| http-equiv="Content-Type" content="text/html; | | | | useful for Taylerson syrups to change their sales |
| charset=utf-8"> | | | | goals too. For instance, the pricing that the company |
| Introduction | | | | has been utilising in the past may not work in the |
| The syrup industry is slowly turning heads in the UK | | | | present and this is definitely an issue that they need |
| market. Entrepreneurs have realised the potential | | | | to look into if they intend on improving their |
| benefits that emanate from such a business. | | | | profitability. For one, the company should link their |
| However, syrup manufacturers or sellers operate like | | | | pricing strategies to the value that their commodities |
| any other business, they need to employ sound | | | | bring to the consumer. This would work more |
| business management strategies in order to reap the | | | | effectively than if the company marketed their |
| benefits of their input. The company under study is | | | | priced their commodities based on the latter |
| currently having difficulties in maintaining profits. The | | | | · Production cost |
| essay shall examine some of the possible causes of | | | | · Competitor pricing |
| these problems and solutions sought for these | | | | · Consumer demands |
| challenges. | | | | The company’s pricing should reflect the |
| Taylerson’s Syrup business’ major | | | | economic and psychological benefits that their |
| hurdles and possible solutions | | | | products offer. For instance, their products are |
| Overall positioning | | | | natural, healthy, highly flavoured among others. It |
| The business under consideration has just entered | | | | would be ineffective if the company chooses to cut |
| the syrup industry, most consumers are not fully | | | | down on the high value of its commodities by |
| aware of what the company has to offer. | | | | offering low prices. One way of adding value to their |
| Consequently, the company is struggling with their | | | | commodities is by offering timely deliveries and |
| product because they do not have a strategic | | | | always making sure that their commodities are |
| direction that guides them in their businesses. They | | | | stocked fully. These measures may seem simple but |
| are running their business without specific focus and | | | | they go a long way in promoting the psychological |
| this is severely hurting them. Every company/ | | | | factors that the syrup will bring to a respective |
| enterprise/ corporation needs to have a business plan | | | | company. (Giaimo, 2007) |
| that lays out all the important things needed to make | | | | Taylerson should be at a point where they |
| the company tick. (Wilson, 2004)However, it can | | | | understand their competitive advantage. This means |
| become difficult trying to meet all the objectives laid | | | | that the company should refrain from using pricing |
| out in a business plan. Consequently, summarising the | | | | strategies that erode the value of their commodities. |
| business plan into one sentence goes a long way in | | | | This company’s mission is mainly focused on |
| ensuring that employers and management stay on | | | | the quality of their syrup and not on low pricing. |
| track. In other words, a positioning strategy is what | | | | Consequently, it is unwise for the company to give |
| is needed to get this company back on its feet again. | | | | some of their loyal clients discounts during periods of |
| This particular company lacks a reminder of what | | | | poor performance because it is ruining the same |
| their major objectives are through a positioning | | | | client base that could prove to be worthwhile in the |
| strategy. The latter would assist this respective | | | | end. They need to lay more emphasis on the fact |
| company in achieving the following; | | | | that they are actually value driven and that their |
| · It allows the business a chance to define the | | | | products have a high value. (Stern et al, 2006) |
| category where their products fit | | | | Taylerson also needs to segment its pricing. This |
| · It lays out the benefits associated with | | | | aspect rarely exists in food related items yet it is |
| differentiation | | | | common among service providers. Taking airline |
| · It clarifies the prerequisites to successful | | | | companies for example; many companies offer first |
| differentiation | | | | class, economy class and business class. The same |
| In other words, a positioning strategy would have | | | | approach needs to be taken up by Taylerson. The |
| assisted this new syrup brand to establish clear steps | | | | company could offer products that have higher |
| needed to succeed in the industry. This is actually the | | | | flavour concentration at higher prices. Also, the |
| basic foundation of business management. | | | | company could package its product in such a manner |
| The new syrup business is struggling because they | | | | that the more luxurious a certain package seems, the |
| have not clearly laid out a strategy for what | | | | higher its price. Besides the latter, the company could |
| makes them unique in the syrup business’ | | | | also link location to their pricing strategies. For |
| they need to look at all the marketing, merchandise | | | | instance, those clients that may be located in distant |
| and in store attributes that can make them stand out | | | | regions could be charged more for their products |
| from the rest within the industry. There is a need for | | | | than those that are found near their headquarters. |
| differentiated propositioning within this company | | | | This can go a long way in boosting the |
| because as it is today, many syrup customers may | | | | company’s image. |
