they have helped ‘to create a value for customers to earn their life time loyalty. As well as this, they understand the local market of stores where some local stores have lower prices on a limited range of goods (Anonymous, 2000) building up customer relations to create higher quality services and increase the customer loyalty. Asda has also advanced onto the online shopping hype and has found that in 2009 the home shopping growth was around 40% (Walmart, 2010) Asda understand that this is a growing trend and so have invested into developing new channels and finding innovative ways of reaching customers whether they are at home on the move or in store (Walmart, 2010), one of the new creations for Asda is an app store which shows they are modernising with the times.

Promotion is a vital way in advertising a company, product or service as a means of branding, as well as offering money off deals to make consumers feel like their saving money. A way Tesco’s has managed to keep customer loyalty as well as creating lots of promotional deals is the Tesco club card, which was launched in 1995 (Tesco PLC, 2011). The clubcard allows a customer to collect points for money vouchers which consumers can then spend in store or online. This method allows consumers to get money back from their purchases therefore convincing them to revisit the store to get a return on their spending, this helps with improved customer loyalty as well as high brand awareness. Asda take a different approach and chose not to create promotional deals, but instead highlight their cheaper products this is the Asda rollback scheme.

Asda is Britain’s lowest cost to operate supermarket (Walmart, 2010) and so their promotion is the brand and the fact that Asda have a permanently low prices policy, which means consumers feel they would save more money allowing them to have more disposable income and spend more money on extravagant products in Asda if they wish. People are an essential part of the marketing mix, as it relates to the consumers, labour, suppliers, and stakeholders anyone who helps the business stay afloat. Tesco invest in their staff skills to insure a high quality service, as well as being dedicated to providing a diverse career opportunity for all their staff worldwide (Tesco PLC, 2011), this would provide employees with greater job satisfaction and the opportunity of being promoted. As well as internal affairs, Tesco also thinks about the people externally of the business, as there is increased demand for locally produced food, therefore Tesco now supports the local economy to assist in sustaining the community and so has increased the local buys from £850 million in 2009 to £1 billion in 2010 (Tesco PLC, 2012) to ensure local suppliers are support after the shake of the financial crisis.

This is also better for the consumers as imports are more expensive so product costs can be cut. Asda has an ‘everyone matters’ approach demonstrating that colleagues are a vital resource, to ensure the staff are content Asda has flexible working practices and world class reward packages which since it was launched in 1999 has given out £129 million in bonuses. Asda also likes to help the community so a lot of the suppliers are local, consequently products are cheaper and they have less environmental impact reducing their carbon footprint (Walmart, 2010). Process relates to delivery and the responses to any complaints, for example customer services. Tesco wanted to get customer feedback so introduced ‘every comment helps’ the feedback was based on customer service and product range the got over 20,000 positive responses which reflects on the business well. Tesco has since train around 80,000 staff as a means support them to give helpful advice, be friendly and efficient.

Also keeping up with technology and providing the self service system which currently accounts for around 10,000 transactions per week, this makes queue times shorter as well as being a quick and easy option to make shopping a more pleasurable experience (Tesco PLC, 2011). Asda has provided 1,100 vans, from 160 vans and one dedicated home shopping center that provides coverage for 97% of the UK, therefore a large consumer base is met with only a few people not being able to be delivered to providing a very efficient service (Walmart, 2010). Physical evidence considers the atmosphere of the business and the effect the business has on consumers whether it’s good or bad. Tesco puts staff through training to provide consumers with the best possible service, because of the high levels of engagement customers are able to enjoy the benefits of Tesco’s having confident and experienced staff on hand to help at any given moment (Tesco PLC, 2011).

This provides the Tesco shopping experience with a more relaxed experience for consumers who can be comfortable to ask employees for help. An ex-employee for Asda said how it was a ‘fun and vibrant culture to work in, and how there were regular meetings at the start of shifts to keep all staff updated. How he was lucky enough to be accepted in the stepping stone scheme which trains up employee to promote them up levels in the business,’ (Tasda123, 2007) after analysing the employee review you can really feel how positive the experience is working at Asda, and a positive employee attitude would rub off on a customer meaning they will have a good experience too. As long as the feelings of the employees of businesses are positive then the shopping experience can be enjoyable rather than a chore. After looking over two of the largest supermarket retail you can see how well thought about the individual parts of the business is, every part has been considered.

It may be that for some businesses one or multiple sections of the mix has more relevance to their main aims, for example if Tesco wants ‘to create value for customers to earn their life time loyalty’ they may primarily look at promotion and process to enable the best service they could supply to their customers. The supermarket sector is competitive and so utilising the marketing mix has helped Tesco and Asda to develop their own individual take on the sector, to form their own unique business strategies from what they may have researched using primary or secondary data. Looking closer at Tesco and Asda, you can see some similarities, but in the end, they are different in order to compete to gain a higher market share and increase market share.

The different parts of the mix will show the effectiveness of the business to increase capital, Tesco has a large range of products at varied prices whereas Asda has a more limited amount of products and the prices are cheaper with the idea that customers can afford to buy more of their products and spend more. After looking over how two businesses in the same sector apply the marketing mix you can observe that they compete from the start in order to gain an increased brand awareness, to do this they must look at each part of the mix to discover it’s overall ethos for which Tesco’s is ‘every little helps’ and Asda’s is ‘Asda, always cutting prices’ both are completely different to attract consumers.

Currently statistics show that Tesco’s mix is more effective than Asda, this is because they have invested capital in expanding all parts of the mix to appeal to a mass market. If used efficiently the marketing mix is useful for competing, to show a business what it’s internal and external running’s are like so that they can establish their ethos to market the business effectively to gain a larger holding in the sector it works in, therefore insuring the marketing mix is thought through properly will help in establishing a business.

* Anonymous (2000) (Journal) ‘Company pricing policies’, Competition Commission, p. 80, p87-88. * Anonymous (2003) (Website) Pricing Strategies, [Online], Available: [2012]. * Anonymous, T.- (2008) (Website) ‘Things You didn’t know’, Tesco Report, pp. 120-121, Available: * Tasda123 (2007) (Website) Being an ASDA colleague, 14 February, [Online], Available: * Tesco PLC (2011) (Report) Tesco Annual Report 2011.

* Tesco PLC (2011) (Report) ‘Annual Reports And Financial Statements 2011’, p.18 p.37, p.49. * Tesco PLC (2011) (Website) ‘Timeline’, Tesco, Available: * Tesco PLC (2012) (Website) Growing Retail services, [Online], Available: [2012]. * Tesco PLC (2012) (Website) Local Sourcing, [Online], Available: * Walmart (2010) -‘Asda Home Shopping’, All About Asda, p. 15. (Report) -‘Our Digital Business’, All About ASDA, p. 15.

-‘Our Food’, All About Asda, p. 10.
-‘Our Story. and today’, All About Asda, p. 3. -‘Our Suppliers’, All About Asda, p.7.
-‘What We Love About Asda’, All About Asda, p. 6. * Wood, Z. (2011) -‘Tesco declares war on rivals with £500m price cutting offensive’, The Guardian, September. (Journal) * Wright, C. (2012) Tesco market share at its lowest since May 2005, The Grocer. (journal)

Tesco Utilising the Marketing Mix Essay

Pizza Hut Marketing Research Report Essay

Pizza Hut Marketing Research Report Essay.

Executive summary

This marketing research report is about the strategy of Pizza Hut for entering a new market. This research includes the preferences of the customers for going to any fast-food restaurant and particularly to our. We collected primary data from people for our research. While we were making our questionnaire we focused mainly on questions that showed the preference of the fast-food customers. Especially when we talk about food quality, price, services, interior, etc… We got the questionnaires filled by 28 people from our population.

They found the questionnaire nice and easy and we really could analyze their answers. The population for our research consists of students of The IUC College and people from all over the country. We made the connection through some websites. This analysis helped us to come out with new ideas about the future sales and profitability and what our brand needs to maintain its image.


Pizza hut is an American restaurant chain and international franchise that offers different styles of pizza including pasta, salad, breadsticks, garlic bread and buffalo wings.

