Marketing assignment 2 BAV Sunderland

3.3. Explain how prices are set to reflect an organisation’s objectives and market conditions 3.4. Illustrate how promotional activity is integrated to achieve marketing objectives 3.5. Analyse the additional elements of the extended marketing mix 4.1. Plan marketing mixes for two different segments in consumer markets 4.2. Illustrate differences in marketing products and services to businesses rather than consumers 4.3. Show how and why international marketing differs from domestic marketing.

prBANKING ACADEMY, HANOI

BTEC HND IN BUSINESS

(ACCOUNTING) ASSIGNMENT COVER SHEET

NAME OF STUDENT

ASSIGNMENT TITLE Anka - Marketing Mix

NAME OF ASSESSOR Martin Ortega-Azurduy

SUBMISSION DEADLINE To be advised

We, hereby confirm that this assignment is my own work and not copied or plagiarised from any source I have referenced the sources from which information is obtained by me for this assignment.

_

Signature Date

Student ID Name

-FOR OFFICIAL USE (Course Administrator)

First attempt

work

3.1

Explain how distribution is arranged to provide customer convenience

3.2

Outcome Evidence for the

criteria

Internal Verifica tion

Explain how prices are set to reflect an organisation’s objectives and market conditions

3.3

Illustrate how promotional activity is integrated to achieve marketing objectives

3.4

Analyse the additional elements of the extended marketing mix

4.1

Illustrate differences in marketing products and services to businesses rather than consumers

4.2

Outcome Evidence for the

criteria

Internal Verifica tion

Show how and why international marketing differs from domestic marketing.

4.3

Outcome Evidence for the

criteria

Internal Verifica tion

 is not done properly

 should be done (if any)

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

Outcome Evidence for the

criteria

Internal Verifica tion

Table of Contents

I Introduction 9

II Body 9

3.1 Explain how products are developed to sustain competitive advantage 10

3.1.1 Product life cycle 10

3.1.2 New product development 11

3.1.3 Relation between PLC & NPD: 12

3.2 Explain how distribution is arranged to provide customer convenience 13

3.3 Explain how price are set to reflect an organization’s objectives and market condition 15

3.4 Illustrate how promotional activity is integrated to achieve marketing objective.16 3.5 Analyse the additional elements of the extended marketing mix 16

4.1 Plan marketing mixes for two different segments in consumer markets for Anka milk 18

4.2 Illustrate differences in marketing products and services to businesses rather than consumers 20

4.3 Show how and why international marketing differs from domestic marketing 23

III Conclusion 28

I Introduction

ANOVA is a joint-venture company ANOVA is official on stream in 2003 This company makes high quality products to meet the demands of ranch and aquaculture Recently,

ANOVA is the prime manufacturer in VeterinaryMedical Technology and maritime products Besides, ANOVA standardis recognized by WHO- World Health Organization (Anova, n.d)

II Body

3.1 Explain how products are developed to sustain competitive advantage

3.1.1 Product life cycle

Chart 1: Product life cycle (Deonbotha, n,d)

The product life cycle is the cycle that every product in every business has to go through So does ANKA in ANOVA, it has been through 4 stages

Introduction: When ANKA has not yet been popular in market, the turn-over is still low All the effort of ANOVA in this period is to concentrate on the development of distribution

Growth: In this stage, Anka has become more popular and it will gain more profit from selling However, there are big competitors in the market such as Vinamilk, TH True Milk, IDP,…Anova usually concentrates on augmenting the emersion of ANKA

Vietnam is growing up every day Therefore, the demand of customer about product will be higher and higher To fulfill customer’s needs and wants, Anova needs to develop product’s quality

Maturity: The trend of turn-over at this stage is stable or maybe decrease because of the saturation of milk market This phase is almost reach to the peak of product life cycle This is also the stage that the company start thinking about new product or change a different

packaging to impress customer and enhance the professional image

In this time, the turnover and profits will sharply reduce To improve this situation, ANOVA can introduce new product or sell it to others market place This is the last phase of product life cycle To extent its life, Anova can create new product to the replace the former product which is no longer popular in dairy market The new product basically has the same function like the old one but be developed into a new generation It will achieve better quality and more attractive design

3.1.2 New product development

New Product development process

Idea generation and screening: Once ANOVA has its position in the market, ANKA will

also be popular to the customers To maintain its brand, ANOVA must create new product By

making a new product, customer will have more choices And if it is good and attractive customers enough, it will get more revenue and profit for the company.

