Marketing

individual assignment

Contents
Contents..................................................................................................................... 1
Table of figures ..........................................................................................................2
................................................................................................................................... 3
introduction................................................................................................................ 3
Task -01......................................................................................................................4
Benefits and costs of Marketing approach .................................................................4
Introduction to an Organization (STO)........................................................................5
Vision of the STO..................................................................................................6
Mission of the STO................................................................................................6
Core purpose and core values..............................................................................6
Values ................................................................................................................. 6
Customer base of STO................................................................................................7
Competitors of STO....................................................................................................7
Porters Five Forces Analysis......................................................................................8
Collaborators ...........................................................................................................10
PEST analysis ...........................................................................................................10
SWOT ANALYSIS OF STO...........................................................................................12
Introduction of New product- Heskiyaa Jugo .......................................................13
Product life cycle of STO new product ( Heskiyaa Jugo)............................................14
Market Segmentation...............................................................................................14
Market Positioning...................................................................................................15
Target market...........................................................................................................15
Fig 1.4......................................................18
Perceptual Map of Heskiyaa Jugo..............................................................................18
Fig 1.5.............................................................18
Task -02....................................................................................................................19
Conclusion................................................................................................................ 20
Reference ................................................................................................................21

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Table of figures
Fig 1.1..08
Fig 1.213
Fig 1.314
Fig 1.4 17
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Fig 1.5..18

introduction
STO group, with its subsidiaries, JVs and associates, is a national leader in business. It has
significant and focused interests in petroleum, cooking gas, construction materials (including
cement and roofing material), medical supplies and pharmaceuticals, home appliances, electronic
items, supermarket products and insurance. The company is geographically diverse with
operations and developments throughout Maldives and operations in Singapore.

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STO is a company where they import most of the products from different parts of the world. So
from STO we can get most of the products. Today STO is going to launch a new product to the
customers. A new brand of fizzy drink called Heskiyaa Jugo. This is the first time that STO
produce their own product. This drink will keep people healthy and can available in almost all
shops and school/college canteens.
The main topics highlighted in this report were situational analysis of STO and new product
Heskiyaa Jugo, also crate of product promotion material.

Task -01
Benefits and costs of Marketing approach
The principal benefit of marketing is that it enables companies to maximise their potential and
reach the right customers at the right time. A proper approach to marketing involves
understanding the customer and his or her needs: identifying the real needs of the market.
It is always important to understand market needs, rather than to attempt to "force" people to buy
your products and services because you think they are better than anything else available.
If the customer doesn't believe you, you will not sell to them. It is as simple as that.

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A proper marketing strategy is based on the right level of research into a market's direction and
its key players. You have to identify exactly where your business might fit into its market, and
how it will succeed within it.
The drawback of marketing in general is the cost. Adverting and marketing costs money. If
you dont do the proper research then you might end up throwing money away. Wasting
marketing efforts by targeting the wrong audience using an inappropriate medium would be a
serious and costly mistake. So it is important to do your research beforehand and keep your costs
to a minimum.
As well as the financial cost, marketing your business will require investment of time.
Researching the appropriate marketing strategy, designing and writing the adverts, getting them
published, dealing with any response. Its important to spend time keeping track of how
successful or not your marketing campaign is. A potential disadvantage of marketing here is the
risk of time wasted for an unsuccessful campaign.

Introduction to an Organization (STO)

The roots of State Trading Organization PLC, dates back to 1964 when it was opened to finance
the purchasing and importation of essential food items needed for the Maldivian community in
bulk. Today STO has sustained this important responsibility to oversee the food security
concerns of government and diversified into many other areas of importance such as energy
needs of the country which has now become part and parcel of STOs mandate.
Within the framework that includes these two areas STO has diversified and is also
competitively engaged in trading in other areas including Consumer Electronics, Home
appliances, Medicals, Canned foods, Health foods and a range of other high quality products.
This has been achieved by direct procurement and distribution as well as forming joint ventures
to effectively trade in areas which STO might have been at disadvantage had STO not been able
to do so, while still maintaining a strong hold with the Government as the primary trading
partner of choice.

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State Trading Organization Plc with its subsidiaries, a joint ventures and associates is a
nationwide leader in the business sector. It has significant and focused interests in petroleum,
construction materials, electronic items, cooking gas, cement, roofing sheets products, home
appliances, super markets and insurance. The company is geographically diverse, with operations
and developments in Maldives and Singapore.

