You are on page 1of 36

This document was downloaded from Coursework.

Info - The UK's


Coursework Database - http://www.coursework.info/

Certificate in Management
CM5

ARE COORS BREWERS REALLY MEETING


CUSTOMER NEEDS?
- A CRITICAL REVIEW OF HOW AND WHY

Chloe Humphreys

Assistant Brand Manager


Coors Brewers Ltd

This document was downloaded from Coursework.Info - The UK's


Coursework Database - http://www.coursework.info/
This document was downloaded from Coursework.Info - The UK's
Coursework Database - http://www.coursework.info/

SUMMARY

The utilisation of a strategic marketing plan should be seen as fundamental to


an effective business. Marketing plans should not be deemed as a rigid “must
do everything” plan and should be customised to meet the needs of the
particular business.

Key areas of a market plan are very closely integrated with other strategic
themes. Assessing the competitive advantage and industry positioning are
essential in order to attempt to meet the customer needs.

Although there are many academic models and theories surrounding this area,
it should be realised that these may only be guidelines. A marketing plan can
be as simplistic as it needs to be in order to meet your business requirements,
as long as the outcome can be measured and that those measures are effective
and instrumental in achieving a profitable and successful business.

Coors Brewers are industry leaders with many innovative ideas. They maintain
their differential within the industry by constantly reviewing their market
position, monitoring the competitors and endeavouring to fulfil customer needs
by undertaking market research.

Internally to Coors Brewers there is not enough promotion of marketing


strategies undertaken and communication of brand marketing could be
improved by more co-operation and cross functional working. Alongside this
there needs to be more marketing of internal services, advertising and
requesting feedback to ensure that we are meeting our own internal customer
needs.

Strategic market planning within Coors Brewers is an essential and integral


part of the business. It allows the effective use of resource, customer focus
and a framework to base long-term plans on.
This document was downloaded from Coursework.Info - The UK's
Coursework Database - http://www.coursework.info/

CONTENTS

SUMMARY .............................................................................................................................1
Introduction.............................................................................................................................1
How do we start to meet customer needs?..............................................................................2
What is Marketing?.................................................................................................................2
2.1 Coors Brewers – External Marketing..................................................................................4
2.2 S.W.O.T Analysis...................................................................................................................6
2.3 Marketing Audit....................................................................................................................7
2.4 Brand Strategy and the Marketing Mix...............................................................................9
2.5 Creative Brief........................................................................................................................10
2.5 Marketing Orientation.........................................................................................................10
Services Marketing................................................................................................................14
4. Communication................................................................................................................16
5. Implementation................................................................................................................17
6. Conclusions......................................................................................................................18
7. Recommendations............................................................................................................18
Bibliography..........................................................................................................................20
Appendices.............................................................................................................................21
Appendix I The Strategic Planning Process
......................................................................................................................................................21
Appendix II Additional key Strategic Factors.........................................................................22
Appendix III P.E.S.T Analysis..................................................................................................23
Appendix IV Porters Five Forces..............................................................................................24
Appendix V Boston Matrix.......................................................................................................25
Appendix VI Balanced Scorecard.............................................................................................26
Appendix VII McKinsey’s seven-S diagram............................................................................27
Appendix VIII Creative Brief....................................................................................................29
Appendix IX Goods-Service Continuum..................................................................................30
Appendix X The Marketing mix for services...........................................................................31
Appendix XI Service Quality ....................................................................................................33
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Introduction

The following report reviews the current situation on how well Coors Brewers are
meeting their customer needs both externally from a Company perspective and
internally within the Marketing department.

This is a critical analysis to show if and how Coors Brewers use the available marketing
tools to assess customer requirements and subsequently measure the degree of
success to which we are meeting those.

The report will go through the process of identifying some of the constraints which
Coors Brewers endures, how we use the available marketing tools to measure our levels
of customer service, evaluating the strategic marketing process, our competitive
advantage and brand strategy

Throughout the report there will be reference made to certain models and theories,
and where these are either used or could potentially be used within Coors Brewers.
The underpinning model being referred to is that of the ten steps of the Strategic
Marketing Planning process, (McDonald, 1995, p. 26).

