Devise a Marketing Strategy to present to the Marketing Director Essay Example for Free

Devise a Marketing Strategy to present to the Marketing Director Essay In this case study, I have been given a number of roles and my task is to consider and provide appropriate answers in the relevant business context where you apply learning from my course of study so far and my own work experiences. Question 1 I am the supervisor in the marketing department and I believe that there is scope for gaining more sales in the standardised sector of the market because of quality differences between my product and those of larger competitors. Devise a Marketing Strategy to present to the Marketing Director designed to achieve this objective Corporate Objectives The Furniture Company, based in a small town in Lancashire, develops, manufactures and markets quality furniture. The firm has a very good reputation throughout the entire region for all its products. The Furniture Companys Supervisor of the Marketing Department is at present pursuing a strategy to grow its market share in the standardised section of the market because of quality differences between their product and those of larger companies. Marketing Audit Internal Product High quality standardised products targeted at C1/C2 segments. Considered to be higher quality than those of larger competitors. The firm has a very good reputation for quality products. Pricing -Currently sold to up market retail outlets and on all sales are there is a very high profit margin on a relatively low turnover. Prices are higher than for similar type products in the large retail outlets due to economies of scale in purchasing. Place Customers mainly consist C1/C2 for the standardised furniture. Potential customers visit the companys display showroom, fully manned by an accounts clerk, a salesperson, both of whom are full-time and two part-time salespersons at weekend. Promotion Very little advertising is done. Current advertising is mainly done via local press, and via direct mail all aimed locally. Advertising spend tends to be about 3% of revenue, with higher marketing spend within peak months. External Social Since consumer trends are always changing, as are several of the products. With the traditional furniture, trends have small effect on sales. Economic Figures to be confirmed. There is a spend of over à ¯Ã‚ ¿Ã‚ ½750,000 within East Lancashire in the furniture market. The predicted growth for next year is 2% due to current consumer spend (interest rate currently stands at XX, and inflation 2.6%). Competitive The Furniture Company faces many competitors, on its retail side are many, and on local scale there are approximately 10 similar sized companies, although, the firm has a very good reputation throughout the entire region for all its products. Customer Audit Standardised products are aimed at C1/C2 segments. The competitions products were viewed as inferior to those of The Furniture Company, due to highly skilled craftsmanship. SWOT Analysis Strengths * Availability, either via local showroom, situated just off motorway or via retail outlet * Access, Full showroom with manned staff * Established, very good reputation throughout the region * Established up market retail outlet supplier * Higher quality than those of larger competitors * Innovation, constantly designing new furniture for changing market Weaknesses * Prices are slightly higher than for similar type products Opportunities * Market Development * Selling to mid-market retail outlets Nationwide * Expanding product into Europe worldwide Threats * Prices are higher than for similar type products in the large retail outlets * Unable to keep up with supplier demand Marketing Objectives and Strategies Market Development Ansoffs Matrix is a well-known Marketing Tool for deciding upon strategies for growth. First published in the Harvard Business Review (1957) in an article called Strategies for Diversification (see below example). Market Penetration By marketing our existing products to our existing customers, thus increasing revenue, by promoting the product, repositioning the brand. The aim is to encourage people to switch from other furniture manufacturers. Market Development Marketing the product in a new market/target audience. By introducing the product into a new region and also exporting the product. Market Extension/Product Development Selling the existing standard furniture into new markets, nationwide and worldwide, as the product already has a strong marketing competence. Diversification Not required Example of The Ansoff Matrix Product Life Cycle (see diagram below) Launch/Introduction The product is introduced into new markets and heavily promoted to create awareness. High costs. Due to success in the current markets, risk is fairly low. Growth Higher volume of sales enables The Furniture Company to benefit from economies of scale. Products become more profitable as sales rise and costs fall. Advertising spend is still high and focuses on building upon a brand name, ready for the maturity and decline stage to introduce new furniture after the brand has been established. Maturity Sales grow at a decreasing rate and then stabilise. Brand awareness is crucial in continuing success. The company retains its share of the market by capturing sales from weaker rivals by ensuring consistently quality furniture. Decline At this point there is a downturn in the market for this particular product. Sales and profit decline. New products are introduced or consumer tastes have changed. Product can be removed from the market at this stage and replaced by new furniture or profits can be improved