Small drops make an ocean. That is very true as it pertains to the strategy used to any organization. Every single step, decision, plan has a measurable impact how the firm's strategy will get effected. In such a scenario, managers are really cautious about what they are doing and exactly how these are doing as they wish to keep the proper target as a guideline or beacon their route towards it. Strategy implemented by retail chains are critical as they are the lifeline of the contemporary society and in many ways depict the options created by their suppliers, customers and management. Why don't we observe Himalaya Medication Company has located itself to attain competitive benefits through its online marketing strategy.
1. 2 The Himalayan story
Himalaya Drug Company's marketing strategy can be explained as one of the very most detailed yet fundamental in the modern times. Himalaya's marketing strategies are based mostly upon a set of two main aims that have led the organization through their growth years. Change from focusing Ayurvedic concepts to organic personal health care was a major strategic decision. This is done mainly to charm the international market segments. "Just old wine beverages in a fresh bottle" is the normal reaction one would expect at Himalaya Drug's proceed to rechristen its personal health care range Himalaya Ayurvedic Concepts to Himalaya Herbals in Dec 2003. The brand rejig has also been accompanied by a product packaging makeover towards a global look. This is the second time that Himalaya has carried out a brand readjustment exercise. Himalaya's personal care and attention range was presented in 1999 under the brand name Ayurvedic Ideas. In Dec 2001, in a proceed to leverage Himalaya's brand equity, the company brought the Ayurvedic Ideas brand under the Himalaya umbrella. And now, barely 2 yrs after the prior renaming, the latest move has brought up questions as to why the business is making such a conscious effort to reinvent its personal good care brand?
"We're able to have switched directly from Ayurvedic Principles to Himalaya Herbals in 2001 itself", said Soumitro Banerji, Exec Vice Chief executive, Consumer Products, Himalaya. "However, it was a transitional 'handholding' period where it was necessary for consumers to relate the Ayurvedic Ideas range with the Himalaya brand name". He insists that the umbrella branding remains and this time around, the goal is to create a distinctive "head to toe" brand. The personal care range has 40 products spanning hair care, skin care, body care, health care and oral care.
The complete re-branding exercise and reorientation in the online marketing strategy worked out well and Himalaya is known as one of the best brands in the non-public care segment. Recognising the need to be satisfactory to the affluent yet traditional portion was among the finest steps taken by the company.
1. 3 Usage of information
Having a note that could conjure an outstanding brand image is simple but getting the same across your route of distribution and also to the finish consumer is a Herculean activity. After that getting the consumer buy into your history and use a prduct is even more complicated. This is some thing Himalaya managed to do very well.
"Our brand placement that Himalaya's products are medically tested, efficacious products remains the same, " said Banerji. Directed at the metropolitan audience, the refurbished range has services such as proteins shampoos in the three variants- Normal, Dry out and Oily hair; fruit packs, dirt packs; dental care cream and a nourishing face care cream. The last, the company boasts, is a one-of-its-kind product in the market.
To induce trials with their new protein hair shampoo variants, the company is renewing its thrust on sachets. Also, Himalaya presented a 40 ml container with the theory a consumer would try a shampoo 2-3 times before making a decision whether to do it now.
Scientifically supported data was used to generate trails and equipped by marketing responses which said paths were important for the brand to move on, the task was now to concentrate on informing the buyer these products really work. The first hurdle was the shop who needed to be persuaded first. Himalaya then used information about the clinical validity and other studies to the vendors and helped them understand the usage of its products. The sales characters from markets around the world were published and many research reviews were distributed around them. This helped the vendors understand the veracity of the merchandise and helped them press the products. The exact same reviews and studies were distributed around the finish consumer which helped them get his self confidence over. Thus information was used to ensure that their marketing strategy was hitting the prospective.
