PRINCIPLES OF MARKETING PROJECT / Group 8

Members
Alejandra Perafan
Karla Vega
Ana Maria Ramos
Catalina Navarro

201513327
201510327
201510451
201423364

V. Marketing Strategy
A. Primary Target Market
Characteristics
Demographics

Age and Life Cycle Stage: Our product is basically offer to people over 15 years
old that study or have any connection with the University of La Sabana, but also
children who have smartphones and come to the University can use it. We do not
have a specific age range of segmentation.
Gender: We do not have gender segmentation; women or man, without
distinctions, can use our product.
Income: We target Middle- High income groups, because our clients must have
smartphones for use the application. But also, people from Low Income who have
smartphone can use our application.

Psychographics

Psychographics: We do not divide our market on social class, because any

people that have a Smartphone can use the app. People who use it is the people
that want to save time, in this case not doing lines for the lunch.

Behavioral Segmentation

Benefit Segmentation: We have benefit segmentation, because our customers

take advantage of the service, in the case that they do not have to make lines
and they can find where to eat while the lunch is ready.
Loyalty Status: We will want to have strong loyal customers, providing them the
best service. Our customers every 2 months will answer a survey when they can
help us to improve our service and also they qualify our performance, this is very
important for us because we can see how we are doing our job and how we can
make better our service.

Market Segments

Undifferentiated Marketing: Our company will choose this segment, because we

are going to launch just one product, in this case the application that provide a

service for our customers. We are not going to launch our product for a specific
market or a small market.

Values

Our company provides different values to our customers and also inside the
organization we make different activities to explain to our employees why values
are important and how they can use it in their daily activities.
The most important values that our company have are: honesty, respect,
solidarity; with these values the company will perform very good activities and our
customers will be very happy with our service. In the application we will explain
in detail how it works and how much cost, it is very important for us that our
customers will have as much information of the service as they need it.

Basic needs, wants, preferences or requirements:

We create this application because we actually see that in the University people
sometimes do not have enough time to have lunch and they have the need to eat.
So this service helps them to satisfy that need, and while the lunch is ready they
will find a table to eat.

B. Service Strategy

Brand Name

Our brand name is Lunch on time, we put this name because is an easy name to
remember, is easy to pronounce and also it can be translate into Spanish without
problems. This name explains in a wide view what are we offering and when people
read it can deduce what is the service about.
o Brand Positioning
We are going to position our brand, providing the best service, with
high quality and always taking care of the opinion of our customers.
o Brand name selection
To select our name brand, we choose Lunch on Time, because is
an easy name to pronounce and customers can remind easy.

Label
The label does not apply to our service, because we have an application and it
does not need a label. In the application will be a demo in which is the explication
of the app uses.

Logo Design

Major features and benefits:

The major and most important benefits of our service is that is reliable and it
satisfy a need. People will save time and they can have lunch in calm, without
thinking that they are not going to find an empty table.

Marketing Strategies for a service company

o The service profit chain: As a service company we will focus our attention
on our customers and employees

Internal Marketing: Employees of the company are going to have

many activities in order to motivate them. As a consequence, the
employees will have participation in the decisions of the company,
because we want to make feel them, as important people in the
organization and that they have voice and their opinions are
important.
External Marketing: An important goal for the company is to create
strong relationship with customers, so the company will provide an
excellent service and will be improving it many times as needed.

o Managing service differentiation:

The service that we offer is actually not used in any other University
in Bogot, we are innovating, providing an excellent service that
satisfy a current need of students of University of La Sabana.

o Managing service quality:

We are going to have quality in our service when we deliver our
orders in the estimated time, satisfying customers needs with our
best service. Also, the application must work fast without
interruptions and providing all the explications needed to show how
the application works. All these points will help the company to
provide a service with high quality.

C. Pricing Strategy
The pricing strategy that best fit to our project is good-value pricing strategy because
this offers the right combination of quality and good service at a fair price. Our app
allows the users to order what they want to eat at the time they want it. They only need
to pay 8% more over the total cost of its order that is a really low charge because they
will save a lot of time. Most of the university`s lunch prices are between 10.000-15.000
COP which means that the charge will be only between 800-1.200 COP.
Customers will be paying a little more than usual but based on that many students have
really short time between classes to have lunch, this app will help them to save time
because they would not need to make any long line, and they could order their lunch
while they are in class. So, when they go out their lunch will be ready and they will not
have to wait.
Our main advantage is that we have not any competitors because we are the first one in
the market offering this type of service. For this reason, is important for us to bring an
excellent service looking forward reach as many customers as possible. For this, is
imperative to satisfy our customers service expectations.
At the beginning of our project, we will need to invest in the acquisition of the app, that
cost around $1000 USD and the function permissions costs $70 USD per year in App
Store and other $70 USD in Play Store. At the moment we would not hire employees but
according to the growth and the performance of the company, we will start hiring our
own employees.

