Marketing New Product- As Coursework

Ruchit Patel Section A

This is my Business coursework for AS Business and the coursework is based on Investigating Marketing. I work in a Marketing Department for a Major Soft Drink, Confectionary, Snack Food, etc company. I have been asked by my manager to introduce a new product into the product line. My objective is to make the best possible choice and justify it to my manager.

I have to decide what kind of new product I want to develop I will have to research and think of as many ideas as I can, so I have a variety of different products from which I can gradually eliminate most of the ideas until I have the best idea for a product left. I had to think of a few ideas which I could use. This was extremely hard as many of the products I chose have already been produced. The idea I came up with were:

1. 2. 3. 4. 5.

White chocolate Jaffa cakes Wrigley’s strawberry chewing gum Mango crisps Mango Jaffa Cakes Snickers milkshake

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White chocolate Jaffa cakes

Wrigley’s strawberry chewing gum

Mango crisps

Mango Jaffa Cakes

Snickers milkshake

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Advantages It’s different and people that like white chocolate will like this product The taste of strawberry and mint might change the choice of what people buy as its different It’s different to other crisps and people who like mangos might like mango crisp It’s something new and people will enjoy the different taste and the different flavour It would be refreshing and people that like the chocolate sneakers would like the taste

Disadvantages Not many people like white chocolate compared to normal milk chocolate Too many strawberry flavoured gums in the market

Not many people would like the taste of the crisp mixed with the flavour of mango People that don’t like mangos probably won’t like the taste of mango flavoured jaffa cakes It’s all ready in the market and being sold in major stores

Ruchit Patel For my final product I have chosen to do Mango flavoured jaffa cakes, I have chosen to produce this new product as it different and the jaffa cake brand hasn’t been extended for a long time. Jaffa cake is owned by Mc Vities, Mc Vitie’s is one of the biggest brands for producing food products such as cakes, biscuits and chocolate. Mc Vitie’s have made hundreds of products and some of the main ones being: 1. 2. 3. 4. 5.

McVitie's Digestive Milk Chocolate McVitie's HobNobs McVitie's Light Rich Tea McVitie's Jaffa Cakes A range of small cake products

McVities is a UK based company which produces cakes, biscuits and savoury and sweet products to the mass market. McVities is extremely consumer orientated. This means it produces products that its customers need and want.

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Ruchit Patel Product Description Name: Mango Jaffa Cakes The type of packaging I will use for my product will be the same as the normal one but im going to make changes to the shape and the colour of the packaging. Im going to change the shape and size of the cake because I changed the filling inside the cakes to mango I wanted the shape of the cake to be in a shape of a mango. In each packet of cakes there are going to be 10 pieces of cakes. Packaging: the colour of the packaging is going to be orange, yellow and other tropical colours. 5cm

3.5cm

This is going to be the shape of my new product The ingredients for one jaffa cake: Glucose-fructose Syrup, Plain Chocolate (20%) (Sugar, Cocoa Mass, Vegetable Fat, Butter Oil, Emulsifiers (Soya Lecithin, E476), Cocoa Butter, Dried Skimmed Milk, Natural Vanilla Flavouring), Sugar, Wheat Flour, Whole Egg, Water, Dextrose Monohydrate, Concentrated Orange Juice (8%) (Orange Juice Equivalent), Glucose Syrup, Citric Acid, Humectant (Glycerine), Gelling Agent (Pectin), Vegetable Oil, Raising Agents (Ammonium Bicarbonate, Disodium Diphosphate, Sodium Bicarbonate), Dried Whole Egg, Natural Flavourings, Acidity Regulator (Sodium Citrate), Natural Colour (Curcumin). I am going to keep the same ingredients as the original jaffa cake but im going to change the orange flavouring to mango.

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Nutrition Energy…………..………….45 kcal Protein………….…………….0.5 g Carbohydrate……………........8.3 g Of which sugars………….…6.4 g Of which starch….………….1.9 g Fat……………….……….…..1.1 g Of which saturates………….…0.6 g Of which mono-unsaturated…..0.4 g Of which polyunsaturated…….0.1 g Fibre…………………………....0.2 g Salt……….less than…………...0.1 g Of which sodium….less than...0.1g It also gives the guideline daily amounts for calories, fat and salt for men and women. The ingredients are listed and there is also a note about allergies which states Contains egg, soy, wheat and gluten’.

