MARKETING

CSA Assessment – Marketing Project

 

 

WORTH:                    30% of Course Grade

 

 

MARKS AVAILABLE:           100

 

 

 

WORD COUNT:             Minimum: 1,200 words

Maximum: 1,600 words

 

 

 

 

Project DetailsIndividually you are required to identify a company, local or multinational, with operations in the UAE. This should be a FMCG ( Fast moving consumer goods ) company who are involved in marketing regularly used household and personal care products ( e.g. Facial wash, shower-gels, shampoo, skin cream, toothpaste, soft drinks, household cleaners, fabric wash, fabric softeners, etcs)  You are required to research the company to understand its marketing environment. You are also required to identify a marketing opportunity for a new product for this company. You will conduct a market research to evaluate the marketing opportunity and the marketing mix that you propose. In order to the market research you will need to develop a sampling plan and a questionnaire. You will need to get approval of your questionnaire from the concerned faculty before you can start your research.

 

Based on your market research you will analyze key findings and arrive at conclusions about the new product and marketing mix strategy. You marketing mix strategy should include the 4 Ps. Your will write a report based on the detailed assessment criteria and format outlined in this brief.

 

 

INDUSTRY MARKETING PROJECT REPORT FORMAT AND ASESSMENT CRITERIA

1. 1.   Organization introduction

Introduction of the organization is not included or if it is included it is incomplete or incorrect.

Brief introduction of the organization including the country of origin, nature of business, background history in UAE as well as worldwide if a multinational company.

0              2              4              6              8              10

 

 

1. 2.   Marketing environment

The Macro and micro environment of the company has not been analyzed using all factors.

The Macro and micro environment of the company has been analyzed using all factors.

0            2              4              6              8              10

 

 

1. 3.   Segmentation

One of the core product market of the company has not been well segmented using relevant variable/s

One of the core product market of the company has been well segmented using relevant variable/s

0            2              4              6              8              10

 

 

1. 4.   Current product description

The core, actual and augmented level of one of the key products has not been clearly described.

The core, actual and augmented level of the one of the key product is clearly described.

0            2              4              6              8              10

 

 

1. 5.   Current target market

Target market is not identified.	Target market is identified.
Target market is incorrectly or incompletely described.	Target market is correctly described with at least 3 describing variables.

0            2              4              6              8              10

 

 

 

1. 6.   Description of the marketing opportunity

The marketing opportunity that this organization is facing and the reason has not been discussed in details including reasons from marketing environment..

The marketing opportunity that this organization is facing and the reason has been discussed in details including reasons from marketing environment.

0            2              4              6              8              10

 

 

1. 7.   Marketing analysis

Report does not shoe clear description of how the opportunity was analyzed and key findings arrived at is not clear. A sample of the questionnaire is not attached (actual or electronic)

Report shows clear description of how the opportunity was analyzed and key findings arrived at. A sample of the questionnaire is attached  (actual or electronic)

0            2              4              6              8              10

 

 

1. 8.   Proposed product and/or service

The product launch is not rationalized based on market analysis. The product and/or service is not fully described using the core, actual and augmented level

The product launch is rationalized based on market analysis. The product and/or service is fully described using the core, actual and augmented level.

0            2              4              6              8              10

 

 

1. 9.   Proposed pricing

The product pricing is not rationalized based on market analysis. The pricing strategy is not clearly described with reasons.

The product pricing is rationalized based on market analysis. The pricing strategy is described with reasons.

0            2              4              6              8              10

 

 

10.Proposed distribution process

The distribution process for the product is not discussed clearly.

The distribution process for the product is discussed clearly.

0            2              4              6              8              10

 

 

11.Proposed promotion mix

The promotion mix is not developed in depth covering all elements that the organization uses – advertising, personal selling, sales promotion, publicity, direct marketing and internet based marketing etc.	The promotion mix is developed in depth covering all elements that the organization uses – advertising, personal selling, sales promotion, publicity, direct marketing and internet based marketing etc.
Sample of a new proposed promotion tool is not attached and/or are not analyzed.	Sample of a new proposed promotion tool is attached and analyzed.

