RAHMY MIP Assignment

1
Marketing In Practice
ACKNOWLEDGMENT
Author would like to thank Miss Nilusha Gallage for her continuous support and guidance in the preparation of this study. supervision, all my efforts would have been short-sighted. Author would also like to thank a few of my fellow batch mates who were always around to support me morally. Author owes quite a lot to my parents who provided me the chance to fulfill my career objectives and for the support throughout my studies. Author would like to dedicate this study to them as an indication of their significance in this study as well as in my life. Author would also like to thank APIIT Lanka (PVT) Ltd for providing me with the necessary facilities such as the library for all our references and also the computer lab which helped me to find information on different topics by the use of the internet. Without her valuable
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TABLE OF CONTENT
ACKNOWLEDGMENT ...................................................................................................................1 TABLE OF CONTENT ....................................................................................................................2 Table of Figures ........................................................................................................................................ 5 List of Table .............................................................................................................................................. 8 ABBREVIATIONS ......................................................................................................................... 11 PROPOSAL.................................................................................................................................... 12 CONTENTS ................................................................................................................................... 13 COMPANY BACKGROUNG ........................................................................................................ 14 Formation ................................................................................................................................................ 14 Progression.............................................................................................................................................. 15 Future ...................................................................................................................................................... 15 Mission & Vision .................................................................................................................................... 16 Product Range ......................................................................................................................................... 16 Marketing Philosophy ............................................................................................................................. 17 MARKET SUMMARY................................................................................................................... 18 Industry Structure.................................................................................................................................... 18 Industry Participants ............................................................................................................................... 19 Target Market.......................................................................................................................................... 20 Trend, Growth & Opportunity ................................................................................................................ 21 Gaps & Problems .................................................................................................................................... 21 SWOT ANALYSIS ......................................................................................................................... 22 Strengths ................................................................................................................................................. 22 Weakness ................................................................................................................................................ 23 Opportunities........................................................................................................................................... 23 Threats .................................................................................................................................................... 23 Analysis & Wrap up................................................................................................................................ 24 MARKETING OBJECTIVES ........................................................................................................ 25 Functional Objectives ............................................................................................................................. 25
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Quantitative Objectives ........................................................................................................................... 27 Qualitative Objectives ............................................................................................................................. 28 MARKETING STRATEGY .................................................................................................................... 29 SEGMENTATION ................................................................................................................................. 30 Consumer Segmentation Bases ........................................................................................................... 30 Characteristics of Profile ..................................................................................................................... 31 TARGETING .......................................................................................................................................... 32 Evaluation & Effectiveness of Segments ............................................................................................ 32 Other Segment(s) evaluating criteria .................................................................................................. 33 Final Target Market & Location ......................................................................................................... 33 POSITIONING ....................................................................................................................................... 35 Differentiation Strategies and Description. ........................................................................................ 36 POSITIONING PROCESS .................................................................................................................. 38 Positioning Map .................................................................................................................................. 38 MARKETING MIX........................................................................................................................ 39 PRODUCT .............................................................................................................................................. 39 Product ................................................................................................................................................ 39 Product Concept .................................................................................................................................. 39 Product Classification ......................................................................................................................... 40 Brand Name ........................................................................................................................................ 40 Packaging & Labeling......................................................................................................................... 40 Product Levels .................................................................................................................................... 41 Product Type ....................................................................................................................................... 42 Product Life Cycle (PLC) ................................................................................................................... 43 Consumer benefits .............................................................................................................................. 44 Total Product Concept ........................................................................................................................ 45 PRICE ..................................................................................................................................................... 46 Factors Affecting Price ....................................................................................................................... 46 PRICING PROCESS ........................................................................................................................... 47 Price according to PLC ....................................................................................................................... 50 PLACE .................................................................................................................................................... 51
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CHANNEL DESIGN DECISION ........................................................................................................ 51 Marketing Channel Flow .................................................................................................................... 55 Placed Retail Outlets ........................................................................................................................... 56 Delivery Road Map ............................................................................................................................. 57 Proposed Channel Alternatives ........................................................................................................... 58 Place according to PLC ....................................................................................................................... 58 PROMOTION ......................................................................................................................................... 59 MARKETING COMMUNICATION PROCESS .................................................................................. 59 MARKETING MATERIALS ................................................................................................................ 71 Promotional activities according to PLC ............................................................................................ 82 IMPLEMENTATION & CONTROL ............................................................................................. 83 STEPS FOR SUCCESSFUL PLAN EXECUTION .................................................................................. 83 APPENDIX ................................................................................................................................................ 91 REFERENCE LIST ...................................................................................................................... 118
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Table of Figures Figure 1 Then & Now ................................................................................................................... 15 Figure 2 Future Expansion ............................................................................................................ 15 Figure 3 Mission & Vision ........................................................................................................... 16 Figure 4 Product Range ................................................................................................................ 16 Figure 5 Product Needs ................................................................................................................. 17 Figure 6 Marketing Concept ......................................................................................................... 17 Figure 7 Monopolistic Competition .............................................................................................. 18 Figure 8 Competitors .................................................................................................................... 19 Figure 9 Indirect Competition ....................................................................................................... 19 Figure 10 Business to Customers .................................................................................................. 20 Figure 11 Business to Business..................................................................................................... 20 Figure 12 Trend, Growth and Opportunity ................................................................................... 21 Figure 13 Gaps and Problem......................................................................................................... 21 Figure 14 SWOT Analysis ............................................................................................................ 22 Figure 15 Corporate Objectives .................................................................................................... 25 Figure 16 ANSOFF Matrix ........................................................................................................... 26 Figure 17 AIDA Model ................................................................................................................. 26 Figure 18 Quantitative Objectives ................................................................................................ 27 Figure 19 Qualitative Objectives .................................................................................................. 28 Figure 20 STP Process .................................................................................................................. 29 Figure 21 Value Proposition ......................................................................................................... 35 Figure 22 Positioning Map............................................................................................................ 38 Figure 23 Brand Logo 2 ................................................................................................................ 40 Figure 24 Brand Logo ................................................................................................................... 40 Figure 25 6 & 9 Pack .................................................................................................................... 40 Figure 26 Single Pack ................................................................................................................... 40 Figure 27 Product Levels .............................................................................................................. 41 Figure 28 Potential Product .......................................................................................................... 41 Figure 29 Boston Consulting Group Matrix ................................................................................. 42 Figure 30 Consumer Benefits ....................................................................................................... 44
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Figure 31 Tangible Benefits.......................................................................................................... 44 Figure 32 In-Tangible Benefits ..................................................................................................... 44 Figure 33 Total Product Concept .................................................................................................. 45 Figure 34 Pricing Process ............................................................................................................. 47 Figure 35 Elastic Demand Curve .................................................................................................. 48 Figure 36 Channel Design Decision ............................................................................................. 51 Figure 37 Buying Requirements ................................................................................................... 52 Figure 38 Selected Distribution Channel ...................................................................................... 54 Figure 39 Physical Flow ............................................................................................................... 55 Figure 40 Payment Flow ............................................................................................................... 55 Figure 41 Information Flow .......................................................................................................... 55 Figure 42 Promotion Flow ............................................................................................................ 56 Figure 43 Road Map 2 .................................................................................................................. 57 Figure 44 Road Map ..................................................................................................................... 57 Figure 45 Marketing Communication Process ............................................................................. 59 Figure 46 Favorability & Familiarity Matrix ................................................................................ 61 Figure 47 Communication Message ............................................................................................. 62 Figure 48 Communication Platform ............................................................................................. 65 Figure 49 Billboards targeting Workers .................................................................................... 71 Figure 50 Billboards targeting Parents & Shoppers 2 ............................................................... 72 Figure 51 Billboards targeting Parents & Shoppers .................................................................. 72 Figure 52 Billboards targeting Children .................................................................................... 73 Figure 53 Posters for all target groups ...................................................................................... 73 Figure 54 Magazines & News Papers targeting Workers, Parents & Shoppers........................ 74 Figure 55 Magazines & News Papers targeting Children & Parents ........................................ 75 Figure 56 Flyers targeting all target audience 2 ........................................................................ 76 Figure 57 Flyers targeting all target audience ........................................................................... 76 Figure 58 Corporate Webpage for all target audiences ............................................................. 77 Figure 59 Advertising Pillar 3....................................................................................................... 78 Figure 60 Advertising Pillar 2....................................................................................................... 78 Figure 61 Advertising Pillar 1....................................................................................................... 78
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Figure 62 Functional Pillar ........................................................................................................... 79 Figure 63 Bus Stop Shelter 1 ........................................................................................................ 80 Figure 64 Bus Stop Shelter 2 ........................................................................................................ 80 Figure 65 Complements 2 ............................................................................................................. 81 Figure 66 Complements ................................................................................................................ 81 Figure 67 Toy gifts targeting Children ...................................................................................... 81 Figure 68 Successful Marketing Plan ........................................................................................... 83 Figure 69 Functional Structure ..................................................................................................... 84 Figure 70 L-M-J Group of Companies ......................................................................................... 91 Figure 71 Formation Process ........................................................................................................ 92 Figure 72 Go Nuts Donuts Product Range ................................................................................... 93 Figure 73 Branch Network............................................................................................................ 94 Figure 74 Newly Introduced Donuts............................................................................................. 94 Figure 75 Donuts........................................................................................................................... 95 Figure 76 Beverages ..................................................................................................................... 96 Figure 77 Internal Factors affecting Marketing Objectives .......................................................... 99 Figure 78 External Factors affecting Marketing Objectives ......................................................... 99 Figure 79 Process of Positioning ................................................................................................ 107 Figure 80 Competitive Advantage .............................................................................................. 107 Figure 81 Value Proposition ....................................................................................................... 110 Figure 82 Corporate Website Design .......................................................................................... 117
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List of Table Table 1 Selected Consumer Segment Bases ................................................................................. 30 Table 2 Characteristics of Profile ................................................................................................. 31 Table 3 Target Segment/Audience................................................................................................ 33 Table 4 Target Location ................................................................................................................ 33 Table 5 MIS .................................................................................................................................. 34 Table 6 Differentiation Strategies ................................................................................................. 35 Table 7 Differentiation Strategies & Description ......................................................................... 36 Table 8 Positioning Strategies ...................................................................................................... 37 Table 9 Positioning Strategies & Description ............................................................................... 37 Table 10 Go nuts Cup Cake .......................................................................................................... 39 Table 11 Point of Differences (POD's) ......................................................................................... 42 Table 12 Product Life Cycle ......................................................................................................... 43 Table 13 Total Product Concept & Description ........................................................................... 45 Table 14 Internal Factors Affecting Price ..................................................................................... 46 Table 15 External Factors Affecting Price.................................................................................... 47 Table 16 Fixed & Variable Cost ................................................................................................... 48 Table 17 GNWD Cost Estimation ................................................................................................ 49 Table 18 Competitors Price .......................................................................................................... 49 Table 19 Final Cupcake Price ....................................................................................................... 50 Table 20 Price according to PLC .................................................................................................. 50 Table 21 Desired Service Output Level ........................................................................................ 52 Table 22 Factors affecting Channel Objectives ............................................................................ 53 Table 23 Identifying Channel Alternatives ................................................................................... 53 Table 24 Placed Retail Outlets ...................................................................................................... 56 Table 25 Proposed Channel Alternatives ...................................................................................... 58 Table 26 Place according to PLC.................................................................................................. 58 Table 27 Target Audience ............................................................................................................. 60 Table 28 Familiarity Scale ............................................................................................................ 60 Table 29 Favorability Scale .......................................................................................................... 61 Table 30 Communication Objectives............................................................................................ 62
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Table 31 Communication Channels .............................................................................................. 64 Table 32 Promotion Budget .......................................................................................................... 64 Table 33 Factors affecting Marketing Mix ................................................................................... 65 Table 34 The Best Selected Promotional Mix .............................................................................. 66 Table 35 Media type and their respective descriptions on which to promote .............................. 67 Table 36 How to, what time and the frequency to promote.......................................................... 69 Table 37 Related Time according to Target Market ..................................................................... 70 Table 38 Indicators ....................................................................................................................... 70 Table 39 Promotional Activities according to PLC ...................................................................... 82 Table 40 Resources ....................................................................................................................... 84 Table 41 Departments Workload ................................................................................................. 85 Table 42 Target People ................................................................................................................. 87 Table 43 Controls .......................................................................................................................... 88 Table 44 Controls & their Methods .............................................................................................. 89 Table 45 District Population ......................................................................................................... 97 Table 46 City Population .............................................................................................................. 97 Table 47 Internal Factors & Description ...................................................................................... 99 Table 48 Population of Targeted Cities according to Age wise ................................................. 101 Table 49 Population of Targeted District according to Age wise ............................................... 102 Table 50 Population of Targeted District according to Gender wise .......................................... 102 Table 51 Population of married couple, which could be equal to parents in Targeted District .. 103 Table 52 Number of people employed in Sri Lanka ................................................................... 103 Table 53 Expenditure of Sri Lankan Households ....................................................................... 104 Table 54 Income Level of Sri Lanka .......................................................................................... 105 Table 55 Other Segment(s) evaluating criteria ........................................................................... 106 Table 56 Competitive Advantages & Criteria ............................................................................ 108 Table 57 Criteria for Differences ................................................................................................ 109 Table 58 Winning Value Proposition Strategy ........................................................................... 110 Table 59 Marketing Objectives ................................................................................................... 113 Table 60 85% of the target market to reach ................................................................................ 113 Table 61 85% of Target Market to reach .................................................................................... 114
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Table 62 Respective Costs .......................................................................................................... 116
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ABBREVIATIONS
GNWD CSR PLC LMJ MIS
Go Nuts with Donuts Corporate Social Responsibility Product Life Cycle Lalin Michael Jinasena Marketing Information System
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PROPOSAL
To
Gonuts with Donuts
From : Date :
Mohammed Rahmy Haniffa 16 FEBRUARY 2010 Marketing Plan for Cup Cakes to deliver customer value amongst the snack cake segment, keeping in line with strategic aspiration of Gonuts with Donuts.
Subject:
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CONTENTS
MAIN HEADINGS ACKNOWLEDGMENT............................................................................................................................... 1 TABLE OF CONTENT ................................................................................................................................ 2 ABBREVIATIONS .................................................................................................................................... 11 PROPOSAL ................................................................................................................................................ 12 CONTENTS................................................................................................................................................ 13 COMPANY BACKGROUNG ................................................................................................................... 14 MARKET SUMMARY .............................................................................................................................. 18 SWOT ANALYSIS .................................................................................................................................... 22 MARKETING OBJECTIVES .................................................................................................................... 25 MARKETING STRATEGY ....................................................................................................................... 29 MARKETING MIX .................................................................................................................................... 39 IMPLEMENTATION & CONTROL ......................................................................................................... 83 APPENDIX ................................................................................................................................................. 91 REFERENCE LIST .................................................................................................................................. 118
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COMPANY BACKGROUNG
Formation Go Nuts with Donuts is a business, which was the first to open a donut caf, to provide a variety of delicious donuts to customers of Sri Lanka. This is a part of Lalin Michael Jinasena & Co, (LMJ). They first launched their outlet at the ODEL Department stores boulevard food court on the 2nd of March 2009. (Gonuts with Donuts corporate website, 2009) REFER APPENDIX 01& 02 There is also a similar business operating in Philippines, called Go nuts Donuts, where they too offer a wide range of donuts and other snacks to their customers. But GNWD is not a franchise of it. (Go Nuts Donuts corporate website, 2009) REFER APPENDIX 03
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Progression Lalin, CEO of GNWD (2009) stated in his corporate speech, from the day of launch, there have being a high demand for their products, which lead to expand their outlets to various places in Colombo and increase the variety of offerings. REFER APPENDIX 04
NOW Started With 1 Store 3 Delivery Bikes 6 Flavours 1160 Donuts per day Production 36,000 Donuts per month Crew of 15 THEN March 2009 November 2009 8 stores in Colombo 6 Delivery bikes 16 Flavours + Specials 2600 Donuts per day Productiion 80,000 Donuts per month Crew of 62
Figure 1 Then & Now
Source: CEO GNWD Companys Internal Briefing (2009)
Future Is what GNWD wants to achieve in future according to their prediction and business strategy.
LOCALLY TO INTRODUCE A NEW RANGE OF PRODUCTS AND INCREASE MARKET SHARE. Introduce to Outstation cities. To give permission on Operating Franchise.
GLOBALLY To open a Donut Cafe in Maldives. Expand to established Regional Markets.
Figure 2 Future Expansion
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Mission & Vision
To Create "Gonuts with Donuts" as a household brand name for high quality, value for money bakery products.
To beome a "must have" for all our Target Market.
Figure 3 Mission & Vision
Product Range These are the products which GNWD offers to their customers in order to capture value in return.
DONUTS
BEVERAGES
SWEET DONUTS
Figure 4 Product Range
SAVORY DONUTS
SEASONAL SPECIALS
DRINKS & COFFEES
Source: Gonuts with Donuts corporate website (2009)
REFER APPENDIX 05 & 06
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The product needs explains the reasons or motive customer are purchasing donuts:
HUNGER
PARTIES / FUNCTION
Dessert
PRODUCT NEEDS SNACK REFRESH MIND
GIFT
Figure 5 Product Needs
SWEET TOOTH
Source: Compiled by Author (2010)
Marketing Philosophy Used by the company is Marketing Concept, where donuts are produced according to customers needs and wants, these information regarding customers needs are gathered using FACEBOOK, a group with 10,000 members and other sources. Also refer APPENDIX 02 - FORMATION.
Customers
Figure 6 Marketing Concept
Needs & Wants
Integrated Marketing
Profits Through Satisfaction
REFER APPENDIX 07
Source: Kotler & Keller (2006:16)
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MARKET SUMMARY
Industry Structure The industry in which GNWD operates is Confectionary Industry. Industry Structure in which GNWD operates is Monopolistic Competition.
MONOPOLISTIC COMPETITION
Numerous & Large producers such as Fab, Perera & Sons and Barista. Also large number of consumers
Differentiated Products according to Savory, Taste, Branding & Advertising.
Low entry barriers and to exit to industry. Hit and Run policy.
GNWD have some control over the price charged.
Figure 7 Monopolistic Competition
However in terms of product specialization, GNWD is the only donut caf in Sri Lanka, which also could be a Monopoly. (Gonuts with Donuts corporate website, 2009)
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Industry Participants The below participants are the DIRECT competitors of GNWD, where they have a direct impact on activities of the firm.
Fab Pastry Shop Chariot Pastry Shop Perera & Sons
Competitors
Sponge Pastry Shop
Caravan Pastry Shop
Cinnamon Grand Coffee Stop

