BRANDING OF COMMODITIES: HIDDEN ISSUES AND PERSPECTIVES " A brand is not an icon , a slogan, or a mission statement. It is a promise—a promise your company can keep.....................This is the promise you make and keep in every marketing activity, every action, every corporate decision, every customer interaction". -----Kristin Zhivago, " Business Marketing" SHIVANI GUPTA EXECUTIVE SUMMARY The inimitable nature of the consumer market has necessitated the need for a fundamental and radical change in the strategic aspects of doing business. The biggest challenge facing manufacturers today is how to differentiate their commodity so that their business rises above the commodity market place to enjoy the margins and premium associated with consumer packaged goods markets. Therefore the key to the success of marketing commodities in today's market place is an intense focus on creating true economic value for those customers who are willing to pay for it and a brand strategy based on product, delivery or service differentiation. In this context we have categorized the commodity market as commodities consumed at industrial level (B2B) and commodities consumed at retail level (B2C). Branding in the context of industrial buying has been determined on the basis of research conducted by McKinsey which states that consumer's concerns for on-time delivery, consistency of product performance, level of technical support and service, and relationship with supplier are greater determinants than price while placing order. Therefore companies which serve different segments of industrial buyers can maximize their sales by slotting prospective customers into a needs-based segmentation scheme. Analysis of branding of commodities consumed at retail level (B2C) shows that manufacturers must effectively differentiate their product offering vis-à-vis competitors as it moves the buying decision away from solely price factors and therefore generates long-term profitability and sustainable advantage in a crowded marketplace. We have substantiated the above with relevant case studies in commodity markets like Wheat Flour(Atta), Bottled...
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Case Summary: Darren Skanson, a classical guitarist, has used his expertise and popularity as a performing artist to form a company, Colorado Creative Music, to produce and distribute recorded CDs of his and other musicians' works. In 2001, he has one other performer on contract and two part-time employees whose responsibilities range from answering telephones, filling and sending out orders, maintaining equipment, managing inventory, preparing for gigs and promoting CDs to local vendors. In March 2001, Darren, who travels and performs up to 40 weekends a year, is caught between his multiple roles as lead performer, marketing and sales director, and manager. However, he realizes that he cannot sustain the energy needed to do everything well. Tendonitis in Darren's elbow is forcing him to rethink his plans and examine his current role in his company. Questions & Answers 1. I think Darren has done some good job and has used his expertise and popularity as a performing artist to form a company, Colorado Creative Music, to produce and distribute recorded CDs of his and also help other musicians. The studio now encompasses 16 tracks of digital recording and nearly the entire basement. 2.Competiton in the industry- It¡¦s hard for a small music company like CCM to compete with the major leaders of the music industry, such as SONY, EMI and so on. The music industry deals with increasing market growth, especially from smaller labels. There is potential for CCM to grow to an independent label in future. 3. Driving Forces of change ¡V Internet today is one of the major forces changing the music industry. Internet brings new opportunities in the areas of downloadable MP3 music and e-commerce sales. Also, marketing, technology and promotion are key elements. 4. There are a number of companies battling for a piece of this market. Only in the United States, online sales...
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EXECUTIVE SUMMARY Raaymakers Industries is a Sydney based company and leading producer of frozen beef products. Growth within our Australian market has become stagnant, and we are looking to explore opportunities to expand our operations into overseas markets. We have conducted a feasibility study on entering the Mexican market, which is known to have difficulties in breeding cattle in the early 1990's due to many problems such as, poor weather conditions and high feed costs. We have researched the political, economic, social, environmental, technological, and legal environment to identify any factors that may influence our expansion. As well, in this study, we have endeavored to ascertain the costs involved in this expansion as well as to determine the most suitable mode of entry. Although we will be facing high levels of competition we believe that through continuous research and development, we can provide Mexico with the best quality frozen beef that could perhaps not be available domestically. Further, we strongly believe that our reputation for safe and reliable products will provide us with a competitive advantage. As Chief Executive Officer of Raaymakers Industries, it is my recommendation that we proceed with this venture, as I see great potential for our company to grow and expand. TABLE OF CONTENTS Topic Page 1. Product and Company Description 3 2. PESTLE Analysis: Mexico • Political 4 • Economic 4 • Social 5 • Technological 5 • Legal 5 • Environmental 6 3. Trade Relations 7 4. Barriers/Impediments to Trade 8 5. Sales prospects 9 6. Mode of Entry 10 7. Timetable of Activities 11 8. Financial Forecast 12 9. Conclusion 13 10. Bibliography 14 11. Appendices Appendix A 15 Appendix B 16 COMPANY PROFILE AND PRODUCT DESCRIPTION Raaymakers Industries began as a small manufacturing firm in 1995, servicing only a few farms within New South Wales. Between 1995 and 2002 we achieved growth and diversification, and are currently servicing farms throughout Australia as well as numerous farms nationwide. We have traditionally...
