Role of Data in Relationship Marketing for Gatorade Company
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This report evaluates the role of data in improving relationship marketing for Gatorade Company and how it improves customer expectations and service level. It also discusses the concepts of segmentation, targeting, and positioning specific to the new smart watch product.
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 Your report should include a comprehensive evaluation of the role of data in improving relationship marketing within your chosen business. You must also evaluate how the role of data improves the target customer’s expectations and level of service provided..............3 TASK2.............................................................................................................................................6 The concepts of segmentation, targeting and positioning specific to a product or service....6 TASK 3............................................................................................................................................8 You are required to create a rationale for innovation in a new product and/or service design for your chosen product/service in meeting the needs of customers in line with your chosen organisation’s strategy................................................................................................8 TASK 4............................................................................................................................................9 Choose a specific target group within the framework of your chosen business and create viable solutions that would appropriately those specific target customers’ needs.................9 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13 Books and Journal................................................................................................................13
INTRODUCTION Sales and marketing are two important functions in an organisation as the whole profit of the organisation is depended on these two departments. Sales in simple words means increasing the potential customers that are ready to purchase the company's product basically it means selling of more and more goods. Sales is incomplete without marketing as it is the marketing function that makes aware people about the product and service and attract them to buy the product or avail the service(Agrawal and Sareen, 2016). Marketing is a broader term and includes sales in it. There are many methods that are used by companies to attract more and more customers and to satisfy the needs of customers it is important to know and understand their needs and wants as they are the one who will improve the sale of the organisation. The organisation to grow and achieve success it is important to perform both of the functions hand in hand as they lead to success of the organisation. The report will focus on an American Company naming Gatorade which has its operations in around 80 countries and the make sports-themed beverage and food products, built around its signature line of sports drinks. For success of the company it is essential to find out the potential customers and then fulfilling their needs and wants and it is also important to build a image of its products in the minds of its customers so segmentation. Targeting and positioning strategy of the company is used. A research is to be conducted for making a rationale of new product that ismatchingthestrategiesof company.The strategiesandtechniquesthatattractthe customers are also mentioned in the report. Also an evaluation of the importance of data in improving the customer relationship in part of this report. TASK 1 Your report should include a comprehensive evaluation of the role of data in improving relationship marketing within your chosen business. You must also evaluate how the role of data improves the target customer’s expectations and level of service provided. Relationship marketing is a way to build loyal relationship with the customers. Marketing is a way to promote the products of the brand by devising effective strategies in order to maintain competitive edge. The company focuses on building relationship through effective marketing which enhance the growth prospects of the company. The company focuses on buildinglongertermcustomerengagementratherthanbuildingshorttermcustomer relationship(Borchardt, Souza and Viegas,2018). Data is factor which is important to be analysed by the research and development department to ensure that it will be used for the
marketing purpose wisely. Organisation use data to analyse the trends and preferences of the customer to make sure that they purchase the product of the company. In context with the chosen organisation, the company is launching a smart watch after evaluating its needs in the current scenario. The company also analyses the latest technology that will reduce their operational cost and will maximize their profit. Data also helps in developing effective ways to serve the customers in a better way(Cometto and Labadie, 2017). Relationship marketing is a technique used by the Gatorade Company to attract the youth generation who will get attracted towards the new launch of product. There are many benefits of using data for relationship marketing which is explained below: Identify the customer requirements:Data is a way to get an insight of the customer needs. The company uses the relationship marketing as a way to understand the customer experiences and disappointment of the customers regarding the product of the brand. Customers are dynamic in nature and to understand their needs and want is not an easy task. It requires experience personnel for understanding their preferences. The company uses data to know the reason for negative feedback of the customer which will ensure that their needs and wants are satisfied in an efficient way. Also, the company focuses on maintaining their effective ways to ensure that the purchase the product immediately. Helpsinunderstandingtherequirements:TheCompanyusesthedatain understandingand evaluatingthe preferenceson theirresources. Thecompany analyses the trends and plan a budget for the product development. The aim of the company is to launch the product in minimum operating cost with enhanced customer base. The customers plan to purchase the product by analysing the features of the productsprecisely.Thecompanytriestoattackthesocialnetworkingofthe customers to get their data regarding their preferences. The relationship marketing helps in promoting the products and functions of the company across the globe. As the company work at a global level, so they have diversified customer’s base(Cont and Schaanning, 2017). For understanding the needs of diversified customers they need effective tools to develop the survey and analyse them effectively. For the collection of data following process is required to be followed by the company which are explained below: Including a catchy title:The Company must provide a catchy title to the data to ensure that the customers get full knowledge of the product and its features. This will promote the product of the company and ensure that the customers make an
