Business Principles in Marketing and Operations

This assignment delves into the application of fundamental business principles within marketing and operational contexts. Students are expected to examine various marketing concepts such as the marketing mix, product development, distribution channels, and promotional strategies. Furthermore, the analysis extends to operational aspects, encompassing elements like efficiency, quality control, and supply chain management. The assignment encourages critical thinking by requiring students to apply these principles to real-world case studies and scenarios.

Marketing principles

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1 ..............................................................................................................................................1
1.1 The various elements of the marketing process ...................................................................1
1.2 The benefits and costs of a marketing orientation for Aimia................................................3
Task 2 ..............................................................................................................................................4
2.1 The macro and micro environmental factors which influence marketing decisions ............4
2.2 Proposal for segmentation criteria to be used for products in different markets .................4
2.3 Targeting strategy for a selected product .............................................................................5
2.4 Demonstration on how buyer behaviour affects marketing activities in different buying
situations.....................................................................................................................................5
2.5 Proposal for new positioning ..............................................................................................6
3.1 Explanation on how products are developed to sustain competitive advantage .................6
3.2 Explanation on how distribution is arranged to provide customer convenience..................7
3.3 Explaining how prices are set to reflect an organization’s objectives and market conditions
.....................................................................................................................................................8
3.4 Illustrating how promotional activity is integrated to achieve marketing objectives ..........8
3.5 Analysis on the additional elements of the extended marketing mix ...................................9
Task 4.............................................................................................................................................10
4.1, 4.2 ......................................................................................................................................10
4.3 Needs of marketing Mix......................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: Marketing concept. ...................................................................................................2
Illustration 2: Product development.................................................................................................7
Illustration 3: Distribution channels.................................................................................................7
Illustration 4: Promotion strategies..................................................................................................9

INTRODUCTION
Marketing principles are the essential part of the company as it includes the marketing
strategies which are utilized for improving the market performance and to launch new product/
operation into existing or new market place. For implementing the new product various ideas,
procedures and techniques are used and applied (Freel, 2013). Every organisation have different
marketing strategy and principles in order to launch their new product. Marketing principles
involves various elements like marketing mix, pestle, swot analysis, micro and macro elements
in order to achieve the success and objective of the company. Current report carries various
issues and areas of marketing principles which are illustrated in reference to Aimia Foods Ltd.
Aimia Foods is manufacturer of beverages and foods which is a UK based company. It's a part of
Cott Corporation which is an international Beverage specialist. Company is expended over
225000sq ft. having turnover of 80 m dollar with staff more than 320. the company was found
by Gray and Ian Unsworth in the year 1981. In the beginning the company started with the dry
product like coffee, hot chocolate, soups and tea after which company started focus on the wet
production line and produced cordials and syrups by the year 1984. In 2014, company was
purchased by the Cott Corporation which is the global leader of soft drinks. Company has
decided to launch a new breakfast cereal product which needs the marketing principles of
company. Moreover, report covers various aspects for the marketing principles which are
required for being competitive and market growth of the product. The name of the new cereal
product is CoHe (Zarrabi and et.al., 2017).
Task 1
1.1 The various elements of the marketing process
In order to launch the new product of Aimia food company needs to make the market
research which can showcase the market demand and message which must be portrayed by them.
This will help them to create healthy market while launching their new product (Dale and
Becker, 2014). Furthermore, market research helps in collecting data which are customer based
and will support during analysing of action and process. The part of report contains details of
marketing process made by Aimia0 food. Starting with the marketing concept which is used by
company in order to analyse the demands of consumer and then making decision in that field
rather than focusing on competition (Thrasher, 2017). It involves five main parts which provides
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the better opportunity to company to sell their new product in market. These are production,
Product, selling, marketing and society marketing concept.
Sources: Moscardo and et.al., 2013
 Production: The new product launched must be affordable to the consumers and must
have large production so maximum consumer can purchase. It's must be more operational
oriented. The quality of new cereals must be good and nutritious. Moreover, it should be
available to most of the groceries in UK.
 Pricing: Consumer buy the product which ensures price with quality in competitive
market. Aimia must set the pricing of its new product according to the quality and
customer's budget. It must be economical assessable and affordable.
