MKT4001 Principles of Marketing

MKT4001 Principles of Marketing Sample Assignment

Section 1 – Marketing Environment and Planning Process 

a) Components of the marketing planning process

Hill’s Vineyard (HV) is required to structure the planning of marketing based on three essential components such as market research, competitive position, market strategy, and budget. The following components are required to be considered by HV for business expansion outside of the UK.

MKT4001 Principles of Marketing
Figure 1: Components of the marketing planning

(Source: Learner)

Market Research

Research is considered the backbone of marketing plans for internationalization. As Hill’s Vineyard is looking forward to expanding the business of wine outside of the UK, the company needs to collect, organize and analyze market data. The market research process is necessary for HV to understand the most essential elements of the market such as market dynamics, customer expectations, variety of products, standard price, and supplier information (Ruiz and (2017).http://MKT4001 Principles of Marketing Assignment Sample Market research in HV helps to develop the roadmap for the future marketing plan.

Competitive Position

Analysis of market competition is a significant tool for the market entry of HV in countries other than the UK. As per Rizzo (2019),http://MKT4001 Principles of Marketing Assignment Sample the present business world dominates the intensive competition in the wine industry of Europe. Hence, it is important for the company to understand the business strategies, marketing process, and pricing strategy of competitors. It is essential for attracting customers in the target market and surviving in extreme competition.

Market Strategy

Market strategy is the third essential component of the marketing planning process, which mainly focuses on increasing sales. In order to survive in competition, Hill’s Vineyard needs to find a way to attract customers to buy the liquor products. There are multiple market strategies such as email, social media, webinars, content strategy, partnership, and others to enhance the market strategy of HV (Chiang et al.2018).http://MKT4001 Principles of Marketing Assignment Sample

Budget

A budgeting plan for the marketing process is crucial for preventing additional expenses. Besides, budgeting is important for the internationalization of HV as it ensures sufficient money to execute day-to-day tasks. Therefore, HV should develop a quarterly or half-yearly schedule of expenses, which is required in the marketing process. Moreover, a red light decision point is required to be developed as well to prevent additional spending (Lombardi et al.2018).http://MKT4001 Principles of Marketing Assignment Sample

The above-mentioned marketing orientation is beneficial for the business development of HV, as the company focuses on internationalization. The orientation can play a significant role in the online business and vineyard tours offered. A clear understanding of the market trend is favorable for HV in terms of market entry, business development, and sustainability.

b) PESTEL analysis 

PESTLE analysis considers an essential tool for understanding macro-environmental factors affecting the business development process. The following analysis gives to gain in-depth knowledge regarding environmental factors of overseas countries.

Factors Analysis
Political Political factors such as political stability and taxation on the liquor products in the liquor procedures can have a significant impact on the business of HV. According to Brown et al.(2019), http://MKT4001 Principles of Marketing Assignment Samplepolitical factors like Brexit are more likely to influence the international trade of small businesses of HV in a positive manner. However, it may become challenging if the EU on the products of the UK will apply extra.
Economic The most significant economic factor that can affect the internationalization strategy is an economic recession. The outbreak of the COVID-19 pandemic is responsible for slowing down the economy of the UK (Nicola et al.2020).http://MKT4001 Principles of Marketing Assignment Sample Smaller businesses such as HV may face challenges in accessing financial and equity markets. As a result, it can be challenging for the business sustainability of HV.
Social Social factors especially the popularity of wine among the people of target countries such as France are essential for the business of HV. However, health awareness programs such as that non-communicable diseases are influencing the purchasing decision of customers around the world (Nyberg et al.2018).http://MKT4001 Principles of Marketing Assignment Sample Decreasing demand for wine products can be challenging for the business of HV.
Technological Technology has become a key component of business development in the present world. HV has the opportunity to use frontiers technologies in the marketing of products and enhancing service quality. As discussed by Rabah (2018),http://MKT4001 Principles of Marketing Assignment Sample AI and IoT will be helpful for enhancing the online service delivery of HV. Besides, the infrastructure of vineyard tours improves with the help of industry 4.0 technologies.
Legal The most significant legal factors in the context of the liquor industry are government regulations and consumer health laws. In order to do business in an efficient manner, the company must comply with the rules and regulations of overseas markets. It is important to ensure the high quality of the wine, which follows the health guidelines. A small mistake regarding compliance can pose a significant threat to the company.
Environmental The environmental impact such as pollution and land use is associated with the production process of wine. Increasing usage of pesticides and chemicals in vineyards can pollute the environment significantly. This can affect the quality of the products and may lead to legal consequences for damaging environmental resources (Mehr and Mortazavi 2019).http://MKT4001 Principles of Marketing Assignment Sample

Table 1: PESTLE Analysis

(Source: Learner)

