The main industries, steel, mining, sugar, transportation, agriculture, ship-building, wine, etc., were under monopoly control in all states before the new initiative which came at the beginning of the 20th century. Under conditions approximating pure competition, the price was set in the marketplace. Price tended to be just enough above costs to keep marginal producers in the business. Thus, from the point of view of the price setter, the most important factor was costs. If a producer’s cost floor was below the prevailing market price, the product would be produced and sold. Since the producer in such a market had little discretion over price, the pricing problem was essential whether or not to sell at the market price. The Monopoly steel industry and sugar production was closely connected with the nature of competition and the inability of competitors to introduce new competitive products to the market. While costs and demand conditions circumscribe the price floor and ceiling, competitive conditions helped to determine where within the two extremes the actual price should be set. The reaction of competitors was the crucial consideration imposing practical limitations on pricing alternatives (Slichter 1948).During the 1800s, ‘natural monopolies’ existed in some industries. Steel and textual industries were limited by what their competitors charged. any price differentials from competitors were justified in the minds of customers on the basis of differential utility, that was, perceived value. At the end of the 19th century, cartels played a dominant role in the market, and be seen as a restraint on competition. A cartel is said to exist when two or more independent firms in the same or affiliated fields of economic activity join together for the purpose of exerting control over a market. More specifically, a cartel was a voluntary association of producers of a commodity or product organized for the purpose of coordinated marketing that was aimed at stabilizing orincreasing the members’ profits.
The merger of Exxon and Mobile happened in the year 1999 and ever since the two have gone on strong as it has become the largest corporation of the world in terms of market capitalization, figures standing at $517.92 billion in the year 2007. Also, ExxonMobil is one of the largest oil supermajors in the world, which stands at six currently. ExxonMobil’s daily production of 6.5 BOE (barrels of oil equivalent) is a true measure of its economic prosperity and it is because of such figures that ExxonMobil is regarded as first globally when the talk goes out loud concerning the oil and gas reserves among the corporate oil producers. A negative aspect of ExxonMobil is the fact that much criticism has been raised in the relevant quarters owing to its business practices and tarnished environmental record.The competition that ExxonMobil has to face on a consistent basis is manifold. It has to compete in a head-on manner with the petroleum companies of the world as well as the governments of powerful nations since it is on the latter’s approval that ExxonMobil could gain its share of voice within the industry. For that ExxonMobil does all it could in the name of building its image and such measures directly come under the public relations cadre. The different operating divisions of ExxonMobil are thus competing in an aggressive fashion with the varied units and divisions of the oil and gas companies globally. The different global operating divisions thus compete not only in terms of attaining strategic business for their segregated units but also the much-needed revenue which keeps ExxonMobil in business at the end of the day. The upstream operating divisions of ExxonMobil include its exploration company, the development company, the production unit, the gas and power marketing company and lastly the ExxonMobil Upstream research company. On the other hand, the downstream operating divisions comprise of the ExxonMobil refining and supply company.
So, when the organizations have enough business opportunities, it can set the opportunities as targets. Then, it can formulate various strategies to achieve those targets and critical success factors. Finally, the profits will be achieved with the help of various resources and capabilities. So, this paper will analyze the civilian aircraft manufacturing organization, Airbus Industrie by first identifying its strategic choices, then how it met its critical success factors, also identify the resources and capabilities used by Airbus to support its business strategy and finally the paper will analyze Airbus’s financial performanceAirbus Industrie, a pan-European organization was formally established in 1970 as a Groupement internet Economique (Economic Interest Group or GIE). That is, aircraft and space agencies based in Europe like France’s Aerospatiale, Germany’s Deutsche Airbus, Spain’s CASA and British Aerospace (BAe) started to manufacture or assemble Airbus aircraft in Toulouse, France, after manufacturing the various parts of the aircraft in their home locations. Each of the four partners, known as Airbus France, Airbus Deutschland, Airbus UK and Airbus España, operated as national companies with special responsibilities for producing parts of the aircraft, to be transported to Toulouse for final assembly. The GIE provided a single face for sales, marketing and customer support (Airbus).Even though the establishment of Airbus is itself a strategic choice, it made its first strategic choice when it abandoned GIE and transformed into Airbus Industrie SAS. That is, in the early 1990s, then Airbus CEO Jean Pierson favored dissolving GIE and took steps to establish Airbus as a conventional company. However, the difficulties of integrating and valuing the assets of four companies, as well as legal issues, delayed the initiative (airplanemart.com).
Corporate Marketing strategies, especially in the Consumer Food Industry, have undergone a metamorphosis in recent years and the current mantras are High Quality, Lower Pricing, Round- the- year availability, and higher shelf lives for products through refrigeration and cold storage preservation. However, the following constraints need to be addressed to:The food industry has undergone conspicuous changes over the last decade and there is a paradigm shift towards ardent consumerism. In an industry where survival belongs to the fastest and most innovative players, combined with zeal and passion, market leadership is often defined as the ability to surmount competitive barriers and strive for further growth and market creations.All of us form part of the market of Retail trade whose help we volunteer for meeting our daily consumption requirements. The retail market is categorically divided into durable and non-durable segments, durable constituting furniture, equipment, and other products having long service lives, and non-durable which are food, clothing, and other consumables.Retail is the second-largest industry in the United States both in a number of establishments and number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually ($4.2 trillion if foodservice sales are included), approximately $11,993 per capita. The retail sector is also one of the largest worldwide. Retail trade accounts for about 12.4 percent of all business establishments in the United States. 2 Retail is indeed big and contributes significantly to the National Exchequer in terms of enhanced GNP.But now all that has changed and although retailers are still available, they have been dwarfed by Chain and Multiple stores operating throughout the country with all types of quality goods available under one roof.
Ultimately, it seems that media distorts the nature of crime in our society, due to the place of privilege that entertainment and ratings hold over realism and accuracy.As Kenneth Dowler, a professor of criminal justice in California points out, society these days is fascinated with crime and justice (Dowler, 2003, p. 109). It may be no surprise, then, that a lot of people get their ideas of crime in society largely from crime drama shows. Indeed, the nature of violent crime in particular carries a lot of emotional impact that drama writers can draw on in telling compelling stories (Levi, Maguire, Brookman, 2007, p. 687). Additionally, many of these supposedly realistic programs [blur] the lines between fiction and reality through their advertising and marketing materials (Dowler, Fleming, Muzzatti, p. 838). But although the shows are sometimes based on real cases, they are far from realistic, and often condense the investigation timeline and the certainty and celerity of case resolution (Guastaferro, 2013, p. 264). It is precisely because of the fact that they present a neatly wrapped package [in which] there is little ambiguity, … justice prevails, and resolutions are … expedient (Guastaferro, 2013, p. 264) that they are so popular. The crime in these shows, is often not realistic, with a tendency to violence and success that is not particularly well-matched with reality. This is because of the sensational nature of television, which aims to produce emotions like fear in the viewer, and as a result crime shows present a distorted image of the typical crime or criminal (Dowler, 2003, p. 117). Perhaps due to the positive messages that crime drama gives us about the certainty of justice being served, the way they portray crime and the criminal justice system have a big effect on people’s perceptions of crime in reality. This fascination drives themto consume more and more media-based around or detailing criminal acts.
The company is the foremost operator of Panamax vessels, Capesize vessels (both within the dry cargo segment), and Aframax Oil tankers. it is also amongst the topmost operators of Handymax bulk carriers (DS Norden, N.D.). DS’s business is quite complex and there are certain detectable unnatural patterns within the books, primarily because of the fact that a major chunk of the fleet operated by DS Norden is chartered.Results of the financial year ending 2008 were much poorer than expected, especially if we consider the surge in revenues, the profits were not even close to the initial expectations. The company blames it on the recession.Increasing GDP all around the globe, GDPs of many countries has been increasing since we have entered the post-recession era and this would indirectly affect the spending capacity, which could directly impact the import trends of the developing and developed countries.Prices of the dry cargo transportation services have been constantly dropping, which has and will continue to make a big impact on Norden’s fleet as over 75% of its fleet is dry cargo based. The risk for Norden is higher than its competitors as a major chunk of dry cargo fleets is chartered.Freight price fluctuations: DS Norden’s CEO Carsten Mortensen stated in a speech in 2009 that the rates of Capesize segment dry cargo vessel fluctuated amazingly making a low of USD 5,000 and a high of USD 100,000. (Mortensen, 2009)Perhaps the most crucial factor that has helped DS Norden stay ahead of its competitors is its unique branding and promotional strategy, DS Norden mostly promotes itself through affiliations with various scholarship programs and its ‘go green’ focused messages. which is possibly the largest factor as to why DS Norden is a company that is known throughout the planet. Very recently the company has demonstrated this tactic again by signing the UN’s global impact in late 2009.
Viral branding believes that consumers, and not companies, have the greatest influence in the generation of brands. Skeptical consumers will cease to listen to the messages of mass marketers, hence instead should create original brands of their own. The Internet furnished a way to speed up this creation. Consequently, what was formerly regarded as an essential mechanism that marketers could aim to motivate has at present turn out to be an objective in itself.Furthermore, several scholars nowadays suggest below-the-radar marketing, which sows the brand among individuals of powerful and influential classes in society. The fundamental assumption is that if the company can persuade these individuals to adopt the brand as their own, develop and diffuse the brand, like a virus, to establish it as a convenient and easy topic to talk about, these promoters will radically broaden their awareness in the brand to others by making use of their social networks, similar to the process of virus spreading (Mathieson 2005).At the advent of the new economic age, New York-based writer Douglas Rushkoff alerted humanity about what he referred to as ‘media viruses’. Managers of brand-creation and brand-marketing immediately turned the tables and concluded that taking on a viral approach was the speediest and most inexpensive route to brand paradise. The more swiftness through the organization, the better the brand performs (Aguirre 2001: 111).A similar insight is what Malcolm Gladwell, also a New York-based writer, has referred to as the ‘coolant.’ In this point of view, brands are not anymore directed by business organizations’ activities but to a certain extent provided meaning and significance on the streets by perspective-dominant innovators who approves the brands and grants them prestige. Consumer good firms deploy cultural investigators onto the streets of areas considered as ‘cool,’ like the recreational areas in poor urban districts or antiestablishment clubs, to survey new trends. The contest is to take hold of the latest, trendiest culture the quickest before it turns out to be a mainstream or mass culture (Robinson Rohan 2002: 48).
In a narrower sense, developing strategies on how to market or launch a small business in Papua New Guinea requires a detailed data in order to come up with a productive plan. Primarily, Papua New Guinea is a country that is rich in natural resources. However, the exploitations have been weighed down by the high cost of industrialization and the system of land title has been vague in which landowners are hard to identify. The basic livelihood of the people in Papua New Guinea is said to be agriculture. Through this, people could take advantage of what available resources are at hand and use it to develop a productive business.Thus, providing a technique and ways on how to market a small business in the country is a good point. Small businesses like an eatery or a small restaurant, a food shop, and the like will then be evaluated on how to effectively market with the consideration of the global financial crisis. As an example, since the country is rich with agricultural products, a small restaurant business will be used in order to show some techniques on how to effectively manage and market its products and services. But generally, the strategies in order to market small businesses can cover almost all the business type and it just depends on how it will be managed.As a small business owner, you should engage in the areas of marketing, customer service, human resource management and of course managing the whole business effectively. Small business financing and strategies on how to expand the business should be considered in order to market your small business in the midst of the global financial crisis. Like how to expand the business through the customers, explaining the importance of the target market, and knowing the grounds for establishing a small business.
2. If chemical companies set their plants in the U.S., the more than production and marketing costs could be minimized, especially if the target market is within the U.S. or nearby countries. In so doing, there is a possibility that trade relationships between the U.S. and EU with regards to shale gas or other alternative energy sources would be minimized. Looking at this perspective, it would be more beneficial to the U.S. since shale prices would be significantly minimized. while this would be detrimental to the EU for diminishing trade and export to US markets.3. The boom of production of natural gas in the US is seen to negatively impact EU, especially those countries identified to previous export shale gas to the US market. With more chemical companies opting to explore the potentials in the US, the EU economy could be foreseen to worsen due to the negative impact of lesser exports and potential reliance or dependence on the Russians as a supplier of natural gas (Torello).1. The current status of the U.S. economy significantly affects global trade in terms of contributing to increases in exports or imports, as continually affected by external forces. As such, it was evident in the article that the U.S. economy is not the contributory steering force that shapes the global economy, but rather, economic developments in both China and South Korea could be the dominant influencing factor.2. The role of the Federal Bank in the U.S. in enhancing economic growth and allowing country developments remains paramount through the provision of financial support that is instrumental for global trade.
It would be hoped that the focus groups would discuss the topics that would be of the most useful in understanding the potential customers for the wines sold by Waitrose. The focus groups are intended to improve the communication levels between the company and its customers.1. The focus groups could discuss the most relevant aspects of customer behavior:(i) The demographic factors that influence whether or not customers decide to buy wine. For instance, our customers in different age groups or income groups are more or less likely to buy wine or a certain type of wine.(ii) To discuss whether customers always buy one type of wine, or if they are willing to try a variety of different wines. Successfully predicting changes in customer preferences could be highly profitable.(iii) To discuss what motivates people to select Waitrose’s wines. For instance, do customers look for cost, quality, quantity, or good value to determine their wine purchases? Focus groups could also discuss whether special promotions or advertising affect customer preference.(vi) To discuss whether it might be worth considering if linking the sale of wine to other products such as meat, fish, and ready prepared meals would tempt more customers to buy wine from Waitrose even if they had intended to do so.(vii) To consider the promotion of Waitrose’s wine internally and externally through competitions and prize draws. Competitions and prize draw have frequently been used to promote particular stores and to attract new customers to buy specific products. For instance, competitions could give away prizes such as trips to wine-producing countries or the supply of expensive wines.2. To ensure that the focus groups came up with relevant and accurate research carefully chosen criteria would be needed to select the membership of each focus group. One simple method of obtaining potential members for the Waitrose wine focus groups would be to prepare.
The hotel consists of more than 5000 rooms and suites for guests in four thirty-story towers, world-class gourmet restaurants, 27000 square feet pool complex, Grand Spa, casino, clubs, etc. Different parts of the hotel have different themes, food courts, restraints, entertainment lounge, etc. (Jay Dwi, 2000). The hotel is set up on an area of 33 acres. MGM Grand Las Vegas most commonly offers accommodation services but in addition to this, the hotel also serves as a venue for different shows, events, and concerts. Moreover, MGM grand hotel incorporates pool parties, night clubs, shopping outlets, wedding chapel, etc.History In the ’60s a group of properties started as MGM Resorts International under Kirk Kerkorian’s leadership. After the grand opening of paradise hotel in the early 1970s, the second hotel was built in Las Vegas named MGM Grand Las Vegas. Both the hotels were the world’s largest hotels at that time. MGM Grand Las Vegas was opened in 1993 for the first time. The hotel turned to be the largest hotel in the United States with over 5000 guest rooms. At the opening of MGM Grand, the biggest intention was the creation of the first hotel in Las Vegas that includes the Theme Park MGM Grand adventures behind the casino. The objective behind this hotel was providing a friendly and family-oriented atmosphere where all the family members could enjoy different activities except the casinos. StrategyA strategy that a company sets and adopts to achieve its desired business objectives and goals are known as a business strategy. The strategies adopted by MGM Grand Las Vegas hotel are discussed ahead. Competitive strategies are associated with business strategies in a way to develop a competitive edge for an organization. MGM Grand Las Vegas hotel has potential business strategies to predict the expectations of the customer most accurately and make them satisfied with creativity. Product differentiation is one of the most unique competitive strategies that MGM Grand uses. One of the examples of this strategy is the introduction of M Life Payers Club in 2010. This club is basically a customer reward club where customers can earn points by shopping and using other services of the hotel and then use those points for other experiences like concerts, food, etc. To complement the activities of the service the hotel uses marketing and sales strategies (Alan, 2007). The unique communication platforms used by the hotel and the entertainment attractions has helped the hotel win a competitive advantage. The hotel uses strategies to stay ahead of competition. The various strategies adopted by MGM Grand have helped the hotel grow and expand to different countries. In 2006 MGM Grand Las Vegas focused on the extension of its brand into hotels subsidiary named MGM Hospitality. MGM hospitality is held responsible for the outsourcing of gaming and non-gaming both type of investments and the management opportunities. The opening of Grand Macau in China is another example of this. These investments helped in accumulating almost one billion dollars of capital in the same year. Market positionThe ability to establish a unique position in the mind of the customer by delivering benefits and unique features is known as the determinant for the organizations’ position in the market (Woods, Robert,Johanson, Misty, Sciarini Michael 2012). The major competitors to MGM Grand hotel are Las Vegas Sands Corporation, Boyd Gaming Corporation, and Caesars Entertainment Corporation.
Another point raised is brand equity. Brand equity is something that the company builds over time in order to differentiate itself from the other competitors in the market. The article suggests that instead of leveraging on celebrity’s image, the brand should be able to develop its own equity through leaving out costly promotion into adding more product features, etc. Having learned in marketing that promotion is a key to creating customer awareness, I believe that companies should invest in promotion especially in the first months or years of a brand in order to introduce it to consumers. However, in the latter life, the real value should be delivered to customers.This article opens my eyes to the challenges faced by marketing strategist. Promotion is far more complicated than having celebrity wears the product or recommends the brand. There should be an alignment in the image of the celebrity as well as the celebrity being used for promotion.The article highlights how Nokia is faring through the economic downturn in industrialized economies especially the United States. The past months have witnessed how the world economic leader in the past is undergoing the recession. As a consumer, I have read and seen how investment firms collapse, laborers laid-off, and even the more profitable retailers’ close down.Looking at in a marketing viewpoint, this change in the business environment challenges businesses to reinvent themselves and their various strategies in order to survive. Nokia’s response to the situation is to cut cost in order to maintain profitability. However, the low demand brought about by the bleak economic outlook and lower purchasing power of customers remains the key consideration. Thus, companies should focus on strategies other than minimizing operations and marketing costs.
This report will consider the marketing issues arising in the management of AA Ireland’s international operations applying the 12C framework for analyzing and screening international markets.Automobile Association, Ireland (AA), operating in Ireland since 1910, is a leading motor organization with 395,000 members. AA has over 80 AA Patrols in Ireland and the service is supported by nearly 200 garage agents (AA Ireland.ie). It is a leading provider of personal lines insurance intermediary and a major provider of travel, technical and information services. While the calls are handled by the Rescue Center in Dublin, the services are handled over the entire UK. AA offers various types of membership depending upon the services required and separate schemes for the individuals and companies. It has a market share of 85% in the market for those motorists who choose and purchase rescue cover (Wikipedia). It provides breakdown services to fifty percent of new cars in association with ARCTransistance. It offers a range of services which include grading of hotel accommodation, car and home insurance brokerage, vehicle breakdown service, provision of temporary directional signage to events, evaluation of second-hand vehicles, and the provision of information to members regarding new cars and travel insurance.AA Ireland also has an interactive website through which it communicates the services and benefits of the company to the internet users. It maximizes the potential of the web as an additional sales channel (MediaOne, 2004). The website can even track and process online applications submitted. The website gives out detailed information on AA membership, car, home, and travel insurance, and other useful generic content. It also offers the opportunity to purchase a variety of AA products and services online. Apart from managing queries and processing purchases, the website can also facilitate comprehensive report generation.
Today political parties do not believe in such activities as neighborhood canvassing and rallies that brought them in direct contact with the electorate but devote more attention to campaigning through the media. Television has become the most important source of political information and also the most important battleground. In Britain’s increased use of television, reliance on modern communication methods, like public relations consultants, advertising agencies, pollsters for election campaigns have led to the Americanisation of media campaigns. The techniques used for campaigning are almost similar to consumer product marketing techniques.The American form of media-centered, personalized election campaigning is becoming common all over the world including Britain. Britain even though it is a European country its party system and culture has more in common with the United States than other European countries. The 1997 election campaign and strategy reflect American influence and it is apparent that many strategies and tactics were taken from the 1992 Clinton campaign. In Britain, newspapers still influence and shape the daily political agenda, but it is the television and the radio, which is most likely to influence the electorate to choose their political leaders and parties. In recent times websites too have started to have an impact. In the last general elections in May 2005 the Internet was one of the main sources of information for the younger generation. The use of weblogs where voters can participate and express themselves, again a phenomenon borrowed from America, is being used more and more. In Britain what we see today is Political Marketing again a practice prevalent in America. Political Marketing is the use of focus groups and polls to study the mood of the electorate and also to study the impact of political communication.In Britain the press is free and there are important safeguards for broadcasters.
