CA106 Marketing Plan Analysis

Useascategoriesthe7ComponentsofanEec5veMarek5ngPlan(See
therstAr5cle)Beintrospec5vewhileworking.Thisisnotallinthe
blanksexercise!
Category
Company A
Comparative Analysis of Marketing Analysis of 3 Firms

Company B
Company C
Illustrate what is said for the category
So what's the plan?

Winchester, Jay
Sales and Marketing Management; Oct 1997; 149, 11; Research Library
pg. 72
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
the
I
We're talking marketing

And if you don't have one, beware
By Jay Winchester -Illustration by Lisa Manning
"~~~f:}~~::' ~~.:~(i;.
\'> VEN THE BEST laid plans sometimes must change. That
#~ true for PowerCerv Corporation. Although business
Was
good in the early 1990s-the Tampa, Florida, soft.,.."-L .....
W~~veloper grew 800 percent in one year-its man~~~ saw the competition encroaching, potentially
st.~ling market share and stunting profit margins.
Wnpany officers quickly developed a new marketing
R~ to guide it through this period. Did it work? Qh, yes.
~(>~~~'s revenues have grown from $5 million to $37
miit'i~:#ihce 1993.
A marketing plan is like a map. It outlines everything a
company needs to know about its business. It defines how
and why the company is in business, what markets are
good targets for its products, and how customers should
be pursued. It even tells management when they've succeeded, when they've fallen short of their goals, and when
it's time to redefine a direction to take advantage of new
markets or fight against dogged competitors. It's an allpurpose document, and every company-large or smallneeds one.
"If your company doesn't have a marketing plan, how
,will you know where you're going?" asks Dr. William
'Crookston, associate professor at the University of
California's Marshall School of Business
fl;wr~~~~;';:'r,:;,:~:::;~:~~"A marketing plan that incorporates solid

~
"'.:."",,"
and sound financial projections helps you define

future."
Still, 'many businesses are put off by the work-intensive
a marketing plan requires-a minimum of 100
y;......'
o
hours, according to Crookston. The time depends on several variables. not the least of which is the research
required: Before attempting to put a marketing plan on
paper, a company has to have a clear vision of its sales and
marketing strategies, an understanding of its market's
activities, the finances required to maintain a successful
presence, and the potential customer base. Another variable is the amount of time needed to actually write the
plan. Like the old rule of writing down personal goals,
putting the marketing plan on paper is critical.
"There's no such thing as an unwritten marketing plan,
because a plan that's not documented is no plan at all,"
Crookston says. "Remember, this plan is the result of an
intensive research-and-development effort to build a tool
for steering the company to success. Keeping it in one's
head [instead of putting it on paper] opens the door to
reactive thinking, which is not the best way to achieve
success. But people work hard to avoid it, particularly
because of the need to commit to financial objectives in
the future."
Many businesspeople find the prospect of financial projections frightening for two reasons: they feel almost contractually bound to achieve those projections; and, they
believe not reaching those numbers means failure.
Crookston doesn't subscribe to either theory. After all, he
says-and as the following examples show-this is a
plan, not a commandment. It's a starting point, and its
results need to be given a patient review with an eye
toward long-term success.
OCTOBER
1997 73
Marketing
PowerCerv used
PowerCerv Corporation:
Re-creating aCompany
a marketing plan to
transform its focus from
services to products.
POWERCERV CORPORATION made all of about $700,000

in 1992. By the end of 1993 revenues had jumped to
$5 million. To say the least, the company was enjoying
success. "We started as a PowerBuilder value-added
reseller (VAR) offering a full line of services, including
training and consulting," designed to enhance PowerBuilder's client-server applications, says Bernie
Borges, vice president of corporate marketing. A small
part of these services included developing custom software applications for a small percentage of its client
base. In 1993 the company launched one of its software
applications, PowerTOOL, a library of technical addons for PowerBuilder, as a separate product that it sold
only to its current customers. "PowerTOOL made us
different from the other VARs," Borges says. It was
PowerCerv's initial taste of the software business and
its profit potential.
By late 1994 PowerCerv faced increasing competition offering similar services at lower prices.
PowerCerv's management concluded that market erosion and, consequently, narrower profit margins, were
inevitable. Its response was to reinvent the company
and its marketing strategy. According to CEO Harold
Ross, the company's original vision to function as a
VAR changed because of the rapid growth of clientserver technology, and because of the initial success of
PowerTOOL. "We weren't building any intrinsic value

in the company, in terms of its intellectual assets," he
says. "We talked to several investment banks in order to
get their perspectives on the situation. The consensus
was that PowerCerv could increase its growth and margin potential by moving into the products business."
PowerCerv's three founders-Ross, President Marc
Fratello, and Chief Technology Officer Roy Crippendecided to abandon the company's traditional role as a
VAR in favor of the evolution into a company featuring
services built around its own software products. This
strategy allowed PowerCerv to differentiate itself from
its competition. Although the software market was as
competitive as the VAR market, the company was confident its products would allow it to maintain healthy
profit margins.
Once the executives decided on the new direction, they held meetings with key employees to
OK, 80 you agree that no business strategy is complete without a marketing
discuss the best way to evolve the company's
pI8n. But what should this magical plan contain? Dr. William Crookston, an
infrastructure and marketing strategies as it
aSsociate professor at the University of Southern California's Marshall
continued
to service its established customer
School of Business Administration, believes a marketing plan incorporates
base,
and
to
quickly create a marketing plan.
CrItical components:
"We couldn't shut down the business to re.EPT STATEMENT The concept statement consists of a single parainvent ourselves," Borges says. "We had to
. . . that defines a company's strategy In five areas: customers and marchange
and grow while we continued to sell the
k8ts. product and service offerings, money, distribution, and management.
existing
services. This process was an evoluMARKETING STRATEGY Choose and develop one of four key strategies:
tion, not a revolution."
1) Product development, marketing a newly designed or reengineered prodPowerCerv's shift in emphasis from being
uct to an already established customer base; 2) market development, selling
service-driven
to being product-driven would
a preexisting product In new markets 3) product penetration, increasing
company
to leverage its expertise in
allow
the
. . . . of an existing product by increasing its sales in an existing market; 4)
delivering services and developing software.
dIWJrsJty, seiling new products in new markets.
Consequently, the marketing plan included the
BACKGROUND ASSESSMENT Review your market, the market's activity,
company's strategy for relaunching PowerTool,
. . costs, technology products, trends, life cycles, and government
and
for buying back the rights to several cusIftVotvMl8t1t within the market.
tom applications PowerCerv had built for its
TACTICAL COMPONENTS Cover the following items in brief subsections:
customers in order to sell those applications to
.sates strategies, advertising and publicity tactics, and sales promotion
new customers.
plans.
The marketing plan also outlined how to
FINANCIAL STATEMENTS Explain your financial objectives, the amount of
quickly create visibility and credibility in the
. . .money required to attain those objectives, and how that money will be used
.... Md c:ontroIIed.
new marketplace once the company relaunched
PowerTOOL, which it did at the end of 1994.
. GROWTH AND CONTINGENCIES Discuss how your company will handle
The strategy included going public (in early
.. ..
, making mention of plans for hiring and expanding.
1995), hiring a public relations agency, and
TIVE SUMMARY WrIte a synopsis of the marketing plan. It's the
exhibiting
at trade shows. Today, the company
last component you write.
Seven Components of an Effective Marketing Plan
14
SALES & MARKETING MANAGEMENT
attends about 20 trade shows a year

that focus on client/server applications.
A secondary part of the plan proposed
how to revamp the company's approach
to offering product seminars for
prospects and customers. The old seminar structure targeted programmers and
developers, people with "build it" attitudes; the new seminars target an audience with a "buy it" mind-set. Also, the
seminars revolve around PowerCerv's
own products, not someone else's. The
revised content of the seminars speaks
to two groups: a functional group, made
up of people from manufacturing, marketing, sales, and finance, who use
PowerCerv products; and a second
group, consisting mainly of information
technology professionals responsible
for evaluating, selecting, and maintaining application solutions.
So far. PowerCerv's marketing plan
has led to surprising success. "We've
achieved many of the goals we set for
ourselves," Borges says. "We've seen
good revenue results, and we've been
accepted in the marketplace." Last
year's S37 million in revenues is a testament to that.
A product
SO great we
want to plug

It In person.
Thermwood Corporation:
Old Industry, New Strategy
in Dale,
Indiana. started out manufacturing computer-controlled (CNC) routers-used
in the woodworking, plastics, aerospace, and defense industries-to customer specifications. Business was
steady until 1994 when discount pricing
started to dominate a highly competitive
market. The company had lost $2 milI ion over the previous 18 months.
'These factors pushed us into making a
radical change," says Ken Susnjara,
Thennwood's CEO and chairman. By
early 1995 management felt it had to
move quickly to save the company.
A new marketing plan was created in
daily meetings over a five-day period.
Although directed by management, the
plan solicited input from the company's
140 employees. Most of the hourly
employees chose to attend the meetings
only if there was a specific issue relating
to them. "Our marketing plan was put
together by people who weren't marketers," Susnjara says.
The costs involved in building the
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1997
75
Marketing
L
custom machines had gotten out