Pizza Hut is a subsidiary of the world’s largest restaurant company Yum! Brands.Inc. As of 2012, there were more than 6,000 Pizza Hut restaurants in the United States, and more than 5,139 store locations in 94 other countries and territories around the world. Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. They borrowed $600 from their mother to start a business with partner John Bender. They chose the name “Pizza Hut” since the sign they purchased only had enough space for nine characters and spaces. In the early 1960s Pizza Hut grew on the strength of aggressive marketing of the pizza restaurant idea.

The first Pizza Hut franchise was opened in Canada. This was followed by the establishment of the International Pizza Hut Franchise Holders Association. In 1977 Pizza Hut merged with PepsiCo, becoming a division of the global soft drink and food conglomerate. Sales that year reached $436 million, and a new $10 million dollar headquarters office opened in Wichita. The brand has been rewarded as the best restaurant chain internationally. In 1986, Pizza Huts started its Home Delivery service. In 2007, Pizza Hut offered online ordering at all of their 65,000 locations. In 2008, Pizza Hut introduced Total Mobile Access- the ability for customers to order by text messaging or using their web enabled cell phones.


Our major marketing strategy has always been to satisfy the customer by offering the best, including cleanliness, hospitality, accuracy, maintenance, product quality and speed. Our brand has always been friendly and familiar. We have always done our positioning by keeping in view two basic factors: Quality and frequency. Our brand uses low price meal and expensive for high end. We collected primary data from people for our research. While we were making our questionnaire we focused mainly on questions that showed the preference of the fast-food customers. Especially when we talk about food quality, price, services, interior, etc… We got the questionnaires filled by 28 people from our population. They found the questionnaire nice and easy and we really could analyze their answers. The population for our research were students of The IUC College and people from all over the country. We made the connection through some websites.

We found out that most of the people are really aware of our brand and they have even visited our restaurants. 10 out of 28 people have never heard of our brand and products. We asked all the people who have visited our restaurant, are they satisfied with the service and the ingredients in the food. All of them were undoubtedly agree that the service in the restaurant is extremely good and all of the ingredients are high quality. We became aware of the information that the majority of the fast-food restaurant customers are the people between the ages of 18 and 30. Nowadays the majority of young people can’t cook and they are really impatient for food. Some of them don’t have resources.desire and time for cooking. So the fast food restaurants are really the best choice for people between these ages.

Furthermore, we found out that our potential customers are incredibly price sensitive. 16 out of 28 people preferred to give 5 to 10 leva for our services than 3 to 5 leva. This helped us to understand that our customers are willing to pay more if the service responds to their money but not too much. After our detailed analysis we concluded that quality is the most important factor which can affect our potential customers. People really prefer to eat in a fast-food restaurant which has normal prices, good service and nice interior. People have gotten tired of going to the same places like Mcdonalds and Subway. They want something new, fresh and with fast home delivery.

4 P’s
Product: Salads, Pizza, Pasta, Beverage, Deserts
Price: 5 to 10 leva
Promotion: TV ads for now
Place: We should place our restaurants in the Mall or somewhere in the centre of Sofia and Varna


From our research we conclude that we definitely should focus on consumer satisfaction. This is possible if we have control over the quality of the food, service and control over prices. We have to make sure that we can create a friendly physical environment. Our restaurant must become like a second home for our consumers. And we think that our potential consumers in Bulgaria would be very pleased with our services.


We should do some strong TV advertising.
We should open branches in more cities, such as Varna, Burgas, Veliko Tarnovo We should have at least one restaurant in the mall. The competition will be extremely big but with our brand image and variety of food and beverages we think we could easily achieve successful market share.


Pizza Hut Marketing Research Report Essay

The Law of Line Extension Essay

The Law of Line Extension Essay.

The Law of Line Extension has been created with the belief that a company should not overextend themselves to the point that they want to encompass an entire market of many different products at the cost of losing their market share. Many companies are able to rise to the top of their market to become first in class for their product. There are times when a product or the company that has created and established a first in class product begins to achieve a steady market share.

At this point in time, many companies have decided to take advantage of their success and expand their existing product line to enhance a new market.

One example would be for Coke to begin selling a new flavor of their product. The goal behind this strategy is to entice current customers with new products as well as expanding the company’s market to reach new customers (Anzalone, 2013). Pros to Line Extensions Line extensions are very attractive to companies for several reasons.

The idea of expanding on the product that has proven to be successful is such a desirable concept that companies perceive these to be a low-cost, low-risk opportunity. Line extensions are frequently used as a short-term competitive edge over the competition.

One company may have the ability to satisfy several needs of a single customer with a larger variety of products (Quelch, Kenny, 1994). Consumers want to try out brands that they have never used before. There is a large market of consumers that can be enticed to try a new product from a company that they have not purchased from in the past. Line extensions can bring in new customers. Line extensions also help companies keep existing consumers by offering more of a variety of products in one location. Another benefit of line extensions is that they provide companies the opportunity to have a larger range of price points (Quelch & Kenny, 1994).

Companies choose to either add a new product to their inventory or to replace an item that may be in need of an upgrade. Gorden (2004) suggests you follow four steps when considering line expansion: 1. The exact needs of the client, for each high-priority market segment, must be defined. 2. After extensive research, classify the exact product(s) that the customer base is drawn to. 3. Select the correct routes that will be used for the sales and distribution in order to ascertain the highest level of penetration for the target market. 4. Determine how the new extension will be introduced into the selected market segments and create a one of a kind value proposition.

Benefits of Line Extension Anzalone (2013) believes that a “line extension can reinvigorate a product line, bringing it back into the public awareness by drawing new customers and higher profits. ” Profits can be increased by a line extension by allowing manufacturers to break into new markets and diversifying their inventory. Another benefit is that products created by a line extension are able to be promoted at a lower cost, because the consumer is already familiar with the company brand.

Therefore, the company does not need to ‘sell’ their brand name as the brand is already well established (Anzalone, 2013). Frequently, line extensions are created to be a quick fix for a company’s sudden loss of revenue or failure. The quick fix seems to be a perfect solution to a short term problem because most line extensions only contain small changes to the original product. These line extensions help to create an increase in sales at a rapid rate and prove to be fairly inexpensive. A line extension can also offer a more predictable outcome versus a brand new product.

However, Quelch and Kenny (1994) also states that “Line extensions rarely expand total category demand. ” Risks Companies are forced to take into consideration all of the risks involved when creating a new line extension. If a new product proves to be a massive failure, the reputation of the company name may be ruined. Meaning that if this same company works hard to create a perfect product, in the future, consumers may not be willing to try it based on the company’s previous downfall. (Anzalone, 2013). Each new line extension needs to have a strategic plan for distribution and sales.

Companies must remember that just because they have created a new product does not guarantee that all stores will be inclined to carry this product. There may be fifty types of the same product but store shelves have only been allotted for a possible twenty. Line extensions do not always increase the category demand, and the profits gained from line extensions are normally short-lived. Quelch and Kenny (1994) states “ Line extension proliferation spreads sales across more items, reducing retailers’ average turnover rate, and putting previously profitable SKUs at risk”.

Another risk of line extensions is cannibalizing your existing products. Companies should be aware of this risk and take precautions to avoid cannibalizing their existing successful product. Minimalizing the Risks Anzalone (2013) states that you can reduce the risk of failure of a line extension failing by accurate cost accounting, “allocating resources to popular products, research consumer behavior, coordinate marketing efforts, work with channel partners, and foster a climate in which product-line deletions are supported”. Creating different sales strategies is important to the life of a brand or product.

Sampling of a product can be an excellent way of marketing not only the new product, but the brand name as well. Free sampling or giveaways of a certain items can help long-term sales of all products for a brand name. Households that have participated in free sampling of a new products have shown to create a 475 percent sales increase on the day of sampling. This is in comparison to households that did not sample the product per the “Report on In-store Sampling Effectiveness” that was conducted by Knowledge Networks-PDI on behalf of the marketing services company PromoWorks.

