marketing plan cox original bloody mary spiced...

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MARKETING PLAN: COX’S BLOODY MARY SPICED KETCHUP EXECUTIVE SUMMARY The following market plan is to introduce new innovative product by Cox Original named as Cox Original Bloody Mary Spiced Ketchup. This is an high quality product made of great Indian spices and it extremely different from the other ketchup which are available in the market. Cox Original is an independent food company born in UK of a simple passion for producing high quality food products, deliver an apparent solutions to our customers and eventually provide fantastic taste. We are direct and down to earth people, striving to produce products which reflect our love of good and honest food. Every day we develop new ideas, launch a range of carefully crafted products. As part of expanding our business we are planning to move abroad also. We are aiming to launch our product in the new emerging market that is India. Out of many emerging cities in India we have selected the city ‘Kochi’ in Kerala State which is one among the most popular and commercially expanding region in the south India. The size of the region is 732 square km and density of the place is 4,018/ km 2 . It is situated in South India. With coming of many developmental and technological projects like ‘Smart city’ the place is peaking in development. With development the lifestyle of people changes rapidly. Owing to this and lack of time more and more people started preferring fast foods and western foods. So launching of our Ketchup will be beneficial for us.

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MARKETING  PLAN:  COX’S  BLOODY  MARY  SPICED  KETCHUP  

 

 

                                                                                                         EXECUTIVE  SUMMARY  

The   following   market   plan   is   to   introduce   new   innovative   product   by   Cox   Original  named   as   Cox   Original   Bloody  Mary   Spiced   Ketchup.   This   is   an   high   quality   product  made  of  great  Indian  spices  and  it  extremely  different  from  the  other  ketchup  which  are  available  in  the  market.  Cox  Original  is  an  independent  food  company  born  in  UK    of  a  simple  passion  for  producing  high  quality  food  products,  deliver  an  apparent  solutions    to   our   customers   and   eventually   provide   fantastic   taste.   We   are   direct   and   down   to  earth   people,   striving   to   produce   products  which   reflect   our   love   of   good   and  honest  food.    Every  day  we  develop  new  ideas,  launch  a  range  of  carefully  crafted  products.  As  part  of  expanding  our  business  we  are  planning  to  move  abroad  also.  We  are  aiming  to  launch   our   product   in   the   new   emerging  market   that   is   India.   Out   of  many   emerging  cities  in  India    we  have  selected  the  city  ‘Kochi’  in  Kerala  State  which  is  one  among  the  most   popular   and   commercially   expanding   region   in   the   south     India.   The   size   of   the  region  is  732  square  km  and  density  of  the  place  is  4,018/  km2.   It   is  situated  in  South  India.  With  coming  of  many  developmental  and  technological  projects   like   ‘Smart  city’  the  place  is  peaking  in  development.  With  development  the  lifestyle  of  people  changes  rapidly.  Owing   to   this   and   lack   of   time  more   and  more  people   started  preferring   fast  foods  and  western  foods.  So  launching  of  our  Ketchup  will  be  beneficial  for  us.    

 

 

 

 

               

 

 

 

 

 

     

 MISSION  

The  mission  of  Cox's  Bloody  Mary  ketchup  as  follows  

Quality:  To  provide  highest  quality  ketchup  with  fantastic  taste  to  the  customers  

Value:  To  offer  greater  value  to  the  consumers  with  great  flavour  and  rich  in  nutrition  

Integrity:  Our  commitment  to  the  highest  standard  is  the  foundation  of  customer  trust  in   the   Cox's   Bloody   Mary.   We   promise   our   customers   that   no   customer   will   be  disappointed  with  our  products.    

SITUATIONAL  ANALYSIS    

Current  situation  

Once  upon  a   time  Pizza,  Burgers  and  Pastas  were  not  popular   in   India.  But  nowadays  even  children  in  the  country  swear  by  these.  These  types  of  fast  foods  have  replaced  the  traditional  Indian  foods  like  Dal,  and  Rice.  Today  it  has  spread  in  the  various  important  cities  and   towns   in   India.    There   is  strong  correlation  between  Fast   food  and  Ketchup  and  these  two  are  directly  proportional  to  each  other.  The  spicy  and  sweet  provided  by  ketchup   adds   to   the   great   experience   of   a   delicious   meal.   Therefore   the   demand   for  ketchup  in  India  have  been  increased  due  to  the  boost  in  the  demand  fast  foods.  As  per  the  survey  carried  out  by  Down  to  Earth  it  has  been  estimated  that  Indians  are  spending  about  Rs  4449  crores  in  an  year  in  the  fast  food  market  like  Pizza,  Burger,  and  Pasta.    