of hand. So in the marketingplan meetings, "we examined
ninety-five percent of what we
built and made the decision to
no longer build it," Susnjara
says. The thinking was that, if
the former customers were
offered substantial savingsoften as high as 30 percent~n
a standard router that met 90
percent of their job requirements, many might change their
requirements in order to reap
the financial benefits. The marketing plan outlined the new
losing customers when
sales strategy and the standard
its new plan dictated a total
product line intended for use in
change in its product line.
the woodworking and plastics
markets (aerospace and defense
markets would be dropped because the company decid- of channels. The personal computer market became the
ed not to participate in the unwieldy and complicated model market of choice. "In the PC market, products
application and review process required by the govern- feature a minimum technical requirement, which
ment). Reps would no longer sell custom orders; instead changes over time," Susnjara says. "Once two comthey were to approach former customers with the pro- panies meet that minimum technical requirement, the
jected savings to entice them into buying.
lowest price wins. We decided to treat our market the
This process ran counter to what reps were used to, same way."
causing some initial anxiety. "I held the aerospace and
Thermwood started by defining the minimum technidefense accounts, which bought a lot of the custom cal requirements for CNC routers, then worked to ensure
machines," says Dennis Palmer, a Thermwood account it could meet those requirements at the lowest price. It
manager. "My job was easy. The customer would send copied the styles used in the advertising and marketing
me a request for a bid, I'd spec the configuration, request literature of successful computer companies such as
a cost estimate from engineering, put a price to it, and Gateway and Dell. The new ads, which were all created
submit the bid. There really wasn't any selling in-house, listed Thermwood's technical features and low
involved."
pricing. It was a shift from the way the rest of its comShortly after Thermwood committed to the new direc- petitors did business. Competitors' ads focused on why
tion, however, Palmer brought in a $2.2 million con- company A was a better choice than company B. In
tract from the Navy for the old custom machines. It comparison, Thermwood's ads stood out, Susnjara says,
was a deal he'd worked on for some time-----{;reating and became an effective lead generation tool.
specs, pricing them, drafting the bid-and one he had
Even so, Thermwood's competitors took the changes
to sacrifice.
in stride, Susnjara says. "Their initial response was a
To ensure the reps success through the transition, collective giggle."
management held daily meetings to review the activity
Only one month after changing direction, Thermwood
of each account. Eventually, reps began to see the rea- showed a profit. In 1996 sales of Thermwood routers
soning behind the changes. "It actually made my job rose to $14 million.
easier than before," Palmer says. "It helped me explain
to customers what we had to offer, and how we could
charge the lowest price."
While Thermwood did lose some customers, its prof- IN 1992 CARAVALI COFFEES INc. was a $3.5 million comits improved because many of the old custom clients did pany counting large department stores and specialty
change their ways. And, the company was able to imple- stores among its clients. But it became apparent to manment standardized production routines, which reduced agement that, because of the rapid expansion of gourmet
coffee into retail shops and regional grocery stores, it
its manufacturing costs.
But the move to a standard line left Thermwood with couldn't sustain long-term growth in the increasingly
a high-tech product in a market where similar, compet- competitive gourmet coffee market. "The handwriting
ing machines could be purchased from several sources. was on the wall," says Greg Forsythe, who joined the
Consequently, a significant part of the marketing plan Kent, Washington, company in 1992 as executive vice
benchmarked the company's marketing strategy president of sales and marketing.
against a product in another highly competitive market
Consequently, Caravali executives decided to change
that features high-tech products sold through a variety the company's target markets. Prime target markets
Thermwood risked
Caravali Coffees: Brewing aNew Market
76
SALES
&
MARKETING MAI\AGEMENT
Marketing
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"This is not a product you can push into
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hotels were looking for ways to
upgrade their own food service categories while generating more revenue.
It was an environment that made
Caravali's products inviting.
Caravali officers decided to target the
food-service market instead of retailers.
"To us, a food-service company is any
business that sells coffee by the cup
instead of by the pound," Forsythe says.
"It plays to our strengths because success in this segment requires that
companies be able to ship product to
multiple locations quickly. It also demands consistency in the product. The
consumer expects his cup of coffee to
taste the same every time he walks into
that establishment, no matter where that
outlet might be." This new market has
also helped Caravali quickly gain brand
exposure over a large geographic
region. Today, Caravali counts Northwest Airlines, Alaskan Airlines, and
Ritz-Carlton among its new customers.
Although Caravali did have a preexisting marketing plan, the company
needed a revised one to infiltrate its new
market. When the time came to document the changes, Forsythe, his sales
team, and Bart Wilson, Caravali's former CEO, took on the project. "We
thought it was important to get input

from our people who are out in the field
talking to the customers," Forsythe says.
As for Wilson, he brought the ability to
enforce the implementation of the new
strategy. His involvement in its development ensured a smooth sale at the executive level.
The team read trade journals covering
the hotel, airline, and restaurant industries, looking for advertisements or articles that made positive mentions of
gourmet coffee. They produced financial forecasts that showed how much
new business was needed to offset losses from the specialty store sectors. And,
they evaluated the support capabilities
of their distribution network. Developing the plan, including discussing and
testing ideas, as well as validating suggested niches and approaches, took
approximately four months; the actual
writing took only a week.
The benefit of documenting the plan
was threefold: first, it functioned as a
benchmark against which the company
measured its progress; second, it helped
Caravali's financial backers understand
why the customer base was shifting;
and third, it helped explain the marketing shift to Caravali's board of directors.
And the results of using a marketing
plan have made the team's hard work
worthwhile: Caravali enjoyed about
$11 million in revenues last year and will
continue to use and update its plan to stay
competitive. "We review it annually,"
Forsythe says. "It helps us understand if
the niche is still right for us. It also
shows us where enhancements will help
us maintain our competitive edge." 0
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Case study
Strategic marketing planning for a supplier of

liquid food packaging products in Cyprus
Demetris Vrontis
Marketing Department, School of Business, Intercollege, Nicosia, Cyprus
Harry Kogetsidis
Department of Management and MIS, Intercollege, Nicosia, Cyprus, and
Andreas Stavrou
Henley Management College, Henley-on-Thames, UK
Abstract
Purpose This paper aims to provide a strategic review of the marketing function for a Cypriot company operating in the liquid food packaging
industry (for reasons of confidentiality the name of the company is withheld). The paper focuses on the dairy market, where the company does not have
a very strong market position, and illustrates how through an analysis of the environment (internal and external audit) the companys strategic direction
and marketing plan can be designed more effectively.
Design/methodology/approach The paper adopts a case study approach with primary research through in-depth interviews with managers of the
company under investigation.
Findings The paper concludes that, by undertaking to rectify its weak marketing function, the company can develop capabilities that will lead to a
fully integrated relationship with all its customers and significantly improve its market share.
Originality/value The value of the paper lies in providing a new case study that highlights the importance of making the marketing function a more
market/consumer oriented process that bridges the gap between strategic change and industrial complexity and instability.
Keywords Business environment, Marketing planning, Management strategy, Strategic marketing, Dairy products, Cyprus
Paper type Case study
Introduction
Marketing planning
The aim of this paper is to provide a strategic review of the

marketing function for a Cypriot company operating in the
liquid food packaging industry. The company was established
in the early 1980s and the purpose of its business is to provide
marketing and after-sales services of its products to local
liquid food manufacturers in Cyprus. As the company
promotes and sells carton packaging and filling equipment
for liquid food, its success depends partially on how well it
provides its services. In this context, marketing activities are
viewed as an important element in achieving the objectives of
the company.
The development of this case is based on a number of
assumptions, which are summarised in Table I.
According to Fifield and Gilligan (2000), marketing planning

is a process of:
.
analysing environmental, competitive and business factors
affecting business units and forecasting future trends in
business areas of interest to the enterprise;
.
participating in setting business objectives and
formulating corporate and business unit strategy;
.
selecting target market strategies for the product-markets
in each business unit;
.
establishing marketing objectives; and
.
developing, implementing and managing program
positioning strategies for meeting target market needs.
This process is illustrated in Figure 1.
Situation analysis environmental scanning

Situation analysis is the first and one of the most important
stages in marketing planning. This is because a companys
strategic fit with its environment is central to its strategy.
Further, effective strategies cannot be developed without
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0885-8624.htm
Journal of Business & Industrial Marketing

21/4 (2006) 250 261
q Emerald Group Publishing Limited [ISSN 0885-8624]
[DOI 10.1108/08858620610672623]
A teaching note is available from Dr Vrontis Demetris at:

vrontis.d@intercollege.ac.cy
250
Strategic marketing planning
Demetris Vrontis et al.
Volume 21 Number 4 2006 250 261
Table I Assumptions made

Environment
Assumption(s)
Business segment
Product lifecycle of milk will continue to grow over the short to medium term (1-5 years)
Adjacent business in the food sector will jump onto the value added product segment
No buy-out of the company by another dairy manufacturer with competitive/alternative packaging
Spending power of Cypriots will continue
Increasing awareness of health and fitness issues
Euro rate will remain stable against the CYP
Political solution to the Cyprus problem: the North will not grow at the expense of the South
Competitors
Social
Economic and trade
Political
Figure 1 The marketing plan process
Figure 2 Situation analysis
environmental constraints, such as the structure of the

market, suppliers, customers, trends of the market and
competition (Vignali et al., 2003).
The environment for companies operating in the liquid
food industry is constantly changing. Therefore, it becomes
critically important to identify opportunities and threats when
formulating strategy for the purpose of gaining competitive
advantage.
firstly analysing the environment in which the company

operates (Vignali et al., 2003, p. 15). It is suggested that
environmental scanning of both the external and internal
environments is a necessary prerequisite stage to strategic
formulation (Vignali and Vrontis, 2004). The factors that
should be analysed in an internal and external audit are
illustrated in Figure 2.
Microenvironment political, economic, social,

technological (PEST) analysis
Political factors include:
.
new laws to promote an open-market economy that
encourages competition;
.
the accession of Cyprus to the European Union in May
2004 aligned many laws with those of the EU; and
.
a possible political solution to the division of Cyprus will
enable free movement of people and goods and thus
increase trade.
External analysis
The external environment is made up of forces over which a
company has limited, if any, control and covers both the
macro-environment and the micro-environment. The macroenvironment consists of forces such as social, legal, economic,
political and technological (SLEPT) factors within this are
included factors such as demographics, green issues and
larger societal forces. The micro-environment includes
As regards economic factors, Cyprus is considered an

industrialised economy with GDP growth (see Table II).
251
Volume 21 Number 4 2006 250 261
consumption of 42 litres, compared to an average of 63

litres per capita in Greece, 96 litres per capita in Portugal, and
115 litres per capita in Spain. The countrys entry into the
European Union and the changing lifestyle of Cypriots
indicate an increase in the consumption of milk drinks,
possibly to the level of other Western European nations.
Table II GDP growth (millions of CYP)
GDP (at constant prices)

Rate of growth (per cent)
1999
2000
2001
2002
4,601
5.0
4,838
5.2
5,039
4.1
5,151
2.2
Source: Hellenic Bank (2002)
Dairy industry players (customer and prospects)

The Cypriot dairy industry is dominated by three large
manufacturers of dairy products. Table V shows the products
offered by the three companies (for reasons of confidentiality,
the names of the three dairies have been withheld). As can be
seen in Table V, the three players operating in the dairy
industry have focused on short life products, mainly in family
packaging (one-litre size). The competition in this market
segment is quite fierce. In contrast, the portion pack segment
has been left with only a few product offerings (mainly
flavoured milk).
Social factors include:

