Free Essay

Amway Marketing Strategy

In: Business and Management

Submitted By rajhans143
Words 4331
Pages 18
Table of Contents

1. Introduction

2. Brief History of Amway

3. Global Growth

4. Amway Values

5. Marketing Strategies

6. Conclusion

1. Introduction

Amway is an American multinational direct-selling company that uses multi-level marketing to sell a variety of products, primarily in the health, beauty, and home care markets. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and cosmetics.

Amway is an abbreviation for "American Way" and was coined in 1959 by company’s founders, Jay Van Andel and Richard DeVos. Short, unique and easy to remember, Amway has been registered as a corporate name and trademark ever since. Today, Amway is a multibillion-dollar international business representing freedom and opportunity to millions of people in more than 88 countries and territories around the world. Amway generates US $ 10.9 billion (Feb’ 2012) in sales at estimated retail through this global product distribution network. The business is built on the simple integrity of helping people lead better lives. It offers over 3 million Business Owners the inspiration to grow those businesses, and work hard to provide new and better ways for them to achieve their life goals. Amway was ranked No.114 among the largest global retailers by Deloitte in 2006, and No.39, 32 and 28 among the largest private companies in the U.S. by Forbes in 2009, 2010 and 2011 respectively

[pic]

2. Brief History of Amway

Jay Van Andel and Richard DeVos, friends since school days, had been business partners in various endeavors including a hamburger stand, air charter service, and a sailing business. In 1949 they were introduced by Neil Maaskant (Van Andel's second cousin) to the Nutrilite Products Corporation. Nutrilite was a California-based direct sales company founded by Dr. Carl Rehnborg, developer of the first multivitamin marketed in the United States. In August 1949, after a night-long talk, DeVos and Van Andel signed up to become distributors for Nutrilite food supplements. They sold their first box the next day for $19.50, but lost interest for the next two weeks. Shortly thereafter, at the urging of Maaskant, who had become their sponsor, they traveled to Chicago to attend a Nutrilite seminar. The meeting was at a downtown hotel, with over a hundred people in attendance. After seeing promotional filmstrips and listening to talks by company representatives and successful distributors, they decided to pursue the Nutrilite business opportunity with enthusiasm. They sold their second box of supplements on their return trip.

In 1949, DeVos and Van Andel had formed Ja-Ri Corporation (abbreviated from their respective first names) for importing wooden goods from South American countries. After their trip to the Nutrilite seminar, they dropped this business and Ja-Ri became their Nutrilite distributorship. In addition to profits on each product sold, Nutrilite also offered commission on the sales of products by new distributors introduced to the company by existing distributors—a system today known as multi-level marketing or network marketing. By 1958, DeVos and Van Andel had built an organization of over 5,000 distributors. However, following concerns about the stability of Nutrilite, in April 1959 they and some of their top distributors formed The American Way Association to represent the distributors and look for additional products to market.

Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Concentrate). They subsequently formed Amway Sales Corporation to procure and inventory products and to handle the sales and marketing plan, and Amway Services Corporation to handle insurance and other benefits for distributors (Amway being an abbreviation of "American Way"). In 1960 they purchased a 50% share in Atco Manufacturing Company in Detroit, the original manufacturers of LOC, and changed its name to Amway Manufacturing Corporation. In 1964 the Amway Sales Corporation, Amway Services Corporation, and Amway Manufacturing Corporation merged to form a single entity, Amway Corporation. Amway bought control of Nutrilite in 1972 and full ownership in 1994.

Rich and Jay wanted to share their newfound success with others who held their values and vision. They created a unique business model that allowed others to join Amway and participate in the benefits of the expanding business. It became a model for reward and recognition that continues to be developed in Amway markets around the world.

Amway’s Home Care products, including the newly launched SA8® Laundry Detergent, proved to be big sellers. Within a few short years, the company had more than 700 employees, over 200 exclusive products, and more than 100,000 Distributors. Amway's annual sales rapidly expanded, exceeding US $500,000 (estimated retail) for the first time.

The company made its debut in India in 1995 and revolutionized the way things were sold in the Indian market. The big question is what exactly made it more successful than all its peers. Is it its pricing? Is it its marketing? Or is it its product range?

