Category: Marketing

Introduction

For a long time, the Microsoft Company has had huge profit margins through employing the monopoly power it has to hold constant the prices of the companys software at all times regardless of the business situation. However, in these times of horrible downturn and ever-increasing competition, the CEO of the company is changing to a new approach. The CEO is bringing down the prices on various fronts (Forelle 1).

Pricing

According to Burrows (1), the Microsoft Company has come up with an idea of having profit margins that are lower among its businesses but raise the general revenues through effective utilization of the opportunities. This involves making an expansion of the companys share of its big purchases of software and bringing down the office software prices for the consumers, in the markets that are coming up to be in a position, to pay for the software and not carry out piracy.

In July this year, there was a demonstration in New Orleans of the new office 2010. Whereas Microsoft has expectations of most customers paying for this program just the same way they have been doing, versions that are not as powerful and are ad-supported will be available free on the web. Microsoft is as well charging a fee every month for online applications. The companys new Windows 7 PC operating system would go on the market for forty dollars less than the two hundred and forty the company charged when it launched the vista program in the year 2007. This is the biggest price reduction on a fresh version of windows within a long period of years.

All these initiatives by the Microsoft Company are an experiment that is risky in price elasticity. By bringing down the prices, Microsoft is hopeful of bringing up the sales of the products that have been there and at the same time penetrating the market with great speed with the new products.

Marketing Strategy

The Microsoft Company is coming up with different marketing strategies for them to win a competitive edge. It is doing this through differentiating its products, carrying out promotions, and identifying the target markets. For instance, according to Anonymous (Microsoft launches new suite products in Botswana, 1), Microsoft has launched new software products which include windows 7, windows server 2008 R2, and Microsoft Exchange server 2010. The Microsoft windows server 2008 R2 is the most current server operating system that is specially made up to assist small and medium enterprises to cut down costs on IT by providing all the requirements to assist the organization to be run most efficiently with the lowest possible investment in technology.

On the other hand, Microsoft Exchange server 2010 provides a large variety of tools to both medium and large business enterprises that enable them to control and secure all their inner and outer communications. The windows server 2008 R2 and Exchange server 2010 has been made up in such a way that they can still work well in conjunction with the current Microsoft products designed earlier. But the functioning of these products is said to be excellent when they are used in conjunction with Windows 7.

According to Burrows (5), Microsoft is carrying out promotion through reducing the price of office and making offers of free versions of Excel, Word among other programs to counter competition from its competitors such as goggle offering the same products at very low costs or offering for free. The company has put up several promotions for office and its effective price is one hundred dollars reduced from one hundred and fifty and even more down in some countries like India and Brazil (Burrows 5).

The Microsoft Company goes on to look for ways to counterbalance price reductions. It has a hope to make better by encouraging the users of Windows 7 to more often upgrade. Because the program CD will be obtained loaded with several versions, those people who buy the much cheaper starter edition can pay more easily at a later time to obtain premium features.

According to Forelle (1), Microsoft Company would ask the current users in Europe having Microsoft Internet Explorer as a default browser if they would want to install a different type. The available alternatives include Mozillas Firefox and Googles Chrome. Microsoft is reported to have said that it would share technical information with its competitors to allow their products to work better with a gamut of Microsoft software including, windows, the Exchange email system, and Office suite.

The possibilities of the success of Microsofts strategies

The strategies Microsoft is trying to employ show the potential for it to succeed despite some people showing pessimism. The changes are being pushed by the consumers who are in for bringing down the expenditure on technology (Worthen & Scheck 10). For instance, Hilztzik (1) expresses that not everyone has to upgrade his hardware to Microsofts word 2007 due to specialized needs because there are several alternatives to this Microsofts product. But this might not be true since this new product is a great improvement on the former products and might still get much more consumers since Microsoft is targeting all groups including small, medium, and large scale businesses.

According to Vascellaro (4), Goggle has come up with an operating system called Google Chrome OS designed to rival Microsofts Windows that already runs most of the computers in the world. The author notes that this might turn out to be a big risk and may interfere with the main business of Google which is, selling ads online. Therefore, this implies that the improvement made on Microsofts products will enable it to stand a better chance in the competition.

Works Cited

Anonymous. Microsoft launches new suit products in Botswana. Sunday Standard. 2009. Web.

Burrows, Peter. Microsofts Aggressive New Pricing Strategy. Business Week. New York. 51. 2009. Web.

Forelle, Charles. Microsoft Yields to EU On Browsers. Wall Street Journal (Eastern edition). New York, N.Y. B1. 2009. Web.

Hiltzik, Michael. Microsofts grip on users is being lost in the cloud. Los Angeles Times. Los Angeles, Calif. B1. 2009. Web.

Vascellaro, Jessica & Clark, Don. Google Targets Microsofts Turf. Wall Street Journal (Eastern edition). New York, N.Y. A1. 2009. Web.

Worthen, Ben & Scheck, Justin. Tech Giants Ramp Up Their Online Offerings. Wall Street Journal (Eastern edition). New York, N.Y. B1. (2009). Web.

Introduction

Cause-related marketing involves marketing efforts that have social and charitable causes and which are not based on donations as do corporate philanthropy. The strategy, which builds on the blend of the hybrid between public relations and product advertising, can be used to achieve positive impacts on customers buying behavior, which the company can count on during survival at current economic challenges. In the twenty-first century, companies are realizing the importance of assimilating the commitment and concern for a cause to be a major recipe of a firms business strategy rather than just working together with a non-profit firm. The potential for success in the cause-marketing as a strategy can be highlighted in once reported 66% and 61% consumers ability to switch brands in 1999 and 1993 respectively, with the acceptability for cause marketing being 74% and 66% respectively in the United States (Cone, n.d.).

With the market in the twenty-first century advancing in complexity and indifference in competing products such as credit cards, and the same products becoming too competitive, cause marketing may be used to create a progressive image that can provide a powerful marketing edge (Cause-related marketing, doing well by doing good, 1994). In addition, the customer has become more sensitive and discerning in the making of investment and the buying decision, with interest in transparency and accountability of the company operations making firms which may compel the organizations to comply in order to continue doing well compared to their rivals (Logan, 1997; qtd. in Verghese, 2009).

The government also has been said to have increased emphasis on collaborations with the corporate world through partnerships and alliances in order to provide social services and in its approach to social policy (McClure, 2000). There are also reports that this increasingly popular business strategy when companies contribute to charitable causes to improve brand, is not paid much attention to, in the widening literature relating economics of philanthropy (Andreoni, 2004; qtd. in Polishchuk & Firsov, n.d.). The views of corporate philanthropy were opposed by Friedman with an argument that corporations were supposed to put the obligations of the shareholders, law, and governmental regulations before corporate social obligations (1970).

There are many ways through which profit-making and charitable organizations can implement cause-related marketing, which can be tailored in the view of the current economic challenge to reap benefits. These ways include the following; the company can indulge in those donations that are purchase-triggered where it promises to contribute a particular percentage of the product price to a charitable cause, facilitating customer donations to the charity or themselves, promoting brand awareness through direct marketing in joint with a non-profit firm, using a charitable logo on the companys products and services, helping by sponsoring a particular program or event, through public relations where the company can publicize its strategic partnership with a non-profit organization, and advertising a particular cause it has aligned itself to (Saha, 2007).

