Strategic Analysis Of The External Environment Currently Facing Gillette Marketing Essay

Strategic Analysis Of The External Environment Currently Facing Gillette Marketing Essay 1. Abstract Purpose The objective of this report is to conduct an extensive analysis of the external environment and evaluate the key drivers influencing the corporate strategic management of Proctor Gambles brand, Gillette. It will concentrate on identifying, categorising and prioritising the key issues facing this organisation both in the macro-environment and the micro-environment. Methodology The tools used in this report to provide an external analysis of the key environmental forces and competitive drivers include; analytical frameworks such as the PESTEL framework, and Porters 5-forces analysis. In addition an analysis of strategic groups and sources of competition will be included. Findings The influence of political, economic, social, technological, environmental and legal drivers in the macro-environment, combined with the issues from the micro-environment, provide a series of implications for competitive action and strategic choice in the future. In the current external environment, social-trends and technological aspects play a vital role in a companys success in the Shaving Razor industry. Value The report utilises appropriate theory, conceptual frameworks and academic literature on future strategies and scenarios for Gillette from an analytical perspective. 2. Introduction This report will define Gillette as assembling and marketing its products within in the Shaving Razor industry, a distinct category of the Beauty Personal Care sector. Regardless of the period of growth the industry, valued at  £523 million, has benefitted from in recent years, Mintel (2009) suggested that sales of shaving and depilatory products had dropped by an estimated 3%. (Lee, 2010) proposes the industry faces cash-conscious consumers who may be seeking to reduce the cost of expensive razor blades or ensure they last for a longer period of time. However, (Bottomley, 2010) suggests a different reason for the decrease, even the most gadget- obsessed male is likely to question the value of on-board microchips and precision trimmers, when there are simpler, high-quality products available for a fraction of the price. Another point of view from (Jefferson, 2010) who suggests perhaps it is the functional approach that companies within this industry present to customers, connectin g with customers on a more emotional level will remedy the predictable perceptions of two blades are better than one, three blades are better than two and so on. The object of this report is to provide a structure focusing on future trends that can help to analyse strategic choices available to companies in the Shaving Razor industry. It will provide an extensive external environmental analysis of the current Shaving Razor environment with a future-trend perspective, using the PESTEL (political, economic, social, technological, environmental, legal) framework (see, for example, Brooks et al., 2005, p.7) as a suitable analytical tool for the macro-environment. The report will draw out and highlight the key drivers which are most likely to influence the future development of the industry. The report will then focus on Porters five forces framework, which (Porter, 1980) referred these forces as the micro-environment, which will then be used to establish the competitive intensity and therefore the overall industry profitability. Finally the report will analyse strategic groups and sources of competition within the Shaving Razor industry. 3. PESTEL Analysis of the Shaving Razor Industry The external environment consists of the external environment forces which may influence an aspect of organisational activity. These are defined within six broad-ranging sections with the acronym PESTEL, political, economic, social, technological, environmental and legal. A full PESTEL analysis of the Shaving Razor environment is provided in Table 1, however the report has identified, categorised and prioritised the key issues facing the industry from the macro-environment below. Among the key conclusions of the PESTEL analysis are the following: With consumer purchases increasingly dependant on the often neglected topic of social responsibility, (Shayrn, 2009; Trainer, 2005) suggest that over the coming years, even in todays tough economic times, consumers demand an urgency about making their communities more environmentally friendly, fairer and sustainable. In the future, as environmental issues become increasingly reported in the media, (Kraus, 2005) implies the consumer will not only consider the impact their purchases have, but having a corporate social responsibility will be compulsory to remain competitive. In the Shaving Razor industry, this refers to using environmentally-friendly materials, long-lasting performance, environmentally-friendly packaging, CO2 emissions. See for example, Bics new environmentally friendly shaving razor (BicEcolutions, 2010). As the