Figure 8 Competitors
Barista
Indirect Competitors of GNWD, who competes with these participants in terms of other factors as mentioned below.
MONEY
Is a limted factor, customers can be spend on Donuts or other products such as Pizza, Burgers, other snacks. Customers could purchase Cakes, Ice cream, Choclates and other sweets. Customers could visit Pizza, Mc Donalds etc... on behalf of GNWD Other outlets proviing this services such as Dine more, Pizza Hut, Queens Cafe and etc...
OTHER SUPPLIES OF SWEETS
FOOD RETAIL OUTLETS
DELIVERY SERVICES
Figure 9 Indirect Competition
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Target Market1
Business to Customers (B2C)
Children 5 - 14 years Parents
Adults / Office Workers
Shoppers
Target Market
Figure 10 Business to Customers
Business to Business (B2B)
CAFE's
SCHOOL / OFFICE CANTEENS
Target Market
Figure 11 Business to Business
Are the potential customers of GNWD, where they will mainly focus on them and prepare the marketing plan according to their
needs to capture value in return.
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Trend, Growth & Opportunity
TREND Increasing in Fast Foods consumption. Increasing Demand for Product Variety. Increasing in sweets consumpition. Building up Cafe trend Snack trend
GROWTH High Demand for Donuts Loyal customers for GNWD Strong Brand Image GROWTH THROUGH OTHER PRODUCTS.
OPPORTUNITY Increase Product Range / offerings. Online Purchasing / Ordering. Cater to Outstation Market. Find another Target market / customers. (Sugar free donuts)
Figure 12 Trend, Growth and Opportunity
Gaps & Problems
GAPS Limited Product Range / Type (only donuts). Delivery only to a limited area.
PROBLEM Health Care Problem Causes obesity Limited Product Life cycle, Short for Donuts.
Offering are available only in Colombo. Inadequate marketing materials.
limited to one product type. Customers are price Sensitive. Cost Fluctuation
Figure 13 Gaps and Problem
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SWOT ANALYSIS
STRENGTHS + First & Only donut cafe in Sri Lanka to establish. + Strong and Establish brand name. + Managed by Multinational team of industry Specialist. + Consumer Focused. + Outstanding marketing & production technology. + Facebook group with 10,000 members. + Specialized Donuts manufacturer. WEAKNESSES - Unsuccessful cafe trend. - Short product life cycle or life span. - Uncreative Marketing Materials. - Limited Price structure. - Limited Product range. - Low product available.
OPPORTUNITIES * Locally untapped market. * International markets. * Business Franchise operations. * Unlimted confectionary needs. * Online purchasing. * Vertical Integration. * Healthy confectionary.
SWOT
! Cost Fluctuation.
THREATS
! Increasing health concernd. ! Price Sensitive customers. ! Low industry entry barriers ! Local Competition
Figure 14 SWOT Analysis
Source: CEO GNWD Companys Internal Briefing (2009); Compiled by Author (2010)
Strengths First and only caf to specialize and produce donuts to customers of Sri Lanka. Very popular, strong and quickly (9 months) established brand. Managed by well trained and multi skilled set of employees, who work in different trade. Focused on customer needs, which makes it successful and minimize risk of failure.
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Weakness The trend of customers visiting and consuming habitually in cafes is unsuccessful. The sweet products have a short life cycle, mature quickly. Marketing Techniques used is similar and common, so could lead to boredom to see. The products have a limited price range which GNWD has to attach to. There is no variety in product range unless in donuts. Limited availability, only in Colombo.
Opportunities Could focus on countryside cities, where there are potential cities. Could focus on other countries such as Maldives and others. Could give permission for franchise operation, easy way to expand and popularize. Confectionary needs of people are always unlimited, always want sweets. Make possible to make orders online and deliver home, reduces cost. Vertical integration with suppliers could reduce cost of production and cost fluctuations.
Threats People are more concerned about health which reduces consumption of sweet products. Consumers are price sensitive cannot increase price, could decrease demand. Cost fluctuates as import tariffs, seasons, economy changes. Possible threats from new participant as low barriers to enter. Local competition from already well established bakers.
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Analysis & Wrap up
GNWD has quickly & well established in the market with high technology. They also have a good loyal customer base.
However they offer a limited product range of to customers, which is also in maturity stage.
Since there is an endless confectionary needs and GNWD have a good knowledge about the market they could introduce a new product line to their target audience and achieve their objectives.
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MARKETING OBJECTIVES2
These are essential factor for the success since it gives a direction. These are set for Operational level in the organization.
CORPORATE OBJECTIVES
Company Growth
Increase Revenue
+ Maintain daily sales and sales volume according to their budgets. Move to Growth stage in their PLC from the Introduction stage in the life cycle of GNWD. + Improve Brand Awareness and earn good word of mouth
+ Quality and Fresh donuts to be offerd to customers.

