Marketing Management

This document provides a comprehensive study material on Marketing Management. It includes a PESTEL analysis, marketing strategies, revenue forecast, and future budgeting. The content covers various aspects of marketing management and provides solutions to assignments, essays, and dissertations. Find all the necessary information and study material on Desklib.

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MARKETING MANAGEMENT

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Table of Contents
PESTEL Analysis............................................................................................................................2
Political Factors............................................................................................................................2
Economic Factors.........................................................................................................................2
Marketing strategies.........................................................................................................................3
Product.........................................................................................................................................3
Price.............................................................................................................................................3
Place.............................................................................................................................................5
Promotion.....................................................................................................................................5
Service Proposition......................................................................................................................6
Revenue Forecast.............................................................................................................................6
Future Budgeting.............................................................................................................................7
References........................................................................................................................................8

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PESTEL Analysis
Political Factors
It includes all the factors which are related to the policy of the government as well as
administrative practices that influence the business. In Singapore the higher rate of tax, which is
for the turnover of more than $320000 the tax rate is 22%, influence the wine industry (Murniati
& Mus, 2019).
Turnover Tax Rate
On first $20,000 0%
Next 10,000 2%
Next 10,000 3.5%
Next 40,000 7%
Next 40,000 11.5%
Above 3,20,000 22%
The policy made by the government of Singapore, which was mainly for the wine industry that is
for the excise tax, GST of 7% is applied to the goods, which are imported (Phijaisanit & Myles,
2019).
Economic Factors
The factors which are not in direct relation with the company but impact the investment
value of the companies in future. The increases in the population of Singapore that is in the year
2018, it was 5.64 million, which affect the wine industry in positive manner because of raise in
the demand (Statista, 2018).

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Population of Singapore
Source: (Statista, 2018)
The interest rate was also stable, that is in 2019 it is 1.66% (Aldayel & Fragouli, 2018).
In the year the revenue generated in the segment of wine is Revenue in the Wine
segment amounts to $704million.
Marketing strategies
Product
Sula Wines manufacture as well as sell the 5 diverse special types of wine. The wines are
red, white, dessert, rose as well as sparkling. However, the packagings of the wines are
exceptional. The company provides quality products to the customers that is Red wine in which
it contains Sula cabernet shiraz 395 and Madera red 250 (Singh & Srivastava, 2018). The
company can expand the business in the red wine in Singapore; because according to the survey
the consumption rate of wine in the 2017 was increased by 22% in Singapore and 10.5% of the
population prefer red wine (Puligundla, Pyun, & Mok, 2018).
Price
Sula wine can adopt the strategy of premium pricing because Sula wine is considered well-
branded wine in the marketplace of the countries. According to the survey in 2018, 23.79% of
the consumers in Singapore consume 1-3 drinks in a week (Statista, 2019).

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Alcohol consumption of Singaporean consumers
Source: (Statista, 2019)
From the survey, the Singaporean consumer expenditure was recorded up to 32.390 USD
billion in the year 2019. The results also find that, that majority of the Singaporean people can
pay up to $312in the red wine (Sriyalatha & Torii, 2019). However, for the low income group
company can keep the price of $65.30 in Singapore.
Consumption Expenditure

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Source: (Sriyalatha & Torii, 2019)
Place
It considered the location, where the company can sell the products. However, Sula
Wines can sell their products in all the five star hotels of Singapore, Wine shops as well as
restaurants. The company can also target mainly to the youngster as well as business class people
because according to the survey in Singapore the restaurants generate revenue up to $366 million
in the year 2019 as well as consumer expenditure is also higher that is 32.390 USD billion in
2019 (Yang, Ling, Tan, Østbye, Earnest, & Seong Ng, 2019).
Promotion
Sula wines for promoting the products in Singapore can adopt the strategy of organizing
the Sula fest for launching the new product and can provide sample to the consumers. The
company can also make use of the social media like Facebook, Youtube as well as can use the
feature of Instagram stories for promoting the products. However, it is because 70% of
Singaporean population is on Facebook, 71% is on the YouTube and 44% of the population is
active on Instagram (Statista , 2017).

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Leading social networks in Singapore
Source: (Statista , 2017)
Service Proposition
Sula wine can create the value by communicating the customers and making them aware
about the distinctive product. The company can use the tagline, which helps in providing the
information about the product to the target consumer. However, Sula wine can adopt this tagline
that “We make efforts in producing the organic well- branded product, which provide greater
value to the customers”. The unique tagline helps the company service.
Revenue Forecast
It refers to calculating the money, which received by Sula Wine in the specific period. It
helps the company in demonstrating about all the activities of sales, through which company can
formulate the decisions for maximizing the profits in the competitive environment (Cremades,
2016). The revenue forecast of Sula Wine can be done by focusing on all the sales activities as
well as the expenditure of the company in the respective years.