Marketing Strategy of McVitie’s: CHS12312

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Mission statement My aim in designing the mango jaffa cake is to reach new customers, increase sales of existing customers. I will do this by increasing brand awareness and Advertising using radio, billboards etc. For my new product I have to do some research on the background of McVitie's Jaffa Cakes as I am going to make a new flavour jaffa cake. So of the flavours and products McVitie's Jaffa Cakes have come up with are: Flavours •

McVitie's Jaffa Cakes

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McVitie's Jaffa Cakes Apple & Blackberry

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McVitie's Jaffa Cakes Blackcurrant

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McVitie's Jaffa Cakes Lemon & Lime

McVitie's Jaffa Cakes

This is the original McVitie's Jaffa Cake, this was the first flavour Mc Vitie’s produced the flavour. It consists of orange on top and a sponge layer and then the orange flavour jelly with a chocolate covered topping. The box for this original jaffa cake has always been blue and orange. And they have made one single jaffa cake contain only 1 gram of fat. They have also made it low in fat and high in energy so people who like sports and also athletes can eat it as well while they are training and competing, as it gives them a quick boost in energy. McVitie's Jaffa Cakes Apple & Blackberry

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McVitie's have also made a different flavour of jaffa cakes. They have just changed the flavour of the cake and in this case they have put apple and blackberry in the middle. They have done the same with other flavours, McVitie's have also made a lemon and lime flavour and a blackcurrant flavour. Everything is the same, they have just changed the flavour and it still has 1 gram of fat. McVitie's Jaffa Cakes Lemon & Lime

McVitie's Jaffa Cakes Blackcurrant

Product Extensions •

McVitie's Jaffa Cakes Muffin

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McVitie's Mini Jaffa Cakes

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McVitie's Mini Jaffa Cakes Rolls

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McVitie's Mini Jaffa Cakes Rolls XL

McVitie's have also produced other types of snacks but with the same flavour as the original. Where you can purchase McVitie's Jaffa Cakes You can buy all McVitie's Jaffa Cakes product throughout the United Kingdom and Ireland in most supermarkets such as Tesco, ASDA,

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Ruchit Patel Sainsbury’s, Morrison’s, and Waitrose. You can also find them in newsagents around the country. McVitie's has expanded and have started selling their product around the whole of Europe and trading in most of those countries. As they have been in demand around those areas. McVitie's have realised they could expand their market by trading abroad, so they have started doing that and since they have started they have seen an increase in sales and profit. Marketing objectives: Marketing Objectives are goals or targets which are part of the coprperate objectives that must be achieved by the marketing department. Marketing objectives are the aims set out by the organisation to succeed. They are mainly about the products, sales and marketing only. The benefit of setting marketing objectives is to enable a business to help the planning process, to help motivate employees by providing a goal and to help the company meet its financial objectives and profit targets

My marketing objective for my new product for McVitie's Jaffa Cakes are going to be: • • • •

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Understand customer’s needs and want by market research, so that means I can find the gap in the market. Get more repeat purchases from customers so to increase customer’s loyalty. Develop new products Improve profitability of the company – customers are the source of sales revenue plus profit for all companies so the customers need to be provided with the correct product. Improving market share – for example McVitie's have 20% of the cakes and biscuit market and they want to increase that to 25% that means that the customer base need to increase (number of loyal customers) I could use diversification this mean that I can open a new market so that means launching new products/ new brands or using an existing brand but launching a variation on that product (e.g. mango jaffa cakes)

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Increasing brand awareness – improving consumer knowledge about company and it’s brands by more extensive advertising

I have made my objectives S.M.A.R.T

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SPECIFIC - it has to state what exactly has to be achieved

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MEASURABLE - it has to be capable of measurement so it is possible to determine weather it has been achieved or how far it has been achieved

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Achievable - the objective has to be realistic so it has to be based on the resources of the business

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RELEVANT – the objectives have to be relevant to the people responsible for achieving the objective

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TIME RELATED – it has to have a realistic deadline

Both of the corporate objectives and the marketing objectives use the SMART criteria and they use the resources available to the business to make sure that all the objectives follow the SMART

