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Marketing communication strategies while using the promotional mix

Marketing communication is a process through which brand awareness is developed. This helps

the customers to know what the product attributes are and how it is perceived in target

market. This also helps to retain the products current customer base, and to establish

customer relationship. Marketing communication strategy tells how the information regarding

the product will be distributed to customer to crate brand awareness.

ENGRO FOODSHISTORY :

The growth strategy that was adopted by ENGRO Chemical Pakistan Limited was diversificationthey diversify chemicals to food business Engros. Forty years previous relationship with the

farmers also offers Engro food another edge over the competitors. Engro Foods (Pvt.) Limited

was established in 2005 as a result of a diversification strategy of the Engro Corporation. The

plant was built at Sukkur on twenty three acre land. It has the milk reception capability of

300,000 litres per day and UHT milk capability of 200,000 litres per day. The plant was built with

price of Rs. one billion that had given employment to 750 individuals. Engro Foods initiated its

business from milk products. It additionally positions company to keep its corporate social

responsibility initiatives and for this it is working closely with rural communities for livestock

development. This effort is predicted to play a crucial role in poverty alleviation and rising

standard of the poor within the milk collection regions. For this Engro Foods is working with the

Pakistan Poverty Alleviation Fund and its 3 partner organizations to assist business models that

would increase farmers profitableness and develop a positive social and business climate for

growth of livestock and different varieties of value added agriculture products.

Target Market:

We have set to expand our target market of Pakistan. We are going to use mass-marketing

(undifferentiated) strategy as we have a tendency to be giving one provides to whole market.

Giant players has established their brands within the market and enjoyed vast profit margins.Currently they are trying towards product differentiation and multi segmentation as customers

are more quality concerned and search out for variety available to them in a coffee market.

Promotional Strategies:


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Pull strategy will be used as a promotional strategy of Engro Foods because Engro Foods believe

to increase consumer base of its product by advertising and consumer promotion.

Promotional Objectives:

Promotional objectives of the Engro Foods are as follows:

To inform the people To persuade the customers To remind the customers

Promotion is necessary when individuals dont know the product; from this individuals get

information about the product and force them to purchase the product. Once company sells

enough quantities of a product it reminds consumers about the product to stay the sales at

same level in future.

With promotional tools company will tell concerning the supply of product, company will justify

costs or will communicate the quality of its products. Engro Foods isn't promoting its products

solely because Engro Foods believe that the top quality it's providing through its brands is quite

adequate to put in its identity. We tend to believe that currently it is necessary for Engro Foods

promote its products intensely as global competition is coming back severely.

PROMOTIONAL TOOLS

1. ADVERTISEMENTEngro Foods will use all sorts of mediums of mass communication and one to one bases. Wewill use these mediums as promotional activities are:

1. T.V.2. Radio3. News papers4. Magazines5. Billboards6. Shop boards Banners7. Sponsorships of pop stars,

actors, models8. Stands in shops9. Shop boards10. Pamphlets11. Event arrangements

2. SALES PROMOTION


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ENGRO FOODS will have following sales promotion:

Discount Coupons:Discount coupons will be given to customers.

Discounts and Offerings:Engro Foods will offer 10-20% discount for those products having off season.

3. PUBLIC RELATIONS

For strengthening it in relationship markets ENGRO FOODS isn't solely going for customer

satisfaction however additionally stressing upon building robust promotion. ENGRO FOODS has

been making an attempt to part in charity activities and additionally to remain ahead in

national and faith events.. ENGRO FOODS uses such occasions to not solely promote its sales

however additionally to create robust public relationships through sponsoring events on these

days. Moreover, it's recently started organizing colourful Fun Carnivals too, that is completely a

family affair. This is often just an instance ENGRO FOODS tries to achieve most of suchopportunities.

a.CustomersGive price discounts

Give quantity discounts

b.DistributorsCompany will shares 25% of the distributors' expenses

Having off season discounts: 5%

c.RetailersFree freezers will be given to retailers

Having Investment on each retailer: Rs.28000

Freezers maintenance will be free

d.Street VendorsFree Trikes

4. Direct Marketing:

Engro Foods use web to advertise and targets the audience through totally different standard

and well established websites also developing its own website to have interaction with

customers. They place the Banner Ads aside the page or at top of the page. they're conjointly

using Social Networking sites to be connected with their customers all the time. Like Facebook,

tweeter, Orkut etc.

