Since the creation of human being, The God has gifted him a brain to think and to respond based on the best of his knowledge and capacity to beat his daily as well as lifelong concern, because the man came out from caves, he has been start considering his needs and wants and primarily barter system came into being, as enough time passes the man became modern and start thinking and getting together with the know world to fulfill not only his needs and would like but also about his long the necesseties of life, for this purpose he started considering to advertize his product in exchange to barter with others, which is commonly known running a business language long and management words Marketing managment. Below is the state definition.
Phillip Kotler identifies Marketing as 'satisfying needs and would like through an exchange process'
The charter Institute of Marketing define marketing as 'The management process accountable for identifying, anticipating and satisfying custumer requirements profitably'
Akzo Nobel
Akzo nobel is a multinational company, active in the fields of decorative paints, performance coatings and area of expertise chemicals. Headquartered in Amsterdam, Netherland, the business has activities in more than 80 countries, and employs roughly 60, 000 people. Sales in 2007 were EUR 14 billion. Following the acquisition of ICI, the company now is among the most one of greatest company of the world.
AkzoNobel has an extended record of mergers and divestments. Elements of the existing company can be traced back to 17th century companies. The milestone mergers and divestments will be the formation of AKZO in 1969, the merger with Nobel Companies in 1994 forming Akzo Nobel, and the divestment of its pharmaceutical business and the merger with ICI in 2007/2008 resulting in current day AkzoNobel
AkzoNobel markets their products under various brandnames such as Dulux, Cuprinol, Tintas Coral, Hammerite, Herbol, Sico, Sikkens, International, Interpon, Casco, Nordsjo, Sadolin, Taubmans, Lesonal, Levis, Glidden, Flood, Flora, Vivexrom, Marshall, and Pinotech merely to speak about a few. These products were applied to London Millennium Steering wheel, La Scala Opera House in Milan, the Oresund Bridge between Denmark and Sweden, the Beijing National Stadium, Airbus A380, and Stadium Australia in Sydney.
Product Line Extension: A product line extension marked under the same standard brand as a prior items. To tell apart the brand extension from the other items under the primary brand, you can either put in a secondary brand id or put in a generic name.
I am going to extend the merchandise, instread of attractive paint I present the industrial coloring. which is almost same like the attractive coloring but with different properties. Because of this product the industrial coloring we use the same developing process as we use for attractive paints. We must install a mixer with this system which combine polymer latex and additives in it. Its brand name will be Double Dulux Industrial paint(D2). Why don't we carry on towards iits launching.
Spacialities of Twin Dulux(D2):All the raw material comes in the industry or it is created in monther industry. No extra machinay is equired to produce it. It really is envirenmental friendly car paint. It really is ling losting. It could with stand where there is wear and tear. It is corrosion resistance. It is abrasion resistance. It has potential to with stand at high temperature and in damp weathers. It really is especially made for the extreme cool and extreme hot countries.
Mission Statement.
There can be without doubt that for AkzoNobel, 2008 was an historical yet challenging time. It began and finished in such stark comparison, the conclusion of the acquisition of ICI being accompanied by the acceleration of a global tough economy in the fourth 1 / 4. During the weeks in between, we remained before routine with the major integration process, continuing to launch ground breaking products, released our new strategic focuses on, made further investments in our businesses and launched our new corporate and business personal information. Our company is positioned to face the challenges we face and because of this will maintain a good shape in a long run.
Situational Examination.
Analysing environment is the starting point of Strategic Management platform and provide various tools such as SWOT Analysis, PESTLE Analysis, Scenario Planning and Porter's 5 Forces model are used to analyse the environment. This evaluation helps managers understand environment and tendencies which is vital to be able to formulate successful strategy. In addition to the usefulness of the tools there is also some constraints and in some particulars situations they are sufficiently did wonders. Why don't we apply these rules on the Akzo nobel.
Swot Evaluation:
"One of the most basic approaches for analysing firm and industry conditions is SWOT examination" (Dess. , et, al, 2004). This tool can be used to analyse a firm's talents/ weaknesses and Opportunities/ Threats of its environment. It is useful to assess the position of an organisation also to formulate strategy appropriately.
Strengths and Weaknesses make reference to the firm's interior position while Opportunities and Dangers refer to its encircling factors with regards to the industry and or other organisations on the market.
Strengths: In Swot Analysis the first two factors (power and weakness) are internal factors. For Akzo Nobel the main strengths are:
Experience in conducting business in this market from previous 40 years.
Close look on their opponents by doing time-to-time studies about the companies getting into the market.
Better client satisfaction level.
Time-to-time special offers about their future ideas, about their products and services.
Low prices when compared with any other competitors and affordable prices
Better HR plan, proper recruitment system and high income rate
Availability of large variety of products within a company
For Akzo Nobel the key Weaknesses are:
Huge amount of business in every over the world
For Akzo Nobel the key Opportunities are:
Growing demand of branded quality products
Mergers and joint venture
Moving in new countries, international market setup, its style maker
A growing market like the buying online
Market evacuated by competator like ICI
Increasing custumers and brand reputation day by day globally
For Akzo Nobel the primary Threats are:
High Degree of competitions within the local market of each country
Price warfare among competitors
Changing in custumer taste and country atmosphere
Global ecnomic uncertainity like recession, inflation and exchange rate
Changing Governments Restrictions in several countries
Change in trade plan of world
PESTLE Analysis:
In a business environment, you'll find so many environmental factors which could affect a business outcome. A company does not have any control over those factors but good knowledge of these may lead to formulate a good strategy in future.
