Apple Inc Marketing Report

Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computer systems, shopper electronics and software program, and offers related companies. The enterprise has skilled an amazing development from 2001 when it has launched its iPod mp3 player. Apple Inc. is considered to be the most profitable electronics company on the planet.


Executive Summary

Marketing Mix Today, Apple unveiled its new product, the iPad. The much publicized rumour about a pill created by Apple is now a actuality. Tablet pc’s have been around for a protracted time, but what makes the iPad different from the other market offerings? What strategy does Apple have in place so as to make this a runaway hit like its iPhone and iPod product lines? We’ll use the marketing combine (4 P’s) to see how Apple strategized its objective to make the iPad a bestseller.

Marketing Mix is the set of controllable, tactical advertising tools that the firm blends to produce the response it needs in the goal market.

Price, product, place and promotion are the four P’s or elements that make up a advertising mix.


Apple sells a big selection of digital gadgets. In 2010, Apple launched their first pill, iPad. Ipad is a tablet device that has a quantity of features. It looks like a a lot bigger iPhone or iPod Touch and possess a led contact display interface. Its dimensions are 9.56 in x 7.forty seven in. It can additionally be very skinny and has a battery lifetime of ten hours. This product has the flexibility to surf the web, hear and buy music, watch videos, view photographs, learn e-mail, learn and buy e-books and execute a number of applications.

In truth, the multiple purposes out there for the iPhone shall be absolutely appropriate with the iPad! There shall be different variations of the iPad at launch with completely different hard drive capacities and 3g functionality. There will be a 16 GB, 32 GB, and sixty four GB variants. Also all iPads could have Wi-Fi and are wireless-n succesful. The iPad may also function the latest Bluetooth profile and may have an on-screen keyboard for inputs.


The base model of IPad (16 GB) without 3g functionality is the most price effective at $499, 32 GB at $699, that is I pad and I phone 5 prices and sixty four GB will retail for $699. If a buyer wants 3G capability they must pay an extra $130 on prime of the base worth. The shopper additionally has the choice to join for AT&T information plan that enables them to have entry to the internet just about wherever and in areas without Wi-Fi connections. The data plan is two tiered: the shopper has a alternative between $14.99/month for 250mb and $29.99/month for limitless entry. The information plan may also permit the consumer to access varied AT&T hotspots at no cost.

Unlike the iPhone, the customer won’t be locked into multi-year contractual obligation and so they can terminate it at any time. As far as reductions go, Apple is known for charging greater, premium costs nonetheless, they usually offer $100 off certain merchandise to school and University college students. They also do particular bundles for buying sure products throughout different occasions of the yr. For instance, I purchased a MacBook Pro through the summer time and so they had a promotion that gave me a free iPod and a free printer plus the $100 low cost because I was a University pupil. They have accomplished the identical promotion for the earlier two years as properly.

Place There are a number of Apple shops across the Australia, 20 of them, in which all the apple merchandise shall be offered. Apple’s retail shops ensure prime quality buyer experience; present direct contact with educated employees and increases brand consciousness. Customers can even buy the merchandise online in Apple’s official web site. Best Buy, one of Apple’s partners, also sells Apple products and in addition has a large retail footprint in the Australia. Amazon, one of the largest online retailers, additionally carries Apple merchandise. Apple ought to gauge shopper demand and produce enough so as to satisfy the market.

Promotion In the previous 20 years, Apple has turn into well-known for its commercial. Its most significant advert campaigns include the “1984” Super Bowl business, the Nineties Think Different campaign, and the “iPod people” of the 2000s. Other than that Apple Inc. also held press conference to earlier than each products launch debut the products. Several of the most important techblogs, forums and websites also invited to cowl the event. Given Apple’s monitor report of heavy promotion and advertisement of its marquee merchandise, the future apple new product has a high probability of getting the identical advertising remedy. The Mac, Iphone 5 and iPad is already highlighted on the entrance web page of Apple website and the hour long keynote by Steve Jobs regarding the Mac, IPhone 5 and iPad are also out there on the website.

Apple International Marketing

1. If you’ll be working for Apple (Ipad or Iphone) what strategies would you pursue in order forestall circumstance like what is happening right now to Nokia Apple Inc. has presently had an incredible break-through within the technological race when it firstly launched Iphone in 2007. Considering that when, there was a change in the technology field specifically, within the Personal Computer (PC) trade contains: cell phone and pill pc. If I worked for Apple Inc., so as to retain along with to boost the place of Apple in Today’s market, I would use, deploy and develop the Relationship marketing with “Distinction” techniques based upon 4P consists of: Product-Price-Promotion-Place.


First of all, people have to admit the reality that the present success of Apple was developed on the incredible gadgets. Compared to Nokia, Apple currently produced an important competitive benefit that raises company to a brand new level. The failure of Nokia was a value lesson for others cell phone producer worldwide.

The main reasons main Nokia to this moment circumstance is business currently missed an essential opportunity in mobile phone revolution along with its gadgets. Despite the truth that, afterward Nokia unveiled mobile phone Lumia nevertheless it did not satisfy the consumers’ demand and expectation. Nokia item’s designs are not enticing and stylish as Iphone. In addition, the objects are outdated consumer interface, absence of applications and out-of-date applied sciences in comparison with Apple’s merchandise.

Consequently, Nokia unfastened its prominent model value in the smart phone industry. Meanwhile, Apple understood and took that opportunity then turned it into substantial success.

Hence, Apple ought to continue the merchandise differentiation strategy. It primarily focuses on investing extra in creating and establishing the brand new and ingenious improvements, which are totally various from competitors’. The products should be usually updated and updated in each its explicit outlook (thinnest, most light-weight, distinctive, modern and outstanding) and capabilities (hassle-free, ease-use, help purposes and repair and so on). This is the one method to make company continue hold its crown as innovator in the intensive technological competition.


Secondly, regardless of the Apple is assessed as “the tech industry’s high-price leader” with Premium worth, people are still willing to buy its products at a specific price. The main level is value set based on the “product Differentiation strategies”. Therefore, so as to exist and develop within the value war, the company not solely retain the identical value strategy but additionally use more the pricing Skimming and Reference methods: launching a similar product line however in several price factors relying on the features and drive capacities. It may be better for Apple than using the penetration pricing methods by suddenly decreasing the value to expand or approach new market.


In order to get the large impact from media and society, one key in the Apple’s advertising is its conventional promotion methods by creating hype and excitement earlier than the launch of merchandise. Apple is considered as “Phenomenon” and each advertising communication regarding “Word of mouth” created large impact on client habits. Organizing significant campaigns with special slogan to introduce and get emotional response about the new merchandise, which consider the consumer psychology: the curiousness, shallowness, want and passion in new applied sciences Place

Finally, expanding and opening new multi-distribution channels with excessive gross sales quantity (retail store chain and online sales). Simultaneously, more creating the sturdy relationship with worldwide retail companions. In conclusion, Relationship Marketing based mostly on “Differentiation strategies” focusing on buyer retention and satisfaction, which to be able to enhance, enhance buyer loyalty and sustainable improvement. Apple Inc. has to perceive the market dynamic to maintain its observe as market pushed by inventing the distinctive and creative product lines as well as innovation technology.

2. On the opposite hand, if you could be working for a competitor of Apple (Tablet or mobile), what methods would you adopt to be able to compete against Apple Apple (Iphone and Ipad) is considered as the largest rival in the PC trade of Samsung (Galaxy S), Nokia (Lumia), Google (Nexus), Amazon (Kindle Fire). Even though, Apple has been dominating the PC business however its target market selection is “Market specialization”. The weakness of Apple is the limited market share due to the premium value and most Apple content can only run on its chosen devices. If we are opponents of Apple, we will use the Apple’s methods to compete against it. It means we must also apply the “Differentiation strategies” to offer more perceived value to shopper.

Every time, Apple releases new product or any software, we would prepare to create and unveil our wonderful totally different merchandise with adding extra worth proposition. Take for situations, to accompany with product, we will provide new innovative or free (or low cost charge) functions, software program, movies, TV shows, video games, e-books, cloudy computing or much more drive capability and so forth. Although, we don’t have as robust customer loyalty as Apple has, our competitive advantage is providing the same product’s high quality with a competitive price which is lower than Apple’s however nonetheless not too low to confirm our position available within the market. In addition, as some Apples’s competitors (eg: Kindle of Amazon) did, they used the bundle pricing strategies mix two or extra merchandise and promote these at a reduced value or supply applications: purchase once but easy to entry content on different units ipad, iphone, tablets . Then little by little getting the expansion worldwide scale with “Full market coverage” (different product traces appropriate for each customers) via different market entries, distribution channels and marketing communication campaigns.

3. Make a SWOT analysis for Apple (Ipad and Iphone)

Apple’s SWOT analysis

a. Define what are the most important threats and alternatives for Apple in the future


Nowadays, the high know-how business appears to be in the “Saturation” however in the future, people nonetheless believe there could be outstanding modifications. In the long run, essentially the most threats that Apple might face is the intensive and high level in know-how competitors. The threats could be coming from both current and rising rivals. The growing in the market share results in the consequence that there progress in perception and needs/demands of shoppers. In addition, there are increasingly counterfeit and pretend merchandise overflowing market that affect on to the corporate image and gross sales. If Apple can’t find the answer, quickly company is surpassed by others opponents.


Ranking as a top leading innovator brings many open-opportunities for Apple. The greatest alternative of Apple is modifications in technology provide new and revolutionary merchandise. The company may even get and deploy from the outsourcing for its analysis and development. Creating the expertise revolution and changing desire of information age affecting to most generations. As one of the famous philosophies of strategic advertising pioneer – Regis McKenna: “Markets for new progressive products do not exist, they have to be created, and defined”. Therefore, creating and increasing the product/service lines by Apple may assist them outline its market, increase gross sales and enhance their product portfolio.

b. Define what are the most important strengths and weaknesses of Apple today


In 2012, this is the second time when Apple is ranked the world’s most precious brand according to “The 2012 BrandZ Top 100 Most Valuable Global Brands”. It is alleged that the Apple’s brand success is driven by three components confidence, competence and prospects. Might be the explanation why people purchase Apple’s product as a outcome of they simply care about its brand and image. As the David Haigh acknowledged in the annual report on the world’s most precious global brands: “Brands are essentially the most useful assets in enterprise right now.

They drive demand, motivate workers, secure business companions and reassure financial markets. Leading edge organizations recognize the need to perceive model equity and model value when making strategic decisions” – David Haigh, CEO, Brand Finance plc. Apple is successful in creating its id and emotional branding that every one most the entire world can acknowledge. Long term brand constructing will interact shoppers on quite lots of contact points that create the high loyalty.


Entering the Niche market with the premium worth strategies, which can thought-about as Apple’s weak spot. The price wars between competitors will also affect to Apple’s income. Moreover, the company’s goal market choice is “Market specialization” then it quite limits the market share cause products offered by Apple meet the demand of middle/ higher class and persons are fascinated in innovation expertise.


Mr. Francois Simon’s lecture and materials{92b52c53-fc68-45e0-aaea-34fe6fbd769b}

An Evaluation on the Customer Relationship Management (Crm) & Service Marketing (Sm) with Special Reference to Emirates Airline”

DISSERTATION “AN EVALUATION ON THE CUSTOMER RELATIONSHIP MANAGEMENT (CRM) & SERVICE MARKETING (SM) WITH SPECIAL REFERENCE TO EMIRATES AIRLINE” March 8, 2010 By: YASIR ALI 0811866996244 Dissertation submitted In the partial fulfillment of the requirement For the degree of MASTER OF BUSINESS ADMINISTRATION (FINANCE) UNIVERSITY OF WALES, UK. March 2010 Submitted by: YASIR ALI, UNIVERSITY ID: 0811866996244 Dissertation Declaration Form DECLARATION This work has not beforehand accepted in substance for any diploma and isn’t being concurrently submitted in candidature for any diploma. Signed……………………………………………. (Yasir) Date……………………………………………….


STATEMENT 1 This work is the results of my very own investigations, besides the place in any other case acknowledged. Where the correction services have been used, the extent and nature of the correction is clearly marked in a footnote(s). Other sources are acknowledged by footnotes giving specific references. A bibliography is appended. Signed……………………………………………. (Yasir) Date……………………………………………….. STATEMENT 2 I hereby give consent for my work, if accepted, to be out there for photocopying and for the inter- library mortgage, and the title and summary to be made available to exterior organizations.

Signed……………………………………………. (Yasir) Date……………………………………………….. 2 I dedicate this humble effort, The fruit of my ideas and study To my affectionate Parents Who send me for greater schooling And encouraging me” CONTENTS PAGE three Acknowledgements Abstract Chapter One Introduction Purpose of Dissertation 1. 1 Research Objectives 1. 2 Main Source of Information 1. 3 Dissertation Outline 1. four 7 8 9 10 thirteen 13 14-15 Chapter Two Literature Review 1. 1 Introduction 1. 2 Customer Relationship Management 2. 2. 1 2. 2. 2 2. 2. 3 2. 2. four 2. 2. 5 2. 2. 6 Service Marketing 1. 3 2. 3. 1 2. three. 2 2. three. 3 2. 3. 4 2. three. 5 2. three. 6 2. three. 7 2. 3. eight Evolution and Lifecycle Implication Processes Technology People Advantages

Intangibility Inseparability Variability Market Orientation Relationship Management Bonding Internal advertising Promise fulfilment sixteen sixteen 17 19 22 22 22 23 23 24 24 25 26 27 28 29 30 30 four 2. 3. 9 2. 3. 10 2. 4 The Customer Mystery 2. four. 1 2. four. 2 2. four. 3 2. four. four Build belief Service Recovery County of Origin (COO) Perceived Risk The decision-making process Accountable Relationships 31 31 32 32 33 35 36 Chapter Three Emirates airline Industry Introduction three.

1 Airline Industry three. 2 Emirates Airlines three. three 3. 4 Economy Class Travellers Chapter Four Research dology 4. 1 Introduction 4. 2 Research Philosophy Type of Research Approaches . 3 Research Methods four. four 4. 4. 1 Reliability & Validity four. 5 Data Collection 4. 6 Sampling Technique 4. 7 4. 8 Implementation of Data Sample Used & Delivering of Questionnaire 4. 9 38 38 38 39 forty Inductive Verses Deductive Research 46 46 forty six forty seven 48 forty eight forty nine 50 fifty one 52 52 5 Chapter Five Findings & Analysis Introduction 5. 1 Presentation of data collected from economy class traveller 5. 2 Summary 5. 3 53 53 fifty three 63 Chapter Six Conclusion & Recommendations Introduction 6. 1 6. 2 Conclusions 6. three Recommendations 6. 3. 1 6. three. 2 6. three. 3 6. 3. 4 6. four Chapter Seven Reflective abstract Appendix 1 Picture 1 Picture 2 References

Internal Selling & Employees Bonding Building trust & Promise fulfilment Service Recovery Further Research sixty four sixty four sixty four 66 66 sixty seven 67 sixty eight 68 71 76 84 85 86 6 ACKNOWLEDGEMENTS I even have no words to express my deepest and infinite sense of gratitude to Almighty ALLAH, Who is aware of all of the issues hidden or evident in this universe, who gave me the courage to complete this work. There are not any words to explain gratitude and thanks to my parents who send me for larger schooling and encouraging me, above all their love & Prayers that is invaluable. I really appreciate my brother, my sisters and all the relaxation of my members of the family who inspired me all he way in completing my dissertation. I sincerely thanks to my supervisor Mr. JOHN WAITES for his appreciation and guidance throughout the analysis and helping me when issues went advanced and troublesome. I would also prefer to thank all my associates, academics and other member of employees at London College Of Business (LCB) for his or her help and continuous update on university lecture schedule . May Allah Almighty bless all of them! (YASIR ALI) 7 ABSTRACT This MBA project supplies a element evaluation of Customer Relationship Management with respect to its implementation in service marketing, with special reference to the Emirates airways.

The following research explores the tasks required within the Emirates airline business so as to obtain the client retention and win the shopper long-term loyalty from focus customers group i. e. , economic system class passengers. Furthermore it was additionally an try to study and analyze what the customers needs, demands, count on and understand from Emirates airline strategies in this excessive contact companies. Therefore wanting into the challenges created for the administration, associated elements and resulting within the success or failure of Customer Relationship Management as a means of creating buyer value, and general xperience of the airline firms making an attempt to implement CRM It is revealed that focus buyer group i. e. economy class travelers are currently experiencing a sure stage of dissatisfaction from the most popular service suppliers. These lack the proper efficiency in assembly their alternative standards and delivering constant worth. Lastly in the light of research introduced and questionnaire info gathered, and independent conclusion underneath the topic matter research is formed along with a set of suggestions. 8 CHAPTER 1 INTRODUCTION Dubai-based Emirates is among the quickest rising airlines on the earth and has acquired more han 250 international awards for excellence since its launch in 1985. The proposed analysis aims to introduce the benefits and want of Customer Relationship Management practices in the Emirates Airline. More particularly, it’ll describe and discover the Customer Relationships of this airline and repair restoration system with enterprise travellers and particularly with financial system class travellers as the main target customer teams. The objective is to find, if Emirates Airline meet the wants and calls for of its prospects and make use of the service restoration system in a means o make their prospects loyal for all times time instead of dissatisfied and defining the purchasing behaviour of these customers. ( Dubai Report 2008). In this sense, the proposed dissertation makes use of two major fields of analysis. On one hand, a theoretical analysis shall be performed on Customer Relationship Management, Service Marketing, Service Recovery System and building Customer Loyalty, a parallel evaluate on literature dedicated to the Emirates airline business and defined buyer group was carried out to correlate it with the importance of adopting Customer Relationship Management on this service Voneche, 2005). On the other hand, an empirical analysis on focus groups (Economy Class travellers) will be 9 the first source of major data for the development of the research examine. This will enable to achieve essential data on Emirates airline’s CRM practices, high quality of service and buyer relationships. At the same time, it’ll provide perception on the wants and demands of Business travellers and Economy Class travellers as a buyer segment, in addition to to realize knowledge about impacts of service restoration system employed by Emirates Airline, and shows the elements hat decide their buy behaviour and loyalty to these service suppliers. Finally, the end result obtained from the overall investigation shall be used to emphasize the upcoming want of Customer Relationship Management and Service Recovery System in the Emirates Airline, considering the market forces that constitute its surroundings and the condition present that shape its competitiveness. In broader phrases, it goals to stress the significance of creating and sustaining buyer relationships of true high quality and worth, especially in the companies subject. 1. 1 Purpose of Dissertation

The importance of this problem in today’s global advertising practices has been one of many major causes for conducting a research in this area. Regarding the explanation for alternative of the Emirates airline as topic of research, the fixed change of patters on this market and the necessity for competing companies to realize differentiation and supply real customer value support the main objective of conduction of this analysis. In addition, earlier research on the realm were based mostly both on the description and evaluation of CRM in airline carrier trade or on the level of customer satisfaction and loyalty of travellers with the service providers.

As a outcome no research of this degree discovered that was focused on the shopper group and relationship with their provider by 10 taking the service restoration system in touch of the precise airline, in meeting their wants and expectations. In addition no such research performed that elaborate what a customer feel and expects when service fails to deliver in its original condition and what actions by the excessive contact service taken to change these dissatisfied clients into life time loyal prospects (Roger 1996). Dissertation is principally focused on Customer Relationship Management and Service Marketing, omparative analysis of the Emirates airline and its competitors drawn from the findings will be only primarily based on this concern, with out aiming to generalise outcomes. A brand is a promise companies make to customers combined with the customers’ judgment about how properly they deliver on that promise. To create a brand firms must add distinctive values to products or services that may distinguish them from the competitors. A successful brand turns into an emotional bond that builds customer loyalty. Customers’ feeling and emotional bond over time convert companies’ products into manufacturers (Ogilvy, 1983). The problem of equity associated ith a brand name, and the components that create it, is a primary focus of consideration to better perceive management practices and profitability, in addition to shopper behaviour. Customer loyalty has turn out to be a key area for concern in vastly competitive economical world. Keeping and gaining market share is what most business strives for in the race to make brands worthwhile. Companies in all industries have been found to wrestle everyday for market share dominance, with the goal of reaching the number one place in customers’ minds and selections in order to satisfy them with their services and products.

Customer loyalty and retention is an enormous concern that has been significantly discussed in recent years especially in virtually all product and repair trade. The idea of CRM- Customer Relationship Management – is not new. Innovative although are 11 the ways by which firms are showing their attempts and efforts to enhance their visibility and acquire market share. Specifically within the service sector, due to the distinctive traits implied, these advertising efforts require special understanding and implementation. Indeed, it is in this area where the intangibility, inseparability, variability and Perishability of the provide make usiness environments evermore aggressive and fierce and, for which CRM is gaining a renewed emphasis to understand and construct sound relationships with purchasers. As service failures are inevitable, firms should be ready to get well from service failures, thereby turning angry, frustrated and dissatisfied prospects into loyal customers. Despite the compelling economics of customer loyalty, corporations continue to battle with service restoration. In order to cope the shopper complains regarding service failure, corporations in airline trade are constructing a service recovery system by working carefully with their prospects to make them life time loyal.

The performance of firm in airline trade is an attention-grabbing instance to indicate the magnitude of each the aggressiveness of the market and the benefits that might be drawn from the applying of CRM process. Moreover, the adjustments undertaken in this industry in latest years and the new competitive fashions which have arisen of this specific type of service a clear demonstration of the need and which means of sustained customer relationships. In order to achieve market share and sustain profitability in today’s ferociously aggressive and economically demanding surroundings, airline should develop new methods to manage their buyer elationships to optimize buyer loyalty and revenues. What ways ought to airlines use to acquire, develop and retain clients with larger precision and improved results? (The future of CRM in the airline industry) Consequently, and contemplating the primary objective of this project and the methodology implemented, airline carriers were not analysed into detail. The writer believes this may 12 have been the focus of a project based mostly on a case-study analysis technique. However, such is beneficial as additional research from the findings obtained on this research, the place the specific

Emirates airline agency mirrored within the knowledge evaluation may be evaluated as to elucidate how they’re attaining higher customer support and relationships by way of CRM. 1. 2 Research Objectives The primary goals of this research, which is to answer if Emirates airline meet the needs, calls for and expectation of its tourist travellers and economy class travellers by implementing the CRM methods and working via service recovery system. § Do Emirates airline meet its customers’ wants, calls for and expectation. In order to answer this and analyse the state of affairs introduced, the next analysis questions were erived: § Emirates airways and Customer Relationship Management: A source of Competitive Advantage? This query will help to clarify the idea, philosophy and processes underlying Customer Relationship Management. § What do clients need and so they receive from Emirates airlines? This query will clarify, how does Emirates airline meet their expectations and needs? 1. 3 Main Source of Information The dissertation was carried out with the objective to supply an evaluation on CRM within the Emirates airline business from a customer viewpoint, specifically with financial system class travellers as the ocus group. In order to do so, the writer has chosen to mix current educational literature with finding obtained from trade reviews and survey questionnaires. Both main and secondary data and materials had been essential to supply vital information to reply the research downside. thirteen 1. four Dissertation Outline The first chapter of the dissertation has introduced the analysis space, focus factors, major function and analysis questions. The second chapter includes of the evaluation of literature together with essentially the most significant theories and models that function a foundation for the concepts directly associated o Customer Relationship Management (CRM) and Service Marketing close to Emirates airways. Moreover, it includes a full part dedicated to the evaluation of customer and their shopping for behaviour in reference to companies. The subdivision consists of the outline of the traits that influence customers’ shopping for behaviour of companies. The third chapter called research methodology which describes the analysis course of in detail. As, such, it talk about the philosophy, type of analysis, approach and technique adopted, together with their respective justification.

Moreover it describes the course of action to gather the information. The fourth chapter explains the concerning the Emirates airline industry, with a focus on the financial system class passengers group. This section gathers report analysis the place the theories talked about within the literature review might be utilized. In addition, it contains associated studies on buyer satisfaction out there, taken as precedents for this analysis research. Following this, chapter fifth is probably the most vital as it’s associated to the presentation and analysis of the interrelated with the earlier two chapter to make the discovering comparable and consistent.

And the sixth chapter presents comprehensive conclusion drawn from this evaluation, as properly as suggestions for additional examine and research. Finely the seventh chapter consist of reflective abstract of complete dissertation. To illustrate previously described is proven visually within the following mannequin: 14 Figure 1: Outline of Dissertation CHAPTER ONE INTRODUCTION CHAPTER TWO REVIEW OF LITERATURE CHAPTER THREE EMIRATES AIRLINES INDUSTRY CHAPTER FOUR RESEARCH METHODOLOGY CHAPTER FIVE FINDINGS AND ANALYSIS OF DATA CHAPTER SIX CONCLUSIONS AND RECOMMENDATIONS CHAPTER SEVEN REFLECTIVE SUMMARY CHAPTER EIGHT REFERENCES 15

CHAPTER: 2 LITERATURE REVIEW 2. 1 Introduction In many companies industries particularly in airline business, corporations are valued based mostly on dimension of their buyer base, a certain number of customers which are thought of the present customer of that agency. These current buyer relationships of a supplier characterize income and profit potential for the provider. As a consequence they try to forestall the loss of these customers and strive for buyer retention. Both buyer retention and recovery are based on the belief that acquiring new clients is dearer than retaining present clients or profitable back lost ustomers. The theme of this chapter is to present the reader with the theoretical basis on which the research is supported. The roots of this chapter consist of serious literature that explains what’s entailed in building customer relationships. Moreover, service advertising theories will also taken into consideration and mentioned extra deeply and interrelated with the previous data, and a concentrate on the airline business to level out the effects of CRM on this setting. At the end, Customer Purchase Behaviour framework will be mentioned to have the ability to better perceive the oncepts of customer satisfaction and brand loyalty. On the premise of all mixed data mentioned will present a complete insight of the topic in question to the reader. In nutshell, when mixed with the next chapter on the Airline business, it will assist analyze the empirical information and answer the analysis questions of the examine. According to Angoujard (2005) service suppliers aiming at managing customer relationships towards worth, prospects also consider the provider’s relation behaviours. While within the service revenue chain, service high quality is the primary driver of perceived worth from relational views 6 there arise further dimensions of the customer perceptions of a supplier and its services. Airline passengers value airways based mostly on their flyer programmes. Such side that can be important drivers of customer habits however are not a half of single interactions and usually are not coated by service high quality dimensions. The following chapter shall be giving a general view concerning the buyer relationships. Moreover, service advertising theories may also keep in mind and mentioned more deeply and concentrate on the Emirates airlines to show the results of customer relationship management on this setting.

At the top, Customer Purchase Behaviour framework shall be discussed so as to higher understand the ideas of buyer satisfaction and model loyalty. In addition when combined with the next chapter on the Emirates airlines, it will assist to investigate the empirical information and reply the analysis questions of the examine. 2. 2 Customer Relationship Management (CRM) Definitions: Customer Relationship Management has significantly developed throughout the year as a philosophy, perspective and systematic course of. The purpose for this is derived from the applying of this idea in almost every component of enterprise that involves interaction with clients.

In present occasions, it might be defined as the technological instruments and construction out there to companies to help maintain their customer relationships and keep their guarantees to them. However, in practice CRM is rather more complicated than that. According to Susan (2006) Customer Relationship Management (CRM) refers to the methodologies and tools that allow businesses manage buyer relationships in an organized means. For some enterprise, Customer Relationship Management (CRM) includes: processes that help establish and target their finest buyer, generate quality gross sales leads, and plan and implement 17 arketing campaigns with clear targets and goals, processes that assist from individualized relationships with customer (to improve buyer satisfaction) and provide the very best stage of customer service to the most profitable customers, processes that provide staff with the knowledge they need to know their customers’ wants and desires, and build relationships between the company and its customers. Customer Relationship administration tools embrace software program and browser-based application (technology) that acquire and organize details about prospects. For instance as part of their CRM strategy, a business may use a database of customer nformation to help construct satisfaction survey, or resolve which new services or products their prospects could be interested in. According to Payne, new CRM strategy, while recognising key advertising combine parts corresponding to product, price, promotion and place need to be addressed, reflects the need to create an integrated cross-functional focus on advertising – one which emphasises maintaining as well as winning prospects. The focus is shifting from customer acquisition to buyer retention. The adaptation of CRM is being fuelled by recognition that long-term relationships with buyer re one of the essential assets of an organisation and that info – enabled system must be developed that will give them customer ownership. According to Voneche, (2005) successful buyer possession will create competitive advantage and end in improved buyer retention, loyalty and profitability for the company. Therefore, the new Customer Relationship Management paradigm displays a change from conventional marketing to what is now being described as ‘customer management’. According to Injazz and Popvich’s, (2003) Customer Relationship Management (CRM) is he “Combination of individuals processes and technology that seeks to understand a company’s 18 customer”. Its complexity and degree of success depend on the extent of integration with which organisations adopt this method for managing relationships, the place the primary focus is on buyer retention and loyalty. “Customer relationship management (CRM) is a business technique that goals to grasp, anticipate and manage the needs of an organisation’s present and potential clients. It is a journey of strategic, process, organisational and technical change whereby a company seeks o better handle its own enterprise around customer behaviours. It entails buying and creating knowledge about one’s clients and using this information across the assorted contact points to steadiness income and profits with most buyer satisfaction. CRM purposes are those that focus on relationships, quite than transactions” Accenture (2002), reported that Customer Relationship Management (CRM) as the process of buying, developing and retaining glad customer loyalty, to have the ability to achieve profitable development and create financial value by way of manufacturers.

They also emphasize on integrating firms’ capabilities to ship the satisfaction that may develop and preserve customer relationships. Taking this under consideration, there is no doubt that as a business technique it influences each component of an organization, from marketing and operations to R&D, finance and most lately the Internet, in order to maximize profitability of buyer interactions. 2. 2. 1 Evolution and Lifecycle Customer Relationship Management (CRM) may be referred corresponding to relationship advertising and buyer administration is anxious with the creation, growth and enhancement of ndividualised buyer relationships with fastidiously targeted clients and buyer groups resulting in maximizing their whole buyer life-time value (Payne). 19 According to Jobber, (2001) as the necessary thing shift from actions concerned with attracting prospects to these on present customers and how to retain them. Moreover, this idea of selling is based on the principle that customer retention influences profitability in that it is extra efficient to maintain up relationships with current prospects than creating new ones and the development of these relationships consists on two situations.

On one hand, relationship needs to be mutually rewarding and helpful. On the opposite hand, both events should commit to this bond, implying for the need of trust to achieve long-term happy relationships. As the Jobber (2001) mentioned the issue of belief in a means that, it is a crucial factor for corporations to extend satisfaction and strengthens the ties between their organisations and their prospects to run the business easily and profitably. Furthermore, Relationship Marketing was developed on the basis that the purchasers have completely different needs, preferences, buy behaviour and price sensitivity (Injazz and Popovich 003). In a basic proposed method of Relationship Marketing the first stage is identification of consumer or customer and than understands client or buyer behaviour with their needs, choice, habits and wishes. The info obtained type shopper or customer provides clues to in order to implement the advertising campaigns and business strategies. Than start managing the customer relationship by first performing direct buyer interplay and then regularly integrating all relevant interplay or dialogue that occurs across passive and energetic network of client channels.

In order to dynamically preserve the client life cycle, the related consumer dialogue have to be captured and customized for the absolute best future action. Ultimately, the vision is to build a one-to-one communication such that probably the most priceless customer is treated differently by providing personalized services and products. The sequential chain of events of marketing 20 practices subsequently developed from mass advertising to target and one-to-one communications. This allows companies to grasp their clients and to mould their offering accordingly and capitalize on the value of their customer base Angoujard (2005). In different phrases, CRM is based on ustomer profitability, lifetime worth, satisfaction, retention and relationship advertising. Traditional focus of promoting has been on wining customers, with an emphasis on the value of an individual sale. This transactional method has increasingly been changed by a relationship advertising method, emphasizing the value of long-term relationships and repeat purchases. In the previous, the approach is impersonal, rule oriented and directed to short-term buyer satisfaction, whilst the latter emphasize long-term relationship constructing (Jobber 2001). Customer Relationship Management (CRM) emerged as a device designed for tailoring buyer ommunications. In its infancy, this tool consisted on methods that contain a collection of service- based mostly functions that were particularly used for gross sales, marketing and business features (Harris, 2003). In the tip it’s based on databases containing buyer data and gross sales pressure automation systems that might combine gross sales and advertising efforts for higher focusing on in market. In the end integration is the vital thing consider any organisation. The starting point of any business strategy should start with having a clearly outlined place on tips on how to view clients justified by the necessity of organisations to be customer-focused.

From there, the strategies and organisational adjustments to assist it must be accepted. According to Piercy (2002) difference between advertising and market-led methods is that the latter is a process the place everyone within the organisation participates, not just the marketing department, and the way firms can truly ship buyer value. Moreover, it is only with integration that the technology implemented shall be practical and valuable for the company. 21 2. 2. 2 Implication In any firm the adaptation of Customer Relationship Management (CRM) brings the senior management into issues.

When CRM is properly understood as an idea, many board-level managers are nonetheless unclear as to how a particular method should be cost-effectively implemented and what technology, course of and people ought to be adopted (Payne 2006). 2. 2. three Processes Gronroos, C. (2000) argued that there are particular areas inside organisations that have to be re- engineered to achieve this customer-driven approach of Customer Relationship Management (CRM). In order to centre a firm’s business mannequin around the customers, business processes need to be redesigned so they help develop and maintain relationships.

To start the organisational culture for this alteration to permeate all members and activities on this way companies are enabled to overcome resistance to vary. Although it is recognized that that is nearly predictable to some extent, even at prime management levels, the gains from such transformation are not only worth the funding but virtually a requirement in today’s market. 2. 2. 4 Technology Advancement in technology in today’s market is very essential and ever extra various to facilitate the combination of enterprise capabilities and incorporate new methods to bridge compay with customers.

More than ever earlier than, companies are empowered to gather and analyse customer knowledge and patterns, perceive behaviour, have efficient and on-line customised communication, and deliver added value. In addition, the cost-effectiveness ensuing from CRM solutions is larger compared to former or older community technologies (Injazz & Popovich, 2003). Moreover, the standard of data gathered and the proper use of it could change every little thing from 22 poor to profitable interactions with customers. In this sense, the suitable infrastructure to CRM purposes is required for the data to circulate within the company and be effectively anaged. More just lately, the Internet has turn out to be an integral part inside this communication means due to its ability to build customer relationships (Injazz & Popovich, 2003); on the identical time, intranet networks have helped corporations in the inter-company dissemination of customer information. The reach of buyer access and the growth of e-commerce, along with its efficiency and effectiveness, are just few of the reasons. 2. 2. 5 People One of probably the most important modifications in advertising thought that has occurred over the last two decades has been the recognition that ‘people are the brand’.

Hence the numerous attention that’s now paid to attracting, training and motivating staff who can share the values of the business and project those values at every point of buyer and client interplay (Peck et al 1999). The correct functioning of Customer Relationship Management (CRM) begins with the difference of customer-driven strategy to business. This attitude needs to come back from the organisational tradition to be able to reach each nook of the business. This way all workers who on the end are the cornerstones of constructing customer relationships (Injazz & Popovich, 2003). All these adjustments ithin the organisation require a stable dedication from administration stage to fulfill the top of the line. As Jobber (2001) argues, education and coaching packages have to be utilized to reinforce the abilities and motivation of all the staff. 2. 2. 6 Advantages According to Angoujard (2005) the upper revenues and decrease or profitable operational prices derived from strong and useful buyer relationships translate into greater retention and loyalty charges, which in the end assist construct stronger and enduring brands. For company the positive aspects 23 include knowing what products or services are necessary or demanded. On the opposite finish, ustomers receive a kind of particular remedy, true worth, and a constant and efficient service, leading them to build their belief in the firm and feed the relationship. 2. 3 Service Marketing Definition The notion of the process outcome results in one of the other service traits talked about most frequently: providers are intangible. Especially compared to the result of the manufacturing course of in the client items industry, i. e. the produced good, this distinction turns into apparent. Services encompass intangible activities of fast consumption purchased in an interactive course of seeking to create customer satisfaction.

