Assignment on Marketing Management - FMCG Product

1|P a g e - I n di v i d u a l A s si g n m e n t f o r M a r ke t i n g M a n a g e m e nt

Positioning of a FMCG Product

By

M. Fazul Ansar

Module:

Marketing Management

2

|Page- Individual Assignment for Marketing Management

Introduction:

The purpose of this assignment is to:

y

Suitable positioning opportunity, either to continue the present positioning or consider re-positioning of the chosen product.

y

Synopsis of the Group Assignment and chosen positioning to create demand and profitable sales volume

y

Detailed explanation of the following tools of the Tactical Marketing Programme of a Marketing Plan of the chosen product     

Product Price Place Promote People

The assignment presents the following:

1. Suitable Positioning opportunities, continue with present positioning or RePositioning the Chosen Product 2. Synopsis of the Group Group Assignment Assignment 3. Creating Demand and Sales Volumes for the Chosen Product 4. Detailed Explanation of a Tactical Marketing Programme of a Marketing Plan of the chosen product 5. Reference

3


1.

Suitable

Positioning

Opportunities,

continue

with

present

positioning or Re-Positioning the Chosen Product

i.

Define Positioning

Al Ries and Jack Trout (1981) Act of designing the company¶s offering and image to occupy a distinctive place in the mind of the target market. ³Positioning starts with a product. A piece of merchandise, a service, a company, an institution, or even a person but positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.´

ii.

Present Positioning ± Maliban Vs . Competitor (Munchee) Maliban is a brand name synonymous with biscuits in Sri Lanka. Maliban is positioned as a good quality biscuit, with a traditional Sri Lankan image and identity. Munchee, a relatively new entrant to the biscuit market, has over the years challenged Maliban's leadership position, through aggressive marketing, innovative product development and clever segmentation and positioning. Munchee, basically identified products which Maliban dominated and challenged them with clever

renovations! For example, Munchee Tikiri Marie (Maliban-Marie) Munchee Super Cream Cracker (Maliban Cream Cracker) and Munchee Real Lemon Puff (Maliban Lemon Puff). Whilst Munchee kept on attacking Maliban, Maliban initially adopted a laid back attitude, revolving around "let's wait and see". This was the opening Munchee was hoping for and they capitalised on this opportunity. When one analyses Munchee's strategy, they clearly demonstrated how a market challenger should behave. In marketing warfare terms, Munchee adopted a threepronged challenger strategy, namely, frontal attack, encirclement attack and segmental attacks. Let¶sthe writer strive to explain these strategies.

4


Munchee took Maliban head-on introducing µme-too¶ products with improvements in quality and taste. Further, product focused marketing communication activities were carried out, supplemented by excellent distribution width and depth. Munchee also encircled Maliban by utilizing the marketing mix effectively. Product launches, modifications and new introductions, aggressive penetration pricing, greater depth in distribution and focused marketing communications. All these marketing mix activities were carried out simultaneously, thereby choking (encircling) Maliban. As against Maliban's traditional biscuit image, Munchee positioned itself as a modern, dynamic, youthful brand of biscuit. Basically, the Maliban personality would be a greying traditional person, whilst for Munchee; it would be a youthful and aggressive person. (A modern Sri Lankan) What was Maliban's response to all these attacks by Munchee? First and foremost Maliban was too late in responding. responding. In the opinion of the writer, they would have lost considerable market share, during their period of inactivity. Maliban counter attacked Munchee Super Cream Crackers, by communicating that they were the pioneer, thereby re-emphasizing their traditional personality. (Cream Cracker with lunu miris and ambul thiyal). The writer¶s view on that it was certain that Munchee would have been overjoyed by the Maliban response. Munchee would be saying "I told you so. Maliban belongs to the older generation". All in all, Maliban's response was quite weak and they did not assert themselves as market leaders. Remembering what the Maliban¶s roots, and looking to the future, Maliban steps in to this new generation with the confidence gained from fifty years of giving Sri Lanka the very best in biscuits.Malibanhas launched its new corporate campaign ³Full of goodness´ to reposition its superior position in the consumer¶s minds. They inspired to deliver the best to their consumers. Present positioning is getting decline in the market however there is no product differentiation has been done the requirements of customers change over time and thus the product offering has to bechanged accordingly. What is the fashion today may be out of market within few weeks. Thuscontinuous innovation is required.