Moreover, consumers that did sample a product were 11 percent more likely to buy this product on other occasions over the following 20-week time frame. As well as purchasing the sampled product, consumers were 6 percent more likely to purchase another product that was created by the same company (Sales & Marketing Management, 2010). Successful Line Extensions Even though there are many line extensions that do not work, there are those few rarities that have flourished with the developing a line extension. A great example is the Doritos brand of corn chips.

Sales of the line extension, Cool Ranch Doritos, created more than $1billion increase in sales. Another success would be the introduction of diet and caffeine-free soft-drink products. No soft drink company can rise above the top without a diet and/or caffeine free version of their product (Hardi, et al, 1994) The tastes of consumers are an ever changing and evolving market. Therefore, companies must continually be on the lookout for a new development of product-line extensions. Hardi et al. (1994) says with each new addition to a company’s line extension comes the increased competitive reality.

For example: Arm & Hammer created toothpaste that contained baking soda. Crest and Colgate were forced to create a line extension that would compete with this brand. In 1992, Colgate created a new line extension that offered stand up tubes of toothpaste that were a huge success. All other brands were forced to create their own version of this tube thus creating their own line extensions. Over Extending a Line Budweiser is currently referred to as Bud. Consumers identify Bud as some type of liquid alcohol due to their ever increasing choices of beer flavors.

There is no way for a consumer to hear the name Bud and be able to recognize the original bottle of Budweiser beer as the first item that comes to their mind. The Budweiser Company has created so many line extensions of the original product that the consumer can become slightly overwhelmed with all the choices. In one year, the Budweiser Company introduced two separate line extensions including Bud Light Platinum and a margarita-flavored Bud Light Lime Lime-a-Rita. In this same year, a separate line extension called the Bud Light Golden Wheat was pulled off of the production line due to a decrease in sale (Hochwald, 2013).

Possible solution The intention of the owner of the Budweiser Company, Anheuser-Busch, has been to create of a variety of products that would not only create new customers, but entice existing customers with a variety so that they would stay with his company rather than venturing out to others. However, in doing this he gave up the strong best in class reputation that had once given him the lead over all other beer companies; because consumers began to think less of the original beer after so many failed line extensions.

Anheuser-Busch should have held tight to their Budweiser product and created a completely new company name for their line extensions (Hochwald, 2013). Final Thoughts As human beings, we have created the idea in our minds that more is always better. Unfortunately for our egos, this phrase is normally never the case. One person cannot be the best in all things. This holds true for a company that thinks that the more types of diversified products they have the better their success rate.

This is just the opposite of creating a successful and thriving business Before creating a line extension you should do some market research like a survey customers, marketing partners or distributors and evaluating competitive products. This can help validate the present level of demand for the product and the best channels for sales distribution. If your research is solid and you proceed with an analytical eye, your line extension will increase sales. It will also help you reach new markets and build market share overall for your growing business (Gordon, 2004).

The Law of Line Extension Essay

Marketing and Singapore Airlines Essay

Marketing and Singapore Airlines Essay.

I. Introduction

Singapore Airlines (SIA) has been ranked as one of the top leading airlines in the world. Singapore Airlines began with three flights per week, and today their route network’s span is 99 destinations in 39 countries worldwide. Singapore Airlines Limited split from Malaysian Airways in 1972 and is the national airline of Singapore operating on global major routes. As stated in its website, the company is geared towards “providing air transportation services of the highest quality and to maximizing returns for the benefit of its shareholders and employees.

”. It has constantly outperformed compared to many other competitive airlines and reported superior annual returns on profits.

As airline is known as a mistake-free industry, Singapore Airlines has been proven its outstanding performance through its excellence services as well as being a pioneer in business strategies. Hundreds of industry awards are received by Singapore Airlines for its service quality. This report will outline in detail the fundamental issues in marketing of Singapore Airlines such as marketplace and customer needs, highlight the significant issues regarding the organization’s competitive environment as well as suggest possible enhancements for the organization.

II. Body

1. Customers’ needs, wants, demand, product and market identified for Singapore Airlines. i. Customers’ needs, wants and demand. Amstrong and Kotler (2011) defined needs as states of felt deprivation. They explained human needs comprise basic physical needs as food, clothing, warmth and safety, as well as social needs for belonging, affection, fun and relaxation. There are also esteem needs for prestige, recognition and fame, and individual needs for knowledge and self-expression.. On the other hand, wants are another sort of human needs that are influenced by culture and individual personality. Western people like Americans or Europeans would want breads for their daily meals, while eastern people from China or Vietnam would prefer rice, though they all have the same need of food. People’s wants expand throughout times. In the previous days, they might just simply want a transporting way to reach a destination.

Later days they wanted a fast and safe transport. Today they also want comfort and entertainment while they are transporting. Organizations should be able to see and foresee the undiminishing wants of its customers to develop their products and services. Nevertheless, human wants are boundless, but not resources. What a person wants and what he can afford are two different matters. As described by Amstrong and Kotler, wants that are backed with buying power are called demand. For example, everyone wants to fly with a business or first class, but not all are willing to pay for those exclusive prices, thus some of the demand will go for the economy class instead. Singapore Airlines has identified there is a need of travelling, relaxation and prestige from its customers, as well as wants and demand for the aviation service and facilities. As so, Singapore Airlines offers best services in order to satisfy its customers accordingly

. ii. Singapore Airlines’ products and market.

Singapore Airlines mostly targets at businessmen and wealthy folds who are willing to pay a premium flight fares for a guarantee high quality service. The product line of Singapore Airlines is divided into three classes of travel: First, Raffles (Business) and Economy. First class accounted for 5% of passengers, Raffles class for 10% and economy class for 85%. The expectations of these particular customers were constantly rising and their needs and wants keep on changing over years. Other than that, Singapore Airlines also offer many in-flight facilities and entertainment, such as free headsets, choice of meals, satellite-based inflight telephones, inflight meals from the International Culinary Panel, offer audio and video on demand capabilities on KrisWorld in all classes. They also have different luxurious lounges for different class of passengers.

2. Singapore Airlines’ market orientation.

i. Market orientation

According to Kohli and Jaworski (1990), the marketing concept is a business philosophy, whereas the term market orientation refers to the actual implementation of the marketing concept. Marketing management’s objective is to build profitable relationship with the target customers by designing strategies which following a certain business philosophy that the organization has chosen. There are five of them, including production concept, product concept, selling concept, marketing concept and societal marketing concepts. The newest business philosophy that has commonly been adopted by most of the large organizations nowadays, including Singapore Airlines, is the societal marketing concept. Kotler, et al. (2010:19) state that, “the societal marketing concept holds that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well-being”.

In brief, this concept is all about balancing three aspects of an organization’s marketing approach: company’s profitability, customer satisfaction and society’s welfare. Bhasin H. (2010) stated that the marketing concept alone sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare, yet some firms and industries are criticized for satisfying consumer wants at society’s expense. This has been a reason for the societal marketing concept to be formed, which could be seen as an enlargement of the marketing concept itself. Singapore Airlines’ official website publishes that, “Singapore Airlines firmly believes that supporting programmes that benefit the communities we serve throughout the world is an essential part of being a good corporate citizen”.

Singapore Airlines has been contributing to the community in arts, sports, community welfare, and education. It supports a wide range of local and overseas community groups and charity organizations. Some of the highlighted are providing air travel for Australian social workers to Dhaka in Bangladesh for a project to prevent hearing loss in textile workers, rebated air tickets to the newly established Singapore Sports School to nurture emerging sporting talents, helping to fly the nation’s flag high in the sporting arena as the Official Airline for the inaugural Youth Olympic Games held in Singapore, etc. By practicing this societal marketing concept, Singapore Airlines has shown their customers that profitability is not their number one and only concern, but also to be a responsible and contributive corporate citizen. By doing so, Singapore Airlines has gained respectable reputation and favor from the customers, and boosted to a notable sales and profits.

ii. Product life cycle

Singapore Airlines’ product set is in a mature life cycle. The airline has done an outstanding job of differentiating itself through customer service available through any of its commercial aviation products. In this stage of the product life, Singapore Airlines must reinvent itself every few years to remain competitive in the industry and to prolong the stage period not to reach the decline stage. Singapore Airlines is constantly examining other service industries to see how they respond to customer needs and then adjusts its products accordingly. Through this strategy, Singapore Airlines generally leads the industry in innovative customer service products and initiatives. As airline is a service industry, its products are intangible, yet Singapore Airline’s commitment to its service strategy is visible in every aspect of its operations.