0              2              4              6              8              10

 

 

 

12.  Report  

The report was not written in the appropriate format.	The report was written in appropriate format.
The language, style and content of the report is not very good.	The language, style and content of the report is excellent.
The report had several editing mistakes.	The report did not have editing mistakes.

0              2              4              6              8              10

 

 

 

 

 

GRADE DESCRIPTORS

 

Grade 9-10: Excellent

Overall, a very impressive and excellent piece of work. Includes the majority of the following features:

• Demonstrates an understanding of the task which may be beyond what is expected, but which is always relevant. 

• Original perspective on the problems in question. Contextualization of sources and viewpoints and comprehensive evaluation of contributions. Insightful application of relevant theories in addressing the issues/questions.
• Use of wide range of relevant sources, which are integrated and critically evaluated.
• Well-structured and organized with a clearly developed line of reasoning. Appropriate length.
• Referencing follows consistent academic conventions with all references fully and accurately cited.
• Clear, articulate style with accurate spelling, word choice and grammar. Target band level surpassed by 1.0

 

Grade 8-9:  Good

Overall, a good and commendable piece of work. Includes the majority of the following features: 

• Demonstrates sound understanding of the task. Presentation of points and arguments generally relevant to the question.

• Sustained commentary on evidence and materials used. Inclusion of appropriate critical perspective. Use of theoretical models in a relevant way to address the issues/questions.
• Sound understanding of main sources of literature, well summarized and used in a critical and relevant way.
• Clear structure and presentation. Control of length.
• Generally consistent and accurate referencing.
• Generally accurate spelling, word choice and grammar. Target band level surpassed by 0.5.

 

Grade 7-8: Satisfactory

Overall, a satisfactory piece of work. Includes the majority of the following features:    

• Understands main point of the task. Most points and arguments presented are relevant to the question.

• Adequate commentary on evidence and materials used. Some evidence of critical awareness. Use and understanding of theoretical models, but in a fairly pedestrian way.
• Adequate range of source material consulted. Clear understanding of the literature used.
• Good structure and presentation, minor problems in organization do not impede communication. Control of length
• Generally consistent referencing.
• Comprehensible spelling, word choice and grammar, inaccuracies do not impede meaning.  Target band level achieved.

 

Grade 5-6: Marginal Pass

Overall, a bare pass.  Includes the majority of the following features:  

• Understanding of basic concepts and effort made to relate them to the question.

• Argument mainly descriptive points and/or points which requires greater substantiation. More development of ideas needed to sustain an argument. Identification of main issues, but little critical awareness.
• Some evidence of reading and understanding of the literature, but range and /or relevance very limited.
• Attempt made at coherent presentation, but ideas not well integrated. Length may be considerably off target.
• Some attempt at consistent referencing.
• Comprehensible spelling, word choice and grammar, although inaccuracies may sometimes impede meaning. Below the target band level.

 

Grade 0-4: Failure 

Overall, a very poor piece of work.  Includes the majority of the following features:    

• Inadequate or misunderstanding of task.  Purely descriptive account with little or no analysis.

• Irrelevant comments and/or assertions, which are not supported by meaningful evidence. Little evidence of integration of various sources to sustain an argument. Lack of any critical or appreciative framework.
• Few relevant sources used and/or little use of literature.
• Unstructured presentation and/or lack of coherence, which impedes understanding. Length problematic.

• Little or no attempt at consistent referencing.
• Major inaccuracies in grammar, word choice and spelling. Well below the prescribed proficiency IELTS.

