Marketing And Sales Management: Neat Food Company Limited
This assignment will investigate the sales plan used by Neat Food Company Limited. It will explain the nature of the company’s insight and directions they use for marketing. This report will also explore how Neat Food company approaches and attracts its customers and ways to improve customer care.
It is true that firms can have a competitive advantage of market share when it has a significant and sustainable advantage over its competitors (Baines & Fill, 2014). This is mostly done by attracting customers from other competitors by producing the best quality of products (Baines & Fill, 2014). The primary duties of management are to allocate an organisation’s resources by planning, organising, directing, coordinating and controlling for the purpose of producing goods and services to its customers; this will enable the business to achieve its aim (Ismali et al., 2018). When management found out that their current products and their market would not be successful, they can have two options that involve moderate costs and risks (Bendall & Stent, 2007). After analysing the strengths, weakness, opportunities and threats (SWOT) of the company, the management is able to develop a strategy for the least cost-effective to improve sales (Coman & Ronen, 2009). This is by making changes related to areas by expanding channels of distribution or by changing the content of advertising or promotion (Coman & Ronen, 2009).
A product is goods or services a company sells to its customers, whether its physical goods or service to satisfy a need or want. (Brendler et al., 2018). Product development involves the substantial modification of existing products or the creation of a new product (Brendler et al., 2018). Due to the regular changes in customers taste, technology and the rise in competition, an organisation cannot depend only on its current products (Glancy, 2016). In order to remain in production, companies need to grow in terms of revenue and profits (Glancy, 2016). There are numerous planned options available, which enable firms to produce successfully (Glancy, 2016). Most organisations strategies their resources through the growth of the company which involves directing its resources to improve profitable growth of a single product in a single market with a single leading technology (William Newburry et al., 2016). The approach of this strategy is sometimes called a market penetration of concentration strategy (William Newburry et al., 2016). The firm carefully progresses and exploits its expertise in a delimited competitive arena (William Newburry et al., 2016). The plans which lead to improved performance needs the ability to assess what is in the market, knowledge of buyer behaviour and customer price sensitivity, and success of promotion (William Newburry et al., 2016).
Neat Food Company Limited
Neat food company was established in Ghana by the Despite group of companies to produce and market food in the Ghanaian market (Obosu-Mensah, 1999). The company adopts an intense growth strategy because it is a more powerful weapon for an organisation that has progressively and determine to improve its market position (Pearce & Harvey, 1990). This is by embracing a market segment and tailoring a unique and consistent product offering (Pearce & Harvey, 1990). The Neat company was effective in the food processing sector even though the company compete with others (Obosu-Mensah, 1999). The company finds a way to identify potential barriers to sales that have been imposed by their competitors and remove them (Obosu-Mensah, 1999). The company has positioned the unique value of their customer care by going through the customer’s driving force to the strengths of their offerings (O’Cass et al., 2014). The Neat company developed Neat fufu, dedicated its resources and channels its marketing effort into that one single product innovation, and it has catapulted the product into the shelves of many supermarkets in Ghana (O’Cass et al., 2014). Firms that remain within their chosen product market can extract the most from their skills and market knowledge that are able to minimise the risk related to distinct diversifications (Obosu-Mensah, 1999). Neat food company was able to address all the different sections within the market in which they operate, although each section is distinct in terms of its specific needs (O’Cass et al., 2014). One mission of the company is to provide regular customers and the general public with the best food available in (Obosu-Mensah, 1999).
One of the company strategies is to create customer awareness about the products offered on how to develop its customer base (Obosu-Mensah, 1999). The message that Neat food company seeks to communicate is that they offer the best-designed food packages at unbeatable prices (O’Cass et al., 2014). The company also emphasis their presentation on the customer’s goals and desired outcomes (Park & Kim, 2014). They used social media to communicate their products to the general public (Park & Kim, 2014). For example, the company’s website provides a rich source of product information which gives consumers the opportunity to make enquiries and order products online as well (Park & Kim, 2014). The Neat company adopted budgeting for promotional strategy by using a percentage of sales methods (Rondan Cataluna, 2004). The company offers an amount for promoting products which generate sales increment (Rondan Cataluna, 2004).
