Saucy Sauces: Report on Market Analysis and Customer Relationships

This report is divided into two parts, the first part focuses on the market and consumer analysis for a new product development process, specifically for 'Saucy Sauces'. It reflects on the decision-making process, including market and target customer analysis, operational strategy, design, and control, as well as delivery and brand communication. The second part explores the benefits of building long-term customer relationships, analyzing the strategies used by Hasbro, a toy and game manufacturer. It examines the advantages for both the company and its customers, discussing strategies to integrate marketing and operational functions for effective customer relationship management. The report highlights the importance of market research, quality assurance, and the development of strategies to achieve business goals.

Introduction to
Operationalizing and
Communicating Value

TABLE OF CONTENTS
PART A ..........................................................................................................................................1
INTRODUCTION......................................................................................................................1
REFLECTION ...........................................................................................................................1
CONCLUSION ..........................................................................................................................4
REFERENCES ...........................................................................................................................5
PART B ...........................................................................................................................................6
INTRODUCTION.......................................................................................................................6
Benefits of building long term customer relationships ..............................................................6
Marketing and operational strategies for managing customer relationships ..............................8
Different aspects in integrating marketing and operations for building customer relationships
.....................................................................................................................................................9
CONCLUSION ........................................................................................................................10
REFERENCES .........................................................................................................................12

PART A
INTRODUCTION
The market and consumer analysis for a new product development process is a
challenging and requires great analytical skills (Schlegelmilch, 2016). While making the
presentation for Saucy sauces we made variety of decisions on achieving development and sales
related goals for the product. This report section will highlight the analysis and knowledge used
for preparing presentation and the learnings which were developed during the process.
REFLECTION
To demonstrate the product concept of Saucy sauces involved number of decisions for
evaluating several factors such as target customers, product branding, designing and operational
aspects as well as future development of the product. The strategic decisions made at each of the
level taught me to explore different marketing factors. The learnings and difficulties involved
during decision making at every stage of the project is as follows:
Decision 1: Market and target customer analysis
While making decision for the product our first approach was to analyse that what is the
existing sales analysis of sauce so that we can develop an understanding of scope of our product.
When we analysed the statistics then, we realise that our product can easily find its consumer
base. Myself as a consumer of sauce have knowledge that this product can be launched in
various market segment. On this basis we used various factors such as accessibility,
differentiability, actionable and measurable criteria like percentage of people who can buy
product for segmenting market (Wheelen and et.al., 2017).
For analysing the existing competitors of the market we used perceptual map and porter's
five force model. I believe perceptual map was effective tool because it gave us clear idea that
against whom we are competing. The five force model helps us to analyse that its not only profit
factor which we have to compare instead we have to include factors such as health, authenticity
and Asian variety. Though initially I was not very much convinced about the need to include
stakeholder power analysis but other members believes that it is necessary to evaluate their
power so that effectiveness of the operational aspects can be analysed.
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Decision 2: Operational strategy
To have proper understanding of operational aspects like volume, variety or visibility our
direct approach was to use 4V's of operation. I believe that frozen sauce attribute of our product
opens up scope for our success. However, to conduct an initial analysis we compare our
performance with other organisations such as Marks & Spencer and Prima Taste through polar
diagram. It was difficult to make comparison of our product with such well known organisations.
A lot of qualitative and quantitative research was conducted to give final implementation to polar
graph.
By analysis of other organisations we learnt that we can categorise our product attributes
into categories such as health, convenience and variety. In future we can use this analysis into
our segmentation process. Like in regions in which health is prime feature we can promote and
increase our sales on the basis of quality. In operational strategy we also included operational
capabilities (Uhl and Gollenia, 2016). However, I believe that in this aspect we lack the risk
analysis. If there are technical or managerial errors than how our operations will be affected
could have made the presentation more appealing.
