Wednesday, May 20, 2020
Sample details Pages: 7 Words: 2174 Downloads: 4 Date added: 2017/06/26 Category Business Essay Did you like this example? Abstract Factors such as economic issues affect the business and its marketing strategies. The company recognizes there is a strong competition from other competitor within the industry; therefore it is crucial to improve its financial performance. Inflation and unemployment caused by the economic recession has affected the companyÃ ¢Ã¢â ¬Ã¢â ¢s performance. DonÃ¢â¬â¢t waste time! Our writers will create an original "Business Report: Abercrombie and Fitch" essay for you Create order Organizations seek to increase overall profitability and performance, which lead to the introduction of performance management concept. Aiming at increasing employee productivity and output in the organization. The company is able to invest in ways that have more positive strategic impacts such as providing some services for the betterment of the community in which it operates. The rate of unemployment has been reducing over the recent periods, and third quarter of 2012 recorded reduction of unemployment levels. 1.0 Introduction Abercrombie Fitch is a company that operates in the clothing industry. The company provides clothing products to people around the world. The performance of the company has elevated over the years having opened more stores in the United States (Plantes Finfrock 2009). It has been able to increase its financial performance due to its high product quality and corporate image and its marketing campaigns, which involves seasonal campaign. The macroeconomic factors have affected Abercrombie Fitch Co. since the recession, but the company has been able to improve significantly on its financial performance (Smither London 2010). This paper aims at discussing the effects of the macroeconomic factors on the performance of Abercrombie Fitch Co. 1.1 Abercrombie Fitch Co stock market share Revenue ($m) Pre-tax ($m) EPS P/E PEG EPS Grth. Div Yield 31-Jan-09 3,484.06 509.64 355.00ÃâÃ ¢ 5.0 n/a -35% 70.00ÃâÃ ¢ 3.9% 30-Jan-10 2,928.63 119.51 90.00ÃâÃ ¢ 35.0 n/a -75% 70.00ÃâÃ ¢ 2.2% 29-Jan-11 3,468.78 228.57 171.00ÃâÃ ¢ 28.3 0.3 +90% 70.00ÃâÃ ¢ 1.4% 28-Jan-12 4,158.06 217.81 165.00ÃâÃ ¢ 28.6 n/a -4% 70.00ÃâÃ ¢ 1.5% 02-Feb-13 4,510.81 366.95 289.00ÃâÃ ¢ 17.7 0.2 +75% 70.00ÃâÃ ¢ 1.4% Source: (ANF 2013) From the above table and chart, it can be observed that Abercrombie Fitch Co. has been increasing its stock market share. 2.0 Abercrombie Fitch Co Financial Performance The international trade and investment has been on its recovery path and this has led to increased financial performance (Parikh Gupta 2010). Inflation is one of the macroeconomic factors that have great influence on the companyÃ ¢Ã¢â ¬Ã¢â ¢s growth. Economic decisions that are being made at the macroeconomic level are influenced by stability of the general economic environment. They normally benefit from the stable economic state and stable inflationary environment favors economic decisions being made (Lamb, Hair McDaniel 2012). Low rates of inflation are normally favorable and can easily be managed. On the other hand, high changes in inflation rates will be problematic and are likely to adversely affect the economy. In the modern economic environment, the price levels are very critical when it comes to production and investment decisions. High inflation implies high prices and lower real incomes for people with fixed incomes, those with power to raise the high prices ar e not affected the same way as those who are not able. Inflation, however, is not an altogether evil concept in the economy; this is because it can be used to minimize unemployment (Harold Weihrich 2010). Economies cannot be always predicted; they fluctuate from period to period. Activities in the business most of the time leads to reduction in aggregate demand. As the aggregate demand falls, output and employment falls, these are negative impacts on the economy since the actual output is less than the potential output (Dwivedi, 2010). If the aggregate demand is low, it can be altered in the short-run by formulating policies like increasing government spending, cutting taxes or increasing the supply of money. The opposite will be the alternative if aggregate demand is high in the economy (Jha 2008). 2.1 Abercrombie Fitch Co Income statement The company has been performing well in the market taking into consideration the effects that were brought by the 2008 recession. Its profits have been adversely increasing as it has sort new markets that provide a lot of income to the company. Source: (ANF 2013) The company has been faced with various economic challenges such as reduced manufacturing output and continued increase in unemployment. However, the growth in the GDP is considerably strong since the growth is at a lively pace and it might help to solve the problems of a country. The current recovery remains stable, and problems such as high rates of unemployment may be able to get quick solutions (Nattrass, Wakeford Muradzikwa 2010). The company has been improving its revenues since year 2009 as can be seen below. Abercrombie Fitch Co. has been financing its operations to ensure better performance in the financial markets. The economic factors have been affecting the company, but the company has outsourced it s operations to ensure good performance. Below is the annual cash flow of Abercrombie Fitch Co. 2.2 Annual cash flow of Abercrombie Fitch Co Source: (ANF 2013) Some short-term fluctuations in the economy increase the level of unemployment. It is normally prevalent during hard economic times such as the 2008 and 2009 recession (Van 2010). In cases where unemployment occurs for a longer period of time, some productive resources are not used. This causes economic growth to slow down. On the other hand, when the unemployment levels drop or a country is moving towards full employment, the available resources are fully utilized (Carroll Buchholtz 2012). The companyÃ ¢Ã¢â ¬Ã¢â ¢s annual balance sheet shows that the total assets of the company are high and its debts are low. The companyÃ ¢Ã¢â ¬Ã¢â ¢s assets have increased as a result of quality improvement in the company. Source: (ANF 2013) The company should take advantage of its strengths to establish some strategies that will increase its financial performance. It should also reduce the weaknesses for better performance. There are also external op portunities that the company needs to use for its success (Dwivedi, 2010). Its strengths have been its ability to ensure that its employees are aligned with the responsibilities they are supposed to take. This has enabled the employees to be accountable when they do not achieve what they are supposed to achieve. The company has a strong sales department, delivers superior products and services, large economies of scale, and good relationships with its clients (Pulakos, 2013). The companyÃ ¢Ã¢â ¬Ã¢â ¢s weakness is that it uses a lot of money in advertising expenses, and also after the crisis, it had a lot of financial problems that included high rates of unemployment and high rates of inflation (Van, 2010). Though the rate of recovery is less than desirable, a positive economic growth is an indicator of a productive economy in the near future. Usually unemployment will start declining after other economic indicators have turned positive (Shim Siegel 2012). Economists have tr ied to explain the reason why unemployment rate is always the last economic indicator to revert upwards after the end of a recession. During recession, firms usually operate below their usual rate of production, thus many of the workersÃ ¢Ã¢â ¬Ã¢â ¢ productivity may be below the normal level. When the economy picks up the productivity, firms will certainly rise without hiring new employees; it will rely on the rising output of the formerly underutilized workers. Hiring of new employees will take place when the present labor force reaches its optimum productivity (Harold Weihrich 2010). The companyÃ ¢Ã¢â ¬Ã¢â ¢s recognition of its customerÃ ¢Ã¢â ¬Ã¢â ¢s needs and provision of quality goods has enabled it to perform well. These are strengths that have enabled the company to perform well in the market (Mukherjee Kumar 2005). 