Marketing selling sweet corn to Europeans is simply getting

Marketing Management 3 Assignment

Jabulisa Mazibuko

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Student number: 18 11 76
Course code: BBA 3 – MKMT 3
Number of pages: 9

 

 

 

 

 

 

 

Introduction

 

Jean LaRoche of Strasbourg had worked in the
United States for over 10 years. Being an entrepreneur at heart, Jean has been
considering the idea of commercially growing sweet corn and selling it in
Europe. The purpose of this assignment is to address the challenges that Jean
might face trying to enter the market.

 

The hardest part of selling sweet corn to
Europeans is simply getting them to taste it. Jean constant has to fight the
misconception that sweet corn is the same as the field corn grown to feed
livestock. Therefore to prepare for his new business venture, Jean
must implement a number of branding strategies which will help him to attract
customers to the brand.

 

This assignment will explain
how to choose a brand name Jean’s frozen corn kernels
by illustrating a brand naming process and its advantages for Jean’s new brand.
The brand naming process will help Jean finding the best brand name for his
product.

 

Jean will then need to position his product in
the market. Pricing strategies will help him determine the right price for his seasonal fresh corn. There is a number of
pricing strategies available such as penetration, skimming, competition, product-line,
bundle, and premium. Pricing is one of the most important elements of the
marketing mix, as it is the only element of the marketing mix, which generates
a turnover for the organisation. It is important that organisations balance the
relationship between supply and demand so that they do not lose sales or
business in the long term.

 

The promotion mix
is a framework used to inform, persuade and remind the target market and other
organisational stakeholders. It is referred to as the marketing communication
mix because it is made up of different elements, namely advertising, sales
promotions, public relations and personal selling. Jean will use the promotion
mix to market his new brand corn cob briquettes and describe how he will
promote them to the market. It is important to use the correct blend of the promotional mix so that
the business will continue to gain customers and achieve both short and long
term success.

 

There is a possibility that the brand could fail,
Jean will have to identify the common mistakes made by brand managers and
explain how these could be overcome in his business.

 

In summary, if Jeans business is to succeed,
Jean will have to understand the relationship between branding to
create an image of the company, product, or service in the marketplace   and marketing to position the brand in
the marketplace.

 

 

 

 

 

Table of Contents
Question 1. 4
References. 9
 

 

Figure 1: The brand naming process. 4

Figure 2: Types of pricing strategies. 5

 

Table 1: The brand naming process for Jeans Corn
Company. 4

Table 2: The application of the promotional mix to
promote the company’s new brand of corn cob briquettes  7

Table 3: Common mistakes made by brand managers and
how to overcome them.. 7

 

 

 

 

Question 1

1.1  Figure 1: The brand naming process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1: The brand naming process for Jeans Corn Company

 

Process

Procedure

Define brand
objectives

Jeans brand objectives are as follows: To
commercially grow sweet corn and sell it in Europe; importing hybrid seeds to
grow in France; to get an exclusive contract with a US seed company for the
Super Sweet hybrid seeds; getting Europeans to buy and taste American sweet
corn.

Generate names

These names have
been generated using the company’s objectives: Sweet Hybrid Seeds; American
Sweet Corn and French Hybrid Corn Seeds

Screen initial
name
suggestions

The following brand
names have been eliminated due to double meanings or difficulty to grasp:
Sweet Hybrid Seeds is eliminated due to its vagueness and French Hybrid Corn
Seeds because the words ‘French’ and ‘Hybrid’ are give the brand name a
double meaning and it is too long to position on the market.

Evaluate possible
screened names

American Sweet
Corn (ASC) is Jeans new company name. Jean will have to do an international legal search until
the brand name is screened in all countries.

Conduct consumer
research on preferred
names

Europeans might perceive Jean brand name
differently. American Sweet Corn is a strong name because it is easy to
remember and defines the product, but how Europeans perceive Americans and
the food they eat could either be an upside or a downfall to the brand.

Select final name
to be
Used

The final brand name is American Sweet Corn
(ASC) and it will enable the organisation to achieve its ultimate branding
and marketing objective which is getting Europeans to buy and taste American
sweet corn.

 

 

1.2 Figure 2: Types of
pricing strategies

Pricing strategies

Definition

Examples

Penetration

Here
the organisation sets a low price to increase sales and market share. Once
market share has been captured the firm may well then increase their price.

A
television satellite company sets a low price to get subscribers then
increases the price as their customer base increases.

Skimming

The
organisation sets an initial high price and then slowly lowers the price to
make the product available to a wider market. The objective is to skim
profits of the market layer by layer.

A
games console company reduces the price of their console over 5 years,
charging a premium at launch and lowest price near the end of its life cycle.

Competition

Setting
a price in comparison with competitors. In reality a firm has three options
and these are to price lower, price the same or price higher than
competitors.

