Category: Business

Introduction

Super group was begun in the year 1985 by Julian Dunkerton as cult clothing. The original store was located in Cheltenham which later grew and expanded to other parts of the world. In the year 2003, Julian Dunkerton joined business with known designer John Holder. Holder had previous founded the bench brand. The merger resulted to a new brand known as superdry. Superdry brand has gained recognition and popularity both within the United Kingdom and outside.

About Supergroup

The group has its roots in the United Kingdom but has also spread to other parts of the world. It trades affordable clothing fashion in the youth fashion market (Finlay,77). Through the expansion program and efforts of Supergroup, it has developed a number of brands. Of the brands, the major one is the superdry supergroup which currently has forty standalone retail store and fifty four superdry concessions in house of Fraser. Of the fifty four brands, forty five are menswear with the rest being womenswear (Bradford, 25).

Of the forty nine standalone stores, 20 are Cult stores, which sell the Supergoups own branded products as well as third party brands, 18 are Superdry stores from which predominantly Superdry branded products are sold, 77Breed is another of the Supergoups own brands. Supergroup also has three outlet stores and since 2004, Supergroup has established three fully transactional websites. In the United Kingdom, the website deals with wholesale.

The sales in the company can take the path of either being direct or indirect depending on the market demand.. Direct sales include selling to final consumer. Franchising is like a lease of the premises together with the business. Those who get into the business have to follow the already developed rules and regulations of the business.

With a franchise, you cannot expand the business. Licensing is when the larger company allows people to trade in their name which is already established. The advantage is one operates in an already existing and popular name.

The range of the supergroup

Supergroup initially was a local retail fashion outlet in Cheltenham. Through expansions currently the company is international with outlets in Europe and outside Europe. It has also expanded from being a one outlet to wholesaling, franchising, and distribution. Currently it is a chain of businesses (Morden,91). The company also ranges from selling menswear to selling womenswear and it has potential to grow.

Target Market

Super-group targets both men and women of young age. They target youth of between ages fifteen and twenty five years. The reason is this is the group which is always going with fashion. Any new fashion would mean a kill by the company. This group also does not have many other responsibilities as most of them are still in the custody of their parents and guardians.

As a result they can spend most of their earnings and pocket money in buying new fashions as opposed to the elderly people who have many other responsibilities and purchasing of new fashions is not part of their priorities.

The position of Super-group in the market

Super-group occupies a position in the youth brands market. The group has enjoyed continued increasing business due to the constant changing customer tastes and preferences. This ensures that the group has a new fashion in the stock to meet that changing attitudes of the target consumers.

The group also considers itself safe in the market to the strong brands they have developed for instance Super-dry. The strength of the brands is in terms of the quality, popularity, reputation, authenticity and proper design which acts as the catalyst for driving sales and hence revenues.

The financial reports of Super-group indicate that the group is worth forty one billion US dollars. The market has grown by 16.2 per cent and is forecasted to grow by 10.3% for the period stretching to the subsequently 5years. The youth menswear is forecast to record the greatest growth within the menswear market. This growth will be associated with the fact the young are more concerned with the way they appear and are more fashion conscious the alder generations.

Such a growth will have an implication that Super-group will continue to hold their good position in the market, the returns will continue to be high and the companys worthiness will increase. The growth will propel the company to even a better position in the market among its competitors.

Super-group operates in a very competitive fashion market. One of the ways to stay ahead and which it has used to stay ahead of its competitors is through ensuring it stocks quality fashions, keeps abreast any new fashion which may be in demand and setting pocket friendly prices to meet their financial objectives but at the same time attract new customers while retaining the old ones. But even then super-group has to be on high alert to understanding what strategy the competitors have for they are one of the greatest challenges in the world of business.

The other strategy to for super-group to having a competitive advantage over their competitors is to increasing their roll outs of standalone stores in the United Kingdom at a rate of twenty per year and extending the product range from one thousand pieces in spring to over two thousand in autumn (Holbeche, 166).

This will be possible through developing inner-wears and womenswear. The group will also need to expand the wholesale division in the United Kingdom and beyond. The emphasis will be on franchise targeting Far East, Middle East and Africa (Armstrong, 14).

The group will go ahead to opening up their online business and offers particularly targeting international consumers and enhancing their websites to include several languages as well as multi-currency options at the international level. The group also intends to develop new brands to enhance the existing ones as they undertake further licensing of the super-dry brand.

Strengths of Super-group

The group is endowed with a number strength which they bank on lat for their business progress. Some of the strengths include; strong retail and wholesale outlets in the United Kingdom and the Ireland. The retail outlets contributed to a growth in profits of 76.8 per cent while the wholesale gave a share of over 90 per cent to the total revenues.

Strong supply linkages are other strength for super group. Their designs are in-house but then they contract oversee companies for the manufacturing. The companies are contracted on the basis of their expertise and specialism.

Infrastructure has been on the side of the super-group (Hill, 32; Pearce, 47). The super-group is also developing physical infrastructure to enhance their operations for instance in the United Kingdom there is a distribution center which is meant to improve on the efficiency of the company. Information Technology has been improved with websites being developed and the existing ones improved.

Pestel analysis

All businesses of any strength are faced with different challenges that can be captured in political, Environmental, Social, Technical, Economic and Legal analysis. The social position of the super-group though stable can be improved by expanding their target consumers (Thompson,88). This can include factoring in the other social group. This will help broaden the revenue source base. The youth are unpredictable and so the group should spread the risk of uncertainty. One cannot trust all the eggs in one basket.

According to the executive report the company is well endowed with technical capability. They recruit experienced and well trained managers who are assisted by committed subordinated in the quest for success. However, the group should not stop at that but should continue to train their staff to ensure that they are on as per with the market (Thompson, 101).

Economic implications are sometimes beyond the organizations capacity. Some of the recent economic bumps were associated with the world economic meltdown. The recess in the world economies affected spending, money lost value and people became conscious of how they spend their money. The most important thing was to eat not to purchase a new fashion. Businesses lost revenue and those with weak financial base and strategy left the market (Wheelen, 121; 127).

Super-group is not an exception from such financial calamities. There is need to develop a strong financial base and forecast on future similar financial crises. One way of safeguarding the business from such external factors is having a wide client base and also expanding the business to include other products for example they can include other fiber products like curtains, beddings and even footwear.

References

Armstrong, Michael (2007): Strategies for Human Resource Management, Translated by Khodayar-e- Abili, Fara Publication, Tehran, Iran.

Bradford, R., Duncan,P., Simplified Strategic Planning: The No Nonsense Guide for Busy People Who Want Results Fast, Chanlder House Press, 2007.

Finlay, Paul (2006), Strategic Management. An Introduction to Business and Corporate Strategy. Pearson Education. ISBN 0 201 39827 3

Hill,Charls W.L. & Jones Gareth R.(2005): Strategic Management, Houghton Mifflin Co. USA.

Holbeche, Linda (2006): Aligning human Resources and Business Strategy, Elsevier Publication, Oxford.

Morden, Tony (2006), An Introduction to Business Strategy 2nd Ed. McGraw-Hill. ISBN 0-07-709451-4

Pearce, J. & Robinson, R. (2005): Strategic Management, 9th Edition, New York: McGraw- Hill Publication.

Thompson, John L (2006), Strategic Management, Awareness & Change. Chapman & Hall. ISBN 0-412-37500-1

Wheelen, Thomas L & Hinger, David, J (2003), Cases in Strategic Management 4^th Ed. Addison-Wesley Publishing Company Inc. ISBN 0-201-568659

Introduction

Succession planning is fast becoming an inevitable culture in most organizations specifically in companys strategic plans (Baldwin 2000, p.1).

Lack of succession planning in the past has resulted into companies developing and nurturing inappropriate human capital strengths in the company, also has seen absence or inadequately continuous sequence of people with necessary qualities when the current pool of managers retire from the company and lastly lack of effective succession planning has derailed many future plans of companies (Baldwin 2000, p.1

The aim of this research will be to develop a plan that addresses internal labor needs in the medium to long term for the Billabong Company by borrowing heavily from the principles of succession plan and incorporating retention plan.

Long term organizational goals and their effect on required labor supply

Billabong has continued to demonstrate its ability in global growth mainly through brand portfolio and increased international acquisition of retail outlets (Obrien 2008). International diversification and exploitation of new markets has also formed the companys strategy.

Envisioned as mid to long term strategy, the company aims to constantly deliver, double-digit earnings growth in all its key regions of business. The ability and vision of Billabong to realize long-term growth especially in competitive markets will require the company to invest in adequate and dedicated labor manpower. An effective succession planning should have the ability to respond both to the short-term and long-term needs and plans of the organization and also its worldwide operations.

Billabong strategy is long-term in nature and therefore it should focus on capitalizing on long-term labor supply to meet the almost certain and more permanent work demand (Vance, Vance and Paik 2010). Before any staffing is made the company needs to engage in thoughtful consideration of the nature of the present and future work demand and also the potential viable sources of labor supply.