For the purpose of this report relevant people were interviewed from within the
Marketing department, who are either directly related to this subject or who have
had previous experience in the areas discussed. Their views are recorded and
referred to anonymously.

The report concludes with the findings and recommendations for future consideration,
the reiterative process to ensure that we are meeting those targets and the re-
evaluation undertaken and reviewed on a regular and consistent basis.

Page 1
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

How do we start to meet customer needs?

When looking at meeting our customer needs you first need to identify who your
customers are, what they want out of your product or service and assess the
environment within which you are based. This will obviously include identifying the
trends, what competitors are achieving and whether or not your product or service
needs to be flexible in order to accommodate the possible segmentation of those
customers. Again, when defining customer needs there is a necessity to balance this
with the benefit to the Company in mind. “Companies will attempt to segment
customer requirements in an attempt both to satisfy as many people as possible on the
one hand, and on the other hand in order not to have to tailor-make every item for
each individual customer”, (Hannagan 2002, p. 78).

One process used to achieve meeting the customers needs is that of developing a
strategic marketing plan. This should be one that flows and is recognised as an
evolving process, especially in an ever-changing environment where external and
internal influences need to be considered.

What is Marketing?

Marketing is a company-wide commitment to providing customer satisfaction. It is


also a managerial process involving the regular analysis of the firm’s competitive
situation, leading to the development of marketing objectives, and the formulation and
implementation of strategies, tactics, organisations and controls for their
achievement. Although this may be a correct definition, or at least a starting point,
within a company there are many different areas and therefore varying levels of
employees, many of which would not identify themselves as being part of a “strategic
marketing plan”.

Marketing has many misconceptions and varying interpretations. Regular quotes that
may be heard ‘Oh, it’s just a marketing ploy to get you to buy’, ‘he’s got a fancy title of
Marketing Director’, ‘Marketing departments have all the glamorous jobs’. None of
which really sum up the actual purpose of marketing.
Frederick E Webster, (1997) quotes “The successful organisation of the future will be
customer-focused, not product or technology focused, supported by a market-
information competence that links the voice of the customer to all the firm’s value-
delivery processes….”, (Hooley, Saunders & Piercy, 1998, P.3). This gives some
indication as to what marketing is really about. Using methods and practices to truly
identify what the customer actually wants and fulfilling those requirements to the
best of our ability. If one is successful in achieving this goal then you can confidently
state that you are meeting the customer needs. However, in order to do this you must

Page 2
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

have strong evidence to support it. In order to gather this evidence one of the best
methods is to use a market planning strategy which is a perpetual process and builds
from the basic strategic requirements.

Page 3
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Within Coors Brewers we have many areas where this can be measured, internally and
externally. There is very little evidence to show the various different areas of the
business put in quality measures to assess their impact on the business and the
internal customers that they serve.

Coors Brewers have marketing departments specifically dealing with market,


consumer, category and bespoke customer research on independent brands and
activities. These departments use academic methods of assessing where Coors
Brewers are positioned within the industry, how our products are rated and who our
customer base is. These are regularly assessed due to the ever-changing environment
and the external factors that affect the industry. However, the individual
departments work on specific brands and are in isolation to each other. There is a
potential need for more cross brand integration. During the discussion with
Interviewee A, there was evidence of this. “I worked in the Carling department, not
sure what other brands do or what market research is undertaken”. This may well
allow for areas of overlap and unnecessary duplication of work

2.1 Coors Brewers – External Marketing

If we follow the path of the strategic marketing plan process, (Appendix I), then this
gives structure, format and direction, although the steps may not necessarily follow in
the same order each time. The process is reiterative and therefore each area may be
repeated several times in order to achieve the best results. With the environment
changes and customer needs changing there is always going to be the need to review.
There should be some caution when undertaking the assumptions aspect in phase five
as it is extremely difficult to make assumptions and if not careful these may work to a
disadvantage. It should also be remembered that this process is a guideline and some
areas may not be applicable in a smaller company for example where a formalised plan
is unnecessary due to the knowledge and skill of its management. There are also
different versions of marketing plans, some of which are much more simplistic but
give the same end result. It is possible that the simplistic ones may be easier to
follow and also may be more appropriate to certain tasks.