3. Major competitive issues facing Singapore Airlines

i. Singapore Airlines’ competitive advantages

Ever since the separation from Malaysian Airways, Singapore Airlines has no domestic routes to serve, hence the company has been forced to rely on the international flights and compete with other major airlines. There are three core aspects that Singapore Airlines has gained competitive advantages over other players within the industry. These comprise of the excellent service, the continuity innovation, and the technology superiority. Firstly, as explained by Roll (2004), the airlines have begun its branding strategy on it in-flight service. The company engaged French haute-couture designer Pierre Balmain in 1972 to design a special version of the Malay Sarong Kebaya as the airline stewardess uniform and then is branded as “Singapore Girls” for providing excellent in-flight hospitality. This later becomes one of the most recognized signatures of the airline, and is one of the critical reasons why Singapore Airlines always ranked at top for the customer satisfaction survey about in-flight service observed by various sources such as independent institutions or online social networking sites.

The second aspect that supports the Singapore Airlines’ success is their effort to always be innovative – particularly about the in-flight services. Additionally justified by Roll, Singapore Airlines has pioneered many in-flight experiential and entertainment innovations, and strived to be best in class. It was the first to introduce hot meals, free alcoholic and non-alcoholic beverages, hot towels with a unique and patented scent, personal entertainment systems, and video-on-demand in all cabins. The company keeps driving innovation as an important part of the brand, and the cabin ambience and combined experience are key factors of its success. Lastly, on the technology side, Roll also evaluated that Singapore Airlines still maintains the youngest fleet of aircraft among all major air carriers, and keeps to the stringent policy of replacing older aircrafts for newer, better models.

It has always been first in line to take delivery of new aircraft types like Boeing 747 jumbo jets, Boeing 777, and it will become the first airline to fly the Airbus super jumbo A-380 in 2006. Even the aircrafts are sub-branded like 747-Megatop and 777-Jubilee to further distinguish SIA and its brand from competitors. Singapore Airlines also flew Concorde between Singapore and London in the late seventies in collaboration with British Airways (BA). The aircraft was painted with SIA’s colors and logos on one side, and BA’s on the other, and it carried crew from both airlines.

ii. Porter’s five forces analysis of Singapore Airlines a) Suppliers power

Suppliers’ power is consistently high in airlines industry. This hence will have a great impact in the company’s product and service costs, prices and
profitability. However, Singapore Airlines is financially strong and has its own ground service such as baggage handling and in-flight food and beverages supply. Aircraft maintenance and servicing is also carried out by SIA Engineers. Thus the main supply for Singapore Airline is basically the aircraft manufacturers. Since the firm has been known as an airline with youngest aircraft usage, Singapore Airlines has been a significant customers and has bargaining power over the suppliers.

b) Buyers power

The buyer bargaining power is indeed high for Singapore Airlines. Singapore Airlines’ targets mostly on businessmen and people who are affordable for premiums flight fares. These types of passengers are not too sensitive to prices, but concentrating more on the flight time that is flexible for them, and also the comfortability of the provided service. However, regardless of which type of passengers, all of them might just switch to other airlines without hesitation if time and service match their demand better. Since customers are willing to pay for their enjoyment and flexibility, Singapore Airlines’ target market has a strong level of buying power.

c) Substitutions

Singapore Airlines generally has medium to low threat on substitution of its services. As mentioned above, Singapore Airlines’ target passengers are not cost-conscious travelers, they can afford high fares in return for their comfort and time efficiency. Hence with excellence both in ground and in-flight service quality and updated high-tech facilities, Singapore Airlines easily retain customers’ loyalty. Other substitute transport mode would not be a big threat especially for long flights or long distance travel.

d) Competitive rivalry

The level of rivalry is medium for Singapore Airlines. Although there are not many airlines can compete against SIA, these airlines in the entire industry share the very similar market. Most of the carriers are using differentiated strategy that focus on both booking and in-flight services. SIA with outstanding and uniqueness service offerings has helped the firm to have lesser pressure on competition. However, Singapore Airlines has to continue on innovation and maintain and improve service quality if they do not wish to lose out.

e) New entries

Threat of new entrance is consider low in airline industry, since the capital investment for the industry is massive. According to Calingo (1997) it would require a lot of logistic works, highly skilled personal such as pilots, aircraft technicians and specialize managerial personnel which are often limited in resources in the industry. Limited access to airport and route are also another difficulty post to new entrant.

4. Segmenting, targeting and positioning of Singapore Airlines. i. Segmenting

According to Kotler et al. (2010:199), marketing segmentation is defined as dividing a market into distinct groups who might require separate products and/or marketing mixes. The objective is to help determine marketing strategies and realistic marketing objectives by understanding customer trends and buyer behaviors. Singapore Airlines segments its market based on geographic, demographics, psychographic and behavioral. For geographic segmentation, Singapore Airlines customers are located globally with varying wants and needs thus the firm attempts to exploit this by providing airline services to major cities or routes. Evidence given is Singapore Airlines operates flights to over 90 destinations in more than 39 countries over 5 continents.

Its strong presence is however still the Southeast Asia region. Demographic segment works on the basis of customer factual characteristics such as age, gender, family lifecycle, social-culture, occupation, education and income that can influence purchasing decisions. Singapore Airlines, for example, demographically segment their customers from their choice of the service class. Suite class and First class passengers are dominantly traveling on business purpose and mostly are male between 25 to 45 years old. Passengers in business class are split evenly between traveling for business and leisure. Mostly are male with average age 32. Economy class passengers are a much broader group, traveling mainly for leisure and evenly spread across most socio-economic groups and age ranges.

Another approach to segmentation is psychographic, which is an attempt to capture what is driving the customer’s behavior, such as values, personalities, attitudes, opinion, interest and lifestyle aspirations. For instance, Singapore Airlines provides variations of cabin classes (First, Business and Economy) to meet the product demand of people. Singapore Airlines employs tier membership to provide status preferences to customers. The last segment approach is behavioral which is based on observable issues on consumer behavior when purchasing the products. Characteristics include frequency of consumption, buyer readiness and commitment. The corporate market tends to be a frequent flyer that could gain benefits from Singapore Airline’s Frequent Flyer program, in return for customers’ loyalty to the airlines. Some people are “brand loyal”, they tend to stick with their preferred or familiar brands even when a competing one is on sale.

ii. Targeting

Market targeting, explained by Kotler et al. (2010:199), is the process of evaluating each segment’s attractiveness and selecting one or more of the market segments. Singapore Airlines uses differentiated market targeting, which refers to where firm target several segments and develops distinct products/services with separate marketing mix strategies aimed at various group approach, where they target in accordance to consumers’ needs and to their occupation. Singapore Airlines has two target markets.

The first aimed at people who mostly have a high income with a high class lifestyle and prefer to seek comfort with excellent services rather than to get a cheaper price but do not get the as good facilities and services. The other target market is customary passengers who mostly just want to travel and not too demanding about the services and the facilities. For this market, Singapore Airlines owns a budget airline as well to compete, which is Tiger Airways, to meet the market needs.

iii. Positioning

Kotler et al also described market positioning is developing competitive positioning for the product and an appropriate marketing mix. Added by them, a product’s position is the way the product is defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing product. In this specific circumstance, is how the passengers perceive Singapore Airlines’ service compared to other major carriers, such as British Airways or Cathay Pacific. There are many different general strategies for positioning products. Attribute or benefit, quality and price, use or application, competition, high-tech and high-touch can achieve desired positioning.