Operating in international environment the company has the opportunity to engage in a continuous scanning of the various labor markets in order to locate and identify the specific opportunities or problems that may be associated to the supply of labor in order to support the specific company objectives (Vance, Vance and Paik 2010).

Recommendation

Firmly guided by the companys long-term strategic plans, the succession and workforce planning should have special consideration of efforts to utilize local and host countrys labor, set goals of recruiting, training and succession planning in the global environment that will ensure there is long-term availability of an effective supply of managers and other business professionals to carry out expansion goals of the company in international market.

Current and potential future demand for labor

Apart from operating in Australia Billabong has established strong presence in America, Asia, Europe and South Africa. Labor demands and supply in these regions differ but on overall labor demand and supply is influence d by factors such as economy, level of training and experience, technology, political climate in terms of policy mechanism and the changing rate of consumption of goods and services among the population.

In identifying the current and future staffing requirements, succession and workforce planning process should be involved in analysis of the current and future staffing levels and to effectively go about this, there should be a thorough understanding of the labor supply, projection of the future staffing needs that reflects the current level of staffing composition, thorough identification of numerous and related factors that drive the current staffing level composition and also engagement (Hatrak Associates Approach n.d, p.7).

An analysis of the current and future demand for labor will always reveals gaps that can a succession and workforce plan can be designed.

Recommendations

In formulating a succession and workforce plan, Billabong has to accurately understand the various and specific staffing drivers which in turn will enable the company to make an evaluation of the existing alternatives to use in filling the staffing gaps.

The plan also should be clear on the programs that intend to transform and engage the workforce through such processes of, identifying key jobs and skills across the organizations hierarchy, documenting any current talent shortage (GAPS), consider broad shifts in economy and industry that will impact the need for key jobs, increase retention of the current workforce, and finally compare demand projections to supply projections and define critical gaps (Hatrak Associates Approach n.d, p.8).

Billabong and high staff turnover and objectives to address this aspect

Staff turnover at Billabong has relative remained invisible although no outright rule can be passed of its non-existence. The company has outlined employee policy that incorporates aspects of international human rights enabling the company to full observe the needs and rights of the workers.

Generally when an employee leaves a firm the particular firm experiences loss as hiring and training expenses will have to be allocated (Demkin and American Institute of Architects 2004). Further the productivity of the employee is lost which becomes difficult for the company to replace. As a result, staff retention becomes a key strategic goal to be pursued by most companies.

The traditional belief has been that employees are motivated by salary and other money incentives in order to stay longer in a firm but research has shown that currently this is not the case (Mushrush 2002, p.1). Most employees are looking and get attracted by the companies career development opportunities, work-life balance, individualized work options and benefits and feedback about their work which are seen to be the major factors employee will be motivated by (Mushrush 2002, p.1).

Billabong reduced staff turnover can be attributed to companies effort and culture of employing the right people and subsequently instituting amicable environment for the workers to develop their careers (Demkin and American Institute of Architects 2004).

With strategies for long-term growth and expansion, Billabong has initiated numerous workforce upgrading programs; fitting the workforce in the overall culture of the organization ensuring their goals; values and visions are matched with those of the company (Mushrush 2002, p.1).

Recommendations

Reducing staff turnover requires Billabong Company to invest in adequate programs that will address elements that results into high staff turnover, such elements may include: non-competitive compensation, high stress, working conditions for the workers, monotony and poor supervision, poor fit between the employee and the job, inadequate training, poor communications and organization practices (Mushrush 2002, p.1).

Implementation strategies to assist workforce deal with organization change

Workforce remains as the critical value to realization of the organization objectives and goals and therefore during organizational change there should be a unique and efficient workforce plan to help employees manage the change process successful.

Recommendations

First the company should have an accommodative decision-making and managerial structure that is able to incorporate the views, concerns and needs of the workforce during the period of change (Morrit and Siscovick n.d).

Thereafter, there should be a well developed motivational program that ensures appropriate reward, appreciation or recognition is carried out in the company for the participation and contribution of the workforce in the change process.

Establishment of effective and functional human resources information system (HRIS) that is able to integrate employee and job information and safe storage. This will make it possible for the company to monitor the role of employees in the change process and where necessary provide back-up programs or changes.

Strategies to ensure desirable workers are developed and retained

Lon-term business strategy of growth and expansion depends much on the business ability to attract and retain goal-oriented workforce. Billabong with strategic vision to increase its market size and presence in the world and also in its already established markets has to establish an effective workforce strategy that incorporates organizations goals and retention ideas that in turn will result into presence of a pool of talented workforce ready to drive the needs of the company.

Recommendations

The succession and workforce plan should in detail outline how talent management in the company can be spearheaded and achieved. This talent management strategy will involve: broad-consensus efforts to recruit, develop and keep the best and most talented people in the organization; Continuous training and development of people with unique talents for the company; conducting frequent performance and development coaching; recruiting a diverse workforce; supporting internal and external recruitment programs (Rothwell 2009).

Objectives related to workforce retention

Depending with the particular organization workforce retention programs have been designed based on the feasibility analysis by the particular company that take into account the business needs, job performance needs, skills and knowledge needs, preference needs and sometimes economic and legal needs (Phillips and Connell 2003).

Generally in reducing turnover and strengthening workforce retention, Billabong needs to put focus on the particular structures of labor market it is interested or perceives to be important in facilitating the companys goals, also needs to outline the critical preference skills or talents it needs and subsequently establish plans to develop the talents.

Recommendations

Billabong need to clearly identify the attractive retention factors that will thrill employees to remain in the company. In this regard the company should focus its retention strategies to key areas of employee satisfaction, employee engagement, organization culture, the role of line managers in their supervisory roles, the general environment, communication channels that connect employees to the company in a more comfortable way, training and development programs, excellent career opportunities and lastly effective compensatory incentives in terms of pays and rewards (Zingheim and Schuster 2008).

Government influence on labor demand and supply

Government has the ability and capacity to influence labor demand and supply through various political, economic and social policies. For instances economic policies may be expansionary or contractionary in nature with relation to labor market. When the government expand economic opportunities with less barriers then more investment become viable spurring demand for labor.

Recommendation

Billabong needs to understand the economic, political and social policy framework and environment of the host country or region it operates or intend to operate. This will help the company to create a workforce that is in line with legal-political and economic requirement of the specific country.

Conclusion

Workforce planning is closely related to succession planning as both deals with efforts and strategies of changing the workforce. While workforce planning is concerned with, changing the size, distribution and composition of the workforce to meet future needs in an orderly, controlled, and efficient manner, succession planning is concerned with replacing people or specific groups of people in the workforce (U.S. Department of Transportation-Federal Highway Administration n.d, p.1). Therefore Billabong needs an effective succession and workforce planning to realize its long-term goals.

Reference List

Baldwin, M. D., 2000. The Strategy of Succession Planning. Web.

Demkin and American Institute of Architects, 2004. The Architects Handbook of Professional Practice Update. NJ, John Wiley and Sons. Web.

Hatrak Associates Approach. Labor Supply/Demand Analyses Methodology. Web.

Mushrush, W., 2002. Reducing Employee Turnover. Extensions Creating Quality newsletter for Small Business and Technology Development Centers, West Plains for University of Missouri. Web.

Obrien, S., 2008. Billabongs CEO Discusses Companys Full Year Results. Web. Web.

Phillips, J. J. and Connell, A. O., 2003. Managing employee retention: a strategic accountability approach. MA, Butterworth-Heinemann. Web.

Rothwell, W. J., 2009. The Managers Guide to Maximizing Employee Potential: Quick and Easy Strategies to Develop Talent Every Day. NJ, AMACOM Division American Management Association. Web.

Morrit, C. P. and Siscovick, The Human Capital Dimension: Optimizing workforce strategy to capture the value of the deal. Mercer Human Resource Consulting. Web.

U.S. Department of Transportation-Federal Highway Administration, N.d. Chapter 4-The future of Workforce and Succession Planning in FHWA. Web.

Vance, C. M., Vance, C. M. and Paik, Y., 2010. Managing a Global Workforce: Challenges and Opportunities in International Human Resource Management. NY, M. E. Sharpe. Web.

Zingheim, P. K. and Schuster, J. R., 2008. Workforce Retention and Pay and Reward Practices in Americas Best Hospitals. Web.

Introduction

Scope of the Advertisement

The Sony Ericsson Inc wishes to upgrade the technology world by introducing one of the best 3G phones ever. The phone, which has a multitude of features that not only makes it a choice phone but also makes it the phone of the future, has been rated as a substitute of the common and very famous I-Phone from Apple Inc. Although the Apple remains a very expensive and sophisticated phone in the market today, with loads of technological features that make it a real display of technological inventions and advancements in the world of Information and communication technology, it is also surrounded by a lot of drawbacks that make it a nightmare for many. With a few important features of the mobile technology missing in the I-phone, and with a lot of security issues having been reported showcasing the I-phone as a great threat to its customers, the phone is indeed falling back in the world as a phone for all. In fact, its greatest challenge is its price, a price that is usually not consistent with what it offers to the market in terms of its features, reliability and affordability. The new Sony Ericsson Vivaz is hence the choice phone since it is a mix of sophistication and simplicity, giving its customers real value for their money.