3.0 Conclusion and recommendation Financial performance and good socially responsible performance tend to depend on one another. In one hand, companies with good financial standing have the necessary resources to invest in socially responsible activities. They are able to invest in ways that have more positive strategic impact such as providing some services for the betterment of the community in which it operates and providing for the welfare of their employees. Through improved image, the company will be able to attract employees with better skills necessary for improvement of the organizational performance. Good financial performance depends on the socially responsible performance. This is because socially responsible companies have an enhanced brand image and good reputation among the consumers. Therefore, socially responsible corporate performance contributes to the bottom line benefits and improves financial performance. The company has been recovering at a slow pace from the economic meltdown, and one of the areas that have experienced some level of growth is employment. The rate of unemployment has been reducing over the recent periods and third quarter of 2012 recorded reduction of unemployment levels. The macroeconomic factors have affected Abercrombie Fitch Co. since the recession, but the company has been able to improve significantly in its financial performance. Bibliography ANF(2013). Abercrombie Fitch Co., viewed 11 February 2014, https://finance?q=NYSE%3AANFfstype=iiei=0lv6UsiCIcKTwQPp0AE Dwivedi, DN 2010, Macroeconomics: Theory and policy, Tata McGraw Hill Education Pte Ltd., New Delhi. Harold, K Weihrich, H 2010, Essentials of management : an international perspective, Tata New Delhi, McGraw-Hill, New Delhi. Jha, R 2008, Contemporary macroeconomic theory and policy, Wiley Eastern Ltd., New Delhi. Lamb, CW, Hair, JF McDaniel, CD 2012, Essentials of Marketing, South-Western Cengage Learning, Mason, Ohio. Mukherjee, S Kumar, S 2005, Organization and Management and Business Communication, New international Age Publisher, New Delhi. Nattrass, N, Wakeford, J Muradzikwa, S 2011, Macroeconomics: Theory and policy in Cape Town South Africa. Parikh, M Gupta, RK 2010, Organisational Behaviour, Tata McGraw Hill Education Pte. Ltd., New Delhi. Plantes, MK Finfrock, RD 2009, Beyond Price: Differentiate Your Company, In Ways That Really Matter, Greenleaf Book Group Press, Austin, TX. Pulakos, E 2004, Performance Management. A roadmap for Developing, Implementing and Evaluating performance Management Systems, Society for Human Resource Foundation, Alexandria. Shim, JK Siegel, JG 2012, Budgeting Basics and Beyond, Wiley Hoboken, N.J. Smither, JW London, M 2010, Performance management: Putting research into action, Wiley, San Francisco. Van, BH 2010, International finance and open-economy macroeconomics: Theory, history, and policy, World Scientific Singapore. Appendices Table 1: Abercrombie Fitch Co income statement Total In Millions of USD (except for per share items) 13 weeks ending 2013-11-02 26 weeks ending 2013-08-03 13 weeks ending 2013-05-04 14 weeks ending 2013-02-02 13 weeks ending 2012-10-27 Revenue 1,033.29 1,784.47 838.77 1,468.53 1,169.65 Other Revenue, Total Total Revenue 1,033.29 1,784.47 838.77 1,468.53 1,169.65 Cost of Revenue, Total 382.25 627.18 285.60 554.15 417.13 Gross Profit 651.04 1,157.29 553.17 914.38 752.51 Selling/General/Admin. Expenses, Total 696.26 1,157.27 567.90 699.49 620.32 Research Development Depreciation/Amortization Interest Expense(Income) Net Operating Unusual Expense (Income) Other Operating Expenses, Total -9.04 -6.67 0.58 -13.66 0.18 Total Operating Expense 1,068.66 1,779.22 852.69 1,239.98 1,036.30 Operating Income -35.37 5.24 -13.92 228.55 133.34 Interest Income(Expense), Net Non-Operating Gain (Loss) on Sale of Assets Other, Net -0.07 Income Before Tax -37.02 1.87 -15.55 225.48 131.76 Income After Tax -15.64 4.17 -7.20 147.00 84.04 Source: (ANF 2013) Table 2: The balance sheet In Millions of USD (except for per share items) As of 2013-11-02 As of 2013-08-03 As of 2013-05-04 As of 2013-02-02 As of 2012-10-27 Cash Equivalents 3.40 3.57 160.01 245.00 0.00 Short Term Investments 19.90 Cash and Short Term Investments 257.52 335.02 555.90 643.50 369.57 Accounts Receivable Trade, Net 86.73 92.89 91.30 99.62 91.41 Receivables Other Total Receivables, Net 86.73 92.89 91.30 99.62 91.41 Total Inventory 768.95 633.48 458.63 426.96 536.32 Prepaid Expenses Other Current Assets, Total 173.41 154.68 155.87 137.74 164.47 Total Current Assets 1,286.61 1,216.07 1,261.71 1,307.82 1,161.77 Property/Plant/Equipment, Total Gross 2,986.43 2,950.69 2,921.21 2,915.07 2,906.56 Accumulated Depreciation, Total -1,825.53 -1,697.85 -1,652.92 -1,606.84 -1,593.43 Goodwill, Net Intangibles, Net Long Term Investments 0.00 Other Long Term Assets, Total 404.88 373.93 365.02 371.35 374.55 Total Assets 2,852.40 2,842.84 2,895.01 2,987.40 2,849.45 Accounts Payable 185.44 195.73 146.24 140.40 165.39 Accrued Expenses 307.96 291.77 301.49 398.87 358.48 Notes Payable/Short Term Debt 15.00 15.00 15.00 0.00 60.00 Current Port. of LT Debt/Capital Leases Other Current liabilities, Total 95.18 76.73 70.78 151.54 113.92 Total Current Liabilities 603.58 579.23 533.51 690.80 697.79 Long Term Debt 123.75 127.50 131.25 0.00 Capital Lease Obligations 61.62 61.13 61.00 63.94 64.48 Total Long Term Debt 185.37 188.63 192.25 63.94 64.48 Total Debt 200.37 203.63 207.25 63.94 124.48 Deferred Income Tax Minority Interest Other Liabilities, Total 388.43 391.32 389.48 414.39 424.41 Total Liabilities 1,177.38 1,159.18 1,115.23 1,169.13 1,186.68 Redeemable Preferred Stock, Total Preferred Stock Non Redeemable, Net Common Stock, Total 1.03 1.03 1.03 1.03 1.03 Additional Paid-In Capital 425.93 410.41 403.82 403.27 390.41 Retained Earnings (Accumulated Deficit) 2,505.45 2,536.50 2,542.77 2,567.26 2,366.67 Treasury Stock Common -1,240.87 -1,241.36 -1,146.79 -1,140.01 -1,088.93 Other Equity, Total -16.53 -22.92 -21.05 -13.29 -6.42 Total Equity 1,675.02 1,683.66 1,779.78 1,818.27 1,662.77 Total Liabilities Shareholders Equity 2,852.40 2,842.84 2,895.01 2,987.40 2,849.45 Shares Outs Common Stock Primary Issue Total Common Shares Outstanding 76.39 76.39 78.31 78.44 79.56 Source: (ANF 2013). Table 3: The cash flow statement In Millions of USD (except for per share items) 39 weeks ending 2013-11-02 26 weeks ending 2013-08-03 13 weeks ending 2013-05-04 53 weeks ending 2013-02-02 Net Income/Starting Line -11.48 4.17 -7.20 237.01 Depreciation/Depletion 180.61 120.31 59.46 224.25 Amortization Deferred Taxes -60.80 -26.23 -12.35 -21.54 Non-Cash Items 118.06 21.64 9.88 44.66 Changes in Working Capital -456.55 -328.62 -193.41 199.80 Cash from Operating Activities -230.16 -208.72 -143.63 684.17 Capital Expenditures -124.03 -81.23 -42.37 -339.86 Other Investing Cash Flow Items, Total -6.32 -5.31 -2.64 92.62 Cash from Investing Activities -130.35 -86.54 -45.01 -247.24 Financing Cash Flow Items 2.43 2.37 1.11 1.20 Total Cash Dividends Paid -46.64 -31.36 -15.69 -57.63 Issuance (Retirement) of Stock, Net -115.81 -115.61 -16.21 -318.99 Issuance (Retirement) of Debt, Net 137.94 138.74 139.06 -4.65 Cash from Financing Activities -22.08 -5.87 108.27 -380.07 Foreign Exchange Effects -3.39 -7.35 -7.24 3.15 Net Change in Cash -385.98 -308.48 -87.60 60.01 Cash Interest Paid, Supplemental Cash Taxes Paid, Supplemental 110.30 104.30 96.90 122.70 Source: (ANF 2013)
Wednesday, May 6, 2020
First Impressions are Not Lasting Impressions When you see a person in a wheelchair, a person with no legs, or a person with physical abnormalities what is you reaction? Do you stare with curiosity? Do you pretend to be indifferent and walk by like there is no person there at all? Are you disgusted or stricken with pity? Or do you see them as a person, just like you, living their life the best they know how? Our perception of people are largely based on their physical appearance and often the thoughts that enter our minds when we see an individual that has a visual disability are negative and cause us to formulate a disapproving impression about their person as a whole. The question lies in what happens with the initial impression.Ã¢â¬ ¦show more contentÃ¢â¬ ¦Or if a person is missing a limb, in our minds they are an incomplete person. We may think that they dont have the same things to offer society that a person with that has all four limbs intact has. In the same light, if an individual were to be unable to speak a word or sentence with fluidity due to some dysfunctional neurological function, we assume that they are somehow stupid and they dont have the capacity to formulate a meaningful and intelligent thought, when in reality they may intellectually far surpass the average person. Due to this initial perception that is drawn, a broader conclusion is made about the person as an entire entity that mirrors that initial perception. In essence, a halo effect occurs and the persons positive or negative traits seem to spill over from one area of their personality to another in others perceptions of them. Bodily appearance assumes a major role because the visible appearance of an individual, not the invisible personality, constitutes the main basis of identification. (Chapter 4, Pg 61) But if these initial conclusions remain throughout the relationship, then how might a relationship between two people flourish into greater intimacy, similar to that of the relationships between the woman with cerebral palsy and the man at the party in Skin Horse? They answer is that they dont; the initial perceptions of people do not remain once one has gotten to know the person better.Show MoreRelatedAn Reflection On The Impression Formation1723 Words Ã |Ã 7 PagesINTRODUCTION: Impression is a long lasting image of a person created in our minds which can last long for years. There are a lot of research done by Solomon Asch (1946), Bruner Taiguri (1954), Rosenberg, Nelson Vivekanathan (1968) to understand Impression Formation. According to Solomon Asch (1946) at a glance of any person an impression of his personality can instantly form. Even by looking or talking with that person a whole story about his entire character can be told. 