Sample Marketing Project

7/31/2019 Sample Marketing Project

1/29

THE CAMBRIDGE ASSOCIATION OF MANAGERS

GRADUATE DIPLOMA IN MARKETING MANAGEMENT

MARKETING PLANNING AND CONTROL

UNPRODUCTIVE PRODUCT LIFE CYCLE AS A MARKETING STRATEGY.

Analysis of the Impact of Product Life Cycle as a marketing strategy in acompany of a period of 2 years

A CASE STUDY OF EDCOMM SYSTEMS LIMITED

Done by:

Candidate Number:

Purpose: For Partial fulfillment of Cambridge Association of ManagersGraduate Diploma in Tourism Management (Marketing Planningmodule)

Dated : 2009

Presented to : Cambridge Association of Managers, International Examinations,Cambridge UK


2/29

DECLARATION

I declare that this project is my original work and has not been exhibited or published in

any way and has never been presented for any awards in any institution.

Name: Signature. Date...

This project has been submitted for examination with my approval as the supervisor.

NameSignature .... .Date.

This project has fulfilled the Quality Assurance Policy requirements

NameSignature... Date.

Head of Quality Assurance

This project has been submitted for examinations with my approval as the moderator.

Name.Signature. Date.

Project Assessments coordinator

This project has been submitted for examinations with my approval.

Name. Signature..Date...

Dr. Humphrey Oborah

Head of Missions and Curriculum Manager,

Digital Advisory and learning Centre.


3/29


4/29

EXECUTIVE SUMMARY

The study is about Product Life Cycle as a marketing strategy practiced by Edcomm

Limited. It attempts to describe the stages in which a product undergoes throughout itslifetime in the market.

The main objective of the study is to determine the effectiveness of the product life cycle

used by Edcomm as a marketing strategy which involves establishing the stages a products

lifetime in the market. The researcher also seeks to find out the best stage of a product life

cycle when the sales are up.

The research design used in the study is that of case study research method, an empirical

inquiry that investigates a contemporary phenomenon within its real-life context, especially

when the boundaries between phenomenon and context are not clearly evident. The target

population was hundred{100} the researcher randomly selected the sample size from senior

level management, upper level, middle level management, and operations department and

narrowed it down to twenty respondents, the departments, in stratified random sampling, so

as to achieve desired representation from the various subgroups in the population are more

or less reproduced in the sample. The researcher used few freedom of response. Thequestionnaires were then send to the staff and were collected after three days, because

some of the staff was busy and some were not available. The data obtained was edited for

mistake, coded, key-punched in Excel software then used to validate and verify the

information.

The researcher found that Edcomm System was implementing Product Life Cycle as a

marketing strategy.

No of words: 3,638


5/29

TABLE OF CONTENTS

Contents PAGES

Declaration i

Acknowledgements ii

Executive summary iii

Table of contents iv

List of figures and tables v

CHAPTER ONE: INTRODUCTION

1.1. Background of the study 1

1.2. Background of the company 2

1.3. Organizational structure of the company 4

1.4. Department of study 4

CHAPTER TWO: LITERATURE REVIEW

2.1. Theoretical Review 5

2.2. Empirical Review 8

2.3 Critical Review 8

2.4 Missing Gap 9

CHAPTER THREE: STATEMENT OF PROMBLEM

3.1. Problem Specification 10

3.2. Problem solution 10

3.3. Broad Objectives 10

3.4. Specific Aims 11


6/29

CHAPTER FOUR: RESEARCH DESIGN AND METHODOLOGY

4.1. Research Design and Methodology 12

4.2. Sample Population 12

4.3. Sampling Technique 12

4.4. Data Collection Method 13

4.5. Data analysis Method 15

CHAPTER FIVE: FINDING OBSERVATION AND ANALYSIS

5.1. Results and Findings 16

5.2. Interpretation of the results 17

5.3. Conclusion 19

5.4. Limitation of the study 19

References

Appendix

LIST OF FIGURES AND TABLES PAGE

Figure 1 : Organization structure of Edcomm Systems Limited 4

Tables 1: Details of the respondents at top management 16

2 Details of the respondents at middle level management 17

3. Details of the respondents at operational level 18

Graph 1: Bar chart response from the questionnaire 16


7/29

2. Bar chart response from the questionnaire 17

3. Bar chart response from the questionnaire 18.

CHAPTER ONE: INTRODUCTION

1.1Background of the study

Marketing is an organizational function and a set of process for creating, communicating,

