Marketing Plan for McVitie's Sugar Free Cup Cakes

This assignment provides an in-depth analysis of the marketing mix and plan for McVitie's sugar free cup cakes. It includes a detailed breakdown of the product, price, promotion, and place, as well as a conclusion on the importance of marketing in achieving business success.

MARKETING
ESSENTIALS

INTRODUCTION
Marketing is referred as the management and study of exchanged relationships. It is a
business process of developing strong relations with customers so as to acquire knowledge about
their taste and preferences and fulfil them accordingly. It is considered as an institution in which
activities and processes are done to create, communicate, exchange, deliver valuable services and
products to the customers. McVitie's which operates in UK market engaging in selling snacks
food brand etc. is taken for the purpose of preparing this report. It was introduced in 1830 at
Edinburg, Scotland. This company is owned by United Biscuits and offers products like
chocolate digestives, rich tea, Jaffa cakes, Hobnobs etc. This report will cover key roles and
responsibilities of marketing functions along with their interrelation with other functional units in
an organisation. Apart from this, marketing mix is carried out to acknowledge the performance
of company within market. Here, market mix will be performed in accordance with Mondelez
international which is a leading competitor of McVitie's. At last, a marketing plan is produced so
that company ca attain its aims and objectives in a proper manner.
TASK 1
P1
To attain desired results, manager in every organisation needs to perform different
activities related with marketing and promotions. Marketing department of an organisation
perform various activities and operations so that high revenues can be achieved. Other than this,
marketing function of McVitie's will benefits the company in sustaining their customers base for
long time with the help of promotions and advertisements (Bačík, Štefko and Gburová, 2014).
Different roles and responsibilities of marketing function in context McVitie's are mentioned
below: Maintaining consumer satisfaction: It is the role of marketing function in an
organisation to maintain and enhance satisfaction level of customers towards the products
or services of company. Marketing department in McVitie's is responsible for retaining
customer base of company for a large time. It is the duty of marketing department to
assure that customers are satisfied with the product line offered by company (Blythe and
Martin, 2019). Marketing team in McVitie's retains customers by using social media
tools, surveys, feedbacks etc. This benefits them in acknowledging the issues and
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grievances of customers so that required modifications can be carried out. If marketing
team of McVitie's will not give consideration to the satisfaction of customers, it can
results in low sales and market shares. Conducting market research: Marketing team in McVitie's is responsible for carrying
out market research so that customers can be offered services or products as per their
demand. With the help of market research, manager in McVitie's will be able to
formulate and modify policies as per new market trends. This will allow the firm to
eliminate those procedures and policies which are not beneficial for company. Due to
this, net revenue of an organisation will enhance. If marketing team of McVitie's will not
perform market research then it became difficult for company to fulfil the needs and
demands of customers. Due to this sales and revenue of company can reduce
considerably (Desai, 2013).
 Managing marketing budget: Marketing manager in McVitie's is responsible for
preparing and managing marketing budget of company. This budget will include all the
expenses which will be incurred by marketing team while carrying out market research or
promoting products of company. Marketing function of company will track all the
requirements of customers and changes in marketplace so that an appropriate budget can
be prepared and managed accordingly. If marketing function of company will not manage
budget properly then it will results in ineffective promotions and brand awareness of
products will also reduce. Due to this, sales and profitability can be decreased that will
acts as a barrier for company to achieve higher growth.
Marketing mix: It consists of 7Ps including product, price, place, promotion, people,
physical evidence and process. These elements are essential to consider by the marketing
manager of McVitie's as it help them in updating their existing decisions and plans to tackle the
strategies of their rivals in competitive market. For this, market research is essential to conduct
which provides relevant information about rivals' strategies, customer's needs and preferences
etc.
