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MSc. FOUNDATIONS OF MARKETING
(MAN4146M)
MODULE LEADER – MARTIN HALEY
10024767UB Number
FULL TIMEAttendance Mode
11th OF JANUARY, 2011.Date of Submission
Statement of AuthenticityI certify that this assignment is a result of my personal work and does not exceed theword count notified.
Word Count: 1473(Excluding Appendices/Bibliographies, tables and diagrams)
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EXECUTIVE SUMMARY:-
In brief the purpose is to market a new innovative hot chocolate product in a food-beverage
industry for RLL. The product is a hot chocolate drink with extensive flavour collection.
RLL Company is one of the largest market share holders in the tea industry in UK. It is best known
for its tea and coffee sector exploits, RLL, is certainly one of the giants in the hot drinks industry of United Kingdom.
Today, RLL has an excellent reputation in the hot drinks industry and has ambitious plans to
further grow the brand. In the recent years the hot drinks industry has seen constant growth with
an 8.1% increase in the years 2005-2009. Moreover, the forecasted future sales indicate a 10.8%
increase in the industry for the next five years.
“Silk”, a hot chocolate drink is the first food-beverage industry trial by RLL with a view to expand
the brand in all genres of the hot drinks industry, following their exceptional exploits in the tea and
coffee market.
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INTERVIEWEE REACTIONS :-
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Interviewee(s) 1 2 3 4 5 6
/Question(s) Interviewee 1,
Female, 21 yrs.
Old
Interviewee 2,
Female, 46 yrs.
Old
Interviewee 3,
Male, 66 yrs.
Old
Interviewee 4,
Female, 66 yrs.
Old
Interviewee 5,
Female, 46 yrs.
Old
Interviewee 6,
Male,48 yrs. Old
1 – Do you drink
Hot Beverages?
I like a nice
chocolate drink
now and again
as a bit of an
indulgence youknow to pamper
myself.
Yes I drink coffee
a lot at work and
at home
Yes I’m a tea
drinker –can’t
get enough of
it
Oh yes I love a
cup of tea when
I get up in the
morning –sort of
gets the oldbody going. By
the way I also
love a nice
chocolate drink
before I go to
bed –you know
the sort, the one
you make with
milk. Sort of
relaxes you
Yes I drink a lot
of tea
Yes I drink tea in
the main but I
do like those
chocolate drinks
now and again
2 – Why do you
drink such
Beverages?
As I said I like a
nice chocolate
drink as a real
indulgence –
when I’m not on
a diet though
I drink coffee
because it gives
you a lift during
the day –it must
be the caffeine
I don’t know
just love the
taste –I’ve
always drunk
since I was a
nipper in the
war
I just said I find
tea refreshing
and milky
chocolate
relaxing
Don’t know just
always have but
I’m changing
the type of tea
to a herbal
variety no
caffeine in it
I’ve always
drunk tea ever
since I was a
nipper, but I like
to indulge
myself now and
again with a
nice milky
chocolate drink
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INTERVIEWEE AUDIT :-
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Table 1: Spread-sheet analysis showing the inte rviewees responses to the Silk Marketing R esearch :-
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Interviewee(s) 1 2 3 4 5 6
/Question(s) Female, 21 yrs.
old
Female, 46 yrs.
old
Male, 66 yrs.
old
Female, 66 yrs.
old
Female, 46 yrs.
old
Male,48 yrs. old
1 – Hot
Beverages?
Chocolate Coffee (Work
and Home)
Tea Tea &
Chocolate
(mornings and
evenings)
Tea Tea & Chocolate
2 – Why Hot
Beverages?
Self-indulgence Stimulant Taste, Habitual Tea –
Refreshing,
Chocolate -
Relaxing
Habit –
Changing type
to herbal
Habitual, Milky
flavour - before
bed,
indulgence.
3 – Shopping
Areas?
Supermarket/Wee
kly
Secondary
buyer- Jill,
coffee shop
Secondary
buyer – Gillian
at the Co-op
Corner shop Local Health
Food Store
Supermarket,
secondary
buyer – Wife
(Ros)
4 – Influential
Aspects?
Thick, Rich
flavour, Smooth
texture,
Unsweetened,
Diet versions
Coffee Aroma Strong taste,
Brand loyal
(red-label) and
Gillian
Brand –
Twinning’s and
Cadbury; Add-
Milk type of
chocolate
Taste, Non-
Caffeine variety
Price - Anything
on offer, Try
anything new
5 – Would you
consider buying
called “silk”?
