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Contents

Overall business plan Mission statement Marketing goals and objectives Marketing Audit SWOT analysis PESTEL Analysis CSF Positioning Marketing strategy and tactics Implementation and control measures 5 6 3

3 3 4 5

6 7

Marketing literature Conclusion References 11

12

Overall Business Plan

The overall business plan for company would be to explore various innovative avenues to sustain in the segment which is highly saturated and is also adversely affected by the economic downturn. This can be achieved by differentiating its offering by

implementing a blue ocean strategy. The company will try to add various other products such as books, electronics, CDs/DVDs through vending machines along with the conventional ones such as food, drink, and cigarettes. On a long term basis the company will try to explore the international possibilities and especially in the countries which are currently in development mode and can potentially be economic superpowers in near future. BRIC nations (Brazil, Russia, India and China) can be targeted one by one starting with India due to the fact that this country has highest number of English speaking persons compared to others.

Mission Statement
The mission statement of the company would be: To provide the domestic as well as international customers with a vending facility which will be able to provide conventional as well as contemporary and digital offerings in very convenient, clean and comfortable vending machines.

Overall long-term and short-term corporate and marketing goals and objectives
The short term corporate goal of the company would be to achieve a market share of 2% of the total UK market.

The long term corporate goal would be to be amongst the top 5 vending solution companies in the UK and worldwide by the means of innovative product offering and selective globalization. The short term marketing goal would be to develop a positive relationship with the domestic customers and increase the sales at least upto 20 in a years time. The long term marketing goal would be connecting and building a good relationship with the market the new facet of marketing named relationship marketing.

Marketing Audit
Chiltern Vending is a Bedfordshire based private limited company part of the CV & Sons Group operating the ChillVend brand of vending machines in the UK market. CV was established as a family owned and operated business in 1966 by Martin Healey, an engineer with experience in chilled food technologies. Martin built up the company when vending machines were still a relatively new concept in the UK market. During the 70s and 80s, CV was able to find modest success in selling machines to factories, schools, and office establishments based on concepts of novelty and convenience. The company management has since passed through the hands of various family members including Healeys son but has struggled with stability issues. The operational and strategic responsibility of CV has now passed on to Martin Healeys grandsons Martin Jr. and Sean Healey with Healy Sr. Still wielding considerable influence on decision making at the board level. Economy In the factor of economy, the major risk for ChillVend is the chance of global and UK economy going into financial meltdown. If the recession takes place and sustains for a considerable period of time, the companys sales growth and the marketing and promotional activities will be badly affected. 3

An additional significant feature in economy is the developing markets which are maturing in this vending segment. ChillVends growth will not only be affected by local economy but also by the global economy as it is planning to expand its business the developing markets. The sustained weakness of Euro as well as Asian financial downturn can also hurt ChillVends plan of action and especially its plan for international expansion. Customers The dominant user group for vending machines in the UK are the 16-34 age groups in the C1C2 socio-demographic category while the AB category especially in the over 55 age range restricts itself to hot drinks. Demographic changes, population contraction in the 15-24 age groups, health concerns, changing consumer preferences are all factors that may affect market segments. The focus of the industry currently is generally on food, drink, snacks, cigarettes etc. With a shift of the targeted age group books, electronics, downloads, CDs/DVDs will be sold. The company has to target a huge segment of the latest generation which demands the latest trends and styles. The company should also make an allowance for the varying demographics of UK as well as other countries it intends to enter. Competition The UK vending market is increasingly fragmented with three major players Bunzl, Selecta, and Sinclair Collis command around 18% of the total market. Many other players share the rest of the spoils but no single operator holds more than 1.5% of the total sales.

With so many companies fighting for the pie, the market is very competitive. This leads to a huge expenditure in marketing and promotions which uses a range of channels for reaching the targeted group of consumers. Since the growth in domestic market is sluggish in last few years and will continue to be so, although a future estimate of turnaround is there, it will be important to enter new markets which are developing with high growth rates. The mode of entry into these markets would be based on a sprinkled approach. This will be done so as to keep a room for the incorporation of feedback from how the market is reacting our company and how we need to make changes so as to generate better products and happier consumers. The forecasting of profits will be done by the financial teams and we are hoping to achieve a market share of about 5% by the end of 4 years into the markets.

