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Modester Media Solutions LTD (MMS) is a full service media that was assigned the duty of advertising Carlsberg beer on behalf of Carlsberg Brewery (M) Bhd. The company is the regions market leader commanding a share of more than 60%. The core market areas are: United Kingdom, Asia, Nordic region and Eastern Europe. The key duties of the Carlsberg are production, sales and distribution of beer.

Carlsberg puts more emphasis on the significance of quality and strong completive positioning of the beer and other involved services for the benefit of all the links in the value chain.   The brand’s activities are very lucrative although in some areas of operation it is facing threats due to competition from substitute products and government regulations.

The environmental audit of the beers activities has been well performed using the PEST model.  With this, the beer has been found to be adversely influenced by the government policies in the countries that the brand is in the market, the economic conditions, and the social-cultural perception on the beer. Other factors affecting the beer are technological issues, legal issues and environmental issues.

From the Porter’s five forces model analysis, Carlsberg beer is found to have dominated the market in most of the countries it is sold. Some threats that the beer is facing is from cheap substandard beer, smuggled beer, and local spirits and in other countries like Malaysia, the soft drinks. Some countries like the United Kingdom, consumers are very brand conscious and they end up staying on Carlsberg due to its high product differentiation.

A scrupulous competitor analysis shows the strengths and weaknesses the beer has. In general, the beer has a better performance and stands better chances as compared to its competitors in both profitability and sales. The financial analysis of the beer performance additionally indicates the group’s weaknesses and strengths.

A SWOT analysis indicate the strengths of the beer brand, its image, the beer quality, the strong financial position that the beer boasts of and its distribution network. The brand’s weaknesses according to reports were the exposure to the regulatory changes and changes in foreign exchange. The beer is reportedly encountering new market opportunities in countries like Indo-China and Thailand.

The potential consumers of Carlsberg beer are from the middle to upper class women and men ranging from 18 years old to 50 years old (Vrontis, 1998, p77). This largely depends on the legal drinking age of the countries that the product is found. The beer also has loyalty consumers like bars and night clubs.

The beer through its company is continually steadily looking for ways to minimize its impact on the natural environment. The company initiated an ambitious environmental policy that has compelled its breweries and the subsidiaries to execute environmental policy that are very strict as compared to the general required legislation. All the companies and distributors have a prerequisite of being ISO 14001 certified, geared towards ensuring that they improve their performance. The progress of this duty is tracked by Carlsberg on a yearly basis and the results compiled every second year in their environmental reports.

There are a number of environmental programs that Carlsberg has initiated both globally and locally to make sure that various specific global and local environmental issues are addressed. Among other things, Carlsberg has continually improved their technology concerning the commercialization of results of fundamental scientific research that is approved by the company’s research centre.

The Carlsberg Research centre has consistently developed environmentally and technologically sound procedures that have been at the centre of the company’s environmental consciousness.

There are a number of legal forces that for a long time have intervene the production of the beer to prevent any cases of negative reactions from the consumers. The forces include hygiene clauses, preparation matters and scientifically lab tested.

The Carlsberg beer culture consumers are mostly linked to football. This is due to the fact the Carlsberg Company has for a very long time been sponsoring the footballing events across Europe (Van, 1997, p309). Carlsberg is the main sponsor of the UEFA Champions League and a long sponsor of the Liverpool Football Club in England.

Advertising strategy – complete proforma

Our company understands how an advertising strategy should completely support the marketing plan and in turn the comprehensive business plan. There are number of things that as an advertising company for Carlsberg beer have done to help put it on the map. The first step was to conduct a SWOT analysis. We were able to determine the strengths, weaknesses and opportunities. Later the threat assessment painted a full and clear picture of the market, Carlsberg beer as a company and the product. We carried out an assessment where we found out what was going on in the market in terms of past and current situation. We also discovered the major trends a factor which enabled us to forecast the future. All these revolved around the product, competitors and consumer attitudes.