industry provides an essential product, that the majority of males require on an international basis. It is common for companies in this industry to operate and distribute globally. (Anwar et al, 2009) suggested that each country has individual rules on taxation and custom duties which may distort the companys pricing policies, a contradiction in pricing may cause people to purchase stock in bulk from countries with minimal price and black market the companys products, which would have a negative effect on profitability and brand reputation. The Shaving Razor industry take advantage of around a 4750% mark up according to (Poulter, 2009) who suggests that insiders have revealed that replacement razors blades cost only 5p to make yet are sold for around  £2.50 each. This extortionate mark-up on compatibility costs has caught the attention of the Office of Fair Trading who are currently investigating the issue. (The Office of Fair Trading, 2010) refers to this type of issue under the name compatibility costs, these purchase decisions lock a consumer in with inexpensive original equipment (durables) in order to purchase follow-on products which a substantial profit is made on (consumables). The high value-to-size ratio offered by the Shaving Razor industry has triggered the products offered by Shaving companies to become the worlds most shoplifted product according to (The Telegraph, 2003; BBC News, 2010). Kopalchick and Monk (2005, p.70) proposed this caused several companies in the Shaving Razor industry to take action and incorporate Radio-Frequency Identity (RFID) tags, which automatically tracks the products location when it is removed from the shelf. However, with the technology available today, e.g. GPS systems; it would be possible to track the product from leaving the shelf to its eventual disposal, which has led to ethical disputes regarding personal privacy according to (The Star Phoenix, 2006). There is an ongoing legal battle within in the Shaving Razor industry, examples of this are evident in (New York Times, 2004, p4; Grand Rapid Press, 2003, p11; BBC news, 2006). The series of disputes refer to company slogans, advertising campaigns, design patents regarding razor heads with more blades and trademarks according to (Solley, 2005). Each legal battle has costs both in money, time and to some extent brand reputation. The UK government has ordered an increase in value added tax (VAT) from 17.5% to 20%, this will take place on the 4th January 2011 (HM Revenue Customs, 2011). The increase will trigger an increase in material costs, meaning a higher price needs to be charged to customers in order to maintain the same profit levels per unit. According to (The Guardian, 2010) several companies have already made plans to increase their prices and many companies are waiting to see what action competitors take, while some companies have chosen to absorb the increase. (The Western Mail, 2011) reports that many companies believe that if they absorb the VAT increase, they will attract more customers and be able to compete more effectively in the marketplace. This suggests that Shaving Razor companies who absorb the VAT increase may experience more increased custom than those who choose to pass on the rise in costs to customers. Political Economic Social Technological Environmental Legal Each country has individual rules on taxation and custom duties which may distort the companys pricing policies. Contradiction in pricing may cause people black market the companies products.a The VAT increase from 17.5% to 20% will raise material costs throughout the industry and the UK.b Continued growth trend in industry value ( £523 million), however estimated 3% decrease in 2009.c Recession had minimal effect on spending habits within this industry, few people have spend less on shaving products. However, value of sales has dropped, due to heavy promotional discounting.c Price increase due to high demand in premium disposable shaving systems. d Brand loyalty is high within the industry, however one in ten users experiment with new brands and formats. Quality and performance are the key factors relating to whether the user switches to the new brand or format.c Cultural and religious factors that prevent people from shaving. In addition, the media popularisation of Movember, a fund-raising event to raise money to fight prostate cancer.e Demographic changes e.g. the increasing aging of population, who statistically shave less often.f Changing social attitudes. Rise in male grooming sales suggests men are more conscious with the way they look.g Introduction of high-end products last longer, meaning they have to be replaced less frequently, reducing sales.h High-quality premium product with additional USPs e.g. indicator that tells customers when blades need to be replaced; means a higher price can be charged.i Use of JIT and ICT within industry can reduce wastage and ensure the manufacture is more efficient.h Consumer purchases increasingly dependant on the often neglected topic of social responsibility.j