Decision 3: Design and control
I believe that the designing approaches described and included in presentation are
effective enough. They clearly demonstrate the characteristics of volume and variety. However,
it felt challenging for us to verify it with some statistical data. The use of statistical data could
have created more influence on consumers. In designing process we also followed approaches to
minimise operational cost along with the aim of optimizing profit. For this purpose we analysed
different types of business industries and the demand forecasting procedures followed by them.
With the 80/30 rule of product matrix we were able to classify our products.
The products used by us were from different category which have diverse processing
methods but it created difficulty for us to analyse the every aspect such as packaging, labelling
and process techniques for each of the product. To make better evaluation of Saucy sauces I
think variety of sauces must be compare in terms of packaging and processing. The control
strategies discussed in the presentation are less effective (Wheelen and et.al., 2017). They just
give a brief introduction of such techniques instead the comparative analysis of such methods is
required and can be addressed in the future.
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Decision 4: Delivery, brand and product communication
In defining brand promotion and analysis of 4C's all group members were agreed
however for packaging context I believe that some aspects are left untouched in the discussion.
For instance we provided rationale for choosing glass jar as the effective approach but I think
quality analysis was also required for this purpose. Our main aspect for selecting glass jar was to
ensure the quality. However, we did not consider the control and quality measurement area
which monitor the glass jar. It is also possible that jars are not cleaned and there may be
difficulties in handling these jars. They require due care so that they do not break. At this aspect
we lack our creativity and analytical skills (Gensler and et.al., 2015). We could have made more
research on other alternatives for packaging.
The comparison of glass jar with other materials such as metal and plastic can also be
good choice but price, management and availability factors can differentiate the choice. In the
analysis of supply demand network it was easy for us to identify the potential sources however
we left the pros and cons of each aspect and how the variations can affect overall performance.
So I believe this decision was not made efficiently and needs more work and improvement. s
Decision 5: Future development
The SWOT analysis used by us was good for creating base for our evaluation however I
think PESTLE analysis was required. For improving the scope and opportunities of development
it was required that we have included analysis of these external environment factors (Ferguson,
Lau and Phau, 2016). I assume that quality is the key factors for the growth and thus I emphasis
on evaluating strategies for improving operational priorities. This decision could have delivered
some significant conclusion on future of the Saucy sauces but impact of these improvement
factors was not analysed by us. We discussed their significance but the addition of their impact
on product and services can make the presentation more effective and helpful.
Thus, I have learned that the effectiveness of marketing decisions is based upon the depth of
market research and the control measures for assuring the quality of services. The comparison
skills and development of strategies for achieving the goals helps us to evaluate both positive and
negative aspect of the situation.
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CONCLUSION
I can conclude that this presentation and task gave me a great opportunity to analyse the
complex process of developing consumer relationship through different aspects of marketing and
operational activities. I have learned that business organisations make huge efforts to explore
their services to large target audience and it requires detailed understanding of the marketing
strategies and marketing environment
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REFERENCES
Books and Journals
Ferguson, G., Lau, K.C. and Phau, I., 2016. Brand personality as a direct cause of brand
extension success: does self-monitoring matter?. Journal of Consumer Marketing. 33(5).
pp.343-353.
Gensler, S., Völckner, F., and et.al., 2015. Listen to your customers: Insights into brand image
using online consumer-generated product reviews. International Journal of Electronic
Commerce. 20(1). pp.112-141.
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In Global
Marketing Strategy(pp. 63-82). Springer, Cham.
Uhl, A. and Gollenia, L.A. eds., 2016. Business transformation management methodology.
Routledge.
Wheelen, T.L., Hunger, J.D., and et.al., 2017. Strategic management and business policy.
Pearson.
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PART B
INTRODUCTION
Customer retention is the key factor for the long term growth objectives of the business
organisations. If business organisations are not able to influence their purchase decisions by
effective marketing and operational activities then success of the companies can be considered as
uncertain (Peppers and Rogers, 2016). This section of report will evaluate the benefits of long
term relations with consumers for organisation as well as for customers. It will analyse the
strategies chosen by Hasbro for building effective and qualitative relations with their target
audience.
