Research Korner

Case Study of the Hong Kong Logistics Industry

Hong Kong Government Logistics Polices Existing logistics policies are established by Hong Kong Government: -          Hong Kong-Zhuihai-Macau Bridge, which is planned to link to the second export cargo sources in PRD, to provide an alternative transshipment way and speed up the transshipment time between factories and Hong Kong terminals. -          Hong Kong Logistics Park, which will be located halfway between Hong Kong International Airport and the container terminals, to facilitate the cargoes to using different transportation modes. -          Digital Trade Transportation Network (DTTN) system is a unified electronic trade platform, to provide to the logistics stakeholders in Hong Kong to exchange their information seamlessly and efficiently. -          Closer Economic Partnership Arrangement (CEPA) It is an arrangement to promote the economic development, strengthen trade and investment co-operation between Hong Kong Government and China in different areas. The cooperation areas within CEPA directly affect the Hong Kong logistics industry are included: customs clearance facilitation, small and medium enterprises, electronic business promotion, commodity inspection and quarantine. -          Hong Kong Logistics Development Council It is an organization to implement the policies set up by the Steering Committee on Logistics Development. It co-ordinates the Hong Kong logistics development issues, and handles the joint projects between the government and commercial sectors. -          Hong Kong & Greater Pearl River Delta Business Council It is a joint conference between Hong Kong and nine regions of PRD. Their major responsibilities are to monitor and take part the development of different joint projects between Hong Kong and Great Pearl Delta River Region.                            Except Hong Kong-Zhuihai-Macau Bridge not confirm the construction details, the other projects mentioned above are scheduled and implemented.   Policies Evaluation There are different approaches for strategy formulation, each of them are for different circumstances. “BCG Matrix” is the portfolio approach to corporate strategy, while “Porter’s Competitive Model” approach is for industry or business competition evaluation. Thus, Porter’s Competitive Model” is suitable for this case and selected to evaluate the effectiveness of Hong Kong Government logistics policies. By considering five forces in Porter’s Model, some policies could be complied with the forces: - New Entrant Barrier        The DTTN is just launched to the stakeholders in Hong Kong. If it        could be introduced and integrated with the manufacturers and Chinese  official organizations in the PRD region, the cargo sources would be tied up  by Hong Kong logistics facilities. They must use the Hong Kong logistics  services to export their cargoes to the destinations.  However, the responsible party - Hong Kong Logistics Development Council  has no any schedule to promote this electronic platform to the PRD region.   - Determinants of Supplier Power The Hong Kong & Greater Pearl River Delta Business Council has established new facilities to enhance the cargo flows at various cross-border control gateways, such as a new boundary bridge and special customs clearance channels for cargo trucks. Under the negotiations by the Unit, a new automatic toll system will be launched during September 2006, the cross-boarder truck drivers will be able to pay tolls in PRD and Hong Kong’s electronic toll collection gates by means of same smart card, this could smooth the road traffic and facilitate the flow of cargo in both regions.        Hong Kong-Zhuihai-Macau Bridge is an alternative linkage between Hong  Kong and the second large export source – western part of PRD. It will  shorten the transshipment time by two or three days, to truck the cargoes to Hong Kong, instead of transshipping by small vessels right now. The supplier power will be greater by using the above moves, indeed their service quality and profitability will be improved.        - Determinants of Customer Power One of reasons why the shippers in PRD use the PRD logistics facilities to ship out their cargo is the complicated export customs clearance procedures through the Hong Kong entrance. Their cargoes are always stuffed in the cross-border check points, sometimes one whole day, in turn they could not catch the vessel they booked. Their shipment time then is prolonged. Under the implementation of Closer Economic Partnership Arrangement (CEPA), Hong Kong Government has negotiated with the Chinese officials to simplify their procedures, as well as speed up the clearance procedures in our own check points. This could smooth the cross-border traffic of the cargo trucks, and cope with the shippers’ requirement. Then CEPA could exert their influence to the customer power to improving their service standard.   - Threat of Substitute Services Many PRD shippers have complained that the handling fee of Hong Kong logistics services are too expensive to compare with that of PRD, it is almost double of the charge in the PRD logistics services, i.e. around USD100 for each laden cargo container. It is one of reasons why they choose the logistics facilities in PRD to ship their cargoes out to China, instead of using Hong Kong’s facilities. The operation unit of Hong Kong Logistics Development Council have contacted and negotiated with the concerned service providers such as carriers, airport and container terminal operators to deduce the charges as low as they could. This could enhance our competitive advantage from our direct competitors in the PRD region.          Unfortunately, Hong Kong Logistics Development Council could not  persuade some service providers such as container terminal operators to  lower their handling fee.                          Arguments There are favorable and unfavorable situations to implementing the polices mentioned above for the Hong Kong logistics industry: In the positive point of view, the policies could benefit the Hong Kong logistics development: - Build up the efficient distribution network between Hong Kong and the PRD regions. More alternative transport modes could be connected to the Hong Kong logistics facilities.   - Support Hong Kong as international transportation and logistics hub within Asia region. - Strengthen Hong Kong position as a gateway or spring board for foreign     investors to China market.   In the negative point of view, the polices may incur the disadvantages to the Hong Kong logistics industry: - The PRD region would replace Hong Kong position of international transportation and logistics hub. - The number of employee in the Hong Kong local logistics industry would be reduced as more Hong Kong logistics companies move to the PRD region. Then, the unemployment rate in Hong Kong would be increased.

Case Study of the Hong Kong Logistics Industry

Hong Kong Government Logistics Polices Existing logistics policies are established by Hong Kong Government: - Hong Kong-Zhui...