The new product may name “Anka gold” It will concentrate on the new segment

of the market The functions of the product therefore will be different from Anka It is still formula milk but have some more flavors and new features

Concept development and Testing:

Anka gold will have new design with the main color is gold  show the completely design of Anka Moreover, it will have new flavor such as strawberry, cacao Anka gold helpschildren not only be healthier but also add more nutrition and make children more energized, improve body resistance, make them more active

“Anka gold” will have to pass all the regulation about hygiene, nutrition and flavor

Marketing strategy: Anova will release to market a new product Anova will identify the

different ways to access customer and promote their product

Business Analysis: The advantage from building this new kind of product is that ANOVA can

enhance their technology in developing new product, widen their range of product and its image in the market

Product development: The age that can drink Anka gold is from 1-5 years old Anka gold

will supply the nutrition that good for children health, develop their height, add more mineral

into their diet and in their daily activities.

Test marketing: It will be tested through the target customer Anka gold may be sent to some

kinder garden or hospital, super market for children to try They will try and give out their opinion about Anka gold’s flavor, the smell, the design Then Anova will adjust “Anka gold” until it satisfy the majority

Commercialization: Anka gold will be advertised through mass media, sent to retailers such

as Big C, Metro, Coop Mart There will be some promotion to advertise this product like try first, buy one get one, sale at low prices

3.1.3 Relation between PLC & NPD:

Every product will have a life cycle At different life cycle stage, product requires different strategies At the introduction phase, Anova create product that just a basic product The profit may be really low or negative, the costumer’s feedback will also very little When Ankareaches to the growth phase, product strategy will be more diverse The sales volume will increase This create opportunities for Anova to offer product extensions, create new

customer services that listen to customer’s opinions and bring out new campaign, new project

to ensure customer’s rights and warranty At maturity, the profit will go down Anova needs

to diversify their brand and models to attract customer, make some features changes for Anka Finally, the decline is the period that product going to an end Therefore, the profit willsharply reduce This is the time that Anova needs to phase out weak items, design new

product that meets customer’s requirements Anka will develop but it can avoid from being declined in the market To satisfy customer’s needs and wants, the company will need to develop their product or introduce a new product into milk market This action will keep Anova’s position still stable in market and show that Anova has lots of choice for customer IfAnova wants to create successful new product (Anova gold), they have to understand

customer’s requirements, milk market and other competitors Moreover, they need to develop Anova gold that deliver superior value to customers Anova has to careful calculate all the problems that might occur such as the difficulty in distribution, the small sales volume at the very first start, the reaction of customer or their competitors’ action

3.2 Explain how distribution is arranged to provide customer convenience

a Supplier

Nova group has invested over US$50 million in developing modern dairy cattle farmsand product distribution systems in Ireland Kerry group in Ireland and Nova willfocus on developing a system for tracing product origins – from raw materials to finalproduct — to ensure their best quality and the safety of children (Scenario, 2015)

b Factory (Manufacture)

Anka Milk products will ensure international standards like FDA and Codex,

produced under the control of European standards Anka milk has made market

research to find the most suitable nutritional ingredients for Vietnamese children Then the nutritionists of Kerry group create new product based on information they get In addition the product is researched and designed in accordance with the

nutritional needs of children in Vietnam The nutritionist Kerry was based on

information about child nutrition Vietnam Nutrition Institute to create products that meet international standards and suitable for the child's state of Vietnam All

ingredients are fress milk, which are produced entirely in Europe and tranfer the

finished products to Vietnam (vnexpress, 2014) Therefore, Anova will ensure their best products quality and the safety of children while using their products

c Distributor

The most common way of distributing is to provide products to big retailers such as: Big C, Metro Anka needs to make contract with these retailers to keep shelves to place the products

Moreover, Anka milk should be placed in the position which easy to see and easy to reach, put among others milk products In addition, convience stores such as Shop &