The two primary tasks that should be undertaken when commencing with a Strategic
Marketing plan are to produce a Mission Statement and S.W.O.T. analysis.

Coors Brewers objectives are clear with our Corporate Goal of:
‘Brew great beer for young adults and be their beer for life’ this is part of our
Route to NO.1 strategy, which has the sole aim of making us the number 1 brewer in
the UK by 2010.

Page 4
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

The Company ambition is to be first in the industry with high profit margins, selling
quality products and also being family run business with family values. As a Company
Coors Brewers strive to fulfil the customer needs at the same time as making a living.

The five key values are ‘Quality, Integrity, Creativity, Passion and Excellence’, looking
after both the employee needs and with regard to the social and environmental
responsibilities.

Page 5
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

2.2 S.W.O.T Analysis

Figure 1 below outlines some of the key considerations in a S.W.O.T analysis.

Figure 1

POTENTIAL INTERNAL STRENGTHS Strong brands 1


Workforce skills 2
Market leader 1
Technological skills 3
Product innovation 1
Manufacturing capabilities 3
Established company 2
Distribution network 2
Company reputation 2

POTENTIAL INTERNAL WEAKNESSES Finance limited 1


Communication of area strategies 2
Carling ‘arrogance’ 2

POTENTIAL EXTERNAL Improve Customer Services 1


OPPORTUNITIES Improve Technical Services 2
Lower production costs 1
Supplier availability 2
Brand growth – (Coors USA) 1

Acquisition 1

POTENTIAL EXTERNAL THREATS New entrants to the market 1


Increase in substitute products 2
Demographic changes 2
Lack of buying power 2
Supplier availability 2
Economy 3

Consolidation of customers, particularly 1


on-trade

New government rulings with regard to


smoking bans 2

Page 6
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

From the analysis above, the right hand column shows the weight of importance it has
within the area. In the “Strengths” area Coors Brewers need to invest some time to
looking at the manufacturing capabilities and the technological skills. These areas may
then impact the “Weaknesses” area where we could benefit from innovation to give us
the competitive edge and therefore be less reliant on Carling as a cash cow. Coors
Brewers are looking at collaborative working with the parent Company, Coors Brewers
Company, USA and aligning systems and practices. Alongside this, production sites
have been rationalised in response to the loss of export business. These actions
should all move towards a more streamlined and efficient business, reducing base cost
and therefore potentially increasing profitability. The economical threat is always
going to be an on-going battle as this is an unpredictable area with government
interaction.

Overall, the analysis shows that Coors Brewers still have the strength to sustain the
differentiation in the marketplace.

2.3 Marketing Audit

With regard to the marketplace, continual assessment of where Coors Brewers are
positioned is undertaken. One method of attempting to understand the competitor, as
used in Coors Brewers marketing department, was explained by Interviewee A, “The
team work through scenario’s within a role play environment where they enact various
situations, putting themselves in the competitors shoes”.

In Appendix II the table shows some other key factors which may impact on the
Company strategy.

It is also worth considering the P.E.S.T. analysis information that takes other areas
into account. (See Appendix III)

One of the key factors that can be seen in this area is the change in social drinking as
depicted below. This shows how impactful the shift has been from old to new style. A
key driver to diversify into more branded drinks such as the FAB’s and the still soft
‘New Style’
drinks, wider
‘Olddistribution channels, wider choice of lagers and beers with a varying
Style’ drinking
drinking
range of prices, and the short life themed drinks such as Vodka Snapshots and
Screamers. An example of where market research has identified a need and fulfilled
that need.
Growing female
Male dominated drinking influence/Mixed groups
Session drinking Leisure
Mainstream/volume Occasion driven
Limited outlet repertoire Premium/value
Narrow habitual product (beer) Wide outlet repertoire
Page 7
choice Wide repertoire of brands
consumed
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Source: Coors Brewers - Brewnet Strategy web page, December 2002

