A Marketing Analysis Of Pipers Crisps Marketing Essay

A Marketing Analysis Of Pipers Crisps Marketing Essay A SWOT analysis is a useful approach; it helps to examine a business overview position in relation to its internal and external environments. A SWOT analysis is and how it can be used to assess and plan for business developments(Book 1 what is a business PG 30) From the SWOT analysis; the human resource management, accounting and finance, and marketing functions need to be strengthen. There is no clear organisational structure within the business. The accounting function seems to be lacking clear information on pricing and areas to sell their products. The marketing function seem not to have a clear marketing strategy, as there are no clear lines for targeting customers or promoting the crisp brands. How to strengthen Piper Crisp: Human resources function- Clear organisational structure Accounting function- Set price for their products with more places to sell their products nationally and internationally Marketing function- Needs a clear marketing strategy with co-ordination, involving the 4 Ps price, product, promotion and place to improve the marketing targeting Q B. Piper crisp is a small business and its less likely to have a formal organisational structure. However, it will have its own characteristic culture. Two examples are from Drennan 1992, who proposed there are 12 key factors that shape the culture of a business; the influence of a dominant leader the vision, management style and personality of the founder or leader in a business often has a significant influence on the values that the business tries to promote (Book 1 What is a business PG 47) Having a strong idealistic leader is a common factor Pipers Crisps will have such a defining culture. This is illustrated in the case study by A Albone refusal to sell his crisps for Harrods and Prà ªt a Manager because of his ideals. The second factor that will influence the culture will be its goals and belief goals, values and beliefs reflected in objects, actions and language, that is, in Trice and Beyers symbols (Book 1 what is a business PG 47). The employees will have a common goal and belief within their company. This is showed in the case study by Pipers now creates special packets that include an Eastern Airlines jet in the picture on the front along with other subtle plugs for the airline (ECA PG 9) Piper crisp having a strong leader is where the culture will evolve from, he stands up for his ideals and he is not easily swayed by money or more business, this is showed by him turning down business from Harrods, Prà ªt a manager and major supermarkets. Question 4 Marketing function The marketing mixes are a combination of price, product, promotion and place that help to deliver a product in a successful approach to customersMarketers can influence this positioning by manipulating the marketing mix (Book 4 An introduction to marketing PG 16). Piper crisp does not have a very clear marketing strategy as they are the most expensive crisps on the market. Plus they have limited places to sell their crisp. However relationship marketing through promotional communication seems to be used to attract and keep customers. Francis Buttle 1996 theorized that products today are generally the same, thus its hard to find a clear difference. Product quality has become generally high and businesses have found it increasingly difficult to compete on superior quality alone as most competitors are able to offer similar quality. This is forcing businesses to seek competitive advantage in other ways (Book 4 An introduction to marketing PG 19) Piper crisp is achieving this marketing relationship by not selling in normal supermarkets and turning down well-known businesses to promote their own brand of high quality crisps, creating brand loyalty by stimulating the public awareness by not selling out. This is demonstrated in the newspaper article entitled: The rural revolution by Gareth Chadwick. The Independent Sunday, 20 March 2005 Pipers crisp can increase sales by increasing the use of free publicity of newspapers, media coverage and the internet. This can be achieved by using the internet to promote public interest at a national and global scale to sell their high quality products. Thus amplifying the issues of being a small countryside company trying to take on bigger companies, hopefully this will gain public support to purchase their crisps which would be indicative of the publics ongoing support and solidarity. This is showed in the chart below. Figure 4.4 .The promotional mix (Source: Blythe, 2001, p. 175, Figure 9.3) Q. B To develop a profitable relationship; the internal (Micro) and external (Macro) environment shows a marketing relationship that suggests that Piper crisp is focused on the lifetime value of customers and suppliers. From the case study These suppliers all have a story to tell and we tell it on the packets. Its a kind of joint branding, said Albone. We built our business on our relationship with suppliers (ECA PG 9). This shows that the Biggleswade Company and the Fiaz family are local suppliers and are part of the crisp branding. By building long-term relationships with a smaller number of suppliers they can ensure reliability of supply, both in terms of quality and delivery (Book 4 An introduction to marketing PG 26) The customers are also having a long term marketing relationship with Piper crisp. This is showed in the case study. He argues, undercut his core of original customers; those who backed him in the early years. These are the people who helped me and helped my business (ECA PG 9). This shows that Piper crisps values their customers opinions. Figure 2.1 shows this relationship Customers/ Eastern Airlines Pipers Crisp Biggleswade Fiaz family Q. C From Piper crisp SWOT analysis; two pressing human resources problems are according to Fowler 1996. There are no clear organisational structure in place which includes policies and aims. Secondly, Piper crisp must have the right staff in the right areas of the business, especially if there is a shortfall of quality people to hire. To run a successful business everyone must knows their area of reasonability. Different functions are responsible for making different aspects of the business happen, but have to work together so that overall objectives can be achieved (Book 1 What is a business PG 59) Two problems the accounting and finance function faces are; there is not a standard selling price in the stores for their crisps, this is the basis of accrual accounting; the gross profit The idea is that each sale generates a profit which equals the sale price less the cost of whatever was sold (Book 3 An introduction to accounting and finance in business PG 37); the function has no idea what their products actual selling prices are in the stores. Secondly, places to sell their crisp are limited because A Albone does not want to sell in certain place for example; super markets I dont want to sell to supermarkets, nor produce own label crisps, (ECA PG 9) Question 5 The term power is used to identify an action that someone would not necessarily do without being told or promised something in return. Power, in the human context, has long been recognised as the ability to make someone do what they otherwise would not (Book 5 Different ways of looking at business PG 42). According to Watson, 