and delivering value to customers and for managing customer relationships in ways that

benefit the organization and its stakeholders.

Marketing is a societal process by which individual and groups obtain what they need and

want through creating and offering and freely exchanging products and services of value

with others.


8/29

Marketing is also based on the premise that the customer is the most important

person to the organization. Most people think of the term customer in the context of

a profit making facility. Whilst it is true that the marketing concept has been more

widely adopted and practiced in the profit making sector of the economy, the

fundamental principles of marketing are equally applicable in not for profit sector, a

factor that is often overlooked.

The aim of marketing is to know and understand the customer so well that the

product or service fits him and sells itself. Ideally marketing should resort in a

customer who is ready to buy. All that should be needed is to make the product or

service available.

After launching the new product, management wants the product to enjoy a long and happy

life. Product Life Cycle is course of products sales and profits over its lifetime. It

involves five distinct stages; Product development, Introduction, Growth, Maturity, and

Decline stages.

1.

1.2 Background of the company

Edcomm Systems Limited was established by a group of ambitious businessmen in 1985 in

Kapiyo area of Bondo District in Kenya. The company has employed approximately 407

employees. It has its sister companies spread over six neighboring countries. It is one of theleading textile mills in East Africa producing International quality standards of textile in

knits, woven, spun, yarn, as well as of knitted garments. It manufactures 100% cotton

combined yarn, complete rage of woven and knitted fabrics, knitted garments of different


9/29

styles, sewing threads, terry towels, mosquito nets and bed sheets for both domestic and

foreign market.

Spinning Division :

The spinning division has over 5,000 spindles and 400 rotors. It caters mainly to the raw

material need of the weaving and knitting division. It also supplies to the domestic

consumers. It manufacturers yarn of 100% cotton, 100% polyester and yarn of various

blends like polyester cotton viscose etc, yarn being manufactured are of carded yarn as well

as combed yarn of various counts ranging from 6s of grey and dyed.

Weaving Division:

The weaving division has over 130 sulzer and the state, of art processing machines from

thies, Bruckner and benninger. The division is the largest sulzer installation in East Africa.

It manufactures very delicate fabrics like lining materials to the toughest canvas materials.

Though it makes a variety of fabrics, it is very specialized in the lining and suiting

materials. It has processing capacity of 18 million meters per annum. The processing and

finishing house of the unit has modern facilities like singeing, raising, calendaring, printing

etc.

2.

Garment Division:

It is one of the largest procedures garment in Kenya. It has a capacity to produce 4 million

garments in an annum. It manufacturers t-shirts, sports shirts, polo-shirts, sweatshirts,

leggings, shorts, jogging suits, industrial suits, mosquito nets, bibs and ladies wears for

both domestic and export materials.


10/29

Mission: To provide world class services and be certified by I. S. O certificate by the

year 2015

Vision: To be the best company in Kenya by the year 2010

Organization Objective : To deliver sufficient and efficient good s and services to our

esteemed customers at a lower cost

3.

1.3 Organizational structure of the company

Managing

Director


11/29

Source: Researcher, 2008

1.4 Department of study-sales & marketing department

T he Sales & Marketing Manager assisted by his deputy ensures that the organization

remains competitive by providing information about what products and services the

markets wants and what sort of prices will pay by having market intelligence on current

sales activities; sales representatives provide weekly sales reports and also designs and

develops advertising materials and campaigns aimed at increasing sales. The corporate has

a functional organization structure. Each department is therefore interdependent of each

other.4.