Some
firms offer a price matching service to match what their competitors are
offering. Others will go further and refund back to the customer more money
than the difference between their price and the competitor’s price.

Product-line

Pricing
different products within the same product range at different price points.

An
example would be a DVD manufacturer offering different DVD recorders with
different features at different prices e.g. A HD and non HD version. The
greater the features and the benefit obtained the greater the consumer will
pay. This form of price discrimination assists the company in maximising
turnover and profits.

Bundle

The
organisation bundles a group of products at a reduced price. Common methods
are bought one and get one free promotions or BOGOFs as they are now known.
Within the UK some firms are now moving into the realms of buy one get two
free can we call this BOGTF I wonder?

This
strategy is very popular with supermarkets who often offer BOGOF strategies.

Premium

The
price is set high to indicate that the product is “exclusive”

Examples
of products and services using this strategy include Harrods, first class
airline services, and Porsche.

Psychological

The
seller here will consider the psychology of price and the positioning of
price within the market place.

The
seller will charge 99p instead £1 or $199 instead of $200. The reason why
this methods work, is because buyers will still say they purchased their
product under £200 pounds or dollars, even thought it was a pound or dollar
away. My favourite pricing strategy.

Optional
Pricing

The
organisation sells optional extras along with the product to maximise its
turnover.

This
strategy is used commonly within the car industry as I found out when purchasing
my car.

Cost
Plus Pricing

The
price of the product is production costs plus a set amount (“mark
up”) based on how much profit (return) that the company wants to make.
Although this method ensures the price covers production costs it does not
take consumer demand or competitive pricing into account which could place
the company at a competitive disadvantage.

For
example a product may cost £100 to produce and as the firm has decided that
their profit will be twenty percent they decide to sell the product for £120
i.e. £100 plus 100/100 x 20

Cost
Based Pricing

This
is similar to cost plus pricing in that it takes costs into account but it
will consider other factors such as market conditions when setting prices.

Cost
based pricing can be useful for firms that operate in an industry where
prices change regularly but still want to base their price on costs.

Value
Based Pricing

This
pricing strategy considers the value of the product to consumers rather than
the how much it cost to produce it. Value is based on the benefits it
provides to the consumer e.g. convenience, well being, reputation or joy.

Firms
that produce technology, medicines, and beauty products are likely to use
this pricing strategy.

 

Jean will use a product-line strategy to price different
products within the same product range at different price points. He sees
three different markets: fresh corn during the season; frozen corn kernels
throughout the year; and corn cobs pressed into briquettes that burn like
charcoal. He can get an exclusive contract with a US seed company for the Super
Sweet hybrid in which genetic manipulation dramatically retards the conversion
of the corn’s sugar into starch. Super Sweet varieties allow a properly
refrigerated picked ear of corn to stay perfectly fresh tasting for four to
five days. Therefore, Jeans frozen corn kernels will be more expensive since he
has to import the hybrid seed. Seasonal fresh corn will not be processed
therefore it will be much cheaper to produce and sell than the corn briquettes.
Consumers will have to pay more for Jeans frozen corn kernels since the  hybrid is about 30% more expensive to grow
than other types of sweet corn and yields only half as many ears per hectare,
about 20 000, as the other hybrids he has tried. This form of price discrimination assists the company in
maximising turnover and profits.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The promotion or
marketing communication mix is used to inform, persuade and remind the target
market and other organisational stakeholders. It is referred to as the
marketing communication mix because it is made up of different elements, namely
advertising, sales promotions, public relations and personal selling.

 

Table 2: The application of the promotional mix to promote the
company’s new brand of corn cob briquettes

 

Promotion mix

Summary

The application of the promotional mix to
promote the new brand of briquettes.

Advertising

Advertising is
the activity of attracting public attention to a product or business.

The advertising
of new corn cobs pressed into briquettes can be advertised in the newspaper or magazine,
broadcasted on radio or television, or sent using electronic media.

Sales promotion

Stimulation of sales achieved through
promoting positive experiences and getting customers to try the brand.

 

Coupons, giveaways price deals,
discounts, demonstrations and competitions are examples of sales
activities that can be used to promote the new brand of briquettes.
 

Public relations

The practice of
building and preserving goodwill with the community.

Publicity can be
used as a form of communication to promote charitable causes, and other civic
engagements.

Personal selling

Personal selling
is a two-way, communication process used to inform customers about new brands,
products and services and establish long-term relationships with the customers.

Face-to-face
selling and samples of the new product can be given customers to persuade
them to try the new product.

 

Table 3: Common mistakes made by brand managers and how to
overcome them

Mistakes made by brand managers
 

Solutions to mistakes

The meaning of a brand

Understand the brand meaning and the
appropriate methods to market products.

The brand’s promises

Analyse and evaluate marketing efforts to
decide which activities will provide better delivery of results.

