Marketing & Management Assignment in PDF

Running head: MARKETING
Marketing & Management
Name of the Student:
Name of the University:
Author Note:

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Abstract:
The report aims at providing an insight into Pioneer Foods Group one of the prominent fast
moving consumer goods (FMCG) company of South Africa. The company was created as a
result of the merger between two of the packaged food companies of South Africa, Bokomo and
Sasko in the year 1997. Sasko which became known as the ‘Essential Foods’ and Bokomo which
came to be known as ‘Food and Ceres Beverage’ had been consolidated under a single structure
of management and came to be known as the groceries. The international portfolio of the brand
remains a well-established unit that boasted of prolonged standing relationship in key markets
for exports. The operations related to fruit snacking and breakfast cereals were however carried
out in UK. The mission of the company lies in nourishing the lives with well-loved and trusted
brands thereby empowering the families in deriving more from life. The report addressed a wide
range of non-financial and financial information for enabling the stakeholders and consumers in
making informed decisions with regard to the future strategies.
The report commences with an analysis of the marketing mix along with an evaluation of
competitive advantage and differentiation. The report also provides an insight into
commoditization and the overall product as well as the solution offering of the firm. The report
further acknowledges the aspect of segmentation and provides an insight into the service element
of the firm. There is also discussions on the experiential marketing, experience management and
the customer relations. In addition to this, the report also draws attention to the use of the internet
in the marketing, pricing and the cost structure, branding along with an insight to sustainability,
TBL and the stakeholders.

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Table of Contents
Introduction:....................................................................................................................................3
1. The Marketing Mix: The 4’Cs and 4P’s......................................................................................3
2. Differentiation and Competitive Advantage:...............................................................................5
3. Commoditization and Total Product & Solution Offering..........................................................7
4. Segmentation:..............................................................................................................................8
5. Management of the Service Element:..........................................................................................9
6. Experiential Marketing, Customer Relations and Experience Management.............................12
7. Use of Internet in Marketing......................................................................................................13
8. Pricing and Cost Structure:........................................................................................................14
9. Branding:...................................................................................................................................17
10. Sustainability, TBL and Stakeholders.....................................................................................19
Conclusion:....................................................................................................................................21
References:....................................................................................................................................22
Bibliography..................................................................................................................................26

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Introduction:
The objective of the report is to provide an insight into Pioneer Foods Group. The
primary business of the company lay in producing, distributing, marketing and selling of varied
range of beverage, food and the related products with the aim of enabling the consumers in
leading better lives. Some of its competitors includes Premier Foods, Associated British Foods,
Greencore, Pinnacle Foods, Tiger Brands, Snyder's-Lance, Samworth Brothers, 2 Sisters,
Alvarado Street Bakery and Hovis
1. The Marketing Mix: The 4’Cs and 4P’s
The four Cs of marketing includes:
1. Customer Needs and Wants: This refers to understanding the customer needs as well
as their wants (Londhe 2014). Pioneer Foods Group focuses on nourishing the lives of customers
according to their needs with trusted brands categorized under the essential food and groceries
that helped in empowering the families. This has been found to be backed by motivated
employees, excellent management and the world class facilities.
2. Cost: In addition to the price of the product, it also takes into account the time taken
by customers in getting to the location to get the product or the amount spent on gas for reaching
the location (Khan 2014). This also includes benefits of product offered. Pioneer Foods Group
delivers food products that aids the families in leading a healthy life. The firm also puts forward
enhanced means of distribution, marketing and production along with undertaking an export
across 88 countries for providing easier access to products.
3. Convenience: It is a more customer oriented method that focuses on whether the
customers can opt for shopping online or in the stores. Pioneer Foods Group makes it products

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available both through online as well as in the stores. This has enabled it in overcoming the
challenging economic conditions that put pressure on the willingness of consumers in making a
purchase.
4. Communication: Communication requires interaction between the buyer and seller.
Pioneer Foods have always valued transparent as well as open communication with the
customers through advertising, one to one interaction, brand and corporate websites, customer
care centers and the social media platforms.
The four P’s of Marketing include:
1. Product: Pioneer Foods has its products categorized under essential foods and
groceries. The essential foods primarily includes wheat flour, baked goods, rice, pasta, maize
products and dried vegetables under the brand name Sasko, White Star and Spekko. On the other
hand the groceries section includes dried fruit, baking aids, breakfast cereals, salads and meals,
deserts, nuts, base flavor, rusk, snack bar, frozen food and condiments under the brand name
Liquifruit, Weet-Bix, Ceres, Bokomo and Safari (pioneerfoods.co.za 2020).
2. Price: In essential food section, White Star Maize meal has been found to achieve fast
expansion of growth. This enhanced the popularity of the product mix along with its profitability.
The maize mea maintained status quo and had a price that was below leading brand. The product
however aimed towards being perceived as premium thereby targeting the maize meal consumers
who belonged to the lower and the middle class income groups. However, the refined maize
meal had been higher in price and had been considered as premium product. The maize meal
seemed to belong to the price sensitive market with the escalating cost passed on the customers.

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In the groceries section too, there was fierce competition between the cereal and the fruit
juice. The juice category was found to increase by 25 percent in value while the cereal category
rose by 20 percent. The sales volume of Liquifruit rose by over 30 percent while Weet-Bix rose
by 25 percent. Affordability remained the key drivers of growth in cereals with expanding levels
of profit.
3. Place: The product of Pioneer Foods is available in 88 countries across the world.
Besides, they are also available in large and medium retailers along with the metro stores.
Informally, they are also available across Kiosks and spaza shops (pioneerfoods.co.za 2020).
4. Promotion: Pioneer Foods Group carries out advertising via television, magazine,
radio and sales promotion. The firm uses advertising as the key medium to launch any campaign.
For instance, radio seem to have the highest frequency and reach for the target market of White
Star. The firm also undertakes promotion through print media for informing the educated class of
people. The firm also resort to sales promotion where consumers are provided a free sample
against a specific quantity purchased.
2. Differentiation and Competitive Advantage:
The differentiation of the Pioneer Foods lies in its brands, the people and the strategic
initiatives (Brenes, Montoya and Ciravegna 2014). The most prominent essential food brands of
the firm includes Sasko, White Star and Spekko while the grocery brand included LiquiFruit,
Bokomo, Safari, Ceres and Weet Bix. Some of the newer brands of the company includes John
West, Wellington, Mama, Today, Heinz and Big Jack. As far as the people are concerned, they
are not only smart but possess a tendency of winning. The strategic initiatives remains grouped
under the six different pillars which includes (pioneerfoods.co.za 2018):