Report: Marketing Principles Applied to Perfetto Juice Company

This report analyzes the marketing principles applied to Perfetto Juice Company, a UK and European smoothie brand. It begins with an introduction to marketing principles, emphasizing their role in promoting products and enhancing brand image. The report then examines the marketing process, including environmental analysis, market audits, and the development of marketing objectives and marketing mix. Task 1 explores the elements of the marketing process and the benefits and costs of marketing orientation. Task 2 analyzes macro and micro environmental factors using tools like PEST analysis, segmentation criteria, and factors in targeting a market segment, focusing on consumer buying behavior and product repositioning. Task 3 delves into product development for competitive advantage, distribution strategies, pricing in recession, promotional activities, and the extended marketing mix. Finally, Task 4 reviews the marketing mix, differences in marketing to businesses versus consumers, and marketing activities for both domestic and international markets, providing a comprehensive overview of Perfetto Juice Company's marketing strategies.

Marketing
principles

CONTENTS
Introduction.................................................................................................................................................3
Task 1...........................................................................................................................................................3
a) Elements of marketing process............................................................................................................3
b) Benefits and costs of marketing orientation .......................................................................................4
Task 2...........................................................................................................................................................4
a) Macro and micro environmental factors ............................................................................................4
b) Segmentation criteria for the purpose of targeting market................................................................5
c) Factors in choice of targeting a market segment ................................................................................6
d) Concept of consumer buying behaviour ............................................................................................6
e) Product re-positioned for Perfetto Juice Company .............................................................................7
Task 3...........................................................................................................................................................8
a) Products are developed to sustain competitive advantage ................................................................8
b) Distribution..........................................................................................................................................8
c) Role of pricing strategies in achieving organizational objectives in recession time period .................9
d) Promotional activities to achieve objectives .......................................................................................9
e) Extended marketing mix....................................................................................................................10
Task 4.........................................................................................................................................................10
a) Marketing mix ...................................................................................................................................10
b) Differences in marketing products and services to businesses
rather than consumers market ............................................................................................................11
c) Marketing activities for domestic & international market ................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................14

INTRODUCTION
Marketing principles involves wide range of strategies, standards, ideas and techniques
which helps the organization to develop their marketing activities and practices in an effective
manner. The effective marketing practices are performed in order to promote company's product
and services in the market. The principles of marketing are considered by most organizations
because it helps in enhancing the brand image of both existing and new product in successful
manner. In accordance to this aspect this report helps to understand marketing principles. In this
report, according to given scenario Perfetto Juice Company is considered which is specialized in
healthy beverages and it is one of the famous smoothie brands in both UK and Europe. Further,
this report evaluates elements of marketing mix process and its tools are used to analyse micro
and macro environment of the organization. This report also involves concepts of segmentation,
targeting and selection of cited firm products.
TASK 1
a) Elements of marketing process
Marketing process is a planning procedure which contains formulation of strategy,
marketing mix decisions and analysis of situation along with control and implementation. To
ensure the development of Perfetto in an effective manner cited firm needs to consider various
elements of marketing process. These elements are discussed as below:
 Environmental analysis- This analysis helps the company to understand various factors
which are related to both internal and external environment. The evaluation process is
done by using strategic tools such as SWOT, PESTLE and Porter's five forces model, etc.
Perfetto implements these strategic tools to understand its customers and market
demands.
 Market audit- The market audit includes procedure to evaluate present market
conditions along with identified needs of company's customers. Through this market
audit, the management of cited firm can develop and produce its products in the more
effective way (Dalgic and Leeuw2015).
 Objectives- To examine relevance of its marketing objectives, Perfetto can use SWOT
analysis tool to evaluate the situation. This method will assist the management to identify
company's strength, weakness, opportunities and threats. This stage of marketing process

identifies marketing objectives of Perfetto which mainly focus on profit maximization in
both long and short term perspective. The marketing objectives help to increase value of
firm's brand image.
 Marketing mix- This step of marketing process deals with different elements of
marketing mix such as price, promotion and place etc. which aids to evaluate
characteristics of target customers of Perfetto.
b) Benefits and costs of marketing orientation
The marketing orientation helps in understanding the specific demands and needs of
target customers and it also monitors value of brand image and performance of products in the
market.
Benefit
The main aim of marketing orientation is to deliver better quality products to customers
by focusing on customers’ needs and requirements. With the help of marketing orientation
Perfetto gain strong hold on company's target market. Furthermore, it is beneficial for the cited
firm to create customers value along with increasing the level of trust among target customers
towards its products and services (Ranjbar, 2012).
Cost
To identify needs of customers, firm spends both time and money by conducting various
programs such as survey and suggestion session. This research process takes lot of time to collect
all information because it is long time procedure which takes efforts, time and money. In
competitive market, if competitors are focusing on product engineering than Perfetto can take
this opportunity to increase their sales level and customers through marketing orientation. The
challenges such as rapid changes in target market affects strategies of marketing orientation. The
changes may be fluctuation in cost of raw material, services and products etc (Marketing
orientation, 2012).
TASK 2
a) Macro and micro environmental factors
Both macro and micro environments are analysed to develop market by using various
tools and techniques which are described below:
Macro environment

