Letter of Transmittal:

29th July 20, 2010

To

Nazia Nabi

Faculty

School of Business

University of Information Technology & Sciences

Subject: Term paper of Marketing Management

Dear Sir

In the following pages, we have presented the summer 2010 MKT-241 Term paper, which you
have authorized us to prepare and submit by 29th July 20, 2010 as MKT-241 course requirement.

This particular report has given us the opportunity to get hands on experience regarding different
entry modes of mobile sectors. We are tremendously thankful to you for giving us the
opportunity to learn the practical skills during the course.

We have enjoyed preparing the research paper though it was challenging to finish within the give
time. In preparing this term paper, we have tried our level best to include all “Developing a
marketing plan”

Thank you

Sincerely yours
Md mahfuzur Rahman 08410031

Md Nazrul Islam 08430015

Md Soltan Ali 08510126

Acknowledgement

We would like to thanks the almighty Allah for giving us the patience
and the ability to work hard. First and foremost to our respectable
teacher, Nazia Nabi for his valuable guidance, encouragement and
suggestions during the time of our study. Without it report has not
been possible to be completed and submitted properly. We would also
like to thank the people for their unconditional support they have
provided while this report was been prepared.

We are deeply grateful and honored to my faculty Nazia nabi, without

whom this report would not bear successfulness. His invaluable
guidance, advice and experience have taught us very good result of
our experience.

At Last, We would like to thanks our entire family members for their
extreme care, support and co-operation during the last months.
Executive summary
Giant soft drink company amazing drinks has come under intense scrutiny by
investors due to its inability to effectively carry out its marketing program.

When establishing a re-birthed marketing plan every aspect of the marketing plan
must be critically examined and thoroughly researched. This consists of examining
market research, auditing business and current situation (situation analysis) and
carefully scrutinizing the soft drink industry and possibilities for amazing drinks in
the market. Once It’s have carefully analyzed the internal and external business
environment and critically examined the industry in general the most suitable
marketing strategies will be selected and these strategies will be administered by
effectively and continually monitoring external threats and opportunities and
revising internal efficiency procedures.
Introduction
Amazing-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
internationally. The amazing-Cola Company claims that the beverage is sold in more than 200
countries..The company produces concentrate, which is then sold to licensed Amazing-Cola
bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination with
filtered water and sweeteners. The bottlers then sell, distribute and merchandise Amazing-Cola
to retail stores and vending machines.
Situation Analysis

1.Market Analysis:

The market analysis investigates both the internal and external business
environment. It is vital that Amazing cola carefully monitor both the internal and
external aspects regarding it’s business as both the internal and external
environment and their respective influences will be decisive traits in relation to it’s
success and survival in the soft drink industry.

2.Internal Business Environment

The internal business environment and its influence is that which is to some extent
within the business’s control. The main attributes in the internal environment
include efficiency in the production process, through management skills and
effective communication channels. To effectively control and monitor the internal
business environment, Amazing must conduct continual appraisals of the business’s
operations and readily act upon any factors, which cause inefficiencies in any phase
of the production and consumer process.

3.External Business Environment

The External business environment and its influences are usually powerful forces
that can affect a whole industry and, in fact, a whole economy. Changes in the
external environment will create opportunities or threats in the market place
amazing drinks must be aware off. Fluctuations in the economy, changing customer
attitudes and values, and demographic patterns heavily influence the success of
Amazing Cola’s products on the market and the reception they receive from the
consumers.

SWOT Analysis:
SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a
technique much used in many general management as well as marketing scenarios.
SWOT consists of examining the current activities of the organisation- its Strengths
and Weakness- and then using this and external research data to set out the
Opportunities and Threats that exist.

1.Strengths:
Amazing drinks has been a complex part of world culture for a very long time. The
product's image is loaded with over-romanticizing, and this is an image many
people have taken deeply to heart. The amazing drinks image is displayed on T-
shirts, hats, and collectible memorabilia. This extremely recognizable branding is
one of Amazing-Cola's greatest strengths.

