Marketing & Management Assignment

Marketing & Management
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CONTENTS
PART ONE..........................................................................................................................4
1.0 THE ENVIRONMENT.............................................................................................4
1.1 Economic...............................................................................................................4
1.2 Socio-demographic................................................................................................4
1.3 Political and Legal.................................................................................................4
1.4 Ecological..............................................................................................................5
1.5 Technology............................................................................................................5
1.6 Cultural..................................................................................................................5
2.0 THE SECTOR...............................................................................................................5
2.1 Structure of the sector............................................................................................5
2.2 Client analysis........................................................................................................6
2.3 Distribution structure.............................................................................................7
2.4 Orientation of the sector........................................................................................7
2.5 Security..................................................................................................................7
3.0 THE MARKET..........................................................................................................8
3.1 Quantitative description.........................................................................................8
3.2 Qualitative description...........................................................................................8
4.0 The competition.........................................................................................................8
4.1 Direct competitor...................................................................................................8
PART TWO.........................................................................................................................9
5.0 INTERNAL INFORMATION..................................................................................9
5.1 Products and services.............................................................................................9
5.2 Prices......................................................................................................................9
5.3 Distribution Network.............................................................................................9
5.4 Sales Force...........................................................................................................10
5.5 Communication....................................................................................................10
References..........................................................................................................................11
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PART ONE
1.0 THE ENVIRONMENT
1.1 Economic
Recognise Economic factor is essential for every business organisation during the
expansion of business in other countries. The trends and buying behaviour of customer
mainly depends on the economic factor of a country (Baker, Collier and Jayaraman,
2017). The overall economic condition of Senegal is good so that BWT can operate its
business efficiently. The government also implemented the Plan Senegal Emergent in the
financial year 2014 (Richard, 2018). This plan also triggered the economy of Senegal and
the government also promoted the private sectors activity to maintain the GDP growth
rate.
1.2 Socio-demographic
It is one of the most stable countries of Africa and majority of people in this country are
involved with fisheries, phosphates, groundnuts and tourism business. Poor economic
management of the country also changes the trend of general people so that it is tough for
BWT to operate their business in this country (BWT AG, 2011). The socio-demographic
condition of this country is poor, so that BWT needs to focus more on effective
marketing to maintain its sales volume. Otherwise, it can hamper the overall performance
and operation of this company.
1.3 Political and Legal
The political condition of this country is not stable, and the government don’t have
effective fiscal policies, and various government restrictions can reduce the financial
position of BWT (Richard, 2018). Different legislation such as consumer protection laws,
environmental policies and employment law generally hampers the overall environment
of this country and high corruption level can hamper the overall business operation.
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1.4 Ecological
The tropical climate covers the entire area, and due to the dry climate, the tribal people
generally depend on wells to fulfil the needs of water (Jerath, Kim and Swinney, 2017).
For that reason, it will be very tough for this water technology group to sales the products
effectively. At the same time, ecological factor is also a major barrier for research
development work so that it will surely hamper the company operations.
1.5 Technology
It generally signifies the research development activity and use of upgrade automation
technology for improving organisational performance effectively (Kang, 2018). This
organisation mainly deals with agricultural products for that reason lack of proper
technology will also hamper the research development work of this organisation. Apart
from that lack of digital technology and automation can increase the overall expense of
BWT.
1.6 Cultural
The diverse culture and beliefs of people will provide this organisation with less
opportunity during market research. That means diverse buying behaviour of people can
confuse the management during decision making (Jerath, Kim and Swinney, 2017).
Organisation needs provide economic pricing strategy to grab the attention of the
customer, and it can reduce the organisational financial profitability as well as overall
performance of the organisation.
2.0 THE SECTOR
2.1 Structure of the sector
BWT is one of the leading water technology groups all over the world. The production
capacity of this organization is high due to availability of enough resources in Austria.
