Research Korner: Marketing Concepts

Product and Brand

What is the difference between a product and a brand?               In marketing, product is anything that can be offered to the market that may satisfy the need, want, and demand of a certain individual or market. It is also called as goods or service. Product is more than just a material object. It is also an inclusive package of benefits or satisfactions that the consumer or buyer will achieve upon purchase or usage. A product is a total amount of all physical, psychological, symbolic, and service attributes. Several examples of products are the following: hamburger, fries, and soft drink.             On the other hand, brand is a symbolic manifestation of all the information connected with a company, product, or service. A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons. It is believe that a brand puts an impression to the consumer on what to expect to the product or service being offered. In other application, brand may be referred as trademark, which is legally appropriate term. In summary, a 'brand' is a symbol of a product (Coca-Cola), service (Eurostar trains), company (Campari) or even an individual (Michael Jordan) to identify what it is. Specifically, an example of brand is McDonald’s fast food restaurant, which carries the world’s most popular Golden Arches.   Why do companies develop core products into brands?               In quest for market leadership and inevitable competition, companies worldwide develop their core products into brands in order to present and maintain their company’s name existing in the marketplace through the product/service itself. They utilize the brand to present their company’s symbol, color, goal (as to some cases of brand taglines), and some interesting and persuasive features of the company to all the consumers. The development of core products into brands is an innovative way to leave a lasting impact on memory of consumers on what the product/service is and who manufactures or makes it. This is a simple way to established awareness on the specified target market of the product/service or company.   What role does packaging play in marketing a brand?   At the very heart of a strong brand sits the product/service package. This is what the customer is buying. A product, a service or, more and more is a total package. A package serves as the protector of the product itself. It is very important for the product to have an innovative yet practical package. Packaging is of great significance in the final choice of the potential buyer. Consumers always look for something new. People choose a product that involves convenience, appeal, information and branding in the package. In this case, constant research and development of the product packaging should be done. Product package and packaging is absolutely critical for a product in order to survive the increasing competition. It is also argued that product innovation is absolutely the key to long-term competitiveness. Customer information in more traditional industries is of course also useful. Traditionally, product improvements and development of new products have been based on a combination of analysis of market trends and creativity/intuition. The combination of the two will always be required. NO. OF WORDS: 524 words including the statement of the questions

Product and Brand

What is the difference between a product and a brand? In marketing, product is anything that can be offered to the mar...