In  India,  Ketchup  market  is  estimated  around  Rs  30million.  Majority  of  Indian  Ketchup  market   is   dominated   by   Nestle   Maggi   which   holds   49%   of   the   market   share,   Kissan  which  holds  30%  and  global  leader  Heinz  holds  10%.  Maggi  a  brand  of  Nestle,  came  to  Indian  market  in  1980s.  Until  that  Kissan  was  in  the  dominant  position  up  to  the  middle  of  1980s  in  Tomato  Ketchup.  In  February  2012  Heinz  has  announced  that  they  are  going  to   launch   limited   edition   tomato   ketchup   with   blended   Indian   spices   like   cumin,  coriander  and  cinnamon.  However  a  few  of  the  non  popular  local  brands  still  remains  in  the  market  owing  to  price  competition.      

PESTLE  ANALYSIS  

Political  Factors  

The  operation  of  an  international  firm  will  be  influenced  by  the  local  rules  and  policies.  Likewise   policies   and   regulations   influence  Cox's   bloody  Mary  Ketchup   in   this   sector.    The  operation  of  Cox's  will  be  monitored  by   the   related   regulatory  authority  and  will  ensure  that  the  company  does  not  deviate  from  the  prescribed  policy.  This  encompasses  assuring   usage   of   high   quality   of   material,   non   usage   of   dangerous   chemicals,   and    proper   processing   of   the   raw  materials.     More,   Cox's   need   to   constantly  monitor   the  changes  in  the  regulations  and  rules  in  India  like  FDI  policies.    

     

Economic  factors  

The  economic  condition  will  have  a  great  affect  on  the  daily  business  of  any  company  in  the   food   industry.   Inflation,   fluctuation   in   exchange   rate,   and   recession   can   influence  this.   It   is   critical  Cox's   to  provide  appropriate   importance   for   the  economic   factors  as  the   economic   condition   in   the   different   region   within   India   varies   from   India.   The  dispensable  income  and  buying  power  of  urban  population  is  much  higher  compared  to  rural   population.     In   addition,   fluctuation   in   exchange   rate   also   may   affect   the   in  supplying   raw  materials   and  will   eventually   result   in   the  profitability  of   the  business.    Further,   Cox's   need   to   carry   out   a   research   in   depth   about   the   spending   food   habits,  economic  situation  for  ensuring  objectives  are  not  affected  over  a  period  of  time.    

Social  factors  

Regarding   the   habits   of   consuming   food   products   different   countries   have   different  culture.   Considering   religion,   Cox's   bloody   Mary   ketchup   does   not   provide   anything  with  alcohol.  Obviously  Cox's  Bloody  Mary  ketchup  has  the  content  of  Vodka,  so  it  may  affect   the   belief   of   Muslim   community.   Indians   are   not   that   much   familiar   with   the  western   type   fast   foods.     Therefore   it   is   a   tough   task   for   Cox's   to   cross   the   barrier.  However,  the  young  people  prefer  to  pursue  western  culture.    

Technological  factors  

In   order   to   gain   competitive   advantage   in   the   market   company   need   to   be  technologically  advanced  and  technological  factors  need  to  get  updated.    Advancement  in   technology   facilitates   all   sort   of   business   operations   from   procurement   of   raw  materials,  storage  and  serving  it  to  the  customer  in  the  highly  desired  form.    Moreover,  technology   will   also   facilitates   good   inventory   system.   Using   advanced   technology   in  processing  food  is  implemented  to  assure  the  superior  quality  products.  Further,  Cox's  can  utilize  the  electronic  media  for  advertisement  campaign  and  promotions.    

 Legal  factors  

Various  legal  formalities  should  be  considered  while  launching  products  like  Ketch  up.  Different  rules  and  regulations  are  developed  by  Indian  Government's  Food  Safety  and  Health  Department  for  ensuring  that  standards  are  met.  Aspects  like  nutritional  value  of  the  product  should  be  given   in   the  product  which  will  help  customer   to  buy  products  according  to  their  requirement.    

Workers  safety  and  standards  of  employment  should  be  examined  by  Cox  since  friendly  atmosphere  makes  employees  to  serve  the  clients  more  happily.  Cox  should  make  sure  that  long  range  opportunities  and  quality  are  offered  to  employees.  

Taxation  policy   is   very   strict   in   India.   So   it   should  be   kept   in  mind  by  Cox.   Fund   and  money  transfer  will  be  more  difficult  and  thoroughly  examined  because  of  involvement  of  foreign  stake.  Since  Indian  legal  system  is  very  strict  regarding  foreign  stakes  all  the  

     

transactions  will   be   under   thorough   observation.       There   is   also   chance   that   offering  products   that  may   offend   religious   law  may   cause   issues   for   Cox.   So   Cox   should   take  special  care  that  they  do  not  offend  any  religion.    

Environmental  factors  

Environmental   factors   have   great   influence   on   the   business   operation   in   the   country  concerned.  It  is  necessary  for  Cox's  to  avoid  any  environmental  damages  by  using  highly  advanced  process   for  waste  processing  as   this  may  harm  the   image  of  Cox.  Moreover,  considering  pollution   issues   in   India  the  company  need  to  supply  the  ketchup   in  glass  bottles  rather  than  plastic  bottles  as  the  plastic  will  create  environmental  hazards.    