The disposal of the dangerous razor blades is a key issue, previously Blade banks were provided as promotional material. It is a joint responsibility between manufacturer and customer to ensure the dangerous affect to the environment is minimised k Depilatories A Possible Threat to Shaving Systems.l There is an ongoing legal battle within the Shaving Razor industry. The series of disputes refer to company slogans, advertising campaigns, design patents regarding razor heads with more blades and trademarks.m Replacement shaving razor heads have become the worlds most shoplifted product.n Many companies within the industry have incorporated RFID tags into packaging to automatically monitor products from shelf to disposal, however this has led to ethical disputes regarding personal privacy.o Office of fair trading are investigating the high compatibility costs currently charged by companies in the industry., putting the present 4750% mark-up at jeopardy.p Sources: a(Ricciuto, 2001); b(The Guardian, 2010; HM Revenue Customs, 2010); c(Mintel, 2009); d(The Times 100, 2010); e(Mandal, 2003); f(Gale,2008); g(Verdon, 2007); h(Greb, 2009); i(Kruger,1998); j(Shayrn, 2009; Trainer, 2005); k (Kostigen, 2008) l(Global Industry Analysts, 2010); m (Solley, 2005; New York Times, 2004, p.4;BBC news, 2006) n(The Telegraph, 2003); o(The Star Pheonix, 2006); p(Poulter, 2009; The Office of Fair Trading, 2010). 4. 5-Forces Analysis of the Shaving Razor Industry Porters five forces framework can enable companies to analyse key forces that will affect the industry from the micro-environment and determine competitive intensity and consequently the overall industry profitability. According to (Porter, 1980) the five main forces include three from horizontal competition: threat of substitution, threat from established rivals and threat from new entrants. The two remaining forces are from vertical competition: bargaining power of suppliers and bargaining power of customers. The diagram below identifies, categorises and prioritises the key issues facing Gillette in the micro-environment. A more detailed exposition of the competitive intensity and industry profitability follows in the next sections. Diagram 1 Key Drivers facing Gillette in the micro-environment 4.2 Threat Of Substitution The level of threat from substitution depends on several factors, the key factors are; relative quality and price, customers willingness to substitute and the costs involved with switching to a substitute. In Gillettes case the main substitutes would be in the form of electric razors, straight traditional razors, depilatories and the option of not shaving. The threat of substitution from electric razors is minimized as Gillette owners, Proctor Gamble, have an arm in this industry with their successful brand Braun. The (Chain Drug review, 2008) suggests that older men tend to prefer electric razors; however the younger generation would lean towards purchasing wet-shaving products which are offered by Gillette. This could be interpreted that there is a potential reduction of the threat of substitution with electric razors in the future. Another substitute is the traditional straight-edge razor. This type of product operates in a very niche market. According to (Smith, 2010) these types of shavers have been fading in popularity due to their dangerous nature, suggesting the threat from this substitute is minimal. Depilatories are chemical agents used to temporarily remove hair at the skins surface. According to (Tuckington Dover, 2007) depilatories offer a smoother skin surface than shaving, however only 1% of American women use such products. It is also suggested that this is due to the fact depilatories are expensive, slow and irritating to the skin. The alternative substitute of not shaving is often combated by the industrys clever marketing techniques, which often suggest it is not socially acceptable not to shave. (Cavallaro, 2008) suggested methods and techniques in which are most effective to market products to men; these methods are used by many companies to advertise effectively. (Birchall, 2009, p.9) suggested Gillettes recent advertising campaigns were framed as an affirmation of body shaving as masculine. The messages portrayed through these advertising campaigns are manipulated to benefit the company, and draw customers away from purchasing substitutes. 4.3 Threat From Established Rivals The intensity of the rivalry from established competition is reliant on; the structure of competition, industry costs, degree of differentiation, switching costs, strategic objectives and exit barriers. The industry Gillette operates in is already unattractive; it contains many powerful and aggressive competitors who have high stakes in staying in the segment, due to high exit barriers. These conditions lead to frequent price wars, advertising disputes, and new, innovative product introductions, making it expensive for Gillette to maintain a high market share. The threat from established rivals is limited by the strong image and brand loyalty Gillette maintains. In addition, Gillettes innovative research and development department keeps the industry thriving by generating differentiation and technological advances. Their success has caused established rivals to borrow from their $1 billion research and development efforts (McCullough, 2003). 