Impact of Marketing Mix on Consumer Attitude

The assignment provides an overview of the impact of marketing mix on consumer attitude and purchase intention towards 'Green' products, based on several studies and research articles in marketing science. It highlights key findings from these sources and discusses their implications for marketers.

GROUP MARKETING
MANAGEMENT
REPORT AND
PRESENTATION

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
ADAPTATION AND STANDARDIZATION OF MARKETING MIX.......................................2
CBBE MODEL................................................................................................................................4
INTEGRATED COMMUNICATION MIX AND METHODS......................................................6
MEASUREMENT OF SUCCESS...................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
Marketing plays a crucial role in not only the formation of a new business organisation
but sometimes, it even assists in promoting an age-old business with the use of several effective
measures. The current report has also presented a similar scenario of a selected business
organisation named Nando’s which is in the view of entering into a new market with their newly
launched product, Koffee. For this purpose, the present report has assessed certain alternative
measures through which, one can successfully launch its product into another marketplace. The
options discussed over here involved the procedures of adaptation and standardization with
distinct elements of marketing mix for a progressive launch of the product in Romania, as the
chosen product. Out of the 2 aforesaid measures, adaptation as an overall strategy has been found
to help Nando’s in operating towards an efficacious direction.
Also, the evaluation of CBBE model is apparent to support the cited firm in building a
strong image of their brand and maintain the same throughout their operational period. It is with
a special context of increasing the sense of loyalty in customers and combating the state of
competition. Next involved the discussion of IMC with its various well-known measures that
mainly included the application of distinct communication methods. Herein, the tactic of sales
promotion has been found to be the most efficient strategy to attract a large set of new customers.
This mainly referred to the targeted set of young age consumers who tends to look for discounts
and offers in the food outlet. Lastly, it has defined different ways of measuring success, from
which, considering the fulfilment of intended sales target has been found to be the most requisite
approach for a successful launch of product in new market.
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INTRODUCTION
This study is based on assessing the actualities of a strategic marketing approach, as
undertaken by Nando’s in order to expand into the Bucharest market of Romania with a new
product named Koffee. For which, they are considering to refer several effective actions,
involving the use of either adaptative or standardised elements of marketing mix. Followed by
which, it has together discussed the use of CBBE model as a way of building strong brand image
in Romanian market by focussing upon its 4 distinct components, discoursed below. It is then
followed by the depiction of IMC, with its importance for a successful launch of new product
and continuous growth of Nando’s in Bucharest. Lastly, it has defined certain effective ways for
measuring success, followed by various suggestive approaches to choose from one particular
technique, relevant to the application of either adaptation or standardization.
ADAPTATION AND STANDARDIZATION OF MARKETING MIX
Adaptation strategy involves changes in packaging, price or promotion techniques of a
product or services. This process occurs when a firm wants to modify its marketing strategy in
order to achieve a competitive advantage when entering into a foreign market. For example;
McDonald has undertaken the approach of product adaptation where they are modifying their
existing products according to the identified needs and preferences of local consumers of new
market. This has not only assisted the company to meet out the newly identified needs and
demands of its consumers, but has also assisted them in enlarging their product portfolio.
Standardisation strategy on another hand is applied by multinational companies to
attempt marketing a solution with uniform consistency throughout the marketing mix (Aggarwal,
2018). Benefits of standardised marketing strategy provides consistency and brings down the
cost of production of company. Example; Coca Cola uses global standardisation in marketing by
keeping appearance of product relatively unchanged between different markets.
Nando's is an international casual dining restaurant chain which was firstly established in
South Africa, in the year 1987. It specialises in Mozambican style peri-peri chicken which is sold
in more than 30 countries across the globe. Nando's is now referring to enter into a specific
location of Romanian market called Bucharest through Product Adaptation. where the listed
company can change its newly launched product Koffee according to the flavours and taste of
local people of Romania.
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Product: Nando’s can refer adopting the product on the basis of its targeted client’s needs
and demands. Like for example, company is going to introduce Koffee in Romania which should
be based on the taste and preferences of Romanian consumers (Fan, Lau and Zhao, 2015). There
might be chances that in some region they like mocha flavour of coffee and in other areas people
might like Latte. Besides this, they can also consider adopting such distinct flavours of Koffee to
cover a wide range of choices for the consumers. Although, this could lead to impact upon the
usefulness of Nando’s standardised goods and services. Considering this, they can refer
introducing it soon after a successful launch of their newly introduced product, Koffee, to
enhance their value and capture effective number of shares in the market.
Price: The price of the commodity should be adopted by the enterprise with a keen
analysis of the purchasing power of intended Romanian customers (Stead and Hastings, 2018).
Organisation could mainly focus on the youths involving students and those who are employed
in nearby workplaces, as Koffee is more preferable for them. To gain competitive advantage,
firm can engage in keeping the price low than their competitors. However, the price should be set
by considering the overall profit, transfer price and added cost of Koffee. It should be determined
on the basis of social and economic condition of people living in Romania.