Person In Environment

table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%"> The study of human systems began in the twentieth century in the introduction of General Systems Theory.  This is a cross-discipline field assuming that social science can pin down the living and non-living and treat them as systems.  A Person In Environment (regarded as PIE) yields the suggestion of existing in a system that may be organized and arranged through social means.  By system, similarities are determined with relations to patterns, unities and connecting to a whole. Systems can be a group of people, or units such as "families, organizations, communities, societies, and cultures".  It is important to see the origin of social systems theory as beginning on Systems theory that came out influenced by various fields post-World War II.  To approach social science by systems has been a debate of scholars.  Systems itself is a vague term that may be employed and applied in several manners but what remains true is how they consistent of components or parts that function to form a whole in their own interdependent manner. Systems to put more simply and bluntly describe relationships and the workings of interactions.  The smallest unit of society is not the individual that will consist of the society as a collective but the most basic interaction or relationship the individual is able to bridge that will then form sequences, "patterns of exchange that occurs between individuals".  According to Jacob and Tennenbaum, the smallest unit of society then is "the system of members in mutual and interdependent relationships with one another, not individual behaviour in isolation of context".  Thus, a social system.  It then proceeds to say that society or the world's root is not the person but the relationship and interaction this person forms with another.  The world, or society to say, cannot exist without communication.  This remains to be a general or broad take of what a system is supposed to be.  Systems may still be divided into levels or ranked to consist of suprasystems and subsystems according to Joan Jurish and Karen Myers-Bowman (1998).  Jurish and Myers-Bowman explain this configuration through the systems that consist a human body such as the "circulatory, digestive, neurological", which may be regarded as subsystems consisting a whole suprasystem which is the human body.  Systems Theory has various assumptions:  First, it believes in holism which focuses on the sum whole than its parts (and which would be expounded further in Parsons' section).  In holism, each interaction is an event that builds up to a pattern and forming a whole.  Secondly, it assumes that Living Systems are open in a way that it would actively initiate and bring forth exchanges and interactions rather merely taking the role of responsive individuals.  Human beings are also deemed to be intelligent enough to be reflective on what they do and know.  Reality is consequently a construct, subjective rather objective.  Systems Theory may educate how reality is perceived according to how it is organized and understood.  Above all, Society is self-sustaining on its own.       General Systems Theory may be considered as founded by Ludwig von Bertalanffy during the earlier half of the 20th century.  Bertalanffy became considered how the study of living beings can be so technical, scientific and mechanical.  This is said to limit and "neglect" as well as "deny" to how life functions.  Bertalanffy would rather for the perspective on Biology to be a living organism which cannot be pinned down by laws and concepts.  His theories were then published after the World War where systems theory began to be embraced by various cross-disciplines. Add that the second World War in itself was a "major impact on the development of systems theory" where new fields such that of Norbert Wiener's cybernetics was invented in order to further boost the defense weaponries of an army.  Cybernetics emphasized on "feedback systems and communication technology" which allowed a further appreciation of the systems theory as an appreciation of electronics lead to a re-evaluation of how the human brain functions. This application of systems theory was further expounded by Gregory Bateson who integrated both the cybernetic processes to that of human processes which further led to the utilization and application of systems theory to the social science especially the family.     The idea of social activity as identifiable and possibly treated as a system began in the ancient times when Greeks initially perceive of systems as resembling a body, each part with its own role to contribute to this body.  Then Thomas Hobbes was said to have taken the idea of society as an organism in his book, Leviathan.  These efforts inspire the idea of society as living and working together to sustain itself. The first to apply systems theory in American society.  In the book, "The Social Systems", he proposed the idea of organizing society in to systems as a viable and autonomous guide for research and study and not merely as limiting as "extensions of psychology or manifestations of culture".   The actions of the individuals consisting a society is towards societal goals, "people are determined by society".  Parsons emphasis is that people sum up to a whole and thus a system can only be understood in its whole than in dividing it into isolated parts.  What was prioritized then is the relationships between This is also called the Macro point of view.  Another proponent is Habermas who promotes the Action Theory which has to do with the necessity of communication in the existence of a society.  By this, individuals need to interaction with each other and form a culture that would stress the importance of roles and functions in order to sustain society in its ongoing processes.  This is a more interaction based point of view that emphasizes on the units that comprise society than the society that is collected and built up.  By emphasizing on parts, the point of view becomes the atomic.  In this regard, it is people who determine society than societal norms, culture and goals determining how people should function.  Society is dependent to the people that exist within it and thus, it is dependent on how the individual functions or behaves so to speak.  This behaviour may comprise of a pattern that will then comprise of a system.    Thus maintaining the system can be performed in four ways.  Firstly is to maintain the sense of pattern through stability and institutionalizing such pattern (which may be a challenge to do in curbing the individual to the patterns.  The maintenance of the system may also be expressed by goal orientation wherein society is motivated towards the attaining of goals for the sake of the system.  Thirdly there is maintenance through adaptation which is through the sacrifice or disposal of some goals in respect to a more necessary one to maintain the organization.  Then fourthly there is the integration which is supposed to be the integration of the functions of pattern and goal orientation.  By integration, adjustment also becomes essential in order to fully accept goals towards the effectiveness and stability of a pattern.  It is what eventually keeps the system intact in its whole self.    The critique with the General Social System Theory was that it idealizes society as that is quiet, peaceful and orderly.  Society also comprises of stable and rational individuals all working towards unity.  It fails to include the possibilities of chaos, inequality and instability.  Scholars dispute that Social Systems are in reality, chaotic and complex as systems are subjected to constant change.  While General Systems Theory supposes that societies will proceed to one end, the Complex theory proceeds with the notion of multiple ends.  There is no circular motion nor is there a way to go back to where society started.  "Once a system has developed along a given path it cannot simply go back again." This is because relationships upon interrelationships would have formed to "complicated and interwoven" heights.   This theory actually disputes the existence of a systems theory as it postulates human beings as inability to be contained and covered by science and unable to supply the multiple levels and dimensions which will enrich it.  It regards social systems as too complicated an understanding that cannot be pinned down.             In the application of System approaches to School District Management, systems theory holds that schools are managed in such a way that they would resemble "organizations, where teachers are accountable for their students' results".  Systems Theory also promote personalized, subjective and one on one learning where the learning is performed by the student and not provided by the mentor.  The philosophy behind this is that the school is a sum of a whole, of each student working positively.  Systems theory would make effective and efficient the educational institution through its arrangement of levels supra-systems and subsystems.  Because relationships and interactions are emphasized, teachers are encouraged to build relationships with students as students are also necessary in building relationships with each other.  With systems theory, students can indeed become "active learners seeking knowledge" because of the personal attention granted to them.  This means the school needs to be self-sufficient, open and reflective.             Systems Theory calls for schools to be synchronized and united in one clearly defined purpose each subsystem with their purpose and functions to meet in order to allow the suprasystem to meet the said goal (through a feedback system).  Systems are also supposedly dynamic that will consist of "cycles and trends".  School systems are also by assumption rational thus each child is worthy of such a treatment as rational beings.

Person In Environment

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SWOT Analysis of the Cosmetics Industry

Introduction             The cosmetics industry plays a significant part in the economy.  In this sense, case studies prove to be useful since it provide findings as to the past and current situation of the industry.  Moreover, it will present recommendations based upon the perceived findings.  This case study can be classified according to the famous (SWOT) Strength, Weaknesses, Opportunities, and Threats format. Strength             During the three decades, from 1970 to 1990, the cosmetics industry gained momentum in its extensive development through per capita consumption.  Even some segments may vary; the cosmetic industry is near maturity.  The current annual retail sales of the industry totaled up to $14.5 billion.              The first quarter of this current year has seen a demand beginning to revive and trend is expected to continue well into the following year.  Weaknesses             Accounting to the past developments, the cosmetics industry has never been always in such a case.  The industry is no longer recession-proof and is now bound for depressions and declinations.  Actually, the sales in the past year are slow moving because of downed consumer spending.  Consumers that time then tend to settle for the less expensive lines.              Another setback of the industry is the demand-price ratio.  Within the past five years, the prices were invariable and steady but promotion budgets were growing and getting greater than ever.  Opportunities             In keeping away from a potential head-on competition, a strategy of focusing on special niches proved to be effective especially in the struggle with the industry leaders.  This has been a great line of attack adopted by smaller companies in their contest with the market leaders.  They survive and exist through specializing in niches, differentiating the product lines, and focusing on market segment.              A potential huge market has been spotted on men as they account for 50% of adult population that consume one-fifth of cosmetic sales.  The failure of the market leaders in such opportunity provides hint to smaller companies as to what would be the proper and better approach to the market.              Furthermore, the senior citizen population is a large growing market segment which should be given focus as the population’s needs were not being met.  Threats             Notwithstanding the apparent growth of the cosmetic industry during the past four decades, there are currently more than 700 growing cosmetic companies competing in the market.  Additionally, there are also market leaders that dominate the cosmetic industry.  Consequently, it creates stiff and intensifying competition especially to those smaller companies as market leaders are putting pressure on these smaller cosmetic companies.  Conclusion and Recommendations             As stated above, the configuration makes it clear enough for the company on where to focus its strategy.  That is, the focal point of such strategy should be on the opportunities keeping in mind the threats.  The strengths of the industry should also be maintained through the awareness of its weaknesses.              This SWOT structure provided clear and definite way in formulating strategies and approach to the cosmetic market.  It gave attentiveness by laying past and current findings that is of great significance to the market approach.

SWOT Analysis of the Cosmetics Industry

Introduction The cosmetics industry plays a significant part in the economy. In this sense, case studies ...