Yes No No No- Tea, Yes -
Chocolate
Yes - Chocolate,
No - Tea
Yes
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INTERVIEWEE AUDIT:-
Table 1 .1 : Spread-sheet showing the (Agree/Disagree/Interesting )bifurcations to the Silk Marketing
Research:-
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Interviewee(s)
/Question(s) Agree Disagree Interesting
1 – Hot Beverages? Congeniality Factor of Hot
Beverages in all the cases.
Discrepancies in the Choice of
Beverages (Tea, Coffee & Hot
Chocolate)
Motivational Interests
( Indulgence, Self Pampering,
Relaxation), Locations (Work
& Home), Health
Consciousness ( Rejuvenation
& Diet Factor), Heavy/LightDrinkers
2 – Why Hot Beverages? Personal Welfares (Real
Indulgence, Lift during a day,
Relaxation and Refreshing)
Dissimilarities in selection of
beverages (Tea, Coffee & Hot
Chocolate).
Alteration from tea to herbal
variety, Childhood Habit, Diet
Factor
3 – Shopping Areas? Supermarket, Coffee Shop,
Local Health Shop, Co-op &
Corner Shop
Consumers and Buyers differ, Location (Supermarket,
Coffee Shop, Local Health
Shop, Co-op & Corner Shop) &
Situation (Secondary buyer)
based modifications.
4 – Influential Aspects? Texture, Taste, Flavour, Aroma
and Brand Image
Personal Beliefs (Offers &
Discounts) and Choice
Criteria’s
Motivational Differences
(Offers, Anything New in the
market)
5 – Would you consider
buying called “silk”?
Yes, if chocolate drink “Silk”, Name influences the
consumers to buy or reject
the product
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INTERVIEWEE AUDIT : - SEGMENTATION 1:- INTERVIEWEE AUDIT: - SEGMENTATION
2:-
Table 2: Drinkers and Non Drinkers of Hot Chocolate :- Table 3: Demographics of Hot
Chocolate Drinkers:-
Gender Sectioning :-
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Hot Chocolate
drinkers
Non – Hot
Chocolate
drinkers
1– Why Hot
Beverages?
Self-indulgence,
relaxant, Milky
flavour
Stimulant,
taste, habitual
2 – Shopping
Areas?
Supermarket,
corner shop,
secondary
buyer
secondary
buyer, coffee
shop, health
shop, co-op
3 – Influential
Aspects?
Flavour,
texture, diet
version, price,
taste
Aroma, Strong
taste, brand,
4 – Would you
consider buying
called “silk”?
Yes No
Female Male
1 – Why Hot
Beverages?
Self-indulgence,
relaxant,
Milky flavour,
taste
2 – Shopping
Areas?
Supermarket,
corner shop,
secondary buyer
supermarket,
secondary
buyer,
3 – Influential
Aspects?
Flavour, texture,
diet version,
price, taste
Taste, price
brand,
4 – Would you
consider buying
called “silk”?
Yes Yes
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Interviewee(s) MALE FEMALE
/Question(s) Agree Disagree Interesting Agree Disagree Interesting
1 – Hot
Beverages?
Affirmative on
the consumption
of hot beverages
Different
Preferences of
hot beverages
Heavy hot
beverage
drinkers
Unanimous
Agreement
Variations in
Choice of
Beverages (Tea,
Coffee,
Chocolate)
Heavy/Light
Drinkers
2 – Why Hot
Beverages?
Milky Flavour,
Taste
Situational
Differences
(Drinking since
nipper at war,
Childhood
Habit)
Indulgence,
Personal
Satisfaction
Mental
Upliftment
Choice
Criterions
(Indulgence &
Taste)
Habitual Change
,
Diet Factor
3 – Shopping
Areas?
Secondary Buyer
(Wife is the
primary buyer)
Supermarket
and Co-op
Low
Involvement in
buying,
Dependency on
primary buyer
Primary Buyers Dissimilar
Locations
(Supermarket,
Coffee Shop,
Corner Shop)
Weekly
Purchase,
Shop timing
preferentialism
4 – Influential
Aspects?