+ Increase Availability of donuts to customers
Figure 15 Corporate Objectives
Functional Objectives GNWD could grow in two methods according to ANSOFF Matrix, Market Development by catering to other cities of Sri Lanka and Product Development thats by introducing Cup Cakes to the existing market. (In Authors view point)
Is what GNWD wants to achieve in its life span. These objectives provide a direction for GNWD to move forwards and these
should be measured to check whether GNWD is in the right track by using mile stones. All objectives should be defined properly, time bound and achievable (Kotler & Keller, 2006:37)
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Figure 16 ANSOFF Matrix
GNWD should use these methods.
Also use AIDA3 model to increase sales, revenue, profits and market share.
Awareness
Interest
Desire
Action
Figure 17 AIDA Model
Source: Kotler (2002:637)
Create Awareness to customer about product, formulate Interest to purchase, create Desire and make Action among consumers to consume the product and achieve the marketing objectives. (Kotler, 2002:637)
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Quantitative Objectives
QUANTITATIVE OBJECTIVES
MARKET SHARE STRECTH OR FILL THE PRODUCT PORTFOLIO * Successfully stretch the portfolio by introducing Cup Cakes by early 2010. BRANDING * To increase by 20% in the end of 2011 for GNWD by focusing on other markets. * Increase customer base by 10% by introducing Cup Cakes by 2011. * To increase Brand Awareness by 10% by 2011. * To Increase Marketing Materials by 5% in 2010.
SALES / REVENUE * Increase by 05% for donuts by end of 2011. * To Sell 1.5 Mil Cup Cakes by 2011. * To maintain 20% Profit Margin.
Figure 18 Quantitative Objectives
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Qualitative Objectives
QUALITATIVE OBJECTIVES
BRANDING
* To increase Brand Image in the Target Market by 2012. * To increase brand recalling by innovative Marketing Materials. * Increase Brand Loyalty amoung customers.
CUSTOMER AWARENESS / SATISFACTION / RETENSION * Increase retension by introducing Cup Cakes by 2010 (Product Development). * Increase Awareness by expanding to Outstation by 2011 (Market Deelopment). * Increase Satisfaction by improving quality & availability. TREND SET
Successfully introduce a cafe trend to Sri Lanka and a "Donut with Coffee" trend.
Figure 19 Qualitative Objectives
REFER APPENDIX 08 There are several internal factors4 and external factors5 which affects GNWD while setting and achieving these objectives. REFER APPENDIX 09
4 5
Internal Factors could be the Resources of GNWD, Corporate culture and Staff Aspiration. External Factors could be Customers, Economy, Competitors and Technology.
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MARKETING STRATEGY
For GNWD could be done in a process called STP (Segmentation Targeting and Positioning).
SEGMENTATION
NEED BASED SEGMENTATION SEGMENT IDENTIFICATION
Group customers into segment based on similar charactoristics. Determind segmentation variables for need based group. Determind segment attractiveness based on criteria. Determind segment profitability.
TARGETING
SEGMENT ATTRACTIVENESS SEGMENT PROFITABILITY
POSITIONING
SEGMENT POSITIONING ACID TEST
Create value proposition & positioning strategy. Test segment attractiveness
MARKETING MIX
Figure 20 STP Process
Plan all aspects of marketing mix.
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SEGMENTATION6 According to levels of segmentation, the strategy used by GNWD is Target Marketing, where different products (doughnuts, coffees & cupcakes) are offered to few market segments. (Kotler & Keller 2006 p224)
Consumer Segmentation Bases There are two main variables which GNWD has to considers, which are as follows: I. II. Needs7 Profilers8
Selected Consumer Segment Bases
DESCRIPTORS Geographic Demographic Psychographics Behavioral

Table 1 Selected Consumer Segment Bases
CHARACTERISTICS Regions & Cities Age, Gender, Income and Occupation. Life style Occasion & Benefits
GNWD could use the above bases do identify its target market or the segment since these are bases which describes their customers in a well manner and they are the probable and potential customers
Is where GNWD will identify the overall market and separate them into different group of buyers with similar consumer profiles. (Kotler, 2002:256) 7 A fundamental criterion is according to customers needs. 8 Are the descriptive and measurable characteristics that can be used to differentiate customers.
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Characteristics of Profile BASES

GEOGRAPHAIC
SUB BASES
City & Town Regions & District
CHILDREN
All children from selected Cities & Town. Of all 4 Districts
PARENTS
All parents from selected Cities & Town. Of all 4 Districts
WORKERS
All workers from selected Cities & Town. Of all 4 Districts
SHOPPERS
All shoppers from selected Cities & Town. Of all 4 Districts
DEMOGRAPHIC
Age Gender Family Size
5 14years Male & Female 2 10
22 60 years Mothers 2
20 50 years Male & Female -
5 60 years Male & Female 2 - 10
Income Occupation PSYCHOGRAPHIC Life Style
Above Rs 20,000/=
Above Rs 20,000/= Any job
Above Rs 20,000/= Any job
Student Dependent
Parents
BEHAVIORAL
Occasions
Evening Tea, Snacks & Parties.
Snacks, Evening Tea, Parties & functions.
Snack and Evening Tea.
Snacks, Evening Tea, Parties & functions.
Benefit Sought
Sweet Tooth, Snack & Hunger.
Sweet Tooth, Gift, Snack & Hunger.
Sweet Tooth, Snack, Refresh mind & Hunger.
Sweet Tooth, Gift, Snack, Refresh mind & Hunger.
Table 2 Characteristics of Profile
Selected Cities & Town: Colombo, Kandy, Kurunegala, Dehiwala Mt Lavania and Moratuwa, 4 Districts: Colombo, Kandy, Kurunegala & Gampaha.
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TARGETING9
For evaluating the effectiveness of the segments there are certain factors it should comply with, they are Measurable, Accessible, Substantial, Differential and Actionable. (Kotler & Keller 2006 p246)
Evaluation & Effectiveness of Segments The selected segments are clearly measurable & substantial for GNWD to cater successfully and earn an excellent profit, this could be proved by census and statistics with the evidence as referring to appendix 10. (In Authors view point) REFER APPENDIX 10 The preferred segments are accessible since in which Colombo segment GNWD already successfully caters with donuts, so there will not be any further quandary. As well as in other segments also there will not be any setbacks, because GNWD operate in a monopolistic competition industry. (In Authors view point)
As the target market are Children, Parents, Workers & Shoppers, are completely different in their characteristic, they prefer and respond to different marketing mix, This proves they are differential. (In Authors view point)
According to the facts and figures referred in appendix 10 of SriLanka and the selected segments it endows us with a favorable upshot, which proves us that we could cater to the selected market successfully. This is actionable. (In Authors view point)
In this stage GNWD will evaluate the segments attractiveness and select the segments to penetrate.
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Other Segment(s) evaluating criteria REFER APPENDIX 11 After considering and evaluating other segment(s) evaluating criteria information, GNWD can target to serve the most appropriate segment(s), as they cannot server all preferred since limited resources and not feasible at the present situation. (In Authors view point, 2010). Final Target Market & Location TARGET SEGMENT / AUDIENCE Children Parents Workers Shoppers Moratuwa
Table 3 Target Segment/Audience
TARGET LOCATION Colombo Kandy Kurunegala Dehiwala Mt Lavania
Table 4 Target Location
After GNWD evaluating the segments and selecting the target market, the company has to decide how to serve, the Targeting Strategy. For GNWD the appropriate strategy would be Differentiated Marketing10, and use Product Specialization11. (In Authors view point, 2010)
10
Is a Targeting Strategy in which it will serve several market segments and deign separate marketing mix or offers
for each segment.

11
Is where they cater a specific range of products to all market segments.
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A fine developed MIS12 will provide GNWD with rich details to make effective decision and seek opportunities.
COMPONENTS OF MIS
GNWDs DESCRIPTION
Internal Company Records Operation Finance Manpower Sales & Marketing Marketing Intelligence Competitors
Information gathered from source within the organization. Latest technology and Moderate capacity Moderate financial position High competent team of management High demand & High sales Identify & analyzing information regarding competitors and development in market place. Direct Competitors : Low Indirect Competitors : High
Market Developments Marketing Research
Moderate Is a systematic design, collection and analysis of data relevant to a specific situation faced by company.
Marketing Models
Includes mathematical and statistical or such models used for analyze information. E.g.: Time Series, Elasticity Model etc
Table 5 MIS
Source: Kotler & Armstrong (2006:102)
12
An integrated system consisting of people, equipment and procedures to gather, sort, analyze, evaluate and
distribute accurate & timely information to make effective decision. (Kotler,& Armstrong, 2006:102)
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POSITIONING13 Value Proposition14 For GNWD is as follows:
Value Proposition
Value Proposition
To establish our position as pioneers and leaders in the market by: Creating brand loyalty Making our products omnipresent readily available Constantly improving with new products and promotions
To become a must have for all our target markets.
Figure 21 Value Proposition
GNWD can use different Differentiation Strategies15. They could use the below strategy to execute.
DIFFERENTIATION STRATEGIES Product
SUB VARIABLES Quality, Delivery, Benefits & Characteristics
Personnel
Employee competency, Courtesy, Credibility, Reliability, Responsiveness & Communication. Distribution Channel Coverage, Expertise.
Channel
Image
Table 6 Differentiation Strategies
13
Identity
Is a process where GNWD creates a perception of the offerings in customers mind relative to competitors of GNWD. 14 Refers to the key set of benefits offered relative to competing brand upon which the brand is positioned. 15 Is used to position its brand & identity and differentiate its offerings with its competitors. This is one of the most imperative and critical factor to execute.
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Differentiation Strategies and Description. DIFFERENTIATION STRATEGIES Product Quality High since tasty, hygienic, worth for price, manufacture reputation. Delivery Benefits Free home delivery given to their customers. Sweet Tooth, Gift, Snack, Refresh mind, Hunger & Dessert. Characteristics Variety of products (Sweet, Seasonal & Savory) Personnel Competency Courtesy Reliability Responsiveness Highly trained and multi skilled employees. Friendly employees in GNWD cafes Provide accurate delivery. Respond quickly when customers order, within 2 minutes. Communication They provide information about product, promotional offers & special events. Channel Coverage Have their cafs in major cities of Colombo and deliver in to where ever wanted with in Colombo. Image Identity To establish our position as pioneers and leaders in the market & make the household brand. To become a must have for all our target market
Table 7 Differentiation Strategies & Description
SUB VARIABLES
DESCRIPTION
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GNWD Marketers can follow a several Positioning Strategies, which can be from the following strategies, POSITIONING STRATEGIES o Product * o Product Benefits * o Usage Occasion o Against Competitors * o Price & Quality * o Unique Selling Proposition (USP) * o Product Class o User Class
Table 8 Positioning Strategies
* - USE THESE STRATEGIES
The ideal way of positioning for the GNWD is using a combination of these strategies, so that greater consumers could be captured. POSITIONING STRATERGIES o Product o Product Benefits o Against Competitors o Price & Quality o Unique Selling Proposition (USP) DESCRIPTION Variety, Taste, Quality, Availability. Sweet Tooth, Gift, Snack, Refresh mind, Hunger & Dessert. Product specialization, Variety (savory donuts), Availability. Affordable and Best Go Nuts With Donuts.
Table 9 Positioning Strategies & Description
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POSITIONING PROCESS according to appendix 12 would clearly illustrate how to place their brand and product in the minds of customers as this is a major factor to create loyal customers. REFER APPENDIX 12 Positioning Map16
Figure 22 Positioning Map
16
This also refers to Perceptual Positioning Map, which shows consumers perception of their brands versus competing products
on important buying dimensions.
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MARKETING MIX17
PRODUCT18
Product: - Go nuts Cup Cake
Hazelnut Crunch
Walnuts and crunch swimming in smoky choco-hazel frost over chocolate cake.
Double Choco
Star sprinkled chocolate ganache over chocolate cake.
Mexican Mocha
Crazily delicious whipped Mocha butter cream on top of chocolate cake.
Butter crunch Toffee