More than 2800 employees are currently working in this organisation and top class
industrial partners also improved the organisational brand image (BWT AG, 2011). The
association of people also helps management to manage the company in an organised
way (Kang, 2018). Product price of BWT is the little bit high in comparison to others
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organisations. BWT follows social media, word of mouth and digital promotional
strategies.
2.2 Client analysis
Companies
 This company works with different types of organisations such as
Pharmaceuticals, beverage companies, cosmetic companies etc. BWT also make
their product on the basis of requirements (Padon and Rimal, 2017).
 All the beverage and pharma companies need pure water so the technical experts
of BWT assemble the products based on organisational requirements (Chernev,
2018).
 The number of quality water treatment product is very low in the market so that
bargaining power of the companies is very low.
 Most probably, more than 60 organisations are currently using the service of
BWT group. Number of loyal customers is also high due to quality products and
organizational brand image.
Consumers
 Organizations mainly divide the customer segment based on demographic
characters of the customers such as income level, lifestyle, buying behaviour etc.
 Understand the purchasing habits of customer helps management to take various
decisions leads to trigger the sales volume of a company (Padon and Rimal,
2017).
 What the purchasing power of customer generally depends on the availability of
similar products and some local brand with same futures products in affordable
rate can increase the bargaining power of the customers (Di Benedetto et al.,
2018).
 Effective product quality and high-quality service of BWT will increase the
numbers of loyal customers rapidly.
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2.3 Distribution structure
BWT mainly distributes the product through subsidiaries. BWT provides the opportunity
of online shopping those also increased company sales. The effective innovations in
water technology also ensure the health of people in different areas (Chernev, 2018).
This company also expanded their business in other countries and distribute their
products through distributors, retailers etc.
BWT usually distributes its products through its subsidiaries, retail and wholesale
organisations (Best Water Technology AG, 2016). In this regard, popular industrial
partners are one of the major strength of this organisation.
2.4 Orientation of the sector
The mission of this organisation is to ensure hygiene, health and safety by providing
people with fresh water (Michaelidou, Siamagka and Christodoulides, 2011). Innovation
in product line also helps the organisation to grab the attention of more public. At the
same time, innovation in a distribution such as quick delivery system, online shopping,
the establishment of sales outlets in different parts of the country also helps this
organisation to increase the numbers of sales.
2.5 Security
Before expanding the business in the foreign market, it is essential for the management
staff to review the risk factors efficiently such as the entrance of new competitors,
substitution of products etc. because these factors can reduce the demand of products
(Fulgoni, 2018). The entrance to the new company with similar and low-cost products
will also reduce organisational sales. In Senegal, the vertical integration strategy will help
BWT to operate the overall business correctly. The store will control the sales and
distribution according to public demand (Best Water Technology AG, 2016). Primarily
BWT needs to compete with the existing company and needs to improve its brand image
through quality products or services. Improved brand image mainly provides the
organisation with the strength of negotiation.
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3.0 THE MARKET
3.1 Quantitative description
One of the main products of BWT is premier filter Jug with electronic indicators. The
product price is a little bit high for that reason; it is not affordable for all the categories of
people (Di Benedetto et al., 2018). The revenue of this organisation was € 610.04 million
in 2016 (Best Water Technology AG, 2016). The growth of company needs to ensure the
quality, affordable price rate, effective promotion, and distributions to get a long-term
outcome.
3.2 Qualitative description
The product price of this organisation is high and that can reduce organisational sales
volume. Proper marketing and pricing are essential, and that will help BTW to trigger the
sales as well as financial profitability (Michaelidou, Siamagka and Christodoulides,
2011). Market penetration rate mainly depends on some customer and target market size.
According to research, it has been identified that the penetration rate of Btw is good
enough.
