Contents

I. Compile marketing audits.........................................................................................................2

II. Barriers to Marketing Planning............................................................................................10

III. Formulate a marketing plan for Seven Bridges Brewery Company................................10

References.....................................................................................................................................16

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I. Compile marketing audits
1. Changing perspectives in marketing planning.

 The production orientation

Production Concept – Consumers prefer products that are widely available and
inexpensive. The production concept is more operations oriented than any other concept (Bhasin,
2017).

When the production concept was found, a production orientation business dominated the market
from the beginning of Capitalism to the mid 1950’s. During the era of the Production concept,
Business concerned itself primarily with production, manufacturing, and efficiency issues. The
basic proposition of the production concept is that customers will choose products and services
that are widely available and are of low cost. So, business is mainly concerned with making as
many units as possible. By concentrating on producing maximum volumes, such a business aims
to maximize profitability by exploiting economies of scale. Managers try to achieve higher
volume with low cost and intensive distribution strategy.

In a production-orientated business, the needs of customers are secondary compared with the
need to increase output. Such an approach is probably most effective when a business operates in
very high growth markets or where the potential for economies of scale is significant. It is
natural that the companies cannot deliver quality products and suffer from problems arising out
of impersonal behavior with the customers (Bhasin, Marketing 91, 2016).

 Product Orientation

Product Concept – Consumers favor products that offer the most quality, performance, or
innovative features. The product concept believes in the consumer and it says the consumers are
more likely to be loyal if they have more options of products or they get more benefits from the
product of the company. The product concept proposes that consumers will prefer products that
have better quality, performance and features as opposed to a normal product. The concept is
truly
applicable in some niches such as electronics and mobile handsets. Companies following the
product concept need to concentrate on their technology such that they provide with excellent

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feature rich and innovative products for optimum customer satisfaction (Bhasin, The Product
Concept, 2016)

 Sale Orientation

Selling Concept – Consumers will buy products only if the company aggressively
promotes or
sells these products. Off course, in this era of marketing, we know that selling is not the only
tactic
to sell your product. You have to focus on marketing as well. During WWII world industry
geared
up for accelerated wartime production. When the war was over this stimulated industrial machine
turned to producing consumer products. By the mid 50’s supply was starting to out-pace demand
in many industries. Businesses had to concentrate on ways of selling their products. Numerous
sales techniques such as closing, probing, and qualifying were all developed during this period
and
the sales department had an exalted position in a company’s organizational structure.

The Selling Concept proposes that customers, be individual or organizations will not buy enough
of the organization’s products unless they are persuaded to do so through selling effort. So
organizations should undertake selling and promotion of their products for marketing success.
The
consumers typically are inert and they need to be goaded for buying by converting their inert
need
in to a buying motive through persuasion and selling action. In a modern marketing situation, the
buyer has a basket to choose from and the customer is also fed with a high decibel of advertising.
So often there is a misconception that marketing is all about selling. The problem with this
approach is that the customer will certainly buy the product after the persuasion and if
dissatisfied
will not speak to others. In reality this does not happen and companies pursuing this concept
often
fail in the business (Bhasin, Selling concept, 2016).

 Market Orientation

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Marketing Concept – Focuses on needs/wants of target markets & delivering value better
than
competitors. The marketing concept believes in the pull strategy and says that you need to make
your brand so strong that customers themselves prefer your brand over every other competitor.
This can be achieved through marketing. The marketing concept is the most followed ideology
by
top companies. This is because, with the rise of economy, consumers have become more
knowledgeable and choosy as a result of which the organization cannot concentrate on what it
sells
but rather it has to concentrate on what the customer wants to buy. The marketing concept also
demands that the organization integrate all its different departments to give value to the
customer.
This means that all the departments including Marketing, Finance, HR or Operations should have
an idea of the core objectives of the company as well as the goal of the company.

To summaries, the concept of marketing relies on market research and determining needs of the
customer such that a better marketing strategy can be devised which satisfies the needs of the
customer. The marketing concept also demands a holistic approach from the organization
(Bhasin,
The Marketing Concept – Concept of marketing, 2016).

 Customer Orientation Culture

Societal Marketing concept – Focuses on needs / wants of target markets &

delivering value
better than competitors that preserves the consumer’s and society’s well-being. The societal
marketing concept was an offshoot of the marketing concept wherein an organization believes in
giving back to the society by producing better products targeted towards society welfare.