Almonds and toffee crunch covering moist chocolate cake.
Cookies N Cream
White chocolate cake with cookie bits over chocolate cake.
Chocolate Peanut Butter

Creamy peanut butter Fudge spread over chocolate cake.
Table 10 Go nuts Cup Cake
Source: Go Nuts Donuts corporate website, (2009)
Product Concept To offer an unlike cupcake to target market in Sri Lanka, which they havent tried out and take cupcake to a different stage. (In Authors view point, 2010)
17
Is the set of controllable tactical marketing tool (Product, Price, Place and Promotion) that the firm blends to produce the response it wants in the target market. (Kotler & Armstrong, 2006:50).
18
Is what GNWD offers to the selected target market for attention, acquisition & consumption that might satisfy their needs and wants
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Product Classification Consumer Product Convenience Product, are low cost product thats immediately and frequently purchased, with little planning and bought on impulse. Brand Name
Figure 23 Brand Logo 2
Brand Logo
Figure 24 Brand Logo
Brand Logo
Packaging & Labeling The cup cakes will come in Single, 6 packs and 9 packs.
Figure 25 6 & 9 Pack Figure 26 Single Pack
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Product Levels
POTENTIAL PRODUCT ** Sugar free cup cakes, Stuffed cup cake, Slider cupcake, Flower cupcake, Mini cupcake & Rose cupcake. AUGMENTED PRODUCT Quality, Delivery, Appearence & variety of recipes EXPECTED PRODUCT Economic, Tasty, Hygenic, Affordable & Variety. BASIC PRODUCT Go nuts Cup cake. CORE PRODUCT Hunger, Refresh mind, Sweet tooth & Dessert.
Figure 27 Product Levels
POTENTIAL PRODUCT **
Figure 28 Potential Product
Source: Google Images, (2010); Compiled by Author (2010)
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POINT OF DIFFERENCES (PODs) Product Variety Tasty Hygienic Availability & Affordable Product Specialized
Table 11 Point of Differences (POD's)
Product Type Imitative Products. This product is new to the GNWD, not to the market. These are also called Me Too products. (In Authors view point) GNWD compnay and their product donuts could be catogorised as a Question Mark with holding low market share in a high growing market, according to Boston Consulting Group Matrix, as referd in the below figure.
Figure 29 Boston Consulting Group Matrix
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At this stage there is high demand for GNWD but low return due to low market share, GNWD has to quickly increase market share or it will become a dog and go out of market. A strategy to increase market share will be to introduce GONUTS CUPCAKES.
Product Life Cycle (PLC) GNWD is in its introduction stage, as it launched its business 9 months ago.
INTRODUCTION GROWTH MATURITY DECLINE
THEORY
ACTUAL
FORECAST THEORY
FORECAST THEORY Peak sales
FORECAST THEORY Falling
SALES
Low
High
Raising
COSTS
High
Average
Average Cost per customer. Raising
Low Cost
Low Cost
PROFITS
Low
High
High
Falling
CUSTOMERS COMPETITORS
Innovators Low High High Moderate
Early Adaptors Growing Number
Middle Majority Stable & begin to decline.
Laggards Declining Number
Table 12 Product Life Cycle
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Consumer benefits19 There are two kinds of benefits:
TANGIBLE
INTANGIBLE
CONSUMER BENEFITS
Figure 30 Consumer Benefits
Source: Lascu, Lindquist & Sirgy (2003:03)
Tangible Benefits20 In-Tangible Benefits21
TANGIBLE BENEFITS Less Costly Gift
Different pack size.

Figure 31 Tangible Benefits
Food - Dessert & Snack
IN-TANGIBLE BENEFITS
Sweet Tooth
Hunger
Mind Refresh
Figure 32 In-Tangible Benefits
19
Refer to those positive factors that the consumers acquire when they purchase and / or consume the product or service. Consumers or people buy the benefits not the products. (Lascu, Lindquist & Sirgy 2003: 04) 20 Are those that are in some sense measurable.(Lascu, Lindquist & Sirgy 2003:04) 21 Are more associated with the feeling that you experience when owning and/or using a product or service.
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Total Product Concept22
Time Psychological Ring Accessory Ring
Basic Core
Figure 33 Total Product Concept
Source: Lascu, Lindquist & Sirgy (2003:04)
TYPE OF BENEFITS Basic Core Accessory Ring Psychological Ring Time

Table 13 Total Product Concept & Description
DESCRIPTION Tasty, Snack & Hunger. Online Product Menu, Within hours delivery & regular Facebook updates. Hunger & Sweet tooth. Saves time, reduces hunger,
22
Refers to the broader view of the goods and service as a sum of their benefits, or its the sum of benefits offered by products or service. (Lascu, Lindquist & Sirgy 2003: 04)
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PRICE23
Factors Affecting Price Internal FACTORS Company & Marketing Objective DESCRIPTION To establish our position as pioneers and leaders in the market & make the household brand. To become a must have for all our target market. Marketing Mix Strategy Product Place Promotion Costs Food cost should not exceed 30% of retail price. Overall rent should be 10% of total revenue. Wastage must be controlled. Advertising budget should be 2% - 5% of revenue. Find out the tax implications when pricing. Must monitor production costs, wastage daily.
Organizational Consideration
Table 14 Internal Factors Affecting Price
CEO and Managements Accountants.
23
Pricing is the amount money charged for GNWDs product, or the sum of the values that customers exchange for the benefits of having/using the product.
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External
FACTORS The Nature of the Market The Nature of the Demand Competitors Cost, Customer expectation Other External factors Economy Government Inflation
Table 15 External Factors Affecting Price
DESCRIPTION Monopolistic Competition Elastic Demand since not an essential product. Unknown, as its confidential information Moderate Favorable Stable Mild Inflation (CCPI December 2009 4.8%)
PRICING PROCESS
Selecting the Pricing Objective Determing demand Estimating costs Analyzing competitors costs, price, & offers Selecting the pricing strategy Setting the Final Price
Figure 34 Pricing Process
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In Step 1, GNWD has to select the pricing objective. Thats To establish our position as pioneers and leaders in the market & make the household brand (Maximum Market Share). (Kotler, Keller 2006 p224)
In Step 2, GNWD has to determine the demand. The product is moderately price sensitive, so an increase in price could lead to a decrease in demand. The Elasticity of Demand for the product in elastic.
Figure 35 Elastic Demand Curve
In Step 3, GNWD has to estimate cost. They have to consider both the Fixed and Variable cost.
FIXED COSTS Caf rents Salary of Employees Administration
VARIABLE COSTS Production Cost of Cup cakes Delivery Cost Advertising Other promotional Campaigns
Table 16 Fixed & Variable Cost
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OVERALL COST ESTIMATION Food cost should not exceed 30% of retail price. Overall rent should be 10% of total revenue. Wastage must be controlled. Advertising budget should be 2% - 5% of revenue. Find out the tax implications when pricing. Must monitor production costs, wastage daily.
Table 17 GNWD Cost Estimation
In Step 4, GNWD will analyze Competitors Cost, Prices & Offers. The costs are unknown as they are confidential information. Prices of cupcakes of competitors are as follows:
COMPETITORS Fab Pastry Shop Perera & Sons Caravan Pastry Shop Barista Sponge Pastry Shop
Table 18 Competitors Price
PRICES 60 55 60 80 50
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In step 5, GNWD will select a pricing strategy. Since its launching a product GNWD has to use new product pricing strategy, in which use Market Penetration Pricing24. Lastly GNWD will set the Final Price for GONUTS CUPCAKE. This is as follows. SIZE Individual 6 Pack 9 Pack
Table 19 Final Cupcake Price
PRICE Rs 55 (Inclusive of VAT 17.5%) Rs 315 (Inclusive of VAT 17.5%) Rs 475 (Inclusive of VAT 17.5%)
Price according to PLC INTRODUCTION GROWTH MATURITY DECLINE
Pricing Strategy Purpose / Motive
Penetration Pricing
Increase Price
Keep price constant level
Reduce Price
To increase sales and make customers try the product.
To increase profit and revenue as increasing demand
Constant demand, so keep price also constant.
As demand decreases, reduce price and make customer buy.
Table 20 Price according to PLC

24
Setting a low price for cupcakes in order to attract new customers, increase market share and achieve its objectives.
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PLACE25
CHANNEL DESIGN DECISION
Analysing Customers desired service output level, needs of place & determine buying requirements.
Establish channel objectivess & strategy.
Identify marketing channel alternatives.
Evaluate & Contract Intermediaries.
Figure 36 Channel Design Decision
25
This refers to the physical space where GNWDs products will be made available for sale for the target market, it
depends on where our target customers are.
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Step 01 In designing the marketing channel, the marketers must understand the service output level desired by the target market of GNWD. There are 5 factors to consider and the buying requirements to satisfy them. FACTORS Lot Size DESCRIPTION Can purchase any number preferred by customer. In individual, 6 & 9 Pack size. Waiting and Delivery Time Delivered with 2 3 minutes take away. Home delivery done with-in 30 minutes. Spatial Convenience Made available in 7 cafs in Colombo and future expansion in other cities. Product Variety Donuts (Sweet, Savory & Seasonal), Cupcakes & Beverages. Service Backup
Table 21 Desired Service Output Level
Home Delivery, Online product Menu, Discussion Forum (facebook)

Buying Requirements
INFORMATION
Product variety, Taste, Quality, Hygenic & Price
CONVENIENCE
Available in major cities and shopping malls for customers.
VARIETY
Donuts (Sweet, Savory & Seasonal), Cupcakes & Beverages.
ATTENDANT SERVICES
Figure 37 Buying Requirements
Home Delivery, Online product Menu, Discussion Forum (facebook)
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Step 02 While setting the channel objective the following factors have to be considered.
FACTORS Product Characteristics Company Characteristics Characteristics of Intermediaries
DESCRIPTIONS Consumer goods Convenience good & Perishable product. Dynamic, Multi Skilled, Innovative.
None since the product is Food & its perishable.
Competitors Channels Environmental Factors
Direct Marketing & also use reputed retailers. (0 & 1 Level) Stable, Less legal constraints & better infrastructure.
Table 22 Factors affecting Channel Objectives
Step 03 In this stage GNWD will identify the different channel alternatives available for them. This is by 3 elements which are as follows:
ELEMENTS
DESCRIPTION
Type of Intermediaries
None since the product is Food & its perishable, so cannot pass to any intermediaries.
Number of Intermediaries Terms & Responsibilities of Channel Members.

