Apply the marketing mix to a range of new products
The charted
ATL - Above the line - Use media that broadcast to mass audiences
BTL - Below the line - Communications
TTL - Through the line - a mixture of both
THE MARKETING MIX IS A RECIPE FOR EFFECTIVE
PRICE
PRODUCT
PROMOTION
PLACE
What is Marketing?
Marketing is editing products price or offer a company already sells to create traffic to the company or product. It can also mean that companies may come with brand new ideas and products to also bring more sales. Companies need to consider appearance when marketing as customers are more likely to pick a visually appealing product.
Marketing is the process of planning and executing the conception, pricing, promoting and disruption of ideas, goods and services to create changes that satisfy consumers needs.
What is Marketing?
Marketing is editing products price or offer a company already sells to create traffic to the company or product. It can also mean that companies may come with brand new ideas and products to also bring more sales. Companies need to consider appearance when marketing as customers are more likely to pick a visually appealing product.
Marketing is the process of planning and executing the conception, pricing, promoting and disruption of ideas, goods and services to create changes that satisfy consumers needs.
Decisions about these are based on the results of market research.
The variables through which a firm carries out its marketing strategy
Marketing is about providing the correct bundle of benefits
Product life cycle;
- Every product goes through a life cycle from development to decline
- Each life cycle is different
- Some products have longer life cycles that others
- Some companies are very sucessful in extending life cycles
Stages of Life Cycle;
- Development
- Introduction
- Growth
- Maturity
- Withrawal
Maturity
Sales reach peak
Cost of supporting the product declines
Ratio of revenue to cost high
Sales growth likely to grow
Market share may be high
Competition likely to be greater
Price elasticity of demand
Monitor market-changes
Saturation
New entrants likely to mean market is flooded
Necessary to develop new strategies
Decline and Withdrawal
Product outlives/outgrows its usefulness/value
Fashions change
Better products appear
Sales decline
Cost of supporting start to rise too far
Decisions to withdraw may be dependent on availability of new products and whether fashions/trends will come around again
Pricing -
Pricing is difficult
Competition pricing - looking at the competitors
Set the price lower, the same price or a high price
Product line pricing is pricing your products in the same price range
Example - Phones and TV's
Bundle- (This strategies is very popular with supermarkets who often offer BOGOF) strategies
Psychological - The reason why this method works is because buyers will still say they purchased their product under £200 or dollars, even though it was a pound away.
Promotion -
The main objectives of promotion are -
To inform prospective costumers of the product and business
Show the benefits
Persuade buyers to buy
Create a b rand
Increase sales
The main objectives of promotion are -
To inform prospective
Aims of promotion -
Advertisement
Public relations
Sales promotion - perfume - clothes promotion
Personal selling to certain individuals
Direct mail
Internet/ e-commerce
Celeb endorsement
Promotional events
WALKERS RESEARCH NOTES.
CASE STUDY: Marketing Mix
Walkers
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place. The most important element of the Marketing Mix is argued to be the Product.
Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organisations using the statistical and analytical methods and techniques of the applied sciences to gain insight or support decision making.
INTRODUCTION
- 1990-1998 Logo.
Walkers is a British snack food manufacturer mainly operating in the United Kingdom and Ireland. Walkers was founded in 1948 in Leicester, England by Harry Walker, and acquired by Lay's owner, in 1989. Lay's, also known as Walkers in the United Kingdom and Ireland is a brand synonymous with the crisp product. But the question this raises is how Walkers have managed to make this happen.
Prior to Walkers rise to fame, Smiths and Golden Wonder controlled the UK crisp market. This didn't change until 1970-1980s when the company were taken over by new owners and the sales quadrupled in a very short period of time.
Even though Walkers may lead the crisp market by a country mile it wasn't always that way. In 1949 Smiths Crisps supplied almost every pub and hotel in Britain. How did Smith’s lose its market dominant position?
