Effective Marketing Strategies for a Smoothie and Juice Company

A company is launching a new product, and the marketing strategy involves modifying designs every six months to make them interesting and engaging. The products will be available at various retail stores, and the company has been selected as the official smoothie and juice provider for the 2012 Summer Olympic Games for promotional purposes. In terms of marketing to businesses, the focus is on business-to-business (B2B) sales with high volume transactions, while business-to-consumer (B2C) marketing aims to transform shoppers into buyers through direct marketing campaigns. The assignment also discusses international market differences from domestic markets, highlighting the importance of competition, barriers, and cultural differences.

MARKETING PRINCIPLE

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Elements of Marketing Process........................................................................................1
1.2 Benefits and Cost of Marketing Orientation....................................................................2
TASK 2......................................................................................................................................3
2.1 Macro and Micro Environmental Factors........................................................................3
2.2 Segmentation Criteria.......................................................................................................5
2.3 Targeting Strategy............................................................................................................6
2.4 Buyer Behaviour..............................................................................................................7
2.5 Repositioning of Perfetto Juice........................................................................................7
TASK 3......................................................................................................................................8
3.1 Sustaining competitive advantage....................................................................................8
3.2 Distribution channel in promoting customer convenience...............................................9
3.3 Role of pricing strategy in achieving organization objectives.........................................9
3.4 Promotional activities helps in achieving marketing objectives....................................10
3.5 Understanding extended marketing mix........................................................................10
TASK 4....................................................................................................................................11
4.1 Marketing mix for two different market segments........................................................11
4.2 Marketing products to business......................................................................................11
4.3 International market differing from domestic market....................................................11
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

LIST OF FIGURES
Figure 1: Elements of Marketing Process..................................................................................2
Figure 2: Macro and Micro Environmental Factors...................................................................4
Figure 3: Segmentation Criteria.................................................................................................6
Figure 4: Target Market for Perfetto..........................................................................................7
Figure 5: Distribution Channel of Perfetto.................................................................................9
INDEX OF TABLE
Table 1: Segmentation................................................................................................................5

INTRODUCTION
Marketing principle can be refer to fundamental of promotion strategy and advertising
so that awareness of company can be spread. Further, it helps in developing marketing tactics
through which market segmentation and targeting can be done in desired manner. Beside this,
company is also able to determine the effectual components of marketing mix (product,
place, price and promotion) so that overall sales volume can be increased. Through this,
business enterprise is able to attain the business objectives and also gains high competency.
In this context, present report is prepared that aids in gaining deep insight of the
marketing principles. For this purpose, Perfetto Juice Company is taken into account which is
one of the prominent name in the field of fruit juice producing industry. In this report,
discussions have been made on concepts of marketing, STP (segmentation, targeting and
positioning), marketing mix and related.
TASK 1
1.1 Elements of Marketing Process
Marketing process can be refer to an approach of assessing the needs and wants of the
customers and addressing the same so that overall efficiency of the company can be
increased. In this, suggestions are taken from customers and same is analysed in order to
develop required products and services (Akaka, Vargo and Lusch, 2013). Considering this,
following are the elements of marketing process that can be taken into account by Perfetto:
o Analysis of Marketing Environment: It is required to assess the external environment
in order to identify the influence of political, economic, social and technological
factors on the company. For this purpose, cited company can incorporate PESTLE
analysis that certainly briefs about key external factors. Further, SWOT analysis can
be incorporate to assess the capabilities of the organisation (Armelini and Villanueva,
2011).
o Marketing Strategy: Once, environment is assessed then marketing strategy needs to
be developed in order to identify the segment and target markets. In this regard,
Perfetto need to conduct segmentation, targeting and positioning so that effectual
advertising can be done.
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Figure 1: Elements of Marketing Process
(Source: Self Attempted)
o Marketing Tactics: This incorporates setting up the marketing mix that includes
developing appropriate product, determining place of distribution, setting price and
conducting promotion. With the help of it, company is able to attract the target
customers (Bruno and et.al., 2013).
o Monitoring and Control: Once the strategy and tactics are developed, it is required to
monitor and control the same by the cited firm so that desired results can be attained
through it. In this context, company can review the response rate of promotion and
number of feedback for monitoring (Gunsel, 2012).
1.2 Benefits and Cost of Marketing Orientation
Marketing orientation can be referred to a practice of offering products and services
as per the needs and wants of the customers. Considering the case of Perfetto, it practices this
approach in order to meet with the varied needs and wants of the customers. From this,
company is able to witness high amount of benefits in varied terms (Henley, Raffin, and
Caemmerer, 2011). Through this, cited company is able to boost its competitive advantage as
there are no company that dealing in healthy and not-from-concentrate fruit juice. By
fulfilling the actual need, company is able to grow from three to 350 employee and turnover
of around £200 million. Another benefit of this practice is high customer satisfaction as
company is able to offer juice with improved quality (Bradley, 2005). Also, marketing
orientation supported the organization in taking care of customers by receiving feedback and
adopting change as per it. This further resulted into high customer loyalty and profitability
which supported in company in expanding its operational base as well.
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Analysis of
Marketing
Environment
Marketing
Strategy
Marketing
Tactics
Monitoring
and Control