3. Global Growth

If we say that it’s the pricing then astonishingly the pricing has been high enough to make it a major player only in the niche market, something that make other companies were also providing. When it comes to its marketing strategies it was not something very new in India, companies like MODICARE, Oriflame had already been doing the same. In fact, Modicare was just a replica of Amway with just a smaller product range. Talking about the product range, the initial product range was very small covering just 4 sectors that too with a limited number of products in each.

Persuaded by the values, caring, and the potential of their business opportunity, more and more people became part of the Amway family. By the mid '70s, Amway trucks were traveling more than 3.25 million miles (approx 5.23 million kilometers) per year, shipping products to millions of distributors.

The company expanded overseas, opening markets in eight countries on three continents. Amway launched in Australia in 1971, swiftly followed by the UK, Hong Kong, and Malaysia. Amway Japan Limited (AJL), founded in Tokyo in 1979, quickly became one of Amway's largest markets.

Following in their fathers' footsteps, Steve Van Andel and Dick DeVos succeeded Jay and Rich as Chairman and President of Amway, building upon and continuing the successes of their parents. The 1990s saw continued expansion with estimated retail sales volumes reaching US $5 billion.
To increase brand awareness, Amway Japan sponsored the 1995 Nagano Winter Olympic games in Japan. Around the world, Amway's regional and country affiliates continued to support their Distributors with the launch of e-commerce sites that extend the Amway opportunity onto the internet.

Current

Amway remains a thriving, multibillion-dollar international business, improving people’s lives and representing opportunity in more than 80 international markets and territories. Currently, their global family includes more than 3 million Amway Distributors.
Their vision is to help people live better lives. Theirs is a unique global community of caring and cooperation, and they take great pride in the principles, people, and products that enable them to play a positive role in so many people’s lives around the world.

4. Amway Values

Co-founders Jay Van Andel and Rich DeVos outlined the ethical and operational standards that continue to guide both the company and its Distributors in all their activities. Those founding principles are literally carved in stone outside the World Headquarters: Freedom, Family, Hope, and Reward.

Amway will always support the fundamental FREEDOM of people to determine their own future, allowing them the time and resources to protect and nurture their FAMILY. In addition, Amway will always offer HOPE to individuals and the opportunity to receive REWARD in proportion to their efforts.

5. Marketing Strategies

This was one company that relied heavily on non-advertising. It believed on the word of mouth publicity.

Quality

One thing that Amway made very clear about its products was that the high price the customer paid for its products was for the quality he received. Even for a mere toothpaste, for which Colgate was the brand identifier, Amway sold Glister at Rs. 99 and claimed that the quantity to be consumed for every usage was far less than those of others and people realized that this actually was the scenario.

The star mark shows where Amway had projected itself.

TARGETING • Targeted at premium class • Undifferentiated approach- selected markets where there is limited segment differentiation • Typical consumer from target market is: • A professional woman • Personality conscious • Makes buying decision based on clinical evidence • Wants professional, salon quality products

POSITIONING • ‘ To those who have little time to sleep, busy lifestyle resulting in dark circles, wrinkles – artistry give you a more toned, moisturized, smooth skin day by day….’ • Point Of Difference – price, min usage, direct selling • Point Of Parity - product • Uses functional positioning strategy emphasizing on product features, price, quality and use.
The reason behind Amway’s success was its strict following the four P’s

Marketing the business is about how to position it to satisfy the market’s needs. There are four critical elements in marketing the products and business. They are the four P’s of marketing.

[pic]

1. Product. Satisfy the need of target customer by right products.

2. Price. The right product offered at the right price.

3. Place. Make products available at right price at right place.

4. Promotion. Inform potential customer about the product’s availability and price.

Each of the four P’s is a variable that can be control in creating the marketing mix that will attract customers to your business.

Product

“Product” refers to the goods and services that a company offers to the customers. Amway offers its customers a wide range of products under four major categories namely nutrition and wellness, beauty and artistry, personal care and home care. They provide the customers variety in these major categories ensuring quality that each product should cater the needs of the respective user. The products thus provided by them are designed in such a fashion that they serve the desired features. The product’s appearance, function, and support make up what the customer is actually buying. Over 450 unique, high-quality products carry the Amway name in the areas of nutrition, wellness, beauty and home, as well as commercial products and a variety of services. In addition, Amway independent business owners in selected markets sell additional brand-name goods through local merchandise catalogues, plus a variety of services and educational products. All products are backed by a customer satisfaction guarantee.