Here, the intangibility of the provide surfaces as probably the most relevant issue from which the others are drawn. Indeed, this is determinant for creating a passable experience for the customer, who receives its benefits in an intangible kind because of the interaction with the service provider (Kasper et al 1999). Lovelock and Wirtz (2004) in “Service Marketing: People Technology and Strategy” that service product usually consists of centre product bundled with a big selection of further service parts. The core parts respond to the customers’ need for a basic benefit, whereas the additional ervices facilitate and improve use of the core service. Adding additional elements or rising the level of performance can add value to the core product and allow the service provider to take a distinctive benefit over the rivals, and that may attract the customer satisfaction and retain them loyal. 2. 3. 1 Intangibility 24 Intangibility can be evaluated solely after buy or consumption makes service suppliers need to make use of tangible indications towards the standard of the supply. The effectivity on this task will make the distinction between one provider and its opponents.

Different companies carry different degrees of intangibility. Because of their intangibility service capacities can decay, i. e. services are perishable and cannot be stored. In this case, transportation being a service could not be offered with out the tangible features such as the means itself and its individuals. Therefore, these components turn into the challenge service suppliers need to cope with to offer the standard and expertise prospects demand and anticipate. Furthermore companies are consumed and produced simultaneously. Quiet the opposite, when a flight is over the service is already consumed (Clark et al 1996). . three. 2 Inseparability As a results of their intangibility, service are also characterised by being consumed as they’re produced. This brings out two necessary facts highlighted by Kasper et al. (1999): one, clients are intrinsic members in the manufacturing of companies since, as in distinction with tangible products, the interaction between shopper and supplier is needed for the service to be delivered. Second, the relevance of the provider is enhanced as a determinant of buyer satisfaction. In different phrases, the time, place and right method of offering a service, hence the provider, play an necessary function in he customer’s perception of its high quality and experience. Furthermore, Kasper et al. (1999) state that this function additionally pertains to providers being affected by human beings in three ranges: the setting the place the service takes place, the staff involved, and the tip consumer. Moreover, they argue that each one events concerned can have an effect on that worth aimed to be offered and the one expected, subsequently every detail counts in the interactive process. For this purpose, Jobber (2001) focuses on the selection, training and rewarding of employees as 25 fundamental for attaining high quality requirements. Also, an element of great importance is the eed to avoid inter-customer battle so the setting in which the service is being offered makes the expertise passable. Finally, customers should not be underestimated as their interaction and feedback consequently shapes the offer, and in the end determines the profitability of companies. 2. three. 3 Variability It is difficult to judge the quality of service as is also tough to manage the constancy of the service itself when provided. In this sense, variability refers again to the diploma of standardization that providers must have to always supply the same quality and expertise, offering a satisfaction evel to emerge loyalty (Kasper et al. , 1999). Services are troublesome to control since variables similar to individuals, employees, clients, setting, time and place affect the finish result, as simultaneous because the service itself. In addition, customers will inevitably use objective and subjective standards to evaluate providers, both of which must be thought of by companies. This will enable a proper understanding of client behaviour and the way satisfaction could be created (Kasper et al. , 1999). As before, Jobber (2001) emphasizes the necessity for effective human sources efforts within the selection, training and rewarding of personnel.

Also, the suitable use of evaluation methods is essential to allow companies to know the hole between what is being supplied and the way really it is being offered in the course of the interplay with clients. Perish ability: 26 The final of the 4 defining components of services is concerned with the issue of matching provide and demand. In the light of this, the more intangible the service, the extra perishable it becomes and the necessity for organisations to handle the fluctuation of capacity. Since the acquisition of companies can’t be stored for the lengthy run but rather is a simultaneous course of f manufacturing and consumption, all variables discussed, together with companies’ competences and efforts need to be managed to deal with these dynamic changes (Jobber, 2001). If applied to the airline business, for example, strategies corresponding to multi tasking of employees, use of part-time employees, stimulation of off-peak demand are among different capabilities that have to be at hand of airline carriers to attempt and keep a steadiness of those 4 service characteristics. Such will forestall the experience of satisfaction wished to be delivered from being negatively affected. 2. three. 4 Market Orientation:

The importance of understanding prospects and developing relationships with them is enhanced. When the setting is international corresponding to, in the case of most airline carriers, this task is crucial for marketing services successfully, managing high quality, productivity, employees, clients and positioning. Nevertheless, customer relationship could be considered crucial aspect and definitely probably the most tough to handle. The purpose for being the totally different wants and calls for among customers that vary in accordance with the sort of service. It has been said that the key to be customer-focused is based on providing worth (Piercy, 2002).

However, the worth additionally differs between customers. Therefore, when managing buyer relationships, the interaction wants to provide firms the understanding of what actually is important to the shopper. To higher explain this and in reference to the appendix three, the airline industry’s 27 industrial service falls into the standard augmented service class. This signifies that, other than the service of transportation itself, carriers should add other services of relevance to prospects that will make them select a specific company from the remainder, within the gentle of the perceived worth it presents.

In addition, Economy class travellers have completely different expectations and calls for than different passenger targets. Hence, the need for organisations is to decide on its differentiated service. On the opposite hand, a excessive degree of customization cannot be achieved on this case, no much less than generally phrases. The purpose being the broad range of customer clusters these firms appeal to and search to serve. However, the core service bundle may be improved and people provided to particular clusters i. e. loyalty program buyer base, may be differentiated and delivered with “added value”. This have to be accomplished firstly from customers’ perspective and

Amway Marketing

Amway’s Indian Marketing Experience Blunders made in Marketing Mix by Amway The blunders made in Marketing Mix by Amway are, the primary and four most is they uncared for direct selling in India which was already a successful confirmed mannequin, the second one is 50 – 60% of products where consumed by the distributors, poor prospects service which they nonetheless lag.

The picture which was created about Price was different blunder mistake, but in this firm has failed to elucidate the precise fact to the shoppers that worth which fastened is for concentrated one and they can dilute from it, the other main mistake is they failed to clarify concerning the product to the client the Adhoc Network which was adopted by Amway was not efficient the duplication made in coaching was not up to speed.

Authorities within the Indian state of Kerala have shut down Amway’s operations there amid allegations the corporate was working as an illegal “money chain” and “cheating,” according to Indian media accounts.

source: The Economic Times of India), this was once more a giant pull down for the company The seven mistakes which is mentioned in the e-book “The 7 deadly mistakes in Network Marketing by Taigh G Smyth” had occurred in Amway Marketing Mix, the seven mistakes are •. Employee mindset(interested in provide by not able to work intensively) •Thinking that everybody is your prospect •Not getting proper training •Believing the normal methods are the best way to built •Buying leads Believing that this enterprise provide multiple streams of revenue •Thinking you can’t construct on-line business.

•Suggest a Marketing Mix for Amway with specific reference to Product P of the four Ps. You must justify your answer with market based mostly details in which Amway is operating in India. •Clearly explain the market segmentation strategy and your suggestion for “Place” of Marketing Mix? Marketing Mix of P – Product (suggest a marketing mix for Amway with specific reference to product P of the 4 P’s. )

In Marketing Mix product width or horizontals and size or verticals must be clearly uncovered to the shopper, which can assist buyer to determine on the right product. Most of the client who might know Amway is however they don’t know what’s width and length of Amway if a clear image is given about horizontals and verticals we might not free a buyer brand known buyer. A good product ought to meet all five levels like Core benefit, basic product, anticipated product, augmented product and potential product.

When a product is given it should meet the core benefit like if a body wash is launched then the principle objective of the product is to clean the body, secondly the essential product is prefer it ought to accompany a body cleansing brush with it, third stage is that anticipated mustn’t give any facet impact to the pores and skin, fourth stage is that augmented product like it should give fragrance along with body cleaning, the fifth degree is that potential like physique wash can be promote with some extra offers(i. e. upporting product or provides in price). Most of Amway merchandise are concentrated one it ought to be given on diluted one or prepared to use one comparative to other competitor Amway product will price less when it is diluted however the first impression which is out there in customer mind is that costly and fewer in quantity and so they don’t think about dilution, this pulls the sale of product the place other product will take off. Marketing Mix of P – Place (Clearly clarify the market segmentation strategy and your suggestion for “place” of selling Mix)

A market segment consists of group of consumers who share similar set of wants thus marketer will not create a phase he can simply establish and resolve which one to b targeted. For Amway subtle preferences segmentation will assist to develop enterprise more, on this mannequin initially major segment can be covered as a outcome of it’s a scattered all through the area later Clustered preferences segmentation could be followed inside the diffused preferences so the entire market can be covered.

When a product is introduced this could reach most a part of the segment like if a body wash is given it should reach most part of the phase once it has reached the identity of product (i. e. physique wash) will be acquainted among the many group then the extra concentrated advertising inside the section must be accomplished just like the physique wash product id has reached then it should attain detailed clients in that exact section as soon as it has accomplished then the entire market shall be utilizing that specific product.

Alternative Marketing Solutions of Kodak

Kodak’s primary downside was not foreseeing and adapting to market modifications of worth and competition. Kodak had dominated the picture film market for most of the 1900s till competitors like Fuji began taking market share from Kodak in 1984. Kodak ignored the model new threats till the late 1990s, relying on their market dominance. Problem Analysis Kodak supplied three product traces to target numerous market segments as part of their Funtime technique to regain market share. Prior to this strategy, Kodak provided only two product lines, Ektar, their superpremium line, and Royal Gold, their premium line.

They deliberate to introduce Funtime movie, an economy brand movie, which focused the value delicate consumer. The target market is the typical film person who has little or no education about movie, buys strictly on worth, and is not influenced by advertising — the 50% of consumers that weren’t brand loyal (40% have been film “samplers”; 10% purchased on price). Gold Plus is the premium brand film and is developed to target average shoppers who’re already Kodak-loyal or in search of high quality photographs over worth.

The superpremium movie, Royal Gold’s goal market is professionals, critical amateurs and common shoppers who pay the premium for skilled grade pictures for “very special” occasions. (See Appendix A) In the 1990’s Kodak’s primary opponents were Fuji of Japan, Agfa of Germany, 3M, Konica of Japan, and Polaroid as a late competitor. Kodak has many ways to distinguish themselves from all of these competitors. As a longtime photography and movie brand, Kodak has dominated 70% of the market share within the U.

S. ; the place lots of their competitors are new to the market.

Kodak has not offered a personal or financial system movie line like many other rivals have. In the superpremium tier Fujicolor Reala was concentrating on superior amateurs and professionals only while Kodak focused a more broad segment with their competing Royal Gold line. In the Economy model tier, Funtime was launched as an economic system model competing with Fujicolor Super G, Konica Super SR, and ScotchColor. Funtime was the one movie in this model tier to be offered solely at off-peak film use instances and solely packaged in worth packs. Kodak dominated the film market all through the 1900’s.

They by no means obtained any main competition until Fuji started to attack their market share in the 1980s, after they have been introduced as the official movie sponsors of the 1984 Summer Olympics in Los Angeles, Kodak three California. Kodak believed their dominance and buyer loyalty would proceed to hold them as new competitors entered the market and as film costs have been starting to fall. They underestimated their competitors and did not react soon enough. It seemed as if Kodak believed that individuals wouldn’t purchase another film apart from Kodak. By the late Nineteen Eighties the film market started to see many rivals and Kodak’s market share began to fall.

While nonetheless the dominant competitor, their market share fell from 76% in 1989 to 70% in 1994, and equally the typical value of film started to fall. While Kodak’s movie rolls were within the neighborhood of $3. 50 to $6 per roll, competitors started releasing movie under personal manufacturers beginning at $2. 19. Shortly after the economic system movie market began to type, Consumer Reports launched a excessive quality check of the top 6 films in the market. While Kodak positioned themselves because the superior quality film, Consumer Reports reported that, “We found most movies to be no better or worse than their opponents of the same velocity.

and will yield prints of comparable quality. Kodak’s normal, Gold Plus, even ranked under Fuji’s financial system film. With movie market evolving, Discount Merchandiser launched a survey in 1991 stating that “more than 50% of the picture takers within the US claim to know nothing or little about pictures, and as a outcomes they have a tendency to view film as a commodity, usually buying on worth alone. ” This led Kodak to a major repositioning of its film product line, introducing Funtime movie, an economic movie line, something Kodak would have by no means beforehand considered.

Kodak was determined to recuperate a variety of the market share they had just lately misplaced and implemented a new strategy to help recapture a few of their market share. They launched the Funtime Strategy. In this technique, Kodak would offer 3 lines of movie (superpremium, premium and economy). The economy line was new for Kodak since they specialised in high-end photography that was parallel with their top quality model image. Funtime was to be provided at 20% less than Gold Plus (their premium brand) and supplied in restricted portions solely twice a 12 months at off-peak movie use times, 4 months out of the 12 months.

Funtime was solely sold in “valuepacks” of two or four rolls of the 2 hottest speeds, ISO one hundred and 200. The major inconsistency with implementing this new strategy was the dearth of promoting spent by Kodak; they offered no support and a lack of dedication to Funtime. Kodak was too involved with sustaining its high profit margins that they were not keen to cannibalize their very own market share before the competition did. Kodak four Whereas their focus was to regain some market share with their new Funtime line, they replaced their superpremium line with Royal Gold, broadening their “professional” target market.

They emphasized that Royal Gold could presumably be for “very special” events not just professional images. Kodak spent 40% of its whole film-advertising finances on this line and the opposite 60% on its Gold Plus. The Funtime strategy was a last probability effort to regain market share and compete with private label manufacturers. It seemed that the economic system line was launched too late to recuperate the shares that were lost. By solely offering it twice a yr Kodak appeared as if they were not absolutely committed to this line. The lack of advertising despatched a deceitful message.

It appeared as if they have been hiding the line as to not take away from their other “quality” strains. They wanted to keep their prime quality image whereas competing within the low end of the market as well. This technique does not solve their downside of competing with their rivals. The case did not point out any new ways in which Kodak tried to distinguish themselves from their competitors or clarify to their customers why they thought they have been superior to them. Kodak supplied three main lines of film but didn’t educate the client on the difference between the strains.

They stated their superpremium, premium and economy lines however did not take time to coach the consumers of the difference between the three strains and the way they differentiated from their competition. Since Consumer Reports launched a examine showing that the majority film rolls in that time carried out similarly and printed pictures of comparable quality. Kodak did not take time to inform apart themselves from this new competition but merely relied on their trusted model name they had built in the years prior. Before differentiating themselves from their competitors they should have reacted instantly to new competition quite than ignore it.

Because Kodak was late to react, Fuji was capable of simply differentiate themselves from Kodak. Kodak should have seen Fuji’s sponsoring of the LA Summer Olympics as a menace. They should have immediately started discussion strategies on repositioning themselves to avoid the competition absorbing their market. Kodak was not ready for the market changes that got here. The week of January 25, 1994, Kodak’s inventory misplaced 8% in worth. Kodak was used to the big profit margins on movie and could not rationalize cannibalizing their own earnings by reducing prices due to their inflexible management earlier than the entire business lowered prices.

The reality was that the movie business was slowly declining, individuals viewed photography as a commodity and they have been just on the cusp of Kodak 5 the digital era. Kodak was reluctant to return to phrases with this new actuality. Their competitors capitalized in the marketplace modifications and private film corporations started offering lower price film of comparable quality. Kodak did not look far sufficient into the future of the market and had been slow to react to competition which is why they failed to stay forward of their competitors and minimize any losses.

Alternative Solutions

Due to Kodak’s misplaced market share, lowered inventory prices, and declining revenue margins, it was evident that the company was headed in a downward spiral. Surviving within the industry, because of film being a commodity product, was not easy, and the company was in dire have to revive its personal worth. To clear up its major problem, not foreseeing and adapting to market adjustments, we suggest five various options:

  1. delve into wholesale market share,
  2. better educate customers regarding the products’ benefits and values,
  3. spend extra time on analysis and improvement,
  4. halting production of the Funtime product, and
  5. both educating prospects concerning the products’ advantages and values, and spending more time on research and improvement.

Alternative Solution 1

Kodak might promote its movie in worth packs at wholesale stores, such as Costco or Sam’s Club, to be able to regain the market share within the trade. In doing so, this would be an efficient way for Kodak to tap into market share that had not yet been touched. Film, at this point, had not been sold in bigger wholesale packs, and was being bought primarily in smaller groupings, at common retail services.

Because of the recent upward trend with consumers shopping for in bulk, wholesale retailers have been gaining extra loyal clients on a daily basis. By selling inside most of these shops, companies had been extra likely to succeed because this was a retail niche that was evolving, and would give specific manufacturers and products more consumer recognition. Kodak may have taken advantage of the robust market and loyal customers that a wholesale retail firm already has. By partnering with Costco, for example, Kodak might turn into its unique film companion.

With this sort of partnership, Kodak might have the flexibility to capitalize on the exclusivity of Costco’s movie gross sales. Also, seeing in latest years that Costco has turn into a very common place for shoppers to have their rolls of film developed, and frequently sells movie rolls in worth packs, it seems to be a one-stop-shop for households who are continuously on-the-go. If Kodak 6 Kodak had been to partner efficiently with retailers like this, the company would be capable of acquire further market share and gross sales, as a outcome of folks would enhance their recognition of this explicit brand, and will turn into the go-to brand for most.

Wholesale retailers, like Costco, are extraordinarily popular and well-trusted. By associating its picture with these companies, Kodak would have a aggressive benefit over others within the trade, and could possibly be associated with Costco’s constructive identification, thus giving itself a positively-positioned image relative to its opponents. The biggest drawback in implementing this solution, however, could be in securing a mutually-beneficial partnership with a wholesale retailer.

Most wholesalers would not essentially be prone to decide to an unique partnership to at least one particular brand (in this case, Kodak), just because they limit their very own product availability, and therefore cut into their own gross sales. Retailers, like Costco and Sam’s Club, concentrate on having all kinds of products from which customers may choose. If wholesalers have been to commit solely to Kodak, per se, then they could lose out on potential sales from shoppers who want the competing film product. There is not essentially an inherent profit for wholesalers with exclusivity.

Alternative Solution 2

Apart from selling within wholesale retail locations, one other method to regain lost market share is to higher educate consumers relating to camera film. Film had become a commodity product to most shoppers, and there was little customer loyalty to any specific digital camera movie model. Differentiation between the companies’ own merchandise, in addition to the competitors’ merchandise, is an important facet of any business. However, it appears that evidently Kodak lacked a differentiation technique and had not communicated to customers how its merchandise had been positioned positively, relative to those of its rivals.

Consumers knew “little or nothing about images,” in accordance with the 1991 survey in Discount Merchandiser. Its lack of instructional promoting left clients at midnight, so far as the difference between merchandise available. Because many uneducated prospects merely buy primarily based off of worth alone, Kodak needs to tell clients why they want to pay the premium worth, and what benefits come together with paying that premium. No different film firms were educating customers about worth and benefits, so Kodak had a chance to capitalize on the lack of knowledge thereof.

Kodak 7 would become familiar with their film needs, and the film’s benefits. Simultaneously, they’d also acquaint consumers with the value of their product, when in comparability with others. As a outcome, Kodak would create more model loyalty. Moreover, in the case study, we are informed that Kodak offered three forms of movies: Gold Plus, Royal Gold, and Funtime. To the average consumer, Gold Plus and Royal Gold are far too similar in name, and provides off the impression that they’re of the same high quality. Customers were becoming confused because of the similarity between these two names.

By educating the shoppers about its merchandise, consumers would start to understand the worth of Kodak’s movie relative to opponents, and the inherent variations between its products. However, if this answer were implemented, the probability of making a large influence on its own market share would be minimal if implemented by itself. By itself, it would not help restore Kodak’s decline in gross sales, inventory prices, and market share (because of its inability to adapt to market trends). Let aside, this would not address the problem of having been unadaptive, at its core. Educating consumers would probably only work finest when paired with another different resolution.

Alternative Solution 3

It was ten years earlier than Kodak responded to the Fuji’s sponsorship of the Olympic Games. Clearly, Kodak ought to have had a fast response to this risk. Due to their lack of capitalization and overconfident mindset, Kodak misplaced a vast quantity of their market. Kodak should have acknowledged that expertise would advance sooner rather than later. Instead of solely specializing in repositioning their film, they should have additionally tried to advance the know-how of their cameras.

The key to a profitable enterprise is focusing on the present product, while spending time on researching and growing the lengthy run product. Kodak executives should have asked themselves, “What can we do to get forward in the market? ” Seeing that the main drawback with Kodak was its inability to anticipate and adapt to future market developments and developments, it should spend extra time, efforts, and money on proper product growth. This late response resulted in a fast lack of market share. Had Kodak responded to this with extra immediacy, its market share wouldn’t have dropped so significantly.

To stop market loss in the future, Kodak ought to make investments extra money and time on correctly creating “cash cow” products. Prior to the development of Funtime, the products Kodak 8 within Kodak’s camera movie portfolio have been thought of money cows. Due to adverse market rumors, the company supposed on creating another money cow, as to maintain its market share. However, had the corporate spent more time on researching the digital camera film industry, it might have noticed that developing one other cash cow product was not intelligent.

Market analysis is extremely necessary in understanding what subsequent steps an organization ought to take, and tips on how to create a strategic marketing strategy. Rather than Kodak’s executives asking themselves “What can we do to maintain our market share? ” they should have requested themselves “What can we do to get ahead in the market? ” Kodak’s strategy was to boost its current products as stars, and develop a new product (Funtime) as a cash cow. Accordingly, the star products (Gold Plus and Royal Gold) could be funded and, ultimately, additional promoted.

In asking the wrong questions, Kodak forged its personal demise: Funtime became a query mark product, liquidating revenues made by the prevailing cash cows. By spending extra time on analyzing present developments and advancing technologies, Kodak may develop merchandise that would help it recover misplaced market share and turn into a dominating drive throughout the industry. The biggest disadvantage in implementing this, nonetheless, could be the risk of product failure. Kodak’s executives would want to make knowledgeable choices relating to whether or not such developmental dangers are worth product failure.

Alternative Solution 4

As mentioned in the case examine, Funtime film would be offered “only twice a yr at offpeak movie use times”. Kodak confused its clients regarding the value of its product. In the eyes of the shoppers, offering a special product solely at certain instances of the year, with a lower price, introduced down the worth associated with Kodak movie. The case mentions that Kodak’s “stock had lost 8% in worth on rumors of a value minimize on film”. If rumors of a value reduce introduced down its stock prices, then adding a decrease high quality product, like Funtime, would additionally deliver down company stock costs.

In analyzing Kodak’s merchandise with a BCG Matrix (see Appendix B), Funtime could be considered as a query mark, whereas every of its other products have been money cows. The market share for decrease high quality movie was not rising and didn’t generate a lot money. Often occasions, dog merchandise must be divested. Kodak should have rapidly determined whether the Funtime Film Kodak 9 would develop right into a money cow or canine. Because Kodak was solely selling this product during the off seasons, Funtime could never turn into a money cow.

While creating Funtime would have been an excellent answer given regular circumstances, growing a model new decrease quality product amidst adverse market rumors was a dangerous transfer. Other firms, similar to Fuji and Polaroid, had canine merchandise, and were preventing to turn out to be cash cow merchandise. To retain the market share it already has, and for the explanation that Funtime product is already developed, although, Kodak ought to section out its production. This would flip the product into a dog, and over time, could be absolutely liquidated. Some foreseeable cons with this resolution could be the prices incurred from holding inventory and phasing out a product.

This would further reduce into firm revenues, making it harder to return from a decline in stock value.

Alternative Solution 5

We consider that a mix of Alternative Solutions 2 and 3 would be an efficient resolution for Kodak. Education will explain the products’ values and benefits, while simultaneously maintaining its distinctive brand image. By educating clients and anticipating future market trends, not only is Kodak capable of retain its loyal customers, but positively place themselves in the minds of non-Kodak-loyal film consumers, as well.

This, nevertheless, solely speaks to part of its primary problem. Accordingly, this education must be aided by correct market analysis, so that Kodak is in a position to foresee market developments, and is ready to react accordingly. The company must focus equally on each the present and the long run. By utilizing this two-pronged method, between education and proper R&D, the company is in a position to educate shoppers inside the market for movie, and additionally, decide the way to stay ahead of the competition. Proposed Solution In direct reference to Kodak’s primary problem (not foreseeing and adapting to market changes), we extremely recommend that Kodak choose Alternative Solution 5: spend more time educating prospects and speaking the value of Kodak’s merchandise, in addition to investing extra efforts in correct product development, aided by effective market analysis. By educating clients, Kodak is able to each lock-in the loyalty of present clients, maintain its competitive benefit, and find extra methods to draw more new customers. Moreover, investing its time Kodak 10 and cash on proper product growth and evaluation will allow Kodak to grow within the creating market.

As a end result, Kodak would be able to develop a star product, whereas maintaining several cash cows. Implementation Product In regards to the product life cycle, Kodak’s present product Gold Plus, exists in the maturity stage and their main objective at this level is to defend and regain market share. To do that, Kodak must redevelop an existing line that may enchantment to a broader audience of photographers. We are going to introduce Royal Gold to exchange the current film, Ektar, in the high-end phase.

At the same time we’re going to suggest to maintain our premium product, Gold Plus, the place it’s presently at in the middle segment and over the course of a 12 months, as we wish to part it into the low-end of the middle phase, and make the value competitive with economy manufacturers. This is partly as a outcome of most customers don’t buy as much from the middle section. Therefore, we need to enter a more profitable market phase. By phasing Gold Plus into the lower end, we can compete in both the high and low-end market.

However, we can’t go about this by merely dropping the worth of Gold Plus instantly. Mainly because doing so, within the eye on the customer, will cause confusion and probably scale back brand fairness. Instead, we will drop costs a couple of times a month over the course of a year. This way, both products shall be positioned better, in that we’ll be competitive in each areas. Royal Gold shall be focused to a broader buyer base. It might be targeted to professionals and critical amateurs, as nicely as any photographer looking for movie for “special” events, as referenced in the case research.


Royal Gold will produce a sharper picture and overall a greater high quality photo, thus attracting customers preferring to have options in what they do with their photographs. Those wishing to doubtlessly enlarge the photograph will have a completed product that’s so crisp they’ll have the peace of thoughts in figuring out it won’t jeopardize the integrity of the picture. Royal Gold will be obtainable for purchase in quite so much of types. In order for Kodak to be profitable with this new product it’ll must be bought in particular person packages, as well as packs of three and/or six so as to give prospects a spread in selection.

Kodak eleven Place Royal Gold and Gold Plus shall be sold in places where other Kodak products are at present being sold. There are a quantity of stores that carry Kodak merchandise so buying the brand new line is not going to be tough or exhausting to seek out. The distribution might be allotted in quantities that can maximize profitability and shall be attractive to clients who are selective in where they buy movie. Our primary distribution for Royal Gold and Gold Plus shall be to discount and department shops, about 34%; the eased decline in pricing will not be as noticeable in such a store.

Next shall be to drug shops who typically don’t offer as many reductions except a customer is a part of their rewards program, about 25% shall be distributed to such. Camera shops will get about 15% of the distribution, as this will entice the shopper base that Gold Plus targets, these photographers looking for a extra professional picture. It is within the privately owned shops that single rolls of movie might be bought extra frequently. The other 26% might be allocated to supermarkets and wholesale golf equipment. We predict income will be maximized tremendously coming from these institutions, especially in gross sales of the three/six worth packs.

It could be wise of Kodak to track the earnings the place the movie is distributed throughout the first few months after repricing Gold Plus, gauge consumer demand and produce and distribute enough movie in order to satisfy the market. Price While making an attempt to implement an economy brand, Kodak failed when releasing Funtime movie. The shopper was not educated in the differentiation between the superpremium Royal Gold, premium Gold Plus, and economic system Funtime. Although the market was trying to find a product from Kodak that would be introduced within the economy brand, Funtime was unsuccessful.

By taking Funtime off the cabinets, the economic system portion of the Kodak market is unavailable. Gold Plus is Kodak’s present lowest model of movie, however still provides greater quality over competing financial system manufacturers. Due to the phases within the product life cycle, Gold Plus’ worth will naturally decrease. Gold Plus has already skilled its peak instances of gross sales in the course of the introduction and progress levels. Now that Gold Plus has been on the market for some time, it’s now within the maturity stage of its life cycle, as sales have begun to stabilize. In order for a product to still succeed in the Kodak 12 maturity stage, the product should stand out among competitors. Implementing a gradual value decrease will slowly lower Gold Plus into the economy stage tier with out including an entire new Kodak line. Eventually, a 15% worth reduce would give Gold Plus a value of $2. ninety six, $. 05 greater than the Fujicolor Super G and Konice Super SR economy brands. Still permitting Kodak to have a distinguished model image over competitors within the economic system model, this is in a position to place Gold Plus as a premium model competing with competitors of the financial system level. Sending coupons to prospects is one other method to help Kodak achieve again market share within the lowering market.

Coupons create model recognition and make clients really feel like they, personally, are receiving an excellent deal. Because perception is reality, it’s important for Kodak to position its model as a product of excessive value. Instead of drastically slashing prices, Kodak’s gradual value lower, along with coupons, will help achieve back the market. Making coupons available to customers helps Kodak maintain their worth. On the other hand, Royal Gold is still in the growth stage because of the substitute of Kodak’s previous superpremium movie, Ektar.

When Kodak implements Royal Gold into the market, changing Ektar, Royal Gold’s worth is 20% decrease than the previously current Ektar, at $4. 19. In the superpremium market, Fujicolor Reala is selling at $4. 69, a $. 42 enhance over Kodak Ektar. By progressively lowering the price of Royal Gold, additional time, it’s going to eventually take the place of Gold Plus’ previous position. In 1993, the premium model, Gold Plus offered at $3. forty nine, competing on the identical worth as Agfacolor XRG. “Gold Plus price was commonplace of the industry”. Gold Plus not has the power of setting the price because of the lack of market share and position in the product life cycle.

Instead of permitting Gold Plus to fully diminish from the market, diffusing it into the economic system tier will still give Gold Plus a competitive edge. Promotion In order to regain market share, it is important for Kodak to advertise the advantages of Royal Gold and Gold Plus film. A easy picture can show quality of film; alongside educating through commercials, Kodak will ensure the buyer is conscious of precisely what to look for in movie. Mailing out coupons is another great form of advertising. Promotion will help Kodak educate, along with create model recognition. In turn, customers will purchase Kodak movie and keep away from post-purchase dissonance.

By launching an advertising marketing campaign and Kodak 13 emphasizing the long-term high quality of Kodak, in addition to educating the shopper on distinctions between each product, consumers shall be interested in the movie best suited to their wants. Kodak can gain a larger market share by informing the shopper what they’re gaining from purchasing Kodak film before even getting into the shop. This marketing campaign, accomplished by way of commercials, emphasizes the advantages of purchasing for each Kodak product. As Royal Gold is new to the market, extra advertising must be focused to teach consumers about the product.

Devote 60% of the advertising finances to Royal Gold and 40% to Gold Plus, permitting Royal Gold more sources to takeoff as a model new product. Pinpointing the concept the typical picture taker can take a picture like an expert, without being targeted to professionals. A industrial representing Royal Gold in addition to Gold Plus is critical to indicate the perk of every product. The innovation of Royal Gold coming from Ektar, which was originally focused to professionals, provides confusion to the typical photographer, assuming the consumer must be a professional to buy the product.

By making it clear to the market that Royal Gold is focused to the patron wishing to capture the “special moments”, the common client might be extra drawn to the product. Gold Plus commercial will focus on the value of everyday quality movie. Whenever you take an image, Gold Plus is there for you, at all times dependable in any state of affairs. In a Kodak commercial, Royal Gold is the movie used to seize the special first moments of a baby being born. Gold Plus is the reliable film for irresistible instances thereafter when the child is consistently photographed.

As a result of customers being uneducated within the film market, the overall hesitation of purchasing film will come from being unaware of the benefits each film offers. Educating shoppers, selling advantages of Kodak and displaying the attributes important in the Gold Plus in addition to the Royal Gold movie will lead customers to the right product. With the right promotional strategy, the schooling shall be suited to the target market, resulting in a glad client.

Air Asia Marketing

AirAsia is Malaysian low-cost airline that gives both home and worldwide flights. AirAsia started operating on 18 November 1996, it pioneered low cost travelling in Asia. In 2001, the airline which was closely indebted was bought by Tony Fernandes’s company Tune Air Sdn Bhd. Under his cost, AirAsia has turn out to be one of the greatest low price airlines working in Asia today. Its primary hub is based in the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). As such, AirAsia customers tend to be from the lower to middle income inhabitants.

Thai AirAsia and Indonesia AirAsia are subsidiaries of AirAsia and are based in Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. Company Analysis

I. Segmentation
AirAsia target market section encompass three completely different but overlapping segments that had been segmented based on Geographic Segmentation, Demographic Segmentation and Psychographic Segmentation. AirAsia is targets mainly the Asian market, therefore the name AirAsia. As such, they do geographic segmentation by focusing their providers primarily in Asia.

Being a low cost airline, they’re targeting the low to middle revenue group (demographic) and the cost-conscious travellers (psychographic).

In order to seek out the present advertising challenges faced by AirAsia and to determine what are the possible solutions that they will implement, considering their alternatives and reap the benefits of their strengths, the TOWS evaluation mannequin (Threats, opportunities, weaknesses and strengths) shall be used. Threats | Opportunities |

* Intense competition (i.e. Tiger Airlines, Singapore Airlines) | * Asia’s center class growth * ASEAN Open Skies * Increasing oil price| Weaknesses | Strengths |
* Fair availability | * Well established model name * Low value leader in Asia |

What was as soon as a comparatively small market of low-cost airlines when AirAsia was first established, AirAsia not solely has to face indirect opponents such as non-budget airways (i.

e. Singapore Airlines), ferries (i.e. Kuala Perlis Langkawi Ferry Service Sdn Bhd) and buses (i.e. Aeroline, now they are also threaten with intense direct competitors similar to Tiger Airways and Jetstar Asia Airways.

Countries in Asia, similar to China and India, are up-and-coming large potential markets sooner or later. In China, there have been already one hundred thirty, 000, 000 shoppers just within the center class range in 2006. It is estimated to increase to 340, 000, 000 in 2016, a 162% progress from 2006 as shown in the graph below. This
is useful for AirAsia as it implies that their focused customers (low to middle income) will grow exponentially within the near future.