SWOT Analysis
Strength: The strength of the company is its legacy and experience in the UK vending market. The company has been in the business for a few decades and they know the dynamics of the market as good as any other player in the segment. Due to a long exposure to the market and the customers, it is also an added advantage for the company that it is well known amongst the existing as well as potential customers. The reputation of the company would be kept intact by the use of customer relationship management programmes extensively and to deliver high quality products every single time. The reputation of the company would automatically be driven through good sales and incorporation of customer feedback. Weakness: Though the company has the potential to take the business to the next level, but due to its small size it will suffer from inadequate cash flow. Moreover, credit crunch is affecting suppliers of vending units while the Automatic Vending Association (AVA), the industry representative body cites rising energy costs, financing bottlenecks, 3

and lack of business confidence for the gradual decline in the market. The company is looking into these kinds of problems and would branch out to newer countries and markets which eventually would hedge the company against such kind of risks. Opportunity: The changing domestic consumption and growing foreign economic powers act as the main opportunities for the company. Introduction of more innovative features such as pre-paid cards, cashless machines, and also expand the range and quality of offerings available through machines can also pose as opportunity for the company. Branching out to other countries and developing markets might also be an opportunity and the plan to branch out would be followed up after finding the way things are shaping up here. Threat: The external threat for the company is traditional culinary tastes, socio-cultural taboos, the availability of plenty of freshly prepared food, and issues around health and safety, legislation, crime, and guaranteed supply of good quality ingredients may hamper plans for rapid market expansion in domestic as well as foreign countries. Internal threat is presence of Healy Sr. and other family members in the boardroom who are slow to acknowledge and respond to market challenges and yet attempt to bring in more modern and radical management practices. The company would try to bring more radical management personnel without losing ownership. This would be done through proper training and development programs as well as through research and development of the company.

PESTEL Analysis
Political Environment: Vending which is essentially an US culture can face some problems in UK due to its symbolism of the American culture. The resistant British mentality was disturbed by the American free flowing culture and hence the problems. Furthermore, there are several factors politically like the health policies and their effects would have to be properly grasped before plunging into the market. Such 3

policies of the government might hamper the profit and bring the sales down in vending companies. Economic Factors: Recession can prove to be a good as well as problem factor for the vending company as more and more people will frequent it for cheaper foods. This can be a boon in disguise for the companies. Social Factors: Changing consumer tastes and recent legislative moves towards

restricting the availability of HFSS foods (High in Fats, Sugars, and Salts) in places like schools have had a significant impact on sales. Most purchases are of low cash value, less than 2 usually with the maximum value being 5 in the case of some cigarette categories. Technological Factors: Various technological developments including the EPOS link with suppliers and logistics planning software and reliance of cashless means of payment and measures to reduce fraud (Haberberg & Rieple 2008, p.133). The technology of integrated systems via enterprise resource planning would also be setup to build an easy way of monitoring the income levels from the machines. Environmental Factors: ChillVend faces some serious competition from various other vending companies in UK. The company would setup quality checks and ensure that the product from this company is nothing short but the best among others. This would help ensure that the competition would not be able to take advantage and prove to be a bane for the company. Legal Factors: In UK, there are several legal factors that would have to be managed and eliminated in a proper way. There are factors regarding the licensing procedures as well as the fees which are to be paid to them. Such factors would also be looked upon while entering into the markets.

CSF
The critical success factors for the company would be innovation and globalization. With a sprinkled approach, the company is going to roll on new models by integrating feedback and fusing innovation into their approach.

Positioning
Positioning comes from the segmentation and targeting. Hence before giving the positioning of the company, target market and segmentation will be given. Target segment: The target segment of the company will consist of tech savvy teenagers for digital contents, working professionals and college going students for different convenient products and conventional vending items. People, who generally are time bound, i.e. do not have much time in hand and are price sensitive will be targeted by ChillVend. Segmentation: People who fall under ChillVends segmentation are broadly everyone. Their biggest chunk of revenue and thus the profitability will come from the brand loyalists and the patronages. These people generally do not have enough time to travel to some store and will make use of vending machines for some of the daily used articles. Time constraint or inabilities to travel are the two most important reasons amongst them. Hence it can be easily deduced that the teenagers and the college going students who stay on their own or in hostel are those who frequent these machines. Working professionals also visit these. Positioning: ChillVend's positioning will be as the innovator in the vending industry. They will be vending digital products and different small size IT peripherals. Apart from these they will position themselves as a vending company which will start vending a range of products for which quality will be good and price will be affordable. For making the waiting time very less the systems will be made efficient and user friendly. The 3

positioning of the company would also be as an innovative and a globalised company which believes in producing world class quality products with an aim to generate happy consumers.