MARKETING MANAGEMENT

Sunbeam: a Proposed Marketing Plan   EXECUTIVE SUMMARY             Analyzing the status, strategies and resources of businesses and their products or services is very essential as it allows operators to determine how they will progress in the years to come. This also enables them to identify their strengths and how they will optimize them. On the other hand, business analysis also makes operators realize their weak points, allowing them to address them immediately with effective strategic actions. Conducting a business analysis also helps organizations to prepare for their future development and growth. Considering that competition in the business field is continuously growing, implementing efficient strategies through business analysis is indeed significant for all operators in any industry.             Sunbeam is one of Australia's most trusted small appliance brands. With its achieved status, long years of operations, and various products being offered to its target market, the company obtained the creditability and reputation in providing quality and high standards products in the market. The political environment of the business is characterized with its adherence to the existing policies imposed by the state and recognition of the need to constantly coincide with the law and affecting changes. Meanwhile, economic environment of Sunbeam is always on its competitive mode due to the stiff and rapid competition present in its limited market segment. Also, the unanticipated changes in the local, national, and global economy are recognized to be contributory to the increase or decrease of company performance particularly on its financial sector. The social environment is well-accommodating as it sticks on the pursuance of its corporate social responsibility in providing ‘innovative, affordable, easy to use, easy to clean products that make our busy lives more enjoyable’. The existing technological environment is among its critical success factors. The target population of Sunbeam is growing as people’s buying behaviors and lifestyles do change as well. In terms of its natural environment, Sunbeam maintains its commitment for sustainable development.             The industry has several competitors that compete to the limited numbers of consumers. The market segmentation is composed of a specified target market but now expanding in coverage, psychographic and behavioral considerations, and demographic variable. The most promising opportunity in the industry is the offering of a wide collection of products can use to attract consumers who are looking for products that their competitors do not offer. The use of electronic marketing or commerce (e.g. website) may encourage buyers to purchase their products that are not selling. Industry threats, on the other hand include the changes that occur within the area of operations such as economic changes, varying customer preferences, changing lifestyles, and other relevant factors. Also, the threat of stiff competition is always present. The goals and objectives of Sunbeam include the building an internal marketing plan for Sunbeam that is designed to improve the communication within the organization; improvement in marketing communications strategies as response to the stiff and rapid competition in the small appliance industry; intensification of the existing marketing strategy; and continuous creation of new innovations in its products that will serve the demands of the consumers.             Meanwhile, the market of the company is composed of both male and female members of the population coming from AB socio-economic position and inclined in food and food preparation. They are also fond of having the latest appliance equipped with technology yet cost efficient and all-around in use.   BUSINESS ANALYSIS Sunbeam established itself as Australia's most trusted small appliance brand (  2001). With its achieved status, long years of operations, and various products being offered to its target market, the company obtained the creditability and reputation in providing quality and high standards products in the market. Its success is undeniably apparent. Sunbeam’s success in promoting its products lies within the effective implementation of marketing strategies and management of the company’s workforce. SWOT Analysis Strength       The company has a long tenure in the appliance industry and gained market status (especially in Australia).       It offers unique products and constant innovation.       Sunbeam excels in focused customer service and ensured satisfaction by having its 12-months replacement guarantee.       They are committed in quality and performance with regards to its product offerings.       Sunbeam continued to respond to the changes in the lifestyles of people by also expanding its product range.        The management uses an efficient implementation technique on the chosen marketing strategy especially in relation to the marketing mix (Price, Product, Place, and Promotion – 4Ps). Weakness       Sunbeam as an appliance distributor is well-respected and trusted but it possesses an impression that it only caters to the upper class customers. Due to this perception, competitors can use this weakness to gain competitive advantage and acquire more income than the company.       Gendered marketing may also serve as a weakness for gender hinders the purchasing decisions of the potential clients. Opportunity       The company having a wide collection of products can use it to attract consumers who are looking for products that their competitors do not offer.       Since the company has an easy to use website, it should try to encourage buyers to purchase their products that are not selling. Threat       Sunbeam’s threat includes the changes that might occur within the area of operations such as economic changes, varying customer preferences, changing lifestyles, and other relevant factors.       The threat of stiff competition is always present.   Sunbeam offers a variety of products such as its Café Series, kitchen appliances, ironing, health care, personal care, home care, and novelty. In general, Sunbeam’s product line is on appliances. According to the company’s website, their products are characterized by “innovative, affordable, easy to use, easy to clean products that make our busy lives more enjoyable”. Sunbeam whole management believes that well-designed appliances should be within everyone's reach. Thus, their corporate challenge is to create the best small appliances that not only look good, but perform well. Today, the company’s award-winning design team continues to produce innovative, world-class appliances. Meanwhile, the following are the identified marketing issues that contributed to the overall standing of Sunbeam and its whole product line:       Deliberate product innovation and development       Superior and focused customer service satisfaction       Effective and appropriate implementation of the marketing mix Sunbeam continues to lead the market in electrical appliances by offering more than 250 products to the market. To date, Sunbeam’s total sales exceed A$100 million from its numerous product categories. Sunbeam is currently experiencing overall growth in all its product categories and is gaining solid market share from its competitors.   EXTERNAL ANALYSIS PEST Analysis Political <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sunbeam’s compliance to legal and regulatory policies is deliberate. The company’s management adheres to the requirements specified by State authorities. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> There is a need to review the existing company policies in order to meet the demands of the competitive business environment. </li> </ul> Economic <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The possibility of the occurrence global recessions brought about by companies closing down and the loss of jobs may have a direct impact on Sunbeam’s strategy. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Also, the unprecedented fluctuations in the local economy will affect the financial conditions. Thus, there is a need for increase financial management strategies. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Production levels are diversified taking particular attention to the competitive products and services. </li> </ul> Social <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sunbeam do not only offer the services described in the appliance industry. They also provide for the other needs of the customers supported by their management system and store personnel and staff.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The social responsibility of providing innovative products and services for consumers is always the main priority. The company made it a point to be consistent with its slogan in quality products and services offerings through economic considerations of that the customers adhere to who belong to the lower end of the consumer population.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> As industry leader, Sunbeam’s management trend moves toward more reliable delivery services across their customers for efficient product and service distribution.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Using strategic retailing plans and packages, through special offers like freebies and affordable price lists in its products and services, Sunbeam is able to competitively stay in business catering specifically to low-budgeted sector of the population.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The retailing systems of the company allow different people in the lower end market population to choose freely from the stores wide range of products without the need to spend too much of their resources.</li> </ul> Technological <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> The company operates through in-house plant for product development to serve its promise of high quality and increased value of its products and services. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Efficient deliveries of supplies and effective demand forecasts of products and services needs which the company accounts for make it possible for effective business operations in every locale it serves. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Cost-effective and time-efficient routing and product placements, deliveries, stocking and warehousing have been the keys to the company’s achievements. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> There is a need for Sunbeam’s business strategy to be aligned to any revolutionary technological changes impacting the retail industry.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sunbeam’s environmental commitment is clear through its sustainable development strategy.</li> </ul>   INDUSTRY ANALYSIS Companies in the industry sell to a few large customers/buyers. Likewise, the industry also displays an apparent impracticality for customers/buyers to switch from one source of supply to another. This is reflected by the cost of raw materials as well as the costs of operations. Moreover, the products offered by companies in the industry are essentially interchangeable and indistinguishable. The product could also be considered as a commodity for the retail industry. Moreover, the industry shows that the cost of the product and service represents a relatively large percentage of the buyer’s and customer’s total cost. Nonetheless, the customers could if desired backward-integrate specifically by acquiring a company in the industry to which Sunbeam is included. The appliance industry in Australia is promising. With the current changes in the lifestyle of people and the contributions of technological advancements, the industry growth rate could be deemed in its progression stage. The major industry trend is the emerging culture of all-around appliances that will cater to the needs of the clients. Consumers are more knowledgeable and demanding on what product to purchase. The critical success factors of the industry are its ability to serve the needs of the clients as based on the changing lifestyles, consumer behavior, and marketing strategy. Also, the idea of continuous innovation is considered as the most important CSF.  