These environmental factors are divided into six particular categories but in some cases overlapping can be done. These factors are categorised as Political, Economical, Sociable, Technological, Legal and Environmental factors. PESTLE Evaluation can be used to analise and understand each one of these environmental factors.
With regard to your new new expanded product Double Dulux and also other products of Akzo Nobel, the business has different branches globally, although the guidelines and regulations change from country to country, however the company has already settle their set up in many countries. For releasing the product politically we won't face any issue in any country. Now due to economic unstability and downturn the economy of several countries heading down, but the Akzo Noble have advantages over it is the fact that it converts the founds in euro or any money, so it has always an advantage. The company has recently settle its installation and good will of brand in many countries. For this product we have you don't need to set up the plant, we can run the same herb for normally, only with few amendments will be needed. It does not have any influence on the envirement and everything the chemicals used are atmosphere friendly. This product mainly concentrate the commercial countries like Pakistan, Italy China etc. As well as the countries which has any disaster like Afghnistan and Iraq. These kinds of countries are our targeted market. Among suitable thing to us is that we can source our product to Pakistan, Afghnistan, Iraq and China from Pakistan easly because one of the best branch is at Pakistan. On the other hand for European countries we can source from UK.
Porter's 5 Forces:
Michael E. Porter's 5 Causes model is very helpful and has been used broadly since its introduction.
This model details competitive environment in conditions of five basic competitive causes:
The threat of new entrants
The bargaining power of buyers
The bargaining electricity of suppliers
The risk of alternative products and services
This product is a distinctive creation. Although our custumers are using the decorative paint for professional purpose, which is merely for housing purpose. At the moment there is absolutely no multinational company who's manufacturing this one. and one thing is that the Akzo Nobel is one of the leading company of the world. No starting investment is necessary for this product. The business has enough capacity to fullfil its custumers demand. Usually the customers are our clients, so we can easily go into our product.
Marketing Strategy:
Market Research.
Before launching the product we've made a market survey. According to market research the sectors of the world utilize 33% of the paints, 50% of the color used is decorative paintand left over 17% is most of other types. So it is a confident sign to create this product. Region wise the most significant consumer of the car paint is European countries which is 32%, then THE UNITED STATES 28%, then Asia and Japan 28% and then left over world 12%. So there is more scope in Asia and European countries for this kind of investment.
Targeted Market:
The targeted market for this product is the industries that are producing heavy machinary, ships, boats, furniture and Flat iron sheets. Additionally it is helpful for the automobiles and then for the big building where there is heavy work going on. One good thing about this product is the fact additionally, it may used for decorative purpose as well. So partly we can also sale it as ornamental paint. But it is specially desighned for business.
4 P's of Marketing: Marketing decision parameters are those variables are under the firm's control that can affect the level of demand for the firm's products. They are simply recognized from environmental and competitive actions variables that are not totally and directly under the firm's control.
The four marketing decision factors are as follows
Price.
The price of the product is variable, it change from place to place. if we consider the with respect to UK only, Its retail cost will be 12 pounds. There may be 20% discount for the dealers, but its up to certain magnitude of purchase.
Product.
The brand is Two times Dulux Industrial Piant, which is a family brand. It really is available in standard 10 litre can packing. This is a high quality product which have 2 years guarantee after use.
Promotion.
There is special campaign for our more aged clients. We will provide our service of use it to establishments on special concession.
Place.
This product will be accessible from our any franchise. It will be provided to the marketers and dealers. But also for the big market sectors it is available on special concession.
Advertisement.
the advertisements of the merchandise can be carried out via these resources like Broadcast media, Print media, Outdoor media, Mobile press. for our new product we have to plan our targeted custumer as well as public. So we may use it, Internet, company Website for this purpose. Silmilarly we can use print press like newspapers, magazine and big plank for this purpose. likewise we can advertise via leaflettings. To target our special sectors we can also use personal marketing who'll tell them regarding new product.
But we must note the solid of advertising campaign. Most cheap media must be implemented. i believe so a =one person once can go to any big sector and can put together them for big offer. But we should ensure our advertisement is concentrating on market or audience and is covering all aspets. Otherwise we may use the text message or immediate mailing advertisement method.
International Market Entry Method.
Firms can enter into overseas markets via any of the them as Agencies, Distributors, Mergers
Acquisitions, Jointventures, Overseassubsidiaries, Franchising, Licensing, Deal manufacturing, Assemblage operations
Financial Matters
Revenue up 1 percent to 15. 4 billion
EBITDA before incidentals totaled 1, 878 million
Net income from continuing operations before incidentals
down 14 percent to 742 million
Dividend retained at 1. 80 per share
Intensity of the deterio 2008 earnings up 1 percent at 15, 415 million
2008 EBITDA before incidentals totaled 1, 878 million
(2007: 2, 011 million)
Slowdown noticeable in every three business areas, in every geographies
Impairment of ICI intangibles of 1. 2 billion after taxes and higher
incidental charges of 0. 6 billion led to a full-year lack of 1. 1 billion
Restructuring and cash protection measures at an advanced stage
1 billion connection concern in December
Balance sheet is strong, but prudence dictates share buyback program
will not be completed
2007 dividend degree of 1. 80 maintained
rating current economic climate became apparent in Q4