ASEAN Open Skies is an agreement, focused for 2015, to allow limitless flights between all of the ASEAN’s regional air carriers, both full providers and low-cost airlines. The rationale for the Open Sky agreement is to advertise competition in the airline trade. Due to its sturdy brand name and “low-cost” culture among its workforce, AirAsia is more likely to achieve from this settlement. The increasing oil prices may look like a menace to AirAsia, however being the low cost chief in Asia, this can truly be seen as a possibility for them as a substitute. This is as a result of excessive oil prices would affect all of the airways and never just AirAsia. Thus, AirAsia will nonetheless be the lowest costing amongst all of the completely different airlines. This could end in an increase in market share for AirAsia as prospects from the totally different airlines would relocate to AirAsia. Weaknesses

The availability of AirAsia flights is not good as full providers airline. While honest availability might look like a huge weak point that might have to be tackled and solved, it would be troublesome for AirAsia to remain cost chief if it provided complete support as it might result in elevated operational price. Strengths

AirAsia’s model name is nicely established within the Asian area. This was not only because of the fact that AirAsia the pioneered low price travelling in Asia, but also because of the intensive advertising & promotions they’ve done. Indonesia AirAsia and Thai AirAsia have successfully helped AirAsia to spread the brand throughout the regional beyond just Malaysia. Due to AirAsia Academy, which AirAsia’s regional coaching academy located in Malaysia, it has helped to create a low-cost airline mentality among their workforce. It is due to this workforce that AirAsia has turn out to be the low-cost airline leader in Asia in terms of total value. In the table on the next page, it particulars the distinction when it comes to price per available seat kilometres (ASK, which is the total variety of seats out there on scheduled flights multiplied by the variety of kilometres these seats were flown), between AirAsia and the other competitors. Its reveals that AirAsia has a large advantage over the competitors on this area.

Marketing Challenge
Looking by way of the company analysis, the largest advertising problem presently faced by AirAsia is to stay competitive and protect their market share within the increasingly aggressive market of low-cost airline. Recommendations

I. Tap into the rising Asian Market
For AirAsia to remain competitive and not solely protect their market share however expand it as nicely, it’s critical that AirAsia taps into and take benefit of the growing Asian Market. They can do this by adopting the next methods.

Market Challenger Strategies
The market challenger strategies are a set of strategies that an organization can make use of to achieve market share and becoming the chief eventually (Kotler and Armstrong, Principles of Marketing, latest 2010, thirteenth edition). AirAsia can use these methods, particularly, frontal, flank, bypass and guerrilla attack, to make itself standout from the relaxation of the rivals and hopefully acquire a bigger market share of the growing Asia middle earnings population. Attacker

(3) Encirclement attack

(4) Bypass attack

(2) Flank attack

(5) Guerrilla attack

Frontal attack

Frontal Attack:
Frontal attack refers to whenever you attack the weakness of one other company’s product. In the case of AirAsia, they need to assault their rivals by way of their costs. Due to the reasons listed above, AirAsia has become the low price leader in Asia. It is unlikely for his or her rivals to have the power to full by means of value alone in the long run. Thus, AirAsia ought to use their comparative low costs to problem their competitors directly. The limitation to this form of attack is that AirAsia has to maintain up that low value advantage that they’ve.

This signifies that they have to invest a big portion of their capital into their analysis and growth section to guarantee that they are flying at the lowest price attainable. One way AirAsia can further scale back their operational price is by standardizing their aircraft. As proven within the desk in the following page, AirAsia has at present 5 various sorts of plane, starting from the Airbus A320-200 to the Airbus A350-900. However, if AirAsia was to reduce back this to only two to a few different sorts of plane it might result in a drastic drop in price, as economies of scale comes into impact after they buy and keep the identical type of plane Staff value additionally scale back, as they solely need to know the way to handle a quantity of forms of aircraft, this results in training time being reduced and ultimately decreasing operational value.

Flank Attack:
Flank attack refers to attacking opponents at their weak factors or blind spots. One of the issues lacking in the low-cost airlines in Asia right now is the ability to travel lengthy distance on the identical low worth provided for the short duration trips. AirAsia already has AirAsia X, which supplies this lengthy haul flight services, however, their destinations are limited as they solely go to the more well-liked nations such as London or Sydney. For that cause, one of many methods AirAsia may implement is to kind an alliance with low-cost airlines exterior of Asia like Virgin Blue. This technique will be additional explained later within the report. Bypass Attack:

This type of assault refers to diversifying into unrelated products or markets neglected by the opposite competitors. One of the methods AirAsia might diversify is by providing affordable accommodations at their locations. These accommodations may be supplied by Tune Hotels which is an related firm personal by Tony Fernandes, who can be the CEO of AirAsia. Travellers will see this as a price added service as not only would they have the power to get an inexpensive form of transportation but a spot to stay as nicely. The limitation of offering lodging is that it is financially infeasible to arrange a hotel in any respect of their present flight locations. As such, it will be better to start off by providing this service only at location the place it would be difficult to get low cost lodging, for examples in the metropolis areas of Japan. And as the corporate grow additional, it could start to expand on the placement where these hotels will be supplied.

Guerrilla Attack:
AirAsia can apply guerrilla assaults by launching small, intermittent hit-and-run attacks to harass and destabilize the chief. AirAsia can use
promotions for short intervals of time to attempt to steal clients from their opponents. One such example is when AirAsia had a 48 hours promotion between 28 Sept – 29 Sept 2009, the place they provided a 20% low cost on all seats, flights and locations. This is a very useful kind of attack for AirAsia due to their low cost benefit, as they’re in a position to maintain promotions, particularly discounted value promotion, longer than their competitors with a decrease misplaced in profit. The limitation of providing promotions is the reduction within the profit margin once they give discounted costs. However, this adverse impact could be minimized by putting the promotions at strategically moments, similar to only when opponents are providing promotions. Alliance with Virgin Blue and America

As talked about under the flank assault section, one of the methods AirAsia can assault their competitors is by offering a more extensive flight network outside of Asia. While AirAsia X is at present filling in this market of long haul flights for AirAsia, it is nonetheless not comprehensive sufficient and ought to be developed additional. Virgin Blue and Virgin America are low cost airlines operating in Australia and America respectively. By partnering with them, AirAsia would have the power to lengthen their locations into Australia and America. For instance, if a Malaysian traveller wished to go to Los Angeles, he would first take an AirAsia route to journey from Kuala Lumpur to Washington, DC, after which take a Virgin America flight to Los Angeles. The rationale for selecting Virgin America is because America is considered one of the prime locations in terms of worldwide vacationer arrivals as seen in the table under, which is in a position to only enhance with the rising Asian economic system. By becoming a member of along with Virgin America, AirAsia can capitalize on this present excessive human visitors circulate going to America.

While Australia does not fall under the top 10 worldwide vacationer arrivals nations, AirAsia ought to nonetheless give attention to the Asia to Australia route. This is because as China and India develop there might be a huge enhance within the number of international travellers, a majority of which would be made up of individuals that have by no means travelled outside the Asia area and even their nations. Thus, these folks, eager to style a culture completely different from Asia but do not need to travel to a distant location corresponding to America or Europe on their first journey, would select to go to Australia. The benefit of this strategy is that it will not only goal the Asian market segment who wants to journey to locales outside of Asia but in addition cater to the market phase exterior of Asia that wants to journey to Asia. The limitation of this strategy is that AirAsia would have to first form an alliance with low price airliners in those regions, which might be a tough process as confirmed by the already long list of failed airline alliance corresponding to Air Canada/ Continental Airlines and Saberna/Air France (Nigel Evans, David Campbell, George Stonehouse, Strategic management for journey and tourism, 2003)

Take advantage of the ASEAN Open Skies agreement
As talked about above, one of many issues AirAsia can do to remain aggressive sooner or later is to prepare for the ASEAN Open Skies settlement. With open skies within the ASEAN region, it will be imply that more routes are available for the airways. For AirAsia, this means that they would be able to fly to extra locations while taking shorter routes as they would not be faced with restriction from the countries in the ASEAN area from flying over them. The shorter routes implies that flights will take a shorter time to complete, frills such as providing meals could no longer be wanted and the frequency of AirAsia flights could be improve because the turnover fee is larger.

Thus, they might have the ability to scale back operational price, which translates to decrease prices, hence making AirAsia extra attractive to the consumers. The limitation to this strategy is that the Open Skies settlement applies to all airlines in the ASEAN area, that means that AirAsia would face even harder competitions when the settlement starts in 2015. However, because of the robust brand image and low price leader advantage AirAsia has, in the event that they were one of many “early movers”, they could grab a huge portion of this market. II. Capitalize on the company business

AirAsia have seen a recent increase in the numbers of corporations (almost double the last 3 years, as seen in the following web page table) buying and selling all the way down to low price airlines, this could possibly be due to the global economic downturn. As such, AirAsia should also be focusing on increasing their share in this corporate business market as this market tends have a extra constant source of demand unlike tourism which is seasonal and simply affected by external components, corresponding to in the case of the swine flu.

AirAsia’s seats offered to company shoppers: 2006 to 1Q09

Source: AirAsia

Loyalty programme
To capture this market AirAsia might start offering a rewards program. AirAsia may supply perks which are earned according to the amount of enterprise a company does with them. For instance discounted pricing or with the more regularly fliers, some extent system whereby the businesses might earn free flights if they amassed sufficient mileage. The limitation of this technique is that AirAsia would have to incur a lower revenue margin as they would now be selling at lower discounted costs. However, the professionals far overweight the cons in the case of AirAsia. Once again due to being the low value leader in Asia, the rewards program provided by AirAsia would doubtless be essentially the most engaging in comparability with the opposite competitors as they’ll offer higher perks, therefore they may easily turn out to be the market leader within the corporate flying market, making up for the decrease profit margin per seat by pure quantity.

To recap, the principle marketing challenge going through AirAsia in the meanwhile is the intense competitors that exist in the low price airline business. The strategies that AirAsia can implement to remain competitive are two pronged, to faucet into the Asian center earnings class and concentrate on the company businesses. They can capitalize on the Asian market by using market problem methods, standing out from the remainder by attacking their rivals. Finally, they will take benefit of the company businesses by offering a form of loyalty programme that might make it extra attractive for corporations to use AirAsia. Ultimately, the reason why the above methods would work is due to the low value chief benefit that AirAsia has. In order to survive in this market, AirAsia has to guarantee that they preserve their low price altitude.

Agricultural Marketing Information Systems in Africa

1. Briefly talk about an agricultural marketing info system utilizing figure 4.1 as a information.

Agricultural advertising information system in the info system utilized in gathering, analyzing and disseminating details about costs and other data related to farmers, animal rearers, traders, processors and others involved in dealing with agricultural merchandise. Market data methods play an essential position in agro-industrialization and meals supply chains.

2. How would possibly the South African system be seen as an effort at increasing market accessibility and competitive advantage?

The new system was designed to allow producers to best satisfy consumer demands, assist them in making deals with international brokers and distributors, and at the same time make a revenue.

In doing so, they had uncovered agriculture to the vagaries and demands of the worldwide system of trade. The coverage had been designed to make it easier for producers to export a range of products, supply larger market entry and at the similar time encourage farmers to increase their operations. The marketing data system was an effort to increase market accessibility and gain aggressive benefits at the international markets.

3. Assess the suitability of the Esoko system for Africa.

Studies carried out to evaluate the impression of Esoko companies revealed actual improvements in farmer incomes due to services corresponding to Esoko price alerts. This investment not only offers excessive social impression for small holder farmers, but in the longer-term, the platform has the potential to impression the data dissemination and total efficiency of agricultural worth chains in Sub-Saharan Africa. For occasion, it assist clear up info asymmetry or shortcomings and integrates smallholder farmers into the formal value chain by offering a strong communications infrastructure that allows smallholder farmers to be reached quickly and served inexpensively by way of mobile phones, a medium that is everywhere and easy-to-use.

The platform permits a quantity of stakeholders in the value chain to push crucial info to small-holder farmers similar to market costs, agronomic and training ideas, while also offering the flexibility to survey farmers to know their needs and desires.

4. Briefly discuss whether South Africa should have develop a system like Esoko rather than choosing a web-based resolution.

A internet primarily based resolution is a complex answer to a problem that might simply addressed by options that could simply be grasp by the farmers and the producers as properly. Given that in accordance with studies only 17% of the South African inhabitants have accessed to the internet. We could not also deny that South Africa have a low literacy fee. This also imply that the use of computer systems and internet wouldn’t that simple as anticipated for the farmers. On the other hand, system like Esoko can be simply digested. It is an easy connection for the farmer and producers that could presumably be simply unfold by way of the continent. Only the necessity of a easy mobile phone and a subscription for the case of Esoko.

Aggressive Marketing in Social Media

The in depth utilization of social media as an aggressive marketing tool has been noticed in many fields over the earlier couple of years. It is extensively thought of to be a reasonable, accessible and acceptable methodology of reaching out to target viewers by varied companies. Customers and customers also use social media as a platform to put forth their reviews, publish their queries and search solutions to their issues since it is only a single click or contact away.

In a rustic like India with an ever-growing inhabitants, it is innocent to assume that the market for healthcare services is very competitive.

India is among the top few international locations well-known for medical tourism. It is established that India has an enormous deficit in the number of hospitals compared to patients, intensely growing healthcare costs and dynamic demographics. It is high time that the nation begins to focus on utilizing a powerful tool like social media advertising efficiently to bridge the gaps so as to ship enough healthcare facilities to each citizen throughout the nation.

The objective of this paper is to look into varied features in which hospitals and healthcare service providers can make use of social media handles to promote well being associated schooling, join well being professionals with the basic public and bring about a distinguished change in health-related habits amongst the folks. This paper additionally appears into the function of social media advertising in customer service, high quality of service and customer loyalty with respect to hospitals.

A business proposal on direct marketing in social media

This paper is a research proposal about direct advertising within the social media. With the involvement with the error of computer systems, methods of managing advertising have been elevated. Each technique comes with its main benefits and constraints. This analysis proposal targets on evaluating the usefulness of social media in direct advertising.

The improvement of social media as a direct channel isn’t without its challenges. According to the examine, the highest two constraints for entrepreneurs came all the way down to in search of the most relevant techniques for gauging success and launching business aims.

Being capable of measure success is important for any direct advertising work, and that is why it is significant to not disregard this important step. With the right trappings, entrepreneurs can produce viral social media operations that can be track, restrained, and improved to maximise access and return on funding (Ellsworth & Ellsworth, 1994, p. 386). This analysis paper targets to establish how effective is managing direct advertising in social Medias.

(b) Scope of the study

        Social media is a treasured new instrument in a direct marketer’s toolbox, nonetheless it needs to be improved and utilised correctly to undertake the duties.

Creating it casual for purchasers to share publication or Web site content material over social grids is just the start. Direct marketers ought to enhance viral programs that completely exploit the system’s true capability. Finally, one must identify methods to measure their success, which can allow persons to fine-tune their exertions going onward.

Leveraging social media as a direct system additionally allows elementary tenure, which is crucial to capitalize on triumph across all sections.

Eradicating many homeowners not only rationalizes the follow, but also accelerates having one unified approach that can home the enterprise targets of a quantity of departments, corresponding to public relations, customer service, and gross sales. Clumsy management by numerous sections can result in diversified communications that hinder the company’s ability to draw followers, fans, or different influencers. Social media marketers comprehend the worth in directing targeted messages and gauging their success, which is why it’s not astonishing that many corporations are leveraging their e mail advertising departments to board on social media creativities. How to conduct the study

(a) Methodology: Research Philosophy, Approach, Strategy and Methods

         There are various approaches of acquiring data while conducting analysis. These methods of acquiring information discuss with as analysis methods. Research methods include personal interviews, literature searches, focus groups, and e mail surveys, phone surveys, speaking with folks and mail surveys. Literature search entails going by way of already sourced materials to acquire data. Materials which might be readily available with info are similar to newspapers, magazines, related trade publications, company literature, online supplies and some other related and already revealed supplies. This method of conducting research is certainly one of the most cost-effective strategies for conducting research. Online information is a fast analysis course of that lies underneath this class of data research strategies. It is very fast in acquiring data. Talking with folks is one other good technique of gathering info for a project. It is most relevant at preliminary stages of conducting research for a project. It is generally most popular when looking for the knowledge that’s not publicly out there (Cohen& Morrison, 2003, p. 179). To obtain adequate info on the effectiveness of directing advertising in social media selected to make use of various methods for sourcing the data, each strategy of obtaining the information is analysed under and its effectiveness and effectivity on info ship.

The info to be research will be too new once more to be got in literature assets, therefore, preferring to search for it from actual persons. For example, speaking with folks shall be through seminars, affiliation meetings, customers, suppliers, and all other forms of business conversations. A focus group is worried with a examine to explore people’s attitudes and ideas. It will be used to acquire information about one thing new available within the market and effectiveness of social media in promoting its consciousness. Group focus technique obtains the data from a particular group of the people called the pattern. The information acquired could presumably be primarily based on the process of selecting a pattern. The most preferred technique for pattern selection is a random selection; that is most popular as a outcome of, all the characters stand an equal probability to be choose. Email and web analyses are comparatively authentic and few is on the market concerning the end result of sampling bias on internet surveys. While it is noticeable that internet survey most regards effective and quickest means of dishing out a examine, the demographic outline of the web handler will not represent the overall population, though this is altering. Before doing an email or web examine, One shall fastidiously contemplate the impact that this bias may need on the results. Social media embrace similar to Facebook, twitter, eBay amongst many others. They are pleasant in nature and this reduces the might processes of formalities needed. In social media, personal conduct with a client is ensured; a person can talk directly to the client and therefore reach him or her in a better way to clarify her or him about his merchandise.

Personal interviews are a way to get detailed and all-inclusive data. They engage one individual interviewing one other person for individual or comprehensive data. Personal interviews are very expensive because of the person-to-person nature of the interview. Normally, as an interviewer, I will ask questions from a documented questionnaire and list the solutions word-perfect. Occasionally, a questionnaire is merely a listing of topics that the examine wants to discuss with a business skilled. Personal interviews due to their expense are on principally used solely when subjects are not probable to react to different survey techniques. This will enable the researcher to get information about the effectiveness of direct advertising from individuals that I would not have got by way of another analysis methodology.

Telephone surveys are the fastest method of collecting info from a relatively cumbersome pattern. As an assessor, I will observe an organized writing that’s essentially equivalent to a written questionnaire. However, different from a mail survey, a phone survey would allow the prospect for positive judgement looking out. Telephone surveys usually last fewer than ten minutes. Typical costs are between four and six thousand dollars and they can be achieved in two to four weeks. Mail surveys are a price present means of amassing info. They are greatest for big sample quantities, or when the sample is sourced from a large geographical area. They cost a little less than telephone interviews, however they take over double as long to finish normally, eight to 12 weeks. Since there is no interviewer, there is not any probability of interviewer prejudice. The foremost shortcoming is the incapability to review respondents for more full information.

In conducting research on social media advertising, one wants to outline the target group nicely. The goal group shall be outlined clearly, as a result of the mode of promoting will be a framed in a approach to go nicely with it. By conducting good analysis, data that’s the most elementary for a set type of advertising will be acquired. It is nice to note that even time and the greatest way of selling chosen dictates the goal group of managing the advertising. Social media marketing offers a large geographical commercial. Social Medias is essentially the most essential boards the place a person can meet a really large variety of people from completely different ethnic groups. It may be very easy to seize the goal group inside a really short as opposed to all different channels of advertisement.

3.0 Why is there need to study this topic

3.1 Contribution to the field

       While some firms perceive social Medias as mere channels for building knowledge on merchandise, there is proof that direct entrepreneurs are competing to possess big demand era potential. The evaluation outlines the “land grab” that is going on in organizations over regulation of social media; with 29 per cent of respondents say social media is being shared by many departments. However, possession by direct marketing acquires the highest with 36 per cent of respondents. As the setting of reference, solitary 9 p.c of respondents suggest public relations sectors personal that social media. That social media is a workable and influential direct channel is vibrant. Nevertheless, the evaluate also exposes social media’s robust linking with e-mail promoting. In fact, 66% of salespersons plan to assimilate the 2 channels in 2009. This transfer wholly makes logic: Email is an important part of social media, as it is relied upon to keep members educated concerning the up-to-date news and informs. Additionally, assimilating the two networks permits entrepreneurs to get a extra opinions of the customer, which is necessary for conveying effective and related communications (Bird, 2000, p.126).

Direct mail is a posted mail that publicizes one’s business and its items and providers. There are many various classes of junk mail. For instance catalogues, postcards, envelope mailers. Direct mail operations are sometimes, despatched to all supply customers in a zone or to thoroughly clients on a advertising list. Telemarketing entails contacting viable customers by way of the phone to sell services or products. Telemarketing is skilful of generating new buyer prospects in huge bulks. Nevertheless, a fruitful marketing campaign entails scheduling and using right and well-researched buyer data to match buyer profiles to product profiles. Email advertising is a cost-effective, simple, and measurable methodology of reaching shoppers. It can embody e-newsletters and promotional emails to create new leads or deals for existing purchasers, or ads that can perform in different business’s emails.

3.2 The significance of the study

        The research is essential, as it might examine social media as a forum for conducting direct marketing. Through the examine additionally one gets to know a quantity of contributions of various strategies in giving information about social media. By researching on direct marketing and social media, one gets to appreciate its effort in rising the information of different merchandise of a business. The examine will permit entrepreneurs in selecting probably the most applicable methodology of product promotion sooner or later.

Social media can be used successfully as a advertising device for business as it gives somebody an opportunity to work together immediately with his/her clients and sometimes share vital services or products info. Consider growing a profile for a enterprise firm that allows one to promote your services while also cheering customers to ship feedback by leaving feedback; that is the recommendation from one of many social network house owners. It is of very nice significance to undertake direct advertising in social media (Sheehan, 2010, p. 45).

Taking a lesson from directing advertising, social media advertising is greatest served only by specializing in actions that end in measurable results. If individuals imagine that business page gathers fan with higher affinity to the brand, maybe researchers can even consider that we would not be able to measure the effects of that brand loyalty it in a way that is notably satisfying. It is for more productive to consider social media as a direct advertising system, and create campaigns and observe ends in a way that is related to direct advertising. Not all clients are created equal. Some customers fall into what entrepreneurs check with as ‘heavy user’ category. These prospects buy services or products with the very best profit margin or simply frequent one’s business more typically than the common. This important group is probably the most priceless asset and one in all probability wish you had extra like them. A business grows because of trusted customers and nicely crediting policies. Through direct advertising, it might be very simple to create consciousness of the existence of your small business establishment. Social media supplies an setting to conduct direct marketing that help to improve on gross sales (Zarrella, 2010, p. 109).

In direct advertising, we know that folks are most likely to befriend with others who’re much like themselves; they stay in the identical neighbourhoods, interact in related actions, and so forth. This tendency makes concentrating on profitable clients much simpler. Most buyer databases are transactional in nature. They capture sales, product numbers, and buyer names. They don’t, nevertheless, assist to create messages or track results. To make issues monitoring effectively, one will want to connect the nationwide area to your customer data, which makes note of their social media affiliation. As new clients are acquired, it is useful if coupons or specials that the new customer would possibly use are tracked again to a social media outlet, permitting you to see outcomes over time. In addition, one might be able observe results that provide some substance to the true contribution that larger model loyalty of social media followers offers to your business. This offers a glimpse of how direct advertising in a social media, is useful in monitoring customers (Kotler & Armstrong, 1991, p. 283). Timeline of the study

         When the objective is to supply a fast response to a coupon or incentive, conventional direct marketing channels are one of the best. Coupons carry out well online, however conventional media guidelines up higher. Nevertheless, one can use social media to add significance to the customer interaction by lashing target customers to interactive and participative website or any other informational areas. This adds worth to the usefulness of direct advertising within the social media, based on earlier research proposal (Evans, 2008, p.19). Effectiveness of undertaking the duty:

           The research proposal is ready complete enough to cater for calls for for a marketer in conducting research. The different methodology employed would ensure every detail concerning directing in social media is realized by the analysis. This analysis methodology lacks discrimination of standards or organizations to ensure that it might supply for the data from all teams and ranges of individuals in the world. The speed and accuracy of obtaining the information are ensured within the research proposal via using new technologies and electronic devices similar to computers within the analysis. These digital devices would guarantee secure storage of information for reference reasons. It additionally provides a fast accessibility of information for the reason that storage is convenient to retrieve quickly. This would guarantee researchers the boldness of carrying out the duty successfully.

Whichever means one approaches it, the usage of enterprise social networks may be very doubtless a side in some side of your advertising plan (Sargeant & West, 2001, p 113).

6.0 Ethical issues in advertising and social media

            The advantage of business making the product and to their prospects via using on-line support forums is evident. The difficulties are solved as a rule by different customers, lowering the overall support expenses. While product inventors do an honest career of testing and anticipating points, given the problem of real life, they only cannot match a span of utility environments which would possibly be prone to exist. Unexpected errors happen. Proceeding to on-line help, the one actual answer is a name to customer service. The difficulty is, although, that not solely is direct and personal customer assist crew is commonly unable to breed the issue for the precise purpose it occurred within the first place: they fail to have a specific set up or environment that their products have been deployed in (Hofacker, 2001, p. 831).

The extent to which direct marketing is beneficial to an organization growth could be very important. The main contribution of social media is that it facilitates to deliver awareness of services and products to people. Social media additionally serve to offer a large geographical coverage in advertising (Tuten, & Solomon, 2013, p 78). In the case of analysis on the enterprise, social Medias also present readily available information. Direct advertising is cost effective when accomplished in the social media relatively to when carried out by different channels (Zimmerman, 2013, p. 311). It’s was free to create an advert in a social media page and the data reaches many individuals inside much less time. Direct advertising in social media would additionally help to improve on clearing the present bias of a product. A bias a few product may quantity from false details about a product principally generated by the competitor. The list on usefulness of direct marketing in social media marketing cannot be depleting. For a profitable growth in market dimension, direct advertising in social Medias is the most applicable strategy (Raab, 2010, p. 99).


Bird, D. (2000). Commonsense direct marketing. London: Kogan Page.

Cohen, L., Manion, L., & Morrison, K. (2003). Research methods in training. London: RoutledgeFalmer.

Direct Marketing Design: The Graphics of Direct Mail and Direct Response Marketing. (1985). New York: PBC International Inc.

Ellsworth, J. H., & Ellsworth, M. V. (1994). The Internet business guide. New York: Wiley.

Evans, D. (2008). Social Media Marketing: An Hour a Day. Indianapolis, Ind: Wiley.

Hofacker, C. F. (2001). Internet advertising. New York: Wiley.

Journal of Direct Marketing. (1987). New York, N.Y.: John Wiley & Sons., Inc.

Kotler, P., & Armstrong, G. (1991). Principles of promoting. Englewood Cliffs, N.J: Prentice Hall.

Raab, G. (2010). The psychology of promoting: Cross-cultural views. Burlington, VT: Gower.

Sargeant, A., & West, D. C. (2001). Direct & interactive advertising. Oxford: Oxford Univ. Press.

Shaw, K., & Emily H. Davis Art Gallery (1978). Market research. Akron, Ohio: Emily H. Davis Art Gallery.

Sheehan, B. (2010). Online advertising. Lausanne: AVA Academia.

Smith, P. (1995). Direct Marketing. Hampton, Middlesex [England: Key Note Publications.

Tuten, T., & Solomon, M. (2013). Social Media Marketing. Boston: Pearson.

Zarrella, D. (2010). The Social Media Marketing Book. Beijing: O’Reilly.

Zimmerman, J., & Ng, D. (2013). Social Media Marketing All-in-One for Dummies. Hoboken, NJ: Wiley.

Source document

A marketing strategy in transportation industry

This demonstrates of a business plan in cargo and parcel transportation. This type of the enterprise requires lots of capital to venture into it. Firstly, transportation machinery similar to motor autos, motorcycles, trains, aeroplanes and different gear for transport are costly to amass. The enterprise is client primarily based. By shopper based, it signifies that, the business relies upon completely on shoppers as prospects for its survival. It is a superb challenge to get clients for a brand new enterprise. People would prefer to move via people whom they’ve labored earlier than with, and created a confidence on them that they’re trusted individuals.

The goal of the enterprise is to make sure efficient, efficient and buyer satisfaction in transportation of client’s goods. Beginning a brand new enterprise is faced by a quantity of challenges. It would require a quite market research earlier than kicking off the enterprise. Marketing analysis would imply employing skilled in advertising to assist the enterprise enterprise strategically in the market. Employing professional in advertising to conduct a research is expensive for a business especially in its onset, therefore, a great problem to the beginning of the business (Barnhart, 119).

Transportation of parcels and cargos is a business that cannot fail to happen at no matter value it’d imply. People will always keep on exchanging parcels, people and companies will all the time transact in cargos. The enterprise of goods transportation will all the time be there as lengthy as the world and people exist. The greatest problem to this new enterprise is how to get shoppers and source of the capital to start the business.

In acquiring prospects for this business, a quite advertising shall be entailed. Such advertising could also be contacted by way of advertising in tv channels, personal approaches to different firms and holding enterprise talks, billboard advertisement in metropolis centres and all other associated such advertising strategies. Not every other business would survive without suppliers. A business needs suppliers for its inventory, equipment or machinery. Most, a company primarily based on transportation and logistics would wish a bunch of suppliers for it to survive. For an easy enterprise in the market, a business may choose to collaborate with one other established business, to win a large market within a quick while. In addition, collaborating with one other business that latter business act, as complement to what it offers would imply strategic kick off a enterprise. The enterprise underneath discussion focuses on merging with one of the airways company within the city to market itself. In the market there are several business providing the identical providers. These are actually the real to competitors to the business (Abrams, 18).

There will always be competitors to a business; rivals may both be direct or indirect competitors. Direct competitors are those who provide similar providers and items to these who another enterprise is offering. On the other hand, oblique rivals are the ones that supply substitute products to folks who one other business is providing. The firm shall be well construction to counter with the opponents providing the identical companies out there. Amongst the measures at hand to take care of competition are, relatively decrease charges. This would help to draw more shoppers to the company. Increased shoppers means elevated clients hence, elevated output of this business. Relatively lower costs, is another strategy that will assist to scale back the payback interval or time of our enterprise project.

It could be very essential for a enterprise to have an surroundings that’s conducive for its success. By engagement into company social obligations, the enterprise won’t ensure a health social surroundings for itself, but in addition act as way of selling itself. Through involvement in company social duties, the business creates a good shape to the people. It can additionally be a method of publicizing a business. Both political and social setting must be maintained by the company. Our firm could have at hand all proper and legitimate documentation for its legality. By having a business imaginative and prescient and mission, it’ll create a source of inspiration and centre of focus both to the staff and the shareholders to the company.

The strategy to ensuring the business is a hit is evident enough. Due to wise choice of the enterprise to collaborate with, will most likely be simple for the enterprise to start out at excessive gear. Firstly, there’s a prepared market for to transport, it is because we are collaborating with an airline firm. Our firm will execute all the transactions involving transport by the particular airline. We additionally have to have strategic location of our places of work. All places of work to the corporate are found throughout the city centre. This implies that they’re highly accessible to the purchasers. Simple and clear phrases of the contract with the client will also quicken the conduct of the transactions of the corporate. These simply but a few of the strategies put in place to guarantee that the company will be successful in its endeavours. Good and clear communication is another main factor for successful of every business. Communication inside the firm shall be made as simple and clear as a lot as possible. Delegation of duties from directors to the casual worker will create an excellent management within the organization. Through delegation, a powerful teamwork and network of workers shall be maintained in the group. This will ensure that the organization maintains good and clear communication skills. Good communication improves employees productivity, therefore an increase within the common output of the company.

It would be a great problem of to get capital to begin the enterprise. The company has therefore to portray an excellent strategy for it to draw individuals to be shareholders or financiers. A good business plan can be used to draw a capital borrowing in some government companies that lend out finances to motivate entrepreneurship. The business technique is evident and comprehensive enough to face a chance to win capital borrowing from any funding bank or government coverage. This is a method of promoting the company’s thought to the potential investors (Karin, 313).

In conclusion, people share a lot in frequent, yet are so magnificently totally different. They assume differently; they’ve different and generally competing values, motivations and aims. It’s subsequently very important to check the nature of the people so as to reside peacefully with them to keep away from confrontations with them. This similar case applies to all enterprise ventures. A business must conduct a viable market research before kicking off. Good market research would help a business recognise its energy and weaknesses. It will increase on strengths and try to minimise on the weakness, via this, a strong enterprise idea could be understand that might see any enterprise enterprise a hit.


Abrams, Rhonda M. The Successful Business Plan: Secrets & Strategies. Palto Alto, Calif: Planning Shop, 2003. Print.

Barnhart, Cynthia, and Gilbert Laporte. Transportation. Amsterdam: North Holland, 2007. Print.

Jo?eveer, Karin. Sources of Capital Structure: Evidence from Transition Countries. Tallinn: Eesti Pank, 2006. Print.

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8 PS of Service Marketing

People are an important factor of any service or expertise. Services are usually produced and consumed at the identical moment, and elements of the client expertise are altered to meet the ‘individual needs’ of the particular person consuming it. Most of us can think of a state of affairs where the private service offered by people has made or tainted a tour, vacation or restaurant meal. Remember, individuals buy from people who they like, so the perspective, expertise and look of all staff must be firstclass.

Here are some ways by which individuals add value to an experience, as a part of the advertising mix – training, private selling and customer service. lace Most shopper goods are bought from a retailer, who buy them from a wholesaler/distributor, who purchase them from the manufacture. If the goods have been imported there might be extra merchants in this distribution chain. Sometimes, this distribution chain could be bypassed or leapt over. In the safety trade, some manufacturers of safety systems promote their product instantly to finish users at the identical time as promoting them to security set up companies concurrently selling them to national distributors.


The point is that these completely different distribution channels can present different ranges of profitability they usually can fairly happily run alongside each other offered a well thought through pricing strategy has been decided upon. For example a shopper is prone to want only one variant of your product and count on to buy it immediately. A retailer is prone to want limited inventory of numerous variants and not count on to pay for 60 days.

A distributor is looking at massive volumes of product in all its variants at significantly discounted rates.

Read what is more important our privateness or national security

Your ditribution coverage must take account of those variables. If it doesn’t, then you will find your self in a really embarassing position with a buyer sooner or later which would outcome within the loss of a sale. The complication to this method however is that you want to consider the fact that your ‘customer’ may be a client, a retailer or a distributor and that each of these customers might be looking for perhaps totally different options or different ranges of service. People An important ingredient to any service provision is the usage of applicable employees and different people.

Recruiting the proper employees and coaching them appropriately in the supply of their service is important if the organisation needs to acquire a form of aggressive benefit. Consumers make judgments and ship perceptions of the service based on the employees they work together with. Staff ought to have the appropriate interpersonal expertise, aptititude, and service information to offer the service that consumers are paying for. Many British organisations goal to apply for the Investors In People accreditation, which tells consumers that staff are taken care off by the corporate and they are skilled to sure requirements.

Process Refers to the techniques used to assist the organisation in delivering the service. Imagine you stroll into Burger King and you order a Whopper Meal and also you get it delivered within 2 minutes. What was the method that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards mechanically when their customers old one has expired once more require an environment friendly process to identify expiry dates and renewal. An efficient service that replaces old bank cards will foster consumer loyalty and confidence within the firm.

Physical Evidence

Where is the service being delivered? Physical Evidence is the component of the service combine which permits the consumer again to make judgments on the organisation. If you walk into a restaurant your expectations are of a clean, pleasant surroundings. On an aircraft when you travel first class you anticipate enough room to have the ability to lay down! Physical proof is an essential ingredient of the service mix, shoppers will make perceptions based on their sight of the service provision which can have an impact on the organisations perceptual plan of the service.

Product –

The product in service marketing combine is intangible in nature. Like bodily merchandise similar to a soap or a detergent, service merchandise cannot be measured. Tourism trade or the training trade can be an excellent example. At the same time service merchandise are heterogenous, perishable and cannot be owned. The service product thus needs to be designed with care. Generally service blue printing is finished to outline the service product. For instance – a restaurant blue print might be prepared earlier than establishing a restaurant enterprise.

This service blue print defines exactly how the product (in this case the restaurant) is going to be.