Successes with the application of cause-related marketing have been documented. An example is Coca-Colas 1997 promotion that took part in the over 400 stores that are owned by Wal-mart where the company gave a 15% donation (in every case bought) to Mothers Against Drunk Driving. The companys sales increased to 490%. Another documented example is the case where usage of the American Express cards swelled to 28 percent with a 17% increase in new users after the companys 1983 decision of donating a penny towards the Statue of Libertys restoration on every transaction that cardholders make (Saha, 2007). This latter example was the pioneer of CRM and more reports indicate that the company gained a 45% increase of new credit applications and a 30% swell in use of its credit (Adkins, 1999; qtd. in Polishchuk & Firsov, n.d.). The above examples highlight just a few examples of the benefits that can result from the usage of cause-related marketing.

How a company can benefit

Companies are said to drive CRM profitability from price discrimination and unlocking the barriers for transaction costs in this market for charity according to Polishchuk & Firsov (n.d.). although the company can expand its market share by being involved in CRM, this does not generate additional profit. The CRM as a business strategy spreads because of rent earned by firms that pioneer it. As the participation in CRM by firms increases, there is an increase in the exploitation of the warm glow of the capacity of their customers leading to dissipation of profits (Vogel, 2005; qtd. in Polishchuk & Firsov, n.d.). The aforementioned authors posit that this could be the reason for the observation that those companies which are responsible (socially) in comparison to their competitors are not systematically worse-off, as well as an explanation to why empirical studies reveal no considerable positive relationship between corporate social responsibility (CSR) and corporate profits, as well as CRM (Vogel, 2005).

Global competition is becoming increasingly a reality that major companies need not put into consideration while marketing. While marketing is necessary to make sure that the company sells its product, the strategy of marketing determines the extent to which the company will market itself and its success. In this case, the company chooses to participate in cause-related marketing, and innovation of a strategy that is not only applicable but also in line with the business operations of the firm is very important. Goodwill (1999) posits that experts support the congruence of the mission of the non-profit organization and the product being promoted. A company that strategizes to utilize cause-related marketing can reap benefits among them community support because the company works for the benefit of the society, reinforce its mission statements because it can re-communicate corporate social responsibility of the firm to its various stakeholders, increased motivation and employee loyalty by rewarding their support to cause-related programs, reaching the niche markets through geographical outreach, market differentiation which can help the organization have a distinctive approach to brand advertisement, and attracting and retaining the customers.

In order to ensure that there is support for the cause-related marketing, careful and proper planning, implementation, and communication of it are important. After resolving to apply cause-related marketing as a strategy, the company needs to begin with the assessment and planning which involves the definition of its market targets, capacity, and support for the cause-related marketing. This is followed by a development of a cause-related marketing design that is aimed at meeting the aforementioned objectives. The company then implements the decision and ensures continued support for it, communication, advertisement, and proofing success through measurement (Saha, 2007).

Positive change in consumers buying behavior can be attributed to success in sales for commodities such as the reported cases of increase in sales of the American Express and Coca Cola after the launch of cause-related marketing strategies because the latter influences positively the customers buying behavior. A positive correlation between the customers buying behavior and cause-related marketing was also revealed in 80% of the participants of a study that was undertaken to examine the relationship between the two. The condition to be met for this scenario is that there should be no difference in the quality of the product offered according to Saha (2007). A 2000 Cone/Roper Executive Study found that cause-branding can help in retaining and hiring the best employees in a highly competitive marketplace (Cone, n.d.). The branding can also serve as a source of pride, morale, and loyalty by the employees, in addition to strengthening the internal corporate cultures.

The company can compensate for the decline in corporate philanthropy where there is a decline in contributions (Cause-related marketing, doing well by doing good, 1994). It has been reported that corporate charitable donations declined by almost 15% of the profit in the United States in 2001 alone (Porter, Kramer, 2002). US corporations contribution to the nations gross philanthropy was 5% while the individuals contribution was 75% of the total (Giving USA Foundation, 2005). Companies have been indicated to have a choice to make between meeting their perceived (by customers) standard of social responsibility so as not to lose customers to corporations that are more sensitive to social corporate responsibility, and to meet governmental expectations to continue enjoying the related benefits such as governmental contracts, avoiding tighter scrutiny and regulatory control. Companies are said to reach a compromise between profitable and social responsibility by resulting in strategic philanthropy which results in alignment of social and economic goals with the companies investing in social causes and getting back payment through positive externalities created by the efforts to support the social causes (Polishchuk & Firsov, n.d.).

Although it has been argued earlier on that companies should place the interests of stakeholders before those of social responsibilities (Porter and Kramer 2002), it has been synthesized that the critique can be invalidated under two conditions, namely, if companies can have comparative advantages in philanthropy over donors and if they are able to advance their economic objectives by being involved in charitable events according to Porter and Kramer (2002; qt. in Polishchuk & Firsov, n.d.).

How charitable organizations benefit

While the participation of a company in a social cause by placing its resources to better the society is not philanthropic because the funds attributed to the CRM can be viewed as a marketing partnership and not tax-deductible donations, charitable organizations can utilize the partnership with these firms to better participate in the betterment of the society and advance in the course they have committed to (Entrepreneurs Foundation, n.d.). Charitable organizations work to improve the livelihoods of people or empower them through financial and material assistance, advice, education and training programs, and the creation of awareness among other channels. When charitable organizations join with firms in a certain program, they can benefit by having an expanded reach in places they would not have accessed because they have added finances.

The organizations are able also to serve more people with their products or services. A charitable organization can also advance its objectives by participating in a joint program with a profitable organization. This can occur if it links its mission with those of the company with which it has united or joined (Miniutti, 2004). Some donations of particular nature can be catered for when companies avail material support rather than financial support. This reduces the processes which would have otherwise been involved if cash was availed-for example procurements, ordering, transport, and related communication expenses. Whereas company managers and officials who authorize contributions may be the ones to feel a warm-glow at the expense of the shareholders, charitable organizations may feel it (Andreoni, 1990).

Conclusion

Cause-related marketing involves marketing efforts that have social and charitable causes but which are not taxable donations. Profitable organizations are compelled by societal needs, competitors within themselves, and governmental obligations and expectations, to participate in cause-related marketing. Although there has been an argument that companies should not give obligations of corporate social responsibility the priority ahead of the stockholders interests, it has been posited that the argument can be nullified if companies were to pursue financial interests in their participation in CRM and if they can have comparative advantages in philanthropy over donors.

Charitable organizations can gain advantages in that they can have more access to funds which would help advance more of their agenda. The charitable organizations have a warm-glow feeling. The company can have its image improved on the social view. It has already been seen that the company may gain in terms of increased sales. The branding that is improved with the companys relationship with non-profit organizations can serve as a source of pride, morale, and loyalty by the employees, in addition to strengthening the internal corporate cultures.

References

Adkins, S. (1999). The Wider Benefits of Backing a Good Cause, Marketing Andreoni, J. (2004). Philanthropy. The Handbook of Economics of Giving, Altruism, and Reciprocity, v. 2

Andreoni, J. (1990). Impure Altruism and Donations to Public Goods: A Theory of Warm Glow Giving. Economic Journal, v. 100, pp. 464-77

Cause related marketing, doing well by doing good. (1994). Responsive Philanthropy Newsletter. Web.

Cone Carol. Cause Branding in the 21^st Century. Web.

Entrepreneurs Foundation. Cause Related Marketing. Web.

Epstein, K. (2005). How Todays Corporate Donors Want Their Gifts to Help the Bottom.