Responsibilities and roles of marketing department in market environment
 Marketing division in McVitie's is responsible to formulate market strategies that will
allow the company to gain high profits against rivals. By developing market strategies,
company can acquire a strong position in competitive market environment. Market
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strategies will allow McVitie's to adopt different tactics so that company can expand its
customer base in a considerable manner (Lipsman and et. al., 2012). These strategies
will allow the company in promoting and advertising their products in a cost efficient
manner due to which company will achieve high revenues and profit margins. If
marketing team will not prepare market strategies, then company will not be able to gain
competitive advantage over rivals.
 Marketing team in McVitie's is responsible for maintaining image of company within
market so that high sales and profits can be acquired. This role is played by the
marketing manager of company by adopting those policies that can enhance brand
equity of company. This allow McVitie's to create a strong place in the minds of
customers in highly competitive market environment. To enhance image of company,
marketing team carry out promotional and advertisement campaigns so that customers
can get aware about the services and product of company. If marketing team will not
perform measures to enhance brand image of company then customers will shift their
preference towards the products of other organisations.
Role of marketing in B2B in context of McVitie's
In such kind of marketing, the main focus is on products and its features and there is no
emotion includes at the time of purchasing. In this, marketing influences business to buy and
inform the attributes of products to them. McVitie's do not supports personally for B2B as the
producer comes their own self and taking insurance for their products and services in case of any
non- happenings.
Role of marketing in B2C in context of McVitie's.
In such kind of marketing, the main focus is on maximising the satisfaction level of
customers by providing them quality products in which their emotions are included as well.
Here, the marketing also perform an important role regarding selecting distribution channel
which is more convenient to the customers. McVitie's do not pursue buyers directly as buyer
unknowingly purchase from a single seller or may be business entity. McVitie's adopts different
various channel to communicate with consumer and promote its brands.
P2
Marketing division of McVitie's is required to work in a unified and coordinated manner
with other organisational departments. This will allow the company to accomplish their
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objectives and targets in a timely manner. Due to this, company will be able to sustain a strong
presence in competitive market and it will benefits them in improving their profitability in a
desired manner. In respect with McVitie's interrelation between marketing unit and other
divisions of companies which are discussed as under: Marketing and Finance department: In every organisation, finance division is
responsible to arrange and allocate all the funds and record other financial transaction.
Finance department in McVitie's provides capital to other divisions so that organisational
activities can be properly executed in a desired manner. Marketing department of
McVitie's is also given funds by finance department due to which they are able to
conduct market research or perform promotional activities. Whereas marketing team of
McVitie's helps the finance manager in identifying potential sources from which
investment can be collected to formulate budget for company (Joshi, 2012). If these
departments will not work in a collaboration then it will be difficult for finance
department to manage their funds due to which other departments will not get sufficient
funds to perform their activities. Due to this, marketing department will also face
difficulty to perform work in a proper manner. For example, marketing department of
McVitie's forms budget to promote their product which requires support from finance
department to provide them sufficient amount of funds to invest in adoption of an
effective marketing tools such as TV Advertisement etc. Marketing and sales division: Sales department of a company have responsibility to sell
products and service in large quantity so that company can earn high revenues and
profits. Marketing department in McVitie's grabs attention of million of customers
through surveys, feedbacks, advertisements and promotions etc. Beside this, marketing
department collects information about needs of customers and sales department stocks
those product in large quantity to retail stores so that expected revenue can be generated.
If such two divisions did not perform well, then sales team will never get to know about
the needs and demands of customers. Due to this, those products that will not be needed
by customers may be offered to them. This can reduce the sales and profits of McVitie's
in a considerable manner (Mueller, J. P. and et. al., 2015). For example, Marketing
promotes McVitie's's product by hiring celebrities that increases sales of company which
is the main objective of sales department.
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 Marketing and production department: The production division in an organisation is
responsible to manufacture all the products which are offered by the company to their
users. Marketing department takes feedback from customers about the products of
company and acknowledge production department if the goods introduced by them into
market will be acceptable by customers or not. If customers are not satisfied with
products then production manager carry-out required improvements due to which
company can attain stabilised sales (Wirtz, Tuzovic and Kuppelwieser, 2014). If both
departments will not work in a coordinated manner then production department will
produce those products which may not be needed by customers due to which sales of
company will decrease and consumers will shift their preference toward the offerings of
other organisations. For example, marketing department of McVitie's conducts a market
research to identify the customer's needs and preferences and accordingly convey
information to production department to produce demanded product in huge quantity in
order to increases sales and revenue.