4.4 Threat From New Entrants The level of threat from new entrants to the Shaving Razor industry is established by; economies of scale, investment requirements, customer switching costs, access to industry distribution channels, access to technology, brand loyalty, chances of retaliation from existing industry members, government regulations. In the Shaving Razor industry, (Mintel, 2009) suggested there are high levels of brand loyalty present. This makes the industry very unattractive for new entrants, as they would be directly pitting against several major competitors in an oligopoly. Gillette minimises the threat from new entrants by efficient usage of economies of scale advantages, access to the industrys distribution channels and access to technology enhancements. Another key factor affecting the threat from new entrants is the risk of retaliation by Gillette, which could be substantial and could include mergers or acquisitions, an example of this is when Proctor Gamble acquired Gillette for  £30.2bn (BBC News, 2005). Entry to the Shaving Razor industry also involves high set-up costs and exit barriers are also high, reducing the probability of successfully securing finance from external sources, increasing the difficultly for new entrants for this industry. 4.5 Bargaining Power of Suppliers The negotiating power from supplies it determined by; concentration of suppliers, supplier branding, profitability of suppliers, threat of suppliers forward integrating into industry, buyers threat of backward integration into supply, buyers level of importance to suppliers profitability, switching supplier costs. As Gillette manufactures its own products, there is minimal effect from this source. Gillette maintains a win-win relationship with its suppliers of raw-materials as they can be obtained from anywhere and little supplier switching costs would be incurred. (Evans, 2008) suggested that Gillette identifies suppliers with a proven ability to meet its specifications. Once a supplier is selected to participate, Gillette expects them to produce a pre-production planning system to assess the suppliers capability to deliver Gillettes specifications. This high level of capability Gillette demands from its raw-materials supplier shows that he supplier has little power in the business relationship and there is minimal threat. In addition, as a large global brand it can establish a powerful supply-chain management model and global competitiveness enables suppliers prices to be driven low. 4.6 Bargaining Power of Customers The level of bargaining power from customers relies on; the concentration of competition, differentiation and unique selling points, profitability of companies, threat of backward or forward integration into the industry, cost of customers switching to competitor. Buyers in the Shaving Razor industry possess strong and growing bargaining power. With Wal-Mart as the main retailer for Gillettes products, the conclusion drawn could be that the potential profitability can become shortened as Gillette has a high reliance on Wal-Mart and similar large retailers for a large proportion of revenue. (DePamphilis, 2010) outlined suppliers such as Gillette have been under considerable pressure from retailers, due to the on-going growth of Wal-Mart and industry mergers, for example Sears and Kmart. DePamphilis then goes on to suggest Wal-Mart is responsible for 13% of Gillette income is 2005, suggesting a high-reliance on the retailer for profitability, increasing the threat of bargaining from customers. The buyers power increased due to the fact Shaving Razors represents a significant fraction of the retailers costs and the products are undifferentiated. In addition, the buyers in this industry are price sensitive. (Chopra et al, 2010) outline that Gillet tes pricing power is being further eroded by channel migration and increasing consumer resistance to paying significantly higher prices for innovation. 5. Strategic Groups in the Shaving Razor industry A key concept used in strategic management practice, (Hunt, 1972) defined  strategic groups  as grouping companies within an industry that have similar interests, business models or similar combinations of strategies. Gillette faces intense competition in most markets, its products compete with highly marketed, well-known, branded products. The Gillettes performance in this industry depends on the brands ability to adapt itself within this kind of competitive environment. Price-Quality Segment Name Of Parent Co. (Brand market share for Gel 7 oz$/Unitsin parenthesis) PG (Gillette)  [1]   PG (other brands) S.C. Johnson Johnson Johnson Beiersdorf AG Perio Super-premium Neutrogena Razor Defense Gel  [2]   (2.5/1.5%) Premium Gillette Fusion Hydra Gel (14.3/11.5%) Aveeno Gel  [3]   (10/6.7%) Mid-price Gillette Mach 3 Gel (4.5/4.4%) Gillette Series Gel (20/22.9%) Edge Gel (34/35.9%) Nivea Gel (6.5/6.2%) Economy Noxzema  [4]  Gel (1.9/2.7%) Old Spice  [5]  Gel (0.5/0.7%) Barbasol Gel (0.4/0.6%) Gillette, Bic, Shick-Wilkinson Sword King of shaves Conclusion Opportunities and Threats References Porter, M. