M1-Compare Marketing techniques used in products in two organisations
D1-Evaluate the effectiveness of the use of techniques in marketing products in one organisation
Within this task, i will be comparing the market techniques used in marketing products.The two organisations i have chosen are Pepsi and Cadbury.I will be accessing the effectiveness of the use of techniques in marketing products in one of the organisations that will be Pepsi
There are four main techniques i will focus on, these for are:
Growth Strategies
Relationship Marketing strategies
Branding
Brand building and positioning
Growth Strategies:these are strategies that are aimed at profiting off a huge market share prospect which would be at the expense of short term earnings.The business sales can be maximised on a daily basis due to the incorporation of growth strategies,the business can be more successful from it because it does not need to be losing out on profits which would otherwise increase while the business is growing.
Pepsi aims to grow because they are still behind in the soda market to Coca-Cola because they are unable to grow at the same projected rate it means that they are less favoured on the scale of public opinions.Although not as large they still provide their loyal customers with the best services available so that customers satisfaction level increases and the owners are confident in the way that they listen to the complaints and wants of the customers.Pepsi is attempting to invest more money into finding younger customers that way they can build up brand loyalty because it means the upcoming generations have a much deeper association with Pepsi.
Cadbury uses growth strategies seasonally releasing a bar that is relevant to it o that there is constantly a new product on the market for customers to buy.This year alone Cadbury has introduced the ‘Dinky Deckers’ as the newest edition of its lineup.This done so that they can compete with other food brands in the market who keep releasing new items to engage their customers.This technique is effective for Cadbury because they stay relevant and up to date with current trend which is a contrast to Pepsi recently who are falling further and further back development wise sine their controversial PR scandal advertisement in 2017.This did not help Pepsi because since they were well known for these issues it proved another reason in which to disassociate with the brand entirely.
Branding: is beyond just a memorable logo, good branding increases the value of a company, provides employees with direction and motivation, and makes acquiring new customers easier.A brand represents the sum of people's perception of a company's customer service, reputation, advertising, and logo.Pepsi is seen as a youthful and energetic brand that has evolved and stood the test of time being a go to for teenagers and young adults despite not always being regarded Pepsi’s parent company PepsiCo was also recognised in the most effective marketer category, rising from fifth to second then behind only Unilever, which retained its place at the top of the list. It is the fifth time since the ranking began in 2011 that the FMCG giant has been named most effective marketer.
Cadbury is one of the most influential chocolate companies that use conventional methods to increase the emphasis on their branding capabilities.This is effective because since they are well trusted making little marketing mistakes it draws more people towards the brand simply by just doing the right thing and not taking unbearable risks like Pepsi this is why it is well received and apart from sales has positive connotations around.
Relationship Marketing:Relationship marketing is a face of customer relationship management (also known as CRM) that maintains a strong upheld focus on customer loyalty and long-term customer engagement rather than shorter-term goals like customer the acquisition and individual sales that are made this is one of the problems that Pepsi regularly faces because millions of pounds are spent on research.Research is used to target a select group of people but have been unsuccessful in gaining many customers in relation the amount spent on research meaning that it is not very effective at relationship marketing.
Cadburys attempts of relationship marketing have gone a lot more smoothly and a lot better received with their campaigns along single or multiple personalised items with the buzz attracting the attention of social media giving an effective free source of promotion for them whereas Pepsi would be required to invest millions in order to get a similar effect on their customers.
Brand building and positioning:Brand positioning is defined as the conceptual place you want to own in the target consumer's mind — the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximize customer relevancy and competitive distinctiveness, in maximizing brand value.
If people misunderstand your brand like with Pepsi, you can’t just make a few subtle tweaks to change their minds.It means that you have to move strategically from the position your brand currently occupies in mindset of the customers to where you want it to be. You also have to be certain and committed that the position you want your brand to hold in the marketplace isn’t already taken by some other brand.This is one of the biggest issues for Pepsi and in comparison to Cadbury measures up poorly because the brand is in a market where elements are already taken by a competitor, so they face a long and tough uphill battle.
An issue that Cadbury has however is the acquisition of leaching and leverage off other successful chocolate brands like M&M's and Mars . By making the brand display similarities to others customers will go for the brand that they most appeal to.This is not effective because it draws attention and , casts a spotlight on competitors and point out your own second-tier position which only helps to excel competitor growth.
Conclusion:In this assignment i used research and the M1 to show how effective each of the strategies that Cadbury and Pepsi used and then i compared the two amongst each other which displayed that there were similarities and very contrasting differences when regarding their approaches of effective marketing.