Apple Inc Marketing Report Essay

Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world.

Introduction

Executive Summary

Marketing Mix Today, Apple unveiled its new product, the iPad. The much publicized rumour about a tablet created by Apple is now a reality. Tablet pc’s have been around for a long time, but what makes the iPad different from the other market offerings? What strategy does Apple have in place in order to make this a runaway hit like its iPhone and iPod product lines? We’ll use the marketing mix (4 P’s) to see how Apple strategized its goal to make the iPad a bestseller.

Marketing Mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

Price, product, place and promotion are the 4 P’s or components that make up a marketing mix.

Product

Apple sells a variety of electronic devices. In 2010, Apple introduced their first tablet, iPad. Ipad is a tablet device that has several features. It looks like a bigger iPhone or iPod Touch and possess a led touch screen interface. Its dimensions are 9.56 in x 7.47 in. It is also very thin and has a battery life of ten hours. This product has the ability to surf the internet, listen and purchase music, watch videos, view photos, read e-mail, read and purchase e-books and execute multiple applications. In fact, the multiple applications available for the iPhone will be fully compatible with the iPad! There will be different versions of the iPad at launch with different hard drive capacities and 3g capability. There will be a 16 GB, 32 GB, and 64 GB variants. Also all iPads will have Wi-Fi and are wireless-n capable. The iPad will also feature the latest Bluetooth profile and will have an on-screen keyboard for inputs.

Price

The base model of IPad (16 GB) without 3g capability is the cheapest at $499, 32 GB at $699, this is I pad and I phone 5 prices and 64 GB will retail for $699. If a customer wants 3G capability they will have to pay an additional $130 on top of the base price. The consumer also has the option to sign up for AT&T data plan that allows them to have access to the internet virtually anywhere and in areas without Wi-Fi connections. The data plan is two tiered: the customer has a choice between $14.99/month for 250mb and $29.99/month for unlimited access. The data plan will also allow the consumer to access various AT&T hotspots for free.

Unlike the iPhone, the customer will not be locked into multi-year contractual obligation and they can terminate it at any time. As far as discounts go, Apple is known for charging higher, premium prices however, they usually offer $100 off certain products to college and University students. They also do special bundles for purchasing certain products during different times of the year. For example, I purchased a MacBook Pro during the summer and they had a promotion that gave me a free iPod and a free printer plus the $100 discount because I was a University student. They have done the same promotion for the previous two years as well.

Place There are multiple Apple stores across the Australia, 20 of them, in which all the apple products will be sold. Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Customers can also purchase the products online in Apple’s official website. Best Buy, one of Apple’s partners, also sells Apple products and also has a large retail footprint in the Australia. Amazon, one of the largest online retailers, also carries Apple products. Apple should gauge consumer demand and produce enough in order to satisfy the market.

Promotion In the past two decades, Apple has become well known for its advertisement. Its most significant ad campaigns include the “1984” Super Bowl commercial, the 1990s Think Different campaign, and the “iPod people” of the 2000s. Other than that Apple Inc. also held press conference to before each products launch debut the products. Several of the major techblogs, forums and websites also invited to cover the event. Given Apple’s track record of heavy promotion and advertisement of its marquee products, the future apple new product has a high probability of getting the same advertising treatment. The Mac, Iphone 5 and iPad is already highlighted on the front page of Apple website and the hour long keynote by Steve Jobs regarding the Mac, IPhone 5 and iPad are also available on the website.

Under Armour Working to Stay on Top of Its Game Essay

Target in men, women and youth. (Under Armour’s diverse product line for men, women, and youth is complex, but the message is simple: wear HeatGear when it’s hot, ColdGear when it’s cold, and AllSeasonGear between the extremes.)

Cultural differences. (Product transcends cultural differences and it is appealing to many athletes, regardless of nationality; Under Armour is puisuing a worldwide scope via regionalization.)

Economic Increase economic condition by improving the sales balance and reducing the seasonal variability in sales, inventory efforts and distribution.

Economic risk. (The degree of economic risk associated with the premium pricing and Under Armour is feeling the effects of the current declining retail consumer market that is affecting the broader economy.)

Current economic downturn challenges Under Armour to compete against major rivals.

Political/ Legal The company works with multiple licensees directly throughout the product development process to ensure that the products are aligned with its brand and quality expectations. Under Armour does not have a patent on any of the materials use in its products.

Therefore, it needs to be cautious in its licensing agreements so companies do not steal its know-how and introduce their own versions.

Under Armour signed a five- year partnership agreement in April 2009 with Cal Ripken, Jr. The intellectual property rights laws and regulations of countries in the global market vary dramatically.

Sociocultural Under Armour mission’s is to enhance the experience for all athletes by applying passion, science, and the relentless pursuit of innovation to create clothing with temperature control, comfort, and flexibility. Under Armour has reached regular athletes, active outdoor enthusiasts, elite tactical professionals, and active lifestyle consumers.

Plank’s shirt truly did regulate athletes’ body temperatures, lending to improved performance.

Under Armour had five lines of clothing made for every climate. Footwear product line designed for high performance through a highly breathable and lightweight design.

Global Under Armour is able to successfully penetrate the sports apparel market by using the image and influence of: domestic and international professional teams, collegiate teams, Olympians, and individuals.

Under Armour’s products are sold worldwide, with the company’s headquarters located in the United States and support offices in Hong Kong and Guangzhou, China.

Under Armour sells products in 13 countries, including in-house distribution in the United Kingdom, Germany, and France. Sales in other Western European and Asian countries are done through partnerships and third-party distributors.

Under Armour do not have to contend with the challenges associated with establishing manufacturing plants in foreign countries.