SOLUTION

Contents

Industry Marketing Project Report 2

1.      Introduction: 2

2.      The company: 2

3.      Internal Environment – Strength and Weakness Analysis: 3

3.1.       Strengths. 3

3.2.       Weaknesses. 3

4.      External Environment – Existing players and product categories in the industry: 3

4.1.       Industry Survey of existing players: 3

4.2.       External Environment – Opportunities and Threats. 4

4.2.1.        Opportunities. 4

4.2.2.        Threats. 5

5.      Market Survey: 5

5.1.       Sampling Strategy: 5

5.2.       Questionnaire: 5

5.3.       Results of Market Survey of customer needs: 9

6.      Market Segmentation: 12

7.      Target Market: 13

8.      Product Positioning: 13

9.      Industry Analysis – The Five Forces Model: 13

9.1.       Potential Entrants – Threat of New Entrants. 13

9.2.       Substitutes – Threat of substitute products – Low.. 13

9.3.       Bargaining power of Suppliers – Low to medium.. 13

9.4.       Bargaining power of Buyers – Low.. 14

9.5.       Industry competition – Low.. 14

10.        Distribution Process: 14

11.        Conclusion: The Marketing Mix: 14

11.1.         Product: 14

11.2.         Price: 14

11.3.         Place (Distribution): 15

11.4.         Promotion: 15

11.5.         Packaging: 15

12.        References: 15

 

 

 

Industry Marketing Project Report

1.     Introduction:

This paper is an industry and marketing opportunity analysis on behalf of an organisation that is an established brand in the Fast Moving Consumer Goods sector and is looking at expansion into a related line of products, shampoos, in line with its rebranding strategy. The paper starts off with identifying the organisation, analyses the internal strengths and weaknesses as well as external opportunities and threats using SWOT Analysis and identifies the existing players in the industry and their selling propositions. The study goes on with market survey, presenting a sample questionnaire and a brief presentation of the findings of the survey. Based on the results of the market survey and SWOT analysis, market segmentation, target marketing and product positioning are done, followed by an Industry Analysis using Michael Porter’s Five Forces Model. The paper finally discusses the Distribution Process based on the study and finalises on the Marketing Mix, with product, price, place and promotions put in place for an effective new product introduction process.

 

2.     The company:

This company is a reasonably large organisation with interests in a diverse range of Fast Moving Consumer Goods in the non-food sector. They are producers and distributors of natural products in the UAE market in the cosmetics industry. They have been in the industry for many years and are looking to expand further in areas of new opportunities. The company is an established brand in India with exports done to different markets around the world. This is a diverse business group with a good brand name and has carved a name for itself in some other product lines using the proposition of ‘being natural’. The company has recently gone in for a brand overhaul, trying to rediscover itself in an evolving market. One option left for the company is to build on its branding in the consumer goods sector by expanding into a growing area of demand, shampoos.

 

3.     Internal Environment – Strength and Weakness Analysis:

A brief overview of Strengths, Weaknesses, Opportunities and Threats facing the company is as follows (Baker, M.J, 2006:140 – 144):

3.1.          Strengths

A well established Research and Development wing

Reasonable prowess in terms of Marketing and Distribution

An established brand in the cosmetics sector

 

3.2.          Weaknesses

Ageing product line that requires refurbishment

Generally known to be slow in reacting to competition

 

4.     External Environment – Existing players and product categories in the industry:

 

4.1.          Industry Survey of existing players:

An initial survey of the market, studying products off the shelf, revealed that Anti-dandruff, hair softening and hair strengthening were some of the most sought after propositions in the market, followed by natural and ‘natural anti-dandruff shampoos’. The combination of ‘natural, hair strengthening shampoos with anti-dandruff properties’ were the least, with just a couple of brands in the niche category. And even those brands were available only in select retail outlets.

Chart 1

 

 

4.2.          External Environment – Opportunities and Threats

4.2.1.     Opportunities

There is a good opportunity of going natural, considering the current trends in consumer awareness and preferences

There are very few players in the combination of anti-dandruff and hair strengthening sector that are also natural. However, this needs to be confirmed using a market survey

 

4.2.2.     Threats

The industry is saturated in the general category

There are many new players entering the market aimed at the mass market sector

There are many existing players with established presence in the industry

 

5.     Market Survey:

 

5.1.          Sampling Strategy:

Based on the initial study of existing products in the market, the next step was to conduct a survey among customers, targeting customer who were browsing the shampoo aisles in prominent supermarkets. The customers were of different nationalities but the supermarkets visited were the exclusive ones that were not among the mass market category, but sold upmarket products aimed at the affluent customers. The brands featured were renowned ones that were sold at a premium and were not the ones that would be sold using tactics such as promotions and price cuts.