1. 3 The global context
Success of Himalaya is also a contribution of these capability to see the big picture or the global context in understanding what their placement should be as well as how to align themselves to the necessity of the hour. This global context helped those to go into and seize a sizable market share in over 28 countries. It may also be attributed to the fact that they focused on a single business strategy. Solitary business strategy has achieved incredible success above the eighty years without relying after diversification to maintain its development and competitive advantages.
1. 4 Global yet local
An adaptation of products, presentation and setting was done to match the local traditions, civilizations and legal techniques. The local ethnical differences were also witnessed. This helped in creating a local strategy to an advantageous stance as the clients found the products appealing the concept and the positioning of a global brand was intact. This shows how a mixture of strategies were used to charm to the neighborhood audience while retaining the global contextual image.
1. 5 Local yet global
Leading marketing strategies of Himalaya are high quality, wellbeing, and uncompromised service with a smile. They could give deliver the products needed by the clients all the time by retaining high specifications and working as a worldwide workforce. All of the decisions in terms of products, product packaging, branding was similar across marketplaces. Customers were guaranteed that the product they were purchasing in stores in Lithuanian market were like the ones bought from NY. The employee policies and HR routines were also maintained to meet up with the global framework and innovations in the pharmaceutical world were monitored and Himalaya designed the strategies of leading businesses to redefine and reorient itself to complement their moves.
1. 6 E-business as part of strategy
As in the current major organizations, e-business is very important for Himalaya's constant growth. In fact Himalaya is one of the pioneers of the companies which have a existence on the World Wide Web. At Himalaya e-business is not simply another function but a critical one at that. It works as a binding factor for many processes and means that deliverables come with time, all the functions are inter connected and consumer's can get in touch straight with the brand, send claims or feedback and have all the information he needs at a point. The website user interface is very beautifully done with the major denominator as the
Leading is a significant part of e-business. One must set up a route before one falls that way. Himalaya decided to go in direction of an web store. This empowered customers who preferred online shopping to buy what they need from the store online. This has been a very successful component in Himalaya's total business, especially during the last 6 years.
1. 7 THE WEB band wagon
There are a number of known reasons for Himalaya's remarkable success, not the least which is its use of the web to supplement its retail occurrence. As Himalaya has been around for 80 years much prior to the Internet was developed and the need to be there online was thought, it possessed to change to the new technology and adapt its technique to suit this new medium. So Himalaya eagerly embraced technological advances in marketing and offer string technology and is currently enjoying the great things about doing business online. Because the Internet's effect on productivity continues to be in the early stages, the best effect on Himalaya's mega-billion sales has yet to be seen, but it is for certain that the volumes is only going to go higher. More than quantities it provided a worldwide presence and varied clientele.
Planning in an corporation that utilizes e-business can be very time consuming. It really is noteworthy that management considers additional marketing and advertising strategies for their web consumers when creating and exposing products. Like the majority of major companies, Himalaya's website that allows one to view products at length before purchasing along with their detailed research accounts, technical data about its usage and other important information. All areas of the products, policies, purchase techniques, and etc are created crystal clear. In e-business it is vital to have something consequently. Though there is no actual human being contact, a person must feel safe making decisions on his or her own.
The managing function of the e-business is exactly what allows everything to use well. When "controlling" an e-business it is important to have professionals that understand how the system works. Himalaya has information technology experts that screen the system to guarantee that the website is functioning properly and provide online assistance should a challenge arise.
They also have identified that integrating the web and offline channel is one of the greatest values and its own offline business would always compliment its e-business strategy. With this integration, leveraging on its significant offline existence to enhance Himalaya's e-commerce procedure, it's one of their biggest durability.
Though the majority of its sale happens at the shop, Himalaya did not only adopt the e-business strategy but also comprehended that lots of online shoppers tested their products and then remembered to pick them up when they strolled in to the store.
