Research Topics: Sales Management

Chapter 1_An action Plan for Customer Retention Using Distinctive Strategies of IT/IS; A case study of exploration and production oil and gas companies

An action Plan for Customer Retention Using Distinctive Strategies of IT/IS; A case study of exploration and production oil and gas companies     Project Background   Today, one of the most important business sectors in the world is the oil and gas industry, offering benefits to every individual, group of people and government sectors, given the highest commodity prices and profit of the economy tools. Exploration and production of oil and gas have their impacts on many areas of the workforce as it will help to sustain the oil and gas industry because without oil and gas exploration and production the world would literally grind to a hall (University of Aberdeen, 2006) Petroleum industry in the Kingdom of Saudi Arabia can be an example of competition in the petroleum industry sector, which depends primarily on the petroleum economy with oil revenue representing 90-95% total Saudi export earnings 70-80% of state revenue and around 40% of countries gross domestic product (GDP) (AL-Ghamdi & Suhail, 2006).   The recent increases of crude oil price have spurred and resulted in many new exploration and production which is estimated to have risen by 30% in 2006 to US$ 268 billion (Upstream, 2007). Oil cycle starts with the acquisition (through direct negotiations or by taking part in bids) of the legal right to perform prospecting, other steps follow. There was an evolution in oil prospecting contracts. Generally, the host state does no longer limits itself to a concession for prospecting and exploration of discovered fields, with corresponding receipt of royalties, though almost always, directly participates in the production revenues. Choices in the area of exploration venture is assessed in the light of the possibilities and probabilities of discovering oil and gas based on certain number of fundamental geological elements (studies and surveys, knowledge of the area, evaluation of the mining risk) aside from consideration of an economic nature. Operations on exploring oil and gas fields start with a geophysical survey which includes all operations necessary to identify any possible traps (rock reservoirs that permit the formation and storage of hydrocarbons). To recover the trapped hydrocarbon the field has to be brought into production by drilling an optimal number of production wells and later installing the equipment necessary to free the gas and the oil from undesirable components (solid particles, water, salts, H2S gas, etc) and to separate the liquid phase of the oil form the gaseous one.  This step is called crude oil processing. Once development has been completed, production activities begin. Through these steps the hydrocarbon components are extracted from the reservoir, treated in the processing plants and then conveyed to the market through pipelines or by tankers (Eni, 2008). This research focuses on inbound services, which includes all the services that oil and gas industry has to supply during contract with customers.  All these can be signed in an agreement with both, either as partnership or shareholders or the oil companies will buy a block of land, and a company will start drilling wells until they reach and produce oil. The oil is then shared with the national oil company. Inbound services allow organization to network and integrate a company’s customer services or support operation globally make the best use of company’s resources and ability to gather information (incoming) from different countries around the world (AT&T, 2008).  Through inbound services oil and gas companies can expertly handle customer support and enquiries with the knowledge agent need to meet and surpass customer expectations (Sound Solution marketing, 2008).   Services which can be supplied to customers are: Seismic supplies, Civil engineering to make road to the site, Mechanical engineering to make the rig ready at the site, Geologist to get information details on outcrops and else, Drilling team that includes Rigs and Mud Engineers, entire team of consultants on the Reservoir Engineering, and all other services like: Coiled Tubing, Cement, Acid units, Food supply, Water supply, Camps study group, Information Technology, Storage of Hydrocarbons, Research development, new technological, improving plant and equipment, and human capital development. Customer in the area of exploration and production at the oil and gas companies should be seen as on-going opportunity, to better understand the rational behind this theory and to face the challenge of building customer loyalty. Customer in exploration and production oil and gas industry are variety such as: refineries, medical centre, product manufacturing, pipeline companies, local government, whole sales petroleum product, chemical industries, gas services, selling petroleum industries, national oil companies, international oil companies, and private oil sectors. By identifying type of customers and the inbound services which supply oil and gas companies to its customer. The Oil and Gas companies in Malaysia, for example, provides a successful program of customer retention plan and ability to retain its customer and satisfy them. The main challenge faces the mortgage industry is the continued price sensitivity of their consumers.  As a result, the main objectives for many oil and gas companies is to employ customer retention program and development that will serve to reduce this price sensitivity, reduce the flight risk of customers, and therefore provide a competitive products and services to its customers (Davis et al., 2007).                             Research problem   Customer retention program is an important technique to most companies because the cost of acquiring a new customer is far greater than the cost of maintaining a relationship with a current customer (Ro King, 2005). Customer retention has a significant advantage in the form of lower prepayments, increased revenue, improved pricing on securitization (Gronroos, 1991; Covielloet et al., 2002). New market condition sharpens competition. The number of competitor rises while at the same time the services and products available to the market differ less and less at their core. This has resulted in decreasing of customer retention and increasing costs to do business (Tariq Mouhiddin Ahmad, P. 6). Even though the level of satisfaction with customer relationship Management Implementation has not shown the best result (Abbott, 2001). A study by Eriksson and Lofmarck (2000) shows that customer retention depends on the relationship substance built up due to interaction between the parties. The authors also give emphasis on the fact that purchasing of most services is very irregular in organizations. The reason for irregular purchasing frequently of services is that the customer is doubtful to the needs of the services and has heterogeneous purchasing habits. Exploration and production at oil and gas companies need to understand why customer stay or leave, what creates value for them and their profit and need to identify those customers with whom they wish to engage in a long-term relationship (Jobber, 2001). Therefore, in view of all the above mentioned reason service companies, that one of the intangible aspects of production, has not been subjected to in-depth study to explore the objectives of their plan to customer retention program and the type of benefits that the organizations undertake these study to derive them. Many of problems within customer relationships that occur are resulted from the companies being unable to carefully analyze, such as: the customer relationship, and implement a unified way to examine the different relationship levels that take place when interacting with the customers.  Sense of details should also be a quality that the company possesses in order for the customer relationship to develop successfully.  The service supplier’s customer depends on is based on conventions that develop into different activities.  Together, these two constitute a relationship structure. By identifying the relationship structure the company can gain several advantages which can enhance the customer relationship (Storbacka & Lehtinen, 2000). The overall purpose of this research is to increase the understanding of customer retention by using the competitive strategies of IT/IS in exploration and production business in Oil and Gas companies including solutions to problems for their relationship between the service providing companies for example, service companies of Oil and Gas industry and their customers in exploration and production oil and gas businesses.   Therefore, the research problem for this thesis is:   What are the main Establish Factors for Implementing Customer Retention Program (Plan) in Exploration and Production in the oil and gas industry?         Research Questions:   To reach the research purpose the following research questions are addressed:   <li class="MsoNormal" style="text-align: justify"> What are the Critical Success Factors for developing customer retention plan in exploration and production in the oil and gas companies? </li>       <li class="MsoNormal" style="text-align: justify"> What are the specific strategies to achieve customer retention plan in exploration and production in the oil and gas companies? </li>             Demarcations   The present study will specifically focus on enhancing customer retention in exploration and production in the oil and gas business by using the competitive strategies of IT/IS. Due to the above fact research, this study will be concentrating on a specific industry of exploration and production in the oil and gas that relies heavily on the customer retention plan between exploration and production in the oil and gas companies’ inbound services to their customers. In literature part, we will introduce theories related to customer retention and IT/IS strategies for individual and groups in exploration and production oil and gas industries to offer a clear structure to reader and to explain the proper context of the study.   Respondents   Customer Service Manager ·       Customer relationship Management. ·       Customer Satisfaction. ·       Customer loyalty. ·       Communication. ·       Customer interaction.   <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal"> Customer Service Manager: is responsible to ensure the company that they work for satisfied its customer’s need, providing help and advice to customers, investigating and solving customer’s problem and handling facet-to-face enquiries from customers. </li> <li class="MsoNormal"> Customer Service Manager: has a series activity designed to enhance the level of customer satisfaction that is the feeling that a product or service has meet the customer expectation. Making commitment to learning what customers’ needs and wants and developing action plans that implement customer friendly. </li> <li class="MsoNormal"> Increasing market share and return on sales. </li> <li class="MsoNormal"> Increase sales and profit. </li> <li class="MsoNormal"> Improved employee relationships. </li> </ul>   Sales Manager <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal"> Evaluating the performance of sales workers. </li> <li class="MsoNormal"> Reviewing analysis of customer data. </li> <li class="MsoNormal"> Off-the-job training. </li> <li class="MsoNormal"> Involved in staff recruitment and appraisal. </li> <li class="MsoNormal"> Business planning and development. </li> </ul>     <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal"> Sales Manager: involved in selling products and services in return for money or other compensation, and learning how to put in place a sales management process where he can clearly define the activates. </li> <li class="MsoNormal"> Sales Manager: reviewing market analyzes helps to determine customer needs, sales volume potential and pricing schedule that will meet company goals, also representing their companies at trade association conventions and meeting to promote their products. </li> <li class="MsoNormal"> Predict the future trends affecting the business. </li> <li class="MsoNormal"> Influencing what should be trying to achieve </li> <li class="MsoNormal"> Focusing on activities to achieve results </li> <li class="MsoNormal"> Group training. </li> </ul>     Credit:ivythesis.typepad.com