The societal marketing concept calls upon marketers to build social and ethical considerations
into
their marketing practices. They must balance and juggle the often-conflicting criteria of company
profits, consumer want satisfaction, and public interest. Yet a number of companies have
achieved

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notable sales and profit gains by adopting and practicing the societal marketing concept. Some
companies practice a form of the societal marketing concept called cause related marketing.
Pringle and Thompson define this as “activity by which a company with an image, product, or
service to market builds a relationship or partnership with a cause,’ or a number of ‘causes,’ for
mutual benefit (Bhasin, Societal Marketing Concept, 2017).

Marketing is the process in which advertisers attempt to create profitable relationships with
consumers, while establishing a profit for their goods or services. In addition to generating new
customers, marketers must also focus of customer retention. The marketing process has five key
steps that lead to a successful advertising campaign. Understanding the marketing process is
essential for anyone looking to advertise a good or service.

Renewable the business processes

Sensitization is just one step in the process of building and developing a new culture in business.
To engage employees, managers must change and prove what they are doing. When customers
and employees realize that the business should do something better, show them that the business
is really embarking on the action. Businesses can re-set the expectations they need to meet their
customers.

Create Relationship with customer

In fact, every day, employees interact directly with the customer is the most profound
understanding of the customer. They will know how to treat customers. This fact only shows
employers that they need to empathize with the views of employees more. Do not limit the
knowledge and approach to employees who are directly interacting with customers. A customer-
oriented culture is not simply about providing better customer service at the front line, but also
from the core: employees who create services throughout the customer interface.

Usually feedback is way out of "complaining" and its results often create ill or lose the link
between customers and businesses. Managers will know how to direct their employees to turn
positive feedback into positive ones. And while listening to feedback, the manager also does not
forget to share and give positive feedback to the staff. Handling negative feedback enhances

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customer engagement, then share the positive feedback will help connect the relationship of
staffs in business.

2. Seven Bridges Brewery’s capability for planning its future marketing activity.

 Human Resources: Currently, CEO of 7 Bridges is Stanley Boots, Saori Ushimi will be
responsible for CFO/COO position. Under the manage of two people is three departments
include: Production with the management of Michael Hardy, Sales & Marketing
department with the management of Sarah Ryan and finally Khanh Dang will manage
Operation Department.
 Financial Resource: 7 Bridges has 7 kind of beer include Golden Ale, Fire IPA, Imperial
IPA, Sakura Pilsner, Sunset Weizen, V.R.A, New York Ale. Each kind of beer has unique
taste and very different with their competitor in Da Nang City in particular and with the
whole country in general. The price for 1 bottle off beer is 100,000 VND and their
customers mostly are big hotels, resort like Sheraton, Pullman, bars and restaurants…
 Physical and Material Resources: They have a small beer processing facility in Lien
Chieu District. At present, the company is planning to expand its scale. Their office is
located in a co-working space at 31 Tran Phu street. And they also have a taproom on
Tran Hung Dao Street.
 Information Resources: Through the research, I can be said that they do not have any
activity on their website although it was designed very modern. However, their Facebook
is used with the maximum. They share a lot of information about events that they will
participate in, about their products are available a which hotel, bar, resort, etc. 7 Bridges
should continue to maintain their Facebook page as well as actively maintain the activity
of the website so people can find information easily.

3. Techniques for organizational auditing and for analyzing external factors that affect
marketing planning and the application in Seven Bridges Brewery.

a. Pestel

What is PESTLE Analysis? PESTLE analysis, stands for Political, Economic Socio-
cultural,

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Technological, Legal and Environmental; which is sometimes referred as PEST analysis, is
a
concept in marketing principles. Moreover, this concept is used as a tool by companies to track
the
environment they’re operating in or are planning to launch a new project/product/service etc.
There
are certain questions that one needs to ask while conducting this analysis, which give them an
idea
of what things to keep in mind (PESTLE Analysis, 2016). They are:

• What is the political situation of the country and how can it affect the industry?

• What are the prevalent economic factors?

• How much importance does culture has in the market and what are its determinants?

• What technological innovations are likely to pop up and affect the market structure?

• Are there any current legislations that regulate the industry or can there be any change in
the legislations for the industry?

• What are the environmental concerns for the industry?

Political: This is about stability of the political environment and the attitudes of political
parties.
This factor determines the extent to which a government may influence the economy or an
industry
(PESTLE Analysis, 2016).

Vietnam politics is stable, so it is an advantage for 7 Bridges.

Economic factors: represent the wider economy so may include economic growth rates,
levels
of employment and unemployment, costs of raw materials such as energy, petrol and steel,
interest
rates and monetary policies, exchange rates and inflation rates. These may also vary from one
country to another (Oxford Learning Lab, 2016).

