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THE IMPORTANCE OF UNDERSTANDING THE BUYER
BEHAVIOUR AND THE APPLICATION OF
MARKETING MIX ELEMENTS FOR
ORGANSIATIONAL SUCCESS
Prepared By
M.R.M Aakil
PCMII/2012/KAN/-0008
Slim – Kandy
JULY
Preliminary Certificate in Marketing
SRI LANKA INSTITUTE OF MARKETING
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Acknowledgement
Countless thanks to the God for giving me such extraordinary abilities and making us
privileged enough to take part in such an activity.
I would like to convey my sincere gratitude to Sri Lanka Institute of Marketing and
the panel of lecturers at SLIM Kandy who helped in numerous ways to submit this
assignment successfully as it is a partial fulfillment of completing the Preliminary
Certificate in Marketing.
Also my special thanks goes to my teacher Mrs. Pearly Liyanage, Mr.
BharathaHerath and Mrs. TarangiWijesooriya for They co-operation and help. They
fully supported throughout the class. I express my heartiest gratitude to them. They co-
operation made this project a lot much easier
I would also like to thank our seniors, who have been very co-operative and were
ready to help us at anytime. They are a great source of guidance for us.
Finally I take this opportunity to convey my gratitude to Mrs. IndikaHerath and the
administration staff of SLIM-Kandy and all my colleagues for all the support given to
me.
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1.Executive Summary
To : The Examiner
From : PCM Student
Subject : The Importance of Understanding the Buyer Behavior and the
application of Marketing Mix Elements for Organizational Success.
Date : 07th of June 2012
As mentioned in the task oneI have given a brief introduction about the (B2B) Bairaha
Farms PLC and (B2C) Maxies Company pvt (Ltd) and its product portfolio.
In task 02 I have briefly discussed about the product maxies chicken as
my selected product of this assignment. I have carried out a detail analysis of the
marketing mix elements of themaxies chicken. As well as its unique features in its
marketing mix.
In task 03 I have explained With reference to the organizational/business
buying decision process model, I explain the stages that a business organization may go
through in purchasing any one of the business to business products marketed by the
organization.
In task 04 I have briefly discussed about the five levels of the product /
brand which adds customer value.
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2. Introduction
2.1Task 01
a) B2BCompany profile
I would select the largest and leading producer of broiler day old chicks. The company
calling BAIRAHA FARMS (PLC).Baraga is business to business organization. Bairaha
is the largest day old chiks producer in sri lanka.
The company established in 1975.Today there hundreds of such contract farmers
located in several districts.Bairaha farms a public company. The company was awarded
third place for running the best poultry breeder farm in the national live stock.
b) Mission
To continue to be the pre-eminent supplier of quality animal protein and related
products at affordable prices to supplement the nutritional requirement of a growing
nation.
c) Vision
To be a world-class organization that works with integrity and honesty, building lasting
business relationship, continuously seeking opportunity for growth and creating an
environment that develop, motivate and rewards all employees by providing consistent
returns for all its stakeholders.
d) Company products
Processed chicken
Further processed chicken
Cobb day old chicks
Cobb day old parent chicks
Cobb day old chicks arethe selected product.
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e) B2C Company Profile
Iwould select the organization that is MAXIES (pvt) Ltd. TheCompanyproduce broiler
chicken. The company is a consumer company.While we strive for the best quality in
our products to ensure full customer satisfaction, are always anxious to ensure that our
staff and the workers are looked after in every possible way thorough benefits offered
to them to uplift their living standards since we believe that quality of employment is
reflected in the product.
f) Mission
To achieve corporate objectives by harnessing the synergy of available resources,
mainly locally as much as possible,and to develop business and improve the living
standards of employees and those in thecommunity.
g) Vision
To produce the best premium quality broiler chicken and chicken parts in Sri Lanka.
h) Company products
Maxis eggs
Broiler chickens
Broiler chickens are the selected product.
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3. Methodology
Below is view of methodology I used throughout this assignment. Data collection is
„Primary data‟ and „Secondary data‟. Primary data collected research activities that I
had regarding themaxies chicken. And I Observed & discuss with retail outlet owners
about the marketing mix of it.
Secondary data was gathered from the web sites of the product. I gathered data
from Bairaha Company worked person.
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4. Task02
“ Marketing mixes have to be changed from time to time in response to new factors in
the marketing picture. The firm can react to environmental changes in an expedient or a
systematic fashion.”
