Marketing Planning and Control Essay Sample
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Marketing Planning and Control Essay Sample
2 A) The four objectives of market plans for the future by Z Energy are:- Product price promotion and place. Product : For Z energy their main product is the fuel they sell in the market to attract its customers so it is very imortant for them to maintain the quality of the fuel they are selling so as to stay in the competitive market. The fuel they are selling should be more clean so that it improves the engine life and helps the car in running longer and should have special additives for improved efficiency.
Their premium segment of fuel that id Z95 is a bit more expensive than its unleaded Z91 and its a bit difficult to explain the customer about its qualities. Inspite of selling fuel Z has also an instore shop which has all the products raging from grocery to deli to drinks and a separate CAR CARE section which has all the products that a motorist needs while he is on the road. All this is presented in a manner that the customer when entering and leaving the shop has fulfilled all his requirements and is happy by his overall experience inside and outside the shop.
Price: The price of the fuel and products are all decided and controlled by the Z energy head office in Wellington. It also depends on the quality and quantity of the product. The variable and fixed cost of the product are also kept in mind so that the product is in the reach of the customers. Making profit from the product they are selling is also very important as it decides the profit and loss figures of the company. The price and promotions are alll set according to the competitor prices. The promotions at Z will also differ from that in Caltex and BP. Z will always laumch cheaper deals so as to attract more customers and increase their in shop sales. For example Powerade is always on a promoion of 2 for $6 so as to attract the people who are coming to fill fuel in the morning hours and the people who are heading towards work.
Promotion: For Z energy promotions is a very important game changing strategy as it decides the sale ratios and figures. Before Z launches any new promotion and stuff it first does the complete market ananlysis and categorise it int segments that which segment of people are after which specific products.There will be four board strategies such as diversification production market product penetration and product development. For example Z has recently launched a Road trip Combo which includes a small box of M&M ,Chipis and a red bull for the people who often are out for tris and are hungry while on their way. Z also has a proper customer feedback system that is called the EMPATHICA which allows the customers to rate their experience and a lucky winner gets $500 every week. All these strategies increse their brand value in the market.
Place: Place has a very major role in the promotion of a product. The density of the people living in that particular area decides that how the product is going to stand in that particular market. The area with high density of people is always considered as a good market for a product to be launched and promoted. Different Z stations vary in the price of their fuel and their products. For example the price of fuel at Z VIC is 203.9 whereas the price in Z TRENTHAM is 202.9. The difference is also beacuse TRENTHAM is a low income area as compared to lower hutt so like this the price varies according to the locations where the stations are located.
2. b) Growth strategy: The strategy used by Z energy for its marketing in the wellington region is by winning by winning the large market share even for short terms earning at some expenses. There will be four board strategies such as diversification production market product penetration and product development. For example the Z energy located at 453 Hutt Road Alicetown aims at the growth of their store in the hutt region and petone by beating their competitors in service and product qualityso that more people come to the shop increasing the overall sales of the store.
Diversification strategy: The strategy used by Z energy in the Hutt city is is diversification this will helps to increase the sales volume with the development of new product and new marketing. It is done to exand their business and to increase the number of people coming in the shop. Z energy will use diversification to expand the market by launching different promotions. For example the Z energy station at Hutt Road has recently launched a promotion that is two cadbury chocolates for $4. This gives a tough competition to its competitors as well as the supermarkets which are nearby the station.
Horizontal integration strategy: This strategy is described as ownership and control is mainly by business. Horizontal integration occurs when the organisation or firm is taken over by another firm or organisation which is of the same industry and has the same stages of production. This helps in creating the monopoly which is also called as horizontal monopoly. For example if Z energy overtakes a small gas station nearby its store and start marketin is products and services from there as both of them are in the same profession of selling gas and other stuff to their customers.
Vertical Integration strategy: The strategies which seeks and control all the activities including the production transportation and marketing of the product. As the process in which the several steps of distribution production and services are controlled by the single company in order to increase the company’s reputation in the market place. For example all the pricing and promotions is done by the Z energy head office that is in wellington and there is no involvement of the local retailers in this. The company which owns Z that is Infratil and Superranuation funds looks all over its accounts and policies and how to present the company in the external market.
Market dominance strategy four part that the marketer can will consider: followers leaders challengers and niches
Leader : The marketing leader is dominant in the industry and has sustainable market share and extensive distribution arrangement as they are responsible for crafting marketing strategies. ·Expanding the marketing by promoting and selling their premium products(Z95) ·Expanding their business by identifying their competitors like Caltex,BP and MOBIL.
Followers: They do not hold a dominant position but have a strong market following. As the market leader are parallel to the development strategies . As they will gain good share in the market with low risk.
