Marketing Report: Astonish Cleaning Company's Growth Strategies

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Desklib provides past papers and solved assignments. This report analyzes Astonish's marketing strategies.
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ASTONISH
THE PINNACLE OF CLEANING
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Contents
INTRODUCTION...........................................................................................................................1
TASK 1 THE MARKETING ENVIRONMENT............................................................................2
TASK 2 POSITIONING AND TARGETTING..............................................................................7
Task 3 STRATEGIES FOR GROWTH AND MARKETING OBJECTIVES.............................10
Task 4: REDESIGNING THE MARKETING MIX TO MEET SMART OBJECTIVES...........13
TASK 5: BUDGET, MEASUREMENT, AND CONTROL.........................................................15
CONCLUSION..............................................................................................................................18
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INTRODUCTION
It is a challenge to manage the busy lifestyle and housework. Here it is introducing the company
called Astonish running by the owner-manager Howard Mass and it was started by Howard's
father who set the business around 50 years ago (Astonish, 2019). Astonish is based in Bognor
Regis and cover all surrounding areas from Chichester to Littlehampton. It is a domestic house
cleaning expert and the cleaning service provider which is working to provide the best service in
house cleaning. It is offering a high standard of general cleaning to its clients from 50 almost
years and produce a range of over 60 products. And the company is aiming for to developing
the products which do the right work in cleaning with the mission of making real life shine
every-day. In this report, the marketing environment would be discussed in which it works by
the PEST and SWOT analysis of Astonish and the current marketing mix of the company would
be analyzed. And the organization positioning and targeting strategy would be discussed.
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TASK 1 THE MARKETING ENVIRONMENT
It is very necessary for any organization to analyze the marketing environment for the success
of an organization (Dawson, 2014). Astonish has analyzed the marketing environment for the
betterment of the organization and has done the PEST and SWOT analysis of the company. It
has also analyzed the Porter’s Five Forces model for a better understanding of the marketing
environment.
PEST ANALYSIS
Political Factors: Political factor plays a very important role in determining the factors that can
impact Astonish’s long term profitability in a certain market or country. To achieve success in
the cleaning products and service industry across other countries it is very important to
diversify the risk of the political environment. The political factors include tax policy, labour law,
environmental law, trade restrictions, tariffs and political stability (Boddewyn, 2015).
Political stability and military invasion.
Trade, pricing and taxation regulations.
Anti-trust laws for cleaning products
Mandatory employee benefits
Economic Factors: The economic factor refers to the growth rate, inflation rate, interest rate,
unemployment rate, etc. It does a significant impact on the working and profit of the business.
The company needs to analyze these factors in order to do efficient work because the economic
stability of the country impacts the business a lot (Castaño, et al., 2015).
Economic growth rate, inflation rate, and interest rate.
The efficiency of the financial market.
Unemployment rate.
Exchange rate.
Social Factors: The culture of an organization in an environment get affected by society's
culture and way of doing things. The social factor refers to the shared beliefs and attitude of the
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population ((Castaño, et al., 2015)). It plays a great role for marketers in understanding the
customers how to design the marketing message for the consumers of the cleaning product
industry.
Demographic and skill level.
Culture and attitude.
Education level.
Leisure interest.
Technological Factor: The technological factor refers to the rapid change and advancement in
technology. The company needs to develop the technologies and should maintain the speed of
technological disruption for providing the best services (Sozinova, and Fokina, 2014).
Technological development and change in technology.
Impact of technology on product offering.
Impact on cost structure in the cleaning product industry.
The rate of technological diffusion.
SWOT ANALYSIS
Strengths: The major strength of the company is that is continuously working for the
development of the company and providing better services. It is also maintaining its goodwill by
being cruelty-free and it is the only UK manufactured household cleaning brand and it is
approved by Cruelty-Free International (Astonish, 2019).
Cruelly free.
Development of new products.
Clear with the objectives and business segment.
Weaknesses: The weakness of the company is that it has not much strong market and quickly
get replaced by the competitors. It is also having the high transportation cost and limited price
flexibility which is affecting the company and it is continuously improving on its weaknesses.
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Quick replacement from competitors.
Limited price flexibility.
High transportation cost.
Opportunities: The opportunities for the company are to build a strong relationship with the
vendors and development of wholesale distribution relationship. And it is also developing new
products in the market.
Build a strong relationship with vendors.
Development of wholesale distribution relationships.
Diversification into a new segment of products.
Threats: The major threats of the company are the increase in the competition, change in
regulations, and increase in price (Astonish, 2019). And the company is making strong strategies
to overcome these threats.
Increase in competition.
Change in regulation.
Increase in price.
PORTER’S FIVE FORCES MODEL
Porter’s Five Forces Model is used for understanding the competitiveness of the business
environment and to identify the potential profitability of the strategies. It is the simple and the
very powerful tool which makes to understand the forces of the environment of the industry
which can affect the profitability and it enables to adjust the strategy according to the affecting
forces (Mekic, and Mekic, 2014). The following are the five forces which are discussed below:
The threat of new entrants: The company is facing tough competition because there are many
new competitors who are entering in the cleaning industry because the profitable markets
attract more new entrants. It is important for the existing company to create high barriers to
new entrants (Frésard, and Valta, 2016).
High entry barriers.
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New entrants bring innovation and put pressure on the existing company.
Bargaining power of suppliers: When the number of suppliers is less then it gives the power to
the suppliers and the strong bargaining power makes the suppliers sell at a higher price and
provide low quality raw material to the buyers (Lacoste, and Blois, 2015).