Usefulness of statistical data:


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Use of facts and figures in promotion of product is often been vital to create awareness and

understanding of consumers. Mention of price, phone numbers and alternative statistical

information makes the communication set up successful because it informs the purchasers

regarding the originality of company and merchandise. What is more it additionally makes them

clear concerning their buying. Statistical indicators will well decide the success of

communication as they supply the measures to spot the response of individuals to promotionand create selections consequently.

When product will be marketed and order information will be available on a weekly or monthly

basis, selling and production executives would sporadically update existing estimates and alter

the marketing mix within the light of recent data. So as to corretky analyse this new data, it is

vital that the firm install a tracking system for the storage and simple retrieval of those data.

Such a system is typically said as an information warehouse. The explanation of market

indications is greatly expedited by the employment of statistical models on longitudinal market

and marketing-mix information. For instance, a manager has to understand if the fall in orders

is for a short or permanent in nature, nonetheless she might not have the posh to attend for 3

additional months to create that distinction.

Promotional campaign:

COMPANY NAME: Engro Foods

Potential New Product: Cooking Oil

BRAND NAME:ALGAE COOKING OIL

MARKETING OBJECTIVES & STRATEGIES FOR

NEW PRODUCT:

Marketing Objectives:

1. Sales objective:Sales of worth Rs.2500000 for initial 12

months by doing promotional and

introduction activities.

2. Profitability Objective:To earn profit of 10% of sales initially.

3. Market Share Objective:To attain 05-10% market share for initial

one year.


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4. Customer Satisfaction:We have planned to provide our customers with the best of quality, health and

convenience, at low and affordable prices.

Ways Planned To Adopt To Help Improve Our Customer Service:

1. Keep in touch with customers on an everyday basis

2. Inviting a client focus group by observing ten to twenty loyal customers to meet frequently.

3. Have an online web site that is easy to navigate. Add a commonly asked questions "FAQ"

page and explain something which may confuse your customers or guests.

4. Resolve client complaints quickly and fully. Answer all e-mail and phone calls among many

hours.

5. Not to build customers or guests search for contact data. Make it simple for them to contactus.

6. Provide staff with bonuses or incentives to see wonderful client service. Tell staff to be good

with every individual client, each has completely different issues, wants and desires.

7. Provide your customers over their expectations.

8. Rewards system -- offer customers a point for each quantity they pay.


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Besides this the cooking programs shown on TV will be a good promotion plan as these

programs can show omega three algae cooking oil use in different Pakistani as well as different

countries common dishes. In this manner the viewers can recall the product through the

message gift for the new millennium; eat healthy live healthy.

The symbol and also the color of the bottle of omega three algae cooking oil is also a decent

solution to communicate to the buyer who can study but can simply make aware of the bottle

by the algae symbol or the green and black colour pattern.

The distinctive and enticing style of the bottles is also the simplest way of consum ers

persuasions for new omega three algae cooking oil.

Different sizes (plastic bottles of five, 2.5 & one liter) will be offered for the convenience of

customers and to target different segments of the markets.

Alternative marketing plan:

If Omega 3 Algae cooking oil does not go well in market than the alternative market plan to

reintroduce Omega 3 Algae Cooking Oil will be:

1. Product

Change in color of oil:

If the consumers anxious about the dark color of the cooking oil then Engro Foods will go for

the lightening of color of the Omega 3 Algae Cooking oil in order to give the effect of lightness

for more health conscious consumers.

Change in Packaging size:

Engro Foods will launch three different packaging sizes of 1 liter, 3 liter, 5 liter respectively. It

can introduce 0.5 liter poly jar in order to attract middle and lower class and budget conscious

consumers.

2. Price

Discount offerings:

Engro Foods can offer discount to its customers in order to attract more number of customers.

Reduction in prices:

Engro Foods have the plan to go for market penetration strategy by offering reduction in prices.

3. Promotion

Tokens and Gift hampers:

Engro Foods can offer tokens on purchasing Omega 3 Algae Cooking Oil and also give gifthampers by a lucky draw to its customers.

Important Activities of Promotional Plan:

Following are the activities of the promotional plan for the Algae cooking oil.


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Sr.NoStarting

Date

Ending

DateActivity Budget(Rs.)

Responsible

PersonnelDepartment

01. Jan 01,13 Jan

15,13

Finance

arrangement

7000000 Mr.Aziz Finance

02. Feb 01,13 March

31,13

Electronic and

Print media

advertisements

2500000 Miss.Mehr\wish Marketing

03. April 05 June

30,13

Billboards and

hoardings

1500000 Miss.Rabiyya Marketing

04. July

02,13

Sep

15,13

Free sampling

of the 50 ml oil

bottle

500000 Mr.Aamir Marketing

05. Sep 11,13 Nov

20,13

Live cooking

shows in

different cities

650000 Miss.Maliha Marketing

06. Nov

25,13

Dec

31,13

Personnel

Selling

1250000 Mr. Mubasher Marketing

Objective of each Promotional activity:

Activity. No Objective of each Promotional Activity

01. Finance

Arrangement

It is to ascertain that the required finance is issued from the finance

department for promotional plan and activities.