| still not be able to see the difference between what | | | | Lastly, the company ought to charge their consumers |
| this case study offers with what other competitors | | | | for some free’ services. For instance, if |
| in the market do. Since it has been established that | | | | the consumer wishes to have their goods delivered, |
| the company needs to do effective positioning, then | | | | then this should be charged separately from their |
| it is necessary to find out why the company under | | | | commodity. By doing this, Taylerson would be sealing |
| study was not able to achieve this in the first place. | | | | the sources of revenue leaks that are affecting the |
| (Massingham and Lancaster , 1999)First of all, | | | | company. Numerous companies loose potential |
| engineering a positioning strategy takes up a lot of | | | | sources of income by failing to identify additional |
| time and requires numerous resources. Taking the | | | | revenue sources and this is exactly what is happening |
| example of Honda Automobile company; this | | | | to Taylerson. (Wreden, 2002) |
| company decided to take some months out of their | | | | Distribution strategies |
| normal production functions to strategise on a | | | | As part of the company’s recovery path, |
| positioning strategy. They deliberately conducted | | | | Taylerson should consider distribution as one of the |
| research on the entire motorcycle industry and found | | | | components that can improve their marketing mix. |
| out the unique things about themselves. The overall | | | | The company has been assuming that their duty is |
| result of their positioning strategy was that the | | | | transferring their commodities to their distributors and |
| company was able to upset decades of poor | | | | leaving it at that. However, these distributors play an |
| performance. Similarly, the company under study has | | | | important role because some of them have the |
| not taken time out to conduct research on the entire | | | | ability to access clients. Consequently, they need to |
| syrup industry. They have not mapped out a clear | | | | ensure that distributors market their commodities to |
| definition of where they need to go. The problem | | | | consumers the way they would desire them to do |
| with this company is that employees and other | | | | so. Shown below is a diagrammatic representation of |
| members of the organisation do not clearly | | | | future distribution mechanisms for Taylerson |
| understand the necessary issues that are required to | | | | The company could adopt a series of distribution |
| make their products more successful. Consequently, | | | | channels in order to maximise the level of sales |
| employees and management are merely doing what | | | | received from each category of distributors. (Dent, |
| they ought to do regardless of the repercussions of | | | | 2008) For instance, the company could consider |
| their actions. | | | | utilising retailers as one of the channels of distribution. |
| Positioning will be crucial for Taylerson Brand because | | | | In this case, retailers have direct access to the |
| the company will have defined how they want their | | | | market. Consequently, they should be given |
| respective client s to view them. Talking the example | | | | incentives for choosing to sell their commodities. |
| of what other companies in the UK have achieved; | | | | They could do this by offering retailer merchandising |
| Volkswagen bought the Skoda brand and positioned | | | | facilities. Those retailers who choose to work with |
| the vehicle as a family car. This perception has | | | | them, should also meet their respective obligations. |
| stayed with many customers to date. Similarly, | | | | This could be achieved by conducting sales |
| Taylerson ought to look for ways of making their | | | | promotions. In this regard, retailers need to |
| brand stand out from its competitors in the market. | | | | incorporate a series of issues laid out in the |
| This can be achieved through the following; | | | | promotional strategies of the company. (These will be |
| · Choosing to position the brand close to | | | | mention below). Also, the company needs to look for |
| competitors | | | | ways of ascertaining that their commodities are well |
| · Choosing to position the brand away from | | | | represented by checking for product packaging. This |
| competitors. | | | | goes a long way in ascertaining that clients have |
| Because the company is operating within the syrup | | | | been properly reached. Retailers also need to keep |
| industry which has so many other substitutes, then it | | | | reminding consumers about the commodity. ( |
| would be best for the company to adopt a strategy | | | | Perreault et al, 2008) |
| that makes them stand out from the crowd. (Kotler, | | | | Taylerson should also consider wholesalers as part of |
| 1999) | | | | their distribution strategy. For instance, the company |
| Brand positioning | | | | could ensure that this respective groups receives |
| In this case Taylerson should look for the perfect | | | | discounts for purchasing large volumes of syrup. Also, |
| marketing mix for its syrup brand. They should | | | | they could encourage more wholesaling by giving |
| examine pricing, distribution, promotional and branding | | | | trading allowances to those who accept to do |
| strategies. Starting with the latter strategy. The | | | | business with them. In return, wholesalers should be |
| company should focus on the positive attributes of | | | | briefed on their responsibilities too. They need to |
| their syrups and the values that their syrups add to | | | | remind retailers about the brand and image of the |