Primary Buyer,
New product,
Brand image,
Taste
Choice Criteria
(Taste, Brand
image, Price)
Majority
Influenced by
Taste
Choice Criterion
(Brand Image,
Aroma, Taste)
Health
Consciousness
and Locations
(Work & Place)
5 – Would you
consider buying
Not a suitable
name for tea
Purchase
(Preferences)
Choice Criteria
of Self Image,
Not an apt
name for tea or
Circumstantial
differences in
“Silk”, as a
name
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Table 3.1: Demographics of Hot Chocolate Drinkers:-
Gender (Agree/ Disagree/ Interesting) Tabular Representation:-
INTERVIEWEE AUDIT: - SEGMENTATION 3:-
Table 4 : Demographics of Hot Chocolate Drinkers:-
Age Distribution:-
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Young (15-24) Middle-aged (45-54) Old (65+)
1 – Why Hot Beverages? Self-indulgence Milky flavour Relaxing
2 – Shopping Areas? Supermarket Supermarket, secondary
buyer
Corner shop
3 – Influential Aspects? Flavour, texture, diet version Price, promotions Brand
4 – Would you consider
buying called “silk”?
Yes Yes Yes
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Interviewee(s
)
Young (15-28) Middle Aged (45-54) Old (65+)
/Question(s) Agree Disagree Interesting Agree Disagree Interesting Agree Disagree Interesti
ng
1 – Hot
Beverages?
Drinkers of
Hot
Beverages
No
Informati
on
Self-
Pampering
&
Indulgenc
e
Analogous
Likability
for Hot
Beverages
Choice of
Beverages
(Tea,
Coffee, Hot
Chocolate)
Heavy
Drinker,
Locations
(Work &
Home)
Affirmativ
e on
drinking,
primarily
tea
One
preference
for
chocolate
drink
Heavy
drinkers
2 – Why Hot
Beverages?
Indulgence No
Informati
on
Diet
Factor
Rejuvenatio
n (Lift
during a
day),
Indulgence,
Milky
Flavour
Circumstan
ces
(Childhood
Habit,
Nipper at
War)
Change
from Herbal
to tea
Taste,
Refreshing
Choice of
beverage
Drinking
Since
Nipper at
war
3 – Shopping
Areas?
Supermark
et
No
Informati
on
Weekly
purchase
with
grocery
Buying
from
various
outlets
Locations
(Supermark
et, Corner
Shop,
HealthShop)
Difference
in the
consumers
and buyers
Various
Outlets
Locations
(Supermar
ket, Co-
op)
Shop
Timings
4 – Influential
Aspects?
Flavour,
Texture
No
Informati
on
Less
Sweet,
Diet
friendly
version
Personal
Beliefs
Various
Beliefs
(Aroma,
Offers,
Taste)
Health
Consciousn
ess
Brand &
Taste
Dissimilar
Brands
(Red
Label,
Twinning)
Influence
d by wife
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Table 4 .1: Demographics of Hot Chocolate Drinkers:-
Age Distribution (Agree/ Disagree/ Interesting) Tabular Representation:-
INTERVIEWEE AUDIT: - SEGMENTATION 4:-
Table 4 : Demographics of Hot Chocolate Drinkers:-
Behavioural Segmentation :-
Hot Chocolate drinkers/non-
drinkers
Interviewee
(Young Female)
Interviewee
(Old Female)
Interviewee
(Middle Aged Male)
Benefits sought Self-indulgence, smooth
texture, rich flavour, diet
version
Relaxing, convenience,
quality, brand, milky flavour
Milky flavour, price
promotions
Purchase occasion Self-buy, weekly at the
supermarket
Self-buy, corner shop Secondary buy – Ros, wife,
supermarket
Purchase behaviour No information given Solos buyer Innovator – buy anything
new
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Usage Light drinker Heavy drinker Light drinker
MARKETING MIX:-
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Gender Age Behaviour
Female Male Young
(15-28)
Middle-
aged (45-
54)
Old
(65+)
Benefits
sought
Purchase
Occasion/Behavi
our
Usage
Product The profound
female
sectionsought
features like
smoothtexture, rich
flavour, milky
and diet
variety of HC
that did not
differ in taste
and quality
with the non-
dietary HC.
And sought HC
to help relax.
Silk is a good
brand nameand is
acceptable by
all female
segments.