The sampling strategy (Groucutt, Leadley and Forsyth, 2004:176)used was random sampling, since there was no control over who would be surveyed, with the only criterion being to survey customers who were browsing shampoo aisles in supermarkets or were in the process of buying shampoos. A total of 217 customers were surveyed with a short survey of just 10 questions, since the survey could not be too long while customers were busy shopping.

 

5.2.          Questionnaire:

The following 12 questions were asked to customers and they were asked to mark their responses in the questionnaire.

1. Which are the factors that you consider the most important in your shampoo?

1. Effective cleansing
2. Hair softening properties
3. Hair strengthening abilities
4. Anti-dandruff properties
5. Being naturally healthy
6. Arrest hair fall
7. Combination of anti-dandruff, natural and hair strengthening

 

2. Which factors do you think are missing in the existing product categories?

1. Effective cleansing
2. Hair softening properties
3. Hair strengthening abilities
4. Anti-dandruff properties
5. Being naturally healthy
6. Arrest hair fall
7. Combination of anti-dandruff, natural and hair strengthening

 

 

3. If there were a new product in the market, which would be the need that it should address the most?

1. Effective cleansing
2. Hair softening properties
3. Hair strengthening abilities
4. Anti-dandruff properties
5. Being naturally healthy
6. Arrest hair fall
7. Combination of anti-dandruff, natural and hair strengthening

 

 

4. Personally, what is important to you with regard to hair care?

1. Effective cleansing
2. Hair softening properties
3. Hair strengthening abilities
4. Anti-dandruff properties
5. Being naturally healthy
6. Arrest hair fall
7. Combination of anti-dandruff, natural and hair strengthening

 

 

5. Is your existing antidandruff shampoo working hard enough?

1. Very effective
2. Somewhat effective
3. Just effective
4. Not satisfied
5. Will not buy again

 

6. Is your existing anti-dandruff shampoo too harsh on your hair?

1. Yes, it spoils hair texture
2. Yes, but it works better with conditioner
3. It is just fine
4. No, but it could do better
5. No, it is wonderful on my hair

 

7. Among which of the following categories of products would you be willing to pay a premium for?

1. Effective cleansing
2. Hair softening properties
3. Hair strengthening abilities
4. Anti-dandruff properties
5. Being naturally healthy
6. Arrest hair fall
7. Combination of anti-dandruff, natural and hair strengthening

 

8. What is your opinion about ‘going natural’ with regard to hair care?

1. The best hair care is natural
2. Natural is good, but is not potent enough
3. Natural is good, but there is so much hype about it
4. Natural is good, but more research needs to be done
5. Natural is nothing but hype

 

9. Which among the following do you think is the most potent element in terms of anti-dandruff shampoo?

1. Chemically formulated shampoo
2. Chemically formulated shampoo with conditioner
3. Combination of chemicals and naturals
4. Purely natural shampoo that is potent enough
5. Purely natural shampoo that is potent and also takes care of hair

 

10. What is your ideal combination of ‘the best shampoo’ for your own unique hair care needs?

1. Effective cleansing and Hair softening
2. Effective cleansing and Hair strengthening
3. Hair softening and hair strengthening
4. Hair softening and Anti-dandruff properties
5. Natural and anti-dandruff
6. Natural and Arrest Hair Fall
7. Anti-dandruff, natural and hair strengthening

 

5.3.          Results of Market Survey of customer needs:

A part of the results of the survey are published in this paper with the two important criteria, which are unique personal hair care needs of customers as well as the new product that they would like to see in the market.

 

 

Personal hair care needs:

 

1. Effective cleansing
2. Hair softening properties
3. Hair strengthening abilities
4. Anti-dandruff properties
5. Being naturally healthy
6. Arrest hair fall
7. Combination of anti-dandruff, natural and hair strengthening

Chart 2

 

The majority of customers surveyed said their personal hair care needs would be the most with regard to a combination of anti-dandruff, natural and hair strengthening. It was a similar result when customers were asked as to what would be the best new product in the market according to them, as the graph below illustrates.

 

New Product in the market (Chart 3):

 

 

 

 

 

 

 

 

 

6.     Market Segmentation:

The top three properties of the survey – Natural, anti-dandruff and strengthening properties were market to look out for opportunities in the market through market segmentation, in response to the needs expressed by customers (Baker, M.J, 2006:56).