Promotion: Listed company can promote their product with their standardised methods
of promotion. They can adopt various strategies like sales promotion, advertising on social media
channels like Facebook, Instagram, Twitter etc. Organisation will promote their price in relation
to their competitors and substitute products (Bahl and Chandra, 2018). Apart from this, the
advertising channels needs to be chosen tactically for broadcasting the product to its targeted set
of customers involving youngsters. For this, social media sites are beneficial in terms of
engaging young consumers who are mostly seen active on such networking means.
Place: Organisation will establish their business by undertaking an appropriate place
where raw material, labours are other requisite resources are easily available. Also, another vital
consideration for establishing a store is a proper reach to the customers with an easy
accessibility. Considering this, Nando’s can refer opening its outlet in high street area consisting
of several number of shopping centres, malls, workplaces and universities, etc.
Physical evidence: This is in regard to specify the strategies that can be used for the
purpose of packaging as well as set up the new outlet in the Bucharest city of Romania as a way
of attracting the targeted set of customers. Herein, Nando’s at the time of targeting Romanian
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youths can refer adapting the strategy of green packaging and set up the restaurant in modern
theme. This is also on considering a greater sense of belongingness in the youngster’s towards
protecting the resources, a green packaging can lay a positive impact for the quoted entity, in
their mindset. In addition to this, a modernistic theme will also fetch the interest of youngsters to
a great extent.
Process: It is in context to the procedures that will be adopted by Nando’s to serve its
intended set of customers in Romanian market. In which, they can refer adopting a customer
focused approach with IT supported means for serving the consumers. This will also support
them to target the young people in greater numbers by its own official website or developing a
mobile driven app to directly order the products.
People: This is to discourse upon the staff members who will be employed by Nando’s to
effectively operate into Bucharest. The appointed workers should be enough potential in their
respective operations that could involve sales, managing customer relationship, marketing,
product packaging, delivery of food, etc. They will be responsible to deliver effective services to
the customers in terms of both online and offline facilities.
CBBE MODEL
To effectively compete in challenging market there is a need to build strong, unique and
favourable brand that evokes positive and emotional feelings in the customers. To achieve this,
Keller has developed a Customer-based Brand Equity model which is encompasses the concept
that should be followed by the company for building brand equity. It mainly focuses on the way
customer thinks and feels about company’s products as a way of developing a lifetime
experience with the goods or services delivered to them, by the firm (Pike and Bianchi, 2016).
This model covers following parameters through which the company can build up a Customer
Based Brand Equity model and includes; Brand Salience, Brand Performance and Imagery
Consumer reactions and Customer Brand Resonance.
Nando's can build up a strong brand image in the Romanian market and compete with its
rivalries in Bucharest by focusing on all different components that are being covered under
CBBE model. Company can refer applying this aforementioned model in following ways: Brand Salience: It is an initial stage where product awareness is given a prime
importance with a focus on creating a brand that stands out for others. Nando's can
hereby refer building a brand identity by conducting campaigning on high street of
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Bucharest, where the quoted enterprise is going to launch it new product. Further,
Nando's can refer promoting their product Koffee by Sampling it in the City mall of
Bucharest and people can try it for free (Christodoulides and et.al., 2015). Performance and Imagery: This stage defines how efficiently the product made by the
company will achieve customers’ needs and fulfil their social and psychological
demands. Nando's can hereby refer improvising their brand performance by delivering
quality product and services in the Bucharest outlet. It is thereby on referring to the
delivery of Koffee, it can be served in different flavours, as liked by the consumers in a
customised manner. Further, the listed enterprise can also consider modifying the features
of their other existing products to launch it here with differently designed packaging or
taste to attract greater number of customers. Brand Response: It refers to the judgement or feelings of consumers associated with a
product or service delivered by the company (Beverland, 2018). Nando's should hereby
examine the four categories of judgements that incorporates; Quality, Superiority,
Consideration and Credibility. Further, formulation of strategy to improve actual and
perceived quality of their product is required for a continues upgrading of Nando’s. By
which, the people of Bucharest are expected to show a good response with an evident
increase in the sales of Koffee offered by Nando’s to beat the state of competition in the
beverage sector of Romania.
 Brand Resonance: It is the most crucial stage in brand equity pyramid where this phase
is extremely difficult and desirable for every company. Nando's can refer building a
stronger image for their products through behavioural loyalty which includes regular and
continuous purchase of goods offered by them (Ande and et.al., 2017). It can be done by
creating a strong sense of loyalty in the customers through reinforced connection and
investing on right set of consumers. Secondly, through active engagement, company can
reward their consumers who are regularly visiting the outlet and are depicting daily
customers of Nando’s. This can build up brand loyalty and encourage other customers to
make their purchase. Nando's can do this by offering discounts, coupons and by hosting
events for them.
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Illustration 1: Keller's Brand equity Model.
(Source: Keller brand Equity Pyramid, 2014)
INTEGRATED COMMUNICATION MIX AND METHODS
Integrated marketing communication refers to an approach adopted by company in order
to achieve objectives of marketing campaign, through a well-coordinated promotional method.