 Selling: Moreover, Aimia food Ltd. must promote their new product through various
channels. Along with this various marketing elements must be identified in order to sell
the product.
 Marketing: Company needs to focus the customer, market and delivering the product
having better value than other competitor. For this purpose company must use the pull
strategy through which company needs to focus on the branding that product so that
customer's preferences changes and they prefer the Aimia brand. Company must focus on
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Illustration 1: Marketing concept.

all the ages with holistic approach. Company must have TTL activities for promotion of
their product ( Goldsmith and et.al., 2016).
 Societal marketing concept: through this the main focus must be on demands/ needs of
market and company must deliver the product with better values than competitors. Also,
supporting the society with the new launch can be beneficial to the company.
Along with this objective of company to earn profit and interest of their shareholders. In
Aimia, company needs to focus on objectives such as economic, social, human, National and
international objectives. This are required for the profit earning, societal beneficial, fulfilment of
human and national objectives by keeping them in mind and to expand the global business
relationship.
1.2 The benefits and costs of a marketing orientation for Aimia
Marketing orientation are required by the organization to pinpoint and meets the
demand/needs of customer without their suggestions. In order to sell the new cereal product of
the company needs to be sales and product orientated. Company should act as the coordination
between the customers and marketers. Benefits along with cost must be considered by the
company so better impact on marketing and profitability can be made. It provides various
benefits like long term loyalty of customer as they will get new product from the company.
Market orientation can be helpful for extensive research to launch new products and can be
further utilize for other upcoming new products. Customers needs to be served by best possible
ways through the new cereal breakfast. Moreover, they need to focus on the competitors and
competition which are already established (Becker, 2014). This creates disadvantage for the
company as lot of money and time is wasted in advertising and promoting the new product. But
if advertising is successful then customer's will prefer the Aimia product which will grow the
brand and business values. Market research can help in solving the problems effectively and
efficiently in terms of cost investment. Further support from the technology can make reduction
in the prices.
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Task 2
2.1 The macro and micro environmental factors which influence marketing decisions
Micro and Macro are the two elements which affect internal decision of the company. In
this micro directly affects the organization decision while macro affects the manager decision.
Macro Environment factors includes:
 Demographic forces: The product made by Aimia should be preferred by most of the
people. In UK, people like to have more diet supplement and healthy product which
provide the nutrients and other dietary fibre to the person.
 Economic Forces: the company needs to focus on the interest rates, taxation polices,
economic growth and change in the economic factors which can affect the price of the
product and can affect the company growth ( Graham, 2014).
 Political Factors: there are various laws which are made up by the UK government which
needs to be followed by any industry. Moreover, taxation policies and political stability
affects the organization. However, company is having less political pressure.
 Social Factors: For this factor the main consideration must be taken about the religion,
family and society. As company is having good societal image so it would benefit the
company. Also, company organizes various function which benefits the society.
 Technological factors: In producing the new product company has installed the latest
technology which maintains the accurate temperature, pressure and quality of the
product. Furthermore, it supports more production in a single day.
In terms of micro factors main role is played by the customer, distributors, employees,
competitors, investors, Media and suppliers. For producing the cereal product the customer must
be targeted properly. Aimia food Ltd. has the supportive stakeholders and shareholders which
supports the organisation at every point. Furthermore the company is being supported by the
media for the advertisement of the new cereal product which is making positive impact on the
company.
2.2 Proposal for segmentation criteria to be used for products in different markets
Product segmentation is required for the grouping the product in effective and efficient
ways. For the current company the segmentation must be based on the customer preference and
income segments. This helps to measure the potential business areas where the development can
be made. Segmentation is done in order to reduce the time, save money and resources. As per the
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demographic condition of the country, the cereals having more dietary and nutrients are more
preferred. The country also believes in the class and quality of the product so including those
elements in the cereals which can with stand the society of the country. As people are becoming
more lazy so instant ready breakfast can be served to them. This will reduce their time, money
and provide the nutrients ( Brouwer and Guijt, 2013). Moreover, the size of the product can be
based on the family and for the individual. Along with this more flavours and additional things
can be launched so that customers have variety in choosing the product. Marketing segmentation
further involves the geographic, behaviours and psychology segmentation which needs closer
attention to launch the new product. Location, choice , preference and reach to the potential
customer can be done by marketing segmentation.
