Rithika Marketing

8/10/2019 Rithika Marketing

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'Marketing is so basic that it cannot be considered as separate function. It is

the whole business seen from the point of view of its final result, that is, from

the customer's point of view'.

- Peter Drucker.

Marketing starts with the human needs and wants. People need food, air, water, clothing and shelter to

survive. Wants are desires for specific satisfiers of these deeper needs. For example, one needs food and

wants a pizza, needs clothing and wants a Raymond shirt. Demands are wants for specific products that

are backed up by an ability and willingness to buy them. For example, many people want to buy a luxury

car but they lack in purchasing power.

McCarthy has provided an easy to remember description of the marketing mix variables. Over the years,

the terms-Marketing mix and four Ps of marketing-have come to be used synonymously.

Product: The most basic marketing mix tool is product, whichstands for the firms tangible offer to the

market including theproduct quality, design, variety features, branding, packaging,services, warranties

etc.

Price: A critical marketing mix tool is price, namely, the amount ofmoney that customers have to pay

for the product. It includesdeciding on wholesale and retail prices, discounts, allowances, andcredit

terms. Price should be commensurate with the perceivedvalue of the offer, or else buyer will turn tocompetitors in choosingtheir products.

Place: This marketing mix tool refers to distribution. It stands forvarious activities the company

undertakes to make the producteasily available and accessible to target customers. It includesdeciding

on identify, recruit, and link various middlemen and marketing facilitators so that products are

efficiently supplied tothe target market.

Promotion: The fourth marketing mix tool, stands for the variousactivities the company undertakes to

communicate its productsmerits and to persuade target customers to buy them. It includesdeciding on

hire, train, and motivate salespeople to promote itsproducts to middlemen and other buyers. It also

includes settingup communication and promotion programs consisting ofadvertising, personal selling,

sales promotion, and public relations.

Marketing mix or 4 Ps of marketing is the combination of a product, its price, distribution and

promotion. It must be designed by marketers in such a manner that these four elements together must

satisfy the needs of the organisations target market, and at the same time, achieve its marketing

objectives


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Segmentation, Targeting, and Positioning

Market segmentation is defined as "the process of taking the total, heterogeneous market for a product

and dividing it into several sub markets or segments, each of which tends to be homogeneous in all

significance. The markets could be segmented in different ways. For instance, instead of mentioning a

single market for 'shoes', it may be segmented into several sub-markets, e.g., shoes for executives, doctors

college students etc. Geographical segmentation on the very similar lines is also possible for certain

products.

Segmentation

The bakery will be selling its baked goods through several different channels of distribution. Each of

these channels will attract different types of people. These channels include local bakeries and super

markets and indirectly through hotels.

Targeting

Market segmentation reveals the market-segment opportunities facing the firm. The firm now has to

evaluate the various segments and decide how many and which ones to serve.

This business is targeting the market of Hotel as the wholesale market and small retail bakeries for as

over the counter and retail market. As per the segmentation the age group of the target people is 20 to

65 and it covers almost all the general public who may consume bakery products in bulk and on weekly

basis.

Positioning

Suppose a company has researched and selected its target market. If it is the only company serving the

target market, it will have no problem in selling the product at a price that will yield reasonable profit.

However, if several firms pursue this target market and their products are undifferentiated, most buyers

will buy from the lowest priced brand.People consume our products as they are freshly baked and

consumes of no adulterants. We are having less middle man to share our profits so our price is little bit

low compared to our competitors so it is positioned as economy class products with good quality.


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Strengths

An experienced baker with a great work

ethic. This will help to ensure quality

products are produced in due time.

The owner has her degree in Hotel

management and home science.

There are five family members willing to

work full time at the bakery. This means

that there are enough personnel to fill all

required positions.

The bakery will be located on the farm so

there is no need for any of the workers to

commute and land will not have to be

rented from an outside source.

The family has a strong commitment to

succeed.

The owner and the h family are well liked

and have a good reputation in the local

area. This will help attain and keep

consumer loyalty.

The family already owns a van that can be

used for delivery, so they will not have to

buy one.

The bakery is located near a busy highway

making it easier to make deliveries and for

customers to come to the bakery.

Weaknesses

The bakery is not located directly, making it less

accessible to tourists passing by.

The assistant bakers are relatively

inexperienced in baking and will require some

time at the job before experience is gained.

All employees of the bakery are part of the

family. This could cause stress in

employee/employer relationships as well as in

family relationships.

Costs of production per unit are relatively high

due to high overhead costs and low product

demand.

The family farm does not currently have natural

gas, therefore ovens must be electric.

In order to turn a respectable profit the bakery

will have to increase the price of its bread to a

value higher than that of many of its

competitors.


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Opportunities

There are few bakeries making

products from scratch in the local

area.

Rural bakeries tend to have less

competition than urban bakeries.

Consumers are making a move

towards a healthier lifestyle which

includes whole wheat and fresh made

products which the bakery will supply.

There is a lot of travel in the area

which may bring consumers into the

bakery who are passing by and would

like to stop for a drink or treat.

Homemade, natural and organic made

products are more popular in urban

populations and the trend continues

to rise.

The dominant age is the age of the

bakerys target market.

Threats

Many of the local bakeries and grocery

stores sell whole wheat and other

specialty bread products at a price

that is more competitive.

Many of the local grocery stores have

their own instore bakeries and

therefore do not want to sell

products, as it would be in direct

competition with theirs.

If the current preference for the

healthier breads and grain products

changes to a new health craze-which

does not include these goods, sales at

the bakery may drop significantly.

Utility prices or wholesaler prices may

increase leading to a higher cost of

goods sold.

Increases in fuel prices will increase

the Country Ovens delivery costs.

The dominant age of Saskatoon is

below that of the bakerys target

market.


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Channels of Distribution

Distribution methods are limited, with only two main methods which are over-the-counter retailing and

wholesaling. Products will be distributed through the van to retailers to sale it to end local customers.

Out of store products will be distributed in the van to the Super market, the small retail bakeries.

Wholesaling will be done to hotels twice in a week and rest of will be done by retailing. Deliveries to the

hotels will be every Saturday & Wednesday throughout the year. Competitors in the area will be

distributing products in a similar method.

The over-the-counter type distribution will be suited more towards breads, buns, Cup cakes. This

method will be more cost effective as there will be no middle man and the profits will be shared by the

manufacturer alone. This method is the best match for the business because profits will be higher on a

per item basis. Most of the competitors use the over-the-counter distribution method as well.

The wholesaling method will only include breads and buns because of the nature of the stores. These

products will match both the hotel products in that they are both selling high quality, specialty products.

These types of channels will reach the major target markets. The over-the-counter method will reach

the target market readily, because the business is targeting a demographic which is ages 20-65. This

demographic will be of youngsters who will visit fast food frequently and the household who prefer the

items for household use

Over-the-counter retailing will require sales support to work behind the counter at both the in the

bakery and the super market, while the wholesaling method will not require any extra staff.

Rithika Marketing

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