Line, Stanford Social Innovation Review, Summer Giving USA Foundation. (2005). The Annual Report on Philanthropy for the Year 2004.

Goodwill Bill. (1999). Cause Marketing Pros and Cons. Broadcasters and Non-Profits. Web.

Harford, T. (2005). The Undercover Economist, Oxford Univ. Press.

Hausmann, H. (1980) The Rationale for Exempting Non-Profit Organization From Corporate Income Taxation. Yale Law Journal, v. 91, pp. 54-100.

James A. F. Stoner, Freeman, R. Edward and Daniel R. Gilbert, Management, sixth edition, 2004.

Miniutti Sandra. (June 1, 2004). Hunting for Cause related marketings charitable impact. Web.

Polishchuk Leonid & Evgeny Firsov. Doing Well by Doing Good: An Industrial Organization Perspective of Corporate Philanthropy. Web.

Polishchuk, L. (2006). Businessmen and Philanthropists. Corporate Charity in Russia. (In Russian). To appear in Pro et Contra.

Porter, M., and M.Kramer. (2002). The Competitive Advantage of Corporate Philanthropy. Harvard Business Review. December 2002, pp. 57-68.

Saha Swaralipi. (2007). A study on the impact of cause related marketing on the consumers buying behavior. International Marketing Conference on Marketing & Society. Web.

Tirole, J. (1988). The Theory of Industrial Organization, New York: MIT Press Varian, H. Price Discrimination. In: R. Shmalensee, R. Willig (Eds.), Handbook of Industrial Organization, vol. 1, pp. 598-654.

Verrghese A. (2009). Partnerships and Cause Related Marketing: Building brands for the future. Web.

Vogel, D. (2005). The Market for Virtue. The Potential and Limits of Corporate Social Responsibility. Brookings: Brookings Institution Press.

Weisbrod, B. (1988) The Non-Profit Economy. New York: Harvard Univ. Press.

Wesibrod, B., and N. Dominguez (1986) Demand for Collective Goods in Private Nonprofit Markets: Can Fundraising Expenditures Help Overcome Free-Rider Behavior? Journal of Public Economics, v. 30, pp. 83-95.

Zadek, F. (2001) The Civil Corporation: The New Economy of Corporate Citizenship. Earthscan.

Situation Analysis

Introduction

Volkswagen Indian subsidiary was founded in 2007 to assemble, manufacture, and distribute Volkswagen vehicles in the country (Datamonitor, 2011). The company offers a variety of vehicles including Volkswagen Passat, Audi, Skoda, Jetta, Touareg, Polo, Phaeton, and beetle. The company has been using a multi-brand strategy that has disadvantaged the creation of a strong brand. Volkswagen Passat is among the products offered by the company from its small car segment.

The product is designed for average income earners who seek to have the experience of new technologies. Iyer (2009) observes how the economy of India is growing at a very high rate and most of the people are enjoying increased earnings. The buying behavior of the people is changing as well and they are yearning for more luxurious goods. The middle-aged people are particularly responding to technological changes in the motor industry (Ludwig, 2011, p.21). This paper is intended to investigate the situational analysis of Volkswagen Passat marketing in India.

Procedure

The paper employs a research methodology that uses secondary sources to acquire information about the company and the market. The principal source that will be used in the study is the World Wide Web. Here, we will visit the Volkswagen websites, government, and business websites as well as other relevant databases that can offer relevant information. The gathered information will then be analyzed and synthesized to produce a report that gives the actual situation of the company. SWOT analysis will be the main tool that will be employed to present the strengths, weaknesses, opportunities, and threats that the firm can pay attention to in order to develop effective strategies.

Findings

SWOT analysis

Volkswagen has a number of powerful strengths that can be used to build its business in India, but the major weakness is the weak brand image. There is an opportunity in the increasing demand for cars as a result of the growing economy (Nizamuddin, 2008, p.345). The major strengths, weaknesses, opportunities, and threats are summarized in table 2.

Table 2.

Strengths

Volkswagen can build on three essential strengths:

1. Strong brand portfolio. The Volkswagen Company has a wide range of cars that are recognized and respected across the world. The Volkswagen Passat in particular comprises a variety of models designed according to the varying needs of the customer.
2. Robust production capabilities. Being the third largest manufacturer of automobiles in the world, the company suggests its powerful production capabilities. This is important in ensuring a balance of the demand and supply of the product.
3. Strong focus on R&D. The active involvement in research can ensure that the company differentiates its product through innovation. This strength is also important for improved quality as the Unique Selling Propositions.

Weaknesses

The late entry of Volkswagen into the Indian market has led to some weaknesses being observed in the company.

1. Sluggish performance. The Volkswagen Indian Group is slow in performance within the market as compared to other competitors. Their focus has been on the major cities which deny them the opportunity to exploit the upcoming rural consumers.
2. Weak brand image. As a result of the late entry, the brand image of Volkswagen is very weak among Indian consumers. This weakness can be very effective as the brand image is vital in a competitive environment.
3. Poor cash flows. During the growth stage in the product lifecycle, Volkswagen invested in a massive awareness campaign. This funding has caused an imbalance between the expenses and returns achieved from sales.

Opportunities

Volkswagen can take the advantage of several market opportunities:

1. Accelerating demand for small cars. The Indian economic boom has resulted in increased earning and thus the change of consumer behavior. Most of the low-income earners who could not have afforded to buy a car have enough to do it now. Indeed, the earnings are expected to increase continually in the next several years.
2. Increasing demand for hybrid vehicles. Volkswagen can exploit this opportunity by combining production capabilities with research and development. The demand for cars is increasing, yet very few manufacturers are responding to it.
3. Continued economic growth. The Indian economy is expected to continue growing in the future and hence increased earnings and job opportunities (Ramesh, 2010, p.22). These will enable other consumers to enter the market and expand the opportunities.

Threats

Volkswagen Company faces three major threats

1. Stiff competition. The opportunities arising in India have made automobile manufacturers increase their activities in the country (Ramesh, 2010, p.24). This is leading to the continued increase of motor vehicle supply including renowned brands.
2. Pressures for low-cost products. Indian consumers have become more cost-sensitive ever than before. This has led to the industry responding with cheap brands that reduce profitability significantly. While Volkswagen has been focusing on quality, other competitors like Honda and Toyota have successfully implemented cost strategies in the market.
3. Environmental protection policy. The issue of global warming has led to major changes in environmental regulations. Vehicles being one of the key contributors to this warming are particularly vulnerable to regulation changes.

Conclusion

Despite the intense competition, Volkswagen can win a substantial market share and strengthen its brand image among the targeted market segments. The low-fuel consumption engine system is an important point of differentiation in the competition. Offering a variety of Passat models is also a strong competitive edge to win a wide customer base (Hitt, Ireland & Hoskisson, 2008). In addition, the Volkswagen brand is recognized across the world and can use this position to compete. The company will be required to emulate the strengths and take advantage of the weaknesses of the closest competitors.

Objectives and Strategy Development

Introduction

Volkswagen Company with experience in the automobile market entered the already matured small-car market in India. Small cars are increasingly becoming popular in the Indian market with increasing economic growth. Forecasts suggest that the sales of small cars and trucks will grow by more than 40% for the next five years (McClellan & Shah, 2007, p.38). Market competition is therefore stiff despite the increasing demand for small cars. The automobile industry is also strengthening and low prices are pushing profitability. Consumers are increasingly becoming more sensitive to prices and quality of the product than ever before.