PHILIP
KOTLER
Marketing mix tools or ingredients are often referred as the 4ps. Product, price, place
and promotion. Marketing mix elements;
4.1 Product
“A product is anything that can be offered to a market for attention. Acquisition, use of
consumption that might satisfy a want or need.”
PHILIPKOTLER
Maxies company main product is broiler chicken. The core is curry food. Lunch time or
dinner. This is a physical good.
Marketers usually classify these products on how consumers go about buying them.
Consumer products include convenience products, shoppingproducts, specially
products and unsought products.The chicken is a convenience productthat‟s including
staple goods. Consumer puts little effort into the purchasing decision and convenience.
4.2 The Marketing mix variables
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4.3 Product related attributes analysis
Variety Quality Design Sizes (kgms) Features
(chicken
portions)
Breast ISO 22000, with skin or 400g-600g Bone or
ISO 14001, without packed boneless
ISO 90001, in five portions
Halal per pack.
Srilanka,
SLS 1161
Whole chicken ISO 22000, with or without small, medium, Usage has no
ISO 14001, skin and with large and extra- limit and up
ISO 90001, or without large. toyourspreference
Halal giblets too. s.
Srilanka,
SLS 1161
Drumstick ISO 22000, with or without 40g-50g commonly used
ISO 14001, skin and 60g-120g in grilling deep-
ISO 90001, packed in to small, medium, frying and BBQ.
Halal twenty large and extra Ideal for a curry
Srilanka, portions a large to support the
SLS 1161 pack. main meal.
Thigh ISO 22000, with or without 1.8kg (average) very good
ISO 14001, skin. 90g-120g small, support for any
ISO 90001, medium, large type of
Halal and extra-large cooking,BBQ
Srilanka, portions.
SLS 1161
Liver ISO 22000, 500g Mainly used
ISO 14001, curry among
ISO 90001, lowis and as
Halal liver pate sand
Srilanka, with sperd
SLS 1161
Leg ISO 22000, with or without 10 number pack BBQ‟s grilling
ISO 14001, skin. 240g-270g 0r roasting.
ISO 90001,
Halal
Srilanka,
SLS 1161
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4.4 Price
“Is the amount of money charged for product or service, or the sum of all the values
that consumers exchange for the benefit of having or using the product or service”
The role of price in the marketing mix as well as its role as the generator revenue and
profit has to be difined.In that sense, price is a delicate balance between serving the
customer‟s needs and wants and serving the need of the organization to recoup its costs
of manufacturing and marketing and to make a profit.
Pricing objectives:
Financial
Marketing
Survival
Maxeis company product price is cost based pricing. During Christmas or Avarudu
season they were selling special price to attract more customers.
4.5Price related attributes analysis
Variety Retail price Retail price
(chicken portions) (per kg) (skinless)
Breast Rs .530 _
Whole chicken Rs.350 Rs.400
Drump stick Rs.460 Rs.510
Baby drump stick Rs.375 _
Thigh Rs.460 Rs.510
Liver Rs.350 _
Leg Rs.460 Rs.510
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4.6 Promotion
Are the means by which an organization attempts to inform, persuade and
remained consumers directly or indirectly about the products they sell.
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.
Remainder advertising they should be doing it helps to maintain
customer relationships and keep consumers thinking about that product.
The company advertising in the TV commercials and the newspapers.
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4.7 place
“The middleman is not a hired link in a chain forged by a manufacturer, but rather an
independent market, the focus of a large group of customers for whom he buys.”
Includes all activities in order to make the product available to target consumers in
the “right place” and at the “right time”
.
Channels
Maxiescompany mainly distributing in the super markets and retail shops. Retailers sell
direct to the final consumer and may either Purchase direct from the manufacturer.
The key tasks are:
Display and merchandising.
Selling directlyto consumers.
Gathering valuable information from consumers.
Chicken mainly retailingof modern trade intermediaries‟ examples cargail‟s food city,
keels super, Arpico super centers
Manufacture Retailers Consumers
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5. Task 03
5.1 Organisational buying decision process
The decision process by which business buyers determine which products
and services their organization need purchase, and then find, evaluate, and
choose among alternative suppliers and brands.
5.2 problem recognition
The first stage of the busniess buying process, in which someone in the
company recognises a problem or need that can be met by acquiring a product
or a service.problem recognition can result from internal or external stimuli.
Bairaha hatching chicks and selling to consumer companies allthough according
to chick requriments some special season we need more chicks.so the company
want lage scale incubatorto produce most chicks in same time.