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Ruchit Patel criteria. It helps the business to point where they are doing well and where are the parts that they need to improve on. Mainly all businesses have objectives and aims whether small or large, private or public. My marketing objectives are: My marketing objective by introducing this product into the market is to: 1. Improve profitability for the company by producing a new product which will sell and gain profit from it. By end of 2009 I hope to increase profits of Jaffa cakes by 5-10%. I think this is attainable as now in a recession people will eat more lower priced sweets and snack products. 2. And I will also improve the taste of the product so I will expand the market by attracting new customers to buy the product. I will back it up with research to show the mango taste is growing in popularity. This should take a year before consumers accept the new taste. 3. Another marketing objective for me is to make sure that the product will survive and sells for the product will not decrease and the company will still make a good amount of profit by selling this product. •

Also to increase the market share in their specialised market.

For my product to sell to its best ability I will target different places for my product to be sold and the right places so I don’t lose out on sales. I will make sure my product is sold in major supermarkets and in vending machines at sports and leisure centres.

Market Segmentation Segmentation is breaking a total market down into groups of customers and/or potential customers who have something significant in common in terms of their needs and wants or characteristics. My target market for my product is mainly children and sports people, to target these people I will have to sell my product where most of these people possibly are I will be selling my product in all main supermarkets and most corner shops around the country.

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Ruchit Patel If you are to gain a visible market segment from your overall target group then there are a few rules that you should follow to ensure that.

Increase market share All businesses would aim to increase their market share, and this is one of the marketing objectives. As I am creating a new product for McVitie's Jaffa Cakes one of their objectives would be to increase market share. Although McVitie's Jaffa Cakes has the entire market share within the snacks market as there are no other competitors it means that they gain all the profit in the chewing gum market. However McVitie's Jaffa Cakes does not have the entire market share within the confectionary market, therefore this would be one of McVitie's Jaffa Cakes objectives to increase the amount of market share within the snacks market. If you are to gain a visible market segment from your overall target group then there are a few rules that you should follow to ensure that. •

You must be clear and specific in the segment you have identified

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You must have a group of hard facts to what you think the segment group might be

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You must only segment one which you hope to achieve

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Have a realistic target don’t go for something that will be impossible to achieve

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Must ensure that you will make a profit from chasing this market segment

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Always follow the largest segment first and place the other secondary.

Market segmentation can be described in different way such as: •

Demographic – age, sex, social class

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Personality – extrovert introvert

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Geographic – urban, rural

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Behavioural – occasional users regular users

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Section B The purpose of marketing research is so that it helps to aim and achieve in an organisation and helps to make effective marketing decisions this is done by doing evaluation of data. Marketing research helps organisation achieve their overall objects by helping them to identify market opportunities and use to access and improve marketing activity and also helps by revealing important consumer information which helps to improve quality of marketing. Marketing research helps organisations in a number of ways to find out information about their market and business and also other markets and business. It helps identify the areas of which you are targeting with your product or service but also helps to understand what customers want and need. There are a number of ways of grouping and identify certain areas in the market this is called market segmentation but it is not just splitting up the market area it is finding out information to help you know what it is that customers would pay good money for. There also are four types of research in marketing research and they are: 1. Primary research this helps to find out information by using a direct approach of you actually finding the research out the information yourself also known as field research. 2. Secondary research uses information that is already carried out by someone else for some other purpose not necessary the same purpose as you but you are using that other person’s research to help with your research also known as desk research.

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Ruchit Patel 3. Quantitative research is research with the use of number and figure for example it uses the number and percentage of consumers that are aware of a particular product or service. It can be use to measure sales including those of its competitors and helps estimate market share and segment size. 4. Qualitative research provides the organisation with information regarding why people buy and what really does motivate them to buy. There are six essential benefits to marketing research and they are: 1. To increase over capability and understand essential research concepts and provide an improved ability to make informed decisions 2. Provides a effective opportunity to supplement 3. Facilities a common knowledge bridge with parties involved in the research process 4. Provides a specific starting point for the people entering the profession 5. Gives companies an objective tool to help develop and promote employee 6. Assists researchers in understanding and differentiating between good research practices and those which undermine objectives and impartial research

There are three types of themes in marketing research and they are customers, competitors and marketing environment. •

Customer or market provides you information on market segment size, market trends and how they can be forecasting future customer needs. Brand share including competitors and also customer preferences such as their lifestyle

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Competitors are the overall aims and objective and also compare products with each other to find out the better price, distributing methods and promotional methods

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Marketing environment provides information on political, ethical, and social and technology influences.