| people’s lives. The first thing, the company | | | | company and they need to have the ability to |
| needs to realise is that their product is a natural | | | | portray good brand identity. The company stands to |
| commodity. Many consumers in the UK are becoming | | | | benefit from this distribution channel because |
| increasingly health conscious. As a result, people are | | | | wholesalers take the worry out of transporting or |
| looking for natural or organic products. Taylerson | | | | handling commodities in bulk. The company will not |
| should use this aspect to add value to their brand. | | | | have to engage numerous finances and time in |
| The company ought to focus on the fact that their | | | | dealing with these intricate issues. By doing this, the |
| syrups are not artificially based and that they are | | | | company can place more emphasis on the product |
| organic. This is also means that the company should | | | | itself rather than on other issues. Besides this, the |
| promote nutritional benefits of the commodity and | | | | company will also get a chance to spread production |
| use that to their advantage. They could inform clients | | | | costs to another group |
| about the product’s ability to boost their | | | | Direct selling is an important distributional tool for |
| health. | | | | Taylerson because through this, they can reach the |
| Additionally, many consumers these days have | | | | consumer directly and market their product as they |
| greater interest in the value that commodities can | | | | would like it to be marketed. However, opening up |
| add to their lives rather than the overall quantity that | | | | stores for them would not be a plausible idea per |
| they can purchase at a specific price. Consequently, | | | | say. Instead, it would be favourable if the company |
| Taylerson brand should market their syrups as value | | | | utilised telephone and mail order sales. Many |
| added. Research has shown that a large percentage | | | | companies that use this mode of distribution have |
| of consumers prefer flavoured syrup over | | | | testified that the results are actually tangible and that |
| non-flavoured syrup. Consequently, it can be asserted | | | | they do not have to spend too much time or |
| that syrups with such an attribute would have an | | | | resources here. Telephone and direct mail allow the |
| added advantage over those ones with excess | | | | company to reach a vast number of clients without |
| concentration of sugar or artificial sweeteners. | | | | having to contact them in person. In close relation |
| Taylerson should portray the image of value addition | | | | with this approach is internet selling. Almost all |
| through its different flavoured commodities. (Giaimo, | | | | companies have adopted the idea of internet selling |
| 2007) | | | | because it allows them to reach large numbers of |
| Many consumers within the UK are now interested in | | | | client s(even internationally) without having to go |
| home cooked meals. However, not all of them may | | | | through the intricacies of physical movement. The |
| be aware of the benefits of home cooked meals. | | | | company needs to do this through maintaining an |
| Syrups are widely used at home for making home | | | | attractive website and also through placement of |
| beverages. Consequently, it would greatly assist the | | | | advertisements in other internet locations. |
| company is they chose to position their product as a | | | | Franchising is another viable option for the company |
| home preparation tool. In close relation to this is the | | | | because through this method, they could ensure that |
| fact that many consumers are looking for ways in | | | | their commodities are being sold in the same way |
| which they can merge convenience and quality in hot | | | | through the entire country. Franchising allows the |
| beverages such as coffee. This trend can be | | | | company to send out a unified message to |
| indicated by the fact that large numbers of coffee | | | | consumers about their products because all franchises |
| machines are currently being purchased by | | | | are run under one theme. However, the company |
| consumers for home use. This is definitely an | | | | ought to start with the most suitable locations. |
| indication that the company ought to position the | | | | Thereafter, they could choose to expand their |
| brand as a family-based commodity. Statistics indicate | | | | franchise. However, the expansion process should be |
| that thirty percent of consumers purchase syrups | | | | done in a controlled manner otherwise it could |
| because they believe that it would add value to the | | | | destroy the very objectives which they had set out |
| coffee making experiences at home. Besides the | | | | in the first place. (Dent, 2008) |
| latter, research also shows that a fifty percent more | | | | The last aspect about the company’s |
| women purchase the commodity more than their | | | | distributional strategy is the use of coffee shops and |
| male counterparts. Consequently, it would be helpful | | | | coffee bars. Through this channel, the company could |
| for Taylerson brand if they focused on this group as | | | | access fresh consumer segments such as the |
| their target consumer. However, not all age groups | | | | younger population. Through such an approach, the |
| are enthusiastic about their product. As a matter of | | | | company could also ensure that these respective |
| fact, consumers between the ages of twenty five | | | | clients gain knowledge about their product offering |
| and fifty four are ideal as target markets for this | | | | and that they understand what the Taylerson |
| particular commodity. It is therefore essential that the | | | | experience is all about. In order to certify that |