Strategic Management:United Airlines

Problem:  The Airline Industry is a very competitive business; the United Airlines should implement a new and innovative Strategic Management plan in order to stay on top of the competition.     Every business is subject to factors that affect the firm’s function as a whole.  These factors are the ones attributed for the success or even the failure of a business.  In the light of this, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit.               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. Traditionally, marketing has been utilized by the private sector in decisively increasing the capabilities of an organization. Marketing can be considered as one of the most important element underpinning successful business creation (1994). Perhaps because of its complex applications, marketing have been defined in a variety of ways (1988). The marketing concept was first promulgated in the late 1950’s (1990). The importance of marketing concept incorporates oft-repeated elements such as: customer orientation; integrated marketing efforts; and resultant profitability.   Today, more and more people and organization are trying to be recognized in the business arena.  With this objective, these organizations had been able to competently and effectively adapt to the situation in the market place by using different strategies that enhanced their competitiveness. In lieu with this, the main purpose of this paper is to provide a comprehensive discussion of marketing and management strategies of the United Airlines, The critical evaluation of the marketing strategy also includes significant aspect such as market condition, competitors, and customers’ expectations. Company Profile The United Airlines declared bankruptcy of almost $3billion dollars. The downfall of the United Airlines was caused by the 9/11 terrorist attack. If one focuses on airline sales alone the potential is enormous. United Airlines, one of the first and most successful of the major international airlines to sell online, expects to be selling about 20 per cent of its tickets through the Internet by 2003. If one were to assume a similar penetration of Internet sales for both passengers and cargo among all the airlines of the four major alliance groupings then revenues generated would be around US$34 billion in 2003. Perhaps not all the alliance members will be in a position to achieve such high Internet sales by 2003. However, any shortfall will be more than offset by Internet sales by several non-alliance airlines who will be achieving high Internet sales by 2003 or earlier. In the United States, forecasters predicted that 32 per cent of all US business travel will migrate online by 2003 and 10 per cent of leisure travel Strategic Management Primarily, the main reason for the need of the company to have a marketing strategy to the products/services is COMPETITION. Today’s market is characterized by highly competitive organizations which are all vying for consumer’s loyalty. 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.   The possibility to bestow a competitive advantage is not intrinsic in all resources (1989). Nevertheless, to a certain extent, in simply those that satisfy a thorough collection of situations (1991;1993). The first condition is that the resource has to be important. That is, it has got to supply the chance to make use of a number of environmental opportunities or counterbalance a few hazards. Resources are believed to be important when they allow an organization to conjure up of or put into practice strategies that perk up the organization's competence or efficiency (1991). A number of authors interpret importance in the context of satisfying a key consumer requirement (1989;1985).   Additionally, resources have to have the features of exceptionality. If important resources are owned by a great number of competitors or possible competitors, they no longer correspond to a source of competitive advantage. This is the key subject of heterogeneity fundamental to the resource-based view. In this context, organizations owning exceptional and inimitable collections of capacities and resources can accomplish a sustainable competitive advantage. Third, there have got to be the condition of imperfect mobility of resources. Where resources are effortlessly traded among competitors, no competitive advantage can be preserved. Imperfectly mobile resources take account of those that are characteristic to the organization (1979), those for which property rights are not well characterized (1989), or those that are co-specialized assets (1990). The imperfect mobility of assets is a decisive feature in businesses as the consumers are the key assets in a lot of circumstances, and their high mobility recurrently results in the shortfall of accounts and the materialization of new competitive threats as in the condition and eventually shifting to other companies that directly compete for the similar market.   