Price

“Price” refers to how much the company charges you for the product or service. The Amway pricing approach reflects the appropriate positioning of their products in the market and this result in a price that covers their cost per item and it surely includes a profit margin. The target audience or the customers of Amway are the premium or the affluent class people since the products are listed at higher prices. Amway believes in the notion that more the price the better quality is what will be served. So if their products are charged in higher ranges they assure the customers of the benefits the product is going to provide.

Thus the selection of the pricing strategy is based on the product, customer demand, the competitive environment, and the other products that the company offers.

• Cost-plus: Adds a standard percentage of profit above the cost of producing a product. Accurately assessing fixed and variable costs is an important part of the pricing method.

• Value-based: Based on the buyer’s perception of value (rather than on company’s costs). The buyer’s perception depends on all aspects of the product, including non-price factors such as quality, healthfulness, and prestige.

• Competitive: Based on prices charged by competing firms for competing products. This pricing structure is relatively simple to follow because you maintain your price relative to your competitors’ prices. In some cases, you can directly observe your competitors’ prices and respond to any price changes. In other cases, customers will select vendors based on bids submitted simultaneously. In those cases, gathering information will be more difficult.

• Going-rate: A price charged that is the common or going-rate in the marketplace. Going-rate pricing is common in markets where most firms have little or no control over the market price.

• Skimming: Involves the introduction of a product at a high price for affluent consumers. Later, the price is decreased as the market becomes saturated.

• Discount: Based on a reduction in the advertised price. A coupon is an example of a discounted price.

• Loss-leader: Based on selling at a price lower than the cost of production to attract customers to the store to buy other products.

• Psychological: Based on a price that looks better, for example, $4.99 per pound instead of $5.00 per pound.

Target – premium class – comes in expensive category

Emphasizes on “better the quality, more the price”
Price endings with ‘9’ – 1099, 2099 etc
Place
“Place” refers to the distribution channels used to get the product to your customers. What your product is will greatly influence how you distribute it. At Amway, for promoting the products the company follows the push strategy with direct selling of the product. The marketers and the channel members push the consumers to buy the product. In other words the consumers are convinced to such an extent that they are made to accept what the company offers them and they willingly buy to suit their needs. And this activity takes place in the form of direct selling where there is one to one interaction between the Amway marketer and the consumer. An advantage of direct sales would be the contact you gain by meeting customers face to face. With this contact you can easily detect market changes that occur and adapt to them. You also have complete control over your product range, how it is sold. Amway sells its products using direct distributors – Amway business owners or ABO. ABO can own and operate one distributorship only – it does not sell through retail stores, exhibitions etc. ABO’s then build a team under them who further sell and promote products through personal relationships and direct selling – also called MLM or Network marketing. Thus Implying Amway is 100% direct marketing company. Amway has a sound distribution channel.

Push strategy – direct selling – personal selling • Sells its products using direct distributors – ABO – Amway Business Owners • ABO can own and operate one distributorship only -does not sell through retail stores, exhibitions etc. • ABO’s then build a team under them who further sell and promote products through personal relationships and direct selling – also called MLM or Network marketing • Implying Amway is 100% direct marketing company • Advertising – earlier they didn’t advertised but now they advertise in magazine Like India Today etc. ads started coming up on television – emphasizing on consumer need and quality Communication • Customer brochure to build product awareness • Solution guide for proper use • Demonstration kit to help create a professional image
Amway is governed from the main office at US and commercial service offices in New Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, and Ahmedabad and New Delhi various branches like at Okhla, Greater kailash etc. to be easily accessible to distributor, consumer and communicate better.

Promotion

“Promotion” refers to the advertising part of marketing. It is how you let people know what you’ve got for sale. The purpose of promotion is to get people to understand what your product is, what they can use it for, and why they should want it. You want the customers who are looking for a product to know that your product satisfies their needs. To be effective, your promotional efforts should contain a clear message targeted to a specific audience reached via an appropriate channel. Your target audience will be the people who use or influence the purchase of your product. Promotion may involve advertising, public relations, personal selling, and sales promotions. A key channel is advertising. Advertising methods to promote your product or service include the following.

• Radio: Radio advertisements are relatively inexpensive ways to inform potential local customers about your business. Mid-to-late week is generally the best time to run your radio ads.

• Television: Television allows access to regional or national audiences, but may be more expensive than other options.