However, there are certain costs associated to marketing orientation that can affect the
efficiency of the company. It needs to incur huge cost on gaining feedback from customer
and analyse the same (Czinkota and Ronkainen, 2012). Also, it consumes efforts of
identifying what is the actual needs of the customers and ways in which same can be met.
Beside this, time is also consumed in this and therefore it also aids in the cost. Considering
this, it can be state that company gains more benefits than that of the cost associated to
marketing orientation. Through this, company is able to boost its competency in short span of
time.
TASK 2
2.1 Macro and Micro Environmental Factors
Company has to assess its macro and micro environmental factors so that they can
able to take corrective measures with regards to factor that affects its operation. Following
are the factors micro environmental factors of Perfetto Juice:
 Customers: Customers of juice processing company wants to taste new flavour
overtime and it is very challenging task for the aforesaid company (Ferrell, 2012). In
this, company meets this expectation up to ceria extent but it can develop new flavour
by mixing two or more ingredients.
 Competitors: There are huge competitors in the beverage industry and the company
has to face rivalry from it. There are two set of competitors i.e. direct (Tropicana,
Innocent, Refresco Gerber etc.) and indirect (PepsiCo, Coke, Monster, Red Bull etc.).
It needs to develop new products on regular basis in order to boost its competency and
to develop distinct image (Graham, 2008)
 Employees: Perfetto offers sound working environment and variety of motivational
factors that essentially lead to job satisfaction. It offers fair remuneration and paid
vacation to employees in order to boost its morale.
 Suppliers: Company has sound contact with farmers of different nation that aids in
delivering quality fruits on regular basis. It also offers platform to farmer from which
their earning opportunities gets improved (Gupta, 2009).
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Figure 2: Macro and Micro Environmental Factors
(Source: Karlsruhe, Freiburg, Berlin, 2012)
Apart from it, following are the influences of macro environmental factors to Perfetto:
 Political and Legal Factors: Company has to meet the legal standard of quality and
hygiene in order to run it business successfully. Also, it has to meet the standard of
health and safety at workplace to ensure healthy working environment. Further,
usability in political setting affects the operation of the company (Kotler, 2009).
 Economic: Due to low economic growth and decline per capita income, cited firm is
not able to gain full attention from its target market. This results into low increment in
the sales volume globally. Also, change in exchange rate affects its profit margin
slightly (Lamb and et. Al., 2008).
 Social: Further, company meets with the needs and wants of the customers of health
and nutritional fruit juice. With this, company is able to attract more of customers on
its side. It also focuses on taste of different customers and develops product
accordingly.
 Technology: The Company has incorporated latent technology in its operation from
which it is able to meet with the global demand of juices with just 350 employees
(Karlsruhe, Freiburg, Berlin, 2012).
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 Environment: Mentioned Company is highly focused on the aspects of sustainability
and for the same, it has incorporated varied efforts as well. It uses green electricity at
fruit towers and also uses recyclable packaging.
2.2 Segmentation Criteria
It is required to segment the market by the company so that whole market can be
divided into small segment and hence most likely set of sample can be targeted. In this
regard, there are varied segmentation criteria namely demographic, psychographic,
behavioural and geographic (Breton and Martín, 2011). Since, Perfetto deals with smoothie
and juices, it can segment the market based on demographic and psychographic factors.
Under demographic, age and income class can be used for segmentation in which following
market segment can be developed:
Table 1: Segmentation
Age Income Class
1. Up to 18 years Low
2. 18 to 40 years Middle
3. 40 to 60 years High
4. Above 60 years
Apart from it, psychographic can be used for dividing markets into activities,
personality & values and attitude. Activities refer to one who buys juice at particular moment
only for example at the day of tripping or picnic, personality and values depict the customer
that buys product by seeing brand name (Chua and Banerjee, 2013). Last is attitude that
includes individual that is health conscious and one who drinks juices on regular basis. These
segmentations are been done so that Perfetto can able to develop the target market for
different market. This will help them in developing sound target base from which overall
sales of the company gets increased.
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Figure 3: Segmentation Criteria
(Source: Self Attempted)
2.3 Targeting Strategy
It is required to determine the target market out of above determined target markets so
that company can able to undertake appropriate steps. In this regard, company will majorly
focuses on each of the age group that been developed above (Craig and Campbell, 2012).
However, only middle and high end class customers will be focused as they are the one that
buys juices on regular basis. In addition to it, customers that lie in the quadrant of activities
and attitudes under psychographic segment will be used as target market. This is so because
these sets of customers will buy products on regular basis from which sales of cited products
gets increased (Czinkota and Ronkainen, 2012). In addition to it, company will develop
sound marketing strategies so that they can be attracted towards it.
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DEMOGRAPHIC
AGE
Up to 18 years
18 to 40 years
40 to 60 years
Above 60 years
INCOME CLASS
Low
Middle
High
PSYCHOGRAPHIC
Activities
Personality & Values
Attitude