Chapter 1_An action Plan for Customer Retention Using Distinctive Strategies of IT/IS; A case study of exploration and production oil and gas companies

An action Plan for Customer Retention Using Distinctive Strategies of IT/IS; A case study of exploration and production oil and...

Essay Instructions on Diploma in Strategic Sales (Key Account Management) and Diploma in Strategic Sales (Sales Management) Assignment

Diploma in Strategic Sales (Key Account Management) and Diploma in Strategic Sales (Sales Management)   Please attach this sheet to your Cross Unit Investigative Project (CUIP) Syllabus reference Topic area 1.8 Investigate the stages in the buying process in a key account management/sales management context • Your work must be word-processed in the form of a report of approximately 5000 words excluding a list of references and appendices. (4 marks) • A good standard of business English is expected, clearly communicating concepts in a logical manner with well-reasoned arguments. (3 marks) • Harvard-referenced in text, supporting source list (3 marks) • Ensure that the parts of the report are well presented and clearly titled. Note that brief appendices may be used only if referred to in the project (3 marks) • Word count 5000 – if word count exceeds 5,500 no marks awarded (3 marks) Candidate name: _____________________________ Candidate number: _____________ Centre: ___________________________ Word count of completed report:____________ Candidates are allowed six weeks to complete this final assessment. Fill in the date you were initially given the assessment below and fill in the completion date then sign this sheet and use it as the first page of your CUIP. You are asked to identify, analyse and review your organisation’s approach to the above syllabus reference(s) with particular emphasis on Key Account/Sales Management (delete as appropriate). Your work throughout the Diploma course should be used and referred to as part of this project. Introduce the organisation and your role in the organisation ) 1. (12 marks2. Objective: Investigate and evaluate the manner in which your organisation deals with the cess in a key account management/sales managemen stages in the buying pro2a Define methodology t context (12marks) 2c Analyse data ndings (12 marks) 2d Report key fiConclusions (24 marks) 2e 2f Recommendations (12 marks) (12 marks) This final assessment represents 40% of the overall course mark. Assessment received (date) ______________ Submission (date) ______________ This is my own individual work and all sources used have been acknowledged. Candidate signature: _______________________________________________ PRINT NAME: ___________________________________________________ For ISMM use only Credit:ivythesis.typepad.com