MARKET  ANALYSIS    

Market  Segmentation  

According  to  McDonald  and  Dunbar  (2004)  market  segmentation  is  nothing  but  dividing  a  market  into  definite  groups  of  customers  who  require  particular  products  or  services.  There   are   four   bases   of   market   segmentation   namely   geographic   segmentation,  demographic   segmentation,   psychographic   segmentation,   and   behavioural  segmentation  (Cahill,  2006).  

The  segmentation  of  Cox's  will  be  based  on  the  lifestyle,  demographic  and  behavioural.      Cox  will  catch  the  attention  of  teens  and  youth  with  fantastic  spiced  ketchup  and  easy  squeeze  bottles.  In  addition,  Cox  will  focus  on  the  life  styles  and  habits  of  urban  families.  Cox   Original   will   provide   artificial   free   ketchup   with   special   offers   to   attract   more  people  towards  the  product.    

Target  market  segment  strategy  

Cox   original  marketing  will   target   the   teens,   youths   and   habits   of   urban   families.     In  India  the  fast  food  industries  such  as  burger,  pasta,  etc.  are  booming  and  majority  of  the  customers   are   teens   and   youths.   The   artificial   free   Cox's   bloody   Mary   ketchup   will  provide  better  taste  and  consistency.    

Market  size    

The  ketchup  market  in  India  is  estimated  to  be  around  Rs  220  crores.  47%  of  the  market  is  dominated  by  Nestle  Maggi  while  Kissan  hold  30%  of  the  market  share.  It  is  found  in  the  market  analysis  that  78%  customers  are  using  ketchup,  therefore  it  can  be  said  that  78%  market  is  potential.  This  analysis  was  done  with  the  help  of  a  short  survey  with  the  customers.    The  projected  sale  in  the  first  year  is  Rs.  20million  and  Rs.  15million  in  the  second  financial  year.  Whereas  the  projected  profit  in  the  first  year  is  Rs.  13million  and  the  second  year  is  Rs.  9  million.  

 

     

           

 

Competition  and  market  share  

From  the  market  analysis  it  has  been  found  that  India  is  a  potential  market  for  Ketchup.  47%  share  of  market  share  is  dominated  by  Nestle  Maggi  while  30%  of  them  dominated  by  Kissan.  However  the  global  Ketchup  giant  Heinze  holds  only  10%  of  the  market  share  while   the   small   other   brands   dominates   14%   of   the   market   share.   In   the   present  ketchup  market   there   exist   fierce   competition   between  Maggi   and   Kissan,   and  many  smaller   established   brands   have   been   disappeared   from   the   market   recently   like  Volfruit   from   Voltas,   Dipy's   from   Herbertsons,   Wimco's   Sunsip   and   Noga   of   Nagpur  orange  federation.  The  Indian  soft  drink  giant  Rasna  (Pooma  Industries)  has  now  made  a   collaboration   with   Delmonte   for   introducing   Ketchup   very   soon   with   variety   of  flavours.  The  global  giant  Heinz  came  into  Indian  market  in  2004.  They  had  introduced  tomato  ketchup  with  balsamic  vinegar.  

 

78%  

22%  

MARKET  SIZE  ANALYSIS  OF  KETCHUP  

NO.OF  CUSTOMER  USING    

NO.OF  CUSTOMER  NOT  USING  

     

             

SWOT  ANALYSIS  

Strength    

• Ability   to   make   the   products   according   to   the   requirement   of   the   Indian  customers  

• Innovative  product  

Weakness  

• Does  not  have  much  knowledge  about  the  Banglore  market  • Lack  of  presence  in  the  rural  market  

Opportunity  

• Maximizing  the  number  of  products  which  can  attract  youth  people  • Changing   preferences   of   customers   towards   the   fast   food   market,   thereby  

increasing  the  usage  of  ketchup    • Can  shift  to  rural  market  

Threat  

• Threat  from  other  local  ketchup  brands  and  other  local  homemade  chutneys  • New  market  and  new  customers  • Fierce  competition  • Price  battle  from  regional  competitors  

Consumer  Analysis  

47%  

30%  

13%  

10%  

Exis;ng  brands  and  Market  share  

Nestle  Maggi  

Kissan  

Others  

Heinze  

     

Recently   in   India,   the   fast   food   industry   like,   burgers,   pizza,   pastas,   fried   chicken   has  grown  remarkably.  Nowadays  these  types  of  fast  food  chains  can  be  found  even  in  the  rural  areas.  Even  kids  know  much  about  this.  Ketchup  is  very  essential  in  making  these  kinds  of  fast  foods.  Obviously  the  growth  of  fast  foods  eventually  lead  to  the  growth  of  Ketchup   related   products.   Teens,   youths   are   the  major   and   customers  who   use   these  products.   In   addition,   the   changing   life   styles   of   urban   families   also   need   to   be  considered.  They  are  also  considered  as  the  potential  customers  of  Ketchup.  In  the  busy  life,  people  do  not  get  time  for  cooking  and  they  go  out  for  dinner.  Moreover,  having  fast  food   has   become   a   trend   nowadays   and   this   has   replaced   the   traditional   Indian   food  like,  Rice,  Dal  etc.    