CHAPTER TWO: LITERATURE REVIEW

2.1 Theoretical Review

GeneralManager

Sales &MarketingManager

FinancialManager

HRMManager

IT &CommunicationManager

Asst. IT &CommunicationManager

Asst. Sales&MarketingManager

Accountant Asst. HRMManager

ProductionManager

Asst.ProductionManager

Laborers

ProductionSupervisor

SupportStaff

AccountsClerk

Secretary


12/29

Product Life Cycle {PLC} is the course of a products sales and profits over its lifetime.

Product life cycle has five distinct stages; Product development, introduction, growth,

maturity, and decline. Not all products follow this product life cycle. The Product Life

Cycle concept can be applied by marketers as a useful of framework for describing how

products and markets work. This is according to Philip. K. and K. L. Keller, 2006, 12e.

The stages through which individual products develop over time are called commonly

known as the Product Life Cycle. The classic product life cycle has four stages;

introduction; growth; maturity and decline. This is according to the website,

tutor2u.net/business/marketing/products-life cycle. Asp.

The product life cycle concept suggests that a product passes through four stages of

evolution. Introduction, growth, maturity and decline. As a product evolves and passes

through theses four stages profit is affected and different strategies have to be employed to

ensure that the product is a success within its market. This is according to the website,

Learn Marketing.net/productlifecycle.htm

The product life cycle has four distinct stages:2.1.1 Introduction Stage :

The Introduction stage starts when the new product is first launched. Introduction takes

time and sales growth is apt to be slow. In this stage, profits are negative or low because of

the low sales and high distribution and promotion expenses. Much money is needed to

attract distributors and build their inventories. Promotion spending is relatively high to

inform consumers of the new product and get them to try it.

5.

2.1.2 Growth Stage :


13/29

If the new product satisfies the market, it will enter a Growth stage, in which sales will start

climbing quickly. The early adopters will continue to buy, and later buyers will start

following their lead, especially if they hear favorable word of mouth. Attracted by the

opportunities for profit, new competitors will enter the market. Profits increase during the

growth stage, as promotion costs are spread over a large volume and as unit manufacturing

costs fall. It improves product quality and adds new product features and models. It enters

new market segments and new distribution channels. It shifts some advertising from

building product awareness to building product conviction and purchase, and it lowers

prices at the right time to attract more buyers. In growth stage, the firm faces a trade-off

between high market share and high current profit. By spending a lot of money on product

improvement, promotion, and distribution, the company can capture a dominant position.

2.1.3 Maturity Stage:

At some point, a products sales growth will slow down, and the product will enter the

Maturity Stage. This maturity stage normally lasts longer than the previous stage, and it

poses strong challenges to marketing management. The slowdown in sales growth results

in many producers with many products to sell. Competitors begin marking down prices,

increasing their advertising and sales promotion, and upping their R & D budgets to find

better versions of the product. These steps lead to a drop in profit. Some of the weaker

competitors start droping out, and the industry eventually contains only well-established

competitors. The company might also try modifying the product-changing characteristics

such as quality, features, or style to attract new users and to inspire more usage. It might

improve the products quality and performance-its durability, reliability, speed and taste. It

can improve its product styling and attractiveness. Or the company might add new features

that expand the products usefulness, safety or convenience.

6.

Finally, the company tries modifying the marketing mix-improving sales by changing one

or more marketing mix elements. It can cut prices to attract new users and competitors

customers.


14/29

It can launch a better advertising campaign or use aggressive sales promotions-trade deals,

cents-off, premiums, and contests. The company can also move into larger market

channels, using mass merchandisers. Finally, the company can offer new or improved

services to buyers.

2.1.4 Decline Stage:

The sales of most product forms and brands eventually dip. The decline may be slow. Sales

may plunge to zero, or they mat drop to a low level where they continue for many years.