Smith’s introduced Quavers in 1968, and Monster Munch in 1977. These were part of the new “extruded snacks” category, which were made using potato flour. (Golden Wonder launched Wotsits in 1970).
Meanwhile between 1962 and 1969, Walkers quadrupled its sales. In 1971 Walker & Son of Leicester sold the company to Standard branches of America.
Branding only works when an organisation behaves and presents itself in a consistent way. Marketing and communication methods, such as advertising and promotions, these are used to create the colours, designs and the images which give the brand it's recognisable face.
PRODUCT
Walkers Crisps use more than 350,000 tonnes of potatoes a year which is the equivalent of 17,000 truck loads. Needless to say, at Walkers only the best potatoes are used.
Once inside they are rechecked, washed and peeled under the watchful eyes of expertly trained staff. The potatoes are sliced to the perfect thickness, fried, then seasoned before being packaged and sealed. Teams of operators check the packets and take samples to ensure the product conforms to Walkers high standards.
Despite Walkers acknowledging the future problem of obesity in their target market by bringing out alternative healthy snacks such as 'SunBites' they still continue to feed the mouths of 11 million people around the world today eating their Walkers based snacks. The PepsiCo brand claims its ability to tantalise consumers taste buds through new flavours is a fundamental ingredient of today’s success, with a 58% share of the British crisp market.
Potatoes, like all crops are on an annual cycle, harvested from July to October. We use potatoes straight off the fields and into our factories during this period, and we put them into potato stores for the period November through to the following June until the next harvest. Our closest farms are less than 30 minutes from our factories, so during harvest time the potatoes can be turned into crisps in packets within an hour, and on shelves in supermarkets within a day or two. At the other end of the scale, during May or June, the potatoes will have been tucked up in a potato store for seven or eight months before being
turned into crisps.
- Every product goes through a life cycle from development to decline
- Development
As you can see Walkers Crisps is in its Maturity form right now and will always be that way if it keeps up coming with new products that sells well, and if it keeps attracting customers to purchase their products. When Walkers Crisps was born it was introduced to people, and was a major shooting star and sales were cracking down the ceiling. Walkers began on it’s Maturity after competition started to arise and offer good quality of crisps. Walkers will go in decline IF a firm stands out from the crowd and makes better quality crisps for even lower price, but that won’t be the end of Walkers, as they will try to come up with even more great flavoured crisps. Walkers crisps is pushing the right buttons to stay where they are at the maturity stage.
The product life cycle doesn’t know what’s going to happen in the future, nor cant predict it. It just tells you when you are growing, entering maturity and declining. Some companies cant take actions because they’re product is not wanted anymore or people hate them. Looking at sales figures can be ore accurate then looking at a product life cycle.
PRICE
A business will use a Market-Led Pricing Strategy if the price of the product helps decide whether the customer will buy it or not. Prices strategies the company I'm looking at Walkers will use is as follows;
Companies like Walkers use 'Penetration Pricing' this is where a business will charge very low prices when the product is new to get customers to then become interested. When the product then becomes established in the market the company will then increase the price of the product.
Other techniques of pricing Walkers use to ensure they beat of any competition in the crisp market is Competition Pricing, this allows the company to set a price for a product or service based on the prices charged by the competition. Competition Pricing is evident where there is a lot of choice but not much differentiation. Price always relies a lot on supply and demand for the products.
Market Price: Where the demand for a product exactly matches its supply.
A business/company will set prices that will almost certainly drive the competition out of the Market or even out of the business. Once the business has driven the competition out of the Market, Prices would increase. This is called Destroyer Pricing.
PROMOTION.
The first The 'Do us a flavour campaign', which ran throughout 2009, has received widespread recognition from the advertising industry for the innovative and interactive way it reached consumers. Cannes, Gramia, Festival of Media and Campaign Media have all recognised the campaign.
Walkers Crisps, which has a history of pioneering new flavours of crisps, launched the 'Do us a flavour' campaign in July 2008. The campaign was developed from the simple insight that the British public enjoys debating the merits of crisp flavours, and tapped into demand from consumers to be engaged in new, more interactive ways. The year-long campaign was incredibly successful and has received industry-wide recognition.
