Strategic marketing planning for a supplier of liquid food packaging products in Cyprus Demetris Vrontis
Marketing Department, School of Business, Intercollege, Nicosia, Cyprus
Department of Management and MIS, Intercollege, Nicosia, Cyprus, and
Henley Management College, Henley-on-Thames, UK
Abstract Purpose – This paper aims to provide a strategic review of the marketing function for a Cypriot company operating in the liquid food packaging industry (for reasons of conﬁdentiality the name of the company is withheld). The paper focuses on the dairy market, where the company does not have a very strong market position, and illustrates how through an analysis of the environment (internal and external audit) the company’s strategic direction and marketing plan can be designed more effectively. Design/methodology/approach – The paper adopts a case study approach with primary research through in-depth interviews with managers of the company under investigation. Findings – The paper concludes that, by undertaking to rectify its weak marketing function, the company can develop capabilities that will lead to a fully integrated relationship with all its customers and signiﬁcantly improve its market share. Originality/value – The value of the paper lies in providing a new case study that highlights the importance of making the marketing function a more market/consumer oriented process that bridges the gap between strategic change and industrial complexity and instability. Keywords Business environment, Marketing planning, Management strategy, Strategic marketing, Dairy products, Cyprus Paper type Case study
The aim of this paper is to provide a strategic review of the marketing function for a Cypriot company operating in the liquid food packaging industry. The company was established in the early 1980s and the purpose of its business is to provide marketing and after-sales services of its products to local liquid food manufacturers in Cyprus. As the company promotes and sells carton packaging and ﬁlling equipment for liquid food, its success depends partially on how well it provides its services. In this context, marketing activities are viewed as an important element in achieving the objectives of the company. The development of this case is based on a number of assumptions, which are summarised in Table I.
According to Fiﬁeld and Gilligan (2000), marketing planning is a process of: . analysing environmental, competitive and business factors affecting business units and forecasting future trends in business areas of interest to the enterprise; . participating in setting business objectives and formulating corporate and business unit strategy; . selecting target market strategies for the product-markets in each business unit; . establishing marketing objectives; and . developing, implementing and managing program positioning strategies for meeting target market needs. This process is illustrated in Figure 1.
Situation analysis – environmental scanning
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Situation analysis is the ﬁrst and one of the most important stages in marketing planning. This is because “a company’s ‘strategic ﬁt’ with its environment is central to its strategy. Further, effective strategies cannot be developed without A teaching note is available from Dr Vrontis Demetris at: firstname.lastname@example.org
Journal of Business & Industrial Marketing 21/4 (2006) 250– 261 q Emerald Group Publishing Limited [ISSN 0885-8624] [DOI 10.1108/08858620610672623]
Strategic marketing planning Demetris Vrontis et al.
Journal of Business & Industrial Marketing Volume 21 · Number 4 · 2006 · 250 –261
Table I Assumptions made
Environment Business segment Competitors Social Economic and trade Political Assumption(s) Product lifecycle of milk will continue...