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In today's world, we all should not be scared of technology. Technology should be considered an Enabler not as a means. Always creativity and commonsense will be the one that will prevail and would be the source of success. If any body thinks technology is the root cause of success, they will not be successful at all! Take the case of myself, when i went to business, i bought a huge amount of hardware and invested a lot on IT people and software. I only found that the expense grew! I made sure that from the second year of operations, i cut short investment in IT and fired all the fancy IT people who are not contributing. Made the business users to take charge of the business, Presto, I was successful! management as their route to faster, more profitable growth. Enterprise marketing management is a system for enhanced marketing effectiveness based on: Capturing and codifying marketing best practices from both within the corporation and from selected third. The Marketing Knowledge Center is a networked digital repository where a corporation maintains its marketing memory and expertise, deploys it to individual practitioners throughout the organization, and measures and learns from the effectiveness of its application in the ,marketplace. Every form of marketing asset can be tored and retrieved – documents, TV and Radio Commercials, print advertisements, historical research reports, annual plans, promotion details, and every item that a marketing practioner or manager needs to do their marketing job. best practice knowledge and processes throughout the organization so that they are applied productively and effectively. Enterprise marketing management has In addition to marketing assets, marketers need access to data to do their jobs. The Data Management Module includes an integration layer to access both external and internal data, and the tools and analytics to process this data into information that can be...
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John Pemberton, an Atlanta pharmacist who invented coke made out of a combination of lime, cinnamon, coca leaves, and the seeds of a Brazilian shrub to make this wonderful drink. Later carbonated water was added to the syrup making it known as Coca- Cola. Frank Robinson who was John Pemberton's bookkeeper and close friend named the drink Coca-Cola. He sold a portion of his company to Asa Candler, and after Pemberton's death the remainder was sold to Candler. He was forced to sell because he was in a state of poor health and was in debt. He had paid $76.96 for advertising, but he only made $50.00 in profits. Candler bought the whole company for $2,300, he had achieved a lot during his time as an owner of the company. The Coca- Cola Company within four years has made a soda fountain drink available in all states. In January 31, 1893, the Coca-Cola formula was patented, and Candler opened the first syrup manufacturing plant in 1884. The coke formula has once been changed and introduced as the New Coke, which consumers rejected. The original recipe was soon brought back as the Coca-Cola classic. The company had soon acquired Mad Ricer Traders, makers of teas, gourmet sodas, juices, and more and was dominated by the rival Pepsi Company. Since it's beginning in the spring of 1886, Coca-Cola has grown to become the most recognized trademark in history. Operating out of more than 195 countries worldwide, it is the most popular beverage on earth and is enjoyed over 773,000,000 times daily. The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of non –alcohol beverage concentrates and syrups. The Company and its subsidiaries employ nearly 31,000 people around the world. The strategy and missions are best characterized as global marketing and local manufacturing....
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3 INTRODUCTION AND BACKGROUND ITCo has been in business for 6 years and was formed with the intention of being a company that provides innovative marketing database solutions tailored specifically to the marketer. The business started with ad hoc Bureau work using proprietary software that enabled work to be conducted faster than most other Bureaux in the market place. In 1997 we developed a new product that enabled Clients to access and query their data via a secure web link (Quick Counts) and this became a market leader for this type of product. In the years since, many more companies have released their own versions of this type of software that has more functionality than our original product. We have only discovered this when we have attended industry exhibitions or have feedback from our sales force, which has only recently been expanded to three personnel as opposed to one less than 10 months ago. We have recognised that we had not paid attention to the market in the past three to four years and our revenues were suffering as a result. A five year tactical plan was implemented in 2001 which saw the introduction of a marketing department for the first time in our history. Much of the past 12 months has been devoted to setting up the foundations as well as upgrading our sales collateral and launching our company brand. In 2002 a five year strategy was finalised that includes a theme of "Innovation" where the focus must now be on developing innovative solutions to meet the needs of the market place. Part of the preparation for the Strategy included some unstructured market research that sought to identify our market arena, its potential growth and other markets that we perceived we have some cross over in. 4 RESEARCH PURPOSE In order to fulfil the...
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According to the video we watched in class, Levi's was not at the top of any denim tests, however they sell for the most. This is due to their marketing strategies. Over past decades Levi's has changed it's image to fit with the current style. In the 20s and 30s it was the cowboy; after the war it ... about those actions. Codes of conduct contain examples of appropriate behavior to be meaningful. We will investigate the business ethics of marketing practices, workforce make-up and organizational diversity. These are very complex topics but it is our hope that we will be able to broaden your understanding ... Brand Equity ... star athletes. Children and adults want to wear Nike's products to feel some association with these star athletes ("be like Mike." ) The marketing image that has been created for Nike is the driving force of the demand for the products rather than the physical features. Buyers are willing ... Data Mining ... customers. As stated before, many businesses rely on this use of data mining for survival. This is very helpful when deciding strategic target marketing. Without it, many businesses may not have enough customers to run a profitable and successful operation. Identifying inefficient operations within ... Punk and Post-Punk Subcultures ... as well; it required neither shampoo nor comb and couldn't be grabbed in a fight. They wore T-shirts, button-down Fred Perrys, Ben Sherman shirts, Levi's , black Swat slacks with suspenders (always referred to as "braces"), black felt "donkey" jackets that wouldn't tear in the factory ... Punk Music ... as well; it required neither shampoo nor comb and couldn't be grabbed in a fight. They wore T-shirts, button-down Fred Perrys, Ben Sherman shirts, Levi's , black Swat slacks with suspenders (always referred to as "braces"), black felt "donkey" jackets that wouldn't tear in the factory...