Task 2: Marketing strategy options @ Ford
The automobile manufacturing trade presents an interesting and important microcosm of American business all together. Everyone opinion is the fact American manufacturing in general is faltering-that decreases in worker efficiency and product quality, stiff competition from overseas concerns, increasing local labor costs, a diminishing commitment among consumers for U. S. made products, and other factors are creating a subtle change in our whole economy. People in america just don't build the best products, roughly says the existing approach, and the continuing future of the U. S. economy is situated not in processing, but service areas. To the everyday observer, nowhere is this thoughts and opinions more valid than in the American motor vehicle industry. It's quite common knowledge that domestic carmakers are struggling, and also have been for many years. Furthermore, competition and other outdoor makes reshaped the landscaping of the U. S. vehicle market.
Ford electric motor company has already lost market to many far east motor companies like Hyundai, Honda, etc and its own country's rival GM. Ford's management have implemented many strategies to get FORD back to observe and takeover its competitor's position on the market. Nonetheless it is all in vain. Still FORD is making huge loss regardless of its marketing strategies.
Some of the strategies accompanied by Ford in the recent past are,
2. 1 Slogan Rotation
Ford is definitely a far more sales-driven company than most. Ford is definitely a move-the-metal company, even if its legacy as having invented the auto assemblage series has sometimes obscured its marketing creativity.
Ford changes its advertisement slogan and brand strategy every 2 years roughly. The exception is "Built Ford Solid, " which is been effectively implemented in the Pick up truck business.
The automobile maker has come good way in promoting the automobile aspect of Ford's business. Ford's current slogan, "Built for the street Ahead, " adopted the balky, "If You Haven't Driven a Ford Currently, Look Again, " which lasted two years and followed "No Boundaries, " which lasted significantly less than two years. Hence Advertising and brand strategy at Ford has always considered disposable often.
2. 2 Brand led marketing strategy
Another strategy that FORD found in the last five years is the brand led online marketing strategy. FORD acquired debut the Television advertisement through the UEFA Champions Little league final between Man United and Barcelona, to tie in with Ford's sponsorship of your competition.
The advertisement featured the FORD models, like the Ford Concentration, Mondeo, Fiesta, S-Max and Kuga. Each of its model is filmed in a studio room to seem as if it is moving, to focus on the 'kinetic' features of the car design. The advertisement mainly centered on 'Ford kinetic Design' considering supplier will go back to some model-specific advertising, the new brand-led format will feature in the majority of future communications. FORD's global AD firms, Ogilvy London, Mindshare and Wunderman, have been instrumental to make the advertisements a success.
2. 3 Revitalizing the merchandise line up
Ford's management focused more on revitalizing the product fall into line, now marketing and product design have to work together, so the Ford brands register highly with customers once again. "You'd be hard pressed, I think, to find a link that links Ford vehicles along in the consumer's head, or to pin down what Ford automobiles are a symbol of, and we're out to change that, " he contributes.
While the redesign of Ford's F-Series pickup, launched in 2004, has been well-received and has boosted sales, and the redesigned Mustang has been a huge hit with no incentives had a need to sell it, the Ford Five Hundred sedan and Freestyle crossover SUV/wagon have been disappointments.
But customers aren't getting an idea what Ford passenger cars are about any more. Ford automobiles were meant to replace the Taurus and compete keenly against the Toyota Camry, Honda Accord among others which have been boasting to be the best selling sedans on the planet.
Reference: http://www. businessweek. com/bwdaily/dnflash/jan2006/nf2006015_9292_db035. htm
2. 4 The turnaround strategy
Marketing Strategy of Ford Motor Company was built on superior products and that still exists today. First and foremost, Ford concerning transform its marketing work as it do in North America where it they first restored the partnership with traders. The culture was confrontation with the sellers; that was the initial thing they done (to correct the relationship). By integrating open public affairs into marketing, it was individual previously, so by integrating these were able to do things in marketing that they couldn't do previously. Employ the service of a good PR with a good budget in marketing and make an effort to see that it takes care of. Ford can bother making a choice among the following ways of re-enter the market. Those strategies are as follows
Reach The Customer:
Ford has to pursue a person engagement strategy to try and create value by transferring valuable competencies that the client must its design. Especially n the recessional times, customers are incredibly choosy and have so many preferences like high petrol efficiency, safety, good deal, etc. The following tips may be used to position its product offering to match the needs of the consumers. This helps them to take on indigenous opponents who lack those competencies and products. Bu like the customer in the value creation process and by transferring differentiated product offerings, Ford can practically reach the customer.