2.3 Targeting strategy for a selected product
Targeting strategies are used for the identify the ways by which company can reach the
customers to sell their product and services. Promotion of the product using the TTL approach
can be effective way by which company can use to promote the product. The nutritions, fibres
and various other details which favours the product features must be shown in the advertisement.
Targeting strategies of the company should be based on the taste, preference, benefits of the
company and in consideration of customer. In UK the product can be reached to the customers
through the grocery shops, retail markets and other retails shops. Moreover, company can start
their own local stores which could provide the sells of new cereal product. The customers can be
largely targeted in the malls, retail shops, cafes, restaurants and many other local shops which
provides the breakfast to the customers. Customer centric can be used in order to reach the
maximum consumers. Moreover, the product can be made available on the online shopping
centres and with home delivery option so maximum customer's can be reached. For this customer
must be made aware about the product which can be done through large promotion by the
famous personalities like sports person which can show the features of the eating this cereals in
breakfast. At last, customer and market response can help in understanding the product
profitability ( Barnett, 2015).
2.4 Demonstration on how buyer behaviour affects marketing activities in different buying
situations
The buying behaviour of the customer are based on the mental and emotional levels of
the customers. Such decision are necessary for making the strategies which for the customer can
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be more influenced. For this the sales strategies and promotion strategies needs to be made
strong. When people start seeing the advertisement more and more they try to prefer those
product. Also, the company is famous for their previous product which can help them to
influence the buyers. For the current companies buyers can be any local grocery store or it can be
directly related to the customers. For the beginning of the sales company should launch varieties
in their new product, with different price range. This will help the consumer to chose the product
according to their needs. Moreover, the healthy features can be shown to the customers in the
advertisement and promotion which will also influence the customers ( Dale, and Becker, 2014).
The customers must be detailed about the benefits which the cereals will provide after eating it in
breakfast. Moreover, the possible combination of the product with the other product can also
increase the taste of the product. In some promotional activities company should let some
customer eat the product any should take their review which can be shown as advertisement.
Social media and society can also be used to influence people for preferring the company's new
product.
2.5 Proposal for new positioning
It's the crucial part for the food and beverage company. The location which are well
established like the famous stores, restaurants, malls, online store, local store can be used to sell
the product. Small stores are best in UK to sell the product like cereals which can reach to
maximum number of consumers. For this only the delivery system of company needs to be
maintained. Opening the new stores can be expensive and costly so using the well established
place can be helpful in selling the product. Moreover, customer's must be aware about the stores
and location where product are available.
3.1 Explanation on how products are developed to sustain competitive advantage
The main aim of Aimia food is to satisfy the needs of consumers for that cited firm is
continuously trying to develop its existing food products and services so that it can sustain in the
market for longer duration and can gain competitive advantage. Product development is
insubstantial beneficial for the organization. For that Aimia food can do market research first and
can gather needs of the consumers (Vista, and Chong, 2014). The product development process
involves idea screening, testing, business analysis, beta testing, technical implementation and
commercialization. This process will help cited firm in developing the product and services of
the entity.
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Illustration 2: Product development
Sources: Wiese, and et.al., 2015
Furthermore, Aimia food can also adopt strategy of cost leadership, this is effective tool
that can help the cited firm in keeping strong control over the market. By this way company will
be able to maintain the quality of food as per the standards. Keeping low cost will give benefit to
the cited firm and it will be able to attract more people towards the brand.
3.2 Explanation on how distribution is arranged to provide customer convenience
Distribution is essential function that can contribute well in making business successful.
If company does not have proper distribution channel then it will not be able to providing food
products to the consumers on time.
Zero level distribution
Aimia food uses the zero level distribution channel in which
it sells its products directly to end users. As it manufactures products and distribute it directly to
the consumers. Thus, by this way entity gets huge benefit because in this cited firm needs not to
give commission to the mediators (Brodell and Helms, 2014). In zero distribution Aimia uses e-
commerce technique and sells the food products through website. That helps the entity in
communicating well with the mass audience.
