Marketing Report: Analysis of PACK'D's Strategies and Recommendations

This marketing report provides a comprehensive analysis of PACK'D, a London-based startup selling frozen smoothie kits. The report examines PACK'D's current marketing strategies, focusing on product, place, price, promotion, people, process, and physical environment, and offers recommendations for improvement. It delves into various concepts of consumer psychology, including reciprocity, social influence, authority, scarcity, and the Verbatim effect, and suggests how PACK'D can leverage these principles. Additionally, the report discusses current research in the marketing field, covering data acquisition through primary and secondary sources. The aim is to understand and enhance PACK'D's marketing approach, ensuring its long-term success and achievement of its business goals.

Marketing Report

Table of Contents
INTRODUCTION...........................................................................................................................1
RECOMMENDATIONS.................................................................................................................1
Current strategy of marketing.................................................................................................1
Various concepts of consumer psychology............................................................................4
Current researches in marketing field.....................................................................................5
Segmentation, targeting and positioning................................................................................8
Formation and execution of marketing strategies..................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Consumer psychology is related to the study of individual as well as different
groups regarding behaviour of customers towards use of goods and thinking about
various products of a company (Palmer, 2012). Buyers are considered as one of the
most important stakeholders for an organisation as by purchasing goods from
enterprise, they increase their profit. PACK'D is a start up in London which sells world's
first frozen Smoothie Kits. They are offering 100% natural products and customers can
buy goods from this company through online mode also. The purpose of this report is to
understand and improve marketing strategy of this organisation so that they can
achieve their long term goals. It will also discuss consumer psychology framework and
various stages of customer experience.
RECOMMENDATIONS
Current strategy of marketing
PACK'D is a start-up so, initial period is the most challenging for them. This
organisation is marketing their products by using special feature of their commodities
i.e. healthy drink which can be made in a minute (Peter and Donnelly, 2011). There are
selling frozen smoothie kits. It is a new concept and it has potential to attain huge
market share by replacing unhealthy cold drinks. According to marketing mix, there are
seven areas where every company should focus for forming tactics relating to
marketing. Below is the marketing strategy adopted by PACK'D with appropriate
recommendations for them:
Product – There is no doubt that this organisation is selling unique products and
they are spending a huge amount of developing quality commodities. Their product is
giving the initial publicity and it has ability to provide them extra edge over their
competitors. For a new organisation, selling fine quality is important for surviving in the
market and this company is doing this work in an impressive way but there are some
areas where they need to pay attention. First of all, they have to introduce new products
in regular interval of time so that they can continuously increase number of their
customers and enhance portfolio of offerings. They should also mention the key
difference between their products and similar items (Chaffey and Ellis-Chadwick, 2016).
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So, customer can understand that why they should prefer PACK'D. They always want to
use new products especially in the food and beverage sector. This company should try
to understand psychology of public and then develop their products accordingly.
Place – In the present scenario, PACK'D is selling their offerings through online
mode but their products are also available at various retail stores like Sainsbury's,
Ocado, EAT 17, Tesco, Amazon fresh, etc. At this point of time, they should focus on
online sales because trend of buying products without visiting a retail store is increasing
and most of the customers like to opt the option of home delivery. But this does not
mean that they should not concentrate on ''intensive distribution''. This is an appropriate
strategy which should be used by PACK'D. They have recently started their business
operations and so, they opt for every mode which can increase their sale (Pour, Nazari
and Emami, 2013). Besides selling their products to few big retail giants, they should
also concentrate on mom and pop. This will assist them in enhancing their profit and
publicity. There are few significant areas where they need to focus on immediate basis
i.e. formation of strong sales force and analysing distribution strategy of major
competitors.
Price – Setting right price of goods is very important because if customer will feel
that rate of a product is high then they will not buy it and if retail price of commodity is
less ,and customer are ready to pay more, than it will result in unnecessary loss to the
company. They are using price penetration strategy. This organisation is selling their
products at a low price and so, they can get attention of public and earn some
competitive advantage on their competitors (Kim and Hyun2011). They should focus on
successful execution of this strategy because it will assist them in enhancing their sales
and achieving more market share. PACK'D is a new enterprise and thus, penetration
pricing is a fine strategy for now but in the future, they should think about adopting price
skimming tactics. They are selling unique products in the upcoming scenario. They
should charge more money for new offerings because people will not feel shy to pay
money if they will get better items.
