Question

Sina Cola Company which produces soft drink products suffers from low degree of consumer acceptance, thus its profits declined very fast in the recent period of time. So, the company decided to study that situation through doing deep market research to explore what was happening in its markets. The research emphasized some issues that motivated marketing manager to study in order to deal with the current bad situation. We can summarize those issues in the following points: - The company focused- within that period of time- on production process and production efficiency, with giving more attention to increasing its products quality level which was considered as the best advertising method. - The company used mass marketing strategy to achieve economic scale. - The company dropped two kinds of products as result of their poor sales, where it discovered that their marketing mix was very weak. - The company concentrated on informational packaging. - The company distributed its products in big stores that have sound brands and good reputation in customer's mind. - The core promotional activities in the last period of time was some sales promotion activities in order to decrease company's costs. Required:

1. Identify the main marketing problem which the company faces.
2. Suggest the solution alternatives.

Answer 1

The main marketing problem faced by Sina Cola Company is low consumer acceptance, leading to declining profits. Solution alternatives include improving marketing mix, enhancing advertising, and expanding distribution channels.

Step-by-step explanation:

The main marketing problem faced by Sina Cola Company is the low degree of consumer acceptance, resulting in declining profits. The company conducted deep market research to determine the reasons for this situation. The research highlighted several issues that need to be addressed:

1. The company focused on production efficiency and increasing product quality as its main advertising method.
2. The company used mass marketing to achieve economic scale.
3. The company dropped two poorly performing products due to weak marketing mix.
4. The company emphasized informational packaging.
5. The company distributed its products in big stores with strong brands and good reputations.
6. The core promotional activities were focused on sales promotion to reduce costs.

To address these problems, the company can consider the following solution alternatives:

• Improve marketing mix for existing products
• Enhance advertising and promotional activities to increase consumer acceptance
• Expand distribution channels to reach a wider audience