The SWOT analysis was able to reveal serious and growing competition from other beer producing companies. On e of our strategies was to create a stronger brand personality.  The other strategic issues that we dealt with were positioning, direct marketing and the media. When creating the advertising plan we considered a number of key issues. We took time to understand Carlsberg Beer as a brand and defined it as it is currently. This helped us to decide how different we wanted the company to be.  

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To characterize the brand we determined how the company is positioned in the minds of the consumers and hence where we wanted it to be positioned. In terms of positioning the company we tool time to understand the psycho-dynamics of the market. We were driven by the idea that people should think that Carlsberg is a high quality beer for those who drink. A picture to make this product stand out among other beers was our motivation.        

According to Dawson (1995, p49) the most important task that defines the advertisement’s objective was to create an emotional connection with Carlsberg as a brand. After determining the primary focus we identified specific demographics within the targeted market. The demographics include the location, age, gender among other characteristics that are related to the intended large customer base. To evaluate the potential for profit in the market is very important. This provides ideas on the advertising copy and also enables the determination of what type of media that is appropriate in the advertising strategy.

For quite a long time the print media has been used to reach the targeted audience. At the moment the internet advertising has proved to be very effective. We took our time to understand the habits and preferences of the customers. This will help in such a way that we were able to know what words to use not forgetting their respective meaning so that they can easily catch the attention of the audience.

In the advertising strategy specifically a complete proforma, the first step is to identify the potential consumers a point that we address earlier in this report. The potential customers are those who frequently drink Carlsberg beer.  We later carried out a research on the market segment. We started with creating a theme for the advertisement after which we assessed the copy platform. The next step was to carry out a short test of the advertisement to the purposely on the targeted market. Through this we were able to get a positive response which gave us a green light to go ahead to produce more copies. The short test is very important in a way that if we went ahead to produce many copies (mass production) yet the response from the consumers was negative, it would have definitely translated into waste of resources.

We listed a number of objectives of the advertisement. For instance we informed our consumers about our products over the internet and also in the physical world by use of catchy yet simple to understand posters and billboards. Another objective which we were obliged to bring out was the improvement of level of distribution of the product.  We then developed a concept for the product line which clearly reflected the current trends in the industry. Marangou (2007, p29) states that the slogan for the advertisement was Carlsberg beer is your chosen brand. The slogan was meant to catch the attention of the consumers of this particular beer. a good percentage of excitement has been noted in a way that consumers want to be associated with this product.

The advertisement was tested on small focus groups who were asked how much he or she remembers after watching it. After noticing a positive response we aired the advertisement on the media. This included TV, posters, billboards and the internet among other forms of media. It turned out that after airing the advertisement, more consumers started buying the product. We also gathered information from the consumers by use of questionnaires. With all these indicators, we were prompted to continue running this advertisement.

However it is important as an advertising company to do as advertisement track. This is meant to check on consumer response as the advertisement continues to mature. We effected this procedure so that we can measure how the consumers perceive everything to do with Carlsberg as a product. We took the imitative to plot the consumer perception against the number of times that the advertisement was aired in the media for the public. There was a significant correlation thus concluding that the advertisement was working.     

Creative solutions- campaign execution

The professionals at our company managed testing, deployment and reporting the entire exercise. We employed the variable data printing which is a kind of on-demand printing which necessitate the customization of elements o the direct mail piece. These elements include texts, graphics and images. A direct mail with personalized contents has more influence as compared to static direct mail. The delivering of the campaign is of equal importance as planning (Carlsberg A/S, 2009, p52). The entire idea is to deliver the message with maximum impact. Our research shows that people are not as interested with advertisement. They would rather talk about politics, television, films and celebrities. There only one simple explanation to this discouraging situation. The advertisements are boring. We are proud say that our company takes this issue seriously.      

Consumer insight is factor that we considered and therefore incorporated it into our advertising strategy. We took time to know the customers who were being targeted by Carlsberg. Through this we discovered the tastes and preferences in addition to getting their response. We were also able to understand emotions of the buyer so that when it came to designing the advertisement for this particular company, their needs were represented.

