Marketing free essay sample

They offer a wide variety of beverages such as beers, wines, spirits, sparkling drinks and table water. Malta Guinness is one of the products which is rich in protein, iron, vitamins (of the B complex) and calcium, is a non-alcoholic malt-flavored beverage from the Guinness family. It is the perfect source of natural energy that will recharge you both physically and mentally so that you ‘FEEL GOOD EVERY DAY. † They respect the packaging and labelling of the product and recently they have redesigned the product which is unique and appealing compared to the competitors. It is usually both businesses and consumers who use it. Customers spend time looking for the product but when they do not find it, they look for a substitute like redbull. 1. 1. 2 Current Pricing There are many competitors for Malta Guinness in the market, for example, Stag Beverages is one of them. However if there is a change in price of the product, consumer demand may decrease to some extent but currently the price is lower compared to competitors prices. We will write a custom essay sample on Marketing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page But consumers purchase Malta based on the product Quality and product image. The businesses cost depend on the company, if they lower the price of the product, then it will increase sales revenue and competitors would not be able to meet any price cut. . This means that the price elasticity of demand would be elastic and according to Kotler : â€Å"Elasticity is the responsiveness of demand in relation to changes in price† (kolter et al. 2008, 354). For example, the bottle Malta in urban areas is sold at a maximum price of Rs20 and the can at 22 whereas in rural areas it has been observed that the bottle can be sold up to Rs15 and the can at Rs18. 1. 1. 3 Current Distribution. The company has a broader range of products and recently we have noticed that one of them which is Malta,it is sold in both urban and rural areas even in local stores of the regions or in bars and restaurants where customers usually look for it and but it. Some of the locations are : in hypermarket like Shoprite, Super U-Grand Bay,in Winners-Goodlands and Flacq and in rural stores like in Roches-Noires, Riviere-du-Rempart, we can observe, that they are in demand and consumers buy it. This shows quite clearly that there is an extensive distribution of the product in Mauritius. However Consumers cannot buy it from Phoenix beverages but on the contrary businesses can buy it so that they can resell it to retail stores and so on. But now we can notice that Stag beverages and Redbull and there are other energizing drinks that are in competition with Malta Guinness. 1. 1. 4 Current Promotion There are two recent promotional message about Malta that is apparent, one of them is â€Å"Have you had your Malta today† and the other one is â€Å"Have fun with Malta† So these â€Å"Promotion strategies are very important in order to attain the greatest number of customers possible†. kolter et al. 2008, 224). the first promotional message was seen at Phoenix near Phoenix beverages and the other one was seen near the motorway to Port-Louis on a billboard. Thus, the business is trying to promote the product and its sales by capturing people’s attention. Therefore the promotions are sending almost the same message. 1. 2 Environmental Scanning 1. 2. 1 Political/Legal Environment Today we can see that the political and legal environments are the pillar in Mauritius so businesses must take into consideration the political aspect. There are organisations like the consumer protection authority who acts in the favour of the consumers. The Consumer Protection Unit (C P U) is a specialized section within the Ministry of Commerce and Consumer Protection for the protection of consumers in general. So phoenix beverages should be able to comply to marketing strategies so as they do not go against legal requirements in Mauritus. There should be fair dealing while deciding prices of product. 1. 2. 2 Economic Environment In the arena of current income, Mauritius is facing a positive economic growth. We can notice nowadays there are increases in incomes which are making consumers spend more than they are expected to do. And a decreasing rate of unemployment is positive while employment has change consumer spending patterns. The positive economic situation will help the company to invest more in their marketing strategies for the product so as they get an increase in sales. 1. 2. 3 Social/Cultural Environment There are institutions and other forces in Mauritius that are affecting the basic values and perceptions that may impact on marketing strategies. For example, Mauritius is a multicultural country and we have many subcultures. Therefore consumer may be influenced by their respective culture which may influence their choices and preferences for the product. Therefore, the marketing strategies should take into considerations all the audiences, that is, the hindus,muslims or Christians. The company must take into consideration all the segments before implementing their strategies. 1. 2. 4 Technological Environment Technological environment are ‘Forces that affect new technologies, creating new product and market opportunities’ (kolter et al. 008, 98). There are many technological improvements that can create new processes which may impact on the marketing strategies, for example, unsafe products are banned by the government, so the company must do innovation but at the same time they must pay attention to disruptive technology. 1. 2. 5 Natural Environment (1/4 page/2 marks) As Mauritius is not a developed country, the re are shortages of raw materials and increased cost of energy and other factors like government intervention in natural resource that may impact on marketing strategies of the product. While producing the product, the company may dump the wastage and pollute the environment as they used many negative raw materials. This may result in the pollution of air and water. As Kotler stated there are â€Å"many parts of the world are also facing water shortages. Renewable sources need to be used wisely (kolter et al. 2008, 99). There is much legislation in Mauritius for protecting natural resources. 1. 2. 6 Competitive Environment The competitive environment of the mineral water is getting more and more tough (kolter et al. 2008, 99). There are competitors like stag beverages who are going to produce their own Malta product for the Mauritian population and they are are getting more and more in the market share. Therefore Malta marketers must take actions so as they maintain their position in comparison with direct competitors. They must build staff and consumer loyalty in order to be able to face the current situation. 1. 2. 