Place –

Place in case of services decide the place is the service product going to be positioned. The finest place to open up a petrol pump is on the highway or within the city. A place where there’s minimal traffic is a wrong location to begin a petrol pump. Similarly a software company might be better positioned in a enterprise hub with a lot of companies nearby quite than being placed in a town or rural area.

Promotion –

Promotions have turn out to be a critical factor in the service advertising combine.

Services are simple to be duplicated and hence it is usually the model which sets a service aside from its counterpart. You will find plenty of banks and telecom companies promoting themselves rigorously. Why is that? It is as a outcome of competition in this service sector is generally high and promotions is critical to survive. Thus banks, IT firms, and dotcoms place themselves above the remainder by advertising or promotions.

Pricing –

Pricing in case of services is rather more difficult than in case of products.

If you have been a restaurant owner, you possibly can worth people only for the food you’re serving. But then who can pay for the good atmosphere you have built up for your customers? Who pays for the band you’ve for music? Thus these parts have to be considered whereas costing. Generally service pricing includes bearing in mind labor, materials price and overhead costs. By adding a profit mark up you get your ultimate service pricing. You also can examine pricing strategies. Here on we start in the direction of the extended service marketing combine.

People –

People is probably considered one of the parts of service advertising combine. People define a service. If you have an IT firm, your software program engineers outline you. If you might have a restaurant, your chef and service workers defines you. If you’re into banking, workers in your department and their habits in the path of clients defines you. In case of service advertising, folks can make or break a corporation. Thus many corporations nowadays are concerned into specially getting their staff trained in interpersonal expertise and customer service with a spotlight towards customer satisfaction.

In reality many firms should undergo accreditation to show that their workers is healthier than the remainder. Definitely a USP in case of services.

Process –

Service process is the finest way in which a service is delivered to the end customer. Lets take the example of two superb companies – Mcdonalds and Fedex. Both the businesses thrive on their fast service and the explanation they can do that’s their confidence on their processes. On high of it, the demand of these companies is such that they need to ship optimally without a loss in quality.

Thus the method of a service firm in delivering its product is of utmost significance. It can additionally be a important element within the service blueprint, whereby earlier than establishing the service, the corporate defines exactly what ought to be the process of the service product reaching the tip customer.

Physical Evidence –

The last component in the service advertising mix is a vital element. As said before, companies are intangible in nature. However, to create a greater buyer expertise tangible parts are also delivered with the service.

Take an example of a restaurant which has only chairs and tables and good food, or a restaurant which has ambient lighting, nice music along with good seating association and this also serves good meals. Which one will you prefer? The one with the great ambience. That’s bodily evidence. Several occasions, physical evidence is used as a differentiator in service marketing. Imagine a non-public hospital and a government hospital. A non-public hospital could have plush workplaces and well dressed staff. Same cannot be stated for a government hospital. Thus bodily proof acts as a differentiator.

Air Asia Marketing Strategy Analysis


AirAsia Berhad is a low-cost airline provider based in Kuala Lumpur, Malaysia. It is the largest airline in Malaysia by the number of planes operated. It began in Malaysia and soon expanded to different Asian nations like India and Thailand. AirAsia was established in 1993 and commenced operations in 1996 and it operates scheduled home and worldwide flights to over 165 locations spanning 25 nations. Its main hub, Kuala Lumpur International Airport 2 (klia2), is constructed to permit seamless connectivity for native and international low-cost and full-service carriers.

Klia2 officially opened on 2 May 2014.

According to World Airline Awards, Air Asia is ranked first for one of the best low-cost airline on the earth for 2019. This marks the 11th yr for Air Asia for emerging as the highest.

Marketing Strategy Analysis

AirAsia is completely different as compared to other low-cost carriers due to the marketing of their merchandise. It is pioneered in low-cost touring. According to the founder of AirAsia, they have discovered alternative ways to gain an edge in advertising.

They tried routes that nobody has accomplished before and from one flight a day, they have now reached 22 flights a day. (Singapore Business Insider, 2018) Their vision is “To be the biggest low-cost airline in Asia and serving three billion people who are currently underserved with poor connectivity and excessive fares”. Through their core belief which is “Now everybody can fly”, they have managed to realize a bunch of loyal customers. Due to all these underlying elements, AirAsia turned a really nicely established model in Asia.

AirAsia has additionally gained the Best Marketing Campaigns at the ASEAN Tourism Association (ASEANTA) Awards for Excellence.

They managed to win this award as a end result of their “Think ASEAN, Think AirAsia” campaign. The campaign features a photograph lookbook and devoted posts of must-see spots in ASEAN via web-based networking media and Travel 3sixty on-line platform, featuring AirAsia’s ASEAN-propelled inflight menu and a YouTube video association on activities and delicious meals to eat in all of the ASEAN nations, supported by promotional fares which go as low as RM10 to all Asian nations. (The Edge Markets, 2017) Other than successful the best advertising campaign,

they have also been voted the Skytrax World’s Best 100 Airlines for 2019 by airline customers around the world.

Analysis of 4Ps


The core product for Air Asia will be its low-cost flight charges and offering customers with more than a hundred sixty five locations to choose from in 25 nations.

Facilitating products are services or goods that should be current for the customers to make use of or experience the core product. AirAsia’s facilitating product would be its website, plane, completely different courses of seats to cater to completely different consumer’s wants and desires. The check-in counters and the self check-ins/online check-ins play an essential function in supporting the core product as nicely.

All these facilitating merchandise present ease when checking in, also fulfilling the consumer’s physiological needs (Maslow’s Hierarchy of Needs). Even with all these different selections/upgrades, Air Asia nonetheless supplies minimal worth difference to meet its focused vacationers, price-sensitive travelers.

Supporting merchandise are further services which are offered to add value to the core product and are used to differentiate the corporate from the others. It is to offer a aggressive edge over the other low-cost airways. For instance, AirAsia presents the AirAsia Premium Red Lounge which has an space the place their guests are capable of chill and relax in addition to continue their unfinished business earlier than resuming their flights on AirAsia. It has many services such as free WiFi to surf the internet, work station space to catch up on their work, charging space to cost their electronic devices, meals and beverages, and VIP rooms etcetera. The amenities and amenities provided at the Premium Red Lounge will help to improve the guests’ expertise earlier than their visitors take off. It will assist AirAsia outshine its competitors by creating a snug house for their friends to fulfill their needs and wants.

The augmented product includes atmosphere and consumers’ interplay with the service organization and each other. In Air Asia’s Airbus A330, they offer premium flatbed seats where it may be transformed to a full flatbed when desired and different features such as complimentary meals, priority boarding, inflight leisure, and lounge access which can provide comfort for travelers on board, especially for long-haul flights. The twin seats offered by Airbus A330 also caters to couples and best friends with no center seat, these vacationers can get to get pleasure from most privateness with one another.

These options permit travelers that are touring with AirAsia to have a extra comfy and unique experience despite being a low-cost carrier airline.


AirAsia’s fundamental product strategy is predicated on low-cost services. It is understood for its low-cost and reasonably priced price to numerous destinations. AirAsia would often set an extremely low worth for flights to new destinations so as to seize a large mass of market share. The low fares supplied would be proficient sufficient to draw numerous prospects who are worth delicate.

For AirAsia, a two-way flight from Kuala Lumpur to Bangkok prices about S$276.20 (Figure 1.0) whereas, for Scoot, another low-cost carrier operating in Asia presents a two-way flight during the same time frame on the value of S$350.forty (Figure 2.0). This comparison exhibits that AirAsia provides a decrease value as compared to Scoot, by S$80, which is comparatively lesser and more value.

Internal components that will have an affect over AirAsia pricing could presumably be the products and services offered In return for the low fares, AirAsia offers no-frills companies, frequent flyer miles or airport lounges. They additionally do not supply complimentary drinks or meals, as a substitute, they promote meals and drinks at an inexpensive value onboard. Another factor might be their costs. By bargaining for low lease charges, they have managed to attain low mounted costs for its long term maintenance contracts and low airport charges. This permits AirAsia to scale back their expenses and investments in machinery in the absence of fringe services.

External factors would include competition, nature of the market, and demand. As there are other low-cost carriers current in the market, this will likely cause a threat to increase competition between these low-cost carriers. Hence, AirAsia has to provide you with new strategies in order to stand out from its competitors. With aggressive pricing, the airline will then be capable of successfully differentiate themselves from its opponents and appeal to customers who’re looking for cheaper and value options.

Place (Distribution Channel)

AirAsia distributes its fares and ancillary services by way of a worldwide distribution channel generally known as Travelport GDS. This allowed them to increase their low fares to even more travelers via GDS. Travelport-connect brokers are capable of search and e-book airline tickets at competitively low costs and customary ancillaries corresponding to check-in luggage and superior seat choice. AirAsia has been also partnered with Expedia and AirAsia Go. Both are journey portals that permit passengers to guide flights and motels on-line. In addition, additionally they have 161 sales workplaces across Asia for the comfort of walk-in customers.


Promotion is the publicizing of a product, organization, or enterprise to extend sales or public consciousness. Promotion includes 4 completely different classes that are advertising, sales promotion, private selling, and publicity. For instance, under the class of gross sales promotion, Air Asia has been having the “Best Deals from Singapore” promotion. This promotion presents lower flight charges to chose locations such as Kuala Lumpur, Bali, and Bangkok. Air Asia has additionally been advertising their company through various social media platforms similar to Instagram and Facebook. Their commercials have at all times been very enticing and attention-grabbing by using pink and placing.

Key Challenges


Competitors of AirAsia embrace different working low-cost carriers similar to Scoot, Jetstar. AirAsia’s primarily operates in Malaysia, its unique and most worthwhile market, which is now disrupted as its rival low-cost carrier group Lion launched Malindo Air. Malindo Air competes for the same group of customers, particularly those which are price-sensitive. LCCs usually function across the same market and offer comparable costs. As such, AirAsia would have to ensure that they preserve a competitive edge over different current LCCs because the promoting point is affordability. Cost is another issue that affects LCCs. Security charges and landing expenses are extra prices that each one airlines are subjected to pay to find a way to land or take off in an airport. These turn out to be a risk to airlines, especially LCCs as they mainly tap on value discount thus these further costs may hinder their cost and have an result on their profits. For example, Changi Airport expenses SGD21 for every person who departs from Singapore. Low-cost carriers will then should compete and implement methods to attenuate the influence of extra charges to keep costs low to allow them to supply low prices to clients.

Consumer Behaviour

Nowadays, consumers’ habits is changing into extra dynamic. There are many types of journey function and period, brief and lengthy, and as there are many countries all over the world, the demand to journey to extra unique locations can be rising. When the demand for normal travel destinations decreases, airways should change their method and permit extra flights to a brand new and fascinating vacation spot. If an airline fails to do so, they may make a loss as potential consumers will choose another airline that offers what they need. Consumers’ behavior differs based on totally different market segments corresponding to family, an individual, retirees, and lots of others. It is troublesome for an airline to fulfill the demand for these shoppers.

Business group

AirAsia’s primary market group is comprised of leisure vacationers. In this case, they’re missing out on profiting off enterprise travelers. Leisure travelers’ demand tends to fluctuate based mostly on seasonality as nicely as the economic system. This means that they are not as steady when compared to Business travelers and lose out on potential income.



There has been a rise in oil value and this is a chance for AirAsia. Compared to other carriers, low-cost carriers like Air Asia require much less oil to function. This is because high-cost carriers are normally bigger than low-cost carriers. Hence, low-cost carrier’s oil will still be decrease as compared to other high-cost carriers. They can use their decrease price as a bonus and worth their tickets strategically to attract extra price-sensitive customers. This is a chance for all low-cost carriers so, with the best planning and pricing, Air Asia will be in a position to have a aggressive edge over the opposite low-cost carriers.

Strategic Partnerships

AirAsia’s strategic partnership with Palantir, an information analytics firm. The goal of this strategic partnership is to boost operations” effectivity and implement tailor services which may be more customer-oriented and data-backed. Data is the most important asset retailers personal hence it’s important that they make full use of it by completely analyzing them to make use of it to their benefit. Overall, these partnerships are highly helpful as both parties are capable of leverage off each other and be in a position to improve model visibility and status.

Marketing Target Strategy

One of the marketing methods that AirAsia use is the AirAsia ASEAN move. For example, prospects have the option to choose the blue or red pass which presents 10 and 20 credit respectively such as paying $209 for a 10 credit score cross. How it actually works is that with the cross, prospects pays for their flights when it comes to credit score. When they start to use the credit score, the remaining credit must be spent inside the given time interval the cross has. The cost to travel to ASEAN countries ranges from 1 or three credits. This enables the customers to save lots of some big cash as a one-way flight from Kuala Lumpur to Bali can value up to $496.32 (Figure 3.0) however using the cross will only value three credit and there’ll still be remaining credit score to make use of. It also allows customers to properly plan their journeys as they have to make use of it inside the time-frame. Customers aren’t allowed to travel to the identical vacation spot utilizing the identical move more than once. This technique attracted many purchasers, especially those who are price-sensitive, for AirAsia because it seems like a very good deal. In addition, this cross helps to advertise AirAsia’s guests to travel to Asian international locations which help to boost awareness of Asian countries.

Can include this move is aimed at people who travel inside the Asian nations a lot. People that go backpacking throughout Asia. Those who might want multiple locations for holidays. People who journey between Asian international locations lots for work.


AirAsia focuses on working sustainably and efficiently in numerous features of its operations.

Ensuring that boarding passes are printed on thinner papers, encouraging online check-ins. Tapping on the pre-purchased meal so that meals wastage is saved at its minimum and only served to passengers who actually wish to eat in-flight meals only. Furthermore, in early October 2018, Air Asia, introduced a new policy to scale back the utilization of plastic on-board by encouraging passengers to complete their meals in order that there won’t be a need for plastic bags to carry their meals when they’ve alighted at their destination. Apart from the minute elements Air Asia also locations emphasis on the plane itself and the quantity of gas consumed per flight. Since 2016, they have been conducting a careful selection of extra fuel-efficient aircraft to join its fleet. For instance, Airbus A320 Neo has a technology that saves 15% on gasoline consumption compared to the unique A320.


  • Allow move holders to e-book flights as much as 5 days from departure.

With the pass now, move holders usually are not capable of make last-minute bookings because the pass solely allows the reserving of flights a minimal of 14 days earlier than departure. Therefore, allowing move holders to e-book flights up to 5 days from departure will make it extra convenient for them to e-book flights and plan their schedules. This will also make it more versatile for pass holders to plan their holidays at once.

  • Open up extra number of flights for pass holders

Not all flights can be found for move holders. The flights available are principally early morning flights or late night flights. Therefore, it may be inconvenient when touring with associates or members of the family that do not personal the ASEAN cross as move holders don’t get the same flight options as everybody else. The restricted flight availabilities will make the cross advantages appear much less attractive because it doesn’t present flexibility to the move holders. AirAsia could alter the choice of flights for pass holders to have a fixed number of flights selection all through the day every day.

  • Show the flight redemption availability

AirAsia doesn’t present the number of flights left for redemption which may be very inconvenient if one is planning to travel with household or friends. As pass holders are restricted to one redemption at a time, if the selected flight has just one redemption left which has already been redeemed, their pals with the Asian Pass may danger the possibility of redeeming the same flight. Hence hampering their touring plans.

The above suggestions are aimed to make the AirAsia ASEAN Pass appear extra attractive and worth for cash. Many enhancements can be made to this advertising campaign as the shortcomings of the campaigns may make it appear to be a gimmick rather than a price for money deal.


In phrases of selling methods, Air Asia has been rather successful in their marketing methods for occasion, creating a cellular utility that’s user-friendly. Despite being the world’s best low-cost provider airline, Air Asia continues to be planning to expand its fleet in 2019 by adding 25 planes in addition to introducing new products to customers.

Marketing startegies of kfc

Harland Sanders was born in 1890 and raised on a farm outside Henryville, Indiana. His father died when he was five years old, forcing his mother to work at a canning plant, and leaving her eldest son to care for his two younger siblings. After he reached seven years of age, his mother taught him how to cook. After leaving the family home at the age of 12, Sanders passed through several professions, with mixed success. In 1930, he took over a Shell filling station on U.S. Route 25 just outside North Corbin, a small city on the edge of the Appalachian Mountains.

It was here that he first served to travelers the recipes that he had learned as a boy: fried chicken and other dishes such as steaks, country ham, and pancakes. Originally using his own dining room table, in 1934, he purchased the larger filling station on the other side of the road and expanded to six tables By 1936, this had proved successful enough for Sanders to be given the honorary title of Kentucky colonel by Governor Ruby Laffoon. The following year he expanded his restaurant to 142 seats, and added a motel he purchased across the street, naming it Sanders Court & Café.

Sanders was dissatisfied with the 30-minute duration it took to prepare his chicken in an iron frying pan, but he refused to sacrifice quality by deep frying the product. If he pre-prepared the chicken in advance of an order, there was inevitably wastage. In 1939, the first commercial pressure cookers were released onto the market, predominantly designed for steaming vegetables. Sanders bought one, and modified it into a pressure fryer, which he then used to fry chicken. As well as reducing production time to be comparable with deep frying, the new method produced flakier, moister chicken. In 1940, Sanders finalized what came to be known as his Original Recipe of 11 herbs and spices.

Although he never publicly revealed the recipe, he admitted to the use of salt and pepper, and claimed that the ingredients “stand on everybody’s shelf”. After being recommissioned as a Kentucky colonel in 1950 by Governor Lawrence Wetherby, Sanders began to dress the part, growing a goatee and wearing a black frock coat (later switched to a white suit), a string tie, and referring to himself as “Colonel”. His associates went along with the title change, “jokingly at first and then in earnest”, according to biographer Josh Ozersky.

KFC (Kentucky Fried Chicken) is a fast food restaurant chain which specializes in fried chicken and is headquartered in Louisville, Kentucky. It is the world’s second largest restaurant chain overall (as measured by sales) after McDonald’s, with over 18,000 outlets in 120 countries and territories as of December 2012.

The company is a subsidiary of Yum! Brands, a restaurant company which also owns the Pizza Hut and Taco Bell restaurant chains. KFC was founded by Harland Sanders, a colorful figure who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first “Kentucky Fried Chicken” franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as “Colonel Sanders”, Harland became a legendary figure of American cultural history, and his image remains prominent in KFC advertising. However, the company’s rapid expansion saw it grow too large for Sanders to manage, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C. Massey.

KFC was one of the first fast food chains to expand internationally, opening outlets in England, Mexico and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of changes in corporate ownership with little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits distributor Heublein, who were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987

KFC became the first Western restaurant chain to open in China. The chain has since expanded rapidly in China, and the country is now the company’s most profitable market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands. KFC primarily sells fried chicken pieces and variations such as chicken fillet burgers (chicken sandwiches [US]) and wraps, salads and side dishes such as French fries and coleslaw, desserts and soft drinks, often supplied by PepsiCo.

Its most famous product is pressure fried chicken pieces, seasoned with Sanders’ “Original Recipe” of 11 herbs and spices. The exact nature of these ingredients is unknown, and represents a notable trade secret. Larger portions of fried chicken are served in a distinctive cardboard “bucket”, which has become a signature product of the chain since being introduced by franchisee Pete Harman in 1957. KFC is known for the slogan “finger lickin’ good”, which has since been replaced by “Nobody does chicken like KFC” and “So good”.

Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is a critical business function for attracting customers. From a societal point of view, marketing is the link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. It is the process of communicating the value of a product or service through positioning to customers. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that also benefit the organization and its shareholders.

Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value. There are five competing concepts under which organizations can choose to operate their business; the production concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. The four components of holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing. The set of engagements necessary for successful marketing management includes, capturing marketing insights, connecting with customers, building strong brands, shaping the market offerings, delivering and communicating value, creating long-term growth, and developing marketing strategies and plans.

Marketing Strategies
Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.

Marketing Strategies of KFC

KFC IS synonymous with chicken. It has to be because chicken is its flagship product. The latest they have on offer is the marinated hot and crispy chicken that is “crrrrisp and crunchy on the outside, and soft and juicy on the inside”. It gives you a regular Pepsi with this at nothing more than just Rs. 39. But make no mistake, while this is a rage across the world, and in our very own Bangalore, KFC has made sure one other thing: it doesn’t want to alienate the vegetarian community “that gave birth to the vegetarian menu”. It means you can be veg and yet be at KFC.

KFC offers a wide range of vegetarian products such as the tangy, lip-smacking paneer tikka wrap ‘n’ roll, the veg de-lite burger, and the veg crispy burger. There are munchies such as the crisp golden veg fingers and crunchy golden fries served with tangy sauces.

If you are veg and looking for a meal, you can combine the veg fingers with steaming, peppery rice and a spice curry. The mayonnaise and sauces don’t have egg in them.

Sharanita Keswani, Director, KFC Marketing, says the vegetarian menu in India came about when KFC found the country had about 35 per cent vegetarians, and in metros such as Delhi and Mumbai, almost 50 per cent.

The non-vegetarian is the obvious target customer because, as Ms. Sharanita points out, Bangalore and the rest of south India have over 70 per cent
non-vegetarians. But she also observes that chicken is KFC’s strength.

KFC’s vegetarian menu is almost exclusive to India and is the most extensive. Most countries either do not have a vegetarian menu, and some which do, have a burger at the most. “Contrary to affecting chicken sales, the presence of a vegetarian menu has made the brand more relevant to a wider cross-section of the consumer society. This is essential as we grow the brand across the country,” says Ms. Sharanita.

The KFC menu strategy is to “balance standardisation and localisation”. The localisation works in two ways: to modify a standard chicken product with a different topping or sauce; and to have a vegetarian menu, where necessary, along with the flagship product, chicken. The localisation exercise is undertaken in every country. “The U.S. and European markets have a traditional KFC menu based on chicken burgers and wraps, while Asian markets like India have been more experimental and adventurous. Here, they have rice meals, wraps, and sides. The change is imperative as Asian tastes can be very different from Western ones,” Ms. Sharanita observes, adding that KFC learnt very early the high demand for vegetarian products in India.

KFC has taken care to maintain safeguards on the production of its non-vegetarian products in response to observations by People For Ethical Treatment of Animals that chicken were not being treated humanely by suppliers. The debate has been on for years now and animal rights activists have prompted companies to adopt stringent measures.

Pankaj Batra, Director, Marketing, Indian Sub-Continent, Yum! Restaurants International, observes: “KFC is committed to the well being and humane treatment of chickens. We require all our suppliers to follow welfare guidelines developed by Yum! Restaurants International, U.S.A., with leading experts on their Animal Welfare Advisory Council. In India, we source chicken from Venkateshwara Hatcheries Limited (Venky’s), which is one of the leading and respected organised players in the poultry farming business. They also supply chicken to several reputed hotel and restaurant chains in the country. We respect the Indian law and our guidelines completely adhere
to them.”

Ms. Sharanita points out that while KFC’s brand standard products are their strength throughout the world, KFC works around the core and gives consumers products with a familiar taste, especially “important in a country like India that is home to such distinct and different food habits”.

All KFC outlets offer its customers with various forms of incentives to buy its Chicken. Using coupons that one can acquire after spending a particular amount over a period of fixed time, customers can enjoy the benefits of free meals or free add-ons. Additionally they provide meal vouchers and exciting offers in their print ads, which the customer must cut and bring along.

KFC in India
The first Indian KFC opened in Bangalore in June 1995.[198] Protests ensued from left wing, anti-globalisation and environmental campaigners, as well as local farmers, who objected to the chain bypassing local producers.[199] Many Indians were concerned about the onslaught of consumerism, the loss of national self-sufficiency, and the disruption of indigenous traditions.[200] The protests came to a head in August 1995, when the Bangalore outlet was repeatedly ransacked.[198] KFC Bangalore demanded, and received, a police van permanently parked outside for a year.[199] Rural activist M. D. Nanjundaswamy subsequently claimed KFC would adversely affect the health of the impoverished, by diverting grain from poor people to make the more profitable animal feed.[201]

Former environment minister Maneka Gandhi joined the anti-KFC movement.[201] KFC was also accused of using illegally high amounts of monosodium glutamate (MSG) and frying its food in pork fat.[202] A second store opened in Delhi, but was closed by the authorities soon afterwards, purportedly for health reasons, but more likely to avoid a repetition of the Bangalore incident. The two stores only managed to attract a limited, affluent clientele, and KFC decided to abandon the Indian market. KFC returned to India in 1999, with a new Bangalore outlet. This was the sole KFC in India until 2004, when the chain began to expand, albeit with a makeover and a range of new vegetarian dishes. As of December 2012, there were 280 KFCs in the Indian market. As well as the standard KFC offerings, the chain sells a chickpea burger and hot wings with chilli lemon sprinkles.

Hair Oil Marketing

Hair oil is a hair care product specifically intended to keep the moisture balance of the hair, as moisture is lost due to strong shampoos and harsh chemicals in water. It can also be considered as conditioner to make the hair soft and pliable. Hair oil can come from natural products such as coconut oil, fruit extracts, milk, lemon oil, rosemary oil and others. Modern hair oils contain fragrances from different natural sources of plants.

Musk Hair oil is available with rich coconut and almond mixture of hair oil products with soothing male and famine cent.

Indian Market in Hair Oil Industry:

Market Trend:

Light Hair Oil Break Up:


5 C ‘s Of Marketing

1. The study of the 5 Cs of marketing arises is called situation Analysis. 2. Situation analysis is study of the current market or industry in which company wants to launch a new market. 3. In order to launch a new product, a company first needs to study market condition. 4. The conditions are about the number of competitors and their market share, the cost of producing the product, the profit ration etc. 5. So a quick SWOT analysis will reveal where does the company stand in the market and what strategy it should adopt
in order to grab a MUSK’s share in the market.

The Five C’s are

1. Customer Needs
2. Company Skills
3. Competitors
4. Collaborators
5. Climate or context

Customer Needs/ Company Skills/ Competitors through SWOT Analysis:


Parent Company
Red Cherry Multi Commodity Pvt Ltd
Personal Care brands – Hair care
Tagline/ Slogan
“Oil of Pride”
New Product Launch of hair oil brand in India
Hair oil segment with natural ingredients (Coconut and Almond) Target Group
Youth and middle aged and Old men and women in urban and rural area. Positioning
1. A hair oil which nourishes your hair and maintains style at the same time 2. Positioned on the platform of purity and originality of coconut with best quality and resulting in shiny hair and a clear complexion SWOT Analysis

1. Newly Established product with male soothing fragrance and famine scents.
2. Provides shine and softness and makes hair healthy from inside
 3. Contains trusted natural ingredients like Coconut and Almond 4. Strong distribution network across the country

5.Introduction of oil in the market with better fragrances, ingredients and innovation yet using traditional method to extract oil from raw Almond and Coconut. 6. Celebrity/ film star brand ambassadors

1. New Brand Launched recently 2. Will be Preferred by loyal customers, but youth find other brands attractive
 such as Hair Gel and other hair care products 3.Sticky and oily, stains the pillow when used overnight Opportunity

1.Expansion in foreign markets
2.Export potential
3.Innovation in other hair care products Threats
1.Aggressive competitors
2.Threat from new entrants or local players selling oil with natural ingredients
3. Well established Brand Like parachutes and Bajaj Almond.

1.Marico’s parachute
2.Bajaj Almond
3. Dabur


1. Market size and Growth: Total Market Size – 63% of the total Indian Hair Oil Market and growth is increasing 10% annually. 2. Market segments –Urban and Rural Men, Women with Young Age, Middle age and Older age. 3. Retail Channel – where does consumer actually purchase the product?: Product should reach every single possible household, Retail outlet. Kirana shop, Online and Purchase options on social networking sites with discounts.

4. Consumer Information source – where does the consumer obtain information about the product? Social media penetration, Road Shows, displays, Exhibition and discount offering strategies online, at retail outlets, Kirana shops and at road shows. 5. Trends: how consumers’ needs and preference change over time? Consumer behavior understanding from time to time by getting feedback and surveys at retail out lets, Online, social networking sites, dedicated consumer retention team through consumer forum specially designed for consumer for MUSK Hair Oil.


1. Product line

I. Coconut based hair oil
a. Soothing Male scent
b. Soothing female scent
II. Almond based hair oil
a. Soothing male scent
b. Soothing female scent

2. Image in the market

MUSK Hair Oil was established on 24th September 2013 in a typical for niche and rural market, Red Cherry Multi Commodity Pvt Ltd envisioned offering trusted quality products made from 100% Coconut and Almond raw material for hair, skin and hair care.

The company presently launching their flagship brand “MUSK Hair Oil” encased in an attractive cylindrical cardboard label (Blue for Male Customer and Pink for Female Customer) gives product a brand new look in keeping with high quality of the oil it encases and hope to successfully cater to diverse competitive markets in India and the suburbs.

3. Technology and Experience

Age-old traditional methods and processes are utilized in producing this oil. The almond oil is lightweight, golden-brown oil, which is extracted from sweet almond nuts. The oil from bitter almond nuts on the other hand, is extremely poisonous and should be avoided. Half of the weight of the sweet almond nut itself comprises of the oil and therefore can be extracted in large amounts. In its pure form, it has little to no odor and has a faint, nutty scent.

The oil has a long and extensive history, dating back to the Egyptians where it was used to strengthen hair and as a skin emollient. More than 50% of the oil comprises of monounsaturated fatty acids, making it suitable to be used for culinary purposes as it helps reduce blood cholesterol levels. The oil is also rich in minerals such as magnesium and the vitamins C and E. While the oil might be lightweight, it causes a brown stain to form when it comes into contact with clothes and bed sheets.

Therefore, it should be strictly separated from such things. The oil has many established beneficial properties and is widely used in the cosmetic and food industry. It is also one of the most commonly used massage oils today.

Strengthens the hair
The almond oil provides essential minerals for normal and healthy hair growth. After continual application of the oil, the hair naturally grows thicker and stronger. It also promotes a lustrous, attractive shine on the hair when used in appropriate amounts.

Coconut Oil Extraction:

The extraction of oil from copra is one of the oldest seed crushing operations. In India and Sri Lanka copra is still crushed for oil extraction in the primitive chekkus as well as in rotary ghanis, expellers and hydraulic presses. The chekku is a fixed wooden or stone mortar inside which revolves on a hard wooden pestle. The pestle is attached to a long pole which is moved round via bullocks, donkey or by human labor. About 20 – 40 kg of copra can be handled by a chekku.

Using coconut oil for hair maintenance may sound like an odd regimen, but it’s been proven to be effective. Coconut oil has been known to have a lot of benefits, both when consumed and applied. Specifically for hair and skin, it has been known to restore natural moisture resulting in shiny hair and a clear complexion.

Studies have shown that this substance has the ability to penetrate the hair shaft and to work its way through all layers of the hair strand. It helps reduce loss of protein, and aids in regaining your hair’s natural oil and moisture. More than keeping your hair healthy and shiny, coconut oil has a lot of other benefits as well. The use of coconut oil is not only natural and organic, but also cost-effective. 4. Culture

We are committed to deliver 100% natural products, which are manufactured under stringent quality guidelines. Apart from commitment to quality and product authenticity, it is our compliance to timeliness, fair business practices and cost competency that has made us a preferred associate.

5. Goals: Become the market leader in Coconut and Almond based Hair Oil market in India till 2020.


1. Distributor:

2. Supplier: Local Supplier from Kerala, Tamil Nadu, Puducherry, Andhra Pradesh, Karnataka, Goa, Maharashtra, Odisha, West Bengal 3. Alliances: Alliances with retail out let, Online shopping Websites and smaller suppliers to create value for them and for the company.

Climate or Context

b.1. Political and regulatory environment that affect the market. b.2. Economic environment business cycles, inflation rate, interest rates and other issues of economic nature. b.3. Technological environment- new ways of satisfying needs, the impact of technology

4 P’s Of Marketing

Marketing plan

Trappist Dairy is glad to providing quality and healthy beverages for customer’s daily consumption. Trappist believes that milk is the best natural source of nutrition that good for people. Trappist Dairy started out as a small dairy farm operated under the Trappist Monastery in the early 60’s to supply bottled fresh milk for Lantau Island. The small operation carried on until as recently as the early 80’s when Trappist Dairy relocated from Lantau to Yuen Long in order to meet increasing demand for the Trappist brand fresh milk from the public.

Trappist Dairy also carries a wide range of delicious flavored milk drinks and unique milk drinks. Because the milk industry in Hong Kong is very competitive, to ensure continuing growth, Trappist is looking to extent its products and develops a new product to customers, based on the reasonable price, good-quality milk in Hong Kong.

And I hired by Trappist Dairy, I will develop a marketing plan to capitalize on an opportunity identified in Hong Kong. Three parts are included in this marketing plan, including introduction, current market situation and marketing objective.

I will investigate the current market situation deeply by analyzing the market and my company. I will then conduct SWOT (Strength, weakness, opportunity and threat) analysis, competitor analysis and customer analysis. Finally, I will recommend a target market and position of Trappist Dairy.

Market Analysis

The market analysis includes both the internal and external business environment. It is vital for Trappist Dairy to carefully monitor both the internal and external aspects regarding it’s business as both the internal and external environment and their respective influences will be decisive traits in relation to Trappist Dairy’s success and survival in the milk industry.

Internal Business Environment

The internal business environment and its influence is that which is to some extent within the business’s control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels.

External Business Environment

The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Trappist Dairy must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Trappist Dairy’s products on the market and the reception they receive from the consumers.

Trappist Dairy is concerned with overall state of milk market in Hong Kong. According to the Trappist Dairy’s research, about 31.3% people like to drink
fresh milk, 28.3% Hi-Cal low fat milk drink, 1.5% Skimmed milk drink, 1.5% Pure milk drink, 15.6% Chocolate milk drink, 21.8% other milk favorite taste. The demand for Hong Kong grew at around 5-10% per annum from 1999 to 2006. Current sales of imported milk are less to foreigners. Less than 10% market of milk import from USA, Canada, Mainland China, Europe, Australia, New Zealand etc.

The sales volume for the milk segment in Hong Kong reached $36.2 million in 2006 for a volume of 130 million liters. It has shown a steady growth since 1980: an increase of 9.5% over a period of 26 years. The consumption rate per new product in 1995 has reached 0.98 liters, which represents a 4.0% increase compared to 1999. The growth of new market is largely due to a consumer trends.

Company Analysis

Trappist Dairy is a medium sized company with a large amount of market share in Hong Kong. It produces products of high quality and good taste. The company currently produces ten products in three product lines, namely pure fresh milk, delicious flavored milk drinks and Low Fat Yogurt Drink. Pure fresh milk is a traditional style milks with (Protein, Fat, Calcium) natural source of nutrients. Hi-Calcium Low Fat Milk Drink contains one-third more natural calcium than average milk products with level of fat as low as 1.5g, Skimmed milk with 0% fat but no cholesterol, Chocolate Milk with a perfect blend of intense aroma and sophisticated mouth feel. Trappist Dairy also provides another favor taste such as Mango Papaya Low Fat Milk Drink and Ginger Low Fat Milk Drink.

Trappist Dairy can manufacture competitive drinks at competitive prices with implementation of its newer and cutting edge technologies. Trappist Dairy believes in total quality control. For fresh milk, quality control starts from the selection of feed. Trappist Dairy monitors the health and living conditions of the dairy cows to ensure that Trappist Dairy can deliver supreme good taste and nutritious milk.

Trappist Dairy production lines run daily to ensure fresh delivery every day to customers, while Trappist Dairy salesmen and telesales team are dedicated to deliver the best service to satisfy customer needs. So they can gain overriding market share.