Market positioning is about how Singaspore Airlines wants its customers to perceive their products and services in relation to their competitors. Singapore Airlines positioning strategy is using Singapore Girl as a central ingredient in marketing its image. Personified through the girls, customers will have a sensory and emotional experience when travelling with Singapore Airlines, with its commitment to service and quality excellence. Since the traditional marketing communication has often been focus on cabin design, food, comfort and pricing, this strategy of Singapore Girl has successfully gain a positive market positioning in the customers’ heart.

III. Conclusion

There are concrete substantiations why Singapore Airlines has grown from a regional airline into one of the world’s top leading carriers. This paper has analyzed some of the vital marketing issues concerning the strategic way that Singapore Airlines operates to reach their upward achievement nowadays. They have always been setting their customers’ needs and wants as the first priority in order to understand and provide excellent quality service to match the growing demand of the passengers. Only with the clear comprehending and effective implementation of the organization’s selected societal marketing concept, precise identification of the competitive concerns as well as the market segmenting, targeting and positioning, Singapore Airlines has been able to successfully differentiate its brand image and endorsed its prestige status to the whole world.

IV. Recommendations

Performing the SWOT analysis would help Singapore Airlines to identify the key issues for enhancements in its operational strategies. Singapore Airlines needs to keep its superiority and stay on the top of the competition in the international market, by understanding the plans that being pursued by other major players such as British Airways, Cathay Pacific, Virgin Atlantic, etc. Singapore Airlines should continue to differentiate itself and keep on provide up scaling service quality to the customers.

It is recommended for Singapore Airlines to regularly renovate its facilities as well as install new technological features. Improvement and installation of in-flight entertainment system such as latest technology electronics and DVDs, access provision to the CD music and interconnected network games with the passengers inside of the aircraft, ability to send and receive email and internet surfing on selected content, Satellite telephones can be some of the suggestions. Nevertheless, Singapore Airlines should carry on contributing more in its social responsibilities to the community well-being to remain an ethical and trust worthy corporate citizen.

V. References and Bibliography
Ayob, A.M (n.d.). Singapore Airlines Limited: Building a culture of service excellence. Retrieved August 5th, 2012, from Bhasin, H. (2010). Socetal Marketing Concept. Retrieved August 5th, 2012, from

Calingo, L.M.R. (1997). Strategic management in the Asian context. Singapore Airlines: Comparative case studies of the British and Singaporean national airlines. Based on research by Douglas Sikorski. John Wiley & Sons Heracleous, L. & Wirtz, J. (2009) ‘Strategy and organization at Singapore Airlines: Achieving sustainable advantage through dual strategy’: Journal of Air Transport Management. Kotler, P. & Amstrong, G. (2011). Marketing an Introduction. (10th ed).

Kotler, P., Bowen, J.T & Makens, J.C. (2010). Marketing for Hospitality and Tourism. (5th ed).

Market Orientation. (n.d.). In Wikipedia. Retrieved August 4th, 2012, from

Roll, M. (2004). Singapore Airlines flying tiger. From Brandchannel. Retrieved August 6th, 2012, from Roll, Martin. Undated. Singapore Airlines – An Excellent Asian Brand. Venture Republic Retrieved August 4th, 2012, from

The critical success of Singapore Airlines. (n.d.). Retrieved August 5th, 2012, from

Marketing and Singapore Airlines Essay

Marketing and Spring Rolls Essay

Marketing and Spring Rolls Essay.

Executive summary

Daloon A/S, henceforth just Daloon, was formed in 1960 with the name of Van’s Product by the founder Sai-Chiu Van. Mr. Van started his business in his private cellar where he produced spring rolls that he later sold in Tivoli garden in Copenhagen. In 1964 the company changed their name to Daloon which means “the big dragon” in Chinese since dragons are known for being friendly towards humans. Daloon has continued to grow and today they have their products sold in several European countries with their main business in UK, Germany, and Scandinavia.

The company also has significant export markets in France, Finland, Spain, Austria and Switzerland. Daloon is a major brand throughout Europe within the frozen ethnic snacks market and is in fact the largest manufacturer of spring rolls in the world. We tried to make the requested report including updating information about the external factors which might influence the company’s market potential and the future activities.

Our market research aims on discovering and assessing India as a new prospective and promising market for the continental European Ethnic “Ready to eat”/”Ready-to-cook” Food supplier Daloon. The final goal of the market development, thus strategy of growing, is entering the entire market of India but due to expected high cultural, macro and micro environmental differences, we will mainly deal with the market of Delhi. In the marketing part of the report you will find a definition of the market Daloon is inserted market segmentation and recommendations about relevant target groups. In the end of the marketing analysis you are going to find our suggestions and recommendations for Daloon in order to insert their product, spring rolls, in a different and international market.

When we speak about National culture and Organizational culture part we assessed the main challenges that the company may face dealing with a different culture. Choosing India as a potential market for a European company requires taking some extra risks if you look at cultural differences between Europe and Asia. India is an attractive market for investors and foreign companies, which makes it important to have an understanding of their culture. Organizational culture does not only change from country to country but it also changes from company to company, because the beliefs and values differ. Since we have chosen New Delhi (India) as the possible future market, there should definitely be some changes made, thus keeping the working conditions acceptable for their culture. So in this part will be analyzed the two cultures and compared different solutions how to adapt from one to another.

1.0 Introduction

“Daloon is the Chinese word for “The Great Dragon”” Daloon is a major brand throughout Europe within the frozen ethnic snacks market and is in fact the largest manufacturer of spring rolls in the world. Daloon A/S, henceforth just Daloon, was formed in 1960 with the name of Van’s Product by the founder Sai-Chiu Van. Mr. Van started his business in his private cellar where he produced spring rolls that he later sold in Tivoli garden in Copenhagen. His business grew and in 1961, the company took over its first factory. In 1964 the company changed their name to Daloon which means “the big dragon” in Chinese since dragons are known for being friendly towards humans. The company chose this name because consumer experience is something that’s being valued high within the company.

Daloon has continued to grow, and today they have products sold in several European countries with their main business in UK, Germany, and Scandinavia. The company also has significant export markets in France, Finland, Spain, Austria and Switzerland. Spring rolls are still Daloon main product, and the group currently produces over 100 different varieties from 20-200 g for cooking in frying, oven and microwave. Daloon range in recent years been extended with a variety of oriental snack products in addition to the Danish specialties, the company has made over many years. The products are made in ‘state of the art’, EEC approved manufacturing facilities in the UK and in Denmark, the home country of Daloon A/S. Both facilities hold the prestigious, BRC Grade A and IFS higher level accreditations.

This means that you can be absolutely confident in the first class technical and quality control principles, which the company applies to every aspect of their production operations and support services. Their goal is to further enhance their position as a leading supplier in the market for ethnic convenience foods, and be the modern consumers preferred choice. While they are mostly known for their spring rolls their product line also includes Mexican and traditional Danish food. The products are made of quality materials and made with health and convenience in mind.

1.1 Problem statement

The frozen ethnic food producer Daloon asked our team to develop and conduct a market research about an international market that is not yet covered by the Company in terms of supply and export. The core problem or question is, if there is a country or market that provides suitable conditions for Daloon to enter and by analyzing demographical, behavioral- and social issues, find out what would be the best way to target and position the products in that market in order to have a successful and positive market development of Daloon. So in our case we are going to analyze India, especially Delhi, in the mentioned aspects in order to evaluate the current and prospective market situation and then be able to give a counsel about if Daloon should enter that market and how it would be advisable.

1.2 Delimitations

This research focuses on aspects regarding the economy, current situation and development of India; by means of the capital Delhi. Moreover the gathered information is supposed to provide insights into the cultural, behavioral and consumption decisions of potential target groups within the market. The outcome is supposed to be supportive for marketing planning and internationalization strategies. The research does not take care about Supply chain aspects or manufacturer as cooperative partners in the targeted market. Moreover the outcome will not be dealing with specific aspects of a possible marketing mix or an Integrated Marketing communication plan.