TASK 2
P3
Marketing mix is defined as a group of marketing variables which are controlled by an
organisation so that target market can be reached in a desired manner. It is a vital tool that allow
the company to influence customers for their products and services. This tactics will allow
McVitie's to acknowledge their performance and position within marketplace in respect with
their rivals. This will helps them in creating those strategies that will results in accomplishment
of business objectives and goals. Below is mentioned marketing mix of McVitie's in comparison
with Mondelez International:
Basis McVitie's Mondelez International
Product As company operates at global level,
product line of company is wide.
Company prefers to offer good quality
of products to their customers in
genuine prices so that they can achieve
high sales. Product line of company
Company sells their products in five
categories and each of these category
posses a distinctive product line. As
product line of company is very vast,
customers have large varieties to choose
the product the need. Main products
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specialises in Hobnobs, cookies,
penguin, Fig rolls, waffles, cakes,
Jaffa cakes, iced cakes, Krackawheats,
crisps, nibbles, digestives etc. Beside
this, company offers other products
like chocolates, diary items, coffee to
their customers.
offered by company are breakfast cereals,
dairy products, chocolates, baby food, ice
cream, pet food, confectioner, bottled
water etc. company prefers to provide
unique and high quality products that can't
be copied by the rivals (Nicholls and et.
al., 2013).
Price Company charges high for their
products due to their nutritional
content and good quality. Company
uses bundling pricing strategy in
which different products of company
are bundled together and given to
customers at discounted rates.
Products available online are priced
according to their uniqueness due to
which some products are priced high
over other products.
At present company is using competitive
pricing strategy in which rates of products
are fixed after acknowledging the prices
that are offered by rival organisations. For
products which are not offered by
competitors, company use premium
pricing strategy due to their uniqueness
and advanced features. Products which
are sold online are charged high as
compared to products available at retail
outlets because of the delivery charges
and other expenses.
Place Company is a leading biscuit
manufacturer and operates in more
than 120 countries across Asia, Africa,
Europe, Middle East, America.
Products of company are easily
available at both online and offline
stores. In case of offline medium,
products of company are available at
retail stores, groceries and other
outlets. Customers can buy products
of McVitie's mostly at every retail
Company sells its products and services in
different nations with the help of two
marketing channels. First channel is
online platform where products are
directly sold to customers. In second
channel, company sold their products to
wholesalers which sell these products to
retail outlets around globe. Company use
extensive marketing strategy so that their
products can be available at more number
of outlets. Mondelez have both online and
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store (Papasolomou and Melanthiou,
2012).
offline stores where products are easily
available and accessible.
Promotion There are different methods by which
company carried out promotion and
advertisements of their products. One
of them is co-branding in which
products of company are promoted at
different gatherings, events and fest
taking place at regional and national
level. Beside this, company use
traditional and social media such as
magazine, newspapers, TV, Instagram,
Facebook etc. company carry out
above and below the line promotions
in which awareness about services or
product of companies is carried out.
This method allows the company to
advertise about their products in an
efficient manner.
Organisation uses multiple media
channels so that its products can be
promoted in a proper manner. Company
uses traditional media like radio and
television to advertise about themselves.
Beside this, manager of company uses
social and online media such as
Facebook, YouTube, Twitter etc. for
promotions. They undergo personal
selling to increase their presence in
personal stores. To acknowledge their
promotional budget, company uses
percentage of sales method. This benefits
them in performing their promotional
activities in accordance with available
finances.
Process To assure that company offers only
good quality products, company
adopts lean operational process in
which those activities are eliminated
that increases cost of company and
reduces value of product. Company
also have online process in which
products are available with different
offers like discounts, buy one get one
free etc.