Engaging the audience or rather potential consumers is the major reason for being creative. It is for this reason that we came up with a very powerful message since sales messages that are too logical does not appeal to the public and therefore it would not catch the attention of the targeted audience. In our advertising company we know that before one gets response there should be a reaction. Lack of mixed reactions from the consumers is an indication that the advert was successful. We understood the need for emotions over logic which is a very crucial point.

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We employed the polar diagram commonly known as ‘rational to the left, emotional to the right’(R&E). We went ahead to track the consumers’ journey along the same. It is common knowledge that usually customers pick up a big piece of the mail and reads it thus the definition of an emotional response.  Eventually they will want more information due to the emotional engagement.  Carlsberg has a comprehensive and functional website that is use friendly and one that will ensure that most if not all consumer’s questions will be answered (Global Markets Direct, 2009, p36).

On the issue of print and materials we understand that cheap print might undermine or rather cheapen the brand. For this reason we approach this issue with a lot of tact. We even went further to ask ourselves how the piece of advertisement feels before we released it the audience. The result was positive. We used the thermodynamic ink which responds to temperature. We ensured that the print and production teams were early at the briefing and we noticed how they came up with very interesting ideas that exploited new methods and materials.

The use of URLs on the internet enabled us to easily track responses from the company’s (Carlsberg beer) consumers. We setup a unique URL for the company which allowed us to gauge the response. We also employed the use of digital print which gave us more ways to test varying ideas. We embraced new school advertising strategies over the old school ones. We tested different strategies, fonts, creative ideas, offers and media mixes. This made so much difference.

We also employed careful use of data. We avoided use of abusive data, a situation which could have very negative impact to the company. We ensured that people’s privacy was respected meaning that we treated their data with respect. This issue is increasingly becoming an important element of the Corporate Social Responsibility’ (CSR) as environmental issues. The good use of data is a good business sense. Times have changed such that going for quantity is no more. Smart marketers are going for smaller, high quality target groups in order to realize good returns. The growth of sophistication of data analysis has made it even easier to go direct to the point.

According to Vrontis (1998, p82) the issue of environment and ethics is also as important. At our company we understand that the government, major brands and the consumer in general now look at the environmental behavior. The direct mail method of advertising could be an appropriate way to protect the environment such that effect of waste papers and landfill are avoided. Another option which we also incorporated into the advertising strategy was responsible use of data and print on papers that were environmentally friendly.  To top that up we have encouraged the Carlsberg beer consumers to recycle the bottles or packs after use.       

Creative solutions- campaign execution

The professionals at our company managed testing, deployment and reporting the entire exercise. We employed the variable data printing which is a kind of on-demand printing which necessitate the customization of elements o the direct mail piece.

These elements include texts, graphics and images. A direct mail with personalized contents has more influence as compared to static direct mail. The delivering of the campaign is of equal importance as planning. The entire idea is to deliver the message with maximum impact. Our research shows that people are not as interested with advertisement. They would rather talk about politics, television, films and celebrities. There only one simple explanation to this discouraging situation. The advertisements are boring. We are proud say that our company takes this issue seriously.      

Consumer insight is factor that we considered and therefore incorporated it into our advertising strategy. We took time to know the customers who were being targeted by Carlsberg (Van, 1997, 310). Through this we discovered the tastes and preferences in addition to getting their response. We were also able to understand emotions of the buyer so that when it came to designing the advertisement for this particular company, their needs were represented.

Engaging the audience or rather potential consumers is the major reason for being creative. It is for this reason that we came up with a very powerful message since sales messages that are too logical does not appeal to the public and therefore it would not catch the attention of the targeted audience.

0In our advertising company we know that before one gets response there should be a reaction. Lack of reaction indicates that advertisement was successful. We understood the need for emotions over logic which is a very crucial point. We employed the polar diagram commonly known as ‘rational to the left, emotional to the right’(R&E). We went ahead to track the consumers’ journey along the same. It is common knowledge that usually customers pick up a big piece of the mail and reads it thus the definition of an emotional response.  Eventually they will want more information due to the emotional engagement.  Carlsberg has a comprehensive and functional website that is use friendly and one that will ensure that most if not all consumer’s questions will be answered.

