Question

1. As the marketing manager of a company, you are entrusted to prepare a marketing plan to develop a new organic herbal tea brand that has health benefits.

a. Identify one marketing objective /goal for the above-mentioned product?

b. Which market segmentation would be most suitable to target your marketing strategies and explain reasons for selecting this market segmentation?

c. How would you apply marketing mix to satisfy the wants and needs of this target market? Discuss briefly.

2. Identify external environment forces that could influence the marketing strategies and briefly discuss the impact of these forces for industries noted below.

a. Fast-food

b. Mobile phone

Answer 1

1. One marketing objective for herbal tea is to achieve 15% market share of the herbal tea sales in the region.

2. Lifesyloe / Behavioural marketing segmentation would be the most suitable measure, because the herbal tea owing to its medicinl benefits is seen as a wellness product, which is suitable for health conscious customers or those who are suffering from lifestyle issues like blood sugar, hypertension and obesity. These customers are  shifting away from cabonated, sugar laden drinks, and are swiching to the products that are considered as helpful to control obesity, reduce the effects of ageing and improve metabolism.

3. The marketing mix should be comprised of

(i) Product - There should be differentiating factors like place of origin, nature of product ( organic), facts about the benefits for consumers, associated with product.

(ii) Price -Goven the current condition of the market, the product should be competitively priced, preferably on premium side.

(iii) Place - Most consumers would be found in urban, upscale areas in middle - Upper middle class households.

(iv) Promotion - As the target market is between 35-75 years, the mix should be a combination of traditionl ( newspaper, radio / TV) ad, sales promotion and some digital marketing for targetting younger consmers.

(v) Packaging - The - It should be done with eco friendly material such as paper, cardboard, wood etc. in line with the product's proximity with nature.

2 The external environmental facotrs can affect the marketing strategy in following manner.

a. For fast food

(i) Huge competition from companies at different level of market, who are trying to grab pie of the market thriugh a variety of items

(ii) Research output which might build an opinion about the product and affect its sales ( such as data on obesity, lifestyle diseases and its connect with fast foods)

(iii) Statutory regulations which might force the makers to include a warning / advisery for consumers, that can affect sales.

(iv) Rising awareness levels in consumers, who may look for healthier products.

b. For mobile phones

(i) Advancement in technology which makes even the best items obsolete within one or two year, which needs differentiation and continuous change in product features

(iii) Huge competition between a number of equaly competent players, which calls for unique ways to reach and convince customers.

(iii) Market can be divided in a number of different segments, and a new approach is needed for each one of these.

(iv) Socio cultural changes and the role of mobile phones in it. This can be used in advertisement strategy to gain advantage.