Even though Walkers may lead the crisp market by a country mile it wasn't always that way. In 1949 Smiths Crisps supplied almost every pub and hotel in Britain. How did Smith’s lose its market dominant position?
Smith’s introduced Quavers in 1968, and Monster Munch in 1977. These were part of the new “extruded snacks” category, which were made using potato flour. (Golden Wonder launched Wotsits in 1970).
Meanwhile between 1962 and 1969, Walkers quadrupled its sales. In 1971 Walker & Son of Leicester sold the company to Standard Brands of America.
At the current time in 1972 Golden Wonder had a market share of 39 percent, Smiths 32 percent and Walkers 12 percent. Still heavily regional, by 1974 Walkers claimed 50 percent of the Midlands crisp market.
PLACE
Place refers to the Distribution Channel of a product - all aspects related to how a product is 'moved' from the manufacturer to the customer. The Distribution Channel can be Direct or Indirect.
Direct - Where the provider of the Product sells directly to the customer without the 'middle man' - the wholesaler or agent.
Indirect - Is where the provider of the product sells to the customer through a shop, possibly supplied by a 'middle man' such as an agent or wholesaler. In this process, Products pass through what is known as a supply chain.
Walkers use what is called "E-Commerce" where sales are being made to the customer using methods which pass by the traditional shop. Selling through websites is now the new fastest growing sales method worldwide. The growth of the internet has encouraged even small businesses to sell Products directly to the customer. In 1999 1% of UK purchases were made in this exact way.
Place refers to the Distribution
Walkers' potatoes reach the factory by lorry, where they are floated out by water to keep them from bruising and ensure they stay as beautiful as possible! They are then washed, peeled and sliced. After they are sliced they are cooked in a blend of Sunseed and Rapeseed oil for around three minutes to give them their golden colour and perfect taste. We then add our delicious seasoning. To make sure our crisps are perfect we run taste tests six times a day where we check for colour, crunch, flavour and even smell! We hope that helps.
Walkers' closest farms are less than 30 minutes from our factories, so during harvest time the potatoes can be turned into crisps in packets within an hour, and on shelves in supermarkets within a day or two!
Promotion
Campaign
1.2 million flavour entries were received and over 1 million votes eventually cast - and with 1 in 5 households trying one of the finalist flavours. In the end, Builders Breakfast was the well deserved winner.
However, the new 2015 campaign includes Beef & Onion, Cheese & Chive , Barbecue, Toasted Cheese, Lamb and Mint and Marmite!
Walkers Crisps is a UK brand with a large 47% share of the British crisp market. The company is owned by PepsiCo Inc, (which also owns the US crisp producer Frito-Lay) and has sales of $85bn each year. The Walkers site in Leicester, England, is arguably one of the largest crisp production plants in the world, producing more than 11 million bags of crisps a day and using about 800t of potatoes that's 280,000t a year.
The company also introduced a healthier baked version of its crisps, called Baked Walkers. The baked crisps come in different flavours and sizes. They are available in the normal snack pack, multipacks, 14s and 26-pack sizes
Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in preference over others.
There are several types of promotions. Above the line promotions include advertising, press releases, consumer promotions (schemes, discounts, contests), while below the line include trade discounts, freebies, incentive trips, awards and so on. Sales promotion is a part of the overall promotion effort.
- Personal selling: one of the most effective ways of customer relationship. Such selling works best when a good working relationship has been built up over a period of time.
This can also be expensive and time consuming, but is best for high value or premium products.
- Sales promotions: this includes freebies, contests, discounts, free services, passes, tickets and so on, as distinct from advertising, publicity and public relations.