Table 23 Identifying Channel Alternatives
None None, since no intermediaries needed.
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Considering the above elements and concluding that no intermediaries are needed, the best channel for GNWD will be level 0, where goods are manufactured and directly sold to customers, no intermediaries in between.
GNWD (MANUFACTURER)
CUSTOMER
Figure 38 Selected Distribution Channel
Distribution Strategy currently used by GNWD is Selective Distribution, where products are placed in few outlets in specific geographical area. But in future they have to make it Intensive Distribution by increasing the outlets, in different geographical areas.
Step 04 In this stage marketers will evaluate the benefits and constraints of all possible marketing channels. Since the product is perishable we cannot take into consideration & select all the channels except Level 0.
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Marketing Channel Flow Physical Flow
Suppliers
GNWD Manufacturer
Transporters
GNWD Cafes
Customers
Door Delivery
Figure 39 Physical Flow
Payment Flow
Supplier
Bank
GNWD Manufacturer
Bank
GNWD Cafes
Customers
Figure 40 Payment Flow
Delivery Person
Information Flow
Supplier
Bank
GNWD Manufacturer
Transporters & Banks
GNWD Cafes
Customers
Delivery Person
Figure 41 Information Flow
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Promotion Flow
GNWD Manufacturer
Advertising Agency
GNWD Cafes
Customers
Figure 42 Promotion Flow
Placed Retail Outlets
District Colombo Crescat Mt Lavania Bambalipity Colupity Nugegoda Nawam Mw Odel Dehiwala** Kurunagale ** Kandy **
Place
Main city / Town Kandy City Center (shopping mall) City / Town
Galle **
City / Town ** Cities and Town to be targeted in future.
Table 24 Placed Retail Outlets
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Delivery Road Map
Door to Door to delivery is done within the area of Colombo city and Dehiwala Mt-Lavania. As shown in the below map.
Figure 44 Road Map
Source: Google Earth (2010)
Figure 43 Road Map 2
Source: Google Earth (2010)
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Proposed Channel Alternatives SHORT TERM Increase Delivery Area Online Ordering LONG TERM Franchise Outlets Increase Outlets Expand to other Cities
Table 25 Proposed Channel Alternatives
Place according to PLC
INTRODUCTION Theory Distribution Strategy Selective distribution Actual More into intensive distribution since high demand
GROWTH
MATURITY
DECLINE
Intensive distribution, by increasing cafs since there are high demand for goods
Selective distribution because there is constant demand
Exclusive distribution since demand is reducing
Motive
To provides the goods according to the demand and create awareness about brand & product.
Since there is high demand, and to make available to all customers and raise sales volume.
Due to constant demand, close non-profitable shops and make use of limited resources.
Since the demand is reducing there is no use of selling in all showrooms.
Table 26 Place according to PLC
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PROMOTION26
MARKETING COMMUNICATION PROCESS
IDENTIFY THE TARGET AUDIENCE DETERMINE THE COMMUNICATION OBJECTIVES DESIGN THE COMMUNICATION MESSAGE SELECT THE COMMUNICATION CHANNELS ESTABLISH MARKETING BUDGET DECIDE ON THE PROMOTIONAL MIX MEASURE PROMOTIONAL RESULTS MANAGE IMC
Figure 45 Marketing Communication Process
26
This refers to the activities that the GNWD can make use to communicate the benefits of the products they offer, persuade the target customer to buy it and to remind about the brand. (Kotler & Keller, 2006:501)
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STEP 1: IDENTIFY THE TARGET AUDIENCE
TARGET AUDIENCE Children Shoppers Workers Parents

Table 27 Target Audience
The above identified and selected target audience is according to the STP Process. Major part of audience analysis is assessing the current image of the company. And the first step of that is measure the target audiences knowledge, using familiarity scale, which is as follows:
FAMILIARITY SCALE Never Heard of Heard of Only Know a Little Bit Know a fair Amount Know Very Well
Table 28 Familiarity Scale
GNWD
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Countering to the people who are familiar with the product can be asked how they feel towards is using the favorability scale.
FAVORABILITY SCALE Very Unfavorable Somewhat Unfavorable Indifferent Somewhat favorable Very Favorable
Table 29 Favorability Scale
GNWD
Concluding and Combining the above two scales, the customers view point is as follows
Favorable Attitude
B GNWD
Low Familiarity
A
High Familiarity
Unfavorable Attitude
Figure 46 Favorability & Familiarity Matrix
GNWD falls in the category of B, where its less familiar to people, but those who know it like it. Now they have to gain more attention from people.
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STEP 2: DETERMINE THE COMMUNICATION OBJECTIVES
GNWD should determine the objectives, of what they are going to achieve of doing a Promotion. COMMUNICATION OBJECTIVE Inform customer : About the Cupcakes & their benefits Persuade Customers: To buy Cupcake frequently
Table 30 Communication Objectives
STEP 3: DESIGN THE COMMUNICATION MESSAGE
Figure 47 Communication Message
This message establishes the point-of-difference of GNWD and to position their brand.
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STEP 4: SELECT THE COMMUNICATION CHANNELS Marketers of GNWD must select the best channels to carry the message to the target audience. COMMUNICATION CHANNEL PERSONAL HSBC Call Center, like wise other effective call centers. Schools with large number of Students. Work with Womens Association, Employees Association & Students Association. Use influentials or believable people. Celebrities, High Ranked Students & Best employee of the year. Develop word-of-mouth referrals. Encourage all customers to share their view and recommend others. Establish an Electronic Forum Such as in Networking Sites (facebook & Hi5) to hold online discussion to share their experience. NONPERSONAL Print Media (News papers, Flyers & Magazine), Broadcast Media (Radio & T.V), Electronic Media (Webpage and E-mail) & Display Media (Billboards & Posters) Sales Promotion Business and Sales Force Promotion (contest for sales reps), Consumer Promotion (gift packs) Events & Experience Sponsor Events & Have stalls on : Childrens Day,
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DESCRIPTION
Focus on a particular group of people. Work through community influentials.
Media
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Valentines Day, Mothers day & May Day (Employees)
Table 31 Communication Channels
GNWD should use ATL (Above The Line), that is mass media promotion, since it affects the personal attitudes and behavior. STEP 5: ESTABLISH MARKETING BUDGET This is a critical factor which marketer has to decide on how much they are going to spend. There are several methods to decide, the best would be OBJECTIVEAND-TASK METHOD. There are several steps to set the budget according to this method. REFER APPENDIX 13, for the process in which GNWD could set the budget. REFER APPENDIX 13 MEDIA TYPE Print Media Broadcast Media Electronic Media Display Media Sales Promotion TOTAL
Table 32 Promotion Budget
RELATED COST 1,014,000 1,389,600 120,000 393,000 85,000 3,001,600
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STEP 6: DECIDE ON THE PROMOTIONAL MIX
PUBLIC RELATION SALES PROMOTION
EVENTS & EXPERIENCES
PERSONAL SELLING
ADVERTISING
COMMUNICATION PLATFORM
DIRECT MARKETING
Figure 48 Communication Platform
GNWD marketers should use a combination of the above platforms to communicate with the target market, since different platforms are used by each target market. Certain factors affecting when deciding the mix as follows, this is important to consider for it to be effective.
FACTORS IN SETTING THE MARKETING MIX Type of Product Market
GNWD CHARACTORISTICS
Consumer Market
Buyer Readiness Stage
Awareness Stage, where customers have no knowledge of product, so high promotion is needed.
Product Life Cycle Stage
Introduction Stage.
Table 33 Factors affecting Marketing Mix
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The Best Selected Promotional Mix
Advertising
Print Media (News papers, Flyers & Magazine), Broadcast Media (Radio & T.V), Electronic Media (Webpage and E-mail) & Display Media (Billboards & Posters) Business and Sales Force Promotion (contest for sales reps), Consumer Promotion (gift packs with 6 & 9 Pack)
Sales Promotion
Events & Experience
Sponsor Events & Have stalls on : Childrens Day & children related activities, Valentines Day, Mothers day & May Day (Employees) E-mail Campaign, Corporate Website Use sales force to support a push strategy, by encouraging customers to purchase by convey the benefits.
Direct Marketing
Personal Selling
Table 34 The Best Selected Promotional Mix
Promotional Mix should focus of PULL STRATEGY27, as this is the most suitable for GNWD.
27
Is Promotional Mix Strategy, which is used to focus on customers and promote on them to purchase the product.
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Media type and their respective descriptions on which to promote

MEDIA TYPE Print Media News papers English Workers Sunday Observer & Daily News Tamil Sinhala Thinakaran Dinamina & Silumina Flyers Magazine English Thinakaran Dinamina & Silumina Targeting all target Audience Workers Business Today Broadcast Media Radio English Tamil Sinhala T.V English Tamil Sinhala Electronic Media Webpage Facebook.com GNWD Corporate Website Online news sites E-Mail Display Media Posters Targeting all target Audience Billboards Targeting all target Audience Targeting all target Audience Workers Kiss Fm Soorian Fm Neth Fm Workers ETV Shakthi Tv Swarnavahini Children Funday Times & Chocolate Children Shakthi Fm Neth Fm Children ETV Shakthi Tv Swarnavahini Parents Yes Fm Shakthi Fm Neth Fm Parents ETV Shakthi Tv Swarnavahini Shoppers Kiss Fm Soorian Fm Neth Fm Shoppers ETV Shakthi Tv Swarnavahini Parents Vogue & Hi Shoppers Vogue & Hi Thinakaran Dinamina & Silumina Children Parents Sunday Times & Daily News Shoppers Sunday Times DESCRIPTION
Table 35 Media type and their respective descriptions on which to promote
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How to, what time and the frequency to promote

MEDIA TYPE Time TIME FREQUENCY Number of Days / Times Print Media Sunday Observer Daily News News papers Sunday Times Thinakaran Dinamina Silumina Flyers Business Today Funday Times Magazine Chocolate Vogue Hi Broadcast Media Kiss Fm 8am 12pm 8am 12pm 8am 12pm 10am 10pm 10am 10pm 1000 flyers 1 Day 1 Day 1 Day 1 Day 1 Day 4 Days, 10 times per day Yes Fm 4 Days, 10 times per day Soorian Fm Radio Shakthi Fm 4 Days, 10 times per day 2 Days, 6 times per day. Neth Fm 2 Days, 10 times per day. February 16, 2010 1 6 480 1 3 144 1 6 960 1 6 960 4 2 4 4 4 1 8 9 6 6 4 6 8 18 6 6 4 960 1 Day 2 Day 1 Day 2 Day 1 Day 2 Days 1 Day 2 1 2 1 1 1 2 6 12 9 12 12 6 9 Every Week. For Months Total No of ads 12 96 18 96 48 48 18000
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ETV
10am 10pm
3 Days, 2 times per day.
144
T.V
Swarnavahini
10am 09pm
3 Days, 3 times per day.
144
Electronic Media Webpage
Facebook.com GNWD Corporate Website Online news sites E-Mail
7 Days 7 Days
1 1
12 12
1 1
15 boards 100 5 Panels
7 Days 1 -
1 2 -
12 6 12
1 12 15
Display Media
Billboards Posters Advertising Panel Functional Pillars Bus Stop Shelter
1 -
4 -
12 12
4800 5
1 Pillar
12
8 Shelter
12
Sales Promotion
Complements Toys
200
200
500
500
Table 36 How to, what time and the frequency to promote
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Related Time according to Target Market
Workers Related Time 8 am 7 pm
Children 8 am 10am & 4 pm 6 pm
Parents 8 am 11 am, 3 am 5pm & 8 pm 10pm
Shoppers 10 am 12 pm
Table 37 Related Time according to Target Market
STEP 7: MEASURE PROMOTIONAL RESULTS This stage is important since the marketers have to identify the effectiveness and the outcomes of the communication investment. The marketers have to set some indicator or parameters to identify this. This is as follows: INDICATORS / PARAMETERS Reach & Frequency Recall & Recognition Persuasion changes Cost per thousands Advertising Efficiency Sales Promotion Efficiency
Table 38 Indicators
STEP 8: MANAGE IMC IMC is a concept of marketing communication that integrates various communication platforms to convey the message, without focusing on one, as mentioned in step 5, a combination will be used.
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MARKETING MATERIALS Display Media (Billboards & Posters)
Billboards targeting Workers
Figure 49 Billboards targeting Workers
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Billboards targeting Parents & Shoppers
Figure 51 Billboards targeting Parents & Shoppers
Figure 50 Billboards targeting Parents & Shoppers 2
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Billboards targeting Children
Figure 52 Billboards targeting Children
Posters for all target groups
Figure 53 Posters for all target groups
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Print Media (News papers, Flyers & Magazine) For Magazines & News Papers targeting Workers, Parents & Shoppers
Figure 54 Magazines & News Papers targeting Workers, Parents & Shoppers
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For Magazines & News Papers targeting Children & Parents
Figure 55 Magazines & News Papers targeting Children & Parents
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Flyers targeting all target audience
Figure 57 Flyers targeting all target audience
Figure 56 Flyers targeting all target audience 2
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Electronic Media Corporate Webpage for all target audiences REFER APPENDIX - 14
Figure 58 Corporate Webpage for all target audiences
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Display Panels Targeting all target audiences
Figure 60 Advertising Pillar 2
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Stalls / Functional Pillar for special events Targeting all target audiences
Figure 62 Functional Pillar
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Bus Stop Shelters
Figure 63 Bus Stop Shelter 1
Figure 64 Bus Stop Shelter 2
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Sales Promotion Complements targeting Workers, Shoppers & Parents.
Figure 66 Complements
Figure 65 Complements 2
Toy gifts targeting Children.
Figure 67 Toy gifts targeting Children
Source: Google Image (2010); Compiled by Author (2010)
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Promotional activities according to PLC
INTRODUCTION
GROWTH
MATURITY
DECLINE
METHODS
Use advertising, personal selling and direct marketing to inform customers about the product
Use advertising, Events & Experience and Direct Marketing
Use advertising, direct marketing and personal selling.
Use sales promotion, direct marketing
EXPENSES
High expenditure has to be done on promotional campaigns.
High promotional expenses have to be done.
Moderate expenses on promotional expenses
Reduced expenses on promotion
PURPOSE OR MOTIVE
To inform and Persuade customers about GNWD.
To inform and persuade customers.
To remind and persuade customers
To remind and persuade customers
Table 39 Promotional Activities according to PLC
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IMPLEMENTATION28 & CONTROL29
The above states the marketing strategy of GNWD to introduce Cupcakes to the market. Then this strategy will be given to the higher authority for review, approvals and feasibility. After approvals, it has to be implemented.
Disciplined Marketing Plan