FIXED COSTS
App

1000

App Store Permission

70

Play Store Permission

70

TOTAL

$1.140 USD *(2.800 COP) = 3.192.000 COP

Gross Margin per unit (Average): (1.200+800)/2=1000

BEP

3.192 .000
= 3.192 units
1000

D. Distribution/Supply Chain Strategy

Overall supply chain strategy (including distribution intensity):
Our overall supply chain strategy is based on us as providers of the application to our
distributors by hiring engineers to help us to develop the app and since our product is a
virtual one, the distribution intensity is that it always would be available for customers to
download it from our distributors and intermediaries.
Channels and intermediaries to be used:
To distribute our product, we selected as intermediaries Google Play Store for Android
and App Store for Apple since most of smarts phones use these two operative systems
and our consumers can obtain the product from them. Another channel of distribution is
the web page of the university so the product can be reached more easily.
Connection to differentiation/positioning strategy:
The channels of distribution that we selected are highly related to our positioning
strategy since is the only application in those apps stores for ordering the food in the
university campus.
Connection to value (nonmonetary costs):
The connection to value that provide our distributors is that they represent a safe source
of the product since to offer an application it is necessary to count with some
requirements of quality and consumers trust in those distributors to get many types of
applications for smartphones.
Strategies to ensure channel support (slotting fees, guarantees, etc.):
To ensure the support of our distribution channels we must always pay fees for they
service on time so we can guarantee the availability of the product to our customers.
Tactics designed to increase time, place, and possession utility:

To increase our time utility during the period of higher demand we will be
checking the correct running of the app so if something wrong happens it will be
fixed without affect the quality of the service.

To increase our place utility, we have chosen the most known downloads stores,
as mentioned before, to distribute the app so it would be easier for customers to
get it.
We are going to guarantee that we fulfil our customers needs by constantly
improving the app and what it provides.

E. Integrated Marketing Communication (Promotion) Strategy

Overall IMC strategy, IMC objectives, and budget:
As part of our IMC strategy we want to ensure that we create loyal relationships with
our customers by promoting all the benefits that we provide to the targeted audience. As
targeted audience we selected all the people that make part of the university community
including students, professors and administrative personal and workers since they
usually have lunch at the university. As objective of IMC we want to build awareness and
knowledge in our audience because we are offering a new product and people is totally
unaware of it, which are the first two stages of the six buyer-readiness stages to achieve
the final one, the purchase of the service in a short period of time.
The message we want to spread to the audience is the features of the product and
the benefits that provide the service making a rational appeal by also showing the value
and performance of the app and presenting one-sided argument. As channels of
communication we want to use major media (including newspapers, direct mail and
events) and the word-of-mouth influence inside the university. To determine our
promotion budget we will use the affordable method, we can afford to spend in
promotion COP 3.600.000 per semester.
Consumer promotion elements
Advertising strategy:
To advertise the product, we will use the university weekly newspaper, advertising signs
nears university restaurants, direct mail and social networking exposure by using
informative advertising as we introduce the product gaining the attention of the targeted
audience and well communicating the message.
Public relations/publicity strategy:
We are going to promote the app in different events of the university, in the Inductions at
the beginning of each semester for new students and in Open Campus each year so
external audience can be aware of the product. Also we want to develop press relations,
as mentioned in advertising strategy, by publishing newsworthy information in the
university weekly newspaper Campus.

Personal selling strategy:

As the product that we provide is a mobile application we will not use personal selling
since to get the app, customers only need a smartphone with internet access.
Consumer sales promotion (pull) strategy:
We focus the IMC activities to induce potential customers to use our service so they
increase the demand in apps stores of the application making us to increase the
numbers of features and benefits that our engineers include in each app update.
Trade (channel) promotion elements
Advertising strategy:
In the advertising strategy the trade channel to ensure the achievement of planned
advertising is the University administrative department and also the publishing
department of the Social Communication School that is in charge of the university
newspaper Campus.
Public relations/publicity strategy:
To secure the promotion of the products in the events mentioned before the channel is
also the University because we must have a permission to do so.
Trade sales promotion (push) strategy:
In our push strategy we want to push the product through our distributors so we will
accomplish all the requirements to get the product distributed by Play Store and App
Store so they carry the product to our final consumers.

VI Marketing Implementation
A. Structural Issues
The implementation of the marketing strategy is a process in which we should
work together with the employees to achieve the best. To accomplish our vision,
employees should work according to the company`s mission and values. Our
principal goal is to develop a loyalty relation with customers and to get new ones
every day. For that reason, is really important to keep employees motivated
because they are in charge of bringing the best service to our customers.
One of the advantages of this project is that the employees already know their
workers teams because at the beginning we do not have in plans to change the
organizational structure. This is positive because with the time, employees know
each others and tends to create the organizational culture. Another advantage is
that they will keep their positions and their lines of authority, so they already know
what to do and how to do.

We will train employees showing them how the app functions, and how it will help
them improving their work. Using this application, they can organize the orders
better and with enough time because they will receive orders 30 minutes before
the pick up time.
B. Tactical Marketing Activities (be very specificthis lays out the details of the
marketing strategy and how it will be executed)

Specific Tactical Activities

Person Responsible

Product Activities
1. Determinate the features
of the app
2. Development of the app
by our hired engineers.
3. Testing the app by
potential customers
Pricing Activities
1. Determinate the pricing
method

The responsible of all of

the product activities is
Alejandra Perafan
(Product management)

Distribution/Supply Chain
Activities
1. Selection of distributors
2. Define terms of
distribution
3. The App available in
distributors stores
IMC (Promotion Activities)
1. Select the audience
2. Determining the message
3. Social media promotion
4. Selection of the
advertising methods
5. Launch advertising and
public relations strategies
6. Promotion in Inductions
and Open Campus

Required
budget
COP 2.000.000

Completion
Date
02 August
2016

The responsible of
those activities is Ana
Maria Ramos (Pricing
analyst)
The responsible of all
the supply chain
activities is Catalina
Navarro (Supply Chain
management)

COP 700.000

10 August
2016

COP 3.292.000

25 August
2016

The responsible to
achieve those activities
is Karla Vega
(Integrated marketing
communications
manager)

COP 3.600.000

15 September
2016

TOTAL BUDGET

COP 9.592.000

VII. Evaluation and Control

D. Implementation Schedule and Timeline