Illustration 3: Distribution channels
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Source: Swink and Song, 2007.
Exclusive distribution
Apart from this, Aimia also take support of one level distribution in which it involves
retailers to sell its products to end users. Its flagship stores offer quality food with attractive
discounts offers. But due to involvement of transportation pricing, commission in this channel,
consumers have to pay high prices.
3.3 Explaining how prices are set to reflect an organization’s objectives and market conditions
Price is the major factor that can influence the consumer's mind. Objective of the Aimia
is to enhance its sales revenues and develop its brand image. Aimia food currently follows
penetration pricing methods that helps the entity in attracting more people towards the brand.
Penetration is the strategy in which cited firm keep low price to its food products and once
people start liking it, firm increases prices.
In addition, when economic condition of the nation get changed then Aimia food change
it's pricing strategy and adopts economy prices. It helps the entity in sustaining in the market for
longer duration. In this quality of the product are comparatively low and cited firm also decrease
rates of the services so that people can afford it easily.
3.4 Illustrating how promotional activity is integrated to achieve marketing objectives
Aimia has created good image in the mind of consumers, in order to promote its brand
well cited firm adopts several strategy so that it can meet with its marketing objectives. Aimia
spends good amount in the marketing activities and takes support of social media marketing in
order to promote its brand well (Carter, Stetter, and Stetter, 2014). It takes support of Facebook,
Twitter etc. because people use these social networking sites frequently. Apart from this it also
uses newspaper, TV advertisements to make people aware with the brand. By this way cited firm
will be able to accomplish its marketing goal of increasing sales revenues.
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Illustration 4: Promotion strategies
Sources: Brodell and Helms, 2014
Sales promotion is another promotional strategy in which Aimia can sell its food products
easily. It is the strategy through which cited firm gather mass audience and can make them aware
with the brand. It will fulfil the marketing objective of the entity.
3.5 Analysis on the additional elements of the extended marketing mix
There are three additional elements of marketing mix apart from product, place,
promotion and price. These are described as below: People: Aimia take cares of its employees and provide them positive workplace
environment. It hires skilled people in the organization so that it can meet with the
expectation of consumers. It provides them training, rewards in order to motivate them
and to improve their efficiency so hat they can perform their work effectively. Process: Aimia follows systematic process which involves offering, service delivery and
service consumption. It works in such manner so that it can meet with the marketing
objective.
 Physical evidence: It involves infrastructure, facilities, service delivery etc. Physical
appearance of the stores are very good that create positive image in the mind of
consumers. Retail stores are nice, safe, healthy that attracts more people towards the
brand.
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Task 4
4.1, 4.2
Consumer B2C Business B2B
Product To be directly sold to the customer Provided to the restro, hotels, stores
which provide the breakfast.
Place Malls, local grocery shops,
retailers.
Hotels, restaurant and other local
stores which provide breakfast.
Price Pricing strategies is totally based on
the customer preference
If they purchase directly from the
manufacturing place the price can be
reduced and other benefits can be
provided.
Promotion Local market, advertisement and
posters
Banners in malls and other video on
the social media.
People Local people People from other country and locals
Physical evidence Good and have positive image Will depend how the product has been
used.
Process Systematic process Structural process.
4.3 Needs of marketing Mix
Marketing mix is required in order to understand the market so that there is no difficulties
while launching the product (Carter, Stetter, and Stetter, 2014). This are used to understand the
competitors easily and to what level the need of strategies are to be made so that maximum
customer can be reached. Moreover this provides better opportunities to understand the market
and make effective sales growth. Through this customer's can be easily understand and product
launching can be easily organized. Furthermore, the company can easily understand the
resources requirement and manpower needed.
CONCLUSION
Marketing principles related to marketing of new product of the Aimia Food limited
which is the UK based food and grocery manufacturing company. The strategies are used in
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effective ways which can help to reach maximum customers. The management of the company
and various ways by which company can launch their product to consumer and other business
are being evaluated and discussed. Furthermore, marketing mix is done for launching the new
product. Companies ethical and cultural ways will support the company in successful selling of
the product.
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