Marketing is termed as the procedure of planning and implementing concepts, pricing, merchandising and distribution of commodities, services and ideas to develop the dealings that meet individual’s and business objectives. It is also taken as a managerial approach through which customers acquire what they need and desire by developing and exchanging offerings and value with others (Sheth and Sisodia, 2015). In this report, different aspects of marketing principles will be studied
Halo food is a renowned company that is known for offering cereal bars that fulfill the need of customers to consume high quality food. The firm also offers spanning energy bars, specialized diet bars, Low-Carb bars, chocolate enrobed snack bars and low glycaemic index products. In this report, benefits and costs of marketing orientation will be studied. Different macro and micro factors that impact the marketing decisions of Halo Foods will be described.
1.1 Various elements of marketing process
With the help of marketing process, Halo Foods tries to identify the emerging needs of customers and therefore, develops bars and other products accordingly. This further helps company in retaining the loyal customers and in attracting the new ones. The marketing manager of company also focuses on various elements of marketing procedure which are as follows:
Recognizing the marketing opportunities
It is an important process that helps the organization in identifying marketing possibilities that meet the requirements of customers in accordance with the changing tastes, preferences, market trends and needs of consumers (Marketing Elements. 2015). It can be explained like; with the increasing health consciousness among millennial, Halo Foods launched special diet bars.
Selecting the potential market
The marketing procedure of company is concerned with the selection of prospective market with having superior marketing possibilities to offer a wide range of offerings. With this aspect, firm decides to whom they want to sell its products. For instance, chocolate snack bars are for kids, low glycaemic bars for elderly, etc.
It refers to a well defined plan of action that helps the organization in achieving long term goals (Jobber and Ellis-Chadwick, 2012). It plays an important role in guiding the marketing efforts of Halo Foods that further ensures the success of business in future. It is significant for the marketing manager to consider long term vision, mission, core competencies, etc. while devising the strategy.
It means proper sequential steps that assist Halo Foods in attaining the framed objectives of business by applying planned strategy. Further, it involves allocation of resources, setting time frame to goals, preparing budget, etc.
They are short termed plans that help Halo Foods in achieving short term goals of business. Main aim of tactics is to enhance the sales of establishment by stimulating customers to buy the product (Sheth and Sisodia, 2015). It involves an effectual use of promotions, offers, discount, loyalty program, etc.
1.2 Evaluating the benefits and cost of marketing orientation in Halo Foods
Marketing orientation is an important approach that assists company in designing products as per the desires, requirements and preference of consumers. It further ensures proper functionality of product along with the skillfulness in production (Sheu, 2014). With this aspect, organization is able to build a distinct image of its brand in market and to create maximum customer loyalty. The marketing orientation of Halo Foods involves various costs and benefits which are as follows:
- Superior level of branding: With the help of marketing orientation program, organization is able to make constant modifications in its offerings that further help in building curiosity among customers with regard to products of Halo Foods. Further, company is able to build a unique image in the market (Marketing orientation. 2015).
- Marketing benefits: Being a marketing orientated entity, Halo Foods is able to interpret the market requirements and the way in which they can market the same. Further, marketing manager can communicate the customers about the way in which their product matches with the customer’s needs (Svatosová, 2013). Therefore, firm can develop emotionally affecting request in their television commercials and ads to encourage more business.
- Research Cost: In order to identify the emerging needs of customers, large number of funds is invested by company in conducting the market research and survey. Halo Foods hire sales executives that help in identifying new market trends, needs of users, etc. Further, to react accurately with the growing demand, company makes investment in market intelligence (Jobber and Ellis-Chadwick, 2012).
- Continuous Investment: Because of marketing orientation, Halo Foods is forced to make constant up gradation in the mode of production, technology and processes. Further, expenses are made on providing training to employees to use new techniques, marketing equipment, etc.
2.1 Various macro and micro factors that impact the marketing decisions of Halo Foods
Different intrinsic and extrinsic constituents present in the environment have their direct impact on the performance of organization (Gronseth, Gulbrandsen and Haugland, 2015). They are as follows:
- Customers: They are the heart of organization’s success as they consume the products of company and generate profits in return. The changing needs of customers stimulate firm to make changes in its offerings. To assure satisfaction among consumers, it is important for the firm to offer ethical products, value for the money paid, etc.