Page 8
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

In order to assess a Company marketing strategy it is necessary to identify the


potential threats in their various guises, an organisation could obtain the competitive
advantage to exploit opportunities. In Appendix IV, Porters Five Forces model,
(Hannagan 2002 p.149), shows the Company position currently. Coors Brewers are
positioned in the Differentiation sector due to the broad scope of our products and
the quality of our brands. Coors Brewers have a loyal clientele with the Carling brand.
Coors Brewers are also market leaders in new product development and innovation in
the technological field. The appeal is therefore not only to our consumers but also to
the customer. We recently received the off-trade supplier of the year award.
Interbrew currently have a more narrow target with their key brand being of high
quality in a limited area whilst Carlsberg Tetley are highly focused on low cost with no
differentiation and a lower quality brand and no differentiation or outstanding quality.

The Boston Matrix, (Hannagan, 2002, p. 113), in Appendix V then goes on to show the
market share and growth areas. Coors Brewers already have a very high market share
in the mainstream lager sector and growth potential in the premium lager market.
Within FABs, Screamers are a new product that is dependent on constant innovation
but delivers incremental profit and is strategically placed for high growth rate. Reef
has outlived the predicted life-cycle in the RTD market.
This is supported by figures reported in the Coors Brewers balanced scorecard that
show a 1% increase in the UK market share, (Appendix VI).

As an example of meeting customer needs, research undertaken on the Worthington


brand showed that 75% of drinkers preferred the beer in branded glass, subsequent
to this four new branded glasses were produced for each of the Worthington brands,
thus adding the differential to our product range. Re-branding of the Worthington
Creamflow has shown an increase in performance and put them ahead in the market
place by 18.6%. (Coors Brewers, Worthington’s Autumn 2002, Issue 2) Again
following market research and competitor analysis.

2.4 Brand Strategy and the Marketing Mix

There are some key elements to brand strategy and achieving objectives, these are
referred to as the four P’s, Product, Price, Promotion and Place. Coors Brewers have a
good example of where they have taken advantage of these objectives with the
emergence and innovation within the industry in the land of E-Commerce.

Product: - Information has become a product via the Internet. No constraints on


space and individual communications to the customer.
Place: - Largest marketplace ever within the World Wide Web.

Page 9
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Price: - Standardisation of prices visible on the net. Consumer comparison. Similar to


the travel industry where the middleman has been eliminated.
Promotion: - Consumer insight has changed. We are now able to collate information by
monitoring the users of the WebPages. Still have brand focus, for example,
Sainsburys customers will still buy from their website with more information available
for the customer. It is also much easier to launch new products via this platform
although this is not a front facing promotion that can be pushed.
McKinsey’s seven-S framework attempts to identify some of the characteristics that
the more successful companies have. These areas play a role in reviewing how the
successful the strategic planning of a company is. Appendix VII shows this diagram
relative to Coors Brewers and where there are successful areas. With any strategy
there is always the re-iterative process to review.

2.5 Creative Brief

Once brand strategy and the marketing mix are identified, there is the task of the
Creative Brief. This identifies various areas such as company differentiation,
straplines, personality profiles, which all contribute to the marketing plan.

Appendix VIII shows what a creative brief may be for a typical brand within Coors
Actual &
Brewers.
potential Production
Potential capabilities Market
customer Customer
market products
2.5 Marketing Orientation
/consume
opportunit and
/consume
r wants r
y services
and Marketing
When developing a marketing orientation
needs it is key that
programme the customer/consumer is the
central focus in order to achieve the advantage over competitors. In model 1 below,
this illustrates one process that does not really accentuate the customer/consumer
role or truly indicates they are at the forefront.
Feedback

Page 10
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Model 1
Source: Adapted from P Doyle, Marketing Management and Strategy, 2nd Edition, Prentice Hall, 1998,
p. 41.

Page 11
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

A preferable model to show the role of marketing would be where the


customer/consumer is physically central to the whole thought process as per model 2
below.

Model 2

Source: Adapted from P Doyle, Marketing Management and Strategy, 2nd Edition, Prentice Hall, 1998,
p. 421.

