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Marketing strategy - Essay Example

In this report I have tried to explain what marketing strategy is and how the marketing strategy of the company is formulated. Marketing strategy of a company depends on some internal and external factors. The internal and external factors have been identified. Total process of marketing strategy is given. I have selected DEL as the logistics company for better understanding the total process. The report will be able to give a better idea about the marketing strategy and how the business organizations formulates it.

Introduction: Marketing Strategy for a business organization is a very essential part. The large business organizations are dependent on the market research and market analysis. Where investment is related risk is also related with the investment. So the business organization has to be careful in preparing the marketing strategy for the business. And the implementation of marketing strategy is not easy for the business organization. According to Cooper (1996) normally the business organization engages some professional to do these Jobs for them.

To make success the marketing strategy the business organization has to analyze the internal and external factors of the organization that can affect the business more than other factors. The factors can be analyzed in many ways. The approaches are selected by the marketer. In this report we will analyze the market situation of a large logistic company. I have selected DEL to analyze the market condition and the market growth and the market share. We will analyze the strength, weakness, current situation and strategy of the company. And some alternative approaches have been suggested.

Current situation: DEL To analyze the current situation we need basic information of the company. Then we ill be able to understand the formation the strategy of the company. We will also be able to understand the mission and vision of the company. The company profile of DEL is one of the largest logistics company and it is also providing the international express mail services. It is a German logistics company which is maintaining its operations almost 189 countries all over the world. The company was in 1969. It started logistics operations by delivering files and documents between the San Francisco and Honolulu.

In 1970 the services of the company have been expanded. Current position of the company: At the dawn of the business of DEL there are three persons are related with it. The name of the persons are Adrian Dashed, Robert Lynn, and Larry Holmium. They were involved with the delivery of the documents by air instead of courier. They chose the way of transporting because it takes too much time in case of shipping the documents. There were no security of the delivery of the documents where they have ensured the security of the freight.

In San Francisco DEL airways is situated and is being operated which is involved with the transportation of inter-country in U. S. DEL international is situated in Brussels. DEL is renowned for their domestic shipping and the supply of the services at a lower cost. The company has gained the loyalty of the customers. They are now a reliable logistics company in the market. They have delivered 3% among all delivery inside the U. S. A. And the international delivery has increased 20% in 1990. The company has 90000 accounts which has earned 10% revenues.

It is 15% total shipment in the world. The company has a large market of Mac’s. Only 10% revenue comes from the individual customers. So the company concentrates more on the large business corporations which has a large investment ND international activities. The company is a large business organization with a wide range of products and services. So product differentiation is easier for them than others. DEL is operating its international market by their regional managers. They are independent taking their decision. But the total business decision is made centrally (Fill, 2002).

Competitive strategy and DEL: There are four basic competitive strategy in marketing. We know that the business organization must select an attribute that will lead the market over the products of the competitors. So the company can select one of these four types of competitive advantage. The four competitive advantage is invented by Porter (1985). It is called Porter’s four generic competitive strategy model. The four models are given below: Cost leadership Differentiation Cost focus Differentiation focus Now we will analyze the condition of DEL and determine which competitive advantage the company has selected.

Differentiation strategy: The company has a wide range of product. According to Kettle and Armstrong (2007) The Company is providing the services not in less price but in moderate price. Service quality of the company is high than other logistics company. The advertisement of the company shows how much importance the company gives on the time and the service quality. So now we can conclude that the company is following the differentiation strategy for its business. Some important points of the company has been given for a better understanding of their competitive strategy.

The company is so much sensitive on the taste and demands of the customers. It is the essence of the success of the company. It is very vital part of marketing strategy to realize the market niche. Since it is continuous process the company has to concentrate on research and development of the services. Long term goal: No success is possible without the long term goal. Short term goal for a company can kill the profitable growth. DEL also believes in long term goal of the company. To become successful in long run the business must look forward and set a long term goal.

Team spirit and enthusiasm: Creating a competitive environment inside the organization is a good sign for the company. For any business organization rewarding and motivating the employees is a very important task for management. Team spirit and enthusiasm is a major characteristics of the employees and staff of DEL. Use of information and technology: No business organization can’t think about a day of business without using the information and technology. It shows the importance of information and technology in business. DEL is also improving its business operations by incorporating the use of technology and information.

