Faculty of Economics and Administrative Sciences
Business Administration and Management, 3
SPRING SEMESTER 2009 / FINAL ASSIGNMENT
Before addressing directly the solution of this assignment, I would like to point
out that; this report was formed by my original thoughts and considerations, and
of course the contribution of many investigations !
1.) Please visit a supermarket to find out the product with the best innovative
packaging. What is unique in this package? What do you think about the role of this
package for the marketing and sales of the product? (read the Packaging part in your
book to remember functions of packaging and write the functions of packaging in a
few sentences )
In order to fully understand the question, briefly I would like to explain the concept of
packaging and its functions. As an item; Packaging is the enclosing of a physical
object, typically a product that will be offered for sale. As an operation we can
articulate that; the process of preparing items of equipment for transportation and
storage and which embraces preservation, identification and packaging of products.
I believe; packaging acts as a marketing strategy by itself, which is an important part
of the branding process as it plays a role in communicating the image and identity of a
company. Basically, it is sometimes referred to as the 5th P in the marketing mix.
According to me, packaging has an enormous impact on each brand's success, as it
directly impacts many of my purchase decisions that I made at the point-of-sale, and
can also influence my satisfaction and likelihood of re-purchase. The happier I am,
the more I buy from that brand.
Let’s turn back to my experience about innovative packaging.
According to me, ‘Nestle’ has the most effective packaging style (as you can observe
front-page). When you go shopping in supermarket it is almost impossible to not
realize the bright and dark blue colour packages of Nestle. Of course, the brand equity
of Nestle is also another fact that appeals me but the main subject actually is its
appearance I decide.
Packaging of Nestle products can behave like a silent salesman to the customers from
the shelves. Also, by the use of packaging, Nestle promotes its corporation identity,
provides information to customers, and clearly advocates it’s glamorous of Nestle.
Assume that, this is marketing strategy, thus it has potential to boost firm’s
competitiveness among other players operating in the same sector and keep you ahead
2.) Describe “line extension” and “brand extension”. Find an actual example of line
extension strategy and also brand extension strategy. (the example of each strategy
may be from a different or same company) Then for the case (example) of each
strategy that you’ve found, make an assessment about the success, potential
advantages and risks.
A product line extension is the utilization of an established product’s brand name for
a new item in the same product category. In other words, we can define line extension
as multiproduct branding strategy whereby a firm markets one or more new products
under an already established and well known brand name. (Deriving benefit from
current brand awareness)
Note: when the primary benefit and the target audience are the same, line extensions
make sense. When the primary benefit is different or the target audience is different,
line extensions probably don't make so much sense.
From my observation, I determined at Frito-Lay Corp. world well-known potato-chips
producer, was incorporated with Pepsi-Cola in 1965 to form PepsiCo. Frito-Lay is
managing several brands in Turkey, such as Doritos, Lay’s, Ruffles, Cheetos etc.
Couple of mounts ago, administrative committee of Frito-Lay Turkey had decided to
launch several new tastes. They would stay in the same product (potato-chips) and
release more products with different features to try and attack themselves.
Formerly, they had been serving Turkish market with few product alternatives which
based on differences of flavours in it. But, after implementation of product line
extension strategy to their marketing operations, they had offered the market with a
several kind of new products like Doritos a la Turca (tomatoes/ hashish/ spicy etc.),
also Nacho (with cheese), Tacho (with spicy), Hot Com Dippas (hot).
Brand extension or brand stretching is a marketing strategy in which a firm
marketing a product with a well-developed image uses the same brand name in a
different product category. In other words, brand extension is using the leverage of a
well known brand name in one category to launch a new product in a different
category. This strategy increases awareness degree of the brand name.
The objective is to serve different customer needs or market segments while taking
advantage of the widespread name recognition of the original brand.
Exp; Mudo, brand which each Turkish citizens must heard about it, is a really good
example of the success of brand extension strategy. Firstly, Mudo Company imposed
its name to the society as a producer of quality and modern clothes. Then they had
extended their brand into different fields like home decoration, kitchenwares and so
on.. Now, people who were customers of Mudo formerly are likely to buy Mudo’s
other scope of products rather than other brands.
• For Frito-Lay Comp.
The purpose of adopting line extension strategy is to protect the brand against
competitors, customer satisfaction and maximize profit of course. Frito-Lay succeeds
all these goals. After launching several new products in the same line, the demand for
Frito-Lay products are boost and profits are increased as well.
• For mudo.concept
Obviously, brand-extension strategy yields numerous opportunities to Mudo Comp.
Lower Mudo Company’s launching cost; compared to launching a new brand, brand
extension strategy is cheaper especially because the new product use the name of an
already well-known brand. Therefore Mudo Company has taken advantage of using
their name in other segments (like furniture, home decoration and so on).