This model clearly outlines that the customer/consumer is the central part to a
strategic business plan and demonstrates how other functions within a business should
work around meeting their customer needs.

Coors Brewers are a relatively high customer and consumer focused company, from a
marketing and production perspective, and indeed within the marketing department
those two areas areas are separate. However, other areas of the business would
benefit from the wider picture.

Page 12
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

“In competitive markets this means that success goes to those firms which are best
at meeting the customer needs”, (Doyle, 1998, p. 62).

Page 13
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Services Marketing

Services’ marketing has the basic underpinning activities to that of products but
there are subtle additions as there are more intangible facets.

“There are no such things as service industries. There are only industries whose
service components are greater or less than those of other industries. Everyone is a
service”, (Levitt, 1981, Harvard business review May-June, p 94-102). Arguably there
are service industries that do not physically produce a product and therefore there
are intangible aspects. When looking at the marketing mix for services there are
additions to the four P’s to include People, Physical evidence and Process, as depicted
in Appendix IX. All of which could have very strong elements of the intangible. When
generating this process need to ensure that the customer would be able to follow and
as the service is intangible need to look for evidence of what will be provided. In the
model of the Goods-Service continuum, (Appendix X), this shows the types of industry
and where they sit on the scale. The Brewing industry is definite tangible goods but
within Coors Brewers there are also large service areas that could potentially be
classed as separate entities, for example an IS department.

Important benefits from improving service quality would be seen in several things, for
example, reputation, premium prices and improved profitability, reduce re-work by
right first time approach and low attrition rate of employees.

If you work with the GAP model, (See Appendix XI), this can assist with working
through the quality areas within service. One of the crucial parts of this model is at
Gap 5. This is where there is a strong need to publish what service can be expected
and ensure that this is what is perceived to be the case by the customer. This could
be done in the form of SLA’s and KPI targets. There is also a key part which is not
included in this model, that of the “moment of truth”. A customer’s impression of a
company is made within the first few minutes, this is known as the moment of truth, if
this is then linked with the word of mouth communication this can have a very
damaging effect. There needs to be some very definite measures and quality checks
implemented to ensure that expectations and perceptions are equal and that both
internal management and the customers are aware of the levels. In the Coors Brewers
environment for internal measurements there are customer satisfaction
questionnaires and the business alignment process. These are all key indicators of
how well we are meeting those needs.

The business alignment programme and period reporting enables publication of


progress and targets on meeting customer needs internally. The balanced scorecard

Page 14
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

indicates how the Company is achieving externally but there could be more publication
to the general customer base.

Page 15
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

4. Communication

Once the models and theories have analysed your position there is then the need for
communication. This is to ensure that your brand or service is promoted in the
correct manner. Key factors when producing a communications plan are to determine
the objectives and design an appropriate message, this may be to create awareness or
to correct mis-interpretations about your company. In an incident of product recall,
the message needed to go out to make people aware of why and what remedial action
had been taken to ensure no further recurrence.

Determine a budget and the ideal promotional mix. Always ensure that activities are
scheduled and that results are reviewed in order that changes can be made where
necessary. Evaluation is the key. The promotional mix will be very dependent on what
product or service you are selling and to whom you are aiming it, which in turn will
impact on the budget. In order to promote Carling’s new image there have been high
levels of TV advertising, relationship marketing and radio sponsorship to promote the
Carling Live shows. New associations with young and lively people need to be
advertised in the correct manner. It may well be the case that the budget cannot be
predicted accurately until the campaign has been decided.

The effectiveness of marketing plan has to be an essential part, without effective


monitoring and evaluation it is possible to be “throwing good money after bad” and end
up with disastrous results. A system currently on pilot within Coors Brewers is that
of an activity planner that monitors the effect of promotions, enabling effective
monitoring of how well a promotion is performing.

Awareness of marketing plans is not communicated internally within the company on a


large scale. There are some key promotional adverts that mobile phone users are
made aware of and advertised internally on the Coors Brewers intranet but general
marketing plans are not published therefore employees are not aware of up coming
ideas or new products. There are some incentives on-going that are instigated by
employees themselves and the beer reverence campaign but these are not pushed
enough by the generating areas.

