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Marketing Performance Review
This assignment consists of two parts and aims to review the business
performance against the marketing objectives. The review strategy
shall depend on reassessment of power SWOT analysis, positioning
strategy, competitive analysis, target market analysis and marketing
mix strategy. It will include the things need to be reviewed, when to be
reviewed, how often to be reviewed and who would carry out the
research and review.
Performance Review
It is important for the success of any business to keep conducting
regular review of the marketing activities performed by the company.
In Nj Chocolate Company, we identified five aspects of the marketing
strategy that need to be reviewed after the second quarter of
operation in order to check performance against the objectives set by
the company including the following:
1- Power SWOT Analysis
It seems that the 100% pure ingredients of NJ's Chocolate has
competitive advantage in the market and enables the company
to achieve one of the most important objectives of the company
which is promoting the image of the product and increasing the
awareness of the mass people of the quality of NJ's Chocolate.
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Knowing that it's 100% pure organic ingredients chocolate have
motivated many customers to buy the product. The promotion of
the product is going slower than expected because the
marketing activities weren't concentrated enough. It is seems
that the company as expected has difficulty in penetrating the
market on account on other competitors and that shows that
brands such as Patchi chocolate, kit-Kat, Jersey and Nestle
represent great threats to Nj's Chocolate.
The marketing and research department need to reconsider how
can the company gain market share from other strong
competitors by identifying the main weaknesses of these
competitors that can be used by the company to promote its
product.
2-Positioning Strategy
The positioning strategy of NJ's Chocolate is reviewed in terms of
what really has been achieved during the second quarter of
operation against what has been set in the positioning strategy
developed by the company. It seems that the company has
distinguished itself by providing a product made of pure and high
quality ingredients. However, the company needs to review its
positioning strategy especially in the part concerned with
targeting customers on healthy basis because the attempt to
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promote NJ's chocolate on this basis shall create a kind of
complicity amongst the customers who might think that NJ's
chocolate is only suitable for people with diabetic problems.
Instead, it would be better to attempt to promote Nj's chocolate
on basis of chocolate for all and for better life.
Pricing Strategy Analysis : When the pricing strategy is
reviewed after the second quarter of operation that means we
shall review the effect of the introduction stage price on
customers. NJ's chocolate needs to reconsider its pricing rates
during the introduction stage of the product to involve more
reduction in order to attract more customers. There is no
significant difference between the pricing of NJ's chocolate and
the pricing adopted by the key competitors in the market.
However, being a new product NJ's chocolate needs to offer more
incentives for consumers to switch their loyalty from the well-
known brands in Kuwait to develop loyalty for NJ's chocolate. At
the Introduction do a market skimming to see the prices of the
competitors and at this stage I would a set a price to my services
and products. This strategy is appropriate for a new product
introduced to the market. It should be taken into account upon
setting the price of the introduction stage that I shall be
increased in the growth stage.
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3-Competitive Analysis
The importance of reviewing the main strengths and weaknesses of
the main competitors of NJ's Chocolate is to assess their influence on
the marketing and sales its product especially during the introduction
stage of NJ's chocolate during by the end of the second quarter of
operation. It seems that Patch is the strongest competitor for NJ's
chocolate being the main dominant chocolate in the Kuwaiti market.
Patch has strong promotional activities that cover the market
throughout the year. Effective Merchandising is the strongest
promotion activity of Patchi. This kind of promotion is made inside
Patchi luxury boutique through unique displaying of its products, usage
of splendid packaging.
Patchi also offers wide range of chocolates of different names, size
and ingredients. NJ's chocolate has to carry out similar marketing
activities to be able to compete with Patchi, the company has to offer
more promotions especially during public holidays and national
festivals especially in Eid, Christmas, Kuwait National Day, Liberation
Day and Hala February where Patchi offers extensive promotions and
discounts.
4-Target Market Analysis
Reviewing the target markets after six months of operation is very
effective to identify which segment with the highest purchasing power.
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Having reviewed the different segments of the market we managed to
identify that targeting consumers on healthy basis isn’t practical way
to promote the product because it has negative impact on ordinary
people who don't suffer from diabetic or obesity and misunderstood
the marketing concept of the product. Therefore the marketing
department should focus on promoting NJ's chocolate on demographic
basis such as gender and age. segment the market on lifestyle basis is
also very effective as it focuses on different social occasions and
parties.
5- Marketing Mix Analysis
The marketing department would review the four marketing mix to
identify which one of the four needs to be changed. It seems that in
the second quarter of operation, which the company has to reconsider
the placing strategy to coordinate with distributors to display the
product in more popular markets with high density of visitors and not
to restrict the presentation of NJ's chocolate at luxury shops and malls.
The company has to come up with new marketing techniques and
don't confided itself with the conventional ones. Innovation is very
important aspect that should be given more consideration through
encouraging the designers of the marketing campaigns to design more
innovative logo and promotion messages more attractive to the
customers.
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Part 2- Marketing Plan Review Report
The current business objectives include :
1- I will commence my business called NJ Chocolate on April7,2011.
2- My Sales revenues for the year ended April6, 2011 will be KD
5840.
3- My net profits for the year ended on April6, 2012 will be KD 2215
KD
4- My expected total customers for the year ended April6, 2012 will
be KD 16920.
5- My breakeven point will be in September,2011.
Changes made to the current business objectives include:
1- I would postpone my opening date to June 21, 2011. This
because I shall wait till the end of the scholar year in Kuwait to
launch the new product in the beginning of the summer holidays
2- My sales revenues for the year ended June12, 2011 will be KD
7000. Because the sales of the product during the summer
holidays, Ramadan and Eids are expected to grow 25% when we
introduce more innovative marketing techniques.
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3- My net profits for the year ended on April6, 2012 will be KD
14000. Because any profitable business will not exceed its profits
more than 100% from the previous year.
4- We shall try to gain the largest share of chocolate market in
Kuwait, but it isn’t possible to identify a specific number of
customers. We can build up close projection about the number
of customers but it is hard to identify accurate number.
Current Opportunities
- NJ's Chocolate shall be produced in local plant and this would
reduce the costs of transportation and distribution.
- Growing market with strong potentials to increase the
consumption of chocolates in Kuwait including NJ's Chocolate
- NJ's Chocolate is a national product that shall be exempted from
taxation and thus would save taxation costs to the company, which
can be directed to other activities such as marketing
- Global brands of chocolate are very costly so launching our
product for low prices will acquire considerable share of the market.
- There is high potential to expand my business and open new
markets in GCC
Changes made to Current Opportunities
- Growing number of Kuwaiti nationals tend to spend the holidays
in Kuwait which would mean more celebrations, parties and
weddings which consume great deal of chocolate. I made this
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change because we have noticed that travel costs have
increased preventing people from touring around.
- There is a strong trend within the government to add corporate
income taxes on national companies. Therefore the opportunity
of being exempted from taxes doesn’t form strong competitive
advantage to the company. Instead of this opportunity we shall
place another one related to the facilities granted by the Small
Business Fund in Kuwait which provides free-interest loans for
national industries and this would relieve our burden from the
high interest rate of finance companies.
- I would change the third opportunity mentioned above to be that
global brands are only marketed in luxury markets with limited
target customers as it's promoted on basis of income. so we shall
focus on promoting our product in both the luxury and popular
markets in Kuwait to attract the largest share of customers.
- The last opportunity related to expanding my business in new
GCC countries seems a bit costly and requires huge funds. I
would replace this opportunity with another one related to
expanding my business locally through opening new branches in
most Kuwaiti cities. I made this change because local expansion
is far less expensive than regional expansion.
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