- Public relations: PR is the deliberate, planned and sustained effort to establish and maintain mutual understanding between the company and the public. Social media sites such as Twitter, Facebook and YouTube are used to announce these promotions and communicate with their audience.
http://themarketingagenda.com/2015/02/15/walkers-product-development/
https://www.walkers.co.uk/faq/production-process
http://www.packaging-gateway.com/projects/walkerscrisps/
Maturity
Sales reach peak
Cost of supporting the product declines
Ratio of revenue to cost high
Sales growth likely to grow
Market share may be high
Competition likely to be greater
Price elasticity of demand
Monitor market-changes
Saturation
New entrants likely to mean market is flooded
Necessary to develop new strategies
Decline and Withdrawal
Product outlives/outgrows its usefulness/value
Fashions change
Better products appear
Sales decline
Cost of supporting start to rise too far
Decisions to withdraw may be dependent on availability of new products and whether fashions/trends will come around again
Pricing -
Pricing is difficult
Competition pricing - looking at the competitors
Set the price lower, the same price or a high price
Product line pricing is pricing your products in the same price range
Example - Phones and TV's
Bundle- (This strategies is very popular with supermarkets who often offer BOGOF) strategies
Psychological - The reason why this method works is because buyers will still say they purchased their product under £200 or dollars, even though it was a pound away.
Promotion -
The main objectives of promotion are -
To inform prospective costumers of the product and business
Show the benefits
Persuade buyers to buy
Create a b rand
Increase sales
The main objectives of promotion are -
To inform prospective
Aims of promotion -
Advertisement
Public relations
Sales promotion - perfume - clothes promotion
Personal selling to certain individuals
Direct mail
Internet/ e-commerce
Celeb endorsement
Promotional events
WALKERS RESEARCH NOTES.
CASE STUDY: Marketing Mix
Walkers
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place. The most important element of the Marketing Mix is argued to be the Product.
Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organisations using the statistical and analytical methods and techniques of the applied sciences to gain insight or support decision making.
INTRODUCTION
- 1990-1998 Logo.
Walkers is a British snack food manufacturer mainly operating in the United Kingdom and Ireland. Walkers was founded in 1948 in Leicester, England by Harry Walker, and acquired by Lay's owner, in 1989. Lay's, also known as Walkers in the United Kingdom and Ireland is a brand synonymous with the crisp product. But the question this raises is how Walkers have managed to make this happen.
Prior to Walkers rise to fame, Smiths and Golden Wonder controlled the UK crisp market. This didn't change until 1970-1980s when the company were taken over by new owners and the sales quadrupled in a very short period of time.
Even though Walkers may lead the crisp market by a country mile it wasn't always that way. In 1949 Smiths Crisps supplied almost every pub and hotel in Britain. How did Smith’s lose its market dominant position?
Smith’s introduced Quavers in 1968, and Monster Munch in 1977. These were part of the new “extruded snacks” category, which were made using potato flour. (Golden Wonder launched Wotsits in 1970).
Meanwhile between 1962 and 1969, Walkers quadrupled its sales. In 1971 Walker & Son of Leicester sold the company to Standard branches of America.
Branding only works when an organisation behaves and presents itself in a consistent way. Marketing and communication methods, such as advertising and promotions, these are used to create the colours, designs and the images which give the brand it's recognisable face.
PRODUCT
Walkers Crisps use more than 350,000 tonnes of potatoes a year which is the equivalent of 17,000 truck loads. Needless to say, at Walkers only the best potatoes are used.
Once inside they are rechecked, washed and peeled under the watchful eyes of expertly trained staff. The potatoes are sliced to the perfect thickness, fried, then seasoned before being packaged and sealed. Teams of operators check the packets and take samples to ensure the product conforms to Walkers high standards.
Despite Walkers acknowledging the future problem of obesity in their target market by bringing out alternative healthy snacks such as 'SunBites' they still continue to feed the mouths of 11 million people around the world today eating their Walkers based snacks. The PepsiCo brand claims its ability to tantalise consumers taste buds through new flavours is a fundamental ingredient of today’s success, with a 58% share of the British crisp market.