Technology Plank created a synthetic shirt made of high-tech material that had a snug fit designed to feel like a second skin. Products are offered through the company website. For the first ten years of its existence, the company was able to sustain operations by using “off the shelf” software programs.

Under Armour invested in a new SAP system. This system is a key to the company’s ability to add products to list of offerings, as it allows Under Armour to manage a more diverse inventory and to ship directly to distributors.

Physical Environment When Plank was a football player he grew tired of having to change his damp, heavy t-shirt under his jersey, so he set out to create a unique product that would meet the needs of all athletes.

Though the materials and technology used to create its products are not exclusive, by implementing an effective corporate strategy Under Armour has been able to fashion itself as a profitable business and remain a key player among competitors.

Use Porter’s Five Forces Model to analyze the apparel, footwear, and equipment industry in the US.

Porter’s Five Forces Model Medium threat to new entry Under Armour operates in a highly competitive industry where the dominant competitors have significant breadth of market coverage that is difficult to find an entry point. The main competitors have been advertising and establishing distribution channels, marketing agreements, and recognition for many years. High threats of substitute products

Under Armour’s major competitors are Nike and Adidas with similar or competing product offerings.Under Armour does not have a patent on any of the materials used in its products.

High intensity of rivalry among competitors There is stiff competition in the athletic apparel industry with companies of various sizes employing different strategies in order to attract consumers to their product and brand. The larger companies continuously increase competition by spending large amounts of money on product innovations, advertising, and sponsorship.

High bargaining power of suppliers Under Armour’s customers is willing to pay the price for its products because their products have value in it.

Some of it suppliers are commodities and thus are subject to price fluctuations; for example, petroleum-based materials are used in Under Armou’s products and the petroleum industry has experienced significant swings in price and relative availability in recent months and years.

Under Armour relies heavily on suppliers and manufacturers outside of the United States. Seventy to 75 percent of the fabric used in its products comes from only six suppliers, lending to Under Armour’s weak position relative to its suppliers.

Low bargaining power of buyers Under Armour has developed unique products that consumers value. The customer is willing to pay the price because the Under Armour product has value in it.

Market penetration Market development Essay

Beiersdorf has expanded in each possible direction. Market penetration is demonstrated by NIVEA Lip Care products, which have been extended with new variants. The latest of these (Pearl and Shine) became the market leader in 2003. An example of product development is Visage Soft Facial Cleansing Wipes. Market research showed that women were looking for a new way to clean and tone their skin.

The Wipes quickly took the number one spot in the UK wipes market market. Market development is demonstrated by the launch of NIVEA deodorant into the UK and new markets in Europe.

The UK launch was into a market dominated by Unilever. Following market research, NIVEA entered this market in a more specialist skincaring segment, positioning the deodorant so that it had the same values as the NIVEA cream. Diversification is shown by the development of NIVEA FOR MEN. This built on the strong brand. It recognised that men also used facecare products. The product range included shaving foam and gel, aftershave and moisturising lotion.

Introduction Beiersdorf is the skincare business behind leading brands such as NIVEA, Atrixo and Elastoplast. Beiersdorf’s first product was NIVEA Cream, the first modern cosmetic product, now used by an estimated one billion people worldwide. Beiersdorf has helped to stay ahead of competition over the last ten years by growing the business.

Growth Business growth can be measured by how it increases sales turnover, profits, market share, number and range of products, geographical spread or its number of employees. Businesses can grow from inside, by increasing their product range, or from outside, by acquiring other businesses. Beiersdorf has concentrated on the first route, called organic growth. It has developed new products; established in new countries and expanded market share in its established markets. Its growth focuses on a relatively small number of key brands.

Conclusion Beiersdorf is Europe’s leading skincare company. It has competed effectively by continually growing both its products and its markets.

Ansoff ’s matrix Business writer Igor Ansoff suggested four possible directions for growth. Businesses can grow by selling:

◗ More of their present products in present markets – market penetration.

◗ New products into present markets – product development.

◗ More of their present products into new markets – market development.

◗ New products into new markets – diversification. Ansoff showed these in a table. Any of these, or a combination, can be used for expansion.

Victoria Secret Marketing Essay

Victoria’s Secret is one of the biggest brands in the U. S. lingerie market. There primary business is to sell intimate apparel business focus on comfort and fit with an emphasis on glamor. As of now, Victoria’s Secret specializes in lingerie, swimwear, beauty products, sleepwear, hosiery, etc. This has helped the brand in developing a unique image for its product. Victoria’s Secret parent company is the Limited Brands Company. It is based out of Reynoldsburg, Ohio. Currently operating 1,017 stores in 49 states, Puerto Rico, and Canada, the company annually generates around $4,564,000,000 of revenue in their stores.

With the combination of catalogue and VictoriasSecret. com, generates annual revenue of $1,557,000,000 (Brands, L). The U. S. economic growth has been slow since the recession and is not likely to reach the pre-recession rates any time soon. But there has been some slight improvement in consumer confidence and lower unemployment which should help Victoria’s Secret comparable store sales.

Inflation has been another factor that drives revenue growth for same sales volumes and will aid growth in the brand’s revenue per square feet.

Going forward, the U. S. nnual GDP growth rate and inflation rate are expected to be around 1. 4% and 2% respectively. This gives a nominal GDP growth rate of about 3. 4% for the long term and the apparel sales will continue to shift online due to growing usage of Internet and proliferation of mobile devices. As a result, we make a conservative assumption that Victoria’s Secret’s revenue per square feet will increase by 2%-2. 5% annually, on the account of these macroeconomic factors. Over the past few years, Victoria’s Secret has expanded its product offerings outside the lingerie realm.