Innovation Strategy:
Accordingly, Ford should try and develop a centralized product development function which is aimed at creating models for the future. Opt for customization of the offering according to the neighborhood customization requirements and online marketing strategy, this tends to be rather limited by scope. Ultimately, generally in most international companies the top office retains limited control over marketing and product strategy to work towards innovation and change.
International Strategy:
An international strategy is practical if a company has a very important competence that indigenous competition in foreign market lack if it faces relatively weak stresses for local responsiveness and cost reductions. In such circumstances, the international strategy can be very profitable. However when stresses from local responsiveness are high, companies pursuing this strategy miss out to those that place a larger focus on customizing the merchandise offering and market strategy to local conditions. Furthermore, because of duplication of the production facilities, companies that go after a global strategy have a tendency to suffer from high operating costs. These discussed point makes the strategy unacceptable in manufacturing companies where cost pressures are high.
Global strategy:
A company going after global strategies concentrate on increasing success by reaping the price reductions that come from experience curve results and location economies; that is their business design is based on pursuing an inexpensive strategy on a global scale. The development, marketing and R&D activities of companies seeking a global strategy are concentrated in a few favourable locations. Companies seeking global strategy try not to customise their product offerings and marketing strategy to local conditions because customization, which involves shorter production, works and then duplication of functions, increases costs. Instead they choose to market a standardized product worldwide so that they can reap the utmost benefits from the economies of scale that underlie the knowledge curve.
This strategy makes most sense when there are strong pressures for cost reductions and demand for local responsiveness in minimal. Significantly, these conditions prevail in many commercial goods industry.
5. Transnational strategy:
The strategies that we have just looked at all have downsides. A global strategy can increase costs and put a business under hazard if low priced competitors emerge. A global strategy can give a company a low cost advantage, however the strategy might not exactly work if customers do not appreciate and value internationally standardized products and instead choose the more custom-made or differentiated products of competitors. What strategy can a corporation pursue, to avoid these problems? That is one of the most complicated questions that large global companies are grappling with today. Company like FORD are trying for decades to create the "perfect" strategy that will give them a competitive advantage in the global area. Ford has regularly changed technique to try to increase its profitability; so far, it has not been successful, announcing huge loss in 2001 from failed global projects. Even though perfect strategy will be specific to each company and must be aligned to its particular business model, some experts do offer recommendations for companies wanting to maximize their profitability in the global market place.
2. 5 Conclusion
Though it is very easy to propound solutions to the issues that Ford has seen, it is apparent that the brand lacks action and is known as 'worn out. ' Therefore the primary concern of Ford is to create a set of response able processes that would continually exploit its cost economies and location economies, transfer distinctive competencies within the business and focus on pressure for local responsiveness. It should also check out maintaining that the move of skills and product offerings to suit its impressive and qualitative brand image. Still there are people who trust your brand and Ford has to ensure they are satisfied or as they say when you have no fans, your career is as well deceased.