| company markets it products with this particular | | | | consumers know about Taylerson’s |
| consumer in mind. | | | | commodities, the coffee bars could place |
| It should be noted that overall sales of tea and | | | | Taylerson’s syrups in their menus. They could |
| coffee within the United Kingdom have been on the | | | | also inform consumers about the benefits of the |
| decline over the past few years. Consequently, | | | | commodity when they ask about it. In other words, |
| over-relying on this category to promote | | | | coffee shops will be a suitable promotional tool for |
| Taylerson’s product independently would be | | | | the company. Besides the latter, the company could |
| unwise. Taylerson Syrup needs to look for ways and | | | | also grant these coffee bars permission to offer free |
| means of relating their product offering to coffee | | | | testing. The latter is a suitable promotional tool both |
| and tea sales within the market. This is because | | | | for the coffee company and for Taylerson’s |
| coffee bars are the passageways that assist this | | | | syrups. (Giaimo, 2007) |
| company in value addition. It should be noted that | | | | Promotional strategy |
| through coffee bars, young people can learn about | | | | This is one of the most crucial segments of |
| the nature of Taylerson’s products. Also, | | | | Taylerson s marketing mix because it could make |
| through these coffee bars, consumers can see the | | | | the difference between changing their profits or not. |
| benefit of buying espresso related products and this | | | | Taylerson needs to consider the following specifics as |
| may eventually make them purchase coffee making | | | | part of their promotional strategy |
| machines. Consumers now want the benefit of taking | | | | · Exhibition |
| coffee at their own home as opposed to | | | | · Direct mail |
| concentrating on commercial consumption. This is a | | | | · Sales promotions |
| green light for Taylerson’s syrup products, | | | | In order to let the public know about the company, |
| they need to portray an image of family values and | | | | the first thing Taylerson needs to do is to conduct |
| value addition. (Stern et al, 2006) | | | | exhibitions for its products. This could be done in a |
| Our research has also shown that syrup consumers | | | | series of locations. The company needs to display all |
| look for certain things in the product i.e. | | | | the various products and flavour that they offer, |
| · High flavour concentration | | | | free testing and free samples within those exhibitions. |
| · Less sugar overdose | | | | Also, they need to talk about the special qualities |
| · Less artificial sweeteners | | | | that the product has as was mentioned earlier. Such |
| · Less preservatives | | | | aspects include issues such as; high brix, low artificial |
| · Low carb syrups | | | | sweeteners and natural raw materials. In order to |
| · Differential flavouring, thickness and sweetness | | | | make the exhibitions work, it would be necessary to |
| In light of these facts, then Taylerson Company | | | | advertise them broadly through radio, internet and |
| should strive for ways of making their commodities | | | | televisions. |
| fit these market requirements. For instance, the | | | | The company needs to make direct contact with |
| company should offer a variety of thicknesses, | | | | their consumer and inform them about their |
| flavour and sweetening to suit different consumer | | | | commodities. This can best be achieved through the |
| tastes. Additionally, the company should focus on the | | | | use of the internet. The company could display some |
| fact that they do not use artificial sweeteners in their | | | | of the commodities that they have and talk about its |
| products. Indeed, more emphasis should be on the | | | | unique features. Since the internet has so many |
| fact that their products have higher flavouring than | | | | advertisements, it would be necessary for the |
| sugar. Also, Taylerson should put cross the message | | | | company to create colourful commodities that are |
| that their commodities are actually low carb. | | | | designed to capture respective audiences wherever |
| It order to appeal to their respective audience as a | | | | they may be. This means that the company should |
| group that can bring out the best syrup experience in | | | | be ready to get attractive actors and actresses to |
| the market, it is essential for the company to | | | | market their products for them online. In line with a |
| summarise the attributes and benefits that their | | | | direct approach, the company could distribute leaflet |
| syrup brings to consumers so that customers can be | | | | in different households. This will go a long way in |
| able to identify with their commodity. This should | | | | ensuring that the respective clients have been |
| centre around family values. Taylerson’s | | | | reached. Leaflets are particularly advantageous |
| products are natural and hence healthy for the whole | | | | because the clients who may not be available at the |
| family. Taylerson’s syrups can be taken in | | | | moment can still be reached. Also, leaflets are a |
| coffee and tea at home. This means that they | | | | relatively cheap method of advertising and this will |
| facilitate family bonding. Also, their syrups are rich in | | | | help the company boost its sales. ( Perreault et al, |
| energy and this is particularly useful for children who | | | | 2008) |
| are still growing-this is directly related to the family. | | | | Lastly, the company needs to consider offering sales |
| Also, the syrup induces a happy feeling and this | | | | promotions. This can be a very useful tool for the |