They also offer shoes, evening wear, swimwear, sportswear, loungewear, accessories, makeup, handbags, luggage and fragrances. We can expect Victoria’s Secret to continue to add different categories in the future to keep up with the competition. With increased product offerings at the existing stores, the brand’s revenue has increased immensely. Victoria’s Secret launched a new lifestyle brand PINK, which primarily targets college girls. Since Victoria’s Secret’s is limited in this demographic, there is a huge opportunity for expansion. About 25% of the U. S. emale population between 15-34 years falls under the college going age group (Mau,2011). Apart from opening exclusive PINK stores, Victoria’s Secret is adding full line merchandise of PINK to its existing stores, which should aid the growth in its revenue.

With increasing Competition as The Gap, Inc. , Abercrombie &Fitch and American Eagle Outfitters forces Victoria’s Secret to offer more discounts on its basic products. There competitive strength is Strengths of the Digital Marketing strategy that will be implemented include a more cohesive brand image. By updating the PINK segment of the Victoriassecret. om website, a more cohesive brand image will be formed. This will increase brand loyalty among their consumers, and further set them apart from their competitors. Another strength is that the Check In Store option will put them on pace with some of their competitors. Aerie already offers a check in store option on their website, and Victoria’s Secret needs to do the same in order to stay competitive. Abercrombie & Fitch and American Eagle Outfitters both specialize in loungewear, lotions, body products, lingerie, and undergarments and very active in social media as well. Recently, Abercrombie pushed users to “Like” their Facebook page.

By doing this, the consumer would receive a text message rewarding them with free shipping. (Johnson, 2012) Victoria’s Secret currently doesn’t offer any “rewards” via their social media pages. By having a Check In Store option, online consumers will quickly become in store consumers. The success of the Check In Store tool could be measured by the use of metrics. Metrics that could be used include online surveys of consumer satisfaction with the Check In Store option. Victoria’s Secret could also measure the success of the Check In Store option by analyzing the shopping carts.

If consumers are adding items to their shopping carts, but purchasing less frequently than before, they are most likely purchasing the product in store now. Marketing Strategy Roy Raymond, founder of Victoria’s Secret, originally targeted gentleman to make them feel comfortable while shopping for lingerie for gifts. (Secret. Ezinemark. com) Today, Victoria’s Secret’s target market is the middle class woman, or a man shopping for the middle class woman. To attract the younger crowd, such as college age woman, Victoria’s Secret developed PINK. The bright colors, trendy prints and more casual look nspires young teens and high school age girls to shop at PINK.

Victoria’s Secret’s marketing strategy is to capitalize on using high profile models (including famous singers), Social Media (including email and mobile), Fashion shows, Promotional offers, Television commercials, online deals, Semi Annual Sale, coupons and loyal customers with their VS All Access. Victoria’s Secret employed relatable and notable supermodels such as Tyra Banks, Heidi Klum, Karolina Kurkova, Gisele Bundchen and Miranda Kerr as their face for “Victoria’s Secret Angels. They are very selective on who they choose to be an Angel (model) for them. They choose models that are beautiful and have great bodies that appeal to woman and men. By using these models, Victoria’s Secret gives value to the consumer, helping them to believe that they could look that way in their garments or by using their beauty products. Victoria’s Secret creates the idea of beauty and fantasy to their hopeful consumers. Additionally, well known music artists such as Rihanna featured in the swim collection music videos, supporting the success of this campaign (Howard).

Such campaigns have been successful in the past and are likely to strengthen Victoria’s Secret’s brand image in the future as well. This type of attention for famous singers can produce great revenue for them, especially Rihanna who is current and popular amongst the younger generation. One strength of Victoria’s Secret’s current marketing strategy is that they are utilizing all of their social media platforms. They are extremely active in social media such as Facebook, Twitter, Pinterest and YouTube. Their Facebook page is the 2nd most popular retail store on Facebook with 18. million fans. It’s the 18th most popular brand on Facebook (Wakefield, 2012). Victoria’s Secret also relies heavily on the email market. Anytime a new style of bra, underwear, sweats, and beauty products are produced, they “email blast” their customers, by sending them multiple emails a day.

As far as mobile marketing goes, Victoria’s Secret has an application for Android, IPhone, IPad, and IPod, that allows consumers to shop by these mobile devices. They also use texts alerts that are sent directly to a customer’s cell phone. On their website (victoriassecret. om), numerous offers will appear, including $25 off your purchase, free shipping, etc. Currently the website is offering free shipping with a $100 purchase offer code. They are also currently hosting a 20% off clearance items on their website. These types of offers are offer often, creating repeat consumers. Victoria’s Secret All Access is also available on the website that offers information such as makeup tips, supermodel biographies, an insider’s look at the Victoria’s Secret fashion show and news events are shown. VS All Access gives the consumer a more personal experience with the brand.

Victoria’s Secret utilizes annual fashion shows and its supermodels to associate its brand image with beauty and class. Victoria’s Secret holds a fashion show every year that is broadcasted on CBS. These fashion shows are very popular with 9. 3 million viewer, men and women between the age ranges of 18 to 49. The fashion show typically has a $12 million budget (Mau, 2011). Every year, the day after the fashion show has been aired; Victoria’s Secret holds a promotional event in store where shoppers can receive a Victoria’s Secret Fashion Show t-shirt with a $75 purchase.

This event always energizes their business the day after the show has been aired. Victoria’s Secret is active in television advertisements as well. Their Super Bowl commercials are always very popular and sell the idea of Victoria’s Secret, rather than the product. The first Victoria’s Secret Super Bowl commercial lured more than 1,000,000 people to their website, which in turn, crashed and was shut down temporarily (Howard). Having huge sales also excites consumers. Victoria’s Secret produces a huge semi-annual sale, which they hold twice a year.