However, the Indian motor vehicle market represents a large part of the economy with sales of over1.5 million unit vehicles (BMI, 2010, p.54). In order to gain a significant market share in the changing environment, Volkswagen must differentiate its products while targeting specific segments of consumers. This section of the paper is aimed at identifying the most effective strategies Volkswagen can implement in order to market Passat and position better in the Indian market.

Procedure

The internet will be used to provide secondary sources that will give information about the company and the market. Here, we will visit the Volkswagen websites, government, and business websites as well as other databases that can offer relevant information. The gathered information will then be analyzed and synthesized to produce a report that gives the best strategies for the company. PEST and Porters five forces analysis will be used as the analytical tools that will assist in identifying these marketing strategies that Volkswagen can implement and position better in the Indian market.

Findings

PEST analysis

PEST analysis is important in understanding the external factors that can leverage any marketing strategy. Political factors affecting the Volkswagen strategy include government policies, tax policies, trade restrictions and tariffs, law, and regulation (Tiwari, Herstatt & Ranawat, 2011). Economic factors include the surging economic growth, exchange rates, interest rates, and inflation rate. The social factors include the population growth rate, age distribution, changes in buying patterns, and behavior. Technological factors include R&D activity, technology incentives, automation, and the rate of technological change.

Porters five-force analysis

Bangs (2002, p.67) considers Porters five-force analysis as an important tool in determining the competitive position of a business. In many markets, the large capital and expertise required to set up a manufacturing facility is a big barrier to entry and prevent many new companies from setting up. However, the forecasted growth of the Indian economy, infrastructure development, and ever-increasing financial options to citizens indicate that the market is attractive. Therefore, the threat of new entrants is expected to be quite high.

The higher the buyers power, the more they will influence price reductions (Henry, 2008). Buyers across the Indian market have a wide range of choices. More than twenty foreign manufacturers sell in the market including ultra-high-tech such as Lamborghini and Rolls-Royce. In fact, there are also a collection of cheap choices such as the renowned Tata Nano. The bargaining power of buyers is therefore strong.

The threat of substitutes determines the switching costs (Daft, 2011, p.215). The Indian market is also famous for two-wheeler and three-wheeler vehicles. These are precise substitutes and obvious threats to other automobile manufacturers.

The higher the supplier power, the more they will influence high prices for raw materials (Warner, 2010). The suppliers have considerable bargaining power as they are not fixed to single manufacture. The presence of many manufacturers means that the suppliers can market their products to any of those manufacturers.

The rivalry among competitors is quite high as a result of the market dynamics and the growing economy. The automobile industry has not matured enough and many companies are struggling to topple the market leaders.

Strategic objectives and Issues

We have set aggressive, measurable, and achievable objectives for the following strategic year.

Marketing objectives

We are aiming for 5 percent of the market share through increased brand awareness and customer loyalty.

Financial objectives

Our aim is to have 15 percent profitability by increasing the sales from 25,000 units to 35,000 units of Passat vehicles.

Issues

Among the major issues, we face in the marketing of Passat vehicles is the lack of a strong brand name in India. The multi-brand strategy used by the company during the growth stage had many disadvantages. The strategy can only be profitable when the company achieves a dominant market share. Volkswagen Passat and Skoda hailed from the same family and shared same hardware competing one another in the market (see table 3). As a result, the two products obtained a very small market share and none was profitable. Under such a strategy, the company cannot develop a dominant brand identity across its products. It cannot attain the economies of scale and is therefore required to invest heavily on promoting Volkswagen Passat singly.

Marketing Strategy

The marketing strategy refers to the process that allows businesses to concentrate their limited resources on the best opportunities to attain a sustainable competitive advantage and increase sales or profitability (Ferrell & Hartline, 2010). Volkswagen marketing strategy is founded on the positioning of product differentiation. The primary consumer targets are the middle-to-upper income families and professionals who need a cheap, comfortable and efficient means of transportation. The secondary consumer target is the sportsmen and sportswomen who need a high speed but stable vehicle. Demographically, the segment is described by the age between 25 to 45 years.

The only business target we have is the entrepreneur or small business owners. These are people who need to travel frequently through cost effective means. Their taste for vehicles is cars that can carry small business luggage like pick-up trucks. These consumers also use the vehicle for other purposes other than for business. The car is also the family car and can be used by any family member. Fuel consumption is of paramount importance to this market segment.

Positioning

Through product differentiation, the Volkswagen Passat will be positioned as the most convenient, cost effective, value-added and technological vehicle for professional and personal use. Our marketing strategy will emphasize on fuel economy, integration of entertainment gears, comfortable driving, stability and high speed, differentiating the Volkswagen Passat.

Product strategy

The Volkswagen Passat models will include all the appealing features and differentiated according to the needs of the various target markets. The products will be offered with a two-year warranty. All the models will be produced with an emphasis on the Volkswagen quality mark. An essential part in our product strategy is to strengthen the Volkswagen brand image. The brand and logo (see the image below) will be displayed in all passat models and reinforced in the marketing campaign.

Pricing strategy

The Volkswagen Passat will be offered between 9,000 and 11,000 pounds estimated price per unit vehicle depending on the model. This is a lowered price from the earlier price of 12,000 pounds since the product introduction in 2009. As we expand the product line, we expect to lower the price per unit vehicle. The pricing strategy is aimed at attracting the emerging consumers as a result of the economic growth and taking a share from the key competitors. The combination of the pricing strategy and the mark of quality will have an impact in wining customer loyalty and repeated purchase.

Distribution strategy

The place strategy is to open our distribution subsidiaries to market and offer the product directly to consumers. The showrooms must be spread throughout the country and especially in particular areas where the target consumers and businesses are concentrated. The new channel of distribution will be supported through continued mini-campaigns across the region served by the specific subsidiary. During the first months, we will continue using the Volkswagen agents as the implementation process picks up. Subramanian (2009, p.15) observes how the Indian population is becoming more and more sensitive to information technology and we expect to open an online store to exploit the opportunity created by online shoppers. We will offer special trade terms for customer who purchases for a second and third time.

Promotion strategy

For the Volkswagen Passat promotion, we will implement two different strategies. We will appoint DDB Mudra Group and use the print media aggressively to advertise the new Passat models. We will also build brand awareness by focusing on the greatest and latest advertising campaigns meant specifically to Volkswagen Passat and implement a communication adaptation strategy (Kaynak, 2002).

We will create a turnaround communication campaign by utilizing electronic media, print and OOH installations prior to the launching of the new Passat models. Through the integrated marketing strategy, we expect to create much anticipation about the Passat and increase brand awareness in the market.

Marketing Research

Through extensive market research, we are identifying the needs, specific features and expectations that our market segments value. The primary research is through surveys, market tests and focus groups that will be carried out in all potential market areas (Churchill & Lacobucci, 2009, p.63). We will also determine and analyze the customers perception toward other competing brands. The secondary market research will involve brand awareness research and customer satisfaction studies. Feedback from our primary research will help us develop the Volkswagen Passat models. Through brand awareness research, we will be able to determine the efficiency and effectiveness of our marketing campaign.