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Internet and Marketing In the last several years, the increased diffusion of computer and telecommunications technologies in businesses and homes has produced new ways for organizations to connect with their customers. These computer mediated environments (CMEs) such as the World Wide Web raise new research questions. In this paper, we examine the potential research issues associated with CMEs in five areas: (1) decision processes, (2) advertising and communications, (3) brand choice, (4) brand communities, and (5) pricing. In the last several years, the world of the marketing has changed dramatically with the rapid diffusion of computer and information technologies throughout businesses and homes. The two most notable changes that have increased potential of linking buyers and sellers are the number of households owning personal computers (over 33% in the U.S.) and the exponential growth of applications of the Internet, most notably the World Wide Web (WWW). With increased penetration of computers, particularly multi-media computers equipped with CD-ROM drives and modems, subscription-based services such as America Online (AOL), Prodigy, and Compuserve, where consumers are able to check airline flight schedules and make reservations, purchase a wide variety of products, and discuss product performance with other consumers, are becoming very popular. Households in Chicago and San Francisco can purchase groceries from home using computer software marketed by Peapod, Inc. This latter service allows consumers to search within a product category using attributes such as price, calories, sugar content, and package size. Car manufacturers such as BMW regularly mail CD-ROMs to potential customers with video shots of the cars and data both about the cars and their competitors. Durable goods can be purchased through CUC International's Shopper's Advantage membership-based service (www.cuc.com). "Virtual" shopping experiences (Burke 1996) enable marketing researchers to simulate a buyer's actual experience in a supermarket with remarkable accuracy. While the Internet has been around...
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Report The aim of this report is to analyse the current Marketing Mix of Sainsbury's, and to work out how it would be adjusted to satisfy the possibilities of financial services?development as well as the steps taken when considering the launch of the financial services products. This report is based on my own research by reading Sainsbury's annual report, its web site and the discussions among the experts and professors, along with physically going to Sainsbury's supermarket and getting some printed materials. The mission of Sainsbury's Supermarkets is to be the consumer's first choice for food, delivering products of outstanding quality and great service at a competitive cost through working faster, simpler and together. A, The Marketing Mix Since early in 1996, the City was criticizing Sainsbury's for allowing Tesco to get so far ahead of the game in terms of customer service, loyalty and perceived price competitiveness. Sainsbury's was also accused of not promoting itself sufficiently and while running many similar customer initiatives as Tesco, it has failed to take the lead or develop unique products or services. Further to this, it has showed itself to be "unresponsive?in a fast moving market. Therefore, Sainsbury's adjusted and developed its mission. In order to achieve its new mission, which is to rebuild its UK food retailing business. The company changed its marketing strategy and has successfully sold its Homebase DIY chain in the UK and its business in Egypt. This enables the company to focus the Group on food retailing and related activities. Apart from this, the current Marketing Mix ?product, price, promotion and place is being improved to meet its new mission. Let me talk about them in details. A.1 Product In order to become the UK consumer's first choice for food, Sainsbury's Supermarkets announced its new corporate identity in February 1999, "Making life Taste Better?recognizes...
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I. Executive Summary – Mountain Mudd is an exclusive purveyor of coffee in South Dakota. With a franchise location located at Ellsworth Air Force Base in the Base Exchange parking lot. We serve a wide variety of coffee and frozen coffee beverages. Mountain Mudd has been in operation since December 2001. Its average sales are $300-$400 per day. This marketing plan covers how to increase and maintain a constant sales rate of $400 per day. Mountain Mudd currently operates Monday-Saturday 6am-5pm. Plans include, increasing hours of operation to serve customers that visit the Education Center until 11pm Monday-Thursday. Mountain Mudd does not entertain any comparable competition within 10 miles. We plan to have all equipment in good standing operation and employ a part-time handyman to service any malfunctioning equipment to serve all of our customers needs. We do not plan on increasing prices, as current prices are in-line with the market. We currently have three employees and plan to hire one more to cover evening shifts. All supplies will be stocked on a weekly basis, as compared to the bi-weekly basis currently. We plan to utilize the services of UPS to replenish low stock on a weekly basis as compared to the monthly stock we receive now. We will not turn any customer away because we are out of a certain supply. The only major modifications being made to our current marketing plan is how stock and supplies are replenished. Minor modifications are being made to operating hours and training procedures. II. Environmental Analysis a. The marketing environment 1. Competitive Forces-Our major competitor is AAFES Shoppette. They offer more services at one site than Mountain Mudd. They do not offer quality coffee at their site, rather convenience coffee from a drip pot. Their strengths include; longer operating hours, lower prices, and more products...
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