At this sale, bras and underwear are sorted into pink bins by size. The products are thoroughly reduced, and always draw a large crowd. Victoria’s Secret will often mail out a “free panty” card to their shoppers every month. This is a no purchase necessary coupon. They also email out “$10 off a bra” cards. These coupons really get the customers in the door. (Smith) Another coupon they introduce to the consumers is the scratch offs that offer up to $500 off, but consumers don’t know the amount until they checkout.

Even though this is a no purchase necessary coupon, rarely do consumers leave without purchasing something else. Financial Analysis A way that Victoria’s Secret can improve on profitability is to have a Check In Store Option on their website, along with a Pick Up in Store tab. This currently is not offered on their website, but would definitely be useful for consumers looking to try on the product before purchasing. Their PINK page on the website offers a “Find Which Store Carries Your Team’s Gear” option, but the Victoria’s Secret page does not offer it for swimsuits, bras, underwear, or any other products.

This would be a relatively easy installation for Victoria’s Secret. Stores already keep a continuous track of their inventory levels and what products they have on hand. The only cost of implementing this strategy would be to pay the Webmaster to install it on the website, and to continuously synchronize the Check In Store option with their current inventory levels. Implementing this tool to their website would tremendously help in the sales of products such as swimsuits, makeup, bras and other items that the consumer would prefer to see in person before purchasing.

Several retail stores such as The Buckle and Nordstrom’s offer guest loyalty programs. When a customer comes in and is drawn to a certain type of product, the sales associate or the store manager can let that customer know when more arrives. Nordstrom’s also does personal phone calls whenever a storewide sale is taking place. Victoria’s Secret could benefit from personalizing this shopping experience at their store. If their product selection were offered at all locations, consumers would have an easier and personal shopping experience.

If Victoria’s Secret wants to capitalize on the new brand PINK they need to offer more collegiate schools to their sweat apparel. For example, Texas is our biggest state and PINK does not carry the Texas Rangers, Texas Longhorns, or the Texas A&M line. By offering these lines in all Texas stores, Victoria’s Secret would gain more sales driven by the fans of those sports teams. Victoria’s Secret would also do well in offering a coupon or promotional offer through their social media pages. A “Like this Picture” offer would be appropriate for them to do. This would draw consumers to their social media platforms.

How Subway Restaurant Can Avoid Marketing Myopia Essay

“In 1965 seventeen year old Fred Deluca borrowed $1,000 from a friend Pete Buck and suggested an idea of starting Pete’s Super Submarines in Bridgeport, Connecticut. This franchise was started to help get through college to study medicine, and in the following year they formed Doctor’s Associates Inc. to oversee operations of the restaurants as that franchise expanded. The first Subway franchised unit opened in Wallingford, Connecticut.” (Subway.com/Subwayroot/)

Fred Deluca and Pete Buck advertised on the radio the name Pete’s Subway to they eventually decided upon the name to Subway in 1968 as we know it today.

The first mistake they made was putting the restaurant in a poor location. Their first year of business was a learning experience and a challenge. A year later they opened their second store after realizing that visibility and marketing were some of the key factors to success. Needless to say Subway restaurants have come to be very successful franchises.

In 2012, Subway honored CHEMCO with the Social Responsibility Award.

CHEMO provides hand soap and a variety of other cleaning and sanitation supplies. “The SUBWAY Social Responsibility Award recognizes a supplier that has done the most to create sustainable practices while reducing costs and improving quality in the SUBWAY® system,” (Subway.com/Subwayroot/) Marketing Myopia is managements’ failure to recognize its view of business. (Boone&Kurtz, 2013)

Subway’s mission statement is “Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience.” Some strategies to avoid marketing Myopia are: Dispose of their soda fountain machine, since sodas are linked to childhood obesity. Subway could also hire employees whose English is more prominent. Incorporate a drive- thru. “Subway declares that one of their salads provides five servings of vegetables. While this is technically true, the vast majority of the servings are iceberg lettuce. Unfortunately, this is one of the least nutritious vegetables available. Salads have four grams of fiber.”

(About.com, 2013). If Subways mission is to be the #1 quick service restaurant (QSR) franchise, then no one should have to wait on food to be heated in the microwave. Subway promotes itself as a “healthy alternative to greasy fast food,” and this marketing approach has proven very successful. Studies headed up by Brian Wansink, director of the Food and Brand Lab at Cornell University in Ithaca, NY, concluded that “Subway has acquired a so-called “health halo” — people give themselves “credit” for eating at Subway and indulge in extra treats when they do so.

People also underestimate the calories consumed after eating at Subway, as compared to a hamburger fast food franchise, such as McDonalds”. (About.com, 2013) In the next ten years maybe Subway can deliver just as Pizza Hut and Dominoes. Continue to go Global. Develop a method where they can have free Wi-Fi days. Set up a KIOSK in store where customers can punch in their own orders. Develop a way the food can stay hot without the use of a microwave, perhaps solar energy (About.com, 2013)

Developing the Marketing Plan Case: Gillette Indonesia Essay

I. BACKGROUND

In October 1995, Chester Allan, Gillette’s country manager in Indonesia, was developing his unit’s 1996 marketing plan. Once completed, it would be forwarded to Rigoberto Effio, business director in Gillete’s Asia-Pacific group based in Singapore. Each year Effio received and approved marketing plans for the 12 countries in his region, which reached from Australia to China. Once approved by Ian Jackson, Asia-Pacific group vice president, the overall marketing plan-for the region would be reviewed subsequently, along with other regional plans, by Robert King, executive vice president of Gillette’s International Group.