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Question: Discuss about theMarketing Strategy Developmentfor Organization and the Industry. Answer: Introduction The organisation, ASDA has been taken for complete analysis of the marketing strategies. It is one of the leading supermarket retailers that is operating in UK. It is selling a variety of products in its store. It has a general assortment of products, electronics items, garments and food items. The company is the second largest retailers after Tesco. The company also has a section that offers Financial Services to its customers. It also has a mobile phone business. The company has nearly 500 stores across the entire country with a combined workforce over 175,000. (Liu and Ko, 2014) The mission of ASDA is to become the best retailer in terms of value and not only meet but to exceed the needs of their customers on a regular basis. The purpose of ASDA is to help people save money by offering the products at the lowest possible price.The company is committed to its objectives to meet the challenges in the course of its business. They are careful that the quality that is offered is in no way affected by the adversities that they face in their business. They work on a continuous basis to offer the best products to the customers which are sustainable in nature. Marketing is the method of promoting the products of the company for sale. It is only through the sale of the products or the services that a company earns its revenue. Every company takes certain strategies for marketing to maximise the sale of its products. The most unique selling point for the products of ASDA is the pricing policy. The company maintains one of the lowest prices to attract its customers.(Ododo, et.al, 2015).It is committed to give the products lower than any other player in the retail market. As per its declaration, it gives products at rates cheaper to the extent of 10% in comparison to that of its competitors. The cost comparison can be done online also. The comparative prices can be obtained during the time of online shopping. One can know the prices at the rival stores by sitting at home. The low pricing factor is the main reason behind the voluminous sale of ASDA. The branding of a company helps in easy identification of a company and its product. After the takeover of ASDA by WalMart in 1999, there has been a thrust on the branding exercises which form an important part of the marketing strategies.(Stobart, 2016).ASDA is offering food, apparel, household items, books, music CDs, etc. It has also added sections selling medicines, optical, ornaments, etc. The food items are being sold with the branding of being low cost items. The new businesses have incorporated the similar messages that have led to an easy identification with the customers.The company has also introduced financial services. The company focuses on its low pricing with quality as part of its branding and promotion exercises. (Zentes and Morschett, 2013) Analysis of the 5Cs for the Organization Company- The Company can be Analysed on the Basis of the SWOT Analysis. Strength: The Company deals with multiple products and services. It also has a strong marketing campaign in place. The Company is very good at maintaining the contact with its customers. It wants feedbacks from the customers for bettering its products and services. It does its best to meet the customer satisfaction levels. The Company has a strong image of a responsible corporate citizen. It undertakes various CSR activities to remain committed to the community. (Metzger, 2014) Weakness: ASDA has its presence majorly in the U.K. Opportunity: There are huge scopes for the Company in the newly added areas of pharmaceuticals, jewellery, photography and opticals. The Company can explore growing markets in countries such as China and India. (Pancholi, 2014) Threats: There are threats of pricing from rivals. Maintaining low pricingbecomes a pressure at times. Some Government policies also create challenges. Customers- All segments of the society are the target customers of ASDA. It has been found that women customers are more than that of men. They form the segment who buys the regular use products. The males are also customers who buy the products for the entire family. People tend to look for quality at the best prices. The household expenses are dependent on these expenses and people tend to buy within a monthly budget. (Seaton and Waterson, 2013) Collaborators- ASDA maintains a steady healthyrelation with its suppliers. It believes in a win-win relationship. It has different suppliers in the areas of FMCG products, general goods, and apparel. One of the thrust areas is to keep the pricing low so that the Company can retain its market shares. A smooth relation with the collaborators is essential to keep a steady flow of stock of products in the different stores spread across the nation. Competitors- The major competitors of ASDA are Tesco, Sainsbury and WM Morrison Supermarkets. ASDA is second in the place of retail in UK after Tesco. The needs of the customers are changing and that has to be met to stay in the race. The pressure is of the pricing which has to be kept low but the quality of the products has to be maintained. As of now, there are no threats from any new entrants but the existing players have to be dealt with strategically. (Dey, 2016) Context- If the supermarkets are shifted outside the city, the footfall of the customers will tend to come down. This may become a serious business threat for ASDA. The day to day products will be bought by the people from smaller stores that may be nearer to their residences. With the economic turmoil, the disposable cash in the hands of the people have gone down. This has led to the fall in the sales overall. If more money can be pumped in for the advertisement expenses, there are chances of the rise in the sales figures. How does the Firm go about Collecting Information? For the best marketing of the products and services, there needs to be a market research carried out. ASDA has to determine what the actual need of the customers is. Only if it can match the requirement of the customers, it will be able to stay in the competition with its rivals. Retention of the customers will be possible through this. Questionnaire forms and feedback sets from the customers can provide an insight into the actual requirements of the customers. The changes have to be made accordingly so that these issues are addressed and the customers are retained. The customers are very sensitive to their requirements. The Company keeps a close watch on its competitors and the way they are marketing their products. The competition in the retail market is very stiff. The major competition is in keeping the prices down and within reach of customers. The Company tries to maintain the lowest price ranges to retain the market share. (Zikmund, et.al, 2013) The companies such as Tesco and Sainsbury are closes competitors. The Company maintains a close watch on the offers that these companies are making to attract the customers. Accordingly, a change in the promotional approach has to be done. The maintheme is to keep the customersattracted to the Companys products. (Hair Jr and Lukas, 2014) The collaborators such as the suppliers also play a major role in the maintaining of the market position. If the suppliers are not punctual and regular with the delivery of their products, the Company will have to suffer. It has to be ensured that the suppliers are in close contact and are equipped to provide the supply as per the requirement. If there is a shortage of supply, the customers will not wait. They would prefer to go to the stores of a rival Company to collect the product of their choice. Also, the availability of variety should also be there so that customers are free to make a choice as per their discretion. (Ogilvie, et.al, 2016) With the widespread popularity of the digital media, online shopping has caught up. Many people prefer