by reducing marketing spend and cost cutting. Elimination/Withdrawal (or extension) When faced with decline in sales, the company will need to decide whether the decline is Temporary, Terminal and Irreversible or Capable of being reversed by an adjustment in the marketing mix Extension To rejuvenate the product to prolong its life by changing the product, the brand, the way it is promoted or the distribution channel. Question 2 As supervisor in the marketing department one of my roles is to devise expansion strategies as question 1. I believe, however, that the high quality hand crafted furniture could sell to a national and ultimately international market especially if at some future point the U.K. joins the single currency. At present these products sell to a regional market and I have already put this idea to the Marketing Director and received a positive response to the extent that he wants you to do a presentation to the full board of Directors on this idea Devise a promotional campaign to be presented to the Board that would reach a national market for the higher quality products. Marketing is defined as the management process responsible for identifying, anticipating and satisfying the requirements of customer profitably. Product Introduce the standardised range and also high quality furniture into mid-market and up-market retail outlets nationwide. The standardised range is higher quality than those of competitors. The handcrafted furniture provides high quality furniture aimed at the higher end of the market. Price Cost for the standardised product is slightly higher than its competitors. This can stand being higher due being higher quality than the products of competitors. Place The standardised products and the high quality furniture both sell currently to larger retail outlets and also to individual order. Introduction of the furniture into a national market and also international market. Promotion Offer trials to nationwide retail outlets, both mid-market and up-market with the relevant products, with trial offers. Pay for advertising spend to promote the product within the area via local media, and also promote product and brand via in-store advertising and display stands. Brand awareness is very important at this stage. The Promotional Plan * Description of products available * A description of target audience * Identification of the price * Information on where the product will be sold * Methods to be used o Posters placed at locations in store and places frequented by your target audience o Press Release Informing of the product to be selling locally o Local Newspaper Advertising Advertising within locality using established media within the area promoting brand and product o Radio Advertising Informing of product and brand launch, aimed at prime time listening, selecting stations geared to 35+ and homeowner audience. Question 3 I am employed as the supervisor in the Personnel Department and am responsible for the overseeing of the day-to-day tasks of the department. I am currently studying for the Institute of Personnel Management qualification and have become more familiar with the concept of human resources. Present a paper to the Personnel director outlining the benefits of introducing a HRM approach to the management of people and in particular how this would improve both productivity and motivation. Motivation (Definition) a set of processes concerned with the force that energises behaviour and directs it towards attaining some goal. A strategic, coherent and comprehensive approach to the management and development of the organisations human resources in which every aspect of that approach is wholly integrated with the overall management of the organisation. HRM is essentially an ideology, quote M. Armstrong, taken from Handbook of Human Resource Management, Kogan Page, 1999. Human resources management activities relate to employees pay, welfare, conditions of employment and training. HRM is based on four principles * Employees must be seen as valued assets in which to invest. It is human capability and commitment, which, in the final analysis, distinguishes successful organisations from the rest, Storey. * HRM is of strategic importance and, therefore, needs to be considered by top management in the formulation of the corporate plan. * Commitment not compliance. The key levers (the development of human resources; evaluation of performance and the rewarding of it) are to be used to seek not merely compliance but commitment. In other words, employees should not be forced to work grudgingly, but by obtaining their wholehearted commitment * Strategic implications of HRM. HRM is therefore, seen to have long-term implications and be integral to the core performance of the business. It must be the intimate concern of the line managers. Line managers have the responsibility of managing their staff. The role of personnel function is to enable the line managers to fulfil their HRM responsibilities effectively. Soft and Hard Approach to HRM The soft approach can be closer than the traditional personnel approach. Soft HRM is an integrated strategic function that is concerned with nurturing people because they are human beings whose feelings should be considered and, developing this valuable resource is the best way to achieve results. The Hard approach is based on the belief that human resources are the key assets, with emphasis placed on * Getting more out of people * Using them in a more productive way The aims of HRM are the same whether hard or soft and as follows * Enable management to achieve organisational objectives via its workforce * Enable people to utilise