References:
Charles W. L. Hill and Gareth R. Jones, Strategic management, An integrated approach, Sixth release, Indian Adaption(2008)
http://www. allbusiness. com/marketing-advertising/advertising/3877648-1. html
Task 3: Implications of changes in marketing environment for organizations
As the adage should go, change is the thing that is constant. Preventing the changes is not always possible. How organizations react to change and adjust themselves decides the success or survival for future. A glance at the airline industry around the world shows how change effects the surroundings forcing marketing ways of be molded to suit the new guidelines of the overall game. A highly volatile market increased the uncertainties which made it more risky to take risks. The difficult times seem to be to be over but the effects remain lingering throughout. The aftermath of the financial tsunami has kept few survivors. They are companies which developed methods and marketing strategies to survive and along the way win. This capability to adapt to the changing environment is exactly what ought to be the path to success.
3. 1 Air travel Industry Introduction
One of the market sectors which endured most in this downturn is the airline industry. Across marketplaces financial loss, currency markets debacles, increasing gas surcharge, etc. reduced the probability of profiting. Mounting obligations credited to increased fuel charges, non-cash exceptional charges, decreasing frequency in travel aided by technology that threatens to diminish the need to cross waters to meet and travel thrust marketing brains to think harder and innovate. Companies with profound pockets could stand up to for a while but finished up increasing the prices and transferring the responsibility to the finish customer. Pushed to the wall structure, companies responded by consuming out of every other's share while trying hard to sustain theirs. This resulted in a cutthroat competition and with new offers, savings, plans arriving everyday, the client had the decision to select from EasyJet or BA depending on what would save him more and fit his budget. To examine the impact of these changes why don't we go through the situation with the aid of Porter's general strategy on the measurements of strategic range and strategic durability and how airline industry responded.
Usually the rules of the game in the air travel industry can be categorized into two: the differentiator who has the distinctive features, services, conveniences and eventually ends up with high price tag and then there is the cost-leader wedding caterers to the mass portion of the populace who don't mind comparatively lesser comforts as they would be paying a much lower price. Both the segments cater to the perceived consumer value about the service. Across the world customers found themselves queuing up more regularly in the price leader's aisle for touring than the differentiators for obvious reasons. There were forget about approvals for extravagant bills published nor was the paycheck conducive to pay the differentiator. This found the differentiator stress as these were losing altitude which could only signify more empty seating than stuffed ones. Therefore the reactor strategy was sought out and the response was to lessen prices, boost the offers on the assistance promising which the differentiators believed they could continue steadily to attract their concentrate on segment. To some extent this became successful but the regularity of the travel or the probability of repeat travel had not been that good.
3. 2 UK Airline industry scenario
In UK the changes have been quick but visibly remaining the scope for improvement and made the vertical sojourn harder and competition higher. Virtually all airlines incurred huge loss and some continue steadily to do so nonetheless. EasyJet observed its gains drop approximately 65% over the last couple of months and was expected to drop even more. Here's when EasyJet found focusing on what customer's attitude is towards the company, its service category and the competition. After analyzing the appeal of potential goal marketplaces, EasyJet responded by softening the impact of growing fuel costs and it spent some time working. EasyJet's revenue per seat rose 11% in the year to September, to 50. 47. Exchange rate actions (easyJet benefits from a strong euro) flattered the assessment but even the 4% increase at frequent currencies is a exceptional final result in a downturn. By changing the prices of the ad-on hand bags carried by travellers which customer's didn't head easyJet was successful in ensuring that its planes were 85% full. This shows how by learning customer's attitudes and choices companies can work towards attaining their proper goals by focusing on the tastes and the recognized value. Other companies like BA, Iberia have responded with mergers and acquisitions to seal a safe market in the foreseeable future. Though the airline firms feel safe the focus is still on how soon they will be in a position to limp back again to normalcy.
3. 3 Where integration is the key
Private label level of popularity is challenging the reign of popular brands departing their manufacturers in a problem. Sales of own-brand goods in its stores are increasing at double the pace of those of branded products. How should marketers of the famous brands insulate and change the adversity, to recuperate is the top question.