02. Electronic

and print

media

Advertisement

This activity is the penetration marketing campaign for the launch of the

Algae cooking oil. Through this people will be able to know about the new

algae oil, its qualities and better health ingredients.


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03. Billboards

and Hoardings

Its also the part of marketing campaign where huge billboards will be

hanged at signals and places where people can view the Algae cooking oils

advertisements.

04. Freesampling

To introduce the cooking oil we have planned to give away free samples topeople to try the taste of the Algae cooking oil.

05. Live

cooking shows

in different

cities

This activity is also for the introduction of Algae cooking oil to those

customers which do not have the facility to watch advertisements on TV or

those who are illiterate.

06. Personalselling

This is used for door to door selling of product during its introductory stage.

Information Technology:

The information technology revolution (particularly the mix of the net, database systems and pc

analytics) has changed the way the marketing function is performed. It helps small firms to

compete as it helps to bring level of sophistication previously kept for bigger and richer

industries. Its helps to maintain, if any aspects of the marketing mix untouched. IT is changing

concept of marketing and distribution of products. IT has given the opportunity to firms to givemore to its customers and it is also bringing efficiency in services.

This section explored and illustrated some of the most salient innovations brought by the

integration of information technology in the marketing process:

E-marketing is technique of use of the websites for linking directly to customers for marketing

activities. it helps to target more accurately that was difficult in traditional marketing and it's

also more economical than to mail or telemarked.

Online distribution is usually quicker and cheap way of marketing as it permits for grater

service, close monitor and better client data gathering.

Customer identification becomes easy by using IT. It helps to easily maintain the data of

customer as soon as the client contacts the organization, providing a transparent image of what

the client desires or at what price he is willing to buy the product.

Customer modelling Focuses maily on the future aspect of change in the patterns of customers

buyings.this information is used by the company to well execute the prediction regarding the


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Marketing Communications and Business to Business Marketing

Assessment Number: Two

Individually Written Report: 50% of the overall module grade

Word count 3000 words maximum

Learning Outcomes Covered: 5,6,7,8

Tasks:

1. Define the term b2b marketing

Business-to-business marketing:

B2B marketing is about meeting the needs of other businesses, though ultimately the products demand

made by these businesses is likely to be driven by customers in their homes.b2b have the following

characteristics.

Relationship maximization Convenient targeting marketing Repeated sales with various steps Personal branding relationships Activities related to awareness and learning


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provide difficulty to organizational structures, B2B sales generally get in large number of people

in decisions, and therefore elements of mix of marketing is influenced by many factors like

companys services, products, sales quantity and nature, changed needs.

Buyer Behavior

Whereas emotional factors play a large part during a consumers decision to buy a product, B2Bbuying choices are less based on emotions and more oriented to tasks. Business customers

normally look for specific product features which will bring proficiency, yield, and value. B2B

buying choices are more thoughtful than B2C choices, since organizational gets need extra

money and additional difficulty for company.

Buyer-Customer Relationship

While customers marketing focus toward giant groups of customers by using electronics means

for bargaining between distributors the customer and supplier is a part in business marketing.

Sales representatives and marketers are typically appointed to promote to people who act as

influencers or decision-makers within the customer organization.For example, B2B marketers typically gift product and their advantages in privately

presentations to key decision-makers. The B2B organization may invite prospects and

customers to public or personal events to facilitate any conversations. As a result, confidence

and trust are step by step built between the seller and buyer over a period of time.

Communications Channels

Although apparently its the distinction between consumers and business marketing activities

could be obvious, there are a lot of simple differences between both. The analysis and

marketing method for B2B purchases are longer and a lot of complicated than consumer

purchases. However, business marketing usually entails shorter and a lot of direct channels of

distribution to target audiences. Totally different aspects of the promotional mix are simply

customized as a result of the relationship between a B2B employee and the individual

purchaser.

Not-for-profit sector

Chief distinction between consumer and nonprofit marketing is that in consumer promoting,

the customer is getting one thing for his own profit, whereas in nonprofit marketing, the donor

is getting one thing for the advantage of somebody else. In the case of nonprofit, the

requirement of cost-versus-benefit and quality of service stay necessary to the donor who

expects his contribution to accomplish one thing important.