Inter-city transportation: In many countries there are no good way of transportation. There is no logistics support. It hampers the business operations of the corporation. So DEL is operating as a logistics support company and performing smoothly in regional branches. Resource allocation: The company has 189 branches in 189 countries. The company is also improving the business activities of them. The networking among the countries is stronger than before. It helps the company to allocate its resources efficiently. Decision making process: The local branches operates its business operations by the regional managers.

But the overall strategy and decision is taken by the central authority. The system has made the management of the company decentralized and the control of the company is centralized which indicated the management efficiency of the company. New services: The company is also expanding its business as much possible it can. DEL is introducing new service and products for capturing new market. The anticipation of the changes in demand and taste is very important factor. DEL is able to perform in that level which will help it to overcome the change as early as possible.

Segmentation, Targeting and Positioning: DEL The marketing strategy of the company emphasis on the timeliness and reliability of the services. Marketing communication of the company in media also implies the vision of the company. The target market of the company and the segmentations of the logistics support companies are given for better understanding the formulation f marketing strategy. “DEL same day, when tomorrow is late. ” The advertisement of the company states how much importance the company given in case of timeliness. Segmentation: Kettle (1988) states there are many segments in market.

The market is segmented geographically. Most of the logistics companies are maintaining the market segments. The market can be segmented in other ways. But the most useful market geographically. The company has also segmented its market by individual and business organization. The company is serving its segments by various packages of services and offers. Targeting: As the leading logistics company the target market of the company is larger than any other companies. The company is able to provide service to a large segment of a market. The company has resources. The quality of the service of the company is high.

The company has a strong brand image. So the target market of the company is definitely larger. The business organizations of the world is the target market of DEL. Service charge of the company is relatively high. The higher service charge ensures the timing of the delivery of t and documents. Positioning strategy: The company has specific positioning attribute. The company has been giving emphasis on the timing and the reliability of the services. So the positioning of the company should be dependent on the statement of the company. The company has taken “more for the same” value proposition.

Which indicates extra benefits of the customers in exchange of giving the price of the service getting the certainty of the delivery of the product in time. Marketing Mix of DEL: Every business organization has their own marketing mix. Marketing mix is an essential tools for creating marketing strategy. The marketer has to formulate the marketing mix strategy before go for a marketing plan. DEL has also its own marketing mix. Product: In this part the business organization has to select their products. The number of the products must be determined by the company.

The quality of the product must be ensured by the marketer. Product of DEL is intangible. The company has a wide range of products which ensures the differentiation of the company. Price: Price is a vital part of the marketing mix. Price also determines the market of the product. Price of the product should be determined in a way which can cover the cost of the product and make a premium for the company and also reasonable price for the customers. Place: Place of the product ensures the sales of the product. So place of the distribution of the product is a vital element in marketing mix.

The place of the product should be established in a convenient place where the customers of the product can easily go and collect the product. Promotions: Promotion is a very vital weapon to capture the market by communicating the product with the customers and boosting up the sales. The Promotion strategy of DEL is moderate. The company is taking a mild advertising in its foreign countries. And the company has become in a leading position in many companies for their service laity. Situational analysis (SOOT analysis): According to Peter (1981) the business organization has some weaknesses and strengths.

The situation of the company describes these attributes. The company is also dependent on some external factors. Which may be positive or negative. The situation of the company can be analyzed in various ways. Anyone can use SOOT analysis, PESTLE analysis or Porter’s five forces analysis. In this section we will analyze The company has the largest share in the market because of being the largest logistics company in the market. The company has a strong networking among 220 Mounties and it has a great employment sector. Almost 275000 employees are working with the company.

The company has the largest freight all over the world The company concentrates on the central and e-procurement. The company has incorporated the use of information and technology which is the competitive advantage for the company. The company has a large and loyal customer base. The customers are the main strength of the company. The company has a strong image in the market. So it has become a weapon for the company to capture the market. Creative and Innovative environment of the company is also responsible or the success of the company.