Brands around the world have moved on to adapt or perish method. A revolution growing the landscape has forced firm's across the world move ahead from brands which may have been commanding high price pent on branding, marketing, attractive packaging to own, in-store brands that contain given almost the same quality yet remaining with in the price range where the consumer doesn't brain paying as long as he gets the quality he is planning on. In store brands dot all the shops across categories. Western european brands have responded greatly by discounting their products, offering more for the same prices or less. This helped only attracting consumers who have been looking for brands but were guarding their money. We were holding marginal acquisitions but were good enough for the brands to stop their downfall. But they soon realize this cannot be one for an extended run.
3. 4 Diversification
To answer fully the question if indeed they should decide for diversifying and producing more brands or change their present offering to match the consumer's needs, you need to check out what the buyer wants. People's attitude has changed. It isn't a bargaining game any longer between which brand consumers are going to get. It s the particular brand has to offer the consumer as the strings are tighter and the costs are lower. What do manufacturers do to attain the objectives of the consumers?
The solution appears to be in adapting the brands to match the consumer's attitude and requirements. The new world of change need not unsettle us, as long as the manufacturers are prepared to understand the finish consumer's requirements and rethink their products and services and means of coming to advertise. The secret seems to be in making the customer stay dedicated and trace his or her steps back to buy our products. That is defined as "an work of binding the client - intellectually or psychologically - to a course of action. " If something or service matches buyer's needs at the first occasion, and emerges at a fair price, that buyer has compelling reasons another for further, in a search for "value" that suits him. The "value" must be ongoing and regularly appointment the customer's targets. The concentrate is not merely on the tangible however the intangible areas of customer psychological bonding which supercedes the quality or price for example.
3. 5 Factors effecting Consumer Psyche
The simplest way in approaching the buyer is to keep up the basic differentiators that impact the consumer's psyche.
Just excellent quality is no longer a differentiator
Low prices by itself are not a differentiator
Excellent service by themselves is no longer a differentiator
Customer satisfaction is go
In order to attain customer devotion the manufacturers and marketers should work on a concoction that provides every one of the above four things in the right mix and allows them, not only to meet but to go over the goals of customer's over the segments.
On the other hand developing new brands that could directly cater to the changing psyche of the buyer could also be done easily. This would give more overall flexibility to the internet entrepreneur as well as make it much easier to communicate the subject matter to the end consumer instead of molding a preexisting famous brand to suit the change. Take the case of 'Ola' which is a premium coconut oil brand in India for example. In case of premium positioning the company found that 'Ola' was placed safe enough however the volumes were a challenge. This is when it began to look at the mass market. Rather than dropping prices or tampering the existing brand image of its advanced brand, it found an advantageous target - volume sales for the mass market and launched a different variant called 'Super' directed at the mass audience. This also promised minimum volumes to keep carefully the firm heading which allowed them to have the premium brand stable. Though this started as a survival strategy in another of the best consumer markets, as it happens to be the most profiteering as it satisfies all the four components along with few others and extends to out to consumers across segments.
This would also mean that the famous brand can maintain two different categories and experiment. What the manufacturers have to be particularly alert to is the reason why, how, when, and also to whom to provide extraordinary perceived consumer value.
3. 6 Conclusion
Change or die is the code of honor. Companies must recognize that increases in the price of products outpaced commodity inflation over the last year, which has led to higher gains. However, previous price hikes didn't completely cover escalating creation and commodity costs. Product prices "are still well above historical averages, " which is a negative sign. However the fact of the matter is that the end consumer is blood loss and cannot squeeze more for your brand if you don't give him/her a combination of the factors he is looking for which are reviewed above. Aiming at customer commitment is exactly what differentiates the brands that survive and brands that collapse in the downfall. Companies that are able to get what they want from the buyer, who in this case is a deeply effected by financial market strokes is to be ground breaking and convincing him that it's ok to invest on your brand as you have molded yourself to lessen your costs, increase the quality and that new Ford is better than the last one. All brand manufacturers should understand that post recessional hurdles are mainly due to trust and the simplest way to cross them is to get it.