Key  to  Success  

The  critical  key   to   success  are  designing  and  manufacturing  products  which  meet   the  demand  of  the  market.  Moreover,  Cox  ‘s  Bloody  Mary  Spiced  Ketchup  need  to  match  the  brand  image  and  need  to  make  sure  the  entire  customer  satisfaction.  The  business  will  get  success  and  sustainable  brand  if  the  key  to  success  are  achieved.    

 

 

Critical  success  factors  

In  India,  it  has  been  seen  recently  that  international  as  well  as  national  brand  has  seized  urban   and   elite   markets.   There   is   a   widespread   market   which   Cox's   Original   can  penetrate   by   offering   competitive   prices.   Restaurants,   fast   food   chains,   are   the  worthwhile   segments   in   addition   to   the   household   market.   Further,   placement   and  publicity  are  the  critical  aspects  while  marketing  also  has  got  vital  role.      

COX'S  ORIGINAL  BLOODY  MARY  SPICED  KETCHUP  

Cox's  Original  is  an  independent  food  company  born  of  a  simple  passion  for  producing  high   quality   food   products,   deliver   an   apparent   solutions   to   our   customers   and  eventually  provide  fantastic  taste.  We  are  going  to  introduce  new  product  namely  Cox's  Bloody  Mary  Spiced  Ketchup  in  Kochi  India  is  the  one  of  the  emerging  market.  We  are  direct  and  down  to  earth  people,  striving  to  produce  products  which  reflect  our  love  for  good  and  honest  food.  It  is  extremely  free  from  artificial  flavour  and  colours.    

Corporate  Objectives  

The  corporate  objective  of  Cox  Original   is   to  provide   its   customers  with  healthy,  high  quality  and  innovative  spiced  Bloody  Mary  Ketchup  at  all  times.  Moreover,  Cox  Original  also  promise  affordable  prices  and  convenience.      

Marketing  Objectives  

     

• To  establish  strong  sales  in  the  city's  major  supermarket  chains.  • To  achieve  a  continual  increase  in    market  penetration    • To  improve  market  presence  by  25%  by  the  end  of  2013  • Product   Innovation:   It   is  necessary   for  Cox's  Original   to  continue   its   innovative  

research  and  development  strategy  to  come  up  with  new  flavours  and  products.    

Financial  Objectives  

• To   enhance   the   profit   margin   by   2%   per   quarter   through   efficiency   and  economies  of  scale.  

• To  maintain  an  important  R&D  budget  

MARKET  ENTRY  STRATEGY  

As  far  as  Indian  market  is  concerned  it  is  very  difficult  to  go  and  start  a  business  due  to  the  government  rules  and  regulation.  In  order  to  begin  a  business  India  a  company  need  to   make   a   collaboration,   or   partnership,   joint   venture,   or   strategic   alliance   with   an  Indian  company.    Therefore  in  order  to  enter  Indian  market  Cox's  original  will  make  a  joint  venture  with  local  food  giant  Eastern  Foods  who  produce  spices,  rice,  pickles,  etc.  Eastern  Foods  is  based  in  Kochi,  Kerala.  They  have  got  manufacturing  plants  in  various  parts   of   Kerala   state.   Hence,   by   making   joint   venture   with   Eastern   Foods,   Cox's   can  utilize  their  plan,  people,  to  produce  the  Bloody  Mary  spiced  Ketchup.  Moreover,  Cox's  original  Bloody  Mary  Ketchup  can  penetrate  the  market  with  the  well  established  brand  Eastern   Foods.   Further,   this   market   entry   strategy   will   bring   financial   advantages,  marketing  motives,  and  personnel  advantages  to  Cox's  Bloody  Mary  Ketchup.    

MARKETING  STRATEGY    

Targeting  

India   is   a   second   largest   country   in   the  world   in  population.   In  Kerala   state   there  are  around   40   million   people.   Cox   original   marketing   will   target   the   teens,   youths   and  habits  of  urban  families.    In  India  the  fast  food  industries  such  as  burger,  pasta,  etc.  are  booming  and  majority  of  the  customers  are  teens  and  youths.  Moreover  the  lifestyles  of  people  are  changing  constantly.  Busy   life   leads  to  people  to  having  fast-­‐food.    Cox  will  focus   on   the   Kochi   urban   areas.   The   artificial   free   Cox's   bloody   Mary   ketchup   will  provide  better  taste  and  consistency.    

Segment  identification  

Cox  Original  Bloody  Mary  Spiced  Ketchup  to  established  within  the  functional  fast  food  sector.    

Segment  needs  

The  segment  will  have  social  as  well  as  physiological  need.  