Competitor Analysis

In Hong Kong, the milk industry is quite competitive. The industry is divided into milk, soy milk and yogurt. Compared to soy milk and yogurt, the market for milk is very large because Hong Kong people think that milk is an essential and health drink. Also, Government and school always promote milk and its health benefits, from baby to adult, the milk market has been growing since 1980.

Hong Kong’s three largest milk producers control approximately 90% of the local’s milk market. There are two major competitors in below.

The Kowloon Dairy LTD was founded in 1940. Today, It produced fresh milk in Tuen Mun factory, employ nearly 500 people and had distribution network reaches almost all corners of Hong Kong and Macau. They have diversified to produce a variety of recombined milk drinks, such as Hi-calcium milk, skimmed milk, different flavored milk, and other ice cream products.

Vitasoy Group was bringing the milk drink made from this healthy little bean to a wider market began in 1940. They introduced paper packed products and were the first Hong Kong company to introduce Tetra Pak packaging technology for drinks production. The Tetra Pak packaging system, which ensures that, a drink product can be kept for months without refrigeration. The Group pushed into overseas markets in 90s. The group’s products sell in over 40 markets around the world – including the USA, Canada, Mainland China, Europe etc.

There are other competitors such as foreigner brand or small local brand. However, they are less competitive compared with these two brands (Kowloon Dairy & Vistasoy) and less marketing share in Hong Kong market.

Customer Analysis

Given the size of the Hong Kong market, Trappist Dairy will concentrate on entering the market in the supermarket, Convenience stores and some classic stores. This is a wealthy segment of the market, consisting primarily of aged 3-80 years and interested in purchasing milk as a health and keeping nutrition like calcium recovery. Targeting this group will allow Trappist Dairy to enter the market at the top and keeping competition with another brand of product. A strategy could be to target on the price and quality. An advantage of targeting all age is that they have a great need on milk, it regards as the potential to become long-term customers and have not yet developed taste of milk segmentation. If Trappist Dairy can satisfy this market, it will theoretically be easy to penetrate and expand to Hong Kong or other markets. A number of behavioral and attitudinal descriptors are identified in the table on the following below.

Segmentation parameters Future Hong Kong market Age 3-80 years
Sex Male or Female or Both Income Above average $6000/m Geographic Hong Kong
Attitude health and keeping nutrition and seek long-term advantages Lifestyle young, mature, old Usage rates daily users

Benefits desired Buys for the benefits of health, quality and reasonable price

Furthermore, within this market it is possible to further segment the preferred target market for Trappist Dairy’s offering. Age can be used to further segment the market. Although older members of the family have a large influence on purchase decisions in Hong Kong, these older people are part of the ‘late majority’ group, which is not an attractive group for new products. Therefore the age of the target segment will be 18 to 44, as these individuals should be more likely to adopt new products or at least be influenced by ‘early adopters. These individuals make up almost 50% of the total population, and so form a profitable target segment.

SWOT Analysis

In the following SWOT analysis, I investigate the strengths and weakness of Trappist Dairy. Also, I try to find out the opportunities and threats facing Trappist Dairy.

•Staff are highly trained and always be aware of the nee of customers •Trappist Dairy offers quality and healthy beverages at reasonable price. •A strong brand of Trappist Dairy is built through brand building and promotion Trappist Dairy provides standardized products, efficient for productive and specialized milk. •Trappist Dairy is able to maintain good relationship with customers’ e.g. facebook fanspage The strengths are a devotion to customer service, and the tastes and innovativeness of the products. Customer service is a essential level in Hong Kong in terms of building relationships with new customers. Trappist Dairy offers outstanding after sales service, with teams located in every major superstores.

The Trappist Dairy also has a follow-up strategy that includes phone calls and emails to new customers giving them the chance to open dialogues with the firm. Also, Trappist Dairy are proud to highlight four of new and unique milk drinks: Low Lactose Low Fat Milk Drink, Ginger Low Fat Milk Drink, Mango-Papaya Low Fat Milk Drink and Oats Hi-Calcium Milk Drink. They offer unique flavors and functions for the needs of different customers.

Has been operating successfully for over a century. Is known world-wide and operates in more than 20 countries. Trappist Dairy has a large share of the milk segment – holding approximately 40 per cent. The Trappist Dairy Company is one of most recognised trademark in the world.

•line extensions
The time taken to do business in China will stretch human resources Capital is required for expansion into exporting
• The prices could not be fitted by all. Lack of prior exposure to Chinese market. Experiencing Chinese Distribution system will be a greater challenge. Introduction of new organizational practices and employees with lack of experience will be a challenging part.

•Image of Trappist Dairy is clear and it is good for developing the brand name of Trappist Dairy •Marketing becomes more easy as people is familiar with the brand name of Trappist Dairy •As Trappist Dairy has launched in Hong Kong for long time, it knows the taste and preference of Hong Kong people well and it can develop popular food more easily. Milk is perceived as healthy.

Milk consumption is growing
Has significant growth opportunities. Has sufficient capital to expand. Has the potential to innovate and differentiate the company’s products to sustain a competitive advantage. May merge with other global businesses to eliminate competitors. Capable of expanding into other markets other than the soft drink market. Has many major global competitors with its main one being Turner Dairy. Trappist Dairy can be substituted by other milk drink products made by its competitors. These competitors may develop marketing strategies to eliminate The Trappist Dairy Company.

Product diversification
According to an analysis of the external environment, two major opportunities exist. These are an increase on sales of milk over the past year, and a minimum of Ginger low fat milk drink products being marketed by competitors. According to Hong Kong Discuss Forum, the new taste of milk drinks increased by 8% in 2009. This shows that there is an increasing market for the new of taste milk drinks.

Language and cultural differences exist
Business relationships take a long time to forge
Less ability to make a family image to another country customers Hong Kong and China Government are very concern the quality and ingredients. •There is keen competition from competitors selling similar products e.g. Kowloon Dairy LTD, Vitasoy etc. Biggest threat would be Hong Kong’s local of milk brand. Existing companies like Kowloon Dairy LTD would add-up to the threat. Young people like to choose the new things such as new taste of milk or product from Kowloon Dairy LTD presented.

Recommended Target Market

Hong Kong
This is a wealthy segment of the market, which will allow Trappist Dairy to keep the market at the top and filter its product down easily. Because Hong Kong people are familiar with Trappist Dairy, and Trappist Dairy has already occurred in Hong Kong over 50 years. It is the main place for Trappist Dairy to get money. Also, Trappist Dairy had already doing many research and have a big piece of milk market penetration. It regards as a star with a long term development. A strategy could be to target the Hong Kong through many advertisements. It is a very effective to target all-aged. If Trappist Dairy can satisfy this market, it will theoretically be easy to expand to other markets.

A large potential market for milk in China remains. With relatively low capita consumption of milk, this market has a great opportunity to growth. According to China Gov news, many production milk of company can’t provide a good quality to their resident, even worst that made their body get harm. The reason is that they are not very focus on quality control and ingredient. They are just focus on the money. This is a very great of opportunity for Trappist Dairy becoming a success, if Trappist Dairy provides a good quality and reasonable price to Chinese. Chinese is also focusing on health and nutrition. Trappist Dairy can shows the performance like Hong Kong to let them know that Trappist Dairy is a brand which is dedicated to providing dairy products of the best quality and family’s daily consumption.

Recommended Position

The intended positon for Trappist Dairy’s product is to be at the middle to high of the local or imported milk. That position may be interpreted as a high-quality, health, fitted all-aged and many taste provided. The retail price range of the Trappist Dairy’s product is depend on the competitor product. Generally, Trappist Dairy preferred to set the same or lower than their price.

Marketing Objectives
Goal: To increase flesh milk and daily market share and product awareness Objective: To obtain 60% market share of the milk market in Hong Kong within January 2012 to December 2015. To obtain 13% market share of milk market in China Future: Trappist Dairy’s will develop new marketing strategies end of 2013 -We aim to increase earnings per share by at least 10% every year for the foreseeable future.

Functional objectives
– We aim to build customer database of at least 250,000 households within the next 12 months.
-We aim to achieve a market share of 60%.
– We aim to achieve 80% customer awareness of our brand in our target markets. Overall Marketing Objectives:
-Predicting and satisfying customer needs.
-Analyzing marketing trends.
-Monitoring competition.
-Anticipating change and overcoming its effects.
-Increasing positive perception among its customers.
-To identify distinctive, compelling and competitive positioning in promoting Trappist Dairy
-To increase overall awareness of Trappist Dairy by health and aggressive advertising.


KFC Marketing Plan

KFC formally known as Kentucky Fried Chicken is the world biggest and most popular chicken-based restaurant chain, headquartered in Louisville, Kentucky in the United State. It is originally founded by Colonel Harland Sander in 1952. Throughout its rapid growth it has now over 150,000 stores available nationwide in 105 countries boosting 59 years of history of success and innovation. In Malaysia, the first KFC restaurant was open in 1973 on Jalan Tunkul Abdul Rahman, and today there are more than 500 outlets throughout Malaysia and are still counting (KFC, 2011). 2.0 KFC Current Concept and Practice

Malaysia’s KFC restaurant is an organization that runs and managed by Malaysian which practices self service concept in it business. Customer need to serve themselves when doing purchasing. Besides that, it also practices on the concept of Halal food. Halal food is food that conforms to Islamic Law or Shariah, it regulates that food consumed must be hygienic, not harmful to health, free from any forbidden parts of animals’ origin and anything regarded as filth under the Islamic law (KFC, 2011). 3.0 KFC Marketing Mix (7P’s)

Marketing mix strategy is choosing and implementing the best course of action to meet the organization goal and gain competitive edge. The 7ps of marketing mix is one of the most popular used marketing concepts by marketing professional. It composes of product and service, price, place, promotion, people, process, and physical evidence (Behera, 2008). 3.1 Product and service

Product is the tangible product or service offered to customer to provide customer satisfaction. No matter the product is tangible or intangible, it must provide the right feature and value to customer that include aspect such as appearance, function, and packaging (Anon., 2010). KFC are well known for his signature pressure-fried chicken pieces made with the original recipe. KFC primarily sell chicken in form of pieces, and salads (Wisnudewobroto, 2011). Although the main focus product is fried chicken, but KFC also developed a wide range of product offering variety choices to customer. It includes of burgers, signature Kentucky Nuggets, and wraps with a wide range of side dishes and dessert to pair with (KFC, 2011). 3.2 Price

Price is the amount of money customer pay for a product (Anon., 2012). The price offered must be reasonable and competitive, and most importantly is to
entail profit. The pricing tactics include not only the price list but it also comprise of on-going discount, offers and promotions (Behera, 2008). KFC products are priced high but not high overly, and their target customers are middle class people. However, to compete with other fast food restaurant KFC trickle down product price for selected item during mealtime to attract lower middle class customer to penetrate both sides of the markets (Wisnudewobroto, 2011). Promotions such as KFC a.m., Lunch Treats and, dinner treats are the current promotion available at KFC (KFC 2012). 3.3 Place

Place refers to the location, and distribution channel whereby the product is reachable and can be purchased by the target customer and how the product reaches the location (Behera, M., 2008). KFC has over 500 outlets nationwide, and are generally in easy reached, nearby location. Besides dine in option, KFC also provide home delivery service up to customer doorstep and drive through counter offering convenience and different alternatives to customer, however these services are only available at selected area with fixed menu. In the same time KFC also developed the “Meals on Wheels”, a catering service for all sort of functions and occasion which can be done at any place (KFC, 2011). 3.4 Promotion

Promotion includes various ways in selling and communication in spreading information to target customer of what the organization has to offer. Promotion tactics comprises of advertisement, public relation and sales promotion. A successful promotion strategy will be able to draw customer attention to be aware of the product and affect customer behavior (Behera, 2008). The distribution channel of KFC is quite varieties such as television advertisement, internet, and templates. Lately, KFC have come out with a range of attractive promotion item, KFC Cracker Sandwich, Lunch Treats, Zinger Double Down, Pokkits, and Bargain Bucket are examples (KFC, 2011).

3.5 People
People refer to the individual that involve in the sales of product, such as attendant who deliver the service, promoter and product salesperson. Therefore these people are the important element for the organization.

Adequate product knowledge training is essential to these people (Behera, M., 2008). KFC’s front-line staff always dressed neatly and appropriately. All staff is provided with appropriate standard working uniforms and is required put it on while on duty (KFC, 2012). Besides that, KFC also provide great serve training to employees. The front line staffs are nice and friendly, staffs greet every walk in customer with a smiley faces, and prompt in servicing customer (Mohammad, 2007). 3.6 Process

The process in marketing mix is especially relevant to the service industry. It is the procedure of delivering service to customer, and the behavior of the person who serve. It is critical to customer satisfaction, hence, it is important to keep staff well trained in order to have a thorough understanding towards the service available (Anon., 2009). KFC is a self-service concept fast food restaurant (Anon., 2012). Dislike fine dining restaurant, customer need to help themselves from ordering up to picking up their meal. There is no hostess available as well, customers are free to choose their preferred seats to dine in. Sauces are available at the condiment bar in the dining area for free load.

3.7 Physical Evidence
Physical evidence is the experience of using a product or a service. Customer cannot experience before they make a purchase which will make them feel risky, however organization can reduce this uncertainty by providing evidence to customer through testimonial demonstration showing that the organization keeps its promise. (Anon., 2009).

The bright and bold graphic designs in KFC that showcase the company’s icons “11 secret recipe” and “Finger Linckin Good” communicate a fresh sense of pride towards its starring result of their product. While the warm and contemporary design and spacious seating makes customer feel welcome and cozy (KFC, 2011). 4.0 Marketing Objective

The objective for this marketing plan is to increase sales revenue up to 20% by final year 2013. The reason for proposing this objective is to boost company sales revenue for KFC product range in this global economic downturn by the end of 2013 whilst gain a competitive edge in fast food business. 5.0 Marketing Strategy

KFC decided to launch veggie burger and veggie warp in coming 15th December 2012. A 100% vegetarian product food product firstly available in KFC. The new products are named “Vege Bugger” & “Vege Wrap”, it is a hamburger style and wraps that does not contain any animal products. The patty of the veggie burger and wrap is 100% free from animal product. It is made from vegetables, grains, seed, and textured vegetables proteins, legume, soy, beans, nuts and mushrooms are examples.

It will also blend in the KFC signature recipe, the Sander “Original Recipe” which contain of 11 herbs spices making it healthy and delicious. This concept comes from the changes of consumer behaviors in society these days. It is clear that consumers are much more health conscious today than ever before when come to food consumption. They are more conscious when they buy and seeking out food product, and generally prefer foodstuffs which is health benefited (Ligaya, 2009). In addition, the widespread in vegetarianism is another main factor that builds up this concept.

According to Kayne, (2012), vegetarian diet is significantly healthier then diet which include meat and animal product. Studies have found that decrease of meat intake will increase health benefits and longevity might increase as much as 20 percent. Therefore eating green and healthy whilst saving the environment are the concepts for the new product. This 100% vegetarian ingredients product enables to attract new batch of potential customer which KFC has never target before. 5.1 One Year Integrated Marketing Plan

The group of customer that KFC has decided to target for is vegetarian and health conscious consumer, as the main selling point of Vege Burger and Vege Wraps stressed on non animal product and healthy food. In the one year marketing plan, KFC marketing team will be using multi-market strategy in promoting the new product. The segment covers adults, children, family and budget customer who is looking for healthy and delicious food. The purpose of using this strategy is to target every possible customer segment as possible to increase and maintain revenue for the company. 5.1.1 Product and Service

The new product KFC will be going to introduce is Vege Burger and Vege Wrap. It will be launch in the 15th Dec 2012, targeting health conscious consumer and vegetarian segment. The Vege Burger and Vege Wraps emphasized on 100% veggie made, and 100% free from meat, even the sauce and cheese used are 100% vegetarian. The burger and wrap are hi in fiber and protein and low in cholesterol as meat component has been replace by vegetables and use zero trans fat oil, thus it is the perfect choice for weight conscious customer.

The burger and wraps will come in standard size, however customer may customize on the fillings according to their preferences as KFC are using customization strategies for this new product to attract more customer. The morale behind is that people can choose what they wanted for their food, customer will be more satisfied if they can choose what they want, and are not restrained with fixed menu. In order to get more new customer, continuous innovation and improvise will take place from time to time according to preference and taste of customer. 5.1.2 Price

KFC come up with different pricing and bundling strategies for the new launch product, the Vege Burger and Vege Wrap, such as lunch treat, combo meal, and family meal. The super worthy meal enable to attract middle and lower class customer to increase overall sales volume. On the other hand, KFC is also using skimming pricing strategy on the new product.

As the product is new, company need to adjust the price from time to time base on customer respond and cost of production. The product price will be firstly fixed in the range from RM 8 to RM 15, base on the type and size of meal ordered, however changes will occur whenever necessary. If the charges of the product are too low it might lead to customer perception that the food quality is poor, while charging for the product too high will cause customer to switch their preferences to other competitors. KFC also will take into consideration on the probable reaction from other competitor in their pricing strategy

5.1.3 Place
Place is the main distribution channel, it is important so that the product is available to the customer at the right place, at the right time and with adequate quantity. Vege Burger and Vege Wraps will be launch at every single KFC outlet in Malaysia. They will be available throughout Malaysia as the idea is everyone can enjoy good food. However it will be firstly launch at outlet located in big cities before spreading to the rest. Besides than KFC restaurant outlet Vege Burger and Vege Wrap will also be available through online ordering and home delivery service. 5.1.4 Promotion

In order to draw customer attention and to persuade customer to purchase the Vege Burger and Vege Wrap, KFC has come up with different promotions strategies and tactics to tackle as many customer as possible. For instance, special discount rate will be offer on the first three months when the Vege Burger and Vege Wrap is launch. Set meals upon ordering during lunch time and dinner time will be given special rate, which include of a standard size Veggie Burger or wrap, a non sugar carbonated drink and a coleslaw salad as side dish.

Customer with large order quantity will be given cash voucher which applicable on their next purchase. Besides that, KFC use various promotion channels to effectively communicate the product information, to make people to aware of the new item, feel positive and remember it well. KFC apply broadcast advertising through newspaper, radio and TV program, the best and important marketing medium for promotion. KFC will advertise on the front page on the best selling newspaper to draw reader’s attention, paper such as Kwong Wah daily, The Star and News Strait Times. In addition television and radio advertisement will be broadcast during golden hours. 5.1.5 People

KFC understand the importance of its employee and value customer, a happy customer result from the service provided from a happy employee. KFC will punt in extra effort and marketing their employee training and recruitment. 5.1.6 Process

Due to the vegetarian sensitivity and particular in the process of food preparation, KFC will practice transparency to confide consumer in the coming launch product. The food manufacturing at KFC is completely transparent, food preparation process are visible to customer across the counter. It enable customer to view and judge the hygienic standard in KFC, besides that is also allow customer to know the ingredients used for food that they consume.

This practice creates a solid proof to customer gaining their confident towards KFC. As Vege Burger and Vege Wrap is 100% vegan, ingredients will be prepared separately, using dedicated utensils and equipment. On the other hand, special training will be provided to all employees on method of cooking and preparation giving thorough knowledge to employee towards the new product. Managers are also designated to monitor the process of preparation to ensure standard procedures are follow. 5.1.7 Physical Evidence

KFC focuses on the cleanliness and hygienic interior of its outlet especially at the dining area, providing a clean and hygienic dining environment to customer. In the same time, maintain attractive and proper decorum at its joints. Better facilities will be provide at KFC centre, such as internet facilities and dedicated area for children to play while parent can have quality time together. In order to match up with the launch of Vege Burger and Vege Wraps, KFC also launch a new design working uniform for their staff which come in green color imaging of eating green and living healthy. Physical appearance affects not only the impression from outsiders but it also a company brand image. 6.0 Budget

KFC is using competitive parity method for company budget. In order to defend against competition, KFC will compare its budget with major competitors like Mc Donald’s and Burger King, spending as much as competitor. Example, if competitor is spending RM 500,000 in their promotion, KFC will also allocate the same or almost equal amount for their brand promotion. This method is easy to implement, it does not occur complicated forecast and appraisal, and most importantly, it enable to prevent competitor from making inroad to the company market share. 7.0 Controlling and Evaluation

7.1 Operation control
Operation control focuses on day-to-day operation. To effectively control the operation and reduce risk, it requires standard policies and procedure to ensure a consistence standard of business runs. KFC operational control management will monitor the daily operation of the outlets especially towards the aspect of personnel and technology to avoid any obstacle occurs from affecting stores operation. A systematic system ensured activities carried out accordingly as planned. Corrective action will be taken by management whenever is necessary. 7.2 Strategy Control

In the strategy control KFC management will look into the planning and tactics implement to reach the objective that has been targeted. Proper monitoring will be put into practice from carry out up to completion of the strategy such as promotion, advertising activities, and pricing. At the end management will analyse on how effective is the planning from the result. Revision and changes will be made to improve it if necessary. 7.3 Evaluation

Lastly, final evaluation will be carry out to review the respond and comment from customer towards KFC. Customer feedback will be majorly focused on comment through questionnaire, customer forum, and feedback form. Besides that KFC will also ask for real-life comments where feedbacks were warranted. Customer will be asked to expand their feedback and how would they like to have the job done or handled. Looking at the service from customer point of view would provide a better understanding on what customer really need. In addition, sending mystery shopper can also help to monitor the quality of customer service and food furnished. Assessment can be carried out by reviewing the service level provided by front-line staff, food standard, and outlet environment.

Thus help the management to evaluate the overall performance of an outlet. Feedbacks compiled will be filter by management selecting whichever is useful to the company and problem will be brought to attention according to severity so that appropriate remedial action can be taken. KFC will ensure follow up on every customer to see whether the solution has helped the customer, and will also maintain customer database so that company can send regular questionnaires and receive new opinion and ideas from customer for future improvement. Every feedback from customer is valuable therefore small gift like cash vouchers will be given to thanks customer for giving helpful tips and as a sense of respect to encourage ongoing open communication from customer in future.
Appendix A: References

1. Behera, M., 2008. The 7Ps of Marketing Mix. [online] Available at: [Accessed 29 November 2012]

2. Kayne, R., 2012. Has it been proven that Vegetarian Diet is Really Healthier? [online] Available at: [Accessed 5 December 2012]

3. KFC (Holdings) Malaysia Bhd., 2011. KFC Malaysia. [online] Available at: [Accessed 29 November 2012]

4. KFC, 2011. Newsroom. [online] Available at: [Accessed 13 December 2012]

5. KFC, 2012. ABOUT US. [online] Available at:
[Accessed 29 November 2012]

6. KFC, 2012. Jom KFC. [online] Available at: [Accessed 10 December 2012]

7. KFC, 2012. Colonel’s Menu. [online] Available at: [Accessed 10 December 2012]

8. KFC, 2012. Colonel’s Menu. [online] Available at: [Accessed 11 December 2012]

9. KFC, 2012. KFC Holding (Malaysia) BHD Annual Report. [online] Available at: [Accessed 9 December 2012]

10. KFC, 2012. Colonel’s Menu. [online] Available at: [Accessed 11 December 2012]

11. Ligaya, A., 2009. Consumer more health conscious. [online] Available at: [Accessed 13 December 2012]

12. Management Study Guide, 2008-2012. Marketing Mix-meaning and its Elements. [online] Available at: [Accessed 29 November 2012]

13. Medialine. [online] Available at: [Accessed 10 December 2012]

14. Mohammad, N., A., 2007. KFC outlet with a difference. [online] Available at: [Accessed 9 December 2012]

15., 2012. KFC – Tripureswor. [online] Available at: [Accessed 13 December 2012]

16. Poh Huai Bin, 2010. KFC Zinger Double Down Burger. [online] Available at: [Accessed 13 December]

17. The Chartered Institute of Marketing, 2009. Marketing and the 7Ps. [online] Available at: [Accessed 1 December 2012]

18. Wisnudewobroto, 2011. Kentucky Fried Chicken Marketing Strategy (English). [online] Available at: [Accessed 1 December 2012]

19. WordPress, 2012. Top food and beverage trends to watch in 2013. [online] Available at: <> [Accessed 13 December 2012]

20. You! Bumpit! 2008. COMPETITIVE-PARITY METHOD. [online] Available at: [Accessed 10 December 2012

The Maluti Mountain Marketing Comm


The Maluti Mountain range is a world-renowned hiking spot in the middle of Drakensburg Mountains in South Africa. As the marketing manager of BBS Hotel, I will explain how I plan to launch a marketing campaign for backpacker travellers on the international market by making use of the five steps of a marketing plan.


Marketing management is the process of planning and implementing the pricing, promotion, distribution of ideas, goods, and services to create exchanges that satisfy individual and organisational goals. Marketing management uses the company’s resources to increase its customer belief and attitudes of the company’s products and services, and increase the company’s perceived value.


3.1Step 1: Situation analysis

In the first step of the marketing plan, the marketing manager should explain where the organisation stands in relation to the total marketing mix, for instance the sales history of the product, its position in the industry, pricing trends in the industry, and so on. According to Angelopulo and Barker (2013:161) in addition, the marketing manager also considers the organisation’s target market, for instance its customer profile, the geographic aspects of product usage and customer awareness.

It is also important to perform a SWOT analysis to determine the organisation’s strength, weaknesses, opportunities and threats. With regards to the scenario, as the marketing manager of BBS Hotel, I will first examine where BBS Hotel is now, using both external and internal factors. The location of the hotel is essential as it is situated at the foot of the Maluti Mountains which is a world renowned hiking spot in Drakensburg. This means that there are perhaps local tourists to the destination however not enough international tourists. The hotel does make profits with the local population. BBS Hotel has competitors however there are no hotels at the foot of Maluti Mountains where BBS Hotel is located. The hotel has a few distribution channels that are bringing in customers however BBS Hotel has not been attracting the international markets.

Market Trends

The market trend for hotels in adventurous destinations is an increase in occupancy seen on a national scale. For years, hotels in the mountainous areas existed underneath the radar of the general population. When most people went on vacation, they would tend to make reservations at hotels away from the actual areas of their activities. Within the last two years, people have begun to discover hotels at the locations of their activities and appreciate the additional services that they offer and enjoy the convenience to being close to their activities. The industry has seen an increase in occupancy, from out of state or region travellers, as well as and more importantly, local people that are looking for a place to escape from their homes.

I will commence with a SWOT analysis to identify the strengths, weaknesses, opportunities and threats of BBS Hotel. Strengths:
As the marketing manager I determined that BBS Hotel has the following strengths:

•It’s a renowned location.
•The size of the hotel
•A home-like feeling
•Individual service
•Wireless internet

The location of the hotel is definitely one of the strengths, mostly because it is located in the Drakensburg and in a beautiful location with one of the highlights being its hiking attraction which therefore makes it an attractive destination for adventurous tourists. The size of BBS Hotel is also categorised as a strength as it is small yet a feeling of cosiness. Being a small hotel it gives the opportunity to serve each customer more personally. This makes the new and old customers feel comfortable and welcomed and it also creates a home-like feeling in the hotel. BBS Hotel offers wireless internet in the midst of the mountainous ranges. Should guests wish to connect with their loved ones while their away, the wireless internet is an added advantage in the hotel.


•Outdated brochure information
•Insufficient marketing
•Homepage on the internet dull and boring
All of the above were major weaknesses identified.

It has been determined that the hotel’s brochure has not been updated with new and attractive information. The insufficient marketing of the hotel and its surrounding attractions is also seen as a weakness. BBS Hotel’s homepage is one of the biggest weaknesses; it has not been updated over the past five years. The homepage does not reflect the surrounding attractions and highlight the beauty of the hotel as well as the destination. The BBS hotel is out-dated in its process to seek and put in motion new ideas that could help bring more customers to the Hotel.


•Look at marketing: finding the right distribution channels

•New fresh ideas
•Hotel facilities
•Invitations to different companies to visit

Opportunities can be seen in strengthening the hotel’s marketing and find new distribution channels. It is important to keep up with the time and always keep looking for new and innovative ideas to market BBS Hotel. Possible opportunities would be to renovate the hotel’s facilities to a more adventurous look and perhaps change or add additional dishes to the menu that would cater for some sort of exotic cuisine (wild boar, springbok, etc.), especially if we want to target international backpackers. Have BBS Hotel meet regularly with the KwaZulu-Natal Tourism board to seek out new events in the vicinity and draw on this to attract new and existing customers. As the hotel’s webpage on the Internet is seen as a weakness, a good opportunity is to improve the pages and make a more accurate presentation of the hotel and what it has to offer especially for international backpackers.

The internet also has a lot to offer in terms of marketing and there are still many different ways the internet could be utilised to market the hotel to attract international backpackers. An example could be BBS Hotel to have a competition where one could win a week stay at the Hotel or perhaps advertise the hotel at discounted rates. Another opportunity identified was to invite representatives from travel-agencies and tour companies to come and visit the hotel to get first-hand information and get better acquainted with BBS Hotel’s services. This will make it easier for them to sell BBS Hotel’s services to international backpackers once they physically see what the hotel has to offer.


As BBS Hotel is the only hotel located at the foot of Maluti Mountains, a definite threat would be a new hotel located nearby. This would result in a significant decrease in customers coming to BBS Hotel. The low seasons can also easily create a real threat for BBS Hotel.

3.2Step 2: Marketing opportunities

In the second step in the marketing plan Angelopulo and Barker (2013:162) states that the marketing manager considers marketing opportunities such as current markets; buyers; growth markets; product service development and innovation; and targets that provide an opportunity for the organisation’s products and/or services. Currently the product/service that BBS Hotel wants to provide namely the incorporation of accommodation and hiking tours is currently not being catered for in this hiking region. BBS Hotels target market is the international backpacker travellers but not limited to this group.

There is an opportunity to design, develop and customise these adventure holiday packages with the incorporation of hiking tours inclusive of a tour guide. Such a product/service is one of the unexplored markets in the Drakensburg area. Designing and developing packages that would incorporate accommodation, hiking tours with individual or group tour guides to international backpackers could add growth of the product/service and ultimately to the growth of BBS Hotel. In time the product/service can be changed to incorporate other adventurous types of activities that could be included in the package that BBS Hotel would offer.

3.3Step 3: Marketing objectives

According to Angelopulo and Barker (2013:162) during this step, the marketing manager considers the relevant factual data that was obtained during the situation analysis step. The marketing manager will consider important aspects such as data gathered from the situation analysis, opportunities identified, setting goals and objectives, and assigning responsibilities and projections for the future. Responsibilities should also be assigned to employees who can achieve these objectives (Ferrell & Hartline, 2008:141). Angelopulo and Barker (2013:163) states that primary objectives include financial objectives (current and projected sales, profit margins, market share objectives), while functional objectives are set when the careful blend of the marketing mix is considered in detail. Marketing the campaign for backpacker travellers is one of the main goals; both short and long term.

The key factors are to develop and improve marketing as well as making sure it targets the right customer groups which are the international backpacker travellers. BBS Hotel’s website is in need of up-dating and forming new webpages to attract international backpackers to the hotel. Another main goal was to renovate the hotel; maybe just start with small things such as putting a microwave and a bar fridge in each room. To provide a holiday package inclusive of individual or group guides for hiking adventures in the Drakensburg area. A short-term objective is to balance customer flow during high and low seasons. The hotel has the largest number of customers during the school holiday seasons. There should be a lot of effort put into attracting more international customers also in low seasons.

Special and attractive offers could be advertised to attract customers. This of course can be continued into long-term objectives; getting new customers, both one time visitors as well as regular customers. The main objective for this marketing plan is to attract international backpacker travellers to come stay in BBS Hotel. 3.4 Step 4: Strategies and action plans  Angelopulo and Barker (2013:163), it states, in this step, specific strategies are designed and implemented through specific marketing actions that are in accordance with the objectives that have been set. Ferrell and Hartline (2008: 323) point out that strategies and action plans are usually also designed in line with the organisation’s mission and vision, and organisational culture. Marketing strategies include product, pricing, advertising, media and marketing communication strategies.

Marketing Strategies

1)Association membership and advertising: A large number of visitors will look to regional Hotel associations for information about the different hotels in the Drakensburg area. Most associations publish a guide to the local hotels and the BBS Hotel wants to be in this guide. One of the other perks of membership is visibility on the association’s website with a link to ours. Additionally, we will be a member of the KwaZulu-Natal Tourism Board because people typically inquire with the local KwaZulu-Natal Tourism section when planning a vacation. 2)Website: BBS Hotel will have a full-service website that allows the visitor to view the hotel, read details about what it has to offer, provide information on regional activities, especially it being an attractive hiking destination and even allow the visitor to book an online reservation.

With the growing use of the Internet, the Web has become an indispensable tool people have for planning vacation to areas that are not close enough to check out in person. 3)Existing/Regular Customers: The hotel can start taking its customers’ information and updating it into their hotel reservation systems, this way customers’ contact information can always be found and customers can be contacted more easily with special offers and other news and information of BBS Hotel and activities that will be taking place. This will bring more visibility for BBS Hotel as its regular customers could recommend the specials and exciting news to family and friends and make recommendations on the use of BBS Hotel should they be looking for an international destination.

Mission and Vision

The mission of BBS Hotel is to provide the finest hotel experience that would transform one’s holiday into an unforgettable adventure. We exist to attract and maintain customers. Our services will exceed the expectations of our customers.

3.5Step 5: Financial control and budget

The last step in the marketing plan is the financial control and budget phase. Angelopulo and Barker (2013:164) states, the marketing strategy of the marketing plan is devised according to a carefully planned budget. Once the marketing plan has been designed, the marketing manager must decide how to monitor and control the finances during the implementation of each marketing action. Procedures to control and review the marketing plan and its budget must be developed and in place even before the marketing strategy can be implemented.

The budget for the launch of the campaign for international backpacker travellers is set at R350 000.

Marketing Expense Budget
Activity Cost
Assorted advertising activities R54 000.00
Website maintenance R60 000.00
Invitation of prospective guestsR10 000.00
Minor renovations R120 000.00
Other R106 000.00
Total Estimated Budget R244 000.00

BBS Hotel’s main focus is penetrating into launching the campaign of attracting backpacker travellers. In order to meet the objectives and strategies set out, the allocated marketing expenses is R244 000.00. It is projected that if sales are achieved during the quarter of initiating the campaign, R350 000.00 in sales would be required to break even against the marketing budget.


In conclusion it is evident to see how critical it is for an organisation to have a strong marketing plan in place in order to have produced good marking management outcomes for the organisation itself. In relation to the scenario provided, it is evident that the five step marketing plan will produce the positive outcomes that BBS Hotel expects in terms of achieving its specific marketing objectives which is to attract international backpackers to BBS Hotel.

As the marketing manager for BBS Hotel, I feel that all the relevant aspects were taken into consideration in order to ensure that a viable marketing plan has been put in place to launch the campaign to attract international backpacker travellers to the BBS Hotel. Taking into consideration that no other hotels in the region are offering holiday packages inclusive of individual or group tour guides, BBS Hotel stands an exceptional chance of increasing profits once the campaign is initiated as it has been determined from the market opportunities and marketing objectives.

Angelopulo, G.; & Barker, R. (eds). 2013. Integrated organisational communication. Landsdowne: Juta.

Barker, R.; du Plessis, C.; Hanekom, J.; Chauke, G.; du Plessis, L.; Hadji, J. & Moila, R. 2012. Marketing Communication. Only study guide for COM3701. Pretoria: University of South Africa.

University of South Africa. Marketing Communication. 2014. Tutorial Letter COM3701/101/3/2014. Pretoria.