Page 16
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

5. Implementation

“Marketing implementation is the process that turns marketing plans into action
assignments”, (Adapted from Meeting Customer Needs, Lecture notes, February 2004).

Strategy needs to be effective in order that you achieve a successful implementation.


Ensuring you have specific actions set out, a programme for control, structure in place for
monitoring and budgeting and the correct corporate policies. The model below illustrates how
implementation is dependent on these factors.
Marketing implementation is:

Success Roulette
Strategy is:
Excellent

Targets met for growth, Good execution mitigates


Appropriate Inappropriate
Share, and profits Poor strategy, gives management
time to see and correct it….
Or, it hastens to failure

OR

Trouble
Poor execution hampers good
strategy. Failure
Management may never become But hard to diagnose because
Poor

aware of strategy correctness. poor strategy is masked by


inability to execute.

Source: Adapted from P Doyle, Marketing Management and Strategy, Prentice Hall, 1998, p.
438.

Page 17
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

6. Conclusions

In conclusion to this report, Coors Brewers are, to a degree, a customer orientated


company. There are key brands that are fundamentally the backbone of the business
which have maintained the market share by sustaining the differential from other
companies within the industry. Although marketing plans are not a public entity to the
Coors Brewers employees, key initiatives are communicated via Intranet pages and
occasional mobile phone text. Individual areas are responsible for their own brands
marketing but there could be more unification between departments which may give a
more effective outcome in some situations.

There is evidence to support the fact that CB are a customer orientated business in
the way that they respond to market research, meeting customer needs with branded
glasses, rebranding and popularising older brand names to make them more attractive
to specific audiences and moving towards a healthier image with the “beer naturally”
campaign. The association of Carling with live bands and taking them back to the roots
as well as our constant innovation programme gives the consumer the overall image of
a lively and up to date company.

Internal marketing is sporadic dependent on the area of the business. There is the
Business Alignment Programme that attempts to bridge the gap between the business
and other departments and there are initiatives in place to build on this with the
potential investment into research and development and a more proactive approach.

The annual performance reviews also attempt to align the individual to the business
and apportion some responsibility towards the Company success.
7. Recommendations

Coors Brewers as a Company should be looking for a more integrated marketing plan,
combining the efforts of each brand-marketing department to enable a more
effective promotional plan. There should be more awareness across the business of
what actions are in place to meet the customer needs and internally more promotion of
activities taking place.

With the collaboration between Coors USA and Coors UK there is a need to emphasise
in advance the importance of communicating marketing plans, expected outcomes and
publicised customer service levels.

Internal departments within Coors Brewers should be investigating ways of marketing


their own services to the rest of the business and conversely recognising the
responsibility that each area has.

Page 18
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Word Count: 3710

Page 19
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Bibliography

Booms BH, and Bitner, MJ, (1981) Marketing Strategies and Organisation Structures
for Service Firms in J Donnelly and WR George (Eds) Marketing of Services, American
Marketing Association, Chicago

Coors Brewers, (2002). Strategy website. (online). Burton upon Trent: Coors Brewers
Offices, December 2002. Accessed via the URL> www.intranet.brewers.bass.com

Coors Brewers, 2002, Worthington’s Autumn Issue 2. Burton upon Trent.

Doyle, P, (1998) Marketing Management and Strategy, Second Edition, Hemel


Hempstead, Prentice Hall Europe

Hooley, Graham J., Saunders, John A., & Piercy Nigel F, (1998), Marketing Strategy &
Competitive Positioning, Second Edition, Hemel Hempstead: Prentice Hall Europe

Hannagan, T, (2002) Management Concepts and Practices, Third Edition, London,


Pitman

Levitt, T, (1981), Harvard Business Review, May-June.

McDonald, M, (1995) Marketing Plans How to Prepare them: How to Use them, Third
Edition, Oxford, Butterworth-Heinemann

Nottingham Business School, Managerial Task, Lecture notes, November 2002.