     

Segment  trends  

The  segment  trend  comprises  moving  from  traditional  food  such  as  Dal  and  Rice  to  fast  foods  such  as  Pastas,  Burgers,  Fried  chickens  etc.  Ketchup  is  essential  for  these  kinds  of  fast  foods  and  it  brings  great  taste  into  this.  Once  upon  a  time  Pizza,  Burgers  and  Pastas  were  not  popular  in  India.  But  nowadays  even  children  in  the  country  swear  by  these.  Today   it  has  spread   in   the  various   important  cities  and   towns   in   India.  The  spicy  and  sweet  provided  by  ketchup  adds  to  the  great  experience  of  a  delicious  meal.  Therefore  the  demand  for  ketchup  in  India  has  been  increased  due  to  the  boost  in  the  demand  of  fast  foods.    

 

Positioning  strategy  

Positioning   can   be   defined   as   how   you   single   out   your   product   from   products   of  competitors  and  determining  the  market  slot  to  enter  (Hooley  et.al,  2008).  Positioning  is   associated   with   creating   an   image   in   customers’   mind   regarding   your   product.  Positioning   strategy   depends   upon   requirements   of   customers   and   how   they   get  motivated  and  activities  of  competitors.    

Cox's  Bloody  Mary  Ketchup  will  be  a  bottled  Ketchup  as   the  unique   Indian  spiced   the  Ketchup   available   in   the   market.   Although   Nestle   maggi   has   similar   product   in   the  market,   Cox's   Bloody  Mary   Spiced   Ketchup  will   be   entirely   differentiated   from   those  products.   Cox  will   keep  moderate   price  with   high   quality   product.     It  will   be   entirely  artificial  free  and  will  bring  different  experience  to  its  valuable  customers.  

Positioning  statement  

To  the  young  and  teen  active  customers  as  well  as  the  urban  families  who  does  not  have  time  to  cook  and  love  fast  foods,  Cox  Bloody  Mary  Spiced  Ketchup  will  give  you  fantastic  taste  with  no  artificial  flavours.  Ketchup  is  essential  in  fast  food  to  make  more  delicious.  Now  it  is  your  choice  that  you  can  have  food  with  great  spicy  taste.    

MARKETING  MIX  

Marketing   mix   is   significant   in   deciding   the   attributes   which   differentiate   a   product  from  various  others  of  same  kind  (Pride  et.al,  2009).  It   is  usually  referred  under  7  Ps:  ‘Product’,  ‘Place’,  ‘Promotion’,  ‘Price’,  ‘Physical  evidence’,  ‘Process’  and  ‘People’.    

Product  

The  item  which  fulfils  the  requirements  and  desires  of  customers  is  termed  as  product  (Pride   et.al,   2011).   Cox's   Original   Bloody   Mary   Spiced   Ketchup   is   high   quality   food  products,   deliver   an   apparent   solutions   to   our   customers   and   eventually   provide  fantastic   taste.  We   are  direct   and  down   to   earth  people,   striving   to  produce  products  which  reflect  our  love  for  good  and  honest  food.  Cox's  Original  Bloody  Mary  Ketchup  is  

     

extremely  free  from  artificial  flavour  and  colours.  The  spiced  Ketchup  will  be  produced  locally  with  favourite  Indian  spices  but  the  taste  maker  will  be  imported  from  UK  as  the  company   is   careful   about   the   consistency   of   the   taste.   There   are   three   types   Cox's  Ketchup  bottle  will  be  available,  they  are  

1.  300g  bottle  

2.  500g  bottle  

3.  1000g  bottle    

The  significant  aspects  of  the  Cox  Bloody  Mary  Spiced  Ketchup  comprised  of  :  

     *  Quality  

     *  Taste  

     *  Health    

     *  Availability  

Promotion  strategy  

The   communication   methods   that   are   used   for   gaining   attention   of   customers   are  referred   as  promotion   strategy   (Kurtz   and  Dave,   2010).   The  major   elements  used   for  promotion  are  public   relations,   sales  promotion,   advertising  and  personal   selling.  Cox  will   launch   an   integrated   marketing   communication   strategy   for   promoting   a   new  healthy  revolution  of  the  product.  

• Concentrate  on  making  distinct  image  on  the  basis  of  taste  and  artificial  free  with  emphasis  on  the  health  conscious  and  urban  market  and  gradually  to  rural  areas.    

• Make   a   young   and   successful   cricket   player   as   the   brand   ambassador   of   the  product.  The  possible  choice  may  be  Virat  Kohli  or  Irfan  Pathan  

• Conduct   promotional   campaign   at   colleges,   universities,   and   urban   areas   with  population  more  than  10000.  

The  Cox  Original  will  adopt  both  push  and  pull  promotion  strategies.    

Push  strategy:  It  occurs  only  in  the  trade  level.  They  comprise  display  programme  and  price  off.  

Display  programme;  it  is  considered  as  the  competition  at  the  trade  level.  

Trade  price  of  promotion:  The  significant  purpose  of  this  is  to  throw  out  the  competitors    

Pull  strategy:  This  is  for  customers.  Cox  go  for  thematic  promotion  as  the  main  target  is  youth  and  teens.    