There are three types of themes in marketing research and they are customers, competitors and marketing environment. Customer or market provides you information on market segment size, market trends and how they can be forecasting future customer needs. Brand share including competitors and also customer preferences such as their lifestyle. Competitors are the overall aims and objective and also compare products with each other to find out the better price, distributing methods and promotional methods. Marketing environment provides information on political, ethical, and social and technology influences. Research helps McVitie's Jaffa Cakes to understand customers, competitors and market environment. Marketing environment is also an area where marketing research can be carried out such as political influence, economic influence, social influence and technological influence. McVitie's Jaffa Cakes uses research to understand the customers. McVitie's Jaffa Cakes to see what customers and provides information to McVitie's Jaffa Cakes on the market and market segment size. Also by using market trend they can forecast future consumer needs. They can also research information on customer preference such as their colours and lifestyle. McVitie's Jaffa Cakes can also research information on competitors and their overall aims and objectives and what they are trying to achieve. They can also compare products, prices, distribution methods and promotional methods. They can also look at competitor’s profits and financial situation to get ahead of the competition. McVitie's Jaffa Cakes research on customers helps it to understand the products and innovative measurable progress so it can help the to make aims and objectives for their company such as reducing fat, sugar and salt for their core brands.

Marketing to children is also a concern to some customers McVitie's Jaffa Cakes marketing code defines the special care to be taken when CHS12312

Ruchit Patel advertising to children aged 8-12. Respecting the roles of parents and encouraging pester power and no use of fantasy characters, celebrities or a placement that confuses or encourages inappropriate or over consumption. Portion sizing and variety and moderation this helps consumers and customers to have a broader range of options to choose from. Primary Research Primary research can be carried out in several ways; this includes surveys, questionnaires, interviews, observations, telemarketing, product testing, focus groups, consumer panels and trade audits. These methods will be able to help a company to locate a potential market and then create products that will best match the needs of this market. Questionnaires are a systematic list of questions that are intended to capture information from customers. It tries to obtain their attitudes, values, beliefs and people’s specific needs. A good questionnaire asks questions that are related to the information needed, it won’t contain too many questions, it won’t ask personal questions, it ensure that the questions fit in a logical order and use simple language that won’t confuse people. Primary research usually makes the information more reliable and it will match the criteria which is it aimed at. However primary research also will take a lot of time and can be costly. For my primary research I have conducted a questionnaire, my questionnaire consistence of thirteen straight forward questions most of which have a list of answer to select from and only a few questions requiring people to write their own answers. It is estimated to take more than two minutes to complete a questionnaire.

Secondary Research Secondary research is research already published, and is the cheapest form of research because the data already exists for your acquisition. Secondary research can be split into internal and external research.

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Ruchit Patel Secondary research involves the investigation of secondary sources of data Internally an organisation has access to a wealth of information, which can be a useful tool for decision making for managers. Information available may assist the organisation in discovering why sales are decreasing, why customers are not satisfied, and customer usage rates and so on. Sources of internal research may include: •

National product sales.

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Regional product sales.

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Customer usage rates.

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Guarantee cards.

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Customer comments or complaints.

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Sales people, research and development staff.

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Past research conducted.

Sources of external secondary data include: •

Periodicals.

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Specialist marketing reports (i.e. Mintel)

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Industry magazines.

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Chamber of commerce.

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Government statistics.

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Internet.

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Professional bodies.

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Trade associations.

Limitation of secondary research It is easy to find and collect secondary data., however, you need to be aware of the limitations the data may have and the problems that could arise if these limitations are ignored.

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Secondary data can be general and vague and may not really help companies with decision making.

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The information and data may not be accurate. The source of the data must always be checked.

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The data maybe old and out of date.

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The sample used to generate the secondary data maybe small.

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The company publishing the data may not be reputable.

Evaluation of my End Product To evaluate all my marketing objectives that I have set, I think that my product that I have come up with do well and the information that I have gained shows it will do well in the market and increase the profit of McVitie's Jaffa Cakes. My final decision on my product was to choose the mango flavoured jaffa cake but to keep the original shape and size and the chocolate coating but just change the filling inside the jaffa cake.