| promotes happiness within the family. The syrup | | | | company because it allows them to compete on the |
| tastes good yet does not compromise on its good | | | | basis of their price. Examples of ways which they |
| taste through artificial sweeteners; this promotes | | | | could this is through Discounting, Merchandising, |
| family nutrition. If Taylerson were to use the family | | | | Special discounting allowance, Price marking. Price |
| as their positioning style, then they can change all | | | | marking is particularly useful to the company because |
| their other qualities to fall in line with this respective | | | | it lays out all the cards on the table. Clients can make |
| attribute. (Kotler, 1999) | | | | quick choices about whether a certain price suits |
| Pricing strategy | | | | them and can therefore plan ahead if they do not |
| Since the company’s products have not | | | | have those resources at that moment. The company |
| performing well, then it is essential for the company | | | | should offer discounting allowances only in instances |
| to look for ways of enhancing this through their | | | | where the consumer has purchased a lot of goods |
| pricing. Many companies have made the mistake of | | | | from the store. Discounting allowances can be |
| looking towards their pricing for quick fixes to their | | | | sources of revenue leakage if given to clients who |
| products. A word of caution for Taylerson brand is | | | | do not bring in large volume sales. This is a tricky |
| that sometimes poor pricing can erode one’s | | | | area that needs to be approached with caution. |
| brand image, ruin customer relationships and impede | | | | Merchandising is also a viable option for the company |
| profitability by failing to meet one’s production | | | | because they need to look for all the possible |
| costs. Setting the right pricing could be the secret | | | | channels that will get their messages across to other |
| behind recapturing some of the company’s | | | | categories of clients. |
| lost sales. It is a known fact that when one reduces | | | | Conclusion and recommendations |
| their prices, they can get quick cash flows that will | | | | After outlining what needs to be done, |
| assist them in the process of marketing their | | | | Taylerson’s needs to follow the following |
| commodities. On the other hand, lowering prices may | | | | route when implementing the latter mentioned |
| not be the ultimate solution for this respective | | | | recommendations. First of all, the company needs to |
| company because these price cuts may not be done | | | | train their employees about their brand positioning. |
| in line with current economic trends. The following | | | | They need to inform them about all the desirable |
| aspects should be taken up by Taylerson as their | | | | qualities of the company and ensure that employees |
| pricing strategy. (Wreden, 2002) | | | | transfer the same to other clients. Training ought to |
| First of all, the company needs to remember that | | | | be done for a period of three months. Since the |
| there is a bigger picture. Momentarily decreasing or | | | | company needs to focus on the family. They need |
| increasing prices may cause changes in the present | | | | to create packaging that gives this message. They |
| but hurt the company in the future, In this case, the | | | | can do so by depicting healthy-looking individuals on |
| company should focus on the effect that price has | | | | their packages. Also, the company needs to work on |
| on the volumes of their commodities. In this case, | | | | its pricing by tailoring it to meet their consumer |
| increasing prices to cover costs may not work when | | | | segments. This could be done over a period of five |
| considering large volumes. Taylerson should also keep | | | | months. Promotional strategies will vary; exhibitions |
| in mind that their prices determine consumer | | | | can be done for a period of six weeks, door to door |
| perceptions of the commodity. Currently, the | | | | selling and the internet need to be continuous |
| company has not managed to attract a lot of clients; | | | | processes. Changing distributional strategies will be |
| consequently, it would be favourable to keep their | | | | crucial by laying more emphasis on coffee shops. |
| products at a reasonable price. Even when the | | | | References |
| company has established itself in the market, it would | | | | Wreden, N. (2002): How to think about pricing |
| be wrong for the company to take advantage of | | | | strategies in a downturn, Harvard Management |
| their loyal consumers by raising prices because this | | | | Journal, Vol. 7, No. 3. Pp 34 |
| could create an image of a company that does not | | | | Dent, J. (2008): Distribution Channels: Understanding |
| have focus. Taylerson should also keep in mind the | | | | and Managing Channels to Market; Kogan Publishers |
| fact that their pricing strategies could affect | | | | Perreault, W. et al (2008): Basic Marketing- Marketing |
| competitors within the market. If they decide to | | | | Strategy Planning Approaches; McGraw-Hill |
| lower their prices excessively, then competitors may | | | | Stern, L. et al (2006): Marketing Channels; Prentice-Hall |
| decide to counter there attacks by lowering theirs | | | | Wilson, R. (2004): A Blueprint for Designing Marketing |
| too. This spoils the very purpose of changing their | | | | Channels, retrieved from |
| prices in the first place. | | | | Kotler, P. (1999): Marketing Management; Prentice-Hall |
| Besides having long terms goals for the | | | | Massingham, L. and Lancaster , G. (1999): Essentials of |
| company’s commodities, it would be quite | | | | Marketing; McGraw-Hill Giaimo, M. |