Conclusion

The market environment analysis suggests a good opportunity for Volkswagen to increase its market share in the Indian market. This will be achieved if the company focuses its strengths and capabilities on the area where growth is anticipated. The marketing strategy should be aimed at creating a new and big pool of customers according to segmentation. A Volkswagen Passat with appealing features that address the specific needs of the consumers will be the best. Prices that match those of competitors, but make necessary profits to the firm will be a good pricing strategy. Wider coverage through comprehensive distribution network can add to a bigger customer base. Increased advertising and promotion campaigns will ensure that the potential customers are aware of the brand.

References

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McClellan, B & Shah, S 2007, Indias Small-car market comes of age, Wards Auto World, vol. 43 no. 11, pp.38-38.

Nizamuddin, A M 2008, Declining risk, market liberalization and state-multinational bargaining: Japanese automobile investment in India, Indonesia and Malaysia, Pacific Affairs, vol. 81 no. 3, pp.339-35.

Ramesh, D 2010, Opportunities lure investors to India, Chemical Week, vol. 172 no. 3, pp.21-25.

Subramanian, A 2009, A nation of digital natives, Business Today, vol. 18 no.18, p.15.

Tiwari, R, Herstatt, C & Ranawat, M 2011, Policy studies 58: benevolent benefactor or insensitive regulator? Tracing the role of government policies in the development of Indias automobile industry, Policy Studies (15471349), no. 58, pp.1-63.

Warner, A 2010, Strategic Analysis and Choice: A Structured Approach. Momentum Press, New York.

Executive Summary

The New Balance Company is attempting at entering the environment of the global economy with its latest Mens 611 brand. However, competing with the brands that have already become household names is bound to be rather tricky. Therefore, the firm will need an elaborate branding strategy and an efficient Marketing Mix that will lead it to further success.

Action Plan for Mens 611

Marketing Budget

Reference List

Chaffey, D., & Smith, P. R. (2013). Emarketing excellence: Planning and optimizing your digital marketing. New York, NY: Routledge.

Gerristen, D., & Olderen, R. (2013). Events as a strategic marketing tool. New York, NY: CABI.

Masterson, R.,& Picton, D. (2014). Marketing: An introduction. Thousand Oaks, CA: SAGE>

Solomon, M., Hughes, A., & Chitty, B. (2012). Marketing: real people, real choices. New York, NY: Routledge.

Introduction to the Topic Area

Managerial practices, leadership models, and organizational processes have continued to evolve over the years. Organizational structure has been redefined in an attempt to maximize outputs and empower more employees. The selected topic focuses on how organizational management has changed due to the developments experienced in the world today. The article Walking the Walk: Deloittes Own Marketing Transformation by Deloitte Development LLC reveals how modern changes in technology have transformed the way different organizational processes are done. The insights and ideas described in the article add up to the issues revolving around the evolution of organizational structure. Companies that want to remain significant and profitable must be aware of most of the developments experienced in the world and implement appropriate models. This move will tackle a wide range of challenges and improve business performance.

Synthesis of the Situation

The presented case examines how Deloitte has managed to come up with a superior structure, thereby being in a position to pursue its business objectives. Before 2015, the company had over 800 marketing campaigns and functions operating across the world. This model resulted in a situation whereby every campaign had to be supported using independent assets and resources. This scenario strained most of the departments and processes at the company. The article offers the responses given by Deloittes chief marketing officer (CMO) by the name Diana OBrien (Deloitte Development LLC). Due to the nature of the existing gaps at the corporation, the leaders at Deloitte realized that it was necessary to restructure the existing marketing functions and processes. This goal led to a new model that was aimed at transforming the way different activities were done in this organization. The leaders at Deloitte decided to come up with new processes and support them using advanced technological applications. Deloitte also combined innovative ideas with competent or talented persons. The end result was a superior model that centralized production, planning, and reporting throughout the marketing process. The strategy resulted in fewer and better marketing campaigns.

The respondent in the article also reveals that the transformation has been an ongoing process over the last three years. New concepts such as teamwork and continuous use of emerging technologies have become common at this company. Performance measurement has also been implemented as a critical practice for monitoring progress and evaluating existing models. Emerging strategies and processes are also being supported by using powerful skills. The idea of data-driven business and marketing processes has led to improved performance at this organization (Deloitte Development LLC). Individuals at the company have also been empowered and equipped with the right competencies to improve marketing and business functions. This corporation has gone a step further to introduce metrics for talent satisfaction (Deloitte Development LLC). Consequently, every customer has been satisfied with the services offered by Deloitte.

Analysis

The ideas presented in the above article show that the idea of organizational structure has evolved due to changes in social and technological developments. Consequently, business people and innovators who have been aware of these issues have redesigned their corporations by introducing new models and strategies that can boost performance. The concept of organizational evolution can be used to analyze the issues described in the article. For instance, working environments have changed whereby teams, human-machine associations, and multilevel leaderships have become common (Greiner 59). Technologies have also been considered to inform and transform a wide range of organizational processes.

According to Greiner, leaders have acknowledged that companies should change depending on emerging forces and factors (61). As the wave of globalization continues to impact business processes, many organizations are restructuring their marketing models, leadership patterns, and empowerment processes to remain competitive in their respective industries. This idea amounts to the concept of business evolution (Deloitte Development LLC). The organizational structure should be changed continuously depending on the expectations of different stakeholders. The concept of business evolution, therefore, explains how companies should be prepared for every next phase or level.

The selected article tries to explain why firms should move away from vertical or hierarchical organizational structures if they are to remain relevant in the global market. This means that they should embrace evidence-based structures and concepts that are associated with teamwork and horizontal managerial approaches. Although vertical leadership has made many companies successful in the recent past, there is a need for leaders to focus on better models (The Evolution of Organizational Forms 7). Horizontal models of leadership have emerged whereby task-related teams and linkages have become critical. The efforts have reduced the time taken to achieve positive results and profitability.

Additionally, the redefinition of work is something that has been taken seriously by the articles author. If every organizational goal is to be realized, top managers should be on the frontline to implement new models and business processes that resonate with the new changes experienced in the world today (Greiner 61). The strategy will eventually deliver positive results.

Implications for Management and Organization

The articles studied in class reveal that the 21st century has posed numerous challenges and opportunities that should be taken seriously by individuals who want to emerge successful (The Evolution of Organizational Forms 6). The insights gained from the above article can be used to inform the practices and behaviors of organizational managers. For instance, managers should use these ideas to appreciate the fact that an organizational revolution is something that cannot be wished away. This happens to be the case because emerging technologies and social forces are transforming the bargaining powers of many service providers and employees (Greiner 58). This means that companies should transform their models to attract more employees and empower them to support the targeted business agenda.

Greiner acknowledges that the working environment has changed significantly within the past decade (61). Many companies are introducing advanced technologies to improve production and decision-making processes. Employees are also in need of superior tools or resources that can make it easier for them to deliver positive results much faster. They also require proper leadership strategies that can empower, mentor, and support them (The Evolution of Organizational Forms 11). This means that management and organizational models should move away from traditional practices such as autocracy (Deloitte Development LLC). The concepts captured in the selected article and other class materials should, therefore, be used as powerful guidelines for attracting the right people, forming appropriate teams, providing adequate support, and supporting surrounding communities.

Conclusion

The idea of an organizational revolution is a new reality that might not be wished away. As the level of competition continues to rise, managers are expected to form exponential organizations that focus on concepts such as teamwork, employee empowerment, social welfare, and horizontal leadership. Technological advancements should also be taken into consideration to develop superior business models that resonate with the diverse needs of different stakeholders. The approach will result in a better organizational structure and eventually drive performance.