Section C The term marketing mix is used to describe the all the options available to the marketing manager in order to market a particular

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Ruchit Patel good or service. It is often referred to as the 4P’s (i.e. Product, Place, Promotion, and Place) The main variables of marketing mix are the 4P’s of marketing, sometimes the marketing mix of service can include 3 different p’s people, processes and physical evidence. The 4 p’s are the variables that mangers take in to consideration in decisions for the company which will achieve the businesses aims and objective, so they can meet the needs and wants if the customers and in some cases to attract customers to generate sales. Marketing mix can be showed in a diagram which will be easy to understand the diagram is shown below:

For the company to achieve there aims and objectives they use marketing mix to help them reach them. As you can see in the diagram you can see Target Market in the middle, for the company or business to achieve the intentional target market they need consider the product, price, place and promotion to do this.

Product The product is the most important of the 4 p’s as without a product there is no business unless the business is there to provide a service. In-order for the product to sell well it has to be made to be good in quality and also to be made to fit what the target audience would like. Product can be defined into two different terms:

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Physical goods ( product) bought by customers and also used by consumers

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Services that are bought, by customers or consumers

Out of the 4 p’s product has the most importance towards a business, the product is an item which is the main income of money for a company so this means product is very important. My product is Mango flavoured jaffa cakes, I have chosen to produce this new product as it different and the jaffa cake brand hasn’t been extended for a long time. When I carried out my questionnaire I gave a few different choices for people to choose and Mango was the most popular. I have chosen this extended type for my product because personally McVitie’s Jaffa Cakes needed to make a new flavour to put in to the market to increase there brand awareness. So I have come up with an idea to change the filling in-between the Jaffa cake, the new filling will be a Mango flavour substance. The jaffa cake size and shape will still be the same as the original product, I haven’t changed the design of the product because existing customers for the product are happy with the design and in the questionnaire not many people said they would change the design

Price The price is very important in the marketing procedure as if the price is to high and the product is at a low quality the customers will not buy it and if the prices are too low some customers will think that because it’s cheap the product is poor quality and also if the prices are too low then it is more likely that the business will not breakeven.

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The prices that the products are to be sold at should be at a level which the customer will believe to be value for money and not just cheap, as this may sometimes be thought as a reflection of the quality of the product they will receive influencing their final decision on whether or not they will purchase it. Payne’s could use one of the following pricing strategies to sell their product at depending on the market:

Penetration Pricing - is where a firm charges a very low price when the product is new, and is used to increase the interest from customers. Skimming- Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. Usually price skimming is used when the product is unique/better than others in that market. Destroyer Pricing-this is when firms charge prices which they know are unprofitable for their competitors, driving them out of the market. However this is illegal. Price Discrimination- this is charging different prices to different customers for the same product e.g. Students, OAP's. Competition Pricing- this is where firms charge very similar prices as other firms. Usually this happens where there is very little product differentiation e.g. Petrol.

Psychological Pricing- psychological pricing is when the consumer uses the price to persuade the customers emotionally rather then rationally, this form of pricing usually is when the price is odd such as £19.99 to make it seem cheaper or when the price is set high to create a good image

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Ruchit Patel Close Out- this pricing strategy is when the old products are sold at a low price so the business will avoid storing the product. Therefore McVitie's might loose out a bit but they will loose out on more money if they keep trying to sell last seasons stock. Target Return Pricing- this strategy is when the price is set to achieve a target return-on-investment. McVitie's will use this strategy so they will be able to estimate their income from selling their product so they can plan what they can do in the future with their investments.

For my product I will use penetration pricing because it is the best way to attract new customers and existing customers to my new product which I am confident that the people will like it and will continue to buy it in the future again and again.

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The price for the original 12 piece McVitie's Jaffa Cakes is £ 1.48

The price for the 15 piece McVitie's Jaffa Cakes tube is £ 1.59

The price for the 24 piece McVitie's Jaffa Cakes is £ 2.13

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The price for the 36 piece McVitie's Jaffa Cakes is £ 3.45

The price for the mini McVitie's Jaffa Cakes is £ 1.50

The price for the mini portion McVitie's Jaffa Cakes is £ 2.11

All the above are different types of McVitie's Jaffa Cakes packets they have made. These come in different sizes and different amount of Jaffa Cakes in them so this shows a variation in way they sell the product and the prices they have giving them.