 

     

Promotional  mix  

Advertising:  

It   is   an   intense   tool   in   the   promotional.   In   order   to   establish   the   sales   and   make  continual  progress      Cox  original  will  carry  out  advertising  strategy  as  following  ;  

 

Television   Asianet,  ESPN,  Start  sports  

Magazines   Time  magazine,  The  hindu  

Radio   Radio  mango,  Club  Fm  

Outdoors   Bill  boards  and  prints  on  the  road  

 

 

Samples-­‐It  is  a  strong  tool  which  goes  all  the  year  round.  The  Cox      cars  go  to  different  institution    and  offer  free  samples  of  bloody  mary  spiced  ketchup  because  they  believe  they  cannot  grab  a  customer  unless  he  taste  it.  

Point-­‐of-­‐purchase  

Supermarkets  and  food  malls  will  be  opted  for  point-­‐of-­‐purchase.  It  helps  in  providing  good  visibility  of  the  product.    

Discounts  

Offering   of   discounts   will   attract   customers   and   encourage   them   to   purchase   the  product.    

 Public  relation  

Public   relation   is   a   method   of   managing   information   flow   between   public   and   an  organization  that  does  not  involve  direct  payment.  Companies  and  marketers  involve  in  public  relations  so  as   to  create  a  positive   image  regarding   them  and  their  products   in  mind   of   public   (Seitel   and   Fraser,   2007).   It   allows   company   to   get   exposure   to  customers   and   public   with   the   help   of   news   and   topics   and   issues   having   common  interest.  Their  purpose  is  to  convince  government,  stakeholders,  public  etc.  by  creating  a   positive   image   about   them.   The   promotional   activities   like   events,   conferences,  sponsorship   deals,   winning   industry   awards   etc.   comes   under   public   relation.   Cox  original  utilize   special   events   to  promote  Cox  Bloody  Mary  Spiced  Ketchup  and  get   in  touch  with  potential  market.    

Price  

     

The  amount  paid  by  consumer   for  a  product   is  referred  as  price.   It   is  significant  since  profit  and  survival  of  organization  depends  upon  it  (Bennett,  2009).  Cox  will  implement  market   penetration   pricing   strategy.   This   means   Cox   original   will   set   low   price   for  attracting  large  number  of  buyers  and  gaining  large  market  share.  This  is  to  attract  the  existing  and  new  health  conscious  customers  who   look   for   fantastic   tasty  ketchup.  An  effective  penetration  pricing  method  will  help  in  increasing  the  sales  and  in  improving  market  shares.  In  industry  or  markets  where  standardization  is  given  importance  price  penetration  strategy  is  more  effective.  So  it  is  more  appropriate  for  Cox’s  Bloody  Mary  Ketchup  since  we  are  trying  to  make  a  place  and  image  in  people’s  mind.  Our  aim  is  to  become   the   industry   standard.   Penetration   pricing   policy   will   help   us   to   become  standard  in  the  industry.  The  price  of  the  large  bottle  such  as  1000ml  will  be  reduced  by  10%  in  comparison  with  300ml  and  500ml  bottles.    

Place  

The  term  place  indicates  distribution  or  offering  product  at  a  place  easily  accessible  for  customers.   The   Cox   Original   will   pursue   an   exhaustive   distribution   structure   for   the  product  in  the  urban  areas  of  Kochi,  Kerala  and  this  is  considered  as  the  great  strength  and  competitive  advantage  for  the  company.    

Initially  the  distribution  channel  for  urban  market  will  be  strengthened  by:  

• Supplying  products  in  supermarkets  and  small  grocers  where  the  product  reach  to  the  target  customers.    

• Achieve  more  than  90%  availability  of  the  product  in  all  stores.  

Physical  evidence  

Today,  customers  typically  come  into  contact  with  products  in  retail  units  for  buying  the  products  and   the  customers  expect  high   level  of  presentation  on   the  products.  Hence,  Cox  will  make  available  the  products  in  each  every  super  markets  and  grocer  

 Processes    

Cox   will   involve   the   process   associated   with   customer   service   in   making   marketing  effective  in  an  organisation  e.g.  processes  for  handling  customer  complaints,  processes  for   identifying   customer   needs   and   requirements,   processes   for   handling   order   etc    People  

Any  person  who  has  got  contact  with  customers  will  make  an  impression  and  which  can  have   a   product   effect,   either   positive   or   negative   customer   satisfaction.   Hence   Cox  original   will   make   sure   that   the   employees   are   trained   and   well   behaved   with   the  customer  so  that  customers  may  feel  comfortable.    

ACTION  PROGRAMME  -­‐  24  MONTHS  

     

Here,   In  order  to  reach  all   the  segment  Cox  design  a  multi  phased  strategy   for  Bloody  Mary  Spiced  Ketchup.      