This is the Decline Stage. Sales decline for many reasons, including technological

advances, shifts in consumer tastes, and increased competition. As sales and profits decline,

some firms withdraw from the market. Those remaining may prune their product offerings.

They may drop smaller market segments and marginal trade channels, or they may cut the promotion budget and reduce prices further. Keeping weak products delays the search for

replacements, creates a lopsided product mix, hurts current profits, and weakens the

companys foothold on the current profits. For these reasons, companies need to pay more

attention to their aging products. The firms first task is to identify these products in the

decline stage by regularly reviewing sales, market shares, costs, and profit trends. Then,

management must decide whether to maintain, harvest, or drop each of these declining

products. Management may decide to maintain its brand without change in hope that

competitors will leave the industry. Or management may decide to reposition or

reformulate the brand in hopes of moving it back into growth stage of the product life

cycle. Management may decide to harvest the product, which means reducing various costs

and hoping that sales hold up. If successful, harvesting will increase the companys profit

in the short run. Or management may decide to drop the product from the line. It can sell it

to another firm or simply liquidate it at salvage value. If the company plans to find a buyer,

it will not want to run down the product through harvesting.

7.

2.2 Empirical Review

Over the last 20years, Edcomm Systems Limited has established itself in many countries.

Many people are aware of the products that they produce and the quality of the product. In


15/29

some way, the company has not changed much since 1985. But a closer look reveals that

Edcom Systems has made adjustments to keep the brand out of decline. The company has

added stream of new colors, shapes, sizes from the original ones and improved the quality

of the products.

Edcomm Systems Industry has extended the products to new market to other six countries.

The new products include bed sheets, mosquito nets, sewing threads and terry towels. The

company has added new machines to help producing 4 million garments per annum which

meet the large demand of consumers around the continent.

Thus Edcomm Systems continues its long and colorful life cycle. Through smart product

life cycle management, Edcomm Limited has dominated the market almost 25 years.

2.3 Critical Review

The Product Life Cycle helps marketers interpret product and market dynamics. It can be

used for planning and control, although it is useful as a forecasting tool. Suppose a brand is

acceptable to consumers but has a few bad years because of other factors- for instance poor advertising, delisting of a major chain, or entry of a me-too competitive product backed

by massive sampling. Instead of thinking in terms of corrective measures, management

begins to feel that its brand has entered a declining stage.

8.

It therefore withdraws funds from the promotion budget to finance R& D on new item. The

next year the brand does even worse, panic increases.


16/29

Clearly, the Product Life Cycle is a dependent variable to which is determined by

marketing actions; it is not independent variable to which companies should adapt their

marketing programme. Some products in Product Life Cycle die quickly; others stay in the

market until maturity stage for along long time.

2.4 Missing Gaps

The missing gap is that many companies including Edcomm Limited do not consider other

concept in marketing actions which may as well affect the performance of the product.

When determining the product life cycle as a marketing strategy, it should be noted that

other factors like poor advertising, delisting by a major chain or entry of a me-too

competitive product backed by massive sampling may affect how a product perfumes in the

market. The other marketing actions should be analyzed effectively for a product to be

successful in the market.

9.

CHAPTER THREE: STATEMENT OF THE PROBLEM

3.1 Statement of the Problem


17/29

Due to strong performance in Edcomm systems, it was recommended that their product

life cycle be analyzed. It was found that the P.L.C. doesnt do well as a marketing strategy.

Customers are not satisfied with the products in the market. The improvements of the

products do not satisfy the customer hence a big turnover is experienced at the end of the

year. The organization sales volume is reducing drastically

3.2 Proposed Solution

It should focus more on customer satisfaction to improve sales.

