Chapter 2. Research tastes and preferences of consumers. market segmentation

Course project

on theme:

“Formation of the marketing mix company”

.

 

Prepared by:

st.gr. ME-23

Kohut I.Z.

Checked by:

Ph.D. in Economics,

Associate Professor Karyy O.I.

 

Lviv 2014

Content

Introduction…………………………………………………………….……….…3
Chapter 1.Market Analysis………………………………………………………..4
Chapter 2.Research tastes and preferences of consumers.

Segmenting the market………………………………………………...8
Chapter 3.Development of product concept and determine its characteristic......16
Chapter 4.Determining the optimal prices of goods on the basis of test marketing
4.1.Determining the relationship between price and demand………………...20
4.2.Calculating the optimal price at which the firm will maximize profits…………………………………………………………………………......23
Chapter 5.Formation of optimal goods distributionchannels………………...….26
Chapter 6.Campaign Planning product promotions……………………………...29
Conclusions……………………………………………………………………….31.

List of references………………………………………………………...………..32

Addition “A”………………………………………………………………………33

 

Introduction

In the conditions of forming of market economy the most important factor of the successful functioning of domestic enterprise is his reorientation on the principles of marketing. Introduction of marketing complex in practice gives an opportunity to form new productive programs, operatively to react on the change of market situation and win in the conditions of competition

Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. There are five competing concepts under which organizations can choose to operate their business: the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept.The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing.

One of the fundamental categories of modern marketing is the concept of marketing mix, which is a set of marketing tools, the sum of which influenced to the target market, with a view to achieve the desired response from its side. The companies should pay much more attention to such areas as sale and productsmarketing, profits increase and improvement of financial situation,product management, in order to reduce prices.

The object of study in the course paper is an company "Medochok" which is engaged in producing and selling organic product- honey. This company offers a different types of organic honey, produced only in organic way, without using any chemicals. Company "Medochok" has high reputation and is also known as the company, which cherish traditions of creating the product.

 

 

Chapter 1. Market Analysis

The company that produces honey "Medochok" started its activity in 2008, and today operates successfully in the market of organic products. The range includes various types of honey, which feature origin, without additives and dyes. Of output is planned to sell the entire territory of Ukraine. Also in the future our company is preparing to spread honey through Europe.

To determine the needs of the customers we use the classification matrix of individual needs. We need to classify the needing of honey for people:

1. The hierarchy of needs - primary (physiological) - refers to the need for food needs, is the physiological needs.

2. According to the factors influencing the need, the need for honey related to age, as it is this requirement to children and adults.

3. Over time parameter refers to the need for ongoing or current, so that the need for honey or to improve brain function in a certain period of time there is a certain period of time and has no prospects after the fun.

4. By the principle of meeting the needs satisfied by a product, that is to meet the needs for pleasure or stimulation of the brain only one product.

5. As the degree of satisfaction of fundamental needs in pleasure or stimulation of the brain relates to the needs fully satisfied because the need is fully satisfied with the consumption of one element without complementary.

6. For the elasticity of demand for pleasure or stimulation of the brain relates to elastic, so that when you change the price of a product that meets our needs change in demand.

7. According to public opinion need to honey- is a need, which can be also referred as need to stimulate the brain, and is related to positive social purposes, since the satisfaction of our needs raised blood glucose levels, resulting in uplift your mood and improve mental activity.

8. The depth of penetration into the public consciousness the need to satisfy part refers to B needs, because it is our need does not fully satisfy the need for food and not being able to satisfy it.

9. The degree of current necessary demand for honey is a normal request, because satisfaction of needs is normal, common social phenomenon.

10. With the cause of the need to satisfy the need is impulsive, as occurs spontaneously as a result of momentum.

11. With the freedom to meet the needs of pleasure or stimulation of the brain related to free needs, so as to meet the needs of any obstacles there.

12. The nature of barriers to meet the needof honey because due to meet this need, which is improving health.

Now it makes sense to go to study marketing medium enterprises, as demand for honey we have examined.

Marketing environment of the company - a set of active entities and forces that operate outside the company and affect the possibilities of marketing to establish and maintain relationships with target customers of the business staff.

For a complete analysis of the market should describe the marketing environment, namely its two components: the microenvironment and macro

Microenvironment – is a force that is directly related to the enterprise, micro- components:

Suppliers - legal persons who provide material resources company.