Hasbro is one of the most successful and the largest manufacturer of toys and board
games. The huge success of this organisation is the result of its established customer base in
different regions of world. The document will also discuss the integration strategies used by
Hasbro to overcome challenges and barriers between marketing and operational functions so that
they can be integrated to manage customer relations.
Benefits of building long term customer relationships
The strategy to develop persisting consumer relations in business activities is beneficial
for both Hasbro and for its targeted consumer groups. These benefits can be analysed by
following considerations.
Benefits for Hasbro:
With the help of long term customer relations the brand value of Hasbro is increased. It
motivates and give message to new consumers as well that the prime goal of organisation is the
benefits of consumers and due to its efficient services consumers prefer the same company for
long (Nyadzayo and Khajehzadeh, 2016). Hence, due to mouth publicity from prolong customers
it becomes easy for the new emerging target audience to make purchasing decisions in favour of
Hasbro. Stable relations with customers enables organisation to limit their marketing approach
because the mouth referrals creates significant impact on other customers. These long term
relations also helps Hasbro to understand the needs of people so that they can innovate their
services as per the market and consumer needs. The needs of customers in Asian regions are
different from the customers in western countries. With long term relations it becomes very easy
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to distinguish and identify these diversified needs by interacting with customers (The benefits of
building long term business relationships, 2017).
The good relations with customers make it easy for both organisation and consumers to
easily interact with each other and thus to exchanges the ideas which can improve services of
Hasbro. It helps organisation to create more dominating presence in market as compare to other
toy manufacturing companies. The long term business relations with customers also give rise to
new business opportunities for the organisation.
For instance if Hasbro plans to diversify its products or market then it becomes very easy
for the organisation to plan for it because consumers and other suppliers are already well aware
with the quality services of organisation. Thus, they do not find it difficult to trust Hasbro for
even new products. The consumer relationships make organisation trustworthy and increases
customer loyalty towards the brand. It also plays crucial role in creating new growth
opportunities for business expansion and growth.
Benefits to customers of Hasbro:
The good relations with business groups are also necessary for the customers. When
Hasbro has long lasting relations then consumers are not considered as the revenue generating
assets instead they are considered as the valuable part of the organisation. The product
development strategies are based especially by keeping their requirements in mind instead of just
focusing on profit. It provides high quality products to customers and thus they have less worry
regarding quality of services (Ritter and Geersbro, 2018). Hasbro also uses schemes such as
customer loyalty programs and price and delivery related benefits to long term customers. Thus,
such customers also get a chance to seek such rewards.
During work load when there is great demand of the products in such situation the
organisation always gives first priority to their long lasting customers so that their relations are
not affected adversely. Thus, customer relation management strategies helps consumers to ensure
quality services at reasonable price and in short period. It is also analysed that Hasbro gives
respect and value to the opinion and feedbacks of consumers who are connected with company
from long. Their issues are resolved as priority and with more dedication (Nyadzayo and
Khajehzadeh, 2016).
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Marketing and operational strategies for managing customer relationships
Hasbro's marketing strategies and quality of operational activities plays an important part
in managing effective and persistent relations with the customers of organisation. The target
audience is not bothered with the internal mechanism of operations followed by the organisation.
The only concern for people is the quality of product and the information of product which is
reached to them through marketing. Hasbro can bring various improvements in both of these
functional areas so that customer loyalty can be increase and business relations can be sustained
for the long run.
Marketing role:
The consumers can make Hasbro as their first priority while considering toys only if their
needs are satisfied and there is an effective two way communication between organisation and
people. The organisation must conduct a detailed and thorough market research to analyse and
decide the suitable factors for price, advertisement strategies and product specifications (Pearson,
2016). Before making any decisions people always compare these factors with other competitors
of Hasbro so that they can choose only best. If Hasbro will not use any promotion events such as
discounts, social media interaction with customers then it will not take much time for people to
forget name of Hasbro and choose other companies.
