John and Evans, also plan to sells direct to consumers. Thus they have to use the method of 0 – level distribution channel, this means that costumers buy Camborne ice cream from Camborne Ices store its own. The company can operate company – owned stores or franchise stores in supermarkets, shopping malls, nearby school and college campuses, big streets, trading and tourist areas, etc. where people shopping, hang out frequently. The nearer the stores locate to their costumers, the more convenience they bring to. And when people feel convenience, they are willing to purchase the products.
3. Setting the price of the product on the light of the organization’s objectives and market conditions:
Price is the cost of the product paid by consumers. This is the only element in the marketing mix that generates revenue for firms. In order to generate revenue, Camborne managers need to consider factors both internal and external to the company. Internal factors take the form of marketing objectives, the marketing-mix strategy, and production costs. Meanwhile, external factors to consider are the target market, product demand, competition, economic conditions...
3.1 Internal factors:
3.1.1 Marketing objectives:
Camborne Ice’s objectives are to expand, survive and increase business in Vietnamese market by their good quality organic ice creams. So the company should have an appropriate pricing strategy to increase sales and make a strong market position while it still consistent with the premium position of its products.
3.1.2 Cost aspects:
Cost to produce must be taken into account before set up the product price. For example, the total cost (include production, distribution and staffing cost) per unit for 500ml ice cream tub is about VND27000, spending approximately 44% in basic price to retailers. Any change in cost of production such as skim milk, chocolate covertures, etc, cost involved in transportation or in advertising and promotion can much affect to the revenue of company because company can not change the price urgently. Understand cost involved in production not only helps company control and cut costs, but also guild to set the right price for products. The company also study about the production costs of competitors and know how they set the price for their products, from then company managers can decide the appropriate price.. For example the production costs of Kido’s in 2004 and 2005 (BVSC, 2006), a competitor of Camborne:
3.2 External factors:
3.2.1 Market and demand:
The total turnover of the ice cream market in Vietnam (2004) was VND 667bil and the market was expected to grow 15-20% per annum. This will be a great opportunity for company. However, when expanding in Vietnam, Camborne Ices is the newcomer and has a strong competition from some competitors. Until 2005, Kido’s is the biggest ice cream company in Vietnam (45,8%), Vinamilk and Thuy Ta is two second largest companies with 20,8% market share. In the high quality ice cream, Kido has more than 60% of market share (BVSC, 2006), but this market is still low, compare to revenue of other products.
(BVSC, 2006)
3.2.2 Competitor’s pricing strategy:
Competitor’s price strategy also affects the prices and promotional strategy of company. People directly relate price with quality, however, it must be consistent with the position of company’s products.
Price comparison of some premium ice cream brands in Vietnam (2008):
3.3 Pricing strategies:
Camborne Ices is a premium product that has substitutes available in Vietnam, such as Kido’s Premium, Wall’s, Fanny’s, Monte Rosa… and other private and local brands. Price is set in order to Camborne Ices’s will economically affordable to costumers. In addition, the company should use psychological pricing, all products prices ends with VND500. This makes the costumers feel they are receiving a good value for their money.
Pricing is also elastic due to the competitive market. Costumers may buy different product if the price of that product is better. This is one reason why Camborne ices should use competition – based pricing, when determine what price for their products will be. Basically, major competitors for Camborne Ices, such as Kido’s Premium, Monte Rosa, or Wall’s, set their price are not very variance. Camborne ices, which provide premium ice cream products and emphasize product quality, should sell its products with price range from moderately-high to high-prices but equivalent, or a bit higher than competitor’s This helps to positioning their products, grow up and maintain the company’s portion of the market share.
Compare some of other competitor prices, the price of Camborne Ices ( for 500ml take-home products) should be in the pricing line of market price, which from VND55,000 to VND60,000.
4. Promotional activities to achieve firm’s aims for the target market:
The major elements of promotion mix include advertising, personal selling, sales promotion, direct marketing, and publicity. However, Camborne Ices, when plan to expand in Vietnam, has a marketing budget is using below-the-line activities such as sale promotion, direct mail to the trade, publicity and other of marketing communication mix elements…
4.1 Sale promotion:
Sales promotions for example includes free samples, discount, rebates, coupons, contents and sweepstakes, premiums, scratch cards, exchange offers, early bird prizes, etc.
Free samples are a good marketing tool for company to promote and push its products to the market. The company can create some kiosk providing free samples at shopping center. By this way, the costumers can directly have experience about actual physical products (Abingdon, D.2006). People, also, like to get something for free, and do not refuse to try the product. The closer the costumers can get to products, the greater chance to sell products to them.
In order to attract and make retailers work harder, it is necessary to company to offer discount and allowances. Because retailers are the ones who to be close to the costumer, they always choose to carry and sell the goods which most satisfy their costumers. As a result, when company can make retailers order high volume also means increase in revenue and costumers
Another way to find and sell more costumers is trade shows. With an attracting design, creating game for costumers, and should have some discount products, even at a half price, the company can get people stop and buy.