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Granted, this is not evident on the level of the low-end of donors: the a lot of people who can

give up tiny amounts to charities really do not invest a lot of time in considering however their

donation of $20 or $200 is going to be spent, unless the charity itself is ill-famed for being

wasteful or corrupt in its use of donated monies, that is why charities who depend upon tiny

donors and have few important ones are (rightly) viewed with some suspicion. On the level ofhigh-dollar patronage, where affluent people or company sponsors contribute six figures or

additional to a charity, far more discernment is given to how the charity can use the money,

with a watch toward making certain it is used well, and that the beneficiaries of the charity truly

receive some benefit from the utilization of their donations. In terms of brand, a nonprofit

organization that seeks to get massive contributions should be able to demonstrate that it

delivers worth for dollar, and should maintain a spick-and-span name for being in fiscal matters

accountable and effective in accomplishing their declared ends

Public sector

It is time consuming process of government involvement in purchasing and buying of goods. All

stakeholders must keep this thing in mind that it will take time when government takes part in

any business activity. Several months or even a year will be the time of sales cycle of public

sector involvement. Consumers and government answer influence to marketing activities of

automobiles. Officers of public sector take the marketing activities totally differently as private

sector do.

2. Adaptation of economy on large scale which affects the price elasticity.

The package delivery and transportation industries are extremely cyclical. The business cycles

of this industry are tied with functions of the stakeholders like suppliers, manufactures,

distributors and customers of products. The whole package industry experiences an increase in

needs throughout the vacation months, with the Saturday before Christmas and December

twenty three, for express package services, being the busiest day for the entire business. As an

example, FedEx transports 7.5 million packages on average on the average, however in 2008

twelve million packages were sent on the Saturday before Christmas and fourteen million in

2009. (UPS ships 14.4 million on an average day) UPS and FedEx each hire part time and

seasonal staff at their process plants and drivers throughout the holiday months of November

and December. UPS reportedly employed more 50,000 workers to satisfy the enhanced the

need in 2009.

Package business is facing a high price elasticity of demand. UPS is best company in this field

but the giant customer can easily switch over if competitors lower the price of delivery.

Different competitors are the US Postal Service, DHL (for international shipments), government


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owned and backed carriers abroad and little regional carriers. Another choice customers could

make is to stay with a similar company as its loyal customer. UPS even declared within their SEC

10-K filing that their next day air saver and 3 day select cargo services experienced the largest

growth in the recession as these cheaper alternatives are less sensitive to price adjustment.

FedEx also states in their 10-k filing that the package delivery business is, "highly competitiveand sensitive to price and services, particularly in period of very little or no economic growth"

(FedEx 10-k, p. 12. There is also the impact of recession of governments on the operations of

businesses as a result profits tumbles during these recessions. As we have seen that the recent

recession has affected the package industry in severe manner than more issues related to

politics and economics from time the businesses are functioning.

Impact that the above mentioned change on UPS B2B marketing process (opportunities and

threats)

The opportunities and challenges of the future

As we have seen that there was not expansion in industry in the 1990s and digits were below

double digits even then the UPS Company had shown permanent growth. This growth is said

due to increase in the internet usage and reduction in costs of warehousing because of change

in supply chain and just-in-time production. The demand for UPS was also hiking due to

globalization and therefore easy access to international markets. Due to globalizationmacroeconomic factors are very much important for UPS because economic recession can

easily disturb this business.

UPS services for private customers

UPS is capturing about 90% of B2B customers market at this time because of its quick and

reliable services. UPS is also targeting the private sector as it is creating new opportunities but

new challenges for UPS service providers. As an example, providing postal service to personal

clients including delivery of one parcel for decided place. Moreover, tracks that previously

targeting industrial places need to be enlarged to alternative neighborhood residencies.

Another issue is that non-public customers are harder to succeed in - this suggests that, in

specific situations, an attempted delivery should be created many times, leading to higher

prices. For this reason, UPS has introduced the new concept like the national parcel stations.

Such choices enable round-the-clock pick-up.


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We can have a growth in this sector as e-marketing is increasing within private customers.

Results have shown that now each fourth package results from internet selling. Returns

management is also turning into more and more vital as results of the consumer-goods service

given to personal customers.

Globalization as a challenge

The UPS shapes by strong and rapid changes. Main task faced by every sector corporations is

making intensive networks and closing international growth. The necessity for globalization is

rising as a result of cargo volume is increasing quicker in European countries than it is

domestically.