Essay Instructions on Diploma in Strategic Sales (Key Account Management) and Diploma in Strategic Sales (Sales Management) Assignment

Diploma in Strategic Sales (Key Account Management) and Diploma in Strategic Sales (Sales Management) Please attach th...

Business Plan of DVS Shoe Company

The company and its Target Market The company is DVS Shoe Company. DVS originally concentrated on men’s skateboard specific shoes, but recently DVS have expanded their footwear line with shoes for women, kids, and toddlers. The company will engage in a partnership with a European company that sells luxury brand kids shoes.  The partnership aims to develop and establish itself in the Chinese market. The target market of the proposed partnership is Chinese children aged 2 to 5. This target market is profitable because there are many children in China who can be considered as brand conscious.  As an individual entity DVS Shoe Company has different marketing strategies that can cater to the taste and appeal of its target markets.  The company makes sure that its stores and branches are located in the most profitable places where clients can easily see the store and they can be encouraged to visit the store and buy products.  The company also makes sure that competition in the location they want to put up the new branch will not be too heavy.    Source of competitive advantage The company’s competitive advantage comes from its good relationship with clients. Building competitive advantages can be done through collaborating and integrating with its present and future clients. Maintaining competitive advantage means that the company has made sure that the relationship with the clients is built on trust and confidence.   The company makes sure that it knows the needs of their clients and understands the demands of the client.   Mission statement and vision for the company The company can be defined as an emerging entity that provides excellent products to its market. It is the one that makes products for different large retailers. Its mission statement is focused on providing excellent products that clients find useful and of high quality. The mission of the company is to provide the best service to its clients by creating the best products. By doing this the company not only gains additional profits but it acquires competitive advantage over rivals. The company will make sure that not only its corporate responsibility will be given focus but its social and moral responsibility will be checked. It will follow its corporate social responsibility to create a good relationship with the environment.  The company’s vision is to continue to sell in their target market and meet the competitive demands of the new market.   Short term objectives <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Integrate the business in the new market</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Acquire clients from the new market</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Establish the business in the new market.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Create more markets in newer locations.</li> Long Term objectives <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Develop a good relationship with the old and new clients.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Maintain the company’s financial and business status</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Maintain its strategies on corporate responsibility</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Develop better products that can be sold on all kinds of markets that are located in different places.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> </li> Configuration of Resources Physical resource The physical resource of the company includes the equipment they use to create and distribute the products. These physical resources include various kinds of machinery. Another physical resource of the company is their different branches. The company makes sure that the branches will be found on places that people can easily find. The company makes sure that the branches will have low cost of rent but with good chance of attracting clients.   Human resources In providing excellent service to the clients, a company needs to have a dedicated staff that performs well and knows that the service they give to the client can help the company have a positive or negative image. The staff of the company is well trained to ensure that the best service can be given to the clients. The company makes sure that it hires promising individuals that can assist in the company’s task of reaching their goals.   Intangible resources The company makes sure that it maintains a good image, positive character and acceptable reputation.  The company adjusts its premium pricing and interest rates on the situation on the environment. It makes sure that the core value of hard work, dedication and service is maintained. These intangible traits contribute to the increase in the number of clients and the maintenance of its current clients.   Marketing Mix From http://alex.edfac.usyd.edu.au The 4ps meant that marketers sought to produce products that were desired by consumers at a price that would be attractive, the marketers want to use promotion to indicate the advantages they offered over the competition, and make them available at a place of the customers’ choosing (Yudelson 1999). Marketers have to understand cultural values in all aspects of implementing the marketing concept and managing the marketing mix (Proctor 2000). The marketing mix uses the 4P’s to describe the marketing position of a product in a certain marketplace. The P’s of marketing is a way to conceptualize the business, define strategy, format competitive analysis and benchmarking (Collier 1991). Marketing mix helps the company to analyze itself and determine how to market its product to the clients at a limited time and limited cost. The marketing mix categorizes different aspects of the company. Through the marketing mix each aspect of the company can be checked and given consideration with regards to its ability to attract clients. The next part will use the marketing mix to further analyze the company and its products. Product Introducing new products is a very good way of achieving differentiation and enhancing a retail identity in an over-subscribed retail market, but without corporate support new products may fail or go unnoticed (Gillooley & Varley 2001). The company’s shoe products are made from high quality components and materials. The materials and components used for production came from reliable and trustworthy suppliers. The suppliers were chosen well and are known in their respective field. The shoe products underwent well tested processes that ensure its durability and comfort. After production of the products the shoes undergo product testing before it is sold to the markets.  The company also has consumer response team that can be contacted anytime. This response team provides assistance to clients who have issues with some of the products.  The company’s products are one of the main reasons for the company’s success and it contributes to the rise of the company’s profits.  The company’s products sets them self apart from the competitors in the new market. The shoe products for the Chinese children would be made of comfortable but affordable materials. The shoe products will be made from light but durable materials. There would be attractive designs on the shoe. For the Chinese boys, the shoes would have action packed themes wherein the shoes would fit the dreams of the child. There would be military inspired designs, space man designs and other eye catching designs. For the little Chinese girls, simplicity would be the main theme. The designs of the girl’s shoes would focus on their imagination. There would also be fairy tale inspired designs.    