For an advantage to be maintained, resources have got to be imperfectly imitable (1991) or offer a few ex-post restrictions to competition. That is to say that following to an organization acquiring a superior position and receiving rents, forces have to be made that could limit competition for those rents (1993). It was taken into account above that innovation such as the improvement of a new kind of account by a retail bank or a new promotion approach by a creative department recurrently triggers a multitude of replications from competitors. For an organization to be in a situation to make use of an important and rare resource, there have got to be a resource position obstruction averting replication by other companies (1989). Preserving a competitive advantage over a period of time necessitates the attendance of separating instruments that thwarts replication. Quite a few such obstructions that have been taken down in the literature consist of causal ambiguity (1990) and uncertain imitability (1982), where the motivations of success are not easy to recognize. Replication may similarly be thwarted by the process of asset stock accumulation within the organization. Where these stocks have power over the features of time compression diseconomies, asset mass efficiencies, and interconnectedness, then replication is not easy (1989). Without a doubt, the implication of asset stock accumulation in the business sector has been established elsewhere, when the reservoir of organizational and managerial knowledge that has been developed over the years can make available branch offices with information at a price very much inferior than a de novo indigenous organization would have to bring upon itself (1986. ) that is to say, an ownership advantage in global competition.             Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successful in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (1997).   Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (1979;1990). 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. According to  (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.               The researcher considers COMPETITION as the strongest force to be considered in making the product/service marketing strategy. However, there are also some management perspectives to be taken at hand but it is no longer covered by the purposes of this report. Because competition is prevalent in the chosen target market and line of enterprise, it is essential to study its coverage including its limits and potential opportunities for the benefit of the business.             To formulate such marketing strategy for the service of United Airlines, the management must take into consideration some significant aspects such as market condition, competitor analysis, and consumer expectations as foundational considerations.             Market Conditions The United Airlines operates under the deregulation of the airline industry in 1978, the industry began to change and transform competitively into the model implemented by most airlines today. Hence, the company is struggling for its competitive advantage by using its implemented marketing strategy. Competitors The top competitors of United Airlines are the multinational airlines companies that are venturing in the same market and offering similar line of services to the chosen clientele. These airlines companies are: American Airlines, Delta, Lufthansa and Japan Airlines. The effects of the global business economy, globalization, and the changing consumer behaviour and needs are perceived reasons on why MNCs are predominant in their situated venue.   Client’s Expectations             The United Airlines offers a personalized line of service, the clients possess the freedom to choose from the line of services they offered. Every consumer is expecting for continuous and excellent service. They also anticipate for new service innovation that will suit their varying taste whenever new threats are present in the market. In general, consumer always expect for better products and services that will satisfy their needs. Cost Structure 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. Further, the existence of Internet and the continued revolution in the world of Information Technology are certainly positive signs for the blossoming of many new advertising opportunities. For instance, pop-up ads and email ads have started to invade the Internet. Most advertising firms have also started to exert efforts to make their advertisements appealing to the public ( 2001).