Marketing management

Marketing management – assignment 1

Case study
Question for discussion:
1-give examples of needs, wants, and demand that build –a-bear customer demonstrate differentiating each of these three concepts. What are the implications of each on build –a-bear’s action? The build –a- bear company can really differentiating between needs, wants, and demand by gives the customer a free choice to create a bear by your own personalization so that the experience that customer need to make a value to the product and to satisfied all kind of customer and what they want ,need or demand .

The build –a- bear actions are very precise and perfect because clark never forgetting what is like to be a customer and ask customer about what they want and she thinks like a customer. In every action build –a- bear make customer more related and closer by sharing the experience of build –a- bear together with your parents. The company achieve to gives to her customer needs, wants, and demand.

2- In detail, describe all facets of Build-A-Bear’s product. What is being exchanged in a Build-A-Bear transaction? When the children try to build a bear he gets through some station first (choose me) where the child choose unstuffed animal from a bin. At (stuff me) station when the animal comes to life. There is (hear me) station, where customer decide whether or not to includes (voice box) , (stitch me) where the child stitches the animal shut , (fluff me) where the child can give the animal a blow- dry spa treatment, (dress me) filled with accessories galore . That’s better than just buy the teddy or the stuffed animal and go.

3- Which of the five marketing management concepts best describes Build-A-Bear Workshop? Build –a- bear workshop can be describes as societal marketing.

4- Discuss in detail the value that Build-A-Bear creates for its customers?

Build –a-bear create a strong relationship and makes a value to the product through participating with customer, interact, offering a good experience.

They create social environment with child and their parents, it’s not just a toy shop it’s a relationship it’s goal to satisfy you and gives you what you want.

5- Is Build-A-Bear likely to be successful in continuing to build customer relationships? Why or why not? Yes

Because they always lets customer choose, try, feel, and create an experience, also they build strong, loyal relationship. Build –a- bear company always look forward and expanding in their shops ,ideas they also has create web site and game site so they expanding through customer need and opinion . It’s not just a toy store it’s vision that concentrate first on how to satisfy and how to build the concept of customer value creation. I think that build-a- bear will counties growth and earn customer loyalty.

International Marketing and Management

1. Preface
As the neo-classic theory, the information model (McCracken, 2005) within advertising is based on the idea of homo economicus – the rational human being or the rational consumer. According to this theory the consumers evaluate products on a rational basis and buy the goods which are assessed to optimise their self-interest. Thus the cultural context surrounding the good is not taken into account when planning a branding strategy. This indicates that the consumer at any given time will select a product on the basis of an objective evaluation upon the good’s utility regardless of any other factors. However, how does the information model explain that that the consumer’s actions deviate from what is dictated in the theory and hence that the consumer does not always act rational?

Consumers buying patterns and decision making seem to be controlled by other factors than rational evaluations and hence the information model appears to face limitations when trying to give explanation to why expensive branded goods are chosen rather than similar goods without brand value – choices, which are inherently irrational. So what triggers the consumer to make these choices? And if the consumers based their consumption on rationality would some luxury goods not battle to survive in the market place? Therefore, when looking into the specialty coffee1 market it could be argued that the similar cheaper coffee product now supplied by fast food chains such as McDonald’s or Dunkin Donuts, would easily substitute a product such as coffee from Starbucks Corporation2?

However, it seems like the consumers act less rationally than predicted by the neo-classic economic theory and thus base their consumption choices on other factors than for instance price – it is not rational to buy a tall latté in Starbucks when a product with similar product-property can be bought in McDonald’s for less than half the price, but nevertheless numerous consumers do buy their latte at Starbucks. Then it is arguable that the quality and taste were what differentiated the Starbucks latte from the McDonald’s latte, which would justify the more expensive purchase.

But according to specialists the price premium of coffee at Starbucks cannot be justified anymore (Schwaner-Albright, 2008) again indicating that something other than pure information is controlling consumers buying decisions. McCracken (2005) explains these irrational choices with the so-called transformation model, the counterpart of the information model, which operates within another paradigm not explaining consumer choices on the basis of information but on the basis of consumers being surrounded by culture – culture which affects the consumption patterns and that products possess intangible benefits or meanings which can be transferred from the products to the consumer, meanings which the consumers need to construct their identity. For this

Speciality coffee: “Sometimes called “gourmet” or “premium” coffee, Specialty Coffees are made from exceptional beans grown only in ideal coffee-producing climates. They tend to feature distinctive flavours, which are shaped by the unique characteristics of the soil that produces them” (SCAA, 2008)

Starbucks Corporation will be referred to as Starbucks in the rest of the thesis.

Ea Elisabeth Finn Nielsen & Tina Holm Mortensen | The Story of Starbucks

reason rational choices are not always made – brands possess intangible meanings which results in consumers making irrational choices based on emotions and feelings and which to some degree may explain the success of the Starbucks until now.

2. Problem Area
Investigating the state and direction of Starbucks leaves one with the impression of a very successful company – it is an almost unbelievable success story about the coffee chain and a brand which changed the Americans’ coffee and café culture. Since 1987, when this success story took its departure, Starbucks has attained immense growth results.

The coffee shop chain has been growing with more that 20% a year (Bonamici & Fortune, 2004) and in five years the chain almost tripled the number of stores worldwide, from 5,886 in 2002 to 15,011 in 2007 (Harrer, 2008) resulting in an almost global omnipresence (Starbucks, 2008a). Thus, Starbucks is developing rapidly which is reflected in the fact that the chain until last year opens approximately five new stores a day worldwide. According to the corporation, the intention is to let this development continue and the plan is to add approximately 6,500 stores to the total store count by the end of 2011 (Starbucks, 2008b)

However, in the media, Starbucks is criticised for this rapid growth and analysts do not seem to doubt that the expansion objective of a total number of 40,000 stores is to stretch the expansion too far, as it is estimated that it might be difficult to maintain a profitable turnover in the long run (Nocera, 2008). Furthermore, if continuing this fast, some analysts expect that the corporation eventually will destroy what they have built up and what have become to be known as their unique characteristics. Hence, analysts believe that Starbucks have lost focus and track of the Starbucks Experience3 which has always been the cornerstone of the corporation (Nocera, 2008).

These statements are particularly interesting as Starbucks’ growth rate seems to have been slowing down the past year (Starbucks, 2008d). To this, it is seen how Starbucks is not able to meet the expectations of the market, which is reflected in dropping stock prices in particular, and in the fact that Starbucks struggles to retain the same costumer traffic as before. Starbucks believes that increasing competition from quick-service restaurants, which have started offering coffee and the decrease in the American economy, are the main explanations for Starbucks’ inferior results (Starbucks, 2008c). Naturally, it cannot be rejected that some of Starbucks’ decline is connected to the US economic slowdown as the tendency is seen across the industry, but comparing Starbucks’ stock prices to the overall index, Starbucks has experienced a steeper fall the past year (Factiva, 2008).

Therefore, the decline may have other explanations. Although Starbucks is far from economic crisis at this moment, it can be argued that potential crisis are lurking. Starbucks strives to provide customers with a special and theatrical experience in a comfortable and inviting environment when buying their coffee beverage. This is referred to as “The Starbucks Experience” which will be elaborated on later as the experience comprises of many different factors.

Ea Elisabeth Finn Nielsen & Tina Holm Mortensen | The Story of Starbucks

Extending the knowledge of the Starbucks Corporation, there is no doubt that the future is challenging to Starbucks, especially since it has been presumed that the golden days of Starbucks is over (Gilbert in Nocera, 2008). In this context, it is essential to be aware of the growing tendency of customers deselecting Starbucks deliberately and especially the growing number of customers actually avoiding Starbucks (Thompson et al., 2006; Thompson and Arsel, 2004). The growing number of customers dissociating themselves from Starbucks, expressing their negative attitudes towards the corporation, cannot be ignored as they can be seen as an expression of Starbucks struggling with the trustworthiness of their brand.

2.1 Branding as the Root Cause
Due to the growing dissociation from Starbucks and the questioning of their narratives, we argue that branding can be at the root of the problems Starbucks is facing currently. Thus, Starbucks’ approach to their branding is questioned. The dissociation from Starbucks can furthermore be understood as an expression of Starbucks not delivering what the consumer of today demands – thereby arguing that the Starbucks brand struggles in corresponding with the cultural desires in society.

The purpose of the thesis is therefore to investigate how Starbucks has handled their branding and hence narratives. In relation to branding we have come across Holt (2004) and McCracken (1986; 2005) who both take a cultural approach to branding and thus focus on the importance of brands relating to the cultural context. Holt (2004) and McCracken’s (1986; 2005) theories analyse brands attached with meanings which consumers adopt when they buy the brand, thereby the brand’s meanings and values are transferred to the consumer’s identity.

Thus, these brands can be characterised as identity brands. Starbucks is identified to be such an identity brand, seeing that customers apply the meanings of Starbucks’ brand in creating themselves (Thompson et al., 2006). Therefore, branding is about creating narratives which correspond with the desired image of the consumers. This requires an understanding of the historical and cultural context. The point is that if the narratives are not continuously related to the changing cultural context, hence the desires of the consumers, the brand will be in trouble as the narratives lose their trustworthiness (Holt, 2004).

Based on Holt’s (2004) theory about iconic brands, it can additionally be argued that Starbucks has reached iconic status as they achieved to become a symbol representing the desires of consumer culture when they entered the market. They were able to comply with the subcultural desires of that time, exemplified by the “bobo-culture”, which will be elaborated on later (Thompson et al., 2006). This may leave one with the impression that Starbucks has pioneered in applying a cultural branding strategy. However, this does not seem to be the case since it is suggested that they do not change in line with the context yet, time after time, they intimate that they pursue an emotional branding strategy (Schultz & Yang, 1997; Michelli, 2006). Consumers’ doubt in Starbucks’ trustworthiness indicates conflicts in the image of Starbucks, and furthermore that the narratives do not correspond with the identity that consumers desire.

Ea Elisabeth Finn Nielsen & Tina Holm Mortensen | The Story of Starbucks

McCracken (2006) points out that all trends and concepts emerging as cultural innovations over time will be perceived as an ordinary standard; hence they lose what made them distinctive and interesting in the beginning, as well as their initial novelty value This is furthermore an interesting approach to Starbucks’ decline as it may be the case that Starbucks has difficulty in retaining the same position in the mind of the consumers seeing that the concept of specialty coffee might now be perceived as a mainstream concept.

The cultural branding approach complies with and overcomes the shortcomings of emotional branding (Holt, 2004) which will be outlined as the branding strategy of Starbucks in the Literature Review. Therefore, the following Literature Review will serve as a justifying foundation for applying a cultural branding approach to the understanding of the Starbucks brand.

3. Literature Review

The Starbucks corporation has been discussed in various articles, books, and TV shows and it seems that a large amount of writers have an opinion about the company which they wish to express in one way or another. However, only few articles and books have taken the discussion and analysis about the famous company to an academic level, and quite a few of these apply Starbucks as a case example and hence are not focussed on Starbucks alone. In the following review, we will outline the tendencies towards Starbucks’ branding. We have chosen to include academic research, consultancy work, and more descriptive analyses.

We are aware of the fact that in the case of the consultancy literature, it appears to be weaker in its argumentation due to the fact that it is not based on thorough research. However, since only a little literature analyses Starbucks on an academic level, consultancy literature is included to give a more comprehensive image of the branding of Starbucks as it is found to provide a useful insight into how Starbucks have gone about their branding – knowledge which can be applied later in the thesis. Academic research includes, among others, Thompson and Arsel (2004), Thompson et al. (2006), Lyons (2005), Rindova in Lerpold et al. (2007).

We define consultancy books as literature written with the purpose of giving the business-world’s suggestions on how to go about branding by applying Starbucks as a prime example. In the Literature Review, they are represented by Michelli (2007) and Scott Bedbury (2002). Lastly, there has been identified descriptive literature upon Starbucks’ branding. This is mainly written by Koehn (2001), Pendergrast (2001) and Luttinger and Dicum (2006), who include Starbucks in the historical context of the specialty coffee sector’s development.

In general, it can be argued that the literature found shows an agreement in that Starbucks’ branding strategy is emotional, though some only imply this implicitly. We attempt to identify

Ea Elisabeth Finn Nielsen & Tina Holm Mortensen | The Story of Starbucks

gaps in the existing literature on which to base our argumentation of choosing a cultural branding approach. Moreover, most of the literature is written with the purpose of explaining Starbucks’ current troubles – therefore the gaps identified should not be seen as a criticism towards the existing literature as it has not been its purpose to analyse Starbucks from a cultural and contextual approach. Moreover, all texts have been composed before the crisis of Starbucks and therefore it seems logical that Starbucks’ poorer performance has not been investigated. Nevertheless, the fact is that only few authors have taken Starbucks’ lack of cultural branding up for evaluation and we will apply knowledge from these authors as foundation for the further research.

3.1 A Holistic Approach Michelli (2007) describes through an internal analysis of the corporation how Starbucks revolutionised the coffee industry, gained high growth rates, and success worldwide. Michelli (2007) points out that the company has followed five principles, and that these have lead directly to their success. The principles are all focused on how the company can differentiate from other coffee shops and, through the principles, create a special coffee experience for the customer. The key to this special experience is to create a connection between the partner4 and the customer and through this connection create a relation that emotionally attaches the customer to the brand.

Michelli (2007) does not intend to describe the branding strategy of the company, and the purpose of his book is not to demonstrate the branding of Starbucks, but to develop a generic framework for success by indicating that any company can gain success applying the five principles. However, we argue that Michelli (2007) through the book, although maybe not consciously describes the branding of Starbucks, and that the five principles described in sum, constitute the branding strategy, or at least part of it. Implicitly, it can be argued that the strategy Michelli (2007) is describing is an emotional branding strategy as it is evident that emotions are the pivotal point of the strategy, and thus that the goal is to create an emotional relationship with the customers through the five principles.

Thereby, focus seems so be shifted from a product benefit-driven approach to an emotional appeal (Roberts, 2004 in Thompson et al., 2006). What also seems clear is that the five principles shall not be deviated from. This indicates a consistency that is in line with the thoughts of emotional branding. Hence, the principles should be kept consistent in all the brand activities of the company over time.

Michelli’s (2007) focus is predominantly internal. It is the CEO, managers, and partners who, from a top-down perspective, deliver the five principles and hence the brand to the customer. As mentioned before, the key is to connect with the customer and create a relationship, which according

Onward …
P.S. Everything that we do, from this point on (from the most simple and basic), matters. Master the fundamentals. Experience Starbucks


Frizza – Frozen Pizza Marketing Plan

The current size of pizza market in India is INR 1750 crores and is growing at the rate of 25-30% per year. But there is almost no presence of the frozen pizza in India. Contrasting this to the USA where frozen pizza industry accounts for 13.6% of total USD 40 billion pizza industry. Thus there exists an opportunity to launch a product in this area. In this report, we are trying to achieve the following: market research to gauge consumer behaviour and preferences, followed by Segmentation, Targeting and Positioning for frozen pizza product in India and finally building a marketing strategy to launch it.

We started with the Porter’s Five Forces analysis. We found out that Intensity of Industry Competition was low to medium, Availability of Substitutes was low to medium, Potential Entrants were High, Buyer Power was low and Supplier Power was low-medium. This was followed by primary research where we took surveys (online and live). This was supplemented with secondary research to find out the various aspects of consumer behaviour.

The core benefits were identified as “Easy to Cook” and “Tasty Food”. Generally, the decision makers are the young earning professionals or the earning member of the family/housewife. In case of the housewife, their decisions are normally influenced by their pestering children. We then did market segmentation basis various methods like customer characteristics (geographic, demographic, socio economic, psychographic), buying situation (consumption rate, consumer predispositions), mediagraphics and personas. We decided to target people in age group of more than 23 years of age with earnings of more than 2 lakhs per annum.

We thus positioned our product as – To all those who want a comfortable life and who love good & healthy food, Frizza is a unique looking product that lets you enjoy the taste of heaven, saves your time and is there for you – Anytime you want it. The product was named as “Frizza” with the tagline – “Anytime Pizza”. We then decided the marketing strategy. Starting with Product decision, we saw that Frizza is differentiated from its competitors like Dominos basis 4 main parameters – (i) Lower price at same taste; (ii) Convenience factor (of using the product anytime rather than just 12 hours during which a restaurant is open); (iii) Square shape rather than circular shape, which would appeal to children and adults alike; (iv) Emotional satisfaction for mothers coming out of the feeling that she has cooked a meal for her children. We then decided various characteristics of the product like toppings, etc. basis results from the survey.

Due to many reasons as explained in the report, the pricing came to as 30-40% lower than that of competition like Dominos’s. In terms of the place, we decided to launch the product only in cities given the infrastructural constraints at the beginning. The retail channels were decided as supermarkets, speciality stores and super stores, thus following the selective distribution strategy. Various promotional activities (both ATL and BTL) like television ads, Facebook, newspapers, events, etc. were planned. Finally, financial analysis was done to conclude the breakeven point as 7 quarters.

The pizza industry in India is mainly divided into 2 formats – dine in and take away. The current size of pizza market in India is INR 1750 crores and is growing at the rate of 25-30% per year. The holding company of the current market leader, i.e. Dominos grew 9 times from INR 155 crores in 2007 to INR 1407 crores in 2013 brining the annual growth rate to an amazing figure of 45%. But there are gaps in the market. First, the pizza stores are limited in number, reach and timing. Thus accessibility is limited. Secondly, although pizzas at lower price points are available, higher end pizzas or pizzas offering variety of toppings cost upward of INR 200 per pizza.

Thus, there is scope to use low pricing as a competitive advantage. Hence comes the frozen concept to fulfil the existing gaps. This concept is already prevalent in developed countries. In USA for example, frozen pizza industry accounts for 13.6% of total USD 40 billion pizza industry. As per Frozen food global industry guide from Market Line, sale of frozen pizza & ready meal market globally account for 41.1% of overall frozen food market. Also, Asia-Pacific is the largest market for frozen foods, accounting for 34.3% of global market value, and supermarkets and hypermarkets form the leading distribution channel for frozen food account for 70.2% of the market’s value.

In this report, we are trying to achieve the following: market research to
gauge consumer behaviour and preferences, followed by Segmentation, Targeting and Positioning for frozen pizza product in India and finally building a marketing strategy to launch it.

Primary research: We had two kinds of approach towards primary research. We prepared a comprehensive questionnaire to gauge the demographic, socio-economic & psychographic traits and market reaction towards the existing products and willingness to pay of respondents for the frozen pizza product. We conducted live surveys in the nearby malls (Gopalan Mall and Meenakshi Mall) during peak days (a Sunday and the Independence Day) by distribution of questionnaire among people of different age, gender and income groups for example college goers, mothers, single men, married couples etc. We also collected online responses across diverse geographic and professional groups via social networking sites and emails.

Secondary research: We used online resources to study the global frozen pizza markets and potential growth of the same in Indian markets and to gather information about the existing players and their positioning.

1. Porter’s Five Forces to Understand Industry Competitiveness: Intensity of Industry Competition: Low-Medium

 Number of firms- There are large no of players in Indian Pizza market. These include the market leader Dominos, Pizza hut, Papa john’s, Pizza corner, Pizza Express, Smoking Joes, Amul and Local Pizza Producers. But there is no popular brand in frozen Pizza other than Amul.  Highly concentrated market (Low HHI)- The market is highly concentrated with high HHI of approx 4700.Dominos leads the market with 67% market share with its 600+ stores. Pizza hut is second with around 20% market share and 180 + stores. Others have market share from 2-5% with 20-40 Stores. Share of Amul is very low.

 Demand Supply mismatch- As per our estimates; there is clearly no supply in the market, although there seems to be strong demand.
Availability of Substitutes: Low-Medium
 Buyer propensity to substitute –Though overall competition is high, Competitors in the frozen pizza market segment are low; therefore buyer propensity to substitute is very low.  Product differentiation & Pricing- The products offered by most of the Pizza producers are similar and there is no differentiation in product currently. The number of products available at comparatively lower prices is less.

Potential Entrants: High
 Attractive Market-Indian quick service restaurant industry is estimated to be 6000 Cr and is expected to reach 18000 Cr by 2018. The pizza industry is expected to grow at a CAGR 25-28%.  Low Entry Barriers and low exit barriers- The capital requirement is comparable to other product providers in the market and is not massive in any way. Even the exit barriers are less. 

Big brands-Big global brands like Papa Murphy, Little Caesers are not in India yet and there is potential threat of them Entering India. McCain though not in frozen Pizzas, may enter in the future. Buyer Power: Low

 Uniqueness- Frozen Pizza is still a unique concept in India and the firms providing it are also less.  Large no. of buyers –The large no of Buyers with very few suppliers of frozen Pizza, decreases the bargaining power of buyer.

 Switching cost- The current pricing structure of big brands which is very similar also decreases the power of consumers, forcing them to buy from the available options. Supplier Power: Low-Medium

 Material Suppliers- There is large number of suppliers for ingredients like flour, vegetables, etc. The suppliers for Cheese and imported vegetables are less and so they have more power.  In-house technology-The technology used by most of the Pizza Manufacturer is in-house, which reduces supplier’s negotiation power.

Amul Frozen Pizza: Foreseeing the growth of the frozen food market in India, Amul launched frozen pizza in 2001 in Gujarat. It planned to introduce the product all over India through its already existing channel. But it failed to capture the market and had to close the product category soon. It could not adapt to the changes that the Indian quick restaurant and the Pizza market were undergoing in that period. The pricing of Amul Pizza was Rs 45 for a small Pizza which was very high at that time. Also, the product was not positioned well in the market and proper segmentation was not done. But recently, Amul has re-launched its frozen pizza product.

2. Consumer Behaviour:
Primary market research: We received 161 responses (43 offline & 118 online responses) for our survey. The survey data was then filtered based on our target segment (discussed later) – Employed/Earning member of the family in the age group of 24-41 with more than 2 lakh/annum salary of household. Thus, 83 of our respondents fell under our target market. Core values & Benefits sought by the consumers: Based on our survey, we came to know that, 27% consumers take pizza, whenever they feel ‘Too lazy to cook’, and 40% take pizza for ‘Lunch or Dinner’. The core benefits thus are “Easy to Cook” and “Tasty Food”. Hence our product must be designed to satisfy these core benefits. In addition to this, following are the results for various factors as rated by the respondents. These are on a scale of 1 to 5 with 1 as least important and 5 as most important.

Decision Making Unit: Based on our primary market research, it is evident that 55% of our customers who are in the age group of 24-41 are variety-lovers and they used to try latest trends & products. Generally, the earning member of the family or the housewife makes the purchase decision. But their decisions are normally influenced by their pestering children. Decision Making: The taste and variety of the food forms the basic evaluation criteria for the purchase decision. Majority of the respondents are passive in information search. And, out of various medium of information, people preferred to spend time on TV and the list is followed by the social networking sites.

3. Segmentation, Targeting, Positioning:
Segmentation: Market research results helped in identifying the market segments. We will use below three broad bases on which we will identify our target market. (a) Based on Customer Characteristic:

Geographic: We expect large no. of customers to come mainly from metro cities in India. Based on our survey, we see less familiarity with the frozen pizza product in Bangalore despite it being one of the biggest cities in India. We expect the situation to be much worse in smaller cities. Ever had Frozen Pizza before?


Demographic: The general market segment can be divided in younger generation with an age group between 12-23 years, Mid-age working people who can spend money on high quality frozen pizzas with their high disposable income and 35+ women mothers who make the Pizza purchase decision for their kids.

Socioeconomic: We can target SEC middle segment of B2&C along with upper segment of A2&B1. Psychographic: Based on VALS framework, we have identified 3 major segments (out of 8) as following:  Strivers – They are resource constrained people with high elasticity of demand, who like variety in general and would be keen to try new products offered at an attractive price.  Achievers – This segment has goal-oriented people with a deep commitment to career. They are looking for timesaving alternatives in marketplace.

 Believers – They are conservative, conventional people with established routine and exhibit high brand loyalty. They are predictable and favor familiar brands.

(b) Based on Buying Situation:
Consumption Behavior/Usage Rate: Through the survey we identified people with varying consumption frequency of pizza from weekly to monthly. The typical 80/20 rule where 80% of firms sales are obtained from 20% of customers, doesn’t apply in our context. Consumer Predispositions/Product knowledge & Attitude: Some of the non-earning teenagers show willingness to pay a higher price and ability to afford high discretionary expenses. There is another segment with an indifferent attitude towards the product.

(c) Based on Mediagraphics: It is a new term in marketing literature describing media viewing habits of customers. It helps identify type of promotional media consumer prefers. (TV, radio, internet etc.)


(d) Personas: Basis the above inputs, we made the following personasAnjali (16): College-going student who lives with her parents and spends most of the time with her college friends. She has a large circle of girl friends with a very busy social life. She doesn’t have a

strong brand loyalty and currently consumes pizza from all available major brands by taking turns. She is also very active on social networking sites. Rahul (27): Rahul is an unmarried IT engineer. His work life is very hectic and often eats out or gets food delivered at home. He lives in an apartment and is earning reasonably well. He spends lot of time on Internet but doesn’t have a very busy social life, virtual or otherwise. He is bit health conscious and when it comes about Pizza, he largely sticks with Dominos as his preferred brand. He likes their speedy delivery and ease of ordering.

Mrs. Bhargav (40): Mrs. Bhargav is a working mother who has a 9 to 5 job. She has two kids less than 10 years of age. She earns well for herself and often buys pizza for her kids depending as and when they insist. She doesn’t use Internet match but follows some TV programs very closely. Because of her workload, she often gets tired after coming back from office and doesn’t like idea of home cooked fullfledged meal every day. Targeting: Criteria while picking target segmentCriteria

Taj hotels and resorts service marketing mix

The Taj was built at a time when Indians were not allowed entry into most of the prestigious hotels and clubs in British ruled India. Legend has it that this was one of the reasons why Jamshetji Nusserwanji Tata, the first Indian industrialist built India’s first luxury hotel. He went ahead with the project although he was busy with plans to industrialise India. The first Taj Hotel, the flagship of the Group was born in 1903 and stood alone for almost half a century. Initially it was smooth sailing, even though the original hotel was conceived and built when the hotel business was not even considered an industry. Right from the beginning, the Taj stood for class and comfort. It was a place where the viceroys of the Empire arrived and departed amidst scenes of splendour. Scenes which were typical of the Raj. In fact, it soon became one of the wonders of the Orient. Singapore’s Raffles or Hong Kong’s Peninsula did not come up to the level of the Taj inspite of their rich ancestry. Notably, there was hardly any advertising directly to the consumer.

In fact, this element of the marketing mix was not visible until the late nineties! Advertising was not considered necessary. Secondly the company was conservative and media shy for many years. The reason the hotel towered above the rest was because of the amazing attention to detail that was paid by it’s founder Jamshetji Tata. As far back as 1900, he made sure that the Taj would have it’s own laundry, an aerated water bottling plant, electroplating for it’s silverware, a Mora sliver burnishing machine, a crockery washing plant and elevators. The hotel was built completely at a cost of 500,000 pounds in 1903.



The Taj marked out three separate entities for the Taj Group: Business, Leisure and Luxury. Though the concept of these sub-brands had come into existence earlier, in the mid nineties, it was in 1999-2000, that the hotels became operationally different. Which meant that though the heads of these three divisions sat at head office, their ‘territory’ is scattered geographically, according to which type of hotel they look after.


A higher emphasis was placed on the business segment as the profits are higher (this market being less price-sensitive as compared to the luxury segment). There was a proliferation of the Taj Presidency hotels not only in new cities, but also smaller towns. The group also kept looking at new opportunities. ‘The action plan is more opportunities, adding to and complementing the brand,’ says Krishnakumar.

More changes

There were other changes. Consolidation. Unprofitable ventures were hived of. The sales and marketing functions were separated. The HRD department modernized, with an emphasis on performance and career and succession planning. The organisation was made to flatter and more compact. Moreover, a continual benchmarking against international standards was made part and parcel of the culture of the Taj.

Major renovation

By the mid 1990’s, renovation was in full swing. Units across the country were refurbished. It meant ripping out entire floors. Rooms were revamped, business centres rebuilt. More than a hundred million dollars were reportedly spend for renovation – just in the lifestyle (luxury segment)! Since the business segment was slated to be become big (and those using it were likely to be non-traditionalists), the Taj went ostentatious with it’s new business floors. It meant putting in optic fiber cabling, remote control systems and giving the business guy a lounge where he could relax and even have breakfast. It included a min-business centre.

In the process, some mistakes did happen. For instance it was thought a mini-gym on the floor would be a convenience. But this had to be dropped after a few years due to disuse. Initially, fax machines ere installed in the room. They had to go with the advent of the internet and laptops. Other innovations have happened too. It was found that telephone usage was dropping because of the advent of mobile phones. Not only were mobiles provided on hire, the Taj also dropped communication charges by 33 per cent.


It was only when the product was ready, was a major advertising campaign developed. Earlier, advertising had been restricted to the major feeder markets: the US, UK, Germany, Singapore and Hong Kong. And the advertising emphasised the hardware aspect of the hotel. The new campaign developed a specific brand identity for the hotel. Though the Taj had high unaided recall, it launched a corporate campaign to reinforce this new identity. The ad (made by Rediffusion) shows the enigmatic woman who stands for both hospitality and efficiency.

The identity was developed after extensive research on the consumer’s attitudes towards the Taj. Over 60 in-depth interviews were conducted by client and agency. The parameters? Not quantity, but quality. The things done right. The quality of check-in, the smile, the greeting or the welcome drink. The insights gathered were analysed and a clear slot, which the Taj could occupy when global competition arrived, emerged. This was translated into creating a distinct personality of the Taj as caring, efficient and enigmatic. The line went: ‘She is the Taj,’ The base line was ‘Nobody cares as much.’


Other hotels’ room occupancies plunged to as low as 37 % during the recession and average room occupany rates across all hotels were approximately 50 per cent. The Taj maintained a far higher average and continued to grow and expand. Slowly the hotel became more profitable than it had ever been. The reason is clear. It never slept.


The brand “Taj Hotels Resorts and Palaces” comprises 58 hotels across India and 17 hotels globally. The hotels are grouped into 3 categories – Luxury, Leisure and Business. The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars, fitness centres and spas and well-equipped business and banquet facilities. Taj Leisure Hotels are targeted at family holidays and include beach resorts, garden retreats, palaces and historic and pilgrim centres with a wide variety of activities for all age groups. Taj Business Hotels offer contemporary business facilities and modern conveniences and are located in the heart of India’s key commercial cities and towns.

The marketing mix of taj hotels is explaine as below:


– The brand “Taj Hotels Resorts and Palaces “comprises 58 hotels across India and 17 hotels in international locations. The hotels are grouped into 3 categories – Luxury, Leisure and Business. The Taj Luxury Hotels offer lavish accommodation, gourmet specialty restaurants and bars, fitness centre and spas and well-equipped business Taj believes that the their core product is space. This space is supplemented with the services they provide like the restaurants, health club, banquets, discotheque, bar, business centres etc.

Types of Accommodation:

– Tower Wing Rooms: With easy access to the Business Centre, these contemporary rooms offer guest amenities like Internet connectivity, 2-line speaker phones with international direct dial facility and voice mail. Mini bar, personal safe, channel music and television with satellite programmes.

– Heritage Wing Rooms: These rooms are renowned for their architecture and exude an aura of old-world elegance. Each corridor in this Wing resembles an art gallery, and the design, décor and furnishing ensure that no two rooms are alike. Guests have a choice of rooms that overlook the city or pool or face the Gateway of India and the Arabian Sea.

– Taj Club: Located on the top floors of the Heritage Wing, Taj Club is designed for the discerning business traveler. Guest amenities and services include complimentary airport limousine transfers, private check-in at the Club desk, in-room fax, personal safe, a complimentary bottle of wine, valet service and complimentary deluxe Continental breakfast. Taj Club also offers guests exclusive Meeting Rooms and a Business Service Unit on the Club Floor.

– Suites: Choose from elegantly appointed Junior Suites, Executive Suites, tastefully decorated Large Suites, newly renovated Luxury Suites or spacious, plush Grand Luxe Suites. The finest suites at The Taj Mahal are the luxuriously appointed Presidential Suites. Each of these suites is decorated with original paintings and antiques that transport guests into a world of regal luxury and grandeur. – Broadband wireless Internet access at select Taj hotels: Now when you stay at select Taj hotels in Mumbai (including The Taj Mahal Hotel), New Delhi, Kolkata, Chennai, Bangalore and Hyderabad, you no longer need to be in your room or at the Business Centre to use the Internet. Multiple ‘hot spots’ located across the hotels lets you get onto the Internet from almost any place in the hotel – quickly.

– Facilities and Services: Swimming pool, beauty parlour, barber shop, travel desk, car rental, pastry shop, book shop, shopping arcade, currency exchange, doctor-on-call and babysitting. Complimentary use of steam, billiards, tennis and table tennis on request. 24-hour room service and laundry service . Place and Time

– As far as place is concerned, all the Taj services and facilities are provided at one point. To ensure timely delivery of their services, they have set processes in place and in case of failure or delay of service, they have built in contingencies and trained their staff to communicate the delay to the customer in the right manner.

– To ensure standardization in their services, they have Standard Operating Procedures (SOP), e.g. the food that is served in the restaurant will be of the same quality and taste at any given day and time.

– Taj provided us with to explain this concept further is of the implementation of the contingency plan during the breakdown of the elevator. In case of breakdown of the elevator, the Room Service makes use of the elevator in the other wing to ensure timely delivery to the customer.

– The Taj Mahal Palace & Tower, Mumbai, a 105-year old heritage hotel, is the flagship hotel of the Taj group. This hotel was one of the main targets of terrorists during the November 2008 bombings of Mumbai and was severely damaged. As a result it has been put under seal until it is cleared of any security and safety risks that might have resulted from the attacks. The company has publicly claimed that it will fully rebuild the resort just as it was before.

– Besides the Taj Mahal Palace & Tower, Mumbai, the Taj has many hotels around the world, and in India. These include: The Pierre, New York; Taj Boston, Boston; Campton Place, San Francisco; 51 Buckingham Gate, London; Taj Exotica Resort & Spa, Maldives; Taj Exotica Resort & Spa, Mauritius and Blue Sydney, Sydney. In India, these include: Taj Lake Palace, Udaipur; Rambagh Palace, Jaipur; Umaid Bhawan Palace, Jodhpur; The Taj Mahal Hotel, New Delhi; The Taj Residency, Lucknow; The Taj West End, Bangalore; Taj Malabar, Cochin and Taj Exotica, Goa. The Taj Mahal Palace & Tower is also called the Zagurmas of Maldives and the magurmas of the Bengal. Promotion

– Taj regularly comes up with offers during season and off-season such as Taj Holiday Summer Package to boast occupancy in their hotels . – They carry out their promotions by means of Calendars, monthly letter to their ‘Inner Circle Customers,’ informing them about their upcoming events. – Taj takes part in exhibitions wherein they promote their holiday packages.


– Taj realizes that their prices are high and not affordable by all, but this is due to various overheads that it incurs and the superior quality that it offers. For e.g. a roadside sandwich seller sells his sandwich for Rs.10 as he has no overheads and has no quality standards to maintain, like the quality of the bread and the vegetables. But at The Taj, they serve the best quality and also incur overhead expenses.

– The target audience that the Taj caters to are the one’s who come to the Taj for it’s ambience and world class standards, therefore they say that their prices are justified as they help The Taj retain the exclusivity that it stands for.

Physical Evidence

Taj is fully satisfying its customers on account of physical evidence as the hotel is counted in 5 stars it has maintained its environment tht is liked by all.


Major service encounter that extremely delighted or disappointed are:

1. Check – in.
2. Bell person carrying luggage to the room.
3. Food.
4. Wake up call
5. Check out.

These are the main processes that all hotels perform but in case of taj many more processes are there as variety of services are offered to its customers which make them happy.