For this purpose PEST analysis tool is implemented-
 Political- In this, inflation is important factor that leads to fall in the level of sales
revenue of Perfetto Juice.
 Economical- Government policies such as fiscal and monetary impact the exchange, tax
and interest rates that leads to rise or fall in the cost of company.
 Social- Factors such as lifestyle, social class, income and religion of customers also
motivate the cited firm to provide quality services according to these factors (Pyo, 2015). Technological- If competitors adopt new updated technology then it gives adverse effect
on company's profitability and revenue by reducing size of customers.
Micro environment
To analyse micro environment of Perfetto Juice, company's stakeholders are considered. The
stakeholders of company are as follows:
 Customers- Perfetto Juice always focuses on demands and needs of customers and to
attract them company is focused on creating packaging designs.
 Employees- The employee numbers has increased from 3 to 350 who work across
Europe.
 Suppliers- Company fulfil their responsibility towards their supplier and also look after
all people who works in the firm. They do this by giving them timely payment and
understanding their issues which they face in the supply chain of company.
 Government- Company follows all policies and regulations of government and provide
them with yearly reports (Bickhoff, Hollensen and Opresnik, 2014).
 NGO's- Perfetto Juice Company donates 10% from overall profit to charity mainly to
Perfetto foundation.
b) Segmentation criteria for the purpose of targeting market
Segmentation criteria are a process to identify target customers with specific
characteristics and once segments are created then Perfetto Juice produce products according to
demand and needs of target customers. According to 4 bases, the consumer market is segmented
such as:
 Demographic- It includes variables such as age, gender, income and family cycle.
 Geographic- This factor refers to different geographical areas and its variables are states,
nation, cities, climate, population density and natural resources.

 Psycho-graphic- Customers buying behaviour also depends on their personality and
lifestyle traits.
 Behavioural- Customers are divided on the basis of knowledge, response, attitude and
usage of products.
Perfetto Juice Company is mainly specialized in fruit juices and smoothies and for these
products they have large number of loyal customers. In this context, lifestyle variable of psycho-
graphic segmentation is needed to be considered in order to target the customers who are
conscious about their health. To gain and attract more customers’ company can produce both
types of juices such as sugar free and sugar base (Venter, Wright and Dibb, 2015). The customers
who are health conscious and do not want to intake more calories, they will buy sugar free juices.
c) Factors in choice of targeting a market segment
The targeting strategy includes market segmentation of customers to whom Perfetto Juice
Company wishes to sell products and also for selecting the segment which are appropriate for
company's product. In choice of targeting market segmentation, few factors are considered which
are as follows:
 Size of market- To target the customer, firstly it is important to identify actual size of
market and its demand.
 Buying behavioural- For targeting the customers, the buying behaviour of consumers is
also considered. It is because according to this, customers are targeted by specific buying
characteristics (Wood and Jobber, 2013).
 Lifestyle- Among all consumers, some of them live healthy life and have healthy lifestyle
and on other hand some customers are not conscious about their life & lifestyle. Hence,
the consumers can be targeted by understanding their lifestyle.
To increase sales of product it is very important to consider all these factors to target the
customers. On this basis, cited firm uses the differentiated targeting strategy in order to target the
health concious people. Thus targeting strategy has the potential to generate market share, sales
volume, economies of scale and higher profits. This strategy is used to design more than one
promotional messages such as for sugar free and sugar base juices. In this, each message defines
the different benefits of juice products (Dalgic and Leeuw2015).

