Marketing Management Assignment - Fluent Writing Solutions Ltd

Q1. Prepare a Step wise plan for the launch of Reitzel Products in India

A1. We have prepared a 6 step plan for the launch of Reitzel Products in India.

1. Defining and reaching the target audience:

Reitzel India belongs to a monopolistic competition market structure as there are a large number of sellers in the
Indian market selling differentiated with close substitute products. It has to know its target audience.

In India, only European and oriental restaurants use Reitzel's product as ingredients, which are very less in number
when compared to other type of restaurants having cuisines like North Indian, South Indian and Chinese. So, Reitzel
has to target those European restaurants which are specifically in metro and tier 1 city. In addition to that Reitzel can
target airlines.

Customers are adaptable, especially Indians. The large amount of diversity Indians possess on the basis of religion,
region, the historical impact of Europeans reflects on the amount of cuisines in our country. Reitzel India should
focus on making a more localized product and tap into these diverse cuisines of our nation that form a large market.

2. Competitor Analysis
Company Products offered
Neo Foods Burger Chips, Gherkins, Baby
Gherkins, Sandwich Stacker,
Sliced Red Paprikas, Silver Skin
Onions, Hot & Sweet Relish,
Olicoop Variety of Olive products
Summary
 Marketing Plant in Tumkur.
 Good visibility in all the leading supermarkets
 They have a good distribution network in Bangalore.
 The company is largest exporter and producer of
olives in the world.
 A prominent player in the olive products market.

Del Monte Variety of olive products  Global presence established.

 The company has been in existence for over 100
years.
American The company offers more than  Products are found in over 50 countries.
Garden 250 products.  Globally present

Tify pickled cucumbers, sweet-  It is owned by Global Green Company.

corn, silver skin onions,
peppers, cherries, capers and
mixed vegetables
Weikfield custard and corn flour, vinegar  Indian Company based in Pune.

Koeleman gherkins and pickled  Owned by Koelman family.

vegetables

Challenges to Reitzel India from the Competitors

 There is direct competition to some of the company’s products already in the market.
 Competitors have lower priced products in the same category.
Areas to exploit

The company can offer items that are not offered by their competitors like the Virgin Oil / Olive oil/Mustard paste
which don’t have any competition from the other companies. Reitzel India should capitalise on this opportunity and
expand their network of clients and try to establish themselves as an established player in the market.

3. Market Research
Opportunities:
a) Tier 1 cities will provide access to a larger domestic market.
b) Potential one brands all products, as the competitors don’t have a variety of products as Reitzel India.
c) They have opportunities for unique advertisements and promotions for their different products.

Threats:
a) Well established players with high market share and control over distribution network.
b) Low prices of competitors.

4. Distribution Channels:

a) E-Commerce Store

It’s easier and cheaper to list products on the e-commerce stores. Urban population would be already familiar with
the e-commerce sites, lesser effort would be required to market these products as the site gives it more visibility.
The company would have larger control on implementing their marketing strategies through this channel. But it is a
bit hard to adapt to changes in socio economic factors.

b) Retail

Although the cost for training and selling though retail is moderately lower than the other channels. The company’s
products being a new entrant in the Indian markets would not be received by the customers who have no knowledge
about the company. Kirana owners would be sceptical of giving the products shelf space due to the low shelf life and
due to it being unpopular.

5. Marketing Techniques

Reitzel plans to function on a mix of Indirect and Direct marketing strategies, some of which are mentioned
below:
a. Offline Marketing
In 2015, Offline Marketing played an important role in advertising that is carried out using traditional
offline media, such as television, billboard ads, flyer and radio. It’s a helpful tool that Reitzel can use
build brand awareness, especially for the community who are not exposed to online marketing.

b. Direct Marketing
Target Potential Customers – By Identifying consumers who are most likely to consume their products,
Reitzel can focus their marketing efforts on them to get maximum results.
i) Product Sampling – Potential customers can be treated with samples of new products and feedback
can be collected for improvements. Reitzel had also hired interns to collect feedback from chefs on
their product samples
ii) Personal Selling – After a careful evaluation Reitzel plans to have dedicated salesmen attached to all
big vendors indicating the company having a dedicated salesforce. The relationship created among the
buyer and seller created this way helps customers to trust the brand and come back for new purchases
iii) Outbound marketing – Reitzel can also focus on cold calling, email blasts to purchased lists, and print
ads.
 c. Digital Marketing and Website Push
Reitzel can also leverage digital channels, such as search engines, social media, email, and websites to
connect with current and prospective customers. It can maintain an interactive social media pages with
prompt replies to reviews and queries. They can also push for new product launches and disclose secret
recipes and health benefits exclusive to their product. Their website can be also further promoted.

d. Work of Mouth and Buzz Creation

Being a well-established foreign brand, Reitzel can leverage refreshingly creative content, interactive
events, and community influencers to generate word-of-mouth marketing and anticipation for the product
or service a brand is about to launch. Offering referral and loyalty programs requesting reviews after
providing product or service can also help them fetch brownie points.