- Government: There are large number of rules and regulations framed by the UK government that are mandatory to be followed by company (Radebaugh, 2014). Further, company is required to pay tax and other duties on time to avoid legal actions against business.
- Economic: The change in economic variables like interest rate, household disposable income, GDP, GNP, etc. have a direct impact on the performance of company. Therefore, they should be considered while taking any business decisions. For example, increase in disposable income of individuals is likely to enhance the sales and demand of product of Halo Foods. Therefore, it should plan its production accordingly (Kuo, Ahn and Aydin, 2013).
- Technological: To sustain tough competition in the present dynamic market, it is important for Halo Foods to upgrade its technology and processes. If company fails to adopt new technology, it can cause dissatisfaction among customers, would reduce the sales and therefore, may affect the brand image.
2.2 Impact of buyer behavior on the marketing activities of Halo Foods
Buyer behavior refers to well defined process that is used by consumer during making the purchase decision. It refers to those components that stimulate the buyers to purchase the offerings of Halo foods over other competitors. Considering the buyer behavior, innovative marketing strategies can be developed so that maximum customers can be reached and satisfied. Further, marketing manager can also make viable changes in present strategy. Therefore, buyer behavior will help manager in reaching the customers within demographic and geographic segment (Smutkupt, Krairit and Esichaikul, 2010). Therefore, for reaching the consumers of demographic segment age of individual, its income etc can be taken as criteria. Therefore, for customers within age group 18-30 company can use digital marketing like, social media ads, engine optimization, mobile applications etc.
However, company can charge little high amount for offering technically advanced products offered to this segment. On the other hand, for elderly customers who are more health and price conscious, Halo foods can use effective marketing campaign. Therefore, low cost marketing technique like, ads in newspapers, television, posters etc can be used. In addition to this, to stimulate price concerned customers, company can use discount, sales, promotional offers etc. Further, marketing at local level can be used for targeting customer in particular location (Gronseth, Gulbrandsen and Haugland, 2015). Therefore, hoardings, ad on local television channels, newspapers etc can be used. Local taste and flavors can be added to give feel of particular region to customers. This will help in targeting customers emotionally.
2.3 Positioning strategy used by Halo foods
Positioning strategy will help of Halo foods in developing distinctive image of brand in market as compared to its major competitors. Therefore, marketing manager can consider following marketing strategy:
In order to encourage the sales of its wide rang of products, company can use price as a effective tool. Therefore, premium quality product can be offered by company at affordable prices to boost the sales (Varadarajan, R., 2010). For price concerned buyers, company can use coupons, special offers, discount etc. However, for status conscious buyers who relate price with quality and status symbol, company can charge high prices. Therefore, diet and energy bars can be offered at little high price.
To enhance the sales, Halo foods can highlight the unique attributes offered only by Halo foods. For instance, company can use organic food ingredients in its bars. In addition to this, new range of bars having fruit and vegetable extracts etc can be introduced.
3.1 Developing products to sustain competitive advantages
Competitive benefits refers to those perquisites available to Halo foods that assist it in performing finer in market in contrast to its competitors. With the help of these privileges company can develop a distinct image of brand in market. The major competitive advantage available to brand is in terms of ethical foods and feel that is offered by brand. Further, to sustain the competitive benefits, it is important for organization to modify its products as per the emerging needs of potential customers. For example, sugar free bars can be introduced for diabetic patients (Radebaugh, 2014). For elderly consumers, gluten products should not be offered etc. Likewise, for kids new flavours like, strawberry, blueberry, vanilla etc can be introduced. In this respect, organization can use standardized technique and equipments to prepare the special bars. The techniques and processes used for production should be upgraded for building competitive benefits. With the help of competitive advantage, company can develop brand loyalty among its customers and plan to attract new one. With the assistance of research and development, firm can identify new and prospective core competencies that can be availed by company. In this respect, marketing manager can focus on rising needs of consumers such as, online buying, home delivery, custom made bars etc. Therefore, company can use e-commerce as effective platform for offering its products (Gronseth, Gulbrandsen and Haugland, 2015).
