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Marketing New Product - AS Coursework
Marketing New Product - AS Coursework
Section A
I have to decide what kind of new product I want to develop I will have
to research and think of as many ideas as I can, so I have a variety of
different products from which I can gradually eliminate most of the
ideas until I have the best idea for a product left. I had to think of a
few ideas which I could use. This was extremely hard as many of the
products I chose have already been produced. The idea I came up with
were:
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Advantages Disadvantages
White chocolate It’s different and Not many people like
Jaffa cakes people that like white white chocolate
chocolate will like this compared to normal
product milk chocolate
Wrigley’s strawberry The taste of Too many strawberry
chewing gum strawberry and mint flavoured gums in the
might change the market
choice of what people
buy as its different
Mango crisps It’s different to Not many people
other crisps and would like the taste of
people who like the crisp mixed with
mangos might like the flavour of mango
mango crisp
Mango Jaffa Cakes It’s something new People that don’t like
and people will enjoy mangos probably won’t
the different taste like the taste of
and the different mango flavoured jaffa
flavour cakes
Snickers milkshake It would be It’s all ready in the
refreshing and people market and being sold
that like the in major stores
chocolate sneakers
would like the taste
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Product Description
The type of packaging I will use for my product will be the same as the
normal one but im going to make changes to the shape and the colour
of the packaging. Im going to change the shape and size of the cake
because I changed the filling inside the cakes to mango I wanted the
shape of the cake to be in a shape of a mango. In each packet of cakes
there are going to be 10 pieces of cakes.
3.5cm
I am going to keep the same ingredients as the original jaffa cake but
im going to change the orange flavouring to mango.
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Nutrition
Energy…………..………….45 kcal
Protein………….…………….0.5 g
Carbohydrate……………........8.3 g
Of which sugars………….…6.4 g
Of which starch….………….1.9 g
Fat……………….……….…..1.1 g
Of which saturates………….…0.6 g
Of which mono-unsaturated…..0.4 g
Of which polyunsaturated…….0.1 g
Fibre…………………………....0.2 g
Salt……….less than…………...0.1 g
Of which sodium….less than...0.1g
It also gives the guideline daily amounts for calories, fat and salt for
men and women.
The ingredients are listed and there is also a note about allergies
which states Contains egg, soy, wheat and gluten’.
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Mission statement
Flavours
• McVitie's Jaffa Cakes
• McVitie's Jaffa Cakes Apple & Blackberry
• McVitie's Jaffa Cakes Blackcurrant
• McVitie's Jaffa Cakes Lemon & Lime
This is the original McVitie's Jaffa Cake, this was the first flavour Mc
Vitie’s produced the flavour. It consists of orange on top and a sponge
layer and then the orange flavour jelly with a chocolate covered
topping. The box for this original jaffa cake has always been blue and
orange. And they have made one single jaffa cake contain only 1 gram
of fat. They have also made it low in fat and high in energy so people
who like sports and also athletes can eat it as well while they are
training and competing, as it gives them a quick boost in energy.
McVitie's Jaffa Cakes Apple & Blackberry
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McVitie's have also made a different flavour of jaffa cakes. They have
just changed the flavour of the cake and in this case they have put
apple and blackberry in the middle. They have done the same with
other flavours, McVitie's have also made a lemon and lime flavour and
a blackcurrant flavour. Everything is the same, they have just changed
the flavour and it still has 1 gram of fat.
McVitie's Jaffa Cakes Lemon & Lime
Product Extensions
• McVitie's Jaffa Cakes Muffin
• McVitie's Mini Jaffa Cakes
• McVitie's Mini Jaffa Cakes Rolls
• McVitie's Mini Jaffa Cakes Rolls XL
McVitie's have also produced other types of snacks but with the same
flavour as the original.
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criteria. It helps the business to point where they are doing well and
where are the parts that they need to improve on.
Mainly all businesses have objectives and aims whether small or large,
private or public. My marketing objectives are:
My marketing objective by introducing this product into the market is
to:
1. Improve profitability for the company by producing a new
product which will sell and gain profit from it. By end of 2009 I
hope to increase profits of Jaffa cakes by 5-10%. I think this
is attainable as now in a recession people will eat more lower
priced sweets and snack products.
2. And I will also improve the taste of the product so I will
expand the market by attracting new customers to buy the
product. I will back it up with research to show the mango taste
is growing in popularity. This should take a year before
consumers accept the new taste.
3. Another marketing objective for me is to make sure that the
product will survive and sells for the product will not decrease
and the company will still make a good amount of profit by
selling this product.
• Also to increase the market share in their specialised market.
For my product to sell to its best ability I will target different places
for my product to be sold and the right places so I don’t lose out on
sales. I will make sure my product is sold in major supermarkets and in
vending machines at sports and leisure centres.
Market Segmentation
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If you are to gain a visible market segment from your overall target
group then there are a few rules that you should follow to ensure that.