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Greb, E. (2009) Is JIT Manufacturing the Right Prescription? Pharmaceutical Technology, 33 (3) pp. 72-78 ProQuest [Online]. Available at: http://proquest.umi.com/pqdlink?did=1685062121Fmt=7clientId=29645RQT=309VName=PQD (Accessed: 1 Decmeber 2010). Turkington, C., Dover,J. (2007) The Encyclopedia of skin and skin disorders. 3rd Edn. New York: Infobase Publishing. 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Available at: http://jr3tv3gd5w.search.serialssolutions.com/?ctx_ver=Z39.88-2004ctx_enc=info%3Aofi%2Fenc%3AUTF-8rfr_id=info:sid/summon.serialssolutions.comrft_val_fmt=info:ofi/fmt:kev:mtx:journalrft.genre=newsrft.atitle=Gillette+online+ads+target+increasingly+lucrative+male+grooming+marketrft.jtitle=The+Financial+Timesrft.au=Birchall%2C+Jonathanrft.date=2009-06-20rft.pub=Financial+Times+Ltdrft.issn=0307-1766rft.spage=9rft.externalDBID=n%2Farft.externalDocID=202099065 (Accessed: 1 December 2010). McCullough, M.(2003) Schick shaved off research, Gillette claims: Poised to introduce a razor with four blades, the company faces a lawsuit alleging patent infringement, The Vancouver Sun, 11 September [ONLINE]. 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(2009) Mergers, Acquisitions, and Other Restructuring Activities:  An Integrated Approach to Process, Tools, Cases, and Solutions. 5th edn. CA: Academic Press. Hunt, E. and Schwartz, J. (1972) A critique of economic theory: selected readings, CA: Penguin. Datta, Y. (2009) The U.S. Mens Shaving Cream Market: A Competitive Profile, 9th Global Conference on Business and Economics [ONLINE]. Available at: www.gcbe.us/9th_GCBE/data/Y.%20Datta.doc (Accessed: 1 December 2010). Chopra, S., Kapoor, S., Munish, S., Mathur, A., Sharma, K. and Duggal, S. (no date) Advanced Sales Management on Sales Management Practices in Gillette, India. Available at: http://www.scribd.com/doc/42913455/Gillette (Accessed 1 December 2010) Smart, A., Bunduchi, R. and Gerst, M (2010) The costs of adoption of RFID technologies in supply networks, International Journal of Operations Production Management, 30(4), pp.423 447. Available at http://www.emeraldinsight.com/journals.htm?issn=0144-3577volume=30issue=4 (Accessed 1 December 2010.)

City Ordinances and State Laws :: Expository Essays

City Ordinances and State Laws In the spirit of civic duty, I thought I'd inform you, the responsible citizen of Mount Vernon, of some of the important laws that we live by. Combining my copious amounts of free time with my love of the mundane, I dug through our city's ordinance code as well as state law to unearth some rules we all need to know about. First off, let it be known that many of these crimes come with penalties. State laws can carry heavy prison time while city ordinances come with fines up to $500. Bearing this serious business in mind, let us begin. We all know not to start fights or provoke violence, but there are other more important things to know about. For instance, never ever harass someone via a telegraph. Don't even think about it. In fact, don't "circulate a report or warning" of an epidemic, either. Imagine the pandemonium that could result if you convinced them that your incessant smoker's cough could spread syphilis. State law prohibits these things. Public nuisances, usually found in the city code, are my personal favorites. Do not, for goodness sake, keep flammable, "unreasonably" offensively smelling, "noisome," toxic or otherwise objectionable stuff on your lawn. Leaving exploded gas station burritos in your dorm microwave is OK. Furthermore, keeping diseased animals (even if they're tied up) or animal carcasses (even if they just look like they're asleep) is not just a bad idea; it's also against the law. The city's ordinances go to great lengths to protect our beloved streets and sidewalks and the inhabitants thereof. If you cannot find a safe sidewalk to walk or run on in Mount Vernon, you must stay on the left side of the road. No exceptions. Considering tying your sled to the back of a car and riding it around? Don't even think about it. Sled/car combinations are illegal. Thinking about building some kind of device to launch cantaloupes or other large melons at oncoming traffic? Forget it. Shooting things into the street is prohibited. In fact, simply obstructing a sidewalk is a serious offense. Leaving something like grass clippings or a car on a sidewalk is illegal. Waiting more than 48 hours to clear the sidewalk of snow or ice is illegal. Leaving an open flame or unspent fuel on a sidewalk is illegal too. If you encounter anyone committing these offenses, call the police immediately and tell them it is a critical emergency.