Company emblem
Vision of the STO
"To become the most successful and the most efficiently managed multinational company (in the
country) that would make every individual of the nation proud by the year 2014."
Mission of the STO
"Our corporate mission is to make STO one the most innovative and efficiently managed
multinational companies in the region."
Core purpose and core values
Core Purpose
The core purpose of STO since its inception in 1964 has been to import and supply staple foods
and fuel on a sustainable basis. STO also plays a key role in stabilizing market prices. STO will
move forward to expand and provide its services in a socially responsible manner, while
ensuring that the core purpose is achieved.
Values
Nation first - National interest is number one priority
Customer focus - Delight each and every customer

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Employee well-being - Pleasant workplace, learning and growth
Leadership - Excel with reliability, integrity, honesty and transparency
Social responsibility - Care for the society and the environment

Customer base of STO

Trading is a core area of STO's business and wholesaling is an important part of it. Company
provides a wide range of products to the wholesale customers. Many of these products are under
company authorized distributorship.
To drive the wholesale business and to provide a more desirable customer experience, company
recently opened a new facility named "STO Wholesale Centre" equipped with specially trained
staff to serve our wholesale customers.
STO also conducts retail trade on a very large scale, geographically and by volume. Company
retail operation includes all activities involved in selling goods directly to the end user and
providing training and after-sales support where needed.
Retail facilities are very popular among locals and expatriates. Each of the retail facilities offers
a great selection of products at competitive prices in an enjoyable shopping environment. Also
retail staffs are continuously trained on products and customer care

Competitors of STO
The state trading organization is trading company based on both wholesale and retail trade. The
organization has different retail outlets and joint ventures. As company have greater market share
in stock exchange. The competitors also had been increased day by day. The main competitors in
the market are Maldives transport and contacting company plc ltd. This company is also been
increased their market share in few years of time.
The main strength of our competitor is they have been more experience in field. Also sustain
better customer base.
The main weakness of our competitor is they are specialized in trading on one major product.
They are providing transportation service to the general public.
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Fig 1.1
The above pie chart shows graphical representation of Market share in last few years. In this
describe that STO has been gained great market share, which means:

STO has large Economies of scale.

Optimum Sales growth

Good Reputation in market.

Great bargaining power

Porters Five Forces Analysis

nother effective tool for analyzing the firms and competitors position within the marketplace is
Porters Five Forces analysis. This analysis looks at the relationship between the customer and
suppliers as well as ease of market entry and technology development. The outcome of the
analysis identifies the power the customer has over the firm or the firm has over the customer, as
well as the strength of competition in the market segment.

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Competitive Rivalry: STO was the leading and most famous company among Maldivians past
5 or 6 years. There were only few competitors in the market and those competitors were below
than STO. But today there are many competitors competing in the same rank with STO. Like
RED WAVE, AGOURA, LECUTE, etc. therefore its difficult to the STO to be in same rank
without proper research and management.
Supplier Power: STO is one of the organization which import products from countries like

Malaysia, Singapore, Japan, India and Srilanka. So they supply most of the products and
materials from these countries. Heskiyaa jugo most of the things they import from India. So its
important to STO to keep good relation with India Company. Otherwise they might change their
supply to other companies which are competing with STO.
Buyer Power: STO provides most important and branded products to the public. So there is a
great bargaining power to the customer because there are so many competitors. If STO cant
provide the quality products to the customers they have power to move into another company
where they can get products in low prices. So our company is very much concerned about
pricing the products and giving best services to the customers.
Threat of Substitution: Today STO is facing very hard time with Substitutes products. The new
product we are going to launch is going to be big challenge for us because in Maldives there are
so many brands of fizzy drinks which were imported from different countries. Therefore STO
must provide correct information to the public. Now we are going to advertise this product in
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local TV channels in Maldives. If we cant provide the information to the public at right time it
might be a failure to the company.
Threat of New Entry: As the world is developing with new technologies our country is also
experience in this manner. For that reason new competitors are entering to the market from the
local side as well as internationally. So these new entrances are big threat to our company as
well. Before there were few competitors but now in same position many company are competing.

Collaborators
Allied Insurance Company Maldives Pvt Ltd Subsidiary 99.9% in 1985 as the first fully
Maldivian insurance provider.
Fuel Supplies Maldives Pvt Ltd Subsidiary 99.9% in 2001 to distribute oil for convenient
public consumption.
Maldives Gas Pvt Ltd Subsidiary 90.0% in 1999 to provide the public with a reliable and
affordable supply of natural gas this has become a basic necessity.
Maldives National Oil Company Ltd Subsidiary 99.9% In 2003 to make additional foreign
income for the country from international oil trade.
Maldives Structural Products Pvt Ltd Joint Venture 50.0% in 2007 to manufacture and supply
steel roofing products and accessories at affordable prices to the public.
Lafarge Maldives Cement Pvt Ltd Associate 25.0% in 2002 with the aim of helping the
construction industry with a steady supply of quality cement.
STO Maldives (Singapore) Pte Ltd Subsidiary 99.9% in 1996 to engage in international trade.