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Sula wines total sale cost in the 1st year can be $128,220 and in 3rd year it could be
$175,000. The total operating expenses in the 1st year $269, 920, in 2nd year it can be $294,540
and in the 3rd year could be $318,240. In future the profit before interest and tax in the 3rd year
might be $26,760.However, the Net profit of the company can be $16,981 in the third year. The
Net profit in the future year can be 3.38% in the 1st year, 3.27% in the 2nd year and 3.27% in 3rd
year.
Future Budgeting
The future budgeting for Sula Wines regarding the promoting of products includes all the
expenditure in making the distinctive product as well as also making aware the target consumers
about the product (Murniati & Mus, 2019). Sula Wines objective is to advertise highly for the
introduction of the news service as well as increasing the awareness among the customers.

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However, for this company can choose the option of digital marketing, which includes marketing
the products by using the internet, cell phones etc. The cost of this marketing are:-
Year Cost
2019 $7,000
2020 $10,000
2021 $13,000
2022 $20,000
The other expenditure includes cost on advertising on YouTube which cost according to
the viewers that is $0.10- $0.30 in the year 2018 (Woo, 2019). The cost for advertising on the
Facebook in Singapore is based on the rivalry with the other advertisers however; it could range
starting from $0.09% to $2 (Ng & Wang, 2019). The company expenditure for promoting the
products on Instagram cost could arrive $3.00 for each click. The other cost like research and
development can lead up to 3.7562% in the year 2019, 2020. Instagram is considered the best
platform for advertising and making aware the consumer about the product by using the feature
of Instagram stories.
References

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Aldayel, M., & Fragouli, E. (2018). Risk management and performance: a case study of credit
risk management in commercial banks. The Business & Management Review , 10 (1),
169-183.
Cremades, A. (2016). The Art of Startup Fundraising: Pitching Investors, Negotiating the Deal,
and Everything Else Entrepreneurs Need to Know. Hoboken: John Wiley & Sons.
Murniati, S., & Mus, A. R. (2019). Effect of Investment Decisions, Financing Decisions and
Dividend Policy on Profitability and Value of The Firm. International Journal of
Accounting & Finance in Asia Pasific (IJAFAP) , 2 (1).
Ng, C. S., & Wang, E. T. (2019). Impact of Social Media Management Styles on Willingness to
Be a Fan: A Transaction Cost Economics Perspective. Pacific Asia Journal of the
Association for Information Systems , 11 (2).
Phijaisanit, E., & Myles, G. (2019). Regimes for Taxing Goods and Services in a Non-
Uniformity Setting: Policy Implications for the ASEAN Economic Community.
SOUTHEAST ASIAN JOURNAL OF ECONOMICS , 123-146.
Puligundla, P., Pyun, Y.-R., & Mok, C. (2018). Pulsed electric field (PEF) technology for
microbial inactivation in low-alcohol red wine. Food science and biotechnology , 27 (6),
1691-1696.
Singh, S., & Srivastava, P. (2018). Sula wines: a foray into uncharted territory. South Asian
Journal of Business and Management Cases , 7 (1), 11-20.
Sriyalatha, M. A., & Torii, H. (2019). Impact of Fiscal Policy on Economic Growth: A
Comparison between Singapore and Sri Lanka. Kelaniya Journal of Management , 8 (1).
Statista . (2017). Retrieved 9 13, 2019, from Social network user penetration in Singapore from
2017 to 2023.
Statista. (2018). Retrieved 9 13, 2019, from Singapore: Total population from 2014 to 2024 (in
million inhabitants): https://www.statista.com/statistics/378558/total-population-of-
singapore/

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Statista. (2019). Retrieved 9 13, 2019, from Alcoholic Drinks:
https://www.statista.com/outlook/10000000/124/alcoholic-drinks/singapore
Woo, B. K. (2019). Facebook Advertising for Disseminating Early Psychosis Education to the
Chinese-Speaking General Public. Health equity , 3 (1), 19-21.
Yang, Y., Ling, M. L., Tan, S. B., Østbye, T., Earnest, A., & Seong Ng, H. (2019). The burden
of methicillin-resistant staphylococcus aureus infections among hospitalised patients in
singapore. Gestão e Sociedade , 13 (34).