The male
segment
are seek for
a drink that
makesthem relax
and also
sought a
milky
flavour
variety
A smooth
texture,
rich in
flavour, diet
versions of HC that did
not differ in
taste with
the other
versions of
HC
A milky
flavour
Is driven
by brands
and liked
an add-
milkversion of
HC
rich in
flavour,
relaxing,
smooth
texture,diet
versions,
indulgence
Solos buyers and
innovators
The Young
Female and
the Middle
aged man
are relativelylight
drinkers. In
comparison,
Old female
section
consumes
more hot
chocolate
and are
heavy
drinkers.
Price No information
was given
This
segment
No
information
Price
discounts
No
informatio
Price
discounts
No information
was given
No
information
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CUSTOMER AUDIT:-
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i) Who is important? For the purchase of Silk, the buying decision may be
individualistic or could be based on collective decisions
made by a family and it can be described in 5 ways as
the i) Initiator ii) Influencer iii) Decider iv) Buyer v)
User.
The Female group seems to possess all the attributesand therefore their buying decisions are individualistic.
In the case of the Male group, the wife is the main
influencer and buyer and the middle aged man could
be the initiator and decider and the couple are the
users of the product.
ii) How do they buy? This is known as the decision making process starting
from Identifying the problem to information search
evaluation then purchase. The consumers were more
influenced by the flavour and self-indulgence. Male
Segment is more interested in what was on offer but
all the segments are interested in the flavour and
texture since hot chocolate is a low involvement
commodity and purchase can easily be influenced by
emotions. Quality is essential.
iii) What is their
choice criterion?
The consumers choice criteria can be classified
into the 4 types: - Technical, economic, social
and personal.
Technical – Taste - e.g. Female who loved Hot
Chocolate for the smooth texture and rich flavour.
• Reliability
• Performance
• Convenience
Social – Price - e.g. Male who would buy when thereare promotion and affordability
• Value for money
Economic – Status - e.g. Female who was brand-
oriented
• Social belonging
Personal- Self image
• Ethics
• Emotions
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INTERNAL AUDIT:-
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Men Human Resources have always been a point of
reckoning for RLL. In the past, as well as today it
holds firm with skilled operational departments
such as the R&D, NPD and Sales. RLL also
possesses an eminent management andproprietary team with the existence of Managing
Director, Sales Director, Group Finance Director,
Production Director and Marketing Director.
Money RLL possesses an undisputedly resilient financial
background. It is an existing market leader in the
tea industry with average sales revenue of 170.3 M
pounds and 26% market share mentioned in thepre-budget report. Its tea brand GP Tops also has
an inevitable 98% awareness in all genres of
customers signifying its strong brand image.
Moreover, the marketing director has also
confirmed the company to be equipped with skills
and resources for the launch of their new product,
“Silk”.
Machine The production director affirmed the unit’s ability to
incorporate an additional line for Silk and the cost
amounts to approximately 1M pounds which will
cover the cost of production, packaging and design.
Marketing – 4p’s Product– RLL possesses an intriguing product
range of market leading brands such as GP Tops
(Tea Bags) and Instant Tea. “Blue Mountain” gives
positive signs with a 54.68% increase in last 3
years in the coffee sector. It is a renowned high
quality brand with only the food beverage sector to
be ventured. “Silk”, thereby will be a great addition
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COMPETITOR AUDIT:-
FRAMEWORK: - PORTER’S FIVE FORCES
➢ Entr y Barriers : -Penetration in a new market always has barriers to entry. Food-
Beverage market comparatively also possesses barriers but on a low count. It has
threats from huge companies who can venture in the food-beverage market
possessing all the resources justifying it. The brand also has an easy distribution
channel access.
➢ Supplier power : Suppliers are believed to be highly reliant on retailers which
clearly state the presence of numerous suppliers in the market. Any other specific
information is not mentioned in the case.
➢ Rivalry within industry : “Silk” as a product has to counter entry barriers as it is
a new entrant in a competitive market. Brands like Nestle, Wander and KJS who
possess majority of the market share will be an obvious barrier. “Silk” is an
undifferentiated product backed by the brand image of RLL but still has to
contend with occurrences such as Price Wars, Retaliation from existing brands.
➢ Buyer power :Buyer power is medium in the present scenario. On one hand,
buyers have the edge by knowing that the distribution is heavily reliant on the
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retail sector and also the threats of retailer’s integration into the industry. But, the
impact of our brand on the market leaves them with no choice but to showcase
our brand especially with limited food beverage producers in the market.