Suppliers’ Power Many suppliers provide raw materials to the industry. Moreover, companies in the industry are not likely to backward-integrate. On the other hand, it could also be posited that the companies in the industry are the primary source of revenues for the suppliers. This makes the competition among suppliers more rigid. Likewise, if raw -material costs get out of line, companies in the industry would be able to have a hard time using a different type of raw material to produce the product. The industry is also characterized with the quality and costs of raw materials having a significant impact on the quality and price of the products and services produced by the industry. Moreover, the raw materials provided by suppliers are essentially interchangeable and indistinguishable. The raw materials are essentially commodities. Likewise, in an industry where loyalty is also considered necessary, there is also the possibility for the suppliers to forward-integrate. Rivalry among Competitors Companies in the industry considered to be diverse in their history and culture and in how they do business. Moreover, the product/service sold by the industry has low storage costs or is not perishable. Nonetheless, the industry is experiencing fast market growth. The products offered by companies in the industry are essentially interchangeable and indistinguishable. It has also been established that the product provided by the company is a commodity to a major part of its stakeholders. Moreover, it also shows that there are considerable numbers of large competitors that dominate the industry. In the said industry, companies in the industry have high fixed costs and spend a lot of money on plant and equipment. Likewise, production capacity, to be economically feasible, must be done in large, expensive increments. Significant barriers as well hinder companies that want to exit the industry. These include regulations, labor agreements, costs of closing facilities, and the absence of secondary market for assets. In addition, it could also be observed that staying in the industry is of great strategic importance to companies in the industry, probably because they have nowhere else to go. Threats of New Entrants The economies of scale play a significant role in the cost of produce the product and service. Companies in the industry have low fixed costs and spend relatively little on plant and equipment. Moreover, competitors in the industry are not likely to cut their price to defend their market position. In an industry experiencing fast market growth, patents, proprietary knowledge, and brand reputation are also considered as barriers for companies entering the industry. Threat of Substitute Products The price of substitute products is more expensive. This provides the industry a great following. Moreover, the quality, features and benefits of substitute products are generally lower.     ANALYSIS OF MAJOR COMPETITORS             Sunbeam’s major competitors belong to an oligopolistic market. Competitors such as Kenwood, Remington, Ronson, Krups, and Mistral & Breville are all competing in Australian small appliance market. Data shows that as of January 2002, Sunbeam held a 20.1 percent share of the said small appliance market. Its competitor, Mistral & Breville held a similar market share, thus posing the only real challenge to Sunbeam. All these competitors are aiming for corporate sustainable competitive advantage. To address the stiff and rapid competition, Sunbeam’s ongoing new product development is the key to success in the market. The company and its whole workforce maintained its reputation as an innovator by responding to competition and consumer lifestyle trends particularly with the new additions to its satisfactory product line.   MARKET ANALYSIS             Sunbeam’s identified its target market that belongs within the AB socio-economic group. The 25- to 59 year old food lovers who have the passion for food and food preparation represent the segment. They are fashionable consumers who ‘must have’ the latest technology in beautifully designed products. The quality appreciated and they are happy to pay a little bit extra, but only if the products come with the right look.  This market segment is disenchanted with plastic appliances. While their purchases do represent socio-economic aspiration, the latest fashion is less important than the benefits of lasting, exceptionally performing appliances. Other benefits sought from the product include ease of cleaning and value for money. According to Sunbeam’s corporate website, research shows that consumers, depending on their gender, purchase different products from Sunbeam. For instance, in their Café Series wherein most women show traditional values and tend to make purchase decisions with respect to mixmasters, deli slicers and deep fryers. Practicality and performance is sought and the focus is on food preparation. The male population, on the other hand, seems to buy blenders and espresso machines.             The consumers in the appliance market do not tend to have brand loyalty, and they make most of their purchase decisions at the point of sale. For this reason, packaging plays a crucial part in the marketing strategy. In Sunbeam, research show that the previous packaging of its products is not effective in communicating the benefits of the product range. In order to connect with its target market, there is a need for Sunbeam to improve its packaging. It needs to stimulate thoughts and feelings associated with the products’ benefits and it possibly be done by the creation of colorful, simple yet stylish beverage, meals, and snacks. In general, packaging serves as an important marketing communications tool as sales personnel are often unavailable due to the cost cutting undertaken by most businesses.   OPPORTUNITY AND THREAT ANALYSIS The company having a wide collection of products can use it to attract consumers who are looking for products that their competitors do not offer. Since the company has an easy to use website, it should try to encourage buyers to purchase their products that are not selling. Company’s threat, on the other hand includes the changes that might occur within the area of operations such as economic changes, varying customer preferences, changing lifestyles, and other relevant factors. Also, the threat of stiff competition is always present.   GOALS AND OBJECTIVES             With the identified trends and conditions present in Sunbeam’s corporate environment and operations, the following objectives are proposed: ·         To build an internal marketing plan for Sunbeam that is designed to improve the communication within the organization. ·         To improve marketing communications strategies as response to the stiff and rapid competition in the small appliance industry. ·         To intensify the existing marketing strategy. ·         To continuously create new innovations in its products that will serve the demands of the consumers.   References     Marketing Orientation: The Basis of an Effective Marketing Strategy     Marketing theory and research evidence suggests that the greater the market orientation of an organization, the greater its profitability.   INTRODUCTION Majority of marketing experts stated that in achieving business success, all you need is a customer. Theories and concepts on how to manage are not really necessary on this situation. Solving all problems is not also a guarantee to be efficient. All you need is to find out what you do right for the customers and you have already got and do more of it. Truly, the customers play as the key players in the success of a business. In this case, market orientation is the main mechanism that caters the needs of the organization in providing the best service or product possible. The knowledge of the needs and wants of the consumers is an excellent way to improve the marketing management strategies. The rationale is that the more an organization understands and meets the real needs of its consumers, the more likely it is to have contented customers who will come back for more product or service purchase, and possibly tell their friends. As the cornerstone of both marketing and strategic management, (1995), market orientation has been presented as the implementation of the marketing concept ( and  1990). Despite the broader focus of market orientation on exogenous market factors (e.g., competition, regulation) that affect customer needs and preferences and current as well as future needs of customers ( and 1990), it does not challenge the spirit of the first pillar of the marketing concept – customer focus. This narrow external vision has endured for nearly forty years, despite changes in the service requirements of today’s markets and the need for a complementary internal focus.  (1994) identifies this narrow external vision as a marketing myopia and identifies the need to broaden the management focus of the firm, calling for research examining the importance, costs and contribution of other relationships, including relationships with employees for a more effective marketing orientation. A market orientation is an organization culture in which all employees are committed to the continuous creation of superior value for customers. Being the organization's culture, a market orientation is necessarily cross-functional and thus radically different from a marketing (single-function) orientation. A market orientation consists of three components customer orientation, competitor orientation, and inter-functional coordination. It is measured as a continuous variable. The greater a business's market orientation, the greater its ROI, sales growth, new-product success, and customer retention. The market orientation performance relationship is observed in dynamic as well as static analyses. There is no evidence that either market condition or industry type moderates the market orientation performance relationship. A market orientation can best be created by results-driven processes rather than by programmatic change efforts. Top management plays a vital role in creating and maintaining a market orientation. However, a market orientation also requires that the organization's market units, not the top management, have the ongoing authority for managing customer satisfaction. This paper is split into three main sections. The discussion below reviews the academic discourse on the concept of market orientation as a tool in effective marketing and examines the relationship between the firm’s employees and its marketing orientation. Marketing orientation is reported to have important consequences for effective marketing. Further, suggestions are provided at hand.   