their full potential * Foster commitment * Integrate human resources policies with business plans * Establish an environment to unleash the creativity and energy of the workforce * Encourage flexibility in the interests of an organisation that is able to adapt to the environment and achieve excellence The main areas of management activity associated with the HRM philosophy * Organisation, design and effectiveness especially in relation to teamwork, communications, customer service and change management * Resources providing human resources required by means of recruitment, retention and training programmes. * Performance management improving performance by means of appraisal * Reward management for example, linking pay to performance * Motivation redesigning jobs and devising rewards to motivate employees * Commitment The integration of the needs of the individual with those of the organisation * Employee Relations Policies and procedures to encourage cooperation to the mutual benefit to all * Flexibility by means of mulitskilling redesigning jobs and new patterns of work * Quality as a way of life * Culture management influencing behaviour and thereby attitudes by means of resourcing, performance management and reward strategies Leadership and Motivation In the HRM school, Leadership should be democratic rather than authoritarian, managers should consult employees on matters that affect them, important in gaining respect of both the manager and the company, motivation rewards of social and psychological, not just financial. Motivation is defined as in influence that cases people (employees) to want to behave in a certain way, and combined with ability can result in performance. The motivated worker will be keen to work, take pride in their work, will not display negative attitude towards the company, display high level of commitment and get satisfaction out of work, benefiting the organisation with higher productivity levels, lower labour turnover, lower absenteeism, improve quality with less waste, greater willingness to accept change, willingness to contribute ideas and take on additional responsibility, allowing the company to overall reap the benefits of even greater financial gain. In production department, for example, possible financial reward could be brought into place looking at Hertzbergs Hygiene factors of Pay and Benefits, Working Conditions, Company Policy, Status, Job Security, Supervision, Office and Personal Lift all set to motivate Achievement, Recognition, Job Interest, Responsibility and ultimately Advancement. HRM could look at setting up motivating factors with the sales department by setting targets based on achieving sales to new retailers nationwide with additional financial gain based on and over achieving rewards. The key concepts to adapting a HRM approach to the company would provide the following Competition advantage Aspects of the company that give it an advantage over its rivals Human Resource Management A strategic, coherent and comprehensive approach to the management and development of the companys human resources Personnel Management Management/administration of recruitment, welfare and training of the employees McGregors Theory x and Y (1960) McGregors Theory X and Y (1960) about managerial behaviour had a profound effect on management thinking and practice. His Theory Y principles featured in management training courses for a decade or more. They influenced the design and implementation of personnel policies and practices. The legacy today permeates the axioms of participative and total quality management and the continued practice of staff appraisal. McGregor defined assumptions that he felt underpinned the practices and stances of managers in relation to employees. These were evident from their conversations and actions. Two sets of propositions were dubbed Theory X and Y. He was saying that what managers said or showed in their behaviour revealed their theories-in-use. Their predisposition led managers to pursue particular kinds of policies and relationships with employees. McGregors Theory Y was interpreted and promoted as a one-best-way, i.e. Y is the best. Managers or aspects of their behaviour became labelled as Theory X, the bad stereotype and Theory Y the good. McGregor ideas were much informed by Maslows need satisfaction model of motivation. Needs provide the driving force motivating behaviour and general orientation. Maslows ideas suggested that worker dissatisfaction with work was due to poor job design, managerial behaviour and too few opportunities for job satisfaction. On the basis of these ideas about drives Maslow suggested a classification of needs related to the development of the person lower level needs giving way developmentally to higher order needs. Thus a hierarchy is suggested although not claimed by Maslow. Example of Maslows Hieratchy Benefits If we introduced a HRM approach to the company ultimately employees at all levels will feel motivated and productive as quoted by carrot stick philosophy acceptance, and produce the most productivity. Employees will feel more worthy with a much easier line of communication with everyone feeling a valuable part of the organisation. The company needs to introduce a leadership mentality rather than management leadership and nurturer a new leadership approach. At present the organisations communications systems are mostly paper and telephone based Present a discussion document to the Personnel director explaining the concept of this electronic office, including explanation of the relevant technologies and their potential benefits You should also point out any potential drawbacks