2.Weaknesses:
Weaknesses for any business need to be both minimised and monitored in order to
effectively achieve productivity and efficiency in their business’s activities, Amazing
is no exception. Although domestic business as well as many international markets
are thriving , amazing drinks has recently reported some "declines in unit case
volumes in Indonesia and Thailand due to reduced consumer purchasing power.
"Amazing drinks on the other side has effects on the teeth which is an issue for
health care. It also has got sugar by which continuous drinking of amazing drinks
may cause health problems. Being addicted to amazing drinks also is a health
problem, because drinking of amazing drinks daily has an effect on your body after
few years.

3.Opportunities:
Brand recognition is the significant factor affecting Amazing's competitive position.
amazing drinks brand name is known well throughout 94% of the world today. The
primary concern over the past few years has been to get this name brand to be
even better known. Packaging changes have also affected sales and industry
positioning, but in general, the public has tended not to be affected by new
products. Amazing drinks bottling system also allows the company to take
advantage of infinite growth opportunities around the world.

4.Threats:
Currently, the threat of new viable competitors in the carbonated soft drink industry
is not very substantial. The threat of substitutes, however, is a very real threat. The
soft drink industry is very strong, but consumers are not necessarily interested to it.
Possible substitutes that continuously put pressure on Pepsi . Peps i have already
diversified into these markets, allowing them to have further significant market
shares and offset any losses incurred due to fluctuations in the market. Consumer
buying power also represents a key threat in the industry.

Product Life cycle:

When referring to each and every product or service ever placed before the
consumer i.e. in the long term all the existing products and services are dead. So
every product is born, grows, matures and dies. So in the commercial market place
products and services are created, launched and withdrawn in a process known as
Product Life Cycle.

Furthermore, cost management, product differentiation and marketing have

become more important as growth slows and market share becomes the key
determinant of profitability. In foreign markets the product life cycle is in more of a
growth trend Amazing's advantage in this area is mainly due to its establishment
strong branding and it is now able to use this area of stable profitability to subsidize
the domestic Cola Wars. Insert the picture of the product lifecycle
Marketing Objectives
The objective is the starting point of the marketing plan. Objectives should seek to
answer the question 'Where do we want to go?'. The purposes of objectives include:

-> to enable a company to control its marketing plan.

-> to help to motivate individuals and teams to reach a common goal.
-> to provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and
Timed.

Specific - Be precise about what you are going to achieve

Measurable - Quantify you objectives
Achievable - Are you attempting too much?
Realistic - Do you have the resource to make the objective happen (men, money,
machines, materials, minutes)?
Timed - State when you will achieve the objective.

1.Market Share Objectives:

To gain 60% of the market for soft drink industry by October 2010.

2.Profitability Objectives:
To achieve a 20% return on capital employed by September,2010. 3. Promotional
Objectives
To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Amazing Cola enterprise by 10% .

Selecting Target Market

Once the situation analysis is complete, and the marketing objectives determined,
attention turns to the target market. The soft drink market is very large, and the
business cannot be “all things to all people”, so it must choose which market
segments have the greatest potential. The target market for amazing drinks is very
wide as it satisfy’s the needs for many different consumers, ranging from the
healthy diet consciousness through Diet amazing to the average human through its
best selling drink regular cola. Most Amazing products satisfy all age groups as it is
proven that most people of different age groups consume the amazing drinks
product. This market is relatively large and is open to both genders, thereby
allowing greater product diversification.
There are four broad ways which amazing drinks can segment its market:
-> Mass marketing
-> Concentrated marketing
-> Differentiated marketing
-> Niche marketing
The most apparent method used by amazing drinks is with no doubt the
differentiated marketing method as Coke satisfy’s a range of different markets. Diet
cola satisfy’s the weight consciousness, regular coke, sprite, fanta the average
human, coffee, iced tea etc. Each group of beverages satisfy a particular group of
people but majority the average human.
Developing The Marketing Mix

The marketing mix is probably the most crucial stage of the marketing planning
process. This is where the marketing tactics for each product are determined. The
marketing mix refers to the combination of the four factors (price, promotion,
product, place) that make up the core of a business’s marketing strategy. In this
step of the marketing planning process, marketing mix must be designed to satisfy
the wants of target markets and achieve the marketing objectives. The most
successful businesses have continually monitored and changed their marketing mix
due to respective internal and external factors and have monitored the external
business environment in order to maximize their marketing mix components.