PEST analysis
Political and legal

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STO is one of the best leading companies in Maldives, so it is very important to us to know
about the Maldivian political and legal frame work in order to be very successful in our business.
These Issues differ from country vise. As the new president has elected in Maldives, he might
change the political and legal environment. So it is very important for us to be aware of these
facts in order to sustain in the market. In addition the country economy is going very bad day by
day. Therefore political rules and regulation may differ from time to time.
Economical
STO had a good brand image within the Maldives and the countries nearby. So it is very
important to know about the economical changes in those countries. The interest rate and the
inflation play a vital role in this aspect. Maldives economy has grown rapidly within these past
few years. Last year 2010 we got the highest interest rate. So we need to understand these
changes in the economy in fixing the price and other things in our company.
Socio-cultural
The social and cultural influences on business vary from country to country. It is very important
that such factors are considered. Factors include:

a) What is the dominant religion?

b) What are attitudes to foreign products and services?
c) Does language impact upon the diffusion of products onto markets?
d) How much time do consumers have for leisure?
e) What are the roles of men and women within society?
f) How long are the population living? Are the older generations wealthy?
g) Do the populations have a strong/weak opinion on green issues?

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We are aware of these questions. We monitor the social changes in the country. Our people study
all the possible factors that need to be considered and bring the possible hangs in our industry.
And also provide the customers good customer care and new products.
Technological
The most important changes brought by the human in the 21st century were the Technology. The
technology has brought the people together with the best, comfortable and convenient life.
People are always fond of some technology and became very lazy. STO is also adopt to the
modern technology is used in almost all the services. The services itself is a technology in
modern world. We use modern technology to have no issues with the quality of our products.

SWOT ANALYSIS OF STO

Strengths
Specialist marketing expertise
A new innovative or services
Quality process and procedures of the organization
A very good team work.
Well trained and skilled labours

Weakness
Many sectors running under one management
The distribution is not very effective

Opportunities
Introduce E-business operation though internet, websites, computer network
Merges, joint ventures or strategic alliances
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Moving into new market segment that offer improved profits
New international market
Market vacated by ineffective competitors

Threats
New competitors in our home market
Price wars with competitors
Competitors have a new, innovative products or service.
Competitors have superior access to channels of distribution.

Introduction of New product- Heskiyaa Jugo

STO is a company where they import most of the products from different parts of the world. So
from STO we can get most of the products. Today STO is going to launch a new product to the
customers. A new brand of fizzy drink called Heskiyaa Jugo. This is the first time that STO
produce their own product. This drink will keep people healthy and can available in almost all
shops and school/college canteens. The material need for this production are importing from
neighbor country India. (Company called Makunu traders pvt ltd.). There is special team from
abroad as well as local to make this product. STO provides the people the best and affordable
brands of products.

Fig 1.2

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Product life cycle of STO new product ( Heskiyaa Jugo)

Justification

Fig 1.3

The above diagram shows Product life cycle of Heskiyaa jugo, as this is newly introduced
product, the product in Product life cycle is mentioned in introductory stage. In this stage the
Sales are low as the new idea/product is first introduced to the market. Customers may not be
aware of the products benefits and features and may not be aware of the product itself. My new
product Heskiyaa Jugo comes under the introduction Stage.

Market Segmentation
Market segmentation is a marketing approach that encompasses the identification of different
groups of customers with different needs or responses to marketing activity. The market
segmentation process also considers which of these segments to target.
Also Market segmenting is the process that a company divides the market into distinct groups
who have distinct needs, wants, behavior or who might want different products and services.
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Markets can be divided according to a number of general criteria, such as by industry or public
versus private although industrial market segmentation is quite different from consumer market
segmentation, both have similar objectives. All of these methods of segmentation are merely
proxies for true segments, which don't always fit into convenient demographic boundaries.
Consumer-based market segmentation can be performed on a product specific basis, to provide a
close match between specific products and individuals. However, a number of generic market
segment systems also exist.
The process of segmentation is distinct from targeting (choosing which segments to address) and
positioning (designing an appropriate marketing mix for each segment). The overall intent is to
identify groups of similar customers and potential customers; to prioritize the groups to address;
to understand their behavior; and to respond with appropriate marketing strategies that satisfy the
different preferences of each chosen segment. Revenues are thus improved.

Market Positioning
After the organization has selected its target market, the next stage is to decide how it wants to
position itself within that chosen segment. Positioning refers to how organizations want their
consumers to see their product. Developing a positioning strategy depends much on how
competitors position themselves. Do organizations want to develop a me too strategy and
position themselves close to their competitors so consumers can make a direct comparison when
they purchase? Or does the organization want to develop a strategy which positions themselves
away from their competitors? Offering a benefit which is superior depends much on the
marketing mix strategy the organization adopts. The pricing strategy must reflect the benefit
offered and the promotion strategy must communicate this benefit.