The advertisement aimed at marketing the phone will mainly display its strengths compared to the I-Phone and will target the young generation as well as business people who may use the phone for different functions.

The main objective of the advertisement will be to offer the choice phone to all generations and markets hence advancing the mobile technology to the next level (Oppapers 2010).

Budget for Advertisement Activities

The ad will consist of a strategy with different stages and levels so as to ensure the phone not only gains popularity but also is able to sustain that popularity in the market. The advertisement strategy will hence constitute of different activities including:

• Use of Commercials on Television.
• Online Advertisements.
• Use of Bill Boards.
• Advertisement on news papers.
• Awarding offers to customers after they purchase the given model of phones.
• Awarding of gifts and gift packs from the company.
• Offering competitions on the radio with many gifts, including the phone, to be won (Baker 2010).

The predicted cost of advertising and of the whole advertisement strategy is as illustrated in the table below:

Table for the Expected Cost of the Whole Advertisement Strategy.

(Biz Development 2008).

The strategy will hence require a large sum of money. For this reason, the amount will be distributed accordingly so as to ensure that returns realized by the company are as purposed in the objectives.

Advertising activities schedule

The advertisements will take a span of ten weeks and all the activities are bound to be complete by then and to have acquired the supposed objectives of the advertisement. The schedule for the activities to be involved in the advertisements would be as follows:

Table for the Schedule of the Activities in the Advertisement Strategy.

(Lorin 2010).

The Implementation Plan

The advertisement would mainly focus on the online, radio and billboards advertisements. All the advertisements would hold the slogan The choice phone of the future and would be aimed at creating a trust and assurance on the quality, usability and competitiveness of the Sony Ericsson Vivaz phone. The advertisements would also give a clear comparison between the phone and other market leader phones while still showcasing the phone as the one with a better quality and which is more affordable.

In the radio advertisements, commercials would be used mostly during the programs that people love the most and which have a wider range of listeners, especially the interactive sessions that include the use of communication between radio listeners and their clients. Also, the youth and business-oriented programs would be targeted.

In such moments, the listeners are bound to gain a lot of interest and trust in the phones being advertised as they already trust the radio programs they are listening to. On the other hand, competitions would be offered with gifts being earned from the advertising company. These gifts would include a few free phones and other gifts that would support the ICT industry and hence impact on support of the Vivaz phones.

In the online advertisements, the company would seek collaboration with other companies and people who own websites with a great flow of traffic of internet users. Advertisements or the phone would then be placed on the websites so that when the users log onto the websites, they can be attracted to the adverts and seek for more information on the phones. This way, additional information would be provided, allowing the users to gain interest and trust on the phones.

The billboards will also showcase the most important and attractive features of the phone. They will be placed at strategic places and shall influence the perception of the potential clients by drawing their attention and giving them an assurance on how fashionable, reliable and durable the phone is hence catching their attention. They will also give them directions on where they can buy phones from (Money instructor 2010).

Media Contract Negotiations

A media contract was initiated so as to ensure the company seeks the intervention of media firms in its advertisement. The media included the radio and television stations, firms involved in management of billboard advertisements and firms managing websites. All these forms of media would be appropriate to apply in the advertisement strategies so as to ensure that a maximum number of people access the information hence popularizing the phone in the shortest time possible.

The contracts by the media firms bore fruits since the firms were all willing to help advertise for the company as requested. They all agreed to include the advertisements for the Sony Ericsson Vivaz phone in all the commercials involving the greatest traffic of people accessing it.

This would ensure that a large percentage of the targeted population would be reached around the globe in a fast and reliable way. Through use of the local media such as television and radio firms, many potential clients would be reached and would gain the information. However, the use of internet and different websites would not only ensure local potential clients gain the information but even internationally, many potential buyers of the phone would get the information and hopefully be attracted to buy the phone.

The main challenge to the use of the media, however, would be the cost implication associated to advertisements on such media. The most expensive modes of advertisements would be radio, television and billboard advertisements. These would require a large allocation of funds to ensure the required cost is met. On the other side, there would be many benefits associated to those advertisements making them more preferable irrespective of their cost (Miles and Snow 2003).

Plan for the Monitoring of the Advertising Campaign

The advertising campaign would undergo an evaluation process so as to determine various factors including its feasibility, its cost analysis and other factors so as to determine if the whole strategy was viable. The process needs to be analyzed so as to also determine if it helps in achievement of the goals and objectives it is supposed to meet.

This would ensure that the whole strategy is not too expensive for the company resulting to a loss for the company while also ensuring the process gets enough funding so as to ensure it meets its goals in the required manner (Adamso 2002).

In the advertisement strategy, a monitoring process would be included so as to evaluate all those that would access the information and also to compare the cost of the strategy with the benefits gained from the advertisements. All this would be carried out both at the company level and also by involving analysts who would help determine the flow of the information and how well the goals of the advertisements were being met.

In this way, the company would involve a few members of its staff in the evaluation and data analysis department in collecting and analyzing the data for the viability of the advertisement strategy, including an analysis of the number of people being attracted to the product, those who buy the product as a result of the information gotten from the advertisements, the rate of advertisement of the products on the media as per the media contracts and also store and analyze information gained from outsourced analysts.

Evaluation would also be undertaken by experts included in the process through outsourcing. This way, experts would mainly be used to analyze the flow of information to potential clients especially in the websites used for the advertisements.

A cost would be incurred in the evaluation process. This cost would include the cost of outsourcing, amounting to $3,000 and the cost of evaluation in the company amounting to $1,000 (Shearman 2010).

Evaluation Strategy for the Campaign Effectiveness

A mode of evaluation would be formulated so as to determine how the advertisement strategy aids in achieving the organizational goals of the company. In this way, the main strategies that would be used would include an evaluation of the sales resulting from the advertisements so as to determine the benefits of the advertisement strategy, monitoring of the traffic accessing the advertisements in the websites and other online media and outsourcing of evaluation activities to experts.

In addition to these evaluation strategies, pre-campaign and post-campaign evaluations would be undertaken. Mostly, these would be implemented using the questionnaires that would be administered to those that access the information from advertisements so as to determine how to design the adverts in the best way.

The same evaluations would determine the attitudes of the potential clients towards the advertisements and the products being showcased by the company. In this way, the company would determine if the advertisements would help the company achieve its goals or if the company would have any benefits or a loss from the advertisement strategies (Wong 2010).

Implement the Campaign Effectiveness Evaluation Strategy

An evaluation of the effectiveness of the advertisement process would be undertaken. The process would include collection of data for those who access the information from the advertisements, the total cost involved in advertisements and also the benefits gained from the advertisements.

First, the cost of the advertisement strategy would be considered. Then, an analysis of those who will be reached by the information from the advertisements and also their attitude concerning the advertisements and the product being advertised would be undertaken.

Finally, the number of sales associated to the advertisements and also the other benefits gained from the whole advertisement process would be analyzed. With a comparison undertaken between the costs and the benefits, a conclusion would be arrived at on whether or not the advertisements strategy is effective.

References

Adamso, P., 2002. How to design an advertising campaign for your small business. Web.

Baker, R., 2010. Income Statements: The nature and Analysis of Company Performance. Web.

Biz Development, 2008. Manage Your Business Development. Web.

Lorin, S., 2010. Creative Advertising Ideas That Work. Web.

Miles, E. and Snow, L., 2003. Organizational Strategy, Structure and Process. Stanford: Business Books.

Money instructor, 2010. Basic Accounting. Web.

Oppapers, D., 2010. Marketing & Advertising: Advertising Campaign. Web.

Shearman, 2010. Internal Investigations and Foreign Data Protection Laws. Web.

Wong, K., 2010. Bloomberg BusinessWeek: VW Seeks China Chief as GM, Hyundai Steps Up Rivalry. Web.

Online success depends on many factors that contribute towards attracting customers and investors. Three steps are necessary for achievement of success. They include achieving fame, finding investors, and developing astute plans for future.

Facebook has attained online success by following the three steps. Its success is attributed to fame, focused and dedicated investors, and prudent plans. Currently, it is one of the most successful online companies. Therefore, achieving fame, finding investors, and planning for future are key aspects of achieving success.

Online success does not necessarily require making large amounts of money. However, attaining fame is an important aspect that should be considered. A famous website is considered successful even though it does not generate revenue. Success means that it attracts many visitors seeking information and different services.

Success of an online system is evaluated based on number of visitors (Gangemi par3). Few visitors imply that the system is unsuccessful while many visitors imply that the system is successful. Furthermore, generation of revenue depends on number of people that visit a system.