2001, pp. 322-3, there are 3 dimensions of power. In Piper crisp there are 3 dimensions of power An interpersonal dimension An organisational-structural-cultural dimension A societal-structural-cultural dimension. The interpersonal dimension face of power is on a personal one to one level, this is showed in the case study by R. Lake persuading A. Albone to make crisp for his airline. Although A. Albone said no initially, but it still happened- Richard Lake who owns Eastern Airlines, he says. He wanted us to make Eastern Airline crisps. I said no- Pipers now creates special packets that include an Eastern Airlines jet in the picture (ECA PG9) The organisational-structural-cultural dimension is about the organisational relationships within Piper crisp company. A. Albone is the managing director and also 1 of 3 founders of Pipers crisp. Thus A. Albone will manage the company as he sees fit and his employees will follow his instructions. Plus there are 2 other men that help to invest money to form Pipers crisps. However its A. Albone decisions not to sell to Harrods and Prà ªt a manager. This would have increase sales within the company thus increasing the return on the 2 men investments, selling to the Prà ªt a manager or Harrods did not happen. This is showed in the case study- despite the personal invitation from the nations most famous grocer to produce branded crisps for one of the worlds most famous stores, 44-year-old farmer Alex Albone politely declined and Albone heads the sales team of three (from a staff of 15) (ECA PG 9) The third face of power is the societal-structural-cultural dimension; this involves society. This is when people or groups in society exerts power on someone or the company to do something they would not necessarily have done, this also can be reversed, this is illustrated in the case study by Piper crisp customers. Their customers are disempowered; they have to buy their crisps in certain locations and not readily available in supermarkets because of Pipers crisps decisions not to sell to major retailers. Selling via the likes of Tesco or Sainsburys would also, he argues, undercut his core of original customers; those who backed him in the early years. These are the people who helped me and helped my business. If I sold in the supermarkets it would undermine the value of the brand.(ECA PG 9) Q.B PEST analysis stands for political (P), economic (E), social (S), and technological (T) analysis and describes a framework of external environmental factors. I am going to use this model to discuss Globalisation, Technology and Networks in Piper crisp Globalisation- is term the expansion of business activities It can be defined simply as the expansion of economic activities across political boundaries of nation states (Book 5 Different ways of looking at business PG 32). This is the most important trend. P. In the present; Piper will have political support being a small countryside employer. This is showed by Pipers receiving a grant fund to be started teamed up with two friends to invest  £100,000 plus some grant aid to set up Pipers. (ECA PG 9) In the future Pipers should be able to expand into other countries as there is improved free trading and reduce taxations within the UK and EU borders for small businesses. E. In the present Pipers is economically stable as they are making a profit Last year he saw pre-tax profits of  £80,000 on a  £1.3m turnover. This year he is looking to sell £2m worth of crisps (ECA PG 9). In the future Pipers is looking to increase sales to  £2 million, this can be archived by increasing exports to Norway and Ireland. S. In the UK society we like to eat lots of junk food We are a nation of snackers. (ECA PG 9) In the future this concept is a good working model and Pipers should be able to use this concept in different countries. T. Pipers is a small countryside employer. Piper is very traditionally based Provenance is very important to us. (ECA PG 9) In the future there is room to improve with new machinery for faster production and the use of the internet to market their products. Technology- Is the development of systems to indicate improvement; this can also be information the development and growth of technological innovation which simplifies the production process (Book 5 Different ways of looking at business PG 17) P. In the present Pipers are using the newspapers to gain public support about their issues of being a small town manufacturer taking on the big chains in Harrods and Prà ªt a manager I dont want to sell to supermarkets, nor produce own label crisps, (ECA PG 9) This will be a local political debate about the support of small enterprise. In the future if Pipers continue to view their issues via the internet and mass media coverage this might be a national political issue Business is booming again in the countryside but it needs more support if it is going to continue to grow The Independent Sunday, 20 March 2005. E. In the present Pipers will more likely be using information technology, to calculate their exports and accounts Last year he saw pre-tax profits of  £80,000 on a  £1.3m turnover. (ECA PG 9) In the future this can be improved with new software for more timely and accurate information. S. In the present, Pipers is using also using information technology to market their products to society. In the future the internet and mass media can be used more to target consumers. T. In the present, Pipers might be using airplanes and trucks to distribute their products locally and internationally it means Pipers crisps are available across the UK (ECA PG 9) In the future; Pipers might be using more airplanes to distribute their product nationally and internationally because it adds greater value or return to the business. Networks- are used to describe flexibility of teams or smaller divisions within business for a business to be flexible and manage quick responses without tying up resources (either assets or people) that are needed for other functions (Book 5 Different ways of looking at business PG 29) P. In the present, Pipers does not have much flexibility in dealing with political issues, a tax increase on small businesses might be detrimental to Pipers financial overview But rural businesses make a surprisingly healthy contribution to the overall performance of the UK economy (ECA PG 9). In the future, Pipers might be able to pressure governments, if the company increases in size and is large enough to cause mass unemployment, by ceasing operations in a certain country or town. E. In the present, Pipers have a profitable relationship with their suppliers. They are part of the crisp branding These suppliers all have a story to tell, and we tell it on the packets. Its a kind of joint branding (ECA PG 9). In the future, pipers might want to buy these small suppliers to secure the branding rights and increase the efficiency of the supplier chain. S. Presently, Pipers is using their brand to create loyalty from customers. In the future Pipers might have a reward scheme or promotional cards to buy crisps at discount prices, thus reducing the need for general marketing. This will provide Pipers with a database of customers names and addresses. T. Currently, Pipers is using information for marketing and sales. In the future this can be improved with new software and by the use of internet technology to increase sales. Word count: 2489