For this UPS has taken the decision to have their own air fleets so that they can give proper andconsistent services to different places of world. They are attempting to produce to have

reliable, valid and predictable in as several parts as feasible. it needs the utilization of tools for

cargo evaluation.

The introduction of global linkages gives more values and specifications to the delivery system of UPS

according to its market. In previous years there are some problems of integration of suppliers due to

acquiring of new parts requirements. These all problems still exist. This way of internationalization

produces faster delivery to customers with challenges of growth, security and monitoring of slowness.

Those entire destinations, where packages are to be delivered, are fully analyzed because theseare stored for 24 hours. UPS has attained an advantage over other suppliers following old ways

by developing direct relations with officers of customers. For this purpose necessary information

is provided to them regarding the delivery to required places.

Recommendations on how the organization can capitalize on the above change

In our analysis we have observed that companys overall performance is extremely smart. And

that they manage their day to day operations effectively and efficiently. However if we see at

the total situation there are some factors that may increase the companys performance.

Macroeconomic factors play an important role because parcel industry is sensitive to thesefactors and there is also impact of trade cycle on this business. As the industry goes to recession

or demand weakens, companies either lay-off or stop institute hiring in order to respond to

change in demand. As an example the company reduces the force of truck drivers that are

either employed or contracted. Or in the low demand time UPS close down its stores (Mail

Boxes Etc. and Kinko's, respectively) or move them to other areas where they would be

profitable or alter part time staff as needed. The growth strategy is also delayed until there

would be much demand to implement. Growth strategy may include the purchase of new


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planes or renegotiating service terms with airline mechanics, pilots, and ground mechanics

once the current contracts expire. Or this may include of opening new facilities in new markets

as business is expanding.

Adaptation in UPS resources to obtain the above mentioned competitive advantage

UPS is environment-friendly company because they believe in recycling of waste and alsoreduction of waste. For this UPS is innovating the ways of packaging so that it can reduce the

waste and it is also finding the ways to reduce packaging to limit the cost. For reduction in

energy usage and emissions UPS has taken many steps in 2010 so that it can conserve energy

resources.

UPS focuses mainly on dialogue of important international issues of gas and energy worldwide.

This is important in managing the business as success mainly focuses on wise use and

management of energy resources. UPS is using all those automobiles that operate on lowoperational costs. Moreover it also uses plans that consume low fuel including 25000

automobiles.

UPS has taken these innovative steps: Retrofitting our aircraft with advanced technology and using engines which are fuel effi

cient and have low noise

Made a network ofcomputer to track the delivery vehiclesThese are some of steps that have taken by UPS to ensure long term commitment to its custom

ers, employees, shareholders and communities.

UPS is also joining hands with other companies and government to innovate the ways of transportation.

Responsible Packaging

UPS is the first company to introduce the service of recycle Next Day Air envelope in 1998 that

is bleach-less and 100% recycled fiber (80 percent post-consumer). This envelope is a way to

reduce waste. On the other hand it permits one envelope to be utilised two times. This provides

convenience to customers, like mortgage brokers and lawyers, who have to boat documents for

their purchasers to sign and come back.

In 1998, UPS acknowledged the dispute from The Alliance for ecological discovery to improve

the ecological profile of packaging in the transport commerce. Our articulate packaging was

redesigned to eliminate use of bleaching paper for after consumer recycled satisfaction -

alterations that not only decreased paper usage, but also decreased the allowance of power

utilised in the constructing method by 12 percent. Among the wrapping pieces:

UPS Express Envelope: 100 per hundred recycled fiber (80 per hundred after customers

satisfaction)


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References:

Sepide Naghibi. (2011).factors of customer satisfaction and loyality in industrial

marketing. Available: http://www.idosi.org/mejsr/mejsr8(5)11/9.pdf. Last accessed 20th dec

2012.

MATHEWOS MUKE. (October 2010 ). OPPORTUNITIES AND CHALLENGES FOR PRIVATE SERVICE

DELIVERY. Available: http://www.ipms-

ethiopia.org/content/files/Documents/publications/MscTheses/FinalThesis_MathewosMuke.p

df. Last accessed 25th dec 2012.

Alexis Devan. (May 6, 2012). Macroeconomic Factors of the Package/Parcel Delivery

Industry. Available: http://voices.yahoo.com/macroeconomic-factors-package-parcel-delivery-

5933494.html?cat=3. Last accessed30/12/2012.

UPS Corporate Responsibility. (n.d.). UPS.com. Retrieved December 8, 2012, from

http://sustainability.ups.com/.
http://sustainability.ups.com/http://sustainability.ups.com/

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