Therefore, if a system is famous, many people will use it because they find it helpful, reliable, and effective in providing information and other services. Critics argue that systems that do not generate revenue are unsuccessful because the main objective of starting an online venture is to generate revenue. They further argue that the success of an online venture is determined by revenue generation.

However, their argument is flawed and baseless. Reasons for starting an online venture include sensitization of people, advertisement of goods and services, and establishment of a forum for special groups such as drug addicts and alcohol abusers (Gangemi par3). Success of these ventures depends on number of people that use them.

In order for an online company to generate revenue, it must have adequate capital (ischool par3). In order for a company to obtain capital, it must search for investors. Investors are financially stable individuals who give money to companies with hope that they will get it back with a certain percentage as interest.

Obtaining capital is one of the ways companies use to generate revenue (ischool par5). Critics argue that there are other ways of obtaining capital other than finding investors such as peer-to-peer lending, crowdfunding, microloans, internet-based lending, and business invoice factoring (Harrison par4). However, these capital sources are not as effective as investor funding, which is the fastest method of obtaining adequate capital.

A company must have a good plan for future in order to sustain growth, attract investors, and achieve success. A good plan enables a company invest money obtained from investors in prudent ventures that increase revenue.

Planning increases efficiency, reduces risks, motivates employees and other stakeholders, makes decision-making processes efficient, and gives the company direction (Harrison par5). Critics argue that a plan is not necessary because online ventures require flexibility in order to deal effectively with uncertainties of online businesses such as new technologies and competition from other companies.

However, the best way to deal with online uncertainties is to develop a plan that includes strategies to handle competition, methods to utilize new technologies, and ways to solve problems and challenges (Harrison par7). A plan is a guide that facilitates achievement of goals and objectives. Without a plan, a company loses focus and experiences many challenges that hinder it from attaining success.

Works Cited

Gangemi, Jeffrey. Secrets of Online Business Success. 2006. Web.

Harrison, James. 10 Tips for Online Business Success. Web.

ischool: Making Money on the Web 2009. Web.

Introduction

Issues of diversity at workplace usually are usually matters associated with race, age, disabilities, job title, religion, nationality, culture, training, competency, personal habits, appearance and experience among other attributes. Most of the employers understand that diversity is a norm and they actually embrace it and even encourage it.

Most organizations have develop efficient ways of encouraging working relationships that embrace diversity among the people at the workplace because every firm now realizes that diversity adds some intrinsic or special value though there are special challenges that are associated with it as well. Some firms like General Electric (GE) have embraced diversity in a unique way and they do so by outsourcing.

Why Individual Differences are Important at Workplace

Diversity at workplace is an issue that businesses and other organizations are willing to accommodate as they spend money and time in trainings and education for their workers to ensure that they are strongly felt. Todays workplace is having greater diversity than ever (Greene & Kirton, 2009, p. 47).

The workforce is making strides to enhance quality and attain equality at workplace and this way, companies have to value diversity. The main reason being that there will be greater awareness, positive treatment and education of the individual differences (Greene & Kirton, 2009, p. 47). To aggressively tap the individual differences into a workplace for competitive advantage, recruitment efforts seek to attain diversity and employ amenable people to work in teams.

Diversity is an opportunity for better performance. As a matter of fact, those companies which are doing very well on the international market or on the domestic market seem to all have integrated the culture of diversity in their operations. Diversity is an opportunity; this is because of the fact that it brings new challenges to the firm, fresh ideas, competition, and a variety of thoughts, innovation, creativity and appreciation (Linda, 2006, p. 476). All these features can be very profitable if channelled in the correct manner.

Production for instance, the way production process is carried out in one country could be very different in the next hence having a multinational corporation which employs different nationalities can encourage exchange of ideas that are beneficial to the firm (Linda, 2006, p. 476).

The advantages of diversity can summed up in the following benefits; increased innovativeness due to the broader range of ideas and decision making skills (Greene & Kirton, 2009, p. 49). There is also improved client service as diversity enhances communication and understanding. There is also competitive organization management due to the fact that they value diversity hence will attract and retain many employment.

What are These Differences?

Diversity at workplace is a very wide topic and covers several aspects or characteristics of individual workers. Therefore when talking about diversity, we mean the differences in terms of age, language, sex or gender, ethnicity (culture) religious beliefs and family obligations (Greene & Kirton, 2009, p. 49). Diversity also deals with other means in which people could be different for instance in education level, job experience, life encounters, social personality, behaviour, talents and marital statuses and so on.

Workplace diversity can hence be described as the recognition of the value of these differences among individuals. And managing them adequately at the workplace (Linda, 2006, p. 476). It should be treated as strength to the company by creating environments that value people and accommodate the contribution from these people who are from different backgrounds, perceptions and experiences.

Diversity

Definition: diversity is the description of other human characteristics that are different from their own or the groups that individual belongs to. Diversity issues are related to elements like age, physical appearance, sexual orientation, nationality, competency, culture, individual habits, training and education, job position, race and gender (Linda, 2006, p. 477). The bias is therefore recognizing and valuing these differences among individuals.

Dimensions of Diversity

Diversity dimensions include factors like ethnicity physical qualities, race, age, education, income, religion and work experience among others previously mentioned. This therefore means the workplace diversity is a concern of the people and its focuses on the similarities or differences that various people bring to the organization in question (Linda, 2006, p. 477).

It can be broadly defined to include principle of affirmative action, equal opportunity job conditions. Dimensions that influence perspectives at work like education, marital status or professional experiences are also included in description of diversity (Linda, 2006, p. 479).

As diversity concept is regarded as including everyone, in many occasions diversity initiatives work to create workplaces that accommodate the various cultures at work. Diversity values concept bigger than just race or sex (Konrad et al, 2006, p. 81). This means it respects differences and the uniqueness of each person.

The relationship between diversity and workplace can be described in concepts of affirmative action and equal change employment for everyone (Konrad et al, 2006, p. 81). However its critical to understand that diversity is bigger than affirmative action and equality as traverses through to the work environment other than the employment practices.

Education employers and the workers on diversity are critical as it curbs discriminatory practices at work and enhances inclusiveness. Evidence from other companies has indicated that better management of diversity can increase responsiveness to the diverse organization layout and the ability to cope with the changes coming up and also the creativity (Konrad et al, 2006, p. 81).

Individual Perspectives

Perceptual Process: every individual has a different way of interpreting the environment and the people around. This is because they also act differently and react differently to the world as they seek to have their basic needs appreciated.

Their ideas of how people should behave or some process in an organization should be conducted is derived from the inner person as he/she responds to the environment (Konrad et al, 2006, p. 82). These thoughts have to be appreciated and even be included in decision making process considering that the products will be sold or at some point will interact with diverse populations.

The role of every individual in diversity concept is to embrace the different cultures among the workforce. Each person is therefore expected to accept and understand the concepts of managing diversity (Konrad et al, 2006, p. 83); recognize that diversity is an aspect of success from management; they should be self aware in terms of understanding prejudice, culture and biasness.

Individual should also be willing to challenge practices that are discriminatory or are barriers to certain groups of individuals. Its natural to need a set of guidelines as an approach to how people should behave so that one can know exactly what should be done. Unfortunately, with so many dimensions of diversity, this kind of recipe is hard to find or follow. Different strategy and advice can succeed in one case but not in another context.

Perspective and Managing Diversity

This is acknowledgement of the differences that people have and appreciating these differences is being precious. This way, good management practices are enhanced and discrimination is prevented (Konrad et al, 2006, p. 85). In management of diversity, polices, practices and mannerism of thought regarding culture are assessed as they have different impact on different groups. However, there has been a golden rule that you treat people the way you expect to be treated (Linda, 2006, p. 479).

On the other hand, it is also important to note that it is very difficult to say hallo to everyone at workplace or other such things. Individual perspective is very critical in this case (Konrad et al, 2006, p. 89). Though people could be sharing similar values like respect for others and equal appreciation, in diversity, this is shown by behaviour or various individuals.

Managing diversity hence concentrates on optimizing the ability of all employees so as to contribute to the objectives of the organization (Greene & Kirton, 2009, p. 57). In short, managing diversity is ensuring that all people are included and their differences acknowledged.

Summary

Diversity at workplace as a concept is inclusive of every employee and manager. In many ways, diversity is set to avoid discrimination of any sort. Diversity is a way of learning from others who have different characteristics and practises. This helps to build respect for everyone and dignity (Konrad et al, 2006, p. 86). Both employers and workers need to work efficiently in the diverse environments that the world present (Konrad et al, 2006, p. 78).

Good management in diversity can help in building an organizations tenacity to deal with change, respond to cultural differences and meet the expectations of their clients. Workplace principles like diversity are critical to success of an organization and its assists in creating stronger relationships between organization and the communities, increase the workers contribution to the company and enhance quality of their products (Linda, 2006, p. 479).