to do their shopping by sitting at home on the online shopping page. A proper e-commerce page is necessary where the products should be highlighted properly so that online sales pick up. The range of products has also increased. The customers have a wide range of options. If the offer is not attractive enough with low pricing, there is every possibility that a customer can shift to a product from a rival brand. Competition has become stiffer and customers have become more conscious of quality. (Fullerton, 2014) Developing the Marketing Strategy ASDA can go for dividing the market according to specialised areas. It will be easier to address the customers in the segmented manner. Relevant advertisements can be made that will be more appealing to this segment of potential customers. The company can also keep in contact with this target segment in a better way. The market segment can also be done on the basis of age. All [products do not appeal to people of all ages. If the promotions can be done in a way that appeals to the age segment, the sales figures are bound to rise. (Simkin, 2016).The ads made targeted for the youths will have different language and presentation compared to those which are for relatively aged people. The Company can also go for opening smaller stores in different parts of the country. The operating stores are generally large supermarkets that are in larger cities. With smaller stores spread out over the land, the reach will be increased to a much bigger number of customers. This will result in higher sa les figures which will lead to a growth in the profits. This will pose a barrier in case any new entrant plans to come into the market. The loyalty of the customers is bound to get enhanced with this option. (Hoang, 2016) As ASDA has been taken over by Wal Mart, it has now got the experience and expertise of the food and the fashion field. The Company has now a much better quality of products to offer.The Company is committed to offer the best quality at the lowest prices. The Company is always on the lookout for lowering its prices. The major threat is from the Competitors. The only way to stay ahead of them is to offer the customers something different that would seem more beneficial to the customers. ASDA has to actively keep a watch on the offers that are being brought out by the rivals. (Ododo, et. al, 2015).It needs to offer schemes that will make a greater saving on the part of the customers. This unique feature needs to be stressed on the promotional activities and the advertisements. The different ads must appeal to the emotions of the customers. If they are so and are eye-catchy, people will tend to buy from ASDA. The Company should always position its products as per the target segments. It must keep on a continuous survey to catch hold of any developing requirement of the customers. If any point is found that has to be addressed immediately. If the chance is missed out, it may be capitalised by one of the rivals. (Daniel, 2015) Developing the Marketing Tactics For the best effects of the marketing results,a marketing mix of the 7Ps needs to be carried out. None of them can be ignored as they are dependent on each other. (Hamzah and Sutanto, 2016) Product:The Company must always have the products in its focus. There should be ample variety for the customers. They should meet the needs of the customers. The requirements of the customers tend to change. The Company must keep track of the needs so that ASDA may be able to meet these requirements and the customers feel attracted to buy these products. Place: The ready availability of the products at the stores is necessary. The larger stores house a larger variety of products. But, these supermarkets are there only in the big cities. If smaller stores are developed that are spread out over the country, larger people can have access to the different products that are sold by ASDA. The chances of greater sales revenues are increased. (Sethna and Blythe, 2016) Price: Pricing is one of the most sensitive parts of business. In a retail store like ASDA, people want to get the best quality of the products at the lowest price. Most of the customers will buy only when they are satisfied with the pricing. They can only be wooed if the pricing is kept low without decreasing the quality of the products. Promotion: Promoting the products in the most catchy and innovative manner can boost the sales of products. ASDA should engaged different innovative advertisements to catch the attention of the customers. Different offers should be provided that can help customers get the feel of saving money which in turn increases sales such as Buy one, get one free. Collections of points over purchase and redeeming them into money or gifts can also be attractive ideas. (Datta, H, et.al, 2016) People: The employees of ASDA play a vital role in the business. People who are employed should be efficient at their jobs. The ones who are dealing with the customers directly should always try to make the customers satisfied. This is the key to increase customer loyalty. The approach should be friendly and no customer should go back with any kind of grudge. Process: The shopping experience for the customer has to be made as smooth as possible. There should be no hitches faced by the customer. This is applicable to the stores as well as the online shopping. The display of the products and the billing and payment should all follow a smooth process. Physical Evidence:The different products have to be kept properly displayed by ASDA. The physical evidence creates a significant impact on the buying behaviour of the customer. The customer should be able to have a demonstration of the use of the product if so desired. (McCann, 2014) The proper use of the 7Ps will create the most effective marketing tactics for ASDA. None of them are to be dealt with independently. A proper mix of them can create the desired results. Reference Liu, G. and Ko, W.W., 2014. An integrated model of cause-related marketing strategy development.AMS review,4(3-4), pp.78-95. Stobart, P. ed., 2016.Brand power.Springer. Zentes, J. and Morschett, D., 2013. Retail BrandingConcept, Effects and its.Strategic Management: A European Approach, p.161. Metzger, K., 2014. Business analysis of UK supermarket industry. Pancholi, K., 2014. Retail stores of the UK and determinants of their customers' satisfaction.The Business Management Review,5(1), p.220. Seaton, J.S. and Waterson, M., 2013. Identifying and characterising price leadership in British supermarkets.International Journal of Industrial Organization,31(5), pp.392-403. Dey, K., 2016.Customer Loyalty in the UK. What Causes Consumers to Be Disloyal to Big Supermarket Brands? Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013.Business research methods.Cengage Learning. Hair Jr, J.F. and Lukas, B., 2014.Marketing research.McGraw-Hill Education Australia. Ogilvie, J., Lindsey, K., Reynolds, K. and Northington, W.M., 2016. Examining Reactive Customer Engagement Strategies in Online Shopping Cart Abandonment: A Regulatory Fit Perspective.InRediscovering the Essentiality of Marketing(pp. 755-756).Springer International Publishing. Fullerton, G., 2014. The moderating effect of normative commitment on the service quality-customer retention relationship.European Journal of Marketing,48(3/4), pp.657-673. Hoang, T., 2016. Market research and marketing plan to enter the United King-dom food supplements market. Case Danapha. Daniel, H., 2015. The impact of the marketing environment: Greggs.Docs.school Publications. Hamzah, S.B. and Sutanto, J.E., 2016.The Role of Marketing Mix (7P) for Consumer Buying Decision Pastry Cake in Malang City. Sethna, Z. and Blythe, J., 2016.Consumer Behaviour.SAGE. Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2016. How Well Does Consumer-Based Brand Equity Align with Sales-Based Brand Equity and Marketing Mix Response?.Journal of Marketing. McCann, S., 2014.An investigation into the value of product names, their impact on consumer behaviour and subsequent marketing tactics. An investigation using low-involvement purchases within the Irish retail sector(Doctoral dissertation, Dublin Business School). Ododo, C., Mulholland, G. and Turner, J., 2015, November. Can Discount Pricing Be A Comeptitive Brand Strategy? An Evaluation of Aldi.InInternational Conference on Marketing and Business Development(Vol. 1, No. 1, pp. 241-251).Bucharest University of Economic Studies Publishing House. Ododo, C., Mulholland, G. and Turner, J., 2015, November. Can Discount Pricing Be A Comeptitive Brand Strategy? An Evaluation of Aldi.InInternational Conference on Marketing and Business Development(Vol. 1, No. 1, pp. 241-251).Bucharest University of Economic Studies Publishing House. Simkin, L., 2016. 11 Segmentation.The Marketing Book, p.271.