Marketing strategies and tactics

For deciding on the marketing strategy, we first need to identify what will be new offerings by the company. Apart from the current bucket of offerings like food items and cigarettes etc the new products which are intended to be vend by the machines are books, electronics, downloads, CDs/DVDs. Few decades in this industry, ChillVend is not at all a new comer in the segment. But still the other companies like Bunzl, Selecta, Sinclair Collis etc. are reigning the market. They are better i terms of market share and thus have an edge over ChillVend. In spite of all these facts, ChillVend has to battle hard to top the list in every possible ways. The key objectives of the marketing campaign for ChillVend are as follows: Awareness about the Vending Facilities: To create awareness about the extensive range of products that can be bought from various vending machines as well as the factor that it saves time and money and offers lots of convenience for the customers. Awareness about the new products which will be offered through Vending Machines: To define and communicate the concept of a vending machine and related company as well as clearly explain the value this brings to its consumers and to establish ChillVend as a renowned vending company, It will also drive home the message regarding the new products which will be offered first on ChillVend. So definitely it will help the company to build a differentiation factor.

Campaign within the Budget: To provide with best in the class products any competitors can provide but very much within the budget. Budget is very important because this will help defining the scope of the campaign.

Basic issue that advertising would address: Establishing an image of ChillVend as a quality vending company that addresses individual customer needs through its unique and never seen before product offerings. Key Benefits those will be communicated are wide range of products to the buyers, new additions to the product repertoire of the company and best in class quality of the products. Campaign theme and appeal would be as follows: The campaign would focus on holistic product offerings and not just some particular daily items. It will stress on the new additions to the product offerings like digital products and different small size IT peripherals. It would also have an emotional appeal that highlights happy and smiling faces that depict satisfaction. The media which will be used are Billboards and print media. These have been decided keeping in mind their low cost as well as wide reach.

Implementation and control measures

The evaluation of PR campaign is generally done post campaign and it determines if the campaign is accomplishing its predetermined objectives. The tests are generally field tests. PR program impact measurement tools those will be used are:

Perception surveys: By asking a cross section of individuals important to the brand about their perception of the organization and its services/products. We can benchmark awareness among key audiences. Opinion polls: Use of smart polling to determine subtle opinion and perception changes. They can go beneath peoples superficial opinions to detect not just what theyre feeling, but why. Media content analysis: The media's opinion won't necessarily track the same as public opinion. We will evaluate media and Internet coverage for content including message pickup, reach and frequency and compare this information to our program objectives. Evaluation for Advertising Campaign: The focus will be on testing the components of the advertise by checking its intended meaning, its desired effect on the consumers and its desired effect on brand image. Most of the tests will be quantitative in nature and will measure certain metrics in Lab testing format which will be done by both pre-test and post campaign. Advertisement program impact measurement tools those will be used are: Comprehension and reaction testing: A key concern is whether the ad conveys the meaning intended. Another concern is the consumer's reaction to the ad.

Comprehension and reaction tests are designed to assess these responses. Personal interviews, group interviews, and focus groups will be used for this purpose. This is a pre test. Inquiry tests: It is designed to measure advertising effectiveness on the basis of inquiries generated from ads appearing in various print media. The inquiry will take the form of the number of phone calls generated or direct physical inquiries.

Recall tests: It is a field test. Traditional interviews with consumers help determine recall and whether viewers remember the ads they see, as well as whether there is a halo-effect among ads. Scores will be based on percentage of respondents who can accurately recall the ad, idea communication, and likelihood of visit to the hospital.

critical

and

evaluative

review

of

appropriate

marketing

literature
Different Phases in History of Marketing According to Tedlow, Richard S. (1997) the history of marketing can be divided into three different phases. The history of marketing will provide an understanding of the business world today and is thus useful in the context of the U.K. Airline Industry and Emirates airlines. First Phase: Phase one is the phase of fragmentation due to the logistics reasons and not for any marketing strategy. This phase which took place before 1880s is known for its high margin and low volume. (The Rise and fall of mass marketing By Richard S. Tedlow, 1997) Second Phase: The second phase is known for the implementation of mass marketing. This, unlike its previous phase, is famous for high volume and a low margin. This phase came into existence because of two predominant reasons the upgradation to newer technologies like trains and the telegraph and several other developments in the sector of technology especially related to

manufacturing. Phase two took place during 1880s to 1950s. Brand marketing and management became important like never before during this period. (The Rise and fall of mass marketing By Richard S. Tedlow, 1997)

Third Phase: The third phase is the phase of segmentation. Innovations which made this phase possible were initiated by advertising through radio and television. Television advertising proved that certain classes of viewers are impressed by distinct kind programs. This made the segmentation possible. Marketers started concentrating on a defined group of potential customers who were grouped according to their age, income, and education, which form the factor named demographic factor or according to their way of leading life and thinking, which form the factor named psychographics factor. Advertising through the process of Image advertising started becoming very famous during this timeframe. High volume and value pricing are two most important characteristics which represent this particular phrase. (The Rise and fall of mass marketing By Richard S. Tedlow, 1997)