Page 20
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendices

Appendix I The Strategic Planning Process

The output of the strategic planning process should include the following:

Mission Statement, Financial Summary,1Market


Mission
overview, SWOT analysis, Portfolio
summary, Phase
Assumptions,
one - Marketing Objectives and strategies, Three-year forecasts
and budgets.
Goal Setting
2 Corporate
Objectives

3 Marketing Audit
Phase two -
Situational review

4 SWOT Analysis

5 Assumptions

6 Marketing
Objectives &
Strategies

Phase three -
Strategy 7 Estimate
formulation Expected results

8 Identify Alternative
plans & mixes

9 Budget
Phase Four -
Resource
allocation and
monitoring 10 First Year detailed Measuremen
implementation t & Review
programme

Page 21
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Source: Adapted from M McDonald, Marketing Plans, How to prepare them: How to use them,
Butterworth-Heinemann, 1995, p. 26.

Appendix II Additional key Strategic Factors

Factors Impacting on Coors Brewers Strategy

Market Size
In Volume Terms The UK Beer Market
Is Mature And Relatively Static
Channels
Growth channels are Off-Trade and National
Sales
Products
Premiumisation will continue to drive beer market
Strategic
value growth
Themes
Consumers
Consumer Drinking Behaviour Is Increasingly
Occasion Led and moving from on-trade to home
drinking
Brands
Compared To Other Sectors, Big Beer Brands Still
Have Enormous Potential For Growth
Competitors
Coors has been gaining share while the industry
has consolidated

Source: Adapted from the Brewnet Strategy web page, April 2004

Page 22
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix III P.E.S.T Analysis

Political OFT decisions


Budget – PPS Duty
Drink driving laws
Company Car Tax
Trade Unions
Pressure Groups
Portland Group
Anti-smoking laws

Economical Industrial Market Decline


Increased Branding power
Increased Competition for leisure
Banks
Consolidation of customers

Social Increase in women drinkers


Social attitude towards drinking
Demographics
Technological New technology – Barbox, e-Ric
Wider communication channels – network technology
NPD
Salesforce – TES initiative
Tech Services representatives - PDC

Page 23
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix IV Porters Five Forces

Porters “Five Forces Analysis”

Threat of new Potential New


entrants: Entrants Bargaining power of
Other FAB’s brands, buyers:
Multiple suppliers
premium lagers,
with similar products,
premium ales e.g. Scottish &
Newcastle, Carlsberg
Tetley and
Asda/Walmart
Competitive
Substitute forces on a Buyers
products Company

Threat of substitute
products:
non-alcoholic
drinks, health food
drinks, energy Bargaining power of
drinks Suppliers suppliers:
Bottling, Canning,
plastics, hops. The
fewer the suppliers
the higher the cost

Source: Adapted from T Hannagan, Management Concept & Practices, Pitman, 2002, p. 149.

Page 24
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix V Boston Matrix

The Boston Matrix below indicates market share and growth and distinctive names to
highlight the prospects. (Source: Adapted from T Hannagan, Management Concept &
Practices, Pitman, 2002, p. 113).

Market Share

High Low

FABs – (Reef, ARC, etc.)


Premium Lager
Screamers

PROBLEM CHILD
STAR
High
Market Growth Rate

Grolsch

Core Brands – Regional Ales


Carling and the
Worthingtons range
CASH COW DOG
Low

Hooch

Page 25
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix VI Balanced Scorecard

Balanced Scorecard – October 2002


- Consumer Measure Market Share

25%
24%
23%
22%
21%
20%
19%
18%
17%
May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
01 01 01 01 01 01 01 01 02 02 02 02 02 02

UK Value Market UK Volume Market


Share (%) Share (%)

Source: Adapted from the Coors Brewers Balanced Scorecard, October 2002

Page 26
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix VII McKinsey’s seven-S diagram

Source: Adapted from P Doyle, Marketing Management and Strategy, Prentice Hall, 1998, p.
132.

