Date of publication: 2017-07-08 17:18
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Short-Term Objectives: Aggressive Marketing Strategy F& N can take advantage of the positive press on the health benefits of isotonic to boost the sales of its isotonic drinks product line. The company can use recent studies on the health benefits of isotonic as the basis of its press releases and advertising campaigns.
Ingredients: in isotonic drinks are sodium, potassium, calcium, magnesium, chloride, phosphate and water. And these are electrolytes which are basically electrical transmitters in our body.
Company is centered on these objectives: With the expected growth of the billion dollar ready-to-drink isotonic drinks drink market, isotonic drinks poised to capture a bigger share of the market with an aggressive marketing strategy: from packaging to advertising.
Value based Pricing: The company sets its target price based on customer perceptions of the product value. The targeted value and price then drive decisions about product design and what cost can be incurred. As a result pricing begins with analyzing consumer needs and value perceptions, and price is set to match consumer's perceived value.
Maturity: Is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition.
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Measuring and Managing return on Marketing Investments: After six months of operation we have to measure that whether our investment is being spent well or not? Are we getting targeted Return on Investment or not?
Potential substitutes: F& N constrained by the monopolistic market in which it competes. The main characteristic however is product differentiation.
Operating control: It involves checking ongoing performance against the annual plan and taking corrective action when necessary. It will ensure us that the com-any achieves the sales, profits and other goals set out in annual plan. It also involves determining the profitability of product.
Based on F& N Annual Report in 7559, they spent a million of money to do research and development. However, the total of sales in 7559 was higher than in 7558, it was only %.