Through these timeline the nature of marketing communication has changed drastically. In the beginning only print media and billboards were used to communicate with the existing and potential consumers. With advent of electronic media and very recently internet the whole mode of marketing communication has evolved like never before. We would now summarize different researchers and authors view on marketing campaign. Marketing Campaign The widely accepted definition of marketing campaign amongst the researchers and practitioners is a pre determined and planned series of activities which can be used for making the prospective customers aware of a product or service which has been launched or changed recently. The international body representing advertising agencies, The Institute of Practitioners in Advertising (IPA), has defined a Company
Information Conviction Changing behaviour

Customer
Means communication Message of /
Needs Wishes Expectations

Information, ideas, opinions, attitudes

Figure 1A: A model of communication plan

marketing communication as a way of providing the correct potential customers with the most persuasive possible selling message in a cost effective manner. On the other hand, Kotler and Armstrong have given a different definition. They have said, marketing communication can be of several natures like non-personal presentation and promotion of ideas, goods and services with the media which have got mass reach such as newspapers, magazines, television or radio. (Czinkota,2007) American Professor Terence A. Shimp, defines the concept of communication in marketing as "all elements included in the marketing mix of a mark, serving to facilitate transactions by sharing ideas and consumer brand clients. The author stresses that not only promotional variable allows the transmission of messages to consumers, but also other components of the marketing mix. (Advertising Promotion and Other Aspects of Integrated Marketing Communications By Terence A. Shimp, 2008) The American expert, John J. Burnett, the role of communication in marketing is "to support the marketing plan by sending the promise of marketing and also assist the target audience to understand and trust one who announces specific advantages. (Nonprofit marketing best practices By John J. Burnett, 2007) The use of marketing campaign is twofold. It can be used for acquiring new prospects or potential customers and for retaining and rewarding the loyal and existing customers. 3

(Zeithaml, 1981) The factors which are instrumental in driving the ever evolving importance of a marketing campaign are following: 1. Increased media fragmentation. According to the reports published by Cambridge, Mass-based Forrester Research, the number of TV channels per home increased to 82 from six between 1960 and 2004. On the other hand the numbers of radio stations have increased more than twice during this period. With the advent of internet this fragmentation has become even more. This high amount of fragmentation and clutter in the choice of media are causing severe problems for the companies when they are trying to communicate to the customers. Consumer changes the channels and switch through the advertisements these days more than ever before which has caused the act of catching the attention tougher. (Marketing Strategy and Competitive Positioning By Hooley et al, 2011) 2. Increasing availability of customer data. With different customer relationship management activities in place the data pertaining to the customers are readily available to the companies which has changed the communication activity

drastically(Smith et al, 2004). 3. Short-term thinking. The short term thinking trend has brought a shift from strategies keeping long term interest in mind (e.g. brand advertising) to strategies more focussed on short term boost of sales (e.g. direct mail and sales promotions). 4. A call for more accountability. Advent of different ways to measure effectiveness of any kind of communication strategy has also changed the way communication is done from companys part. (Principles of marketing By Philip Kotler and Gary Armstrong, 2008)

Elements of Marketing Campaign According to Kotler, the main three elements which are instrumental for making a marketing campaign successful are market, message, and timing. (Marketing Management By Philip Kotler, 2008) At the outset the communicator needs to identify the market for which he wants to design his communication. This selected market should be potent enough or should possess ample resources which will help the business to run. A business based on the marketing expertise and the products made by the company are designed in such a way so that it impresses the target market. Hence the target market should be identified at the beginning so that the communication plan can be devised according to it. (Marketing Strategy and Competitive Positioning By Hooley et al, 2011) The second element is the message, which includes different value added propositions for the customers. The message has to be designed in such a way so that it appeals to the target market. Robert Collier described this process as fine tuning the thinking of the company with that of the customer. The company has to understand the customer and his mindset so that it can grasp the needs, problems, fears and desires of the customer and how the companys offering can satiate the target base. (Marketing Management By Philip Kotler, 2008) The third element is the timing of the communication. The timing at which the offering is made can play a very pivotal role. A very well made marketing communication plan can be rendered ineffective if the timing is not correct. A market sometimes passes through phases when it reacts well to some particular products or messages. (Principles of marketing By Philip Kotler and Gary Armstrong, 2008)

Marketing Communications Effect on Consumers Michael L. Ray in his book Advertising and Communication Management has said that generally the credibility of the source of the message the consumers receive are measured on the basis of several factors by them. These factors usually are public relationship and image in front of the mass, reputation in the market, previous years performance by the company, the delivered quality of goods and services of the company, the brand ambassador, initiatives taken for social welfare and the image of the medium.