Market Orientation and Marketing Orientation Market orientation has been proposed as the cornerstone of both marketing effectiveness and strategic management ( 1995). It is differentiated from marketing orientation y its broader focus. Market orientation, in contrast to marketing orientation, puts the marketing emphasis on customers, competitors, and organisational issues and has been defined empirically and validated as a way of improving business performance. The literature dealing with market orientation, however, shows remarkable inconsistency in defining the concept as either business philosophy or management behaviour. Several studies explore the relationship between marketing orientation and some output measure such as profitability or customer satisfaction, see for example  and  (1994), and  and  (1996). Perhaps the most significant finding for theorists and practitioners is the consistent evidence that being marketing oriented does improve marketing strategy. This has been found to be true for large firms ( and  1993;  and  1994), for small firms ( and  1996), for product producers, ( and  1990), as well as service suppliers ( and  1991) and for profit ( and  1994) and not for profit (,  and  1994) business organisations. Research on marketing orientation has centred on understanding the construct and examining its relationship to performance ( and  2000). Two important studies sought to define and operationalise market orientation. Based on an extensive review of the literature on sustainable competitive advantage and marketing strategy,  and  (1990) operationalised market orientation as consisting of three dimensions: customer orientation, competitor orientation, and inter-functional coordination. Using both a literature review and field interviews of managers,  and (1990) operationalised the market orientation construct as consisting of three basic components: intelligence generation, intelligence dissemination, and responsiveness. Intelligence generation extends beyond collecting information about customer needs and preferences to include information about the entire task environment confronting an organization. To be market-oriented, an organization has to communicate, disseminate, and often "sell" market intelligence to relevant departments and individuals in the organization (, , and  1998). And finally, the market-oriented organization responds to or acts on the market intelligence gathered and disseminated. The two approaches to defining the market orientation construct are similar in their emphasis on behavioural issues ( 1995). Both groups of researchers identify the construct as consisting of collecting information about the task environment, disseminating the information to all organizational units, and readying the organization to act on the information to provide value to the customer. Both approaches are similar also in operationalising the market orientation construct as a multi-dimensional concept, where each dimension measures a different feature of market orientation. Finally, both studies view an organization's magnitude of market orientation as the sum total of its relative emphasis on the different components of market orientation. It is conceivable that a given magnitude of market orientation may be highly skewed to either customer emphasis or competitor emphasis. The literature on sustainable competitive advantage supports this notion. While some authors (e.g.,  and  1985) suggest that customer emphasis is the most important component, others ( and  1993) contend that a high magnitude of market orientation will yield superior performance only when swift managerial responses follow, regardless of the focus.   Marketing Orientation and Effective Marketing It may be reasonably expected that if managers buy into the marketing orientation philosophy, they would also show a level of consideration for employees. It appears, therefore, that managerial consideration is an important component of marketing orientation and how managers respond to the wants and needs of employees forms one of the dimensions of the construct. Common to all conceptualisations of marketing orientation is the need to collect information about the internal environment. This information also has a broader focus than employees. It involves the generation of internal information, about the current satisfaction of employees with their working conditions and employment activities, the factors that influence satisfaction and the important attributes of job offer that employees consider. There is also an external focus relating to the activities of competitors in the employee market and generating intelligence about employment conditions with firms competing for the same employees. A range of industries seek effective customer contact staff, and competition for employees may be from sectors not normally considered by marketing intelligence. It appears therefore that marketing orientation may be operationalised as an internal marketing orientation in a similar manner to the operationalisation of external marketing as market orientation. At this juncture, it appears that marketing orientation may contribute directly and indirectly to the marketing performance of the firm. The direct impact of marketing orientation on firm performance has been suggested by  and  (1991), as improving service quality; as increasing employee and customer satisfaction and  (1994), as decreasing staff turnover and reducing training costs. Indirectly market orientation may contribute to the effective marketing strategy of the firm. Achieving effective marketing involves serious issues and decisions which deserve disciplined consideration. Leading advertising agencies apply a planning process which identifies the critical decision junctures and issues to be addressed at each specific stage of development, working with clients to develop strategy and create marketing communications. A disciplined approach systematically guides the marketing decision maker through the following key decisions: What should my marketing orientation strategy be? Is my product line/service right? The first question is the most critical since the decisions made at this step in the process set the stage for the rest of marketing communications development. Research is especially important at this initial phase since the depth and breadth of information needed for planning strategies includes objectives such as:  Uncovering new opportunities for products and services to meet consumer needs and identifying those consumers who represent the greatest potential. The key issues to be considered in the creation of the marketing orientation strategy must be approached from two perspectives: internal, in terms of business considerations, and external, in terms of the consumer's wants and needs. The consumer is the other important source of information in creating the specific dimensions of the marketing communications strategy. Strategic research among relevant consumers helps to address these fundamental questions. It helps the marketer to understand the consumer's "ABCs" – their attitudes, usage behaviour and demographic and lifestyle characteristics. For instance, strategic piece of research for one client uncovered the existence of distinct segments of consumers within the camera market to which it could direct a different camera model. The segments differed significantly according to their attitudes, behaviour, and characteristics. For example, within the segment profiles developed, the desire for sophisticated, complex features was a key differentiator between the kinds of people in one segment versus another. Through this product line diversification by segment and the segmented communications effort that accompanied it, the company was able to address each target group with the most relevant product message for them. Ultimately, this strategy helped it to expand the market and strengthen its position as market leader. In this case, companies’ marketing strategy would want to maintain and leverage the distinctive, appealing parts of the brand's heritage and yet update it as well. With this research, specific visual, non-verbal stimuli were used to help understand how users were perceived and how that imagery related to the target consumers' perception of themselves and their aspirations. The results confirmed the positive image traits of the brand but also indicated that certain other elements of its personality were not being projected, since the picture of the user and the self-image of its target audience were not in synch. The need for changes such as a more youthful presence was identified and the advertising approach in turn was modified with successful marketplace results. The basic questions marketers face at the final point includes: What was the "effect" of the marketing orientation effort on the consumer's mind in terms of awareness and attitudes toward the brand? What was the effect on consumer behaviour in terms of purchase of the brand? Should the campaign continue as is, be refined and refreshed, or be replaced? The primary research tool to measure the effect on consumer attitudes is the tracking study among the target audience. These studies usually compare consumer attitudes at a point prior to a campaign's launch to a point (or many) after a campaign has been established. Measures used within the tracking vehicle should be developed according to the strategy and objectives defined in the first phase of the process. CONCLUSION Recent research has suggested a positive effect of market orientation, the implementation of marketing concept, on business profitability ( and  1993;  and  1994) and sales force behavior and attitude. Because of its potential effect on business performance, market orientation plays a key role in the formation of business strategy ( 1994). A marketing orientation does not only enhance the effectiveness but also reduces management waste by knowing what customers do not require. Employees and assets are two main resources of any organization. A measure of cost efficiency is how much sales, on average, an employee can produce. Another measure is how much sales can be generated from available assets. The association between market orientation and cost efficiency offers a promising opportunity for many service firms. While many marketing managers view a market-oriented campaign as expensive and often question its contribution to profitability, the present study shows that market orientation can actually lower operating costs and increase per employee contribution. Being customer-oriented enables the firm to learn not only what customers desire but also what customers do not need. As many firms are learning to be leaner in the21st century, managers may find that marketing orientation can be very useful. One purpose of this article was to explore the new expectations for a marketing orientation in an ever more demanding marketing environment. Today, marketing should go beyond the traditional challenges of reflecting a brand's positioning; communicating product benefits; and building awareness to establishing a Brand Character or a personality for the brand. This will better enable the products to form a bond with its target consumer. In the present day, marketing strategies are also expected to extend beyond the traditional media into the concept of "integrated marketing communications," including public relations, sales promotion, and direct marketing efforts.     References                   Sunbeam Proposed Marketing Plan: on Marketing Communications   EXECUTIVE SUMMARY The marketing concept states that the nature of the marketing orientated organization, whether product or service based, profit or non profit based, is the identification and genuine satisfaction of customers needs and wants, more effectively and efficiently than the competition ( 1999). The marketing concept has been consistently evolved into more contemporary and sophisticated ways. Among these is the existence of new technologies that covers the overall process of marketing. However, the tools that is normally used has also adapted to the changing times. It proved to be very flexible considering that marketing techniques has been employing the use of modern technology to enhance their efficiency as well as their capacity to provide the needs of the consuming public. The utilization of an effective marketing communications strategy is perceived to be contributory to company’s satisfactory performance. The general concept of marketing communication pertains to any messages and related media used to communicate a product, service, brand, organisation or company. Aside from the five usual major models of communication used – advertising, sales promotion, public relations and publicity, personal selling, and direct marketing ( and  2002), others concepts like branding, graphic design, packaging, and online marketing are integrated. Marketing communications activities contribute to the organization's reputation and image ( and   2002). Thus, the need to maintain the competitive advantage not only in terms of product innovation but also in marketing communications is imperative for Sunbeam. This marketing communications plan consists of the concepts of integrated marketing communications as applied to Sunbeam and its products. It made use of “guestimate” due to the inability of the researcher to gather pertinent data as also indicated that such data needed are confidential. POSITIONING STRATEGY The positioning strategy for Sunbeam involves the implementation of marketing communication strategy in building brands of consumer for its products.             