Thursday, April 23, 2020
Sigma Marketing Case Study Sigma Marketing has been ahead its time from the marketing aspect for decades. Although the company will have to adjust to the external environment in order to have continued success. The case study did not seem to mention competition but the company has a niche which limits the competition they will face. Finding an unfilled need is the key to reducing or eliminating competition. Therefore, I do not foresee competitors creating a major problem for Sigma as they are the founders for what they do and continue to raise the bar in order to stay relevant. According to the text, technology advancements refer to the way accomplish tasks or the processes we use to create the Ã¢â¬Å"thingsÃ¢â¬ we consider new (Ferrell amp; Hartline, 2011). Technology can create new marketing opportunities for those companies that embrace and implement the changes. Sigma has always invested in additional training, continued education and upgrades regarding technology advances. We will write a custom essay sample on Sigma Marketing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Their commitment to stay in the forefront will serve them well in the future. From administrative tools to e-commerce, technology will be the companyÃ¢â¬â¢s biggest challenge over the years. As technology advances, companies may find ways to produce some items in-house with the younger generations starting to become a part of the workforce that grasps technology better than the aging workforce in place. In order to combat the changes in the workforce, Sigma must put a strong emphasis on communication. Communication with the client is an essential aspect of firmÃ¢â¬â¢s success. With several choices available many times the decision maker is the customer service that a company provides. Continuing to solidify communication to long standing clients and building new relationships with new clients will make a big difference. Communication will have the biggest impact on Sigma as technology makes face to face meetings obsolete. Sigma must find new ways to keep a face and the name connected. Phone calls and annual meetings with clients to discuss what they have done and what they are looking to do differently will play a large part in keeping clientsÃ¢â¬â¢ needs met. SWOT for Sigma Marketing Potential Internal StrengthsRespected companySuperior managementBetter marketing skillsAlliances with other firmsGood distribution skillsCommitted mployeesWell trained employeesGrowing product line| Potential External OpportunitiesChanging customer needsNew technologyClientÃ¢â¬â¢s growth| Potential Internal WeaknessesProduct lineLoss of visionary Aging workforce| Potential External ThreatsChanging customer needsRival firms developing new strategiesEconomic downturnNew technology| The most important strategic initiatives for Sigma are personnel strategies, succession plans and sustainability. Making sure that Sigma personnel continues to be well educated and skilled will help to determine whether the company continues to grow or starts to decline in the long term. Succession of leadership goes along with the strength of the personnel. Once Mike retires, there will need to be a smooth transition of leadership. This transition will affect the entire company from the vision to client relations. If done properly there will only be minimal adjustments and continued growth of the company. Otherwise this transition can be the companyÃ¢â¬â¢s downfall. Sustainability is another vital issue. With many companies going green trying to reduce their carbon footprint, Sigma must continue to find ways to reduce theirs also. Companies with these environmental concerns pay more for services and products from green companies and stop doing business with those companies that are not making a difference. Sigma Marketing has been an innovator since the beginning and continues to reinvent itself. If it continues to follow the vision that its founder had the company should have continued success and growth. References Ferrell, O. C. , amp; Hartline, M. D. (2011). Marketing Strategy (5th ed. ). Mason, OH: South-Western Cengage Learning.
Tuesday, March 17, 2020
The Golden Age of Islam essays The rise of Islam ushered in an entirely new era for the people of the Arabian Peninsula as early as the 7th century CE.Ã Islam extended itself across the Middle East and then began its conquest of North Africa, reaching into Spain and Eastern Europe.Ã The 1200s saw Islam's spread into India as well as Southeast Asia.Ã The success and expansion of Islam throughout these times was founded on the power of the empire's military, the effectiveness of a common language, and the egalitarian practices of leaders regarding conquered peoples. Islamic armies possessed the ability to efficiently and quickly advance the territories of their empires by employing advanced ideas and tactics as well as their superior use of a militant cavalries made up of both horses and camels.Ã The leaders of these armies and empires treated conquered peoples with remarkable tolerance, once these people agreed to their authority, of course. In combination with this territorial expansion, intellectual e xpansion exploded. This time period is known as the Golden age of Islam and was focused on three main principles of language, trade, and education. In order to read the Quran, a devout Muslim would need to learn Arabic, the original language of the holy book. This religious requirement affected more than just the daily religious practices of Muslims, it aided in uniting the multifarious indigenous cultures within the empire of Islam. The spread of knowledge, technologies, and ideas was made possible by the use of this common language, effectively uniting the culture. Literacy is an important aspect of this transformation. Unifying faiths and languages alone, for all that, did not solely inspire the expansion of literacy and academics cultivated by the Golden Age of Islam, however. Because of expanded trade, the city of Samarkand, on the eastern border of the empire, brought in Chinese technology for making paper. All of a sudden, the time-intensive transforma...