It should focus more on when to improve the product and how it is going to satisfy the

customer. They should consider educating the customer with programmes; communicating

with the public and explaining to them about the products and how its will help them once

modified or removed from the market through promotion, advertising etc. Also the

company should use customer focus strategies to achieve organizational goals. This should

be done by looking at which stage aggressive promotion mix should be implemented, when

is the continuous marketing research programme be done so as to improve the sales of the

products.

3.3 Project Broad Objective

The project broad objective of the study is to provide an opportunity to demonstrate

Product Life Cycle as a marketing strategy. This objective can be achieved by the

researcher revealing the various stages a product goes through its lifetime in the market. To

investigate the Strategy used by the company, it requires an analysis of the Product Life

Cycle which has been implemented by Edcomm Systems Limited.

10.3.4 Specific Aims


18/29

To determine the effectiveness of the Product Life Cycle used by Edcomm

Limited as a marketing strategy, this involves establishing the stages of a

Products lifetime in the market.

To find out the best stage of a product life cycle when the sales are growing.

To research on the best marketing strategy to implement on a product

11.

CHAPTER FOUR: RESEARCH DESIGN AND METHODOLOGY

4.1 Research Design and Methodology


19/29

The researcher used Case Study and research method. A Case study entails the detailed and

intensive analysis of a single case. As Stake {1995} observes, case study research is

concerned with the complexity and particular nature of the case in question. It is certainly

true that exponents of the case study design often favour qualitative methods, such as

participant observation and unstructured interviewing, because these methods are viewed

as particularly helpful in the generation of an intensive, detailed examination of a case.

With a case study, the case is an object of interest in its own right and the researcher aims

to provide an in-depth elucidation of it. The researcher design and the collection of data are

guided by specific research questions that drive from theoretical concerns.

4.2 Sample Population

The sample population was hundred {100} staff members, the researcher randomly

selected the sample size from the senior management, middle management and operational

staff. And narrowed it down to twenty {20} staff, and the researcher used Stratified random

sampling, so as to achieve desired representation from various levels of the staff members,

from Edcomm Systems Limited in Kenya.

4.3 Sampling Technique

The researcher used Stratified random sampling-this technique involves when theresearcher divides his population into different Strata by some characteristics which is

known from previous research or theories to be related to the phenomenon under

investigation, and from each of the smaller homogenous groups falling in each Strata, the

researcher draws randomly a predetermined number of units. The advantages of Stratified

sampling are to ensure that the resulting sample will be distributed in the same way as the

population in terms of the stratifying criterion.

12.

4.4 Data Collection Methods.


20/29

The researcher obtained Primary data ; which refers to the information obtained

from the field, i.e. from respondent in the sample and the data that was derived

from questionnaire and interviews.

Questionnaire was used by the researcher to obtain important information

about the population. Each item in the questionnaire was developed to address a

specific objective, researcher question or hypothesis of the study.

The researcher used Structured/ closed-ended questions this refers to questions which

are accompanied by a list of all possible alternatives from the respondents select the answer

that best describes this situation,

Advantages of Structured / Closed-ended questions

o They are easier to analyze since they are in an immediate usable form

o They are easier to administer because each item is followed by

alternative answers

o They are economical to use in terms of time and money.

Disadvantages of Structured / Closed-ended questions

o They are more difficult to construct because categories must be well

thought out.

o Responses are limited, and the respondent is compelled to answer

questions according to the researchers choices.

The researcher also used Unstructured/ open-ended questions - this refers to questions

which give the respondent complete freedom of the response, these free response questions

permit an individual to respond in his or her own words.

13.

Advantages of Unstructured / open-ended questions


21/29


22/29

receptionists and were then collected after three working days. The data obtained was

edited for mistake, coded, key-punched in Excel software then used to validate and verify

the information.

4.5 Data Analysis Methods

The researcher used Charts to analyze the data collected from Edcomm Limited. Charts are

advantageous because they are relatively easy to interpret and understand. Bar charts

represent the number of people falling in each category. Another way of displaying the

same data is through Pie Charts- this allows the relative size of the different categories but

brings out as well the size of each slice relative to the total sample.

