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THE IMPORTANCE OF UNDERSTANDING THE BUYER

BEHAVIOUR AND THE APPLICATION OF

MARKETING MIX ELEMENTS FOR

ORGANSIATIONAL SUCCESS

Prepared By

M.R.M Aakil

PCMII/2012/KAN/-0008

Slim – Kandy

JULY

Preliminary Certificate in Marketing

SRI LANKA INSTITUTE OF MARKETING

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Contents page

1 Executive summary 04

2 Introduction 05

2.1 Task 01

3 Methodology 07

4 Task 02 08

5 Task 03 13

6 Task 04 16

7 Recommendations 19

8 References 20

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Acknowledgement

Countless thanks to the God for giving me such extraordinary abilities and making us

privileged enough to take part in such an activity.

I would like to convey my sincere gratitude to Sri Lanka Institute of Marketing and

the panel of lecturers at SLIM Kandy who helped in numerous ways to submit this

assignment successfully as it is a partial fulfillment of completing the Preliminary

Certificate in Marketing.

Also my special thanks goes to my teacher Mrs. Pearly Liyanage, Mr.

BharathaHerath and Mrs. TarangiWijesooriya for They co-operation and help. They

fully supported throughout the class. I express my heartiest gratitude to them. They co-

operation made this project a lot much easier

I would also like to thank our seniors, who have been very co-operative and were

ready to help us at anytime. They are a great source of guidance for us.

Finally I take this opportunity to convey my gratitude to Mrs. IndikaHerath and the

administration staff of SLIM-Kandy and all my colleagues for all the support given to

me.

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1.Executive Summary

To : The Examiner

From : PCM Student

Subject : The Importance of Understanding the Buyer Behavior and the

application of Marketing Mix Elements for Organizational Success.

Date : 07th of June 2012

As mentioned in the task oneI have given a brief introduction about the (B2B) Bairaha

Farms PLC and (B2C) Maxies Company pvt (Ltd) and its product portfolio.

In task 02 I have briefly discussed about the product maxies chicken as

my selected product of this assignment. I have carried out a detail analysis of the

marketing mix elements of themaxies chicken. As well as its unique features in its

marketing mix.

In task 03 I have explained With reference to the organizational/business

buying decision process model, I explain the stages that a business organization may go

through in purchasing any one of the business to business products marketed by the

organization.

In task 04 I have briefly discussed about the five levels of the product /

brand which adds customer value.

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2. Introduction

2.1Task 01

a) B2BCompany profile

I would select the largest and leading producer of broiler day old chicks. The company

calling BAIRAHA FARMS (PLC).Baraga is business to business organization. Bairaha

is the largest day old chiks producer in sri lanka.

The company established in 1975.Today there hundreds of such contract farmers

located in several districts.Bairaha farms a public company. The company was awarded

third place for running the best poultry breeder farm in the national live stock.

b) Mission

To continue to be the pre-eminent supplier of quality animal protein and related

products at affordable prices to supplement the nutritional requirement of a growing

nation.

c) Vision

To be a world-class organization that works with integrity and honesty, building lasting

business relationship, continuously seeking opportunity for growth and creating an

environment that develop, motivate and rewards all employees by providing consistent

returns for all its stakeholders.

d) Company products

Processed chicken

Further processed chicken

Cobb day old chicks

Cobb day old parent chicks

Cobb day old chicks arethe selected product.

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e) B2C Company Profile

Iwould select the organization that is MAXIES (pvt) Ltd. TheCompanyproduce broiler

chicken. The company is a consumer company.While we strive for the best quality in

our products to ensure full customer satisfaction, are always anxious to ensure that our

staff and the workers are looked after in every possible way thorough benefits offered

to them to uplift their living standards since we believe that quality of employment is

reflected in the product.

f) Mission

To achieve corporate objectives by harnessing the synergy of available resources,

mainly locally as much as possible,and to develop business and improve the living

standards of employees and those in thecommunity.

g) Vision

To produce the best premium quality broiler chicken and chicken parts in Sri Lanka.

h) Company products

Maxis eggs

Broiler chickens

Broiler chickens are the selected product.

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3. Methodology

Below is view of methodology I used throughout this assignment. Data collection is

„Primary data‟ and „Secondary data‟. Primary data collected research activities that I

had regarding themaxies chicken. And I Observed & discuss with retail outlet owners

about the marketing mix of it.

Secondary data was gathered from the web sites of the product. I gathered data

from Bairaha Company worked person.

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4. Task02

“ Marketing mixes have to be changed from time to time in response to new factors in

the marketing picture. The firm can react to environmental changes in an expedient or a

systematic fashion.”