Allan’s plan projected a 19% increase in blade sales in Indonesia in 1996 from 115 million to 136 million. This seemed reasonable given a 17% increase in 1995 over the previous year. With a population of almost 200 million, Indonesia represented an important country in the portfolio of markets for which Effio and Jackson were responsible. Effio wondered whether investment spending in marketing beyond the 1995 level of 12% of sales might further accelerate market development.

Given the growth rates of Gillette’s business in other Asia-Pacific countries, Effio believed that a 25% to 30% increase in blade sales could be achieved in Indonesia in 1996.

II.
STATEMENT OF THE PROBLEM

How rapidly the Indonesian market for blades and razors could or would expand. Should the Indonesian market be allowed to just move along at its own pace? If so, what would that pace be?

III. OBJECTIVE

Gillette’s mission was to achieve worldwide leadership in its core product categories by developing marketing plan.

SWOT ANALYSIS
STRENGTH| WEAKNESSES|

* The company emphasized geographic expansion along with research and development, advertising, and capital spending as drivers of growth. * Upgrade the market to higher value products and shaving systems.| * The poorer rural shavers cannot afford Gillette products and buy low-price, low-quality brands such as Tiger and Tatra. * Problems with customs clearances could impact the entire manufacturing cycle. * Shaving was still underdeveloped in Indonesia, but the incidence of shaving was increasing.

OPPORTUNITIES| THREATS|

* New-product activity and entry into and development of new markets were considered essential. * Research showed that higher-income, urban consumers were increasingly shopping in supermarkets. Most sales of Gillette’s higher priced shaving products were through these outlets.| * The production team carefully planned the timing of materials inputs. Because of distribution and transportation inefficiencies, the need for buffer inventories was substantial. * with rising incomes and improved Gillette distribution and display, consumers are moving to Gillette.|

IV. ALTERNATIVE COURSES OF ACTION

1. There was increasing awareness of Western grooming practices, especially in urban areas, as a result of exposure to foreign media and the increasing presence of multinational companies and their overseas personnel. 2. The liberalization of foreign investment policy had increased private sector involvement in the economy; the central government focused on developing infrastructure in the poorer regions and on human resources.

V. RECOMMENDATIONS

3. Improving education system ensured that foreign companies would be attracted to the major urban areas, fueling further growth. 4. Gillette headquarters developed television advertisements for use worldwide, with the intent that local voiceovers and local package shots would be superimposed.

Marketing and Micro Environment Essay

Effective marketing incorporates macro and micro-marketing strategies, terms that may not be very familiar to many small businesspeople. They are important concepts, though, that when applied effectively can help to boost advertising results. Even small businesses can learn how–and why–to consider the impacts of macro and micro impacts in their planning and strategy. Micro Environment

The micro environment, as the name suggests, is the immediate environment that impacts a business. The micro environment includes considerations related to suppliers, customers and local stakeholders, including local government agencies or regulatory bodies.

The micro environment can generally be considered the local environment where the business operates and the business owner is likely to be somewhat aware of the impacts that they are faced with. Macro Environment

The macro-environment includes those things that may impact small businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. Using Strategy Effectively

In considering the micro and macro impacts on a business, internal and external factors must be considered.

Businesses use a variety of tools in planning to consider these impacts, including the SWOT, which is strengths, weaknesses, opportunities and threats; analysis; the PEST, which is political, economic, social, technological, and Porter’s 5-Forces Analysis, which is the threat of new competitors, the level of competition, the threat of substitute products, and the bargaining power of customers and suppliers.

Toshiba Marketing Plan Essay

Marketing management can are the ones that designs the customer-driven marketing strategy. A well construct customer-driven marketing strategy consists of market segmentation, target marketing, positioning and differentiation. A marketers’ target is to find, attract, retain and grow target customers by creating, delivering and communicating superior value towards its customers. Firstly, is market segmentation, it is to divide and group them under certain variables in the market segmentation.

MPH uses demographic segmentations to group and divide its customers under different ages, income, gender, occupation, interests and many more.

For example, MPH bookstore divides its customer’s base on different ages like, infant and kids section, primary school student’s section, secondary school student’s section, college student’s section, workers and elderly’s section. After dividing the customers into the different segments, MPH will choose the target market that is by selecting one or more segments to serve or grow.

MPH type of target marketing is differentiated marketing. It provides different categories of book for every different consumer segments.

MPH’s most preferred target markets are mostly under kids and students who are still studying because they are always encouraged by the schools to read more often to improve their vocabulary skills and to search for more information for their assignments. As books are one of the reliable sources that give them more information on what they need to know and to improve their own selves.

MPH not only sells books, it also sells gifts and stationeries that are suitable for everyone. Besides that, value proposition is also important. It is the reason why a customer should buy your products rather than the competitors’ products, is because of the benefits that the customers gets, is more than the cost of the product. Positioning plays an important role in the customer-driven marketing strategy of value proposition.

When people mention MPH bookstores, consumers tend to remember MPH for it is great discounts, member card privileges, book fairs and sales where it is affordable for everyone regardless of age, gender, income and occupation. Furthermore, to design and carry out the marketing strategies there are five alternative concept that are, production concept, product concept, selling concept, marketing concept and societal marketing concept.

For production concept, MPH focuses more on improving its production and distribution efficiency by opening its business in bigger shopping malls like Suria KLCC, Mid-valley and One Utama. The second concept is product concept. Customers will favor products that have good quality, features, and performance. Thus, MPH dedicates its energy on making continuous product improvements like having more choices of books to customers and other resources, which are hard to get in other book shops and it will be always maintain the good condition of the books there for sale.