On 12th November 2004, Banco Santander Central Hispano, SA (Burlo Sandanter), acquired Abbey. Banco Santander is Spain’s largest financial group and one of the ten leading financial groups in the world (http://www.Abbey.com).This report seeks to undertake a Marketing Environment Analysis of Abbey National to ascertain the present standing of the company in the UK market. Marketing Environment Analysis is the process of assessing and interpreting the information gathered under scanning the current market environment and future market needs of the customer. It helps the Marketing Manager to assess the performance of current market effort and marketing strategies for the future.The macro-environment of an organization refers to those factors, which are not concerned with the immediate environment of the business. The factors are external and do not directly affect the marketing decision of the company but it indirectly influences the marketing decision.The main challenges faced by the organization in the Macro environment would be the political and legal forces within the country where the company is operating. The developments in the political and legal environment greatly affect the marketing decisions of the business organization. The political and legal climates are less predictable elements in an organization’s marketing environment. Sound marketing decisions cannot be taken without understanding the changes in the political environment of the nation, the government agencies, political parties in power, and in opposition and their ideologies.The political and legal climate of the UK, where Abbey National operates, is quite stable. An organization based in the UK enjoys a favorable condition in terms of infrastructure and other facilities. The government in the UK encourages free trade and the economy is quite sound. The country is technologically advanced and the marketing conditions are favorable for both investment and lending.
Indeed, there exist personal, ethical, and corporate dilemmas that ran at parallelsTo start with, faith and work are two opposites in many aspects. Theology has separated itself from the everyday of people’s lives. R. Paul Stevenson defines my spiritual dilemma based on the central question in the epilogue of his book The Other Sox Days. My view on work is that it is an activity undertaken to put bread on the table. People are always willing to work seven days a week without going to church. The church is not interested in the other six days that people spend in the workplace. This has led to an increased polarity between faith and the workplace. Faith and religion appear to be in conflict when my work demands that I work on Sunday, which is against church principles. This has resulted in me stop working for employers who require employees to work on Sunday.It is often hard to determine what guides our actions in the workplace. Faith and work share a lot of virtues we practice. Honesty is the virtue required in the workplace and it instilled in us from our religious backgrounds. In the workplace, company policies stress the need for honesty in procedures and ethical conduct. This virtue in the workplace integrates well with faith. We need to be vigilant when working under pressure to meet deadlines.Deuteronomy 16:19, tells us that bribe blinds the eye of the wise and twists the word of the righteous. Nevertheless, how far do businesses go marketing? There is no problem with giving free samples of your product to the customer because it is providing an opportunity for the customer to assess the product or service. However, where do you draw the line? When do the provision of free samples and gifts bear with the implied understanding that product or service will be brought in return. because, at this point, my faith makes it become a bribe? From a Christian perspective, marketing must be done in an honest way.
The market for disposable nappies is dependent upon the birth rate- when the birth rate is high the usage increases. Broader categories of disposable nappies are ultra, which is extra absorbent and has become the standard nappies. training nappies/pants, discount, and swimming nappies. Recently, however, training nappies are eating away the market share of ultra nappies, and marketers have to employ powerful marketing tactics to hold on to their share. Disposable nappies come in varying sizes and nappy functions and are targeted at specific age brackets. There is newborn (for up to 9lbs), mini (for approx 6-12lbs), midi (for approx. 10-24lbs), maxi (for 20-40lbs) and junior (for 35-55lbs) sizes.The market for nappies is increasing as mothers increasingly prefer disposable nappies over reusable cloth nappies. This transition is due to the changing lifestyles of mothers who work and can now afford the more expensive disposable nappies which are a more convenient alternative. More mothers have taken up fulltime work and with the convenience of daycare centers, they can have children and this affects the market for disposable nappies positively. However, there is a trend to have smaller families as living has become expensive and since both parents work, they cannot give more time to their children (Gelder).Nappies are used by infants and toddlers who are not potty trained. The usage of nappies begins from birth till the age of 2.5 years after which 90% of girls and 75% of boys become potty trained. As the child grows older, the consumption lowers. however, doctors today encourage parents not to force potty training on the children and let it come to them as a natural phenomenon which has increased the usage of disposable nappies (Troy 2005). Disposable nappies are mainly purchased by shoppers falling in the age bracket of 15 and above with children aged 0-4 in the household. Those in the age bracket of 15-24 are more brand aware and price-conscious.
The Six Sigma methodology consisting of the following stepsdefine, measure, analyze, improve, and control. Within this improvement framework, it is the responsibility of the improvement team to identify the process, the definition of a defect, and the corresponding measurements. This degree of flexibility enables the Six Sigma method, along with its toolkit, to easily integrate with existing models of software process implementation.Six Sigma is a well-liked method to make changeability from developments by means of prevailing statistical instruments and skills (12). Although originally introduced by Motorola in 1986 as a quality performance measurement, six sigma has evolved into a statistically oriented approach to process and product quality improvement. Many organizations have reported significant benefits as a result of six sigma project implementation, though not all are yet success stories.The notion of execution of the Six Sigma approach was initiated at Motorola in the 1980s with the objective of decreasing value rates and rates of not accomplishing things right the first time, rates of not beating consumer’s needs. After Motorola, other companies such as Texas Instruments, Allied Signal, Kodak, General Electric, Sony, etc. have claimed great savings as a result of the implementation of Six Sigma projects. However, Six Sigma stresses the application of statistical and problem-solving tools and techniques in a methodical and systematic fashion to gain knowledge that leads to breakthrough improvements with a dramatic impact on the bottom-line results. While the original goal of Six Sigma was to focus on the manufacturing process, today, marketing, purchasing, billing, and invoicing functions are also embarked on Six Sigma strategies with the aim of continuously reducing defects throughout the organization’s processes.The main factors that are indispensable to the accomplishment of the execution of any excellence development inventiveness.
Retailing has advanced with technology and now we have what we call online retailing as well. There are different types of retail outlets. They are classified according to the products they sell and by marketing strategies. There are types that do not fall in the two and are classified as others. Retailers of products are food products retailers, hard goods retailers and soft goods retailers. Retailers classified by marketing strategies are the most. They include department stores, discount store, warehouse stores, variety stores, demographic retailers, Mom-And-Pop retailers, speciality stores, boutiques, general store, hypermarkets, supermarkets, malls, Category specialist, e-tailers, and vending machines. Automated retail stores and big box stores fall in the other category (Pradhan Pradhan, 2009). Retail Industry in China China’s retail industry is now ranked as the second-largest in the world after the USA. The chain stores and Chain supermarkets serving the daily needs of the people appeared in china in around a decade ago and they rapidly grew to the extent of being the second-largest retail market worldwide. However, there is no dominant player in the retail industry despite its rapid growth, unlike the USA that has dominant players like Wal-Mart and others. Its rapid growth can be owed to the government of China in 1992. The government launched a series of policies to promote fast, orderly and healthy growth of the industry. One of the policies was permitting foreign investment in retailing. The government of China, by 1997, had approved about twenty-four foreign-invested stores. Hundreds of foreign-invested retailing, however, had been established before then after seeking approval from the provincial and municipal authorities (Zhen, 2007). The retailing sector of China is highly fragmented accommodating both medium-sized and small retailers. This is different from the United States that have a dominating presence of big retailers. This is because of the barriers to local market access. China does, however, brag of a wide range of retail formats. Department stores are one of the earliest formats of retail outlets. They were very popular before but they are now facing competition and fighting to stay ahead. Examples of department stores in China are Parkson, Beijing Cuiwei, Golden Eagle, and Shenzhen Subiaco. Another retail outlet format is the hypermarkets whose development are owed to international retailers. Wal-Mart, Mart Shanghai, Trust-Mart, Tesco, and Carrefour are examples of hypermarkets. Supermarkets are another retail outlet that is facing competition. Domestic players dominate this highly fragmented market. Examples of supermarkets in china are Baijia Supermarket and A-Best Supermarket. Convenience stores are not fully developed retailers but are already facing competition from especially from domestic chains. Quick of LianHua is an example of a convenience store in China. Speciality stores are retail outlets dominated by domestic players with foreign investment being very limited. Examples are GOME and Suning. Discount stores are still evolving and the first one was introduced in 2003 by Carrefour. Franchising retailing constitutes around three per cent of the total retail market of china with a huge potential for growth in the future. Examples are Pizza Hut, MacDonald’s, KFC, and 7-eleven. Direct selling is another retailing format of china. Its potential for future growth is large. Examples of direct selling retailers are AMWAY, Avon, and Mary Kay. Online retail is the last of china’s retail outlets.
European Commission Directives have mandated further refining activity which could potentially increase carbon dioxide emissions and therefore there is increased pressure to develop means to cope with the adverse environmental impact of carbon dioxide emissions. Despite rising oil prices, there has been a decline in retail margins, thereby making it more difficult for petrol stations to stay in business. Therefore, the development of eco-friendly initiatives is likely to ensure that independent firms such as ours will be able to garner larger profits through a higher volume of sales.The U.K. oil industry has been self-sufficient since 1980 and produces approximately 2 million barrels of hydrocarbons per day (www.prospects.ac.uk). Natural gas, however, supplied 40% of the requirements for fuel in the U.K. The most common brand of petrol used in the UK is Unleaded 95 octane petrol. World reserves of crude oil are estimated at 3 trillion barrels and the UK industry also stocks enough oil and petroleum to provide for 67.5 days of consumption(www.ukpia.com: Supply). However, increased demands and fears of shortages have been pushing up the oil prices in the recent past. However, in view of predicted shortages, efforts are being boosted up through investments in the continental shelf, through speedy completion of existing projects and implementation of new projects since 2001, to enhance oil production. (Kemp, 2001).The petroleum industry in the United Kingdom is represented by a conglomerate of nine major U.K. firms known as UKPIA, that refine crude oil and distribute it for marketing in petrol stations. These firms are Conoco Ltd, Esso Petroleum, Kuwait Petroleum (GB) Ltd, TotalFinaElf UK Ltd, Chevron Texaco, BP Oil UK Ltd., Murco Petroleum Ltd., Petroplus UK and Shell UK Ltd (Crowley 2002). This organization also performs the role of informing its members about existing and proposed legislation on petroleum issues and in formulating the position of the industry on various issues, as well as serving as a database of information that may be accessed by its members.
We already function in a diversified managerial system where we have distinct orientations like production, sales, promotion, and consumers. A separate manager is assigned to handle each department. As head of the promotion-orientation, the managerial responsibility is related to selling. However, the manager will be responsible first to create product knowledge among the customers. In the present context, we intend to cover wider areas of rural India where we anticipate a surge in demand due to several factors, which will be discussed later on in this report. In terms of consumer orientation, we already have a marketing plan in place and the marketing manager will ensure the execution of the specific actions that are listed therein.The company has recently reviewed its marketing objectives with a view to addressing our specific marketing requirements and keeping in view the need of the customers. While profitability is definitely one of our objectives, ample focus needs to be given to sustain the product quality while being cost-effective. We expect a high rise in demand once our marketing plans are executed. Our immediate priority is to have a foolproof system for facilitating seamless communication flow among different functional branches so that the activities can be efficiently coordinated. The sales division should be able to provide regular and accurate feedback to the production department regarding demand and an estimate of the surges or fallbacks etc.The company is keen on exploring further business prospects in the domestic market, as there are several qualitative changes that may facilitate business expansion into wider areas. Among them is the new thrust being given to the educational approach by the Government of India, which is very significant in the context of achieving the company’s objective of increased production and sales. As a backdrop, most of the student population is interested in high-quality education as they are targeting overseas job markets in Europe, the US, and the Middle East.
The revenues generated from the tournament will be used for the promotion of this sport across the region to build better and competitive soccer teams. The entire marketing plans focuses on two primary objectives, first is how to give the maximum coverage to the entire event and secondly how to get the maximum possible responses from those inputs while providing exemplary social advocacy and entertainment to the people. Market Place Analysis for Oak Creek Soccer Tournament Young Soccer Club, which is working in collaboration with McLean Youth Soccer and Oak Creek Soccer Club was able to acquire plenty of information about the current situation of availability of the Soccer sport in Oak Creek Southeastern Milwaukee County. In the previous almost every sports event that has taken place in the Oak Creek was able to attract a large number of spectators leading towards success. These types of events have proven to the beneficial for the growth of many sponsor companies in the region and have led to the increase of interest of the sports among the people. This clearly shows that the people have the love of sports and need more opportunities to explore other arenas of sports and entertainment. The current sports related community is in the county is already well aware of this sport but due to lack of grass root professionalism and related events of this sport that provide quality and effective management can lead to success. In addition, the unavailability of many wide scale opportunities for Soccer sports but the availability of material resources like the Soccer ground and related equipment makes it a viable opportunity to explore. There are seven college levels teams for Soccer with most of those players have played the game only thrice in the last 6 months at the college level. Four local clubs manage six community teams that play the sport every fortnightly. Most of these community teams are active for over 5 years showing the commitment to the sport. There are two college level Soccer teams at the moment and two at the community level that are specifically limited to women, showing the involvement of the women in the sport. Most of the clubs are self-managed with little or no patron-ship from any concern. There have been held two club level Soccer tournaments in the past 5 years due to lack of resources and efficient management but every tournament had massive success and acceptance in Oak Creek Southeastern Milwaukee County. SWOT Analysis for Oak Creek Soccer Tournament The SWOT analysis is based on neutral market research done by the Young Soccer Club and other related Soccer associations including the Oak Creek Soccer Club and Wisconsin Youth Soccer. Strengths A potential growth opportunity for the sponsors A potential growth opportunity for the Soccer related sports businesses Growth of sport and social awareness in the Oak Creek Support from the local community, educational institutes and local clubs Willingness of the local clubs to become potential partners in the association and play a vital role in the success of the event The promise of the Milwaukee government to provide Soccer sport facilities to the educational institutes in the near future Available and maintained soccer ground Weaknesses Weak base of the soccer sport in the community Insufficient support from businesses and local politicians Insufficient promotion of
It is no coincidence that globalization enables organizations to compete for scarce resources and customer preferences internationally. globalization leads to and facilitates reduced labor costs, lower costs of manufacturing and marketing, and greater demand for products and services, especially from the third world countries (Bartlett Ghoshal 1989. Harris Morgan 1996). Apparently, leaders working in global organizations need new skills and knowledge to manage these organizations through the global change. Unfortunately, in light of the emerging globalization trends, the significance of national culture gradually wanes. The absence of geographical boundaries erases the existing cultural differences among employees. Yet, it is at least wrong to assume that globalization eradicates the effects of national cultures on individual-level outcomes. this being said, leaders in globalised workplace need a cultural intuition and understanding of the main cultural conventions affecting their followers. globalization and culture: Hofstede assumptions and their limitations in globalized workplace National culture have always been one of the central measures of effectiveness in organizations. With the advent of international organizational forms, national culture has come to exemplify an important source of influences on individual employee outcomes and one of the central objects of organization analysis. Hofstede’s model of cultural influences on organizations has become the seminal element in the evolution of cultural knowledge in organization research. Since then, most of the research on culture has focused on identifying the core cultural values that differentiate cultures (Erez Gati 2004, p.584). Hofstede (1980) and Schwarz (1999) are rightly considered as the gurus in the analysis of cultural values and their implications for organizational and workplace behaviors. Hofstede’s study of national culture is one of the most frequently cited works in the research of national culture and its effects on organizational performance. In 1980 Hofstede published the results of a broad survey of almost 120,000 personnel from a large multinational company in the U.S., where he proposed a system of the national culture dimensions to measure and predict the relationship between culture and employee performance in the workplace (Hannerz 1992. Hofstede 1980). The central implication of Hofstede’s study is that national cultures as clusters of shared norms, values, and beliefs greatly affect and actually predict the way employees act in the workplace. In other words, depending on the cultural belonging of the employees, his (her) workplace behaviors and reactions can be modeled in advance. For example, individuals born and operating in masculine culture are prone to value competition, performance, and success, whereas those born in feminine cultures are more likely to value caring, warm social relationships, and quality of life (Hofstede 1980. Leung 1989. Rohen Shenkar 1986). The individualism-collectivism dimensions presented by Hofstede (1980) allow defining the degree to which employees are group- and socially-oriented.
It does not appear that the responsibilities of a corporation to society, its employees, customers, suppliers, and the communities or shareholders in which they serve are in practice? According to Robbins, a socially responsible business pursues long goals that are good for society and cause no harm. Marketing managers, as moral agents, are required to make practical and as well as ethical decisions. In doing so, managers have to do what is right because it is their responsibility.Why do marketing managers need to ensure that their companies operate visible Corporate Social Responsibility programs (CSR)? CSR should be of high priority. This will give managers the opportunity to display their value throughout the company. Public opinion supports corporations pursuing economic and social goals. Socially responsible companies tend to have secured a long run of profits. Socially responsible activities are simply the right thing to do. Seeking social goals create an attractive public image for businesses. Involvement in social programs helps to solve social problems. Addressing social problems before they become serious and costly will definitely benefit society as a whole. A socially responsible corporation can normally expect minimum government regulations. Regarding stockholder interests, being social responsibility will increase corporations’ stock prices in the long run. And many successful businesses have huge profits that will support charitable projects that need funding (Robbins, 2005, Page102).Elfen Sicangco Cruz states that there many definitions of corporate social responsibility. According to the World Business Council for Sustainable Development, CSR is a continuing commitment by businesses to behave ethically while contributing to economic development. improving the quality of life for workers and their families. the local community, and society at large.