The   product   Cox's   Bloody   Mary   Ketchup     will   be   launched   on   15th   April   2012.   The  estimated  completion  date  is  two  to  three  months  after  release.    The  action  programme  comprised  for  the  first  six  month  are  :  The    free  sample  of  Bloody  Mary  Spiced  Ketchup  will   be   given   in   supermarkets,   shopping   mall,   shopping   centres,   and   different  institutions   ect.   Cox'   original   believe   that   it   is   a   very   strongest   strategy   because   we  believe  that  we  can't  grab  a  customer  unless  they  taste  the  product.  Moreover,  we  can  get   the  suggestion   from  the  customer,   so   that  we  can   innovate   the  products.  And  also  will  conduct  promotional  campaign  in  the  urban  areas  of  Kochi  and  Ernakulam  district.  During   this   time   Cox   will   identify   the   brand   ambassador   for   the   product   promotion.  Advertising  campaign  will  be  focus  tested  for  ensuring  the  necessary  impact.  

By  the  end  6-­‐12  months  Cox  will  conduct  the  promotional  campaign  in  the  areas  of  200  KM  of  the  Ernakulam  district.  By  expanding  the  market  Cox  can  reach  more  to  its  target  customers.   In  addition,   the  distribution  channels  will  be  also  strengthened  during  this  time.    Cox  will   launch  new  advertising  campaign   in  Television,  Radio,  and  print  media  commercial   with   brand   ambassador.   This   advertising   campaign   will   enable   the  company   to   send   the  wide  message   over   Kerala   state   or   even   in   India   that   the   great  tasty  Spiece  Bloody  Mary  Ketchup  is  there  in  the  market  for  having  delicious  food.  With  the  help  of  magazine  ads  the  target  market  will  then  match  an  image  with  the  name  of  the  product  more  easily.  The  recognition  of  Bloody  Mary  Ketchup    will  be   faster.  This  will  help  to  achieve  a  continual  increase  in    market  penetration.  

By  the  12-­‐18  month,  Cox  will  conduct  promotional  campaign  with  in  the  areas  of  400km  to   cover   the   most   part   of   the   Kerala   state.   This   will   help   to   achieve   the   marketing  objective  of  achieving  the  market  presence  by  25%.    Moreover,  during  this  time  Cox  will  carry   out   market   research   to   discover   the   market   penetration   of   the   product   in   the  urban  and  rural  areas    covered  in  this  time.  Further,  during  this  time  the  company  will  review  the  market  research  and  will  take  necessary  steps.    

By   the  end  of  18-­‐24  months  Cox  will   intensify   the  promotional  campaign  to  reach  the  target   customers   of  whole   Kerala   State   and   south   India.   This   to   achieve   the   financial  objective  of  enhancing    the  profit  margin  by  2%  per  quarter  through  efficiency.  Further,  Cox  will  review  the  result  of  marketing  research  and  take  corrective  action  for  product  innovation  to  come  up  with  new  flavours  of  and  products.    

IMPLEMENTATION  

It   is   the   process   of   the   converting   plan   into   actions,   and   it   comprise   all   the   activities  which   make   the   marketing   plan   to   perform.   Successful   implementation   of   Cox  marketing  plan   is  depending  on   the  how  the  business  mix   together   its  culture,  people  and   structure  of   the  organisation   into   consistent  program  which  have   support  on   the  marketing  plan.  Cox  original  need  to   impose  constant  key  changes   to  carry  out  all   the  

     

marketing   strategies.   Cox  need   to  make   sure   the  production  needs   to  be  on   time  and  meet  the  quota  demanded  from  the  sellers.  In  addition,  Cox  will  make  sure  the  forms  of  promotion  such  as  advertising,  public  relations,  outdoor,  are  attracting  and  enticing  to  the  target  market  to  fantastic  exposure  for  the  product.  This  will  make  sure  the  success  of   the   product   in   the   target   market.   Besides,   Cox   will   strengthen   the   distribution  channels   and   make   sure   products   are   delivered   to   the   target   customers.    Further,   Cox  will   review   all   the  marketing   activities   and  make   sure   all   objectives   are  achieved  in  the  timely  manner.  

CONTROL  

In   the   first   quarter   the   operation   management   will   make   sure   that   whether   the  marketing   objectives   are   going   under   the   right   direction.   If   it   is   not   on   the   right  direction  then  the  management  will  overview  what  went  wrong  and  what  are  difference  between   expected   performance   and   actual   performance.   Changing   the   programme   of  action  or  even  changing  goals  or  objectives  may  be  required  this.    

• Operating  control  It  comprised  of  evaluation  current  performance  against   the  yearly  plan  and   taking  necessary  steps.  This  make  sure  that  the  Cox  original  achieve  the  sales,  profits,  and  other  objectives  set  out  in  the  annual  plan.  In  addition  it  also  encompasses  defining  the  product  profitability.  .  

• Strategic  Control      Strategic   control   comprised   of   reviewing   at   the   company   basic   strategies   are  appropriate   to   its   opportunities.  Marketing   strategies   and  programme  may  be   out  dated   soon   and   there   would   be   a   requirement   of   recheck   its   entire   approach   to  market  place.  Marketing  audit  is  a  significant  tool.  