Market research 4Ps Essay

In today’s multi-faceted business environment, it is generally agreed that a strong customer-driven marketing strategy can give one an edge over his competition. Designing it, however, did not prove to be so straightforward. It is therefore this reflection paper’s aim to ponder over the various aspects that I have found intriguing and glean insights from them. Firstly is the â€Å"Marketing Mix† aspect, specifically the 4 P’s framework – Product, Pricing, Placing & Promotion. The 4 P’s is one of the best known frameworks for a marketing plan, of which the aim is ultimately to fulfil a basic marketing purpose – Putting the right product in the right place, at the right price, and at the right time. Getting all aspects of this framework is of paramount importance. Miscalculating one could result in disastrous consequences, for example you could be promoting a revolutionary diet plan in a country hit by famine or publishing a textbook after school term has started. In the process of brainstorming for a product, some innovative ideas were eliminated due to the fact that they were deemed unsuitable for the Singapore market. One such example is the ostrich pillow1, a nifty headgear for people to catch a comfy nap anytime, anywhere. Due to its odd shape and Singapore’s conservative culture, we decided that the market might not open up to the idea. The Product itself was good, but the Promotional strategy would encounter difficulties. One of the other teams did their project on space-saving furniture. The end result was that one convertible table/couch would cost upwards of $2000. This is a potential mismatch between Product and Pricing strategies, as the average consumer who could afford such prices would unlikely be living in a house that requires space-saving technology. The Pricing aspect by itself also proved to be extremely interesting, as everyone’s project seemed to unanimously adopt a value-based pricing strategy. So then, what of cost-based pricing? Is it not an effective strategy? With this in mind, I began my research to find out more about it. The classic example cited in this debate is that of Steve Jobs vs Sam Walton, two of the greatest business leaders in history. An interview conducted by Fortune Magazine2 best highlighted the difference between these two extraordinary men and their methods. It is noted that Steve Jobs epitomized value-based pricing by focusing mainly on the product  instead of margins. He said, â€Å"If you keep your eye on the profit, you’re going to skimp on the product. But if you focus on making really great products, then the profits will follow.† Sam Walton, on the other hand, built Walmart around the concept of low margins and high volume, i.e. cost-based pricing. If the margins got above anything that was infinitesimal, he would get angry. Both have built extremely successful companies using entirely different pricing strategies. So why does a value-based pricing strategy seem so much more popular than a cost-based one? Perhaps it all boils down to prestige. Being the boss of a premium brand certainly holds more distinction than say, opening a dollar store. Or perhaps the road to building a company large enough for cost-based pricing to be effective is an arduous task that faces more obstacles in the form of existing industry giants. In any case, it is worth noting that cost-based pricing is in no way obsolete, but simply overshadowed by the recent successes of premium brands3. Another strategy that the class unanimously adopted is Promotional strategy, specifically in social media terms. Facebook appeared to be the prime choice of social media strategy for everyone, and rightly so. A survey conducted in 2011 showed that Singaporeans are the global leaders for the longest time spent on Facebook, clocking 38mins 46secs per session, putting us ahead of countries like US, UK, and Australia . Add that in to the capital limitations of start-up companies, Facebook becomes the logical choice for our promotional channels. A case study on Scoot’s4 wildly popular Facebook marketing campaign gave us further affirmation that this was the right way to go . As for the Placing aspect, the dilemma existed whereby in order to position ourselves as a high street fashion brand, a retail store had to be open at a prime location such as Ion. The rental for such locations, however, would strain our budget even further. To put it in perspective, the rental costs for an Ion level 1 space is $29 per square feet whereas the rental costs for Ang Mo Kio Hub is a mere $19 per square feet. That adds up to almost $40k difference per year for a store of 330 square feet, which is an extremely large sum for a start-up company. We eventually decided that it was worth the risk, but had to make careful budget adjustments to manage