Support the brand adequately

Employ a range of supporting brand marketing
activities.

Being patient with the brand

Market the brand consistently with a
positive attitude

Controlling the brand

Position the brand properly in correlation with
the consumers’ perceptions of value of the brand.

Balancing consistency and change in a brand

Encourage innovation in the brands image
and personality.

Understanding the complexity of brand equity
measurement and management

Implement brand equity management system to
ensure that marketing actions properly reflect the brand equity.

Conclusion

 

The brand naming process helps people name their brand, companies,
products, or services and can help shape the future and trajectory the
business. By illustrating a brand naming process, Jean has tackled the biggest
obstacle to selecting a name for his brand and creating an image of the company, product, or
service in the marketplace.

 

Pricing strategies refer to factors that help
the business determine the price point at which it can maximise profits on
sales of your products or services. When setting prices, a business owner needs
to consider a wide range of factors including production and distribution
costs, competitor offerings, positioning strategies and the business’ target
customer base. Jeans customers won’t purchase goods that are priced too high or
priced too low; therefore it is important that Jean balances
the relationship between supply and demand so that they do not lose sales or
business in the long term.

 

The promotion mix comprises of personal selling,
advertising, public relations, sales promotion, and direct marketing. Product
promotion is critical for every business due to the lasting impact promotion
has on the clients. It used to inform
and persuade the target market and other organisational stakeholders. Jean has
applied the promotion mix to promote his new brand of corn briquettes.

 

Using the right blend of the promotional mix
ensures that a business will

Customer relationship management is the
practice of making customer satisfaction the primary objective for
all strategies, systems, policies and procedures of the organisation. Any firm
with organisational challenges and technical issues would
benefit tremendously from applying the six principles of customer relationship management.
Dormont Manufacturing Co. applied these six principles to restructure
their employee compensation and merit system, provide training and support for
their staff and transform their organisational culture by sustaining their
products quality.

 

There are many issues the brand could face and those
mistakes will need to be solved if the brand is to continue gaining customers
and achieving success in both the short and long run. Jean LaRoche has
identified the common mistakes made by brand managers, and highlighted how
these mistakes could be overcome.

 

In summary, Jean LaRoche has the potential to
build a successful brand in France but without the proper positioning of his
product, he could fail.

 

 

References

Bonini, J. (2012, Noveember 02). What is the
Purpose of Marketing? Retrieved January 27, 2018, from IMPACT:
https://www.impactbnd.com/blog/what-is-the-purpose-of-marketing
 
Byczynski, L. (2015,
October 8). Pricing Strategies for Selling Your Produce. Retrieved
January 27, 2018, from Mother Earth News:
https://www.motherearthnews.com/organic-gardening/pricing-strategies-for-selling-produce-ze0z1310zpit
 
CEO, President.
(2014, Octoiber 02). Promoting Products: 5 Components of the Promotional
Mix. Retrieved January 23, 2018, from Linked In:
https://www.linkedin.com/pulse/20141002042202-284765029-promoting-products-5-components-of-the-promotional-mix
 
Francis. (2016,
January 19). The Promotional Mix Concept And The 5 Parts Critical For Its
Success. Retrieved January 19, 2018, from Promotional Mix:

 
Gordon, M., &
Foley, N. (2012, Februaury 24). The 8 Principles Of Product Naming.
Retrieved January 27, 2018, from FAST COMPANY:
HTTPS://WWW.FASTCOMPANY.COM/1819418/8-PRINCIPLES-PRODUCT-NAMING
 
Guest Contributor.
(2018, December 21). 4 Steps for Defining a Target Audience. Retrieved
January 11, 2018, from Print Mag:

4 Steps for Defining a Target Audience


 
Guest. (2011,
November 9). What is the Purpose of Branding? Retrieved January 27,
2018, from Spinweb: https://blog.spinweb.net/what-is-the-purpose-of-branding
Maguire, A. (n.d.). 6
Different Pricing Strategies: Which Is Right for Your Business?
 
Retrieved January 14,
2018, from Quick Books: https://quickbooks.intuit.com/r/pricing-strategy/6-different-pricing-strategies-which-is-right-for-your-business/
 
Miller, J. (2015,
August 20). BRAND NAMING PROCESS: HOW TO MAKE A BRAND NAME RESONATE.
Retrieved January 18, 2018, from Sticky Branding: https://stickybranding.com/brand-naming-process-how-to-make-a-brand-name-resonate/
 
Rachel Craig. (2015,
June 14). Branding 101: An introduction. Retrieved January 03, 2018,
from Rapid Formations: TheBlog:

Branding 101: An introduction


 
Russel, B. (2013,
January 21). Tesla Model S: The Disruptive Marketing of an Electric Car.
Retrieved January 15, 2018, from Science of Revenue:
Tesla Model S: The Disruptive Marketing of an Electric Car