Page 27
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Key account mngrs,


ADM’s
Decentralised
Salesforce
Staff rotation in form of
Formal strategies in secondments etc.
place both Company Core systems run on
and individual simple infrastructure
departments. Individual Processes and
managers responsible procedures defined
for own area individual to
department and shared
where applicable
Structure

Strategy Systems

Shared Standard and


Highly skilled workforce
in all areas of the Values consistent telephone
manner across the
business. Dedicated
Company.
long serving staff with
Standard dress code
specialist knowledge in
Clean desk policy
the industry
Skills Style Classic reception areas
displaying brand
images

Motivated staff
Defined personal
Staff
targets via the APR Shared values
system and PBO’s. throughout the
Clearly defined Company with key
reporting structure in values
place Blue book with vital
actions and business
alignment programme

Page 28
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix VIII Creative Brief

Brand Strategy: Creative Brief Source: Adapted from Meeting Customer Needs, Lecture
notes, February 2004.

Target Market: Which consumers are we trying to attract? Typically is this 18-25
year olds in town areas, students looking for a cheaper option.

Consumer insight: A value that our product can offer that competitors cannot, Carling
extra cold, Screamers, ARC. Lower priced FAB’s aimed at the student arena.

Rational Brand Value: Value for money product with quality image. Consistent range,
variety of flavours.

Emotional Brand Value: Linked to a particular event. Carling linked to Live music,
taking bands back to their roots, gives feeling of comfort. Reef linked to sexy image.
Grolsch is synonymous with a laid back, relaxed attitude.

Consumer Proposition: Essence of the product, strapline to link to it. Carling “Beer
naturally”- gives overall impression that beer is actually a healthy product from
natural sources. Grolsch, “brewed slowly since 1615” portrays the message that
quality takes time. Coors Fine Light “Epic Refreshment”, tells the consumer that it is
a refreshing drink.

Personality profile: what are the traits of the product. Carling would be a lively 18-
24 year old male who likes drinking with the lads and playing football. Reef would be a
sexy girl with vitality and energy. Grolsch would be a laid back, confident 25-27 year
old man. Coors Fine Light would be an energetic, outdoors man.

Page 29
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix IX Goods-Service Continuum

Soft drinks

Brewing
Detergents
Automobil
Tangible e Cosmetics
dominant Fast Food
Outlets
Advertisin
Intangible
g Agency
dominant
Consulting
Information
Technology Teaching

Source: Adapted from P Doyle, Marketing Management and Strategy, Prentice Hall, 1998, p.
355.

Page 30
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix X The Marketing mix for services

Product Price Place Promotion People Physical Process


Evidence
Range Level Location Advertising Personnel Environment Policies –
– clean area, Consistent
tidy, across all
professional areas

Quality Discounts/ Accessibilit Personal Training Furnishings – Procedures –


allowances y selling Discretion consistent, guidelines
clean and
inkeeping

Level Commissions Distribution Sales Appearance – Colour – Mechanisation


channels promotion uniform, subtle – how does the
smart, casual system work

Brand name Payment terms Distribution Direct Interpersonal Layout – well Employee
marketing behaviour – organised direction
how do layout,
departments organised
interact company

Serviceline Customer’s Public Attitudes Noise level Customer


perceived relations involvement –
value How much say
do they get in
how the
service is
provided

Warranty Quality/price Internet Other Facilitating Customer


customers goods direction
behaviour
degree of
involvement

After sales Differentiatio Customer/cust Tangible Flow of


service n – what else omer contact clues activities
can we offer

Page 31
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Source: Derived from BH Booms and MJ Bitner, “Marketing Strategies and Organisation Structures for
Service Firms” in J Donnelly and WR George (Eds) Marketing of Services, American Marketing
Association, Chicago, 1981
Adapted from Meeting Customer Needs, Lecture notes, February 2004.

Page 32
This document was downloaded from Coursework.Info - The UK's Coursework
Database - http://www.coursework.info/

Appendix XI Service Quality

Service Quality: The Gap Model

Word of mouth
Personal needs Past Experience
communication

Expected Service

Gap 5

Perceived Service

Consumer

Gap 1 Marketer
Gap 4 External
Service Delivery
Communications
Gap 3

Translations of
perceptions into
quality

Gap 2

Management
perceptions of
consumer
expectations

Page 33

You might also like