1.3 Report structure

This report was structured according to the importance of each topic for a better understanding of the overall project. Introduction talks about the company and their tradition in the Danish market. Later you will find Methodology Section approaching different theories applied in our researches and analysis.

During the report you will find an analysis based on marketing research and statistical analysis, organizational analysis of the company and an analysis comparing and contrasting both cultures we make reference to during the report: India and Denmark. According to the conclusion of the marketing research we were able to analyze the market we are going to recommend to Daloon in different aspects such as chosen market, target group and segmentation.

In the final part of the report Discussion Section approaches the main points argued during the project leading to Conclusion Section and Appendixes.

1.4 Methodology
1. Reviewing theories and models
Market research and statistics:
* Desk research – it is used for gathering and sorting out secondary data relevant to the research. * Field research – for gathering primary data concerning specific information needs which cannot be met otherwise. * Test for independence – used for determining if a significant relationship exists between two survey variables. * Correlation analysis – used for evaluating the relationships strength and the direction in which two variables are dependent one on another. * Hypothesis test for proportion – used for testing two proportions, one of them based on the survey, for discovering if there is a statistically significant difference between them. Organizational culture and national culture:

* Hofstede’s 5 dimensions approach – for comparing the national cultures of Denmark and India using national scores on the dimensions power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance and long-term orientation. This is done in order to be outlined the possible areas of agreement and divergence in a business context. * Schein’s layered conceptualization of culture – according to this model the organizational culture consists of 3 layers. At the heart are shared basic assumptions on which are based the next two more visible layers – values and artifacts. It helps understand the organizational culture elements and which of them can be changed in order the company to succeed in the new Indian market. * The double “S” cube, Goffe and Jones – the model helps understand which is the prevailing culture type in the organization based on the degree of solidarity and sociability it has.


* SWOT – the model is used to be analyzed the strengths and the weaknesses the company has and the opportunities and the threats it faces in connection with entering the new Indian market * PEST – this analysis includes the political, economic, social and technological aspects of the Indian market which should be taken into account for the internationalization process of the company * Porter’s five forces – this framework gives understanding about the current situation in Indian market concerning the customers, suppliers, products substitutes, new entrants and competitors of the company. * Boston growth share matrix – used for categorizing the products and finding out on which to focus in the international Indian environment. * Ansoff matrix – gives an orientation what growth strategy is appropriate in the new Indian market

2. Source criticism

Main information source for this project, besides the compulsory books for Marketing management semester 2, is the Internet. As far as it concerns governmental and statistical reports it can be considered reliable. However, there is always a possibility that companies’ websites and articles in magazines give outdated or subjective information.

3.0 Market research

3.1 Background for Research

This market research aims on discovering and assessing India as a new prospective and promising market for the continental European Ethnic “Ready to eat”/”Ready-to-cook” Food supplier Daloon. The final goal of the market development, thus strategy of growing, is entering the entire market of India but due to expected high cultural, macro- and micro environmental differences, we will mainly deal with the market of Delhi. Delhi is the capital of India and therefore a suitable representative city for the entire country. This step is made in order to lower risks and gain experience on the Indian BTC Market, as much as getting to know the national- and business culture of India.

Research reason: Due to the fact that India is nowadays known for being a country with tremendous business opportunities and a constantly rising growth since 2002, makes it a bit easier to investigate and research on that topic because there is already a big mass of existing information sources which we can use in order to evaluate the market as an opportunity for Daloon. Furthermore this research should give a hint if it is really advisable to enter the Indian market or not. The economic figures of India speak for themselves and reveal India as a country with a remarkable potential. Growth is omnipresent like for example in the Gross domestic product per capita which grew in the past 3 years from 3.200$/ 18,120.10 DKK (2009) to 3.700$/20,951.36 DKK (2011).

The GDP growth in 2011 was estimated with approx. 10% and was constantly growing throughout the last years as a result of India´s development into an open-economy and the benefiting from globalization and internationalization. Furthermore Delhi has an expected household income growth of annually 10% over the next 8 years which emphasizes once again the huge potential for entering markets. These gigantic upcoming shifts in the household will have a huge impact on the general demand for everything.

There are many other figures and facts that underline the potential and growth of India in terms of business occasions and market opportunities. These are the reasons why this research is about to evaluate and assess in order to find out what would be the best way to enter the food market for Daloon. Research topic: The Market development of DALOON into India´s capital Delhi. Research Objective: To find out if the current market offers suitable conditions and how DALOON should enter the “Ready-to-Eat”/”Ready-to-cook” market in India, taking Delhi as the first step of the growth strategy.

2.2 Research questions:

RQ1: What is the recent demographic situation of Delhi?
– sRQ 1.1: How many citizens live in Delhi?
– sRQ 1.2: How is the per capita income developing from past to prospective future?
– sRQ 1.3: What are the population dynamics of Delhi?
– sRQ 1.4: Which languages and religions dominate in Delhi? – sRQ 1.5: Is there a change of society’s values and lifestyle? RQ2: Which products of Daloons´ Product Portfolio may be suitable for the market of New Delhi? * sRQ2.1.: What does the product assortment of Daloon consist of? * sRQ2.2.: What is the general food consumption/eating behavior of the Indian urban middle class/upper middle class? * sRQ2.3.: Is the product assortment attractive for the Delhi inhabitants? * sRQ2.4.: Which product/s best fit the Delhi inhabitants’ taste and lifestyle?

RQ3: What role does “Ready-to-eat”/”Ready-to-cook” Food play in India? * sRQ 3.1. : Is there a growing “Ready-to-eat”/”Ready-to-cook” industry in India? * sRQ 3.2. : Is the market very competitive or still a “blue ocean”?

2.3 Information needs / Variables
* Numbers of Citizens in Delhi
* Delhi´s Citizens as a percentage of the entire Indian population
* Gross domestic product (PPP per capita)
* Economic growth rate of Delhi
* Officially spoken languages
* Main religions

* Percentage of religions
* Change of society´s values
* Proportion of employed women (Nowadays, Past)
* Product Portfolio of Daloon
* Indians’ attitude toward Chinese food
* Indians’ preference to eating home/outdoors
* Attitude towards unknown brands for frozen food

* Price preferences for the product
* Special Indian food consumption
* Percentage of Indian vegetarians
* Vegetarianism in India
* Growth rate of the “Ready-to-eat”/”Ready-to-cook” food industry
* Who are the main competitors in “Ready-to-eat”/”Ready-to-cook” food Market * Market shares of the main competitors
* Available niches at the RTE market

2.4 Delimitation/Scope

This research focuses on aspects regarding the economy, current situation and development of India; by means of the capital Delhi. Moreover the gathered information is supposed to provide insights into the cultural, behavioral and consumption decisions of potential target groups within the market. The outcome is supposed to be supportive for marketing planning and internationalization strategies. The research does not take care about Supply chain aspects, possible supplier or manufacturer as cooperative partners in the targeted market. Moreover the outcome will not be dealing with specific aspects of a possible marketing mix or an Integrated Marketing communication plan.

2.5 Research Design

Primary Data
A survey will be conducted for gathering qualitative and quantitative information regarding research question 2 (mainly 2.2, 2.3, 2.4). A questionnaire will be designed and used in order to explore the food- and eating behaviour of Indians as well as the attitudes and preferences towards the product. Secondary Data

The main source of information for this research will be secondary data due to the fact that there is already a massive amount of existing data and information available, both quantitative and qualitative. We will start with desk research what consists of reading articles, journals, books and other academic sources related to the topic. The Internet will be of course one of our main sources during the desk research. Description of data collection method

Desk research will be conducted in order to gather external information which is relevant to the research. Various sources for this information will be mainly India’s statistics, governmental reports and analyses, online business magazines. Field research will also be carried out for providing more specific information, which is either not existent in the secondary information sources or not accessible. This information will regard the eating habits and preferences of the modern Delhi inhabitants with a focus on the frozen fast food products. For this purpose a personal interview with the potential customers seems to be an appropriate choice. The main reasons for choosing this method for data collection is because it provides both qualitative and quantitative information, there is a direct physical contact with the potential customers, the response rate is usually high and it is typically used in the early stages of the research plan.

