Eliana's Kitchen Company is the UK Company to make kid's and baby organic food. Eliana wolpe is the chemist who starts to do research on baby food in year 2006. Her product soon became known worldwide after an organic baby food her new product. Later in year 2006, Eliana's Kitchen Company produced fruit smoothes, pasta sauces and baby food. Because of its variety production, now Eliana's Kitchen is one of the largest food companies in the UK.
Today, the Eliana's Kitchen Company still complies with its founder's beliefs and principles and is; therefore, very much people-oriented, and committed to understanding its consumers' needs throughout the world in order to provide the best products for their lives. Also she says she has created products which would give mothers reassurance and encourage children into healthy eating habits from a young age. As a World Food Company, Eliana's Kitchen provides the best food for whatever time of the day and for whatever time of everyone life. It is a Company that maximizes the use of good quality local raw materials to produce and sell world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout its operations.
Due to drastic changes in technology, consumers' wants, desires, has enhanced the importance of “new product”. Every organisation is striving for its survival in the environment , and their survival is possible due to “new product” whether it is totally new to the whole market, imitative or comes with little bit differences.
So this report is consisted on “opinion formers and opinion leaders(MARKETING AND PROMOTION)”, “new product development” and different stages of product making also “marketing and promotion”, “buyer behaviour”, “quantitative and qualitative research”, “marketing communication”.
This report consists of five chapters; the first chapter pertains to new-product strategy development, objectives for new products are determined
The second chapter pertains to Idea generation, ideas for newcomer from several sources, including consumers, employees, R&D laboratories, and competitors.
- The third chapter pertains to marketing and promotion.
- The fourth chapter pertains to buyer behaviour.
- The last chapter pertains to marketing communication.
OPINION FORMERS AND OPINIONLEADERS
“Promotion is part of marketing which can be considered as one of the youngest disciplines in the business world and is driven by innovation (Sutheralnd and Canwell, 2004)”. “The communication process with consumers is one side of promotion. (Rowley, 1998)”
According to Yeshin (1998), there are three main functions of advertising:
- To inform - to provide public with specific pieces of information, suggestion, explanation or apology.
- To persuade - company may try to change customers' perceptions of product, product's attributes or benefits or to evoke in customers some action (call sales line or visit store).
- To sell - attempt to persuade the customer to make a purchase now, rather than delay it until some later time.
These three functions are supported by the classic model of marketing communication - AIDA which was originally proposed in 1920s and it basically means that in order to have an effect, communication or campaign have to gain attention of the viewer or reader, than it stimulate interest in the proposition. Third stage is to create a desire for product or service being promoted and finally, communication or campaign should stimulate some form of response on part of the audience - provoke an action (Hughes and Fill, 2007).
Similar definition of roles of marketing communications defined Hughes and Fill (2007) who saying that marketing communications is to either:
- Differentiate - a product or brand
- Remind - and reassure a target audience with regard to the benefits - to encourage (re)purchase
- Inform - a target audience by providing new information
- Persuade - an audience to take a particular set of actions
Another important part of the communication process, which is quite broadly used at present is word-of-mouth communications in which the influence of opinion leaders and opinion formers, providing high levels of credibility with relatively free media and production costs (Hughes and Fill, 2007)
Generally, marketing communication mix can be divided into:
- Sales promotion
- Public relations
- Personal selling
- Direct marketing
(Hughes and Fill, 2007).
- Offering customers the best value for money and the most competitive prices.
- Satisfying the needs of customer by constantly seeking and acting on, their opinions regarding innovation and products quality.
- Improving profitability through investment in innovative products.
- Developing talents of its staff through training and career development, while rewarding them fairly with equal opportunities for all.
- Providing Shareholders with good Progressive return on their investment.
- Enhancing the brand portfolio with Innovative products.
- Responsible Innovation in consumer care, Environmental protection, Social societal impact and ethics.
Possibly the most challenging concept in the marketing is to deal with understanding the buyer behaviour. Customers Buying Behaviour refers to the buying behaviour of the final consumers, and households who buy goods and services for personal purpose.