Figure 4: Target Market for Perfetto
(Source: Self Attempted)
2.4 Buyer Behaviour
Buyer behaviour refers to a systematic process that been follow by customer at the
time of making purchase of varied products. However, buyer behaviour varies from situation
to situation. At the time of making online purchase, customer hesitate as he/she is not sure
about the quality of the goods, return policy and no physical touch with sellers (Richter,
2012) Due to this, he/she ask for advice to friends or family member who previously made
online purchase. Further, is one is buying expensive goods such as car, flat, house,
computers, mobile or other related then he asks to varied individual so that better option can
be purchased. If one is buying for business purpose, then he/she will ask for quotation and
discussion will be done to choose best alternative (Rippin, 2007). Similarly, in the case of
Perfetto juice, customers will buy product from word of mouth and TV advertisement.
Therefore, it is required by Perfetto to focus on this aspects so that more of customer buys
this product.
2.5 Repositioning of Perfetto Juice
It is required that the firm must reposition its juices so that above stated target market
can buy the same and hence sales volume gets increased. In this regard, juice will be
positioned as healthy and nutritional drinks along with great taste so that each set of
customers will buys the same (Rosenbloom and Dimitrova, 2011). In this regard, advertising
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Age
Up to 18 years
18 to 40 years
40 to 60 years
Above 60 years
Psychographic
Activities
Attitude
Income Class
Middle
High