Microenvironment

Competition in the wine industry of Europe and the world can be challenging for the business development of HV. As argued by Choi (2017),http://MKT4001 Principles of Marketing Assignment Sample in the context of the international wine industry, companies such as Johnnie Walker, Jack Daniels, Bacardi, and Royal Stag are dominating the business world. It is quite challenging for a new company such as Hill’s Vineyard to expand business within the extreme competition. The company is required to adjust itself to the extreme competition of the liquor industry to survive. Apart from this, product development and pricing strategy are required to design as per the market trends.

c) Marketing mix 7PS

Product

The development of products and services based on customer demand is necessary for sustaining business in the international market. It is important for HV to increase the variety of products as per market trends to gain a competitive advantage. As cited by Yuliantine et al.(2018),http://MKT4001 Principles of Marketing Assignment Sample the product of HV needs to be developed in the manner that customers prefer to buy it rather than the substitutes.

Price

A competitive pricing strategy attracts customers, as they prefer high-quality products at low prices. HV should examine and re-examine the competitive price of the target market and then decide on the product price. According to Hamza and Sutanto (2016),http://MKT4001 Principles of Marketing Assignment Sample the company may be required to lower the price at certain times to increase selling volumes over online and offline stores.

Promotion

Promotion is the key to the process of reaching customers and telling them about products and services. A small change in the promotional and advertising process can lead to big changes in terms of financial profitability (Novela and Hansopaheluwakan 2018). As an example, an e-marketing strategy could be beneficial for the HV to connect with customer efficiency over internet channels.

Place

The distribution process is considered a place in the marketing mix strategy. It is important to develop distribution channels or develop partnerships with liquor stores to penetrate the wine products of HV in the target market. The online selling process can further boost the sales process of the company.

People

People are the customers of a target market who are directly related to the business of HV. Thorough research regarding the needs and expectations is important for developing an effective marketing strategy for wine products (Timotius 2017). Besides, the needs of internal people such as employees and suppliers are required to be met for ensuring operational efficiency.

Process

The process is the system of executing all the activities of a business in the international market. The entire sales funnel, the distribution system, and operational activities are maintained effectively to develop high-quality products and their delivery to customers.

Physical Evidence

Physical evidence such as brand image development is crucial for the success of the business of HV. People like to buy products that have a good reputation and positive word of mouth (Hamza and Sutanto 2016).http://MKT4001 Principles of Marketing Assignment Sample The physical evidence can be created by HV by providing an effective marketing strategy and high-quality products.

MKT4001 Principles of Marketing

Figure 2: 7Ps of Marketing Mix

(Source: Learner)

Section 2 – Segmentation, Targeting & Positioning 

a) Segmentation for UK-based customers looking to buy Hills wine online

The online sales of products of HV are not for all the people of the United Kingdom such as kids and old people. Hence, it is important to divide the customer base in the UK using market segmentation. As per Micieta et al.(2019),http://MKT4001 Principles of Marketing Assignment Sample market segmentation is important to meet the specific needs of the target people group and potential customers. The following approaches can be used for market segmentation of HV for UK-based online customers.

Demographics

Demographics refer to the personal attributes such as age, gender, and ethnicity of the customers of the UK. As HV mainly deals with liquors, hence, the minimum age of online customers should be more than 18. Besides, both males and females are eligible for buying wine on online platforms. Moreover, the ethnicity of customers needs to be considered as well, as liquor is forbidden in many societies.

Psychographics

Personality, lifestyle, and values fall under the segments of psychographics. In this segment of the marketing process, the choice and frequency of drinking of UK, based customers are required to be considered. In order to understand the choice and preferences of customers, the company may use online surveys or existing customer data.

Geographic

Geographic segmentation is done based on the country, state or city of a particular market. As the online sales process is open to all the customers from different regions, they cannot be separated based on region. In the geographic segmentation, wine products of HV should cover all the regions of the UK kingdom, as the STP strategy is focused on UK-based customers of online sales.

b) Identifying the B2C target market

The targeting B2C market is required to be done based on the profitability of potential segments. Customers of ‘Vineyard Tour’ are required to be done based on four essential components such as demographics, behavior, benefits sought, and lifestyle.

Demographics

In the context of Vineyard Touring, B2C segmentation of HV should be done based on age and occupation; Tour offerings of HV is should be provided for customers more than 20 years of age. The customers are required to have a permanent job or established business so that the chances of purchasing a large volume of wine would increase.

Behavior

In the context of wine tourism, customers’ willingness to participate in vineyard tourism needs to be considered by HV. Customers who are eager to experience tasting, consumption, and purchase of wine should be targeted.

Benefits sought

Benefits sights refer to level advantages that can be gained from the target audience. It is important to target those customers, who have a preference and potential to buy wine during vineyard tours. It is important to remember that vineyard tourism is mainly focused on increasing the sales volume of HV’s business.