d) Concept of consumer buying behaviour
The buying behaviour is basically a decision process and acts of customers which
influence them to buy and use the products. It is important for Perfetto Juice Company to analyse
buying behaviour of customers because it describes reaction of buyer against the company's
marketing strategy the buyers such as consumer buyer, business buyers and online buyers.
Basically buying behaviour describes that why customers are buying and for what purpose they
are using products of the company. Cited firm have to consider demand of targeted customers so
as to supply them with the products accordingly. The innovative and attractive designs of
product's packaging will also attract more customers. For the convenience of kids, smoothies and
juices are packed in small bottles with creative packaging design. These features also attract kids
towards the company's product. For customer’s convenience, Perfetto Juice Company provides
fresh and healthy juices and smoothies on their physical outlets. There are generally four types of
factors which influence the consumer buying behaviour and the factors are discussed below:
 Psychological- The interest, motivation and attitudes variables are involved in buying
decisions of customers which influence them.
 Social- The social factor includes roles, family and customer status. It defines that
outsiders also influence the customers to buy the company's product.
 Cultural- The cultural factors includes variables such as nation, religion or sub-culture
which impact on the buying decision of customers (Kotler and Armstrong, 2013).
 Personal- It involves lifestyle, age, personality and occupation of customers which
influence or affect the consumers buying decisions.
Hence, the present company has to take care of above mentioned factors so as to understand their
behaviour in the best possible manner. The buying behaviour of customers affects the marketing
activities. In this, due to personal factor, customers buys the product on regular basis. In this
regard, cited firm requires to conduct market research. In research process, Perfetto juice
company will identify the customer's preference and their motive behind buying product (Aziz
and Nas, 2013). By considering the outcome of research process, cited firm will formulate the
marketing activities to promote their juice products.
e) Product re-positioned for Perfetto Juice Company
The term repositioning refers change in positioning of company's brand or product.

Basically, a firm consider repositioning of product due to major changes in the environment or
declining performance of product. For example, in case of Perfetto Juice company if the taste of
juice is not good and as a consequence the repeat purchases are also quite low. So, for Perfetto
Juice Company this poor performing product is not good for both brand image and productivity
because it will reduce number of customers and decrease the level of productivity (What is
Repositioning?, 2012). At this stage, company have to decide whether they like to improve
quality of product, withdraw it, replace it or reposition it. This is because the firm have very high
brand awareness in marketplace and its products like smoothies are performing good job in the
market which is successfully attracting more customers (Bearden, 2006). With the decision of
repositioning the project, company's main challenge is to attract and convince more customers to
retrial company's same product. For this purpose, cited firm can increase size of can, improve the
taste of juice and replace the packaging designs with new ideas. To attract more kids towards
juice, company can offer small toys with juice cans (Five Ways to Reposition Your Product or
Service in an Uncertain Economy, 2010).
TASK 3
a) Products are developed to sustain competitive advantage
To lead the market place, it is essential to develop better quality products and services to
sustain the competitive advantage. The sustainable competitive advantage helps Perfetto Juice
company to maintain and improve competitive position in the marketplace. Basically, it exists
when cited firm is able to provide same benefits and services as competitors but at low cost or
provides different benefits which exceed the competitive products. Thus it defines that
competitive advantages helps the company to develop superior value for target customers and
helps in profits maximization (Bartlett and Ghoshal, 2013).
To sustain competitive advantage, better quality products are required to develop and for
this purpose cited firm can choose strategy such as cost leadership, differentiation and focus. To
sustain competitive advantage, Perfetto Juice Company selects and implements the
differentiation strategy. With this strategy, cited firm distinguish its products and services by
unique features and usage benefits from company's competitors. Through differentiation strategy,
firm creates innovative packaging designs, different delivery modes and effective CRM. To
sustain leadership, this strategy requires extensive product development and research process

(Developing a sustainable competitive advantage, 2008).
b) Distribution
After developing the product it is very essential for Perfetto Juice Company to make the
product and service available to all target customers because they are end users of company's
product. The distribution strategy describes that in what ways company will transfer its products
to both retailer and customers (Aziz and Nas, 2013). With the help of these three strategies the
distribution of products can be done effectively. These three strategies are intensive, exclusive
and selective.
Through implementation of intensive distribution strategy, Perfetto Juice Company can
provide its new product which are sugar free and sugar base juices for all customers. The
company's headquarter is situated at “Fruit Towers” in London. For the convenience of
customers, products are available at physical stores located throughout 15 different countries. To
reach large number of customers cited firm can also distribute its product on various retail
showrooms. Firm can also provide its products at online outlets like websites. In online selling
procedure, the juices will be delivered within two days when products order has been placed.
With the help of intensive strategy, cited firm will surely provide its products to all customers
which will help to boost the sales of the company (West, Ford and Ibrahim, 2015).
c) Role of pricing strategies in achieving organizational objectives in recession time period
The pricing strategy during an economic downturn like recession is very tricky because it
requires more considerable thoughts for setting right prices. In recession time period, to achieve
organizational objectives, Perfetto Juice company can use penetration pricing strategy which is
designed to gain market share with low price related to other competitors. Company will not set
highly low prices but as compare to competitors the prices will be low. The main aim of this
strategy is to raise awareness and influence customers to try product. At recession time,
customers are less interested to spend money (Willard, 2012).
During recession time, if company drops prices to solve problems than it will surely
boost the sales for a time period but in last it will reduce value of high quality products. In this
situation when markets starts to pick up, company struggles more to get prices of high quality
products, so, panic pricing, lower the profits of company. The pricing strategy plays a important
role to achieve organizational objectives.