1.Product:

Many Products are physical objects that you can own and take home. But the word
product means much more than just physical goods. In marketing, product also
refers to services, such as holidays or a movie, where you enjoy the benefits
without owning the result of the service.
Businesses must think about products on three different levels, which are the core
product, the actual product and the augmented product. The core product is what
the consumer is actually buying and the benefits it gives. amazing drinks customers
are buying a wide range of soft drinks. The actual product is the parts and features,
which deliver the core product. Consumers will buy the amazing’s product because
of the high standards and high quality of the amazing drinks products.

2.Positioning

Once a business has decided which segments of the market it will compete in,
developed a clear picture of its target market and defined its product, the
positioning strategy can be developed. Positioning is the process of creating, the
image the product holds in the mind of consumers, relative to competing products.
Amazing drinks and Franklins both make soft drinks, although Franklins may try to
compete they will still be seen as down market from amazing drinks. Positioning
helps customers understand what is unique about the products when compared
with the competition. Amazing drinks plan to further create positions that will give
their products the greatest advantage in their target markets. Amazing drinks has
been positioned based on the process of positioning by direct comparison and have
positioned their products to benefit their target market. Most people create an
image of a product by comparing it to another product, thus evident through the
famous battles between amazing drinks products.

2.Branding

It is often hard to say exactly why we buy one company’s product over another.
Companies such as Nike and Adidas spend large amounts of money trying to win
consumers away from their competitors who make products that are very similar.
The popularity of the brand is often the deciding factor. Over the time amazing
drinks has spent millions of dollars developing and promoting their brand name,
resulting in world wide recognition. amazing drinks is the most recognised
trademark, recognised by 94% of the world's population and is the most widely
recognised word after "OK". amazing drinks red and white colours and special
writing are all examples of world-wide trademarks.
There are a number of branding strategies: Generic brand strategy, Individual brand
strategy, Family brand strategy, Manufacturer’s brand strategy, Private brand
strategy and Hybrid brand strategy. Coca Cola utilizes the Individual brand strategy
as amazing drinks major products are given their own brand names e.g Fanta,
Sprite, Coca Cola etc although they may be presented as different lines they
operate under the name of amazing drinks.

3.Packaging

Packaging, which is not as highly perceived by businesses, is still an important

factor to examine in the marketing mix. Packaging protects the product during
transportation, while it sits in the shelf and during use by consumers, it promotes
the product and distinguishes it from the competition. Packaging can allow the
business to design promotional schemes, which can generate extra revenue and
advertisements. Amazing drinks has benefited from packaging the product with
incentives and endorsements on the labelling as a promotional strategy to increase
it’s volume of sales and revenue.

4.Price:

Price is a very important part of the marketing mix as it can effect both the supply
and demand for amazing drinks. The price of Amazing Cola’s products is one of the
most important factors in a customer’s decision to buy. Price will often be the
difference that will push a customer to buy our product over another, as long as
most things are fairly similar. For this reason pricing policies need to be designed
with consumers and external influences in mind, in order to effectively achieve a
stable balance between sales and covering the production costs.
Price strategies are important to amazing drinks because the price determines the
amount of sales and profit per unit sold. Businesses have to set a price that is
attractive to their customers and provides the business with a good level of profit.
Long before a sale was ever made amazing drinks had developed a forecast of
consumer demand at different prices which inevitably determined whether or not
the product came on the market, as well as the allocation of adequate money and
resources to produce, promote and distribute the product.

5.Pricing Strategies And Tactics

The pricing Strategy a business will use will have to focus on achieving the
marketing plan’s objectives and support the positioning of the product, and take
external factors such as economic conditions and competitors in to account. There
are 5 strategies available to business: Market skimming pricing, Penetration pricing,
Loss leaders, Price Points and Discounts. Over the years Amazing Cola has used
Penetration Pricing as a way of grabbing a foothold in the market and won a market
share. It’s product penetrated the marketplace. Once customer loyalty is
established as seen with amazing drinks it is then able to slowly raise the price of its
product. There has been a fierce pricing rivalry between amazing drinks and Pepsi
products as each company competes for customer recognition and satisfaction. Till
now it appears as if amazing has come up on top, although in order to gain long
term profits Coke had to sacrifice short term profits where in some cases it either
went under of just broke even, but as seen it has been all for the best.

