Sblended Company Marketing Framework - Assignment Example

CONSULTANCY PROJECT Name Institution Introduction The Sblended Company deals with the production of liquid milk products. Among the liquid milk products it produces includes the milkshake, ice cream and liquid fresh milk. The company’s major market is the European countries majors the United Kingdom. This form of market is well versed economically. This together with the demand for milk products give the company better sales than companies dealing in other industries. However, certain factors such as competition and the flooding of the market by other milk producing companies play is major role in set backing the company. However, several steps are necessary for increasing the performance of the company. This includes administering effective advertisements of the milkshake with an aim of increasing the popularity of the brand name. The UK market is well diversified and one of the major in the world. The fact that most of the customers and the general population consider milk as a safe beverage also increases the market for the milkshake. Market analysis entails studying the market for a given product by analyzing the merits, demerits and possible changes the market may face in future times. The market for products in the United Kingdom is rather diverse and dynamic. The milk market in the country recorded revenue of $5.2bn in the year 2012. However, just as the market, the revenue is rather dynamic, varying depending on various factors. Depending on the weather conditions and the season, the production and consumption of milk varies considerably. High production of milk products are recorded in both summer and autumn seasons. The main concerns of the farmer as far as production of milk and selling their products to the market are the variability of milk products. The Davenport report states the clear outline of obtaining the next big offer for a given organization. Every given organization strives to satisfy its customers so as to maintain its place in the market. An important step in this is defining the objectives. Even though, some of the companies lack clear objectives but are still capable of copping up with competition in market place. Organizations overtime consider various factors when running their operations. They constantly worry about what the organization is set to achieve. Gaining new customers as well as retaining the confidence of existing customers is also important in managing an organization. Organizations dealing with milk production and supply consider various factors in determining their customer preferences. Studies and cards offered to the customers determine what types of milk products customers’ purchase during the different seasons. The market research on the variability of milk sales in the UK involved several retail outlets that sell milk products in London, Leeds, and Manchester. It also entails gathering information on what the circumstances make customers prefer spending money on a milk shake. The diversity of customers is also considered in the analysis and research. This entails the customer’s age, gender, the number of children the customer has and the amount of income they receive. Maintaining customer buying pattern also plays a major role in establishing a stable market for milk shake products. This enable the company establishes a loyalty program that ensures the discovery of the buying pattern. Customers vary in their preferences for certain products. In the analysis, so as to efficiently market products for a given company, the analysis groups customers according to age, lifestyle and their fashion. The diversity of companies makes different companies have different interests on customers (Schaper, Volery, Weber & Lewis 2010). Smith suggested that the importance of diversifying a given market makes it possible to increase the sales of a given company. Segmenting the customers enable the company improves the mode of delivering their products to a specific targeted group of customers. This is because customers vary according to their registered incomes hence varying the market for a company’s products. The attractiveness of emerging markets is constantly increasing over time. This sets up an important discussion on whether up unified market strategies for countries with relatively high income is really essential. Marketing Framework Milkshake falls under the beverages and non-alcoholic soft drinks. Additions to the product involve fruit syrup and sometimes chocolate sauce. However, the main component of the product is liquid milk which makes the important part of the study. This is as the study focuses on the market for liquid milk in the United Kingdom. According to Lucy, liquid milk plays an important part in the market for milk products in addition to cheese and yoghurt (Schaper, Volery, Weber & Lewis 2010). According to a study conducted in the UK, the average consumption of liquid milk per person in every week on 2009 in the country as around 1,568 milliliters. The milk consumption for the previous year was 1 percent higher. Milk companies such as Sblended Company have started diversifying their products by establishing other milk products such as milkshake to attract a larger number of customers for their products. Customers on the other hand have an increasing concern about the safety of the products their children are consuming. According to statistical data on the consumption of milk products in the United Kingdom, at the end of the year 2008, consumption of milk products was on an average of around 175 ml. this was recorded as a dramatically reduction above 11.4% to reach 155ml by mid-April, 2011. This was as a result of increasing the price of organic milk by retailers and supermarkets hence making customers and suppliers of the product increase purchases on recession periods. Various retailers in the country such as Sainsbury’s, Tesco started advertising the products to boost the sales. A reduction on retail prices of the product also boosts sales for the product. Market Position Milk as a beverage is termed safe and healthy for consumption. This makes most of the customers in the UK market pay extra attention to the product. According to studies on customer trends and National Statistics, the revenue obtained from producing milk by the company was recorded as 15.4 million in 2009. This makes the company rank as the ninth largest milk producing company in the United Kingdom. SWOT Analysis of Sblended Company In order to register success in the industry, the company has to have an effective SWOT analysis of its performance. Strengths The fact that milk is considered healthy and safe for consumption increases the product’s sales. The company offers a variety of milk products having different flavors. The company is relatively well established in the market. The company has relatively a high number of customers. In addition to the high number of customers, the customers for the company’s products increase with time. The promotions of the company’s products through advertisements also play a major role in enhancing the performance of the company. Weakness Apart from strengths that enhance the performance of the company, several weaknesses also play a major role among the weaknesses include brand loyalty due to the many brands and companies dealing in production of milk products. Customers do not stick to the company’s milk products hence causing a great variation in the market for milk products. The lack of a stable market hinders making plans for establishing the sales for the company’s products. Competition from other