Promotion – PACK'D does not have deep pockets. Currently, they are not
spending a huge sum on advertising. They are focusing on sales promotion but
company should also concentrate on finding and using right source of advertisement.
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Selling products on discount is not a bad tactic but it can convince those potential
customers who do not have any idea about offerings of this company. PACK'D should
promote their commodities on social media (Yu-Jia, 2012). This sector is continuously
growing and they should spend their resources on convincing potential consumers. This
will be the best option for PACK'D because they do not have to spend much amount of
money on social media and they will get more popularity through this source. There are
various areas where they should keep their focus like right time of promoting brand,
using different strategy for targeting distinct segments of customers, etc. In the present
scenario, they have not adopted any aggressive style of promotion and so, they should
make a strategy which can get attention of consumers in a short time period.
People – There are many people who have either direct or indirect connection
with company. Employees are considered as one of the most important assets for any
organisation. PACK'D should focus on hiring the best candidate for job. Currently, they
want to hire the most qualified person but instead they should recruit someone who
understands culture of this company and stays in it for a long period of time. Workers
should get training in regular interval of time and for the same, they can update their
skills and deliver better results. Many companies like to select an applicant who has
fancy degrees and more experience. They are also doing the same thing. They should
make changes in their recruitment process and hire those potential candidates who are
passionate about their jobs (Balmer, 2011). Employee can provide competitive
advantage to this firm and play crucial role in achieving their objectives.
Process – Their are many companies who mainly concentrate on attaining
goals. PACK'D should focus on increasing adopting right process of operating and
manufacturing. Currently they do not concentrate on some important issues like
reducing cost of business and increasing operational efficiency. They should find and
remove flaws in their working so they can move forward towards their mission by
attaining long term goals. They should try to form an effective distribution system
because it will improve their revenue.
Physical environment – Product of PACK'D are the prove of their experiences.
This organisation has seen remarkable growth, in terms of numbers, because customer
are happy with the products sold by company. It is the right time for mentioned firm to
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convert their products into a brand. They should promote their signs and symbols in
order to buy space in mind of their customers.
Various concepts of consumer psychology
If a company want to reach their targets than they understand what their
customer what. PACK'D need to analyse needs of their customer so they can make
necessary modifications in their products and launch new one (Huang and Sarigöllü,
2014). Below are some marketing strategy, related to consumer psychology, which can
adopted by this company:
Reciprocity – Their is general thinking that if someone will do something positive
for other person then they will get similar response in return. PACK'D should send some
gifts to their customer and offer special discounts to their new customer so they can get
same response. If they will make better relationship with public then their sales will grow
and they will not face much problems when business environment create more
challenges to them when industry face issue relating to growth (Damirchi and Shafai,
2011). Their is no necessity to gift expensive products to customers, simply sending a
greeting card can result in formation of more number of permanent customers.
Consumer satisfaction can be increased by adopting this strategy of reciprocity. It is a
psychological game, an effective one.
Social influence – For every human being, it is important to find out ''what people
think''. This same case is also possible in for a company. PACK'D should try to
understand that what is the thinking of customer and other stakeholders regarding
organisation. Personal reference, sharing button of websites etc. are very effective
promotional tools which this organisation can use. If a permanent customer will refer
product of this company to their family members or friends then they can number of
consumer will increase (Al Muala and Al Qurneh, 2012). The important thing is that
they will not be ''one time customers'', they will be permanent buyer who will not leave
stop using products of this company for some similar commodity.
Authority – People feel nervous when they because of the pressure of authority.
Customers do not prefer to buy products from a new firm because there is a general
perception that they new seller may sell bad quality or ''why try new when we are happy
with current one''. PACK'D should hire a celebrity or an expert for promoting their
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products because this will be the easiest way of authorising webpage and product of
this company. Psychological of customer will differ if products sold by an enterprise is
back up an expert or celebrity (Fan, Lau and Zhao, 2015). This is a fine and very
popular marketing strategy which should be adopted by PACK'D.