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Section B
The purpose of marketing research is so that it helps to aim and
achieve in an organisation and helps to make effective marketing
decisions this is done by doing evaluation of data.
Marketing research helps organisation achieve their overall objects by
helping them to identify market opportunities and use to access and
improve marketing activity and also helps by revealing important
consumer information which helps to improve quality of marketing.
Marketing research helps organisations in a number of ways to find
out information about their market and business and also other
markets and business. It helps identify the areas of which you are
targeting with your product or service but also helps to understand
what customers want and need.
There are a number of ways of grouping and identify certain areas in
the market this is called market segmentation but it is not just
splitting up the market area it is finding out information to help you
know what it is that customers would pay good money for.
There also are four types of research in marketing research and they
are:
1. Primary research this helps to find out information by using a
direct approach of you actually finding the research out the
information yourself also known as field research.
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There are six essential benefits to marketing research and they are:
1. To increase over capability and understand essential research
concepts and provide an improved ability to make informed
decisions
2. Provides a effective opportunity to supplement
3. Facilities a common knowledge bridge with parties involved in the
research process
4. Provides a specific starting point for the people entering the
profession
5. Gives companies an objective tool to help develop and promote
employee
6. Assists researchers in understanding and differentiating between
good research practices and those which undermine objectives and
impartial research
There are three types of themes in marketing research and they are
customers, competitors and marketing environment.
• Customer or market provides you information on market
segment size, market trends and how they can be forecasting
future customer needs. Brand share including competitors and
also customer preferences such as their lifestyle
• Competitors are the overall aims and objective and also compare
products with each other to find out the better price,
distributing methods and promotional methods
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There are three types of themes in marketing research and they are
customers, competitors and marketing environment.
Customer or market provides you information on market segment size,
market trends and how they can be forecasting future customer
needs. Brand share including competitors and also customer
preferences such as their lifestyle.
Competitors are the overall aims and objective and also compare
products with each other to find out the better price, distributing
methods and promotional methods.
Marketing environment provides information on political, ethical, and
social and technology influences.
Research helps McVitie's Jaffa Cakes to understand customers,
competitors and market environment. Marketing environment is also an
area where marketing research can be carried out such as political
influence, economic influence, social influence and technological
influence.
McVitie's Jaffa Cakes uses research to understand the customers.
McVitie's Jaffa Cakes to see what customers and provides
information to McVitie's Jaffa Cakes on the market and market
segment size. Also by using market trend they can forecast future
consumer needs. They can also research information on customer
preference such as their colours and lifestyle.
McVitie's Jaffa Cakes can also research information on competitors
and their overall aims and objectives and what they are trying to
achieve. They can also compare products, prices, distribution methods
and promotional methods. They can also look at competitor’s profits
and financial situation to get ahead of the competition.
McVitie's Jaffa Cakes research on customers helps it to understand
the products and innovative measurable progress so it can help the to
make aims and objectives for their company such as reducing fat,
sugar and salt for their core brands.
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Primary Research
Primary research can be carried out in several ways; this includes
surveys, questionnaires, interviews, observations, telemarketing,
product testing, focus groups, consumer panels and trade audits.
These methods will be able to help a company to locate a potential
market and then create products that will best match the needs of
this market. Questionnaires are a systematic list of questions that are
intended to capture information from customers. It tries to obtain
their attitudes, values, beliefs and people’s specific needs. A good
questionnaire asks questions that are related to the information
needed, it won’t contain too many questions, it won’t ask personal
questions, it ensure that the questions fit in a logical order and use
simple language that won’t confuse people. Primary research usually
makes the information more reliable and it will match the criteria
which is it aimed at. However primary research also will take a lot of
time and can be costly.
For my primary research I have conducted a questionnaire, my
questionnaire consistence of thirteen straight forward questions most
of which have a list of answer to select from and only a few questions
requiring people to write their own answers. It is estimated to take
more than two minutes to complete a questionnaire.
Secondary Research
Secondary research is research already published, and is the cheapest
form of research because the data already exists for your acquisition.
Secondary research can be split into internal and external research.
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Section C
The term marketing mix is used to describe the all the options
available to the marketing manager in order to market a particular
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Product
The product is the most important of the 4 p’s as without a product
there is no business unless the business is there to provide a service.
In-order for the product to sell well it has to be made to be good in
quality and also to be made to fit what the target audience would like.
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Out of the 4 p’s product has the most importance towards a business,
the product is an item which is the main income of money for a
company so this means product is very important.
Price
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Close Out- this pricing strategy is when the old products are sold at a
low price so the business will avoid storing the product. Therefore
McVitie's might loose out a bit but they will loose out on more money if
they keep trying to sell last seasons stock.
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The price for the original 12 piece McVitie's Jaffa Cakes is £ 1.48
The price for the 15 piece McVitie's Jaffa Cakes tube is £ 1.59
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The price for the mini portion McVitie's Jaffa Cakes is £ 2.11
All the above are different types of McVitie's Jaffa Cakes packets
they have made. These come in different sizes and different amount
of Jaffa Cakes in them so this shows a variation in way they sell the
product and the prices they have giving them.