Customers tremendously in income, education level, age and tastes and they buy an incredible variety of services and goods. Market place has become too much competition. Inspire the customers, the company that really understand how customers will respond to different product features, advertising and price appeal has a great advantage over its competitors. Customer behaviour is affecting by many uncontrollable factors and their purchases are strongly influencing by cultural, social, personal and psychological factors.
Factors affecting consumer buying behaviour
- Cultural Factors: - Cultural factors exert the broadest and deepest influence on consumer behaviour. It has a significant impact on the consumer buying behaviour. Cultural factors consist of culture, subculture and social class.
- Social Factors: - Almost every society has some form social class structure. Every society has its status groupings largely based on similarities in income, education and occupation. Social classes are relatively permanent and ordered divisions in a society whose members shares similar values, interests and behaviours. Researchers have invented the five typical social class are upper, upper-middle, and middle, working and lower. Social class in nations like USA, Canada, Australia and New Zealand is not indicated by a single factor such as income but it is measured by combination of income, occupation, education wealth and other variables.
- Personal Factors: - Personal factors include individual characteristics that, when taken in aggregate, distinguish the individual from others of the same social group and culture.
- Psychological Factors: - Although marketers try to define groups of potential customers with common attributes or interests, as a useful unit for the formulation of marketing strategies, it should not be forgotten that such groups or market segments are still made up of individuals who are different from each other. A person's buying choices are influenced by five psychological factors such as Motivation, Perception, Personality, Ability and Knowledge and Attitude.
Marketers can see that understanding consumer behaviour is a vital aspect of marketing. Marketers need to understand the role of involvement and habit, information processing and the concept of life values in consumer behaviour as well as cultural determinants. They must exercise care in analyzing consumer behaviour. We have seen that understanding consumer buying behaviour is never simple and it is affected by many different factors, yet understanding it is the essential task of marketing management.
QUANTITATIVEAND QUALITATIVE RESEARCH
Qualitative market research is a story of success and triumph over adversity, or, perhaps, this should read adversaries (Achenbaum, 1995).
Issues in the practitioner literature
Practitioners define qualitative research by what it is not; quantitative or measurement research (Robson and Foster, 1989).
The role of qualitative market research
A more useful exercise might be to focus on the role or purpose of qualitative market research and subject this to critical scrutiny by questioning some of its underlying assumptions. The most cherished assumptions in market research are that it is the link between the customer and the supplier of services or goods. This assumption of linking the customer and supplier through information is often embodied in definitions of market research.
The objectives of this research is firstly to investigate and identify Eliana's Kitchen capabilities, i.e. factors that set Eliana's Kitchen apart from other companies in its field: such as the qualities of its solutions, the quality of its service delivered, the quality of its people, and the quality of its equipment. The understanding will help the company to formulate a draft growth plan for the local market.
Secondly, the purpose of this research will look into why Eliana's Kitchen, whose name is synonymous with quality equipment and services, should leverage on its name as a brand. In a McKinsey article on brand leverage by David C. Count et al, they suggest that at least three factors appear to be driving the superior economics of diversified brand leverage. By leveraging a brand widely tend to spread brand management support costs among the products range, thus helping to bring down the costs per product line.
Thirdly, relationship benefits seem to have growing importance for customers, whereby building relationship through loyalty program, better service and better understanding of customers are providing more than functional benefits.
This research proposal will follow a deductive approach to the critical review of theories. The purpose of the review is to develop a good understanding and insight into relevant previous research and the trends that have emerged.
My research will use SWOT to identify those factors that influence the organization. Also known as WOTS up', SWOT is the acronym for strengths, weaknesses, opportunities and threats. Ansoff has referred to the analysis of strengths and weakness of organizations following the formulation of objectives, and to threats and opportunities in the process of strategic change. A SWOT analysis summarises the key issues from an analysis of the business environment and the strategic capability of an organization. The aim is to identify the extent to which the current strategy of an organization and its more specific strengths and weaknesses are relevant to, and capable of, dealing with the changes taking place in the business environment. It can also be used to assess whether there are opportunities to exploit further the unique resources or core competences of the organization. SWOT analysis is one of the five most often used tools and techniques in strategic analysis, as reported by a survey done on 113 manufacturing and service companies in the United Kingdom.