➢ Substitutes :The threat of substitutes always surrounds the marketing existence of
a new product. There is a direct impact of any price variation on the other genre
of beverage. Moreover, the switching cost possessed is also low and in such a
susceptible market the customer willingness is very vibrant. Price also is a very
decisive factor in the longevity of the product as low involvement products are
always price affected.
MACRO AUDIT:-
PEST:-
Political/Legal Force s:-
➢ Political Forces No specific information provided in
the case study
Economic Forces :-
➢ Economic growth The economic breakdown in the
recent years has caused major issues
in the market stability. The GDP has
considerably fallen leaving all the
markets in a state of turmoil.
Government should initiate proper
measures against this negative notion
and help companies to revive
themselves out of the situation.
➢ Unemployment and Recession Unemployment also stays a deciding
factor in the purchase of the product.
Government incentives can create
new ways to combat this problem and
thus enable consumers to still buy our
products.
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Ecological/Physical/Environmental Forces:-
➢ Environmental Regulations Environmental issues also affect the
existing marketing decisions. The
foremost issue is of the carbonemission which causes trouble and the
people agree there purchasing
activities to be affected by the green
factor. It also has a positive impact on
companies as the less energy
consumed the less money to be paid.
New pest management legislation in
Europe could result in crop production
shifting to other countries and pricesfor commodities shooting up. This may
affect the cost of production of
beverages in RLL.
Socio-Economic Factors:-
Health consciousness Staying healthy and fit is the
notion at full flow these days.
People are much more aware to
avoid problems such as obesity
etc. and stay fit. It is also a
fashion fad to be slim and
thereby there is an increase in
the demand for diet versions.
RLL can leverage on this
opportunity and create a
healthier Hot Chocolate that will
appeal to the market.
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Population growth rate and age distribution The age group of 25- 54 is the
one to be targeted with an
average concentration of 62.75%
usage.The age distribution is
concentrated towards the age
band of 25- 54. And our targetmarket 15-24 – 12%, 45- 54 –
13% and 65+ - 4.4% totalling
about 29.4% of UK population.
Focusing on these target
markets will help grow out
market share and the product
sales
Technological Factors:-
Marketing RLL needs to look at the various
technological options available in
the market for boosting the
existence of the product.
Moreover, they can also use e-
facilities for an expansion and
customer database maintenance
Research & development RLL should needs to keep
researching on new technologies
and products and any new
innovation discovered can lead to
having a competitive edge over
rivals and vice versa
BUSINESS MISSION:-
“RLL is an esteemed organization and a market leader in the tea
industry. It acquires about 31% of the hot drinks market share. The
plan is to launch a new product named “Silk” in the food-beverage
industry and to gain a substantial brand share of 0-8% through
advertising, sales and NPD in a span of 3-5 years. It is also a
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multinational food company aimed at continually providing improved
premium products to its esteemed customers globally.”
MARKETING AUDIT:-
RLL is currently a major player in the tea sector in Hot drinks Industry and has achieved it through
high marketing orientation, high quality brand etc.
INTERNAL MARKETING AUDIT
EXTERNAL MARKETING AUDIT: - It includes two subsections namely
1) MACROENVIRONMENT: - PEST (Already discussed above)
2) MICROENVIRONMENT:-
Market Size:- In the year 2009, RLL occupied 31% of the hot drinks
market share in U.K, dominantly so the tea industry
comprises with a market size of 26%. It acquires a
meagre 5% market share in the coffee industry in 2009,
but its coffee brand “Blue Mountain” has shown a
staggering growth of 54.68% The food beverage
industry currently sections 8-10% of the hot drinks
industry with a steady growth.
Growth rate:- There has been slow but constant growth in the food-
beverage industry. The involvement of comparatively
less number of competitors in this market has not made
it outstandingly visible but it acquires a significant 8-
10% of the hot drinks industry and is on constant
increment year after year.
Market
trends:-
Market trends keep changing according to the number of
competitor increment/decrements. Price fluctuations
also cause numerous market changes. Social trends are
also of special mention in the case being held
responsible for frequently changing market trends.