Target market
Marketing segmentations reveals the market segment opportunities facing a firm. The firm
knows has to evaluate these segments and decide how many segments to cover and which ones
to serve. In evaluating different market segments, a company must look at three factors: segment
size and growth, segment structural attractiveness, and company objective and resources.
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Segmenting size and growth: the company first collect and analyze data

on current dollars sales, projected sales growth rates and expected profit margins for various
segments. It wants to select segments that they have the right size and growth characteristics,
but right size and growth is a relative matter. Some companies will want to target segments
with large current sales, a high growth rate and a high profit margin. However, the largest,
fastest growing segments are not always the most attractive for every company. Smaller
companies may find that they lake the skill and the resources needed to survive the larger
segments, or find that these segments are too competitive.

Such companies may select

segments that are smaller and less attractive, in an absolute sense, but that are potentially more
profitable for them.

Segment structural attractiveness: a segment might have desirable size

and growth and still not be attractive from profitability point of view. The company must
examine several major structural factors that affect long-run segment attractiveness. For
example, the company should appraise the impact of current and potential competitors. A
segment is less attractive if it already contains many strong and aggressive competitors. Market
should also consider the threat of substitute products. A segment is less attractive if actual or
potential substitutes for the product already exist. Substitute plays a limit on the potential
prices and profit that can be earned in a segment. The relative power of buyers also effect
segment attractiveness. If the buyers in a segment process strong or increasing bargaining
power relative to sellers, they will try to force price down, demand more quality or service, and
set competitors against one another, all the expense of seller profitability. Finally, segment
attractiveness depends on the relative power of the suppliers. A segments is less attractive if
the suppliers of raw materials, equipment, labour and services in the segment and powerful
enough to raise prices or reduce the quality or quantity of ordered goods and services.
Suppliers tend to be powerful when they are large and concentrated, when few substitutes exist
or when the supplied product is an important input.
Company objectives and resources: even if a segment has positive size and growth and its
structurally attractive, the company must consider its own objectives and resources and relation
to that segment. Some attractive segments could be quickly dismissed because they do not mesh
with the companys long-run objectives. Although they might be tempting segments in
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themselves, they would divert companys attention and energies away from its own goals. If a
segment fits a company objectives, the company must then decide whether it possesses the skill
and resources needed to succeed in the segment. Each segment has certain success
requirements. If the company lacks and cannot readily obtain the strengths needed to compare
successfully in segment. It should not enter that segment. But even if the company possesses the
required strengths, this is not enough, if it is really going to win in a market segment it needs to
employ skills and re
sources to those of the competition. The company should only enter segments where it can offer
superior value and gain advantages over competitors.

Heskiyaa Jugo juice is segmented into for groups. They are age below 12 years, age between
13 to 25, age between 20 to 45 and people above 45. Our main target group is age 13 to 25
because this drink is made especially for youth and teenagers. For positioning the product,
hesikyaa jugo juice wants to be the best drink for the target group among all the other brands.
The below diagram shows the market segmentation, target as well as market positioning of our
new product called heskiyaa jugo

Age between
Age below 12

13 to 25

Age above

Agebetw
en
45 e
20 - 45
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Fig 1.4

Perceptual Map of Heskiyaa Jugo

High
price

High Quality

Low quality

Low
price
Fig 1.5

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Task -02
To promote STO new product hekiyaa jugo. I have created a flyer that describes the product in
detail to the target market. (For the flyer refer to appendix).

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Conclusion
First of all I would like to thank our Lecture Ms. Inoka for their kind help and support to
complete my assignment successfully. From this assignment I got many new information and
ideas about the subject matter well.
I believed from my assignment we all can get the most important and valuable information about
the subject Marketing and also I believed I had covered the most important areas in this module.
From the beginning till the end of this assignment, it has been a great experience. The major
constrain I faced during the process of completing this assignment was to get the information
from the company, as the organization is not willing to reveal their success. However, with the
available information, I have tried my level best to complete this assignment productively.

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Reference
Source:

(http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx)
viewed on 16-06-11
Source: (http://www.cimhk.org.hk/) viewed on 16-o6-11

Source:(http://marketing-guru.blogspot.com/2006/01/definition-of-marketing-byphilip.html viewed on 17-06-11.

Source: http://www.blurtit.com/q581930.html viewed on 16-06-11.
Source: http://wiki.answers.com/Q/Cost_and_benefits_of_marketing_approach viewed

on 21-06-11
Source: sto.gov.mv viewed on 27-06-11

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