Consumers - individuals or groups of people who will buy our product to meet your needs. To predict the consumers of our honey include people with predominantly low-and middle -income countries, namely young people and children who want to buy our products.

Competitors - a companies that produce the same products as our business is honey. But in general, the market situation is quite good. The number of competitors in our price range is negligible, the quality of the goods offered by us is good enough.

There are only few companies, that seriously provide honey production in Ukraine. Those are: “Bartnick”, “Ukrainian honey” and “Svit Medu”.

Prices are relatively high, but this is offset by the high quality and that the product is considered brand. Jar of honey with a mass close to ours, ranges from 34-36 USD.

Facilitators - individuals and legal entities that help distribute, promote and sell products on the market. supermarkets ("Auchan ", "Arsen ", " Silpo "), transportation companies, delivering products to the place of sale.

Contact the audience - any group that pays real or may have some influence on it. «Honey investments» - a company that will invest money in businesses, public organization " The streets of the city," which organizes many cultural events under our sponsorship, internal audience contact, which promotes goodwill and friendly relations among employees.

Macro - all the forces that are not subject to control of the company. Each macro factors to a greater or lesser extent, have an impact on our business entails the following macro factors: demographic, NTP, economy, political, economic and cultural.

Demographics: age factor, because the main consumers are middle aged. Affects the company so that the target audience are mainly older consumers and maddle-aged people, as all activities aimed at meeting the needs of those groups of people.

Scientific and technological progress: include new technology, new achievements NTP, use of new technology models that allow to improve the production process. It has a direct impact on the efficiency of the company, because our company " Medochok " is equipped with advanced machinery that stands out rate production, reliability and quality, 60% automated, so workers mainly control system and hardly interfere with the production process.

Every year our company confirms its structural and technological expertise to the supervisory authority, which is the office of veterinary and phytosanitary control of Ukraine. The result of this test is authorized to export our products to the countries concerned.

The economy of the state: the impact on output, as present in 2013 the country is recovering from the crisis, so the output can be increased.

Political: influences through various statutes, laws, expected tax increases, resulting in the production of non-profit, and perhaps also loss. Have a positive effect when the actions of politicians promote the development of enterprises, for example the reduction of taxes, benefits, and of a negative when enforcement " overlapping oxygen " of the enterprise by increasing taxes, creating limitations in activity.

Environmental factors: the product that produces our company, must meet international standards, environmental impact does not result because the effect is material and interferes with the production process, namely, to avoid emissions from production, the environment (water, soil, air).

Culture: the company should consider the level of cultural development of consumer positively influence his habits, promote healthy lifestyles, belong to a class who do not care about their health and well-being of others.

 

Product Positioning

As our product has entered the market few years ago, its main purpose at this point is the need to become stronger and more popular in the minds of consumers. So we create positioning of a product.

 

Quality Price	Low	Avarage	High
Low		“Ukrainian honey”
Average	“Svit Medu”		'Medochok'
High		“Bartnick”

 

After analyzing the products of competing firms by such characteristics as "price and quality" we found an unoccupied position in the market of producing honey that characterize our products as high quality merchandise at a reasonable price.

 

 

Conclusions

During the writing of course project were identified needs of the population in high-quality and relatively inexpensive honey of domestic production. There was conducted collecting of secondary information, which showed that dissatisfied need really existed. To meet this need, was created the enterprise "Medochok", which mission is to meet consumer demand for honey.

In the second chapter, whuch based on the research of tastes and preferences of consumers, was made a segmentation of the market. The company aims are to reach a target market, distributing it to targeted segments of consumers by gender, age, favourite type of honey for each segment of consumers. We also apply a differentiated marketing strategy.

In the third chapter we discussed the range of enterprise operations and characteristics of the goods by the three-level model of F.Kotler. BAlso we worked out the chart of positioning and defined basic advantages above competitors: high quality and average price.

In the fourth chapter, it was determined that the demand for honey is flexible, ie when prices change in demand also change dramatically. We calculated the optimal price for a product company, which is 122,99UAH.The optimal amount of sales -168 units. also defined the maximum profit of the company in the amount of 9382,32 UAH. And built a graph of cost of sales.

The next step was the formation of an extensive network of goods movement and collaboration of agents. There was a graph of the demand for Honey, we also found the break-even point (47 units).

The last chapter was defined communication policy of the created firm, namely select facilities of distribution of advertisement, described facilities sales promotions that an enterprise will use. It describes two types of advertising: television and magazine. Sales promotion is certain for every level.