15.

CHAPTER FIVE: DATA ANALYSIS, RESULTS AND FINDING


23/29

5.1 Data Tabulation & Analysis

Table 1: Top Level Management

AnalysisSales&Marketing

Manager

FinancialManager

ProductionManager

Those who are satisfied with

P.L.C as a marketing strategy

1 2 1

Those who are not satisfied

with P.L.C as a marketing

strategy

3 2 3

Total 4 4 4

Most of the Top management level felt that the PLC as a marketing strategy that has

been implemented in the organization is not to the satisfaction level. Therefore there

is a need for change

16.

Table 2: Middle level Management

0

0.5

1

1.5

2

2.5

3

Satisfied Need Change

Evaluation of PLC as a marketing strategy for Top Level Management

Sales and Marketing Department

Financial Department

Production Department


24/29


25/29

Manager Those who are satisfied with

P.L.C as a marketing strategy 2 6 3

Those who are not satisfied

with P.L.C as a marketing

strategy

8 5 7

Total 10 10 10

Most of the operational staff level felt that the P.L.C as a marketing strategy that has

been implemented in the organization is not to the satisfaction level. Therefore there

is a need for change

18.

5.2 Conclusion and Recommendations

After describing and evaluating the marketing strategy used in Edcomm Systems Limited,

it is clear that they are using Product Life Cycle {PLC} and looking at the findings in

chapter four it is clear that the company needs to change its marketing strategy because not

0

1

2

3

4

5

6

7

8

Satisfied Need Change

Evaluation of PLC as a marketing strategy withOperational Staff

Sales and MarketingDepartment

FinancialDepartment

Production Department


26/29

every one is satisfied with it. Edcomm Limited needs to change its marketing strategy so as

to identify their potential long-run opportunities given the market experience and core

competencies. The company must develop concrete marketing plans that satisfy the

marketing strategy and tactics going forward.

5.3 Limitation of the study The interview not available for face to face encounter, they were very busy

restricted study to a secondary data examination. Therefore, the researcher was

not able to obtain the primary data.

Time duration, there was not enough time to carry out the research, the

researcher had only a month to carry out the research and produce the report.

Due to confidentiality, some of the staff was unable to answer some of the

questions, fearing that it would jeopardize their jobs.

19.

References:

Lokesh Koul, 2004, Methodology of Educational Research , New Delhi, India


27/29

Philip Kotler, Kevin Lane Keller, 2006, Marketing Management , 12e, Pearson

Prentice Hall, USA

www.google.co.ke

Philip Kotler, Gary Armstrong, 2006, 11e, Principle of Marketing , Pearson

Prentice Hall, USA

Stephen P. Robins & Mary Coulter, 2005, Management 8th Edition , Pearson

Education Inc, New Jersey USA

Tim Hannagan, 2002, Management Concepts and Practices , 3 rd Edition, Pitman

Publishing, Great Britain

Questionnaire:

1. At what level are serving this company?
http://www.google.co.ke/http://www.google.co.ke/


28/29

Senior Management Midlevel Management Operational staff

2. How long have you worked in this organization and what is your job function?

3. What is your opinion on PLC as a marketing strategy?

4. Is your organization using PLC as a marketing strategy?

Yes No

5. If your answer to the above question is YES, indicate which stage has been successful?

_____________________________________________________________________

6. Is the Marketing strategy been used by the organization efficient and effective in your

opinion?

Yes No

7. Which would be the best marketing strategy that the organization should use?


29/29

8. What is the customers perception of Edcomm Systems Limited?

Excellent Very good Good Average Below

average

9. What is the perception of major competitor vs. Edcomm Systems Limited?

10. Has the company participated in any corporate social responsibility?

Yes No

11. If your answer to the above question is YES, indicate the date and event?

Sample Marketing Project

Documents

Transcript of Sample Marketing Project