7 Demographic Environment The changing age structure of the population and the geographic shifts may impact on the product and it is the Mauritian culture, the ethnic diversity that may impact the marketing strategies. As Kotler said â€Å"Demography ‘is the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistics’ (kolter et al. 2008, 82). The demographic environment is crucial to marketers because they must consider their market, that is, the mauritian people. In Mauritius, Malta have targeted consumers around 16 to 20 (teenagers) 20 to 35 (Working class) and 35 to 45(Sportsperson). Youngster, the working-class and sportsperson, they care for their health and Malta is the best energizing drink. The Mauritian is also more educated and is directing itself towards a more white collar nation, along with the fact that more women in the workforce means more average income to the population. Crystal is also affected by the fact that there are more women in the workforce and marketing strategies have been developed to attract this segment. Again the focus on health for women can prove very beneficial to the company 1. 2 Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis Table Strengths| Weaknesses| The brand name| Leakage of information| Customer loyalty| The sugar rate is high. Distribution channel more efficient than competitors | Was slow to react to increasing number of competitors| Appealing and positive effect| | | | Opportunities| Threats| With technology can have online command and better ways to expansion| Increasing pollution both air and water| New target market as teenagers and women because of work and stress, consumer and staff loyalty| Emerging competit ors like stag beverages| There can be improvement in production and distribution through research | There may be government disapproval on harmful technologies| 2. 0 Segmentation Theory . 1 What is segmentation? Segmentation means ‘Dividing a market into direct groups of buyers who might require separate products or marketing mixes; the process of classifying customers into groups with different needs, characteristics or behaviour’ (kolter et al. 2008, 217). 2. 2 Why is segmentation used? Market segmentation is used to determine a market segment through evaluation, which is in terms of size and growth, profitability and it must fit with the company’s objectives. Market segmentation is used to determine how businesses can be competitive and profitable in a market. However according to marketer’s market segmentation is cost effective even its implementation and this may lead to deficit. But it is mostly used for buyers who differ to product needs or buying responses. 2. 3 How can firms benefit from a multidimensional approach to segmentation? A market can be segmented through different variables so as to better view the market structure. The different variables used by marketers for market segmentation are geographic segmentation, demographic segmentation, psychographic segmentation and finally behavioral segmentation. The multidimensional approach is used by irms to see which market segments are more attractive to them. This can be determined by evaluating the segment in terms of size and growth, profitability. The multidimensional approach is used by firms to avoid costly deficit. Target Market Identification 3. 1 Geographical Traits The geographic location chosen are urban, rural and coastal areas. The regions are Roches-Noires coasta l areas, Port-Louis and St Julien. These geographical traits are relevant to the product as even the climate is good for consuming these products as Malta gives us lot of energy when we are stressed or to boost the consumers. Geographic traits means ‘Dividing a market into different geographical units such as nations, regions, states, municipalities, cities or neighborhoods’ (kolter et al. 2008, 218). In Port-Louis, there is a greater distribution of Malta which is the same in rural areas such as St Julien and mostly in Coastal area(see picture 1 for illustration).. This is because when people go to Port-louis, they tend to be tired and then they drink an energizing drink to be fit to walk in the sunny environment. In rural areas such as st julien, people are home and tend to drink malta when they do their households chores or while doing other activities which is the same around coastal areas. Even the climate at coastal areas influence people as it is hot while in urban areas it is cooler. (See picture 2 for illustration). For rural and coastal areas(see picture 3 for illustration). 3. 2 Demographic Traits ‘Dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion and nationality’ (kolter et al. 2008, 220). Demographic factors help segmenting customer groups as it’s easy to measure than most other variables. Gender is an important factor. Nowadays teenagers consume more energizing drinks as they study and do sports(see picture 4 for illustration). Second demographic variable that Malta can use is targeting customers according to their income.. The prices of Malta bottle are quite affordable as compared to the high income earners who will prefer to buy for example Redbull(see picture 5 for illustration). And final variable is actually targeting the more mature adults that are actually concerned with their health (see picture 6 for illustration). . 3 Psychographic Trait Dividing a market into different groups based on social class, lifestyle or personality characteristics’ (kolter et al. 2008, 221). The psychographic trait is the socio economic status. The major segment that is clearly targeted is the middle class and the lower population classes. The first psychographic var iable that is used is based on social class. The lower classes and middle class population are targeted by Malta that is determined by the prices(see picture 7 for illustration). Second psychographic variable is based on lifestyle. The customers wanting to stay to have healthy habits such as the customers who go usually to the gym are good targets to the marketers (see picture 9 for illustration). And final psychographic variable that will be based on personality . For example, those on diet and vegetarian. 3. 4 Behavioral Traits ‘Divides buyers into groups based on their knowledge of the product, their attitude towards it, the way they use it and their responses to it’ (kolter et al. 2008, 223). Behavior variables are the for building market segments. The first behavioural variable that will be used is the benefit sought. The benefit that the consumers will get that is,to stay in good health. (see picture 10 for illustration). Second behavioural variable that is taken into account is the rate at which the customers is using the product. (see picture 11 for illustration). And final behavioural variable is the loyalty status. It is always less costly to keep a customer than to grab new one (see picture 12 for illustration).