3.2 Distribution system used by Halo Foods
Distribution system refers to organized procedure, systems and operations that is developed to help company in managing the movement of products and services from the originating point to the final consumer. The distribution system play an important role as irt help in reaching the target customers effectively. Therefore, company can use both online and offline distribution system for offering its products. Halo foods can develop online store for selling its wide range of bars and candies (Armstrong, Adam, Denize and Kotler, 2014). Organisation can also develop own dedicated stores in the convenient locations to target maximum customers. For instance, for reaching customers of age 16-26 company can develop stores near schools, colleges etc. Further, for targeting elderly customer who find problem in visiting stores, company can use online distribution and home delivery. In addition to this, to encourage women to consume bars of Halo foods, stores can be developed in residential areas, shopping centres etc. To attract, millennial company can use mobile applications for educating them about the ethical products offered by the brand.
3.3 Determining the prices for new products of company
The success of products depend upon the large extent on the prices charged by the company for its offerings. For instance, too high prices can result into low sales by price conscious customers while low prices can discourage high end customers to consume the offerings of the brand (Svatosová, 2013). Therefore, it is significant for the brand to set appropriate price for particular product. In this respect, organization can select following pricing strategy for its various products and services.
|Skimming||With this strategy, Halo foods can charge more prices at the launch of product and lower it with passing of some time.|
|Competition||As per this strategy, business can set prices of its offerings after viewing the prices charged by its rivals for the identical services (Pricing strategy, 2012).|
|Psychological||The organization use this pricing for having psychological impact on customers such as charging price less than a round figure. Such as, cereal bars for $1.99 rather than $2.00|
|Premium||This strategy is used by business to develop a superior image of its product in market. It help in targeting the high end customers.|
Hence, company can use premium and price skimming for the new range of dietary, low GI and Carb products. With this aspect, Halo Foods will be able to enhance its revenue. For other products, company can continue with competitive pricing policy.
3.4 Promotional policy for company
The promotional policy will help company in transmitting the value of brand to the target customers. Since, its inception that millennial buy products only after knowing the company information, users reviews etc. Therefore, company can use promotion to communicate the ethical products offered by the brand. With the help of promotional policy, company can encourage maximum customers to buy the products. Therefore, organization can use integrated promotional policy which enable use of modern and traditional marketing tools (Marketing and Promotion. 2012). In this respect, company can use online promotion, social media, engine optimization, mobile applications and review sites for attracting millennial. Further, for aged customers, traditional and cost effective marketing techniques can be used such as, ads in television, magazine, posters, radio commercial etc. To attract the attention of women and young girls, celebrity endorsement can be used. Also, they can be encouraged through various discounts, sales etc. Thereafter, to encourage purchase from kids company can use cartoon characters in advertisement, provide free toys etc (Wang and Li, 2012).
3.5 Additional elements of extended marketing mix of Halo Foods
Following are the additional elements of the extended marketing mix that can be focused by the marketing manager while preparing the marketing strategy.
It refers to the elements, that are incorporated in a service to assure its tangibility. It further help in highlighting the quality of services offered by the Halo Foods. In this respect, marketing manager of company assure the physical appearance of brand stores it attracting so as to stimulate consumers to enter the outlet and make purchase (Marketing Elements. 2015). Therefore, the counter must be well organized, products should be displayed properly, staff should be neatly and uniformly dressed etc.
It means the organized way that assist Halo Foods in offering wide range of products and services to its consumers. Therefore, company can ensure its e-commerce stores are IT supported. Further, sales personnel appointed for physical stores should be customer focused.
It refers to the quality of human resources that are employed by the organization for attracting and retaining the customers. The employees further represent company in market. Hence, Halo Foods ensure it have well trained and skilled manpower who are capable of meeting the needs of customers in best possible manner (Svatosová, 2013).
Summing up the entire report, it can be stated that marketing is a effective approach that help Halo Foods in outperforming than its competitors. The marketing orientation ensure the cost involved in it is less than benefits that are likely to be attained in future. It has been identified that various macro and micro factors like, customers, employees, government, economic, socio-cultural factors can impact the performance of company. Therefore, they must be considered while functioning.
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