Initially, most forms of tourism planning were localized and site-specific, reflecting the rather limited horizons that originally characterized most patterns of tourism. But as the spatial range of tourists has become more extensive as mobility levels have increased, planning systems that are capable of co-ordinating development over regional and even national spaces have become more necessary. Second, in view of the natural patterns of fragmentation within tourism, any systems that permit co-ordination of activity are likely to become essential to the development of the industry’s potential. This fragmentation is mirrored in the many different elements that are required to come together within a tourism plan, including accommodation, attractions, transportation, marketing and a range of human resources, and, given the diverse patterns of ownership and control of these factors in most destinations, a planning system that provides both integration and structure to these disparate elements is clearly of value. (Alan, 2005: 48-56) Planning systems (when applied in a marketing context) will also enable the promotion and management of tourism places and their products, once they are formed.Third, as noted in the introduction to this paper, there are clear links between planning and principles of sustainability. Implicit in the concept of sustainable tourism is a range of interventions aimed not only at conserving resources upon which the industry depends but also at maximizing the benefits to local populations that may accrue through proper management of those resources. The commonest form of intervention is via a tourism development or management plan.Fourth, planning can be a mechanism for the distribution and redistribution of tourism-related investment and economic benefits. This is a particularly important role for planning given that tourism is becoming an industry of global significance but one where activity does not fall evenly across different regions and where the spatial patterns of tourist preference are also prone to variation through time. (Ensor, 2001: 126-131)
The reason behind their success is the deployment of strategic planning throughout the years since 1937. They focus on a more efficient human resource by understanding the individuals who possess several unique capabilities. Toyota is head quartered in Japan and operates 75 manufacturing companies in 28 countries around the world (Toyota in the world, 2010). Toyota has set up its market in more than 170 countries with a 320,000-strong workforce. The company was founded by Kiichiro Toyoda by renovating his father automobile manufacturing company Toyota Industries. The company operates its business at its full swing starting from Japan and throughout North America, The Caribbean, Latin America, Europe, Africa, Asia, and Oceania. The annual report of the company shows that even though there is a slight decrease in the production, the company will manage to survive the declining economy with the expected sales turnover. 2. Types of market and legal systems Toyota formulates marketing strategies based on the social, environmental, and economical conditions of each region where the company operates its business. The legal system of the particular country or region is also taken into consideration before implementing marketing policies in the specific country. In 2004, as Gale (n.d.) points out, Toyota in Europe was in a quandary as new environmental friendly vehicles were in high demand when the administration implemented environmental regulations. it was necessary to train the staff with the new technologies of the advanced vehicles. The company integrated the three important elements – marketing, sales, and manufacturing to overcome the problem in Europe. The marketing strategies in China and US were seen successful in 2005 when profits rose up against the worldwide automobile industry trends. When entering into the market of another country, almost all companies are faced with the financial risk of exchange rate variances due to interference of the legal and political systems. The legal proceeding of the foreign markets must be clearly analyzed before investing in that market. Toyota is noted well for its management in the international markets. The company procured a considerable market in the United States by initially bringing inexpensive vehicles. Later on, it widened the markets and expanded its share in the U.S. automobile market. To overcome the market issue of dollar exchange rates, Toyota introduced manufacturing facilities in the United States. 3. Political Risk One of the major political risks that the Toyota motors faced was the backlash against American corporations. It imposes increased parameters on different production levels and on nationalization of its products. This change can influence the operations of the company. The political changes can positively and negatively affect the firm. By the end of 2006, Toyota manufactured 1.5 million cars in North America, but had to import an additional 1.2 million cars (Toyota). While being costly, the high reliance on imports poses political risks in the United States. Managing political risk in the international market is not an easy task. While the political changes contribute direct risks to the firm, the politics also constitutes other external risks. In order to overcome these kinds of possible political risks, Toyota can set up strong relations with various trade organizations. At the same time, the political consultant must make sure that the firm builds up a strong relationship with the governments also. In
Globalization contributes to the tight competition in the global market today. For many years, marketing managers have been carefully establishing a strategic marketing plan that is effective in enabling a business to be successful in the global markets.Customer satisfaction is one of the biggest areas being focused on modern market research since satisfied customers could eventually lead to customer loyalty. (Szwarc, 2005) It is said that companies that are able to gain the most customers’ loyalty are usually the ones that are successful in grabbing the biggest market share. For this reason, organizations today are heavily investing in unique marketing activities and programs such as corporate social responsibility with the goal of retaining their current pool of customers. Specifically, the tight competition in domestic and global markets encourages businesses today to view customers’ loyalty as an important factor in sustaining the constant increase in the company’s profit and market value.There are several ways in which a business organization could satisfy customers. Increasing the customers’ satisfaction is not only dependent on marketing communication such as traditional advertisements on the television or print advertisements in the newspaper and magazines. Today, it is more important for the marketing managers to meet the specific needs and satisfaction of the customers rather than spending a huge amount of money on the ineffective traditional marketing approach. In short, successful business organizations are the ones that could base the marketing strategy more than meeting the common demands of the customers such as providing them with 100% available products including the capability of the company to offer the product at a reasonable price. (Szwarc, 2005)It is normal to achieve customer satisfaction when a company is committed to delivering good quality products and services. (Luo and Bhattacharya, 2006)
There is no contention or doubt that oil and gas are the major sources of energy in the world, despite the invention of other sources of energy like Nuclear and geothermal energy, oil and gas remain the most crucial and fundamental source of energy. The economy of most countries in the world is dependent upon oil and natural gas. this has been greatly evidenced by the effect of global oil and gas prices on the prices of other basic commodities and the cost of living. This vehemently indicates that the global economy is inextricably bound with the global oil and gas market. Political crisis and interrupting in major petroleum producing countries has often had tremendous effect on global prices of all other industrial commodities. This is because oil and gas energy is the backbone of industrial activities and development. . Other factors affecting the global oil market include technical factors, pricing and marketing, Environmental issues, national security, and public policy choices and debates in global oil markets. According to a report released by the International Energy Agency in the year 2011, the top ten oil producers accounted for 63% of the oil produced worldwide. These giant oil producers who have a large share of the Market greatly influence the international oil market. It is also projected that USA is going to overtake Russia as the largest oil producer by 2017. The greatest share of oil production is in the Middle East and political crisis in the last few years has seen a significant increase in global oil and gas prices. … Market regionalisation would see very great oil price disparities which is mitigated by the oil controlling cartels like OPEC (Organisation for Petroleum Exporting Countries) OPEC has dominated the global oil market for a very long time and has somehow been effective in pushing the price of oil upwards in favour of oil producers. Due to the impact that the cartel has on the prices of oil and the market in general, there have been claims that the global oil market is not a fair market. This has seen petroleum producing countries realise a lot of wealth from the oil importing countries. The cartel has been effective in keeping the prices of oil higher than it would probably be if controlled by competition in a liberal market. However oil prices are at times greatly affected by world crisis or disasters and also speculation by the traders in this multi Trillion industry The petroleum producing countries greatly impact on the global oil prices by regulating production and supply, especially OPEC is very instrumental in regulating production by member states thus affecting supply and demand. The organisation is also involved in marketing of oil of the member states giving them a bigger bargaining power. If traders speculate a reduction in oil, prices they push the prices up, the availability of oil in strategic reserves also affect the global oil market. These include the oil stored in American reserves and refineries and also Saudi Arabia which has a very big reserve. If Saudi Arabia for instance allows release of oil from its strategic reserves, global oil prices tend to go down. Demand of oil and gas also greatly impact on the prevailing prices, this is especially during the
Culture is the beliefs and values that affect the behavior of a group of people (Shermerhorn Hunt Osborn, 2003). The culture of any region a company wishes to operate on has to be studied to learn how to effectively utilize marketing techniques to introduce company products and also to learn what adjustments need to be made in the corporate culture to align it with the culture of the residents of the region. The scholar with the greatest knowledge in cultural analysis who invented the most renounce method to perform this type analysis is called Geert Hofstede. His method is called Hofstede’s cultural dimension which has five dimensions which are: power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and confusion dynamism.Walt Disney Company is a multinational enterprise in the entertainment business that was founded in the 1920s by Walt Disney who created animation characters that capture the hearts and imagination of the American people. The company is dedicated to movie productions, network television, amusement parks, consumer products, internet interactivity product among other businesses. In 2006 the company had total revenues of $34,285 million (Disney, 2007). The company’s amusement was originally founded in California, Disneyland, and gained greater popularity in Florida, Disney World, with incredible attractions that bring millions of visitors every year to its premises. The success of the amusement parks in the United States inspired the management of the company to open a European version of a Disney amusement park in Paris, France in 1992.The company selected Paris because it had the best and most affordable available large flat lands to build a park in the area and the location seemed like a perfect strategic point since it placed the park within a four-hour drive of 68 million Europeans and within a 2-hour flight of 300 million people (Solarius, 2006).
The website to be developed should assist the company market their products, sell them online among other crucial activities such consumer satisfaction surveys. The report is going to shed light on the crucial steps that will be employed so as to make sure that website serves the intended purpose. The business has 4 branches in the world. The company seeks to enforce online marketing delivery of their products to selected nations.The goals of the business are primarily marketing the products on sale and making sure they increase their profits though online sale and delivery. The company also seeks to be capable of running consumer satisfaction surveys so as to assist they gauge their progress. Finally, the ultimate goal is to ensure that the company becomes a reputable and among the most respected and successful in this field of businessThe website will, therefore, be designed so as to make sure the company achieves most of it goals in the most efficient way possible. The website will become a partial platform to the marketing department. This is because many people nowadays depend on the internet for many things, making it an easier place to access customers. The products will be marketed by posting them on the website and giving information on the latest technological gadgets awaiting release and those already in the market. In order to enhance marketing, the company will have to alias with most visited websites and have accounts in social platforms such as Facebook, linked inn, twitter and MySpace among others.Secondly the company will should be able to give customers the ability to purchase items and request them to get delivered to supported locations. The products shall be priced ant thee availability of a customer to purchase the items collectively using a virtual cart.
While Harley Davidson (HD) has been seeing growth and profits for 19 consecutive years, it cannot be complacent in view of the growing competition. It has therefore set its eyes on the emerging Indian market with its predictably booming consumer market. If this takes off, the huge customer base of millions could open new doors for HD. However, a carefully crafted marketing plan needs to be drawn for the purpose.HD has had a dream run for several years. It has banked largely on its Macho Image which was aided by fun-loving and beer-guzzling characters in the classic film Easy Rider. Lately, it has toned down this bad boy image but it retains the adventurous image it has built up. Apart from the charisma of the HD name and fame, the business needs to attract the Indian customer which is comparatively more price-conscious. The Indian customer is looking for the brand image as well as a greater variety as is being sold by other competitors. A new entrant in the market is women who have shed their earlier shy image and now ride bikes and scooters. In fact, some competitors have opened exclusive women-only scooter showrooms. HD needs to have an Ad agency and a PR agency to devise a comprehensive Marketing Plan for the Indian market.The external environment, also known as the Macro environment is comprised of factors that are beyond the control of the company. This comes out very well when a PEST analysis is conducted. PEST stands for Political, Economical, Socio-cultural and Technological factors. It can be is seen from the PEST analysis that external factors are generally in favor of an increase in business. Many foreign bike manufacturers have set up facilities in India and have no regrets. HD can find a suitable partner and go ahead without qualms. Also, congestions in the cities have also made bikes a more attractive proposition. With economic upliftment and additional employment opportunities, the biking industry is poised for further growth. The introduction of scooters and lighter bikes is helpful in adding women to the list of bikers and the utility value is enhancing the overall market.
Louis Vuitton in London continues to use fixturing today to dispense its merchandise productively as well communicating the right environment on its retail floors. This paper analyses the use of storefront Window Displays at Louis Vuitton. Generally, the company opens on a shopping mall walk or a street with the aim of attracting passersby who would otherwise not enter the store.Windows displays remain an integral part of success in various service design programs and provides many benefits. This discourse undertakes an evaluation of windows displays in service marketing besides highlighting the benefits accrued from the application of the same. The paper aims at aiding fellows engaged in the process to express realistically and precisely the actual benefits to aim at. Samples from various literature materials by various scholars indicate that technically three major benefits emanate from window displays in service design projects (Ray 102). The benefits spread over three categories affecting customers’ services and users, the service design program, as well as the entire institution involved in the design project. It is important to comprehend that the benefits closely relate to the process of enhancing the creative process, management of the project, the service process, as well as long-term influences. This forms the basis of this discourse proposing that people involved ought to draw their goals first before engaging in any windows displays process, then rearrange the goals in tandem with the windows displays activities. This helps in generating related benefits to the drafted goals.A view of the windows displays at Luis Vuitton reveals several important elements of successful merchandise (Fox 41). To begin with, the displays are economical. The available space, products, and materials fall into appropriate utilization. Secondly, the displays are versatile. In this case, the windows show almost all kinds of products sold at Louis Vuitton and fit almost every aspect.
This paper will focus on present information about the market situation, Toyota share in Australia market, target market, trends that bear on the company’s product line in future, and identify the (SWOT) strengths, weaknesses, opportunities, and threats facing the company. Introduction In Australia, the head office for Toyota Motors Corporation is located in Melbourne where all the manufacturing activities are conducted. However, the marketing and sales are done in Sydney. The Australian branch deals with manufacture of vehicles such as Camry and Aurion. However, Toyota Australia is also concerned with importing other models, which include Corolla, Toraga, Kluger, HiAce, HiLux, LandCruser, Yaris, Torago, RAV4, and Prius. Additionally, Toyota Australia is concerned with selling of other brands such as Lexus. Toyota Australia is performing considerably well. It was the best vehicle exporter in 2008 when it exported 101,668 cars. Toyota Australia markets its vehicle to more than 20 countries located in different parts of the world. Market Situation Toyota Australia leads the automobile industry in Australia in manufacture of environmentally friendly vehicles. One of the greatest successes was success of hybrid technology, which was used in Prius. Currently, Toyota Prius, the most advanced hybrid system in the world is the most selling product for Toyota Australia. After the 2008 economic crisis, has been experiencing decreased sales in vehicle sales resulting in reduction in profits. However, Toyota Australia remains the best performing Automobile manufacturer in Australia. It has a market share of about 23.7%. However, the sales are expected to grow as the global economy recovers from the recession. After the recession, the Australian dollar weakened resulting in increased prices for all imported cars (Deloitte, 2012). Toyota Australia is the largest automobile exporter in Australia and mainly exports its vehicles to Middle East, Pacific Islands, and New Zealand. However, Toyota Australia is facing grave competition in Middle East due to entry of automobile companies from China into this region. Although the market condition continues to become tougher, Toyota Australia is performing considerably well. The best performing car model include Corolla, Yaris, Corolla, and HiLux (IBM, 2011). Increase in the demand for car over the recent past has resulted in growth in market for Toyota Australia. Target market is the people working in the cities. The Toyota automobiles are affordable to people in middle and lower classes. However, Prius is quite expensive but being efficient in fuel use makes it favorable for different groups (IBM, 2011. Deloitte, 2012). Macro Environmental Situation Macro environment is the economic external market environment and the broad trends that may bear on product line (Woof, 2011). Increase in completion has obligated Toyota Australia to create more fuel-efficient cars, which emit fewer wastes hence environmentally friendly. This led to manufacture of Toyota Prius, which is considered the greenest car since it has reduced pollution and greenhouse effect. However, this model is facing competition from Honda Civic Hybrid and Ford Fusion Hybrid Car. The major competitors of Toyota Australia include Ford, GM, Mercedes, Volkswagen, BMW, and Honda (Mullins, Walker, Harper, 2009. Silva, 2006), Politically, Australia is a democratic country. Australia is
Studies are utilized by advertising agencies to identify potential buying demographics. This information is then used to target specific markets and to learn about public attitudes, why they buy specific products, and what sort of promotions would most appeal to their desires to purchase. To some companies, marketing is about generating sales, period. The tobacco industry has used such studies to target the young and uninformed. They have used deceptive advertising as a result of these findings in the form of marketing ‘low-tar’ cigarettes. They have also used cartoon-like characters to appeal to the youth consumer. To their delight, this strategy indeed generated sales as planned without an ethical thought as to the dishonesty of such practices or that this practice was particularly disgusting as it applies to youth smoking. The marketing of filtered and low-tar cigarettes was planned to comfort smokers worried about the health risks associated with the habit and to impart this new product as an alternative to not smoking. The marketing tactics adopted by the tobacco industry are not unique to this field, but instead provide an excellent example of why consumers cannot trust brands, particularly those that seem most appealing.Uncovered documents regarding the promotional efforts of tobacco companies in the 1960s and 70s show that the Joe Camel campaign was conceived from an advertising suggestion to use comic strip characters that appealed to younger potential smokers. This was after a study which revealed that first-time smokers generally preferred Marlboro, a trend aided by the highly successful ‘Marlboro Man’ campaign. The vast marketing success of Joe Camel fostered similar ad campaigns such as the Kool penguin. Sporting sunglasses, ‘Willie the Kool’s’ design and marketing focus addressed young teenagers’ need to fit in or be ‘cool’. Tobacco advertising has been banned from television viewers since the late 1960’s but has found alternative means by which to market.
Global trends of political and economic liberalization have created tremendous business opportunities as well as challenges for global marketers. The information has been considered to be a key component in developing successful marketing from global opportunities and meeting the challenges by avoiding marketing blunders. Information can be either acquired through research or bought from trusted research vendors. Entering into a new foreign market is one of the most daunting and ambiguous marketing strategic decisions that needs careful and intensive market research so as to assess the opportunities to specific market information for decisions regarding product, promotion, distribution, and pricing, etc. Ember and Ember (2009) stated that the term cross-cultural refers to any kind of comparison between different cultures. The cross-cultural research focuses on systematic comparisons that aim to answer the questions about the incidence, distribution, and causes of cultural variances (p. 2). The cross-cultural researchers usually apply standards principles of scientific methods and research design, with the help of random or other sampling methods that are assumed to be unbiased, reliable, and dependable so that others can replicate the results (Ember and Ember, 2009, p. 3).Cross-cultural research has been a significant part of the anthropological discipline in which researchers have worked with different people of different cultural and social settings mainly by using ethnography for the data collection (Liamputtong, 2008, p. 3). Entering into a new country remains to be a marketing challenge because, different countries have different cultures and social backgrounds therefore it is imperative that researchers increasingly need to ensure that their work should be conducted ethically and considering the cultural norms as well.While conducting cross-cultural marketing research, there are various issues that researchers are to consider and make necessary arrangements so as to solve the issues.
The technologies and resources available to the first movers and early entrants render this a closed market in the sense that it is unlikely to absorb new entrants. An application of the resource-based view of the firm confirms this hypothesis.The dissertation, however, finds that while the opportunities for new entrants in the referenced market are limited, they do exist. Quite simply stated, should the first-movers cease their continued drive towards innovation, thus, leaving a gap in the market, new firms can enter. They, however, can only do so if they have timed their innovations to coincide with the mentioned gap.As the study concludes, the opportunities for new entrants are far and few between and, indeed, their chances for success are minimal at best, considering resource variances between them and the early entrants. The fact remains, however, that such opportunities exist with the key being innovation and product timing.To those from without the industry, the office equipment market appears to be a highly lucrative one. Indeed, as several market researchers have remarked, the profits which the printer, copier and facsimile machines’ market appears to promise seems to beckon new market players to enter this particular industry and market sector (Herbig Kramer, 1994. Elliot, 2005. Ruffo, Tuck, and Hague, 2007). Irrespective of appearances, however, and notwithstanding the size of the market, there is no room for new players as this is a first-mover market in which the odds are stacked against new entrants. As noted by several market analysts and marketing scholars, innovation is the key to survival within this market and, due to that, the market status of its key players (Xerox, IBM, Ricoh, Canon, Kyocera-Mita, and HP) is virtually untouchable (Clarke, 2000).Proceeding for the above-stated, it is apparent that professional and academic opinion tends towards the contention that the office equipment market is not open to new players. that there is no room for new players within this market.
The use of electric cars is increasing in all economies in the current epoch. A battery stored electrical energy or electric motor helps to run the contemporary electric cars manufactured by Tesla Motors. The modern electric cars produced by Tesla comprises of efficient electric motors that facilitates in generating torque. Torque helps to generate smooth and strong acceleration to such cars. The Tesla electric cars are considered to be the safest cars in the automobile market. There are many car models of Tesla:- Model S: a 7 seating electric car generating no emissions. 265MI EPA range of certification. 4.2 sec, 0-60 (acceleration). Model X: comprising of a dual motor, one of the motors is well equipped to work well in all road and climatic conditions, generating a torque of 50%. 5 sec, 0-60 (acceleration). It has a 60 or 85 kWh powered battery. The model uses does not uses any gasoline. The firm has planned for its new designed electric car, Model X Design Prototype, the car would be launched for sale from 2014 and its price would be that of Model S. All the products of Tesla are eco friendly and unique in style (Teslamotors, 2013). Other Large Competitors. Vehicule Electriques Pininfarina Bollore, BYD Auto, Nissan and Renault are four giant automobile companies that have launched excellent models of electric cars. Such cars symbolize class, status and environmental consciousness of the users. SIC Codes. The Standard Industrial Classification Code (SIC) of the automobile industry in United State is 37111. Trade Magazines and Labor Unions. The automobile firms like Tesla require large number of laborers for its manufacturing, operational, marketing and retail outlets. Several trade magazines have talked about the good virtues of the automobile industry facilitating high employment generation. However, it should also be considered that when the number of employees in an industry is high, the bargaining power of the workers rises. Labor union leaders ensure interests of the employers in the workplaces. It has been empirically observed that the strong labor unions of the automobile market in U.S. have compromised the competitive powers of the companies in the global market. In the last thirty years it has been found that the labor union leaders have forced American firms to increase the level of trade barriers. Labor unions have made U.S. automobile companies lose their market shares to the foreign rivals. The labor unions demand for high wages from the companies. Delphi pays $76/hr to its workers. It is estimated that in every car sales of a company in U.S., the labor union achieves a benefit of $2000. Sometimes the big automobile companies like Ford have ceased some of its operating plants for pricy labor costs (Teslamotors, 2013). Figure 1: U.S. Auto Labor Markets (Source: Author’s Creation) The above graph shows the U.S. auto market, high intervened wages rates set by the labor unions reduce the quantity of car produces and increases the cost prices. It generates a deadweight loss into the industry. Imports and Exports. Despite of the disturbances of labor unions, U.S. auto industry enumerated a surplus trade balance from 2010 to 2011. The aggregate imports and exports of cars across the world on average in U.S. have increased. The percentage change in imports is 12.4% and percentage change in exports is 17.9%. On total, aggregate sales have increased and have changed by 7%. However, when regional disparities are
With that respect, this paper will seek to carry out the promotion of wine coolers in Argentina.To attain big and potential markets, promoting wine coolers will require appealing internet and mobile advertising to encourage alcohol drinkers to increase their alcohol consumption. This will require posting information regarding the product on social networks like twitter and Facebook where the targeted buyers are familiar with these sites. In addition, they must persuade the target audience to switch their wine cooler brands and encourage non-alcohol drinkers to begin consuming (Pan American Health Organization 56). Ensuring relevant market segmentation and target marketing delivers standard business practices that help to expand the number of buyers and consumers in the population. A report released by the National Institute on Drug Abuse reveals that, white Argentines drink more than nonwhites do.Wine coolers share a particular product attribute with other alcohol-based products commonly consumed by the youth. They resemble soft drinks in their fruity, sweet flavoring and their colorful single-serving sized packaging. With reference to Monitoring the Future, the annual survey carried out by the federal government regarding drinking and drug use in a sample of around twenty thousand students across Argentina, wine coolers are the only alcoholic beverage category more popular with girls than boys are. In spite of its success in grabbing the biggest market share, its bright colors, confusing labels, and cartoon spokes characters drawn some criticism from other industries (Mullin 127). At this point, producing this product locally and employing Export Management Company services to help in distributing the product can leave the product with a price that is competitive. This strategy can also make sure retailers get the product at a reasonable and effective price that leaves competitive space for the wine.