Thus, there will be no long term connection between both the parties. To improve the
relations with the customers, organisation can use various marketing strategies such as discounts,
interaction and feedback reviews from customers, loyalty awards, advertisements and business
expansion to huge geographical region. For instance if organisation is always in news for its
achievements and quality services then it makes it consumers proud that they are using services
of Hasbro. It motivates them to follow the same for long term as well. Thus marketing strategies
must be effectively implemented so that customer management can be accomplished effectively
(Peppers and Rogers, 2016)s.
Operational role:
The operational activities of Hasbro must be in alignment with the marketing operations.
This alignment is the basis for consumer loyalty which in turn is the primary element of lifelong
consumer relationships. In order to convince the customers for making purchase various product
specifications, quality standards, prices, product specifications and availability and after sale
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services format is described to people. If operational team of Hasbro fails to follow or maintain
alignment with marketing then there is a difference between services delivered and promised to
customers.
Hence, consumer feels that they are cheated and they never trust organisation. In such
cases it is impossible that customers show interest to build business connections with Hasbro. To
avoid such situation there must be coordination and alignment between both of these
departments. The ultimate parameter which acts as the driving force is the quality of services. If
the outputs of operational team meets the needs and expected quality of products then it becomes
obvious and easy to manage their clients (Siu, 2016). Once the customers are fully convinced
with the quality and serve good relations then even the ineffective advertising can secure their
participation in organisation. However, for building new customers marketing must demonstrate
and inform the operational aspects of organisation so that people can know organisation.
Different aspects in integrating marketing and operations for building customer
relationships
The integration between operational functions and marketing approaches is essential for
consumer relation management. Though both of these functional units of Hasbro works
independently but both of these units are dependent to each other. Marketing team of Hasbro
cannot promote any product before analysing its operational aspects. The availability, pricing
and timing can be controlled by operational team only.
If marketing team will not follow this then, surely organisation will fail to make it
trustworthy in front of customers. Similarly, the quality performance of operational team of
Hasbro is also necessary for the ensuring that marketing goals are achieved. The strategic
direction to guide operations such as what needs must be fulfilled by products and what
resources are available within organisation are provided by marketing team to operational
department (Pearson, 2016). This balance between both the departments encourages the
customer retention and long term relations with Hasbro.
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Challenges in integration:
It is not simple for Hasbro to develop coordination between both marketing strategies and
operational aspects. There may be team conflicts and lack of coordination between members of
these functional units. It is required that Hasbro must use cross cultural training so that both of
these different functional sections work as a single team for achieving the goals of customer
retention and relationship. The team leaders can also use motivation techniques and informal
events so that they can interact with each other and can make efforts to achieve goals irrespective
of their personal differences (Rodriguez, Peterson and Ajjan, 2015).
Another possible challenge for Hasbro is that there are instances in which there is no
agreement between both of these departments on certain business aspects. For instance if
influential consumers make pressure on marketing team to develop a customized product but if it
not possible for operational team then this conflict can lead to dissatisfaction among consumers
and indirectly their relation will be affected.
Disadvantages of building customer relations:
Apart from several benefits of relation management there are certain negative impact as
well. When Hasbro gives more priority to consumers with long term business relations then it is
possible that new emerging customers can be treated as the less prior commodity. This may
affect the future growth perspective of the organisation. It takes long time and great efforts to
build a relation with customers however it is also possible that considering this relation
consumers may demand services which are beyond profitability goals of Hasbro. In such cases
the relation can deteriorate and can cause harm to brand value of organisation very significantly
due to bad mouth publicity by that consumer (14 Pros and Cons of Relationship Marketing,
2016). Hasbro must develop suitable strategies to ensure that profits and emerging consumers
are not compromised due to these relations.
CONCLUSION
From the above discussion it can be concluded that if business groups establish a proper
coordination between their marketing and operational functions then they can easily retain their
customers for long term. Consumer relations is one of the effective tool for assuring the success
despite changing marketing scenario and competition from new emerging markets. This section
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