Price The market pricing approach is used when the environmental improvement under consideration causes an increase or decrease in real outputs and/or inputs (Hussen 2000). A variety of motivations explain the adoption of a new customer approach by global companies. A major reason is the cost of conducting personal visits or customer sales call continues to increase. Firms cannot afford to allow their sales force to make unproductive sales calls. Firms have come to believe that a more efficient method of marketing is to establish and maintain long-term relationships with their customers. When a long-term relationship is established and nurtured, it is less necessary to spend significant amounts of money advertising to make customers aware of the product offering and then employing a sales force to stimulate demand for unwanted products/services to potential customers (Ford Honeycutt & Simintiras 2003).  Global customers expect low manufacturing costs, excellent design, and having their needs met (Ford Honeycutt & Simintiras 2003). The company’s pricing will be valued according to the quality of the products. For the clients of the company, the pricing approach for them concentrates on providing them the best product for the equivalent amount of price they pay. The company makes sure that it maintains well made products that will have the same value as what the client pays for it.  The price of the product is considered through determining the cost of making the product, the salaries of people producing the product and the other expenses made in the creation of the product. With such price the company maintains the product to be of high quality and durability.   Place The factors which determine choice of a channel, or channels, of distribution are both external and internal to the organization. These factors show how the options open to organizations are restricted. For example, small companies may not have the resource or expertise to become involved in foreign direct investment; markets with low break-even sales volumes favor low-cost channels such as licensing or exporting. Traditional decision-making techniques can be applied to such decisions. Market size is a primary consideration, together with trends in the market like segmentation and the estimated share of the market that can be achieved in view of the competition. The existing distribution methods will determine whether single or multiple channels are developed. Host country policies are important since any special standards, import quotas or duties will increase the cost to the consumer and disadvantage foreign suppliers in relation to domestic ones (Mccall & Stone2000).   If a company wants to hold on to its technology, there is little point in trying to enter a market by means of a foreign direct investment (FDI) where there is insistence on its transfer. Market structure is important in that the number of competing intermediaries may contain organizations with affiliations to competitors either locally or from outside the market. The economic infrastructure becomes critical when specialized expertise is required or the services are needed for the competent financing, manufacture and distribution of a company’s output. Production costs are critical where these constitute a high proportion of the total costs of a product (Mccall & Stone2000) Place elements of the marketing mix have been changing rapidly over recent decades, and these changes impact in many ways on the marketing operations of the Business (Dennis & Harris 2002).To attain sales, profitability, and customer-satisfaction goals, the products must be available for customers to purchase. The portion of a firm’s marketing strategy that assures customers have access to the firm’s products is known as distribution strategy, and the institutions that take part in product distribution comprise the marketing or distribution channels for those products (Reddy 1997).  There are different places of selling for the product. Aside from its branches the company will allow its product to be sold in different non competitor stores. The different non competitor stores will help in making sure that the company is able to sell to various clients in different places. The different channels of distribution will help in strengthening the relationship of the company with the clients. It will also establish some relationship with non competitors. Another possible channel of distribution for the company is an internet website. The company’s website will feature an online transaction function wherein transactions can be made without the buyer being physically present in the company’s store.  The company’s website will provide a graphical and written description of the shoes the company offers. The payments for the online transaction will also be done online.  Payments can be done through credit cards; the delivery of the product will take a few days for shipping.  The places of distribution reduce the travel time for clients and minimize the problem on shortage of cash.   Promotion Effective marketing communications with the customers are essential for business success. Advertising forms the central plan of most communications programs. The information conveyed in advertisements may be in the form of words or symbols. It can work to educate, persuade or simply to inform. An image can be supported or created, enquiries can be elicited and the functions of a product can be demonstrated. Advertising is far more likely to reinforce rather than create a good image (Ruskin-Brown 1999). A strong image is a function of the positive experiences which people have with a product or company. Attempts to create a positive image, while providing poor products or services, are likely to make customers cynical. A common mistake made in advertising is the tendency to over promise. While a creative advertisement may make a consumer buy a product once to try it, it cannot force them to repurchase. Thus, if a product does not deliver on the promise made in the advertisement this too will create resentment and negative feelings (Ruskin-Brown 1999). The company will promote the new products through various means. One will be through the internet. The internet website will give different kinds of information about the shoe; it will then detail the prices of the shoe and the available sizes. The internet is a good medium because most people use it and the Chinese children may see the products through the website. Another form of advertisement that will be used is TV commercials wherein the product will be given a visual presentation. This will be done so that clients will see the features of the shoe products and how the shoe will look like once their child use it.   Business format and structure Organizational structure addresses the questions of what is the best form of organization and why (Dozier, Grunig, JE & Grunig, LA 2002).  