Diagnostic audit is one of the important audit tools that examine the marketing operation of a specific business unit. Objective of the study The study has provided the backdrop for the crystal clear review of the marketing components and activities of the companies under the small and medium scale enterprise. The study has been conducted considering three companies such as Jain Estates, Multisoft Systems and Infinity Informatics. Multisoft Systems is an India-based software development company listed under growing SMEs in India. Infinity Informatics is an information technology products development company situated in Bangalore. Jain Estates is one of the emerging real estate company listed under SMEs list in India. These three small and medium scale enterprises are increasing their market reputation slowly and gradually. The major objective of the study is to review or assess the marketing and business capabilities for these small and medium-scale enterprises. In order to uncover the study, the following objectives can be set for the purpose of research work. Determining and closing the marketing and business capability gap. Implementation of marketing audit and toolkits in order to betterment the SMEs business and marketing capabilities. Importance of the Diagnostic audit to measure the marketing performances of the three companies. Elaborating the findings of thorough analysis and recommendation plan for the problem statements. In order to draw a decision, the study needs a conclusion whether the marketing audit is effective or not in terms of the business practices of the three small and medium-scale enterprises. Marketing and business capability gap The gap between the…It is necessary as it identifies and rectifies the problems in business practices. The marketing audit efficiently assesses the business performance of a company. The owners of SMEs need to learn and implement the audit for the betterment of their business practices. The government should organize some events or programs related to the awareness and importance of the marketing audit considering the SMEs as the SMEs significantly contribute to countries’ economical development. The SMEs owner can be benefited by such awareness programs. Moreover, it is necessary that small and medium-scale enterprises appoint an external market auditor due to the small size of industry. In order to evaluate marketing planning and performances and establishment of improved and integrated business strategy, the marketing auditor is need to be appointed in a SME. Conclusion Without effective assessment of previous business performance, SMEs cannot rectify and improve their business performance in the near future. The above study has clearly stated the potential of small and medium-scale enterprises. Moreover, it is feasible from the research work that effective marketing audit will help structure the marketing budget for sales and marketing activities of specific products and services.
These roles include ensuring quality services are offered to patients. recruiting, training, and managing the administrative staff. and overseeing the patient’s records. In addition, the manager should agree on and manage the general practice budget. monitor patients satisfaction. and handle complains from patients, as well as, ensuring appointments run smoothly. Managerial functions are not limited to the daily operations of the practitioner, but he or she also assesses the market and advice the BOARD on the introduction of new services in the General Practice. In Newham there is a huge population of people who seek medical attention from the General Practice clinics. The Newham population is expected to grow at an average rate of 11% which provides opportunity for the General Practice to invest (Dlugacz, 2006). Selecting and developing a suitable practice environment The accessibility of a general practice is the primary factor that should be considered in a General practice. The selection of a suitable location puts into consideration the safety and the nearness to the patients. It should also consider other strategic things such as means of communication, water, and power supply. One should also have in mind the competition from other established service providers. In this case, the competition comes from the National Health Service. In addition, one has to consider the services to offer. For example, in Newham borough the demand for primary health care is huge. The interior and exterior layout should be appealing and provide a sense of security to the patients (Heizer, 2004). A person should also consider the staffing on the roles of each staff, the supervisors and the clinicians who have to work as one to achieve the desired results. Marketing and promotion of the practice Brand The patients should have enough knowledge of the services provided and their quality. The practice has to focus on the target patients. For example, in Newham in the Tower hamlets borough, the major service is primary health care. The manager should identify ways of improving their services in order to gain competitive advantage over others. There are many population distribution factors that may affect the General practice. In the Tower Hamlets Borough had an unemployment level of 12% which is the third highest. It is also the most overcrowded area with 15% of households overcrowded and high crime rate (Dlugacz, 2006). This calls for appropriate mode of advertising to reach them. Buying and selling of a practice Buying and selling a practice should be done with caution. One should involve a general practice surveyor and the deal should be signed in front of a legal expert. The issue of shareholding is crucial since all parties should be satisfied with the deal. A person should also be fully aware of the reasons behind the selling of the practice in order to plan on the best action taken to move into the practice (GPC, 2005). Apply essentials of starting a practice Before a general practice is started, it should ensure that it has fulfilled all the legal requirements. The practice is bond bound by the law to provide services to the disadvantaged people. For example, the practice should remove physical obstacles such as replacing steps with ramps and expanding narrow doorways in the premises. This is according to Disability Discrimination Act (1995). The practice should ensure that
These coupons are sent through SMS, MMS, Bluetooth and other mobile media. The consumer can redeem coupon at store or through internet. The mobile coupons are better than the traditional paper coupon in such a way because the coupons are reliable means of encouraging bulk purchases. Whether the product or service is traditional or not the coupon promotes experiment among new target customers. It can promote sales. Once the product is sold through proper distribution channel, the coupon ensures that they sell through to the end user. Through mobile coupon, companies can make a database of customers, because to ‘receive their check’ the customers must provide their number and address. These databases help the company to track purchasers (Mobile Market Association, 2007). There are other benefits of using mobile coupon which include: Customers always keep mobile with them, so they can never leave mobile coupon at home Customer can use mobile coupon system whenever they prefer to buy or eat anything from shop. All they have to do is to send the coupons before lunch time Customer can forward these coupons to their friends and relatives and they will not have to pay any extra charges for forwarding coupons Young people and teenagers prefer mobile coupon system to traditional printed coupon system Uses of mobile coupon can save trees because it doesn’t need any paper unlike the tradition coupon system (Advanced Mobile Solutions, 2010). Question 2 What Are The Risks Involved With Mobile Marketing And M-Coupons? Many customers are disturbed by receiving any type of marketing messages into mobile because mobile is a personal thing (Marketing Minefield, 2007). Mobile is good for marketing, but there are many mobiles which support only 160 characters per SMS and that is not enough to display all information about any special offer (Marketing Minefield, 2007). Privacy is a big issue in mobile phone. At times, customers provide instruction to mobile subscriber to opt out any unnecessary messages. Because of troubles related with opt-in SMS lists, this marketing technique has its own restrictions towards the customers (Marketing Minefield, 2007). Standardization is also a drawback of mobile coupon system, because each phone has their operating system, different screen size and different browsers. Marketers have to optimize their phone to the customers’ phone for delivering any kind of advertisements or WebPages (Business Link, n.d.). Customers are cautious nowadays to respond to SMS messages because of increase in fraudulent and spam SMSs. They respond negatively to unwanted messages (Business Link, n.d.). Question 3 What Are The Privacy Issues Involved With Mobile Marketing And M-Coupons? In mobile marketing system, securing privacy is a ‘commercially valuable benefit’ which protect customer’s privacy in online environment. Customers always value their privacy. They are always cautious whether a wireless site is tracking and receiving any private information about them. It is common that every company needs demographic and behavioral information about their customers for business purposes, but customer feel that no company has the right to sell their information to other organization. The ultimate solution to this conflict is to make a partnership with customers where company can control the ownership of customer’
Scott Gegenheimer holds the title of CEO of the Group (Zain, Believing in the Power of Dreams, Annual Report 2012). 2. The two letters have been written by the Chairman and the CEO of the Group basically addressing the shareholders. The basic message in the letters comprises assisting the shareholders to know about the broad operations of the company throughout the year with the deliverance of certain useful information. These encompass short description of the financial results, business practices, marketing strategies, current position in the operating business markets, future goals and most importantly its rise in profitability from the preceding few years, making a greater appeal to its current and potential shareholders (Zain, Believing in the Power of Dreams, Annual Report 2012). 3. Letter from the Chairman. In this letter, the first paragraph depicts a short description about the challenges faced by the company throughout the financial year 2012. Additionally, this section explains the changes in the external as well as the internal environment and how the company addressed those challenges with the adoption of few developmental based projects and effective business policies. The next part of this letter explains the operational results of the Group including net income, earning per share and consolidated revenue with relevant data. Correspondingly, the next section of the letter depicted a detailed understanding about the launch of various networks by the company and its restructuring business process in different parts of the globe. The last section of this letter portray the Corporate Social Responsibility (CSR) based activities that the company performed towards the society and the environment with a conclusion seeking for continuous support from the esteemed members of the Group (Zain, Believing In The Power Of Dreams, Annual Report 2012). Letter from the C.E.O. In this letter, the first section provides a brief explanation about the journey of the company and the experience of the person as the CEO. The next section of the letter includes the description of the services or the products that the company offers to its customers and how it is adopting effective strategies to raise the level of customer satisfaction. Correspondingly, the next part of the letter reflects the review of the business conducted in the financial year of 2012. The last section of the letter presented looking forward statement with an aim to show the potentials of the company to compete in future (Zain, Believing in the Power of Dreams, Annual Report 2012). OTHER MATERIAL 4. The 2012 annual report of Zain includes various sections including Chairman and CEO statement, company overview, key milestones, share price evolution, business operations, group technology, financial statements and practice of CSR activities among others. All the information has been provided and explained in a proper sequence. Additionally, it can be viewed that the annual report has been prepared with the focus of keeping it quite simple and easy to understand by the customers along with the shareholders (Zain, Zain Group’s 2012 Annual Report Earns Accolades at ARC Awards in New York). The materials contained in the annual report and the messages that these communicates can be viewed as quite impressive owing to the reason that one can obtain a clear idea about the financial performance of the company and also the effective strategies that the company adopted. FINANCIAL HIGHLIGHTS 5. Zain provides adequate financial information to the shareholders through presenting those in its annual reports. The shareholders of the company are provided with appropriate financial information concerning the operational performances as well as other related financial
Toshiba Overview and Global PresenceThis gives the company a global feel and as a result a competitive edge for its products. Toshiba is also listed in the stock exchange markets in London. The number of shareholders is approximately 457,467 holding a total of 423,760,000 shares (Toshiba). With an asset base of 69,893 million US dollars the company is led by Norio Sasaki together with the other company’s executives and together they have steered the company to success. With the wide range of products and outlets the company has established itself as one of the leading companies in the electronic business providing a wide variety of products. The global presence is an advantage that the competitors have been unable to penetrate successfully. A. Marketing Mix a) Product The company’s products and services are classified under three categories: computers and accessories, home appliances and consumer electronics. The company has a wide variety of innovative laptops, televisions, projectors, laptop accessories and external hard drives. Business products include copiers, printers, scanners, semi-conductors, hard disk drives, surveillance equipment among others. Industrial products include automation systems, UPS, power systems, LED Display systems and industrial video products. Looking at the wide variety of products each targets a different niche of customers. The products are displayed in variety of showrooms in the various branches. The array of products is geared towards establishment and maintenance of a competitive edge against the competitors. … The company comes up with new products that provide a wide range of solutions to businesses, industries and individuals as well. The company takes advantage of internet connectivity to conduct E-Commerce where they have come up with their own website. The website has comprehensive details about the company ranging from its products, sales, and policies in short anything you would want to know about a company. i. Cultural Factors Toshiba prides itself in having a strong safety and corporate culture which has been adhered to throughout the business operations. The company provides a plat form of sharing important information and the employees are aware of acceptable code of behavior. The company adopts the culture of employing people who are knowledgeable on current information about technical issues (Whittaker 15). In addition these people are also aware of the environmental issues which enable the company develop safe products. Their culture is flexible to suit the ever changing market conditions, with safety attitude being the most important. When taking risks the company’s employees are advised to follow strict guidelines when making risk decisions that affect products safety (Cutts 35). The success of the company has been largely attributed to safety decisions and products. ii. Customization vs. Standardization The choice of customization or standardization depends largely on the product. Toshiba has adopted a method where the customer specifies the features they want in a laptop. The customer will log into their website and choose want they want from wide variety of choices which include internal memory, size of the screen, and speed of the processor at an affordable price. They have also developed a list of
Marketing StrategiesCoach always tries to offer something new to customers through carefully designed marketing strategy. The company has revamped their product line over the time in order to fulfill demand of various customers. Coach has great success because of the strength of its brand. The company specializes in selling ladies handbags, luggage, wallets, briefcases and leather accessories. Brands offered by Coach have three distinctive brand equities. These three factors can be classified as product innovation, excellent value offering and relevance. The company conducts market research about customer preference by conducting interview of 15,000 people every year and based on interview report they innovate products in accordance to customers’ lifestyle. Product line of the company maintains relevance with demand of the customers by changing fashion statement and trend in periodically. Coach offers value products by offering, inspirational, stylish leather goods to customers. Coach offers leather goods to both men and women in the following manner. Women Reason Men Reason Handbags, wristlets, shoes, outerwear, jewelry, fragrance, sunglass and many more To attract women with colorful product line Wallet, accessories, belts, shoes, outerwear, tech accessories and many others To fulfill multidimensional fashion requirement of men (Source: Shop) Target Customers The company mainly targets women in the age range of twenty to fifty five. Coach has significantly introduced new products in their offering in order to fulfill demand of women belong to various age group. Analyzing mailing list of the company helps the study understand demographics of target market in the following manner (Paxson 64). Professional women and women with white collar job. These women prefer to shop trendy and fashionable shoes, wardrobe items, apparels in order to enhance their professional image in front of external society. Women do not want to compromise with style, fashion statement in order show their taste to external society. They believe by purchasing branded products of coach will not only enhance their social image but beautify them also. Research report shows that average age of women purchasing leather items from Coach is forty five with an average spending of $100 on each item. Promotions The company relies heavily on e-marketing in order to promote their product. The value proposition offered by the company has five distinctive pillars. Providing sufficient links in the website to attract customers and investors to access financial statements, stock information, report of new product launch etc. My Account feature is added in the website to engage customers with the company. The company updates their feature product line on website periodically in order to retain existing customers. The company conducts online market research on customer preference and based on the research report they decide marketing strategy. Coach has introduced Coach by Request section for customers in order to offer them superior customer service. Coach by Request gives the opportunity for customers to order home delivery of tailor made items. Licensing Coach has recently signed license agreement with Luxottica Group for designing, manufacturing and distributing sun and prescription eyewear under the brand name of Coach Poppy, Reed Krakoff
The formula and process used in making the product made the company instantly gain its own identity from other similar products. As a result of the company’s unique marketing strategy, the London-based drinks company was able to double its profit annually. (BBC News, 2007)For the purpose of this study, the researcher will concentrate on examining the marketing techniques used by the company upon positioning its product line in the market. To enable the researcher to understand how the company was able to increase the expected company’s profit up to £100 million in 2007 (Innocent, 2008b), the researcher will analyze Innocent’s market segmentation strategy by analyzing the personal comments made by the key stakeholders, the customers, suppliers and investors in terms of being able to establish a strong brand name in the marketplace within a short span of nine (9) years.Innocent Drinks has been producing Innocent smoothies made from the fine recipe for all ages. Among the common smoothie flavours offered by Innocent Drinks include: the combination of: (1) cranberries raspberries. (2) strawberries bananas. (3) blackberries, raspberries boysenberries. (4) oranges, bananas pineapples. (5) mangoes passion fruit. and (6) pineapples, bananas coconuts. (Innocent, 2008c)In order to maintain the product-life-cycle of Innocent smoothies, the company continuously produce different new recipes to be sold to the public under ‘Our Smoothie of the Month’ or ‘Seasonal Smoothie’. (Innocent, 2008c, 2008 f) In line with this matter, Innocent Drinks started by selling only 3 different receivers in 1999 and ended up with 30 different recipes in 2007. (Innocent, 2008b) Basically, it is necessary for Innocent Drinks to introduce new flavors regularly in order to maintain and capture a bigger share in the local market even before the company reaches the maturity stage.
This nail polish is temperature-sensitive and has chemical components that react with heat and cold, resulting in identified colors: black means tense. gray means nervous. amber means mixed emotions. green means envious. blue-green means somewhat relaxed. blue means at ease. dark blue means very happy. white means frustrated. bronze means restless. pink means uncertain. yellow means imaginative. orange means optimistic. red means angry purple means clarity.Chic Nails, Inc. distributes its products through its main branch and through varied retail outlets within Rome and Italy. It targets to penetrate international market within two years from the date of commercial launch in Italy.Rome’s population is predominantly female, the majority of which belongs to the 40 to 64 and 25 to 39 age brackets (Population Demographics in Rome GA. 2008). These women are Chic Nail Inc.’s target population, including the younger ones belonging to the 13 to 18 age bracket. The following are the characteristics of the target market:Chic Nails, Inc. is a start-up company that manufactures and distributes nail care products. It offers the standard line of nail polish hues, offering a total of 85 different colors in the market. However, its flagship product is the Mood Swings Collection, a nail polish type that is actually clear in color, but changes alongside the owner’s moods. This is done thru the incorporation of certain chemicals into the lacquer, which makes it sensitive to the temperature of the person wearing it. There is a particular color assignment to every mood, which in turn, corresponds to a temperature degree, usually signifying a change in the owner’s moods.The Mood Swings collection is a relatively new product of its kind. Due to the new mix in the chemical components of the product, the production cost is also relatively much higher than the standard collection, thus making it also priced higher than the rest of the competitors in the market.