liquid milk producing companies also poses a weakness for the company. The competition for market and customers reduces the sales of the company. Opportunities The development of other liquid milk products such as milkshake and other flavored milk products diversify the market. This also increases confidence the customers have for the milk products. The perception of the public for milk being safe beverages also increases the market opportunities the company has. Threats The varying prices for milk products pose a major threat to the company’s sales and annual profits. The price reduces at time due to the rise of production of milk products that end up flooding the market. During scarcity times, the price shoots up due to the scarcity of the products in the market. Global demand for milk products offers intense pressure for the production of the products to meet the demands of the public. The company has gone to great extents to diversify its products. In the past times, the rise of popularity of ice cream and frozen desserts has seen the company major in the production of such products (Schaper, Volery, Weber & Lewis 2010). Ice cream contains milk in additional to non-fat milk. However, these two products seem to register seasonal success in their sales. The purchases of these products seem to be on the rise in hot seasons while significantly reducing in cold weather. The company hence fluctuates its production rate of the products according to the season. Apart from increasing the production of these two milk products, the company also varies the advertisement of such products depending on the customer demands and the seasonal changes. UK has understood the market on the summer by providing more retailers to offer and sell ice cream as will milkshake across all the board. Schaper, Volery, Weber & Lewis (2010) suggested that all companies invest more money in Research and Development trying to be up date with the customer needs and to make revenue by selling new develop product. Although the inventions of new product in the market develop, still the ice cream is weak choice for customer to purchase because of the weather condition. The company includes fresh fruit juice in their milkshake. The fresh fruit juice is considered safe by the population in the UK. This not only promotes the flavor of the milkshake but also attracts more customers hence increasing the sales. The company should increase the variety of the juice included in their milkshake to attain customer satisfaction. This is due to the diverse nature of tastes and preferences among the population. Executive Summary The current times have registered fast economic growth among the European countries. The rise of the middle class increases the market for products of most companies. The rise in market however has come with an increase in the number of companies dealing with similar products. This factor has not exempted the milk industry given the fact that there has been a rise in the number of milk producing companies. This is as per the evidence of many brands the customers have to choose from. Thus the success of a company in a highly competitive industry depends on the effectiveness of advertisements made by the company. Advertisements increase the popularity of a product hence increasing the sales of the company’s products. The success of the Sblended Company in the milk industry hence almost entirely depends on the level of advertising the company does for its products. In the past years, the popularity of the company’s milkshake has risen. This is probably due to intensive advertisement or rather the fact that the company is already well established in the market. The following are some of the solutions the company should put in place to increase its sales. increasing funds used for advertisements, increasing the effectiveness of the customer care department, increasing the efficiency of productions, and setting up customer friendly prices for the company’s products. As discussed earlier, increasing the funds channeled to advertising the brands of milkshake increases the company’s sales. From proper advertisement, the company will be able to establish the brand of its product in the market. Establishing the brand on the market plays a big role in increasing the sales of the product. This is due to the fact that most of the customers will want to be associated with the product hence significantly increasing the yearly purchases for the milkshake. Another solution to increasing the performance of the company’s sales is by increasing the efficiency of the customer care department. Effectively handling the issues the customers have as far as the product is concerned boosts customer confidence in the product. This subsequently increases the sales associated with such product. Boosting customer confidence plays a major role in increasing the market scope for the company’s milkshake. Another solution to increasing the sales for the company’s products involves increasing the efficiency of productions in the company. With efficient cost friendly production enable the company save more on this hence increasing the annual profits garnered by the company. The final solution to increasing the company’s sales involve setting customer friendly prices for the milkshake. Price plays a major role in determining customer confidence and purchases for the products. The UK has a fast growing economy and the number of the middle class is ever on the rise. The company should therefore set prices targeting a little lower than the middle class to get maximum returns from the sales. this is due to the fact that setting such customer friendly prices will increase the number of products sold rather than setting high prices and hence reducing the sales. Effective marketing analysis enables a company perform better. Analyzing a market entails effectively considering all the different factors that affect the market for a given product. Among the major factors include the economic power of a market, the prices set for the given company’s products, the type of product and the competition. These factors affect the performance of a given company differently and are thus important to be considered in trying to improve the performance of the company. The economic power of the customers determines the purchasing power of the community. Sblendid Company benefits from the rather stable economic situations of most people living in the UK. Stability of the economy provides a wide range in the market. The company can hence increase the production and even the price of their milkshake and effectively perform even better in the market. Due to the fair prices set by the company for their milkshake product, the company registers among the best performances in the industry. The marketing is about the exchanging of the product between the producer of the product and the consumer by another product or by money since the past until now days. The location is considered to be important to transaction these sells. It’s important that the sells understand the buyer preferred on the product and what they are willing to pay and how much they can afford to buy this product. The marking research stage is important for the selling propose by collecting and analyzing the requirement information about the customer preference which will help the organization to set a good plan and implement the appropriate strategy to be process and to convince the customer to buy the product (Schaper, Volery, Weber & Lewis 2010). References Schaper, M., Volery, T., Weber, P., & Lewis, K. (2010). Entrepreneurship and small business. Read More