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To counter these changes Maliban has not introduced new products continuously and has not phased out the old ones which were at the decline stage of their PLC. The product to its maturity stage. There can be ample number of reasons for product getting mature. For example, entry of a new product that may be offering better quality at a cheaper price which has induced the consumer to shift. This calls for some great marketing strategies that could revitalize the product so that the product stays in the market. But at this point, it¶s difficult to survive, as there are new entrants that are now offering better priced products. This maturity often leads to death of the product and this is the time when company is incurring losses due to its production (no sign of profits). iii.

Re-Positioning the Chosen Product The savoury biscuit market has seen considerable growth in recent years, benefiting from the growing consumer trend toward healthier alternatives to sweet snacks. There is plenty of opportunity for further growth, especially among parents who are keen to encourage their kids to eat more healthily.

The desire to provide healthy alternatives to sweet and fatty foods for children has boosted this category. The fact that the sector is considered healthier than other food categories also means it does not face the same pressure from the government over ingredients or advertising to children.

Maliban should recognise the value of their brands' healthier status and are promoting products as 'naturally low fat' and 'high in fiber'. Some have added seeds and grains to strengthen the health message.

The biggest consumers in this category tend to be older adults, people living alone and affluent consumers. The good news for biscuit manufacturers is that these demographic groups are growing.

As

companies

increase

the

number

of

claims

for

their

brand,

they

risk

disbelief and a loss of clear positioning. In general a company must avoid four major

positioning

errors.

Those

positioning and doubtful positioning.

are

under

positioning

over

positioning,

confused

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2.

Synopsis of the Group Assignment The objective of the group assignment has done based on the following topics: y

The group has chosen the Maliban Savoury product for the group Assignment

y

Briefed on historical data of the product and current market trend, market share etc.,

y

Identified the external macro and external micro environment analysis for the chosen product

y

Analyzed the competitive forces that could affect the chosen product based on the Porter¶s five forces model and ascertained key issues has come out of the study

y

Identified the possible segmenting variables and to applied those variables to carry out market segmentation for the chosen product

y

Identified an additional segment for the chosen product where the product could server for the eastern region of the country which was inaccessible last 30 years

y

Identified product differentiation of the chosen product by addition nutrition values in Savoury product which would supported with rich Dietary Fiber and zero Cholesterol

y

Re-positioning the chosen product as µ 'naturally low fat' and high in fiberwill

boost your day' ¶

3.

Creating Demand and Sales Volumes for the Chosen Product

These are the basics techniques for creating demand in order to launch the product: y

y

Basic things needs to do in order to jump-start the product Advertising

y

Enthusiasm and Positive communication;

y

Be alert to the market news;

y

Survey;

y

Sales;

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y

Promotion;

y

Marketing

The KEY JUMP-START for every business would be the option you select about MARKETING, SALES and your PRODUCT to contribute and benefit whoever that will use it. The thing to do first is to access requirement and what market expected to fill according to the market needs. For instance, if an organization that create savoury product and the producer happened to hear that complains about a product that run in the market which loaded with salt, high cholesterol and Carbohydrate Carbohydrate that can cause heath hazards etc. what the organization observe and alert to what is the need and want of the public in order to match their needs, and thus the organization set-up to fulfill their exact demand by creating an exact new brand of which would very heartiest biscuit and balance your Calare requirements that will answer all their requirements. Based on the above, once the product developed, promote it by getting the word out. And here

is

the

most

important

part

of

how

it

found

right

public:

Now, what is the definition for ³right public´? That would be a public, which have a good opinion on Maliban product. The consumer agrees with it and ready to buy it right and there. That

is

what

it

called

a

product,

which

sells

itself,

without

any

effort.

This could be done by SURVEYING SURVEYING that consist a list of questions that represent the idea/s to a variety group of people. When the organization satisfying with the amount of answers they get, the next phase will be categorized the public¶s answers. The majority of the answers will give a very good grip of who is the right public to market to! Here is how you do it: The repetitive words, ideas, pictures, thoughts, locations, etc. that appear over again in many answers. These words would be magic words which established as effective by survey.