On the issue of print and materials we understand that cheap print might undermine or rather cheapen the brand. For this reason we approach this issue with a lot of tact. We even went further to ask ourselves how the piece of advertisement feels before we released it the audience. The result was positive. We used the thermodynamic ink which responds to temperature. We ensured that the print and production teams were early at the briefing and we noticed how they came up with very interesting ideas that exploited new methods and materials (Dawson, 1995, p50).

The use of URLs on the internet enabled us to easily track responses from the company’s (Carlsberg beer) consumers. We setup a unique URL for the company which allowed us to gauge the response. We also employed the use of digital print which gave us more ways to test varying ideas. We embraced new school advertising strategies over the old school ones. We tested different strategies, fonts, creative ideas, offers and media mixes. This made so much difference.

We also employed careful use of data. We avoided use of abusive data, a situation which could have very negative impact to the company. We ensured that people’s privacy was respected meaning that we treated their data with respect. This issue is increasingly becoming an important element of the Corporate Social Responsibility’ (CSR) as environmental issues. The good use of data is a good business sense. Times have changed such that going for quantity is no more. Smart marketers are going for smaller, high quality target groups in order to realize good returns. The growth of sophistication of data analysis has made it even easier to go direct to the point.

The issue of environment and ethics is also as important. At our company we understand that the government, major brands and the consumer in general now look at the environmental behavior. The direct mail method of advertising could be an appropriate way to protect the environment such that effect of waste papers and landfill are avoided. Another option which we also incorporated into the advertising strategy was responsible use of data and print on papers that were environmentally friendly.  To top that up we have encouraged the Carlsberg beer consumers to recycle the bottles or packs after use.  

Review of Advertising – Brand and competitors

Carlsberg A/S (2009, p62)In 2008, the space of growth of Carlsberg beer dropped by around 3% after an outstanding year of growth in 2007. During this time (2007), the volume of sales increased by more than 9%. The reports per capita consumption of Carlsberg beer has moved to almost a saturation point. For another reason, the report indicates that the rise in the selling price has been experienced due to the fact that the, raw materials such as barley and hops has incredibly increased.

Another factor is that the pressure in relation to individual costs increase has tampered with the demand for beer. What is more is the devastating weather conditions, with a comparatively mild summer with temperatures reducing to abnormal rates for a period of not less that 10 years that have passed. The weather problem did not allow the room for any impetus for faster increases in sales which could only be experienced as a result of nice ads services provided by our company. The final point is that, the competition for sales share continued to exaggerate. Also, the increasing concerns about the blow of the monetary crisis on consumers’ budgets aided in the reduction of the demand of beers.

In 2008, the percentage volume of sales growth was lower than the yearly growth in the review period as a whole. The per capita consumption of Carlsberg beer was 95 liters in Poland in 2008. This as experienced therefore means that the space for growth was not likely to accelerate. Poland is the best and the biggest beer market internationally as it the tenth biggest beer sellers in the whole world and the fifth largest in Europe. The growing prices of beer did make the consumption of beer to reduce to highly regrettable percentages as compared to spirits and wine. In general, the advertisements on the reduced prices of beer were one of the reasons for beer top prize that was enjoyed by both the manufacturers and the consumers over the review duration (Global Markets Direct, 2009, p38).

Premium lager that was imported enjoyed the biggest rise in sales on the preceding year in 2008. The increase on price that was experienced was due to the best ads ever coupled with increasing desire led to a soaring demand for imported premium lager such as the Carlsberg beer. Polish drinkers are thirsty for beer of a commendable higher worth. For example, Grupa Zywiec decided to start to manufacture and advertise the Desperados beer brand in Poland. Due to lower prices, and greater accessibility led to in skyrocketing sales in the first half of 2008.