.
increasing awareness of health and fitness issues;
.
a change in legislation to increase child allowances (see
Table III);
.
the birth rate has been falling steadily in the last 15 years;
and
.
increased awareness of environmental issues will support
the carton against less environmentally friendly packages,
such as plastic, glass and cans.
Technological factors include:
.
information technology continues to become cheaper and
has more practical applications; and
.
the internet is becoming accessible to more Cypriot
households.
Market share total revenue

Table VI shows how the market share of the three dairies has
changed between 2002 and 2004. From Table VI, we can
assume that the market is going through significant
competitive change despite the oligopolistic characteristics
of the industry. Considering that competition is fierce in the
family pack market, the carton is facing strong pressure from
the plastic bottle. Driving plastic bottle growth is its recent
launch (in 2001), its convenience of opening and its
differentiating characteristics compared to the long
established carton.
Market trends and dominant market segments of the

industry
The Cypriot consumer is turning away from less healthy
drinks, such as beer and carbonated soft drinks, and towards
drinks that are perceived to be more healthy, such as milk,
juice and water. This trend supports the increasing health and
fitness awareness of Cypriots identified in our PEST analysis.
The dominant market segments in the liquid food industry in
Cyprus are shown in Table IV.
The dairy market
The total dairy market for liquid milk in Cyprus is
approximately 65 million litres with a per capita
Table V Competitors in the Cypriot dairy industry (2003)
Table III Child allowance (effective 2003; in CYP)
Fresh pasteurised white milk, full

fat
Fresh pasteurised white milk,
semi-skimmed
skimmed
skimmed, enriched with calcium
Lactose reduced
Goats milk
Fresh pasteurised post-flavoured
milk
Chocholate milk
Banana milk
One child
Two children
Three children
Four children
Five children
Shelf life Dairy Dairy Dairy

(days)
1
2
3
200
400
1,200
1,600
2,000
Note: Prior to 2003, only families with four children and more received child
allowance equal to CYP 200 per child
Table IV Beverage split (million litres)

Description
Juice/soft drinks/nectarsa
Milk/dairy based drinksa
Bottled water
Beer
Soft drinks (carbonated)
Coffee drinks
2001
2002
2003
30
61
42
39
56
6
31
63
45
41
55
7
32
65
49
40
54
8
4
4
4
4
60
60
Table VI Market share (per cent) of the three dairies
Dairy 1
Dairy 2
Dairy 3
Others
Source: RAI Consulting Services (2003)

Note: a The company investigated in this case is active in these segments
only
252
2002
2003
2004
27
52
20
1
26
45
27
2
23
48
27
2
Volume 21 Number 4 2006 250 261
The companys competitors

The battle to capture market share is between three players
(the names of the companies have been withheld for reasons
of confidentiality): the company under investigation (offering
the products of its corporate parent) and Competitor 1, both
of which supply cartons, and Competitor 2, which supplies
plastic bottles. Table VII compares the global turnover and
operating profits of the three companies over the period 20002001. The companys corporate parent is one of the biggest
companies competing in the juice and milk markets in
Cyprus.
of a local office have raised barriers to entry. The threat is

considered low at present.
Industry rivalry
Rivalry is considered medium because the overall market is
growing at a pace that means focus is on gaining new market
share rather than taking market share from competitors.
However, when the life cycle of white milk products reaches
the maturity stage, competition will intensify. For Dairy 1, the
customer of the company investigated in this paper, industry
rivalry is fierce in the litre package size.
Suppliers
The company under investigation gets its supplies from its
corporate parent. The local company has no influence or
negotiating power on purchases as these are set centrally
irrespective of local conditions. Therefore, the strength of the
supplier is considered high and it is anticipated that it will
remain so in the future.
Porters five forces

It is now important to identify the competitive forces for the
company through a structural analysis of the industry. This
can be illustrated through Porters (1985) five competitive
forces illustrated in Figure 3.
Threat of new entrants
For the moment, the relatively small size of the milk market as
compared to other European countries and the establishment
Substitutes
The plastic bottle is the main substitute to the carton in the
milk beverage market. The ability to see the product and the
convenience offered has gained favour with many consumers.
However, with environmental issues gaining in importance
and the difficulty in recycling plastic, this threat may
deteriorate in the future.
Table VII 8 The companys competitors

2001
2000
Corporate parent: based in Sweden/Switzerland

Turnover (e, millions)
7,650
7,505
5
The company investigated in this paper is the local sales office and
supplies Dairy 1
Competitor 1: based in Norway
528
505
Operating profit
34
2 14
No sales or support office in Cyprus; supplies Dairy 2
Competitor 2: based in France
933
1,025
No sales and support office located in Cyprus, but there is a
representative
Customers
With only one customer in the dairy industry buying cartons
from the company investigated in this paper, high switching
costs have created a lock-in situation. This will remain the
same over the next four to six years, until the equipment is
fully depreciated.
Currently, the overall market attractiveness is rated as
medium, but it is anticipated that this trend will move towards
medium/high in the future.
Internal analysis
29
The internal audit examines the companys own resources

and supplies suggestions as to the companys strengths and
weaknesses (Vrontis and Vignali, 1999, p. 394). Internal
considerations are mainly controllable by the company and
therefore companies should do their utmost to avoid any
problems arriving from them. It is evidently proven that
product development and strategic formation are based on the
internal organisational capabilities. Internal audit examines
the companys own resources and supplies suggestions as to
its strengths and weaknesses.
Figure 3 Five forces model
The relationship between the company and Dairy 1

The company investigated in the paper enjoys a good
relationship with Dairy 1, trying at the same time to
maintain high satisfaction and loyalty levels. This has mainly
been achieved by the use of sales/technical people, who have
over the years aimed to build and develop a good relationship.
The companys relationship with Dairy 1 is illustrated in
Figure 4. The aim of the company is to maintain this apostle/
loyalist position in the future.
In relation to McDonald et al.s (2000) model (see
Figure 5), since 1969 the relationship has progressed from
the basic stage to the cooperative stage and today comfortably
sits in the interdependence stage. The characteristics of the
relationship at this stage are as follows:
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Volume 21 Number 4 2006 250 261
Figure 4 Level of customer loyalty and satisfaction
Within the company, there is a tendency not to store

marketing information in any database or file. As a result, the
managing of marketing information is not shared, which can
cause frustration.
Package portfolio portion pack size
Figure 6 illustrates the companys main package portfolio for
portion-size packages.
Product life cycle (PLC) analysis
At this stage it is useful to examine the product life cycle
(PLC) of the companys product portfolio. This is illustrated
in Figure 7. Although it is very difficult to predict the length
of each stage of the PLC, what is clear is that the four
products are at different stages, with one being at the stage of
decline (Product D), one at the stage of maturity (Product B),
one at the stage of growth (Product A), and one just being
introduced (Product C).
The Boston portfolio matrix (BCG): portion packs
Following our PLC analysis we can apply the BCG matrix to
examine the range of the companys products portfolio against
segment growth, segment volume and the relative market
share of the company in the packaging material segment
(relative to the nearest competitor). The different products
and their position on the BCG matrix are shown in Figure 8.
Figure 5 Collaboration and relationship
Map to market
Figure 9 is developed to show the product route to market. At
present, the marketing activities of the company stop at the
producers.
SWOT analysis
.
.
.
.
.
Deriving from the internal and external environmental

scanning, the company should highly consider the
development of the strengths, weaknesses, opportunities and
threats (SWOT) analysis. As can be seen in Vrontis (1999),
this is vital if companies want to capitalise on their strengths,
minimise any weaknesses, exploit market opportunities as
they arise and avoid, as far as possible, any threats.
Further, it is advisable to the company to utilise the SWOT
analysis to its benefit. Marketers should convert weaknesses
into strengths, threats into opportunities, and understand that
trust from top management;

trust between technical and sales departments;
partnership and cooperation instead of a supplier/buyer
relationship;
mutual dependence and satisfaction; and
a high level of information exchange.
Marketing mix
Given the small size of the company and the small number of
employees, little attention is paid to this function, which can
be considered a serious weakness. The market manager makes
all marketing decisions on an ad hoc basis. In terms of the
seven Ps, and considering that the company provides a service
to its customer(s), the following applies:
.
product developed at corporate level, quality offered is
considered to be very high;
.
price Set at corporate level and applies to all European
countries;
.
place dairy producers plant;
.
promotion very limited promotional techniques, high
use of brochures; and
.
people market manager provides all the necessary
marketing information obtained through the companys
intranet, staff are very professional and customer-centric,
regular contacts and visits with tangible evidence support
professionalism.
Figure 6 Portion package portfolio matrix
254
Volume 21 Number 4 2006 250 261
Figure 7 Product lifecycle of the four products
Figure 8 Boston Consulting Group matrix: portion packs
Figure 10 SWOT analysis
Figure 9 The companys route to market
working much closer with its customer in the dairy market.