The company can, also, create its own contests. By creating contests, it will help you gather names and marketing information from those who take part in. What‘s more, it helps to build company recognition, make a public awareness many other promotion opportunities (Abingdon, 2005). For example, a company contest could be “name the new product” contest. Invite costumers to name the new product and give a prize for the winner. This can catch high public interest and make Camborne Ices friendlier in costumer’s mind. When the company becomes friendlier to costumers, they will buy company’s products. The winning idea can be used in future advertising activities of company.
4.2 Public relations:
Camborne Ices planning to launch their brand, it is better to them to create a buzz. It will cost much less than advertising. For example, sponsor in community service is not only a powerful building image strategy, but also a great advertisement. It creates a good relationship with local community, a good and trustworthy feeling in costumers (Kotler, P.2003). Company could raises fund for a marathon for cancer research, and provide free product and T shirt for runners.
Through its website, Camborne provides contacts for those customers who will be in need of any information from the company. In this way Camborne can create a mutual relationship with its customers and ensure that it serves the wishes and demands of its customers.
The company also should develop a well integrated communication strategy with some Protecting Costumer Association. This can inform and educate people to use organic products and also guarantee for their products. By this way, the company will successfully in its promotion at the same time.
5. Different sorts of marketing mix (4P’s) and the additional elements of the extended marketing mix
Marketing mix is a major concept in modern marketing and involves practically everything that company can use to influence consumer perception towards its products, so that consumers and company objectives are attained,
Four basics P elements of marketing mix are: Product – the element which makes profit to organization. It can be physical goods or service but must be produced to satisfy consumer needs and wants. The second is Price – the cost of the product paid by costumers. This is the element that can generate revenue to company. Thirdly is Place – where and how products will be distributed to the costumers. Last but not least, Promotion – the tools are used to communicate firms, intermediary and end users, persuade costumers purchase for products.
One of extend element marketing mix is People, which include all people, directly or indirectly, that are involves in the business: Employees, managers, sale forces, and consumers… (marketingteacher, 2008). This is the most important element of any service. All people can affect the business. For example, the product delivery person’s task is delivery the product, a part of selling products-making profit for company. The marketer is the one who identifying the needs of costumers, create products and making plans to sell products to them.
Another extended marketing mix element is Physical layouts (The Times 100 website, 2008)-which refer to the interaction, tangible parts or the representation of services or products. Because of the high – standing and unique quality of Camborne Ice cream, the costumers expect not only the high quality of product, but also an attractive package. The Camborne Ices cream store or franchise store (company plans to sell directly to costumers) must be at high level of presentation and modern as consumers expect. The product and service is not only in quality, it also have to bring the performance, the added value in its own.
One another extended element is Process – an essential element to business. All activities need process in order to archive an outcome ( marketingteacher website, 2008). For the company, when expanding into Vietnam, it need to implement marketing planning to gain market share, and then make profit. In addition, this element is more necessary to company when they plan to sell directly to costumer. It helps to see the costumer experiencing an company’s offering: the company offer an out-standing products to costumer and feedbacks could be taken,. And then the alternative will be placed to the market…
6. Recommendation on marketing mixes:
In order for the company to create a product for customers, the company must find out what customer want. Also, the company will need to know what segments of the market to target. Product segmentation will select the appropriate group of consumers to market the product to (Armstrong, Kottler, 2005. Page 16, 48-49, 54). Or else, it is difficult for them to success.
For Camborne Ices, the company can segment Vietnamese market into 2 markets: The market for people who like spicy flavor and the ones who dislike spicy taste.
6.1 The market for costumer do not like spicy flavor:
It might be an important market for company to gain profit and market share. However, this market also is strong competitive market while other competitors are currently providing slightly the same flavor ice cream.. Thus, Camborne Ices has to work carefully and make a good strategy.
Even though Camborne Ices might have a well built marketing plan to expand in Vietnam, there is always have opportunities to improvement in Product. Two of many areas for company’s improvement could be implemented are building a good research & Development strategies (R&D) and keep developing good promotional strategies. Using the R&D strategies, their product range could be extended to have more flavors which are more favorable to people do not like spicy flavor and local costumers such as taro, green tea, or green bean – a Hanoian specialty… Another way is creating a new experience for costumers about their ice cream. The new product for Vietnamese market could be the ice cream which is flexible like jelly candy, chewing – gum. This can be targeted and attract children and youth costumers – the core and potential costumers.
The company should modify the products according to the customer needs and also less considering in fortunate people on pricing of its products so they can afford them.