In this age of globalization and information technology, deciding which brand to choose can be a problem. Competition is evident and intense, and the marketing and management divisions of corporations are surely giving everything they can to establish their brands. Competition forces certain brand names to become stronger than others because of product loyalty and name recognition. As such, all types of communication became more involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication ( and  1992). Marketing communications in building brands of consumer includes initial steps that are particularly concentrated in product/service or brand campaign. Today’s market is characterized by highly competitive organizations which are all vying for consumer loyalty. Building brands of consumer requires basic marketing communications planning and identifying the factors that may affect the implementation of the marketing communications plan. Competition is an important factor to consider in building brands of consumer using marketing communication tools. Companies should have successful competitive strategies to be able attract, retain and grow customers. However, before the company can plan and execute these strategies, it should be able to pinpoint its sources of competitive advantage which can be differentiated through products, services, channels, people and image ( and  2001). It is a universal fact that consumers tend to buy what is already familiar to them ( 1997). A fine and well-advertised brand might have a competitive edge from a lesser exposed brand name. But then, a lesser known brand can also have an edge over price, given that they cost less than known brands ( 2002). Moreover,  and  (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself (). According to  (2003), there are at least four types of resources which the company can use to achieve its objectives: financial, tangible, human and technological resources. Consumer loyalty and satisfaction are the main goals of marketing communications in building brands of consumer. Customer satisfaction refers to the consumer’s positive subjective evaluation of the outcomes and experiences associated with using or consuming the product or service. It is either a discrete, time-limited event or the entire time the service or product is experienced ( and  1998). Satisfaction occurs when the product has been able to meet or exceed the conceived expectations that the customer has ( 1996). Customer satisfaction may also be considered as the measure of the high degree of quality of the product (. 1998). In a study conducted by  and  (2003), they deemed that once a product or service has been delivered or sold, its quality is believed to have been established. Cultivating customer loyalty is about establishing a relationship between the company and its consumers ( and  1997). This is emphasized by  (1997) who considers that gaining consumer loyalty is a business’s most advantageous strategic purpose because it has a constructive effect on company, culture, development and the bottom-line. However, customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. With this, firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth. Today, most companies find that it impossible to create any kind of sustainable competitive advantage based on product alone. It is common knowledge that every one of the successful companies sought and found a precise understanding of how it could create a customer-centered competitive advantage. Customer satisfaction is the primary aim of marketing while loyalty is the main aim of marketing communications mechanism in building brands of consumer. Aside form establishing awareness, which is an elementary process in introducing a product/service or brand, the eventual increase and maintaining a significant number of consumers, is necessary in marketing communications strategies of organizations. Most enterprises ensure the best possible chance of attaining long-term stability and competitive standing through comprehensive customer analysis and implementation of marketing communication plans. Marketing makes the basic assumption that customer satisfaction should be the primary aim of the business. Such satisfaction can be achieved and sustained through the provision of competitive products or services, at competitive prices (,  and  1996). It should focus on every aspect of marketing, not only on promotion and sales techniques, to persuade customers to buy but also on target market, marketing mix and the effective marketing strategy ( and  2001) because successful marketing results in stronger products, happier customers, and bigger profits. Moreover, customers recognize the importance of knowledge in relation to the product being purchased. Several consumer behavior researches testified to this fact. (2000) argued that a customer evaluates a product or a service. Such action is based on the customer’s reaction from the using the product or service, which means that the product or service should leave a good perception to the customer’s contentment.  and  (1995) explained that it can be ensured that a customer is satisfied by taking into importance the value package, which includes: price, product quality, service quality, innovation, and corporate image. Others also stated the importance of maintaining or establishing a uniqueness of the product, while also understanding customers and what pleases them ( 1993). Customers should also understand the product and be allowed to set their own standards in order to be satisfied ( &  1995). The presentation of information about the brand is fundamental in marketing communications in building brands of consumer. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment ( 1999). Aside from having a strategic purpose, gaining customer loyalty is also a key corporate challenge today especially in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide ( and  1997). Every business wants to have a regular customer base because customers dictate profits and how the customer is treated will reflect on whether the customers will remain loyal with the company or not. When considering channels for any campaign, including new product or service launches, integration across different channels can have a substantial impact upon response, compare to channels working in isolation. The typical example cited is often direct mail followed by telemarketing, where the mail pack serves to put the brand or product in the mind of the recipient, 'warming them up' to the telemarketing. There are also natural partners – as digital becomes a more accepted part of the marketing mix, it is unusual to find any communications strategy particularly product launches, which ignore the use of email and websites. A combination of email and website work can give high impact, high relevance, and high reach, must form a key part of any communication strategy ( 2000). All in all, marketing communications in building brands of consumer uses the mainstream and contemporary marketing communications strategies and tools such as advertising, direct or personal selling, public relations, Internet, others and the integration of all methods. Also, the marketing communications involve in this aspect is directed to consumer satisfaction and loyalty. All marketing communications plans implemented in building brands of consumer is perceived as competitive edge or advantage of the organization against its competitors.   PRICING STRATEGY Being the most powerful tool in marketing, price is identified following the company’s established goals and objectives. These goals range from enhancing the market share of the products, improving the demands in the target markets, to extending the sales at an even rate for one whole day, week, month, or year. Pricing is utilized in several ways namely (1) to increase unit sales so that resources of the firm; (2) to restrict sales, or limit the quantities demanded per unit time;(3) to make the market less attractive to actual or potential competitors; and (4) to attract buyers so that they will buy other items once the transaction has begun. Pricing is also an important part of the marketing mix. In order to take advantage of this, considerable research is needed to be done. Basically, Sunbeam is a little more expensive than the other competing companies. The key here is to estimate how much the company can sacrifice just to level the price of the competitors. New product features are also seen to be added in order to reconcile with the existing product prices. Sacrifices can be made on advertisements so that the retail and wholesale price of the brand can be lowered. The following are the plan in pricing for Sunbeam: Ø      Cut cost in specific areas. Ø      Create product features that are more attractive and useful for consumers yet it remains affordable. Ø      Offer special prices for specific purchase (the approach will also be applied to retail). Ø      Level the price of the brand with top competitors. Ø      Estimate ROI. Reasonable Prices – Price/Value (Value Changes Analysis) Based on the value changes analysis, Sunbeam and its management work on the following processes:       Start with high expectation – Because starting up with high expectation leads to intense effort of achieving deliberate goals. For instance, in cost management, Sunbeam paid attention to cost modeling with high expectation and triumphant outlook.       Digging into the cost details – Sunbeam remains to be successful in setting high expectations particularly in the cost-modeling process of both purchasing staff and suppliers.       Emphasizing customer satisfaction – Being one of Australia’s leading appliance manufacturers, Sunbeam’s emphasis on customer satisfaction is relatively connected to the basic philosophy of the company. As every business, customers decide on the future of a firm whether or not it will remain in the market or vanish immediately.       Demanding discipline and rigor from staff and suppliers – In cost-modeling, Sunbeam involves their full management in decision-making and taking activities. They study the suppliers’ cost structure and come up with supplier development program.        Understand suppliers' cost structure – The management of the Company need to understand the suppliers’ cost structure in order for them to develop the most feasible design that will address the need of the customers without sacrificing high quality in their products.       Cooperating and collaborating with suppliers – Frank and open communication, sharing cost-modeling date and helping suppliers meet the cost target and yet maintain acceptable margins are effective actions done by Sunbeam’s management.       Contributions to total cost – As they come up with the most effective solution, the total cost is then dependent on the overall expenditure.       Willingness to apply the resources required to get the job done right – Supply and demand chain is definitive and appropriate to use in considering the application of available company resources and managing the suitability of implementation.       An organizational capability deployed throughout the company – Sunbeam is always upbeat. Armed with their basic philosophy, they are apparently capable of deploying any cost structure as a product of detailed study and projection.   PROMOTIONAL STRATEGY Promotion is where the marketing communications should focus. Basically, there are many things that should be done. However, the cost of promotion should also be monitored and well balanced. Expensive endeavors will be avoided so that the cost will be not more than five percent (5%). Sunbeam’s products are proposed to be advertised using integrated marketing communications (IMC) methods. The following are the strategies for promotion: Ø      Produce inexpensive communication techniques. Ø      Use concepts that are appealing to the target market segment. Ø      Conduct research for the concept of the commercial. Ø      Conduct product display, demonstration and contests.             