d) Promotional activities to achieve objectives
The promotional activities plays a important role to promote both brand image and
products in front of market and public. The main motive of promotional activity is to increase
awareness in customers about products and to attract large numbers of customers towards
company's product.
As per the given case study, Perfetto Juice company has examine impact of various
activities such as direct marketing, public relation, sales promotion, personal selling and
advertisement to improve the effectiveness of company's marketing strategies (Sinha, 2012). The
sales promotion helps company to increase sales in short time period and for this purpose,
company offers discount and coupons etc. on products. With the help of successful advertising,
customers knows product in positive manner and for this mediums like banners, radio and
hoardings are used (Menon and Yao, 2014). Through personal selling company sell the products
to customers by meeting them face to face. For example- Perfetto juice company set the
objective to attract the people who are health concious towards their new product (sugar free
juice). For this purpose, cited firm uses the various types of promotional activities such as sales
promotion, personal selling and advertisement in order to increase the awarenesses of people
towards their new product. To attract them, features and benefits of product will be define in
marketing activities.
e) Extended marketing mix
The extended marketing mix relates to various marketing activities to promote both
product and brand in marketplace. The elements of extended marketing mix are as follows:
 People- The employees of Perfetto Juice Company has grown from 3 to 350 who works
across Europe. These employees are the face of the cited firm because they directly
interacts with customers and aware them about product features and benefits. To attract
large number of customers, cited firm also hires the skilled and well groomed employees,
so that they can effectively interact and communicate with customers.
 Physical evidence- The structure of physical outlet is managed effectively in well
mannered then it develops positive impact on customers. Well developed infrastructure,
good presentation, cooperative environment and products physical evidence creates
positive impact on customer's perception (Wedel and Kamakura, 2012). Cited firm also
display the products at physical product which are promoted through marketing activities

in form of public. This gives the evidence to customers that product matches with its
features and characteristics which are defined in advertisements (Niazi, 2012).
 Process- Company uses green electricity at Fruit Towers to source the fruits from
different places and to produce healthy and natural products, fruits like bananas specially
comes from Rainforest Alliance accredited farms. The processes of Perfetto company
relates to the timely delivery of products, effectively handling customers queries and
complaints in effective manner. The effective and efficient processes of company garner
the confidence of customers. The processes basically defines the ability of firm to offer
the services and handle the issues.
All these three elements of extended marketing mix help Perfetto Juice Company to promote
its product effectively in front of customers.
TASK 4
a) Marketing mix
Company's products needs different marketing strategies in different segments of same
market. For example, in demographic segment the buying behaviour of both men and women are
different.
The Perfetto Juice Company's 4p's of marketing mix are described below:
4P's of Marketing Mix
Psycho-graphic segmentation
(Segmentation according to lifestyle variable)
Product Sugar free juices for more
health concious customers who
do not want to intake extra
calories.
Sugar base juice for all regular
customers (Solomon, 2012.).
Price Penetrating pricing strategy
will be followed then prices
will be made according to
competitive pricing.
High prices as compare to
Penetrating pricing and
competitive pricing.
Low prices as compare to
sugar free juices.

Sugar base juices (Foxall,
2014).
Place Intensive distribution strategy will be used for distribution of
products. Both products are available at both physical and
online stores.
Promotion Promotion of sugar free juices
can be done by making famous
dietitian as a brand
ambassador.
Personal selling and
advertisements by magazines
and newspaper etc.
Promotional activities such as
sales promotion, direct selling,
advertisements are used.
Banners and hoarding can be
used.
b) Differences in marketing products and services to businesses rather than consumers market
There will be difference when Perfetto Juice Company will develop marketing activities
for business buyers and consumer buyers because both have different motive to use products.
The difference in marketing activities are described as below:
Marketing products to business
(B2B)
Marketing products to consumers
(B2C)
The marketer of company requires to be
logically and rationally driven.
In consumers market, marketer needs
emotional factor to influence customers.
Products are used for business purpose
(Armstrong, 2014).
Consumer use the products for their personal
benefits.
Technical jargon can be used by marketer to
attract business buyers.
By simple method and language used by
marketer to influence customers.
Business buyers wants all brief details related
to products because they are information
seekers.
Consumers are interested in benefits from
products and they want their requirements to
be fulfilled by products (Baker and Sinkula,