Pricing Methods
Good pricing decisions are based on an analysis of what target customers expect to
pay, and what they perceive as good quality. If the price is too high, consumers will
spend their money on other goods and services. If the price is too low, the firm can
lose money and go out of business.
Pricing methods include: Cost based Pricing, Market based pricing and Competition
based Pricing. Over the years Amazing has lost ground here in it’s pricing but has
regained it’s strength as it employed the Competition-based pricing method which
allowed it to compete more effectively in the soft drink market. Leader follower
pricing occurs when there is one quite powerful business in the market which is
thought to be the market leader. The business will tend to have a larger market
share, loyal customers and some technological edge, thus the case currently with
amazing, it was first the follower but through effective management has now
become the leader of the market and is working towards achieving the marketing
objectives of the amazing drinks.

6.Promotion:

In today’s competitive environment , having the right product at the right place in
the right place at the right time may still not be enough to be successful. Effective
communication with the target market is essential for the success of the product
and business. Promotion is the p of the marketing mix designed to inform the
marketplace about who you are, how good your product is and where they can buy
it. Promotion is also used to persuade the customers to try a new product, or buy
more of an old product.
The promotional mix is the combination of personal selling, advertising, sales
promotion and public relations that it uses in its marketing plan. Above the line
promotions refers to mainstream media:Advertising through common media such as
television, radio, transport, and billboards and in newspapers and magazines.
Because most of the target is most likely to be exposed to media such as television,
radio and magazines, amazing drinks has used this as the main form of promotion
for extensive range of products. Although advertising is usually very expensive, it is
the most effective way of reminding and exposing potential customers to amazing
drinks Products. amazing drinks also utilizes below the line promotions such as
contests, coupons, and free samples. These activities are an effective way of
getting people to give your product a go.

7.Place and Distribution:

The place P of the marketing mix refers to distribution of the product- the ways of
getting the product to the market.The distribution of products starts with the
producer and ends with the consumer.
One key element of the “Place/Distribution” aspect is the respective distribution
channels that amazing drinks has elected to transport and sell its product.
Selecting the most appropriate distribution channel is important, as the choice will
determine sales levels and costs. The choice for a distribution channel for any
business depends on numerous factors, these include:
• How far away the customers are;
• The type of product being transported;
• The lead times required; and;
• The costs associated with transport;
There are four types of distribution strategies that amazing drinks could have
chosen from, these are: intensive, selective, exclusive and direct distribution. It is
apparent from the popularity of the amazing drinks product on the market that the
business in the past used the method of intensive distribution as the product is
available at every possible outlet. From supermarkets to service stations to your
local corner shop, anywhere you go you will find the amazing Cola products.

8.Physical Distribution Issues

Amazing drinks needs to consider a number of issues relating to the physical

distribution of its soft drink products. The five components of physical distribution
are, order processing, warehousing, materials handling, inventory control,
transportation. amazing drinks must further try to balance their operations with
more efficient distribution channels.

Order Processing- amazing drinks cannot delay their processes for consumer
deliveries (i.e. delivery to selling centers), as this is inefficient business functioning
and is portrays a flawed image of the product and overall business.
Warehousing and inventory control- warehousing of amazing drinks products is
necessary. Inventory control is another important aspect of distribution as inventory
makes up a large percentage of businesses assets. Choosing the correct and
desired inventory measure that Jackson’s sees as most effective is vital. Jackson’s
must remember though that there are factors involved with inventory control that
can hinder the products sales and customer perceptions (hazards, distribution from
storage facilities, etc…).

Implementing, Monitoring And Controlling

Financial Forecasts

Financial forecasts are predictions of future events relating strictly to expected costs
and revenue costs for future years. There are five major marketing expenditures,
which include research costs, product development costs, product costs, promotion
costs and distribution costs.

Sales force composite is the most logical method in forecasting revenue. This
involves estimates from individual salespeople to sell to work out a total for the
whole business. Once these costs and revenues are forecasted, management can
then decide which combination of marketing mix strategies will deliver the most
sales revenue at the lowest cost.