Saturday, February 29, 2020
In order to be known as Ã¢â¬Å"TheÃ¢â¬ global chemical supplier BASF redefined its image by officially changing its name from Ã¢â¬Å"BASFÃ¢â¬ to Ã¢â¬Å"BASF the chemical companyÃ¢â¬ in 2004. This bold statement is expressed in their brand, corporate identity and company logo. BASF has lived up to this goal establishing itself as the largest chemical company in the world. (1) BASF, which stands for Badische Anilin- und Soda-Fabrik (Baden Aniline and Soda Factory), has used its image marketing to evoke the concept that We dont make a lot of the products you buy. We make a lot of the products you buy better. Ã ®. BASF posted sales of 52. 6 billion euro in 2006 (1) placing itself above Dow Chemical, its closest competition, followed by companies Bayer AG and DuPont. BASF the chemical company markets a strategy in all its divisions called the Ã¢â¬Å"VerbundÃ¢â¬ concept, a German word meaning Ã¢â¬Å"linkedÃ¢â¬ . This concept of total integration is how BASF aligns its businesses internally as well as with customers and suppliers. BASF has realized a competitive advantage by not only integrating but interlocking value chains. In the last three years practicing on the Verbund concept acquisitions like Engelhard Corporation, Degussa AG and Johnson Polymers have allowed BASF to further its vertical integration of its businesses. In 2007 BASF found its place at a rank of 81 on the Fortune Global 500 Companies list, up from 94 in 2006. In February of 2006 Fortune magazine performed a survey of U. S business professionals and BASF earned the distinction of being one of the 50 most admired companies in the world in a global comparison. Introduction When you say Ã¢â¬Å"BASF the chemical companyÃ¢â¬ many people may not know the name but those who do can usually recite the slogan: We dont make a lot of the products you buy. We make a lot of the products you buy better. Ã ®. Even those that can recite the slogan can be quite challenged to give one example of a product that BASF makes. Given this you would be amazed at some of the everyday products that use BASF chemicals. The additive that thickens your shampoo, the Ibuprofen used in your pain medication, the Legos Ã ® your kids play with all have components supplied by BASF. The only reason an average person would hear of BASF is through their corporate level image advertising. How is it that a company whose products are never seen by the average consumer ends up as the worlds largest in its industry? How it is a company that many have not heard of could make acquisitions in the 1. 6 billion dollar range? How is it a company can post sales in the 52. 6 billion euro range and the average consumer does not know who they are yet there products are everywhere? The first team discussions on what company to do the report on a team member brought some information to the table. This information is that he works for the worldÃ¢â¬â¢s largest chemical company and no one knew what the company truly makes provoking the questions from above. The challenge is to understand how a company markets itself to a global position without the normal consumers influence. Our team chose this company to look at a business that would perform its marketing in a different environment than the main stream consumer environment and to better understand how a company markets without being seen. This is a report on business to business marketing observations of BASF the chemical company. Table of Contents Ã¢â¬ ¢Macro-Environment Context Ã¢â¬ ¢Marketing, Research Customer Analysis Ã¢â¬ ¢Segmentation Target Markets Ã¢â¬ ¢Differentiation and Positioning Ã¢â¬ ¢Marketing Decision Levers Ã¢â¬ ¢Recommendations Macro-Environment Context BASF is the worlds leading chemical company. They offer intelligent solutions based on innovative products and top notch services to its customers globally. This is the basis of their mission statement and purpose as a company. Their mission is also to create opportunities for success through trusted and reliable partnerships. BASF visions of success include sustainable profitable performance, innovation for the success of customers, safety health and environmental responsibility, personal and professional confidence, mutual respect and open dialog as well as integrity. Creating a Sustainable Profitable Performance to BASF is the basis for all activities within the company. They are continually committed to the interest of their customers first and foremost. They take pride in rewarding their employees, shareholders and take the same stance with regards to society as a whole to better the environment around them for future generations. BASF takes pride in developing innovation for their customers to add continuous long term partnerships well into the future. Their trade mark statement of We dont make a lot of the products you buy. We make a lot of the products you buy better. Ã ® clearly states this philosophy. They derive nearly all of their business from Business to Business (B2B) sales. This makes innovation very important in all of their many niches in multiple markets they involve themselves in. Partnerships are valued within BASF and are built upon continually to mutually take advantage of highly scientific and technological advances. Due to the nature of the business, that being a chemical company, the environment must take precedence to ensure success. In this day and age, if your company doesnÃ¢â¬â¢t take steps to protect the environment that it is in, it wonÃ¢â¬â¢t be in business long enough to matter. BASF takes safety, health, and environment responsibility to a level that supersedes that of economic considerations. BASF makes their products environmentally friendly for future generations by supporting the Responsible Care TM initiatives. BASF puts itself among the best in the world by fostering group-wide diversity personal and professional competencies. They feel that diversity leads to global success and capitalizes on competition by offering many differing views. They encourage employees to be creative and utilize their potential for common success. In addition they treat everyone fairly and with mutual respect. They try to keep open dialog with all employees, customers, stockholders and relevant groups within society to keep all on a level playing field. The last core value that BASF incorporates is Integrity. The company acts with respect to their words and values. They comply with all laws and respect all good business practices in the many countries that they operate. BASF has a great strategy that includes 4 simple strategic initiatives. They earn a premium on their capital, they help their customer be more successful, they form the best team in the industry, and they ensure sustainable development. All of which are conveyed in the visions for the company same as above. The strategic initiatives are the product of years of providing excellent products at a competitive price to all of its customers. Politically speaking, BASF is globally involved. Based in Germany and intertwined within business all around the world it would be impossible to not be involved in politics. It takes a great stance on political issues to continue its success in business and to show continued enthusiasm in protecting the environment. With regards to the Environment, BASF strives to be the best and let the world know that this is an important issue. Environmental issues in past years have shown light on companies that make their business creating and working with chemicals. BASF cannot escape the microscope of this issue. They comply with all government regulations in all countries it does business to ensure their future. They support the Responsible Care TM initiatives and keep them at the forefront of their values. Environmental issues to BASF ties directly to their social responsibility. The people at BASF value their own lives as much as their neighbors and support this by their integrity. They treat those around the world with the same respect that they feel they would want, regardless of what they are doing. Be it they are selling products to another company or creating a new product, social responsibility is never taken lightly. Technologically BASF prides itself in being the best for themselves and those they do business. They invest millions upon millions to ensure success in the ever changing markets all over the globe. They pass their technological advances on to their customers to ensure continued success and lasting partnerships. Technological advances in the chemical field have undoubtedly kept BASF at the top for so many years. Given a clear SWOT analysis of BASF from any level of the organization, the business unit, the product line or the specific product yields a clear image of their strengths, weaknesses, opportunities and threats all over the globe. SWOT analyses are often used during sales meetings to identify opportunities in the market. They have proven themselves over and over by being a superior company throughout all markets. A tried and true philosophy rooted in the companyÃ¢â¬â¢s vision and values brings this out in them. They continually identify trends in the industry and counter the changes all the time. In addition they analyze their competition whenever possible to capitalize on those before them. BASF analyzes itself through multiple management channels to ensure continued innovation and profit for its customers, employees and shareholders. Teams all around the globe research the firmÃ¢â¬â¢s present and future clients to build lasting relationships and capitalize on hidden opportunities to improve themselves. Their strengths encompass being a globally prestigious brand, a large market share, and universally known for its social and environmental activities. Opportunities lie within possible joint product lines with other companies and customers. Weaknesses of BASF are global spreading in the way of having employees all over the world and keeping focus on attainable goals. They are influential in just about all markets and run the risk of being thin in a small amount of them. Threats within the chemical market could be the continual need to stay environmentally friendly. This can add costs and reduce focus on core assets of the business. While everyone wants to stay Ã¢â¬Å"greenÃ¢â¬ , it comes at a price and that has to be economically accounted for keeping the cost benefit ratio at an equilibrium that is good for all. Marketing Research Customer Analysis BASF being a company that markets its goods and services to organizational