While maintaining their traditional outlook, some of the firms have adopted the internet for marketing and provision of financial services. With the continued adoption of the e-business, terms like viral marketing, mass customization, and real simple syndications will be common. The expansion of the e-business had had a positive impact on online payment platforms such as Moneybookers and has encouraged the use of electronic check, electronic bill and payment and digital wallet systems. This paper examines the Sephora’s e-business model and in particular its website and other elements associated with the B2C collaborations. Sephora: brick-and-click model The Sephora Company is one of the major players in the beauty industry and provides the consumers with trendy and modern products and services. The company’s origin can be traced to the 1960s, and it relies heavily on the self-service model to sell various products. All the customer is required to do is to walk in any of its stores, and try the available offerings at no cost. The company was founded by Dominique Mondonnaud in Sweden but since then, the company has expanded its operations to many foreign countries including the United Kingdom. The company was acquired in 1993 by the Louis Vuitton and currently, the company offers over 200 brands and 13,000 products (Jansen and Mullen, 2008). By offering quality products to the customers, the company has been able to compete effectively with the close competitors. At the same time, the company offers differentiated goods and services which it then at a premium to its customers. According to Schibrowsky, Peltier and Nill (2007) its products are differentiated on the following basis: freedom, experience and guarantee. In this regard, customers have the freedom to choose their preferred products from a wide of range of brands at different prices. They also test the products before they sell them to the targeted consumers. To popularize product offerings, the company has adopted the digital marketing strategy by launching a well-integrated website. The website was launched in 1999 and is used by the customers to purchase different products and services, view feedback and watch make-up tutorials. Through the website, the company is able to conduct promotional activities including rewarding its customers with free samples for each online purchase. The company’s website is particularly important in reaching the chic audience, and has really helped the company to diversify avenues through which it distributes goods and services. The company competes directly with Macy’s, Nordstrom, Saks Fifth Avenue and Neiman Marcus, but despite the huge competition, the company has managed to maintain market leadership by offering premium products and by selling niche brands. At the same time, by offering a wide range of products and services, the company has been able to increase the consumers’ choice. Moreover, through the company’s website consumers can access information related to their inventory, ratings and reviews. One of the prominent activities conducted at the company’s website is the beauty talk. Customers are able to discuss the suitability of different products and services, and through such forums they are also able to obtain information about various product categories, expert advice and ask beauty questions (Pickett-Baker and Ozaki, 2008). The beauty talks are enhanced by video, which directs the consumers on how to use different products and a lounge where users can share their hauls and beauty confessions. To help the customers in the decision making process, the company’s website features a ‘top 10’ product list. Even more helpful is the ‘
One such business whose activities have an impact on the lives of people around the globe on daily basis is Saudi Aramco (Saudi Arabian Oil Company). in a time span of 60 years, this renowned company has evolved from just a minute American initiated venture based in Saudi Arabia into a full-fledged company with extensive operational scale- from joint venture refineries to completely owned marketing and sales offices situated in North America, Europe, and Asia. Set up with a commercial intention, and the mission of converting a small venture into an international business dealing in all sorts of oil-industry related activities, Saudi Aramco established itself into the world’s largest vertically integrated energy unit. The success of Saudi Aramco rests on the proper utilization of the creativity tools which have marshaled it into the right direction, for these tools give birth to creativity, and result in the value-added to its products or processes, thus the correct identification of all those factors which can add value, are creative and above all signify a difference, are creativity tools. Saudi Aramco relies on innovation management and its cultural organization as a measure to creatively differentiate itself from other businesses and to carve out its unique place in the oil market.Saudi Aramco is very skeptic towards the idea of taking risks, they consider whether the risk involved would provide a sufficient level of profits, i.e. if their Board of Directors deem it to be feasible, then they undertake it, such as when the Board of Directors of Saudi Aramco rejected the proposal to extend the reach of the new trading unit to be allowed to sale 25 percent of refined products. This attitude defines a closed atmosphere, wherein individuals are not highly encouraged to take huge risks. they walk on conventional lines and strategies. Their increased dependence on the King of Saudi Arabia for permission regarding any decision also adds to confining the authority of the employees within an extremely closed culture.
A situational audit is a comprehensive analysis of an organization’s current state in comparison to its micro and macro economic environment. According to Cherniss and Adler (2000, p. 97), a situational audit helps to establish the organization’s current situation in relation to its marketing objectives. In addition, a situation analysis identifies the future economic performance of the organization if it continues to use its current strategies. Nestle foods has operations in more than eighty countries globally. The organizations expansion strategy is implemented through joint venture and acquisitions. This report presents a situational audit for Nestle Foods, one of the world’s largest organizations. It explores the external, competitive, and internal market factors influencing the organization performance. Finally, it provides an analysis of the suitability of the marketing strategy used by the corporation and provides appropriate recommendations.The Internal environmentAccording to Remenyi, Money and Bannister (2007, p.128), the internal analysis of an organization helps to identify the organization’s strengths, weaknesses, opportunities, and threats. The strengths represent the competencies and resources within the organization, which help it to achieve a competitive position in the industry. Nestle foods has numerous strengths which have helped the organization to become one of the worlds largest corporations…. Management of the organization has excelled in creating an environment, which foster innovation in the company. Innovation has helped the organization to achieve internal growth through the ability to meet and surpass consumer expectations. Nestle Foods has uses a low cost strategy which helps the organization to maintain low cost for all operations. Through the low cost strategy, Nestle Foods is able to offer its consumers competitive prices for its products. In addition, Nestle foods have a highly competitive team of research and development in charge of new product development. Nestle Foods has affiliations with major learning institutions and has developed a university where most of its research and development is conducted. The research and development team has enabled Nestle Foods to differentiate its products from those of its competitors in the industry. Another strength that Nestle Foods has its health based weight-management product line. With the growing popularity of health foods in the European market and other countries, this presents a lucrative opportunity for Nestle Foods. According to Remenyi, Money and Bannister (2007, p.128), threats are factors in the business environment which may hinder the successful implementation of an organization strategies. Nestle Foods has undertaken an intensive expansion strategy by venturing in many markets in Europe and other continents. However, most markets in Europe are already saturated which may hinder the successful implementation of the Nestle Food’s expansion strategy in European markets. For example, when Nestle Foods launched its yoghurt, Yoplait, in France, it failed to acquire a large market share because Danone is the established brand of yoghurt in the country. Nestle
The target market for Next Direct in India mainly includes young age group of people from urban areas with higher middle income. In India, the domestic as well as some foreign apparel retailers are dominating and they are also offering online retailing services. Hence, it needs to reposition itself by offering comparatively lower priced brand products. The price is a key factor in Indian market and Next Direct must offer better discounts, offers though loyalty cards schemes. Moreover, Next Direct also needs to incorporate ethical marketing concepts for its Indian market by focusing on better consumer satisfaction level. Table of Contents EXECUTIVE SUMMARY 2 INTRODUCTION 4 PLC STAGE 5 TARGET MARKET 7 PRODUCT REPOSITIONING 10 PRICING STRATEGIES 12 ETHICS 13 CONCLUSION 14 RECOMMENDATION 15 REFERENCE 16 BIBLIOGRAPHY 17 INTRODUCTION Next Plc is a UK-based retail chain and it also present in the multiple countries like India, China, European countries, U.S.A. etc. It is primarily engaged in the retailing business of the apparels, accessories, home products and other electrical consumer durable products. In its domestic country, UK and in Eire it has nearly 500 stores. Besides, in International markets, it is operating with more than 180 stores (Next Plc-a, 2011). Recently, the retailer faced a steep fall in its sales revenue during financial crisis of 2007-2008. However, with the recovering economy, Next Plc’s financial statements are recovering with an increase in the sales comparing to the previous financial year. With recovering economy, the competition in the market is expected to intensify as its competitors will try to the recover their losses due to financial crisis during 2008 to 2009 (Clark, 2011). In such situation, Next Plc must try to reposition itself in the competitive market by gaining effective sustainable completive advantages. However, the recovering growth rate of UK (as per GDP real growth rate 1.6%) is much slower in comparison to other developing countries like China and India (CIA, 2011). Therefore, opportunities in these developing countries are far better than other recovering developing countries like UK and U.S.A. Next Plc can try to reposition its apparels in the Indian retail market as Indian economy is growing at a faster rate i.e. 8.3% (CIA-b, 2011). Next Plc can focus on its apparel product segments to reposition itself in Indian market. With enhancing disposable income of the Indian consumers demand for clothes and related accessories are rising (Mirdha, 2011). PLC STAGE Kasse has explained that a PLC is the period of time, consisting of phases that begins when a product is conceived and ends when the product in no longer available for use (Kasse, 2008, p.56). The clothes and apparels are generally belongs to the fashionable consumer products and fashion industry keeps changing its trends by introducing multiple product developments as per current trends. Generally, clothes can be categorized into three types i.e. fashion, fad and basic products and hence, as per three types of apparel categories, the PLC is given below. Figure 1: PLC for Apparels and Clothes (Source: Cornell University, 2006) The basic clothes and apparels are already in its declining phase and fashionable clothes are in correct trend. However, the fad clothes have the minimum life cycle as its popularity changes frequently among the youngsters. BCG matrix is a model to
For a good marketing strategy for the new products being introduced in new markets, it is essential that enterprises engage in a critical analysis of the targeted market or region (Paul 254). This is important because it helps the marketers of the product understand the market dynamics better for enhanced product positioning. As a general rule, a product is likely to sell if the conditions of the external environment are favourable for promotion purposes. The justification behind this is that for the product to be known and accepted in the market, there must be a promotion and adoption campaign. This paper identifies the Malaysian market for the purposes of introducing a portable water purifying gadget. The paper will, therefore, analyze the current situation of the foreign country in terms of the social, political, legal and environmental factors that might affect the introduction and promotion of the new product into the new market. This analysis will be conducted on a background of the various factors that may hinder the marketing campaign for the new product. To begin, it is important to identify the new product and the justifications for introducing it to the Malaysian market. The Portable Water Purifying System The portable water purifier is an innovative product developed for the purposes of ensuring that households and even travelling individuals have access to not only clean but safe water for consumption. Water is an important component of human development. However, although most people have improved access to relatively clean water in the developing and emerging economies today, there is still a problem of making sure that the water is pure and free from disease-causing germs. A sure way to eliminate this uncertainty is to have a portable ‘verification’ tool. This is the main reason why this purification gadget has been developed. With the size of a small torch, the purifier uses the ultraviolet ray technology to help purify water especially before drinking. In addition, the gadget is able to recharge using limited solar rays and therefore it is the surest way of creating purification capabilities to households and individuals even in remote areas that do not have access to other purification systems. Another advantage of the product is that it is relatively cheap and durable and hence can be used by many people regardless of their economic status. In addition, the product is user-friendly because just like a conventional torchlight, the portable purifier works with a slide switch that activates the beam of ultraviolet rays that are able to sterilize water within a couple of minutes before use. With this handheld simple but technologically inventive gadget, the safety of the user is assured. This is because it is able to eliminate the bacteria and other pathogens that may cause illness. This product is therefore suitable in areas that are continually faced with water shortage problems. It is a guarantee of an assisted elimination of illness related to water-borne diseases. It is able to purify water in a couple of minutes and therefore ideal for tourists who may not be sure of the water they have for consumption. It can also be used for relief assistance during humanitarian crises like floods to help eliminate the waterborne disease.Having reviewed the product on offer, it is important to look at the situation in the target country that may make this idea most appropriate.
The journey to success was not this easy for Toyota but still, it has been able to stand tall in the competitive market because of a variety of reasons that includes the quality of deliverables and higher emphasis on reducing the cost by reducing the inventory and best utilizing the efficiency of the workers with the help of management practices discovered at Toyota itself. Toyota has taught efficient management practices to the managers across the globe and given multiple management terms like ‘Kanban’ (based on reducing inventory by visual card system) and ‘Kaizen’ (the process of continuous improvement).At Toyota, the leadership decisions are not only taken at the top rung of organizational hierarchy but also nurtured and practised at the lowest level as well. Workers are imbibed with the feeling of seeking continuous improvement at the workplace by improving efficiency and come up with more practical solutions to improving efficiency than relying too much on the technology. The welfare of the employees is at the top of the agenda list for Toyota and employees realize this by delivering to their maximum capacity.New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn. £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of much-focused segmentation, targeting and positioning in a number of countries.In 2003 Toyota knocked its rivals Ford into third spot, to become the Worlds second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality.
Marketing Marketing McDonald’s is one of the world’s largest fast food brands that are engaged in marketing their products in several countries. Since it was founded in the USA in 1955, McDonald’s has become one of the most famous companies in the world, running thousands of fast-food restaurants in dozens of countries and touching the lives of millions of people. This is the story behind McDonald’s success (Gilbert, Sara, 2011). The company, with its exquisite variety of burgers, french-fries, ice creams and other fast food items, has been able to grasp the attention of youngsters and adults alike, forcing them to utilize their time and money to have a great and fun time at the company’s numerous outlets. This giant of a company has shaken hands with corporations in 119 countries all across the globe and does good profitable business in all of them. These countries include countries in the Middle East like Pakistan, China and towards the West in countries like Sweden and USA. The marketing mix concept is a term used to refer to the 4 marketing tools called the 4P’s, namely. Product, price, promotion and place. All four of these elements have to be played with in order the form the perfect mix for the target audience. For McDonald’s, the target customers include kids, adults, students and teenagers. McDonald’s continues to vary it’s menu of products to suit the changing demands of its customers, introducing new products over old ones to keep trending, but also taking care to notice old but popular products and not removing for the sake of the consumers that prefer that product. A low price for its products with the intention to sell more might just be dangerous and degrading for McDonald’s sales, since customers will interpret the low price as an indication of the low quality that the product might have. Due to the fact that McDonald’s caters to a spread out audience, it has to pay heed to the value that the audience places on all of its products and thus over a period of time, set prices according to these tastes. The promotions aspect of the marketing mix caters to the different methods of communicating the products that a company is producing. In order to adopt the best promotional strategies, the company in question must have valid and complete information about the advertising preferences of the variety of customers they are catering to. The better information McDonald’s has about its customers, the more effective communication strategies it can apply to promote its products. Evidently, McDonald’s uses almost every mode of advertising inclusive of radio, television, the internet and more. For the product to reach the end consumer, a company must not only hold a precise location in the form of a franchise, but it must also consider the several management processes involved in distributing the product to the consumer. McDonald’s has numerous branches in every city of every country it is established in, this helps to provide to a larger sample population of the type of customers that enjoy it’s services. McDonald’s also has a well structured delivery and takeaway system that makes it easier for its customers to utilize its services. Essential research regarding the consumers and proper marketing tactics are required by a company to sell its products effectively and gain consumer loyalty so that sales remain steady and increase overtime. McDonald’s keeps in check if it’s target audience is reducing or increasing. An important element of marketing strategies is figuring out in depth what the competition is offering. For McDonald’s competition might be coming in from KFC or Fat Burger, if this were the case, McDonald’s will have to find out what the competition might be offering that it is not in terms of product innovation. Certain factors are involved in keeping the product new and hip. Economic developments such as rising living standards, legal changes that introduce new ways of packaging, social changes that alter eating out patterns and also technological advances that encourage the use of better food producing techniques. To beat the competition and receive more consumer loyalty and possibly more consumers, McDonald’s gives adequate significance to these factors, constantly changing them to meet the needs of the customers. Since McDonald’s is operating in different countries, it sometimes has to change its marketing mix strategies to suit the customers that it gets in the different regions. For countries towards the east, like Pakistan and India, McDonald’s might have to fiddle with what they produce so that people in the countries mentioned will visit the food chain often. Indians do not like to consume much meat while the population in Pakistan might not prefer ham in their burgers, considering this, products shown on McDonald’s menu will have to be altered. Other than that, in some countries where television and radio may not be utilized so much, the promotions element of the marketing mix will have to reform to be able to promote McDonald’s products. References McDonald, D. (1900).The McDonalds. Plymouth, Ind: s.n. Gilbert, Sara. (2011).Mcdonalds. Creative Paperbacks Inc. Peck, W. H. (1867).The McDonalds. New York: Metropolitan record office.
The government needs to push and encourage companies and organization to a more competitive level, in this manner, increasing performance and eventually the overall combined benefits. Competitive Advantage and Porter’s Diamond Theory Competitive advantage is that area of expertise of a firm where it outperforms its competitors or more specifically, other nations or countries. Through researches, it has been observed that marketing plays a vital role in building up the competitive advantage of companies. The name ‘Diamond’ has been labeled due to the four factors, which the natural environment conceptualizes. According to Porter’s Diamond Theory, a country can capitalize its competitive advantage in any of the areas where it excels other countries. For instance, due to the climate and weather conditions of European countries, Starbucks is very popular among those countries but if the company intends to expand itself in South East Asian countries, then the weather conditions of South East Asia do not permit the company to expand its business in these areas. Therefore, European countries have a competitive advantage of having cold weather. Another example includes Nike. Nike chose China for manufacturing concerns due to cheap labor and overhead expenditures in lieu of European countries, where overhead expenditures and labor are much higher as compared to China. Therefore, China possesses a competitive advantage of having low labor and overhead costs than European Countries. Droge and Neven (2001) stated that it is difficult for agricultural food SMEs to become and stay competitive in this period of globalization. The paper of Droge and Neven (2001) argues that the holistic diamond model of Porter is superior in investigating the cluster dynamics. here cluster is defined as a homogenous group of firms involved in marketing the specific product in a specific location. Droge and Neven (2001) concluded that despite the fact that this model has not been tested in most of the developing countries, but those rare researches that have been conducted to validate the diamond model, affirm that the diamond model of Porter is intrinsically better.
……………………. 5.0 Distribution/channel strategy…………………………………………………………………….. 6.0 Promotional strategy………………………………………………………………………………… 7.0 Pricing strategy………………………………………………………………………………………… References EXECUTIVE SUMMARY Marks and Spencer is not doing an appropriate job of gaining target market interest in the brand and continues to cater to the older demographic. The company has built a rather old-fashioned and stuffy brand that caters to wealthy High Street consumers in the over-55 age bracket. This prevents the business from building a more contemporary brand personality that would attract younger and trendier fashion consumers. To better position the company, the business needs to utilise psychographics rather than demographic segmentation and focus less on quality and more on price and fashion-forwardness. Improvements to fashion procurement, utilisation of the Internet for online purchases, social media for promotion, and lifestyle-related advertisement will improve the brand competitiveness in this highly saturated and dynamic competitive environment. Marketing analysis: Marks and Spencer 1.0 Current market segments Marks and Spencer continues to attempt to attract younger consumer segments through the introduction of more contemporary fashion merchandise with edgy and trendy designs. The business, in an effort to appeal to the twenty something markets, recruited models Lily Cole and Lizzie Jagger to serve as celebrity endorsers that would be aspirational to the youth, female markets (Wood and Finch 2009). However, this strategy failed to rouse interest in the MS brand and clothing sales to the over-55 female segment rose by 10 percent (Wood and Finch 2009). The problem at Marks and Spencer is that the business continues to segment based on demographics. As a high street fashion business, the business maintains a premium pricing model on the majority of its fashion merchandise, thus making clothing more affordable to the older demographic. Premium fashion products are segmented just below luxury brands and therefore usually carry a higher price tag (Hameide 2011). The average age of the business’ customers are between 35 and 54 who maintain the high level of financial resources necessary to afford a high price (Ayub 2010). The brand has been defined according to the demographic characteristics and purchasing behaviours of existing consumers, affluent middle-aged women living in wealthy regions who are the major revenue producers for the company. The business, in an effort to attract desirable target markets, recruited the 1970s model Twiggy to promote a new clothing line launch. This strategy did not appeal to the younger consumer market segments and seemed to reinforce a lifestyle connection with the aging consumer target market. Joanna Lumley, from the Absolutely Fabulous craze, was also recruited to appear in and perform voiceovers for advertisements, yet another older celebrity figure which continued to appeal to the existing, greying market (Chislett 2009). Hence, by focusing on demographic segmentation in order to identify target consumers, Marks and Spencer is limiting its ability to boost revenue production by not utilising other segmentation strategies. The company continues to utilise strategic marketing strategies that are more relevant to the lifestyles and income demographics of older
A lot of companies have invested significant resources in developing the quality of customer service in their companies in order to increase customer satisfaction and increase the level of customers who become loyal to the company. Gilbert and Veloutsou (2006) acknowledge that indeed customers are the key to long term business success, profitability, and growth. In response to a business environment that is increasingly competitive, a growing number of companies are increasingly using their customer service personnel to build long term relationships with clients, with different organizations adopting IT-based strategies in order to better manage their customer relationships. The benefits of a satisfied customer are recognized widely in marketing as well as management literature (Sui-Hua Yu, 2007. Palic, Maricic, Kovac, 2011). Indeed various research has linked a positive relationship between high-quality customer service, o customer loyalty in terms of repeated purchases, cross buying behavior and reduce price sensitiveness of the consumers (Ibrahim Najjar, 2008. Oliver, 1997. Bloemer Odekerken-Schroder, 2002. Yu, Shean-Yuh, Yu-Yi, 2011). Most organizations have to deal with the issues of high-quality customer service and the impact that such services have on corporate profitability in their course of business. This research considers the relationship between these two specifically analyzing the impact that customer service decisions have on company sales and hence profitability. Company sales and profitability are in this case impacted by high customer loyalty due to their satisfaction with the quality of services that they receive. Over the past two decades, there has been an increase in customer-focused strategies towards increasing company growth. Notably in the new economics of customer service orientation, customers are the central concern of the management of any organization. In this sense, the management focuses on factors that drive profitability within the service paradigm ranging from training and development of customer service, compensation that is linked to performance, investment in customer service management systems, and investment in frontline employees (Heskett, Jones, Loveman, Sasser, Jr, Schlesinger, 2008). There has been a wide array of research that has been carried out on the connection between customer service, customer loyalty and the impact that these have on profitability within an organization. While a lot of studies have focused on fast consumer moving goods or the financial products or service (Bloemer Odekerken-Schroder, 2002. Yu, Shean-Yuh, Yu-Yi, 2011. Sui-Hua Yu, 2007. Palic, Maricic, Kovac, 2011), none has looked into the mass merchandising sector.This paper focuses on this sector by analyzing consumer shopping behavior and customer service in Beira Mar Mall, which houses a wide array of stores ranging from grocery, jewelry, clothing, shoes, toys, luxury goods to a movie theater.