Reference List

Greene, A & Kirton, G. 2009. Diversity Management in the UK  Organizational and Stakeholder Experiences. Abingdon: Routledge

Konrad, A., Prasad, P., & Pringle, J. 2006. Handbook of workplace diversity; London, SAGE Publishers

Linda, B.B. 2006. Understanding and Managing Diversity: Readings, Cases, and Exercises, third edition, Equal Opportunities International, Vol. 25 Issue: 6, pp. 476  479

Introduction

B2B marketing refers to a set up where goods and/or services are sold from one corporation to another while B2C is a case where commodities are sold from a business to the consumer. There exist deep running differences between these two forms of marketing, as much as they both involve selling commodities or services.

Business-to-Business Marketing

When one is marketing in a business-to-business set up, they usually lay emphasis on the logic of the commodity or service to be traded. There exist no personal sensations in the trading resolution. Knowledge and a clear understanding of the products and services to be traded is the most important thing. The marketer has to give information on how his goods/services are designed to save the buyer his/her time, money and other related assets.

Taking a measure of the monetary value of each and every business-to-business client and comparing it to those of B2C clients reveals that the former holds an appreciably larger value.

A majority of business-to-business commodities/services are bought by companies to be utilized in their own production activities, generating products/services to be put on the market.

The marketing and buying process in a business-to-business transaction is normally much longer as compared to that of a business-to-consumer. It also involves many people. The buying cycle takes a few to several months in a B2B with several people influencing the process. In a B2C, it is up to the end user to decide what he or she wants and his/her appropriate moment to get it.

The selling procedure in the case of a B2B is significantly different than in end user markets. Business-to-business sales are set apart by well-paid marketplace sales staff. These include distributors and trade associates or independent ambassadors who not only get involved in the selling but in the completion of the commodity or service.

The cost of a sale has to come into comparison when talking of B2B and B2C marketing. Due to the selling process being longer and involving many players, the cost of a B2B sale is normally higher as compared to that of a B2C. Statistics reveal that standard sales call expenses now range from three hundred and fifty to four hundred dollars. Several calls have to be made in addition to other marketing costs.

Business-to-Consumer Marketing

In instances where one markets a commodity/service to a consumer, emphasis is laid on the advantages associated with the good/service. The explanation behind this is that the verdict to be made is more emotional. The interest is usually on how one is going to benefit in the end.

End users of products/services require a wide range of distribution channels for utmost expediency. On the contrary, this is not the case with a business-to-business situation where mostly, if not at all times, there is a direct link between the two trading parties.

Roughly any business-to-consumer commodity or service can also be a business-to-business good/service. For instance, a toilet paper is usual business-to-consumer good but can also be categorized as a business-to-business commodity when purchased in larger capacities by hotels/restaurants for their guestrooms. On the other hand, hardly will a person purchase an excavator for personal use.

End user markets are gauged in the figure of millions while, on the other hand, just a few business-to-business companies have client bases going up to thousands.

Business-to-business advertising

This form of advertising is vital and whoever carries it out needs to put to mind given requirements, most of which bear similarities to B2C advertising. One of the points to note is that as much as information is important it does not completely surpass emotion. It is actually the job of the advertisement to facilitate the sale.

The marketer/seller needs to first and foremost show that he or she has an understanding of the challenging world in which his/her potential clients exist. From there, they will possibly listen. People actually care less, if not at all, how much you know until they have an idea as to how much you care.

Creativity is just as important as in any other form of advertising. There is nothing actually wrong with making this form of marketing a bit tasteful.

It is also important to bear in mind that it is actually people who buy things and not companies. It may require that a committee has to approve any purchase, but at the end of the day these committees are composed of people.

Business-to-business branding

Business-to-business branding makes much sense, with the fact that enterprises mostly use logical decisions in the purchase of commodities and/or services notwithstanding. Superior branding is not just about getting people/corporations into unfounded buying, it is about giving information on the gains and worth that a given commodity/service gives to users.

Branding is not only a consumer goods thing. This was effectively demonstrated by IBM when it effectively utilized the power of branding by laying emphasis on the value it availed to its clients and making the purchasing practice uncomplicated.

The company actually created eServers when it recognized that its alpha numerical commodity naming system confounded clients and thus ended up putting millions of marketing dollars to waste. Simplifying its authoritative business computer offerings and rebranding them as eServers made sure that clients understood them with ease.

Background to the study

Company profile

Virgin Mobile Australia (VMA) is a private limited company which operates within the Australian telecommunication industry. Its headquarters are located in Sydney. The firm was founded in 2000 and has a human resource base of 400 employees according to 2008 statistics.

As a result of acquisition by Optus, VMA operates as a subsidiary of Optus. Optus owns 74.15% of VMA limited. Through the acquisition, Optus attained the right to deal with Virgin Mobile brands within Australia. The license is applicable for 15 years since the acquisition in 2006. The license is not limited to dealing with Virgin Mobile brands only (Bergholcs, 2006, para. 1-5).

In its operation VMA has incorporated the concept of Mobile Virtual Network Operator (MVNO). This was attained as a result of utilizing Sing Tel Optus (STO) network. Despite the alliance, the firm owns a billing system in addition to a number of value added services and prepaid platforms.

In its operation, VMAs main focus is provision of a number of services such as mobile and home broadband within Australia. In addition, the firms management team has also incorporated the concept of customer focus. As a result, the entire firms management team ensures that its operations result into customers attaining value for their money.

In order to attain this, the firm has formulated an effective mission statement which entails transformation of the mobile phone industry in Australia. This is by ensuring that its operations do not compromise the intended quality of service. The firms management team is also committed at ensuring that the firm provides fair and simple deals. The firm has adopted a strong brand strategy. The strategy entails treating its customers as member of the firm. This has played a significant role in instilling customer confidence.

Aim

The aim of the report is to identify and evaluate marketing opportunities with specific reference to Virgin Mobile Australia.

Scope

A number of issues are considered in the report. VMA marketing strategies and their impacts on customer base are evaluated. In addition, the firms post sale services, products and services are also identified and analyzed. Some of the marketing strategies which VMA should consider are outlined. In addition, the necessary monitoring and resource requirement are discussed. Finally a recommendation and a set of recommendations are outlined.

Marketing strategies used by VMA

Marketing strategy is a vital consideration in the success of a firm. It entails a firm selecting a target market which it commits itself to satisfy via provision of products and services. This is achieved through incorporation of a marketing mix which includes price, promotion, distribution and the product (Kurtz, MacKenzie & Snow, 2009, p.55). In order to attain its goal of increasing its business and customer base, the VMA has adopted a number of marketing strategies. Some of the current marketing strategies are outlined below.

Post sale services offered by VMA

Offering post sale services is one of the ways through which a firm can develop customer loyalty. In addition, post sale services are vital in differentiating the quality of a firms services from those of its competitor.

Dormann and Zijlstra (2004, p. 306) are of the opinion that there is a high probability of customers being more loyal to products which are associated with other services even after closing the sale. According to Dormann and Zijlstra (2004, p.307) post sale services also contribute to an increment in the level of customer satisfaction. It is a requirement for firms operating within the Information Technology (IT).

In its operation, VMA has instituted a call centre. Dormann and Zijlstra (2004, p.307) assert that call centers are also cost effective in ensuring that the firm delivers quality service to its customers. This arises from the fact that it creates a contact point between the firm and its customers thus addressing their problems in a more responsive manner.

In addition, the firm has a technical service center whose role is to provide technical support to its customers. Institution of the technical service centre arose from the fact that most customers are not conversant with technology. Therefore, the firms management team considered it wise to offer technical support in an effort to ensure that the customers receive value for their money via successful utilization of their telecommunication devices. The technical service center as one of the post sale services helps the customer to attain operational efficiency.

As a part of its post sale services, VMA has incorporated the concept of Customer Relationship Management. The core objective of this decision is to create a relationship with its customers by tracking various customer issues. In order to attain this, VMA has integrated the CRM software in 2008 via utilization of the RightNow SaaS software. The software will enable the firm to track and manage all the customers calls and emails. Through the software, the firm has been able to develop a database from which it is possible to obtain customers history

(ComputerWorld, 2008, para. 2-5). As a part of post sale service, CRM helps a firm in sustaining brand loyalty.

Virgin Mobile Australias current products

VMA has incorporated the concept of product diversification in an effort to appeal to a wide range of customers. The table below gives an illustration of the various products and services that the firm is currently offering and their respective price.

Promotion strategy

In order for a firm to succeed in its target market, it is paramount for the firms management team to devise a comprehensive promotional strategy (Story, 2006). There are a number of ways through which a firm can create market awareness for its products and services. Some of these include sales promotion, advertising, publicity, public relations and personal selling (Harper, p.108).

All these components form the promotional mix. In an effort to increase consumption of its products, VMAs management team has instituted a comprehensive promotion strategy.

