Marketing Principles Report: Danone Ltd. Marketing Strategies Analysis

This report provides a detailed analysis of Danone Ltd.'s marketing strategies, covering various aspects of marketing principles. It begins with an introduction to marketing and the company profile of Danone Ltd., a multinational food corporation. The report then delves into the benefits and costs of market orientation, emphasizing customer satisfaction. It examines the impact of micro and macro environmental factors, including suppliers, competitors, and PESTEL analysis, on Danone's marketing decisions. Market segmentation strategies for Danone, particularly demographic-based segmentation, are explored. The influence of buyer behavior, cultural factors, and lifestyle on marketing activities is also discussed. The report further addresses product positioning, focusing on cost and quality strategies. The extended marketing mix, encompassing people, physical evidence, and process, is then analyzed. It also differentiates between business-to-business (B2B) and business-to-consumer (B2C) marketing, highlighting the differences in approach and tools. Finally, the report contrasts international and domestic marketing, emphasizing the differences in risk, finance, and challenges. This analysis aims to provide a comprehensive understanding of Danone's marketing practices and strategies.

MARKETING
PRINCIPLES

Table of Contents
INTRDUCTION.........................................................................................................................1
TASK 1......................................................................................................................................1
AC 1.2 Benefit and cost of market orientation.................................................................1
TASK 2......................................................................................................................................2
AC 2.1 Impact of Micro and Macro environmental factors on the company...................2
AC 2.2 Market Segmentation for Danone Ltd..................................................................2
AC 2.4 Impact of buyer behaviour on the marketing activities........................................3
AC 2.5 New positioning for a selected product or service...............................................3
TASK 3......................................................................................................................................4
AC 3.5 Elements of extended marketing mix...................................................................4
TASK 4......................................................................................................................................4
AC 4.2 Marketing products and services to the consumers or businesses........................4
AC 4.3 Difference between international and domestic marketing..................................5
REFERENCES...........................................................................................................................6