For the selling concept, customers are not aware of MPH’s products unless the MPH approaches them by undertaking a large-scale of selling and aggressive promotion effort. In marketing concept, MPH’s acheivements depends on how much do they know the needs and wants of its target markets and being able to deliver the amount of satisfaction way better than competitors do, like Popular book shop.

The last concept of the marketing strategy is the societal marketing concept. This concept makes decisions while considering customer’s needs, wants, the company’s desires, consumers’ long-run interests and the society’s long-run interests. For example, MPH shows their understanding towards the needs of its customer’s while also preserving the ability of future generations by having Go Green events and also collecting donations for orphans at a few selected orphanage.

Marketing Mix Apple Essay

In the economy, the marketing has an important position which decides almost the success of the company or the brand. Most of well-known brands in the world also have a good marketing plan; Apple is the best example for having excellent marketing strategies. In this essay, the marketing mix strategy of Apple will be discussed to understand how Apple makes their high value in more details.

The first thing to take account into marketing mix strategy is the product. As already known, Apple is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sell consumer electronics, computer sofware, and personal computers.

Apple provides the customer a wide range of product that covers many field of technology. For instance, the most special invention of Apple is Apple Macintosh, they have many kinds of Mac with many different size and options of configuration. Moreover, IPod was known as the first mp3 player of the world. It is not only the mp3 player but also the symbol of music fashion.

Until now, IPod still affects gradually to market of mp3 players. In addition, in the last five years, Apple has created new-brand market for smartphone with their special product – IPHONE. From IPhone 2G, 3G, 3Gs, 4G, 4Gs to 5G, IPhone always make a big wave to the technology world. That proves products of Apple always have strong range to the technological market. What is more, another invention of Apple that also makes a new move of technology is IPAD. It leads for a new century of tablet. Now IPad may be known as the best tablet in many customers’ s mind. Beside that, Apple gives their customer many other products such as iTunes, accessories, and service.

Second, price also is important part of marketing mix strategy. The price of all products of Apple is now low compared to their competitor’s product’s price but there is a reason for this issue. Apple is the premium brand that does not compete on price. They may dominate the market even though their price may be quite high in some countries. Generally, Apple is proud that their products is union between technology and liberal arts so they not just sell products, they sell art. IPhone, Ipad, and IPod also are symbol of fashion. In conclusion, the price of Apple’s product is made for their customer’s value.

The next is place. Apple’s headquater is located at Infinite Loop, Curpetino, California. They have over 200 retails around the world. Major cities have at least three big stores, more important, the customer not only purchase products but only can test them, receive supported imformation, and they may not buy products if they do not want. This is the key of success of Apple to satisfy their customer.

Finally, promotion create difference of Apple’s marketing mix strategy. Apple just use launching new product to promote their products with their great ability of presentation of Apple CEO – Steve Jobs. Moreover, Apple does not join CES exhibition or any advertising. In addition, Apple made a big unchangeable symbol in customer, therefore, the customer always compare their product to their competitors’s prodcuts. It is indirect to promote for Apple. Beside that, the online Apple store offers free ship for the orders over $50, iTunes gift card, and special discount for refunished products.

In conclusion, marketing mix strategy creates the brand of Apple. There is a wide range of product such as Iphone, Ipad, Ipod, and Mac with suiable price for their prenium brand. They have big network of great retail and unique promotion.

Reference:
www.wikipedia.com
www.marketingteacher.com

Marketing plan for Commonwealth Bank Essay

Commonwealth Bank is the largest of Australia’s big four financial service providers. At present, the Bank offers a range of award credit cards to, both, retail and corporate sectors. Profitable growth in retail and corporate card segments is a key part of the bank’s strategic direction. The main differential between cards is centred around fee structures, with little difference between them that is obvious to most consumers. The award scheme points can be redeemed for air miles, gifts and vouchers.

Under this initiative, the Bank plans to set itself apart from the rest by launching a new credit card, which will allow clients to assign their award points toward a not for profit organisation.

This initiative also creates a whole new paradigm within which cards are compared by prospective consumers, and puts the Bank at the very fore front of the credit card market. This card is unique, and is not currently available from other financial service providers in Australia.

Research indicates there is a high demand for a socially responsible and ethical approach to banking. As such, the new card appeals to the growing philanthropic market in the retail sector. For the corporate sector, it reflects positively on their contribution in the community. CBA will utilise its current market penetration, strong brand image, management experience and distribution channels to ensure the card compliments their existing product suite. Profitable growth, retention of clients and an increased share penetration index have been forecasted as a direct result of bringing the new card to market.

CBA has strong brand recognition. It is voted number 59 in the 2010 Forbes “world leading companies” Top 500 Brands survey (Forbes Magazine, 2010). The bank views its brand as its most valuable asset. Despite CBA having a strong brand image, banks in Australia remain unpopular. Consumers perceive the big four of price gouging; particularly so, as the banks delay or fail to pass cuts in the interest rate. Credit card retention and acquisition, in both corporate and retail sectors, is a key part of the bank’s profitable growth strategy. CBA plans to expand the credit card awards portfolio with a new product. The new card enables retail and corporate clients to automatically transfer award points to cash donations for non -government organizations (NGOs) and charities.

This card is to be branded CBA’s “Community Card”. This positions CBA as a market leader and the first financial institution to introduce such a product into the credit card segment. CBA stands to gain significant competitive advantage. The new credit card stands to assist CBA’s corporate clients with their social responsibility obligations. A Harvard Business Review 2006 article notes “government, activists and the media have become adept at holding companies to account for their activities. Myriad organizations rank companies on their corporate social responsibility (CSR) and, despite sometimes questionable methodologies, these rankings attract considerable publicity.