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immediate purchase. Also, the company aims at building competitive advantage by selling the product effectively. Analysing the data:The Company analyses the data collected to ensure product development. Also, the company tries to implement various tools to analyse the data and research workforce. The workforce will analyse the data and uses it to make improvement in the current offerings of the product. The company always try to those tools that will minimise their marketing cost and maximise their profit ratio. The company focuses on identifying the features that can be eliminated from the product to maintain their effectiveness. Storing the data:The Company stores the data in their secured system. Their system is effective and maintains the privacy of the data to ensure integrity. The company tries to install the software which safeguards the customer data from misusing(Devanur, Peres and Sivan, 2019). The customer data must be used effectivelybythecompanytoenhancetheircustomerbase.Thecompany classifies the data into different storage system. It will enhance their skills of managing the data efficiently. If the data gets lost, then it will tarnish the image of the company and affects the promotional technique of the company. Use of data:The data is used by the company for improving the performance of the company. Also, the company focuses on building their brand recognition and try to enhance the awareness of the product through effective relationship marketing. The company focuses on maintaining their competitive advantage by devising the strategies for promoting the products. In context with the chosen organisation, the company tries to gain the customer data regarding the usage of smart watch by the customers. The company also targets the customers who are using the smart watches of other brands to influence the customers for switching towards their brand. The company tries to utilise the effective strategies in order to maintain their customer base(Dewenter, Heimeshoff and Thomas, 2016). The relationship marketing is a concept in which data develops a base for the company to achieve their objectives. The data collected will be used for evaluating the customer preferences and to know what the expectations of the customers from the brand are. Then the company tries to collaborate the customers’ expectations with the objectives of the company to maintain effectiveness. The goal of the company is to build the trust of the customers over their brand so that they will not switch the brand. In context with the chosen organisation, they devise the strategies that will be able to maintain the competitive edge of
the company. The company focuses on enhancing their smart watch market share to capture a leading position in the competitive market. The company aims at analysing the purchasing habits of their customer(Fensel, Akbar and Gruber, 2020). This will help them in targeting the customers which will help them in achieving the organisational objectives effectively. The current working environment of the company affects the market share and their operations. The workforce must work effectively to protect the data of the customer and use them effectively to enhance their customer base. TASK2 The concepts of segmentation, targeting and positioning specific to a product or service. Gatorade Company deals in making sports drinks and products. So the company is now taken an innovation and has m manufactured a Smart Watch that will show the requirement of energy drink to the person wearing it. The new products are always required to compete in this competitive market. STP of the product Segmentation:It is the process of dividing the population into groups. These groups are decided according to needs and wants of people. Homogeneous people are categorised in one group. It is a process which makes it easy for the company to manufacture the goods and services according to preference of customer an then serving them to those who really like them. This increases the chances of the manufactured good and increases the sales of the company.Gatorade Company as it is launching new products needs to segment the market and then fulfil their needs and wants accordingly. They are making a smart watch so it is important to divide the whole population into small group that are in needs of the product. The market is vast and to carter their needs and wants it is the companies task to segment the customers(Guidolin,Guseo and Mortarino, 2019). The way to segment should also be appropriate to carter the preferences of customer and to satisfy them. There are basis on which the company can segment the customers and some of them are discussed below: Demographic segmentation-This is most commonly way used by companies to segment their population. The points that came under demographic segmentation are age, gender, population, family income etc. As the people of same demographic profile normally have same needs and wants and usually prefer same products. In relation to Gatorade company they have segmented the population on the basis of age as the people from age group 18 to 60 years are more conscious about their health and