Strategic Management:United Airlines

Problem : The Airline Industry is a very competitive business; the United Airlines should implement a new and innovative Strategic Manag...

Walmart’s Marketing Effectiveness

Walmart’s Marketing Effectiveness   Marketing Effectiveness evaluation There is a need to examine the five forces model being used by Wal-Mart in China using marketing tools like PEST and Porter’s Five Forces Model for evaluating its marketing effectiveness and to determine the situation of the company in the internal and external marketing environment. In order to analyze the environmental aspects of Wal-Mart China, PEST analysis will also be used. PEST Stands for Political, Economic, Sociocultural and Technological factors that influence the overall performance of a business in the market place.   Five Forces According to  (1980), some industries tend to become more profitable and competitive than the others. Henceforth, an existing industry such as the Wal-Mart should always remember that their industry will only survive by utilizing a strategy that would enhance the competitiveness of the business. In Porter’s model it is assumed that there are five forces that particularly affect an industry. The model is useful if a manager who strives to get the better off rivals. The framework provides excellent understanding of the industry context in which the firm operates. Porter’s Five Forces Model includes threat of entrance of new industries. The main objective of Wal-Mart China is stay in the competitive position in the global market Although, the company knew that this type of industry belongs to higher entry barriers, the management has been able utilize an approach to make sure that the company will still be competitive in the international level.  In order for Wal-Mart to compete and stay in the international marketing environment, the management team had provided a long term vision to be followed by the industry as a whole. The agreement made by Wal-Mart with other leading industries has strengthened their capabilities to compete in the global arena in terms of producing quality products and service. Moreover, with the existence of new entrants in this kind of business, the competition becomes tougher and tougher. Since, these new entrants can be a threat for the company in terms of substitute products, Wal-Mart have again utilizes a strategy that will enhance their product more. The company utilizes product differentiation approach as their marketing strategy to ensure that with these new entrants their product will still be different, unique and full of quality to satisfy their target market. The bargaining power of a supplier could be a threat for the profit of the company, and Wal-Mart management is aware of it. In addition, Wal-Mart also uses supply and distribution channel effectively. Porter’s also include in his model the concept of the bargaining power of Buyers. Hence, Wal-Mart sees to it that their clients will be satisfied of their products. Since the competition of these industries worldwide is very strong, Wal-Mart utilizes all their resources to enhance the operation of the China branch and to be recognized as a leading industry. In addition, it also shows that part of the five forces of the company is product or service differentiation as Wal-Mart has been able to adapt to the marketing environment because of its strong commitment of providing quality products and services for both of their business operations. Figure 2: Porter’s Five Forces Model   Upon close examination of the retail and department store industry, the researcher has assessed using Porter’s five forces model that firstly the competition in the specific industry is very strong as there are several numbers of rivals that can compete on one location as departments stores are a commodity and typically, there is also low switching cost upon opting for another department store. In addition, these rivals may also introduce new items or introduce a totally different service). It must also be noted that department store rivals can compete on price. In terms of the threat for potential new entrants, it is rather weak as it is very difficult to establish another chain in China which will serve many international locations. Also, the cost of entry is very expensive especially if planning to expand globally. It must also be noted that it is also difficult to beat the brand name value of Wal-Mart as it has been established and well-known for decades already.             Next, as for the bargaining power of buyers, the researcher has assessed that in the department store industry, it is very strong. Basically there are a lot of other department stores to choose from because the market structure is competition. Moreover, buyers usually have no incentive to be loyal. So what if they choose another department store? Switching cost or opting for another department store is relatively low.             The bargaining power of suppliers is weak. Their suppliers are providing commodities with a market structure of strong competition as well; hence, there are still many suppliers to choose from. In addition, this competition among suppliers may facilitate driving down prices as well. Finally, the threat of substitute product and services is strong. As mentioned earlier, there is a relatively low switching cost making it easier for customers to shift from department stores to other related commodity which may vary from discount stores to online shopping to anywhere which can cater to the buying needs of customers. Plus, it must be noted that it is rather very unlikely than individuals will shopping in only one department store and nothing else. Lastly, the location of the department store may also influence customers to try out a substitute. Political Sector A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. Wal-Mart China has been able to follow the principles of business ethics. Hence, the company considers legality in all their actions. They make sure that all their products and services adhere to the standards and wills satisfy their client worldwide. Politically, the company had been able to follow all the standards set by China and other international organization satisfies their customers.   Economic Sector Economically, it can be said that throughout the years, Wal-Mart, even before it came to China, had enjoyed being at the top of its competitors.  The economic status of Wal-Mart is highly remarkable that it always give its consumers the best and quality products and services in the two business divisions.  In addition, the company’s growth and expansion on different countries in the world is an obvious evidence that Wal-Mart has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place.   Sociocultural Sector Culture is an important factor in understanding an industry, because for any organization to operate effectively it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization.  (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture. In Wal-Mart, the management sees to it that they value the opinion of their employees no matter what is their nationality. Since, this company is competing globally; it cannot be denied that they need employees from different cultures to be in the company to help in the decision making. It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. In addition, as mentioned earlier, the company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and services in aviation and special material industries. Herein, the company values the consumer by knowing their demands and providing their demands and in MP3 manufacturing and special material products. The Wal-Mart core mission to provide customer satisfaction at a less price is also given emphasis. Accordingly the company’s mission and vision can only be achieved if and only if they would focus immensely on satisfying their customers and clients. Wal-Mart has many consumers all over the world and the company is succeeding due loyalty given by their target market. To be able to serve their customer and clients better, Wal-Mart have initialized a strategy which includes a set strategies that greatly influence the whole corporation in achieving its goal.   Technological Sector The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (1993). Wal-Mart has been able to use technological advancement for creating new and innovative products and services needed by its customers may it be from the aviation or the special materials business. Part of this is their utilization of modern technology in producing new products that will meet the demands of their target market. They also use the purpose of information technology by creating their own website to let their consumers have an easy access of knowing the company and the products and services that the company has made for them. In fact Wal-Mart in the United States and other countries have used technology in the form of online stores to be able to reach widely its customers.   Strategic Marketing Planning and Marketing             Now the world's largest and most profitable retailer, Wal-Mart used to be a small retailer in the southern states of the USA. Growth has been founded on a belief in the importance of information technology systems in building an efficient operation. Much of Wal-Mart's success has been ascribed to its stockless warehouse JIT distribution system. Goods delivered to the regional distribution depots are immediately picked for reshipment and sent on to stores. Economies of scale mean that Wal-Mart can purchase full truckloads from suppliers, gaining a critical 3 per cent cost advantage over competitors (2002). Wal-Mart’s goal is to give our customers the best value they can find anywhere. Costumers trust Wal-Mart to have not only the lowest prices, but also the best selection of quality items that are relevant to their needs and the easiest, most convenient shopping experience. With the unbeatable prices and exciting surprises that Wal-Mart is offering customers, costumers know that they won't be disappointed by the value they can find at Wal-Mart.             The system is based on a private satellite EDI communications network that sends EPOS data to 4,000 suppliers. Employees, management and suppliers have access to real-time sales, stock and order information plus buying patterns (2002). Every business is subject to factors that affect the firm’s function as a whole.  These factors are the ones attributed for the success or even the failure of a business (1997). In light of this, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit (1994). Today, more and more people and organization are striving to be recognized in the business arena. With this objective, these organizations had been able to competently and effectively adapt to the situation in the market place by using generic strategies that enhanced their competitiveness. There are five different generic strategies that a business can choose. These include cost leadership, differentiation, focused cost leadership and integrated cost leadership/differentiation. Each generic strategy helps the company to establish and exploit a competitive advantage within a particular competitive scope (2003). Ansoff’s Growth Matrix   Existing Products New Products Existing Markets Wal-Mart focuses on selling existing products into existing markets. These are products that are available also in the other branches of Wal-Mart. Wal-Mart introduces new products into existing markets. These could be products that are unique only to the Chinese market. New Markets Sell its existing products into new markets, e.g., introduce Wal-Mart online shopping in China. Wal-Mart markets new products in new markets. This can be done by offering new products that are available only online.   In market penetration, Wal-Mart focuses on markets and products it knows well for a long time. It is likely to have good information on competitors and on customer needs. The company can sell existing products to existing markets by the following objectives: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Wal-Mart can maintain or increase the market share of current products offered in their location by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Secure dominance of growth markets.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Increase usage by existing costumers – for example by introducing loyalty schemes. </li> </ul> Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy including: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> New geographical markets, for example exporting the product to a new country</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> New product dimensions or packaging</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> New distribution channels</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Different pricing policies to attract different customers or create new market segments</li> </ul> Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets Diversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of risks.             Competitive strategies that are employed by Wal-Mart in order to stay ahead of the competition include the following: ·         Customers will find the lowest prices on items in all the hottest gift categories -- toys, electronics, apparel, and home. ·         Any Wal-Mart store will match any price featured on an identical product in a local competitor's print advertisement. ·         As always, no Wal-Mart prices are based on rebates. ·         Special values will be available in all Wal-Mart stores from specific hours. ·         Customers can go to Walmart.com () to preview specials available at Wal-Mart stores. This paper has strongly recognized the importance of understanding competitors in strategic marketing planning for the benefits that it gives to the successful planning of marketing activities. These benefits and advantages include the following. First, understanding competitors will facilitate the firm’s management to understand their competitive advantage and disadvantages in relation to their competitors. Second, understanding competitors will also generate understanding of the past, present and future strategies of the firm. Third, it offers the firm an informed basis to develop strategies in order to gain or maintain competitive advantage against their competitors in the future. Lastly, understanding competitors will also facilitate the firm in forecasting or predicting the financial returns that they made from future investments.