Management also leads to better organization of resources, resulting in higher output and sales. Apparently, the firm will drift and eventually fail and the business cannot succeed without the much-needed management. The basic roles of management involve planning, organizing, coordinating, commanding and controlling. Management involves taking risks and requires critical decision-making regarding strategic, tactical or operation matters. Operations Management: Operations management is a branch of management which deals with supervising, designing, and redesigning business operations when producing goods and services. Its main purpose is to be as productive efficient as possible by using as little resources needed for the production of goods and services. It is responsible for being effective in meeting customer requirements. The process of converting inputs into outputs comes under operations management. (Borrington, Stimpson. 2006) Operations management helps to increase the substance of value-added activities in any process of the business. But for optimal enterprise performance, a business must co-align these value-adding activities with possible marketing opportunity. It is mainly concerned with the technical functions of a business like the development, production and manufacturing of goods and services. … It has to decide upon the best marketing mix for each and every product and make sure that this is put into effect. It will keep records of the sales of each product/service so that decisions can be made about extensions strategies or taking products off the market. A business will fail without effective marketing. The marketing managers have an important role in meeting customer requirements. Organization: Unilever. Introduction: Unilever is a giant multinational with its headquarters in London, and operating companies in many countries of the world for example Switzerland, Germany, Saudi Arabia, Pakistan and India, to name a few. It was first established in 1930 when Lever Brothers of UK and Margarine Unie of Netherlands merged. Since then it is providing consumers with the best of hygiene, personal care and nutrition products all over the world. The Marketing Department: In Unilever most of the decisions are made by the Upper Management and they make decisions regarding the marketing of their products like advertising and promotion. It has such a vast size because of the fact that it is a multinational, that organizing is probably the most critical of all functions of its management. It is important that their employees are motivated and inspired to work efficiently and make sure that all departments are working according to their goals and instructions assigned to them. All the progress has to be evaluated to increase the output and results and overcome any conflicts and problems. The role of marketing managers: The marketing manager of all Unilever companies has to perform many interpersonal roles of which, liaison is the most important. He has to act as a leader and an
With the growing importance of the lifestyle market, tourism and travel create the desired lifestyle and personal enhancement rather than many other lifestyle products. Consequently, destination marketing organizations would have to reinvent themselves to create holiday experiences in relation to the changing requirements of customers. Thesis Statement: The purpose of this paper is to investigate the extent to which responsible tour operators are changing the way we travel. The Background to Tourists’ Orientation For Responsible Tourism Nearly twenty-five years ago, Krippendorf (1987) argued for responsible tourism, using the theory of Maslow’s pyramid of needs. He predicted that there would be an increase in emancipated tourists, who once their needs for physical sustenance through sleeping, eating and drinking were fulfilled in a recreational manner, they would seek emotional recreation by undertaking activities and experiences not available to them in everyday life. Consequently, tourists would seek experiences of social contact with other people and self realization through creative activities, knowledge and exploration (Krippendorf 1999: 74). … This trend is based on the larger shift in consumer preferences towards the purchase of green products which do not adversely affect the environment in their production processes, and ethically traded products based on fair trade practices and corporate social responsibility. Recent survey evidence (King 2002) confirms changes in consumer attitudes in the context of wider market trends towards more ethical consumerism in the United Kingdom. Campaigns undertaken by Voluntary Service Overseas (VSO) and Tearfund helped to increase the orientation towards responsible and ethical tourism as a market segment. Responsible Tourism Responsible tourism involves a proactive approach by tourism industry partners to developing, marketing and managing the tourism industry in a responsible manner so as to create a competitive advantage (Pennington-Gray, Reisinger, Kim et al 2005: 266). Responsible tourism is a management strategy that includes planning, management, product development and marketing to bring about positive economic, social, cultural, and environmental effects. This type of tourism promotes responsibility to the environment through sustainable measures, as well as involving local communities in the tourism industry. Additionally, responsible tourism is focused on the safety and security of a visitor. Government agencies, employees of the tourism industry and those outside the industry, as well as members of the local communities together hold the responsibility. Besides environmental sustainability and the safety and security of visitors, other aspects include culturally responsible tourism which contributes to mutual understanding and respect
Article 5 aims to find out the methods of setting prices which are dominating Slovenian business practice. Introduction The articles deal with the pricing practices and strategies in various businesses. As stated in article 1, the businesses and consumers have perfect knowledge of the marketplace but actually they lack the perfect knowledge. This makes the establishment of a pricing policy necessary. Article 2 is based on examining pricing for new product price decisions. It is basically the study of the three pricing practices with respect to competition, costs, and customer value. Article 3 states that products have been divided into four categories such as specialty, preference, convenience, and shopping. The research in this article is basically on the pricing strategy for the various product categories. The relevant strategy was selected as per the literature of the paper that is penetration and skimming strategy. Article 4 deals with the pricing of a short license for software service. Earlier, firms in this industry used to do the pricing based on the usage of resources. As computer hardware became fast and cheap the business model remained no more significant. With the recent spread of complex enterprise software, the cost of software maintenance and deployment has increased again. Therefore, the pricing scheme had been termed as subscription pricing. Article 5 states that pricing is not the most important but is just one of the elements of marketing mix. Inspite, managers complain quite often about the problems and pressures arising due to pricing of competitors, it is stated in the article that pricing is rarely a problem. It states that pricing should be such that the perceived value of the product or service should supersede the perceived price. Importance of the study Article 1 focuses on determining whether small firms use the same established economic principles that economists rely on while explaining the behavior of large firms with regards to pricing strategies and objectives. The study basically is conducted in order to determine whether the economic principles are appropriate for small businesses or not. Article 2 is significant because it deals with the aspects of new product pricing practices. The research paper assesses the ways pricing can be done for a new product. It is important from the perspective of a manager as its becoming difficult for managers to analyze the correct price for the value they are providing to their consumers. Article 3 deals with the aspects of pricing of various product categories which could help attain the corporate objectives of the firm. It is important because pricing should be done on the use of the product. The product category such as convenience products cannot be priced higher as because of the presence of many low cost producer firms in the industry. The research is ideal for serving as a starting point for a developing a framework of corporate objectives, pricing strategies, and product categories. Article 4 is important because it is related to software pricing. The pricing strategy the researchers are focusing on is basically usage-based pricing wherein the firms will be able to acquire low usage consumers as they do not have to pay more than they use. Article 5 is important as the research is on pricing based on cost or customer. Literature Review Paper 1 In the year 2011, Dunn et.al conducted a study on
Amazon.com hit off as an online bookstore. However they soon diversified their portfolio and ventured into selling DVDS, CDs, and MP3 downloads software’s, games, electronics, food, toys, furniture and apparel. They started spreading out from United States and established bases in Canada, the United Kingdom, Germany, France, Japan and China. Amazon’s target audience: Amazon has segmented its target market on the basis of various variables. Their target market is segmented on the basis of demographic, geographic, and psychographic variables. Demographically talking, Amazon attracts customers who have constant access to the internet. In a recent survey conducted by Cyber Atlas, 55% men and 49% women amongst the internet using population admitted that Amazon.com is their favourite site for shopping. (CyberAtlas . 2001)Geographically speaking, Amazon.com is most widely used in the United States and everywhere else in the world where there is Internet access. At the moment 29 million people in 160 countries are using the site. Amazon provides its customers with an engaging and a satisfying experience on their site. This ensures that the customers return to their site. It works on building customer loyalty by enabling features like personal customization of the web page for each of its customers. Amazon’s business strategies: Amazon built its competitive edge on three core strategies. These were: 1. Cost Leadership 2. Customer differentiation 3. Focus Under its cost leadership strategy Amazon has stood out by offering rock-bottom prices. It provides good quality products at low prices. Its prices can’t be matched by its competitors. This makes it an obvious choice for customers. Under the second strategy, Amazon offers current and prospective customers differentiation via convenience. It is one of the largest e-stores at the moment. Its product assortment is huge. It capitalizes on its huge product assortment, fast and efficient delivery and efficient services. It has focused on 4 primary areas for its focus strategy. These include the 1. Product focus. 2. Customer focus 3. Technology focus 4. Distribution focus As mentioned before, Amazon has a huge product assortment. Its product assortment has always attracted customers. Technology has always been central to Amazon’s business. It is an e-commerce business, a virtual market place, where every transaction is done online. Amazon’s E-marketing Strategy: Goal and Objectives: In 2008 Amazon’s vision was defined and re-phrased to mark complete focus on customer experience. It said relently focus on customer experience by offering our customers low prices, convenience and a wide selection of merchandise. The vision was to offer the Earth’s biggest consortium of products and to be the most customer centric company. This was Amazon’s core marketing message and it communicated its online value proposition both onsite and offsite. (Chaffey) Amazon ensured that it offered lowest prices for most of the popular products that it was offering. However it also included less popular products that commanded high prices in the market. As a result it was able to squeeze margins for itself. Amazon’s primary objective was to be customer friendly and offer convenience to its customer. This was why it started offering free-shipping services soon. Another core objective at Amazon has been the fulfillment of promises and ensuring that customers are well-communicated and well-informed. Amazon did
RestaurantGoing to pubs, clubs, and bars is one of the most popular activities in the UK with almost 80 percent of the population visiting the pubs thrice a month on an average (Mbplc, 2006). The annual sale of the UK pub market was approximately £20 billion in 2005. The pub market has grown faster than the GDP. The increase in demand for eating out has concentrated in the neighborhood joints so new pubs can exploit these opportunities. The local pubs usually have low amenity standards and food offers are limited. Since this market is growing and highly competitive, quality food has to be offered, and giving the customer value for money can help drive sales.The British are rich in cash but poor on time, hence they prefer to ‘graze’ over food. Hence competition comes from fast-food centers that offer, price, convenience, and speed especially during lunch-time (IC, 2005). Competition is high while customer loyalty is low in the restaurant sector. Competitive edge can be derived from the service and the atmosphere. The interiors have to be tastefully planned. Thus it is important that SMEs develop originality as well as maintain a high level of personal service to cope with ever-changing market trends and larger (corporate) competitors’ e.g. Chains of bars such as Wagamamas etc.Since inception, the turnover at Zen has increased gradually, but has yet to reach the levels forecast in the business plans. It requires effective strategy and marketing techniques to survive. Zen faces various issues including market changes and shifting consumer tastes. Market research is essential as it may allow Zen to anticipate market trends rather than just react to them.Zen has a number of direct rivals within the area, with whom it competes for the market share. These include one pub, 3 CIU Clubs (Working Men’s Club and Institute Union), and one Chinesetakeaway outlet.
The company can build sustainable operations by investing in corporate social responsibility. Therefore investing in corporate social responsibility is fundamental to developing a global reputation. This is demonstrated by multinational corporations such as Johnson Johnson and Starbucks. They have invested in different programmes of corporate social responsibility and thus have been able to face the recent financial crisis more effectively than competitors. The objective of developing a global reputation cannot be attained unless the multinational corporation is able to offer products and services which promote social and environmental standards. By enforcing social and environmental standards, a multinational corporation invests in corporate social responsibility which leads to a global reputation. Introduction Globalization leads to increased international trade through the reduction of tariffs. Increased international trade creates global companies which can be defined as those companies which possess production/marketing operations in more than one country. One of the key success factors for global companies is corporate social responsibility, defined as taking into account the impacts of business operations on the society and the environment in addition to the traditional measurement of the company’s profits. This creates an operational framework in which global companies have to take local concerns into consideration. By conducting operations in a manner which takes into consideration their social and environmental impacts, a global company is able to build a good reputation globally. The objective of this paper is to explore how corporate social responsibility enables a multinational corporation to develop a global reputation. Analysis of key issues Globalization increases the volume of international trade by reducing the national barriers to trade such as tariffs and subsidies. This leads to the creation of a multinational corporation which can conduct production and marketing operations in more than one international market. An example of globalization is China’s entry into the World Trade Organization enabling western companies to set up operations in the fast growing Chinese economy. However the Chinese market is still regulated by the government and there is a considerable level of regional fragmentation in the government regulations. Therefore it is essential for foreign organizations to develop a good reputation in the Chinese market so as to create a good image in the local communities. This is one of the key success factors given the rising level of competitive rivalry as the Chinese market has been liberalized enabling foreign companies to set up their operations in the fast growing market. As a result companies need to develop programs of corporate social responsibility to develop a competitive advantage by developing a global reputation. Global companies can implement programs of corporate social responsibility by taking into account the triple bottom line (McConnell Brue, 2007). First the global company has to take into consideration the costs of managing people when it comes to transferring operations to a foreign market. This focus enables the management to conduct operations in a socially responsible manner so that employee satisfaction is maximized. Second, the company has to take into consideration the environmental costs of global operations. This means that the management takes into account the impact of its operations on the planet. Third, the company takes into account the traditional measurement of profits. Therefore the triple bottom line consists of people, planet and profit, also known as the three P’s. By conducting its global operations according to the triple bottom
One must take into consideration that the current company is owned outright by Filmyard Holdings LLC since 2010. This acquisition made Mike Lang, the former News Corp executive the current CEO of the company. In regards to what skills are necessary to lead this company is a complex issue. The major role of Miramax films is to produce films that other major studios may neglect simply because these major studies do not have the necessary resources to adequately promote and distribute these films. In order to ensure the skills that are necessary for this function, effective leaders must be able to understand the current market demand for speciality films and be able to gauge what financial resources are required to effectively market these films. The way that Miramax films makes money is primarily to purchase the distribution rights for films that other companies have neglected. So from this perspective the mechanism for making money is to purchase the rights to these films as inexpensively as possible. After this point, the films are marketed through popular media channels (Television radio, print etc). Revenue is generated through a portion of ticket sales in major cinema chains, DVD Blu-Ray rights, DVD Blu-Ray sales, merchandise sales and a portion of box office returns. Effectively, if the financial returns outweigh the factor costs of marketing these films as well as the purchase costs of these films than the company will have effectively recognized positive financial returns. However, an interesting point to be considered is the fact that many films represent a significant financial loss for the company, for example the film Albino Alligator directed by Kevin Spacey which Miramax films distributed. The film received more or less negative reviews and was a huge financial failure. However in the same year the company released the film Good Will Hunting which could be considered a commercial and artistic success. One other major source of revenue for the organization is to produce films. In this process, the organization puts their financial backing, film experience as well as understanding of the film industry behind projects that they consider will be an ultimate commercial and artistic success. After these films are created the company then proceeds with its traditional distribution channel. The company sells their products to major movie cinemas for first run movies. Alternate sources of revenue comes from film merchandise in which major product retailers would be a prime client. Finally DVD/Blu-Ray sales are usually conducted through intermediaries such as electronics retailers and video rental outlets. The ultimate consumers of Miramax’s products would be movie fans that have an appreciation for non-blockbuster style movies. In essence any major film domestic or international distribution company could be considered a competitor. Although it is the case that Miramax focuses on films that are neglected by other companies, Miramax has not pigeonholed themselves into a specific genre. In the domestic market IFC Films, and Lionsgate films would be considered as operating in the same markets as Miramax. The competitive differentiators for the company are fairly broad considering the industry that they operate in. Part of the whole marketing proposition of the company is that they lend support to films that they believe have an artistic significance.
Every business organization requires growth for its sustainability, profitability retention and increase in the market share. Growth strategies need to be constantly formulated for the retention of the organization in the existing market and also for its survival. The author of the study will deal with the various facets of growth strategies, which affect the survival of the business enterprises. It will deal specifically with the growth strategies to be recommended for Davivienda bank, which is one of the most esteemed banks of Colombo. The study will also highlight the various alternative growth strategies that have the potentiality of generating huge amount of revenue and also maintain its goodwill in the banking industry. Finally, the studies will conclude with recommendations, which provide the bank an opportunity to expand on a large scale without having to implement time consuming and expensive methods. Overview of Davivienda Bank Being one of the most esteemed and well established banks of Colombo, Davivienda has been able to create a niche for itself in the banking industry and also gain the trust of the customers at the same moment (Davivienda, 2013a). Davivienda is a Colombian bank, which was established in the year 1972 and is known for providing credit to the individuals, organization and also in the rural sector (Davivienda, 2013b). It is regarded as a mortgage and saving banks, which has diversified its business of credit card portfolio and also retail banking services (Davivienda, 2013c). The essence of the bank is that, it provides banking services to the rural sectors and to various other corporate organizations for the betterment of the entire society. Presently, it has more than 21 percent of markets share in the banking industry in the credit card portfolio section. It is also regarded as the third largest financial institutions in Colombia itself. Alternative Growth Strategies its Significance for Davivienda Bank The decline in the sudden growth rates of the varied banking organizations in Colombo has had a dampening effect on the Colombian economy and also on the neighboring countries. The sudden decline in the growth rate of the Columbian banks has led to decline in the export –import growth rates also simultaneously. Therefore, growth strategies have become essential for the implementation and expansion of the banks on a large scale and offering tailor made financial products for each of the crisis and situations (Perkowski, 2007).The sales of financial products have been declining worldwide because of the sudden economic slowdown, which has made the customers cautious about investing and dealing in securitization, mortgage portfolio etc. To combat the ill effects of the economic slowdown, Davivienda banks need to adopt certain marketing strategies, which had been instrumental for the growth of other banking institutions. Firstly, the need of the growth strategies needs to be identified with the current situational analysis of the internal and external environment (Mills, 2001). After the assessment of the external and internal environmental analysis, the various forms and needs of the alternative growth strategies of the banks need to be identified and evaluated (Rice
Talented designers, nowadays, unlike their counterparts from before, can no longer merely rely on their talent. In fact, they are forced to share profits such as the Gucci Group and the LVMH in order to increase their sales through marketing. Without a doubt, the luxury fashion industry makes use of clever marketing strategies in order to keep the brand alive.It is then in relation to this that this research seeks to look into the concept of clever marketing and how this posed implications to the industry. Furthermore, this paper also examines the said strategies and how these affect the companies. In order to achieve this then, the researcher employs the questionnaire method in order to gain the perceptions of the members of Gucci, LVMH, and Richemont with regard to clever marketing and how these affect them. aLuxury, style, and elegance have traditionally been associated with the French way of life. In fact, the first so-called ‘grands against’ were found in their capital and these were associated with values of sensuality, luxury, innovation and premium service. Added to this was the manner by which the architecture conveyed senses of majesty and power thereby defining the shopping experience for the wealthy consumers. Hence, fashion becomes more than just a matter of clothes and accessories. Rather, it has been of vital importance and influence that structures the culture, identity, and lifestyle of a certain society, Okonkwo. Central then to this luxurious shopping experience is coveted products that are authentic, exudes quality and craftsmanship, and most importantly, demonstrate exclusivity.