our finances. Next issue of interest is the importance of an action plan. Why is an action plan so important? Without an action plan, all we have is a broad strategic plan. Think of it  like making a resolution for a new year – you may state that you plan on losing weight, however you do not add in specific details as to how you are going to do it . A concrete action plan ensures that one stays focused and has a clear idea of what to do and when to do it by. The group that did the project â€Å"Fitting Reality† had an impressive action plan which was both detailed and tailored to account for contingencies. That way, should anything go wrong, there would still be plans to fall back onto instead of the whole project being thrown into disarray. Another particularly noteworthy issue is that seemingly all groups focused on customer acquisition, but few bothered to put effort into customer retention. This is puzzling for one main reason – It is a widely held belief that acquiring a new customer costs on average 5 times more than retaining an existing one. It is therefore wise to invest equally in customer retention alongside customer acquisition, or else it would be tantamount to taking one step forward and two steps back. Some recommended strategies of customer retention include loyalty discounts and membership privileges, as well as constant updates and active engagement with the customers . An area that I found intriguing was the fact that no other groups seemed to conduct a market survey in their marketing plans. To me, a market survey is extremely useful as it helps gauge the future demand of the product. A poor response would allow to us to pull the plug on the project before anything concrete is launched, thereby cutting our potential losses massively. Furthermore, based on the results of our market survey, we were able to effectively segment our consumers as it showed distinctly which group of customers were most interested in our product. Of course, a counter argument could be made that a well-crafted marketing strategy would amp up the hype over the product and turn initial consumer skepticism into enthusiasm. Both arguments are certainly valid, but it seems that market surveys are still very much recommended as an important requirement for initiating any successful business . One of the difficulties encountered by our group in the process of designing our marketing plan is the aspect of controls. We all know the importance of controls. It monitors the progress of our plan and makes adjustments when it deviates off course. So how then do we determine the key performance indicators (KPI) and at what level do we set it? Should we operate on the economist’s definition of bottom-line or the accountant’s  definition? These were all daunting questions that had to be answered. Ultimately, we chose to follow sales projections quoted in our financial plan as the main control. In hindsight, we could have adopted a market share analysis instead as sales figures may not give a wholly accurate representation. For example, if the footwear market faces a sharp downturn, we could be facing lower than expected sales figures but still capturing a large market share vis-à  -vis our competitors. A qualitative control method in the form of customer attitude tracking can also reveal to us what customers feel about our organisation, products and services, thus allowing us to make pre-emptive changes and preserve the brand reputation . The final topic of interest again lies with the marketing mix, but this time with respect to B2B commerce. Two of the groups came up with products that were targeted solely at businesses and within their marketing plan included the conventional 4 P’s. The 4 P’s has been a great framework that has served marketers well for over half a century. But the nature and evolution of B2B commerce as compared to B2C means that it might be time to rethink and reassess the framework for today’s B2B reality. According to a comprehensive study done by Harvard Business Review , the conventional 4 P’s model has been found to undercut B2B marketers in 3 major ways: 1 – It leads the marketing team to stress product technology and quality even though these are no longer differentiators but simply the cost of entry. 2 – It underemphasizes the need to build a robust case for their products’ superior value. 3 – It distracts companies from leveraging on their competitive advantages as a trusted source of expertise. Of course, it is also worth noting that this in no way renders the 4 P’s obsolete. Rather, they just require some tweaking to better suit the B2B industry, such as Motorola’s SAVE framework: moving the emphasis from Product to Solution, Placing to Access, Pricing to Value, and Promotion to Education . As the study so aptly cites, â€Å"B2B marketers who continue to embrace the 4 P’s mind-set risk getting locked into a repetitive and increasingly unproductive technological arms race.