Walmart’s Marketing Effectiveness

Walmart’s Marketing Effectiveness Marketing Effectiveness evaluation There is a need to examine the five forces model being used b...

Porter's Five Forces Model on BBA GROUP - a textile company

Introduction Every business is subject to factors that affect the firm’s function as a whole.  These factors are the ones attributed for the success or even the failure of a business (Oliver 1997).  In the light of this, there are certain ways or techniques to be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business, the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit (Moschis 1994). Today, more and more people and organization are striving to be recognized in the business arena.  With this objective, these organizations had been able to competently and effectively adapt to the situation in the market place by using generic strategies that enhanced their competitiveness.  There are five different generic strategies that a business can choose.  These include cost leadership, differentiation, focused cost leadership and integrated cost leadership/differentiation.  Each generic strategy helps the company to establish and exploit a competitive advantage within a particular competitive scope (Hitt, Ireland & Hoskisson  2003). Thus, this paper will critically examine the generic strategy used by BBA Group. Further this paper will provide an analysis of the company using some marketing tools like PEST and Porter’s Five Forces Model to determine the situation of the company in the internal and external marketing environment. In addition, this paper will also give emphasis on the competitiveness of the company.  Herein, the discussion will include the determination of the strategies used by the company. Overview of the Company             BBA Group has been established in 1897 as a textile manufacturing industry, named W.Wilson Cobbett Ltd.  At present, BBA groups operate in a global market in two distinctive areas of business.  First the aviation service systems which consist of Aviation Services and BBA aviation systems, through its subsidiaries in Latin America, US and Europe.  This division provides fuelling and refuelling services, cleaning, maintenance, aircraft sales, servicing, repair, technical support and training of pilots.  Next, BBA develops specific material for different industrial and hygiene sectors. Herein, they provide non-fabric products by the mechanical interweavement of textile fibres for the manufacture of sanitary towels and babies nappies.  This business division also specializes in embossing activities for printing original colour motifs like kitchen paper. BBA Group is publicly recognized company traded on UK stock exchange.  The companies involved in such group focus on providing products and services to aviation industries and speciality materials industries.  The aviation services and systems groups serve regional airline, commercial and military aviation clients and world business aviation by it primary operating industries and their subsidiaries. Some of these industries are Signature Flight Support, International Turbine Service, Dallas Air motive and others.  The aviation division of BBA is known to be the 5th largest aviation groups in UK and amongst the top 40 largest industries in the world market.             Furthermore, BBA is also a vital player in the aviation support business. Such group has business operations at over 100 locations in the international market including 46 of the world’s top 100 airports.  Part of the companies business is joining mergers and acquisition. Such strategy helped the company to expand its business portfolio and expand their territories in the global market. Utilizing PEST Analysis In order to analyze the environmental aspects of BBA Group, PEST analysis will be used.  PEST Stands for Political, Economic, Sociocultural and Technological factors that influence Argyle’s overall performance in the market place. ·        Political Sector A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy.  BBA Group has been able to follow the principles of business ethics. Hence, the company considers legality in all their actions.  They make sure that all their products and services adhere to the standards and wills satisfy their client worldwide.  Politically, BBA group had been able to follow all the standards set by the country and other international organization satisfies their customers. ·        Economic Sector Economically, it can be said that throughout the years, BBA Group had enjoyed being at the top of its competitors.  The economic status of BBA is highly remarkable that it always give its consumers the best and quality products and services in the two business divisions.  In addition, the company’s growth and expansion on different countries in the world is an obvious evidence that BBA has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place. ·        Sociocultural Sector Culture is an important factor in understanding an industry, because for any organization to operate effectively, it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization.  Hofstede (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture.  In the BBA, the management sees to it that they value the opinion of their employees no matter what is their nationality.  Since, this company is competing globally; it cannot be denied that they need employees from different cultures to be in the company to help in the decision making.  It is also indicated that the international managers has been able to create a positive relationship in the local managers. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. In addition, as mentioned earlier, the company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and services in aviation and special material industries. Herein, the company values the consumer by knowing their demands and providing their demands and in aviation and special material products. The business division of BBA has been able to make the company more competitive. Moreover, with the BBA core mission to provide customer satisfaction is also given emphasis. Accordingly, the company’s mission and vision can only be achieved if and only they would focus immensely on satisfying their customers and clients. BBA had many consumers all over the world and the company is succeeding due loyalty given by their target market. To be able to serve their customer and clients better, they have initialize a strategy which includes a set of strategies that greatly influence the whole corporation in achieving its goal. ·        Technological Sector The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both Technology and business managers towards more strategically oriented approaches for planning and management of any industry (Luftman, Oldach & Lewis, 1993).  BBA has been able to use technological advancement for creating new and innovative products and services needed by its customers may it be from the aviation or the special materials business. Part of this is their utilization of modern technology in producing new products that will meet the demands of their target market. They also use the purpose of information technology by creating their own website to let their consumers have an easy access of knowing the company and the products and services that the company has made for them. Review Industry Structure             An industry is a group of firms that market its products closely substituted from each other.  According to Porter (1980), some industries tend to become more profitable and competitive than the others. Hence, an existing industry such as the BBA Group based in UK should always remember that their industry will only survive by utilizing a strategy that would enhance the competitiveness of the business. In Porter’s model, it is assumed that there are five forces that particularly affect an industry. The model is useful if a manager strives to get the better off rivals. The framework provides excellent understanding of the industry context in which the firm operates.             Porter’s Five Forces Model includes threat of entrance of new industries.  The main objective of BBA is to stay in the competitive position in the global market Although, the company knew that this type of industry belongs to higher entry barriers, the management has been able utilize an approach to make sure that the company will still be competitive in the international level.  In order for BBA to compete and stay in the international marketing environment, the management team had provided a long term vision to be followed by the industry as a whole. The use of merging and acquisitions has been able to strengthen the capability of the company to strongly and efficiently compete within the marketplace in both local and international arena.  The agreement made by BBA with these leading industries has strengthened their capabilities to compete in the global arena in terms of producing quality products and service especially for their aviation systems.  Moreover, with the existence of new entrants in this kind of business, the competition becomes tougher and tougher.  Since, these new entrants can be a threat for the company in terms of substitute products, BBA have again utilizes a strategy that will enhance their product more. Product differentiation approach was implemented by the company as their marketing strategy. This is to ensure that with these new entrants their product will still be different, unique and full of quality to satisfy their target market. The bargaining power of a supplier could be a threat for the profit of the company, and BBA management is aware of it.  Since the company’s goal is to provide the customers of their needs and expectations in terms of diamond production, the company has been able to utilize all its resources. In addition, BBA, also uses supply and distribution channel effectively. Porter’s also include in his model the concept of the bargaining power of Buyers. Hence, BBA sees to it that their clients will be satisfied in their products with regards to aviation or special material products or service.  According to the management of the company, the Argyle fundamental premise is a simple as achieving the core mission and objective by merely satisfying their customers and clients. And lastly, BBA also considers the intensity of rivalry.  In this manner, they are willing to provide strategies and techniques in a way that their competitors will see them as a tough competitor for the benefit of the whole organization. Since the competition of these industries worldwide is very strong, BBA utilizes all their resources to enhance the operation of the BBA and to be recognized as the leading industry in diamond production. They also tried to include innovative marketing strategy and used technologically advanced equipments to produce quality diamond products. Conclusion             Analysis shows that because of the management and marketing strategies of BBA Group, they are still enjoying their competitive position and competitive advantage in the global market.  In addition, it also shows that part of the generic strategy of the company is product or service differentiation and joining into mergers and acquisitions.  The company has been able to adapt to the marketing environment because of its strong commitment of providing quality products and services for both of their business operations. References BBA GROUP (2006).  Available at [www.bbagroup.com]. Accessed on [24/04/06].    BBA GROUP (2006).  Available at [http://uk.finance.yahoo.com/q/pr?s=BBA.L]. Accessed on [24/04/2006]. Hitt, MA, Ireland, RD and Hoskisson, RE, 2003, Strategic Management, Competitiveness and Globalization.  5th Edition. Thomson, Southwestern. Hofstede, G (1991). Culture and Organization. Software of the mind. New York: McGraw-Hall Book Company Luftman, J.N.; Lewis, P.R; Oldach, S.H. (1993). “Transforming the Enterprise: The Alignment of Business and Information Technology Strategies.” IBM Systems Journal 32(1): 198-221. Moschis, G, 1994, Marketing Strategies for the Mature Market, Westport, C.T.        Quorum Books Oliver, C, 1997, Sustainable competitive advantage: Combining institutional and resource-Based views. Strategic Management Journal, Vol 18. No. (9), pp. 697-713. Porter, M. E. (1980).  Competitive Strategy. Free Press.