Achieving this, means intergrating elements of its value chain
activities, such as marketing, with those of the customer in an
explicit process. A better understanding of down stream
activities in the value chain will allow, through its customer, to
motivate changes in the entire value chain.
To avoid increasing competition from plastic bottles and
other carton suppliers, the company needs to exploit the
environmental friendliness of the carton and link this to
consumer trends in health and fitness needs of consumers.
strengths are only meaningful when used to capitalise upon

opportunities. This is illustrated in Figure 10.
On the balance of issues, the companys strengths outweigh
its weaknesses and can take advantage of the opportunities in
the market whislt avoiding the threats to it. To achieve this,
the company needs to gain valuable marketing experience by
255
Volume 21 Number 4 2006 250 261
This can be done by focusing on the portion package by

offering the consumer value added products.
Although the potential increase in the birth rate will lead to an
overall increase in milk consumption, its impact on the industry
will not be felt for at least two to three years, when children start
to consume fresh milk as opposed to powdered milk.
on the markets in which the organisation will operate, the type

of products/services it will offer and the basis of the
competitive stance. Marketing strategies are the means by
which objectives will be achieved. They reflect the companys
best opinion as to how it can most profitably apply its skills
and resources in the marketplace and they are inevitably
broad in scope.
The Ansoff matrix (see Figure 11) helps to identify the
companys product and market growth strategy. The company
is looking to grow through market penetration, i.e. to
expand sales with existing packaging solutions for value
added liquid foods in the dairy market, thereby taking
advantage of the increasing awarness of health and social
issues identified in the PEST analysis. Market penetration
carries the lowest risk for the company, as the focus in on
current products in current markets, where knowledge and
experience is the highest. But which product portfolio is
setting the optimal option for the company?
In order to target the value added milk segment in
portion pakcages the company will need to offer a premium
package and, according to the package portfolio analysis, this
means promoting Product As package, which is the
companys premium portion package. Further investment
should take place in Product C as well. Investment for both
products (A and C) should arrive from profits made by
Product B, which is currently a very profitable cash cow. It
follows from the BCG matrix examined above (see Figure 8)
that an opportunity exists to move Products A and C from the
question mark quadrant through the star in the short term
and eventually to the cash cow quadrant in the medium term.
According to Porters three generic strategies model (see
Figure 12), the company currently pursues a broad
differentiating strategy, where Product Bs packages achieve
superior value to the market as a whole. By promoting
Business objectives
The business objectives set by the company are as follows:
.
to grow packaging material by 15 per cent in two years;
and
.
to score a 4.5 in the customer satisfaction (CS)
programme in 2004 and 4.7 in 2005, where 1 is
defector/terrorist and 5 is apostle/loyal (see Figure 4).
Further information on the companys customer satisfaction
programme for 2003 follows in the next section.
Customer Satisfaction (CS) programme
Customer Satisfaction is a programmme initiated by the
companys corporate parent in order to determine how
satisfied customers are with the companys products and
services. It is implemented in all European market companies.
Selected customers are chosen for the programme and
interviews with five or six top/middle managers are
undertaken by independent consultants. Each manager
interview will score from 1 to 5 (with 1 being the lowest
and 5 being the highest scores) in the business areas shown in
Table VIII.
Marketing objectives
The marketing objectives set by the company are as follows:
.
to introduce one premium portion package in 2004;
.
to increase sales of portion packages by 20 per cent over
two years; and
.
to score at least 4.5 and 4.7 in the marketing support
activity on the customer satisfaction programme in 2004
and 2005, respectively.
Figure 11 Ansoff product/market matrix
Marketing strategy
Marketing strategy is the broad statement of the way in which
the organisation sets out to achieve its objectives and to drive
its tactics. Included within this would be a series of decisions
Table VIII Customer satisfaction
Business area
Customer servicea
Marketing support activitiesa
Pre-order to billing activities
Lead time
Operational efficiency
Technical support
Innovation of products
System value for money
Environment
Strategic alignmenta
Average score
Figure 12 The three generic strategies
Score in 2003
4.3
4.1
4.5
4.1
4.0
4.6
4.6
4.0
4.0
3.9
4.2
Note: a Impact of marketing activities
256
Volume 21 Number 4 2006 250 261
Product As package with its high perceived value by

consumers, the company will be able to pursue a focused
differentiating strategy allowing it to minimise its risk of
being overdependent on Product B packages.
teenagers/youngsters (young and dynamic and most

physically active).
These target groups are the most likely to support what is

possibly a completely new product concept for Cyprus,
designed to fit with their lifestyles and needs.
Looking at the target groups behaviour from a theoretical
point of view and according to Maslows hierarchy of needs
model, Cypriot consumers are looking more and more to
statisfy their social and individual needs.
Segmentation and the companys segmentation model

It is discussed that a potential growth segment would be an
enriched milk-based product for the health and fitness
consumer. The primary objective of the segmentaiton model
shown in Figure 13 is to help the identification of the
companys target groups. The model is divided into four
primary target groups and three basic milk types.
From the above segmentation model, consumption of milk
increases at the children stage but as children get older, their
consumption declines. One major reason for this is that there
are a wide variety of alternative drinks, such as Coca Cola,
juice, water, etc. The company investigated in this paper aims
to offer an alternative to these drinks that will be:
.
milk-based but with added juice (a new concept for
Cyprus);
.
without gas;
.
nutritional;
.
enriched; and
.
convenient.
Tactics
The identification of the market segment and target groups
implies that the company will need to enchance its current
relationship with Dairy 1 to the highest level of cooperation
and trust. Therefore it will need to move up from its current
interdependent stage on McDonald et al.s (2000) model to
the fully integrated stage.
In addition to the services offered at the current stage, the
company should pay particular emphasis to the following
aspects:
.
more focus on explicit marketing as a service;
.
quick delivery of marketing plans;
.
support the customer in implementation and control; and
.
marketing training.
In other words, the company should aim to move the

consumption line of milk upwards to a higher level.
These additional services will help to reinforce to the

customer the high level of profesionalism and commitment
there is for their success.
The marketing mix/tactics are developed for the main
benefit of Dairy 1 and efforts have been made to improve the
marketing service. The basis for its formulation is derived
from the companys SWOT analysis, its objectives and its
Market targeting
A systematic approach to evaluating the four target goups
identified in the segmentation model can be seen in Table IX.
From our analysis the most attractive target groups are:
.
young adults (most health conscious); and
Figure 13 Segmentation model
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Volume 21 Number 4 2006 250 261
Table IX Target group selection matrix

Factor
Health conscious
Dynamic/fit
Price sensitive
Convenience
Environmental
Weight
Children
35
25
20
15
5
100
3
2
0
3
0
Rating (1 to 10)
Young teens
Adults
5
9
8
8
2
8
8
8
9
5
Elders
Children
5
3
2
3
5
105
50
0
45
0
200
Total 5 W 3 R
Young teens
Adults
175
225
160
120
10
690
280
200
160
135
25
800
Elders
175
75
40
45
25
360
Although Dairy 1 can use its established brand to signal

confidence in consumers for the launching of this product,
there is a need to position the product more clearly in the
minds of the companys target groups. Therefore, the
recommended strategy here would be to introduce a subbrand with clear links to the core brand as a way of
differentiating Dairy 1s product portfolio. In time, all the
elements of the marketing mix will work together in a
coherent pattern to create its own brand equity and identity.
two-year period strategy. It is suggested that a concentrated

targeting strategy is followed, where one marketing mix is
developed and aimed at two target groups/segments, as
identified in Table IX.
Product profile
Below is a suggested profile for a value added product that
could be suited to Dairy 1s target consumers. However, this
needs to be validated through consumer tests.
(1) Product description and ingredients:
.
milk and juice blend enriched with calcium and
vitamins;
.
light but pleasant flavour;
.
light colour;
.
good taste and after taste; and
.
not too sweet.
(2) Positioning:
.
new drink generation (breaking new ground);
.
new sub-brand; and
.
modern, healthy and convenient alternative.
(3) Value proposition:
.
trendy;
.
rebuilds energy;
.
healthy; and
.
choice of flavours (after first season).
(4) Consumption occasion:
.
during hot days (rehydration, product with 75 per
cent water content);
.
during or after sport activities; and
.
mid-morning pick-up.
(5) Packaging:
.
new modern shape;
.
easy opening and straw for convenience; and
.
environmentally friendly.
Promotion
The development of a sub-brand will require individualised
promotion to position and strengthen it. To achieve this,
Dairy 1 will need to part with the generic advertising/
promotion campaigns of the past and undertake to
communicate the need for the product as follows:
.
healthy start to every day;
.
convenience, easy to open and quick to consume;
.
understand the health benefit; and
.
trust the brand.
To be successful all elements of the communication mix will
need to focus on pushing buyers through the following AIDA
stages:
.
awareness;
.
interest;
.
desire; and
.
action.
In order to achieve this, the company must concentrate on the
following areas:
.
advertising television commercials, cinema spots,
newspapers/recipies and health guides, teenager/adult
magazines, bill boards, leaflets;
.
sales promotion key supermarket sampling, point of
sale-material;
.
public relations sponsoring of at least 2-3 local sports
events, donations to charities; and
.
organisations all Dairy 1 staff to receive samples and
promotion cards to hand out to relatives and friends.
The companys target groups are already subconciously aware

of milk being one of the most important sources of calcium.
So, through the company adding more calcium to its
products, consumers will be able to draw the conclusion
that the new products offered are even healthier than plain
white milk.
Regarding the other ingredients (i.e. juice and vitamins),
these are easily understood and easy to relate to for the
consumer. There are no negative associations attached to
either, as consumers generally know that juice and vitamins
are good for you.
Overall, all the ingredients in this product are understood
by consumers and do not need any specific educational
campaign, therefore reducing the risk of non-acceptance.
Advertising and product sampling are considered to be very

effective in going through the AIDA stages.
Pricing
Dairy 1s pricing strategy will need to be consistent with its
product profile and value propostion. Figure 14 shows the
price strategy recommended a premium price strategy.
This strategy is based on what the market can accept, rather
than on a simplistic cost-plus basis. Figure 15 indicates the
retail price landscape of most of the products that can be
considered as alternative choices in Cyprus. It is
258
Volume 21 Number 4 2006 250 261
Figure 14 Price strategy
To reach the target group, Dairy 1 will need to strengthen its

distribution reach to more kiosks and impulse outlets and add
the following impulse outlets:
.
sports centres; and
.
health and fitness gyms.
Implementation and control
The total investment to implement the proposed budget plan
is CYP 1,345,000. The proposed budget plan covers the two
years of the companys marketing plan. Full details are shown
in Table X. It is also suggested that the marketing plan is run
as a project by Dairy 1, with a suggested structure as shown in
Figure 16. The steering committee would include high-level
executives who will oversee the project. It would be necessary
to have a project sponsor from the steering committee to
ensure commitment across the company, with the managing
director at Dairy 1 being a good choice. The project manager
would be the key stakeholder, and it is suggested to be the
marketing manager from Dairy 1. Finally, the project team
would consist of a small group of other key stakeholders that
would be required to implement the project.
The project manager would need to monitor the following
key success factors:
.
consistent marketing mix;
.
good co-operation and communications between key
stakeholders;
.
buy-in of key stakeholders; and
.
project sponsor commitment.
recommended that a selling price of CYP 0.42 (supermarket

price) is charged.
Place
Dairy 1 covers the following points of sale:
.
100 per cent of large supermarkets;
.
90 per cent of small/medium supermarkets;
.
70 per cent of small village shops;
.
95 per cent of bakeries; and
.
55 per cent of impuse outlets, such as kiosks.
The success of the launch might fall short of the expected

results for many reasons, indicating that contingencies would
Figure 15 Various drink portion pack prices in 2003
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Volume 21 Number 4 2006 250 261
Table X Budget plan