MARKETING  AUDIT  

With  reagards  to  the  ongoing  actions  and  volume  there  is  a  requirement  of  monthly  marketing  audit  to  cover  the  all  the  marketing  areas.  They  are  as  following.    

1. Marketing  Environment  2. Marketing  Strategy  3. Marketing  Organization    4. Marketing  Systems  5. Marketing  Mix  6. Marketing  productivity    7. Profitability  

 

BUDGETING    

     

The  estimated  sales  and  marketing  cost  marketing  of  Cox  Bloody  Mary  Ketchup    is  about  Rs.   53   Lakh   (5.3million   Rs)   and   in   the   second   year   Rs.   64   Lakh   (6.4  million   Rs)   See  appendix   I.  Whereas   Sales   forecast   for   the   first   year   is   80   Lakh   (8million)   and   in   the  second  year  is  (Rs  1.2  crores)  See  appendix  II.  Cox  original  has  estimated  Rs.  3Lakh  for    the   samples   supplying   to   target   customers   through   shopping  mall   and   supermarkets  etc.  The  advertising  expense  has  been  estimated  around  Rs.  10  Lakh   for   the   first  year  while  Rs.  15  Lakh   is  estimated   for   the  second  year.  The  advertising  cost  comprised  of  Television,  outdoor,   radio,  magazines,   internet  etc.  The  Cox  original  has   focused  more  on  the  advertising  campaign  to  establish  the  sales  and  to  achieve  continual  increase  in  the  market  in  the    market  presence.  Whereas  the  estimated  public  relations  is  Rs.  5  Lakh  is  for  the  first  year  and  Rs.  10  Lakh  for  the  second  year.  Cox  will  participate  the  special  events  to  reach  to  the  target  potential  customers.  In  order  to  establish  the  Cox  Bloody  Mary   Spiced   Ketchup   brand   the   company  will   appoint   one   cricket   player   as   a   brand  ambassador.  Cox  believe  that  this  is  one  of  the  great  strategy  to  established  the  brands  amongst  the  numbers  of  existing  well  established  brands.  Cox  has  estimated  Rs  15  Lakh  for   the   first   years   and   second   year   also   Rs.   15   lakh   for   the   brand   ambassador.   In  addition,   association   trade   expenses   is   estimated  Rs   15   Lakh   for   the   year   and  Rs.   18  Lakh  for  the  second  year.  Hence  the  total  sales  and  marketing  cost  for  the  firt  year  is  Rs.  53  Lakh  while  Rs.  64  Lakh  has  been  calculated  for  the  second  year.      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

APPENDICES  

I.  SALES  AND  MARKETING  BUDGET  EXPENSES  

  YEAR-­‐1   YEAR-­‐2  ADVERTISING   RS.10  LAKH     RS.15  LAKH  SAMPLES   RS.3  LAKH    PUBLIC  RELATION   RS.5  LAKH   RS.10  LAKH  SOCIAL  MEDIA,  WEBSITE   RS.  5  LAKH   RS.6  LAKH  BRAND  AMBASSADOR   RS.15  LAKH   RS.15  LAKH  ASSOCIATION,  TRADE   RS.15  LAKH   RS.18  LAKH  TOTAL   SALES   AND  MARKETING  EXPENSES  

RS.53  LAKH   RS.64  LAKH  

 

II.  SALES  FORECASTE  

YEAR-­‐1   YEAR-­‐2  RS.80  LAKH  (8.MILLION)   RS.1.2  CRORES  (12,MILLION)    

 

 

 

 

     

 

 

 

 

 

 

 

 

 

REFERENCES  

v Banting,   Peter;   Ross,   Randolph   E.  Journal   of   the   Academy   of   Marketing  Science  (SpringerLink)  1(1).  http://www.springerlink.com/content/mnI58860185200184/.  Retrieved  2010-­‐11-­‐12.  

v Bennett,  AG.  (2009),  The  Big  Book  of  Marketing,  McGraw-­‐Hill  Publication  v Cahill,  DJ  (2006),  Lifestyle  market  segmentation,  Routledge  Publications  v Hooley,   GJ,   Piercy,   NF   and   Saunders,   J   (2008),   Marketing   Strategy   and  

Competitive  Positioning,  Pearson  Education  v Kurtz,   Dave.   (2010).   Contemporary   Marketing   Mason,   OH:   South-­‐Western  

Cengage  Learning  v McDonald,  M.  and  Dunbar,  I  (2004),  market  segmentation:  how  to  do  it,  how  to  

profit  from  it,  Elsevier  Butterworth-­‐Heinemann  Publications  v Pride,  WM,  Hughes,  RJ  and  Kapoor,  JR  (2009),  Business,  John  Wiley  &  Sons  v Pride,  WM,  Hughes,  RJ  and  Kapoor,  JR  (2011),  Business,  John  Wiley  &  Sons  v Seitel,   Fraser   P.   The   Practice   of   Public   Relations.   (Upper   Saddle   River,   NJ:  

Pearson  Prentice  Hall,  2007),  10e.