Marketing Strategies Report

This report analyzes the marketing strategies of three companies: Coca-Cola, Radisson Blu, and Seven-Eleven (Japan). It examines foreign market entry strategies, market segmentation, and the impact of micro-environmental factors on business performance. The report provides recommendations for each company to improve their marketing strategies and achieve greater success.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
1. Evaluation on strategies of foreign market entry used by coca cola.......................................1
2.Marketing Segmentation of Radission Blu..............................................................................3
3. Prospective and improvement on micro-environment for Seven-Eleven(Japan)...................5
CONCLUSION................................................................................................................................8

INTRODUCTION
Marketing is that branch of management that deals with satisfying the customer need .It
includes advertising ,selling and distribution and delivering the product to the end user. It is an
activity of creating value and exchanging it to the customers and clients. The present study is
done on Coca cola , a US based cold drink company ,that provide variety of cokes includes diet
coke, caffeine free coca cola etc. In addition to this a brief study is done on foreign entry option
strategy of coco cola. The various approaches are used by the company to entre into foreign
market that is discussed in detail. Apart from this briefing is done on Radission blu , a UK based
budget hotel, which have luxury suits and rooms to stay and availability of continental food for
guests. The marketing segmentation of Radission is based mainly on demographics, psycho
graphics. Furthermore, present study is based on Seven Eleven ,a Japanese owned - American
company which offer beverages and other products like snacks, coffee, candy etc. In addition to
this a briefing is done on micro-environment of seven eleven which includes its competitors,
suppliers, customers, etc.
Main Body
1. Evaluation on strategies of foreign market entry used by coca cola
There are five approaches that Company can use to enter foreign market-
Licensing- it is the process by which Company can grant licence to the licensee to hold
right of making use of goods and services as made by the licence holder. It is the common
strategy that is used by various firms for carrying its business operation in other parts of the
World. It will help to enterprise in expanding its business within the corporate governance.
Pros-There are various advantages of Licensing to Company it needs very less amount of
expenditure because these companies are already established, that only needs small amount of
investment on machinery and tools. Apart from this it encourages new technologies in the
country that has not been experienced in the past, so government favour licensing rather than
foreign direct investment.
Cons- there are several disadvantages of licensing is that government can impose restriction on
paying and receiving royalties if it finds any misleading trade practices carried on by the
licensing of enterprise. Apart from this licensee have less control over the brand as it offers
product in the name Licensor.
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Franchising-It is another strategy of expansion of market. It is suitable for the Coca-
Cola because they have repeatable business model like food and beverage products. For
considering franchising model Coca- Cola needs to be unique and should have strong brand
value in the market. Apart from this a business should such that its product are demanded
internationally. Here the person provide rights of carrying business overseas is known as
franchisor and person getting rights is known as franchisee. Through using this strategy Coca-
Cola can effectively enter into the foreign market and expand their business globally.
Pros-The most important benefit of the franchising is that franchisee buy an established brand
that helps in increasing brand loyalty of Coca- Cola among its employees.
Cons- it is the loophole for the franchiser as it may be granting its right to wrong franchisee,
which can decrease the reputation of the brand owner by doing unethical practice. Apart from
this big ventures need research and development of the product , which may not be done by the
franchisee, which can result in decreasing the value of the product.
Joint ventures- This strategy of foreign market entry is a kind of partnership which aims
at creating a company that is independently managed. Here two ventures come into an agreement
to work in a market to offer the product and create another company to carry on its operation. In
this generally profit and risks are shared equally by both the ventures.
Pros - The main advantage of the joint venture is that it can increase the product line of the
companies as it aims at creating a new company that is independently managed.
Cons- it needs huge investment as it a lot of working arrangements and mistake of one partner
have to bear by all. Apart from this there are chances of disagreement in the parties because of
lack of government interference.
Direct exporting- In these companies directly export its product in the particular foreign
market. The whole process of selling and distributing the product is carried on by agents and
mediators. After sales , many companies become distributors for representing itself in the
market. The choosing of agents become the most important task for exporting companies , so
they have to chose their agents like they are recruiting key personnel in the organisation.
Pros- it helps in increasing customer loyalty in international market. Apart from this it increases
control on all the aspects of the transaction , because involvement of government is high in the
export business.
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Cons-It requires more time and money that sometimes may not be affordable for the small
business.
Foreign subsidy - It the another way of foreign market entry, which is the policy of
government to reduce the sale of goods in the domestic market and encourage exports in the
foreign market . In this price of the product in domestic market increases and price of products in
international market decreases.
Pros- It helps in encouraging export business that can be an addition in the national income of
the country.
Cons- It can create inflation in the economy as prices are increased by the government in the
domestic market.
Government policies , implication and risk level in foreign market entry
Entry in foreign market is not an easy task. It involves various restriction of government
which includes taxation policy, fiscal policy , monetary policy. Companies may face various
difficulty in making its business globalise. It has complete various formalities which is a
complex job. There are many implications that arises due to government policies like rise in
price due to increase in tax on the product , that may lead to inflation and create disequilibrium
in the economy. Government can also limit the quantity of export to encourage domestic sale.