…..….7 5.4 Description of Current Target Methods and targets…………………………..………….9 5.5 The Entrepreneurial View………………………………………………………………..10 6.0 Opportunity Recognition.……………………………………………..………………..11 6.1 Main Ideas to improve the organization’s growth……………………………………..11 7.0 Proposal Product/Service Details……………………………………………………….12 8.0 Capacity and Resources…………………………………………………………………12 9.0 Marketing………………………………………………………………………………..13 10.0 Growth………………………………………………………………………………….13 12.0 SWOT Analysis…………………………………………………………………………20 11.0 Implementation…………………………………………………………………………21 12.0 Ref… .……………………….23 15.0 Referencing……………………………………………………………………………..24 16.0 Appendix………………………………………………………………………………..25 3.0 Mission Statement To widen the enjoyment of our waterways today whilst protecting them for future generations 4.0 Executive Summary This proposal outlines the reasons why Canal and River Trust, a charitable organization in charge of waterways in England and Wales deserve financial consideration in its quest to diversify its sources of income. The trust is by far one of the organizations that have made the most positive impact on the society. It has enabled generations born 200 years after industrial revolution to see the works of two centuries back (Burns, 53). Contributions of this trust are priceless, and no formation of words can express how much the appreciation it deserves. Other than this tremendous involvement in upholding national heritage, the trust has an impressive foundation for financial management. Other than providing services that are core to the society, the trust has in its strategy a viable business plan that is sure to bring back the capital base within the shortest time possible. 5.0 Introduction 5.1 History of Canal and River Trust Canal and River Trust are proud guardians of historic rivers and canals. The trust also protects aqueducts, bridges and several other heritage structures constructed along the rivers and canals. It explains the reasons behind the building of canals and why there is need to preserve them. (Beaver, 85) Canal and River Trust was created as a charitable trust and endowed the authority to care for the waterways of Wales and England. The management of
Figure 1: Predicted Mall Distribution Space in Spain The product will be distributed through a long distribution channel whereby several middlemen will link the retailer with producers of different commodities. Although this kind of distribution channel may raise the price that the consumers will pay for the products, it will be essential to use it because the supermarkets will deal with a multiple of products and hence may not get time to deal with all the logistics of individual commodities – this role will be left for the suppliers. All in all, the market is concentrated in the hands of few, and it is these domineering stores Coles is expected to compete with, which means that the competition will be quite stiff. The right media will be chosen to ensure the marketing plan is successful. Therefore, the communication channels will be based on their ability to convey the right message to the target audience in the most effective means. Coles will develop communication channels largely through direct mail, television, radio, as well as the internet. These channels will be used to show consumers how they will benefit by shopping from Coles supermarkets. The products that will be sold by Coles will also act as a channel of communication with the consumers. The Supermarket stores will serve as sources of instant information regarding the sales, available products, location of in-store products and methods of getting out-of-stock items. Generally, the supermarket will exploit channels such as addressable media, interactive media, and mass media. Coles will apply pull strategy, which involves the customers dynamically looking for the company’s products while the retailers requesting for goods in response to direct consumer demand. This strategy will require Coles to establish a strong brand in Spain, which will be achieved through mass media promotions among other strategies of similar nature. In this view, when the supermarket identifies a certain product that the consumers require, the management will ensure it is stocked – this means that the supermarket will be charged with the responsibility of creating the demand while the supply channels will ensure that this demand is met. Coles will adopt a competition-based pricing strategy, whereby the setting of prices will be based on what the rival supermarket are charging (Cannon and Morgan 19). Business Review Coles supermarkets have operated for more than 90 years in Australia. The company has very rich history of Australia especially because it was founded by the founders of Australia’s retail industry. Coles founder, George Coles, after studying best practices in retailing from the US went back to Australia in 1914 and opened stores in Melbourne, Collingwood and Smith Street. The company opened its first supermarket in 1960 in North Balwyn, Victoria. By 1973, Coles had managed to open stores in all the capital cities of Australia (Armstrong and Kotler 56). BI-LO is a chain of supermarket owned by Wesfarmers, which was previously known as Coles Group. BI-LO changed name to Coles Supermarkets during 2006 and 2007 when they attained 180 chains of stores. Following a poor performance of stores which had been converted
The President of Jones Blair Company, Alexander Barrett and his team of senior executives are currently reflecting on the best course of action to decide where and how to deploy corporate marketing efforts among the various architectural paint coatings markets served by the company in the southwestern United States. Characteristics of the Architectural Paint Coatings Industry The architectural paint coatings industry parallel the trend of the U.S. paints industry manifesting maturity in growth level, with only one to two percent growth rate per annum. The demand is reported to be affected by: (1) competition from alternative materials and (2) development of high quality products that require lesser paint applications. There are decreasing numbers of paint companies, currently totaling 600, with a two to three percent declining rate. Opportunities are seen in the do-it-yourself segment by household consumers for paint sundries. There is a trend for merger and acquisition especially for large paint companies seeking growth and a higher sales base to support increasing costs (Case Facts: Consolidation, n.d., 1). … par. 1). Segmentation for Jones Blair’s Market Area VARIABLE SPECIFIC DETAILS Geographic Region 50 counties in Texas, Oklahoma, New Mexico, and Louisiana from its plant and headquarters in Dallas, Texas. Eleven county Dallas–Fort Worth (DFW) metropolitan area Density DFW, metropolitan, and non DFW, rural areas Demographic Occupation Professional painters, contractors, household consumers (do-it-yourself painters) Distribution Independent specialty stores, lumberyards, hardware Purchase per annum Less than $25,000, $25000 – $50,000, $50,000 above Behavioristic Purchase type Interior paints, exterior paints, lacquer, other applications Buying preference High quality, known brand, Promotional efforts Sales representatives, cooperative advertising for retail accounts, newspaper advertising and catalogs, in store displays, outdoor signs, regional magazines Segments Representing Opportunities for Jones Blair Brand The segments representing opportunities for Jones Blair brand are the non DFW areas where total dollar sales potentials are increasing as shown in Exhibit 3. It could be noted there that DFW sales had been declining since 1995 to 1999. Likewise, retail accounts for non DFA also show that 60% is contributed by that sector. Jones Blair Competitive Position The competitive position of Jones Blair is in brand awareness when compared to local brands. It should be noted that Jones Blair is considered a regional paint manufacturer that should emphasize strengths in knowledge and expertise in paint formulation depending on climatic needs. Despite its high price, the image perceived by customers is high quality and appropriately distributed and
The organization can achieve the goals by monitoring the stakeholders’ reactions towards the organization’s activities using their views on the social media. Other organization’s goals encompass validation of new products and services using the social media as a research base and generation of registrations to the organization’s events through the media. Given the organization’s marketing strategies, the activities that make sense include increasing awareness of the strengths of the company’s products and providing accurate information about the business. Other activities entail reacting to the consumers’ messages and questions within the shortest period. Additionally, an important activity entails aligning the media activities with the organization’s goals. This is achievable through the effective online status management. Social Media Status The company has successfully engaged in several social activities. Some of the activities entail responding to the customers’ questions and selling some products through the social media. These activities have been successful because customers’ views illustrate their level of satisfaction with responses. Additionally, the company has managed to sell several products online. Moreover, the company has been successful in attracting large numbers of clients. However, it has not been successful in increasing their engagement. The organization used some metrics to measure the success of the social media. The social media successes need to be identified by clear measurable goals. The organization has measured its goal of reaching many clients by using the total reach. By using this, the organization acknowledged the value added to the social space. The total reach was large. This implies that the organization was able to attract many clients. Additionally, the organization measured its success through the social customer relationship management (CRM) tool. This, too, was helpful in showing the number of people using the organization’s social page and the level of engagement on the page. This measurement is vital in determining whether the organization’s value is increasing through its social strategy. The social CRM tool used is the Sprout Social, which combined the organization’s activities into a single activity. This enabled the organization to know if its strategy is moving towards the expected direction. Through this metric, the organization’s goal was partly achieved because it had managed to attract a large community. However, it had partly failed because the level of engagement was very low. Furthermore, the organization used the Conversation Share to determine the position of the organization in the social media as far as competition is concerned. This is done through measuring the amount of conversation about organization’s products in comparison with the number of conversations about the rivals’ products. This metric showed that the organization was successful in acquiring a large market share, although not like some of its competitors. Consequently, the organization needs to upgrade its systems in order to reach very high levels of conversation share like its competitors (Lauby 1). Social Activities The first step of the social medi
INTRODUCTION Corporate Governance is nothing but a system of maintaining proper checks on the activities of an organization. These systems make sure that the firm acts responsibly and meets the aims and objectives of its stakeholders. The checks and balances that are focused in corporate governance are both internal and external. They apply to all facets of an organization. For example, they apply to finance, sales, marketing and technical operations of an organization. They are also used for external industry assessment to make sure that the organization’s practices are in line with the practices of firms engaged in the same business and following a similar business model. There has been increased emphasis on corporate governance after the fall of Enron and Arthur Anderson. These organizations were looking very profitable, but as it turned out the foundations of these organizations were so weak, that they fell in a matter of few months. Corporate governance is used to detect that there are no errors in the financial reports of an organization and it is reflecting its true picture. Corporate governance practices ask for reducing family control from business and reducing the CEO’s duality. All of these measures prevent the organization from false reports regarding its financial position and performance. 2-THEORY AND LITERATURE REVIEW: 1-Agrawal and Knoeber’s (1996) study This study tried to find out the correlation between the financial performance of a firm and number of independent directors. There were varying results obtained from the research. The study showed that there is no link between the financial performance of the firm and number of independent directors. Later when the theory was further elaborated it was found that there is no link between the performance of the firm and board composition. The result why dependent directors are better the independent directors is because they will have same aspirations as other shareholders and this will be reflected in the firm’s policies. 2. Goyal and Park (2002) study This study focused CEO’s turnover in an organization and came to a conclusion that in combined organizations CEO turnover is less when there are combined positions then when there are separate positions. In case where the positions are separate there is a 5.3% chance that the CEO will leave the organization if the stock’s performance declines. However, in a combined position, the chance of CEO leaving the organization goes down to only 2.5%. The study further elaborates that there is no chance the combined leadership structure of a firm will lead to poorer performance than a structure where leadership positions are separated. 3- Ownership Structure and Firm Performance There have been negating studies done on this issue. One study actually proves that there is link between the ownership structure and firm performance. The results of the study stated that as ownership structure increases there are chances of firm’s success because the organizational will be dealt by professional people who will try to meet shareholder’s interests as a priority. As a result, the firm’s performance is going to increase. In another study, it was found out that ownership structure can be a negative factor in firm’s performance. Because as a firm grows, management and employees ask for more lucrative packages and compensation which results in low profitability of the organization and hence the firm’s value declines as a firm grows in size. 3. Research Methodology 3.2. Data measurement 1- Board of directors Board of Directors is an important factor of the study. Board of Directors is dependent on the size of the board, executive director and CEO duality. Executive director is the dummy variable in the research. The size of the board will be represented by a number digit to find out the ideal size for the board. CEO duality will take variable 1 or 0. 1 will mean that CEO and Chairman are same, 0 will mean that CEO and Chairman are different people. 2- Research method The research is going to describe the relationship between the firm’s performance and the composition of the board. The dependent variable is Tobin’s Q. The independent variables are size of the boards, CEO duality and executive directors. This will be a regression test with outcomes being a1, a2, a3, a4. The second model in the research will try to define the links between the ownership structure and firm’s performance. Just like in the previous model, the dependent variable will be the firm’s performance represented by Tobin’s Q. The independent variables in the model will be represented by z1, z2, z3, z4. Z1 will represent institutional ownership. Z2 will represent government ownership and z3 will represent the shareholder’s holding more than 5% of the firm’s stock. The outcomes of the regression will be coefficients b1, b2 and b3. The last model will link corporate governance to the firm’s performance. The board of director’s variables will be represented by c1, c2, c3, c4. The ownership variables will be represented by c5, c6, c7 and c8. Alphabet m will represent the controlling variable of leverage, n will also be a controlling variable representing the firm’s assets base. Both control variables will be added to the model to give it a better picture.
The elevating scale and market share accounts for the rising power. This is a vivid indication that hard sell will be a marketing strategy for the monopoly. However, the British regime has recommendable strategies and mechanisms to face this trend. Diverse concepts and theories are evident in the strategies and ideologies by Terry. These theories explain the development and ultimate implications of the Terry ideologies within the firm. Terry Leahy’s ideologies and perspectives were reflected in the report from the BBC. He was the C.E.O of Tesco, a position he is proud of. Since teenage, he served at this retailing outlet and developed gradually towards the top position (BBC, p1. 2013). His zeal, competence, and commitment elevated him towards the top position of the organization. Tesco is a top retailer within the British territory. Reporting to the BBC, Terry did not have a positive perspective towards the small shops in Britain. He viewed their closure as a key source of growth and progress to the large retailers. According to him, a majority of the society prefer to shop in the large retailers (BBC, p1. 2013). They would prefer supermarkets to the small shops. He defined some streets as backward due to the existence of the small investments. However, his deputy Michael Weedon had a different perspective. He viewed the small shops as advantageous rather than disadvantageous. According to Weedon, closure of large chains would enhance cheap availability of retail premises. The ideologies of this case have great affiliation to several concepts and theories. Business ethics and conflict theory are key attributes that affiliate to this case. Ethics involve a moral code of conduct in business. In this case, businesses ought to observe its impact to the internal and external environment (Peterson, p3. 2005). The Chief executive Officer can represent the interests and stands of the organization to the immediate society. Therefore, the organization ought to observe and maintain a positive impact to its environs. Humanity ought to be a key observation in the business policies and ideologies (Henn, p167. 2009). This has a direct appeal to the immediate society. It could therefore be a strategy to win more popularity and clientele from the immediate society. Terry Leahy represented the stand of the Tesco fraternity during his report in the BBC. His report had an implication of negativity within the small shops. It was a direct advocacy of small shops closure within Britain. This declaration has an affiliation with the concept of business ethics. Ethics require and advocate for equal rights in business (Crane, p28. 2007). In this case, business should not purely focus on profitability. It has an obligation to defend the rights of other individuals and external investments. Ethics also enhance an adjusted protection of its image. External parties should view the organization as a center of humanity and integrity. In his presentation, Terry Leahy impaired the image of the organization significantly. His perspective did not consider the minority group of the Britain society. The entire Britain society engrossed 95% of the populace preferring the supermarkets (BBC, p1. 2013). This was the larger group in Terry’s presentation. According to him, this figure preferred to shop in top retailers. Terry still outlined a 5% of the population that highly preferred to shop
The conclusion highlights the lack of reliable policies and a marketing mix is proposed.The marketing field is slowly diversifying with the introduction of the new environment marketing or more popularly known as green marketing. Consumers and producers are becoming more sensitive to the environment and are thus creating more ‘environmentally friendly’ products. Businesses are now modifying themselves to accommodate this new phenomenon. Environmental management systems and waste minimization are now being paid more attention to. Journals such as Business Strategy and the Environment and Greener Management International and other reports are being created to support a more ‘green environment’. Marketing itself is undergoing a new process of evolution. Yet what is green marketing? No standard definition exists that explains this new trend.The American Marketing Association (AMA), in their first workshop on ‘ecological marketing’ held in 1975, defined ecological marketing (which has now evolved into green marketing) as the study of the positive and negative aspects of marketing activities on pollution, energy depletion, and non-energy resource depletion.1 This definition is highly sub-divisional and examines both the process of marketing and the environment as interdependent variables and examines their joint effort and its positive and negative consequences upon society in general. However today, this definition proposed, may be deemed inadequate or insufficient. Whilst green marketing may be the age-old ecological marketing which was first discussed in 1975, over the years this process has undergone noticeable changes.The general lack of consistency in a standard definition of green marketing has led to ambiguity in research. Researchers are unsure of what all may or may not be inclusive in the subject they are researching on. Many individuals and firms have offered their definitions to simplify ‘greenenvironment’.
American had a ‘second war for independence’ with British government. The government rigorously sustained its efforts in integrating the federal states and has sustained its economic expansionism in many of its politically controlled nations in eastern part, in Asia and in Hawaii (Norton Katzman, 2011). The Great awakening assuaged the removal of slavery and paved toward the recognition of women as partners for economic development. Reconstruction era further bolstered the removal of discrimination and paved the way to naturalization of citizens. The 19th century featured United States as an imperial nation which subjugated Philippines, Puerto Rico and Guam in a Treaty of Paris. Industrialization and progressive movements as the west accumulated wealth through import and export policies. The nation upholds the primacy of education to develop skilled and intellectual labor forces. Capitalism became its dominant economic philosophy while government focused on mining, agriculture, telecommunication development and global marketing. It further gained power as its financial institution gained more control over nations who availed financial supports and loans at the height of economic depression (Norton Katzman, 2011. Kinzer, 2011). The west gained the image as the first nation, global power and economic authority thru globalization. It wielded military power in World War I and considered communism as a Red Scare, a threat to American idealism, during the World War II. In this war, with allied nations, America supported partners with resources, food, petroleum and technology (Norton Katzman, 2011. Kinzer, 2011). In 1920s, America suffered Great Depression which resulted to deflation and increase of unemployment rate. They were however able to restore the system by regulating and reforming the banking system, stock market and its economy. The nation vigorously sustained its geographic presence in many nations either by the deployment of its military forces in strategic regions, or by economic relations thru trade and offshore marketing, by gaining over nautical highways, and import-export relations using treaties and agreements (Tuveson, 1980). The mid part of the 19th century was considered as the cold war period where US and Russia gained the reputation of storing weapons of mass destructions. The era also showed partnership of US and Britain in their interest in West Germany, thus the creation of the North Atlantic Treaty Organization (NATO) in 1949. Many decades, thereafter, US waged its anti-terrorism campaign against al-Qaeda network through allied nations. War in Iraq and Afghanistan ensued until the arrest and death of Osama Bin Laden, head of terrorist organization, in Pakistan recently. While America is admittedly dependent on oil from Middle East countries, but eastern nations, most of which are member states of OPEC, have difficulty in adapting the intellectual, technological, economic, and
FYI my last question you answeredRunning head: CORPORATE BRANDING CORPORATE BRANDING
SUBMISSION DATE: CORPORATE BRANDING 2 As a way of remaining competitive in…Marketing
;EXPERT IN MLA, HARVARD, CHICAGO, APA
CONCEPT PAPERS, PROJECTS, PROPOSALS ampamp THESIS
Hello dear student,
Am already on your assignment but it needs careful…Marketing
I do not want to copy and paste with those answers. If you find those
Attitudes are expressions of favor or disfavor for a person or an object. Ego-defensive is a form
of an attitude. It forms so as one cannot get hurt by certain situation in their life. It is…Marketing
Running head: INTERNATIONAL MARKETING 1 International Marketing
Institution Running head: INTERNATIONAL MARKETING 2 Introduction
International marketing may be described as the use…Business
I only need a report on
Running head: UBER EATS IN SINGAPORE 1 Uber Eats in Singapore
Institution UBER EATS IN SINGAPORE 2 Introduction
Uber Eats is a new blueprint food delivery platform that makes getting great…Marketing
WIKO SLIDE 2
The product chosen for this assignment is the Wiko slide 2 phone. This is a budget phone that
is designed in France and assembled in China. The phone has a screen of 5.5 inches,…Marketing
Marketing MyopiaTitle of the paper: Marketing Myopia Essay
Date submitted: Introduction
The marketing concept is the theory that organizations ought to break down the…Business
Running head: FIVE STAR BEAR 1 Five Star Bear
September 7, 2016 FIVE STAR BEAR 2
Five Star Bear It was additionally the time that ASIMCO found Five Star Beer had an…Marketing
Running head: CASE 10.2: THE COPY CORPORATION Case 10.2: The Copy Corporation
Date 1 CASE 10.2: THE COPY CORPORATION 2 Case 10.2: The Copy Corporation
olgtltligtDo you think the AMA’s code of ethics would be violated if marketers compiled a mailing list
olliDo you think the AMA’s code of ethics would be violated if marketers compiled a mailing list
from information provided on warranty and product registration cards and then used the list to send customers new-product information? Why or why not? Does your opinion change if the company also sends people on the list special discount offers and private sale notices?/li/ol
Running Head: MARKETING PLAN COMPONENTS Marketing Plan Components
: MARKETING PLAN COMPONENTS 2 Marketing Plan Components
Section 2: Company Description…Marketing
Hello I would like to know what can be put at the end of each sentence of this short paragraph. Thanks
Samsung MU6500 contains most the features you really need without going overhead in order to keep the price very compelling. It has a curved screen with a black frame for those that want the immersive experience that curved screens offer value is the name of the game with this model. This is an example of
Within the Johnson and Johnson’s consumer products line, it has baby care, skin $ hair scare, wounds topicals, oral health care, women’s health, over -the-counter medicines, nutritionals, and visual care. This is an example of Johnson and Johnson having a many …
By monitoring their marketing environment, firms can determine how such factors influence consumers and how they should respond to them. Marketing opportunities exist for firms that can ….