Organizational structure is seen as an important part of the work environment. An agile company aims to manage change and uncertainty through the entrepreneurial approach, combined with a flexible organizational structure and distributed managerial decision-making authority, which allows for rapid reconfiguration of the human and technological resources in a quest for meeting globally changing market requirements an integration of human resources across departments and at different hierarchical levels in developing the strategic vision should be followed by a strategy to realize appropriate changes within a new organizational structure (Hendrick 2002) In a corporate structure, the entity responsible to the shareholders is the corporation, represented by its Board, which takes responsibility through the corporate center for statutory reporting, dealing with directors and shareholders, and the governance of the corporation. The strategic business units (SBUs), due to the corporate structure, are shielded from direct relationships with the shareholders and this is also a strong reason for centralization of the strategic planning and performance review arenas. There was rather more flexibility in dealing with the other markets for capital, but this function was mainly centralized. The argument for centralizing this arena is pooling of financial needs across subsidiaries in order to gain economies of scale. The corporate structure shields the SBU from shareholder or capital market pressures (Mckern 2003). Organizational structures help the company have a direction and path. It helps the company in determining its goals and it leads the company to reaching its goals and objectives. Organizational structures also provide assistance for the firm to know who takes responsibility for a certain action. The newly established partnership will be headed by the administrators and the management team. They are the ones that will make all the decisions on what actions will be taken by the company. They are the ones that will decide on the strategies that will fit the company on a certain situation. The branch manager will be the one having hands on experience in dealing with the members of the new branch. The branch manager is the one that will make minor decisions regarding the operations of the firm.  The support staff will assist the branch manages. They will give reminders on how the employees should act. The staff will be the backbones and the operating core of the organization. Without their good performance the company cannot reach its goal.    Management/Personnel Qualities and experience The management of the Chinese market will be those that have perseverance and diligence in making sure that all aspects of the business will push through.  The manager needs to have the drive that will help them to achieve the goal no matter what happens.  The manager needs to make sure that he can relate well with all the personnel. The manager needs to have enough patience in dealing with various kinds of personnel.  The manager needs to plan wisely the actions that will be taken and take full responsibility once there are problems with the firm. The manager should be prepared for the criticisms and intrigues that will be hurled towards him.  The manager for the new market should have enough experience in managing a business that entered a new market.  The personnel of the new market need to be productive, effective and efficient. The personnel need to be willing to learn and understand the different processes of the company. The personnel will be chosen according to their capacities and capabilities. The personnel will be trained well by the company so that each employee will have an important role to play in the company.  The personnel need to be ready for all people that will try to discredit them or the improvements they have done to the firm. The personnel should have relevant experience on the task that will be assigned to them.  Some personnel need to have experience on creating shoes. Some personnel need to have an idea on product safety. Some personnel need to know the distribution techniques for the product. Some need to understand how to maintain the company’s finances. While some need to have the capability to create advertisements.   Financial forecast Economic growth can stimulate financial system growth. Both financial system development, and many individual financing decisions, is driven by attempts to respond to changing demands for funds (Neave 1998).   A financial system will usually offer some way of funding a relatively routine deal that is secured by liquid assets or a readily quantified earnings stream.  Financial systems vary in their capability to fund innovative or unfamiliar projects backed only by uncertain earnings or illiquid assets (Neave 1998).Adequate financial planning is a key element in the success of any business venture. Conversely, the lack of adequate financial planning is often a key element in the failure of many business enterprises. A short-term forecast and cash budget is simply a plan for the near future expressed in monetary terms (Droms 1997).    The company has a funding of about two hundred and fifty thousand pound (£250,000). The newly established firm in the China market made sure that it invested well its funds and through that the company is forecasted to have considerable sales.  Through its investments the company has created products that clients would like to buy.   Shoe Company Monthly Sales Forecast, January 2009-FEBRUARY 2010 January $ 11,000 February    12,000 March    14,000 April    12,000 May    16,000 June    11,000 July    10,000 August    15,000 September    19,000 October    21,000 November    18,000 December    24,000   ___________   Total calendar year 2009 3,000   ========== January 2010 ,000 February 2010   13,000       The financial forecast shows that the company can have considerable income during months which are perceived as good months for shoes and its related products. The strong months for the company would be the months of September to December.  December is perceived as the strongest month followed by October. The good months for shoes includes those months that there are special occasions and events December is the strongest month because in this month is the Holiday season. Children at this month usually ask for new shoes. September and October are considered to be good months because the school year starts in these months. The weakest month would be July; in this month the children are usually on vacation thus they would not want to have new shoes. Other weak months for the company are January and June.  The forecast show that even if the company has just started operating it has acquired considerable amount of income. The company will have considerable income at the end of the year; this income may be smaller than what others have.  In due time, the company can slowly achieve the financial numbers set by other firms.  The forecast also shows that the company has an unstable financial status. To solve such problem the company needs to double its effort on promoting its products on the weak months.   References Collier, DA 1991, ‘New marketing mix stresses service’, The Journal of business strategy, pp. 42-45.   Dennis, C & Harris, L 2002, Marketing the E-business, Routledge, London.   Dozier, DM, Grunig, JE & Grunig, LA 2002, Excellent public relations and effective organizations: a study of communication management in three countries, Lawrence Erlbaum Associates, Mahwah, NJ.      Droms, WG (eds.) 1997, Finance and accounting for nonfinancial managers: All the basics you need to know, Perseus Books, Cambridge, MA.   Hendrick, HW (ed.) 2002, Macro ergonomics: theory, methods, and applications, Lawrence Erlbaum Associates, Mahwah, NJ.   Ford, JB, Honeycutt, D & Simintiras, AC 2003, Sales management: a global perspective, Routledge, London.   Gillooley, D & Varley, R 2001, Retail product management, buying and merchandising, Routledge, London.   Hussen, AM 2000, Principles of environmental economics: economics, ecology and public policy, Routledge, London.   Mccall, JB & Stone, MA 2004, International strategic marketing: A European perspective, Routledge, New York.   Mckern, B 2003, Managing the global network corporation, Routledge, London.    Neave, EH 1998, Financial systems: principles and Organization, Routledge, London.    Proctor, T 2000, Strategic marketing: an introduction, Routledge, London.   Reddy, AC (ed.) 1997, The emerging high-tech consumer: a market profile and marketing strategy implications, Quorum Books, Westport, CT.   Ruskin-Brown, I 1999, Mastering marketing: a comprehensive introduction to the skills of developing and defending your company’s revenue, Thorogood, London.   Yudelson, J 1999, ‘Adapting McCarthy’s Four P’s for the twenty-first century’, Journal of Marketing Education, vol. 21, no. 60, pp. 60-67.   Credit:ivythesis.typepad.com