Lifestyle

The lifestyles of target customers are defined by their hobbies, activities, and non-work time pursuits. It is essential for HV specifically targets those customers who include traveling and tourism in their lifestyle. It will be helpful for attracting customers who like to explore and experience new things in life.

c) Positioning of Vineyard Tour

The positioning of business refers to the place, which is developed by a company in the mind of people. As per Iyer et al.(2019),http://MKT4001 Principles of Marketing Assignment Sample brand positioning helps a company to distinguish its products and services from competitors. A vineyard tour of HV is required to position among the target audience to gain a competitive advantage over competitors. Identifying unique selling propositions can play a significant role in understanding the expectations of customers from vineyard touring offers.

Analysis of the customer expectations based on the value proposition needs to be developed by HV. The value proposition of the company will clearly illustrate how the offering of tours can meet the requirements of customers as compared to the competitors (Koch and Gyrd-Jones 2019).http://MKT4001 Principles of Marketing Assignment Sample After that, a marketing campaign is required to be established by HV to present the value proposition to the target customers, in a proper way, which will be appreciated by the customers.

Section 3- Marketing Mix Analysis

7Ps of Marketing:-

Product Hill Estates’ Vineyard covers about 20 acres of land in Hampshire, England. Some champagne companies in France are their competitors. Some of such companies are Charles Heidsiek, Moet and Chandon, Perrier Jouet, Ruinart, Pommery and Mumm. Hill Estates’ wine has a significant competitive edge over these competitors since they are the local winemakers of the UK. As stated by Loo and Leung (2018). The domestic group of people accepts the Hill Estates wine. Since Hill Estates’ wine is very famous among the local people, in normal case their fame is much more than the other competitors. Hill Estates’ owner has trust in them that their sparkling wine is the best rival to the champagne companies in France and other countries.
Place The Hill Estates’ owners always focused on the convenience of the customers’ comfort; hence, they planted their outlets in such a way that they are easily accessible to the local customers of there. As stated by Simanungkalit (2018) http://MKT4001 Principles of Marketing Assignment Samplewith the effectiveness of the famous chalky soil in North Downs, the owners of this company have a high advantage in making their product effective. The owners of the Hill Estates company also offer a “Vineyard Tour” to UK-based visitors. The owners also knew that in order to make these extra facilities, they would need the help of the outside companies. Therefore, to develop their existing business, they started to communicate with other companies from outside.
Price The Hill Estates’ owner also tagged the price of their products keeping in mind that the prices should be reasonable to the local customers. As stated by Nersisyan (2017), this strategy helped them to gather more customers to their side. The champagne prices in UK areas vary around 50 pounds. The Hill Estates’ owner tagged their price in such a way that the prices of its wine should be lesser compared to competitors in France or Paris. Within that price range, they also made a profit. The strategy helps the company to pull in several international customers.  Hence, the price of Hill Estates’ products is easily accessible to the customers from the inside and outside.
People The owner of Hill Estates not only focuses on their customers but also on the employee over there. They always keep in mind that the employee over there is facing no issues with any circumstances. The Hill Estates company also provides a great deal to the employee’s relatives and the closest ones. Therefore they are pulling more customers towards themselves in this scheme. The owner of this company also provides paid leaves to their employee so that they would not face any issues. The employee over there are more efficient in their work and with this efficiency, they are capable of manufacturing more and more products of various types attracting customers towards themselves (Tabb nor, 2019).http://MKT4001 Principles of Marketing Assignment Sample  However, all the employees did not need to face the customers, the extreme internal employee is also hugely skilled in their performance and they get the same privileges as the others.
Promotion The owner of Hill Estates is also quite efficient in promoting their business to the outside world. As stated by Putney (2017),http://MKT4001 Principles of Marketing Assignment Sample they promote their companies in many ways like on social media and in other domains also. The Hill Estates’ owner represents their business through Facebook in a great way. They also use other social media like Instagram to represent their business in foreign countries. The owner also uses other things like websites to represent their business. They keep staff maintaining their pages in a proper way so that the pages and the websites are always accessible to people across the world. The staffs are highly serious about maintaining their pages and keeping them updated from time to time. The people who try to contact them on any site get a very prompt response, which allows them to connect with the Hill Estates easily.

 

Physical Evidence Hill Estates’ products are very unique from the other brand or companies. The designs of the wine bottles are unique and attractive being very eye-catching to the people. The beer bottles made by this company are quite different from that of other states or countries. The Hill Estates company spreads over 20 acres of land on the North Downs with its famous chalky soil, which is a great advantage to the owner to make efficient products.
Process The process of Hill Estates is very simple and easy to use for customers across the world. There are different modes of payment available for buyers across the world (Hawkins and McCambridge, 2018). The process of ordering and billing is very user-friendly to customers across the world. People can order the products on their pages or websites with a single click. The feedback of the customers is very pleasing to see in the feedback section. This outstanding feedbacks also attract different people from all over the world.

Table 2: Marketing Mix Analysis Table

(Source: Learner)

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