6. Continuous evaluation and innovation:

To improve and enhance the product further, feedback would be taken periodically from clients. An
effective feedback highlighting our strengths and weaknesses would be always valued.
A separate R&D team would be dedicated towards improvement of existing products as well as
development of new products.

Q2. On the basis of discussion of the case done in the class, do you think the company should go for B2B or
B2C?

A2. Before making a concise decision that which market Reitzel India should tap into, it is important to look at the
problems they were facing in both of these markets. Once we understand the problems, it would be easier for Reitzel
India to focus on the distribution channels. As mentioned in the case study, Reitzel India had been facing different
problems in both B2C as well as B2B markets.

Understanding the problem

In B2B, the problem they are facing is that the segment of buyers in this group is price-sensitive rather than quality
sensitive. Moreover, they are entering a market in which there are a large number of competitors that hold majority
of the market share.

In case of B2C, the problem mainly lies in the fact that Indians have not developed the taste for the products
released by Reitzel India as of now. There’s a niche audience for this particular line of products and as they’re not
fast moving, retailers are not keen on keeping them.

How the 2 markets provide the solutions

Neither of these 2 markets is fundamentally better than the other. Both of them cater to different audiences and
fulfil different needs.

We need to look at the pros and cons of both B2B as well as B2C markets to determine which option serves Reitzel
India better.
 B2B Market
Pros
Direct services/bulk quantities:
Providing their services directly to businesses
like airlines, specialty restaurants etc. would
result in sales of bulk quantities.
Providing bulk quantities over longer periods of
time helps in building trust and commitment
with the business’ which later helps in the
establishment of a brand. In case of Reitzel India,
they are already in a market where a lot of
competition holds a large market share. Selling
their services in bulk would help in building
relationships with these businesses.
B2C Market
Pros
High visibility:
A problem Reitzel India was facing in this
monopolistic competition was that the audience
they were catering to was quite small and niche.
B2C markets have a much wider audience and
tapping into this particular sector would help
them to open more options.

Price control: Right audience:

Unlike B2C, where there is a specified price for a
particular product throughout the consumer
base, B2B has a different structure.
Selling their products in the B2B sector could
enable the scope of decreasing price due to the
possibility of selling different quantities to
different businesses at different prices. Reitzel
India can look into other businesses besides the
ones they are already collaborating with and
make use of this.
Cons
Smaller market:
The consumer base in this market is small and
difficult to tap into at first.
It is clear that the audience Reitzel India caters
to is one which is more familiar to the European
and oriental taste. This type of audience is more
likely to be encountered in urban and tier 1
cities.
Hence, E-commerce and website stores would
help in providing services to this urban
population since they are more likely to come
across their products on e-commerce medium.
Designated Salesforce in retail:
Assigning designated salesforce in retail stores
would further increase the visibility of the
product within the consumers.
Cons
Retaining a large and segmented consumer
base:
Although the audience in this business model is
large, it is difficult to retain that audience unless
and until there’s a differentiating factor within
the products.

Incorporating both markets

We can clearly see that both of these markets have their pros and cons in case of Reitzel India. Establishing their
business in both of these markets provides a challenge but would also proves to be fruitful in the end.

For Reitzel India, we can consider B2B as well as B2C markets as 2 sides of the same coin. Tapping into both of these
markets would help solve the problems one of these markets may face individually.

For example, although the B2B market provides direct services to the businesses, they encounter the problem of
catering to a small audience. This particular problem can be solved by incorporating the B2C business model wherein
the consumer base is quite large. Similarly, the problem of retaining customers in the B2C sector is something that’s
overcome in the B2B model.

A unified approach
Reitzel India, in the B2B market would be able to sell large volume of their products. They will be able to target
bigger businesses with whom they can form business over a long time.

Whereas in the B2C sector, they can sell their product at a higher price by getting rid of the middleman and selling it
straight to the customers.

In conclusion, we believe the best possible approach for Reitzel India is to apply a unified approach and reach both
the customers as well as business to maximize their opportunities. Tapping into both sectors would also help in
maximizing their sales as both strategies would complement each other.

Thank You