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Socio-cultural factors: represent the culture of the society that an organization operates
within.
They may include demographics, age distribution, population growth rates, level of education,
distribution of wealth and social classes, living conditions and lifestyle (Oxford Learning Lab,
2016).

Technological factors refer to the rate of new inventions and development, changes in
information and mobile technology, changes in Internet and e-commerce or even mobile
commerce, and government spending on research. There is often a tendency to focus
Technological developments on digital and internet-related areas, but it should also include
materials development and new methods of manufacture, distribution and logistics (Oxford
Learning Lab, 2016).

Legal: These factors have both external and internal sides. There are certain laws that affect
the
business environment in a certain country while there are certain policies that companies
maintain
for themselves. Legal analysis takes into account both of these angles and then charts out the
strategies in light of these legislations. For example, consumer laws, safety standards, labor laws
etc (PESTLE Analysis, 2016).

Environmental: These factors include all those that influence or are determined by the
surrounding environment. This aspect of the PESTLE is crucial for certain industries particularly
for example tourism, farming, agriculture etc. Factors of a business environmental
analysis include but are not limited to climate, weather, geographical location, global changes in
climate, environmental offsets etc (PESTLE Analysis, 2016).

b. Five Force

Competition in the industry: The important issue here is that the number and capabilities of the
competitors. If a company has many competitors, and they offer equally attractive products and
services to customers, that company will have little power in the situation because suppliers and
buyers always look for a suitable price and quality, if a company does not satisfy their needs,
then they will look for the competitors’ deals. In the other hand, if no one can offer a better deal
for the consumers, then that company will have a big advantage over others.

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7 Bridges is the only craft beer brewing company in Da Nang, so direct competitors are almost
nonexistent. However, the majority of customers still choose to use lager beer brands such as
Heineken, Tiger, Larue, Beck's or Budweiser thanks to the big brands as well as the more
moderate prices.

Potential of new entrants into the industry: This force examines how easy or difficult it is for
competitors to join the marketplace in the industry. The easier it is for a competitor to join the
marketplace, the greater the risk for the companies that are already in the industry. And also, it
considers some factors when enter the market like how much the profit, the number of customers
and the number of other competitors. So, if they do not take measures to improve their current
technology, as well as wary of the risks, they can easily lose the advantage to the hand of the new
entrants.

For making craft beer, the cost is not too high, but to get a good quality product, the processor
should have knowledge and understanding of the beer making process, and one more difficult
challenge is to be able to introduce the beer to the consumer. So, the potential of new entrants
into the industry is low to medium.

Power of suppliers: Here you assess how easy it is for suppliers to drive up prices. This
is driven
by the number of suppliers of each key input, the uniqueness of their product or service, their
strength and control over you, the cost of switching from one to another, and so on. The fewer
the
supplier choices you have, and the more you need suppliers' help, the more powerful your
suppliers
are (Mind Tools, 2016). The fewer there are, the more power they have, so it is important for a
company to have the advantage over their suppliers, or they will become depend on suppliers’
decisions.

The 7 Bridges beers are made by the company itself. However, the barley, they have to carefully
choose the different types of barley to give different flavors of beer. The company cannot grow
these barleys grow on their own, but it is not too difficult to find other sources of supply as well
as switching costs is not high. So that power of supplier is medium.

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Power of customers: This force looks at the power of the consumer to affect pricing and
quality.
Consumers have power when there aren't many of them, but lots of sellers, as well as when it is
easy to switch from one business's products or services to another. Buying power is low when
consumers purchase products in small amounts and the seller's product is very different from any
of its competitors (Arline, 2015). So, the number of firms will affect this force, also it is
important
for the company to create their unique products that cannot be found in other competitors.

This is the first beer company in Da Nang, and also distributes beer to many places like 4P ',
Sheraton, The Fat Big and some other hotels. Currently, the main customer groups of 7 Bridges
are those who enjoy the taste of craft beer and foreign visitors. However, at a relatively high
price, about 100,000 VND, approximately $ 5, will be difficult to attract ordinary users when
they can choose cheaper beer such as Heineken or Tiger, Larue. Meanwhile, this represents a
large market share in the beer industry in Vietnam. So, customer power of 7 Bridges Brewery is
moderate to high.

Threat of substitute products: This is affected by the ability of your customers to

find a different
way of doing what you do – for example, if you supply a unique software product that automates
an important process, people may substitute by doing the process manually or by outsourcing it.
If
substitution is easy and substitution is viable, then this weakens your power (Mind Tools, 2016).