Business Plan of DVS Shoe Company

The company and its Target Market The company is DVS Shoe Company. DVS originally concentrated on men’s skateboard specific shoes, but re...

Mix and the changes it has done on the Hong Kong market

Mix and the changes it has done on the Hong Kong market   From time immemorial, people have been concerned, collectively as well as individually, about avoiding health impairment and prolonging life. In society they have developed two increasingly specialized arms for advancing their health interests and this include sets of healers, now long dominated by physicians, for dealing with individuals’ problems, and  community health protection, to which public health personnel are devoted. The first set focuses on people one at a time and the second on the population as a whole (Grew 1999). Physicians have tended to emphasize cures, whereas public health has focused attention on prevention, though considerable overlap in these emphases has occurred. Both are supported by society to varying degrees in different times and situations, generally corresponding to the value that society places on them for safeguarding health. Most health problems arise in societal context activities (Jamner & Stokols 2000). Due to lingering health concerns people have desired for products that are healthy and enjoyable. The need for better health products pushed MIX to put up the first and only healthy-lifestyle Juice & Smoothee Café. Such café offered healthy drinks that people will enjoy. MIX has nutritionally-balanced nourishment and refreshments that are available anywhere. The company’s products reach various sectors whether they are office workers, shoppers, travelers or local residents. Mix targets all available market and segments. It doesn’t choose its clients; instead Mix desires to reach all markets. Mix makes sure that it offers products in attractive and comfortable stores. The use of such product creates people with a passion for life.   PEST Analysis Political MIX made sure that they were aware of the political situation of Hong Kong and the Asian Region they have operated in and the company has made sure that it has a reasonable position with regards to political issues. MIXis continuously prepared for any problems concerning the political sector. Any political noise is irrelevant to the company. Unless the political environment will change rules that relate to their operations MIX prefers to stay away from such subject. The political environment has allowed the liberation of the market, liberation of the market paved the way for improvement of services. The laws of Hong Kong and other markets for MIX are not a hindrance to the growth of the company.  The laws of the Hong Kong and other markets for MIX  provides the much needed help in making sure that the company will achieve its goals. The laws of MIX’s markets tend to give guidance to the organization so that the company can achieve its goals without major issues from the government.   Economic MIX and its various branches can be said to be economically successful for the past years. MIX and its branches introduced some changes that benefited the economic stature of the firm. It is not only the internal economic situation of the company should be taken note of but also the economy of the country. Mix checks first the economic status of the country they are operating in before making decisions if they will expand in that area and since Hong Kong recently has been doing well economically then there is no reason for MIX Company to abort growth in Hong Kong. The economic forces can dictate the actions of MIX. if the economy is doing well then MIX can offer new services but if the economy is in a worse state then MIX and its branches have to reduce unnecessary expenditures and un important actions.  The economy of MIX’s markets has given opportunities to health refreshments and nourishments. The status of the economy has paved the way for various makes of healthy products to prosper in the region and help in proving that MIX is one premier company in the healthy refreshments industry.   Social The socio cultural force especially Hong Kong’s society serves as the conscience to MIX and its branches. This force ensures MIX and its branches will not do things they know can ruin MIX’s reputation with the society. This force ensures that MIX and its branches will consider first its environment before making any decisions.  Hong Kong has a very diverse and complicated culture and society; it serves as a challenge for MIX to satisfy the needs and requirements of that region. MIX makes sure that the products and services they offer will be accepted by the general public and the health conscious public. MIX does not authorize the delivery of some products they know will cause outbursts or complains from different groups in the society. Mix also engages in social activities that tend to develop a better relationship between them, the clients and the society they are operating in. Technological MIX offered new innovations in its technological aspect and introduced new concepts with regards to its industry. MIX introduced better manufacturing systems that ensured that they create the best products.  It also makes use of commendable safety and security systems to the branches, supply warehouses and other important facilities.  Since technology rapidly MIX makes sure they are updated to what is happening and they can adjust to these changes. The technological forces dictate the trends in the food industry, these forces is the one that determine what should be used to create a product. MIX relies on the products created by the technological forces.   Marketing Mix From http://alex.edfac.usyd.edu.au The 4ps meant that marketers sought to produce products that were desired by consumers at a price that would be attractive, the marketers want to use promotion to indicate the advantages they offered over the competition, and make them available at a place of the customers’ choosing (Yudelson 1999). Marketers have to understand cultural values in all aspects of implementing the marketing concept and managing the marketing mix (Proctor 2000). The marketing mix uses the 4P’s to describe the marketing position of a product in a certain marketplace. The P’s of marketing is a way to conceptualize the business, define strategy, format competitive analysis and benchmarking (Collier 1991). Marketing mix helps the company to analyze itself and determine how to market its product to the clients at a limited time and limited cost. The marketing mix categorizes different aspects of the company. Through the marketing mix each aspect of the company can be checked and given consideration with regards to its ability to attract clients. The next part will use the marketing mix to further analyze the company and its products.   