• Print: Direct mail and printed materials, including newspapers, consumer and trade magazines, flyers, and a logo, allow you to explain what, when, where, and why people should buy from you. You can send letters, fact sheets, contests, coupons, and brochures directly to new or old customers on local, regional, or national levels.

• Electronic: Company Web sites provide useful information to interested consumers and clients.

At Amway the promotion process takes through advertisements which can now be seen in magazines, television commercials, radio clips and as ads on Google. Also there is effective communication through Customer brochure to build product awareness, Solutions to guide for proper use and proper self explanatory Demonstration kits to help create a professional image.

Amway v/s many more

After an in-depth analysis of the functioning and target market of Amway and the product line we find that the company doesn’t have one main competitor. As it’s a niche market player the market doesn’t have much competition there but when it comes to its product line then HUL comes as a major competitor. In spite of the quality offered by Amway for high prices it’s comparatively a very new name in the Indian market and has a long way to go to establish its worth in the mind of the highly middle class dominated Indian society.

Strategic analysis

The process of strategic analysis helps an organization to understand more about its strategic position and to construct answers to questions such as:

1. What is happening to our business environment?

2. What do we need to know about our markets and customers?

3. What new options should we consider?

4. How can we develop our competences to meet all of the changes in the business environment?

By asking these questions to self, a business looks to match its own objectives for growth and development with the reality of the business environment. Businesses need to be realistic. They must base decisions not upon wishful thinking or blind optimism but upon close and careful analysis of products and markets. Amway was founded in the USA in 1959. Today it is a global business that, along with its parent and sister companies, directly employs 10,000 people worldwide. The business also operates strategically at a Global, European and National level. Amway (UK) began operations in 1973 and has its own distribution and Product Selection Centers. Amway makes good use of market research. This has helped Amway to anticipate developments within markets and to introduce new ideas that exploit opportunities and reduce any associated problems to a minimum.

Competition analysis is a key factor within market research. It helps Amway to identify the nature and extent of competition at a number of levels. For example, it helps marketers within Amway to find out how well products are meeting consumer needs and what aspects of competitors’ brands appeal to consumers.

Amway has helped millions of people around the world to start their own independent business, through which they engage in person-to-person marketing. This type of direct selling involves matching a consumer’s needs with the goods and services on offer.

Better the match, more lasting the relationship between the seller and the buyer.

Direct selling, therefore, is a boundary role; it is at the boundary of a supplying organization that is also in close and direct contact with customers. Feedback from IBOs about products and services, as well as feedback from an IBOs own Clients, is an important contributor to marketing analysis.

Within Amway, regular internal meetings provide an opportunity for the company to discuss and evaluate its performance. Gap analysis helps this planning process by comparing forecast performance with achieved figures. The ‘gap’ is the difference between the two, as the diagram below illustrates. Of course, this ‘gap’ may be either positive or negative. Whilst it is vital to seek to establish the reasons for ‘worse than expected performance’, it is also instructive for a company to analyze why its performance has been better than expected, as there could be lessons to learn from that too.

Market penetration

Going for market penetration has involved Amway in making the most of current products and competences by ‘stretching’ them to improve Amway’s competitive position within existing markets. One great benefit of direct selling is that it is an immediate channel to the marketplace that offers customers a good service, while at the same time providing business opportunities for individuals.

Special incentives enable IBOs and end consumers to take advantage of particular offers at certain times of the year and these incentives have also helped to increase market penetration. There are also special events such as Leadership Training Seminars. These enable IBOs to spend time with others involved in the business and to learn about ‘best practice’ from each other, whilst also sharing ideas.

Product development

Product development is a particularly appropriate strategy where an organization is strong in research and development. Product development is highly important for products that have comparatively short life-cycles. Within Amway there are approximately 500 active research and development projects in progress at any one time. With around 575 staff involved in research processes, and with strong links to many universities, Amway formulates designs and develops new products to meet customer needs and expectations within the global marketplace.

For example, based on a Euro monitor study of 1998 estimated global retail sales data, "Artistry is among the world’s top five largest selling prestige brands of facial skin care and color cosmetics. Others in this distinguished group include Clinique, Lancôme, Estee Lauder and Sofina". Amway currently holds more than 380 patents internationally and has approximately 430 patents pending. Within its product development, Amway’s technical teams use the company’s customer base to monitor and test new product ideas.

Market development

Market development involves taking existing products into completely new markets. One method used by Amway involves expanding the ways in which individuals can be involved with the Amway business. Amway has developed a structure known as the IMC model.