New, imported beers as displayed on the shelves of premium-positioned retail chains that include: Alma Market, Bomi, Piotr I Pawel , as well as Stokrotka Premium. The idea of that was introduced by the advertisement agency of expanding premium retail chains was also the force that led to an augmentation in sales of imported Carlsberg lager. Increasing prices of barley and other raw materials including hiking salaries in turn led to pressurizing of the advertisement agencies to pull their sox.

The defining trend is that growth as seen in premiums being driven. The work done by advertisement agency in administering growth through the hopes of increasing the number of Polish drinkers are lashing order for premium-positioned beer. Brands of beer which include: Heineken, Carlsberg, Pilsner Urquell as well as Peroni Nastro Azzurro are gaining favor among Polish drinkers.

Food store that are independent are the major contributors to the growth in the distribution channel of beer. The growth or the rise in the number of discounters and billboards has greatly increased the shares in this channel of sale in Carlsberg beer. Highly developed ads have been created by the advertisement agency has led to an increase in sales of beer as well as increasing the demand of beer by Polish drinkers (Vrontis, 1998, p83). The advertising agencies have been given or paid a lot of funds for exclusive rights of promoting the brands in consumer foodservice outlets. This idea is basically meant to improve and support the image of the best and leading brands.

For instance, at heart of the strategy of the Piwiarnie Wareckie chain of pubs found by Heinekein in 2006 greatly offered support in favor of Warka Brand and Carlsberg brands. The advertising agency did come up with a more successful expansion policy that reached more than 60 establishments. In general, beer particularly in this case, Carlsberg is the most popular alcoholic drink that is within the on-trade, and has greatly outpaced spirits and wines. 

Nationally advertised lager accounts for the chief part of lager sales and has greatly improved the sales of Carlsberg beer over that last two years. Imported lager is not similar in temperament as compared with purchasing power of Polish consumers. For this reason, conglomerates such as Heineken and Carlsberg decided to produce the Heineken, Pilsner Urquell and Carlsberg brands in Poland over the review period and advertised them in order to increase financial benefits. Since March 2008, the Desperados beer brand has also been manufactured in Poland.

The introduction of Desperados as a new brand in the market has resulted in lower costs and, therefore, in lower prices. As a result, sales of the Desperados brand introduced in 2008 have thus ascended over the first months of its wide accessibility in most of the outlets in Poland. Plain as the nose on your face, expenditure can not be therefore distinguished from Euro monitor International market size data (Van, 1997, p311).

The global Carlsberg launch

With the launch of international brand, the management of the advertising agency expected an increased corporate valuation and an improvement of leverage. Even though the international brand market was still low, there were a couple of trends that if applied are likely to administer an improvement on the market segment which include:

i)                    The globalization of the beer entrepreneurship.

ii)                  A higher demand for premiums was recorded also the economy-priced beer forecasted.

iii)                In this context it was important to use international media agencies to in the process of building or creation of brands.

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iv)                An international brand was likely to create synergies in ensuring that billboards are created, sponsoring, as well as in reducing the costs of beer.

v)                  Congregating the needs of the consumers in various markets.

In this branding process there have been market segmentation that marked the benchmark between Carlsberg and Heineken has indicated leverage and valuation did not solely depend on an international brand rather on its positioning in the developing market strategies as well as trends.

i)                    There is an effect created through cross-border that highly influenced the success of one market to another.

ii)                  A large and/or growing market with a premium larger segment of not less than 5% as well as the accessibility and the position after the advertising agency’s convention placed the Carlsberg beer supply to the top.

iii)                Local partners did assured that there was right quality through the media and then co-invested on the brand.

iv)                There was an attractive margin after duration of three years.

The launching of the company’s product to the global market did create an establishment that proposed a centrally supervised but locally tailored campaign (Dawson, 1995, p55). This kind of campaign was intended to meet the local environment and focus only one group of consumers, young male adults staying in urban centers. The purpose of segmentation of the market was to identify relatively homogeneous groups of customers having similar consumption patterns. 