The interviews will be carried out in supermarket/hypermarket chains or wholesale retailers located in Delhi. Firstly because these places have high potential for meeting future customers since they are used by the urban working middle class for buying consumer goods. Such chains are Carrefour, Metro Cash and Carry, Biz Bazaar and Spar. In the choice should be included both Indian domestic chains and Western ones because the aim of the survey is to explore the eating behaviour of the modern “westernized” Indians and the fact that Daloon is a European company. The prepared questionnaire includes 15 short and easy to answer questions in order to be taken less from the respondents’ private time for shopping and to be ensured higher response rate. Although this method does not guarantee representativeness of the results, it gives good understanding for the included topics.

Marketing and Spring Rolls Essay

Marketing Mix (4 P’s) of Milo Essay

Marketing Mix (4 P’s) of Milo Essay.


In Greek mythology there was a Roman athlete named MILOn who was famous for his feats of strength. Legend has it that he once carried a four-year-old bullock through the stadium in Olympia, Greece! You may not grow as strong as Milon by drinking MILO, but it is a very tasty way to get many of the nutrients you need to grow strong.


‘Milo’ the energy drink nestled into the Indian market in 1996. The responsibility of launching the drink in a market dominated by time tested Bournvita and Boost was no easy task for Nestle.

Being the fifth player in the brown beverage market, the drink was up against Bournvita which had an enviable market share of 40% and SmithKline Beecham, a strong contender, especially in the south. After establishing Milo as the world’s number one energy drink and its taste benefits, the attention shifted to presenting its emotional benefits too.

The focus was now on revamping the brand image from being a tasty energy drink to one that provided extra energy to ‘win’.

New Milo is for active, growing children its energy releasing B vitamins give them the extra energy, vitality and stamina that make them winners. Milo, the chocolate milk beverage targeted essentially at teenagers in the urban marketplace is the fastest selling product here. The only surprise finding being that instead of growing up kids, senior citizens like to have it everyday with their glass of milk.

Milo now has Actigen – E which consists of

Vit B1 (Thiamin)helps the body release energy from carbohydrates during growth and muscle Vit B2 (Riboflavin)helps body release energy from protein, fats and carbohydrate metabolism, helps improve athletic Vit B3 (Niacin)associated with the catabolism of nutrients and the production of energy Vit B5 (Pantothenic acid)essential in the metabolism of protein, fats and carbohydrates release of energy Vit B6 (Pyridoxine)together with related compounds, cofactor the enzymatic conversion of amino-acids and glycogen Vit B8 (Biotin)required for specific enzymes involved in energy metabolism to function Vit B12 (Cobalamin)helps keep cells in the circulatory, nervous and digestive system in good working condition, regulates the body’s oxygen at a level that promotes release of energy Vit C (Ascorbic Acid)increases the absorption of dietary iron from the intestine to the body Ironessential for transporting oxygen from the lungs to the tissues for storage: significant in the oxidative production of energy Calciumessential in cellular metabolism, involved in muscle contraction, transmission of impulses in nerves, blood clotting mechanisms and enzyme activation Magnesiumneeded for over 30 enzyme system in the body to function effectively, necessary in both anaerobic and aerobic energy generation Phosphorouscrucial in the metabolism of all major metabolic substrates; co-factor in a variety of enzymes and is the reservoire for metabolic energy Promotion:

Using the consumer insight that mothers are driven by a need to support their sons’ hard work and help them succeed when under pressure, the agency launched an impressive ad campaign. The research following the campaign revealed the need for Milo to be perceived as a drink with 2 strong deliverables- Energy and Taste. Thus a strategy was adopted wherein the agency targeted children belonging to the age group of 7-12 years and through them their mothers. The strategy worked and led to a 40% volume growth, with the market share growing to 8.8%. The agency came up with commercials addressed to children as the target audience and mothers as the secondary audience. The campaign proved to be successful with the drink emerging as the No. 2 brand in 3 out of 4 zones, and its market share growing to an impressive 11.4%.

Not satisfied, the agency undertook another research, which revealed two issues that needed to be addressed immediately. Firstly the pester power, which in this category was not very high and secondly, the fact that Milo’ s brand promise of winning was unfortunately being perceived as an advertising/ marketing claim. Hence Nestle embarked into yet another campaign, this time with the intention of improving the brand image by overcoming a mother’s apprehensions and getting her to subscribe to the brand promise. Other than that it takes an active part in the sponsorship of sports event at both school & colleges, they also distribute T-Shirts having Milo logo and other such apparel. This helps company to promote their product as well as build their Brand Awareness.


Distribution is the most important thing next to sales. Sales are not possible if the distribution network is not effective. If the product is not available in the market at the right time & at the right place the customer may switch to another product which can be a great loss the company.

Distribution Pattern followed by Milo:


Taking competition into consideration Milo provides its product at an affordable price to the customer than any other HFD in the market and no compromise on quality is made. Because of such competitive price it is also catering to the middle class & lower middle-class.

Weight(gm)Box pack (Rs)

Milo comes in an attractive Box pack which is green in color which is very attractive and eye catching other than that it is light weight as compared to the bulky glass jars of other companies, and it is also convenient to store & handle. With glass jar there is always a chance of breaking and harming the child if he tries to have milk on his own. But the packaging of Milo is so convenient that a child can easily prepare his own milk preparation and have it whenever he wants.

Marketing Mix (4 P’s) of Milo Essay

Marketing of Zoo Essay

Marketing of Zoo Essay.

Q .Which tools and media would you use to attract visitors to see Gorilla Kingdom?

First I would like to say something about the actual gorilla kingdom that the ZSL London zoo has created to boost the animal diversity that it is having. Gorilla kingdom is a new product offering by the zoo authorities in which not only gorilla but the scenic beauty of the area also in which it has been conceptualised is an eye catching sort of thing.

Here follows the description of gorilla kingdom, “The Island that will form the gorillas’ outdoor space is a beautiful green oasis boasting a cave, heated rocks, a hill that provides a perfect gorilla vantage point and a scene-setting waterfall that cascades through the gorillas’ home and the public area. African style plants will give the gorillas extra food to munch on if they want and trees and ropes offer a stimulating climbing environment. The gorillas’ indoor day gym includes ropes to swing on, climbing walls all around and nesting baskets high up for them to snooze in.

” Now coming to the important features of Gorilla that the ZSL London Zoo can highlight:-
* It is showcasing an endangered species.
* Gorilla is very intelligent animal.
* They show emotions.
* The Gorilla Kingdom has been created as a place of experience and not only as a place of sightseeing.
* Its natural habitat is endangered.

Following are some advertising activities that the Zoo authorities can undertake to showcase the various features / features mix of the Gorilla kingdom to attract the visitors to visit:- 1. Creating Awareness – To create awareness about the gorilla kingdom the authorities can start with pamphlets and leaflet distribution among the tourists and locals at places where they go for leisure, those leaflets should have information about Gorilla Kingdom and Gorilla. 2. Liking – The Zoo authorities need to create liking about the animal and the gorilla kingdom both, for this hey can use radio. Radio will really help because a radio is something that keeps playing mostly on streets, the authorities can ask radio channel to create a character on the lines of gorilla and use a voice that sounds peculiar to Gorilla.

This will attract the youths and children’s. 3. Preference – There are a lot of parks, malls in London where the people generally go for experience, so the London Zoo authorities should create a image of Gorilla Kingdom and promote it as a new place to experience. For doing this the authorities can go for advertisement in newspapers and on the tickets of buses and metro throughout the London. 4. The authorities can talk to some local souvenir manufacturing units to print the image of Gorilla or the Gorilla kingdom along with a enticing message on it. A good example of it is Coffee Cup advertising. 5. Crowd sourcing – The concept of crowd sourcing has given way to the trend of user-generated advertisements.