Sales promotion and price discounts

One of the ways through which the firm creates awareness is via sales promotion. VMA offers its customers incentives in an effort to influence their consumption pattern through integration of other VMAs products in their consumption pattern. Price discounts are issued to Virgin Credit customers with regard to its various mobile phone services.

Contact points

To ensure that it creates effective market awareness, VMA has established a number of customer contact points through which it interacts with the customers. This has contributed towards the firm developing its brand value. In addition, the contact points have also enhanced a strong relationship between the firm and its customers (Dahlen, Lange & Smith, p.107).

Direct and online marketing

In its sales promotion strategy, the firm has incorporated direct marketing. This is evident in the fact that the firm uses direct mails in offering the discount to its customers. In an effort to increase its customer base, VMA has incorporated the concept of online marketing.

This has been implemented vial integration of Affinum marketing software which is owned by UNICA. The core objective of incorporating the software is to enhance the process of direct customer marketing. This has played a significant role in enabling the firm to attain its objective of being customer focused (Unica. 2006, para. 1-3).

Advertising campaigns

VMA has incorporated advertising campaigns as one of the major ways to promote its products. Most of the campaigns which the firm has held are very innovative. Most of these campaigns are conducted via the television. Some of the most innovative VMAs campaigns include Warren Campaign, 5c campaign, Flickr advertising issue and Enjoy Our Rates Responsibility (EORR) campaign (Media Man, 2010, para. 7).

Corporate sponsorship

The firm also participates in corporate sponsorship such as major music festivals such as the Australian V Festival.

Distribution strategy

Considering the nature of its products and services, VMAs management team has appreciated the fact that coverage is paramount. This arises from the fact that it is one of the factors which consumers consider in deciding the wireless broadband or mobile service provider to use.

In order to ensure that its products and services have a wide coverage, VMA has developed a link with Optus network which has a strong network across Australia. By linking with Optus, VMA has been able to attain a relatively high competitive advantage since a wide range of customers can be able to consume the firms products and services.

In line with its customer-focus objective, VMA provides other products and services. Some of these include multimedia messaging, short messaging service, international calls, global roaming, voicemail, Java games and ringtones. VMA also deals with post and prepaid mobile phones, phone-on-us plan, cap plan. In addition, the firm has developed an online prepaid product referred to as Bean Counter The firm launched the 3G service which enabled it to offer a number of services. These include

• Email
• Data services
• Mobile web browsing
• Video calling

The firm also deals with products and services belonging to various firms. For example, some of the products which the firm deals with include Apple iPhones.

Marketing strategies that VMA should consider

In an effort to increase its business and customer base, VMA management team should consider implementing the following marketing strategies.

Monitoring the success of the strategy

In order to determine whether the above strategies are successful, the firms marketing department will undertake continuous market research. The consumers and the firms competitors will be considered as the main market research variables. In order to determine the extent to which the brand connotation has impacted individuals in their consumption patterns, the firm will evaluate their response regarding the brands tagline.

This will help the management team to determine whether the adopted brand connotation has an effect in the consumers personality and culture. Similarly, the success of niche marketing strategy will be monitored using the same strategy. In order to effectively monitor the success of the new product development strategy, the firm will make use of the customer relationship management software.

The customers will be requested to rate the firms products in comparison with those of the competitors. The rating criterion will be based on various aspects such as practicability of the product and value received.

Resource management and necessary changes

In their quest to identify and evaluate marketing opportunities, a considerable amount of resources are required. Resources are also required in the process of implement the proposed marketing strategies so as to effectively exploit the market opportunities.

Therefore, a firms management team should evaluate its strength and weaknesses in reference to the available opportunities (Kurtz, MacKenzie & Snow, 2009, p.55). In order to implement the above marketing strategies, VMA should conduct a comprehensive market research. The entire market research should be focused at the consumer.

Considering the competitive nature of the telecommunication industry, a high degree of expertise is required in conducting the research. This will ensure that all the market variables are considered. For example, VMAs management team should formulate the most effective way of understanding its competitors operations.

This will enable the firm to understand its competitors strengths and weaknesses. By understanding the competitors weaknesses, it will be possible for VMA management team to capitalize on them thus enhancing its competitive edge.

In its quest to attain its business base and customer base, the firms management team will be required to improve its research and development capability. To attain this, the firms management team should train its research and development team so as to equip them with skills necessary to scan the environment effectively.

This will contribute towards the firm identifying viable market opportunities. Training will also contribute towards the market research team understanding consumer requirements effectively. In addition, training will contribute towards the firm enhancing the employees creativity and innovative capacity.

The resultant effect is that the firm will be able to undertake niche marketing more effectively. This arises from the fact that training will enable the research team identify customer needs more effectively. As a result, it will be possible for the firms research and development team to develop a product which meets the market demand. Through training, the firms management team will be able to differentiate the new product more effectively.

This will limit the probability of the competitors mimicking the new product. This will increase the probability of the new product penetrating the market. One of the ways through which the firm can conduct employee training is by outsourcing the service from experienced consumer research agencies.

VMA will be required to undertake a number of changes in its operation upon implementing these marketing strategies. For example, as a result of new product development, VMA will be required to undertake a market awareness campaign. One of the ways through which this can be attained is via adoption of integrated marketing communication.

For example, VMA should consider incorporating social networks such as facebook, twitter, YouTube and MySpace. Brymer (2008, p.29), is of the opinion that social networks are increasingly being adopted by firms in their marketing strategies. Social network will enable the firm to create sufficient publicity of the new product.

Conclusion

Identification and evaluation of market opportunities is one of the ways through which a firm can develop a high competitive advantage. Upon identification of market opportunity, the firm should develop marketing strategies to exploit the opportunity. In its operation, VMA has been successfully incorporated various marketing strategies. This has enabled the firm to market its products in the Australian market despite volatile nature of the market.

Recommendations

In order for VMA to succeed upon implementing the aforementioned strategies, the management team should consider the following.

• Continuous consumer and competitor research should be conducted to determine the changes in the market. This will enable the firm to undertake effective innovations to the marketing strategies.
• Effective scanning of the environment should be conducted to identify business opportunities which the firm can exploit. The identified opportunity should be evaluated to determine its feasibility.

Reference List

Brymer, C. 2008. The nature of marketing: marketing to the swarm as well as the herd. London: Palgrave MacMillan.

ComputerWorld. 2008. Virgin Mobile Australia calls on RightNow for Saas. Web.

Dahlen, M., Lange, F. & Smith, T. 2010. Marketing communications: a brand narrative approach. Chicago: John Wiley and Sons.

Dormann, C. & Zijlstra, F. 2004. Call centre work: smile by wire: The European journal of work and organizational psychology. Vol. 12, issue 4. London: Psychology Press. Mediaman. 2010. Virgin mobile Australia.( Online). Web.

Kurtz, D., MacKenzie, H. & Snow, K. 2009.Contemporary marketing. New York: Cengage Learning.

Penrose, E. & Pitles, C. 2009. The theoryof the growth of the firm. Oxford: Oxford University Press.

Story, J. 2006. Segmenting customer brand relations: beyond the personal relationship metaphor. Journal of Consumer Marketing. London: Emarld Group Publishing.

Unica. 2006. Unica to make difference at Virgin Mobile Australia. Web.

(A) Threat of New Entrants: Market segments with high barriers of entry and exit creates challenges for existing firms. An exit would be difficult and the companies would remain in business. For example, it would be difficult to start a grocery market because existing firms use product differentiation and other aggressive marketing strategies to improve their sales.

The threats of new entrants are encouraged by the capital requirements of the investment, the economics of scale and the ability to switch products, poor brand techniques and poor product differentiation. If the barrier of entry and exit are low, new companies are formed easily and this would reduce the profit of similar products. When the barrier of entry is low and the barrier of exit high, the firms would operate at different speeds.

Product Differentiation: High barriers will help the company utilize market strategies to gain 5% of its customers in the grocery market. The company will reduce the cost of transportation utilized by the customers thus, using package differentiation to increase sales. For example, Fresh Direct would remain in business if it delivers refrigerated products such as beef, milk, and chicken using home delivery vans.

Another way of establishing product differentiation is quality management. Fresh Direct has a board online system that manages its order catalogue, creating a simple but unique access to online customers.

The standards of packaged foods are high and its delivery vans uses quality control procedures to verify the safety of its fresh products. Direct business transaction encourages home delivery and reduces middlemen transactions thus, controlling the price and strategy of operations. Product identity encourages customers desire to maintain a particular supplier.

Capital Requirement: High barriers would require new firms to invest huge capital. This will be used for operational cost, product delivery, product preservation and maintenance. This will be a difficult task and will limit new entry.

Switching Costs: Segments with low barriers would improve the marketing strategy of similar markets. Each firm would use an aggressive marketing strategy to maintain its customers strength. Consumers may switch from one shop to another without much difficulty. The consumer may decide to shop directly from a supermarket thus, reducing his or her online activities.