Although SWOT analysis is a good analytical tool, it does have it drawback. The lists of criticisms are as follow:
- It generates lengthy lists.
- It uses no weights to reflect priorities.
- It uses ambiguous words and phases.
- The same factors can be placed in two categories (eg., a strength may also be a weakness).
- There is no obligation to verify opinions with data or analysis.
- It requires only a single level of analysis.
- There is no logical link to strategy implementation.
Because opportunities or threats are define from the vantage point of the business one firm's threats is likely to be another firm's opportunity. Citing example of A.O. Smith Company (Safe Diversification That is Endangering Profits, Business Week, September 21, 1981), because it seriously misread the market trend of the automotive industry lead to the firm losing 40% of it company sales when the frame market demise . According to one study (Stevenson, 1976), different criteria are used to judge strengths and weaknesses. Historical criteria are most often used to judge strengths, because manager is constantly searching for improvements in problem areas they have previously identified. Conversely, weaknesses tend to be judged in light of normative judgments as to what performance management would like to achieve.
Although SWOT analysis tool have its drawback, it can be overcome using the External Factor Analysis Summary (EFAS) and Internal Factor Analysis Summary (IFAS) plus the Strategic Factors Analysis Summary (SFAS) Matrix, which have been developed to deal with the criticisms.
An organization operates in a macro-environment, beside the internal and micro environment that it has to deal with. The influencing factors of the macro-environment consist of Economic forces, Sociocultural forces, Technological and Political forces. Organizational performance and effectiveness will be dependent upon the successful management of the opportunities, challenges and risks presented by changes in the external environment. One popular technique for analyzing the general environment is the PEST analysis . As Multistates plan to conduct business in Malaysia and Indonesia, possible problems to anticipate are such as local trade regulations, taxations, HSE issues, equipment import / export regulation, and other issue such as ?Bumiputra' ruling which require company to be registered under indigenous name that will have to be taken into consideration and overcome. The various government and quasi-government agencies such as Trade Department, Customs & Excise Department and Economic Development Board will be good sources of information to overcome anticipated problems and regulations. Other issues to look at are transportation, logistics, office and staffing which might affect Multistates operation in these locations. The PEST analysis will be a useful tool for Multistates to identify the various issues that might hamper its plan to conduct business in these two locations. An example of issues that might be considered when undertaking a PEST analysis as presented by Lynch (Appendix 1).
Porter's five forces
Porter's five forces analysis is a mean of examining the competitive environment at the level of the strategic business unit. It is a means of identifying the forces which affect the level of competition in an industry, and which thus help manager to identify bases of competitive strategy. Porter's model help managers understand the five forces of competitive pressure in the industry: threat of entry; intensity of rivalry among existing competitors; pressure from substitute products; bargaining power of buyers; and bargain power of suppliers.
Five forces analysis provides a means of identifying the forces which determine the nature of the competitive environment, especially in terms of barriers to entry, the power of buyers and suppliers, the threat of substitutes and other reasons for the extent of competitive intensity. It can also be used to examine the benefits of collaboration within the industries. Knowledge of Eliana's Kitchen underlying sources of competitive pressure will provide management with the groundwork for a strategic agenda of action.
Although Porter's five forces help managers examine the competitive environment, it does have its weak spot. Corporate strategy are usually marketing base. Hamel suggests that concepts like experience curves, product portfolios, rivalry, signalling, order of entry effects, and profit-market share relationships all had their genesis in marketing, whose focus tend to be the end product or service. He suggests that the concept of core competence will help strategists to differentiate their contribution from the marketers, besides focusing on product or service also spotlight on the organization underlying competencies.