 

 

Chart 4

 

There is a unique opportunity in the Natural shampoo with anti-dandruff and strengthening properties category, with a majority of customers responding positively to the proposition. However, there were two factors that were taken into consideration:

1. Not many normal supermarkets that catered to the mass market category using discounts and promotions featured products in this category
2. Customers who expressed interest in the product proposition were high end customers who were willing to pay a premium for the product.

 

7.     Target Market:

The target market would be customers who would be willing to pay a premium for the new product, though there may not be many customers in terms of numbers who would be willing to pay a premium. This is a niche sector that would be targeted (Doyle and Stern, 1994:158).

 

8.     Product Positioning:

The product would be positioned as a premium product that is high on Research and Development (in the survey, many customers reported that natural was good, but more research needed to be done). The product would not be competing head-on with any of the existing heavy weights in the market that are all positioned and targeted towards products that are aimed at volume, aimed towards the mass market (McDonald, 2007: 344).

 

9.     Industry Analysis – The Five Forces Model:

A brief industry analysis is done using The Five Forces Model (Porter, 1980: 4) to reveal the state of affairs in the shampoo industry as follows:

9.1.          Potential Entrants – Threat of New Entrants

The threat of new entrants is high, as there are very few entry barriers into the industry

9.2.          Substitutes – Threat of substitute products – Low

In terms of current substitute products for a natural shampoo with anti-dandruff and hair strengthening properties, the threat of substitutes is low

9.3.          Bargaining power of Suppliers – Low to medium

Since this is a new product that would require specialised sourcing of ingredients, there may not be much demand for the natural ingredients from existing shampoo manufacturers. However, there are a few players in the individual products that target the individual propositions of natural shampoo and hair strengthening shampoo. Hence, the bargaining power of suppliers of ingredients could be seen as being low to medium.

9.4.          Bargaining power of Buyers – Low

Since the product is aimed at a premium sector and is a niche product, and since this is a new product proposition based on existing demand for such a product, the bargaining power of buyers is considered to be low.

9.5.          Industry competition – Low

In terms of industry competition, existing rivalry is high. However, when talking of the particular product proposition, there are not many players who are targeting this particular set of needs in the market. Hence, existing rivalry is considered to be low.

 

Based on the industry analysis, the product positioning and targeting seems to be a safe bet.

 

10.  Distribution Process:

The product distribution would be done using the existing sales force and would use existing distribution channels where the company already has a presence and relationship with. Since this is a niche market product, it would be made available only at select retail outlets (Doyle and Stern, 2006: 330 – 331) that have products aimed at high-end affluent customers who would be willing to pay a premium for the product. The niche appeal and branding of the product would be reinforced by distribution of the product only in select outlets.

 

11.  Conclusion: The Marketing Mix:

Based on the market survey, SWOT Analysis and Industry Analysis, Market segmentation, target marketing and product positioning are done, to finally arrive at the Marketing mix (McDonald, 2007: 10):

11.1.       Product:

This is a niche market product targeted towards an existing set of needs that have not been addressed to its potential by existing players

11.2.       Price:

This is a premium-priced product, aimed at high-end customers who would be willing to pay a premium for the new product proposition

11.3.       Place (Distribution):

The product would not be made widely available but would only be distributed at high-end supermarkets that sell exclusive products aimed at affluent customers.

11.4.       Promotion:

The promotion would be based on the established corporate branding of the organisation and based on its reputation of ‘being natural’. Actual promotion should be associated with advertising through the media, highlighting the product value.

11.5.       Packaging:

The packaging should reflect the premium nature of the product and also its key selling proposition of being natural, conveying the product message with design, colour and aesthetic appeal.

 

12.                  References:

 

Baker, M.J (2006), Marketing: An Introductory Text

Doyle, P, and Stern, P (1994), Marketing Management and Strategy, Prentice Hall

Groucutt, J, Leadley, P and Forsyth, P (2004), Marketing: Essential Principles, New Realities;

McDonald, M (2006), Marketing Plans: How to Prepare Them, How to Use Them

Porter, E.M (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free Press

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