Customers would maintain his or her present supplier if the cost of switching is expensive. The location of the suppliers affects this segment. When suppliers are concentrated in one location, the customer may switch without difficulty. When the suppliers are scattered in different locations, the customer is forced to buy from a particular store. The customer will consider the cost of moving from his or her location to find another supplier.

Access to Distribution Channels: The easy flow of products would influence the sale of particular products. The availability of delivery trucks, access roads, and a valid address gives the company a competitive advantage over similar competitors. Customers flood a particular market when the routes to the market are simple and accessible.

This reduces the difficulty in locating the market and time wasting. For example, Fresh Direct can increase sales by creating more distribution channels for its direct sales. The online deliveries would require adequate trucks to convey customers goods. The easy access to its products would differentiate the company from similar firms.

(B) Threat of Substitutes: Products substitute creates challenges for existing firms. Manufactured goods are affected by this factor. Customers are willing to switch from one product to another due to price or quality. Companies with huge sales may lower their prices to attract customers, thus, creating a loss for close rivals. For example, Fresh Direct provides home delivery of frozen foods but may face a challenge from local show owners in the same region.

In the food industry, it can be seen as a product-by-product or the replacement of the required goods. Customers would easily walk into the local store to buy fresh foods at cheaper prices. When these products are sold at different locations and at cheaper prices, it would be easier than making online orders. To tackle this challenge, Fresh Direct must add quality services and innovations to its delivery services and safety of the products.

(C) Bargaining Power to the Buyer: Fresh Direct website provides customers with a variety of fresh foods updated at regular intervals. The strategy would promote customers satisfaction and meet customers requirement. It will reduce transportation cost of the customer.

A customer will consider the cost of a product, its quality and availability as variables for bargaining power. Using these variables to satisfy the customer would sustain the business and increase product sales. This strategy has influenced the establishment of home delivery markets in America. A busy job schedule has forced many parents to use online home deliveries to their advantage. Fresh Direct will remain in business because of the busy schedules of American workers.

(D) Bargaining Power of Suppliers: The strength of the supplier is his or her ability to buy products directly from the producer. The location of the suppliers determines his or her bargaining power. This variable affects the market segment of existing firms. The relationship between vendors and manufactures affects the business transaction of the supplier. Product retailers may trade directly with the manufacture thereby reducing the demand of major suppliers.

For example, Fresh Direct does not produce fresh foods; it relies on the producers to stay in the market. The demand of these products is open to a different supplier and business transactions become easier when the producers and suppliers have good business relations. This factor influences the easy switch from one supplier.

1. The suppliers are concentrated in a particular location.

2. The customers are powerful.

3. Switch from one supplier is expensive.

4. Integration poses treat to the supplier

The bargaining power of the supplier is weak because:

1. The produce is standardized

2. The buyers are concentrated in a particular location

3. The bargaining power of the customer is weak

(E) Bargaining Power of Competitors: The food industry is a large market segment. Many factors influence the bargaining power of competitors. To achieve product differentiation, a business firm would utilize various market strategies to differentiate its products. This high-level interaction between market variables increases the competitiveness of business markets. Fresh food companies would strive to maintain their high standards in quality and consumers satisfaction.

This strategy would influence the introduction of promotions and incentives to maintain its sales. For example, Fresh Direct utilizes an aggressive market strategy to promote its products. Home deliveries are properly managed to meet customers requirements. Similar markets such as Trader Joe and Fairway will struggle to perform better than Fresh Direct.

Introduction

This is a marketing plan for the companys new product  an intelligent refrigerator with a state-of-the-art digital application. We have baptized it intelligent ref.

This is a revolutionary product  a digitally functional refrigerator. It is the first of its kind in the entire world, a refrigerator which can function as a personal computer, cellular phone, and television. It has a built-in central processing unit in which the owner can communicate via the internet; it can act as a cell phone, and it is remote controlled. Moreover, it can also act as a central command to all the other appliances in the household where the refrigerator is located.

This is the scenario intelligent ref can create.

Its quiet in the house. No human beings have roamed around in the past several hours, but there are the appliances, and the area is under control by a new kind of robot  intelligent ref. The telephone rings: the phone is not inside the refrigerator, it is outside the refrigerator, somewhere inside the house.

But intelligent ref can communicate with it via remote, like an answering device. It hangs up. The door of the ref has an LCD monitor, which also performs the function of a cable television. When intelligent ref notices the seeming peace inside, it feels some music must be played. And so the mellow voice of Paul Anka can be heard inside the house, which is situated in the middle of a bustling American city.

Now, heres the catch. Thousands of miles away, a conference of executives is being held. The situation has become quite tense as the talk is about the conglomeration of several international organizations. A young and pretty executive is in the middle of the long conference table. She stands up and withdraws himself from the conference, takes her cell phone and calls up.

Hello there sweety, is everything okay?

Everythings fine, as fine as the way you left me, darling! Intelligent refs voice reverberates through the living room, but it sounds like that of a teen. Intelligent is a multiple personality robot: it can act as confidante, security assistant, and many others as it is well equipped with sensors and CCTVs inside and outside the residence remotely connected to it, no matter how far is the owner, even thousands of miles conducting a business conference. Intelligent ref is the ref of the digital world.

Its time for a revolution, a revolution in the high-tech world of humans. Never before has this been schemed since the invention of the first refrigerator. Now is the time to introduce to the world this appliance which has been the result of years of study and research.

American households need low-cost refrigerators. Government data released states that a refrigerator appliance is the highest ranking necessity in an ordinary American household regardless of income level. The refrigerator is highest compared to other appliances, followed by cooking appliances, then by colored televisions. (Energy Information Administration and Residential Energy Consumption Survey, cited in eia.doe.gov, 2004)

Timely and ingenuous are the terms we can describe to our planners and engineers in building intelligeng ref. What is more surprising is that it is affordable by the common American household. Intelligent ref comes in various colors  green, red, yellow, and black. There are also custombuilt ones, or those made according to specifications by the customer. We have an intelligent ref for the middle income household, and for the very rich.

This latter classification has been the result of our planners study of what American housewives and consumers need and want. Indeed, the rich dont care much of what they place inside their refs; its the not-so rich who are concerned of the contents of their refs. However, regardless of class, American households are concerned of quantity and quality inside their refs. This company is committed to provide every household the low-cost refrigerator that can boast of quality, durability and style.

Marketing Strategy

Jobber and Lancaster (2003) highlight the process of the marketing plan.

SOURCE: Adapted from Jobber and Lancaster (2003). Selling and Sales Management. Sixth Edition, Pearson Education Limited 2003.

The plan involves setting up objectives, then determining or preparing the steps and activities for fulfill the objectives, organizing for action, implement the steps and actions, until it goes down to measuring the results, re-evaluating and controlling. The whole process is repeated and repeated.

Marketing process

Target market

Small appliances such as television, air-conditioning units/systems, washing machines and spin driers, rice cooker, gas stoves/ranges, etc. are common items in ordinary American households. Refrigerators and air-conditioning units however are our appliance specialties.

The target segment for the companys products is the American household composed of housewives, bachelors and single moms, students, and other independent-minded Americans who are living on their own. The market target use refrigerators like they use any other ordinary appliance at home. The busy executive can make use of intelligent ref like a constant companion

Marketing objectives

Product  To provide low-cost small appliances to ordinary American households across the country. Intelligent ref is the product of the century and a household name;

Distribution  To provide a systematic but effective distribution system throughout the different branches across states.

Price  To provide customers affordable and intelligent appliances at low, low prices, but appliances that answer to the call of the digital world.

Promotion  To facilitate an effective promotional campaign that will highlight the company as a household name in terms of low cost but quality-oriented refrigerators with digital applications like intelligent ref.

Weakness

Electronics need new raw-material suppliers to support the small appliance line. There are some difficulties in finding suppliers along this line of products; finding suppliers could prove a hindrance to success. With the emergence of China as supplier/producer of low-cost electronic materials, the company may have to outsource the materials. This is one of the problems of the industry and even in other products  finding the appropriate and efficient suppliers that can give low-cost materials. Since our product, intelligent ref, is new to the market, we will find competitive forces improving their products to compete with intelligent ref.

Current or potential opportunities

Production of small appliances has always been a challenge to the company with our team of expert engineers and planners. We have experienced engineers and designers who have conducted research and intensive study in the production of state-of-the-art refrigerators. We can have the opportunity of leading the market of lowest-cost appliances.

We have a small front-end investment but a low debt-to-equity ratio and a high-credit rating that can give us the opportunity to make it big by adding more capital.

Environmental forces continue to loom in the horizon. Competitors will look for ways not to allow us to make the edge. The global recession will haunt our entry into the appliance industry market no matter what low-cost, quality product we can offer.

Product

Our goal is to satisfy the customer in the context of our product. We have described the unique features of our product intelligent ref, and we believe this is one of a kind that should revolutionize the appliance industry.

