Marketing and Sales management Essay Writing Analysis: VB Beer

Marketing and Sales management Essay Writing Review Analysis: VB Beer

Ans 1) As discussed in assignment 2 , the company has to form a set up metrics to judges the performance of the marketing activity associated with the new ice box based VB beer. The brand’s KPI’s  have to be discussed in terms of states goals for the brand. It should also be realised that stated goals should cover the following the perspectives of the market, customer as well external environment in picture while being formulated. The states KPI’s should also be accompanied by a set of variance limits beyond which corrective actions need to be undertaken to make sure that the Brand and the campaign achieve the objectives expected from them.

The objectives from the different perspectives can be stated as below:

A)Market: Market in this reference  would of course  refer to the  entire light alcoholic beverage industry. The market perspective is important as it forms the overall benchmark for the given customer segment.

i)Sales Volume (in Kilo Litres)/Overall Market Volume (in Kilo Litres)àOne of the primary objectives of the ICE BOX based beer campaign  was to gain a favourable market share out of customer shift.i.e converting young customers who are drinkers of beer of high alcohol content into customers who would be drinkers of light beer with a ice box. Thus the above ratio would be a measure of effectiveness of the given campaign to bring about the  necessary change. The given ratio has to be monitored before and after the campaign. There has to be a minimum increase of 15% in the given ration with a span of 6 months that is through the end of H1(The Australian).

Variation: The target set for the ratio is quite stringent. However the target needs to be monitored on a month to month basis. If there is not a increase of around 7% in a period on one quarter the company needs to increase its advertising spends. The advertising also needs to relook at its channel of  reach. The effectiveness of a campaign is dependent on the channel of reach as well.

However if it seems that the ratio is greater than 7% in the range of minimum of 10% ,it would effectively mean that the potential of conversion is far more than what the company has had estimated. Thus,the primary and secondary targets for the areas need to be revised. And of course the ratio target also needs  to be revised. This could also be followed by a reduction of advertising spends by around 20% as the Ad seems to be doing the trick and since the brand  has already got its movement, the ad spends could be toned down.

ii)Offtake:-The off take is a measure of the customer affinity for the given brand. Looking by any conservative estimates the company should be aiming at a minimum of 25% rise in kilo litres of offtake. This target has been set looking at the performance of previous new launches in the given sector of beverages. The off take can be measured through a sample of retail outlets across the region of distribution. The off take target for the target is also to be analysed for variation.

Variation: A variation of around 10% in the off take level that is on the lower side would in general mean that the company needs to wrestle itself with the distributors to push for the off take. The fall of targeted output would in general mean that the primary and secondary targets need to be revised for the distributor and the concerned area manager for the place.This has to be supported by an increase in trade offers to push for the trade in the segment

B)The customer perspective has to be analysed on the following two parameters

A)Share of Mind:This is a a leading indicator in for future sales of the brand.The share of the mind is also an indication of the brand share of the brand.We believe the given new ice boxed VB beer will help it to earn a market of atleast 30% in the segment a jump from a overall 17% in the market.

Variation: Since the jump expected is quite steep for the brand .A variation to around 5%-7% is accepted.A fall below that share would of course mean the marketing campaign needs to be revamped

C)The environment perspective in this given situation would mean analysing the markets in which it is operating.As per Nielsen survey(SMH) the brand has taken a hit over the years.Thus proper identification of territories is important to market this beer.The company could start by taking a cluster approach to counter the problem

Variation: This being a initial test method could not be subjected to strict variation measurement controls

Ans 2) In order to be an effective marketing organisation the company has to improve its reporting standards(OMAFRA).A bottom up approach could be implemented through  a SAP (Magna Training)module to have a better look at data and to take decisions based on it

However, for the external shareholders involved in terms of customers and the equity holders, the company could issue monthly reports about the brand performance. The customers could be further engaged by floating contests in which they express their opinion about improving the brand as a whole. The best way to involve customers would be to  identify the promoters of the brand and accept their inputs .The inputs should be directed through the area managers to the concerned brand managers. The  effective inputs would then be collated to and sent for approval to the Chief Marketing Officer. The pertinent selected inputs would then need to be discussed with the Head of Trade Marketing .Involving all the internal stakeholders would in fact imply that the all the initiatives undertaken are well discusses before being implemented.

Added to that the bottom up approach for reporting standard should effectively start by collected information about the Top Retailer in each area assigned, this information would help to indentify which kind of retail ambience supports the new product well. This is an important parameter to be captured.

Added to this the the detail that should also be collected from the field is that of Volume sold in each area assigned to an area manager. This level of granularity of data would ensure that a proper benchmarking is to be carried in the entire organisation. This will also help to judge performace of the best beer consuming areas to that of the best VB beer consuming areas.This will in turn help to indentify weak areas,growth areas and strong areas.

The marketing spends allotted to each area also needs to be looked from a ratio of ad spends to sails ratio. The ad spends in this case would be essentially hoarding , banners and other retail support items invested in the area. The ratio would give a very rough indication of the effectiveness of marketing programme

Other granular reports that can be collected are order by value,order by volume and weekly order rate. This change in collection of report would also ensure that the Supply Chain is better tweaked to handle the demand pressures.

The data once collected has to reported on a weekly basis .It has to be then analysed by the region head. The region head then has to collate the report and look for growth clusters.The growth clusters has also to be analysed in terms targeting as well. The targets and indentified clusters get filtered as they are reported higher up .

The improvement in reporting standards  would in general suppose better data collection at ground level and thus a better use of analytics to use that data.ISO based reporting standard(ISO ORG) which is customer focuses. This would also mean that the data collected can be easily audited and checked for any error. Interestingly some of the best marketing companies have a rich inventory of data ably supported by a good analytics team. Thus a change has to be thus brought in terms of business practices which essentially in our case would mean proper allocation of advertisement funds.

The SAP based implementation of a higher up data collection would ensure that the   higher up in the hierarchy as well marketing managers are aware of happenings   that are a part of the field. Thus the solution as provided gives a proper use of reporting formats and change in overall business practices. This can also be extended to fin department using IFRS standards as well.

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