As mentioned above, most customers in Vietnam choose beer brands such as Heineken, Tiger,
Larue, Beck's or Budweiser. So threat of substitute products is high.

c. Ansoff Matrix

Ansoff's Matrix is a marketing planning model that helps a business determine its product and
market growth strategy. Ansoff matrix suggests that a business attempts to grow depend on
whether it markets new or existing products in new or existing markets. The output from the
Ansoff matrix is a series of suggested growth strategies which set the direction for the business
strategy.

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Market penetration: Market penetration is the name given to a growth strategy where the
business focuses on selling existing products into existing markets. A market penetration
marketing strategy is like “business as usual”. The business is focusing on markets and products
it knows well. It is likely to have good information on competitors and on customer needs. So,
this strategy will require much investment in new market research [ CITATION Tut18 \l 1033 ].
In this aspect, 7 Bridges can open more sales locations and growth by selling more of existing
products.

Market development: Market development is the name given to a growth strategy where the
business seeks to sell its existing products into new markets. Market development is a riskier
strategy than market penetration because of the targeting of new markets [ CITATION Tut18 \l
1033 ]. The markets of the 7 Bridges include Da Nang, Ho Chi Minh City and Hanoi. Applying
this concept of Ansoff Matrix, not only providing beer in Da Nang, Hanoi and Ho Chi Minh City,
7 Bridges can provide for other provinces in Vietnam and can export their beer into overseas
markets such as Asian countries, Europe, the Americas

Product development: Product development is a growth strategy where a business aims to

introduce new products into existing markets. This strategy may require the development of new
competencies and requires the business to develop modified products which can appeal to
existing markets [ CITATION Tut18 \l 1033 ]. Today, the segment of 7 Bridges is aimed at young
consumers, foreigners. However, according to this concept, to increase profits, 7 Bridges can
develop new products, such as tea, milk alcohol, fruit juices or even foods and so on.

Diversification: Diversification is the growth strategy where a business markets new product in
new markets. This is a riskier strategy because the business is moving into markets it has little or
no experience. For a business to adopt a diversification strategy it must have a clear idea about
what it expects to gain from the strategy and an honest assessment of the risks. However, for the
right balance between risk and reward, a marketing strategy of diversification can be highly
rewarding [ CITATION Tut18 \l 1033 ]. In order to diversify business activities, 7 Bridges have
the opportunity, in addition to the taproom, they can also open a convenience store, or participate
in investment projects and so on.

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II. Barriers to Marketing Planning
Slide

III. Formulate a marketing plan for Seven Bridges

Brewery Company
1. The necessity of marketing planning in the strategic planning process

A marketing plan is basically a way to lay out (to plan) the marketing for business, products,
and/or services. It covers everything from information about target market to specific step-by-
step processes will use to build certain marketing systems and strategies.

It is a document that helps to guide businessman or businesswoman while they build their
marketing plan, it helps you stay on track to building a more successful business, and it helps
them focus their attention on their marketing – which can be a pretty hard for many people
[ CITATION Pay12 \l 1033 ].

One aspect of the marketing strategy will be able to affect all the other departments, thus
coordinating the activities of the marketing plan is very important to remove these problems and
maximize the profitability of the business in general and 7 Bridges in particular. The
consideration all the fields of activity of their sales and help each group supporting the next,
ensuring that all their departments are aware of what they are doing is indispensable in the
marketing strategy. Understand how to create a suitable marketing strategy will help businesses
make better personal decisions about specific marketing tactics.

Enhance product development

If 7 Bridges Brewery wants to create the most profitable products and services, they will need a
smart marketing strategy. Marketing strategies start with market research, taking into account
their optimal target customers, ongoing competition, and what trends may occur. Using this
information, 7 Bridges will determine the benefits that current and prospective customers expect,
the price they are willing to pay and they can distinguish 7 Bridges products or services in the
market.

Set up effective distribution

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When the 7 Bridges already know the product features they offer, the target customers of who
they are and about their price is, marketing strategies fit will be able to help the 7 Bridges choose
the best position to maximize marketing effectiveness. Younger customers will be more likely to
shop online by phone or on the web, paying by Vimomo or by credit card. Older customers may
prefer to shop at retail outlets. If the market research of 7 Bridges shows that products should be
sold at retail stores but they do not have salesperson, they can link to a wholesaler or distributor.

Support marketing communication

Without market research and a strategic marketing plan, 7 Bridges can get in trouble when
salespeople respond, send messages to customers that do not match brand identity has been built.
The marketing plan allows 7 Bridges to determine whether depending on the nature of the
product, choosing an effective advertising channel can be a particular magazine, radio or website
that matches the sales plan of 7 Bridges or not.