Potatoes, like all crops are on an annual cycle, harvested from July to October. We use potatoes straight off the fields and into our factories during this period, and we put them into potato stores for the period November through to the following June until the next harvest. Our closest farms are less than 30 minutes from our factories, so during harvest time the potatoes can be turned into crisps in packets within an hour, and on shelves in supermarkets within a day or two. At the other end of the scale, during May or June, the potatoes will have been tucked up in a potato store for seven or eight months before being
turned into crisps.
- Every product goes through a life cycle from development to decline
- Each life cycle is different
- Some products have longer life cycles that others
- Some companies are very successful in extending life cycles
Stages of Life Cycle;
- Development
- Introduction
- Growth
- Maturity
- Withdrawal
Maturity
Sales reach peak
Cost of supporting the product declines
Ratio of revenue to cost high
Sales growth likely to grow
Market share may be high
Competition likely to be greater
Price elasticity of demand
Monitor market-changes
Saturation
New entrants likely to mean market is flooded
Necessary to develop new strategies
Decline and Withdrawal
Product outlives/outgrows its usefulness/value
Fashions change
Better products appear
Sales decline
Cost of supporting start to rise too far
Decisions to withdraw may be dependent on availability of new products and whether fashions/trends will come around againMaturity
Sales reach peak
Cost of supporting the product declines
Ratio of revenue to cost high
Sales growth likely to grow
Market share may be high
Competition likely to be greater
Price elasticity of demand
Monitor market-changes
Saturation
New entrants likely to mean market is flooded
Necessary to develop new strategies
Decline and Withdrawal
Product outlives/outgrows its usefulness/value
Fashions change
Better products appear
Sales decline
Cost of supporting start to rise too far
As you can see Walkers Crisps is in its Maturity form right now and will always be that way if it keeps up coming with new products that sells well, and if it keeps attracting customers to purchase their products. When Walkers Crisps was born it was introduced to people, and was a major shooting star and sales were cracking down the ceiling. Walkers began on it’s Maturity after competition started to arise and offer good quality of crisps. Walkers will go in decline IF a firm stands out from the crowd and makes better quality crisps for even lower price, but that won’t be the end of Walkers, as they will try to come up with even more great flavoured crisps. Walkers crisps is pushing the right buttons to stay where they are at the maturity stage.
The product life cycle doesn’t know what’s going to happen in the future, nor cant predict it. It just tells you when you are growing, entering maturity and declining. Some companies cant take actions because they’re product is not wanted anymore or people hate them. Looking at sales figures can be ore accurate then looking at a product life cycle.
PRICE
A business will use a Market-Led Pricing Strategy if the price of the product helps decide whether the customer will buy it or not. Prices strategies the company I'm looking at Walkers will use is as follows;
Companies like Walkers use 'Penetration Pricing' this is where a business will charge very low prices when the product is new to get customers to then become interested. When the product then becomes established in the market the company will then increase the price of the product.
Other techniques of pricing Walkers use to ensure they beat of any competition in the crisp market is Competition Pricing, this allows the company to set a price for a product or service based on the prices charged by the competition. Competition Pricing is evident where there is a lot of choice but not much differentiation. Price always relies a lot on supply and demand for the products.
Market Price: Where the demand for a product exactly matches its supply.
A business/company will set prices that will almost certainly drive the competition out of the Market or even out of the business. Once the business has driven the competition out of the Market, Prices would increase. This is called Destroyer Pricing.
PROMOTION.
The first The 'Do us a flavour campaign', which ran throughout 2009, has received widespread recognition from the advertising industry for the innovative and interactive way it reached consumers. Cannes, Gramia, Festival of Media and Campaign Media have all recognised the campaign.
Walkers Crisps, which has a history of pioneering new flavours of crisps, launched the 'Do us a flavour' campaign in July 2008. The campaign was developed from the simple insight that the British public enjoys debating the merits of crisp flavours, and tapped into demand from consumers to be engaged in new, more interactive ways. The year-long campaign was incredibly successful and has received industry-wide recognition.