PHILIP

KOTLER

Marketing mix tools or ingredients are often referred as the 4ps. Product, price, place

and promotion. Marketing mix elements;

4.1 Product

“A product is anything that can be offered to a market for attention. Acquisition, use of

consumption that might satisfy a want or need.”

PHILIPKOTLER

Maxies company main product is broiler chicken. The core is curry food. Lunch time or

dinner. This is a physical good.

Marketers usually classify these products on how consumers go about buying them.

Consumer products include convenience products, shoppingproducts, specially

products and unsought products.The chicken is a convenience productthat‟s including

staple goods. Consumer puts little effort into the purchasing decision and convenience.

4.2 The Marketing mix variables

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4.3 Product related attributes analysis

Variety

(chicken

portions)

Quality

Design Sizes (kgms) Features

Breast ISO 22000,

ISO 14001,

ISO 90001,

Halal

Srilanka,

SLS 1161

with skin or

without packed

in five portions

per pack.

400g-600g Bone or

boneless

Whole chicken ISO 22000,

ISO 14001,

ISO 90001,

Halal

Srilanka,

SLS 1161

with or without

skin and with

or without

giblets too.

small, medium,

large and extra-

large.

Usage has no

limit and up

toyourspreference

s.

Drumstick

ISO 22000,

ISO 14001,

ISO 90001,

Halal

Srilanka,

SLS 1161

with or without

skin and

packed in to

twenty

portions a

pack.

40g-50g

60g-120g

small, medium,

large and extra

large

commonly used

in grilling deep-

frying and BBQ.

Ideal for a curry

to support the

main meal.

Thigh

ISO 22000,

ISO 14001,

ISO 90001,

Halal

Srilanka,

SLS 1161

with or without

skin.

1.8kg (average)

90g-120g small,

medium, large

and extra-large

portions.

very good

support for any

type of

cooking,BBQ

Liver ISO 22000,

ISO 14001,

ISO 90001,

Halal

Srilanka,

SLS 1161

500g Mainly used

curry among

lowis and as

liver pate sand

with sperd

Leg ISO 22000,

ISO 14001,

ISO 90001,

Halal

Srilanka,

SLS 1161

with or without

skin.

10 number pack

240g-270g

BBQ‟s grilling

0r roasting.

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4.4 Price

“Is the amount of money charged for product or service, or the sum of all the values

that consumers exchange for the benefit of having or using the product or service”

The role of price in the marketing mix as well as its role as the generator revenue and

profit has to be difined.In that sense, price is a delicate balance between serving the

customer‟s needs and wants and serving the need of the organization to recoup its costs

of manufacturing and marketing and to make a profit.

Pricing objectives:

Financial

Marketing

Survival

Maxeis company product price is cost based pricing. During Christmas or Avarudu

season they were selling special price to attract more customers.

4.5Price related attributes analysis

Variety

(chicken portions)

Retail price

(per kg)

Retail price

(skinless)

Breast

Whole chicken

Drump stick

Baby drump stick

Thigh

Liver

Leg

Rs .530

Rs.350

Rs.460

Rs.375

Rs.460

Rs.350

Rs.460

_

Rs.400

Rs.510

_

Rs.510

_

Rs.510

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4.6 Promotion

Are the means by which an organization attempts to inform, persuade and

remained consumers directly or indirectly about the products they sell.

Advertising

Any paid form of non-personal presentation and promotion of ideas, goods or

services by an identified sponsor.

Remainder advertising they should be doing it helps to maintain

customer relationships and keep consumers thinking about that product.

The company advertising in the TV commercials and the newspapers.

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4.7 place

“The middleman is not a hired link in a chain forged by a manufacturer, but rather an

independent market, the focus of a large group of customers for whom he buys.”

Includes all activities in order to make the product available to target consumers in

the “right place” and at the “right time”

.

Channels

Maxiescompany mainly distributing in the super markets and retail shops. Retailers sell

direct to the final consumer and may either Purchase direct from the manufacturer.

The key tasks are:

Display and merchandising.

Selling directlyto consumers.

Gathering valuable information from consumers.

Chicken mainly retailingof modern trade intermediaries‟ examples cargail‟s food city,

keels super, Arpico super centers

Manufacture Retailers Consumers

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5. Task 03

5.1 Organisational buying decision process

The decision process by which business buyers determine which products

and services their organization need purchase, and then find, evaluate, and

choose among alternative suppliers and brands.

5.2 problem recognition

The first stage of the busniess buying process, in which someone in the

company recognises a problem or need that can be met by acquiring a product

or a service.problem recognition can result from internal or external stimuli.