SITUATIONAL ANALYSIS:–
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SWOT Analysis:-
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Strengths:-
1. Well established brand name
2. High quality brand of products
3. Price leaders
4. Strong relationship with retailers
5. Financially strong
6. Highly marketing oriented
7. Sustainable growth rate
8. Resourcefully Equipped
9. Customer Knowledge
10.Low Marketing cost compared to
competitors
Weaknesses:-
1. Heavily reliant on the retailers
2. Undifferentiated product
3. Weakest link in the competitor
analysis is in the area of New
Product Development.
4. Lack of Involvement in the food
beverage industry
Opportunities:-
1. Untapped emerging market
2. Increasing sales growth in the food
beverage industry
3. Weakening demand for substitutes
4. Undeveloped products and brands.
5. Low level of competition in this
sector
6. Lack of interest of the competitors
in product development
7. Increasing trend of Instant drinks
8. Positive response of people on the
product name “SILK”
Threats:-
1. Strong competitors e.g. Nestle,
KJS
2. Own Label products
3. The health consciousness
4. Prolonging economic recession
5. Potential increment in the
number of competitors
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ANSOFF MATRIX :-
Existing Markets New Markets
Existin
g
Produc
ts
Market Penetration
1 - Utilising our high marketing
orientation to the maximum
2- Relationship with retailers to be
exploited to gain customer attraction.
3- Well established brand image to be
used
4- High quality brand of products
5- Price leader status
6- Less Product innovation in hot
beverage industry
7- Sustainable growth rate
8- Financially Strong
Market development
1- Financially strong
2- Positive relationship with
retailers in the market
3- Resourcefully equipped
4- Customer Knowledge
5- Increasing trend of instant
products
New
Products
Product Development
1- Usage of Brand Image and
recognition
2- Increasing sales growth in the
food-beverage industry
3- Usage of the resourceful
relationship with the retailers
4- Low level of competition
5- Financial capability
6- Usage of high level market
Diversification
1- Creating a malted drink
and exploring other
markets outside the UK
2- Trying out new products
in a new market
3- Introducing silk otherparts of Europe, target
the children
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RLL, a company possessing tremendous reputation, brand image and exquisite
resources to undertake any operation should employ its semantics on promoting their
new product “Silk” in the existing market. The company is fully equipped and ready
to venture in the new market of food-beverage industry. RLL has the skill and
resources to become a majorly reckoned force in this sector also, as it has already
done in the tea industry.
ATR MODEL:-
I
✔ Low Involvement of our product reassures the amendments required to
successfully conduct the remunerations needed to make the product a
triumph.
✔ Advertising strategies need to be at the top notch to attract customers.
✔ Best possible shelves in the supermarkets should be occupied with the
product at the time of launch using the positive retailer relations.
✔ The launch should be complemented with promotional offers & contests.
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AWARENESS
AWARENESS
REINFORCEMENT
REINFORCEMENT
TRIAL
TRIAL
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MARKETING OBJECTIVES:-
➢ Specific target audience for the product would be all aged females.
➢ All the people who are hot chocolate drinkers would be the
measurable objective.
➢ Growth Rate for the upcoming years would be 0%-8 % would be an
achievable segment.
➢ Realistically, 60% of the brand consumers should be within the age
range of 15-24 and 40% within the age 65 years and above.
➢ The estimated time to gain the above mentioned objectives is 3-5
years.
“To launch our hot chocolate drink, “Silk”, amongst the young and
old females with a brand share of 60% within the ages 15-24 and
40% within 65+ and above and growing our brand share from 0% -
8% in 3 – 5 years.”
Strategic thrust - Strategic objectives
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IMPLEMENTATION:-
THE MARKETING MIX:-
Product The product “Silk” can be categorised into 3 portions
according to the target market: The Core benefit – a hot
drink to relax or to indulge in. The Expected product -
Product
variety
Various versions of hot chocolate can
be introduced in the market comprising
of a mixture of Milk, Malted and diet
versions of the product. “Silk”, thereby
can be explicitly having a differentiated
launch with all versions installed.
Quality The quality is an expected part of the
product should be a key factor of the
product to promote a re-enforcement.
Target market (the females) stressed
on it.
Design The design and packaging is essential
to lure our target market especially the
young females.
Features The healthy aspect of Silk is an
augmented feature that gives leverage
over competitors.
Brand name “Silk”, as a brand name appealed to all
the hot chocolate drinkers and will be asplendid contributor as the products
representative in the market in terms
of the customer attraction and sales
outcome.