Work Cited

Deloitte Development LLC. Walking the Walk: Deloittes Own Marketing Transformation. The Wall Street Journal, 2018. 

Greiner, Larry E. Evolution and Revolution as Organizations Grow. Harvard Business Review, May-June 1998, pp. 55-67.

The Evolution of Organizational Forms and Philosophies. A Primer on Organizational Behavior, edited by Bowditch L. James et al., 8th ed., Wiley, 2008, pp. 1-19.

Abstract

Aim of this paper is to develop a good relationship in a company with customer by employing different strategies. Paper starts with discussing different programs which include handling customer complaints, providing information about new or existing products, placing orders, receiving feedback from customers and tracking orders. Paper also analyzes all programs and recommends solution to improve the situation.

Introduction

ABC Inc is a very well known company in wholesale and retail of different products. Company mainly aims to enhance good relationships with customers to increase its sales. For a company to become one of the best among customers, it must know the customers relationship with the product and brand. (Hutchison, Macy & Allen, 2006). ABC Inc has got different policies currently in place to make customers happy. Each of these policies adopted in this company are explained below with brief description.

Companys Current Programs

Handling customer complaints

This company has got separate section for handling complaints from customers. There are two persons assigned for handling the complaints and they need to make record of each complaint in very correct and orderly manner. Once customer comes to the company for registering any complaint, he can straight go to complaint section and tells his problem. After hearing the problem, the person in the complaint section tells the solution for the problem and time taken to correct the problem. An acknowledgement for the complaint is given to the customer. After this, all the details and complaint about the product are transferred to technical department of the company for proper check up. If they can sort out the problem then company informs the customer saying complaint has been solved and he can get back the product. If the company cannot solve the problem, it replaces that product with new one.

Providing information about new or existing products

This is done by marketing department of the company. Publicity about the product is given to consumers through various ways. Providing information about new or existing products is very much important to promote products. The main aim is to make reach the details of the product among consumers so that they will get the idea and knowledge about the product. When new products are introduced details of the products are published in website and also through TV and other Media. Also, if discount or any such things are there, such cases are also highlighted to attract customers.

Placing orders

For customers who visit the company has an option to place the orders for the product if the product is out of stock. User requirements are neatly noted and registered properly by the authorities of company. Complete details of the customers are also collected, in order to report to them when stock arrives in the company. Booking facilities are also available for products which have got high demand.

Receiving any other feedback from customers

There is a box kept in the main entrance of the company for putting the feedback from customers. This is for company to improve the customer relationship. This box has been regularly checked by the authorities of the company and analyzes the feedback properly to correct the mistakes they had made. Also if there are good feedbacks then employees of the company will try to maintain that thing in future also.

Tracking an order

This is used to check whether the requirements of the customers are fulfilled correctly. For this, company has separate section for tracking the orders. When new orders are placed, they are recorded properly.

Analyzing Companys Customer Relationship Programs

Companys policy regarding customer relationships is good up to an extent, but it can be improved by putting some more efforts in the existing programs.

Critique Companys Customer Relationship Programs

Existing programs of a company can be made much better by introducing customer information systems or customer interaction software. The aim of these systems is to assist in building lasting customer relationships  to turn customer satisfaction into customer loyalty. (Customer relationship management, 2009, para.1).

Recommendation

By following some extra steps ABC Inc can improve customer relationships and attract more customers towards the company. Customer information system will provide better solution to improve the condition. This kind of system or application will allow the company to establish good customer relationship in every aspect. Customer information collected from different departments can be captured and stored in a centralized database. This system handles the end customer in a correct and efficient way. (Customer information system, 2009, Customer relationship management, para.1).

By introducing this system, it will be very useful for customers to check which products are available in the company without visiting in the company. For handling customer complaints, this system is very useful. Company authorities can register the complaints in the system. Once the complaints are registered, technical section of the company can see whether the spare parts of the product are currently available or not. Customer can view all the updates of the product, if customer is a registered user of this system. For company, it can add more information about new and existing products in this system. Customers will get idea about product before coming to company. Here, company can show the discount price, if applicable. So, the purchaser will be able to know about the products which are available at discount. Further, through this system there is option for customers to place an order after viewing the product. This will be useful for both company and customers. If customer places an order before visiting, company authorities can make the product ready before customer comes to the company.

Conclusion

It is not possible to make a customer hundred percent happy, but by implementing certain effective measures, company can make feel customers that they are getting something. Thus, customer relationships in a company can reach high and improve further.

Reference

Customer relationship management. (2009). The Free Dictionary. Web.

Customer information system: Customer relationship management. (2009). Tieto. Web.

Hutchison, TM., Macy, A., & Allen, P. (2006). Record label Marketing. Focal Press.

Zain Company is the biggest telecommunication network in the company that has proved its success for nearly two decades of presence on the world arena. In the course of time, the network has managed to create the customers demand and keep a large market segment despite a vigorous competition perceived on the part of other successful telecommunication companies. The main success of business conduct lies in focusing their resources on the network advancement in the developing areas of Africa and Middle East, which considerably lag behind in telecommunication terms. Needless to say, Kuwait, where Zain is located, greatly benefits from this companys operational success and progress, since it directly influences the social and economic health in the country through sponsorship and global recognition.

Owing to the fact that Zain Telecommunication operated within 25 countries of the world, it obtain high net profits that boosts the fixed capital and the customers demand (Zain, 2010). Now, when the company is famous all over the world, its recognition and brand name also contribute to its further development. In order to improve this image and to level up the existing profits, Zain establishes sponsorships with other companies at regional and international level. Sponsoring is seen as a favorable platform for customers relations. By providing their customers with high-class wireless communication, the companys is striving to meet the expectations of both the employees and the shareholders.

Firm position on the market and high demand for goods generates the increase of the employment level in country where the starting point is the money investment. Zain establishes numerous partnerships attracting monetary operations leading to active funding and generating business development. Therefore, employment development emerges as a result of goods consumptions and income creation (Coates, 2000, p. 60). As a company is constantly developing, it needs more human resources. In this way, the company positively influences the welfare of the population and the economic health. The employment level is one of four indicators of a healthy economy. The other three ones include living standards, balance of pricing and payment (Coates, 2000, p. 58). In our case, sponsorship introduction fosters the creation of reliable customers demand and constantly growing income leading to the improvement of economic situation both in Kuwait and in other countries like Sudan. In cooperation with global equipment supplier Ericsson, Zain has managed to positively affect the communication network in Sudan thus facilitating its political and social welfare in separate regions like Juba and Darfur (Zain, 2010).

Further improvement of economic health and social welfare influences non-economic factors in the countries, which can be considered the signs of economic improvement (Adelman and Morris, p. 71). In particular, such economic operations as capital investments, consumption level, and customers demand can directly influence the state of education, social behavior, and healthcare in developing countries. With the advent of telecommunication to the developing countries, numerous economies have witnessed considerable changes of social behavior and social communication. Being supported by the world trend and economical opportunities, the population will be involved in a total reevaluation of their possibilities and rights leading to the rise of self-awareness and desire to transfer to another economic level (Budd, 2006, p. 4).

In conclusion, Zains marketing strategies directed at the improvement of economic and social welfare of their clients greatly contribute to health economics in the developing countries. In particular, the main course taken by the telecommunication network is introduction of sponsorships seeking to meet the customers needs and to surpass their expectations in terms of their services. In addition, these strategies can be considered as an alternative way of business investment that, according to the above concepts, leads to the increase of stability of employment and pricing and to the balance of payments. Finally, the company orientation on services improvement indicates the rise of standards of living, education and healthcare  main signs of economic high performance.