Figure 68 Successful Marketing Plan
Through Execution
Successful Marketing Plan
For implementation to be successful there should always be proper communication & Coordination with all participants at all levels. STEPS FOR SUCCESSFUL PLAN EXECUTION A. REVIEW AND UNDERSTAND ALL ELEMENTS OF THE PLAN
GNWD should have adequate resources & it should be readily available with them to execute the plan. The resources could be as follows:
RESOURCES Land
DESCRIPTION Suitable for manufacturing Cupcakes. Suitable for locating cafes. Suitable for promotion and display of marketing materials.
Labor
For manufacturing Cupcakes, (specialists) Suitable salesperson Suitable marketers for promotion. Suitable team of management
28 29
Is the process that makes the strategy into action, make sure those action are in line with strategy & the objectives are achieved. Are methodologies that make sure all action in line to the marketing strategy.
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Capital
Finance for setting up and meet other launching activities. Production Machineries
Table 40 Resources
Since this launching process is a major part of marketing plan, all departments has to work aligned for success. As mentioned below.
LOCAL PURCHASING DEPARTMENT (PD) IMPORTS
DONUTS MANUFACTURING DEPARTMENT (MFD) CUPCAKE CEO SELLING & DISTRIBUTION DELIVERY
MARKETING DEPARTMENT (MKD)

PROMOTION HUMAN RESOURCES (HRD) ACCOUNTING & FINANCE (AFD)
Figure 69 Functional Structure
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DEPARTMENT
WORKLOAD
Purchasing (PD)
Purchase quality, exact raw materials according MFD & according to budgeted costs of AFD from local and imports.
Manufacturing (MFD)
Manufacture the right quantity & quality cupcakes according to MKD, use right quantity of raw material according to AFD budgets and communicate with PD regarding raw materials.
Marketing (MKD)
Sell the manufacturing cupcake of MFD the right quantity according to AFD. Do promotional activities as planned & budgeted by AFD. Do welltimed delivery to cafes & home.
Human Resources (HRD)
Recruit suitable and right number of employees for PD, MFD, MKD, and AFD. Motivate & evaluate employees and train if necessary.
Accounting & Finance (AFD)
Provide the budgets to all departments. Provide finance for necessary expenditure and find ways to control cost & waste. Make sure all departments meet up the budgets.
Table 41 Departments Workload
Each department has to contribute to each other and communicate with each department at all times and levels.
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B. DEVELOP AN ACTIVITY LIST FOR THE TIME PERIOD
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C. COMMUNICATE THE PLAN FOR EXECUTION The implementation plan and the activities as mentioned in the above Gantt charts, have to be communicated to the important target people who are in charge in implementing, so that all members will know beforehand what they have to do and contribute towards successful execution. TARGET PEOPLE All 5 Functional Departments Media Advertising Agents Suppliers Call Centers Employees Delivery Marketers
Table 42 Target People
D. STAY COMMITED TO THE PLAN Is an important stage marketers must make sure, the execution actions are in line with according to plan. Its also important to make sure the mile stones are achieved and take action if necessary any variation to keep inline. Make sure all resources are committed and made optimum usage. And the objective of the plan is being achieved. Gantt chart will be a tool, help for this stage where they make sure all the activities are in line with the plan, if not take necessary action. All execution needs evaluations, to check the effectiveness GNWD monitor and control marketing activities.
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CONTROLS
MAIN CONTROL ANNUAL PLAN CONTROL
**SUB CATEGORY Sales Analysis
DESCRIPTION Measuring & evaluating actual sales to sales goal.
Market Share Analysis
Identify the Market Share of GNWD.
Marketing Expense-to- Control ensures that the company is not over Sales Analysis. Market-Based Scorecard Analysis. PROFITABILITY CONTROL EFFICIENCY CONTROL Advertising Efficiency Sales-Promotion Efficiency STRATEGIC CONTROL The MarketingEffectiveness Review Marketing Audit Identify the entire organization efficiency according to various departments. A precise examination of company, determining the problem & recommending a plan of action to improve the performance.
Table 43 Controls
spending to achieve sales. Prepare scorecards that reflect performance and warning signals. Identifies the profitability of selling the cupcake in different outlets. Identifies how efficiency sales force is and make improvement. Identify the efficiency of Advertising Efficiency of sales promotion
MarketingProfitability Analysis Sales Force Efficiency
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CONTROLS AND THEIR METHODS **SUB CATEGORY Sales Analysis VARIABLES Sales Variance Analysis Micro Sales Analysis Market Share Analysis Overall Market Share Served Market Share Relative Market Share Marketing Expense-to-Sales Analysis. Market-Based Scorecard Analysis. Advertising * 100 Total sales Customer Performance Scorecard Stakeholder Performance Analysis Marketing- Profitability Analysis Sales Force Efficiency Do the Analysis method Average number of cupcake per sales person per day. Average Sales per customer Average Revenue per Sales Force Sales force as a percentage of total sales Advertising Efficiency Advertising cost per thousand Percentage of who became aware & read Consumer opinion on the ads Sales-Promotion Efficiency Percentage of Sales sold on deal Promotion cost The Marketing- Effectiveness Review Identify and analyze each departments marketing strengths. Marketing Audit Identify the PEST & SWOT and recommend a plan of action to improve.
Table 44 Controls & their Methods
GNWD can make use of the above control methodology to identify
the variation between the actual results of plan and what has to achieved according to the plan.
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APPENDIX
APPEDNDIX 01 INTRODUCTION Formation L.M.J & Co. is a privately owned company by a Sri Lankan designer called Lalin Michael Jinasena. They have a variety of subsidiary companies which they administer under LMJ group, these are managed by a multinational team of industry professionals, with wide experience in their respective fields. (L-M-J corporate website, 2009)
HOSPITALITY
FURNITURE DESIGN & MANUFACTURE
FOOD & BEVERAGE
GO NUTS WITH DONUTS
L.M.J & Co.
ARCHITECTURE & DESIGN
PROPERTY DEVELOPMENT
ADVENTURE TRAVEL
CONSTRUCTION
Figure 70 L-M-J Group of Companies
Source: L-M-J corporate website (2009)
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APPEDNDIX 02 INTRODUCTION Formation The below diagram illustrates the process which GNWD took to launch its business strategy. This process took 2 weeks for GNWD. By observing overall process we could conclude that its having Marketing Concept as its Marketing Philosophies, where they have done market research (Primary and Secondary research) in their initial stage (getting the idea & experimentation) to get customers requirements. (Gonuts with Donuts corporate website, 2009)
Getting the Idea / Idea Generation
Experimenation / Testing
Create Initial Product Line
Costing & Pricing / Pricing Strategy
Find suitable retail space / Suitable Location
Concept design & Brand Creation
Production process organization & Installation.
Creating Operational policies and procedures
Recruitment + Training of employees
Pilot shop opening / Launch
Setting up Delivery service and Call Center
Figure 71 Formation Process
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APPEDNDIX 03 INTRODUCTION Formation Go Nuts Donuts opened for business on 11 December 2003 for its valued customers with its first flagship theater store at the Bonifacio Global City in Manila, as GNWD they too had a immense success from the very start. (Go Nuts Donuts corporate website, 2009). Go Nuts Donuts also was acknowledged by the local media and consumers as one of the finest tenderfoot in the Philippine food panorama. Go Nuts Donuts generated spontaneous word-of-mouth hysteria and was covered by local and regional media alike. They also faced excess consumer demand that the firm had to portion the number of donuts sold to customers. There were also customer queues waiting for 2 to 3 hours on a daily basis for the doughnuts, this led to black marketers who were reselling the product for up to 3 times its retail price. (Go Nuts Donuts corporate website, 2009). Go Nuts Donuts is one of the most awarded food companies in Philippines, at present they had received over 20 National awards. (Go Nuts Donuts corporate website, 2009).
GO NUTS DONUTS
DONUTS
PIZZA
CUPCAKES
ICE CREAM
FESTIVITREATS
SPECIALS
MADBREWS
Figure 72 Go Nuts Donuts Product Range
Source: Go Nuts Donuts corporate website (2009)
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APPENDIX - 04 INTRODUCTION Progressions GNWD is moving ahead very rapidly with achieving enormous number of success according to their business objectives and strategy within the short period of launch. There are high approvals of the brand and products by the customers. They too have elongated to various places in Colombo to server their valued customers as mentioned below and also they have increased their number of offerings to satisfy customers and capture value in return.
Crescat Nawam Mw Mt Lavinia
Chicken and Cheese

Butterscot ch & Cookies
BRANCH NETWORK
Nugegoda
HSBC Call center
INTRODUCED DONUT MENU
Spicy Tuna
Fashion Bug
M.D Gunasena
Garlic Bread Donut
Lemon
Figure 73 Branch Network
Figure 74 Newly Introduced Donuts
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APPENDIX - 05 - INTRODUCTION - Products Range: Donuts Chicken & Cheese - Filled with chicken, Creamy cheese, Chili
powder, salt, pepper powder and crushed pepper.
NEW
Spicy Tuna - Filled with Tuna fish, crushed tomatoes, chili pieces and powder, pepper powder, salt, vinegar, paprika powder & onion. Garlic Bread Donut - Sprinkled with garlic powder, salt, chili
pieces, dry herbs & olive oil.
NEW
NEW
Strawberry Burst - Dipped in icing sugar & strawberry sauce with

strawberry sauce filling.
Choco Suprise - Sprinkled with chocolate & icing powder filled with
chocolate sauce.
Cappuccino Cream - Dipped in icing sugar and coffee. Choco Profiterole - Dipped in chocolate sauce with custard cream
filling.
Chocoholic - Dipped in dark chocolate sauce. Sweet Cinnamon - Dipped in icing sugar and sprinkled with
cinnamon powder.
Raspberry Delight - Sprinkled with icing powder with raspberry

sauce filling.
Glazed - Dipped in icing sugar & sprinkled with chocolate & mix
vermicelli.
Strawberry and Cream - Dipped in whipped cream with fresh

strawberries.
Hot Pink Love - Dipped in hot pink vanilla icing sugar. Butterscotch & Cookies - Dipped in butterscotch sauce, sprinkled
Figure 75 Donuts
with cookie crumble and cashew powder.
NEW
Choco Nut - Dipped in chocolate sauce with sprinkled roasted

cashew nuts & chocolate icing filling.
Lemon - Dipped in lemon icing glaze & colored sprinklers filled with
lemon flavored butter icing.
NEW
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APPENDIX 06 - INTRODUCTION Product Range: Beverages
Italian Roasted Coffee