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Now we know that our clients favor have high demand for Healthier Biscuit. This classified high by the survey in the mind of the peoples. Next is the advertising the product. The advertising will contain the words that have established effectively by the survey. Plan the advertisement appropriately by ongoing plan. Every product and campaign need to be listed and should keep track of it, thus it will be easy to evaluate and analysis them at any time. It would recommend recommend that eye on the product movements every now and then for reinforcement.

Maliban Savoury and Price mix y

Adopted a Market Penetration strategy i.e. low price along with the capturing of a large market

y

Providing a good quality product - the value pricing method.

y

The value-for-money positioning helps generate large sales volumes for the products

y

Price should be available in Re 30 to Rs 35 priced packets

y

Profit margin for distributors is 5% and for retailers is 10-12%

y

Adopt a variation in its sales due to increase in price marginally

9


4

Detailed Explanation of Technical Marketing Programme of a Marketing Plan of the chosen product i.

Product

How should the company design, manufacture the product so that it enhances the customer experience? A product is any offering that can satisfy a need or want. The major types of basic offerings are goods, services, experiences, events, places,properties, organizations, information and ideas. The organization gives moreimportance in quality, packaging, services etc. to satisfy the customers. Theproduct hasits life cycle. The product strategies are modified in different stagesof product life cycle.

Maliban has intentionally kept its product depth and product width limited. Maliban known the behaviour of the Sri Lankan customer and provided a totally different menu as compared to its competitor/s offering. Maliban should continuously innovate itsproducts according to the changing preferences and tastes of its customers. The recentexample is the introduction of the Chick Bits. Maliban bring with it a reputed brand, class biscuit quality andexcel lentcustomer specific product features.

ii.

Place

Where should be the product be available and the role of distributionchannels? The place mainly consists of the distribution channels. channels. It is important so that the product isavailable to the customer at the right place, at the right time and in the right quantity.Nearly 70,000 outlets stock its product. The proper distribution means proper availability of the product.

iii.

Price

What should be the pricing strategy? Pricing includes the list price;it should also take into the consideration the probable reaction from thecompetitor to the pricing strategy. strategy. This is the most important part of the marketing mix as thisis the only part which generates revenue. All the other three are expenses incurred. The pricemust take into consideration the appropriate demandsupply equation.

10 | P a g e - I n d i v i d u a l A s s i g n m e n t f o r M a r k e t i n g M a n a g e m e n t

Maliban should adopt certain value pricing; fairly low price for high quality product to increase overall sales volumes.

iv.

Promotion

What is the suitable strategy and channels for promotion of theproduct? The various promotion channels should be used by Maliban to effectively communicate theproduct. A clear understanding of the customer value helpsdecide whether the cost of promotion is worth spending.There are three main objectives of advertising for Maliban are to make people aware ofan item, feel positive about itand remember it. The right message has to be communicatedto the right audience through the right media. Maliban does its promotion throughtelevision, hoardings and bus shelters for their regular products. They use print ads and the television programmes arealso an important marketing medium for promotion. Some of the most famous marketing campaigns of Maliban were:

y

µMaking your life nicer with Maliban Nice¶.

y

µKids will do anything for Maliban Chocolate Biscuits¶.

y

µ100% Natural Ginger Kick¶

v.

People

How to converge the benefits of internal and external marketing? Maliban should understand the value of both its employees and its customers. It understands the fact that a happy employee can serve well and result in a happy customer. Maliban should continuously do Internal Marketing . This is important as it must precedeexternal marketing. This includes hiring, training and motivating able employees. This waythey serve customers well and the final result is a happy customer. The level of importance has changed to be in the following order (the more important people are at the top): y

Customers

y

Front line employees

y

Middle level managers

y

Front line managers

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Reference

http://www.superbrands.com/lkc1/pdf/01_consumerSB2.pdf Accessed on 25 th August 2010 http://www.slideshare.net/search/slideshow?type=presentations&q=Biscuit+pricing&searchfrom =basic ± Accessed on 25 th August 2010 http://www.malibanbiscuit.com/ Accessed on 25 th August 2010

Assignment on Marketing Management - FMCG Product

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