Vitango Case

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Solution 1: The five micro environmental factors that affect the development and introduction of Vitango are: The Company: The Company in this case is Coca-Cola. Coca-Cola spent years to develop a powdered beverage named Vintage. The company hasn’t any problems with finance related issues. The company had already done successful testing of the products in Botswana. Still the product has issues related to its launching due to preparation & usage of products in countries with lack of pure water and price issue in poor countries. Suppliers and marketing Intermediaries: To promote, sell and distribute the product to the final users the company needs the resellers, physical distribution firms, marketing services agencies and financial intermediaries. In this case Coca-cola may choose to go with direct distribution with its own channels or indirect distribution by selling through the successful running channels like McDonalds or Wendy’s. The problem in this case is that the access of poor people/ target consumers to these channels is very less. Customers and Consumer Markets: The most important factor in this case is consumer and its behavior. The major consumers of Coca-Cola for Vitango are people of developing/ poor countries. The people in these countries don’t have enough educational resources/ knowledge to judge the benefits of products like Vitango as compared to its price. Even if they have knowledge they are lack of financial resources to buy these products. So, companies like Coca-Cola have to make perfect balance between product awareness and price sensitivity of the products like Vitango. Competitors: Dealing with competitors is most important strategy of successful company operations. Company cannot achieve its goal if it fails to beat its competitor products. The main competitors of Vitango in this case are other powdered products and soft drinks. The Vitango has advantage of its nutritious contents over the other products but this advantage needed to be promoted to overcome short comes of its high price over the other products. More ever price needed to be in accessible range of its consumers too. Publics: Public is the group that has actual or a potential interest in or impact on an organization’s ability to achieve its objective. The major parts of public in this case are Governments of target countries and GAIN (the Global Alliance for Improved Nutrition). The government is responsible to provide the best possible nutritious products to its citizens. So the government may welcome when companies like Coca-Cola approach them for approval to sell their nutritious product like Vitango. But this action of private companies like Coca-Cola may be suspected by general public bodies due to suspect of hidden motive of private companies. To overcome this suspect the help nonprofit organizations like GAIN can be helpful in this case.

Solution 2: The main four criticism of marketing’s impact on individual customer are: High Prices: Many critics charge that marketing system causes prices to be higher than they would be under normal sensible system. These are mainly due to high distribution costs, advertising and promotion costs and excessive markups. In the Vitango case the companies had heavily invested in research & development of the products. To recover those investments companies have no option other than high markups. In this case markups are in reasonable range due to competition by other products and financial capability of target audience. Company can control distribution costs but reasonable advertising & promotion is required to aware the people about the nutritious benefits of these products. Deceptive Practices: Another critic of marketing is deceptive practices that lead consumers to believe that they get more value than they actually do. In this case this seems to be less applicable as research in Botswana and other parts shows advantages of nutritious products over others. So if products...
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