Company ensures that their products are
always available and accessible at retail
stores. In this respect, Mondelez
international has installed a system by
which retailers and wholesalers can
acknowledge them when stock and
inventory is low. Company also have an
online delivery process and feedback
process to satisfy customers desirably.
People Company feels that they excel due to Employees of a company are their main
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their staff members. Due to this,
company give high consideration
towards the needs of employees and
nurture them in a proper manner.
Company offers training to their
workforce as per the changing market
needs due to which their efficiency
increase and they prefer to retain
under company for a long time period.
assets. Without their help it is not possible
for an organisation to achieve its expected
results and outcomes. Employees are
given required training sessions so that
they can perform their work without
facing any difficulty. Other than this,
company offers them benefits and
incentives so that they feel motivated in
performing work for company (Pike,
2015).
Physical
evidence
Products of company are packed in a
specific coloured themed packages
which is an evidence for company.
Beside this, website of company and
retail stores offering products of
McVitie's are another physical
evidences of company.
Mondelez international sell their products
in a distinctive coloured packaging which
is easily distinguishable on retail shelves.
Official website of company and retail
stores having their products are main
physical evidence for company.
TASK 3
P4
Appropriate marketing plan is very much essential for organisation before launching or
introducing any new product in the market. As with the help of this plan management of Mc
Vitie's will be able to know that product will be able to attract large number of customer's or not.
Marketing plan generally act as the blueprint of various activities which are to be conducted for
achieving the goals and target. The organisation is planning to launch a new product in the
market which is Mc Vitie's cupcake. The cupcake will be made keeping in mind the health of
customer's. As the cupcake will be sugar free and will not negatively affect the heath of potential
customer's.
Situation
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SWOT Analysis – Swot analysis will be beneficial for Mc Vitie's before making plans
for launching the new product. As with the help of this analysis strength and weakness of new
product can be known and plans can be made for its improvement. SWOT analysis of Mc Vitie's
sugar free cupcake are discussed below-
STRENGTH WEAKNESS
 Major aim of the organisation is to
offer healthy snacks and food products
to its customer's. So keeping this aim in
mind McVites sugar free cupcake will
also maintain the heath of its
customer's.
 There are large number of competitors
which are operating their business in
same kind of industry. So organisation
might face difficulty in establishing its
market for the new product.
OPPORTUNITY THREAT
 Since the organisation is aiming at
launching a new product, so Mc Vities
has wide range of option to attract
customer's from various segments.
 The market environment in this type of
industry is uncertain and involves
various kinds of risk which is one of
the biggest threat for the organisation.
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Pestle Analysis- Political Factors- It is important for McVitie's to evaluate the political factors which
includes government policy, price stability etc. so while launching new product no
barrier will come to hinder their success in market. For example, increase in tax rate on
Mc Vitie's cupcake in UK decreases the sales of company. Economic factor- In UK, the standard of living of people are high due to rapidly growth
in economy. This will bring positive sign to McVitie's who launches is new product as
they can easily receive customers due to their high standard of living. Social Factor- It includes buying behaviour of an individual and society as a whole thus
if these factors are favourable towards McVitie's' s new product then it will bring
profitable outcome to them and vice-versa. Technological Factors- It includes technological advancement which makes easy for an
organisation to promote their brand. McVitie's is launching new product thus marketing
their product using digital technology such as social media platform increases the
chances of achieving huge success in the market. Environmental Factor- McVitie's evaluates the different environmental related laws
which protects the people from any hazard environment. In the context of McVitie’s the
the managers operate online but the chances of affecting from natural environment will
be more. Along with this, external environment factors also affected most by changing
in rules and regulations of government.
 Legal Factors- It is the factors which is essential to consider by McVitie's before
launching its new food product. While introducing new product in UK, McVitie's should
consider various acts to implement such as Food and safety act, 1990 etc.
Objectives- Before launching a new product the management of McVitie's will be
required to set SMART objectives for its new product which is mentioned below-
 Specific- The major aim is to increase and enhance the market share and profitability of
the organisation by 10%.