Risk of entering the global market is high presence of many competitors that already have
good brand value and these are the established brand. Apart from this there are very few
potential buyers, so it arises the risk of low profit making.
Recommendations:
It has been recommended that in order to avoid government restrictions and run the
business smoothly in long run, coca-cola should ensure that it does not get involved in any unfair
trade practices as well as various controversies against the company. Even if any controversy
arises than the company should ensure that it handles it in a very efficient manner so as to protect
its brand image.
Apart from that, risk of entering global market could be reduced by increasing the brand
awareness which in turn would help the company in gaining the competitive advantage over the
rivalry firms and this will help in beating the competition and grow and sustain in long run.
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2.Marketing Segmentation of Radission Blu
Market segmentation- is the method of dividing market into smaller segments on the
basis of some characteristics that are common among the group of people. It is based on some
characteristics. There are various reasons of market segmentation like it create custom marketing
mix for each segment so that it can handle the customers accordingly.
Levels of market segmentation
Mass marketing- In this seller or marker of the product target large market. Here the
consumer base is high and distribution of the product and services are done at large level. It can
be profitable to the Radission blu as it results in lowering the cost of operations that leads to
higher profit margins.
Segment marketing- At this level marketer divides the mass market into smaller
segments based on buying behaviour, purchasing power etc. it helps marketer to make more
direct connection with the consumers. The advertising activities are done to focus on the
particular market segment. Marketers of Radission blu can prefer segment marketing on the basis
of behavior of the customer towards their lifestyle and income level of the consumer, generally
Radission blu provide suits and rooms for higher income level group and it is meant for the
people who always wants to add on something in their lifestyle.
Niche marketing- This market segment is required when marketer have to pay more
attention on the quality of the product or service. Radission blu do niche marketing as they have
to address quality in its service. Here service provider needs more skills and expertise to provide
niche services.
Basis of market segmentation
Geographic segmentation – In this segmentation is done on the basis of geographical
location of the potential customer . It is based on a group of people living in particular area that
have common purchasing habits. Marketers of Radission blu can decide location in Porsche
areas as it will be more attractive to the visiors.
Demographic segmentation- It means dividing the customer on the basis of the level of
income , family size, marital status , occupation etc. Radission blu should do segmentation on the
basis of income level of the consumer as it provide luxury suites for high level of income group.
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Psychographic segmentation- This segmentation is done on the basis of lifestyle ,
attitude and personality of the group of people. So it can be recommended that Radission blu can
do its segmentation on the basis of lifestyle, that means the way in which person lives his life
and do the expenditure for getting a good standard of living.
Behavioural segmentation – Under this marketers do segmentation on the basis of
knowledge of the consumer and attitude of the consumer towards the product . There can be two
buyers, one who buy product and services occasionally for having some sort of benefit. Another
consumers are those who can that buy products on regular basis.
Market Targeting
It refers to select particular group or market for offering its products and services .
Evaluation of market segments are as follows-
Size and growth of the segment – The market segmentation should have right size that
can be measured by revenue generated from guests by Rdission blu .Along with focusing on
generating revenue it should concentrate on potential growth of the segment.
Segments structural attractiveness- A segment may have desirable size and growth but
still it is not profitable . So a marketer should focus on identifying its competitors and rivalry .
For example Radission blu have many competitors like The Leela Palace that can affect the
revenue of Raddision blu as it provide luxury rooms with the same prise so customer will move
there.
Segments interrelationship- The segments selected by marketers should be interrelated
to each other in terms of technology, costs and performance. A slight change in performance and
cost of the firm can become a threat for the hotel. As there are various substitutes that can take
competitive advantage over the services provided by Radission blu.
Market Positioning
It refers to a process of establishing a different image of the brand in the minds of the
consumer so that it can be easily recognisable. Raddision blu created positive image in the minds
of consumer as it delivers quality service which are different from other 4 star hotels. Apart from
this it is superior as it provides luxury and sweet rooms that are different from other hotels.
Recommendations:
It has been recommended that in order to gain the competitive advantage over the rivalry
firms, it is essential to target and segment the market efficiently. Radission blu should use
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geographic segmentation and locate its hotels in the premium areas of the city which will
enhance its sales and profits. While the company should target the people on income basis that is
luxury class because mostly rich people visit the budget hotels due to high expenses.
3. Prospective and improvement on micro-environment for Seven-Eleven(Japan)
Seven eleven is a Japanese convenience store which has been founded in the 92 years ago
that is in the year 1927. The company has its area of operations in the world - wide that is around
66579 locations with around 45000 employees currently working with the company. Hence, it is
very important analyse the micro-environment of the company in order to find out the loopholes
of the company that has hindered the smooth running of the company as well as the measures
that are recommended so as to improve the performance.
Analysis of micro-environment of seven-eleven convenience store
Micro-environment may be defined as all those factors or elements that have an
immediate impact on the performance and decision-making of the company. These factors are
closely linked with the business and have direct impact on the smooth running of the business
towards accomplishment of its objectives. These factors are under the control of the business
organisation and are managed in a way that leads to efficient performance.