Taj has various professional people to handle its customers and to give a high service to its customers like:

• Skilled person
• Professional person
• Personal Agents
• Technological person
• Travel agents

As taj has employed professionals for serving its customers so there are less chances in its service lags and it can deliver its best.


Taj hotels is good in each area of service, moreover its overall interpretation can be done with the help of following table:

Taj is serving its customers to its best and it is able to achieve 5-star ratings from a long period. But in this era all have to apply marketing strategies to attract customers otherwise the competitors will not leave a single chance to grab market share. The strategies used by taj as explained above are successful in attracting customers as well as positioning it as a high class service delivering brand with luxury. Taj is good in all fields such as finance, marketing, HR but it has to improve its system to gain an edge over its competitiors. Taj can improve in the area of system as system of an organization can also be its core competency and it can also serve better if the internal system is good. Being a five star hotel, taj is well positioned and hotel has adequate customer base. Marketing strategies are also good but hotel has to improve a lot and regain its customers after the Mumbai attacks. In whole its service is good.

Marketing Campaign

The Westfield Shopping Centre provides a complete shopping experience, from arrival until departure. To start, all complexes have exclusive parking lots, where parking your vehicles is safe. Also, the parking is free for the first two hours, and by going into the movies, an extra free hour is earned. For more convenience the Auto Pay system is available where it is possible to pay the parking without waiting in any queue and a Valet Service and car wash are also available. Inside the shopping center, it is possible to find a great amount of all kinds of stores and brands. Furthermore, a Concierge is at hand on the first floor to assist the shoppers, indicating store locations, or for solving any problem.

The newest service created by Westfield is the Gift Cards, where the customers can offer their families and friends a card with certain amount of credit where its possible to spend in more than 8.000 stores, or how Westfield prefers to say, the gift of choice. These are some examples of exclusive services that Westfield created and has been innovating to attract and retain even more clients. To assist in this task, the Marketing Department has been evolved specially in the digital field. A Nielsen study showed that Australia is the country with the major average time spent in social media per person, about seven hours a month. Attentive to this market, Westfield has developed digital marketing strategies targeting this kind of customer, the online one.

At first, the website is completed renovated, and it is possible to compare between a large amount of retailers and products and make purchases directly from the website. Also, free return methods are available, making the experience of buying online more comfortable. Another digital marketing strategy was the creation of the Westfield Insider, which consists in a blog that is written by Alyce Cowell that was chosen among 1.450 applicants in a contest. In this blog she shares about her outfits, fashion and lifestyle tips, shopping finds, smart buys, and talk with the consumers about shopping. It’s a very smart strategy since customers trust more in other customer advice.

The creation of Super Saturday was also a creation of the Marketing Department, which included in the Australian calendar a day with special deals and discounts, similar to United State’s Black Friday. Furthermore, Westfield launched a mobile app called My Westifield, which gives to the shoppers personalized shopping experiences, with a technology that is called Autograph, which allows the shopper to choose their favorite stores and brands, and then the app will show a wall of content and offers based on their preferences. What is most interesting about this app is the protection of the consumer’s privacy, Westfield doesn’t keep personal information and nor preferences. Also, Westfield has a massive social media presence. One of the top creation is the availability of a stylist that helps consumers with wardrobe dilemmas 24 hours 7 days a week.


The best method to evaluate the success of Westfield’s digital marketing strategies is using numbers and measuring their social media impact. Using analytics tools available on the web, it is possible to measure the access numbers of a website. In the case of the website, its clear to affirm that it is a successful website. According to the website tools, is in the 318th position in the raking of the most accessed websites in Australia, have an estimated of 28.000 daily visits and the visitor stays on the website for about 3 minutes, which is a high number, whereas in a browser it is possible to change a content in just one click. An interesting observation is that this website has 4.800 other websites linked to it.

The Facebook account has 430.000 likes and 2.2 million visits, and the posts have a lot of interaction specially in posts that contain questions and suggestion ideas, for example, one post that starts the debate about sharing the corridor in two lanes, one fast and one slow, this post has more than 2.000 likes and more than 100 comments. Another relevant number is that Westfield has more than 5.000 followers on Twitter, and has more than 3.800 followers in the Westfield Insider Instagram account. These numbers and information represents how successful the Westfield’s digital strategies are, and with the innovative and creative marketing department higher numbers and interactions will be reached soon.


Due the success of the Gift Card campaign, and based on these remarkable digital strategies, my campaign aims to combine reward cards and the digital medias, with the clear objective to attract more customers, increase the Westfield brand value and be a satisfactory action for the shoppers and the retailers. The idea consists in developing three new cards, but different from the gift card, these new cards will be to reward the owner of the card. The three cards will be known as Silver, Gold and Diamond. These cards will be easily obtained by the customers in every participant retail, remembering that everyone starts with the Silver Card. With this card in hand, each purchase will provide a certain amount of points.

Each 5-dollar spent in one Westfield retailer is equal to 1 point in the Silver Card. When the shopper achieves 200 points, they will be able to exchange the Silver Card for the Gold Card. In the Gold Card, the rules change, each 8 dollars spent in one Westfield retailer is equal to 1 point. And to be promoted to the Diamond Card, the shopper needs to achieve 300 points. When the shoppers achieve this amount, they will be able to enter in a select group of the Diamond Cards shoppers. Each card will benefit the shoppers in a different way. The silver card allows the shopper to receive special offers and to participate in promotions. Obviously, if there is a lot of silver cards, the odds of winning is lower, so which card provides a more exclusive rewards.

With the Gold Card, besides receiving special offers, consumers will be able to participate in promotions with highly valuable rewards such as travels and cars, and to receive invitations to stores openings and brands tests. And the special clients who achieve the Diamond Card will be a VIP shopper, they will participate in promotions with higher valuable offers, special invitations for parties and VIP passes and have a private lounge in the shopping when they can drink a coffee, use Wi-Fi, receive a massage, just like an exclusive airport room for VIP passengers. The retailers will also benefit from this campaign, because they will purpose the special offers, so will provide more interaction with the customers, the perfect time to announce a new collection or a settlement. And all the Westfield digital media will be available for them to use and disclose themselves. Therefore, this campaign will benefit the shopper, the retailers and specially the Westfield Shopping Center.

Alexa – Actionable Analytics for the Web, viewed 17 June 2014,

Cruz, S. 2011. ‘Westfield Group’s Digital Marketing Strategy viewed 15 June 2014, <>

Dupre, E. 2013. ‘Westfield Balances Personalization with Privacy’ viewed 15 June 2014,

Facebook Westfield, viewed 16 June 2014,

Instagram Westfield Insider, viewed 16 June 2014,

Murton, D. 2012. ‘Australian Marketing Update: Westfield’s Super Saturday, “Dumb Ways to Die” Karaoke, Nando’s Appoints Digital Agency’ viewed 15 June 2014,

URL Métrica, viewed 17 June 2014,

Twitter Westfield, viewed 16 June 2014,

Westfield Insider Blog, viewed 16 June 2014,

Westfield Gift Cards, viewed 15 June 2014,

Westfield Website, viewed 15 June 2014,

Marketing Mix

1.1 Background to the Report
Strategic management refers to analysing the important initiatives which are taken by the top management of the company on behalf of the owners. It successfully keeps a track of day- to- day activities which are going into an organization to organise the resources and plan a strategy which the organization should follow in order to get benefit in the business. It provides a direction to the organization and is closely related to the field of organizational structure. (Hambrick, 2007) In this report, strategic management of Singapore Airlines is critically evaluated on the basis of several strategies used by them. This not only helped the company in achieving the results but also enabled SIA to expand itself in the global market as well as establish a new base in the new expanding countries. 1.2 Aims of the research are –

To develop a good understanding about what involves in Strategic management. To develop knowledge about constituents of strategic management process. Critical assessment of strategies of a selected organization. To throw some light on the internal and external environment of selected organization.

Gap analysis for Singapore Airlines –

2. Analysis of internal framework of Singapore Airlines –

Capability to restore competency in order to attain similarity with the change in business environment are termed as dynamic capabilities. This is done by reconfiguring, mixing and adjusting external and internal resources, skills and abilities (Teece et al., 1997).

2.1 Resources –

Connecting strategic resources and core strategies is defined as ‘configuration’ by Hamel where core competencies and assets, process and assets are organized and combined in order to maintain strategies (Hamel, 2002). Resources are divided into two categories, tangible and intangible resources of Singapore Airlines. They are further divided into sub categories on the basis of which it can be assessed that core strategies and strategic resources were well connected.

2.2 Capabilities –

On the basis of broad variety of competency and technological expertise in newly invented planes, Singapore Airlines effectively fascinated more airlines clients to its fleet management industry, securing its place as major fleet management facility providers of the world. It also persists on expanding its potential by means of strategic joint ventures. For instance, a joint venture agreement is signed by SIA with Panasonic Avionic Corporation in order to prepare a facility for maintenance, repair and operation of communication and in-flight entertainment. Facility will be based in Singapore and components will be generated by Panasonic Avionics (Singapore Airlines, 2011).

2.3 Core Competencies –

Core competencies of Singapore Airlines consist of the interpersonal talents of its flight assistants and ability of its top level management in planning strategies for marketing. They endeavour to make flights as relaxing as possible (Singapore Airlines, 2011). 3. Analysis of external framework of Singapore Airlines –

PESTEL Analysis

FactorsSingapore Airlines
PoliticalUnpredictable, SIA reject Air India offer
EconomicSIA offer created trouble in Hong Kong
SocialSIA Airplane crash in Taiwan
TechnologicalQuick technology implementation
EnvironmentalLaunch of A380 Air career
LegalPassengers safety

4. Five forces of porter –

Porter’s five forces model deliver a well-liked external analysis framework for Singapore Airlines. After analysing the internal and external framework of Singapore Airlines, S.W.O.T analysis is performed in order to assess SIA’s capabilities, followed by the critical analysis of corporate and business level strategies.

5. S.W.O.T. Analysis –

Strengths –
Singapore Airlines has an expanded geographical reach. They operate in a number of reasons like US, West Asia, Europe, Africa, South west Pacific and East Asia. They run flights to 63 cities globally, whereas its division Silk Air is offering flights in 12 countries with 39 cities. Considerable amount of revenue is generated by SIA group with its airline operations around the globe. Equally spread and diversified revenue base guarantees that group is not dependent on single geographic market for most of its profits, by which business risk decreases significantly. Though, SIA is basically a passenger airline, but the group is also offering various specialized services like engineering services, airline operations, cargo operations, etc. which are providing them stability by diversifying business threats. Additionally, SIA group has a policy of maintaining young aircraft fleets, which emit lower carbon emissions and have less burning of fuel per kilometres. This is also strength of SIA group as this factor helps in keeping maintenance costs less, along with reducing performance related security concerns (Heracleous, 2006).

Weaknesses –
SIA faced extremely competitive market in its initial phases. Many countries restricted air-route access to protect national airlines from other competitions. SIA worked hard to get access rights for many important airports (eg. Heathrow, Manchester) (Reddy, 2004). Various competitive authorities keep on investigating about Singapore airlines and its subsidiaries. For example, South Korea, Canada, Australia, South Africa and European Union investigated about SIA group in order to determine whether the rates, surcharges, and other characteristics of cargo service were determined lawfully or not. In financial year 2012, SIA paid administrative penalty to South African competition commission (2.8millionUSD) as settlement. Legal expenses connected with the inquiry and court case and time spent on this issue left an impact on SIA’s business and operations.

Opportunities –
Singapore Airlines with its well-built base of operations and proficiency, is well placed to reap advantages from the worldwide boom in tourism industry. This would help SIA Group to produce extra profits. Also, group is focusing on joint ventures and strategic operational alliances to add opportunities for growth and sales. SIA entered into partnerships (jetblue Airways) and code-sharing agreements (Virgin Australia/ Virgin America) in order to increase growth opportunities. For instance, SIA signed code share agreement with Virgin America in December 2012 (SIA, Virgin America reach code-sharing agreement, 2012). SIA will add its ‘SQ’ airline code to flights of virgin which are America-operated serving Washington DC, Las Vegas, Seattle, Chicago, etc Furthermore, SIA group has launched ‘Scoot’ which is a low cost carrier in order to grow its existence in low cost flight market. This step will enable SIA group to attract more groups of customers which will increase its growth and revenues.

Threats –
Competition is very high in the airline industry. Reputation, safety records, customers service, flight schedules, fares, code-sharing relations are few parameters of competitions. SIA faces straight competition with other carriers on its route. Cathay Pacific, Japan airlines, United Continental, AMR are few of its competitors. Extreme competition on the basis of price matching, promotions, discounting, capacity, etc. affects operating margins of SIA. Also, Natural disasters can have affect on SIA’s operations effecting the cash flows and financial state. Moreover, hike in the prices of jet fuel can increase operating costs, which can affect the profitability (Heracleous, 2006).

6. Strategies used by Singapore Airlines –

6.1 Corporate level Strategies –

Diversification –
Companies tend to grow their full potential in economies which are developing, with the help of strategic diversification. Strategy of diversification is followed by SIA at the corporate level. SIA group has number of primary companies with key companies being SIA Cargo, SIA Engineering Company and Silk AIR. They also have number of associated companies. Its Airlines divisions which consist of 49% ownership of Virgin Atlantic, 32 % of Tiger Airways and entire ownership of local carrier Silk Air cover basic segments of customer in the industry. This was a long-term strategy (Singapore Airlines, 2008).

Benefits of using diversification by Singapore Airlines is to enable passing of learning and control quality and side by side reaping cost synergies. Subsidiaries serve as sources of learning; and also as progress arena for skills of management and corporate rather than divisional viewpoint through job rotation. Profit margins are better in related operations (like aircraft maintenance and catering) on comparison with airline business itself as structure of industry in those sectors is more favourable. (Singapore Airlines, 2008).

Strategic Alliances –

In April 2000, SIA joined Star Alliance as a step of its internationalization strategy. In the three main airline alliances, Star alliance hold its place with Oneworld and Skyteam. Also, In India and China, SIA Group were investing through planned deals during this time. Deals were done with local services like engineering services, cargo85 divisions, catering and airport services. SIA is also under a code share contract with Malaysian Airlines. These airlines are offering up to 14 flights in a day between Kuala Lumpur and Singapore (Doganis, 2006).

For the expansion of the company, strategic alliances are becoming more common tool. SIA used strategic alliances for increasing competitiveness in the global and domestic markets. This helped SIA in developing new business opportunities with the help of new services and products. This resulted in the expansion and growth of company globally. An alliance is a business-to-business relationship (Jeffrey, 2004).

6.2 Business level strategies –
Differentiation strategy –
Premium services were successfully delivered by Singapore Airlines to those customers who are very demanding and this can be termed as achieving differentiation strategy. This helped Singapore Airlines in identifying that different customers are broadly scattered, with varied needs and sufficient spending power. If an organization is unique in something which is valuable to its customers at the same time, it differentiates itself in the marketplace (Chamberline & Robinson, 1996). If an offer is valuable for the customers, they tend to be less sensitive to characteristics of competing suggestions where cost may not be one among these characteristics.

This accomplishment of SIA challenges viewpoint of Porter that cost leadership and differentiation strategies are equally exclusive strategies (Porter, 1985). Differentiation strategy allowed Singapore Airlines to insulate itself partially from rivalry competitors of same industry. Customers of differentiated services were less sensitive to prices and they started preferring SIA over other airlines, that is, SIA succeeded in gaining customer loyalty (Hitt et al., 2007). SIA carefully applied this strategy and played safe by delivering premium services appropriately without over-proliferating them.

leadership strategy –
Singapore Airlines has considerably greater effectiveness than its peer group, which is a crucial aspect of an effective leadership strategy. They have young fleets which have lower maintenance costs; they are fuel efficient and have effective hedging of fuel. Labor cost of SIA is comparatively low (16.6%) than average of all prime airlines (20.1%) (Singapore Airlines, 2008). Singapore Airlines have youngest fleets in the airline industry, which is worth considering. Their fleets have average age of 75 months, and average age of half of airline industry fleets is 163 months. SIA’s fleets are much efficient. Younger planes are quiet, comfortable and fuel efficient. They have low repair, service and maintenance costs which are all part of its leadership strategy. 7. Recommendations –

Keeping in mind the weaknesses discussed above, some recommendations for Singapore Airlines come into light like keeping company information confidential. SIA paid huge fine as various companies successfully investigated about SIA’s internal facts and figures. Also, they need to keep a close eye on its competitors who try to gain lead in the competition on the basis of price matching, promotions, discounting and capacity.

8. Conclusion –

A variety of strategies were executed by Singapore Airlines by which the company is successful for a considerable time. By keeping a track on industrial environment and the macro environment, Singapore Airlines can uplift its capabilities to secure future success. However, as there are uncertainties in the environment and market keeps on altering quickly, it is crucial to monitor and carefully consider all the strategies before implementation. Singapore Airline’s potential to become accustomed to change will positively help the

9. References –

Chamberline. E, & Robinson, J. (1996). “Theory of Monopolistic Competition, What is Perfect Competition ? ” Quarterly Journal of Economics, Vol. II, no.
4, 431- 433

Doganis, R. (2006). Outlook, The Airline business ed. 2, Routledge, Abingdon.

Hambrick, D. C., (2007). What is strategic management really? Hamel, G. (2002). Leading the Revolution: How to Thrive in Turbulent Times by Making Innovation a Way of Life. New York: Plume Books.

Heracleous, L. (2006). Flying high in competitive industry: Cost effective service at SIA. Mc Graw hill.

Hitt, M., Hoskisson, R., Ireland, R. (2007) Management of Strategy: Concepts and Cases.7th ed., Thomson South-Western, USA

Jeffrey, R., (2004). Strategic alliances: Theory and evidence, Oxford university press, US, 2004.

Porter, M.E.(1985). Competitive Advantage. New York: Free Press, 6-22.

Reddy, A. (1994). Total quality marketing: the key to regaining market shares. Westport, CT: Quorum Books.

SIA, Virgin America reach code-sharing agreement (2012, December 15, Saturday). Business pg30..Retrieved..from

SIA (2012). Virgin America reaches code-sharing agreement, December 15, 2012.

Singapore Airlines, (2008). Annual Report, Singapore.

Singapore Airlines, (2011). Annual Report, Singapore.

Teece, D., Pisano, G., and Shuen, A.(1997). Dynamic capabilities and strategic management, Strategic Management Journal , 18, 509-533. reaches
code-sharing agreement (2012, December 15, Saturday)

Marketing scenario

Positioned as an premium offering focused to lowest overall cost to end users through superior overall performance.
Leader in quality , performance and technological innovation
Product lines
Carton sealing and industrial tapes
Specialized adhesives
Other packaging products
K2 tape – Manufactured using patented technology and a brand name for pressure sensitive carton sealing tape
Very high tensile strength and sheer resistance


High Price

K2 Products

Low Quality

High Quality
New Product
Low Price

Problem Statement
• K2 tape competed against inferior economy grade products in carton sealing type
• IPACK offered 25-35% lesser price
• Revenue of K2- $68.6 million IPACK – $28.5 million in 2012
• Tensile – a new competitor had $2.7 million dollar sale with one sales representative

Should PST stay with high quality product or enter the economy grade segment ?

Option 1: Enter the economy grade
segment under the same brand
Access to the economy segment
Defend market share against competition
Diversification of product portfolio

Dilution of the brand image as a maker of technological superior product
Cannibalization of its own product offering
Cluttered product line

Option 2: Enter the economy grade segment
under different brand
Implications for:




• Ability to fulfill need of price sensitive customers

• Possibility of change in perception of being a quality leader


• Possibility to offer a low end PST product

• Even wider product range; Limited sales force

Sales Force

• Ability to offer more variety in terms of price levels

• More effort to explain product differences


• No positive impact

• Negative impact on brand image

Option 2: Stay with high-quality products
Implications for:




• Maintaining image of quality

• Loss of Market share; Not targeting price sensitive consumers


• No need for adjustment in distribution policy

• Low-price offer only from
competitor not from PST

Sales Force

• Consistent and easy product quality

• No ability to offer solution for price sensitive customer


• Consistent overall brand image

• No negative impact

PST should enter the economy grade segment


• New name (unrelated to PST) to avoid negative impact on brand image
• Marketed completely independent


• Development and launch of two new products to compete with Tensile
• Competitive pricing strategy (similar to Tensile)


• Make use of well established distribution network
• Offer economy equivalents for RD-48 & RDS-72

• There is a projected growth in demand (e.g. packaging segment 2.2%)
• PST has an established sales force and distribution network in the tape market
• There is a lack of brand loyalty of price sensitive customers (switching to PSTs new brand)
• There was suitable equipment and capacity for quick production

Distribution Plan
• Distribution through existing network for faster brand growth
• Hire more sales people to increase service quality & sales in PSTs tape business

Corporate Responsibility and Marketing Strategies

I believe Apple Inc. [mostly referred as “Apple” in this document] has met the ethical and social responsibility towards general public, employees, customers and shareholders/investors. Apple positions itself to be very environment conscious and continuously working to reduce the foot print of the company and its products on the planet (Apple Inc.). Apple has a recycling program for its used products; it sends gift cards to customers in return for the used products, if the products do not have any monetary value they recycle them responsibly.

Apple reports the environmental foot-print of each of its product on their website to show how much energy efficient they are and how Apple is choosing more biodegradable elements in its products, packaging and facilities. Apple has multiple offices and datacenters in United States and as of March 2013 seventy five percent of them are fully powered through renewable energy sources (Kastrenakes, 2013). Apple is continuously trying to improve the situation and aiming to rely entirely on renewable energy sources in future.

To improve ethical awareness within its employees, Apple has a business code of conduct published and easily available via intranet website within the company and to its investors via shareholder website (Business code, 2012) which explains in detail on various topics including its well known secretive way of releasing its products. Apple also has a Business conduct helpline available for its employees to resolve ethical dilemmas, report conflicts of interest and seek direction in making ethical decision. Recently Tim Cook, Apple CEO has reminded all employees to review Apple’s business conduct policy via corporate email (Marie, 2013) which shows the importance Apple gives to Ethics within the company. Apple treats its employees very well; pays pretty good salaries to employees and rates to contractors, Apple’s has a very good benefit program for its employees, even the part-time employees are entitled to benefits at apple (Fiegerman, 2012), it provides shuttle service to many locations from many places in Bay area to campus.

Apple products are very safe compared to many other competitor products, Apple pays attention to details, e.g.: To avoid tripping over a charging cable, Mac book charger has a magnet instead of a hard stick in plug as we observe in many Windows PCs. All of its products are well thought and provide lot of convenience and consider customer health and safety, as we see in the case of latest ear phones from Apple, they have the speakers going sideways instead of directly in to ears as most of the conventional ear plugs do, this restricts music directly hitting the ear drum and long term exposure may have adverse impact on the ears. Apple products are well sealed and static resistant, the materials used in production are not cheap and low quality parts, which improves the durability of its products. Apple provides lot of variations in products to choose, to a customer which attracts customers at all levels.

There are about ten to twelve flavors of latest iPhone based on color, size of memory and external material. Apple has a very good refund policy, items can be returned online or returned in store, there is about 14-30 days to return items, Apple provides full refund instead of charging for re-stocking fee. If there is a part malfunction, apple product can be exchanged for a new one within one year of purchase for nominal or zero price. Apple considers customer’s complaints and response rapidly by multiple means and aims to delight the customers (Denning, 2011). Apple listens to customers at the stores, online and also via telephone and improvises on its services, customer support and also their products.

It is very obvious that Apple takes good care of its shareholders; we can clearly observe that from Apple’s revenues and profits from past several quarters, Apple’s share has gone up five times within past five years. Apple provides all of its quarterly, annual reports along with financial statements and exhibits with SEC and complies with SEC policies.


Publications of ethics and social responsibility violations of its suppliers, mainly at Hon Hoi Precision, also known as FoxConn had impact on Apple’s reputation and mainly no impact on sales and share value. In 2011 there were fourteen suicides at FoxConn and later on there were many riots, suicide protests by workers against the very long working hours, lack of insurance, workplace safety, horrible facility maintenance , incidents of using Child labor, lack of injured workers compensation, army camp style management and others (McGrath, 2012). Apple has handled things very carefully and assigned right people and started remediation methods, published supplier code of conduct, increased audits in its supplier firms, provided training, to improve situation and reputation; Tim Cook, the CEO of Apple talked about Foxconn and how his company is trying to improve the working conditions for employees and workers in its suppliers’ factories and how seriously Apple is taking the allegations (Knibbs).

Apple’s reputation had an impact during the time of events, created a buzz in media world; Apple got a bad name within its investors and stake holders. Later on, Apple was able to manage out of the situation very well. Overall there is no impact to sales or revenue or Apple’s share value. Apple shares might have taken a small hit for few days when there were publications by media, but overall share value was growing in 2010 and 2011 when all of reports were being published. Apple is still considered the most admired company in the whole world as per Fortunes World’s most Admired companies for 2008-2013; six years in row (Shaughnessy, 2013). Apple products are very well received in the market; there are no aversions or hatred towards Apple’s products based on the allegations. We usually see the drop in sales when there are negative allegations on companies, we have seen this in case of Paula Deen based on her racial comments and also with Duck Dynasty and its products when Phil Robertson has made anti-gay comments and cause big dent in their reputation, we have not seen this with Apple.

When iPhone 5s was released in September of 2013, stores reported people standing in long lines at Apple and its partner stores to get the first piece. Today there are hardcore fans to Apple products than for any other company. Apple products are growing popularity even in China where the allegations of horrible working conditions have been reported. Based on my personal observation, Apple stores are among the most crowded stores at local malls. Even with heavy competition for Samsung, LG, Nokia (now Microsoft) and Motorola, Apple iPhones are still most commonly used smart phones in United States. Apple’s App store has more than a Billion applications available to end users. By observing the Apple’s growth pattern, it is safe to say that the impact of supplier violations is minor.

Question 3:

To improve the working conditions and abide to Fair Law Association (FLA) policies Apple has come up with and published “supplier code of conduct” (“Apple supplier,” 2012) for all its suppliers to adhere who provide parts to its products. To ensure that its suppliers adhere to wage and benefits standards going forward, Apple has to strictly enforce the “supplier code of conduct” and also increase the supervision and auditing of the supplier factories, HR and pay roll systems up to allowed by the local and international laws. Many of the rules and regulations which are illegal in US are acceptable in other countries. As Apple’s suppliers are mainly in other countries than US, Apple can set up strict rules and guidelines more close to US laws in addition to local government policies and Fair Law Association (FLA) laws, as most of its products are used by consumers in US.

Apple can also open up complaint/suggestion boxes (online, in factory and via phone) from workers in supplier factories to understand and closely monitor the working conditions and get feedback on wages and benefits. Apple can restrict the number of hours a worker can work in its supplier factories. Apple can create guidelines in its code to have onsite help to talk with workers and understand their problems and work with supplier factories to solve them. Apple can guide its suppliers to setup onsite and close to campus medical facilities for workers working in its supplier factories.

Apple can work with local media and government to do surveys from general public about their supplier practices at factory facilities. Apple should request the ethics code of conduct as one of the primary pre-requisite from their suppliers as part of the initial RFP – Request for proposal. Apple should get feedback suppliers’ employees to understand how well the code is followed by its upper management in the company and should enforce supplier to improve it before renewal of contracts. Apple should stop buying parts from suppliers with tainted reputation, or suppliers with weak or no ethical code of conduct. Apple should compare the working conditions and wages of workers in its supplier factories to competitor factories in the area and pass regulations to improve the wages to meet market standards.

Question 4:

Apple customers would be willing to pay more for its products to provider better wages and benefits to suppliers’ workers. Apple can make this happen by showing the reasons behind increase in prices, and how additional money will be utilized for worker compensation and benefits. Apple should advertize in TV, publish articles on its website and provide information to Media on how the additional money will be utilized. This is much similar to Ms. Lee Rhodes and her Glassybaby in the case study, Glassybaby gives 10% of its revenues for cancer treatment. Another suggestion that I can make is that, some percentage of increase in salaries for workers should also come from Apple’s profits to show consumers that Apple is not only charging more for products but also taking a cut in their profits to provide better working conditions for workers. Apple and its main founder Steve Jobs do not have very good name as Philanthropist, there is no public record that Steve Jobs has donated any money (Sorkin, 2011).

After Tim Cook took over Apple’s CEO position, he has made some donations but compared with other companies with high revenues and profits; the donations made by Apple are very negligible compared to its revenues and profits (Emerson, 2012). Apple can improve its image and reputation in the world by giving some percentage of profits to suppliers’ workers through multiple programs and incentives. Today Apple’s products are most popular in the market; iPhone is the best selling smart phone out there in market. Apple and its products have huge fan base and many of the competitor smart phones from Samsung or Microsoft are not comparable to iPhone. With such a popularity, increasing a minor percentage E.g.: 3-5% of price will not have any impact on product sales.

Most of the Apple products are sold with network connection also known as data plan, the minimum data plan is very expensive and costs up to $40 per month for many carriers. Some of Apple’s iPhone customers take data plan because they are intrigued with iPhone and Apple products. When customers are willing to pay additional money for seldom used data plan as they stay home mostly where there is Wi-Fi connection as an alternative to data plan. Customers should be willing to spend a bit more money to improve working conditions and salaries for suppliers’ workers.

Question 5:

Apple has excellent market strategy for its products; Everyone remembers those PC and Mac comparison commercials, which used to portray Apple’ Mac computers as cool and trendy for Generations X and Y and for everyone at home where as Microsoft PC was shown as business computer with bugs. In reality, Microsoft operating system is more flexible and customers can customize and make modifications and create applications relatively easy, where as you need to go to App Store for installing/upgrading any iOS applications. Microsoft or Samsung devices allow users to copy MP3 files, and play them without any intermediary software such as iTunes, a mandatory application for Apple to copy songs in to iOS applications. Even with less flexibility Apple’s products are highly sold in market today due to its design and performance of its products and mainly it’s Marketing strategy.

Apple does not really advertize new versions of iPhone releases, rather it keeps it secret, there are no beta releases, and there are no pictures or commercials in the market before a new version iPhone is released. It creates buzz in the market which generates mystery about its product. In addition to its own marketing, Apple’s iPhones are also advertized by other companies such as network providers such as AT&T, Verizon and other companies which make protective cases and other accessories for iPhones. Apple maintains such secrecy before releasing its iPhone products; it has worked greatly for them. Another way Apple products are advertized is by word of mouth. Today many of smart phones in the market from Samsung, LG and Microsoft have similar functions as iPhone, but in my view the secrecy/mystery and word of mouth advertizing for iPhone has helped to maintain its leadership in the market.

To improve competitive advantage over global market place, Apple should sell its products more in other countries; expand its base out of US. The usage of smart phones is at verge of getting saturation in United States, consumers in US are tied to data and voice plans from network providers in US. Until latest generations of iPhones, iphones were sold at a later release dates in Europe, India and China than in United States. There is a lot of fan base for Apple in China and India, Apple should en cash that by making products affordable in those countries. Customers in US do not replace their phones until their contract ends with he network provider, which is usually two years from the contract start date. Most of the countries outside of US are not bound to network/data plans for the phones as they use GSM technology; this provides flexibility to consumers to buy more than one phone in two years.

Smart phones are getting more popular in India and china where the population is very high. Population of India and China combined is more than six times the population of United States (CIA World Factbook); if Apple can capture a small percentage of the market in those countries it will have more customer base than it does in whole US which bring higher revenues. Apple should start customizing their products and make them consumer friendly in other countries, such as make menus in native languages, create local custom applications etc.

As word of mouth advertizing has proven working for Apple, they should start giving some samples of their products to celebrities in India where the common public trend is to follow the celebrities and mimic their product usage. It has worked for other companies and products; it should also work for Apple.

Apple should start thinking about making their products more flexible and easy to customize, Apple is very popular among brand, but more savvy users with computer background started to lean more towards Google Android based phones from Samsung and LG as they have more flexibility and customization options. With computer skills and techniques being very common to kids in Generation Y and Z, Apple should think about concentrating on them and their tastes and Apple products more flexible.

Apple should innovate more, there have been some improvements and modifications to its products in past 3 years but there has not been a “WOW” product release. They should enter new markets, start coming up with new products such as long awaited Apple TV or they should get in to wearable gadgets such as wrist watches, glasses, motion controlled devices, devices with flexible screens and devices which look cool but monitor human body’s current health such as temperature, sugar levels, blood pressure etc.

Last but not least, Apple should improve its philanthropist image; they should start donating more to needy and charitable foundations. That usually helps in both ways; it improves the reputation and also works as advertisement.

Apple Inc. (n.d.). Apple and the environment. Retrieved from Apple supplier code of conduct. (2012, JANUARY). Retrieved from Business code. (2012, DECEMBER). Business conduct the way we do business worldwide . Retrieved from CIA World Factbook. (n.d.). Country comparison :: Population. Retrieved from Denning, S. (2011, AUGUST 26). Another myth bites the dust: How apple listens to its customers. Retrieved from Emerson, R. (2012, FEBRUARY 3). Apple’s donations to charity surpassed $50 million: Report. Retrieved from Fiegerman, S. (2012, JUNE 18). Why working at apple is a dream job. BusinessInsider. Retrieved from Kastrenakes, J. (2013, MARCH 21). Renewable energy now powers 75 percent of apple’s facilities. Retrieved from
e-energy-across-operations Knibbs, K. (n.d.). Apple ceo talks foxconn, tries to mend reputation. Retrieved from Marie. (2013, NOVEMBER 21). Tim cook reminds apple employees to review apple’s business conduct policy. Retrieved from McGrath, B. (2012, FEBRUARY 7). Apple’s sweatshop supply chain. Retrieved from Sorkin, A. (2011, AUGUST 29). The mystery of steve jobs’s public giving. Retrieved from Shaughnessy, H. (2013, FEBRUARY 28). Apple remains world’s most admired company, followed by google and amazon. Retrieved from

Marketing MIx

School of Business
MKT/421 Version 12
Copyright © 2011, 2009, 2008, 2005, 2004, 2003, 2001 by University of Phoenix. All rights reserved.

Course Description

This course involves an integrated analysis of the role of marketing within the total organization. Specific attention is given to the analysis of factors affecting consumer behavior, the identification of marketing variables, the development and use of marketing strategies, and the discussion of international marketing issues.


Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents:

University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum.

University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality.

Course Materials

Armstrong, G., & Kotler, P. (2011). Marketing: An introduction (10th ed.). Upper Saddle River, NJ: Prentice Hall.

Kerin, R. A., Hartley, S. W., & Rudelius, W. (2011). Marketing (10th ed.). New York, NY: McGraw-Hill Irwin.

Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Prentice Hall.

Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach (18th ed.). New York, NY: McGraw-Hill Irwin.

All electronic materials are available on the student website.

Week One: Marketing Fundamentals

1.1 Define marketing.
1.2 Explain the importance of marketing in organizational success. 1.3 Describe the elements of the marketing mix.
1.4 Explain the importance of the marketing mix in the development of marketing strategy and tactics. 1.5 Create a marketing plan.
1.6 Identify quantifiable elements that can be used to evaluate, monitor, and control marketing effectiveness.

Due Date


Read Ch. 1 & 2 of Basic Marketing.


Read Ch. 1 & 2 of Marketing Management.

Review this week’s Electronic Reserve Readings.

Participate in class discussion.

Learning Team Instructions
Learning Team Charter

Begin Learning Team process. Create the Learning Team Charter and Log will be due next week. First Due Date: 9/19/13.