Consumer trust increases; After Mudo had entered different segments, and became a
successful, the trust level of consumers to Mudo products has been increasing.
Also there are disadvantages of performing brand extension strategy. From the
Mudo’s side, dilution of the existing brand image was enormous risk they said. But
they were pretty self-confident and sure on the success of Mudo in the other sectors as
well as clothing.
3.) If you were in a jury to nominate the best new product of the last 10 years, which
product would you nominate? Why do you think so, what value/values that product
offers to consumers?
If I were in a jury to nominate the best new product of the last 10 years, of course it
would be ‘Mp3 Players’.
Music industry, current picture states that; the advent of file sharing technologies has
changed the balance between record companies, song writers, and performing artists.
As there activity becomes popular, people are willing more to pay portable music
Walkmans were quite famous at the beginning of 90’s but as technology advances,
new equipments arose among people. Mp3 players were born at the middle of this
Gradually, people who listens music at home from radios, or cassette players, now
have a chance to listen music while walking to work, travelling to somewhere, even
swimming☺. According to the researchers, as mp3 players enter the music market,
consumers do not prefer CD players, walkmans as much as before because now it is
quite easy to download a song to your small device and listen whereas to pay money
for cassette or CD you desire to listen.
Also, another thing is, not for the music, you can use your device to keep anything
digital you want. So this is what you can get I mean advantages if you have mp3
4.) Please compare the prices of two competitive products (such as IPod versus
Creative). According to you, what makes the price difference, the image, quality,
product attributes, and design???
I have determined two competitive products to analyze. One side would be Sony Vaio
notebook, and then the other part is going to be Fujitsu-Siemens notebook.
As we all know, Sony has been one of the most popular brand in electronics industry
for many years. It is known with its quality, reliability, variety (offering a width range
of product), and respectful to the customers considerations. Per contra Siemens,
German home appliances producer, is operating in Turkish market for many years.
Today, if you visit an electronic market in Eskisehir, you can easily see the price of
Sony Vaio which is between 3500 – 5000 TL. But, on the contrary Fujitsu-Siemens
notebooks prices change between 1500-2500 TL.
Thus, what makes the price differences? Even if the exactly similar features both
brand have, their prices are totally divergent.
Actually the answer is so clear. Sony Corp. has brand equity, I mean; Sony has
legitimacy among its stakeholders. Generally, who uses Sony products once during
their life, cannot easily go and buy another brand anymore. This creates brand loyalty
and consumers become less sensitive to prices of Sony products.
If we discuss design of Sony products, I think it depends to person to person. Some of
consumers can like the design and some are not. But I think, Sony has one of the most
creative brands in the world as well (They have numerous awards from designing).
Well-known brand image is primary objective in Sony, that’s why their motto is ‘It’s
We can say that, Siemens is a new player for notebook market. They have been
producing laptops since 1997. So, still they have time to improve their products
design, quality and etc.
5.) Please visit a retailer (store) targeting young people (for example Collezione,
Tiffany, Benetton, Levi’s, Adidas, mobile phone seller, technological products seller).
Considering the questions below explain your observations and assessment. (read the
related parts in the Retailing and Wholesaling chapter)
• What do you think about the target market/markets of the store?
• What is the length and breadth of the store’s product assortments?
• How is the stores’ atmosphere (store décor, music, colour, spaces etc)?
• The services offered by the store(limited service or full service, the role of
• sales people in the store).
• The type of the retailer based on organizational approach (a national chain
store, franchise, independent etc)
• Assume that you are responsible for the distribution channel relations of the
brand (if the retailer is selling different brands choose one of the brands) and
you are visiting the store in Eskisehir. What will be your assessment and
suggestions (for example you may think that the atmosphere of the retailer is
not compatible with your brand or you may think to sell your products in a
different type of retailer)?
• Is there different distribution channels used by the company also? (for
example, does this brand have a virtual store or e-retailing activity?
I decided a store targeting young people named ‘Pull and Bear’. This brand is a new
trend among youngsters and a candidate for becoming permanent preference in
Turkish customers anymore. According to me, this company provides quality clothes,
shoes, and etc. with reasonable prices. I had searched about Pull and Bear and
encountered that it was a part of Zara which is quite famous Spanish brand.
About the target market of Pull and Bear, of course it addresses to youngsters between
(17-26), it can fluctuate plus/minus 2 years. Especially, in Eskisehir, the university
students have enormous potential for this kind of stores (by the way, I emphasized the
store Pull and Bear in Espark Avm).
Also, as I mentioned above, range of products in the store are pretty much the same
amount with other type of clothing producers I decided. Neither less nor more
assortment you can find in this store. Sometimes you cannot even find a large fit of
one t-shirt. Obviously this is their shortage
We you walk around the stores in Espark one Saturday evening, you can come across
with well-designed display window and a mystic, little flu internal design which are
easily appeal to you. So we can say that, they behave very professionally about
preparing charming atmosphere for customers.