Organizational impact

When 7 Bridges has a marketing plan, their departments can work better together, because all the
workflows come from the same plan. For example, their advertising department will talk to
product developers to identify product information. Sales will go through with the people
responsible for image management to determine if they can offer the promotion without affecting
the brand of 7 Bridges. Many businesses still misread the importance of a marketing plan. So,
while businesses that are still struggling to understand why they do not spend a lot of cost in
months that did not work, there are other businesses with the suitable marketing plan become the
leader in the industry.

2. New Product Development

"New product development is the development of original products, product improvements,

product modifications and new brands through the firm's own product development efforts."

-Philip Kotler & Gary Armstrong-

According to Philip Kotler and Gary Armstrong, the new product development process will go
through eight steps:

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1/ Form the idea

Businesses seeking new product development ideas through the following sources:

 Internal:

R & D department: new product development ideas are usually offered by R & D, but not all
businesses have R & D departments.

Marketing Department: The marketing department is characterized by the fact that they have a
clear understanding of the market, so they can comment on the idea of developing new products.

CEO

Management

Employees

 External:

Suppliers: Suppliers of materials can provide ideas for new production techniques and materials
for new product development.

Distributors: Due to the frequent access to customers, distributors can make suggestions about
the needs, needs of customers, the problems that customers have when using the product ...

Customers: Customers can be a good source of ideas for developing new products. Businesses
can do surveys to consult them.

Community: Enterprises can organize contests and events so that local communities can
contribute ideas for new product development.

Competitors: In addition to the above methods, enterprises can observe and investigate
competitor's products, thus introducing the idea of developing new products that can overcome
the disadvantages of products.

2/ Refinement ideas

After completing the search, form the idea, the business will filter, reject the idea is not suitable
and retain the idea or suitable.

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To do this, businesses need to create a floor drainage system that filters ideas. A marketing expert
has put together a common criteria system for filtering ideas: R-W-W (Real-Win-Worth). Where
R means whether the idea can be implemented or not, whether it suits the client's needs, the
market and the actual situation of the company or not? Wich means success - whether this
product after the launch of the market is likely to sell or not? The last W means doing - whether
the implementation of this idea is consistent with the overall development strategy of the
business or not, the product after the market has the potential for profit or not? When all the
answers are to a new product development idea, in other words, R-W-W is satisfied, that means
that the idea is right.

3/ Develop and test the model of the product

After going through the stage of filtering ideas, good ideas, suitable will be developed into the
product model and put to trial. Product concept is the idea of developing new products that are
specified as the actual product (shape, color, composition, utility, characteristics, price ...),
although Still, it's just the idea.

After-product models will be tested to select the most suitable model. The most common way
businesses test is to survey customers to see what they are doing. However, businesses can still
rely on agencies, or marketing, technology, and technical experts for advice

4/ Develop marketing strategy

Once you have the right product model, the business will develop marketing strategies for that
product model. The work includes:

Determine the target market: Who are the customers? What are their characteristics (geographic
location, age, sex, occupation, income, personality, lifestyle ...)?

Make plans for the remaining 3 Ps in the marketing mix: price, distribution system, promotion
(the first P has been clarified in the development and testing of product models)

Develop sales plans, long-term profit targets.

5/ Estimated profit

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Executives must revise sales, cost, and profit estimates to determine if they meet the business
goals. If a profit goal is achieved or at least a sufficient amount of product can be sold, the
enterprise may decide to step into product development.

6/ Product development

Businesses embark on turning the product model into a true product. When product models are
designed and manufactured, they must be tested. Functional tests are conducted in the laboratory
and in the real world for customers to ensure that they operate safely and efficiently. Testing new
products for customers is to ask customers to try and evaluate each characteristic as well as the
entire product. If this stage is successfully completed, the new product will be marketed.

7/ Market test

At this stage, both the product and the marketing strategy built before will be brought into the
real environment for testing.

Market testing allows marketers to gain experience in marketing for new products, draw on the
issues that need further processing, and find out more information before proceeding. The
product marketed on a large scale and much more expensive. Market testing also helps
businesses to understand the reactions of consumers as well as of intermediaries in the handling,
use and acquisition of products. The results of market testing can be used to predict sales and
profitability more accurately.

Through market testing, the business can identify the right brand and packaging.

8/ Commercialization

Tung new products to the market. Enterprises need to specify when to launch new products
(time), new products will be sold to the place (place) to limit the risk as the competitors are
playing bad , Economic Crisis , etc.

(Source: LET'S MARKETING, 2017)

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