INTRDUCTION
Marketing is a process of transferring the goods and services from producers or
manufacturers to the consumers. It includes advertising, shipping and selling the products or
services so as to satisfy the consumer needs. By making effective and strategic marketing
plan the organization will be able to compete effectively in the market. Danone Ltd. is a
multinational food products corporation that provides fresh dairy products, water, early life
nutrition and medical nutrition to the consumers.
TASK 1
AC 1.2 Benefit and cost of market orientation
Market Orientation: This approach is based on the assumption that customer is the
king of the market. Therefore, all the marketing efforts would be done in order to satisfy the
customers wants (Varey, 2002). In this marketing, organization pay primary focus to
determining the consumer needs and attempting to provide such products and services to the
consumers.
Benefits Costs
By approaching this marketing strategy,
Danone Ltd. will be able to meet the
customer demand in a timely manner. It helps
the company to develop and produce such
products that fulfil the customer requirement.
Thus, by doing this, it can increase its sales
revenues and also the profitability.
Danone Ltd. has to organize an extensive and
expensive market research in order to
identify the customer requirements. Further,
private marketing firm may be hired for this
purpose. Therefore, it takes very much time
and cost to the company.
It helps in build the customer value through
developing the repetition of customers and
improving brand loyalty.
Increasing customer value may cause
increased production cost for offering
product warranties. Further, the cost may
increase for maintaining the staff for product
repairing.
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TASK 2
AC 2.1 Impact of Micro and Macro environmental factors on the company
Micro and macro environmental factors impact the marketing decisions of Danone
Ltd. to a great extent. Micro environmental factors can be controlled by the organization
while macro factors are external factors hence cannot be controlled by the company.
Impact of Micro Environmental factors: Suppliers, customers, competition and
general public are considered as micro factors for Danone Ltd. Suppliers have the power to
control the business success. For instance if they charge high prices for the products for the
Danone Ltd. then it lead to increase the product prices and vice versa. This in turn, impacts
the customer demands in an adverse manner and also the profitability. However, customers
are the profit source to the company. Therefore, their buying reasons of the product will play
a major role in the Danone Ltd. marketing process. On contrary, competitors who are selling
the same product or services also influenced the marketing strategy. Therefore, it becomes
necessary for Danone Ltd. to make product differentiation to reap better results.
Impact of Macro Environmental factors: PESTEL analysis include Political, social,
legal, environmental, technological and economical factors that affect the marketing plan of
Danone Ltd. The company has to follow legal and political rules and regulations of the
country for deciding the marketing plan. Technology that is used by the organization for
producing the products should be upgraded on a regular basis (Ferrel and et. al., 2014). Under
the social factors Danone Ltd. has to eliminate such elements that are harmful for the society.
On contrary, demographic factors helps in market segmentation helps to make effective
marketing plan.
AC 2.2 Market Segmentation for Danone Ltd.
Market Segmentation: It is concerned with classifying the customers on a basis in
order to identify the target customers. Different customers have different set of requirements
so it is not possible for the organization to meet the entire requirement. Therefore, it become
important to determine the target customers through the market segmentation (Kotler and
Armstrong, n.d.). It can be done through geographic, demographic, psycho graphic and
customer behaviour benefits basis.
Market Segmentation for Danone Ltd.: It can be done through demographic basis.
Under this basis, all the customers can be classified on the basis of literacy, lifestyle, age,
gender, culture and their religion in order to determine the target customers. Target customers
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can be determined on the basis of age and gender. The female consumers that prevail under
the age class of 25-35 can be determined as the target customers. It is because using the food
decisions is mainly depending on the female customers. They take care to provide health
nutrition to all the family members. Thus, by identifying their requirements about the food
products company can increase its revenues and also the profitability.
AC 2.4 Impact of buyer behaviour on the marketing activities
The buying behaviour consists of different internal and external factors. The customer
buying and purchasing behaviour affects the marketing activities of Danone Ltd. It is very
important for the company to change the marketing strategy according to the changing the
purchasing behaviour. If the customers are price sensitive then organization has to set lower
the prices for the product otherwise it may create adverse impact on the business sales. On
the other hand, some customers want better quality product they do not pay attention to the
prices. Therefore, the company should provide better quality products to them (Bose, 2010).
Cultural factors tend to vary from country to country. Therefore, organization has to make a
marketing plan after considering all the cultural factors. Purchasing power and lifestyle also
influenced the buying decision. It affects the pricing decisions for the products of Danone
Ltd. On the other hand, customers that have improved lifestyle will prefer organic food
products. Therefore, the company has to enhance the consumers’ health through providing
better nutrition products.
AC 2.5 New positioning for a selected product or service
Positioning: It is concerned with establishing the product image in the consumers
mind so as to make product different from the competitors. Effective positioning strategy
must be implemented by the company for this purpose. It is affected by the number of
variables that relates to the customer motivation, their requirements and competitors action.
Danone Ltd. can concentrate on certain factors through considering the organization strengths
and weakness under this policy. Cost positioning strategy can be follow by the company
through providing the products or services at reasonable or discounted rates (Blythe, 2013).
Moreover, through upgrading the products or services using new technology also create cost
reduction that helps in creates cost positioning. Along with this, Danone Ltd. also has to build
quality positioning for the offered products. It can be done by providing better health and
nutrition products to the consumers. Further, speed position strategy make competitive
advantages through avail fast and quicker food deliveries than the other companies.
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TASK 3
AC 3.5 Elements of extended marketing mix
The extended marketing mix involve three elements include people, physical evidence
and process.
People: These elements consist of all the people that are directly or indirectly dealing
with the sales operations to the consumers. It includes sales staff to the managing directors of
the company. The company has to select the skilled or able people to offer products or
services to the customers through recruitment and selection process.
Physical evidence: It is the way of product presentation to the customers. All the
products should be placed at right place. It helps to fulfil the customer requirement at right
time otherwise it may cause the delay to the customers. This in turn, customer might purchase
from the other shops results in loss of customers.
Process: It consist of the delivery process that how product is offering to the consumers.
Effective product offering helps to create a good mindset for the offered products or services
in the customer mind (Jain and Jain, 2014). The people should satisfy all the information
needs that the customer wants about the products and services. Moreover, they should
describe the product quality, its importance and mitigate the customer complaints.
TASK 4
AC 4.2 Marketing products and services to the consumers or businesses
Marketing plans tend to very under business to business and business to consumers selling.
Business to business marketing (B2B): Marketing to the other businesses involve
comparatively a small market than Business to consumer markets. Full detailed content
regarding the products and services is required under this marketing. It is because the
businesses are highly educated and expertise in analysing the comparative benefits of the
available products and services. The buying cycle under B2B is much longer as compared to
B2C marketing. Brand image is created through personal relationships and consultative
selling (Cooper, 2008). Consultative selling is based on understanding the client needs and
developing the trust relationship. Innovative and upgraded technology is required for
marketing purpose. Quality is very important factor that affect the buying decisions of the
businesses.
Business to consumer marketing (B2C): Marketing has taken place for large number
of customers. It is based on convincing the consumer by selling the products according to
their needs. Prices affect the buying decisions of the consumers to a great extent. Effective
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advertising, sales promotion, social medium are the marketing tools that helps in creating the
brand image. Lifetime value is lower as compared to B2B marketing because lower the
repeated sales.
AC 4.3 Difference between international and domestic marketing
International marketing is significantly different from the domestic marketing. The
differences are described below:
Domestic marketing International Marketing
It is concerned with production, distribution,
promotion and sales the goods and services
in the local market.
Production, distribution, promotion and
selling the goods and service undertake the
global market.
The risk involved in the domestic marketing
is less.
The risk factors are quiet high in this
marketing.
Less finance sources are required. Huge funds are required in this marketing.
It is less challenging for the organization. High challenges are arises under this
marketing as it involves high level of
uncertainty in the market (Jones and Hillier,
2008).
The company has to follow the rules and
regulations of domestic country only.
It deals with several countries therefore the
company has to follow all the country's rules
and regulations.
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REFERENCES
Books and jornals
Blythe, J., 2013. Principles and Practice of Marketing. SAGE.
Bose, C, D., 2010. Modern Marketing: Principles and Practice. PHI learning Pvt. Ltd.
Cooper, G. L. 2008. Strategic Marketing Planning for Radically New Products. Journal of
Marketing, 64(1), pp.1-16.
Ferrel, C.O. And et. al., 2014. marketing Principles PDF. Cengage Learning Australia.
Jain, A. and Jain. P., 2014. Principles of Marketing. VK Global Publications.
Jones, P. and Hillier, D., 2008. Marketing and sustainability. Marketing Intelligence &
Planning. 26(2). pp.123 – 130.
Varey, J. R., 2002. Marketing Communication: Principles and Practice. Psychology Press.
Online
Kotler and Armstrong, n.d. Principle of Marketing. [Pdf]. Available
through<http://www.dphu.org/uploads/attachements/books/books_3555_0.pdf>.
[Accessed on 9th December, 2015].
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