will be done which will depict that doctors are giving advice to drink Perfetto juice or
smoothies for good health and disease free life. Also, it will reflect as drink that increases the
immunity of individual irrespective of age group. Moreover, display at POP (Point of
Purchase) at chemist and convenient stores will help in boosting its sales. This practice is
incorporated by Coke and same found effective in boosting its sale (Adjorlolo, Terrero and
Ganung, 2010). Hence, these practice within the context of Perfetto will help in gaining high
amount of attention from target markets.
TASK 3
3.1 Sustaining competitive advantage
Competitive advantage is something which given the company an edge over its
competitors in terms of anything. Perfetto Juice has also developed some competitive
advantages within its business. It has been done to see loyalty in the eyes of the customers.
Following are the advantages company is having:
 Designing of package – The amusing drink labels and packaging has become the
most effective branding weapon for the company. The package designs are refreshed
about every six months and the workforce shows great commitment in making the
labels interesting and engaging for the customers (Andrew, 2011). It is a great
competitive advantage for the business because usually it is not practiced by other
firms
 Donation – Perfetto donates 10% of profits to charity that is mainly to its foundation
which supports charities functioning all across the world. It is a value for the needy
ones. This kind of donation or charity increases the company’s reputation within the
society which is very valuable for the products and services (Armelini and
Villanueva, 2011). Hence this act as a competitive advantage for the Perfetto.
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3.2 Distribution channel in promoting customer convenience
Figure 5: Distribution Channel of Perfetto
(Source: Bruno and et.al., 2013)
Distribution channel plays an important role within the business. Perfetto is having its
products available in 15 different nations. In this situation the distribution channel for the
organization is needed to be strong and effective. The above figure shows the distribution
channel for the products of company. It is required to adopt an effective supply chain
management strategy so that products can be reached to the consumers in safe manner
(Gunsel, 2012). The distribution costs is required to be kept low but that should not be
compromised with the quality of the products. They are to be distributed in a manner that that
customers can get easy availability and consumption. Repo of the business is also build by
the product’s availability and if they are not available on time, then it can be a dissatisfying
situation for the consumers (Henley, Raffin, and Caemmerer, 2011). In this way the channel
is to be strong and long lasting.
3.3 Role of pricing strategy in achieving organization objectives
Recession is a very difficult time period for every business industry. This is a time
where company is required to show high level of concentration and focus. Under this
situation the pricing of the products plays a crucial role. The prices are to be set according to
the prevailing conditions within the market (Bradley, 2005). Perfetto is following a policy of
penetration pricing. Under this kind of pricing, company relatively sets low prices for its
products in order to increase the market share and sales. It is following the approach of
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quality products at low prices. With such kind of price it will be able to attract large number
of customers for a very long period of time. It will also contribute towards developing a loyal
customer base. It is suggested that this strategy seems to be appropriate for the condition of
recession. This is because at the time of recession, customers generally looks for low prices
products at high quality (Karlsruhe, Freiburg, Berlin, 2012).
3.4 Promotional activities helps in achieving marketing objectives
Different types of promotional activities can be integrated by Perfetto to achieve its
marketing objectives:
 Advertisements – It is the most common form of promotion of products. The
advertisements can be displayed on TV, newspapers, radio, hoardings, etc. These
form of advertisements are very useful in attracting people in large numbers.
 Sales promotion – It is another method of promotion under which Perfetto can offer
different types of schemes and offers along with the smoothies (Craig and Campbell,
2012). For example discount or schemes like buy one get one can be offered for the
masses.
 Internet marketing - It is the latest sensation within the industry. The gods are being
promoted on different types of online platforms. For instance social media marketing
is highly effective in promotion of products.
3.5 Understanding extended marketing mix
Following are the extended marketing mix elements which can be used by Perfetto:
 People – It talks about the employees within the company. Marketing is incomplete
without the efforts of manpower. These people are responsible for framing the
business strategies which takes the business to higher level (Rippin, 2007).
 Process – It is regarded as the method through which the goods are reached to the
consumers. The operational procedure used are to be effective and result oriented.
Efficiency should be reflected in all the processes so that goods can be marketed in
better manner.
 Physical evidence – It is about price, packaging, labelling, size, shape and colour of
the goods which are to be endorsed. People are highly influenced by the items which
looks attractive and amazing in appearance. These things act as the motivational
factors for the customers to buy the goods (Rosenbloom and Dimitrova, 2011).
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TASK 4
4.1 Marketing mix for two different market segments
The marketing mix for the smoothies of Perfetto will be as follows:
 Price – the price for the product is kept very competitive on the basis of penetration
pricing strategy. The smoothies is affordable by people of all income groups specially
the middle income class people.
 Product – The creative packaging and amusing drink labels have become company’s
main branding weapon. The designs are modified after every six months and efforts
are made to make the labels interesting and engaging.
 Place – the products will be available at all the supermarkets, hypermarkets,
departmental stores, convenience stores etc. (Craig and Campbell, 2012)
 Promotion – For the purpose of promotion, company has been selected as the official
smoothie and juice provider for the 2012 Summer Olympic Games.
4.2 Marketing products to business
Business to business Business to consumers
 It is related with performing business
with other companies
 The sales and purchase volume is high
in case of B2B business.
 The number of buyers are very less
 Direct marketing can be used to
generate the demand, loyalty etc
 It is related with marketing the products
directly to the consumers
 The main objective here is to transform
the shopper into buyers
 The time period of transactions is small
 The marketing campaigns are designed
to gain the interest of the customers
4.3 International market differing from domestic market
Basis International Marketing Domestic Marketing
1. Meaning The flow of goods and services
takes place across the boundaries
of the nations
Here the business events take
place within the country
2. Competition Extreme level of competition is
there
Low level of competition
3. Barriers There are many barriers related Domestic rules and regulations
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to tariffs, cultural differences,
etc.
CONCLUSION
From the above study it can be concluded that marketing is a difficult process for an
organization. It needs great level of concentration and focus. The marketers are required to
design effective and innovative marketing approaches which can influence the minds of the
customers.
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