 

 

References

 

1. Balabanov LV Marketing: Tutorial. - 2nd edition, revised. and add. - K.: Knowledge Press, 2004. - 645s.

2. Garkavenko SS Marketing: Textbook. - 4th edition enlarged - K.: Libra, 2010 - 720 p.

3. Krykavskyy EV, Deynega I. Patora R.Navch. Guide. Marketing product policy - Lviv: 2nd Edition. Publisher of "Lviv Polytechnic ", 2008. - 276s.

4. Guidance for the course of the project " Formation of the marketing mix of the enterprise" of course " Marketing" for students of all learning disciplines 0305 "Economics and entrepreneurship " and the 0306 "Management and Administration" / Sost.: Frost L., E. Krykavskyy V. mowers NS, NE Kuzio, Leonov S., Rykovanova IS, Savchenko YT - Lviv: "Lviv Polytechnic " 2009. - 26 p.

5. Frost LA, Chukhray NI Marketing / for science. eds. Moroz LA: Tutorial - Lviv: "Lviv Polytechnic " (Information and Publishing Center "Intelligence +" Institute training and retraining), 2009. - 244 p.

 

Questionnaire

Hello! The company "Medochok" conducts a survey to determine the demands of consumers in choosing a product as honey. Please answer a few questions. Select the option that is most appropriate for you, or write your own answer.

Do you like honey?

a. Yes

b. No

How often do you use honey?

a. Once a week or more often

b. 2-3 times a month

c. Once a month

d. Every 2-3 months

e. 2-3 times a year

f. Once a year or less

g. Do not use

 

Course project

on theme:

“Formation of the marketing mix company”

.

 

Prepared by:

st.gr. ME-23

Kohut I.Z.

Checked by:

Ph.D. in Economics,

Associate Professor Karyy O.I.

 

Lviv 2014

Content

Introduction…………………………………………………………….……….…3
Chapter 1.Market Analysis………………………………………………………..4
Chapter 2.Research tastes and preferences of consumers.

Segmenting the market………………………………………………...8
Chapter 3.Development of product concept and determine its characteristic......16
Chapter 4.Determining the optimal prices of goods on the basis of test marketing
4.1.Determining the relationship between price and demand………………...20
4.2.Calculating the optimal price at which the firm will maximize profits…………………………………………………………………………......23
Chapter 5.Formation of optimal goods distributionchannels………………...….26
Chapter 6.Campaign Planning product promotions……………………………...29
Conclusions……………………………………………………………………….31.

List of references………………………………………………………...………..32

Addition “A”………………………………………………………………………33

 

Introduction

In the conditions of forming of market economy the most important factor of the successful functioning of domestic enterprise is his reorientation on the principles of marketing. Introduction of marketing complex in practice gives an opportunity to form new productive programs, operatively to react on the change of market situation and win in the conditions of competition

Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. There are five competing concepts under which organizations can choose to operate their business: the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept.The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing.

One of the fundamental categories of modern marketing is the concept of marketing mix, which is a set of marketing tools, the sum of which influenced to the target market, with a view to achieve the desired response from its side. The companies should pay much more attention to such areas as sale and productsmarketing, profits increase and improvement of financial situation,product management, in order to reduce prices.

The object of study in the course paper is an company "Medochok" which is engaged in producing and selling organic product- honey. This company offers a different types of organic honey, produced only in organic way, without using any chemicals. Company "Medochok" has high reputation and is also known as the company, which cherish traditions of creating the product.

 

 

Chapter 1. Market Analysis

The company that produces honey "Medochok" started its activity in 2008, and today operates successfully in the market of organic products. The range includes various types of honey, which feature origin, without additives and dyes. Of output is planned to sell the entire territory of Ukraine. Also in the future our company is preparing to spread honey through Europe.

To determine the needs of the customers we use the classification matrix of individual needs. We need to classify the needing of honey for people:

1. The hierarchy of needs - primary (physiological) - refers to the need for food needs, is the physiological needs.

2. According to the factors influencing the need, the need for honey related to age, as it is this requirement to children and adults.

3. Over time parameter refers to the need for ongoing or current, so that the need for honey or to improve brain function in a certain period of time there is a certain period of time and has no prospects after the fun.

4. By the principle of meeting the needs satisfied by a product, that is to meet the needs for pleasure or stimulation of the brain only one product.