firms primarily focuses on the practice of business marketing and being a company that produces no real end product the analysis of normal consumer behavior is not widely used. The success of a business to business marketing plan is in the hands of an organizations purchasing group. These groups that make the purchasing decisions for organizations usually have numerous deliverables that could drive the individual market. One group may see delivery performance as a key factor in their purchasing decisions, the next market segment may see price, value added services or warranty as the key elements. Because of this BASF must continually scan the environment of each of its individual segments and markets using a multidomestic marketing strategy. Being a global provider of chemicals the use a multidomestic marketing strategy helps in the sale of their diverse array of products dependant upon the particular market and the unique region. Marketing research in a commodity based business like the chemical business is primarily based on the use of combination of secondary data analysis and a small amount of primary data gathering and mainly environmental scanning. Scanning the environment and staying on top of the latest social, economic, technological, competitive and regulatory forces help BASF form its global strategy in marketing. This strategy then flows down to the different divisions using more practical marketing research tools to grow the business. Being a business to business company means marketing research is primarily secondary data. BASF globally uses SAP business software. The information gathered in this software is used to formulate sales forecast based off past performance. It is also used to analyze what products are moving and which are not giving key indicators of what products or even divisions are the Stars which are the Dogs, Cash Cows and Question marks. Corporate sales, procurement and logistic systems like WorldAccount or EnsphereÃ ® are also used to gather this data to better service the customer. Trade magazines and publications are used by many of the divisions to gather data in the development of marketing plans. Here is an example from one of the divisions; BASF Industrial Coatings uses trade publications like Metalmag and Construction News to analyze industry trends. Along with trade magazines industry web sites provide information as well. Sites like the one listed below provide valuable information to keep BASF on top of the industry and whatÃ¢â¬â¢s the voice of the customer. These sites are for the Industrial Coatings division. http://www. coolmetalroofing. org (cool metal roofing coalition) http://www. coolroofs. org (cool roof rating council) http://www. metalconstruction. org (metal construction association) http://www. themetalinitiative. com http://www. designandbuildwithmetal. com (new website lots of pertinent info). Although this is just one division of BASF the same practices reflect across the different divisions. Although not highly used, BASF does a small amount of primary data gathering. In the different divisions web polls, new product or service trials and focus groups have been used to gather information about the voice of the customer. Companies like Ducker Worldwide have performed Ã¢â¬Å"Voice of the Customer Focus GroupsÃ¢â¬ to gather information on the performance of BASF as compared to their competition. Trials include potential new products or services that are either presented or given to a customer to test the markets interest in such goods. These goods or services are run through a customer in the industry to collect information on what the markets tolerance is for such goods or services. Regulatory, social, economic, competitive and technological forces help steer the marketing plan of the various BASF divisions. Through environmental scanning in each of these unique regions BASF collects data. The data is then analyzed to focus on trends in the global market. This data is then used to help direct the company and marketing plan. Canada has had legislation banning/limiting the use and importing of the chemicals such as Isophorone. Isophorone is a distillate of acetone a chemical used in inks, coatings and copolymers. This markets regulatory force led to a change in the components used in coatings sold into Canada. This led to the marketing of Ã¢â¬Å"Isophrone FreeÃ¢â¬ coatings. This information was gathered and then marketed through brochures and fliers as well as the face to face interactions of the BASF sales force with their Canadian customers. With the ever increasing focus on the health of our environment, not only locally but globally, BASF has recognized this social pressure and focused an incredible amount of energy on marketing to the Ã¢â¬Å"Green MovementÃ¢â¬ . A mere visit to the BASF web site will show the amount of energy being placed upon marketing to the environment. This Green Marketing can be seen in headlines like Ã¢â¬Å"Intelligent solutions for climate protectionÃ¢â¬ , Ã¢â¬Å"Sustainable developmentÃ¢â¬ , Ã¢â¬Å"Eco-EfficiencyÃ¢â¬ and Ã¢â¬Å"Climate ProtectionÃ¢â¬ on the lead in page of their web site. BASF is currently marketing its association with world wide movement Ã¢â¬Å"Eco- Efficiency AnalysisÃ¢â¬ . Figure 1. Eco-Efficiency Analysis comparing BASF Ibuprofen to competition This term that was coined by the World Business Council for Sustainable Development (WBCSD) in its 1992 publication Changing Course looks at the overall footprint of a product from Ã¢â¬Å"cradle to graveÃ¢â¬ . Realizing the negative image of chemicals and their effect on the environment BASF uses Eco-Efficiency certification to market and sell the total impact a product will have on the environment. The hope is that their product will stand out as environmentally better than the competitions (Figure 1). This certification is being offered on many of its product lines across the globe. Products like Ultradur Ã ® high Speed easy flow plastic, Ecoflex Ã ® biodegradable packaging material carry the Eco-Efficiency seal. Other products like or Ultra-cool Ã ® paints with UV resistant pigments to reduce heat transfer in buildings carry the Energy Star certification. All these have come from environmental scanning. Ultra cool was marketed well enough that it pre-dated any legislation that followed. CaliforniaÃ¢â¬â¢s Ã¢â¬Å"Title 24 Energy CodeÃ¢â¬ now mandates solar reflective coatings used in construction. In the metal roofing industry BASF was the only company producing Ã¢â¬Å"coolÃ¢â¬ coatings that could meet this legislation and they were producing it before the legislation was enacted. Since then all major suppliers of paint for metal roofing have developed and now market Ã¢â¬Å"coolÃ¢â¬ coatings. This market segment did not exist until the development of BASFs Ultra-coolÃ ® coatings. This is a testament to the effects of collecting marketing data using environmental scanning, product development and marketing. In scanning the economic climate BASF has gathered data for years on the benefits of their concept Verbund also known as total integration. The Verbund concept has been marketed through every division of BASF the chemical company. There is a Ã¢â¬Å"Purchasing VerbundÃ¢â¬ , Ã¢â¬Å"Safety VerbundÃ¢â¬ , a Ã¢â¬Å"Production VerbundÃ¢â¬ and many more. All of these wide variety of products would make you think that there are a lot of different prices to consider when purchasing from BASF. Because the products they offer are mostly raw materials, the prices of their products change with the economy. When the price of oil goes up, their prices for materials related to that product go up as well. They donÃ¢â¬â¢t base their prices off of any index or manufacturer recommendation. This price fluctuation does not affect the quality of their services as there is really no comparison by price to judge whether or not the product is quality. The price that BASF offers for itÃ¢â¬â¢s products does not affect consumer perceptions of their company. It seems that along with the business of providing chemicals, they also bring along the feeling of connecting with their customer on a higher level. That overrules the price effect on a consumers decision to go with BASF. BASF does not use the concept of off-peak pricing, which consists of charging different prices during different times of the day, week, or month. This usually reflects the varying demands of the services or products offered. BASF would not benefit from this tactic because the only reason their price changes would be due to the economy and their resources. They do not have a peak time or an off-peak time of demands for their products because they are raw materials and chemicals. The chemicals that BASF offers are in need to make finished products by many different companies at all times of the year. Place BASF uses the e-commerce network widely to reach their customers and suppliers. E-commerce is the electronic handling of business transactions with purchases and production. They conduct most of their transactions through the web in which a customer can log into their personal account and purchase their products through what they call WorldAccount. BASF uses the new internet e-commerce world as a way to make communication faster, more effective, and more direct. It allows customers to have service 24/7, get precise product information, have orders processed faster as well as keep current data on all of your orders. BASF found that the e-commerce way of providing products was the best way allowing more detail and service to be provided to the customer. BASF also has a good representation with production and sales facilities in all of the economic regions. They are located in five continents which are Europe (which is their home market), North America, Asia, Africa and South America. They have more than 100 large sites throughout the world which allows them to be closer to their customers in 170 countries and supply them with their products in a reliable manner. BASF has verbund sites located in Germany (Ludwigshafen), Belgium (Antwerp), Freeport Texas, Louisiana, Malaysia (Kuantan), and China (Nanjing). The term verbund is a German word and means Ã¢â¬Å"linkedÃ¢â¬ or Ã¢â¬Å"integratedÃ¢â¬ . These verbund facilities make use of integration production processes which makes it less expensive to manufacture the products. This allows BASF to supply a wide variety of different sectors. BASF also operates important production sites which are located in Germany (Schwarzheide), Spain (Tarragona), Port Arthur, Texas, Mexico (Altamira), Brazil (Guaratingueta), China (Shanghai), Japan, (Yokkaichi) and Korea (Ulsan). The use of these multiple locations makes BASF a company that one can rely on almost anywhere you are located. This allows the company to become inseparable from their customers making it more convenient to do business with them in person, as well as through their online stores. Promotion The main idea about BASFÃ¢â¬â¢s promotional campaign in Europe is to show that certain things would not exist without their chemicals. It aids you in the course of life and without them, certain things would not be attainable for you. Their main slogan is Ã¢â¬Å"Invisible Contribution. Visible Success. They are aiming to show you that BASF is often working behind the scenes to make their invisible contribution that creates a visible success for their customers through using their chemicals to create the end product. Their image campaign in Europe(which is made up of television commercials and print ads) is directed at the opinion leaders. These are members of society who lead others and shape the views of the general public. The campaign has been covered in Germany, France, Great Britian, Italy, Spain, Belgium and the Netherlands through newspapers and lifestyle magazines (such as business, news and science magazines). Their television ads are broadcast during scientific and sport programs, new bulletins, films and television series and is aimed at a wide target audience in Europe. They feature different ads for each type of chemical that they provide which include television ads for the paper industry, the semiconductor industry, water treatment, house construction, sports and leisure, road construction, agricultural products, extreme sports, automotive industry, bridge construction, sun protection, fuel, and plasticizers. They are making sure that they cover each kind of service that they offer by showing this wide variety of television and print ads. BASF uses a discrete way of creating publicity for themselves. When you are on their website for Europe advertising you have the opportunity to download their several different print ad campaigns and use them how you would like. They also offer the option for you to purchase either a postcard or poster of the ad. Publicity is something that is nonpersonal and an indirectly paid presentation of an organization, good or service. In this case, the customer, or fan of BASF, is paying for the poster or postcard, and in turn when sending that postcard or putting up that poster, they are providing no personal advertising that was not directly paid for by BASF. It is a pretty creative way of getting a profit and recognition while allowing their customerÃ¢â¬â¢s to do the advertising for them. In this case, the publicity works for them. When it comes to advertising in America, the rules are a little different than they are in Europe. Their main theme is that they are helping to make products better. Their main focus is to show how their chemicals can make your everyday life better here and around the world by creating remarkable and visible changes in many of the most important industries. Their slogan is Ã¢â¬Å"We dont make a lot of the products you buy. We make a lot of the products you buy better. Ã ®Ã¢â¬ . This slogan, according to BASF, has made them the most recognized of any chemical company in North America. The purpose of the several different TV ads allow you to see that they donÃ¢â¬â¢t make the finished product, they just provide the quality ingredients to make the best products. It also allows you to see that there are countless uses of the BASF materials that allows you to enjoy life. Just as their slogan says, in most of their TV ads they tell you that they donÃ¢â¬â¢t make the product, they just make the product itself better. For example, Ã¢â¬Å"We donÃ¢â¬â¢t make the helmet, We make it tougherÃ¢â¬ is a slogan used in a commercial about their Ultramid polymide nylon that provides hardness and abrasion resistance commonly used in helmets. Along with their TV and print ads, BASF is moving into a more innovational way of advertising to keep up with the demands of advertising and todayÃ¢â¬â¢s technology. They offer through their website Podcasts. These podcasts include an audible innovation magazine of BASF that offers monthly topics on how chemistry and chemicals will design and shape our future. The other podcast available through the BASF website is Ã¢â¬Å"The Chemical ReporterÃ¢â¬ . This podcast is for the curious person that has questions about chemistry in your everyday life. This podcast offers answer in their weekly episodes. You can download this to your iTunes account or as an MP3 file for you MP3 player. Another innovation offered is to receive all news alerts and press releases through a RSS feed free of charge. This allows a customer to receive up-to-date news about BASF in a very quick and comfortable way (at your own computer). The only draw back is that you have to download and RSS-reader, but once you have you can select from several different news topics about BASF available online at their website. IÃ¢â¬â¢m sure these new innovations are there to create a buzz and traffic to their website. Recommendations The success of BASF marketing can be seen in there continual growth globally. To make recommendations would be easier if we were to look at one division of the company. Either due to market conditions or poor market strategy planning not all the divisions of BASF can be doing well at any given time. The American auto industry is in a state of flux with ever present pressures from the global market. Although divisionally BASF will feel these pressures globally their affiliation with non-US auto makers absorb some of this industries variation, this allowing time for the US market to be analyzed and adjustments to be made. Pure recommendations would have to come from some direct market analysis based off of the division of the company. BASF has done a great job in their Verbund concept. Being a supplier, the concept of interlocking processes or systems creates a relationship with the customer that is hard, or sometimes inefficient to break. From this alignment with cusotmers long term relationships are established. BASF could draw better on global technologies. In looking through the BASF corporate web site many of the technologies that are seen are from different countries. Online information on the use of these products in a specific country could not be confirmed or denied as a potential customer it would have been nice to know that they are available domestically. One observation is that BASF although a hidden part of many Ã¢â¬Å"name brandÃ¢â¬ products does not benefit from any of their customers successes. Co-branding could lock in the business through the social pressures felt by dropping BASF as a supplier in favor of an alternative. One flaw of focusing on the Verbund concept to lock in customer loyalty is it makes social pressure less of a final end consumer pressure and more of an industry pressure which in the end may not affect sales. In not hurting sales the decision to drop BASF is less of an issue of end unit sales and more of an internal issue of efficiency. Companies like Dow and DuPont often add their name to products in advertising. One example is LineX. LineX is a truck bed liner that is spray applied. This product uses BASF chemicals yet it is DuPont that benefits from co branding with LineX. LineX advertises on their website the following Ã¢â¬Å"LineX, fortified with DuPont KevlarÃ¢â¬ . This co-branding is getting the name DuPont and their product Kevlar out to the end consumer. Thus if the customer is happy with the bed liner they may be happy with a product like Ã¢â¬Å"Suave shampoo with DuPont thickening agentÃ¢â¬ when it should be Ã¢â¬Å"Suave shampoo with BASF thickening agentÃ¢â¬ . This co-branding would broaden BASFÃ¢â¬â¢s evoked set and lock in customer relationships. BASF should capitalize on their success more publicly. The successes of BASF can only be found through their website. These high points in the story of BASF would help establish the confidence that a purchasing group would have in dealing with a stable successful company like BASF. One last recommendation would be to sponsor more events. Dow and DuPont get much of there brand awareness from the sponsorship of events like racing. BASF does a limited amount of this and mostly on a divisional basis. Sponsoring events would get the BASF name out there making it more of an everyday name than it is today.
Thursday, February 13, 2020
DQ1 Week 1 - Essay Example This essentially means that an ordinary Internet search will miss out on the vast resources hidden within the deep Web. To appreciate the importance of the deep Web one has only to look at Bergman (2001) findings. To begin with, the deep Web is not only 400 to 550 times larger than the surface Web but is also the largest growing category of new information on the Internet. Also, Bergman (2001) argued that the deep WebÃ¢â¬â¢s content quality surpasses that of the surface Web by a factor ranging from 1,000 to 2,000 times. Most of all this content is highly relevant to most information needs. This element of relevance to most information needs implies that both academia and business should find access to the deep WebÃ¢â¬â¢s resources important. The worldÃ¢â¬â¢s biggest search engine, Google was conceived by Sergey Brin and Larry Page when they faced difficulty in finding relevant academic data in the then early Web. Access to relevant, current and quality information is the crux of academia. With conventional search engines accessing only about 16% of the information available on the World Wide Web (LaGuardia Community College 2012) academic researchers risk losing out on a vast resource of information-rich literature content. This is especially true given Lewandowski and Mayr (2006) findings that: firstly, more and more scholarly content are being provided on the Internet and secondly, that researchers are increasingly consulting general-purpose Internet search engines to retrieve these scholarly documents. In addition to this on-going digitization projects are contributing to the continuous growth of the Invisible Web. In light of this, Academia the importance of accessing the deep Web to academia cannot be gainsai d. Researchers have no option but to devise better tools and techniques to enable better and greater access into this information-rich Ã¢â¬Å"portalÃ¢â¬ of knowledge referred to as the deep Web. On the other hand, business