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Ruchit Patel Promotion The promoting of a product is very important as it is how the product will gain awareness, promoting is basically advertising. It includes advertising the product, advertise the brand to increase the brand awareness etc. The table below shows the advantages and disadvantages of promotion techniques: Type

Advantages

Disadvantages

Television

Can reach millions of people all over the world

Very expensive

Radio

Cheaper than T.V, can Sound only, smaller audiences be used to reach certain listeners

Newspapers/Magazines A lot of information is known about the readers

Often not in colour, are static and silent

Posters/Billboard

High visual impact for Are only seen for a few seconds by a long time and will be drivers and are vulnerable to seen by a lot of weather and graffiti different people

Cinemas

Very high visual and sound effect, captive audience

Are relatively expensive

Leaflets/Junk mail

Cheap to produce and distribute

Are easy to ignore

Internet Sites

High visual impact, There is a lot of competition so interactive and can getting peoples attention may be link directly to buying difficult the product

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Place Place simply refers to how you will sell your products to your customers. Depending on what it is you are selling will directly influence how you distribute it, and it affects mainly those businesses that are in production. To market the product McVitie's Jaffa Cakes will have to know how to distribute the product to the customer and what they need to do in order for this to happen. McVitie's Jaffa Cakes will have to think about a number of factors such as distribution channels, market coverage, warehousing etc. Distribution channels Distribution channels is a way of selling a company's product, this is either directly or through distributors. McVitie's Jaffa Cakes will sell their product through distributors, when the product is sold at supermarkets it will be sold through the small corner shops which is usually placed around the country. Marketing Coverage Market coverage is ensuring that the product is made available through appropriate ways so that: (a) The potential customer can access it as easily as possible; (b) The product is properly displayed, sold and supported within the channel of distribution. Market coverage might involve intensive distribution, selective distribution or exclusive distribution. This basically means that McVitie's Jaffa Cakes will have to make sure that the product is sold in shops and stores (or online) so that it is available and easy for the customers to find the product. Therefore as McVitie's Jaffa Cakes will be selling their product mainly to all supermarkets, small shop, corner shops, petrol station and mainly all

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Ruchit Patel shop the sell food items around the United Kingdom. They will need to sell it in certain stores and make sure that it is known that that they are selling this product there so this is where the promotion bit comes in, this can be achieved with help from advertising.

Conclusion I have come to a conclusion to my marketing mix I have now decided what I am going to do in all parts of the 4p’s. 1. For my product I will be providing a new flavour for McVitie's Jaffa Cakes. 2. For prices I will be using penetration pricing which means I will start low and gradually rise the pieces starting from £1.20 for the normal packet which provides 12 jaffa cakes and gradually increasing the prices and hopefully reaching the £2.

3. For Place I will be selling my product in supermarkets and corner shops and also any other shops as well as petrol stations. 4. For Promotion I will be using advertising on T.V, billboards and in the news papers.

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Section D In this section I will discuss the internal factors that may affect my marketing plan (the marketing mix) i.e. cost, time, staff and capital. I will also conduct a SWOT analysis to help me identify all aspects of current and future influences. I will explain how my marketing plan will help to divert some of these issues and how it may need to adapt to avoid/lower the risk of others. I will describe what McVitie's Jaffa Cakes may want to do to lower the risk/avoid certain influences. To carry out a SWOT analysis it requires research into the organisation current position and future position the analysis is used to match an organisation’s strengths and weakness with the external market force in the business environment. A SWOT analysis can be used for decision making in business to decide what their aims and objective will be. There are many different reasons to what a SWOT analysis can assess such as a companies position in the market, a method of sales and distribution, a product or brand, a business idea, changing supplier and an investment opportunity and many other reasons to what a SWOT analysis can assess. The marketing plans of a business is put together in addition to a business plan contains detail of objectives, costs, forecast revenues and constraints. I will use SWOT analysis to identify the strength and weakness of McVitie's Jaffa Cakes but also the opportunities and threats of the organisation. Swot analysis stands for: STRENGHS WEAKNESS OPPORTUNITIES THREATS