Go, K-store are places where people usually buy products

Anka milk should build their own retail stores which can provide safe and qualified products to customers The store’s facility must built with the modern design and special interior materials, as well as the upgraded methods in preserving the best

products Milk is not only preserved carefully under the best conditions but also

Supplier

(Kerry group) Factory

(Kerry Group) Distributor Customer

placed neatly on the shelf which is convenient for consumers to find their wanted goods Having their own store, customers can be able to choose product easier instead

of finding among many different products in the supermarket Moreover, these stores have to be opened in many parts of Vietnam In big cities like Hanoi and Ho Chi MinhCity, Anka’s stores should be in situated 5 to 10 stores in many crowded streets where

it can attract people and people can find it easily However, in countryside, Anka should provide products to the convenience stores instead of building their own storesbecause the people’s demands are less than those in the cities

Anka should invest to build a website to sell products online to distribute products widely to many part of Vietnam and to the end-users This is a way of distributing products directly To do this method effectively, Anka must have staffs to receive orders and staffs to deliver products to customers on time

Related to geographical distribution, Anka must arrange product system suitably In big cities, Anka must distribute large quantities of products not only to big

supermarkets but also convenience stores Otherwise, in other parts, anka should provide smaller quantities of milk products

d Customer

Anka milk is formula milk which is used by children from 0 – 4 years old Children have not had consciousness yet, so parents will decide what to buy for their children Anka needs to focus on promoting their products to parents, especially mothers

3.3 Explain how price are set to reflect an organization’s objectives and market

-Once Anka milk weight 900g should

be 438.000 VND-This reasonable price includes good quality can make customer remember

to Anka It will help to enlarge Anova’s brand and spread its image

P/S 2: - For example, Physiolac 3ER is -The price will be 20% from other

Competitive

Pricing

389.000VND, Celia Expert 3 is 410.000VND, Cumart Bio is 665.000VND

 The price 329.000VND for Anka is suitable It is cheaper than other competitors but qualitystill remain This is an advantage

of competitive pricing Customer will find Anka is cheaper but theystill get benefits from it like other products They will be willing to pay for it

competitors’ products

To make a difference, the quality will

be the main factor Anka is the product that is local brand but made itEurope

Anka will be the product that have foreign quality but only with local price

This pricing strategy will be the factor that decide Anova position in dairy market

3.4 Illustrate how promotional activity is integrated to achieve marketing objectives

Anka Milk can hire celebrities such asTang Thanh Ha or Ho Ngoc Ha to promote for their brand Both of them have children and they are reputation and prestige with Vietnamese people Therefore, if they promote for Anka milk, many people will recognize anka milk and try to use products.Direct mail Anka must have a system to send

mail about Anka products to people This mail will show detailsabout information, quality, price ofthe products and events or free trials As a result, if people feel interested, they will buy and try Anka products

The detailed commercial and Anka’s characteristics and the trend of formula milk recently will be directly sent to mothers They can access the latest information of Anka milk product Mail can consist the image ofcelebrities promoting Anka milk product This will help Anka get morereputation

3.5 Analyse the additional elements of the extended marketing mix

People Staff All Anova’s employees need to have deep understanding about

Anka which means that they have to know about children development and necessary nutrition Having had the help of Kerrygroup, Anova’s employees can access new information and learn experiment from Kerry Group

Both customer care service team and salesman need to have thorough knowledge about Anka, intelligent and professional Theywill be willing to serve customer with enthusiasm and friendly attitude

Manager The managers play an important roles in serving customer

Managers do not direct contact with customers but they are the one who make plan, control operation of the business, and make decisions about financial, get employees to accomplish goals and objectives They will establish project, campaign, distribute the division of work for employees, and guide them to serve customer the best

Process Selling At the places that Anka is distributed, staff will give advice

customer to choose product, explain the features of Anka They must be friendly and enthusiasm with customer, make them feel satisfied and happy Besides, Anova needs to provide shipping system to ship Anka direct to customer

Anova needs to create some customer service line such as their website, email, phone line

Physical

evidenc

Uniform The uniform should be blue t-shirt with Anova logo in the front and

with a picture of a happy baby drinking Anka milk at the back of