As a result, CSR had emerged as an inescapable priority for business leaders in every country” (Kramer, 2006) For the personal card holder, it is a vehicle to give back to the community. A survey conducted by Givewell noted that philanthropy is on the rise and estimated that, in 2009 Australians contributed over $1.8 billion total donations (Givewell, 2010). The Australian Taxation office notes that philanthropy is at its highest ever recorded. In the 2010 tax year, there were 4,649,646 recoded deductions for gifts and donations in individual tax returns. In 2009 there were 4,400,786 recorded dedications, a growth of 2.064 per cent in a 12 month period (Australian Taxation Office, 2012)

1.2 Background data on credit card market

In the wake of the global financial crisis, many overseas banks have increased their credit scorecards and are reluctant to take on additional unsecured debt. The Australian credit card market is in good shape when compared with these overseas markets. This is due to prudent lending practices and the government’s credit card regulation reforms. Craig James, Chief Economist for CommSec, notes that we have a responsible population when it comes to credit card debt behaviour. “Aussie consumers pat yourselves on the back – you’ve mastered the plastic fantastic. People are using their credit and debit cards as much as they ever did, but smartly. Aussies are using their credit cards, but paying off the debt by the due date” (James, 2012)

1.3 Competition

Strength in market makes the credit card sector a popular strategic choice for growth in the finance sector. Banks are able to charge annual fees and interest rates that generate a high level of profit. CBA’s main cards competitors are ANZ, Westpac and National Australia bank in the retail market and Amex, ANZ and Westpac in the corporate card sector.

(Reserve Bank Australia, 2012)

Strong competition for business has led to a spike in enhanced loyalty programmes and rewards for new and existing customers. Presently, there are no corporate or personal awards credit cards in the market that allow customers to cash their points as donations, with two main types of award programmes available. The first is the ability to accrue and redeem frequent flyer points for travel. The other allows clients to earn points to redeem gifts such as home appliances, supermarket and, department store gift cards and petrol vouchers. Predominantly, corporate clients opt out of enrolment in awards schemes, due to fringe benefit tax implications for employees. The issue of who owns the points, employer or employee, is one that is yet to be solved. Both external and internal market research has seen a decline in retail clients selecting cards with awards. The majority of customer feedback collected at point of credit card application has confirmed that there is a lack of perceived value in these programmes.

1.4 Distribution

CBA personal credit cards are currently sold through the branch network, online and over the phone. A customer is able to apply for, or upgrade a card, 24 hours a day. CBA utilises the same distribution channels for its corporate clients, with the addition of a dedicated relationship manager.

2.0 SWOT analysis

The following SWOT analysis helps to understand key strengths and weaknesses of the new credit card. It also describes opportunities and threats of the product, in both, the retail and corporate segments. Strengths Weaknesses * Reputation * Industry experience * Existing market share * First mover advantages * Distribution channels| * Costs of bringing new product to market * First mover risks and disadvantages * Little known about not for profit / community groups (not core business)| * Increased market share * Product embraced by customers / Improved customer satisfaction * Improved brand equity and brand loyalty * Increased profits and shareholder value * Enter new market segments * Convert switchers to CBA| * Changing customer tastes and demographics * Government policies * Product easily replicated by competitors * Threat of substitutes through non-bank lenders (store cards)|

Opportunities Threats

From the SWOT analysis, the most important issues to consider are: how CBA will adapt the product and remain competitive against substitutes, and other banks copying the product. CBA must monitor the market closely to avoid a price war between competitors. The key opportunities will be capturing new clients in a new market and the competitive learning gleaned from being the first to launch the product.

3.0 Financial objectives

Using the 2012 Annual Report as a baseline, CBA has set targets for sales volume, market share and profit for the 2012/2013 financial year. (Commonwealth Bank Australia, 2012) There is strategic congruence of sales targets, marketing strategy and the overarching organizational strategic direction of profitable growth.

3.1 Sales volume

* Achieve a minimum 4% growth in new card sales, initiated by branch staff in the retail market before 2012 / 2013 end of financial year. * Achieve a minimum of 3% growth in new card sales from remaining retail distribution channels (phone and online) before 2012 / 2013 end of financial year. * Increase corporate card sales by 5% in 2012 / 2013 financial year. * Migrate 20% of existing non awards corporate customers to the new product by December 2014. * Increase transaction volume of credit card book by 15% this financial year.

3.2 Market Share

* Increase retail market share from 32% to 37% in the 2012 / 2013 financial year. * Increase corporate market share from 12% to 17% in the 2012 / 2013 financial year. * Decrease customer attrition rate by 15% across both sectors by the end of the 2012/2013 financial year.

3.3 Profit

* Additional $364 million in lending fees collected in late payment and annual fees across from the retail sector. * Additional $453 million in lending fees collected from corporate clients in late payment fees, annual fees and customer maintenance fees. * Increase credit card interest earnings assets from 12.71% yield to 20.00% yield, both sectors combined.

3.4 Break Even Analysis

The break even analysis indicates that 500 new cards must be sold across each segment every month to break even. As staffs become more experienced in selling the product and the consumer more familiar, the costs should decrease in line with the experience (Kotler, 2008) curve. Less money will be spent on training employees and advertising. Fewer products will need to be sold in order to break even.