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Ruchit Patel Strengths McVitie's Jaffa Cakes has many strengths because it is a worldwide brand and very successful. McVitie's has a well-known brand name and the logo is recognised by many people and has been around for a very long period of time. This can also increase sales by having a recognisable and distinctive logo. Also McVitie's sets targets for themselves and promote and advertise McVitie's to increase sales and their catch and effective slogans. McVitie's is a very large established business and has a very good reputation that is a very good strength also it has very good advertisement. This is a chance for McVitie's Jaffa Cakes to advertise any new products that they would like to and increase sales. McVitie's Jaffa Cakes also have a large market audience that they attract of all ages so there is something for everyone. Weaknesses As well as having its strengths McVitie's also has it weakness such as unmotivated staff in the work place could cause a lot of problems for the company. If McVitie's has unmotivated staff there could be a big problem in the production line because McVitie's need people for packing and delivering the products. Another weakness for McVitie's could be a too big a demand for the company and they may not be able to keep up with the orders for the product especially when staff are not motivated. Opportunities Opportunities for McVitie's are that they can get sponsor and promote their products by advertising at important events such as sporting events this will increase sales especially if the product was been sold at the sporting events. McVitie's also have the opportunity of diversifying into a different market besides the snack market they could do something entirely different or they could still do the same thing but bring out a different range of products that are aimed at a different audience such a line of healthy products for children at school or adults. They could also develop their promotional strategy by using large marketing strategies. Threats McVitie's also has its threats are their prices because other companies are competing with McVitie's because it is a very popular and well-known brand so they might copy ideas from McVitie's and sell CHS12312

Ruchit Patel them at cheaper prices than McVitie's. But because McVitie's has a very good reputation and is a popular brand it maybe less likely to happen. McVitie's has a lot of threats from competitors such as other large snack companies, because they are also a company that make chocolate products and both companies have very good ideas so they might take customers away from McVitie's. Also companies that sell healthier food may be a threat to McVitie's because parents may refuse to give their children chocolate treats and may prefer them to eat healthier so it is seen as a threat because McVitie's might lose sales from it. There also is the threat for McVitie's of more companies diversifying into the chocolate market and taking consumers away from them and decreasing the sales.

Pest Analysis The Pestle analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organisation. The Pestle Analysis is often

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Ruchit Patel used as a generic 'orientation' tool, finding out where an organisation or product is in the context of what is happening out side that will at some point effect what is happening inside an organisation. Pestle is a short form for Political, Economic, Social, Technological, Legal and Environmental factors, which are used to assess the market for a business or organisational unit. The Pestle analysis headings are a framework for reviewing a situation, and can also be used to review a strategy or position, direction of a company, a marketing proposition, or idea. Political Political factors can have a direct impact on how the business runs. Decisions of the government affect people everyday of their life and can also called policies or legislation. There are different laws that may affect the business and the way it operates such as the government’s minimum wage and so do the consumer’s health and safety laws. Economical Every business is affected by economical factors nationally and globally. There are policies that have been set accordingly such as interest rates. This can also affect consumer confidence or and behaviour whether it is successful or not. Economies have had a major impact on UK business because it means cheaper labour abroad the competitiveness of UK products nationally and globally.

Social Social

factors affect you within society such as family, friends, media affect interest and your opinions. All of these things change your interest and opinions and make you think more about the society you live and also influence your opinion. For an example media talks about people health and how obesity is rising in the UK today and more dietary schemes are being published in newspapers, magazines, and on television. A result of this is more people are joining the gym to stay

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Ruchit Patel healthy and it is promoting more business towards leisure centres and gyms. Technological Technological factors changes the way the businesses is run because the Internet is having a massive impact on business and more companies and organisation are using the internet today to help direct business towards them. And consumers can shop whenever they would like to from wherever they are this is a beneficial for business because they can offer more to the consumers.

ASA (Advertising Standards Authority) The Advertising Standards Authority is the independent body set up by the advertising industry to police the rules laid down in the advertising codes. The strength of the self-regulatory system lies in both the independence of the ASA and the support and commitment of the advertising industry, through the Committee of Advertising Practice (CAP), to the standards of the codes, protecting consumers and creating a level playing field for advertisers. ASA make sure standards are kept high by applying the advertising standards codes. They also can stop misleading, harmful or offensive advertising. They can ensure sales promotions are run fairly, and can

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Ruchit Patel help reduce unwanted commercial mail - either sent through the post, by e-mail or by text message - and they can resolve problems with mail order purchases

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