use these gadgets, so the company is manufacturing the product by keeping in mind the peopl3e of age 18 to 60 years and their motivation towards energy drinks and their health. If seen in case of income the people of middle and high are basically targeted as they will like to spend money on the gadgets that will help them to focus on their health. The pricing policy is also decided by having focus on the income group and variants are4 given so that it can be used by the targeted groups. Psycho graphic segmentation: Under this the customer are divided into small groups on the basis of beliefs, value of the customers. The group that share same type of lifestyle normally have same preferences(Jha, Deitz and Royne Stafford, 2019). The values that they share impact the buying behaviour of the customer and will boost the sale of the company. In context of Gatorade Company it has launched a smart watch that is focusing on the people that carry a hygienic and healthy kind of lifestyle. It is vital for an organisation to group its customers and then serve them that increase the chances of more sales. This factor also includes interest the people who like to use gadgets and like to wear smart watch will be attracted towards the product. Geographic segmentation: This includes differentiation the customers according to the places where they live. They are grouped on the basis of geographical location like city, country and region. The Gatorade company is present is 80 countries so they need to understand the needs and wants of people living at different places and serve them accordingly. They can change the design and shape and language shown according to the region they are serving in. This will attract the customers more and create a good image of company in minds of customers which will boost the sale of the product. Targeting:It is the next step in the process of STP under which the company has to decide the segment that it will serve. It is important to target the right customers and then fulfil their needs and wants. The group is analysed and all their demands are also understood to provide them with what they want. The marketing takes place and now the strategies and promotional acclivities are done to make the customers aware about the product launched and also to make them aware about it(Khasawneh and Dasouqi, 2017). In this step the customers come to know about the new product that is launched by the company. The potential customers are attracted by using the available resources to carter their needs and wants. Positioning: it is the third stage and the final one as it is the time to make a image of the product in the mind of customers. Positioning should be done appropriately was the image once created cannot be changed easily and the companies that reposition its product and
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services are normally not preferred by customers. In case of Gatorade company they hav3e made a innovation and made a smart watch that will be used by people that are concerned about their health and the company is in line of making juices and drinks that are for energy so the image created is of gadget that will help people to remain healthy. It is important to make people think well about the product and satisfying them will increases the image of company and will boost the sales(Kolassa, 2016).This is the method of STP that is to be followed by companies to decide their target group and provide those goods and services accordingly to make the product a profitable product. TASK 3 You are required to create a rationale for innovation in a new product and/or service design for your chosen product/service in meeting the needs of customers in line with your chosen organisation’s strategy. Gatorade Company has used innovation and made new product that is smart watch that tells the requirement of energy drink in the body. The American company has understood the needs and wants of customers and have taken the decision of making the products. The rationale behind innovation is as follows: Enhancing the profitability by 10% within a period of 6 months. Attracting more customers and focus on increasing sales by around 15% in a year. The company has targeted the people who are health conscious. Basically the would be attracted as they will come to know about the need of drink by their body as and when it arise so the customers will increase the sales if they will understand the product(Kouvelis and Shi, 2020). It is a good product as the alarm will ring when there is need to increase the energy level and use the drink. Excess of everything is bad and if used in large quantity can harm the body so by used of this watch this fear is also gone and people will come to know about the need of their body. Some principles that are used by Gatorade Company that would help them to meet the customers’ requirements are as follows: Understand your consumers at granular level:As now everything is changing companies are also evaluating their customers in a different manner so as to understand them better and their needs and wants are satisfied easily. To understand them better the customers are to be studies and the companies have to make strategies that will help the company to influence the customer’s more and better. The information and researches are to be done by the company to improve the analytical
skills and to provide the customers according tom their needs and wants. The needs are growing so it is needed by the organisation to know about them and understand them is important. Treat customers as assets which would develop in value:The organisation is able to work and operate for long if they consider the customers as their assets. As they are the one for which the company is working and because of which company is working so it is the company who can make the process smooth by making relationship with customers. Building good relations with customers is a thing that will help company to grow in long run. If the customers start liking the company and the services offered by them they no one can stop the company from being successful and the customers that are loyal promote the company. The company not only has the relation of just selling the goods and services to the customers but also to provide them pre and post services. The companies that serve the customer after the sales are happier and have comparatively more loyal customers. And loyal customers don't switch the customers are loyal if their needs and wants are satisfied and them after sales service like if they have some problem with the product that should be solved with time. Overall to gain good position and be successful in the market the company should maintain good relations with the customer’s. TASK 4 Choose a specific target group within the framework of your chosen business and create viable solutions that would appropriately those specific target customers’ needs. The Gatorade Company is introducing their new innovative product to attract the young generation. The company have developed a smart watch which will inform the individual that when they have to consume water or energy drink after evaluating their body requirement(Kurlat, 2018). For this company is targeting the customers of middle and upper class. The company uses this target market to make sure that the customers will create a direct link with the products of the brand. The manager plays a significant role in developing effective strategies to achieve their objective. Moreover, the company have decided to opt for the following strategies which are discussed below: Marketingstrategies:Thesestrategiestargettheconsumersafterevaluatingtheir preferences. This helps them in enhancing their customer’s base. The Gatorade Company is implementing the following strategies:
Social media marketing:It is a technique which concentrates on enhancing the customer base of the company by implementing the innovative ideas in their product development. The aim of the company is to enhance their social media traffic by increasing the likes and share ratio on their platforms(Leach, Epler and Wang, 2020). The firms can able to share videos, photos of their products on Facebook, Instagram, and Twitter. In relation withGatorade Company, they focus on utilising effective strategies which will ultimately minimize their marketing expenses resulting in an increased profit. Search engine optimization:SEO is a process to enhance the awareness and popularity of the brand and its products. For this the company develops an attractive website which helps them in tracking their targeted customers. This will provide unpaid search outcomes to the company on the top platforms namely google, yahoo and many more. In context withGatorade Company, the company opt for this strategy to ensure that their product development and awareness reaches at higher levels. This technique helps in building their leading position in the competitive market. Search engine marketing:This strategy is essential to ensure brand recognition. Also, this helps in maintaining brand competitiveness which leads to enhanced productivity. The effective method used is the pay per click which is implemented in online advertising procedure. Also, the form buys the link or the websites to enhance their advertising platforms. TheGatorade Company adopts these strategies to enhance their productivity and profitability. This also ensures their online visibility to their potential customers. For this company these strategies are effective as they believe in online exploration. Also the company is dynamic and can adapt various marketplaces with diversified customers. It is necessary to make an effective position in the search engine as this will enhance the customer base of the company. Email marketing:This method is considered to be highly effectual method as it has diversified nature. The method covers every segment of various customers group. But there is a possibility that the firm’s message can be delivered to spam folders which will result in failure of this technique. Also, it will be wastage of effective resources and funds of the company(Magnotta, Peev and Steffes, 2020). Moreover, email marketing is a technique that targets the clients with the aim of persuading their buying decision. In relation withGatorade Company, this marketing strategy will help them in developing the relation prospects with potential customers. This marketing
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technique also helps in reaching the prospective customers and develops strategies to retain their current customers. Sales strategies:The aim of these strategies is to enhance the sales of the company by reachingtopotentialcustomers.SomeofthestrategiesimplementedbyGatorade Company are as follows: Use you phrasing not we phrasing:This is an effective strategy for evaluating the competitors. This strategy is also used by the companies to evaluate their position in the competitive market. Furthermore the vision of the company is to perform the research for testing the effectiveness of you versus we. This has been analysed that “you” factor is effective as it relates to the personal accountability. This will separate the firm’s message from its rivals. So, it is helpful for theGatorade Company in enhancing their revenues and sales which results in increased productivity. This factor helps in achieving a leading position in the competitive market. The company focuses on the strength and weaknesses of the competitor in order to ensure enhanced sales. Up sell through reinforcing relationship:It builds effective relationship with customers. The company adopt ways to reinforce their customers effectively. They devise various strategies in order to maintain the competitive edge and develop their ratio of customer relationship. For that the company target the emotional rationale of the customers to retain them as loyal towards their brand. Also, the company tries effective ways to connect with their customers. The company devise strategies to develop effective relationships with their customers. Sometimes customer communicates their problems with the company through the way of feedback. Also, the loyal customers share their good experience with the product of the brand through social media platform. Hence, these are the various ways used by the companies to attract the customer base. Also this ensures that the needs are fulfilled through development of effective products for sale. The company evaluate the customer’s preference through understanding the current trends of the industry(Magnotta,Peev and Steffes, 2020). It is necessary to under their preferences which will be easier for the company to enhance their sales ratio. Furthermore, the company focuses on building and developing effective strategies in order to make effective use of resources and workforce opf the company towards their attainment of goals of the brand.
CONCLUSION It can be said that sales and marketing are two functions that help the organisation to serve its customers according to their needs and wants and increase the sales of the organisation also the profits are also increased. In the report their is discussion about Gatorade company that is American company and has its operation in 80 countries andhas made a new product v6that is smart watch that helps the customers to know the need of energy drink in the body and is targeting the consumers who are diet conscious. The people will prefer the product as the product is launched after analysis. There is rationale about the innovate product. The importance of understanding customer relations and the success of the organisation. Also the role of data to understand and influence the relationship of with the organisation. Also the target customers should be served and their needs and wants should be fulfilled. The marketing strategies are important and should be formed after analysis and implemented effectively for growth of business.
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