A Comprehensive Report on Marketing Principles for Appy Foods, UK

This report provides a comprehensive analysis of the marketing principles employed by Appy Foods, a UK-based company specializing in healthy food and drinks. It begins with an introduction to marketing principles and their application within the firm, followed by an examination of the various elements of the marketing process, including segmentation, targeting, and the benefits and costs of a marketing orientation. The report then delves into the macro and micro environmental factors influencing marketing decisions, utilizing PEST analysis and stakeholder analysis. Furthermore, it explores segmentation criteria, targeting strategies, and buyer behaviour, particularly in the context of the new product, Sparkun. The report concludes by discussing the process of new product development to sustain competitive advantages and the role of distribution in providing customer convenience for the energy drink Sparkun. Overall, the report offers a detailed overview of the marketing strategies adopted by Appy Foods and the factors shaping its market performance.

MARKETING
PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK1..................................................................................................................................................3
TASK 2.................................................................................................................................................4
TASK 3.................................................................................................................................................6
CONCLUSION....................................................................................................................................9

INTRODUCTION
Marketing principles or strategies are the activities involved in the process of transferring
goods and commodities from manufacturers to sellers and finally to the buyers. Principles include
activities related to advertising and selling so as to successfully carry out marketing of different
goods in the market (Jobber and Ellis-Chadwick, 2012). They can also be referred as a branch of
business which deals with buying and selling of goods by making appropriate transactions
(Armstrong, 2014). Marketing principles are generated for effective merchandising of commodities
which thereby aids in satisfying customers need (Sheth and Sisodia, 2015). Different business
organisations follow variety of marketing principle to meet demands of general public (Parker and
et.al., 2011). Marketing principles helps in increasing and enhancing market performance of the
organization by launching new products or by promoting the existing products (French, 2010).
This report will mainly focus on different types of marketing elements in Appy Foods, UK.
The cited firm provides several ranges of healthy food and drinks. Further, it also includes
advantages and disadvantages of marketing orientation. The study will emphasize on different
macro and micro environment that are responsible for influencing marketing decisions in Appy
Foods. A targeting strategy will also be implemented to promote different types of products in the
organisation.
TASK1
1.1 Various elements of the marketing process in Appy Foods
Different business organisations follow various strategies to enhance their growth and
reputation in the market. Activities such as advertising, selling, purchasing and transporting or
delivering products and commodities from one place to another are included in marketing process in
Appy Foods (Nwankwo and Gbadamosi, 2010). The main responsibility of this organisation is to
identify and meet demands and wants of the customers so that the products and services are
provided according to the taste and preference of the consumers (Jobber and Ellis-Chadwick, 2012).
Type of marketing processes adopted in Appy Foods play a very important role in increasing or
decreasing the sales of the company. It is important for the company to analyse the environment
because it helps in identifying customers’ expectations related to the organisation (Smith, 2014).
To identify and meet the expectations of general public, Appy Foods has conducted different
types of research study for better understanding the environment of market. For effective marketing
procedures, the company undertakes the process of segmentation which is based on dividing larger
company groups into smaller sectors (Parker and et.al., 2011). Segmentation process can be of
various types such as demographic, psycho-graphic, geographical and behavioural patterns. After

the process of segmentation, larger or smaller segments are selected to target different employees.
These segments are examined with the help of pre-determined statistical data prepared by the
organisation (Solomon, 2014). After evaluating with the help of statistical and empirical data, these
segments are selected to provide profitability in different sectors of Appy Foods organisation.
1.2 Benefits and costs of a marketing orientation for Appy Foods.
Marketing orientation is undertaking the activities as per expectations and demands of
consumers (Bose, 2010). Marketing orientations provides benefits to Appy Foods by helping the
company in developing various strategies as per the needs and requirements of consumers. In the
long run, the concept of marketing orientation can aid in increasing growth and demand in the
current market. It may further aid Appy foods to provide best quality food services to its customers
so that they can meet the expectations accordingly (Henley, Raffin and Caemmerer, 2011).
However, it can be further said that marketing orientation for Appy Foods has some drawbacks as
well. Appy foods are required to carry out intense market research which may increase the cost of
company in the long run. The company is further required to appoint personnel for closely
examining the purchasing behaviour of different types of customers (Abdullah and Ismail Ahmad,
2010).
TASK 2
2.1 Both macro and micro environmental factors
It is very important for cited the firm to analyse both type of environment. In this context, PEST
analysis tool is used to evaluate the macro environment of Appy foods such as:
 Political factor- The changes in policies of government and inflation factor may lower down
the sakes sales revenue of Appy food (Jobber and Ellis-Chadwick, 2012). In this regard,
Appy food's is required to plan strategies which can aid in maintaining the overall sales
revenue (Wedel and Kamakura, 2012).
 Economical factor- This factor includes tax rates, exchange rates and policies such as fiscal
and monetary also gives a huge impact on the company's sale and productivity (Sheth and
Sisodia, 2015). Appy foods are thus required to keep themselves prepared in case of any
downturn takes place in the economy in terms of inflation. It must also keep a financial
reserve separately so as to manage the fluctuations taking place in the economy (Nicholson
and Oliphant, 2014).
 Social factor- This factor includes few variables such as social class, income, religion and
lifestyle of customers which influence and motivate the company to produce high quality