They are very crucial in promoting products or services within target consumer market which
will be mostly representing the young aged consumers (Patti and et.al., 2017). IMC help in
launching new product or services through different tools like; advertising, sales promotion, etc.
This approach integrates all the methods of brand promotion to promote a new product or
existing one.
Integrated Marketing Communication uses different tools to reach through prospective
consumer and make them aware about products and services of company. These tools are;
Advertising, Sales Promotion, Public Relations, Personal Selling and Direct Marketing. Nando's
can launch its new product 'Koffee' in Romanian market through Integrated Marketing
Communication tools. IMC model is very important for the growth of the company as it helps in
providing better results, saves cost, create consistency, works on basis of consumer preference.
This will prove to be most effective and help cited company in reaching its target customers in
Bucharest, Romania. Advertising: This is the most common and effective method of communicating about
goods and services to prospective consumers. It is a non-personal and paid form of
marketing (Belch and et. al., 2014). Nando's can advertise their new product 'Koffee'
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through different modes of advertisement. Like for example they can promote their
product on television. This method will be most effective for the consumers as it can
create brand awareness among them. Also, creative advertisement of commodity can
attract more consumers. Sales Promotion: It refers to those marketing activities which gives extra value and
incentives to customers (Bruhn and Schnebelen, 2017). Nando's can attract consumers
from Romania by giving them discounts on purchase made by them or offer a coupon
which can be redeem on next order. Discounts offered by Nando's can attract Bucharest
peoples as it helps in saving their money and getting good quality dishes in low prices.
This tool can be more effective to consumer, if brands are promoted efficiently through
newspaper inserts, banners at the appropriate place etc.
 Direct Marketing: Nando's can use direct marketing approach to promote their new
product 'Koffee'. It will help company to personally communicate with end-users.
Nando's can implement direct marketing through various tools like; promotional letters,
e-mails, distributing catalogues and brochures which directly reaches to target consumers
which are youth and teenagers of Bucharest where firm can open its new restaurant. It
will prove effective as company is new in the market and personal conversation will
attract consumers as it will help in better understanding of customers and also firm can
made changes according to their demands (Pimenova and et.al., 2016).
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Illustration 2: Integrated Marketing Communication
(Source: IMC model, 2018)
MEASUREMENT OF SUCCESS
Business Entities need to be conscious about their financial performance along with its
way of marketing about their product or services. Success is vital to every organisation
irrespective of their size and nature of business. Nando's can measure the success of its new
product in Romanian market through following parameters: Market Share: The increase in market share of the company with advancing time can act
as a measuring criterion for success. Like for example Nando's initially started with one
store in country and with time, it has opened several departments across the region. It can
also be increased by organisation through collaborating with big company.
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 Profitability: Creating sustainable profit can act as a true measure of success for the
company in the future. This may require continuous changes in the strategy by the
organisation or analysing current assessment of procedures and cost to have an
understanding about where firm can bring changes and become more efficient. Sales Target: It can also be a measurement of success, as while starting business
company has set their objectives related to targeted population. If all that is achieved by
them, they can evaluate their growth by this approach. This can be achieved by applying
various sales promotional strategies like discounts, coupons etc. Return on Investment: Success can also be measured by this method as company can
analyse how much cost they have invested and revenue earned is more than that or not.
High ROI can motivate organisation to perform better.
Recommendations:
Nando's can build their market share by keen analysing the needs and demands of
consumers. Product should be designed according to their taste and preferences. Also, they can
remain in business by consistently improving their quality of Koffee. Improvement in technology
like use of social media for promotion can also help them in creating their brand image.
Continuous feedback can also be taken by consumer through emails or by messages so that
organisation can work on their flaws.
CONCLUSION
From the entire report it has been summarised that Nando's can implement adaptation and
standardisation in the marketing mix elements in order to grow their business. Various strategies
can be made by company related to this. Product should be adopted according to the needs and
demands of the consumer. Prices should be set by organisation in accordance to purchasing
power of customers. Further, it includes CBBE model to develop a strong brand based on
consumer.
It includes various approaches in it like brand salience which is related to memory or
awareness about the company. Nando's can build a strong identity through conducting campaign.
Report also consists of importance of integrated communication mix. Different methods like
advertising, sales promotion, digital marketing can be utilised by company in order to improve
their relationship with customers. Study also shows ways of measuring success such as market
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share which can support organisation to understand the impact of business strategies and their
execution on the revenue earned by them.
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REFERENCES
Books and Journals
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intention towards' Green'Products. A Journal of research articles in management science
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McGraw-Hill Education.
Beverland, M., 2018. Brand Management: Co-creating Meaningful Brands. SAGE.
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pp.351-370.
Pike, S. and Bianchi, C., 2016. Destination brand equity for Australia: testing a model of CBBE
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pp.114-134.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Valos, M. J., and et.al., 2016. Exploring the integration of social media within integrated
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Online
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Integrated Marketing Communications. 2018. [Online]. Available Through:
<https://www.techopedia.com/definition/26409/integrated-marketing-communications-
imc>
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