The marketing mix of the company comprises the following approaches to pricing, distribution, advertising, brand promotion and customer service. The company knows that customers are always looking for insight and innovations across competitors (Gilsten, 2018). Due to that, they try to add value with every interaction by sharing a new perspective with them (Gilsten, 2018). The prices of their products are based on the packaging of the product and always include discounts, credit terms, list prices and promotional allowances (Gilsten, 2018). The company uses a cross-subsidisation pricing strategy whereby countries with low incomes have their prices subsidised with profits and resources from affluent markets (Gilsten, 2018). For example, the price of Neat fufu in Ghana is different from the price in the UK.
Developing New Products
Innovation is the key to every successful business organisation. It is risky for a business not to innovate (Harryson, 1997). Consumers and organisations always expect periodic changes and improvements in what they produce or consume. Due to this, Neat company Ghana has found it profitable to make innovation its grand strategy (Harryson, 1997). The Neat company uses some of its profit gain from sales to improve products by developing a system to maintain on industry trends and issues that also help their customers. Rather than face stiffening competition as the means of profitability changes from innovations to production or marketing competence, it searches for ideas for product development (Harryson, 1997).
The Neat company decided not to rely solely on its existing products in the Ghanaian market. For example, Neat foods decided to develop Neat Banku to sell to its existing customers who patronise Neat fufu. This plan is usually accepted either to extend the life cycle of current products or to take an opportunity of a preferred reputation (Harryson, 1997).
Brand Strategy Decisions
Consistent branding is an asset to a business, which makes it easier for the customers to recognise the product or the service needed. A company with a highly known brand can use it to attract new customers. (Baines & Fill, 2014). The introduction of Neat Banku, by the company, will be enhancing its brand name and building brand equity as well (Baines and Fill, 2014). The idea of the brand strategy of the business is to increase market value. (Baines and Fill, 2014). The Neat company decided to engage in the production of Neat palm fruits and Neat Maggi cube to create brand awareness of their new products.
Change of Attitude and Behaviour Strategies
Marketing is all about managing consumers’ behaviour, understanding who buys your product or services, as it will help the company to take decisions effectively (Baines and Fill, 2014). It is vital that every marketer understands this and how to effectively utilise it in formulating marketing strategies aimed at influencing behaviour (Baines and Fill, 2014). To change behaviour means forming a new behaviour which requires that you provide or expose the individual consumers to a set of new information, which makes the consumers develop a strong belief in the information (Baines and Fill, 2014). Once this is achieved the consumers will then be expected to translate the strong belief into the required new behaviour. With this strategy, Neat food company adopted the system of sampling to communicate the quality of their product and brand to consumers by offering free samples for the consumer trial (Kusuma et al., 2002). The company, upon the introduction of Neat maize flour, had sampling programs in Ghanaian markets in order to expose the product to the consumers and to communicate a message about what the product was about (Kusuma et al., 2002).
Strategies for Choosing a Name for a Product
Choosing a name for a new product is a difficult and challenging task especially for small businesses, which needs careful consideration (Hrovat et al., 1994). Brands are very imperative to the marketer as far as new products are a concern and it has severe cultural implications for product acceptance or rejection (Hrovat et a., 1994). Neat food processing company takes this into consideration when choosing a name for a new product. Brands that have legal implications and brands that incite or undermine some cultural norms, beliefs, values etc. need special care (Hrovat et al., 1994). All its product names start with ‘Neat’, which implies a pleasingly and orderly in a clean condition, before the real name of the product. This has given its products acceptance by society and aided its sustainability in the Ghanaian market, and the rest of the African community around the globe.
Businesses must organise sales force strategically so that they can call on the right customers, at the right time and in the right manner (Baines and Fill, 2014). On the other hand, some organisations also have strategic business units, which assume the role of a separate company and create their own strategies and plans to achieve the company objectives (Baines and Fill, 2014). The plan of every successful organisation is applied by means of programs, budgets and procedures, which involves the organisation resources and motivation of the staff to achieve the objectives (Coetzee et al., 2014). The implementation of every business strategy can have a significant impact on the business, either positive or negative. In a large company, it is very likely that those implementing the strategy might be different from those who formulated it. For this reason, the company must be careful about how to communicate their strategy and the reasoning behind it to those who will be implementing it (Coetzee et al., 2014).
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