Because the company tends to sell direct to costumers, integrate with selling to distributors and retailers, the company should locate its stores in right place, where nearest to the costumers like shopping centers, hotels, tourist areas…However, Camborne Ices also should concern about market control and market conflict. Some stores could not store ice cream at the right way to keep quality, or many retailers locate near each other, so that they reduce sale volumes of themselves. Camborne Ices need to systematize partner relationship management (PRM) to control and improve information. Moreover, the company should justify the distribution channel if one channel does better. All the channel must performed efficiently ( Kotler, P., 2003)
For promotional activities, Camborne Ices should always keep doing promotion and a little more dynamically. For example, to gain new costumers and keep loyalty costumers, they should make an offer, or offer some free for people such as placing a coupon inside the package, All costumers will have a fair chance of saving money by coupons when they purchase for products. Thus, this could help increase sales since costumers are willing to buy Camborne Ices and fewer would want to change to buy another brand.
6.2 The market for costumer like spicy flavor:
Due to the fact that spicy flavor is an unique to differentiate company’s products, the company should have a well-built strategy and little more dynamically, while it still cooperate with the strategy for “dislike spicy flavor costumers”.
For spicy ice creams, Camborne Ices should make a appropriate price strategy for Vietnamese market. The price of spicy ice cream may be higher than standard ice cream but it can be acceptable and affordable to some group of customer. Customer can purchase foreign ice cream at high price.
Beyond some Promotional activates like discount, coupon and free sample…. Camborne Ices should create more special event for this unique product, such as in every month, the company create a special day for spicy flavor. It is not only can attract customer consideration, but building an unique and special company’s image in public.
Moreover, in order to support for these products more successful, Camborne Ices should consider and choose the most important and potential areas to launch spicy ice cream such as tourist places-where international travelers are already familiar with this flavor, or shopping mall, entertainment centers, parks….where most young people-the core customers of these products- come to relax and hang out.
7. The differences in marketing products and services to organizations rather than consumers:
Due to the different of needs and wants of organization and consumers, the marketers have to use different tools. The consumers view the product through the quality and the satisfaction that the product offers. They will purchase the one which they feel most convenience. Thus, the marketers, by many ways, tend to use pull strategy, which rely on advertising and sale promotion to persuade consumers the products. Price off, coupons… are using to attract them to purchase.
Pull strategy
Retailers and distributors, who are induced by consumer decision, will choose which stock will be in their store. They, normally, buy product with a large quantity and need products at stock at the same time. To deal with, the marketers tend to emphasize push strategy. They need their sales force to convince their dealers, retailers to carry, promote and sell the company’s product to end users. This could be giving discount on volume, Point – Of – Purchase or sale allowance to ensure that wholesalers, retailers, restaurants… will stock up with products of the company (Edexcel, 2004, pg 310). For instance, Wall’s will provide freezer immediately for retailers if they agree to stock up Wall’s ice cream at least VND 1mil and promote for Wall’s (Van Nam, 2008).
Push strategy
8. International marketing differs from domestic marketing:
There are many opportunities for Camborne Ice when they decide to export products internationally. They can catch a greater market. However, by going abroad, they also have a tremendous risks and challenges from tariffs, language and culture differences, foreign competitors (Kotler, P. 2005)….
To launch in new market, first of all, the company must learn the new market. Failure in understand new market can cause a huge loss for company. The company must learn culture, attitudes, purchase power of consumers, distribution strength, politic, economic future condition… The company might be failure in finding reliable statistical information or wrong information. This will relate to failure in choosing the target consumers and adapt the marketing mixes.
One big problem for export – company is when they gain market share in other countries. The local government is likely to set up resistance (i.e tariffs, dumping charges) in order to protect local companies.
When export to new market, Camborne Ices must choose carefully the strategic partners: the authorized dealers, distributors… They are the ones who understand and have close relationship with that market, and local people. Like in home market, the partners need to be given incentive to encourage they work harder, to grow the market as fast as possible.
The product price in the entering market may be not the same in home market. In developing countries, the company should offer their product with another benefits or lower price than offering in home market. They have to concern about long term strategy , purchasing power or the quality of other competitors.
III. Conclusion
To summarize, this paper discussed about marketing mix – one of most important elements in marketing. Various elements affect in the marketing mix of company. This paper also provide opinion about marketing mix for Camborne Ices – which produce so many variety of unique and high standard ice cream, in order to identify the most effect way to satisfy both the costumer and organization needs ands wants
Reference
Kotler, P. 2003. Marketing Insights from A to Z. New Jersey. John Wiley & Sons,Inc.
Armstrong, G. & Kotler, P. (2005). Marketing: An Introduction 7th edition New Jersey: Pearson Prentice Hall.
Bao Viet Sercurity Company (BVSC), 2006. Kido’s report2006.
Abingdon, D. 2005. Out of the box marketing. London. Thorogood Publishing Ltd
Van Nam, 2008. Ice cream war, The Saigon Times Online.[Online]. Available at:
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The Times 100, The extended marketing mix (7P’s). Available at :