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Promotion
Posters/Billboard High visual impact for Are only seen for a few seconds by
a long time and will be drivers and are vulnerable to
seen by a lot of weather and graffiti
different people
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Place
Place simply refers to how you will sell your products to your
customers. Depending on what it is you are selling will directly
influence how you distribute it, and it affects mainly those businesses
that are in production. To market the product McVitie's Jaffa Cakes
will have to know how to distribute the product to the customer and
what they need to do in order for this to happen. McVitie's Jaffa
Cakes will have to think about a number of factors such as distribution
channels, market coverage, warehousing etc.
Distribution channels
Marketing Coverage
This basically means that McVitie's Jaffa Cakes will have to make sure
that the product is sold in shops and stores (or online) so that it is
available and easy for the customers to find the product. Therefore as
McVitie's Jaffa Cakes will be selling their product mainly to all
supermarkets, small shop, corner shops, petrol station and mainly all
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shop the sell food items around the United Kingdom. They will need to
sell it in certain stores and make sure that it is known that that they
are selling this product there so this is where the promotion bit comes
in, this can be achieved with help from advertising.
Conclusion
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Section D
In this section I will discuss the internal factors that may affect my
marketing plan (the marketing mix) i.e. cost, time, staff and capital. I
will also conduct a SWOT analysis to help me identify all aspects of
current and future influences. I will explain how my marketing plan will
help to divert some of these issues and how it may need to adapt to
avoid/lower the risk of others. I will describe what McVitie's Jaffa
Cakes may want to do to lower the risk/avoid certain influences.
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Strengths
McVitie's Jaffa Cakes has many strengths because it is a worldwide
brand and very successful. McVitie's has a well-known brand name and
the logo is recognised by many people and has been around for a very
long period of time. This can also increase sales by having a
recognisable and distinctive logo. Also McVitie's sets targets for
themselves and promote and advertise McVitie's to increase sales and
their catch and effective slogans. McVitie's is a very large established
business and has a very good reputation that is a very good strength
also it has very good advertisement. This is a chance for McVitie's
Jaffa Cakes to advertise any new products that they would like to and
increase sales. McVitie's Jaffa Cakes also have a large market
audience that they attract of all ages so there is something for
everyone.
Weaknesses
As well as having its strengths McVitie's also has it weakness such as
unmotivated staff in the work place could cause a lot of problems for
the company. If McVitie's has unmotivated staff there could be a big
problem in the production line because McVitie's need people for
packing and delivering the products. Another weakness for McVitie's
could be a too big a demand for the company and they may not be able
to keep up with the orders for the product especially when staff are
not motivated.
Opportunities
Opportunities for McVitie's are that they can get sponsor and
promote their products by advertising at important events such as
sporting events this will increase sales especially if the product was
been sold at the sporting events. McVitie's also have the opportunity
of diversifying into a different market besides the snack market they
could do something entirely different or they could still do the same
thing but bring out a different range of products that are aimed at a
different audience such a line of healthy products for children at
school or adults. They could also develop their promotional strategy by
using large marketing strategies.
Threats
McVitie's also has its threats are their prices because other
companies are competing with McVitie's because it is a very popular
and well-known brand so they might copy ideas from McVitie's and sell
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Pest Analysis
The Pestle analysis is a useful tool for understanding risks associated
with market growth or decline, and as such the position, potential and
direction for a business or organisation. The Pestle Analysis is often
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Political
Political factors can have a direct impact on how the business runs.
Decisions of the government affect people everyday of their life and
can also called policies or legislation. There are different laws that
may affect the business and the way it operates such as the
government’s minimum wage and so do the consumer’s health and
safety laws.
Economical
Every business is affected by economical factors nationally and
globally. There are policies that have been set accordingly such as
interest rates. This can also affect consumer confidence or and
behaviour whether it is successful or not. Economies have had a major
impact on UK business because it means cheaper labour abroad the
competitiveness of UK products nationally and globally.
Social
Social factors affect you within society such as family, friends, media
affect interest and your opinions. All of these things change your
interest and opinions and make you think more about the society you
live and also influence your opinion. For an example media talks about
people health and how obesity is rising in the UK today and more
dietary schemes are being published in newspapers, magazines, and on
television. A result of this is more people are joining the gym to stay
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Technological
Technological factors changes the way the businesses is run because
the Internet is having a massive impact on business and more
companies and organisation are using the internet today to help direct
business towards them. And consumers can shop whenever they would
like to from wherever they are this is a beneficial for business
because they can offer more to the consumers.
ASA make sure standards are kept high by applying the advertising
standards codes. They also can stop misleading, harmful or offensive
advertising. They can ensure sales promotions are run fairly, and can
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help reduce unwanted commercial mail - either sent through the post,
by e-mail or by text message - and they can resolve problems with mail
order purchases
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