Even though Walkers may lead the crisp market by a country mile it wasn't always that way. In 1949 Smiths Crisps supplied almost every pub and hotel in Britain. How did Smith’s lose its market dominant position?
Smith’s introduced Quavers in 1968, and Monster Munch in 1977. These were part of the new “extruded snacks” category, which were made using potato flour. (Golden Wonder launched Wotsits in 1970).
Meanwhile between 1962 and 1969, Walkers quadrupled its sales. In 1971 Walker & Son of Leicester sold the company to Standard Brands of America.
At the current time in 1972 Golden Wonder had a market share of 39 percent, Smiths 32 percent and Walkers 12 percent. Still heavily regional, by 1974 Walkers claimed 50 percent of the Midlands crisp market.
PLACE
Place refers to the Distribution Channel of a product - all aspects related to how a product is 'moved' from the manufacturer to the customer. The Distribution Channel can be Direct or Indirect.
Direct - Where the provider of the Product sells directly to the customer without the 'middle man' - the wholesaler or agent.
Indirect - Is where the provider of the product sells to the customer through a shop, possibly supplied by a 'middle man' such as an agent or wholesaler. In this process, Products pass through what is known as a supply chain.
Walkers use what is called "E-Commerce" where sales are being made to the customer using methods which pass by the traditional shop. Selling through websites is now the new fastest growing sales method worldwide. The growth of the internet has encouraged even small businesses to sell Products directly to the customer. In 1999 1% of UK purchases were made in this exact way.
Place refers to the Distribution
Walkers' potatoes reach the factory by lorry, where they are floated out by water to keep them from bruising and ensure they stay as beautiful as possible! They are then washed, peeled and sliced. After they are sliced they are cooked in a blend of Sunseed and Rapeseed oil for around three minutes to give them their golden colour and perfect taste. We then add our delicious seasoning. To make sure our crisps are perfect we run taste tests six times a day where we check for colour, crunch, flavour and even smell! We hope that helps.
Promotion
Campaign
1.2 million flavour entries were received and over 1 million votes eventually cast - and with 1 in 5 households trying one of the finalist flavours. In the end, Builders Breakfast was the well deserved winner.
However, the new 2015 campaign includes Beef & Onion, Cheese & Chive , Barbecue, Toasted Cheese, Lamb and Mint and Marmite!
Walkers Crisps is a UK brand with a large 47% share of the British crisp market. The company is owned by PepsiCo Inc, (which also owns the US crisp producer Frito-Lay) and has sales of $85bn each year. The Walkers site in Leicester, England, is arguably one of the largest crisp production plants in the world, producing more than 11 million bags of crisps a day and using about 800t of potatoes that's 280,000t a year.
The company also introduced a healthier baked version of its crisps, called Baked Walkers. The baked crisps come in different flavours and sizes. They are available in the normal snack pack, multipacks, 14s and 26-pack sizes
Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to buy the product, in preference over others.
There are several types of promotions. Above the line promotions include advertising, press releases, consumer promotions (schemes, discounts, contests), while below the line include trade discounts, freebies, incentive trips, awards and so on. Sales promotion is a part of the overall promotion effort.
- Personal selling: one of the most effective ways of customer relationship. Such selling works best when a good working relationship has been built up over a period of time.
This can also be expensive and time consuming, but is best for high value or premium products.
- Sales promotions: this includes freebies, contests, discounts, free services, passes, tickets and so on, as distinct from advertising, publicity and public relations.
- Public relations: PR is the deliberate, planned and sustained effort to establish and maintain mutual understanding between the company and the public. Social media sites such as Twitter, Facebook and YouTube are used to announce these promotions and communicate with their audience.
http://themarketingagenda.com/2015/02/15/walkers-product-development/
https://www.walkers.co.uk/faq/production-process
http://www.packaging-gateway.com/projects/walkerscrisps/
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