Reference List

Adelman, I., and Morris, C. T., 1973. Economic growth and social equity in developing countries. California: Stanford University Press.

Budd, C. H., 2006. Signs of the Times Associative Economics Monthly. pp. 3-4.

Coates, D., 2000. The management of the UK economy Understanding Business: Environment. pp. 55-70.

Zain Company., 2010. Corporate Sponsorship. Web.

In the marketing field, marketing mix plays an important role. One of the four components of the marketing mix or 4Ps is the price of the product. A change in price component may lead to a change in the other three components like product, place, and promotion. While developing a pricing strategy for a product, a few steps to be followed are to develop a marketing strategy, determine the marketing mix decisions other than price, calculate the cost including the fixed and variable cost of the product, determine the external environmental analysis, set the pricing objectives and finally determine the price of the product. The marketing strategy is formulated before the product is launched. This mainly includes target market selection and product positioning. The quality of the product and the price of the product are two associated factors. The marketing mix decisions may vary with a change in any of the 4Ps. When a company decides to launch a product, there is always a situation to understand at least the basic costs involved. While calculating the costs, both the fixed cost and variable cost should be included. Then, the company should be aware of the market condition, existing competitors, etc in the external environment. The company should frame the price only after referring to the pricing of their competitors; otherwise, there will be a price war situation. Also, there may be price controls for pricing a product too high or low. Then comes the most important aspect of pricing objectives like current revenue maximization, current profit maximization, quantity maximization, quality leadership through pricing, survival of the company in adverse situations in the market, etc. There are many pricing policies in the market available currently. Some of them are skimming the price, where the target market is not highly price-sensitive and the demand is relatively inelastic, and penetration pricing where the target market seems to be highly price-sensitive and the demand is highly elastic. These two pricing policies are most widely used by various companies.

Marketing strategy of CADBURYS

The global confectionery market is the worlds fourth-largest packaged food market. (Our marketplace, 2009, para.1). This company is mainly oriented towards the younger customers of the market. It attracts children by making the product available at affordable prices and satisfying them. Cadburys always makes research on what types of products can make the children satisfied and hence has entered into a variety of product launches right from simple chocolates to ice-creams and even cakes. Cadburys has always concentrated on the aspect of making its customers satisfied with their demands.

The target market for Cadbury products is people in the age group of 5-60. The company offers differentiated products for each age group like from 5-10, 11-21 and 21-60. A product of milk chocolate coated with nuts could be provided for children with an attractive colored wrapper. Brown chocolate covered with nuts with low caloric value may suit chocolate lovers and finally, for matured aged people, white chocolate coated with nuts can be provided as they will be more diet conscious. This differentiated product is an important marketing strategy adopted by Cadburys. The aim of Cadburys is to accomplish the goal of becoming the best and the biggest confectionery company in the whole world. Cadburys confectionery revenue breakdown is about 46% from the chocolate sector, 33 % from the gum sector, and 21% from the candy sector in the market. Chocolate is the largest category under confectionery whereas gum is the fastest-growing category. Now, Cadbury is going to introduce a new product which suits both youth and aged people. The product is named Tantalizers

Pricing strategy & price tactics  Tantalizers

The mission of this new product is to tempt and attract the youth and ripened ones of the society with its taste. The pricing objectives of this product are to increase the revenue growth, increase the net profit margins by10-5%, and increase the dividend per share by 6% and have stable earning rates during adverse market conditions. As Cadburys is well known for its quality, the positioning may not be a serious issue as everyone encourages and waits for a quality product like this. This product should successfully deliver the selected position to the market in return. Before pricing or positioning the product, the competitive advantage of the product also should be analyzed. Hence, after going through all these aspects successfully, Cadburys put the pricing strategy for Tantalizers in a very economical rate as for 24CT pack  $39.99, for 48CT pack  $49.99, for 140 pieces in a pack  $15, etc These prices are comparatively very economical and affordable to the target market.

The pricing tactic mainly used in this context is odd value pricing, which is an essential aspect of buying decisions. Some customers may prefer this type of pricing as it seems to be more attractive.

Competitive pressures

One major competitor for Cadburys is Nestle. Nestlés business aim is to create a sustained value for its products over the long term. Nestle always believes in recruiting the right persons for the apt places to improve their efficiency. Nestle always prefers long-term benefits. Nestle aims to retain its valuable customers for the long term as they are the key to success. Nestle has a wide variety of products range from chocolates and confectionery, nutritive drinks, cereals, cookies, baby food, bottled water, coffee, and ice creams. (Brands: Nutrition & health, n.d.).

Nestle uses an international competitive strategy as it is a global company. Its main competitive strategies are associated with foreign direct investment in dairy and other food industries. It also uses another strategy of making strategic partnerships with other large companies. Nestle, whenever expands its business to a new area, tries to acquire the local companies to form a group of regional managers who know very well about the culture of that area. And Nestle always looks for new markets and expands their business, which also seems to be a good competitive strategy. When such a variety of products like Tantalizers comes to the market, obviously there will be a response from Nestle and all other competitors as well.

The competitive advantage of Cadburys Tantalizers

The major advantage of Cadburys over the competitors is its brand name and quality which are recognized in the whole world. Then, the innovative features of the products that the company is producing are another unique feature. The wide availability and affordability of the price structure also are unique. The wide promotion of the products through good advertisements also leads to competitive status. The company also takes care in delivering the products safely and fastly in the market. This brand is preferred by customers worldwide more than any other product.

Since Tantalizers is very economical and affordable, the customers will surely go for it. As the quality of the product is one of its uniqueness, the customer will love to have a quality product at such an affordable price. The odd value pricing tactics also would be welcomed by the customers. The nutritive value of the product also adds up to its uniqueness and due to all these reasons, customers will love to buy this product.

The pricing strategy launched by Cadburys for its new product Tantalizers is attractive, and hence the target market would love to have it. Together with the pricing strategy and pricing tactics, positioning of the product and overall marketing strategy has been done with so much care that would surely have an efficient outcome in the market.

Reference List

1. Brands: Nutrition & health. (n.d.). Nestle: Good Food, Good Life.
2. Our marketplace. (2009). Cadbury.

The article under the investigation is called Marketing and Product Design: A Rocky Love Affair and written by Jan Landwehr and Andreas Herman. The paper delves into the major concerns of product design and its role in the modern marketing environment. The authors cogitate about the significant growth of the importance of design and the overwhelming impact it has on the evolution of market relations and the promotion of a certain product or brand.

Landwehr and Herman state that even though the design is a relatively new phenomenon, it has managed to introduce significant alterations into the functioning of all companies (9). Additionally, the reconsideration of the approach to design gave rise to such an issue as branding, which became one of the major success drivers (Landwehr and Herman 9). For these reasons, the paper revolves around the topical shifts of priorities and the main strategies used to foster the emotional attachment to a certain brand.

The choice of the given topic is not accidental. The authors highlight the fact that the relevance of their research is evidenced by the blistering rise of the organizations which devote great attention to design and branding. The last several decades could be characterized by the increase in the revenues of Apple, Procter & Gamble, etc. In this regard, it is possible to associate the product design and marketing success. The investigation of the major concerns of the attractive brands creation becomes crucial in terms of the modern market environment. Realizing this fact, the authors provide a precise investigation of the main factors that impact the process of design and branding. Additionally, the importance of customer satisfaction and its direct correlation with branding also determines the choice of the investigated issue.