from this innovation and conclude with an evaluation of whether the benefits outweigh the drawbacks or vice versa While predictions of the paperless office have yet to be fully realised, modern business now relies on a vast array of electronic equipment to function efficiently and effectively. The concept of a paperless office is to ensure productivity improvement and to use time more efficiently. At present most of the organisations communications are paper and telephone based. Initially, by utilising e-mail (electronic mail, which is the main use of the internet) the following advantages are gained by replacing paper telephone communication * Speed of movement and data * Paperless office * Accessible via any modem line * Delivery is faster than snail mail (post, especially useful when dealing overseas) * It overcomes the problems of timezones. The recipient does not have to be there to receive it * Like fax, it is possible to send messages to more than one person * E-mail addresses are portable * It enables users to exchange information with people * The cost is not dependent on the distance travelled * It is cheaper than fax or telephone * Cuts out general chat on the telephone * Less formal than a letter * The message will remain in the recipients e-mail account until it is collected * Can be sent with document or picture attachment * E-mails can be stored until recipient discards information Installing computerised systems with each department will also benefit from enabling all staff to access shared data from different departments computerised filing systems, e.g. access into word documents, spread sheets and other programme files. With transportable laptops, the office can be taken anywhere and even used worldwide, to assist in presentations and retrieving documents on a more global scale. Document Management System Another new form of the Electronic Office is the Document Management System offering solutions from the standalone scanner to a whole enterprise solution. E-Business solution companies analyse and advise on new business solutions. The Document Management System is a small step in the way forward for the paperless office, the benefits of incorporating the system is * Reduce office staff non-productivity rapidly locating folders and documents * Retain corporate knowledge and know where it is * Access paper documents within your business application * Scan your cabinets full of documents to secure them in case of Fire, Flood, Burglary or damage * Enable multiple people access to the same document or folder * Safely secure your documents for archival * Reduce boxes of stored paper * Automatically recognise forms and characters on incoming documents and locate them based on their content * Fax and receive documents directly from your desktop * Establish document privacy Electronic Office Manager It is a Human Resources and Process Management System that focuses on the internal operations of your business. The EOM provides businesses with a computerised Office Manager, with everything defined as a procedure, checklist or form. Job Descriptions become daily to do lists. To help manage time with automated reminders covering everything from training events to holiday management. EOM also provides Electronic Human Resource and Training Departments with employee files, applicant databases, and pre-written and editable employee handbooks and job descriptions. It also includes a system for creating and scheduling training. EOM even helps with financial forecasting and business planning features and point-to-point web navigation and link management. Operative Procedures, HRM, Business Development, Scheduling and Education Training are all available via EOM programme. Electronic Drawbacks Training and monitoring of training will be required at each stage to ensure competence and understanding of new system. With regular meetings required, and management of the change in system. Staff may be dissatisfied with the paperless office, and reluctant to the change. System failure. Without the adequate after support service and/or training there could be potential problems with system errors, which may result in non-productivity if staff rely on PCs when there is a breakdown. A recent example pf a paperless office is one department of Glasgow Borough Council, who recently had a computerised system developed solely for the use. Originally, each site manager called into an office each morning to collect information on various sites requiring repair assessment visits (approx 20 throughout the day) followed by a visiting to each site and manual completion of an in-depth form, and followed by manually inputting information on the computer for someone else then to call out to complete the repair work. The Borough Council have now developed a computerised system to enable them to receive the site information via electronic organiser, input the repair requirements, and return information upon completion for repairs to be carried out. Not only did this save much time on paperwork, but also time is more effectively managed by receiving full details of jobs throughout the day, which may be in areas the site manager is already working in. BIBLIOGRAPHY Jewell Bruce R, An Integrated Approach to Business Studies, Longman, [2000] ISBN 0582 40542 4 Ansoffs Matrix, www.marketingteacher.com/lessons/lesson_ansoff.html [accessed 31/05/02] How do I market My Inventions, http://www.montanaedu/wwwcxai [accessed 20/05/02] The Electronic Office, www.walters.co.uk/brochure/elecoffice1.htm [accessed 06/06/02] Imaging and Document Management Solutions, www.cabinetng.net/paperlessoffice.htm [accessed 05/06/02]