products (Nwankwo and Gbadamosi, 2010). Appy is thus required to develop product and
service offerings according to needs as well as requirements of the consumers. In this
scenario, the company is likely to get an advantage in terms of increased sales. In the similar
manner, the service of the company can also be customized as per consumer demands.
 Technological factor- If cited firm adopts innovative and updated technology then it could
increase company's sales and productivity in an effective manner (Parker and et.al., 2011).
The company is thus required to prepare its employees as per the changing technology. It
should undertake training sessions in case if any new technology has been utilized by the
company.
Further, to analyse the micro environment of Appy food, stakeholders of organization are
considered and analysed such as:
 Employees- Cited firm fulfils the responsibility towards employees and also provides
facilities such as job security and health facility etc.
 Customers- Appy foods always focus on demands and requirements of target customers. To
fulfil the expectations and demands of customers, company mainly emphasizes on healthy
foods and drinks.
 Suppliers- In order to full fill the responsibility, cited firm always gives payment on accurate
time (Abdullah and Ismail Ahmad, 2010).
 Government- The cited firm also provides truthful reports to the government and also pay
taxes on time (Parker and et.al., 2011).
2.2 Segmentation criteria
The segmentation is a process to divide the entire market place in small segments and groups.
The segmented groups contain specific characteristics and features. When the segment is identified
then the customers produces products as per the needs and requirements. In this context, App food
is providing the food and drinks for children and families (Henley, Raffin and Caemmerer, 2011).
Now, the cited firm is launching a new product Sparkun by especially focusing on millennial
generation. In this context, cited firm produces this new product by focusing on requirements of this
millennial generation born people. For these new products, segmentation criteria are defined
belowwhich are as follows:
 Psycho graphic segmentation- This factor focus on the lifestyle and personality of customers
 Geographic segmentation- Specific geographic area is considered.
 Demographic segmentation- Company focuses on the people who are born between 1980-
2000 (Nicholson and Oliphant, 2014).

To identify the target customer, these three segmentation criteria are considered. The cited firm
is specialised in producing healthy drinks and foods to customers. In the same way, new product
Sparkun is also an energy drink product. This new product will be able to attract adult customers in
more effective way. The adults are more health conscious about their health and normally they do
not like to intake calories. This characteristic is considered by focusing on psycho graphic
segmentation. This new product will be packed in different size in both can and bottle (Wedel and
Kamakura, 2012).
2.3 Targeting strategy
After the segmentation, targeting process is considered. By targeting the customers, Appy food
will be able to know that to whom they are selling the products. In targeting, the appropriate
segment is selected. At the time of targeting, few factors are required to be focused such as
 Customer’s buying behaviour- With the help of this factor, the buying preference and
patterns of customers are focused.
 Market size- It is essentially required to analyse accurate and actual size of the available
market place.
 Lifestyle- It is very important factor because cited firm is producing the new product which
is energy drink and with the help of this factor the lifestyle of customers will be evaluated.
2.4 Buyer behaviour
The buying behaviour of customers basically defines their decision making process. There are
few factors which influence and motivate the customer to buy the products.. The buying behaviour
of customers directly affects marketing strategies of the Cited firm. The factors which influence
customers are as follows:
 Social- This factors describes that; presence of outsiders motivates the customer to buy
company’s product. In this context, the outsiders are family, role model, friends etc
(Henley, Raffin and Caemmerer, 2011).
 Personal- It includes personality, lifestyle and age of customers. In respect to new product,
people are conscious about their health and they will surely prefer to buy the Sparkun.
 Psychological- This factor includes the variables such as beliefs; attitude and motivation
which influence customer to take decision related to purchasing.
TASK 3
3.1 Process of new products development in sustaining competitive advantages for Appy Foods and
Drinks