Activity
Company research pre-launch
Product development
Advertising
Sales promotion
Public relations
Product/ingredients
Consumer feed back
Retail discounts
Product waste
Distribution
Extra ordinary costs
Total cost
Responsibility
a
Marketing manager
Quality control managera
Outside agency
Sales departmenta
Marketing managera
Quality control managera
Research company
Salesa
Productiona
Salesa
Marketing managera
Year 1
Year 2
Total
10,000
15,000
250,000
10,000
5,000
300,000
5,000
40,000
8,000
100,000
25,000
768,000
3,000
5,000
150,000
10,000
5,000
250,000
5,000
40,000
9,000
75,000
25,000
577,000
13,000
20,000
400,000
20,000
10,000
550,000
10,000
80,000
17,000
175,000
50,000
1,345,000
Note: a Dairy 1 staff responsible
By undertaking to rectify its weak marketing function,

through the delivery of a marketing plan, the company can
develop capabilities that will lead to a fully integrated
relationship with all its customers. This can lead to the
maximisation of its potential to take advantage of the
opportunites in the external environment whilst minimising
the threats it faces.
Understanding of the customer value chain and conscious
awarness of consumer trends will enable the company to:
.
have closer co-operation with customers on marketing
issues;
.
save time and costs, thus enabling the company to
motivate changes in the value chain;
.
increase the companys service level and its customer
satisfaction score while raising barriers to entry to
competitors; and
.
turn the marketing function within the company from a
implicit to an explicit process.
Figure 16 Project structure
The companys marketing function would then become a

more market/consumer orientation process than before and
hereafter will contribute to bridging the gap between strategic
change and industrial complexity and instability.
need to be decided. Some of these reasons, together with

possible corrective actions, are shown in Table XI.
Application questions
Conclusion
This paper has focused on conducting a strategic review of the

marketing function for a Cypriot company operating in the
liquid food packaging industry and has shown that the
company can improve significantly on its current 23 per cent
market share by concentrating on its marketing function.
Assess and evaluate the companys strategic direction.

What are your strategic recommendations in order for the
company to achieve its objectives and be more successful
and profitable in the future?
Prepare a proposal illustrating how the company should
try to avoid threats in the industry and take advantage of
Table XI Possible problems affecting the new launch

Reason
Corrective action
Product taste is disliked

Timing of communication/launch inadequate
Competitors launch before
Product is not available
No repeat purchase
Despite corrections, sales do not improve
Modify product taste after research or re-enter with new flavours

Reassess time plan and re-launch
Review and possibly increase promotion activities
Inadequate supervision of network supply during launch. Improve availability
Find out why through consumer feedback research and revise product strategy
Kill the product
260
.
.
Volume 21 Number 4 2006 250 261
University (MMU), a PGCE (HE) from MMU, a VTC from

Henley Management College, an MBA (Distinction) from the
University of Hull and a PhD in International Marketing from
MMU. From 1997 to 2003 he worked at the Manchester
Metropolitan University Business School (MMUBS) in the
UK, where he led and directed two of the Universitys
postgraduate programmes. Currently, Demetris is the Head of
Marketing Department at Intercollege University in Cyprus
and Director of the Institute for Retail Studies. Demetris is a
founder member of CIRCLE the Centre for International
Research for Consumers and Location and their
Environments (a strategic alliance made by seven
Universities from different countries). The aim of the
alliance is for its members to collaborate and cooperate in
publications and research grants, undertake research and
provide consultation to a number of national and
international companies in both consumer and trade
markets. Other activities include being an external examiner
and moderator for Nottingham Trent University (in its
cooperation with a number of Greek Business Schools in
Athens, Thessalonica and Heraklion) and a visiting professor
at a number of universities around the world. Currently he is
an associated faculty for Henley Management College, a
Visiting Professor for Vorarlberg University in Austria
(Masters level) and a Visiting Fellow at Leeds Metropolitan
University in the UK. Demetris teaches marketing and
international marketing at both undergraduate and
postgraduate level and supervises undergraduate and
postgraduate research students, both in Cyprus and abroad.
His prime research interest is on international marketing
planning and marketing strategy, areas that he has published
widely on in refereed journal articles and presented papers to
conferences around the world. He is also the author of seven
books in international/global marketing and strategic
marketing planning and the editor of the EuroMed Journal of
Business (EMJB).
Harry Kogetsidis was a Lecturer in Business Systems at the
University of Luton in the UK between 1994 and 2002. In
2002 he joined Intercollege University in Cyprus, where he is
an Assistant Professor at the Department of Management and
MIS. His prime teaching and research interests are in
management and business forecasting. Harry has written and
delivered forecasting courses at both undergraduate and
postgraduate level, trained UK managers in forecasting
methods and taught in a number of MBA programmes in
Europe. His interests also include developing distance
learning material on forecasting. He has published a
number of papers on management and management science
in international journals and has presented his work in
conferences around the world. Harry is a member of the
International Institute of Forecasters and of the British
Operational Research Society.
Andrew Stavrou is an MBA Student at Henley
Management College, Henley-on-Thames, UK.
market opportunities. Your response should be given on a

tactical level (marketing mix elements).
Design a detailed promotional approach for the company.
A clear strong brand positioning creates strong customer
loyalty and a clear differentiated position in the market
segment. What issues should the company consider when
developing a positioning strategy for the brand whilst
trying to grow in the market?
The company faces many challenges in the market
environment. Identify and discuss the marketing
concepts, tools and issues it will need to use to address
the end user segment and develop itself in the market
place.
References
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Fifield, P. and Gilligan, C. (2000), Strategic Marketing
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York, NY.
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foreign beer markets, International Marketing Review,
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About the authors

Demetris Vrontis studied in the UK and obtained a BSc
(Hons) degree in Business from the Manchester Metropolitan
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261
CASESTUDY
ABreast Care Center Marketing Plan

By Andrea Eliscu
he folloWIng case Illustrates an

approach that might be taken In
marketmg specialized women's
health semce. ThIs presentation IS based
on material ongInally published in ReadySet-Markell: A ComprehenSive Guide to
Marketingyour PhYSician Practice in the

New Millennium. '*
In add ILIOn to effiCIent, effective, nUTtunng care, Ihe goal of The Breast Care
Center IS to prQ\ode "one-stop shopping"
for women, offenng comprehensive services under one roof. ThIS pracllce
believes women should not have to wait
up La three weeks to gel answers after
finding a lump In a breast or having an
abnormal mammogram. Therefore, they
have deSigned a system where women
BACKGROUND
The Breast Care Center 15 a new, subspecIalty medIcal practice formed by two
female physlcl3n5-{)ne a surgeon and
the Olher a radIOlogist. The Center was
established LO meet the breast care needs
of women residmg to a metropolitan city
In Flonda, semng a large surroundIng

population. lt is the only female two-speCialty partnershIp In the area offenng
both dIagnostic testIng and breast surgery
In one practice. ThiS team approach was
deSIgned to offer patients the conve-
mence of comprehensive on-sne evaluation of breast problems-Including stateof-the-art diagnostic ImagIng eqUIpment,
surgical consultative serYlces, and sophisticated follow-up-In a canng, compasSIOnate atmosphere.
Breast care IS the consummg passion
of this practice and all effort is dedIcated
to the evaluation, diagnOSIs, and treatment of breast dlscase. Center physicians
have made a commItment to provide
don't have to wait-test results are provided in two to three days If not sooner.
OVERVIEW
MedIcal Markwng Inc. (MM\), based
m Orlando, was engaged by The Breast
Care Center to assist In the development
of a strategic marketing plan. The markcung plan outhnes the recommenda-
tions beheved to be necessary for POSIlIOnIng The Breast Care Center to achieve
Its goals Input from Center staff and
MMI knowledge, expenence, and expertise proVIded the basIS for analyzmg the
threats and opportunities m the current
enVlronment as well as the Cemer's speCific strengths and weaknesses.
The follo\Vlng recommendations were
made by MMI to help the practice maxImize the advantages thaL The Breast Care
Center has to offer, based on today's
health care situation as il eXIsts 10 ItS
market area. It should be noted that no
in-depth market research has been con-
ducted to determme speCIfic demographics and market potential. Also, this plan
includes only those strategies Ihat would
be considered for Phase [ of the marketing plan. Plannmg is an on-gomg process
besl possible outcomes.
38
FAll2000
SITUATION ANALYSIS
The Breast Care Center is a relatively
new practice and limited research has
been conducted to date, Ihus, the situation anal)'sls will of necessity be brief. A
threats, and opponunIlics as well as other -
high-quality climcal breast care, as well
this approach can patients achieve the
mme dlreclion from there.
list of perceived strengths, weaknesses,
as to provide the sensillvny and emo-
tional support that many women need.

The staff is convinced thai only through
(hal must be Vlewed as an Investmem In

the practice. Thus, the plan wtll be
reVIewed In SIX to nme months to deter-
pertinent mfOm13tlOn
has already been
compiled from quesllonnalre responses
obtamed from practice personnel. A hst

of petcollal Breast Care Center compelltors-mcludmg general surgeons,
OBiGYNs, and Imagmg centers-has
been compIled The referrmg ph)'slclan
siluation also has been revIewed wnh
suggestlons for pursumg referrals incorporated mto Ihe plan.
Because managed care 15 an extremely

VItal part of an)' health care practice
toda)" speCial atlentlon IS paId m Ihe plan
to the methods Ihat the Center mIght use
to poSitIOn useJr to attract
and retam
managed care contracts.