Product Introducing new products is a very good way of achieving differentiation and enhancing a retail identity in an over-subscribed retail market, but without corporate support new products may fail or go unnoticed (Gillooley & Varley 2001).  Although most of the buying decisions are centered on the ability of a product to satisfy a customer need at a price the customer is willing to pay, a business has to ensure that it meets its legal obligations with regard to the products it sells. It also has to consider its long term image in the eyes of the public. It is therefore necessary to ensure that a product conforms to legal standards and provides value for money (Gillooley & Varley 2001). Product innovation is becoming increasingly necessary for businesses to keep customers interested in their product range (Gillooley & Varley 2001). MIX products include whole meal bakery and pastries with added vitamins, minerals and fiber. MIX makes sure that every one of their Healing Juices, Smoothees, Wrapps and Rainforest Salads is as pure as can be. The company assures its clients that their product has no artificial preservatives, flavorings or sweeteners. The materials and components used for production of products came from reliable and trustworthy suppliers.  The company also has consumer response team that can be contacted anytime. This response team provides assistance to clients who have issues with some of the products.  The company’s products are one of the main reasons for the company’s success and it contributes to the rise of the company’s profits.  The company’s products sets them self apart from the competitors in the region.   Price The market pricing approach is used when the environmental improvement under consideration causes an increase or decrease in real outputs and/or inputs (Hussen 2000). A variety of motivations explain the adoption of a new customer approach by global companies. A major reason is the cost of conducting personal visits or customer sales call continues to increase. Firms cannot afford to allow their sales force to make unproductive sales calls. Firms have come to believe that a more efficient method of marketing is to establish and maintain long-term relationships with their customers. When a long-term relationship is established and nurtured, it is less necessary to spend significant amounts of money advertising to make customers aware of the product offering and then employing a sales force to stimulate demand for unwanted products/services to potential customers (Ford Honeycutt & Simintiras 2003).  Global customers expect low manufacturing costs, excellent design, and having their needs met (Ford Honeycutt & Simintiras 2003). The company’s pricing is valued according to the quality of the products. For the clients of the company, the pricing approach for them concentrates on providing them the best product for the equivalent amount of price they pay. The company makes sure that it maintains well made products that will have the same value as what the client pays for it.  The price of the product is considered through determining the cost of making the product, the salaries of people producing the product, the cost of operation and the other expenses made in the creation of the product. With such price the company maintains the product to be of high quality and durability.   Place The factors which determine choice of a channel, or channels, of distribution are both external and internal to the organization. These factors show how the options open to organizations are restricted. For example, small companies may not have the resource or expertise to become involved in foreign direct investment; markets with low break-even sales volumes favor low-cost channels such as licensing or exporting. Traditional decision-making techniques can be applied to such decisions. Market size is a primary consideration, together with trends in the market like segmentation and the estimated share of the market that can be achieved in view of the competition. The existing distribution methods will determine whether single or multiple channels are developed. Host country policies are important since any special standards, import quotas or duties will increase the cost to the consumer and disadvantage foreign suppliers in relation to domestic ones (Mccall & Stone2000).   Place elements of the marketing mix have been changing rapidly over recent decades, and these changes impact in many ways on the marketing operations of the Business (Dennis & Harris 2002).To attain sales, profitability, and customer-satisfaction goals, the products must be available for customers to purchase. The portion of a firm’s marketing strategy that assures customers have access to the firm’s products is known as distribution strategy, and the institutions that take part in product distribution comprise the marketing or distribution channels for those products (Reddy 1997).  The different channels of distribution help in strengthening the relationship of the company with the clients. It also establishes some relationship with non competitors. The main channel of distribution for the company is its branches. The company has eleven branches in strategic locations in Hong Kong.   The company has branches in its Airport, malls, roads, and other business districts.  Mix also has a delivery system wherein clients or companies who want to have products be catered to them can make formal requests.  MIX’s website features a printable menu that can be used to select the product that a company or an individual would like to have. The individual or a company can then call a certain number wherein they can place their order and discuss some details about the delivery.   Promotion Effective marketing communications with the customers are essential for business success. Advertising forms the central plan of most communications programs. The information conveyed in advertisements may be in the form of words or symbols. It can work to educate, persuade or simply to inform. An image can be supported or created, enquiries can be elicited and the functions of a product can be demonstrated. Advertising is far more likely to reinforce rather than create a good image (Ruskin-Brown 1999). A strong image is a function of the positive experiences which people have with a product or company. Attempts to create a positive image, while providing poor products or services, are likely to make customers cynical. A common mistake made in advertising is the tendency to over promise. While a creative advertisement may make a consumer buy a product once to try it, it cannot force them to repurchase. Thus, if a product does not deliver on the promise made in the advertisement this too will create resentment and negative feelings (Ruskin-Brown 1999). The company promotes their products through various means. One is through the internet wherein the website helps in promoting the products. The website gives different kinds of information about the products and its composition. The website provides a description of the products. Another advertisement is through TV commercials wherein the product is given a visual presentation for clients to see the features of the company’s products and its benefits; other promotion techniques used by the company includes print advertisements. The different promotional techniques used by the company helps in increasing the number of clients of the company.   