Scarcity – Public understand that, in this world, there is a condition of scarcity of
resources. They always have a fear that they may not miss some great opportunity and
company should take advantage of this psychological fear. PACK'D should organise
sales with short deadline, announcement of ''out of stock'' and season & limited
products. This is an effective strategy and they are currently using it. They should
continuously work on this because it will assist them in making a positive impact on their
sale by offering discounts for short period of time.
The Verbatim effect – People do not remember details, they only recall general
idea like if a person is giving presentation on mobile phone then public will only focus on
general features like price and camera of the product. This is a consumer psychology
and PACK'D should considered it at the time of making strategies relating to marketing.
They should have a simple tag-line and at the time of advertising they need to focus on
providing information to the viewers in short time (Chikweche and Fletcher, 2012).
People do not have time and everyone is living a busy life. Instead of communicating all
the details to customers, this organisation should try to provide specific and short
information to the buyers.
Current researches in marketing field
Finding and acquiring information
PACK'D company can collect and acquire the information through various
sources. It includes the primary and secondary data. Primary collection means data
which is collected for the first time and through different methods such as
questionnaire,surveys and focus groups which means discussion among 8-12 people
about a particular product. So through these ways they can gather relevant data.
Secondary data includes collection of data which is already been collected and
research is made on second time. It includes internal sources which are within the
company and includes firms records,documents,profit and balance sheet,balance
sheet,inventory and sales records. External methods contain information from
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government sources, foundation, universities, professional associations, media and
internet. In order to understand psychology of customers, it is important to identify
relevant data and information. Market trend is rapidly changing and with time, thinking of
customers is also changing. Their was a time when people use to drink cold drink when
they knew that it is unhealthy for their health (Hair And et. al., 2012). But this trend is now
changing and this is the main reason that companies like Coca-Cola has started selling
better products like diet coke. Their rival, Pepsi, is also selling Tropicana. They are
offering these products in market because they know that people would love to but fruit
based beverage. These kind of important details help an organisation like PACK'D in
choosing right target for their products.
This company is already focusing on quality of their product. This is an
appropriate when they should develop a different image of company and try to convince
younger generation to buy their products. PACK'D should conduct market research
about which kind of new product can be developed for attracting large number of youth.
They should collected both primary and secondary data in order to so wide areas can
be covered in research. They should focus on reliability of information.
Evaluation of information in order to make decisions
Company needs to access the information in the primary and secondary data.
Through questionnaire and surveys firm can find the attitude and opinion regarding
health drink. Their choice and preferences can be known (Kim and Hyun, 2011). Online
sources such as mail and internet in which people can give their suggestions and
feedback regarding products and companies can be taken. Through evaluating these
information firm can take relevant decisions related to goods and find ways to improve
them. If they receive positive feedback company profits increases and they make slight
changes. If results do not matched according to standards set by the company so firm
make changes in the quality of product, its price, production and operations activities
which made good quality of products.
Collected information should be analysed in proper way because if this process
goes wrong then they cannot make effective strategies for attaining their goals. Actual
thinking of customers can only be understand by concentrating on what customer want.
If their demand are met on right time then earning more profits is would not be a big
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challenge. PACK'D should analyse one thing that customer in this segment can easily
be influenced and even they do not have appropriate idea about their needs (Jobber and
Ellis-Chadwick, 2012). This organisation should launch new product and try to
communicate benefits of using their commodities. PACK'D is a new company and
innovation can assist them in aggressive expansion of business. But enterprise need to
analyse areas where they can use their innovative mind because sometime innovation
get irrelevant. At the time of evaluating various information, they should check that
whether their demands of customer and sale of organisation will met, by use strategies
which are made thought evaluation of data.
Conversion of attitudes and decisions into behaviour
PACK'D company after evaluating data, making the important decisions try to
convert the opinion and attitude of people to take a buying decision. They can use
attracting labelling and packaging of drinks to attract the consumers. Organization can
reduce price of product so that more customers can purchase the product. Firm can
always ready to take feedback and suggestions from the people and make changes in
the product. This motivates them to buy more products (Mintz and Currim, 2013).
Emails are send to individual's website through which they feel contented, modified and
satisfied and they purchasing decision.