Implementing

Implementation is the process of turning plans into actions, and involves all the
activities that put the marketing plan to work. Successful implementation depends
on how well the business blends its people, organisational structure and company
culture into a cohesive program that supports the marketing plan.

For its further success, amazing drinks must impose several key changes. Production
needs to be on time and meet the quota demanded from wholesalers. It must also
be efficient so as not to build inventory stocks and inventory prices. The marketing
needs to be motivated and knowledgeable about the product. The forms of
promotion such as advertising must be attracting and enticing to the target market
to get the greatest amount of exposure possible for the product. This will ensure the
success of the product in the stores. Distribution of the product must be efficient.
This problem has already been taken care of with convenient transport routes to
commercial areas and transport already being arranged.

Monitoring And Controlling

Monitoring and controlling allows the business to check for variance in the budget
and actual. This is important because it allows Amazing Cola to take the necessary
actions to meet the marketing objectives. There are three tools amazing drinks
should use to monitor the marketing plan. They are the following:

i. Sales Analysis
The sales analysis breaks down total business sales by market segments to identify
strengths and weaknesses in the different areas of sales. Sellers of amazing drinks
products vary from major retail supermarkets to small corner stores. This gives the
its products maximum exposure to customers at their convenience.

ii. Market Share Analysis

Market share analysis compares amazing drinks business sales performance with
that of its competitors. Amazing Cola looks to increase its market share by over
60%. With the changes amazing drinks is currently undergoing, they aim to regain
an iron fist control of the market. Target market various age groups and lifestyles
from high school students too universities, and male or female.

Iii.Marketing Profitability Analysis

This analysis looks at the cost side of marketing and the profitability of products,
sales territories, market segments and sales people. There are three ratios to
monitor marketing profitability; they are market research to sales, advertising to
sales and sales representatives to sales. The results of these three tools can help
amazing drinks determine any emerging trends, such as the need for a different
product. Comparing these results with actual results gives the business an idea on
when to change.

Market Research

When attempting to implement a new Marketing plan a business must address its
target market and conduct the relevant information to insure the new marketing
plan both differs from the old and is better for the business. When conducting
market research a business must first define the problem and then gather the
appropriate information to solve the problem. There are 3 types of information a
business can gather to solve its problems.
->Exploratory Research which clarifies the problem an d searches for ways to
address it.
->Descriptive Research is used to measure and describe things like the market
potential for a product and characteristics of the target market.
->Casual Research is used to test a hypothesis about a cause and effect
relationship.
amazing drinks through its market research has addressed all three types of
research to define the problem raised by shareholders and gathered information to
serve their needs.

Factors Influencing Consumer Choice

When making decisions on products a business must look at factors that influence
consumer choice such as psychological factors, Sociocultural factors, Economic
factors and Government Factors.

Psychological Factors: such as motivation, perception, lifestyle, personality and

self concept, learning , and attitudes influence the consumers behaviour towards a
product and amazing drinks has addressed this issue by introducing Diet Coke to
satisfy different lifestyles.

Sociocultural factors: such as culture, subculture, socio-economic status, family

and reference groups influence the consumers behaviour towards a product.

Economic factors: such as Disposable income and discretionary income. amazing

drinks has addressed this side of the influence by maintaining a low price on the
price of its products.

Government Factors: such as new regulations, inflation, interest rates all influence
consumer spending and choice.

Conclution
Organisations in our era are extremely sensitive - as they must be - to demographic, political,
technological and economic developments. Environmental changes most affect strategic
perspective. With respect to the marketing mix, quality in the biscuit industry is a key factor.
For example, Arnott's uses its Sunshine brand to compete at the budget end of the market, but
promotes its own brand on the basis of quality at the upper end. Competition with non-biscuit
products such a snack food and confectionery is partly on the basis of packaging. Even though
the two companies have different specialities, the price, distribution and promotion are very
similar. It can be seen that Arnott's have a stronger market share than Nabisco due to stronger
promotion, more variety of products and brand loyalty.

An effective marketing program brings together all of the elements of the marketing mix to
achieve the organisation's marketing objectives by delivering to customers what they want and
need. Thus, the most successful companies will be those that can meet these needs most
effectively