The understanding of the coded message and the mood in which the target audience is receiving the message are also factors which greatly influence consumer behavioural effect of marketing communication (Dowling et. Al 2007). The comprehension of the message usually depends heavily on the nature of the message, the ease with which the receivers are processing it, the need they feel to process it and the intrinsic traits of the receivers like past experience and learning, attitude, personality, perception, etc. The consumer mood has great effect on the understanding of the message the company intends to send. This mood of the consumers can be altered with the help of different techniques of advertising. (Ray, 2009) Relationship Marketing and Its Importance Due to the focus of marketers and practitioners on the aspect of connecting and building a good relationship with the market the new facet of marketing named relationship marketing has evolved. Morgan and Hunt (1994) have defined Relationship marketing as the marketing activities which are meant for establishing, developing, and maintaining successful relational exchanges. (Hunt, 1994) As we have seen in the first phase of marketing the producer and the consumer were thought to be two different and disjoint entities. But due to today's technological

advancements producers can communicate directly to the large customer base he has (Prasad et. al 2001). The primary objective of the process of relationship marketing is to influence and subsequently involve the customers and incorporate them to the organizations internal stakeholders. This ultimately is a part of the marketing initiatives taken by the firm (McKenna 1991; Shani and Chalasani 1991). Wilson (1995) categorized different variables those affect the relationship of firm with internal and external stakeholders. These variables are Commitment, Trust, Cooperation, Mutual Goals, Interdependence and Power, Performance Satisfaction, Structural Bonds, Comparison Level of

Alternatives, Adaptation, Non-retrievable Investments, Shared Technology, and Social Bonds. (Jayachandran, 2005)

Conclusion
The Success of a product into the market is basically decided by two things, first is Designing the product according to the need of the customer and second being equally important, to communicate the target customer segment of the company in a proper way. Without proper communication between the company and its customers, customers may not get the product not because of they dont like the product but not, because they are not aware of that product. Liking or disliking for a product by a customer though somehow depends upon understanding your customer and then designing the product that can cater their needs but still you cant fully say about liking or disliking about a product by customer, so this is not into the hands of a marketer but the second part that is communicating the customer about the product is into hands of the marketer and they can control the acceptance of a product by customer by using the 360 degree communication approach with the customer segment. Efficient use of the resources as well as the communication tool decides the success of a campaign. 3

Also one very important factor in designing a campaign is first to have a clear idea about your target customer segment so that you dont deviate your message to other audience which is not your target customer segment hence wasting the resources on fruitless things.

References

1. Kotler, P. (2003), Marketing Management, 11th ed., Pearson Prentice-Hall, Upper Saddle River, NJ. 2. Terence A. Shimp ,2005, Advertising Promotion and Other Aspects of Integrated Marketing Communications, pp 78-103. 3. Shani and Chalasani, 2008, Special Events: Inside and Out 4. Michael L. Ray, 2009, Advertising and Communication Management 5. Graham J. Hooley, John A. Saunders, Nigel Piercy, 2011, 4th ed., Marketing Strategy and Competitive Positioning. 6. Adrian Haberberg & Alison Rieple, 2008, Strategic Management: Theory And Application, Oxford University Press, Page 130-137 7. Smith p r, Taylor Jonathan, 2004, 4th edition, marketing communications, Gutenberg press ltd, Malta
8. Czinkota, M & Ronkainen, I 2007, International Marketing, 8th edn, Thomson, Mason.

9. Dowling, G & Uncles, M 1997, 'Do Customer Loyalty Programs Really Work?', Sloan management review, vol. 38, pp. 71-82. 10. Prasad, V, Ramamurthy, K & Naidu, G 2001, 'The Influence of Internet-Marketing Integration on Marketing Competencies and Export Performance', Journal of International Marketing, pp. 82-110. 11. Zeithaml, VA 1981, 'How consumer evaluation processes differ between goods and services', in Donnelly, J.H. and George, W.R. (Eds), Marketing of Services, American Marketing Association, Chicago, IL, pp. 186-90.

12.

Burnett, John J., 2008, Nonprofit marketing best practices , pp 23-29

13. Jayachandran, S, Sharma, S, Kaufman, P & Raman, P 2005, 'The Role of Relational Information Processes and Technology Use in Customer Relationship Management', Journal of Marketing, vol. 69, no. 4, pp. 177-92.