The follOWIng sectIOns 5ummanze
the strategic markcung plan as outlined
b)' MMI.
THE MARKETING GOAL

The goal estabhshed by The Breast
Care Center was: To achieve # 1 "brand
cquity~ in breast care imaging and
surgery in central Florida.
MARKET POSITIONING
Jom the Central Flonda Health Care

Coalttion
Create letterhead package.
The followmg faclOrs should be consIdered m market posltlonmg for the Center:
Edit patient Infarmaucn sheets on
The Center's convenient locatlon.
Strategy #2: Creale a mISsion statement.
The Cemer's emphasIs on pauent-
Work Wllh ph)'slelans and sLaff 10

formulate a miSSIon statement.
focused care, qualu)' care, and
vanous
Develop a corporaLe sponsorship

mUlative.
tOpiCS.
senslllvtl)'
-Incorporate
The untqueness of a ful1 semce breast

center staffed b)' a female surgeon and
a female radIOlogIst
miSSion
statement
Into
practice brochure, presentation kll,

reception area, and patient rooms.
Jom/underwme programs of the

Women's Resource Center.
Jom/proVlde sponsorship for the Sexual
Assault Resource Center.
UnderWrite programs of speCiallmerest
lowomen.
Strategy #3: Develop and distnbute a

The special attention gIVen to each and
every patient
The Cemer's posillvc OUlcomes as a
result of surgical excellence and high
volumes of procedures.
pracuce handbook.
UtilIze appropnate commumcatlon tools.
Work with phySICians and staff Lo

deSign a pracuce handbook.
Strategy #2: Plan and Implement a multi-
Distribute handbook to all new and

reLUmmg patients.
Produce and place pnnt ads.
The Center's respect for privacy.
Produce and place radio spots.

Distribute handbook throughout
community.
MARKETING CHALLENGES
The followmg chal1enges to be faced
m Lhe development of the markeung plan
were Identified
Development of a strong brand name

Identu), mtemall)'.
Development of a strong brand name
Identuy cxlemal1y
medIa ad campmgn.
Produce and distribute a direct mail

announcemenl.
Strategy #-1: Develop a coordinated direcL

mail system ror potential palients cover
mg the followmg tOpiCS:
Strategy #3: Review and standardize Yel-
Inrormatlon on the Cenler, Its mission,

and ns servIces.
Strategy #4: Take advantage of speaking

opponunlues, targetIng:
Announcement or new racllHy.
Women's groups.
Educauon programs.
Teen programs.
low Page ad deSign.
New products and services.
Amencan Cancer Society.
Development of a program for

malntammg and protecting managed
care relallonshlps.
Strategy #5: Select a promouonalltem for

gIveaway purposes.
Strategy #5: Sponsor and partICipate m an

appropnate communuy project.
Development and mamtenancc of a
DeCide among giveaway options.
Strategy #6: Create media mterest m the
strong referral phYSICIan program.

Each of these challenges and Ihe plannmg response are discussed In tum.
Cemer's mnovatlve approach to care.

Dlstnhure Item to patlems as they exit
practice.
Develop relatIOnshIps w1th reponers.

Dlstnbute news releases as appropnate.
Chal1enge # I
Develop a strong brand name Identll)':
internal strategIes.
Chal1enge #2
Develop a strong brand IdentiLy: external strategies.
Strategy #/: Create print matenals to help

develop a conSistent Image.
Strategy #1: Develop a program for inte-
Work with phySICians 10 deSign the

Breast Care Center logo.
grating the Breast Care Center mto the

community.
Join appropnale business orgamzalions.
Strategy #7: Promole the Cemer's mnova

live technology.
Create and distribute a press release on
Sentinel Node Mapping.
Sel up media presemations on new
technology as appropriate.
MARKETING HEALTH SERVICES
39
Challenge #3
ESlabllsh a diVISIOn of labor among

Center phySICians.
Develop a program to maintain

and prOlcct Important managed care
rClallOnshlps.
Establish weeki) targets for refernng

phySICian contacts.
Strategy #1 Create and mamtain a current

database of managed care contracts for
purposes of on-going communication
ESlabltsh procedure for establIshing and

updallng referrer conlact lis!.
Assure that the Center
Strategy #-1 De"e1op appropnate commu-
IS
listed on all
plan panels
:-.Joury patients when the Center

placed on any new plan panels
mcallon lools, Ineludlng

IS
Dc\'c)op a relationship wnh the director

of uuh:auon revlcw for each plan.
Siralegl #6: Del'e1op a mel hod for lrackmg ullh:atlon of resources
In
-Initial press release
the Cemer's
outpallent fatllu)
Rolodex cardlbusmess card.
'slnllfgv #7' Obram utlhzalJon data on the
Pre-pnmed referral cards wllh maps.
Center's mpalicnt care from the hospitaL

Stral9iV #2: Encourage managed care personnellO VISH the Center
- Fax rderral form for Inter-office use.

Sllllcgy #8." Communicate
LO
managed
care how your practice has Invested

Comacl personnel from each plan al
least 1wice a year
Strategy #3: Creale a database of appropnale phYSIcians paruclpating In plans
wuh which the Center wants to maintain
In
- Letter of commilment to quahty care.
paliCnl education.
Strategy #9: Develop collateral matenals

Ihal wtli posutOn The Breasl Care Center
as a cost-effecl "system approach" to
breast carc.
relalions.
Procedural gUIdelInes and pracllce

parameters.
PhySICIan-to-physIcian handbook.
- Physlcmn-onemed newsleller.
Infonll phySICIans the Center IS In the

plan and avatlable La LhClf pauents.
Challenge #4
Develop and maintain a strong referral
phySICian program.
Repnnls of published research
- Case studIes of mterest.

Research the needs of relevam
ph)'sIClans.
Strategv #1 Create an eastly accessIble

referral database that supports matlmerge communicatIOns.
ProVide physICians news and other

mfom13t1on on a regular basis.
Slnllt.:g.v
#2: Create mechamsms for track-
SIICltegy #5: Del'e1op a mechamsm for

compIlIng ph)slelan feedback (posillve
and negauve) wllh regard to The Breast
Care Center
109 and commuOIcatlng with referrers.
Develop a poSltl\"C lntcrac[Jvc

relauonshlp WIth reb'ant phySICians.
Establish central paml for colleCllon.
Create a monthly repon thaL tracks

referrals by source
Entcnatn relevant phySIcians as

appropnate.
Creale a monthly report that lracks
Center referrals
Siralegy #-1. De"elop a game plan for
contracting wuh managed-care plans.
Siralegy #5: DetenllLne the "value-added"
factors Ihal dlfferenllate The Breasl Care
Center.
FormalIZe Ihe ItSI of value-added
factors.
Create a 90-day report for exammmg

referral trends.
Creme a response mechamsm to

counter decllnmg rderrals.
Stralegv #3: Develop and Implement a

plan for physlcian-to-physlcian interactions.
Develop as discussion items for visits
wllh managed-care personnel.
40
FAU
2000
Establish a mechamsm for

summanzmg.
Obtam commitment from Center

phySIcians for active Involvement.
Establish a follow-up procedure.

St ralegy #6: Develop a plan for conlactmg
new ph)'slcmns and other potential referrers.
-Immedlatel)' contact new physicians.

- Follow up wuh Centcr packet wllhln 30
days.
Strategy #7: Commu to a referring physician protocol.
Determine phone call return time.
Identify and respond to any expressed

problems.
Determine patient referral access time.
Establish benchmarks for report

turnaround lime.
Dcvelop quality of care protocols.
Copy complimentary letters to the

referring physician.
Develop lunch-and-Iearn programs for
the office staffs of refcrnng physicians.
Strategy #/1: Enhance the Centcr's image

within the medical communilY by
emphaslzing leadership, educalion,
and training.
Prepare and distribute practice
fact shcets.
Conduct In-servlce educalion programs.
Create and distribute procedure fact

shccts.
Involve refernng doctors in treatment
plans.
Dlstnbute physiclan newsletter and case
studies.
Stratcgy #8: Develop a plan for meeting

all femalc referring physiCians.
Distribute appropriate matcrial.
Invite all female refernng physicians for
a screening mammogram.
Sfrategy #9: Develop a plan for meeting

all OB/GYN physicians.
Establish regular meeting wilh referral
physicians to obtain feedback
Schedule infonnal wine-and-cheese

after hours get-togethers for office staffs
of refernng physicians.
ABOUT THE AUTHOR

Propose jointly sponsored seminars
with referring physicians in other
specialties.
Strategy #10: Develop a plan to meet all

family practice physicians and any other
potential referrers.
Follow up primary care referrals with a
letter of thanks.
Identify and respond to any expressed
problems.
Copy complimentary letters to the
refernng phYSician.
Andrea Eliscu is president of Medical

Marketing Inc., an Orlando, Fla.-based
marketing and public relations firm. She
provides consultation to a wide vanety of
health care organizallons and IS author of
Ready-Set-Markel!: A Comprehensive Guide
10 Marketingyour Physician Practice in the
New Millennium and Position Jor Success!:
Strategic Mari/dingJor Group Practices,
both published by the Medical Group
Management Association. Eliscu has
received numerous awards for her work
in health care marketing.
"ReVised and rcpnmcd with permiSSIOn lrom
lhe MedICal Group Manngcmcm Associallon. 104
Develop lunch-and-Iearn programs for

the office staffs of refernng physicians.
Inverness Terrace East. Englewood, Colorado

HOI 12-5306; 30J-7W-IIII Copynghll999
Create a referral physician outreach

program.
MARKETING HEALTH SERVICES
41
Lucrri tiinifice vol. 58 (2) 2015, seria Agronomie
PLANNING THE MARKETING ACTIVITY ON THE ROMANIAN