New product development is an important part of every organization because the needs and
wants of the customers are continuously changing. If the company has not made any kind of
innovation in the commodities than it will lead to decline in sales and will also decrease the market
share (Donovan and Henley, 2010). There are different reasons for a firm to develop new product or
service or bring changes in the existing one. In the case of Appy Food and Drinks, to sustain in food
and beverages market, company is required to develop new product (Nicholson and Oliphant,
2014). In this context, to sustain competitive advantages, organisation has to adopt systematic
process. In this approach, enterprise will first evaluate the need of new products in the market
(Huang and Sarigöllü, 2012). Under this process, different stages will be included such as problem
assessment, generation of idea, evaluation of the ideas, selection of appropriate option, development
of prototype, testing, marketing feasibility, commercialization and its launching. But the most
important thing during new product development is to take into consideration major characteristics
and features of new commodity (Kim and Hyun, 2011). For example, at the time of innovation in
energy drink, Appy Food and Drink Company is required to consider the taste, quality, essential
ingredients, presentation, marketing tactics etc. Therefore, by following above stated systematic
approach for new product development, company can easily gain sustainable competitive
advantages in the market (Valette-Florence, Guizani and Merunka, 2011).
3.2 Role of distribution in arranging to provide customer convenience for energy drinks Sparkun
Distribution of goods at the right place and at the right time is an important element of
marketing mix. For a company, it is essential to select those places for selling products and services
which are near to customers place (Thorson and Moore, J., 2013). So, it is required to ensure
convenience of end users during the distribution process of goods in the market. In the case of
distributing new energy drink Sparkun, Appy Food and Drink Company needs to choose
appropriate places (Luan and Sudhir, 2010). For this, organization is required to take right decision
regarding selection of distribution channels. There are two available options in front of the
company: direct and indirect distribution (Sheth and Sisodia, 2015). Both are suitable for the firm at
the time of distributing new energy drinks in the market place (Jobber and Ellis-Chadwick, 2012).
In the direct selling option, Appy Food and Drink company will place its new product into the own
outlets which are near to living place of the target customers (Nwankwo and Gbadamosi, 2010).
With the help of this, firm can easily sell beverages in the market and attract more and more
consumers (Wedel and Kamakura, 2012). On the other hand, in indirect selling technique, Appy
Food and Drink Company can place its new energy drink in retail stores, malls and other
unorganized stores. The reason of suggesting this distribution channel is that is these are near to
target customer areas. So it will be convenient for target users to buy Sparkun of Appy Food and

Drink company (Arbelaez and et.al., 2011).
3.3 Setting of prices for new energy drink to reflect organization objectives and market conditions
In marketing mix, pricing is an important element because the main objective of the
company is to set prices according to the present market condition. Appy Food and Drink Company
can consider pricing strategies being skimming and penetration pricing. At the initial level,
organization can increase the prices of the product by dividing the market into different segment on
the basis of elasticity of demand (Abdullah and Ismail Ahmad, 2010). This process is called as price
skimming. On the other side, in penetration pricing strategy, Appy Food and Drink Company can
initially lower down the prices of new energy drink for increasing market share. After some time,
the prices can be increased after gaining appropriate market share (Nicholson and Oliphant, 2014).
The appropriate pricing strategy which can be adopted by the company as per the current market
condition is penetration pricing. The reason of suggesting this tactic for Appy Food and Drink
Company is that it will help the organization to raise awareness about organic product and no
artificial flavour in the drink will be added. Along with this, it will be good for health of the
customers. The benefits of using penetration pricing for Sparkup energy drink for the company will
increase market share, gain competitive advantage, increase profit and sales of new beverages
(Parker and et.al., 2011).
3.4 Role of promotional activity in achieve marketing objectives for new Sparkup
When a company launches new product in a market, it has to carry out various promotional
activities. The intention behind doing this activity is creating awareness in the customer about new
product in the audience. In the case of Appy Food and Drink company, organization has also
promoted its new energy drink Sparkup in target Millennials groups. For this, there are various
tactics of promotion for new product in the market. In this context, first method is personal selling
where sales representative of the firm will visit customers and will meet them face to face (Henley,
Raffin and Caemmerer, 2011). With the help of this, Appy Food and Drink company’s sales
representatives will easily influence target customers to buy new energy drink. Rather than this,
with the use of advertisement technique, company will easily promote its new energy drink in the
target market (Wedel and Kamakura, 2012). For this, firm will either use digital techniques or
traditional methods of promotion. On the other hand, by organizing the promotional campaigning in
different locations and places such as mall, gym, hospitals etc, Appy Food and Drink Company can
easily promote its new Sparkup energy drink in Millennials target groups. Similar, with the help of
direct marketing method, organization can directly appeal to consumers to new energy drink via
messaging, websites, catalogue distribution, promotional letters, emails, email newsletters etc
(Abdullah and Ismail Ahmad, 2010).

3.5 Analysis of additional elements of extended-marketing-mix for new energy drink Sparkup
product
There are four extended marketing mix: people, process and physical evidence. These
components are needed to be considered at the time of marketing new or existing product in the
market. In the context of Appy Food and Drink company, firm has to consider those extended
marketing mix elements at the time of launching new energy drink in target Millennials group
(Parker and et.al., 2011). Company has to recruit and train employees so that they can easily explain
the characteristics and nature of new beverages in front of the target customers. On the other hand,
the process of developing new energy drink has to be clear for the service users so that they can
resolve their doubts (Henley, Raffin and Caemmerer, 2011). Along with this, complain handling
process must be clear so that their queries can be solved in an appropriate manner. In addition to
this, at the time of selling or explaining about new energy drink to the customers, there should be a
physical evidence of the products. This helps the Appy Food and Drink Company to effectively
market new beverages among target groups. Therefore, with the help of extended marketing mix
elements, organisation can achieve business objectives and gain competitive advantages in the
market place.
CONCLUSION
From the above report it can be concluded that term marketing principles involves several
types of strategies, tools and methods which help the company to organize their marketing activities
in more effective and efficient way. In this regard, Appy foods have used several types of strategies,
tools and methods to organize their marketing activities effectively. It has further developed the
marketing efforts to promote product in front of public and market. An understanding of marketing
principles by the management of Appy foods has played a crucial role in enhancing company's
image in more successful manner.

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