Bairaha hatching chicks and selling to consumer companies allthough according

to chick requriments some special season we need more chicks.so the company

want lage scale incubatorto produce most chicks in same time.

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5.3 General need Description

Having recognized a need, the buyer next prepares a general need description

that describes the characteristics and quantity of the needed item.for standard

items,in the same time we want to incubator more than 20000 eggs. Incubator

machine durability we want 5 years,Hatching rate are more than 95%,electricity

two heating methods a general need description.

5.4 Product Specification

The buying organisation next develops the item‟s technical product

specifications,often with help of a value analysis engineering team. The

machine include auto-temperature, auto- humidity controlling, automatic

turning machine, automatic Cooling system are the product specifications.

5.5 Supplier Search

The buyer now conducts a supplier search to find the best vendors.today more

and more companies are turning to the internet to find suppliers so bairaha also

send the tender notice about our requirements to the internet and news papers.

5.6 Proposal Solicitation

In the proposal solicitation stage if the busniess buying process,the buyer invites

qualified suppliers to submit proposal as per to the product specifications.few

companies will send only a salesperson.suppliers

match our required.suppliers present about the company details and product

features.

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5.7 Supplier Selection

The members of the buyingcenter now review the proposals and short lists a

three suppliers based on meeting to the expected product specificatios.During

supplier selection,the buying center oftern will draw up a list of the desired

supplier attributs and their relative importance.the three suppliers petersime,

jamesway,chick masterare the suppliers.three companies warranty and price

same.petersime company after service 24hurs.in the petersime incubator have

mre than faclites.A range of high performance incubators with a clear, open and

simple design aimed at producing top grade chicks, effective cleaning.

5.8 Order-Routine Specification

The buyer now prepares an order-routine specification.bairaha final order

petersime company because there lot of facalites in the incubator we need 3

incubator machine in 5days.warranties 3years.24hurs after service in every day.

5.9 Performance Review

In this stage,the buyer reviews supplier performance.the buyer may contract

users and ask them to rate their satisfaction.the petersime incubator continue the

hatchring bairaha satisfying with the petesime company because they were

giving good service to us.

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6.Task 04

6.1 The five levels of a product

In addition to considering the tangeble and intangible attributes that relate to a

product,it is useful for the marketer to think of the product as comprising a number of

levels.

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6.1 Core Benefits

The fundamental level is the core benefit;the sevice or benefit the customer is really

buying.maxies company core is curry food the chiken.the chicken benefit for lunch

time or dinner time.

.

6.2 Actual or Basic Product

At the second level,the marketer must turn the core benefit in to a basic product.they

need to develop product features,in the maxies company have chicken prison so that

there have a more features.

Design with or with out skin chicken,bone or bonless

QualityISO 22000, ISO 14001,ISO 90001,Halal Srilanka,

SLS 1161

Packagingcleanpolyteen packed,price,modify and expiry dates.

Brandname maxies chicken

Features very good support for any type of cooking.

6.3 Expected Product

At the third level ,the marketer prepares an expected product,a set of attributes and

conditions buyers normally expect when they purchase a product.clearly, when these

attributes exceed the buyer‟s expectations the organisatins the organisation will have

satisfied and delighted customers.the product expected by the customer.

The chicken parts will separate.so we can take only for breast,neck,or any other

parts take a lot.HACCP certified when the maxies chicken buy any person at the socity

the person status will upgrade.but also psychological benefits such as thril.

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6.4 Augumented Product

At the fourth level, these are the additional services and benefit that surround the

core,basic,and the expected product.companies will provide additional benefits to

compitition for market share.the new levels of competition are taking place aroud the

augumented product.In every outlets super markets,retailshops,sathosa and coop city

we should get the maxies chicken.payment also credit.

6.5 Potential Product

The fifth level of the product is the potential product.This level is impotant because it

raises the possibility of future product improvement in order to keep the product

competitive.In the facebook open the maxies social page to join social community and

the season time maxies giving a offer to customers.

Chicken portion varitey2 kg large scale pack have 250g free.

Season time 20% discount

Maxies sosages

piece for BBQ and roasting.

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7. Recommendation

This is a brilliant and unforgettable study for my life in relation to the practical

marketing situations, but for my some questions ware directed to the subject and they

have not given me the real situation between the fitness of practical and theory

situations. Therefore, I suggest them to maintain a small kit to analyses the backbone

theories for every tactical implementation that has used for the brand success.

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8.References

PCM study kit.

BAIRAH and MAXIES Websites.

Presentation slides of Mr. Bharatha Herath, lecturer of SLIM Kandy

Mr.Aathik he worked from Bairaha.