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5.3 General need Description
Having recognized a need, the buyer next prepares a general need description
that describes the characteristics and quantity of the needed item.for standard
items,in the same time we want to incubator more than 20000 eggs. Incubator
machine durability we want 5 years,Hatching rate are more than 95%,electricity
two heating methods a general need description.
5.4 Product Specification
The buying organisation next develops the item‟s technical product
specifications,often with help of a value analysis engineering team. The
machine include auto-temperature, auto- humidity controlling, automatic
turning machine, automatic Cooling system are the product specifications.
5.5 Supplier Search
The buyer now conducts a supplier search to find the best vendors.today more
and more companies are turning to the internet to find suppliers so bairaha also
send the tender notice about our requirements to the internet and news papers.
5.6 Proposal Solicitation
In the proposal solicitation stage if the busniess buying process,the buyer invites
qualified suppliers to submit proposal as per to the product specifications.few
companies will send only a salesperson.suppliers
match our required.suppliers present about the company details and product
features.
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5.7 Supplier Selection
The members of the buyingcenter now review the proposals and short lists a
three suppliers based on meeting to the expected product specificatios.During
supplier selection,the buying center oftern will draw up a list of the desired
supplier attributs and their relative importance.the three suppliers petersime,
jamesway,chick masterare the suppliers.three companies warranty and price
same.petersime company after service 24hurs.in the petersime incubator have
mre than faclites.A range of high performance incubators with a clear, open and
simple design aimed at producing top grade chicks, effective cleaning.
5.8 Order-Routine Specification
The buyer now prepares an order-routine specification.bairaha final order
petersime company because there lot of facalites in the incubator we need 3
incubator machine in 5days.warranties 3years.24hurs after service in every day.
5.9 Performance Review
In this stage,the buyer reviews supplier performance.the buyer may contract
users and ask them to rate their satisfaction.the petersime incubator continue the
hatchring bairaha satisfying with the petesime company because they were
giving good service to us.
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6.Task 04
6.1 The five levels of a product
In addition to considering the tangeble and intangible attributes that relate to a
product,it is useful for the marketer to think of the product as comprising a number of
levels.
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6.1 Core Benefits
The fundamental level is the core benefit;the sevice or benefit the customer is really
buying.maxies company core is curry food the chiken.the chicken benefit for lunch
time or dinner time.
.
6.2 Actual or Basic Product
At the second level,the marketer must turn the core benefit in to a basic product.they
need to develop product features,in the maxies company have chicken prison so that
there have a more features.
Design with or with out skin chicken,bone or bonless
QualityISO 22000, ISO 14001,ISO 90001,Halal Srilanka,
SLS 1161
Packagingcleanpolyteen packed,price,modify and expiry dates.
Brandname maxies chicken
Features very good support for any type of cooking.
6.3 Expected Product
At the third level ,the marketer prepares an expected product,a set of attributes and
conditions buyers normally expect when they purchase a product.clearly, when these
attributes exceed the buyer‟s expectations the organisatins the organisation will have
satisfied and delighted customers.the product expected by the customer.
The chicken parts will separate.so we can take only for breast,neck,or any other
parts take a lot.HACCP certified when the maxies chicken buy any person at the socity
the person status will upgrade.but also psychological benefits such as thril.
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6.4 Augumented Product
At the fourth level, these are the additional services and benefit that surround the
core,basic,and the expected product.companies will provide additional benefits to
compitition for market share.the new levels of competition are taking place aroud the
augumented product.In every outlets super markets,retailshops,sathosa and coop city
we should get the maxies chicken.payment also credit.
6.5 Potential Product
The fifth level of the product is the potential product.This level is impotant because it
raises the possibility of future product improvement in order to keep the product
competitive.In the facebook open the maxies social page to join social community and
the season time maxies giving a offer to customers.
Chicken portion varitey2 kg large scale pack have 250g free.
Season time 20% discount
Maxies sosages
piece for BBQ and roasting.
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7. Recommendation
This is a brilliant and unforgettable study for my life in relation to the practical
marketing situations, but for my some questions ware directed to the subject and they
have not given me the real situation between the fitness of practical and theory
situations. Therefore, I suggest them to maintain a small kit to analyses the backbone
theories for every tactical implementation that has used for the brand success.
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8.References
PCM study kit.
BAIRAH and MAXIES Websites.
Presentation slides of Mr. Bharatha Herath, lecturer of SLIM Kandy
Mr.Aathik he worked from Bairaha.