Cappuccino Espresso Cafe Latte Iced Coffee Soft Drinks - Cream Soda, Pepsi, Mirinda & 7up. Hot Chocolate
Tea and Marshmallows

Figure 76 Beverages
The above two diagram give you an idea about the offerings of GNWD. There are a wide range of donuts with different taste, flavor, sweet and spicy, catering to different customers needs and requirements. They also provide beverages in order to build up a DONUT WITH COFFEE and a CAF trend. (Gonuts with Donuts corporate website, 2009)
APPENDIX - 07 INTRODUCTION - Marketing Philosophy Marketing Philosophy is a system of approach to sell the firms products to the customers. There are several ways for it. The method used by GNWD is Marketing concept. Regular updates in facebook from customers regarding GNWD are a reliable source of information for catering to target markets wants. GNWD was the first to have a commercial group in facebook in Sri Lanka, and they have got the highest number of members too, so this could help GNWD to be updated in volatile market and fight competition. (CEO GNWD Companys Internal Briefing, 2009).
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APPENDIX - 08 INTRODUCTION - Marketing Objectives QUANTITATIVE OBJECTIVES 1. GNWD is having a major objective of increasing their product range or stretching their product portfolio by introducing Cup Cakes by 2010, to the existing customers and to others potential customers, in order to satisfy them. As well as donuts have come to a stage of maturity in their product life cycle, so GNWD have to introduce a new product to maintain their sales, customer satisfaction. (CEO GNWD Companys Internal Briefing, 2009).
2.
To increase market share by 20% in 2011 they have to find other possible markets, such as focus in outstation in Sri Lanka which is more profitable and where there is potential customers and high residents living in there to purchase the offerings. Such as :
POPULATION DISTRICT Colombo Kandy Kegalla Kurunegala Gampaha Ratnapura

Table 45 District Population
CITIES Colombo Dehiwala-Mount Lavinia Gampaha Kandy
POPULATION 672,743 219,827 59,738 121,286 18,113 150,364 121,370
2,456,000 1,380,000 802,000 1,460,215 2,063,684 1,086,000
Kegalle Negombo Sri Jayawardenepura (Kotte)

Table 46 City Population
Source: City population (2009)
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1.
To increase Brand Awareness by 2011 GNWD could use some proper Marketing Materials such as creative advertising in Bill Boards, Advertising in television, Sponsoring events for childrens activities, other seasonal activities and actively participate is CSR. (In Authors view point)
2.
To increase Sales by 20% end of 2011 they could keep promoting their products more, introduction of Cup Cakes also could lead them to increase in sales. To make sure that they sell 1 million Cup Cakes by end of 2011 they have to assure that the cakes are according to customers wants as donuts and daily target of 1430 should be met, also expansion to other cities could make it possible. To maintain profit a profit level of 20% they should reduce cost and increase sales volume which will be realistic when Cup Cakes introduced and other cities are served. (In Authors view point)
QULITATIVE OBJECTIVES 1. To increase Brand Image GNWD has to be participating in CSR, be ethical in their business activities, have good company policies and do a good marketing campaign to educate customers about their offerings. For brand recalling the marketing team has to create superior marketing campaign. To have some loyal customers GNWD has to maintain quality, provide a variety of products and always keep entertaining customers. (In Authors view point) 2. To retain customer is similar for making customer loyal, so same tactics could be used. Increase Awareness could be achieved by promotion and moving to other cities. Customer satisfaction could be achieved only by giving what customers prefers and require for that a proper market research could do. (In Authors view point)
3.
Introduce Caf trend to Sri Lanka, where people visit caf to have some snacks for their needs, and visit GNWD to have a donut with a cup of coffee. (CEO GNWD Companys Internal Briefing, 2009).
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APPENDIX - 09 MARKETING OBJECTIVES Internal & External factors affecting in achieving the objectives of GNWD are as follows.
Customers
Resources
Economy
EXTERNAL FACTORS
Technology
INTERNAL FACTORS Corporate Culture Staff Aspiration

Competitors Figure 77 Internal Factors affecting Marketing Objectives
Figure 78 External Factors affecting Marketing Objectives
Internal Factors RESOURCES
Threshold Resources
Well
trained
&
experienced
employees,
Customer Focused, Stable finance, Introduce products whenever necessary. Unique Resources Quickly established brand name, Management team with wide experience in other fields, Significant market presence and Outstanding technology. Inadequate Resources
Table 47 Internal Factors & Description
Uncreative
marketing
materials,
Limited
product range, Limited Market served,
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CORPORATE CULTURE Is the mixture of values, beliefs, symbols and myths all companies develop over time and it also shows how the employers and employees feel and act. So when setting and achieving the objectives this has to be considered.
STAFF ASPIRATION Staffs goals or objectives should be met in order for them to be motivated and make them work hard to achieve the corporate objectives. As its the employees who has to achieve the objectives its an important factor to consider.
External Factors Customers are very important factor, they have to be satisfied or delighted in order for GNWD to achieve their respective objectives as they have to sell their offerings to this group of stake holders, if they arent purchasing the product then its a total loss. But GNWD has a good set of loyal customer base, they have to be retained for ever. Economy is the setting which GNWD operate, if there is inflation or a recession it would be difficult to achieve the objective or growth and revenue. According to Sri Lankan inflation (CCPI) rate for November 2009 in 2.8%, this is favorable for GNWD and also there is stable economy even thought there is a World Credit Crunch. Competitor of GNWD isnt much strong compared to GNWD, but there are potential competitors who could come to the market in future because of the attractiveness of market. Technology in Sri Lanka is fine and has all basic infrastructures such as internet, other communication technology for GNWD to do its marketing activities and production in a well manner and achieve its objectives.
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APPENDIX - 10 SEGMENTATION TARGETING POSITIONING (STP Process) Targeting Evaluation & Effectiveness of Segments Measurable & Substantial Population of Targeted Cities according to Age wise BASES VARIABLE TOTAL CITY POPULATION
GEOGRAPHAIC
0 14 years 23.9%
15 -64 Years 68%
65 and Above 8.1%
City & Town
Colombo Dehiwala Mt Lavinia Moratuwa Kandy Negombo Kurunegala
647,100 210,546
154,657 50,320
440,028 143,171
52,415 17,054
177,563 109,343 121,701 28401
42,438 26,133 29,087 6,788
120,743 74,353 82,757 19313
14,383 8,857 9,858 2,300
Table 48 Population of Targeted Cities according to Age wise
Source: City population (2009); Central Intelligence Agency (2009)
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Population of Targeted District according to Age wise

BASES VARIABLE TOTAL DISTRICT POPULATION 0 14 years 15 -64 Years 65 and Above
GEOGRAPHAIC Regions & District Colombo Gampaha Kandy Kurunegala Galle 2,251,274 2,063,684 1,279,028 1,460,215 990,487 482,280 476,269 342,228 374,644 269,614 1,622,592 1,453,017 854,309 988,027 638,308 146,402 134,398 82,491 97544 82,565
Table 49 Population of Targeted District according to Age wise
Source: Department of Census and Statistics Sri Lanka, Population by district, five year age groups and sex (2001:2)
Population of Targeted District according to Gender wise.
BASES
VARIABLE
TOTAL DISTRICT POPULATION MALE FEMALE
GEOGRAPHAIC Regions & District Colombo Gampaha Kandy Kurunegala Galle 2,251,274 2,063,684 1,279,028 1,460,215 990,487 1,151,413 1,007,702 623,966 723,179 481,849 1,099,861 1,055,982 655,062 737,036 508,638
Table 50 Population of Targeted District according to Gender wise
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Population of married couple, which could be equal to parents in Targeted District
BASES
VARIABLE
TOTAL MARRIED (PARENTS)
% OF MARRIED (PARENTS) OF TOTAL POPULATION IN DISTRICT
GEOGRAPHAIC Regions & District Colombo Gampaha Kandy Kurunegala Galle 1,053,168 965,569 577,870 697,227 451,845 46.8% 46.8% 45.2% 47.7% 45.6%
Table 51 Population of married couple, which could be equal to parents in Targeted District
Source: Department of Census and Statistics Sri Lanka, Number and percentage of population by district and marital status (2001:1)
Employment Level Number of people employed in Sri Lanka.
ITEM
HOUSEHOLD POPULATION 000 PERSONS Labor Force 000 Persons Employed Unemployed LABOR FORCE PARTICIPATION RATE % Male Female
Table 52 Number of people employed in Sri Lanka
2006
14,834 7599 7104 493 51.2 68.1 35.7
2007
15,048 7489 7042 447 49.8 67.8 33.4
2008
15,079 7569 7157 394 50.2 67.9 34.3
Source: Central Bank Report (2008:96)
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Expenditure of Sri Lankan Households. DESCRIPTION Mean Household Expenditure Per Month Sri Lanka Urban sector Rural sector Estate sector Rs. 22671 Rs. 37978 Rs. 20620 Rs. 12879 VALUE
Expenditure on food and drink per month - Sri Lanka Expenditure on food and drink as a percentage of income -Sri Lanka Food ratio Sri Lanka Urban sector Rural sector Estate sector
Table 53 Expenditure of Sri Lankan Households
Rs. 8105 31.9 %
35.8 % 27.9 % 37.6 % 52.7 %
Source: Department of Census and Statistics Sri Lanka, Summary Information (2006/7: viii)
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Income Level of Sri Lanka DESCRIPTION Mean Household Income Per Month Sri Lanka Urban sector Rural sector Estate sector Median Household Income Per Month Sri Lanka Urban sector Rural sector Estate sector Per Capita Income per month Sri Lanka Urban sector Rural sector Estate sector
Table 54 Income Level of Sri Lanka
VALUE
Rs. 25,414 Rs. 42878 Rs. 22979 Rs. 15724
Rs. 16494 Rs. 23000 Rs. 15783 Rs. 11287
Rs. 6235 Rs. 9989 Rs. 5713 Rs. 3637
Source: Department of Census and Statistics Sri Lanka, Summary Information (2006/7: viii)
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APPENDIX - 11 SEGMENTATION TARGETING POSITIONING (STP Process) Targeting Other Segment(s) evaluating criteria
CRITERIA Market Attractiveness Size
DESCRIPTION
Comparatively large in accordance with above facts and figures.
Expected Profitability
High, since large market & effective potential target market.
Competitors Competitors No direct competitors as donuts specialist, few indirect competitors. New Entrants Availability of Substitutes Power of Buyer and Supplier Present none. Future possible. High (Other sweets & bakery products) Reasonably high
Company Objectives & Resources GNWD Skills GNWD Resources Product Skilled Suitable to cater, as its sourced from various entities.
Table 55 Other Segment(s) evaluating criteria
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APPENDIX - 12 SEGMENTATION TARGETING POSITIONING (STP Process) POSITIONING Process of Positioning