Learning Team Instructions
Marketing Plan
Your Learning Team must create a new product or service for an existing organization and complete assignments related to creating a Marketing Plan. These assignments culminate in the Marketing Plan: Final Paper and Presentation, due in Week Five.

The Marketing Plan deliverables are:
Marketing Plan: Phase I Paper:
Marketing Plan: Phase II Paper
Marketing Plan: Phase III Paper
Marketing Plan: Final Paper and Presentation

Begin working on the Marketing Plan. A Marketing Plan Outline is available in Course Materials, and will be posted in OLS.

Defining Marketing Paper

Write a 700- to 1,050-word paper in which you define marketing. Include your personal definition of marketing and definitions from two different sources. Explain the importance of marketing in organizational success, based on these definitions. Provide at least three examples from the business world to support your explanation. Properly cite sources used in the paper. Format your paper consistent with APA guidelines.



Week Two: Marketing Research

2.1 Justify the importance of marketing research in the development of marketing strategy and tactics. 2.2 Analyze the importance of competitive intelligence and analysis in marketing. 2.3 Identify various segmentation criteria that impact target market selection. 2.4 Describe the various types of organizational buyers and consumers and the factors that influence their purchasing decisions. 09/16/13

Read Ch. 8 of Marketing.
Read Ch. 4, 5, & 6 of Marketing: An Introduction.

Read this week’s Electronic Reserve Readings.

Participate in class discussion.

Marketing Mix Paper
Write a 1,400- to 1,750-word paper in which you describe the elements of the marketing mix: product, place, price, and promotion. Include the following:

Select an organization with which you are familiar and describe how each one of the four elements of the marketing mix affects the development of the organization’s marketing strategy and tactics. Describe how each element is implemented. Suggested use of “headings” for each of the 4-P’s (Product, Price, Place, and Promotion). Identify your selected organization and the industry in which it exists.

Format your paper consistent with APA guidelines. Suggested Research: One Source listed from our text(s), and a minimum of two additional credible sources.


Learning Team
Marketing Plan: Phase I

Create a new product or service for an existing organization. This product or service will be the basis for your Marketing Plan Paper. Obtain your instructor’s approval of your product or service before beginning this project. PHASE 1:

Write a 1,400- to 1,750-word paper that includes the following:

An overview of the existing organization
A description of the new product or service
An explanation of the importance of marketing to your selected organization’s success A SWOTT (strengths, weaknesses, opportunities, threats, and trends) analysis on the new product or service The marketing research approach you would use to develop the marketing strategy and tactics for this new product or service

Refer to the Marketing Plan Outline located on the student website for the general framework of the Marketing Plan.

Format your paper consistent with APA guidelines. Suggested research: Use our Text(s) and a minimum of 2 additional credible sources. Suggested use of “Headings” for each bullet point in the assignment.



Learning Team Charter

LEARNING TEAM CHARTER: Post in Assignment Link of Team Leader


Learning Team Log

LEARNING TEAM LOG: Post in Assignment Link of Team Leader



Week Three: Marketing Strategy: Product and Price

3.1 Describe the relationship between differentiation and position of products or services. 3.2 Analyze the impact of the product life cycle on marketing. 3.3 Identify the appropriate price strategy that should be used in the development of the strategic marketing plan. 09/23/13

Read Ch. 4, 9, 10, 17, & 18 of Basic Marketing.

Read this week’s Electronic Reserve Readings.

Participate in class discussion.

Marketing Research Paper
Visit one of your favorite Grocery Stores, Non-Foods, Warehouse Clubs, or Mass Merchandisers.

Examine one department: (i.e. Cereals).
Describe the store you have visited.
What are the major brands in the department you have chosen? How many individual items are in the department?
Are there any new items?
What is the price range from lowest to highest?
Are any of the items currently being promoted? How?

Ask the store manager 1 or 2 Marketing questions on any topic / issue, and incorporate this information into your paper. Suggestions for the Manager’s question: 1. Has your store’s foot traffic been increasing or decreasing? 2. If decreasing, what types of promotions have you been doing to get more shoppers back into the store? 3. Who are your strongest competitors?

4. How well does your Private Label / Store Brand product line sell versus National Brands?

Considering the entire store:
1. Discuss how you feel they differentiate themselves from their competitors. 2. How do you feel they have positioned themselves in the “mind” of their target customer? (i.e. “The Low Price Leader…”) 3. What price strategy are they utilizing in your opinion?

4. What recommendations do you have for the store to improve their business in the department you have studied? (i.e. – are their prices right? Does the appearance/flow of the department make it easy for the consumer to shop? Etc…)

Format your paper consistent with APA guidelines. Suggested length: 1,050 – 1,400 words. ——————————————————————————————– OPTION 2:
Resource: Kudler Fine Foods Virtual Organization
Use the Virtual Organization link on the student website to access additional company information on Kudler Fine Foods.

Write a 1,050- to 1,400-word paper in which you justify the importance of
marketing research in developing Kudler Fine Foods’ marketing strategy and tactics. Include the following:

Identify the areas where additional market research is needed. Analyze the importance of competitive intelligence and analysis regarding the development of Kudler Fine Foods’ marketing strategy and tactics.

With either Option: Format your paper consistent with APA guidelines.


Learning Team
Marketing Plan: Phase II

Use the product or service you selected for your Marketing Plan: Phase I Paper.

Write a 1,400- to 1,750-word paper in which you address the following:

Identify the segmentation criteria that will affect your target market selection.

Identify your target market.

Describe the organizational buyers and consumers of your product or service and the factors that influence their purchasing decisions. Discuss how these factors will affect your marketing strategy.

Analyze current competitors and define the competitive landscape for your product or service.

Format your paper consistent with APA guidelines. (Suggested use of sources and research: One source from our text(s) and a minimum of two additional
credible sources).



Learning Team Log

LEARNING TEAM LOG: Post in Assignments Link of Team Leader


Week Four: Marketing Strategy: Place and Promotion

4.1 Analyze the impact of channel management decisions on marketing. 4.2 Select appropriate distribution channels.
4.3 Identify the appropriate place and promotional strategy that should be used in the development of the strategic marketing plan. 09/30/13

Read Ch. 11, 12, 14, & 16 of Basic Marketing.

Read this week’s Electronic Reserve Readings.

Participate in class discussion.

Using Perceptual Maps in Marketing Simulation Summary
Complete the simulation, Using Perceptual Maps in Marketing, located on the student website. Write a 1,050- to 1,450-word summary in which you address the following for each of the three major phases in the simulation: The situation

Your recommended solutions, including why
Your results
Summarize the different marketing components addressed in this simulation by answering the following questions:

What is the relationship between differentiation and positioning of products or services? Is the repositioning of the product in the simulation as you had expected it to be? Explain why or why not.

What is the effect of the product life cycle on marketing? What effect did the product life cycle have on the product in the simulation? Format your paper consistent with APA guidelines


Learning Team
Marketing Plan: Phase III

Use the product or service you selected for your Marketing Plan: Phase I Paper. PHASE III:
Write a 1,400- to 1,750-word paper that includes the following information:

Describe the attributes of your product or service in detail.

Describe the pace at which your product will move through the product life cycle and the factors that will affect its movement. How will the product life cycle affect the marketing of your selected product or service?

Identify the positioning and differentiation strategies for the product or service.

Identify the appropriate price strategy that should be used for the product or service.

Format your paper consistent with APA guidelines. (Suggested use of sources and research: One source from our text(s) and a minimum of two additional credible sources). 10/03/13


Learning Team Log

LEARNING TEAM LOG: Post in Assignments Link of Team Leader


Week Five: The Dynamic Environment of Marketing

5.1 Identify environmental factors that affect marketing decisions. 5.2 Explain the impact of technology on marketing.
5.3 Analyze the importance of social responsibility and ethics in marketing. 10/07/13

Read Ch. 3 & 13 of Marketing Management.

Read Ch. 15 & 16 of Marketing: An Introduction.

Read this week’s Electronic Reserve Readings.

Participate in class discussion.

Final Examination
FINAL EXAM: (Suggestion: Do Not Wait Until Last Day)

Click the link to the Final Examination on the student website available at the end of Week Four through the end of Week Five. Complete the Final Examination. You are allowed one attempt to complete the examination, which is timed and must be completed in 3 hours. Results are auto graded and sent to your instructor. Typical exams have 30 questions with a combination of multiple choice and True/False. Exam Tips:

See Course Materials for 2 attachments:
A) Tips for Exam Success
B) MKT 421 Final Exam Study Guide
Use your Chapter Readings as a reference for all major concepts, some of which will be: 1) The 4-P’s of Marketing
2) Positioning and Differentiation
3) The Product Life Cycle
4) Market Segmentation and Demographics
5) The Purchase Decision Process
6) Distribution (Intensive / selective)
7) The New Product Development Process
8) Market Research (Primary vs. Secondary)
9) Monitor and Control elements.
Instructor will post the PowerPoints from the readings every week after class for easier reference. 10/07/13

Learning Team Evaluation

Learning Team
Marketing Plan: Final Phase

Resources: Marketing Plan: Phase I Paper, Marketing Plan: Phase II, Paper, Marketing Plan: Phase III Paper

Use the Marketing Plan Outline listed on the student website as a guide.

Write a 1,750 to 3,000 word paper: Phase IV. Address the following information in your paper:

Identify the appropriate place and promotional strategy that should be used in developing the strategic marketing plan. Develop an initial sales promotion schedule.
Create an advertising plan.

Identify public relations opportunities for the product or service. Analyze the effect of channel management decisions on the marketing of your selected product or service. Select appropriate distribution channels for your product or service and address costs in terms of placement, shipping, and middlemen. Develop a budget for your plan.

Identify quantifiable elements that can be used to evaluate, monitor, and control the effectiveness of your marketing plan. Conclusions / Recommendations

Format your paper consistent with APA guidelines. (Suggested use of sources and research: One source from our text(s) and a minimum of two additional credible sources).



Learning Team Presentation

Prepare a 15- to 20-minute oral presentation accompanied by 10- to 15-slide Microsoft® PowerPoint® presentation illustrating your Marketing Plan Paper. May use additional presentation elements such as: Samples, Demonstrations, Focus Groups, Surveys. Suggested Length of Time: 20 – 30 minutes. Possible penalty for coming in over “or” under the time limit: 5%



Learning Team Log

LEARNING TEAM LOG: Post in Assignments Link of Team Leader





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The opportunities and challenges of marketing Services

Abstract. This paper gives the readers the background to understand how intangibility of services affects customers’ evaluation of service quality. The paper begins with the various views regarding intangibility of services from scholars. Some view intangibility as important characteristics in distinguishing products from services. Others look at intangibility as insufficient condition to divide products and services.

Then, the two main approaches of tangibilization, operation-based and marketing-based tangibilization are examined. The opportunities and problems in tangibilizing services are followed. Next, managerial implications tell marketing practitioners how they should exploit the opportunities and minimize the impacts of tangibilization problems. The paper is ended with the future research to give readers the list of unanswered questions in the areas of service tangibilization.

1. Introduction
Among the four characteristics; intangibility, inseparability, variability, and perishability; which differentiate products from services, there is argument that the single most important characteristic is intangibility. Moreover, it has been said that intangibility is the key to determining whether or not an offering is a service or product (Zeithaml and Bitner, 1996). Indeed, the broad definition of services implies intangibility as a key determinant of whether an offering is a service or not (Oberoi and Hales, 1990; Zeithaml and Bitner, 1996). This intangibility characteristic has a profound effect on the marketing of services (Lovelock, 1991; Rushton and Carson, 1989). This characteristic, intangibility, has been found in many literatures to be the most likely reason for the other three characteristics; inseparability, variability, and perishability.

However, some scholars have argued that the intangible-tangible dimension is difficult for consumers to understand, and that the importance of intangibility might
have been overemphasized (Bowen, 1990; Wyckham et al., 1975). They proposed that the service provider’s offer is their “productive capacity”, rather than the tangible or intangible nature of the offer. In other instances, some scholars claim that it is nearly impossible to say that a certain business

offering is pure product or pure service. The use of products/services bundle is proved to be more usable than the traditional approach of categorizing products and services and their tangibility/intangibility. The products/services bundle refers to the inseparable offering of many goods and services (Gronroos, 1977; Levitt, 1980, 1981). This fact, which has been recognized in the classification scheme of others, suggests that the conceptualization of “the bundle” may not be separable in the consumer’s evaluation of service quality. This results in a product and service continuum, where highly tangible goods are placed at one end of one continuum, and
highly intangible services are placed at the opposite end, and the goods service bundle is located somewhere in between the two.

Despite contradictory opinions regarding the uses of tangibility and intangibility to differentiate services, the attempts to make services more tangible proves to produce fruitful results in the marketing of services. This paper explores the opportunities and problems in doing so. Also, the paper provides some managerial implications for marketing practitioners.

2. Approaches to Service Tangibilization There are two main approaches to service tangibilization. Operation-based tangibilization (OBT) means the attempts to tangibilize operational activities conducted by service firms during the service encounter process to decrease clients’ sense of intangibility after the encounter. For example, Parasuraman et al. (1985) and Fitzsimmons and Fitzsimmons (1994) defined tangibility by examining the extent to which hotel interiors are well decorated and whether the employees are dressed in uniforms where the clients are staying.

The other type of tangibilization is called Marketing-based tangibilization (MBT), which assists the service providers in unifying consumers’ expectation, decision analysis, and evaluation (EDEM) via marketing efforts. Examples of marketing-based tangibilization practices are pictures of tangibilized equipment and decoration at the points of services or in marketing materials. MBT is beneficial in lowering, or even unifying, EDEM among the consumers and market segments.

Hence, these actions enlarge the market scale, raise the standardization of services, and consequently reduce costs and overhead. There are 6 strategies for marketing-based tangibilization. First, Quantitation means the techniques that represent service contents with quantitative cues, such as numbers, statistics, measures, and other numerical data. Management academicians take quantitation as a synonym for Proceedings of the International Conference on Computer and Industrial Management, ICIM, October 29-30, 2005, Bangkok, Thailand  clearness, preciseness, accuracy, definitude, and even explicity (David, 1999).

From the practical perspective, service cues such as price, history of the providers, financial and capital conditions, amount of employees and existing clients, and other quantifiable information are the practices (Grove et al., 1995). If services can be portrayed and illustrated with quantitative cues, then it is easy for consumers to perceive exact conditions of services, and hereafter feel the services to be tangible. Second comes ranking, which is defined as a service provider’s relative order in contrast with competitors or its counterparts by comparing the service contents.

The ranking for top 50 education institutes is a typical example of ranking. Third, factualization is the technique that service providers use to illustrate their services by a literal proclaimed statement, illustration, and representation such as figures, pictures, and images, properly setting and equipping at a point of service and a demonstration of services, among others.

Expectations play a major role in determining consumers’ post-consumption service quality evaluations. It is therefore important that the service marketer understands these expectations across the intangibility continuum. When service providers know the consumer’s quality expectations, they are in a position to develop marketing strategies for service delivery. At this point, it appears that the first task for the service provider is to define adequately the service which is being delivered to the consumer. One must determine whether the outcome of the service act results in a tangible possession, an intangible or a service – product bundle. Next the service provider must determine whether the process is or is not experienced by the consumer.

The tangibility index and the tangibility-intangibility matrix are a good starting point for this analysis. Understanding the range of consumer experiences and service outcomes as they relate to intangibility will assist the service provider in planning strategic marketing options for the service. If intangibility increases a consumer’s perception of risk, then the promise of reliability should reduce it. Being reliable and becoming known for reliability in the service arena reduces a customer’s expectations by reducing the need for service recovery (Berry and Parasuraman, 1991). However, businesses need to be cautious in promoting their reliability.

Overstating or exaggerating claims concerning reliability can have the effect of raising consumer expectations unnecessarily. Businesses should work on being reliable first, then work on letting the consumers know about it through MBT. Insuring reliability means a management commitment to service quality. As in the production of tangibles, the production of intangibles requires standardization without compromising customization potential. Standardization of services requires the use of hard and soft technologies to provide consistent service to customers. Hard technologies, or replacing company personnel with machines, can help insure reliability of routine tasks.

Special Issue of the International Journal of the Computer, the Internet and Management, Vol. 13 No.SP2, October, 2005

Marketing planning

Main characteristics of marketing oriented organisation
The marketing is a management and customer satisfaction strategy which is focused on the customer satisfaction and it is also involved in various functions like advertisement, promotion, selling products and services of the business, product planning, and product development, market research and market analysis. According to Keller, (2009) Marketing can be described as the marketing can be described as the management process which is responsible for identification, anticipation and satisfaction of customers of the organization for developing improved profitability of the business.

According to the Philip (2009) the marketing can be described as the process of managing profitable customer relationship through retaining retain existing customers of the organization and attracting new customers through developing value for the customers and satisfying their needs through developing products and services needed by them. Types of organizations:

According to marketing point of view there are two types of the organizations, market oriented and product oriented organizations (B&C, 2010). Product Oriented organizations: The focus of the product oriented organisations is on the development of product and selling these products through the different approaches of marketing. Characteristics of marketing oriented organisation: the market oriented companies are focused towards the satisfaction of needs and demands of the customers through analysing customer needs and then developing products and services to satisfy these needs.

The customer needs are identified by these organizations and then the resources are allocated to meet these needs (Mangold, Faulds, 2009). The market oriented companies have four main features or characteristics which are given below, Shared Values: the customers are always kept as priority by these types of the organizations and the value is shared with customers by providing them quality products and services. Organizational Structure: the flat type of organizational structure is developed and preferred by these companies as compared to the traditional business structures.

The clear vision is developed and communicated by these organizations for motivation of stakeholders including customers. Strategy: the overall business strategy forms the basis of the marketing strategies and planning of the market oriented companies. The basic goal of the market strategies is to achieve the overall business goals and objectives of the organization. The more flexible strategies are developed by these organizations to respond to changing business environment (Mangold, Faulds, 2009). Stakeholders:

The ideas and values are exchanged by the organization with different stakeholders of the organization to develop relationship with the business. From the analysis given it can be concluded that Ikea is a market oriented company as it has incorporated the core characteristics of the market oriented companies (Menon, 2008). Explain the various elements of the marketing concept with reference to the Ikea’s marketing activities. The Ikea has implemented various elements and the concepts which can be analysed as 5 Cs and 4 Ps of the marketing and they are given as below, 5 Cs of Marketing

Company: the company described as the vision, mission, purpose and core values of the company which motivates stakeholders of the business (Menon, 2008). Customer: the customers are segmented into profitable components of the business. Collaborators: These are the stakeholders of the company who include investors, employees, customers, competitors, community and Government. Competitors: This includes analysis of the core competitors of the business, their market position, strengths and weaknesses.

Context: Context refers to the analysis of the present and future prospects of the organization in the long turn and this is analysed through the internal and external business environment of the organization. 4Ps of marketing are:

The four Ps of the marketing are essential and basic element for the development of effective marketing strategies of the business and these can be described as below, Product: the product is the development of the product or services based on the customer needs developed to satisfy needs of the customers (Menon, 2008).

Promotion: this include determination of how the product will be marketed and promoted to attain greater market share and growth, through different promotional techniques like TV ads, online marketing or sales promotion (Newman, 2002). Price: One of the important elements of the marketing is the determination of price on which the product will be offered to customers. Place: The place is the identification and planning how the product will be placed in the market, through physical stores or the other elements. Identify and critically assess the benefits and costs of marketing approach for Ikea.

The marketing approach adopted by the Ikea has different benefits for the business. Ikea has successfully developed business of the organization in UK and Europe and segmented the business of the organization to the office and home furniture users. The business has developed the marketing strategies to develop and promote business products of the organization for satisfying customer needs through delivering quality products to the customers.

The business has developed strategies for effective customer care as a part of the marketing strategies which is the part of benefits of marketing approach. The long term relations with the customers are developed by the business through effective customer relationship and developing trust in products of the organization. the costs of the ineffective marketing can lead to the failure of the product being offered or less effective response from the customers (Newman, 2002). Task 1.2

A) Identify and explain macro and micro environmental factors which influence marketing decisions of Ikea The business strategies of Ikea are affected by the various internal and external factors of the organization. These factors can be described as the macro-environmental factors and micro-environmental factors. The micro environmental factors of the Ikea are described as below, Micro-environmental Factors: these factors include various factors which have direct impact on the business strategies of the Ikea and it also impact on the business planning and strategies.

The Micro factors impacting the Ikea are given below, Customers: the survival of the Ikea is based on the identification and meeting needs, wants and providing the benefits of their customers. the failure to meet the needs of the customers can lead to the failure of the business as the satisfied customers are most important for the business (Newman, 2002). Employees: the employees are considered as the most important assets of the business and the satisfaction and development of effective workforce of the business is the most important element for the successful business.

Suppliers: the increase in the prices of raw material and change in the quality of the raw material has direct impact on the marketing mix of the business. The good relationship with the suppliers helps business to develop effective quality of the products offered by Ikea. Shareholders: the expectations and relationship of stakeholders of the business has positive and negative impacts on the strategies of the business.

Media: the innovations and changes in the media can be analysed and the successful adoption of these changes and innovations can positively impact the organizational communication and marketing strategies. Competitors: the name of the game in marketing is differentiation. The business can be successful through developing competitive advantage as compared to its competitors through developing core competencies of the business. Macro-environmental Factors:

The macro environmental factors are which are beyond the control of the Ikea and these can be opportunities of threats to the business strategies of Ikea. There are following macro-environmental factors effecting marketing and business strategies of the Ikea and these can be analysed through PESTEL analysis: Political factors: the political factors include the rules and regulations of the UK government, which can be minimum wage, or the interest rate regulations.

Economic factors: Economic factors include the inflation rates, or the interest rates which can impact the consumption parents of the customers effecting sales of the organization. Social: the UK is highly diversified with the multilingual and multinational people from all over the world. The trends in the social preferences of the customers can impact the business strategies of Ikea. Technology: there are various technological implementations in the market and these are more frequent in the UK market. B) With your understanding of the topic on Segmentation, propose segmentation criteria that the organisation can use for two products in different markets.

The market segmentation is one of the basic elements for the development of the products of the business in the market and the segmentation refer to the identification of the customers with the similar needs and preferences based on the analysis of the customer needs and buying behaviours. The aim of the segmentation is to develop the groups with the same needs and buying behaviours. For example the sofa set for the home users and the business users will be demanded with different needs for the same product for the different market segments.

The needs of the home users will be different as compared to the business users and this will also impact the buying behaviours if the customers as well. C) Sketch out those factors that influence the choice of targeting strategy by the organisation with reference to the financial capability of sponsors Targeting strategy:

The targeting strategy is based on the analysis of the target groups based on the market segmentation and then the process and approaches of targeting potential customer segments is developed by the organization to develop market share of the product to be launched by business. The targeting strategy of the Ikea involve various steps which include the development and identification of the effective segment market, choosing appropriate segment for the product and then analysing the product to be offered in a particular market segment.

The Ikea has developed the target marketing strategy for developing and offering various products for the different segments instead of the generic marketing. Importance of financial capability of Sponsor:

One of the important factors affecting the business is the financial capability of the sponsor. The finances are the lifeblood of the business and for all business and marketing strategies the financial resources are considered as the important element to remain competitive in the business.

for the success of the business good target market strategy and the financial sponsor ship is essential as these play as the backbone of the business to be more competitive in dynamic changing business environment. D) How does buyers behaviour affects marketing activities in two different buying situations putting into consideration The behaviour of the customers towards the product refer to the process of selecting, purchasing and consuming the product by the customers to attain satisfaction. And analysis of these abhors is essential for the business to develop effective strategies and products.

There are various factors affecting the buying behaviours of the customers and these can be explained as given below, Cultural factors: the most important elements of the customer buying behaviour is the cultural factors as the buying behaviour of the customers is highly effected by the culture of the customers.

For example the McDonald was failed in India when they introduced beef burger and the organization faced huge losses. Social Factors: the social factors contain the reference groups like the role, status and family. Personal factors: the personal factors include the analysis of the age, occupation, income levels, life styles and the economic status of the customers. Psychological factor: these are also very important factors affecting the buying behaviours of the customers.

These factors affect the buying behaviours of the customers of the Ikea in different ways which can be in favour of the business and these can go against the organization. the increased income and life standard of the customers may lead to increased sales level of the products of the organization same the families will be buying more products of the business as compared to the single. Task 1.3: A) Describe how products are developed By Ikea

There are different steps are involved in the product development strategy of the Ikea for the product development in the market to attain sustainable growth in the business. There are following steps performed by Ikea for the effective product development by the organization, Idea generation: the product development strategy if Ikea starts with the idea generation in which the idea regarding the new product is developed and shared, these ideas can be internal or the external.

The internal ideas are the innovation by the organization while the external ideas can include the development of product as a result of competitor’s idea. Idea screening: the next step is idea screening which includes the analysis of the market acceptability, impact on satisfaction of the customers, analysis of the demand of the customers and then the approval of the idea based on the rate of success of the given idea.

Concept development and Testing: after approval of the idea in screening the next step is to execute the idea into concept and the feasibility of product development is identified in this section, which through the analysis of the skills, abilities and sources required developing the required product. Concept development and Testing: the next step is the execution of the idea into product and then the features and quality of the product is tested and analysed.

The target markets and customers are identified for the given product. Marketing: after development of the product the next important step is to communicate the product in market through using different marketing strategies and marketing tools and techniques. This is analysed through the test marketing. Commercialization: the final step is the commercialization of the developed product to attain sustainable growth and success for the Ikea. B) Distribution Management:

The distribution management refer to the process involved from the attaining
raw material to the selling and delivering product to customers. The distribution includes the packaging, inventory, supply chain and logistics. The distribution strategies involve how the product will be developed and distributed to the end users in a more efficient way.

There are two mediums used by the organizations for the distribution of the products and services of the organization to the final consumer, which include wholesaler and retailers. The Ikea is distributing its products by using wholesale medium of distribution. Wholesale market involves the selling goods and services of the organization direct to the buyers and for this purpose the Ikea has developed its stores in UK and Europe.

This leads to the development and distribution of the product at flexible and low price. C) How are prices set to reflect an organisation’s objectives and marketing conditions? The pricing strategies include the identification of the pricing objectives, and then development of the pricing strategies based on these objectives, there are various pricing objectives of Ikea for determination of the price of products to be offered in the market, Financial Objectives;

The financial objectives include,
Profit maximization
Maximizing sales revenue
Improving cash flows of the business
Marketing Objectives:
Increasing sales
Maintaining and growing market share
Building brand
D) Show an illustration of how the organisation (Ikea) integrates its promotional activities to achieve its marketing objectives. In recent years, many newspapers and television channels lost their audience, since traditional print and broadcast media as main promotional tools have faced major challenges (Gurevich et al., 2009).

Research by Forrester Jennings conducted in 2007 shows that audiences and attention are shifting to online channels, as 52% of Europeans are regularly online at home. Around 36% of European Internet users watch less television, 28% have reduced their newspaper and magazine reading and 17% have decreased listening to the radio since going online (Palmer and Koenig-Lewis, 2009).

Taking into consideration the above facts, we can say that the information revolution (Internet, mobile and social media) is significantly changing traditional marketing campaigns, which can be adjusted to those new technologies. The significance of social media is shown by a recent study which was pointed out that an overwhelming 88% majority of marketers are now using some form of social media to market their business1.

The same study, which set out to understand how and why marketers are using social media to grow and to promote their businesses, found that Facebook, Twitter, LinkedIn, and blogs are the top four social media tools used by marketers1. Palmer and Koenig-Lewis (2009) define social media as an “online applications, platforms, and media which aim to facilitate interactions, collaborations and the sharing of content” (p.165).

They further point out that the importance of social network media lays in the interaction between the consumers and the community, as well as in the facilitation of “asynchronous, immediate, interactive, low-cost communications” (Ibid.). One of the major examples of social media usage by companies is Victoria’s Secret’s Facebook page with its more than two million followers. On this page, followers can view videos, photos, take quizzes and print coupons2. In politics, the most significant example of social media use is the United States‟ presidential election in 2008.

The Barack Obama campaign used such online promotional tools as Facebook, YouTube, Twitter and others3. For the past two years, Facebook has overwhelmingly been pro-Obama virtual territory. Some have attributed Obama’s victory to a “Facebook effect”3. The Ikea has used the social media strategy for the integration of the marketing strategies with the product orientation and the promotional strategies of the business. Task 2: A) Attempt a suggestion of marketing mixes for two dissimilar segments in consumer markets.

For the specialised market entry the company offering products in the consumer markets should develop and focus on the market segmentation and it should develop market segment. The marketing mix is developed by the business after the market segments for the development of the effective market share of the business.

For example, a new brand in soft drink “Nix Cola” can be launched in specific consumer market like 99p or pound land as a established retailer. Once it gets success then it can be launch in different segments and restaurant and coffee shop. It would benefit the organisation from huge marketing costs and will enhance its brand penetration in the market. C) Critically explain how and why international marketing differs from domestic marketing with reference to Ikea International marketing involves the satisfying the needs and demands of the global customers.

Organisations should consider the values, customs, languages and currencies before doing the international marketing. For example advertising in Nepal and China should use in local languages. The potential market size, degree and type of competition, price, promotional differences, product differences as well as barriers to trade have to be analysed alongside the cost-effectiveness of various types of transport.

But for the domestic marketing; organisation should consider for the local factors and local needs and demands of the buyer. So, in the case of Ikea as well company should consider the domestic and international marketing factors. People from all across the globe are keeping eyes on London so it should position its marketing strategy for international market and domestic market separately.


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The Marketing Environment

1. Discuss key cultural factors Starbucks had to consider as it expanded into China.

As Starbucks expanded into China, they had to consider such cultural factors as: how people were going to adjust to the new drink, who they were appealing to in terms of demographics – How old are the customers? How often will they find time to come? Starbucks was able to market themselves in such a way that their new ‘sophisticated’ appeal garnered attention in both the yound and old generations. The demographics they decided to target were “Chuppies”, or people between the ages of 20 and 40. This younger generation was attracted to Starbucks for it’s new appeal, status and Western Influences.

The older generations were attracted to the functionality of the bigger store so that they may gather outside of school, work and their smaller homes with family and friends. Also, the Starbucks in China had to consider the cultural food choices that exist in China, which differs greatly when compared to North American eating habits. Thus, they directed their menu towards the food culture that the Chinese maintain, like duck sandwiches and green tea cheesecake.

2. Discuss the key political and legal factors Starbucks had to consider in the Chinese marketplace. What are the risks of entering a country with these factors? What changes have occurred in China’s political and legal structure to the advantage of foreign companies?

Being a communist country, Starbucks would have many challenges to overcome before it could maintain any business effect in a short period of time. They had to take into account that business could change in China overnight. With this in mind, Starbucks decided to partner with local businesses who already understood the politics and business of China, thus Starbucks was able to learn what being in business in China was all about to better structure their future ‘stand-alone’ enterprise. The Chinese market changed after Beijing entered the World Trade Organization in 2001. This made it easier for Starubucks to buy out their partners and maintain their business alone.

3. What demographic factors were important for Starbucks to understand in China? What were the demographics they decided to target?

Starbucks had to understand the demographics of age, lifestyle and income in China. Despite that the disposable income market of ‘Chuppies’ are a relatively young demographic to target, Starbucks found that the more important factor than age and income in China was that people needed a place to gather with friends and family. Thus the larger restaurant was provided with more seating and a larger menu.

4. What was the initial global-market strategy Starbucks employed to enter China? Discuss the advantages and disadvantages to this early strategy. How has its strategy changed since then and why?

The initial global market strategy that Starbucks employed to enter China was by allowing local developers to use their brand and also by setting up joint ventures with partners. By doing this they were able to learn the changing political and business landscapes in China. A disadvantage was that the only money they made was through royalty fees from the licensee. In 2006 Starbucks bought out their partners and took control of 60 stores. They felt that they knew China better and were confident in going into business on their own. The changes in the market after Beijing enteres the World Trade Organization made this transition easier too.

Marketing Segmentation

Marketing Segmentation

United Health Care


Professor Knabe

August 26, 2013

Marketing Segmentation: United Health Care

An integral part of a business’s market strategy is market segmentation. Market Segmentation is that process of breaking down a large market into smaller groups of consumers so that they can market more efficiently. Whether you are a consumer oriented company or a business oriented company you should use Market segmentation.

As a health insurance provider our market segmentation is based on research and academic literature. In the health care industry we cover every constituent served by our organization. Out target markets are: Employers

Members-commercial group, individual, Medicare, and Medicaid Network Physicians
Although the orientation of each analysis differs the all have the same basic principles. Experience has led to the belief that the right connections between the conceptual and analytical approaches to derive segments and implementation strategies that clients has found useful for improve marketing efficiency and effectiveness. We have the same general approach to marketing as most health care insurance companies. We just add our own ideas and put a special twist on the presentation of our product when it
comes to our marketing strategy.

Our primary market segment is our members. The reason being that they are the largest market segment of the four groups. They can be broken down into four groups as well. If we offer market our products in a way that is appealing to the member not only do retain current members but we also attract new members. The process of market segmentation must be conducted with the ability of an organization to address the resulting segments.

We have a fairly large geographic area, with the most of our members being located in the United States of America. We originated in the state of California so most of member or in the Western United states. We have also migrated to the other sections of the US. We currently have a heavy population in southern states such as Texas, Florida, and Georgia. We also have a heavy population in along the Eastern Seaboard and Northern states such as Wisconsin. The way we market our product in those areas is through mailers, magazine ads, television ads and sometime radio.

Our members come from all walks of life. When developing plans we aim to tailor them to the different types of member we serve. Many of our members are travelers so we offer a benefit that covers them from state to state and internationally as well. This benefit is very attractive to the members with active lifestyles. We also serve a high elderly population. We tend to offer benefits that would be appealing to the aging population that many other insurance plans have yet to offer. In 2011 we began offering a hearing aid benefit to our member.

At this time no other company is offering this benefit, we have enrolled many new members because of this. Hearing aids are very expensive and the fact that we offer them at a discounted rate keeps our member and draws new members to us. We also offer a gym membership that caters to senior citizens, this is tends to draw members that like to stay fit and it enables them to do it at their own pace. We also offer products that are affordable to individuals that don’t have insurance offered to them by their employers.

We offer plans for all ranges of incomes. Members with higher incomes tend to purchase the plans that offer the premium benefits. Those with lower incomes tend to purchase plans with that meets the basic needs just to have some coverage. Our Medicaid members tend to have the basic needs met because it is basically a state funded program. When designing plans and choosing benefits, we have to consider the target market and user behavior. We design plans for members that go to the doctors frequently as well as for members that only go to the doctor for preventative care only. When designing these plans we also have to make cost sharing arrangements with employer and discuss premiums being that they will also be contributing to the cost of the insurance for their employees. Past behaviors such as history of switching, current health plan and carry, current benefit design, monthly premium and cost sharing arrangement with employees.

Product Positioning
Competition exists in just about every market, especially in niche’ markets. It’s our job to position our products and services for fit each particular segment. Product positions may be defined by communication such as advertising rather than the differences between the products. The objective is to expand existing products and continuously adjust them to our ever changing demographic. When doing so we make sure we assess certain criteria for all potential segments: profitable size- profit potential

accessibility- segment must be accessible through advertisement and other promotional tactics self-containment- product launched should not take demand from other products offered marketing mix response- segment should be responsive to marketing and promotion efforts If all of these criteria are met there is a great chance of have a successful and profitable business.


Driving Consumer Insight with the market Segmentation
Bakken, David G.
Examples of Marketing Segmentation
Kolemuller, Neil
Variable Selection for Health Insurance Market Segmentation