Before pushing through with the marketing communications approach, there is a need to identify the special features of the products being offered. The creation of the marketing mix will help. It is intended for the purpose of insuring the achievement of various corporate goals such as profit, volume, image, reputation and return on investment through the satisfaction of the consumers’ wants and needs. Each year, hundreds of new products appear in supermarkets and specialty food store shelves (‘’ 2003). With this fact, promotion is highly crucial for such product to stay or immediately vanish in circulation.             The prospected brand and its products, Sunbeam, are already known in the industry. The challenge however is to outgrow its competitors. Given the numerous competitors for the product, the company is faced with the reality of rapid and stiff marketing and market dominance. Before setting up for the marketing communications plan, there is a fundamental demand to identify the key selling points of certain products. After identifying the elements of the product, there is a need to identify the market environment conditions. Competition is an important factor to consider before entering a business. Companies should have successful competitive strategies to be able attract, retain and grow customers. However, before the company can plan and execute these strategies, it should be able to pinpoint its sources of competitive advantage which can be differentiated through products, services, channels, people and image ( and  2001, ). The competitors of Sunbeam are the same products offered by world’s leading appliance manufactures.             On the other hand, it is important to identify the target market and consumers of the product before working on the marketing strategy. Of all the components of a marketing plan, perhaps the most overlooked but most critical element is the definition of the target market. According to  (2000), it is a homogenous group of people or organizations that a company wishes to appeal to. Studying the consumer behavior of the chosen target market is imperative as it defines the success and failure of the venture. The essential information to be collected are to be used as foundational data in making the most suitable and best decision in relation to the product. According to  and  (2001), consumer buying behavior or the buying behavior of the individuals and households who buy the goods and services for personal consumption directly impacts how products and services are presented to the different consumer markets. Moreover, there are many components which influence consumer behavior namely: cultural, social, personal and psychological ( and  2001). Consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) (. 2002). Furthermore, consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. After identifying such relevant aspects in making a marketing communication approach, it is now safe to begin the planning stage. The marketing communication proposal will deal with the messages and related applied media to be used in communicating essential information about the product for the market to know ( 1965, ). In this report, the marketing communications proposal will include the integrated marketing communications (IMCs) principles due to the fact that it is the most compelling to be used. The IMC is a product of the advertising, direct marketing, and public relations practices ( and  2004, ).  and  (2000) defines IMC as “a strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with consumers, customers, prospects, and other targeted individuals”. The IMC to be used will give particular attention to advertising since it is deemed that it is the most appropriate method to be used.             Channel communications works in a two-way system wherein information transfers to the user and bounces all the way back to the producer ( and  1992). In other words, marketing communications works like a feedback system, which allows company producers to relay information to the customers. In response to the provided information, consumers give certain reactions or behaviors towards the subject. According to ,  and  (1990), if consumers somehow become better customers – that is, more knowledgeable, participative, or productive – the quality of the service experience will likely be enhanced for the customer and the organization.             Given that the product is already existent in the market, the current approaches of Sunbeam in product positioning strategy are bounded by long-term objectives that focus on creating product value. This will gain the lifetime loyalty of the consumers which include (1) maintaining a strong core business in Australia, (2) to gain competitiveness in consumer appliances products  and other related market offers, (3) to grow internationally, and (4) to move into retailing services through online marketing and shopping. Advertising is still the most appropriate technique.             Advertising is bringing the company’s products and services to the mindset of the target market ( 1999; . 2001;  2002) using different mediums like TV, radio, internet, and print media. It refers to the paid promotion of goods and services through a sponsoring organization or company using statements and slogans ( 1961) that are appealing to the target people. This kind of advertisement is also considered as a myth about myth ( 1994). According to  (1972), the process has been recognized as a “major vehicle of social communication in modern Western society ().” There are commonly three main objectives of advertisements: (1) conveying relevant information regarding a particular product or service; (2) persuading consumers to purchase the advertised product; and, (3) keep the company under the watchful eyes of the public (. 2002). In a general sense, advertising is being utilized to be able to impart to the consumers the availability of a particular product. In a way, it is also able to provide critical information regarding the product. When an advertising campaign is achieved effectively, this can lead to an increased demand for the product. Using the advertising and brand strategy, the Sunbeam and its products must have definite and predetermined information to be presented. The group involved in the process must be particular in maintaining the strength of the product (or brand) in the goal to go ahead in the market and with the sole aim to have a remarkable market entry. In this case, information from the conducted market research will be useful in determining consumer and market impacts and enhancing brand profitability. Market research is important in new business venture because it indicates the possibilities as well as restrictions of a product or service. Advertising using the traditional means of communication like the print and broadcast might be obsolete but it does not mean that the possibility of the medium is not taken at hand. Given the right specifications, such traditional vehicles of advertising are also considered to be utilized. In here, internet or web/online advertising will be given particular attention.             Internet advertising or sometimes called, as web advertising is a type of advertising in which a person can control or customize the information according to his/her interest with the use of internet ( 2001). It provides instant interaction and connection to the consumers since the buyers or the audiences are the one who decides on what ad to view favorable to the field of their interest. The consumers are given the power to control the opportunity in establishing an on-line participation through the use of internet ( 1997;  2001). Research found out that 56 percent of the internet users are being exposed to internet advertising and 18 percent of which are actually clicking the ad (‘’ 2003). In Europe, Internet advertising revenues in the year 2000 reached an estimated amount of US$ 180 million in the UK and US$300 million in France ( 2001). In internet advertising, the companies are able to use different formats depending on the company’s preferred strategies on advertising their products or services. These formats come with the placement of the advertisement on banners, pop-ups, click through, sponsorships and others ( &  1999). The Sunbeam management can use all the said formats in reference to their products. Formats are simply the way the advertisement is placed in the web. It is the company’s decision on what format are they going to use to effectively establish the rendered products and services. Other IMC approach to be used is sponsorship, sales promotion, direct selling and public relations. Marketing-related sponsorships are closer to advertising than to any other marketing communications instrument. The main objectives of sponsorship are similar to those of advertising (e. to build brand awareness for new and existing products in the short and the long run, to build and improve the brand or company image, and to reinforce brand familiarity and use). Although sponsorship, just like advertising, can be used to serve short-term goals, like product trial and market penetration, its main strength lies in the long-term support of brand awareness and brand image, and other IMC tools are needed to stimulate buying behavior in the short run (. 1997). In relation to Sunbeam and its products, the people behind the project must strive to look for potential host or co-sponsors. By doing this, the introduction of the product to a large scale audience is assured. For instance, a significant action is the participation of the company to consumer shows and exhibits. Whereas advertising offers a reason to buy a product, sales promotion gives the customer an incentive to buy it ( 2003). Sales promotion is a tool that influences the cognitive (behavior) component of buying behavior, whereas tools such as advertising, sponsorship and marketing PR play a greater role in the cognitive and affective components of the buying decision. Sales promotion of Sunbeam and its products is dependent on the placement of the product in the retailers. Thus, the Sunbeam management must concentrate on the marketing directives being implemented by the potential dealers and outlets of the product availability. Due to technological changes, database technology, and changing buying habits, direct marketing together with e-communications has probably undergone the most drastic changes of all communication mix instruments ( and  2004, ). The various means of direct marketing such as direct mail, telemarketing, and direct response advertising have evolved from very traditional low profile and pushy techniques to a potentially highly sophisticated set of tools to build long-term relationships and engage in profitable interactions with customers. In this case, the Sunbeam authorities no longer need to stick to the plan of direct marketing instead such actions must be integrated to the whole process of the product introduction.             