† And indeed, as trends change and industry evolves, so too must marketers and our strategies. Bibliography AsiaOne. (2011, September 27). AsiaOne News. Retrieved April 17, 2013, from Science and Tech: http://www.asiaone.com/News/Latest%2BNews/Science%2Band%2BTech/Story/A1Story20110927-301776.html Ettenson, R., Conrado, E., & Knowles, J. (2013, January). Rethinking the 4 P’s. Retrieved April 18, 2013, from Harvard Business Review: http://hbr.org/2013/01/rethinking-the-4-ps/ar/1 FAO, UN. (2012, Feburary 5). FAO Corporate Document Repository. Retrieved April 17, 2013, from Marketing Strategy, Planning and Control: http://www.fao.org/docrep/004/w3240e/W3240E03.htm Gandhi, R. (2012, July 2). Pitney Bowes. Retrieved April 17, 2013, from Keeping Your Customers with Email Marketing: http://www.pbsmartessentials.com/customer-satisfaction/keeping-your-customers-with-email-marketing/ Mind Tools Ltd. (2011, Dec 12). The Marketing Mix and 4 Ps. Retrieved April 15, 2013, from Mind Tools Website: http://www.mindtools.com/pages/article/newSTR_94.htm Senic, N. (2013, Feburary 2). EFFECTIVE CONTENT STRATEGY GUIDED BY THE SAVE FRAMEWORK. Retrieved April 18, 2013, from Zemanta: http://www.zemanta.com/blog/content-strategy-guided-save-framework/ Serwer, A. (2012, December 3). Steve Jobs vs. Sam Walton : Tale of the Tape. Fortune, pp. 59-64. Tan, R. (2012, October 9). Flamingo Singapore. Retrieved April 17, 2013, from Facebook marketing: A case study on Scoot: http://flamingosingapore.com/2012/10/09/facebook-marketing-a-case-study-on-scoot/ UNESCO. (2011, March 10). UNESCO Bangkok. Retrieved April 17, 2013, from e-library publications: http://www2.unescobkk.org/elib/publications/clcneo/06market.pdf Woodward, R. (2011, October 1). Bright Hub PM. Retrieved April 17, 2013, from Project Planning: http://www.brighthubpm.com/project-planning/102438-why-are-action-plans-important-in-business/ Appendix A 1.1 Ostrich Pillow

America “The land of the free and the home of the brave.”...

America: â€Å"The land of the free and the home of the brave.† When I first moved to America from India in elementary school, I heard countless exciting stories. The most important thing I was told was that America is the land to start over, a land full of equal opportunities, and a land of happiness. While growing older however, I started to understand that not everyone is comfortable with foreigners. When I was eight years old, I learned that there will always be people who will not agree with who you are due to your racial background. As a young Indian girl, I was happy to be incorporated into the American way of life. I loved the exotic mixture of people, the food, and the principles. I loved everything about it. Yet, in the end,†¦show more content†¦This was the first time that I felt the wrath of racism. The ignorance, hate, and annoyance that I felt as an eight year old that day scarred me for a long time. When I went home and cried to my sister about it, she told me that there will always be people like that in this world, and that there will be three times that many kind people. Instead of feeling fear and hostility, this optimistic message pushed me forward to be more hopeful. As I grew older, I took all the adversities I faced, and fought against them. I did not just want to ignore my feelings and hide away because I knew that somewhere in the world, there were others fighting the same racist battle. Instead, I began to participate in campaigns against bullying and racism to make a true impact and change in the world. From being ignored as an Indian eight year old to being told that my family did not deserve to live a good life due to our foreign background, racism has followed me throughout my life. As I grew older, I realized that everyone has different opinions on what they believe is important. While some may think that times have changed, and that background has no vital role, others beg to differ. As I mature, I realize that the people who make these hateful comments were probably influenced by their parents. Although these comments have pushed me, broken me down, and made me cry for days, they did not defeat me. At the beginning, IShow MoreRelatedBel Canto Opera Essay2271 Words   |  10 PagesOpera in the Romantic Period was a time when opera changed drastically, especially in the country of Italy. The recognition of singers as being important, almost irreplaceable, in the art of â€Å"bel canto† opera changed the idea of a vocalist in opera forever. A singer’s voice was prized and Italian composers, like Rossini, Donizetti, and Bellini wrote operas and works to showcase the voice, it’s color, range and agility. 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