SWOT Analysis   Strength The main strength of Mix is its innovativeness. The company was able to innovate healthy products that normally people would not buy into products that would attract and encourage people to buy. Mix was able to make unpopular products to ones that are popular in Hong Kong.  A strength for MIX and its branches is its well established values. The values help the company achieve its goal and maintain its stature in the food industry. A strength for the MIX is its high regard for its community wherein the company provides products that ensures that the clients will have good health. This ensures that the company has a good relationship with its environment. Moreover a strength for MIX is its high regard for the safety of the workers. The company has acquired certification for its health and safety practices, this shows that the company uses strategies that have high standards towards the personnel. Lastly a strength of MIX is its website that is informative and attractive.  The website provides information about the company and information on products of the company and how such product benefits clients.   Weakness MIX main weakness is still lacking advertisements. The company doesn’t use many advertisements that can help it be known to more people from other regions.  A weakness of MIX is the limited area that has been reached by the company. The company has a small market; this makes it hard for the company to reach newer clients. The company can only offer its product to those in Hong Kong. This prevents the company from offering products to diverse clients and clients of all ages and gender. It also hampers the chance for the company to show that its products are better than products in other regions.    Opportunities  An opportunity for MIX is to find out more ways to give a distinctive look and features to their products. The company can continue to make sure that their products are uniquely packaged. The company can create attractive and trendy packages that will attract more market.  By doing this the company will have competitive advantage over other firms. An opportunity for the company is to improve the features of their website. The website can be improved by adding online communication systems that will help the company communicate with perspective and regular clients. By doing this it can attract more clients and retailers from various parts of the region. An opportunity for the MIX is to continue to make use of newer technologies that will provide better service to clients. Mix can use the advancements in manufacturing facilities and technologies to make sure that the clients will achieve satisfaction. The company can make use of newer technologies to create the best product possible. An opportunity for the MIX is to continue to reach newer markets where it can offer its products.  The company should consider reaching other regions and countries. Lastly an opportunity for MIX is to increase public knowledge about the company and the product it provides. This could be done through the use of internet and other media. Threats Globalization affected greatly almost all the industries of the world. It brought about the need for change. The changes created a new competitive environment in this industry. Globalization is one of the threats to MIX. Globalization can be a threat to the company because Globalization can produce alternative health products with a better composition. A threat to MIX is the competitors. The competitors will try everything they can to gain a better standing against MIX and its branches. The competitors might discover products that are better than MIX’s product line. MIX needs to be always prepared for the threats brought by other food businesses. The threat to the company includes the laws in the country they are operating in. There may be some future laws that will hinder the creation of products. The laws may be used against some components of their products. There maybe laws that can change the allowed component for the product.  Another threat to the company is the tariffs and taxes that the company has in the region. The taxes and tariff constantly change and that may or may not give additional expenses for the company. A threat to MIX is the environmental issues that might be raised by certain groups. The environmental concerns on the creation of food products can be used as propaganda against the company.  Lastly a threat to the company is the global financial crisis. The financial crisis may not be felt by Hong Kong right now but after some  time its effects will be felt by Hong Kong and business in that region.  The global financial crisis will reduce the client of MIX and might force it to close some of its branches. The company needs to be prepared for this crisis and its probable effects.   References Collier, DA 1991, ‘New marketing mix stresses service’, The Journal of business strategy, pp. 42-45.   Dennis, C & Harris, L 2002, Marketing the E-business, Routledge, London.   Ford, JB, Honeycutt, D & Simintiras, AC 2003, Sales management: a global perspective, Routledge, London.   Gillooley, D & Varley, R 2001, Retail product management, buying and merchandising, Routledge, London.   Grew, R (ed.) 1999, Food in global history, Westview Press, Boulder, CO.   Jamner, M. & Stokols, D (eds.) 2000, Promoting human wellness: New frontiers for research, practice, and policy, University of California Press, Berkeley, CA.   Hussen, AM 2000, Principles of environmental economics: economics, ecology and public policy, Routledge, London.   Mccall, JB & Stone, MA 2004, International strategic marketing: A European perspective, Routledge, New York.   Proctor, T 2000, Strategic marketing: an introduction, Routledge, London.   Reddy, AC (ed.) 1997, The emerging high-tech consumer: a market profile and marketing strategy implications, Quorum Books, Westport, CT.   Ruskin-Brown, I 1999, Mastering marketing: a comprehensive introduction to the skills of developing and defending your company’s revenue, Thorogood, London.   Yudelson, J 1999, ‘Adapting McCarthy’s Four P’s for the twenty-first century’, Journal of Marketing Education, vol. 21, no. 60, pp. 60-67.         Credit:ivythesis.typepad.com

Mix and the changes it has done on the Hong Kong market

Mix and the changes it has done on the Hong Kong market From time immemorial, people have been concerned, collectively as well as indi...