Hamel suggest that looking at competitors' competitiveness is not enough, knowing their competences are important. Using analogy of a tree, the root system that provides nourishment, sustenance, and stability is the core competence. “You can miss the strength of competitors by looking only at their end products, in the same way you miss the strength of a tree if you look only at the leaves”. Basically, competencies are the roots of organization competitiveness.
Communication is any behaviour, verbal or nonverbal, that is perceived by another. Marketing communication is necessary for passing information between people working in the same organization; it provides the critical link between core functions. As Robert Kent, former dean of Harvard Business School has said, ¡°In business, communication is everything.¡±(Blalock 2005) I will explain how the communication works in the organization and why good communication is good business.
Role of Communication in Organization
Communication provides the critical link between core functions in the organization, the process and practice of communication in business is one of the least understood facets of business.
Process of Communication
As we know, the basic process of communication has seven steps, those are sender, message encoding, message travels over channel, receiver, feedback, context and noise.
Functions of Communication in Organization
There are two functions of communication in the organization; those are internal and external communication. Internal communication often consists of E-mail, memos, and Voice message. External communication often consists of letter. (Guffey 2003) In nowadays, there appear to be a large number of diverse business communication functions; they can be summarized by three categories. The diagram below shows function of business communication, those are informed, persuade and promote goodwill.
Multi-cultural Workshop Make Communication More Important
Today, companies are growing multinational; a successful company is realizing the advantage of use the creativity, talents, experiences and perspectives of a diverse employee base. Because of this advantage, the employees are different in age, race, ethnic heritage, gender and sexual orientation. Good communication is the key to build trust, promote understanding and motivate others.
Objectives of the Communications Campaign
The first communication objective for Baby organic food will be to introduce a new product into its Baby food product line. This will be the main objective of the campaign. The more aware people are about our product, the more apt they are to purchase it.
The second objective will be to provide information to our target audience about our new organic baby food. We want to inform our target audience of our new product and communicate the benefits of this product.
The third, and final, objective of our advertising campaign will be to increase brand awareness. Many consumers know about our high quality organic products and baby foods, but we want to expand that thinking onto our baby food products. We want consumers to be able to trust our products and know that they are made with the utmost quality as well as made for performance.
we know that Eliana's Kitchen is the successful market leader company which bases on its business strategy according to its mission statement. Eliana's Kitchen mission statement and purpose; together with its core values and principles allowed the company to grow from a small company to a huge company all over the UK.
To sustain in the present competitive, Eliana's Kitchen e are needed to increase the supply chain. Since there are so many same kind of product introduced in the market, in order to sustain the top sales, the company must increase the supply chain so that the product price will be decrease and therefore consumer can afford to buy. Good quality and the price is competitive to others organization's product. Besides increase the supply chain, the organization must also study the consumer on what they want and expect from our product. Short to say, product is produce according to the consumers needs and not according to what manufacturer wants it to be because the end user is always the consumers. Once the organization get hold on what the consumer wants and expect from them, it is more easy for the organization to develop a new product to suite the consumer taste and the product will definitely successful in the market. Good quality of the product is the most important issues to create customers loyalty.
From looking at the environment analysis, knowing that Eliana's Kitchen reduce the environmental impact of packing without jeopardizing the safety, quality or consumer acceptance by using the most efficient and appropriate packaging solutions. Having this decision, consumer will feel more protecting and safe to consume Eliana's Kitchen product. They will most probably later become customer loyalty. Eliana's Kitchen always thinks of consumer's health issue which is a good idea. By using the technological factors, it will enable the consumer to know the company more in depth and if they have any problems they can send mail to the company. Using the advanced technology, it is convenient both for the consumer or the staff to communicate with each other.
Eliana's Kitchen would be able to further achieve its success if they kept on produce more quality, attractive and innovative product. They will successful also if they able to exploit their current competitive advantage and keep on progressing within their business strategy. Eliana's Kitchen should now be able to successfully sustain its present competitive when they state to their mission statement, goals and objective. They will stay as the marker leader for long term.
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