Porter's Five Forces Model on BBA GROUP - a textile company

Introduction Every business is subject to factors that affect the firm’s function as a whole. These factors are the ones attributed for t...

Baby Boomers and Attitudes towards AARP

Research Proposal Baby Boomers and Attitudes towards AARP   OVERVIEW Background             AARP (Australian Association of Retired Persons) is a membership and advocacy organizations for people in the age of 50 and above group. The organization offers group discount programs, consumer education, and other services in addition to lobbying of its members. However, AARP isn’t just for retired people anymore, which is why the organization has changed its name and is in the process of completing a major make over. One of AARP’s challenges is to show this new generation of seniors that its services are relevant and valuable. Fewer than one in three baby boomers join AARP when they first receive its invitation during the year they turn 50, although some join when they are a bit older. So AARP has planned new marketing approaches to appeal to this giant segment.             The decision to give special attention to baby boomers has led to AARP’s second challenge: to balance its outreach to 50-year old members with its commitment to older members.   Literature Search             Literature search will focus on the books and surveys developed on the studies and literatures which have focus significantly on baby boomers. The search will also be focus on the literatures on the factors that have influence the behavior and the insights of baby boomer group towards association created to their concerns. The research will also be on the characteristics of the baby boomer group and what are their differences with the other generation in order for us to know the reasons of their behavior towards the AARP.   PROBLEM DEFINITION             The Australian Association of Retired Persons (AARP) is a membership organization which offers some benefits to the retired persons of 50 years old and above. However, the organization notice that their advocacy has not been attractive to the baby boomers generation which is showed in a fewer membership from the group that is, less than one from the three baby boomers.   Decision Problem What are the factors that can influence baby boomer to join AARP?                         Research Problem Evaluate the factors that are involved influencing baby boomer to join AARP.   Research objectives <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To identify the baby boomer group</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To identify baby boomer needs</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To identify the knowledge of baby boomer about AARP.  </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> To analyze ways to attract baby boomer   </li> </ul>   RESEARCH DESIGN Data Collection Method             A research on secondary sources will be use to identify the baby boomer group and what the group is composed of. An interview will be conducted to know their needs that are needed to be addressed by the AARP. Personal or a computer assisted telephone interview will be used to collect data from the respondents. Interview is used because it is more personalized to know what the respondents’ needs and what their personal knowledge on the organization is.  The researchers will also employ a five point Likert response format based on this short scale (5 = strongly disagree; 4 = agree; 3 = neutral; 2 = agree; 1 = strongly agree)   Sampling Method A random sample will be conducted, with a sample frame providing the names and addresses of the respondents. The names, addresses, and phone numbers of households will be loaded into a spreadsheet and randomized. The Computer Assisted Telephone Interviewing (CATI) program will then randomly assign numbers to each interviewee. The formula for sample size calculation will be taken from  (1996) which would cut the total number of interviewees to a retained final number. Proposed Analytical Method             Simple comparisons such as averages, distribution of responses and a survey response rate will be accomplished. Some useful tools used in analysis and for presenting and interpreting statistical data include variance, standard deviation, percentage, average, mode, mean and median will also be employed.   TIME FRAME             The research will be conducted in 3 months time.   LIMITATIONS OF THE STUDY             The study is limited only on the survey on the identification of the needs of the baby boomer group and what they think of the Australian Association of Retired Persons.     APPENDIX

Baby Boomers and Attitudes towards AARP

Research Proposal Baby Boomers and Attitudes towards AARP OVERVIEW Background AARP (Australian Association of Reti...

Walmart’s Marketing Effectiveness

Walmart’s Marketing Effectiveness

Walmart’s Marketing Effectiveness Marketing Effectiveness evaluation There is a need to examine the five forces model being used b...