Price RLL’s high quality of products and lack of competition
shown in the food industry as shown in the SWOT
analysis. High price will most likely be an option but price
discounts can be used initially to gain market share.
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target market the distribution channels would be through
the retailers as they have a large number of outlets. E.g.
Benefits of switching unit’s incentives could be offered to
such as free gifts, free tickets etc. Coverage – The
Supermarkets should be concentrated the most with
majority of the sales happening there. Other outlets such
as the Corner Shops and Coffee Shops can also be
considered.
Promotion Sales promotion: - Samples for taste for attaining short-
term incentives to encourage the purchase or sale of our
product “Silk”, E.g. Price Deals, Brand Loyalty rewards,
Coupons, Sweepstakes & Contests.
Advertising: - Extensive usage of various advertising tools.
E.g. Billboards, Newspapers, TV Adverts, Magazines &
Online Advertising.
Personal Selling: -Personal presentation by the firm’s sales
force for the purpose of making sales and building
customer relationships.
Public relations: -Building good relationships with the
company’s various publics by obtaining favourable
publicity, building up a good "corporate image", and
handling or heading off unfavourable rumours, stories,
and events. E.g. Press Release
Direct marketing:- Direct communications with carefully
targeted individual consumers to obtain an immediate
response and cultivate lasting customer relationships
CONTROL:-
Control features the Micro and Macro figurative:-
Micro:-4 P’s
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1) Product:
Product alterations are always an asset for the company when launching a
product. If the launched product doesn’t live up to the expectations then it can
be integrated with numerous flavors for attracting the people of all ages.
2) Price:
In a market comprising of less number of customers a product like “Silk”,
would face various atrocities like price wars and retaliation of competitors. To
combat such a situation, promotional offers, “Scratch and win” schemes can be
ventured out with to attain customer attraction and non-hampering of price.
3) Place:
Supermarkets being the main target areas can be a dodgy in response. “Silk” can be made available in other alternative locations such as renowned coffee shops,
theatres, work places, schools, colleges and various other public populated
places according to preference.
4) Promotion:
Advertising is always the best option to go about setting the people’s minds
according to our will. Strategic advertising tools such as billboards, TV Adverts,
Magazines, Newspapers, and Hoardings can be used for pertaining various
walks of people to get attracted to the product.
Macro:-
1) Political Factors should be considered and the daily happenings have to be taken
into account for time to time adjustment to pricing strategies.
2) Technological forces can be used to expand the variant product ranges all over
the national and international markets in the future.
3) Customer database should be maintained from the surveys and used for
improving product features yearly.4) Customer Feedback should be conducted through surveys should be conducted
on a quarterly basis to get the feedback of the performance issues and all issues
should subsequently be handled.
Summary of the Marketing Plan
RLL, the tea industry market leader makes its first launch in the food-beverage
industry. It plans to penetrate the new market industry successfully and gain a
substantial brand market share of 0-8% in due estimated time of its launch.
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Food-Beverage industry is a comparatively small but solid industry with its
market concentrations already reaching a significant 8-10%. “Silk”, is the first
food-beverage industry product for RLL. A company of RLL’s stature is
flatteringly equipped with all types of resources to launch the product and
sustain it in the new market. The company should immensely advertise their
product using the print and visual media interventions. It should use it brandimage and virtuous relations with the retailers to attract more customers
subsequently increasing their market sales.
Pricing strategies should also be employed with the extensive usage of
promotional offers, discounts, prize winning contests inclusions. The product
can be made superlatively popular and a huge success exploiting the already
esteemed image of RLL.
Contingency plan
An unconventional plan can always be convenient to a company for a product
being launched in a new market. If the conventional methods for “Silk”, don’t
work out as well as they were planned too, there is a methodology to survive the
wreck.
“Silk”, can be integrated with 3 or 4 designated flavours based on the taste and
preference of people of all ages in the market. The image of the product can bethen altered with hostile marketing with a view to target a certain section of
people and relate the drink to them in a pleasant manner to attract them to the
product. Plenty of offers can be introduced along with reward based strategies
on the purchase of every beverage to encourage more people to buy the product.
Moreover, the marketing plan is strong and should not require the secondary
assistance. But, with the ever changing priorities of people these days may be
this plan can resurrect the unlikely downfall of the primary marketing plan.
References:-
✔ Jobber, D. (2010), “Principles and Practice of Marketing”, 6 th edition. McGraw-
Hill Education.
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