4.0 The competition
4.1 Direct competitor
Key areas Strong points Weak points
Products Quality, design Technology
Prices economic pricing strategy Less profit margin
Distribution and sales
force
Worldwide distribution Lack of effective distribution
channels
Participation Product design Innovation of new technology
Publicity and promotion Digital and social media
promotion
Word of mouth promotion
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PART TWO
5.0 INTERNAL INFORMATION
5.1 Products and services
The product quality is important for all the organisation to improve brand image and sales
volume (Fulgoni, 2018). The organisation is using magnesium technology, and that
mainly makes the product unique. BWT Gourmet also enhances the natural aroma of
coffee and tea.
5.2 Prices
Price is one of the important factors for the entire business organisation because most of
the public wants better quality products in affordable rate (Yoon, Choi and Sohn, 2008).
The product filter has two different models, and the prices of the products are
respectively €29.94 and €17.99. That means the company also launched the entry-level
product for the middle-class people and that will attract more customers from the market.
5.3 Distribution Network
Headquarter of this organisation is in Austria, and this organisation also expand its
business in another market such as Germany, France, Switzerland etc. This organisation
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has four main production sites, but this organisation also distributes its products all over
the world through its subsidiaries (Di Benedetto et al., 2018). Organisation generally
sales its product through retailers and wholesale shops also and the marketing head has
the responsibility to increase the number of product sales effectively.
5.4 Sales Force
Organizational sales force generally depends on effective customer relations for that
reason organization needs to recruit the relationship managers to build good relation with
all the potential customers. It will increase the number of customer of BWT and this
strategy will also improve customer retention. Maintain effective sales force will improve
overall organizational sales as well as financial profitability.
5.5 Communication
Effective publicity and promotion of newly launched products mainly attract the
customer psychologically. For that reason, BWT generally promotes their products
through social media, word of mouth activity and digital advertisement (Yoon, Choi and
Sohn, 2008). Effective customer service and gather feedback from customers with a
view to products. Effective distribution strategy in different retail and wholesale store
also helps this organisation in maintaining effective sales leads to enhance financial
position.
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References
Baker, T., Collier, D. and Jayaraman, V., 2017. A new pricing strategy evaluation
model. International Journal of Operational Research, 29(3), pp.295-316.
Best Water Technology (BWT) AG, Austria. 2016. Filtration Industry Analyst, 2016(12),
p.6.
BWT AG, Austria. 2011. Filtration Industry Analyst, 2011(8), p.7.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Di Benedetto, A., Sarin, S., Belkhouja, M. and Haon, C., 2018. Patterns of Knowledge
Outflow from Industrial Marketing Management to Major Marketing and Specialized
Journals (1999-2013): A Citation Analysis. Industrial Marketing Management, (69),
pp.13-17.
Fulgoni, G.M., 2018. Are You Targeting Too Much? Effective Marketing Strategies for
Brands. Journal of Advertising Research, 58(1), pp.8-11.
Jerath, K., Kim, S.H. and Swinney, R., 2017. Product quality in a distribution channel
with inventory risk. Marketing Science, 36(5), pp.747-761.
Kang, J., 2018. Effective marketing outcomes of hotel Facebook pages: The role of active
participation and satisfaction. Journal of Hospitality and Tourism Insights, 1(2), pp.106-
120.
Michaelidou, N., Siamagka, N.T. and Christodoulides, G., 2011. Usage, barriers and
measurement of social media marketing: An exploratory investigation of small and
medium B2B brands. Industrial marketing management, 40(7), pp.1153-1159.
Padon, A. and Rimal, R.N., 2017. Towards a global policy against alcohol marketing to
youth: Challenges and recommendations for research. Journal of public health
research, 6(2).
Richard, F.G., 2018. Reluctant Landscapes: Historical Anthropologies of Political
Experience in Siin, Senegal. University of Chicago Press.
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Yoon, D., Choi, S.M. and Sohn, D., 2008. Building customer relationships in an
electronic age: The role of interactivity of E‐commerce Web sites. Psychology &
Marketing, 25(7), pp.602-618.
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