4.0 Marketing segmentation and positioning

Both the corporate and retail markets have been divided into segments. Niche marketing was considered due to the specificity of the Community Card however, CBA is prepared to take an educated risk by marketing to a wider group as, internal research indicates, it has a large credit card customer base with homogeneous preferences. “Aggregate enough minority tastes and you will often find a new market” (Anderson, 2006) 4.1 Corporate market
segments

* Heavy users and non- users of CBA’s current corporate card offering. * Organizations with a minimum of 50 employees and an annual turnover of a $500k minimum. * Primarily but not limited to white collar industries such as: advertising, human resource management, department stores, large scale hospitality clients (hotels) and travel agents * Organizations with highly centralised purchase decisions. * Companies seeking an edge on their competitors through improvement and / or diversification into social responsibility. * Not for profit organizations

4.2 Retail market segments
* 35 – 49 and 50 – 64 year olds with a 54% clustering around the 50 – 64 age bracket.
* Annual income in excess of $75k per annum.
* Professionals, managers, executives and business people who are accomplished in their fields
* People with a tertiary qualification.
* Upper middle and upper class.
* Native Australians (individually focused as opposed to collectively focused).
* Culture orientated and socially aware.

4.3 Target markets
People and businesses who want the freedom and flexibility a credit card provides, and have an emotional connection to making the world a better place, or a desire to improve their sustainability image.

Corporate:

* Corporate social responsibility
* Flexible payment options
* Ethical
* Sustainable image
* Community
Retail:
* Freedom
* Flexibility
* Social responsibility
* Sustainability / give back
* Ethical

4.4 Positioning

CBA will position itself as Australia’s socially responsible financial services provider with a passion for community. A bank that understands the bigger picture. By being first to market with the new product, CBA signals that it is different from the other banks. It is a bank that is dedicated to offering both retail and business customers an alternative, an avenue to give back to their elected cause, NGO or community group. This position will be enhanced through training its 38,000 employees to act as ambassadors on the features and benefits of the Community Card.

5.0 Marketing strategy and the marketing mix
5.1 Marketing Strategy

The first step in the marketing strategy is to make new and existing customers aware of the new product and how it will benefit the community. CBA’s message is that it is the ethical financial services provider, selling Australian’s the chance to give back to the community. The Bank plans to lead by example, offering the new product to its employees at a discounted rate. This will also allow for market testing and feedback. The Bank will communicate this message to its retail clients through local area marketing, television, radio and advertisements in selected newspapers that appeal to the target customer. The message for the corporate client is the same however; relationship managers will target potential clients through business development activities.

5.2 Product

The product is to be sub-branded and operate on the MasterCard network. MasterCard is selected as it is accepted in 30 million locations worldwide, appealing to the target market’s desire for flexibility. With the acceptation of the awards programme, the new card has similar features and benefits to the existing suite of awards cards. According to the Innovation Bell Curve (Rogers, 1962), the familiarity of known features and benefits will assist in early adoption. The product will be popular with innovators.

It is the first of its kind.

5.3 Pricing

The pricing objective for the retail segment is maximum profits. The corporate pricing objective is maximum market share, as previously mentioned CBA only holds 12 percent of the market. Mark up pricing will be used in both the retail and corporate markets. The new product is exclusive as it is the first of its kind, distinctive and there are no readily available substitutes. These factors make both markets less price sensitive. The Bank has selected a high value strategy for the retail market. The annual fee for the card will be $65.00.

This fee represents the midpoint in the total cards market. The debit interest rate on the card will be set at 21.59 percent per annum, slightly higher than the total cards market average. Retail customers will view this price as good for them and good for the community. CBA will also use a high value strategy for its corporate clients. The fee structure will differ slightly from retail as it includes a $130.00 annual fee and a $15.00 additional card fee per employee. The debit rate of interest remains the same as the retail card. This will prevent corporate clients from using their personal credit cards to save money on purchases.

5.4 Place

CBA’s current distribution channels have significant competitive advantage in the banking marketplace. The bank has more branches; ATM’s and calls centers than any other bank. The website www.commbank.com was recently voted the most visited website in Australia in a report published by Neilson Consulting (AC Neilson, 2012). Given the age demographics of the target market, CBA will leverage off its staff in branches and relationship managers by using a direct to customer distribution model.

This provides the opportunity for potential and existing customers to ask questions and clarify any areas of interest. CBA feels this is important to the target market. The Bank’s website is to be updated with a quick fact sheet on the new card, an award points calculator, information detailing the work of the eligible NGO’s and charities, and frequently asked questions. Call center staff are to receive specific training. Upon approval, clients are expected to receive their card within five working days.

5.5 Promotion

CBA will reach both target audiences through online advertising on the CommBank website, radio advertisements, and television and newspaper advertisements. Some mass marketing will be used to target corporate customers through direct mail outs. The end of financial year is an important time for promotion in both market segments. In retail, 30 June is when people do their tax returns and claim back deductions for gifts and donations. For corporate clients, the new financial year represents a clean slate and the opportunity to pursue different ideas for the business. When promoting the new Community Credit Card, the Bank will position itself as being unique, ethical, flexible and fair.

6.0 References

AC Neilson. (2012, January 15). Most Visited Websites. Sydney, NSW, Australia. Anderson, C. (2006). The Long Tail. New York: Hyperion.
Australian Taxation Office. (2012). 2012 Taxation Statistics. Australian Taxation Office. Forbes Magazine. (2010). World Leading Compaines. Austrade.
Givewell. (2010). Givewell Statistics. Retrieved october 06, 2012, from Givewell: http://www.givewell.com.au/statistics.asp James, C. (2012). CommSec Economic Insights. Commsec.
Kotler, P. (2008). Marketing Management An Asian Perspective. Jurong: Prentice Hall. Kramer, M. P. (2006). Strategy and Society. Harvard Business Review. Reserve Bank Australia. (2012). Bulletin. Reserve Bank.

Rogers, E. (1962). Diffusion of Innovations. United Kingdom : Simon & Schuster International .