Performing the analysis of the paper, the most important assumptions should be admitted. First, Landwehr and Herman suggest the idea that the significant shift in emphasis towards design could be admitted (10). This assumption is supported by numerous real-life examples. For this reason, the authors highlight the mutual dependence between the product design and the success of any company. The recognition of this idea introduced the need for qualified designers and the reorganization of the functioning of several companies. Moreover, the paper also provides information about customer satisfaction and the way product design might impact it.

Landwehr and Herman are sure that to be successful any product should trigger positive emotions among customers and provide them the possibility for self-realization (11). Finally, there is the list of the most important marketing factors that should be taken into account while creating a certain strategy or design to guarantee a stable level of interest towards a product and its general success.

Nevertheless, one realizes the fact that it is not the first paper devoted to the investigation of the importance of design and the modern market environment. The last significant changes in the structure of society and the main strategies used to attract peoples attention gave rise to several concerns. These are related to such issues as branding, marketing strategies, customer interest, etc. In these regards, it becomes vital to reconsider some strategies to attain success. Several authors seek to determine the major issues and provide their vision of the possible steps to be able to respond to new conditions. For this reason, the paper could be related to several other readings devoted to the investigation of the modern market, management, and branding. However, it still presents some important and credible information needed for a better understanding of the question.

Besides, having conducted their investigation of the issue, the authors suggest their concept of design and the ideas for possible implications. Landwehr and Herman are sure that companies that offer excellent products within a strong brand and match them with a fitting and the aesthetically excellent design will be the most successful. (15). This assumption rests on several real-life examples and investigation of the most significant tendencies of the modern market.

Yet, the authors also highlight the necessity of the improvement of the competence related to the given issue and creation of the design-based approach to the promotion and development of a certain product. Only under these conditions, it is possible to attain success and guarantee stable incomes. Finally, the authors recommend improving the comprehension of the concept of the rational customer to be able to meet his/her requirements.

In conclusion, the paper could be considered a credible source related to the major concerns of modern marketing and branding strategies. Landwehr and Herman manage to prove the importance of design and the impact it has on the promotion of a certain product. Additionally, the usage of several figures contributes to the better understating of the main ideas of the paper. Furthermore, the authors assumptions are proved by several real-life examples which increase the practical utility of the paper and condition its usage in further investigations of the main concepts and strategies of modern management.

Works Cited

Landwehr, Jan and Andreas Herrmann. Marketing and Product Design: A Rocky Love Affair. Marketing and Design. 7.2 (2015):9-15. Web.

Retail marketing is a key aspect of the retail industry. Effective marketing is indispensably necessary for the current manufacturers because, with no retail store presence, businesses are unlikely to attain the high level of exposure or even proper product distribution offered. Succinctly, retailers help businesses through various marketing services such as direct product promotion to customers and offering consumers the opportunities to view and test the products. Since its inception, retail marketing has undergone a significant change, thereby attracting the attention of various research scholars within the marketing field. In the article Retail Marketing: A Critical Analysis by Ashish Pandey and Dr. Avjeet Kaur, the scholars present comprehensive research regarding the necessities as well as important building blocks of marketing. This study aimed to ascertain as well as analyze how the marketing formats have taken over this industry in India, different confronts and opportunities that underlie the countrys retail industry, successful strategies for organized stores, and different customer inclinations within the ASEAN economics.

The article begins with the authors highlighting the speedy surge in the novel retail formats in the last two decades. According to scholars, Indias retail sector is experiencing a full alteration in both growth and investment situations (Pandey & Kaur, 2020). The new and old market players have been practicing and experimenting with the novel retail formats. Explicitly, the current market structure is characterized by two major retail formats: hypermarkets and supermarkets. Most importantly, the research confirms that globalization has significantly changed the dimension of retailing as it constantly transforms and restructures the retail formats across the globe. It is an element that has provided a route for free movement of goods as well as services. Additionally, the scholars identify the governments influence as a vital factor in allowing the foreign organized retails in the country, which has created stiff competition amid the new and the existing industry players. The article reports that Indias retail sector is rapidly grabbing the interests of numerous players and may expectedly surge at a constantly high rate in the coming years according to the study of the Global Retail Development Index 2015 (Pandey & Kaur, 2020). Pandey and Kaur (2020) assert that although Indias retail sector is in its introductory phase, it offers enormous prospects for the future. Besides, the retail industry thrives under the principle of cut-throat competition, which meaningfully offers the best products as well as services to the target consumers.

Most importantly, to provide a valid and reliable analysis of the topic, the authors conducted a literature review, which focused on key areas such as retail marketing and consumer retail behavior that have majorly attracted the interests of previous research. The significant changes presented in the study are reported to be as a result of the constantly changing demographics, business environments, and social development. Furthermore, the entry of the largest business giants such as Wall Mart and Carrefour, among others, has massively influenced the transition (Gahesha & Aithal, 2020). The rising consumer incomes have also expanded the retail industry. Pandey and Kaur (2020) argue that the most interesting aspect of modern shopping is that consumers no longer perceive it as the purchase of goods and services, but rather as social life. Therefore, the aforementioned factors are vital for using retail marketing. However, the biggest challenge within the Indian context is the dominance of unorganized retailers within the rural areas and the reluctant attitudes of the local consumers.

Moreover, organized retail outlets are critically important for marketers across all settings. Pandey and Kaur (2020) claim that understanding as well as analyzing the purchasing behavior of consumers is necessary. The rural markets are crucial for effective and sustainable retail marketing, and, hence, it is outlined in the article that local markets should be properly analyzed. Furthermore, numerous factors are deemed influential to buying tendencies, for instance, some clients prefer stores that offer them discounts, those with a variety of products, or rather those which are convenient to them (Bhatti & Rehman, 2020). Critically, the analysis performed by Pandey and Kaur is purely based on facts and information gathered through multiple sources. The literature review unveils significant findings regarding the global retail industry. Mexico, UK, The USA, Thailand, and China are considered the most productive economies as a result of the effective performance of their retail sectors (Pandey & Kaur, 2020). In the U.S., for instance, the industry has employed about 22 million individuals across its numerous outlets and generated a record of $3 trillion as revenue.

To sum up, the article carefully analyzes and offers a proper understanding of different elements and the building blocks of retail marketing. It can be resolved that there are numerous tools for both marketing and promotion used by retailers in India, including brand marketing, personal connections, credit services, advertising, premiums, and reasonable pricing, discounts, store ambiance, image branding, e-marketing, home delivery services, and rebates. As for the organized retailing, the most important tools are in-store ambiance and sustainable discounts, while for unorganized retailing, the best tools are convenient location, credit services, and active relationships. All tools play crucial roles in modern era business operations.

References

Bhatti, A., & Rehman, S. U. (2020). Perceived benefits and perceived risks effect on online shopping behavior with the mediating role of consumer purchase intention in Pakistan. International Journal of Management Studies, 26(1), 33-54. Web.

Gahesha, H.R., & Aithal, P. S. (2020). Organizing the unorganized lifestyle retailers in India: An integrated framework. International Journal of Applied Engineering and Management Letters (IJAEML), 4(1), 257-278.

Pandey, A., & Kaur, A. (2020). Retail marketing: A critical analysis. Journal of Retailing and Consumer Services, 3(6). Web.