5. As the degree of satisfaction of fundamental needs in pleasure or stimulation of the brain relates to the needs fully satisfied because the need is fully satisfied with the consumption of one element without complementary.

6. For the elasticity of demand for pleasure or stimulation of the brain relates to elastic, so that when you change the price of a product that meets our needs change in demand.

7. According to public opinion need to honey- is a need, which can be also referred as need to stimulate the brain, and is related to positive social purposes, since the satisfaction of our needs raised blood glucose levels, resulting in uplift your mood and improve mental activity.

8. The depth of penetration into the public consciousness the need to satisfy part refers to B needs, because it is our need does not fully satisfy the need for food and not being able to satisfy it.

9. The degree of current necessary demand for honey is a normal request, because satisfaction of needs is normal, common social phenomenon.

10. With the cause of the need to satisfy the need is impulsive, as occurs spontaneously as a result of momentum.

11. With the freedom to meet the needs of pleasure or stimulation of the brain related to free needs, so as to meet the needs of any obstacles there.

12. The nature of barriers to meet the needof honey because due to meet this need, which is improving health.

Now it makes sense to go to study marketing medium enterprises, as demand for honey we have examined.

Marketing environment of the company - a set of active entities and forces that operate outside the company and affect the possibilities of marketing to establish and maintain relationships with target customers of the business staff.

For a complete analysis of the market should describe the marketing environment, namely its two components: the microenvironment and macro

Microenvironment – is a force that is directly related to the enterprise, micro- components:

Suppliers - legal persons who provide material resources company.

Consumers - individuals or groups of people who will buy our product to meet your needs. To predict the consumers of our honey include people with predominantly low-and middle -income countries, namely young people and children who want to buy our products.

Competitors - a companies that produce the same products as our business is honey. But in general, the market situation is quite good. The number of competitors in our price range is negligible, the quality of the goods offered by us is good enough.

There are only few companies, that seriously provide honey production in Ukraine. Those are: “Bartnick”, “Ukrainian honey” and “Svit Medu”.

Prices are relatively high, but this is offset by the high quality and that the product is considered brand. Jar of honey with a mass close to ours, ranges from 34-36 USD.

Facilitators - individuals and legal entities that help distribute, promote and sell products on the market. supermarkets ("Auchan ", "Arsen ", " Silpo "), transportation companies, delivering products to the place of sale.

Contact the audience - any group that pays real or may have some influence on it. «Honey investments» - a company that will invest money in businesses, public organization " The streets of the city," which organizes many cultural events under our sponsorship, internal audience contact, which promotes goodwill and friendly relations among employees.

Macro - all the forces that are not subject to control of the company. Each macro factors to a greater or lesser extent, have an impact on our business entails the following macro factors: demographic, NTP, economy, political, economic and cultural.

Demographics: age factor, because the main consumers are middle aged. Affects the company so that the target audience are mainly older consumers and maddle-aged people, as all activities aimed at meeting the needs of those groups of people.

Scientific and technological progress: include new technology, new achievements NTP, use of new technology models that allow to improve the production process. It has a direct impact on the efficiency of the company, because our company " Medochok " is equipped with advanced machinery that stands out rate production, reliability and quality, 60% automated, so workers mainly control system and hardly interfere with the production process.

Every year our company confirms its structural and technological expertise to the supervisory authority, which is the office of veterinary and phytosanitary control of Ukraine. The result of this test is authorized to export our products to the countries concerned.

The economy of the state: the impact on output, as present in 2013 the country is recovering from the crisis, so the output can be increased.

Political: influences through various statutes, laws, expected tax increases, resulting in the production of non-profit, and perhaps also loss. Have a positive effect when the actions of politicians promote the development of enterprises, for example the reduction of taxes, benefits, and of a negative when enforcement " overlapping oxygen " of the enterprise by increasing taxes, creating limitations in activity.

Environmental factors: the product that produces our company, must meet international standards, environmental impact does not result because the effect is material and interferes with the production process, namely, to avoid emissions from production, the environment (water, soil, air).

Culture: the company should consider the level of cultural development of consumer positively influence his habits, promote healthy lifestyles, belong to a class who do not care about their health and well-being of others.

 

Chapter 2. Research tastes and preferences of consumers. market segmentation

 

Marketing research - collecting, processing and analyzing information and opportunities to develop recommendations based on these data.