Micro-environmental factors are as follows:
Competitors – competitors are those business firms who are fighting against each other
in the same industry with the objective of maintaining and growing their market share in that
particular industry. Seven eleven faces cut throat competition because of large number of
competitors in the retail industry. In-spite of high competition in the market, people usually
prefer to buy from seven eleven because the stores of the company are located in premium areas
as well as the stores have easy reach. Apart from the reach, company even charges reasonable
prices for its products which attracts more customers. This in turn has helped the company in
achieving competitive advantage over the rivalry firms. Similarly like every coin has two faces,
there are advantages attached with disadvantages, though the company has location and price
advantage but the company lacks in innovation which has restricted the further expansion of the
company.
Hence, it has been recommended that in order to improve its competitive position,
company should invest more in research and development department in order to have access to
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new technology and advancement. This would in turn also help the company in increasing its
ability to tackle the new challenges in the market.
Supplier – when it comes suppliers, company has major disadvantages related to this
element of micro-environment. This is so because there are large number of convenience stores
in the retail market with limited number of suppliers. Thus, the availability of suppliers becomes
difficult for the company as well as the bargaining power of suppliers is also very high. Adding
up to this disadvantage, there is one more disadvantage and that is the company has to undergo
lot of criticism because of delay in the availability of goods as well as lot of quality concerns
coming from the customers.
It has been recommended that in order to overcome the loopholes, company should focus
on development of brand image so that the suppliers get easily available and doesn't even shift to
the rivalry firms. The brand image could be developed by considering all the consumer
complains in an efficient manner such as by resolving the quality concerns of the customers.
Customers – customers are considered as the king of every business firm. Any business
firm can survive and grow in long run if and only if it takes utmost care about the needs and
wants of the customers. Analysis show that seven-eleven is concerned up-to a wide extent
towards the customers as it provides various benefits to the customers on timely basis such as
click and collect membership. This has not only helped the company in increasing its sales but
has also helped the company in keeping its customers satisfied and happy. Apart from that,
company serves the customers of all over the world. Thus, the increase in customer reach has
helped the company in increasing its customer base. The company has segmented its entire
market of customers so as to achieve the objectives of the company effectively and efficiently. In
order to segment the market company uses demographic segmentation strategy that is
segmenting the market on the basis of gender, age, occupation, etc. though with the advantages,
there are disadvantages. The major disadvantage of the company is that company has very poor
delivery system to customers.
Hence, it has been recommended that it order to increase the customer base, company
should lay immense emphasis on improving its delivery system.
Intermediaries – intermediators are those persons or channels that act as a link between
those who manufactures the good and the end users. There are large number of intermediators
involved in the supply chain of the seven eleven. This is the major drawback of the company as
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the supply chain of the company is very large. This leads to delay in procurement of goods from
the manufacturer to the stores and this in turn leads to frustration or unpleasant experiences on
the part of customers. Longer the supply chain of the company, larger would be the drawbacks of
the retail store. But when it comes to co-ordination among the various elements of
intermediaries, in seven-eleven it is found to be very efficient. All the channel members of the
retail store are closely-related to each other, this has in turn lead to smooth running of the
business firms without any conflicts.
It has been recommended that, in order to increase the efficiency of the retail store;
company should work on reducing the length of its supply chain, this will help in fast movement
of goods from the manufacturer to the retail stores. Further, it will even contribute in enhancing
the experience of the customers with the company and this will help in achieving the objectives
of the company effectively and efficiently.
Other stakeholders – there are various other stakeholders attached with the company
such as financiers, investors, shareholders, etc. When it comes to seven eleven, company does
not have to face any difficulty in procuring funds. The company has large number of investors
and the basic reason behind this is that the brand image of the company is very high. Thus, the
company easily gets funding because of the assurance that their funds are secured and they
would never have to face debt. But when it comes to financiers, it is found that company has to
carry out majority of its operations on credit basis and thus it can be said that the liquidity
position of the company is very high.
It has been recommended that company should lay emphasis on improving its relations
with financiers so as to run the business smoothly in long run without any hurdles. Company can
maintain good relations with financiers by paying the interest on time as well as by returning
them funds at the time when they require it. Hence, efforts should be made to improve relations
in order to achieve the objectives of the retail store effectively and efficiently.
CONCLUSION
From the above study, it has been summarised that there are various strategies for
entering a foreign market. Critical evaluation of each strategy was done. These strategies include
licensing, franchising, joint ventures, direct exporting and foreign subsidy. Apart from that
various policies were discussed which hinders the entry of firms in the foreign market. These
policies include fiscal policy, monetary policy and taxation policy. Even market segmentation
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was discussed in detail along with various levels of marketing segmentation such as niche
marketing, mass marketing and segmented marketing. Moreover, micro-environmental factors
were discussed in detail such as intermediators, competitors, stakeholders, customers and
suppliers.
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