 Measurable- Current and past year performance of the organisation in the market will be
measured.
 Assignable- For manufacturing and planning strategies for the new product skilled and
talented candidates will be hired. They will be guided by participative leadership style.
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 Realistic- New product will be launched for sustaining in the market for longer period of
time. Focus will also emphasised on increasing the market share and profitability and also
enhancing the satisfaction level of customer's.
 Timely bound- goals and work related to new product will be completed within time
period of 6 months.
Strategy-The strategies and operations for the new product will be made according to the target
market of the product.
Source- SEGMENTATION TARGETING ADN POSITIONING. 2015
Segmentation- In this process potential customer's are divided into different segments
for providing them maximum satisfaction. Mc Vities will segment its new product on
demographic and geographic basis. This means segmentation will be done on the basis of
location and age of the customer's.
Targeting- The major target for Mc Vitie's sugar free cupcakes will be health conscious
and diabetic customer's. This means middle and old age people will be the major target for
McVitie's.
Positioning- The new product will be positioned on various departmental and local stores
in the market, so that product is within the reach of potential customer's. McVitie's sugar free
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Illustration 1: SEGMENTATION TARGETING ADN POSITIONING

cupcake will also be available online so that customer's can buy it according to their
convenience.
Forecast
Cost: Cost for the production of new product is discussed below:
Particulars Amount (€)
Advertisement 110000
Catalogues 90000
Machinery 190000
Raw materials 120000
Sales: McVitie's is thinking to double the numerical number by raising the sales ratio of the
sugar free cup cakes.
Profits: 25% raise in profits is determined by the organization which can be achieved by sugar
free cup cakes in the coming one year.
Market share: 15% of the market share will be captured by McVitie's by launching this mouth
watering sugar free cup cakes in the cut throat competitive world.
Control: Key performance Indicator will be a better tool to adopt by McVitie's in order to
analyse the output coming from different marketing activities. Using such tool, the actual
performance level is compared with desired expectations which makes easy for management to
identify and resolve any barriers that restrict members to perform as per the standards
Budget allocation: The estimated budget is of €700,000 for the development of sugar
free cup cake in the UK market. The budget designed by the McVitie's will aid in performing
various activities like, purchasing of raw material, recruiting employees, advertisements and
purchasing machinery and equipments.
Product: McVitie's new innovative product is sugar free cup cakes. Firm is made
available this cake in various flavours and designs in order to attract potential customers towards
it. The taste of the sugar free cup cakes is quite amazing and mouth watering.
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Promotional: In order to raise customer base for sugar free cup cakes McVitie's is using
social media platforms to advertise their innovate product in the market. By doing so potential
customers can be pulled and profits can be maximized at a large scale. Also, firm decided to
launch it's product on google and other websites for attracting more customers.
Price: McVitie's is using penetration pricing policy in the cut throat competitive market
in order to increase profitability ratio in the competitive world. Sugar free cup cakes in the initial
days will be at low pries in order to bind customers for the product. As and when the demand
will raise the prices will be changed accordingly to generate huge profits so that future growth
can be done in the market place.
Place: In place chosen for promoting the sugar free cup cakes is their on website
platform in the market. The innovative and healthy cup bakes will be available on the local stores
in the market so that customers can easily purchase it to full-fill their demand.
CONCLUSION
It has been clearly seen and observed from the above report that marketing department
plays a vital role in success of a company. Without marketing and concerned activities, it is not
possible for an organisation to conduct market research and manage budget for advertisement
purposes. Marketing function of a company works in a coordinated manner with other
organisational department so that work can be performed in a cost efficient manner. Marketing
mix of an organisation allows it to acknowledge their position in market against competitors.
Marketing mix is carried out in context with Mondelez international due to which actual
performance of McVitie's is acknowledge. Marketing plan allows organisations to formulate
effective strategies so that high revenues and market shares can be earned along with
achievement of objectives.
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REFERENCES
Books and Journals
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