Jobber and Lancaster (2003, p. 256) state that Marketing must aim to satisfy customers. Therefore, close monitoring with the product and constant consultation with customers will be one of the strategies in introducing the product to the public.

Distribution

Our own staff to provide effective distribution system. Supply chain should be aided with the latest software, tracing our own products from the moment they leave the warehouse up to the time they reach the stores and the customers.

Price

Provide customer service warranty, delivery and credit. As the primary objective is to deliver appliances at affordable prices, the original price of the product shall be maintained. Since there is more supply in the market, there seems to be less demand. However this statement needs more proof or empirical study. What is focused here is the price. The price is negotiable because the suppliers of the product are competing to get customers attention.

The price customers are prepared to pay determines the level of demand for a product or service which affects the prosperity of the marketing company and the companys competitive position in the market place. Price levels have far reaching implications for the national economy. They influence wages, interest rates and government policy. (Lancaster and Reynolds, 2002, p. 28)

Price is not the only factor that affects demand, although in some situations companies have achieved similar levels of service, product quality and promotional support and it has become the major element of product differentiation. However, such companies have usually made major marketing efforts to reach such a state of similarity.

Price is a key element in the marketing mix and thus relates directly to the generation of total revenue. The following equation is an important one for the entire organization:

Profits = Total Revenues  Total Costs

Profits = (Price x Quantities Sold)  Total Costs

We have the different types of selling, and capitalysing on this particular aspect of marketing, there are inside order-takers, delivery salespeople, and outside order-takers, among others.

The inside order-takers  the typical inside order-taker is the retail sales assistant wherein the customer has full freedom to choose products without the presence of a salesperson. The sales assistants task is purely transactional  receiving payment and passing over the goods. Another form of inside order-taker is the telermarketing, sales team who support field sales by taking customers orders over the telephone. (Jobber and Lancaster, 2003, p. 5)

Promotion

Promotion and adverts can be done through the internet. Other additional strategies involve infomercials and multi-media advertising. The internet is a fast-growing and effective communication that has been used by more and more businesses and organizations, not to mention the multitude of people, young and old, who patronize and log on everyday and every minute of the day.

Action plan

Intelligent ref will be featured in commercials and through the internet. This is the first step in the process  introducing the product to the general public. The population composed of the rich and famous will be the next target. We can apply discounts, employ dealers, and advertise on the national level.

Personal selling can be implemented for a long term survival and the sales people can identify customer needs and wants. They are the companys liaison officers, and they make contact with the outside world. These strategies can be achieved within the three-year period. Managers and supervisors who are in the field can do the monitoring procedures. Complaints and suggestions can be endorsed through the companys website which will have the weblog portion for the customers and employees.

A special team will monitor the effectiveness of the plan. This special team will be composed of managers and staff who have displayed zeal and enthusiasm for the advancement of the company. Action plan for the team will include a round-the-clock supervision, somebody to man the website and its complaints department, and a continuous monitoring of the output of the companys products.

The 4Ps is a marketing strategy which refers to product, price, place, promotion; a fifth can be added, which is people.

All marketing mix variables could be categorized into just two groups:

1. The Offering (product, packaging, service, brand and price), and
2. The Methods/Tools (distribution channels, personal selling, advertising and sales promotion

Marketing Strategy indicates the specific markets towards which activities are to be targeted and the types of competitive advantages that are to be developed and exploited. The strategy requires clear objectives and a focus in line with an organizations corporate goals; the right customers must be targeted more effectively than they are by its competitors, and associated marketing mixes must be developed into marketing programmes that successfully implement the marketing strategy.

A marketing strategy can be likened to a recipe. Lancaster and Reynolds (2002, p. 14) state that The ingredients are the marketing functions. If a minor ingredient is miscalculated or forgotten, a recipe may not be successful. The same is true with marketing strategy where all functional ingredients depend on each other for success.

A marketing opportunity arises when the right combination of circumstances occurs at the right time to allow an organization to take action towards reaching a target market. An opportunity provides favourable chance or opening for the firm to generate sales from identifiable markets (Jobber and Lancaster, 2003, p. 656).

Marketers indirectly facilitate exchanges by focusing information about company activities and products on interest groups (such as environmental and consumer groups), current and potential investors, regulatory agencies and society in general.

Some marketers use cause related marketing, which links the purchase of their products to philanthropic efforts for a particular cause. Cause related marketing often helps a marketer boost sales and generate goodwill through contributions to causes that members of its target markets want to support.

Conclusion

The strategy will focus on intelligent ref, the refrigerator of the twenty-first century. The marketing mix variables, marketing strategies and tools will be emphasized on the introduction of intelligent ref to the American public.

For a firm to be marketing orientated requires that a number of changes take place in organization, in practices and in attitudes. Implementing the marketing concept requires more than paying lip service to the ideas inherent in the concept.

References

Eia.doe.gov (2004). The Effect of Income on Appliances in U.S. Households. Available from: https://www.eia.gov/consumption/residential/

Jobber, D. and Lancaster, G. (2003). Selling and Sales Management, Sixth Edition, England: Pearson Education Limited.

Jobber, D. and Lancaster, G. (2003). Selling and Sales Management, Sixth Edition. Web.

Lancaster, G. and Reynolds, P. (2002). Marketing made simple. Great Britain: Butterworth-Heinemann Publications. p. 28.

Customer value refers to the disparity between what a consumer gets out of a product and what is given out in exchange. It is the net benefit realized by the customer from a service or product in relation to its price. Businesses usually analyze customer value to establish how best they serve their buyers.

The actual usage of the services and products by the customer to increase their value also matter. The aspect is widely used to determine competitive prices for their products. The point leads to customer proposition, which is the promise, to customer from the venders. Relative performance is an aspect which identifies the satisfaction the customer gets from the product in relation to what other competitors offer. The three stores should, therefore, be distinct in order to give value to their customers.

These stores aim at satisfying the needs of their customers and retaining them. There is no clear distinction among the three stores, and there is a buffer zone between any two. Whole foods store stocks foods that are unrefined and unprocessed, or slight processing or refining is done before consumption. The stocks do not contain any additives.

They include vegetables, fruits, fish, fresh meat, poultry, and milk. This store aims at providing customers with the foods listed above. The value for money the customers receive is fresh and unprocessed products. Some customers do not need the added ingredients thus prefer whole foods for a healthy diet. Small farm fruit and vegetable store aims at supplying the customers with fresh fruits nag vegetables. Customers get the value for their money when they receive fresh fruits and vegetables from the farm.

Super stop and shop usually offer a variety of food and non- food products to its customer. The stock is usually large, and customers have a range of products to choose. This enables buyers to take what they like most to get the best value for their money. The stores should be distinct in their products and operation. It is cumbersome to distinguish the stores because they sell the same products. A clear distinction will enable customers to have a clear mind where to go for the product.

Whole foods stores are specialized in supplying unrefined and unprocessed foods. Some foods are slightly refined and processed. The products include vegetables, fruits, fish, fresh meat, poultry, milk and whole grain. The stores aim at maintaining the fresh conditions of products. Some stores use food preservation methods to keep the products fresh for several days. Products like chicken are kept alive, or a few may be slaughtered.

The owners usually keep the stock quantity relative to customer base to ensure the products do not get wasted because some are perishable. These stores target almost all classes of people. They exist in small towns to large cities, so they can attract all people. The stores in large cities usually have a wide range of products than those operating in small towns and the rural areas.

Some whole foods stores offer full grocery range. Customers get a range of product they need in one stall. Best whole food stockiest provide extra services to customers to increase customer satisfaction. These services include cutting the vegetables like cabbages, washing the fruits thus becoming ready for consumption.

The customer feels the value for the sacrifice when such services are offered. Whole-food stores usually operate during the day except for a few in major cities. Such stores range in size. Some operators place their product on the stalls under a shade while others stock in large secluded buildings.

Super stop and shop is a modernized store selling food and non  food products. Such stores run large grocery chains in large cities and towns. The products include fresh fruits and vegetables, processed food-staff like canned fruits and meat. Some non- food products like mineral water and medicine are also found in suck stores.

The super stop and shop stores are big and usually satisfy the needs of the customer. They offer varied services to consumers in terms of product and operation. This store is preferred by the high-class customers because they are found in large cities and mostly in the city centers. Ready to eat foods are available for customers in these stores thus saving them time. The products are usually placed in clean containers, and fresh state is maintained using fridge. Most stores in this cadre operate on a twenty four hour basis.

The small farm fruits and vegetable stores merchandise in fruits and vegetables. The business is usually small in size and trades, in naturally fresh farm products especially fruits and vegetables. Some sellers may include cereals in stock to increase their customers. This grocery finds a niche in a place far from large operators like whole foods and super stop and shop stores.

The stores offer their customers the value for their money. The products are fresher than those in the other stores. Consumers of these products experience life in them thus are not regretting the sacrifice they undergo. These stores are mainly found in the countryside to avoid competition. Thy trades close to people thus saving customers energy, time and other resources.