   

-          Modester Media Solution employees permanently improve on its processes

-          requires strategic sourcing and capacity utilization

-          portfolio of premiums and specialty of Carlsberg beer

-          Corporate structures

-          No global brand

-          New market in Asia, Central and Eastern Europe, and America

-          Competitors

-          Further decrease of consumption in key markets

-          New substitutes

   

 Investment recommendation

The year’s first six month might be fairly quiet for the share of Carlsberg. It is our expectations that excellence in 2009 will be actually Carlsberg’s good quarter facilitated by the Russian consumers and willingness of Russian distributed networks to fill up their records before enforcement of higher taxes at the at the end of the year. This fairly strange pattern of consumption will have negative effects on the 2010 results that will be weak correspondingly. When regarding its excellence, Carlsberg reported considerable profits in its upgrade of its outcome expectation prior to Christmas.

Equity market will be forced to wait for the discharge of H1 accounts on August 17th so as to see results of increasing tax and the predictable tightening of sale regulation and beer marketing in the Russian markets as a result of the sale shift among the two quarters. Therefore, there is fear of increased prices to be in the depression (Marangou, 2007, p53).  

A bouquet of combined flowers has been shown by some of the proposals’ strengthening reviews of the Russian legislation. This volume will be affected quite significantly with some proposals while the positioning of beer when compared to alcohol positioning especially vodka will be affected by other proposals.

It is expected that Baltika will turn out once again as a very well-run business within one year. In Russia, it is expected that Baltika will continue to win shares and that Baltika will be more superior among its rivals in the whole value chain due to the increased markets. It is also expected that Baltika will win more market shares as the Russian markets becomes more difficult in 2010.despite a declining Russian beer market and stagnating sales to increase profits so that target of Carlsberg for its EBIT levels will be surpassed in the year 2009 even though it has managed for more that 2009’s nine month. As a result, is it expected that Carlsberg will increase its degree of ambition from the current to reach the margins of the Eastern and Central Europe.

In both North America and Western Europe the sales appeared to be under pressure but the agency did its best and implemented rationalization in the above mentioned regions to ensure that the [profitability is strengthened. Carlsberg currently is working on making efforts in order to strengthen its position in the United Kingdom. The closed down of the brewery in Leeds is likely to result in a more competitive and effective operations. On the other hand the agreement with pub chain will promote Carlsberg’s position in the trade segmentation in various areas. In France, 2010 will be a decisive moment on whether to relaunch Kronenbourg (Marangou, 2007, p55). The research center of Carlsberg should therefore or in future incorporate a broader range of natural science to create various opportunities that are contained by the brewing biotechnology.

In Asia achievement are developing interest and therefore moving nearer. Carlsberg currently has acquired a capital structure to enable it to increase its acquisition structure.

The company’s media approach or policy was to get into the parameters of selling new products and new beers that innovates. This has to a different thing from other brands of beer. If this will likely take place, the society is in a position to acknowledge new products then begin innovating in order to make the taste of beer better. By administering growth, Carlsberg is likely to start developing new markets and then establish its products.

The advertising strategy of Carlsberg Breweries is aimed at creating some ventures with better and new markets. The idea of finding new markets is worth due to the fact that the risk of failing in new market is minimal. This is also facilitated by the back-up of the advertising agency.

Provision of some local beers to their own nations was the other strategy applied by Carlsberg Breweries since it is gaining most of the markets with a smart movement like this thus leaving just a small portion to their competitors.

 I hope that strategy of Carlsberg Breweries is very determined and smart right away from the beginning since it doesn’t attempt to bring in many products but bringing in just two and then attempting to earn markets achievement over the other markets by developing corporate ventures and inventing new companies across the world(Marangou, 2007, p55).

Sports’ supporters are the major market and Carlsberg is earning more sales through this strategy since its beers are advertised to the clients directly through sports and sporting activities. Therefore, we recommend that investors should take advantage of any kind of setbacks in the share price in order to purchase shares that belong to Carlsberg advertising agency.                          

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