Detailed Example of a Marketing Strategy:

(Real life example with all the names hidden)

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SPAGHELLA’s Marketing Analysis for the Short
& for the Long Term:

Current Situation, Strategy & Tactics

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INDEX:
I- INTRODUCTION ................................................................................................ 1
__________________________________________

II- MACROECONOMIC ISSUES ............................................................................. 3

_______________________________________

III- EVALUATION OF THE CURRENT MARKETING SITUATION ...........................

7

III-1- Market Situation & Definition of the Global Market ........................... 7

III-2- Product Situation ................................................................................... 10
III-3- Competitive Situation ............................................................................ 14
III-4- Distribution Situation ............................................................................ 17
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IV- S.W.O.T. ANALYSIS .................................................................................... 21

IV-1- Strengths ................................................................................................ 21

IV-2- Weaknesses ............................................................................................. 23
IV-3- Opportunities ......................................................................................... 24
IV-4- Threats ................................................................................................... 27
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V- MARKETING STRATEGY .............................................................................. 30

V-1- Target Markets ....................................................................................... 30

V-2- Positioning ............................................................................................. 32
V-3- Product Line Decisions & Branding ..................................................... 33
V-4- Pricing .................................................................................................... 35
V-5- Distribution Strategy ............................................................................. 35
V-6- Sales Force Management ....................................................................... 37
V-7- Other Service Aspects ........................................................................... 38
V-8- Advertising Strategy .............................................................................. 39
V-9- Sales Promotion Strategy ...................................................................... 40
V-10- Research & Development Issues ........................................................... 41
V-11- Needs in Marketing Research ............................................................... 42
__________________________________________

VI- CONCLUSION .............................................................................................. 43

DETAILED CONTENTS:
I- INTRODUCTION ................................................................................................ 1
__________________________________________

II- MACROECONOMIC ISSUES ............................................................................. 3

Crisis Economy
Stagnation
Booming Economy
Lessons from each Economic Situation
Higher Education
More Information and Higher Technology
Opening to Foreign Competition
Macroeconomic Actions: Monitoring Neighboring Economies
Macroeconomic Actions: Improving Economic and Educational Levels
__________________________________________

III- EVALUATION OF THE CURRENT MARKETING SITUATION ...........................

7

III-1- Market Situation & Definition of the Global Market ........................... 7

Types of Markets
The Industrial Market
Endless Approaches to the Determination of the End-User Market
Limitations of Some Approaches to the End-User Market
The Issues of the Social Classes and of the Type of Geographical Areas
The Easier Case of the Vermicelli Market

III-2- Product Situation ................................................................................... 10

Signs of the “Non-Education” of Consumers: Infrequent Purchases
Signs of the “Non-Education” of Consumers: Seasonal Preference
Signs of the “Non-Education” of Consumers: Undifferentiated Pasta
Taste
Weights Mixed Up: The Extreme Case of the large city of MANTIKA
The Non-Exact Nature of Researches Does Not Explain the
Incompatibility of Answers
 Less Mismatching in Answers Concerning Vermicelli
Mismatching in Answers Concerning Spaghetti Types
Further Thoughts and Information Needed in the Future

III-3- Competitive Situation ............................................................................ 14

Low Level of Awareness
Low Level of Loyalty
The Non-Differential Issue of Prices
SPAGHELLA’s Unusual Pricing Strategy
The High Awareness of Italian Products
Behaviour of the Upper Class People
The High Performance of Unbranded Products
Low Loyalty Does Not Necessarily Mean Low Quality Perception
Further Thoughts and Information Needed in the Future

III-4- Distribution Situation ............................................................................ 17

The Wholesaler Market
The Retailer Market
The Overwhelming Importance of Groceries
Marketing Approach for Large Shops and Selling Approach for
Groceries SPAGHELLA’s Choice in Distribution Policy
Mismatching Between Marketing Approcah Needed and Current
Distribution Policy
Further Thoughts and Information Needed in the Future
__________________________________________

IV- S.W.O.T. ANALYSIS .................................................................................... 21

IV-1- Strengths ................................................................................................ 21

Company Strengths
Brand Strengths
Special Performance with Upper Class People and with Professionals
Distribution Strengths
Low Potential Effect of Economic Crises
IV-2- Weaknesses ............................................................................................. 23
Company Weaknesses
Distribution Weaknesses
Weaknesses in the Product Line and in its Presentation

IV-3- Opportunities ......................................................................................... 24

Attacking the Industrial Market
Being More Italian
Extending the Product Line
Associating the Brand with Status
Subcontracting Manufacturing and Concentrating on Brand-Building
Taking Advantage of the Potential of the Unbranded Products
Taking Advantage of the Shift in Purchasing Habits

IV-4- Threats ................................................................................................... 27

Underestimating Small Areas and Small Shops Can Endanger
Leadership Position
Too Much Power for the Grocers Means Less Market Education
Dangerous “Niche” Players: The Extreme Case of AL-HARTAD
DAMAA Generally Less Dangerous than AL-HARTAD or than Similarly
Important Niche Players
Opening Borders to Foreign Competition
Building Strong Brands of Rice Products Can Create Substitution Effects
to Spaghetti
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V- MARKETING STRATEGY .............................................................................. 30

From Product-Driven to Market-Driven and, ultimately, to Market-

Driving

V-1- Target Markets ....................................................................................... 30

The End-User Market
The Industrial Market
V-2- Positioning ............................................................................................. 32

V-3- Product Line Decisions & Branding ..................................................... 33

Not Adding Weights
Extended Types
Packaging
Possible Subcontracting of Manufacturing
Other Products

V-4- Pricing .................................................................................................... 35

Pasta
Tomato Sauce

V-5- Distribution Strategy ............................................................................. 35

The Wholesalers
“Sales Promoters” to Visit Retailers
Resellers “Outsource” Inventory, Shelf, and Purchase Management to
SPAGHELLA

V-6- Sales Force Management ....................................................................... 37

Criteria for the Remuneration of Salesmen
Team Work and Team Remuneration
The Role of Sales Managers

V-7- Other Service Aspects ........................................................................... 38

Consumer Service
Service to Direct Clients

V-8- Advertising Strategy .............................................................................. 39

Short Term “Battle” Messages - Slogans
Long Term Advertising Goal

V-9- Sales Promotion Strategy ...................................................................... 40

Consumers’ Promotions
 Resellers’ Promotions
Sponsoring Events

V-10- Research & Development Issues ........................................................... 41

V-11- Needs in Marketing Research ............................................................... 42

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VI- CONCLUSION .............................................................................................. 43