Challengers: In strong and big organisations the marketers are not dominant but they have competitive and aggressive strategies to gain more share in the market.
Niches: In this the organisation tend to focus on few selected targeted segmentations in the market and this is known as the focus concentration. They focus on one or two market narrow segmentation of marketing mix. So Z energy in the hutt region opts for marketing dominance strategy so as to lead in the market and increase their share in the market. This will help to promote their new promotions and offers and will be a serious issue for its competitors like BP and Caltex.
Innovation strategies: This strategy is used by Z energy to introduce new ideas and concepts in the marketplace so that to increase their share in the marketplace and launch new promotions and deals to boost their business. For example Z energy introduces new deals all over the shop every fortnight because it knows that by launching new deals and promotions and by their new innovative ideas and concepts they attract more people to come and let them buy their stuff.
2 c) Product tactics should detail decision:- Z energy is aiming at selling it products and fuel at a competitive price than others and maintaining the qulaity of its products. Z energy has recently launchesd many promotions and products in the market in competition to others because Z believes that Z is for New Zealand so when the customer is entering the station he should be served and treated as he/she feels that they are in their own home. It is not only committed to selling their products but also keep in their mind that how much an average customer can spend in the shop and it introduces its deals according to that. They dont focus on a specific group of market. People ranging from all age groups are their target market and every possible way is done to satisfy the customer and make their experience a good one.
Cost-plus princing: This method of pricing is used as how to price the product and services in a single price. So the process includes the variable cost, operation costs and product pricing the business. So if the price of the fuel is 204.9 so it means that it is including all the prices of transporation taxes etc. The fixed and variable costs are also included in this.
Limit pricing: This is the process in which the price is set just below which other seller find it profitable to enter into the market. For example Z energy Hutt Road sels fuel for 204.9 while the MOBIL sells the same category of fuel for 205.9. There is not much price difference but its just the mindset of people to go and spend the money where they get it for cheaper.
Price discrimination: In this the seller charger extra prince to the customer in which he or she is willing to pay for a particular product of same price. For example there are many products in the shop that are expensive and you can get it for much cheaper prices from a supermarket but the customers pay because they have access to these products anytime they need it so Z energy can set its price according to it as it is providing the products at any tme of the day and this is what for Z is asking for extra money.
What channels does Z Energy use to sell their product in the market: Z energy being an energy company sells its products like fuel directly to its customers through different gas stations that comes under diffferent retailers.
Single or multiple channels: To sell their products to customers they use different marketing methods. For example by dispaly boards in front of the stations and by marketing the products through social media, by teling the qualities of thier fuel on youtube through ads and campaigns and these kind of stuff.
Number of intermediaries at each level: The stock take for the shop is done by the store manager as he is answerable to the retailer and he is to the Z energy head office that is in Wellington.
Which companies as intermediaries to avoid intrachannel conflict: Z energy is entirely responsible for the intake of stock that enters in the shop and so it has direct tie up with toops and other retailers like quality bakers etx for deli because it doesnt rely on the local supermarkets when it comes to the product because its main objective is to deliever quality product.
Advertising: Advertising is done through through various social media sites like facebook, twitter and etc. Various advertisements are also shown on youtube to promote their premium fuel and other promotional stuff.
Promotion activities: Promotion of the product through various sources to that it could be in reach of people easily and they can give feedback regarding that products it offers.
Publication such as newsletter, trade journals and books: Z energy uses newsletter columns o to promote their products and fuel by providing some extra special offer to the customer(CPL vouchers) so the they can easily sell their products and get positive review regarding their products. Promotional tactics are chosen by the organisation so as to promote the new product in the market so that they can get good review regarding their product this can be done through advertising , publication in new paper promotional activities , media relationship campaigns. Everyhting regarding the companys delas and offers is displayed on its facebook page where you can comment and suggest as well.
Z energy launches new promotions and stuff in the market.Why do they do that?This is done to add customers to their customer lists and introduce their customers to different range of products so as to increase their market. And another key reason is that it has many competitors which are also in the same line so to stay in the market consistently they have to launch new promotions and offers. All three level of management comes into existence for the strategies planning of Z energy. Strategies and techniques are built for the organisation before they launch a new promotion.They need to look various aspect for the company and built plans which is a time consuming process before the actually execute the final product plan in the market for them.
Pricing strategies were kept in the mind for the product which covers the marginal cost and fixed cost. Also specifies that the new product will helps to bring the profit in the company and what will be the variable and fixed cost of the product. Pricing is done to make assumption that the customer’s is will to buy the product at existing price or not.
Promotional channels are used to promote a product in the market through different promotional chaanels so that the people come to know about the different promotions that are coming in the market and how is their response towards it.