One of the major trends in product sampling is selective sampling of targeted groups. Assume you work for a
company that has just developed an energy bar that tastes almost as good as other energy bars, but has far fewer calories. Marketing research has identified the target market as economically upscale consumers, ages primarily 25 to 54, who reside in suburban and urban areas. Explain specifically how you might selectively sample your new product to approximately two million such consumers.
barriers to entry factors. The factors can be
One of the forces in Porter’s Five Forces model is threat to entry; barriers to entry factors. The factors can be
given as follows:
- Economies of scale
- Product differentiation (brand equity)
- Capital requirements
- Cost advantages of independent size
- Access to distribution channels
- Government regulations
Explain each of them separately in detail and argue how they can be barriers for new entrants.
span style=color:#000000gt list the major macro-environmental factors discussed in the textbook
span style=color:#000000; list the major macro-environmental factors discussed in the textbook
and slides./spanspan style=color:#000000; Select one of those factors, provide an example of your own, and explain how it can influence the marketing process? /spanspan style=color:#000000;span class=ql-cursor/span As a marketer, how do you deal with such a macro-environmental factor in order to protect your firm, use the existing opportunities and avoid potential threats?/span
Chapter 7 Business Markets and Business Buyer Behavior 1. … Bartholomew Pharmacies sell certain
prescription drugs that are not affected much by price changes, especially in the short run. We say these products have what type of demand? 8.
a) What are the price point ranges for each product type that Amazon offers. How would you
visualize it with a table or chart to summarize the products and the price points. It could be bronze, silver, gold or small, medium, and large etc for different product types coffee, tea, brownies etc or TV’s, phones etc.
b) Is Amazon’s strategy penetration pricing or skimming?
c) Have Amazon segmented the market by price or some other segmentation approach?
how does one do an the following analysis, i need it for a Marketing Strategy
- Competitive Analysis
I need help to understand the concept of what it means to an analysis on them. Please
Which of these marketing responsibilities can marketing research help with?
strategically selecting segments to target
setting pricing to be consistent with marketing strategy
managing relationships with suppliers
creating Internet banner ads that pull customers to our Web site
When developing your digital and direct marketing plan, you calculated the necessary appropriation (also called a
budget) using the objective-and-task approach. Specifically, you determined the objectives for your digital and direct marketing plan, you identified the tasks necessary to accomplish the objectives, and you calculated the costs of those tasks. Unfortunately, this resulted in a figure that is grossly more than the firm can afford to spend in the coming year and there is no way the money can be obtained. Given that your budget is so out of line with current resources, what do you do?
You are appointed marketing manager of a company selling consumer goods. The CEO of the Company wants to start an
e-commerce section in his business. he asks you to:
a) Define E-commerce
b) Discuss the factors that he needs to consider when entering the e-commerce environment.
Once a marketing plan has been approved, who in the organisation needs to receive a copy of the plan? How will you
distribute the plan? Reference your own organisation or an organisation you are familiar with in your answer.
Review Moosejaw Company Site
Read the article below to help you understand the questions I
need help with: by Alley White Daily Staff Reporter
Published November 18, 2009
Moosejaw Mountaineering, a Michigan institution known for its outdoor recreation apparel and gear, prides itself on its unpredictable and goofy promotions. Past catalog themes include food fights and bad family photos.
Some say its most recent catalog, however, may have gone too far.
The company has received a flood of negative feedback for its jail-themed Winter 2009 promotional campaign that appears to have offended customers and community members alike.
The winter catalog features models in Moosejaw merchandise posing behind bars and in other jail settings, including a page titled Letters to the Warden with letters from invented prisoners.
While the catalogs will be available starting today, much of the recent objection stems from an e-mail sent earlier this month to Moosejaw’s subscriber list.
Like the catalog images, the e-mail promotion features a model behind bars in a Moosejaw T-shirt, but also advertises a free Moosejaw Jail Activity Book that includes design your own prison tattoos and a don’t get shanked in the shower fun maze.
University alum Emily Harris wrote in a Nov. 9 post on the Moosejaw Facebook fan page that she found the campaign extremely offensive. Since that post, the fan page has become a soapbox for critics and defenders of the campaign alike — though the defenders are far outnumbered.
In an e-mail interview, Moosejaw Creative Director Gary Wohlfeill said the catalog was not intended to offend anyone.
Like all of our campaigns, our goal with Jail was to show our customers something unexpected and wacky and not take ourselves too seriously, he wrote. The idea behind this particular campaign was to parody the glamorization of crime and prison by pushing it to its completely illogical conclusion.
Wacky or not, many have expressed outrage at what they perceive as an insensitive and uneducated treatment of prison and incarceration.
Prison and jail is not a funny thing, said Penny Ryder, director of the American Friends Service Committee’s criminal justice program.
Ryder said she contacted Wohlfeill via e-mail to express her disdain after the promotion was forwarded to her. In his response, Wohlfeill wrote that offending people was certainly not our intent, nor would we want to capitalize on the suffering of another human being.
Ryder responded, suggesting to Wohlfeill that rather than portray prison in a satirical light, Moosejaw should consider hiring released citizens — formerly incarcerated individuals — to staff its warehouses. Wohlfeill replied that he would see what opportunities we may have to offer.
One of the main issues of people going back to prison is because they don’t get work, Ryder said in her interview with the Daily.
University alum Amit Weitzer, who works as a consultant and organizer for the Michigan Campaign for Justice, wrote in an e-mail interview that while the ad campaign would undoubtedly be offensive anywhere, it is particularly so in a state like Michigan where there are nearly 50,000 people incarcerated.
A 2008 Department of Corrections report listed the number of prisoners in the state at 48,686.
Both Weitzer and Mary Heinen, coordinator of community and youth programs with the University’s Prison Creative Arts Project, said that as a Michigan-based company — its headquarters are in Madison Heights — Moosejaw should be more in tune with the region’s concerns.
Heinen said she was particularly offended by the portrayal of female prisoners in the promotional materials, especially in light of a class action lawsuit against the Michigan Department of Corrections that resulted in an estimated $50 million payout last summer to 18 women who claimed to have been sexually assaulted by prison guards.
She said that in the photograph from the e-mail advertisement, a young, attractive woman wearing a tight T-shirt and hanging on to the bars of a cell had a come in and get me kind of expression.
It has a very sexualized vision, she said. The ad perpetuates the stereotype of the sexualization of women prisoners as something that they want, something they desire, when in fact it’s sexual assault.
University students involved with the Prison Creative Arts Project have made their opposition to the campaign known by posting on Moosejaw’s Facebook page, sending e-mails, making phone calls to the stores and forwarding a petition in the form of a letter to Harvey Kanter, president and CEO of Moosejaw.
Harris said she became involved with PCAP in 2002 and has remained actively involved, despite living in California. It was this continued enthusiasm that led her to mobilize as many people as (she) could to get in touch with Moosejaw to clarify just how problematic the ad is.
Harris’s main issue with the campaign was the company’s attempt to capitalize on human suffering to sell a product.
However, she noted that Moosejaw has been extremely responsive to all of the e-mails and comments she has sent. Wohlfeill said the company has responded to every person who has e-mailed and have published responses on Facebook.
Moosejaw plans to move ahead with the Jail campaign. Wohlfeill said that while the company changed certain elements of the campaign and removed some shop signage after the feedback started coming in, they have no plans to remove the ads or catalogs.
But for Weitzer, that might not be enough. She wrote that while she has shopped at Moosejaw in the past, she refuses to do so again until the campaign has been recalled and a formal apology has been issued.
I’ll be happy to continue supporting a community company when it ends an advertisement campaign that is destructive to our community, she said.
Given what we learned about Ad Campaigns
- What do you think about this Moosejaw jail time campaign?
- Do you think it was clever or potentially disastrous for the company?
- Do you think this campaign was reflective of the organization’s brand?
- And lastly, whether you think it was a bad campaign or a good one, indicate what part(s) of the ad campaign (laundry listed on page 197, and covered on the following pages in more detail) you felt it likely addressed well/poorly (depending on whether or not you thought it was a good campaign or not).
Remember to source any references!
Firm 1 can
5. (10 points) Two oligopoly firms are in the process of evaluating their marketing strategies. Firm 1 can
generate estimated profits of $10 mil. from strategy A if the second firm reacts by strategy C and $15 mil. from strategy A if the second firm reacts with strategy D. On the other hand, firm 1 may follow strategy B which could return profits of $8 mil. or $9 mil. if firm 2 reacts with strategy C or D respectively. The second firm’s potential profits are $8 and $12 mil. from strategy C depending on whether firm 1 undertakes strategy A or B and $7 and $8 mil. from strategy D, depending on whether firm 1 follows Strategy A or B.
a. Construct the payoff table for the above industry.
b. Does each firm have a dominant strategy? What is it.
c. Does the industry move toward an equilibrium position? If so, where?
In your industry there are very strong economies of scale and other cost drivers are strong, government drivers
are weak with little interference from national governments in your industry. However, market drivers are quite weak as consumers use the product in different markets in different ways and the image of your product varies greatly between countries. How would this knowledge impact your international implementation of functional (particularly production and marketing) strategies?
Disintermediation via the Internet has resulted in
a. Greater consumer buying power
Well-established brands names
c. Higher prices
d. Stronger brand loyalty
e. Greater emphasis on personal selling
Chapter 7: Negotiating Sales Resistance and Objections for Win-Win Agreements
Negotiating Price With A Taskmaster
Chuck Johnson and his sales manager, Tom Barnhart, have been trying to sell DuraFlor residential sheet vinyl to Bargain City Stores for many years. Johnson and Barnhart work for McGranahan Distributing Company of Toledo. McGranahan’s handles the DuraFlor line of resilient flooring products, which includes both flooring tile and sheet vinyl. In the resilient flooring market, the six competing major manufacturers all use traditional marketing channels of independent distributors, who sell to retailers, who, in turn, sell to the general public or contractors.
Bargain City operates a chain of sixty-five discount stores throughout Ohio, Michigan, and Indiana, with headquarters in Toledo, Ohio. The firm concentrates on secondary markets, and although they stock all the major product lines that other mass merchandisers offer, they have an excellent do-it-yourself building materials department. Don Schramm is the chief buyer for this department, and his strategy is to buy good value at the low end of the market to sell in Bargain City outlets. It is commonly known throughout the industry that Bargain City buyers always want good product quality at the lowest possible prices, with low price being their top priority.
The product that Johnson and Barnhart are attempting to sell to Mr. Schramm is a low-end line of twelve-foot sheet vinyl flooring called Imperial Accent. This line has twelve different patterns and fifty-six stock-keeping units. McGranahan’s sold the Imperial Accent line to Schramm seven years ago, and the sales volume was $250,000. Now, with Bargain City’s expansion, Johnson estimates the first-year order volume should be more than $500,000. Johnson lost the business when another distributor offered Schramm a 15 percent discount on a similar product made by Congolese Manufacturing. At the time, DuraFlor was unwilling to meet the competitor’s lower price, asserting that its superior brand awareness increased retailer inventory turnover and justified a higher price.
DuraFlor controls more than 60 percent of the entire resilient flooring market, but only 30 percent of the low-end twelve-foot sheet flooring market. DuraFlor has tended to neglect this market because the low-end market is a fiercely competitive one. The manufacturing process, called rotogravure, is so common that no manufacturer has a competitive cost advantage. The process allows virtually any picture to be made into a pattern. Thus, competitors can copy top sellers, making it difficult to maintain styling advantages.
Recently, Chuck heard that Bargain City’s current distributor for twelve-foot sheet vinyl is having financial problems and can’t keep its customers’ stores stocked. On the chance that Bargain City might be looking for a new supplier, Tom called Mr. Schramm and was delighted to hear him confirm a sales call appointment with him and Chuck.
Chuck and Tom have decided to ask the DuraFlor district manager, Ron Harris, to participate in the sales presentation to Bargain City because to win the Bargain City business his firm must ultimately lower the price to McGranahan Distributing. McGranahan’s current profit margin is 24 percent on the DuraFlor product.
In the pre-call strategy meeting, Johnson, Barnhart, and Harris decide to stress Imperial Accent’s improved styling and other product features. They will point out the inventory turnover benefits it offers Bargain City because of its high brand awareness with the store’s customers. The three of them agree that they will have to do some paper-and-pencil selling by demonstrating in specific numbers how profitable the DuraFlor line would be for Bargain City. They also agree that Johnson and Barnhart will finish the sales call with a review of the inventory monitoring, prompt delivery, and sales support that McGranahan’s can provide.
After waiting in the lobby of Bargain City’s large headquarters building for thirty-five minutes, a receptionist leads the three men to Mr. Schramm’s office. Schramm’s assistant buyer, Sixto Torres, is also there and, seeing the three of them march in, comments, Oh boy, they’re bringing in the big guns today. We’re in for a real dog-and-pony show, Boss. Everybody laughs, and greetings are exchanged all around.
Then Tom Barnhart says, We appreciate the opportunity to review the merits of the Imperial Accent line with you today, Don. I’m sure by the conclusion of our meeting that you’ll agree that it offers an attractive profit opportunity for Bargain City.
I’ll be the judge of that, snaps Schramm, peering menacingly over his bifocals while leaning forward in his chair.
Here are the twelve patterns in the Imperial Accent line, says Chuck Johnson, as he lays the patterns before Schramm and Torres. As you can see, DuraFlor has restyled the line with five new patterns, including geometric designs, floral, and the always-popular brick patterns. We’ve also brightened the color palette in the line because market research has shown us that low-end buyers prefer brighter colors.
What do you think of this pattern, Sixto? asks Harris, holding up a bright red, rather garish thirty-six-by-thirty-six-inch sample.
It’s really ugly, replies Torres. I wouldn’t have it in my house. But who cares what I think about the pattern—how does it sell?
It’s brand new, and we don’t have any data on it yet, answers Harris.
Barnhart jumps in. Don, Sixto, here’s a list of the top twenty-five sellers nationwide, by color and by pattern. We suggest you begin by stocking all the patterns to see how they sell in your different markets. We’ll ship new inventory promptly to any of your stores as needed.
Schramm leans forward, Mm, so we won’t have to stock anything in our warehouse?
That’s right, Don, we’ll handle all the inventory concerns and my salespeople will regularly call on all of your stores to make sure the twelve-inch roll racks are fully stocked, says Barnhart.
Harris chimes in, The Imperial Accent line is really coming on strong lately, Don. Holding up a sample of the new embossing, he continues, Our improved rotogravure process allows us to emboss the product now, enabling it to hide subfloor irregularities better than any product on the market. We’re also using new ‘hi-fidelity’ inks that give these brighter colors.
Schramm puts his glasses on and folds his arms as his assistant picks up one of the samples and compares it to a sample of the Congolese product they are now carrying. This doesn’t look any different from the Congolese product, says Torres. How many mils is the wear layer on your product?
Eight, says Harris.
Congolese has a ten-mil wear layer, replies Torres.
That’s because they pump it up with air. We don’t do that. Our research shows this product is the most durable in its product class. Harris is tired of competitors making claims that imply greater durability, while what they’re doing is literally blowing hot air into the product. DuraFlor has always been conservative in its product claims, perhaps too conservative.
Harris continues talking, interrupting Barnhart, who is urging the discussion back to what McGranahan’s can do for Bargain City. Don, look at this profit opportunity, says Harris, handing a sheet of paper to Schramm. If you buy Accent from McGranahan’s at two dollars and five cents per square yard and sell it for three ninety-nine, you’ll make almost 49 percent gross margin. Now with sixty-some stores, eight rolls per store, and seven turns a year, with the average roll being, say, one hundred square yards, that’s a profit of $369,000. I know it will take a while to get the Congolese off your racks, but you could be generating these kinds of profit dollars in a year or two. Harris smiles and looks at Schramm.
Schramm crosses his arms again and stares at the sheet Harris has put on his desk. He rubs his eyes and grimaces slightly. Well, for one thing, Ron, if I were to pay two dollars and five cents per square yard for this product, Sixto would have my job the next day. It’s nice of you to try and help me run my department, but if I made a 49 percent margin on this product, it wouldn’t exactly be a bargain for the customer, now would it?
I think Ron was just trying to point out the profit potential, Don. Obviously, you’ll be changing the numbers to fit Bargain City’s marketing strategy, offers Johnson. And remember that 2 percent of all your purchases will accumulate in a fifty-fifty co-op advertising fund.
We’re only paying a dollar eighty-two per square yard for the Congolese product. Can you meet that price? asks Schramm.
We’ll sure try, quickly responds Barnhart. What about it, Ron, can we get there?
I don’t know for sure, says Harris to Schramm. Let me talk to the product manager and get a price to Tom, and he’ll give a price to you. If we can meet Congolese’s price, will you give us the business, Don?
Maybe, Schramm replies. Come back with your best price and we’ll see. The products look similar to me, your styling has improved, and the co-op program is good. But I’ll look at what your competitors are offering before I make up my mind.
Remember, Don, we’ll carry all the inventory, service your stores so the managers won’t have to remember to order, and deliver the products right off our own truck so you won’t take any risk of damage during delivery. And those costs are all in the price of the goods. You’ll never get a bill for delivery charges. What have you got to lose? How about giving us a shot at the sheet goods business? pleads Johnson.
We’ll see, says Schramm.
Later that week Harris calls Barnhart with a wholesale cost that would yield McGranahan’s a price of $1.90 per square yard with a normal margin. Barnhart calls Johnson into his office and asks if he will be willing to take a 2 percent commission instead of 3 percent in order to help bridge the 8 percent gap. Thinking that it is critical to meet the competitor’s price of $1.82 in order to win the business, Johnson agrees to take the cut in his commissions. Barnhart calls Schramm with the price of $1.82 per square yard, reviews all the benefits of the Imperial Accent line and the services provided by McGranahan’s, and asks for the order. Schramm says he will let him know in a few days, after he hears from other suppliers.
When Schramm calls back three days later, he says McGranahan’s can have the business if they will take another nickel off their price. Apparently, the Congolese distributor has lowered the price to keep from losing the business. Barnhart really doesn’t have a nickel to give. He has already cut the price to the bone, and another nickel off will reduce McGranahan’s gross margin to 17 percent, not too attractive considering all the services they will be providing. Barnhart thinks for a few minutes, then calls Johnson in to discuss the new terms that Bargain City is requesting.
Reprinted with permission of James T. Strong, Dean, California State University, Dominguez Hills.
1.Should McGranahan’s lower the price to Bargain City by another five cents? Should Johnson agree to take an even lower commission to win the order?
2.How successful do you think Johnson, Barnhart, and Harris were in negotiating price resistance during the sales call? What types of techniques did Johnson, Barnhart, and Harris use to negotiate resistance? Do you think more persistence could have won the three-member sales team the Bargain City order?
3.Do you think it was a good idea to bring Ron Harris, the district manager of DuraFlor, along to help make the sales presentation to Bargain City? Why or why not?
4. How well overall did the sales team (Johnson, Barnhart, and Harris) do in negotiating concessions? What, if anything, should they have done differently?
5.What would you advise Chuck Johnson and Tom Barnhart to say in responding to Mr. Schramm’s request for another nickel cut in price to win the Bargain City business?