IDENTIFY POSSIBLE COMPETITIVE ADVANTAGE CHOOSING THE RIGHT COMPETITIVE ADVANTAGE
SELECT AN OVERALL POSITIONING STRATEGY

DEVELOP A POSITIONING STATEMENT COMMUNICATING AND DELIVERING THE CHOOSEN POSITION
Figure 79 Process of Positioning
IDENTIFY POSSIBLE COMPETITIVE ADVANTAGE To build a good relationship with customer, marketers should understand the needs of customer better than competitors and deliver more value. If GNWD is positioning its product using the described positioning strategies, it must then deliver the promised benefits.
Comparative Advantage
Differentiated Advantage
COMPETITIVE ADVANTAGE
Figure 80 Competitive Advantage
For GNWD they should focus on Differentiated Advantage, which produce their offerings differently & better than competitors.
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Competitive Advantages CRITERIA Cost Product offerings Distribution Network DESCRIPTIONS Average but generates high profits Enormous variety, high quality & hygienic. High number of cafs and provide home delivery to customers. Customer Support High, according to members in facebook and loyal customers. Price Specialization Cheap and worth for price Specialized in production and marketing donuts. Brand
Table 56 Competitive Advantages & Criteria
Strong and quickly established.
CHOOSING THE RIGHT COMPETITIVE ADVANTAGE
Out 7 competitive advantages mentioned above, GNWD should choose the ones on which it will build its positioning strategy. It must decide how many differences to promote and which ones.
How Many & Which Differences to Promote?
GNWD should always try to promote more than one benefit to their potential customers, so that all information can be conveyed to the target market and broader segments can be appealed.
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Not all differences are meaningful or worthwhile. Each difference has the potential to create company costs as well as company benefits. Therefore GNWD should select the ways in which it will distinguish itself from competitors. There are certain criteria to be satisfied for the differences to be worthwhile, they are:
CRITERIA Important
DESCRIPTIONS Product Offerings, Price, Distribution Network & Brand these are the factors what customers consider when buying.
Distinctive
Offers a greater variety of products, affordable & available to customers.
Communicable Preemptive
Positioning Strategy should be communicated to customers. These differences are hard to provide by the competitors since it an additional cost to them and dont comprise such resources.
Affordable
The buyers can afford to pay since its low cost against the competitors and worth the price.
Profitable
GNWD could mint profit with it.
Table 57 Criteria for Differences
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SELECT AN OVERALL POSITIONING STRATEGY The consumers purchase goods with the greatest benefits. So GNWD should position their brand on the key benefits as mentioned above 2 steps. The full positioning of a brand is called Brands Value Proposition. There are 5 strategy of winning value proposition. THE SAME FOR LESS MORE FOR THE SAME LESS FOR MUCH LESS
MORE FOR MORE

Figure 81 Value Proposition
Value Proposition
MORE FOR LESS
WINNING VALUE PROPOSITION STRATERGY MORE FOR MORE Give the best quality product and benefits at high price.
MORE FOR THE SAME
Give the best quality product and benefits at lower price.
THE SAME FOR LESS
A similar product for a lower price by giving discount.
LESS FOR MUCH LESS
Gives less quality product for the lowest price
MORE FOR LESS
Give the best Quality product for a lower price.
Table 58 Winning Value Proposition Strategy
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GNWD can use More for More and More for the Same strategy, so that all customers will be given the best quality products with greatest benefits for their price. This will increase customer satisfaction and make customer delighted.
DEVELOP A POSITIONING STATEMENT Positioning statement refers to a statement that summarizes company or brand positioning. (Kotler & Armstrong, 2006: 224).
To establish our position as pioneers and leaders in the market by: Creating brand loyalty Making our products omnipresent readily available Constantly improving with new products and promotions
COMMUNICATING AND DELIVERING THE CHOOSEN POSITION Once it has chosen a position, GNWD must take strong steps and communicate the desired position to the target market. All companys marketing mix efforts must support the positioning strategy. Since GNWD has decided to build a position on larger variety, price, availability, and other service, it must first deliver that position. Designing the marketing mix Product, Price, Place and Promotion involves working out the tactical details of the positioning strategy. According to their promised benefits (More for More and More for the Same) they should produce high quality products and deliver it to target market. Its also important to train and have skilled employees to serve the customer in quality. (Kotler & Armstrong, 2006: 225).
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After designing the strategy it should clearly implement the strategy without any change in plan. Once the company built the image it should carefully look after and maintain it, since it can be broken down in no time.
It must also closely monitor and adopt the position over time to match the changes in the market, consumer needs and competitors actions.
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APPENDIX - 13 - MARKETING MIX PROMOTION STEP 5: Establish Marketing Budget 1. Establish the Objectives. OBJECTIVES To increase Market share by 20% in the end of 2011 for GNWD by focusing on other markets. Successfully stretch the portfolio by introducing Cup Cakes by early 2010 To Sell 1.5 Mil Cup Cakes by early 2011.
Table 59 Marketing Objectives
2. Determine the percentage of Target Market to reach by promotion. 85% of the target market should be reached for the promotion campaign to be effective and success. CITIY TOTAL POPULATION (100%) Colombo Dehiwala Mt Lavinia Moratuwa Kurunegala Kandy 177,563 1,460,215 1,279,028 TOTAL
Table 60 85% of the target market to reach
85 % OF TOTAL POPULATION 1,913,583 178,964
2,251,274 210,546
150,929 1,241,183 1,087,174 4,571,788
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CHILDREN (0 14 Yrs) Colombo Dehiwala Mt Lavinia Moratuwa Kurunegala Kandy

TOTAL (100%) 482,280
PARENTS
WORKERS (50.2%)
SHOPPERS
1,053,168
1,130,140
This could be equal to the value 85% of total population in the table. above
85%
TOTAL (100%)
490,938
50,320
895,193
100,225
960,619
105,694
85%
TOTAL (100%)
42,772
42,438
85,192
95,126
89,340
89,137
85%
TOTAL (100%)
36,072
6,788
80,857
697,227
75,766
733,028
85%
TOTAL (100%)
5,770
26,133
592,643
577,870
623,074
642,072
85% Total of 85%

Table 61 85% of Target Market to reach
22,213 597,765
491,190 2,145,075
545,761 2,294,560 4,571,788
TOTAL 9,609,168 Customers
3. Determine the percentage of aware prospects that should be persuaded to try CUPCAKE. Out of aware prospects (9,609,168), minimum of 40% (3,843,667) of the people should try the cupcake of GNWD. According to estimates 40% (1,537,467) of all people who tries the cupcake would be loyal customers. This is the Objective. (In Authors view point)
4. Determine the number of advertising channels. A combination of channels will be used as explained in the STEP 4, according to necessary or the situation. Especially the non-personal communication channel will be used.
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5. Determine their respective Costs individually.
MEDIA TYPE Total No of Ads Print Media News papers Sunday Observer Daily News Sunday Times Thinakaran Dinamina Silumina Flyers Magazine Business Today Funday Times Chocolate Vogue Hi Broadcast Media Radio Kiss Fm Yes Fm Soorian Fm Shakthi Fm Neth Fm T.V ETV Swarnavahini Electronic Media Webpage Facebook.com GNWD Corporate Website Online news sites E-Mail 1 12 12 96 18 96 48 48 18000 8 18 6 6 4 960 960 960 144 480 144 144 1 1
COSTS Cost Per Ad 4,000 2,000 4,000 2,000 1,750 1,750 2 11,000 3,000 10,000 12,000 8,000 200 200 200 150 150 2,500 2,500 30,000 15,000 48,000 192,000 72000 192,000 84,000 84,000 36,000 88,000 54,000 60,000 72,000 32,000 192,000 192,000 192,000 21,600 72,000 360,000 360,000 30,000 15,000 Total
15,000 5,000
15,000 60,000
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Display Media
Billboards Posters Advertising Panel Functional Pillars Bus Stop Shelter
15 4800 5
15,000 5 10,000
225,000 24,000 50,000
30,000
30,000
8,000
64,000
Sales Promotion
Complements
200
300
60,000
Toys
500
50
25,000 3,001,600
TOTAL COST OF PROMOTION

Table 62 Respective Costs
Since mostly non-personal communication channel will be used. Their respective costs are as above.
February 16, 2010
Author: M. Rahmy. H
117
APPENDIX - 14 - MARKETING MIX PROMOTION Marketing Materials Electronic Media Corporate Webpage for all target audiences
Figure 82 Corporate Website Design
February 16, 2010
Author: M. Rahmy. H
118
REFERENCE LIST
ACADEMIC BOOKS Lascu. D. N, Lindquist. J. D and Sirgy. M. J, (2003), Shopper Buyer and Consumer Behavior, India: Himal Impressions. Kotler. P (2002), Marketing Management, India: Prentice-Hall. Kotler. P and Keller. K L, (2006), Marketing Management, India: Pearson Education. Kotler. P and Armstrong. G, (2006), Principles of Marketing, India: Prentice-Hall.
ONLINE
Central Intelligence Agency (2009), World Fact Book, (Online), available: https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html#top (Accessed on 10-Jan-2010). City population (2009), SRI LANKA, (Online), available: http://www.citypopulation.de/SriLanka.html (Accessed on 10-Jan-2010).
Go Nuts Donuts (2009), Introduction, (Online), available: http://www.gonutsdonuts.com/aboutus_history.php (Accessed on 6-Jan-2010).
Gonuts with Donuts (2009), About Us Company Profile, (Online), available: http://gonutswithdonuts.com/01-06-2009_003.htm (Accessed on 5-Jan-2010).
Gonuts with Donuts (2009), Donuts Menu, (Online), available: http://gonutswithdonuts.com/01-06-2009_002.htm (Accessed on 5-Jan-2010).
February 16, 2010
Author: M. Rahmy. H
119
l-m-j (2009), Lalin, (Online), available: http://www.l-m-j.com/page%201.html (Accessed on 8-Jan-2010).
Google Images (2010), Cupcake Images, (Online), available: http://images.google.lk/images?hl=en&source=hp&q=cupcake&oq=&um=1&ie=UTF8&sa=N&tab=wi (Accessed on 10-Jan-2010) Google Earth (2010), Sri Lanka: Colombo City. JOURNALS Central Bank of Sri Lanka (2008), Annual Report, Sri Lanka: Center of Banking Studies. Department of Census and Statistics Sri Lanka (2001), Census of Population and Housing 2001, Sri Lanka: Department of Census and Statistics Sri Lanka. INETRNAL COMPANY BRIEFING Lalin .M. J (2009), CEO GNWD Companys Internal Briefing, Asian Pacific Institute of Information Technology (APIIT), Colombo.
TOTAL WORD: Acknowledgment: Table of Content: Table of Figure: List of Table: Abbreviation: Proposal & Content: Appendix References & Citations Tables: WORD COUNT
10, 771 147 256 490 440 27 100 3677 752 2764 2118
February 16, 2010
Author: M. Rahmy. H

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Table 62 Respective Costs .......................................................................................................... 116

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GNWD CSR PLC LMJ MIS

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Gonuts with Donuts

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Figure 1 Then & Now

Source: CEO GNWD Companys Internal Briefing (2009)

GLOBALLY To open a Donut Cafe in Maldives. Expand to established Regional Markets.

Figure 2 Future Expansion

Source: CEO GNWD Companys Internal Briefing (2009)

February 16, 2010

Mission & Vision

To beome a "must have" for all our Target Market.

Figure 3 Mission & Vision

Source: CEO GNWD Companys Internal Briefing (2009)

DRINKS & COFFEES

Source: Gonuts with Donuts corporate website (2009)

REFER APPENDIX 05 & 06

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PRODUCT NEEDS SNACK REFRESH MIND

Source: Compiled by Author (2010)

Needs & Wants

Profits Through Satisfaction

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Differentiated Products according to Savory, Taste, Branding & Advertising.

GNWD have some control over the price charged.

Figure 7 Monopolistic Competition

Source: Compiled by Author (2010)

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Fab Pastry Shop Chariot Pastry Shop Perera & Sons

Sponge Pastry Shop

Caravan Pastry Shop

Cinnamon Grand Coffee Stop

Source: Compiled by Author (2010)

OTHER SUPPLIES OF SWEETS

FOOD RETAIL OUTLETS

Source: Compiled by Author (2010)

February 16, 2010

Business to Customers (B2C)

Children 5 - 14 years Parents

Adults / Office Workers

Figure 10 Business to Customers

Source: Compiled by Author (2010)

Business to Business (B2B)

SCHOOL / OFFICE CANTEENS

Figure 11 Business to Business

Source: Compiled by Author (2010)

needs to capture value in return.

February 16, 2010

Trend, Growth & Opportunity

Figure 12 Trend, Growth and Opportunity

Source: Compiled by Author (2010)

Gaps & Problems

Offering are available only in Colombo. Inadequate marketing materials.