High competition.
Less number of suppliers gives more power to the suppliers.
Bargaining power of buyers: When the bargaining power is strong it gives the power to the
buyers to demand a lower price or higher quality products from the industrial producers. When
there are many substitutes in the market it increases the bargaining power of the buyers
(Chambolle, and Villas-Boas, 2015)..
Buyers demand lower prices and high-quality products.
The number of substitutes increases the power of buyers.
A threat of Substitutes: This force impacts the most when the buyers easily find the substitute
for the products. It is very important for the company to produce the best quality products
which cannot be replaced (Schwenger, et al., 2014).
Increase in substitutes increases the threat.
Astonish need to produce the products of best quality which cannot get replaced.
Rivalry among existing industry: This force helps in analyzing the competitiveness and
profitability of the industry. When competition is in high the company needs to compete with
the full power for the market share (Pulaj, and Kume, 2014).
Analyze the competitiveness and profitability of the industry.
Astonish is competing with full power to maintain its market share.
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TASK 2 POSITIONING AND TARGETTING
Perception Maps
A perceptual map is used to analyze the perception of the customers about the brand or
products (Kuo, and Rice, 2015). The marketers of Astonish are analyzing the view and feel of
the customers about its products and trying to improve the position of the company and
increasing its quality with the price. As they are trying to improve the image and want to
change the perception of the customers regarding the products of the company as compare to
other companies who are giving the tough competition to Astonish.
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SEGMENTATION TECHNIQUES
Factor Segmentation: Factor segmentation refers to the analysis of the factors and forms a
group of attributes that express certain common themes (Methot, and LePine, 2016). Astonish
has adopted this technique to determine the number of factors by using a combination of
knowledge and statistics.
Clustering: This method is used to identify a similar group of respondents base on similar
features. To differentiate the segments this procedure provides the statistics which gives
information about the ability of each variable.
Demographic Segmentation: It is the simplest segmentation type which is widely used by the
organizations. It generally divides the population according to the variables (González, et al.,
2015). It does have the following variables age, size, gender, family, income, occupation,
religion, race, nationality, etc.
Behavioural segmentation: This segmentation divides the population according to their
behaviour types, usage and decision-making pattern. It generally depends on the behaviour of
the people and their preferences in purchasing a particular product.
Geographic Segmentation: This segmentation divides the people on the basis of geography.
This segmentation is used when the company expands the business in more areas.
4 C’S OF EFFECTIVE POSITIONING
Clarity: It is the idea that the positioning strategy is perfect for the target. This principle is based
on the question that the main idea will stay as an entity or not or will it be deteriorated by the
people with the time.
Compelling: Compelling refers to the awareness of the needs and wants of the target. And the
Astonish is targeting its positioning strategy to the right audiences because it is very important
to know the interest of the audience and need to make the strategy according to the wants of
the customers.
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Credibility: The positioning strategy should be in line with the vision, value and identity of the
company in order to improve the credibility of the company. If the company does not follow
the vision and values of the company then it would definitely lose the trust of the people who
can do the major impact on the sales of the company.
Contrasting: It refers to the competitors of the brand. The brand positioning strategy of the
company should be different from its competitors. When there are many brands in the same
market then it is very necessary for the company to make its product unique and different and
should adopt the different marketing strategy to attract more customers as compared to other
competitors (Fleisher, and Bensoussan, 2015).
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Task 3 STRATEGIES FOR GROWTH AND MARKETING OBJECTIVES
Astonish is continuously making strong strategies for the growth and development of the
organization. The competition is increasing in the market daily and the marketers of the
company are analysing the market environment and making the strategies regarding the
growth and development of the company (Medarac, et al., 2016). It is introducing the new
products in the market and also modifying the packaging of the products to attract the
customers and it is continuously seeking for to increase the sales and revenue of the company
by adopting the following models:
ANSOFF MATRICES
Figure 2: Ansoff Matrix
Market Penetration: Market penetration is doing the marketing of the existing products
without making any changes to the products. It is generally done by the various promotional
methods, and by applying various pricing policies that may attract more customers and can do
more extensive distribution. The risk in market penetration is very less because the existing
products are already familiar with the market. It is just to do the various initiatives to encourage
the usage of the products.
Aims to achieve more sales in the existing market.
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No modification in the product but focuses on to increase the revenue by either
repositioning or promotion.
The specific target for increasing the revenue and market share.
Product Development: It involves the introduction of the new products and the modification of
existing products. By doing the modification in the products the company can increase the
performance and quality of the products which may attract more consumers (Cooper, 2016).
Starts to develop new products and the modification of the products.
Introduce offers to target its existing products.
Involves product line extension, product augmentation and product innovation.
Market Development: Market development is also known as a market extension as in this
strategy the company sells its existing products in the new market. When the existing market
gets fully exploited then there comes the need to do the business in the new market. Market
development is also to set the new branches of the company in the new areas (Platteau, 2015).
The condition of the market change with time.
Need to shift to the product marketing growth strategy.
Identifies and develop new market segment for existing products.
Diversification: Diversification refers to the selling of new products in the new market. It does
contain more risk as compared to the other strategies because it targets the new market which
can bring many problems.
Introduction of new products in the new market.
A growth strategy where the company acquired a new business in the new market.
SMART MARKETING OBJECTIVES
Specific: The marketing objectives should be specific that what the company is hoping to
achieve regarding product development, market penetration, and market development. The
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