Once a company develop a particular kind of attitude then they should try to
manage inject in their behaviour. PACK'D is serious about health of their customers and
they are they should change mindset of their employee in order to assure better product
and service to the buyers. Psychology of every customer is different, PACK'D
understand this important point and focus on converting decision into behaviour.
Assessment of past experience for ascertaining future behaviour
Company has to check the previous data collected from questionnaire through
which customers likings and preferences can be known. This helps firm to know the
demand of their product in present and of the future. They can interpret the past data
which helps them to know the customers views,tastes related to goods for future. This
organisation must have good or bad experience. They should talk to their customer in
order to understand that what is the thinking of consumer about the product. This will
assist them in conducting research and developing those products which will get
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popular in market in no time (Lovelock, 2011). Understanding behaviour of customer is
not an easy task. But if they past activities is analysed properly then company get
complete information about their buying pattern, purchasing power and other significant
component. This company must have some permanent customers, they should identify
the reason behind ''why they like product of PACK'D''. This will support them in finding
their strength and making effective strategy specially in long run.
Segmentation, targeting and positioning
The basic objective of firm is to exploring their business and its activities at
market place through offering variety of goods and services to their significant buyers.
Different people are having their own perception as some are concern on price of the
good and some are concern on quality of goods and services. Consumer psychology
consist from behaviour of people, how they react, act, feel and speak. PACK'D is a
small business firm which widely concern on introducing new and innovative goods and
services to their significant buyers as to satisfying their needs and wants. Company is
mainly deals in beverage products and focused on developing new and high quality
products to their significant consumers just for fulfilling the preferences of consumers
that are based on their wants. Each small as well as large business organisation faces
various issues at market place in which some are described as below:
Market segment selection: Choosing the fitting organisational sector portion to
concentrate promoting endeavours on show a standout amongst the most fundamental
issues in showcasing plan advancement. Barring some market sections requires little
idea. It looks bad to effectively showcase child items to senior natives or to advertise
retirement towns to undergrads. Each business firm is concern on developing new
goods at the place where barriers and issues are less as this cause various issues in
development of firm. PACK'D is focused on introducing new and innovative products at
market place with more advance features as to gaining attention of customers towards
offered products and services of firm. The selection of products is based on the
psychology of people as each individual having their own desires and their choose
products as per their own choice and fulfil their needs and wants.
Positioning: Positioning in the market is all about Segmenting and Targeting of
Consumers. PACK'D is a comparatively small food and beverage company in the
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market and it has to work hard in order to establish itself as a company who attracts
consumers. Consumers have different preferences and tastes and in order to sustain
high position at market place company spend heavily on branding and marketing as
consumers tend to stick with brands which are already established in the market and
provides quality in their products. The Products needs to have quality,the pricing of
goods needs to be affordable as to gaining attention of people and create value for
them. The Distribution Channel of the company should be strong enough to cater to the
demand of customers and should be efficient. Lastly the company should emphasize a
lot on promotion as there is no sense in making a product when the people around don't
know about it,therefore,marketing is a very crucial aspect for a successful business plan
implementation. Positioning is the market is therefore a very difficult task especially for a
newer firm. The firm should study consumer psychology in a proper manner and then
take business decisions.
Targeting: A Target market is the market in which the company wants to sell its
product to. The company have to divide consumers into different sections and then will
have to target consumers which are more likely to demand or buy their products. Here
Pack'D will have to target consumers which are not loyal with brands and can easily
purchase other products of different company if offered value for their money.
Formation and execution of marketing strategies
Penetration pricing - It is the policy in which pack's company should adopt low
pricing as compared to market rate. This helps the organization to increase the profits
and market share. Through adopting this strategy firm can sell more products and
brands. So thus there is increasing the sales of company. Thus there is growth of profits
in the organization and enhance its performance. By following these approach it can
expand and diversify the business. Organization can create various products and
brands of good quality and they sell them at lower rates.
Firm should sell them through various outlets and centres located in various
countries. So through it company can reach large customers. Consumers can also give
reference to other relatives and friends about the organization. This helps the company
in maintaining the brand loyalty and for widening the business. Thus firm can maintain
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