They typically include analysis of sales and marketing opportunities, forecasting sales, market supply and demand curves. The results of market research companies use in planning and monitoring activities. Such studies are often accompanied by the collection and search of raw data. A need for this arises either at the final stage of the study, or insufficient number of secondary data to make appropriate decisions.

Any research should be systematic, not random. This is not a one-off measures and a set of actions or processes that involve the collection, recording and analysis. Objectivity is ensured that the information comes from different sources, of course, eager to data were deep and meaningful, because otherwise you can reach erroneous conclusions. The scientific approach is based on objectivity, accuracy and thoroughness. The purpose of this study is to analyze the needs and tastes of consumers, motives acquisition of goods and services. With it, the company " Medochok " seeks to answer a series of questions:

· Do people need a new brand of honey?

· Are they prepared to pay more for a quality product?

· Under what characteristics should be subject to a new med?

· Size and weight it is advisable to produce a unit of honey?

· What most affects the decision to purchase honey?

To get some answers to questions imputation we conduct a survey among starshohopidlitkovoho age and older people, including pensioners, because they consume the most honey. For this questionnaire was developed, the required number of respondents - 40-50 people.

After the survey, we present the analysis of the results.

 

At the picture 2.1 shows us the people, who like honey.Among the respondents, most people like the product(83%), which means that they can be considered as our potential clients.

 

Pic.2.1 Number of people who like honey

 

Picture 2.2 Shows us the favorite kinds of honey according the taste of potential buyers. We can see that most respondents prefer Flower honey (47%), the second place is for Liquid honey (26%). This means, that we should product enough of these two kinds of honey and develop the production system.

Pic.2.2 The buyers favorite kinds of honey

 

On picture 2.3 we can see the frequency of using honey. The biggest part of respondents use honey 2-3 times a month (31%), the next result was 27%- this is the part of people, who use honey once a month.

Pic.2.3 The frequency of using honey of potential buyers

 

Picture 2.4 shows us the popularity of our product. The result is very good – almost 80% of respondents have tried or used our product. That also means that we can make it even more popular, using parts of SMC.

Pic.2.4 The popularity of honey ‘Medochok’

Picture 2.5 is very informative. This picture shows us the real feelings of respondents towards our product. As we see, our cuatomers totally agree, that iur product has got high quality and is well build. But we also can see that they are not definitely sure, that ‘medochok’ is a brand, they can trust as well as they thunk that our product is quite expensive.

Pic.2.5 The opinion about honey ‘Medochok’

Picture 2.6 informs us about the customers attitude towards our product. Most respondents (37%) admit, that ‘Medochok’ is a minor improvement of the product, that they used before.

Pic.2.6 The discription of needs

This picture shows us the total reaction towards ‘Medochok’.the answer of most respondents was that the product is very good (37%), answers ‘fair’, ‘good’ and ‘excellent’ are almost on the same level, which showsthe great attidude of buyers towards our product.

Pic.2.7 Reaction to product

Picture 2.8 shows us the level of influence on the potential buyers. We can see, that most respondents answered, that nobody influences their buying decision (70%).

Pic.2.8 The influence on potential buyers

From this pucture we can see that the main places for buying honey are: special shops selling organic products(32%) as well as stalls in the market (30%) and supermarkets(24%).

Pic.2.9 The main places of buying honey

 

Picture2. 10 shows us that within their budget, 43% of respondents will be somewhat interested in buying our product, and 27%- will be extrmely interested.

Pic.2.10 The interest on buying honey if it was within potential buyers budget

From picture 2.11 We can see that our main rivals are ‘Ukrainain honey’ and ‘Svit medu’.

Pic.2.11The popularity of rival brands

 

 

Picture 2.12 show us that within potential buyers there are 53% of women and 47% of men.

Pic.2.12 Gender of potential buyers

 

From picture 2.13 we can jump into conclusion that our main audievce is people from 26-45years group(46%) as well as 46-and over years group(34%).

Pic.2.13 Age group of potential buyers

 

Picture 2.14 shows the income level of potential buyers. We can see that the main group of respondents got the income 1000-2000 USD (53%).

Pic.2.14 Income level of potential buyers

 

 

This questionnaire helped us to create the segmentation of market to our product. Due to the results of questions, our audience is built out from two age groups: 26-45years group and 46-and over years group,and is created mainly out of women. Consequently, 'Medochok' will focus the production on Flower honey - according to popularity of this kind of product.