Weakness: The competition in the market is getting acute day by day. The government owned competitors are the main weakness of the company. As the market is so competitive the company has lower change to grow the business at a sustainable rate. The large scale of operations of the company need customized environment. The company has o depend on the agencies and ministries and other regulatory bodies for various issues. Sometimes the business activities are affected by the bureaucratic complexity. Opportunities: The logistic support market is very potential and promising.

It is the great opportunity for the DEL to capture the market. The services and the product of the company is expanding. The expansion of the market has been possible for the open market policy of the countries. Technological advances of the company plays a major role in growth of the business. The company is also expanding its optional services to attract the customers. Threats: The competition in the market is huge. New companies will be very competent so the company need precaution to protect themselves from the unexpected market fall. The economic recession has been common in past decades.

So the company has to face a difficulty to keep the company sustainable in recession. There are some implicit cost which may affect the business adversely. The overhead cost of the company is large so if the company face the customer lose it will not be benefited company anymore. Price war among the companies has been very acute for the economic slowdown in the market. The companies are desperately trying to get the customers by lowering the price of the service. Large e-commerce sites are emerging in recent days for the technological advances. So the company may face sudden attack by these companies.

It has some adverse effect on the company (Dates, 1999). Alternative strategies of DEL: The company has a large share in market. As the leading company in the industry the main objective of the company is to sustain the market. So the strategy of the company is to keep the loyal and profitable customers. The company will be able to keep the customers in the market if they can maintain the quality of their service. The company should have long term goal. Because the company should not take the has a great brand image in the market. So the company must take the measures to keep the reputation.

The recommended goals and objectives of the company is given below: Suggested objectives of the company: The company is the leading company in the market. So the company doesn’t need to take the actions to penetrate into the market. The company should try to keep the market share of them. The company can take a moderate advertisement measure and some promotional programs. The company should maintain the brand value by keeping and maintaining the quality of the service of the company. The company should make a various range of products for their target markets.

The company would initiate promotional packages for their loyal customers. Thus new and new customers will be attracted to the company. The company can expand the line of the service. New services will be granted by the customers. The loyal customer base of the company will help the company to achieve the goal of the company. The company is now in the peak of the market. So the company should focus on their loyal customer base. The customer base of the company is very important. Marketing strategy for DEL: According to Baker (2008) marketing strategy is significant and vital issue for every business organization.

The marketing strategy formulation process is a continuous process. So the company has to pay attention for formulating the marketing strategy of the company. We are analyzing the market situation of DEL. We have found some factors which can affect the business. As the leading logistics company in the market the marketing strategy may be slight different than any other companies in the market. The steps are given below: Partnership with marketing agency: The company can make partnership with the marketing agencies to reshape their total marketing strategy. Everything in the world is getting very specialized.

So the racketing specialist can be very effective for the company. Social media presence: Social media presence of a company is very important. It is the most effective way of communication with the customer. It creates a positive image in the mind of the customer. The effective marketing communication channel can make the marketing program successful. Digital marketing: Digital marketing is also an effective marketing weapon. The companies are using the techniques to grab the market rapidly. DEL should also make this type of marketing. Direct marketing: Direct marketing strategy is being very effective in now a days.

So it will be useful for the logistics company. It is an easy way to reach the remote customers. Using networking: The company has a large and strong communication channel among different countries. The company can use the networking very effectively. Thus the company can be able to compete over the competitors. Database: The company can create a database of the customers. In the database the company will store all kind of information about a customer. Database marketing is now a very common marketing strategy for the business organization. Integrated marketing: The company should take integrated marketing.

Integrated marketing means the company will make a total marketing strategy where all types of strategy will be Conclusion: DEL is one of the largest and leading logistics company in the world. The business of DEL has been increasing day by day. The brand image of the company is outstanding. But every company has some lacking (Lure, 1998). The business organizations should overcome the drawbacks of them. DEL has also some drawbacks. In this report I have tried to cover the current situation of the company I have also tried to find out the competitive strategy of the company and strength, nakedness, opportunities and threat of the company.