In positioning a product, it is advised that it should be more straightforward. In order to do business of any kind in today's competitive and turbulent markets, both marketing and public relations are needed. Public relation, according to  (2000, ) “involves a variety of programs designed to promote or protect a company's image or its individual products”. Providing the public or the target market the most necessary information about the product – Sunbeam will make them convince that it is indeed a good one. The corporate responsibility as well as social consideration of the company that produces and supplies appliances models must be ethically acceptable especially in relation to the setting of the marketing activity. In IMC and with all the given information being relayed to the target market, Sunbeam and its products must have a constant effort in supervising the improvement of the mechanism. Trouble-shooting is also relevant since it predicts possible pitfalls and dangers of the actions being done especially in connection to marketing the product. The IMC principles that are used as the approach to be used must be reinforced by good management within the limits of the company. Also, the relationship of the company and product in the external environment of the business operation is mutual. Customer loyalty is a ‘must’ target. Cultivating customer loyalty is about establishing a relationship between the company and its consumers ( and  1997). This is emphasized by  (1997) who considers that gaining consumer loyalty is a business’s most advantageous strategic purpose because it has a constructive effect on company, culture, development and the bottom-line. Aside from being a strategic purpose, gaining consumer loyalty is also a key corporate challenge today especially in the increasingly competitive and crowded marketplace because of the eventual and inevitable profitability it will provide the company ( and  1997). Since customer loyalty is not a one-sided arrangement with the company reaping all the benefits, the customers also expect a reward. Aside from assuring customer satisfaction, the company will also devise strategies that will make the regular customers buy more or induce new trials from more people to patronize the product. Strategies like price-off particularly a few months after the launching period, bonus packs or tie-ups with the companies other products during the launching period, free trials for new customers, warranty or free consultation on booths, prizes through raffle draws, issuance of patronage card/reward, and product sponsorships for contests that are both directly and directly associated to the lifestyle of the target market is applicable. All in all, the proposed marketing communication approach is still dependent on the significant changes within the management. All suggested techniques are proven to be effective in several situations as seen in numerous literatures. However, with the given innovativeness and nature of the company, the management involved in marketing must be equipped with the knowledge and ability to answer the questions raised by the foreign market. For example, a 30 seconds TV commercial will be produced to feature the products of Sunbeam. In this commercial, popular yet locally based commercial models will be featured. Scouts will be hired to find the right person for the ad. Print and radio ads will also be included. Print ad will be no more than 5”X5” in terms of size, which will be added to popular newspapers and magazines particularly focusing on consumer needs. A one page ad will also be added to local magazines. For the radio, the same audio that will on the commercial will be featured to save cost in production.   PLACE STRATEGY             Decisions involving the place/distribution are also crucial in meeting the needs of the target market. There are many factors to consider such as the choice of location where the product will be sold to the consumers, and the various channel distribution required to bring the product in the target market. Elements of distribution channel include the packaging, storage facilities, transportation, and the members of the channel itself (e.g. producers, brokers, retailers and households). It is always relevant to choose a channel pattern that is suitable for the target market needs. Sunbeam and its products will be reintroduced using the improved marketing communications scheme. Then, if all goes well, and when the advertisements were already exposed for two months, Sunbeam will also be introduced to other places. The ideal place where Sunbeam’s products should be usually seen, along with its advertisements and promotions, is on appliance centers and major supermarkets. A special location in every supermarket should be requested – where the people can easily see the new product. Sunbeam products should have a place near the entrances of the shops, or anywhere in which potential buyers can easily have a glimpse on the products. The following are the marketing plan for place: Ø      Acquire a visible spot in appliance centers and supermarkets. Ø      Do market research. Ø      Distribute the products on other cities. Ø      Market only to places where the product can rise. PRODUCT STRATEGY Product-service offering, on the hand involves the offerings that can be manipulated. These include the features or attributes (actual or perceived), images, warranties, after-sales service, training for the customers, delivery, installation of the product, and responsibility for the product at the end of its productive life. Sunbeam offers the same innovative product features. Thus, the product marketing strategy will be on the improvement of the packaging. Packaging will be improved with the following steps: Ø      Research on the most favored color of consumers. Ø      Research on the most favored type of design. Ø      Change color of products, relating to the findings of the market and consumer researches. Ø      Change packaging design relating to the findings of the research.   ACTION PROGRAMS Marketing Plan for six months – one year Plan for 1st – 3rd months               The first three months will focus on the market and consumer research by commissioned marketing personnel. Strategic marketing planning and meeting particularly on communications are consistent among the marketing team. Financial considerations are carefully studied in relation to the budgetary needs of the proposed plan.     Plan for the 4th – 6th months               The fourth to sixth months, Sunbeam will initiate the creation and materialization of the marketing communication plan for the products. The project will focus on increase of sales, presentation of other product features, and expansion of popularity on other key places. Commissioning an advertising agency is suggested. Also, the IT committee must work in relation to internet advertising.   Plan for the 7th – 9th months               In the seventh to ninth months, the different marketing communications will be individually launched. The suggested process is that the advertisements should be released one at a time so as to deliberately reinforce the message of each one of them. Assessment will be made on whether such mechanisms are effective. Adjustments in distributions and promotions will also be. It is expected that Sunbeam is already well-established in Australia and gain favorable results in terms of revenue.   Plan for 10th – 12th months             Sunbeam will continue monitoring the effects of the marketing communications plan. It is also imperative that the finance committee will provide a breakdown of expenses for the project. If the program is seen to be effective, another marketing communications must be considered.   PROJECT PROFITS AND LOSS STATEMENT Proposed Budget             Advertising Costs   Logistics Miscellaneous   50%     35%     5% *All percentages are directly quoted from the total budget approved by the upper management.   The buyers in the industry are important, obviously. Powerful buyers drive down profitability because they bargain for lower prices, demand better product features for the same price, and play one competitor against another. In the context of the current status of the supply chain of company, the influence of the buyers intensifies. Even if the product is a commodity, there are ways to differentiate it in terms of the services that surround it. Differentiation can occur from the very first time customers becomes aware of their product to the time when they must dispose of it. Sunbeam should sort this out and should also offer additional services or support to customers in exchange for a larger share of their total purchases. It is also deemed necessary for them to develop services that make it easier for them to work with the company as a single source supplier.   CONTROLS             The above proposal is implemented under the supervision of the Marketing Manager. All underlying mechanisms are only implemented if approved and evaluated.             With the present conditions and conventions in the global marketplace, there are several aspects that can be considered to undergo development especially in relation to marketing communications. Management experts must equip their selves with high-end knowledge and should replace the worn-out ideas. They should reinforce the need of every student to acquire not only theoretical but also realistic characteristics that will be useful in their future careers. The given importance of research and development (R&D) must be incorporated in every communications activities. The corporate management, in the same manner, should familiarise their selves with the organisational structures, processes, and many other related facts before delving into managerial decision making and taking. Communication together with management and marketing theories must be exhaustively explained and understood by the instructor and also the learner. The integration of theory and application is enforced. Mission success is really a continuing cycle. The organisation must first capture feedback and formulate a careful plan of attack. Then it must effectively execute its plans. Finally, it must report and build upon its results in order to drive consensus for future action. The following could be considered as practical recommendations to further intensify the competitive edge of the company. The need to be innovative and the need to explore new approaches in the future are integral parts of the company’s culture. There is a willingness to take risks and an eagerness to break new ground. People are hired for their creativity and diversity. Innovative people are appropriately recognized. Thus, formal training sessions are used to help people free up their creative energies and become more innovative ( and  1995). R&D programs must be directed to the progress and growth of the company. This will also help in developing more products that will address the competition in the market. In customer welfare, consumer feedback system must be reinforced. The resolution of customer complaints and problems is a key for companies to be able to maintain the loyalty of their dissatisfied customers. Dissatisfied customers are more likely to tell people about their experience than satisfied customers are ( &  1997). After finding out the problems from the viewpoint of the customers, Sunbeam should undertake actions that would not only address the complaints of the customers but as well as actions that would lead to organizational improvements. In implementing marketing strategies, there is a need for continuing optimization – the ability to assess a myriad of possibilities in order to find the best one or near best one ( &  2003). In cooperation with the other elements of marketing and business management, strategies must be evaluated and improved. In building the impression of people about the company, Sunbeam must reach out to a broader target market and must project an image relevant to every members of the society. Its corporate social responsibility must be defined. In the management of Sunbeam,             leadership and administration of the company must be a supplemental mechanism in the workforce. Human resources management improvements must be considered to fully utilize human asset. With the growing market and competitive edge of Sunbeam, its workforce also plays a significant role in materializing defined objectives and achieving success. According to  (1995), “corporate success is based on the distinctive capabilities of the firm - those things, often the product of its particular history, which competitors cannot reproduce even after others realize the benefits these capabilities bring to the company that enjoys them.” For some people judge success by size, they look at a firm's sales, its market share, and its value on the stock market. Sometimes performance is assessed by reference to rate of return. This can be measured as return on equity, on investment, or on sales. And sometimes success is measured by growth, reflected in increase in output, movements in earnings per share, or prospectively, the firm's price-earnings ratio. All of these are aspects of successful performance. The current position of Sunbeam in the appliance industry of Australia is a clear definition of success.   References

MARKETING MANAGEMENT

Sunbeam: a Proposed Marketing Plan EXECUTIVE SUMMARY Analyzing the status, strategies and resources of businesses and ...