FOOD MARKET (CASE STUDY AT S.C. KOSAROM S.A. PACANI)
Andy Felix JITREANU1, Elena GNDU1, Aurel CHIRAN1
e-mail: andyj@uaiasi.ro
Abstract
The marketing activity is, in most cases, the main element that makes the difference between companies that compete in
the same markets, regardless of their field. Given the increasingly strong competition, differentiating brands in
consumers' minds is achieved mainly through marketing strategies and how they are implemented in the market. Food
companies, including those in Romania, do not deviate from this rule and give a growing importance to marketing
activities. For these actions to be effective, companies must ensure that the marketing process is correlated with the
market requirements and company objectives and possibilities, according to a strict and realistic schedule which is made
in advance and with clear deployment stages. In this paper, the authors have proposed to highlight the importance of
developing a marketing plan, in which all planned marketing activities the company wants to achieve within a certain
period would be listed. The case study was conducted at S.C. KOSAROM S.A. Pacani, one of the most important
producers of meat and meat products in eastern and northeastern Romania. Within the developed marketing plan, the
following milestones were considered: the objectives, the target customer segments, the competitive platform and tools
for communication with the market and proposals for various campaigns: an integrated campaign for Easter, a sales
activation campaign during summer, an educational campaign in the autumn and a winter holidays campaign.
Keywords: planning, targets, implementation, marketing plan.
Fierce competition, which acquires new

dimensions as a result of new techniques and
technologies applied, is a contributing factor to the
increasing role of marketing, to its further
promoting, especially since the competition, which
is happening on a global scale, provides, on the
one hand, opportunities and threats, on the other
hand. (Gndu E. et. al., 2014)
The marketing activity is, in most cases, the
main element that makes the difference between
companies that compete in the same markets,
regardless of their field. Given the increasingly
strong competition, differentiating brands in
consumers' minds is achieved mainly through
marketing strategies and how they are
implemented in the market.
Food companies, including those in
Romania, do not deviate from this rule and give a
growing importance to marketing activities. For
these actions to be effective, companies must
ensure that the marketing process is correlated with
the market requirements and company objectives
and possibilities, according to a strict and realistic
schedule which is made in advance and with clear
deployment stages.
Most business strategies are not adequate to

the conditions of the markets today. They do not
fall in this context, do not distinguish themselves
in any way, they are not flexible nor mobilizing.
Often, they dont exploit the biggest opportunities
and avoid the difficult but important variants that
a business has. They rely more on consumption
than on competitiveness, on stagnation than on
advancement. (Fisk P., 2006).
Marketing should be the driving force of the
business strategy, since it ensures that this strategy
is determined by the challenges and opportunities
on the market and defines where and how the
company engages in competition and also the
means to win the fight. (Fisk P., 2006)
Strategies are often considered a simple
theoretical exercise designed to justify budget
allocations, being compromised as soon as people
are asked not to do what they did before, but they
do not want to, and they start to look just like other
companies strategies, from the same field. They
lack the determination, direction and focus that a
business needs nowadays. (Fisk P., 2006)
University of Agricultural Sciences and Veterinary Medicine Ion Ionescu de la Brad Iasi
233
Universitatea de tiine Agricole i Medicin Veterinar Iai
Romanian food market is dominated by the

selection made on the basis of price. Sales of
premium products are low compared to the
economic, cheap brands, which are most often
purchased.
The criteria taken into account when buying
meat and meat products are:
1. To be cheap: 53%
2. To be fresh: 37%
3. To taste good: 31%
4. To not contain additives: 24%
5. To have a low fat content: 20%
6. To be a trusted brand: 18%
7. To not contain MDMs: 17%
8. To contain a lot of meat: 16%
9. To have a "fresh" colour: 15%
10. To look appetizing: 15%
MATERIAL AND METHOD

The paper was developed based on
information obtained from S.C. KOSAROM S.A.
Pacani. Following discussions with members of the
companys marketing department, we have
developed a proposal for a marketing plan, based on
the needs and expectations of the company.
We consulted various bibliographic sources
and established a marketing plan, taking into account
the companies need for action planning and how
they can be practically implemented in the Romanian
meat and meat products market conditions.
RESULTS AND DISCUSSION

The Romanian market of meat and meat
products is characterized by the following
landmarks:
amounts to about 230,000 tonnes per year and is
worth over one billion Euros (delivery price) estimated in 2009.
consumption of meat per capita in Romania is 9 10 kg per year (the latest estimates).
average pork consumption per capita in the E.U.
is 43.2 kg per year, while in Romania the level is
33.1 kg per capita (without own consumption),
compared to 18.1 kg in Russia.
70% of raw materials for pork products in our
country are brought from the European market
(estimated in 2011)
the main competitors on the domestic food
market are Cris Tim, Caroli Foods, Aldis Calarasi,
Tabco Campofrio, Principal Company, Elit and
Angst.
In terms of historical regions, consumption
is slightly increased in Banat and Transilvania, but
also in Bucharest.
People from Moldova area, unlike those
from Transilvania and Muntenia, consume less
cooked meat products. Consumers behavior in
Muntenia is very interesting, since theyh are very
close to all the "products in the refrigerator," while
the consumers from Bucharest exceed the national
averages on all products.
Consumers in Transilvania have several
specific features, consuming especially pork meat,
well above the national average (88.2% versus
66.2%).
Among the historical regions, there are
significant differences when it comes to the criteria
which is taken into account at the moment of
purchase. Thus, 65% of meat consumers in
Transilvania
choose
depending
on
the
manufacturer and price, while only 45% of
Moldova buyers read the information on the label
(who fabricated the product, what does it contain),
being more interested in price.
11. To smell appetizing: 12%

(Research of MEMRB, 2012, source:
www.fabricadecarne.ro)
Top 5 Romanian producers of meat and
meat products are Cris-Tim, Caroli Foods, Aldis,
Elit and Scandia. They control approximately
40.5% of the values sold in the retail market and
38.3% of the volumes made available on the
market, according to data provided by the market
research company MEMRB.
In this paper, the authors have proposed to
highlight the importance of developing a marketing
plan, in which all planned marketing activities the
company wants to achieve within a certain period
would be listed. The case study was conducted at
S.C. KOSAROM S.A. Pacani, one of the most
important producers of meat and meat products in
eastern and northeastern Romania.
S.C. KOSAROM S.A. Pacani is a company
with a long tradition in food processing and selling
and has a high reputation in the areas where its
products are marketed. It differs from most
companies with regional coverage because it pays
more attention to marketing activities, managing
thus to be competitive in a market which is
saturated and in which it has to cope with many
large national companies.
KOSAROM is positioned in the consumers'
minds as a premium brand that is focused on
quality and freshness. Quality orientation also
means higher prices, targeting a segment of
consumers with above-average or higher income,
especially in urban areas, concerned about what
they eat and, in particular, what they give to their
children or other family members. In over 20 years
of existence, KOSAROM has become an important
company in Moldova area, with a significant
234
market share in the counties in this part of

Romania (table 1).
channels, according to the target

Attracting consumers to the set objectives
(commercial or otherwise)
Table 1
S.C. KOSAROM S.A. market shares in the northeastern Romania counties
COUNTY
BACU
BOTOANI
IAI
NEAM
SUCEAVA
VASLUI
Jan - Sep 2013

(lei)
241,760.04
122,617.48
698,515.80
537,210.15
47,756.87
14,082.71
Target
Active people, generally women from urban
areas, aged between 25 and 50 years, with average
and high incomes
The message will address those with an
active lifestyle, receptive and willing to offer a
diversified diet to their family
PERCENT
12.83 %
6.51 %
37.06 %
28.50 %
2.53 %
0.75 %
Context
Competitors promotion activity is high,
especially Cris-Tim, Aldis, Caroli, Angst and Elit.
Kosarom - a brand with ambitious targets in
terms of sales, so it is necessary to promote itself
consistently and with high frequency
In the current economic situation, constant
effective and lasting promotion is required
Source: S.C. KOSAROM S.A. Pacani

Within the developed marketing plan, the
following milestones were considered: the
objectives, the target customer segments, the
competitive platform and tools for communication
with the market and proposals for various
campaigns: an integrated campaign for Easter, a
sales activation campaign during summer, an
educational campaign in the autumn and a winter
holidays campaign.
The marketing plan that has been developed
proposes several directions and action plans:
setting the goals, the target market and the
competitive context
choosing a suitable communication platform and
the main messages that will be transmitted to the
relevant consumers
structuring the total budget according to the
major campaigns and promotional approaches
(table 2)
choosing the media for transmitting information
and advertising messages
establishing four main marketing campaigns to
be carried out in 2016
detailing each marketing campaigns activities,
given the most important milestones: objectives,
BTL materials, public relations activities and
areas where the action will take place
identifying trade marketing activities for each
category of selling points: own stores and
franchises, traditional retail, Key-Accounts,
HoReCa segment.
Structuring the promotion budget based on the
way the information is transmitted: TV, radio,
internet, print, outdoor.
COMMUNICATION PLATFORM
Kosarom:
a modern brand, but also with tradition
communicates in terms of consumption benefits:
"Enjoy the difference"
promotes a healthy and dynamic lifestyle, being
involved in everyday consumer nutrition
highlights affiliation and product safety: "100%
Romanian", "Quality compels us"
Table 2
Budget structure for the main campaigns
planned for 2016
Budget Campanies 2016
Integrated Easter Campaign
Notoriety Campaign summer season
Educational Campaign
Winter Holidays Campaign
Trade marketing (own stores and
franchises, Key Accounts, HoReCa)
PR Brand Notoriety Campaign
100 %
20,5%
12,7%
16,2%
17,4%
17,5%
15,7%
1. ATL Promotion - based on an integrated concept

of creation:
branding in stores (window / showcase stickers,
light boxes, covers, interior and exterior frames)
outdoor (billboards, transit on buses, mashes,
banners)
personalized stationery (offers, letterheads,
business cards, correspondence)
information material (catalogs, presenters, flyers,
brochures)
POSM (shelf labels, wooblers, displays, bags,
wrapping paper, posters, roll-ups, etc.)
equipment for sales staff and promoters
(seasonal
specific campaigns)
promotional materials (useful items for home,
MARKETING PLAN
S.C. KOSAROM S.A. Pacani
January - December 2016
Objectives
Effective and frequent brand communication
Impact visibility by well-chosen media
235
leisure time and personal development)

packings (for bulk, vacuum and casserole
products, or manipulation packaging)
2. Audio - Visual promotion
TV appearances (various culinary programs or
with a special cooking section)
radio broadcasts (various awareness or specific
campaign spots: Kiss FM, Magic FM)
video presentations (at some events or in retail)
3. On - line promotion
company website: English version
banners on partner sites and specialized
publications
with strong, high reputation brands, such as Coca

- Cola
- the campaign is conducted only in own stores and
consists of promotional packages "a casserole of
minced meat rolls + 1.5 liter bottle of Coca Cola
at discounted price per package"
- special barbecue products labeled with a splat
scrape, with specific summer season prizes
PR:
- message: "Kosarom takes you out for a grill"
Action segments: retail market, own stores,
franchises, shopping centers
Educational campaign "Enjoy your health"
(September - October 2016)
CAMPAIGNS PLAN FOR 2016