User-generated ads are created by consumers as opposed to an advertising agency or the company themselves, most often they are a result of brand sponsored advertising competitions. For the 2007 Super Bowl, the Frito-Lays division of PepsiCo held the Crash the Super Bowl contest, allowing consumers to create their own Doritos commercial. The resulting ads were among the most-watched and most-liked Super Bowl ads. 6. The Zoo authorities can also ask travel and tourism companies to show information on their websites as new things to see in London and marketing as must watch destinations along with printing on their coupon and tickets.

The points that I have given above could be used by the ZSL London Zoo authorities to attract visitors. The various media used in my suggestion were like:
* Radio advertising
* Print advertising
* Mass advertising

Marketing of Zoo Essay

Extended Marketing Mix Essay

Extended Marketing Mix Essay.

Launched on 3rd of October 2009 by the McLaren’s Group which has been a name with great passion towards improvement of motor sports in Sri Lanka, Speed Drome (Pvt) Ltd. is every Pro/Go-karter’s heaven on earth. Located amidst green pasture in close proximity to the parliament complex and Buddhadasa play ground in Battaramulla, Speedrome is a fully equipped and professionally fitted race track which includes 19 go-karts, computerized timing and scoring systems, professionally trained staff, designated spectator areas and air-conditioned VIP gallery, all for the sake of providing their customers with the best experience that they can offer.

Go-karting may be Speed Drome’s main product but they haven’t stopped there as far as the entertainment aspect is concerned, with a sports bar and a luxurious lounge.

These two additional services are provided for customers to host parties or any corporate events. Speed Drome also has taken an initiative in providing a swimming pool to cater to discerning corporate executives and high profile lifestyles.

As for the little kids, Speed Drome has taken the liberty of creating a kiddies race track as well. To put it simply, Speed Drome aims to be not only an attraction for Pro/Go-kart lovers everywhere but also to provide the entire family with leisure activities and entertainment. Speed Drome has gained much popularity ever since its launch, with an exhibition kart race in which the participation of Yoshitha Rajapaksa, Aravinda De Silva the former cricketer who is a keen fan of motor cars along with the lady racer S.A. Lakshika and Jackson Anthony were noted.

Karting championships such as “Speed Drome All Island Karting Championship Rounds 1-3 ” show off exactly what Speed Drome is all about as many professional formula one drivers take part in these competitions exhibiting the real skill involved in Go/Pro-karting, while attracting even more potential customers and leading to other karting championships. Finally the major plus point for Speed Drome is the fact that it is the one and only Go/Pro-Karting facility in Sri Lanka as yet and with its added assets Speed Drome’s future seems very fruitful with all the necessary standards being maintained.

The Extended Marketing mix
1. Product

In a service organization, the product is referred to the service being delivered to the consumer which is intangible, inseparable, variable and perishable. The speed Drome (Pvt) Ltd. (Appendix 1) offers a variety of services which can be explained in terms of entertainment, leisure and experience. Their main focus is on providing their customers with the experience of real Pro-Kart racing (Appendix 2) and in addition to that other entertainment and leisure services are also provided such as the Kiddies track, (Appendix 3) the sports bar (Appendix 4) and the swimming pool (Appendix 5) along with the Luxurious Lounge (Appendix 6).

The nature of the service in terms of:

Intangibility: True services are intangible. Therefore when you leave Speed Drome there is only one memory or the experience that remains, which is riding a pro-kart at the only available place in Sri Lanka. Some elements are tangible such as the karts used, the swim pool etc., but the core benefit of the purchase is not, and that is the sheer experience of riding a pro-kart and feeling its speed. Inseparability: The service provided by Speed Drome is inseparable as the physical presence of a customer is essential in this service. However, with the help of its physical resources the overall service takes place when only the consumer that is the person interested in riding a pro-kart meets the service provider.

Perishability: Karting or any other service provided by the company must be consumed when offered. It cannot be produced now for consumption at a later stage / time nor can they be held or stocked because the value of this service exists at the point when it is required. Variability: This service is highly variable because Speed Drome is the only service provider for kart racing in Sri Lanka currently. It has its very own standardized quality which cannot be competed with another form of entertainment service, as it provides a unique and an incomparable experience.

The above mentioned characteristics define the services they provide which attract youngsters and veteran drivers alike.

2. Price
Pricing is one of the most important marketing mix decisions and it is the only marketing mix variable that generates revenues. Speed Drome (Pvt) Ltd. is a profit and cost oriented organization.

Their main objectives are to:

* Maximize their profits,
* Achieve a target return on investment,
* Recover investment costs over a particular time period And to,
* Generate volume so as to drive down costs.

Speed Drome doesn’t pursue the status quo or sales oriented objectives as it is the only organization specializes in this certain industry in Sri Lanka. Due to the same reason Speed Drome follows the price skimming strategy. Their prices for all the services are relatively high (even though they don’t have competitors in the same industry) compared to the other entertainment forms in the market. This is due to the service quality, image and to prevent competitors enter the market easily.

The following are the current prices attached to the services being provided by Speed Drome:

* Pro-Karting/ Go-Karting (10 minutes) – Rs. 750
* Happy Hours Karting (every Tuesday 3pm-8pm) – Rs. 500
* Swimming pool charges (unlimited) per person – Rs. 450
* Membership Benefits:
* Membership free Rs.15000
* Rs. 750 tickets for Rs.500
* Kart trainer amount Rs.1500 for Rs.1000
* Members can use pool free, additional guest with members charged only Rs. 250 each
* 10% discount for corporate package with fully use of pool and entertainment area. Additionally the race fees, special event fees and training programme fees are charged.

3. Place

The place part of the marketing mix is where the customer receives the service or where the service is located. Speed Drome is Located in close proximity to the Parliament Complex and Bhuddhadasa Play Ground, in Battaramulla. It has situated itself around major cities such as Colombo, Rajagiriya, Nugegoda and Pitakotte which are all highly residential areas have all been thought out very carefully by Speed Drome management prior to construction. This is to boost their target market which is basically the upper class of community because although the cost for riding a Go-Kart (which is something very rare to do in Sri Lanka) seems reasonable as far as the cost for maintaining the Karts and equipment needed go, Unfortunately though for the majority of Sri Lankan’s the price to pay for such an experience is highly unreasonable.

The area in which the Arena (or facility) has been built on is extremely large and compliments the Track very well and to add to this the lush scenery surrounding the Speed Drome gives this track a unique feel to it. Speed Dome’s location has one more major benefit which is that it’s just a drive away not only from the cities surrounding it but also from other major cities in the district like Colombo and Dehiwala etc. Over all the decision to build Speed Drome where it is an extremely well thought and strategic move which has shown and is yet to keep bringing in results.

4. Promotion

Promotions have become a critical factor in the service marketing mix. Services are easy to be duplicated and hence it is generally the brand which sets a service apart from its counterpart. As mentioned under the topic ‘Place’ Speed Drome’s marketing mix carters to a selected segment, which is known as Niche marketing. Its service is all about providing entertainment for those who desire the ‘need for speed’. What better way to communicate about this sheer experience which can be gained at only one place in Sri Lanka other than promoting the service? The obvious competitive advantages Speed Drome possesses are:

* Service Differentiation

The only facility that provides karting experience in Sri Lanka.

* Image Differentiation

Karts which are only available at Speed Drome in Sri Lanka and the unique logo itself distinguish the service provided.

How Speed Drome gets through to the customer

The main objective of Speed Drome is to make the potential customers well aware about their new service. Hence the following methods are mainly used to promote their service-

* Weekly offered special karting hours

* ‘Happy Hours’ Every Tuesday from 3pm-8pm
(Rs.750 tickets at Rs.500)
(Appendix 7)

* Karting competitions
* Thank God its Race Day Competition (Appendix 8)
* All Island Karting Championship (Appendix 9,10)
* Exhibition kart races of celebrities (Appendix 11)

* Publications
* News Paper advertisements
Ex: Daily Mirror, Sunday Times, Sunday Observer
* Magazines
Ex: Things to do in Colombo, Esteem, Hi etc.

* Online Advertising
* Social network groups
Ex: The official Facebook Group with latest updates. Twitter etc.

Extended Marketing Mix Essay