Pull and Bear Inc. is a type of retailer which belongs to Zara Corp. Spain. They are
operating several countries all over the world like Spain, Netherlands, Germany,
France, and Turkey even China. Operations are performed by partners so, if you want
to make business with Pull and Bear, you have to be a member of this national chain.
Actually, I had an opportunity to visit a store of Pull and Bear in Spain (hometown of
the brand). They have pretty much the same atmosphere with the store of Pull and
Bear in Espark, Eskisehir. I can easily say that, they have same concept wherever they
are operating in. So if I were responsible from the distribution channels of Bull and
Bear Inc, I would totally say that, Espark Pull and Bear store doing well of their
In conclusion, of course this company uses multimedia channels to reach target
customers. For exp, they have web page named http://www.pullbear.com/ where you
can go and order the things you desire.
6.) Select one television advertisement or one print advertisement. Try to describe the
television ad. Insert the print ad or a photocopy of it to your homework. Answer the
below questions considering the advertisement you’ve selected. (Read the related
parts in Advertising, Sales Promotion and Public Relations chapter)
• What might be the objective of the advertisement? (Read possible advertising
• Which type of appeal (rational, emotional, moral) is used in the
advertisement (Read message content)
• In which execution style was the message presented (read, message execution)
• Try to assess the media selection decision for the advertisement. If you were
the media planner for these brands what would be your decisions about the
selection of the media type, vehicles, timing etc? (Read, Selecting Advertising
Advertising is one part of the promotional mix, and therefore advertising objectives
will be set in line with overall promotional and marketing objectives. In my
assignment, I would use printed advertising campaign as an example, which is
prepared by Gillette Corp.
The main objective of print advertising of Gillette Mach3 is reaching out to large
numbers of potential and existing customers, persuading them to consider purchase,
motivating them to act and reminding them about your product or service and its
unique benefits. As you can see at the very right bottom of the advertising next page,
there is motto of Gillette Mach3, The Best a Man Can Get clearly shows the target
group of this marketing strategy.
Gillette wants to communicate with target market by catering their rational approach.
As you can see on the advertisement, there is a razor blade at the middle of the
picture, surrounding by small definitions which are address the part of it. So
authorized had made it intentionally to refer customers’ logic.
As we all know, there are several ways to communicate your message in the
marketing. Such as; straightforward messaging, by making comparison, and etc.
Gillette Comp. executes messaging style by using demonstration technique. You can
get the most efficient performance if you use this way, etc.
In addition, Gillette is performing spokesperson/endorsers technique as well. Andrea
Agassi, David Beckham... are used as a phenomenon in the visual media to attract
I have chosen this advertisement from a monthly business magazine, which is quite
popular among men working on the finance sector. So if I were the manager,
determine the features of the advertisement, I would deal with one famous person, and
issue exciting visual advertisements as well.
Shaving actually can be accepted as regular activity, it does not matter a lot about
timing I believe. Each month at the magazines, and each evening at the television
(especially the channels related with business).
7.) Describe an actual example of a consumer sales promotion campaign (premiums,
contest, sweepstake, sample, bonus packs, coupon, event marketing etc.).Who
may be the target market of the activity? What may be the objectives of the company
for this sales promotion? (Read Sales Promotion)
In order to explain this question, we must known little bit about sales promotion and
the functions of it.
Briefly, sales promotion describes promotional methods using special short-term
techniques to persuade members of a target market to respond or undertake certain
activity. As a reward, marketers offer something of value to those responding
generally in the form of lower cost of ownership for a purchased product. (This is
exactly what Tansaş did). Now turn back to my observation;
Tansaş, the oldest and biggest supermarket chains in Turkey, had started for a
campaign in their stores. When you enter one of these Tansaş’s stores, and buy some
goods which are equal or more than 10 TL, they provide you a sticker, and a bulletin
that you can fasten all stickers on it. What is this for actually?
The purpose of gathering those stickers is to offer you glass bowls (Borcam) for free
which the Turkish housewives killed them for it. As I emphasized the sentences
before, the target group of the campaign is housewives. If you save 20 of those
stickers, you can have a small one, than if you bring 40 of those stickers, you can have
a biggest one. Also, there are other alternatives. If you save 5 of them, you can earn
charming discounts in order to buy those bowls.
Now, here is the question. Is this strategy work? I pretty sure about its success
actually, because even my mother has started to gather those stickers. ☺
• Principles of Marketing (Philip Cotler)
• Marketing Magazines
• Slides of Marketing Management Course (Lectured by Sevgi Ayşe Oztürk)