Integrated Easter Campaign (March - April
2016)
- sales activation
- launching new products (various weights or
packages)
- increasing brand awareness among end
consumers
- Kosarom products consumers loyalty increase
- sellers and customer loyalty increase through:
Easter greeting cards, e-cards, product packages
BTL:
- sampling actions - tasting products
- new products enabled by promotional offers,
indicating their benefits / packaging / presentation
forms, in the traditional market and own stores
- placing POSM materials in the retail market and
in the commercial galleries of hypermarkets
PR:
- Kosarom Promise: 100% Romanian products
and services, worth savored, in terms of
guaranteed quality. This promise must
differentiate Kosarom
from competitors and customize the brand
- the release of new products / packages will focus
on the following key - concepts: "flavor",
"safety"
and "efficiency"
- launching a discussion forum named "lets eat
Romanian" (double meaning: Romanian cuisine
and Romanian products)
Action segments: retail market, own stores and
franchises
Sales activation campaign in the summer time
- "Kosarom takes you out for a grill" (July August 2016)
- sales enabled for the main categories of products
that can be consumed easily in the warm season
and holidays
- promoting seasonal products: minced meat rolls,
fresh sausages, etc.
BTL:
- sales enabled for targeted products, in association
BTL:
- health caravan: the promoters team will also
include a doctor
- educational campaign on all age groups: school
supplies packages will be distributed for children,
adults will receive leaflets about nutrition and
consumer tips on various product lines and for
people over 55 years old there will be informative
materials about food conduct adapted to their age.
PR:
- information campaign on the benefits of meat
consumption and food products diversity, in
collaboration with the ministries of health and
education and other producers (dairy).
- information materials: booklets, outdoor, TV and
radio spots
Target messages and actions:
children: educational activities in schools,
message based on harmonious growth-related
benefits
adults: 20-55 years: information campaigns,
messages such as "Healthy food, healthy body"
or "A good day starts with breakfast"
segment between 55-70 years: awareness-raising
messages about the importance of nutrition: "Eat
healthy, age gracefully"
Segments of action: schools, traditional shops,
retail, Key Accounts.
Campaign during the winter holiday season
(November - December 2016)
BTL:
- promotional campaigns for customers and
Kosarom partners
- enabled sales for season products category
- "Discover your gift from Kosarom" - instant-win
campaign, for the end consumer, implemented by
scratch labels attached to various Kosarom
products
- promotional campaigns with discounts before
Christmas and sales campaigns thresholds
conducted among sellers in stores
236
PR:
- the awareness campaign "Discover your gift
from Kosarom" supports healthy eating and
sports
- media coverage of Kosaroms involvement in
improving the lives of consumers
- prizes consisting in trips to the mountains or
skiing and swimming lessons
- sponsorship actions of seasonal activities (winter
sports)
- launching toys that carry the campaign message,
which are offered to disadvantaged backgrounds
children (hospitals, orphanages); this can be
implemented in partnership with an NGO
- sponsorship and corporate social responsibility
campaign - Christmas trees adorned by Kosarom
and placed in certain strategic locations
Action segments: retail market, Key Accounts,
own stores and franchises
4. HoReCa segment
a. specific promotional materials (naprons,
napkins,
lithographs, equipment for waiters, umbrellas,
recipe books, etc)
b. gastro products promotion campaign
c. sponsorship of seminars and activities organized
for restaurants managers
d. loyalty program for restaurants managers or
sponsoring events organized in tourist areas
Most of the marketing budget will be
allocated to communication through the mass
media (32%), followed by BTL actions (24%) and
point of sales promotion (14%) (figure 1).
TRADE MARKETING
Promotions of this kind will be specific to
each addressed area and market channel:
1. Own stores and franchises
a. quarterly Kosarom brochure (magazine),
distributed in proximity area and in stores, with
various promotions and recipes
b. loyalty cards with point values for own stores
(prizes or promotional items)
c. "delicious weekend" - every Saturday a product
or a product package that is on promotion will
be tasted
d. focus group (quarterly) with Kosarom "tasters"
for developing new products or new packaging
tasters will be chosen from the loyal buyers
e. information and promotion programs to market
new meat products
Figure 1 - Distribution of marketing budget on the

main communication channels
Almost half of the budget will be used for

promotion on Pro TV (46.1%) and 28% for Antena
1 (table 3).
Table 3
Targeted TV channels in 2016 - split buget
TV stations
Pro TV
Antena 1
TVR 1, Prima TV, Kanal D
Realitatea TV
Naional TV
TOTAL
2. Traditional retail with development potential

a. promotional materials for the sales staff
(equipment, bags, wrapping paper, pens,
notebooks)
b. generic and campaign specific POSMs
c. contests for the sellers and store owners on sales
targets
d. "mystery client"
%
46,1%
28,0%
14,4%
8,6%
2,9%
100,0%
In terms of radio promoting, the highest

share goes to Kiss FM, with 55.6% of the total
(table 4).
Table 4
Targeted radio channels in 2016 - split buget
Radio stations
3. International Key Account Networks

a. associating with partners in buyers loyalty
campaigns example: VAT free day or various
promotional packages: a product + 50% off the
second product or a product + a gift
b. involvement in campaigns proposed by
Kosarom
partners
c. sampling campaigns (with a mascot)
d. instant-win campaign
Kiss Fm
55,6%
Europa FM, Radio ZU, Impact FM
22,2%
Radio 21
22,2%
TOTAL
100,0%
The budget for print promotion will be

divided as follows: 50% - business magazines,
237
40% - women's magazines / kitchenware and 10%

- newspapers (table 5).
A for outdoor advertising, transit and
stationary means each hold 38%, while for the
advertising caravan 24% of the budget will be
allocated (table 6).
competitive platform and tools for communication

with the market and proposals for various
campaigns: an integrated campaign for Easter, a
sales activation campaign during summer, an
educational campaign in the autumn and a winter
holidays campaign.
The marketing plan is designed according to
the specific of the Kosarom brand, to the ideas and
values that the company wants to transmit to the
target-market, but also to the company
opportunities, in the current conditions: budget,
objectives, competitors, market share, relationship
with trading partners and positioning the brand in
the consumers' minds.
The market success of a regional company
producing meat and meat products (such as S.C.
KOSAROM S.A. Pacani) depends largely on how
the marketing activities are able to provide a
competitive advantage and, in particular, to
identify and use one or more elements of
differentiation from competitors, in order to create
and maintain an identity on the market, a distinct
place in the minds of the consumers and an amount
of features that constitute the image of a strong and
competitive brand.
Table 5
Targeted print media channels in 2016 - split buget
Print media channels
Newspapers
10,0%
Magazines for women / cooking
40,0%
Business magazines
50,0%
TOTAL
100,0%
Table 6
Targeted outdoor channels in 2016 - split buget
Outdoor channels
Outdoor transit
38,0%
Outdoor stationary
Advertising caravan
38,0%
TOTAL
24,0%
100,0%
CONCLUSIONS
REFERENCES
The marketing activity is, in most cases, the

main element that makes the difference between
companies that compete in the same markets,
regardless of their field. Given the increasingly
strong competition, differentiating brands in
consumers' minds is achieved mainly through
marketing strategies and how they are
implemented in the market.
Food companies, including those in
Romania, do not deviate from this rule and give a
growing importance to marketing activities. For
these actions to be effective, companies must
ensure that the marketing process is correlated with
the market requirements and company objectives
and possibilities, according to a strict and realistic
schedule which is made in advance and with clear
deployment stages.
S.C. KOSAROM S.A. Pacani is a company
with a long tradition in food processing and selling
and has a high reputation in the areas where its
products are marketed. It differs from most
companies with regional coverage because it pays
more attention to marketing activities, managing
thus to be competitive in a market which is
saturated and in which it has to cope with many
large national companies.
Within the developed marketing plan, the
following milestones were considered: the
objectives, the target customer segments, the
Boone L., Kurtz D., 2001 - Contemporary Marketing,

11th Ed., The Dryden Press / HBJ, USA.
Chiran A., Gndu E., Banu A., Ciubotaru E.A., 2003
Marketing agroalimentar teorie i practic, ed. a
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Demetrescu M. C., 1993 - Comportamentul
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238

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Useascategoriesthe7ComponentsofanEec5veMarek5ngPlan(See

Comparative Analysis of Marketing Analysis of 3 Firms

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So what's the plan?

We're talking marketing

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and sound financial projections helps you define

POWERCERV CORPORATION made all of about $700,000

PowerTOOL. "We weren't building any intrinsic value

Seven Components of an Effective Marketing Plan

SALES & MARKETING MANAGEMENT

attends about 20 trade shows a year

custom machines had gotten out

Caravali Coffees: Brewing aNew Market

Wait until you see the size

At Manhattan East Suite Hotels,

would already have Caravali customers

thought it was important to get input

For reservations or a brochure,

I-800-ME-SUITE, Ext. ISO.

Manhattan East Suite Hotels

No. 128 on Free Information Card

Strategic marketing planning for a supplier of

The aim of this paper is to provide a strategic review of the

According to Fifield and Gilligan (2000), marketing planning

Situation analysis environmental scanning

Journal of Business & Industrial Marketing

A teaching note is available from Dr Vrontis Demetris at:

Strategic marketing planning

Journal of Business & Industrial Marketing

Demetris Vrontis et al.

Volume 21 Number 4 2006 250 261

Table I Assumptions made

Figure 1 The marketing plan process

Figure 2 Situation analysis

environmental constraints, such as the structure of the

firstly analysing the environment in which the company

Microenvironment political, economic, social,

As regards economic factors, Cyprus is considered an

Strategic marketing planning

Journal of Business & Industrial Marketing

Demetris Vrontis et al.

Volume 21 Number 4 2006 250 261

consumption of 42 litres, compared to an average of 63

Table II GDP growth (millions of CYP)

GDP (at constant prices)

Source: Hellenic Bank (2002)

Dairy industry players (customer and prospects)

Social factors include:

Market share total revenue

Market trends and dominant market segments of the

Table V Competitors in the Cypriot dairy industry (2003)

Table III Child allowance (effective 2003; in CYP)

Fresh pasteurised white milk, full

Shelf life Dairy Dairy Dairy

Table IV Beverage split (million litres)