This increases the number of ways through which people can become involved in the Amway business. Each of the letters IMC stands for a different type of involvement.

1. I - Independent Business Owners (IBOs)

2. M - Members

3. C - Clients (customers) of the IBOs.

Members are allowed to purchase Amway products at a price equivalent to that paid by IBOs, but do not participate in the Amway Sales and Marketing Plan. They are a new type of "customer", who deal directly with Amway.

Conclusion

In today’s highly competitive environment, an organization has to develop a business strategy that provides a strategic fit between its resources and the changing business environment. This case study illustrates how Amway has continued to develop by using a range of strategies based upon product/market matrix. These strategies have enabled Amway to build its business by continuing to broaden its customer base and enhance the service it offers to Independent Business Owners, Members and Clients.

Amway covers mainly 4 product categories:

-Nutrition

-Cosmetics

-Personal care

-Home care

Nutrition:-

The nutrition products are sold under the brand name of Nutrilite, Positrim and XL energy food. Nutrilite is the supplementary food range, Positrim is for the Carb conscious people and XL is the range of energy foods.

Cosmetics

Till the advent of Amway into the beauty market of India, cosmetics by “ Shenaz Hussain” were considered for the niche market and were sought after for their quality, though they were not the ones that people used for personal use, these were mainly used for commercial purpose and the personal beautification “ Lakmé” were most sought after. Amway made the difference; its product line was targeted at women who due to their hectic life did not have ample time to pamper themselves. Even housewives who were always so busy with the household chores did not mind fishing out an extra penny for some beauty. Moreover the low effective price per usage was also lucrative for people who thought rationally.

[pic]Amway comes with complete range of cosmetic products under the banner of Artistry. Initially this product line was very limited to a few number of anti-wrinkle and age defying solutions only. But now covers nail enamels and all sorts of attitude cosmetics.

Personal care

The personal care market till now was dominated by big players like “Colgate-Palmolive”, “Hindustan Lever Limited” and “Proctor & Gamble” to name a few. Making it big here was a major challenge for Amway, but Amway relied on its mouth to mouth publicity strategy and gained some of the market, though still the personal care market is dominated by its rivals in the Indian market.

Personal care products by amway come under the brand names of Glister, Persona, Satinique, G&H and Dynamite.

Glister is for oral care, Persona G&H and Satinique is the range of body care products like body lotions and shampoos. And Dynamite is the range of men’s grooming products. [pic]

Home care

The home care line includes products like SA8, LOC, Persue and many more, its ranges from detergents to disinfectants.

[pic]

[pic]

Amway’s commitment to health and nutrition led the company to pioneer water treatment systems, with very successful results. Clean water is a major challenge for many in the world, and this concern played a large role in Amway’s research and development. Amway's water treatment product line – eSpring® – continues to hold a top position in the global marketplace today.
Estimated annual retail sales exceeded $1 billion for the first time. Amway expanded its U.S. headquarters in Ada, Michigan, and built a new cosmetics plant where ARTISTRY® products were developed and manufactured.…...

Similar Documents

Premium Essay

Marketing Strategies

...Marketing Strategy: introduction and overview Strategic Windows: their nature. The nature and purpose of strategy and how it is formulated. The nature of marketing strategy and how this should take account of the interests of various stakeholders when involving such things as, product/service development and delivery, promotional mix, support services, manufacturing and production processes, R&D, and material purchasing affect the stakeholders. Other factors in the business environment that influence marketing strategy: political, economic, socio-cultural and technological (PEST). Marketing and competitors: how a firm must be able to position itself competitively in the minds of its customers so that its products and services stand out very favourably in important respects in relationship to competitors. Matching the firm’s products / services with opportunities and threats in the market place. The limited periods during which the fit between the key requirements of a market and the particular competencies of a firm competing in that market are at an optimum. Investment in a product line or a market area should be timed to coincide with periods during which a strategic window is open. Correspondingly, withdrawal should be considered where something which was a good fit, is no longer a good fit. Ways in which a market can evolve and how firms might develop a competitive strategy to take advantage of Strategic Windows. Portfolio Analysis How......

Words: 3135 - Pages: 13

Premium Essay

Marketing Strategy

...Marketing Strategy Marketing Strategy trategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy trategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing Strategy Marketing......

Words: 5919 - Pages: 24

Premium Essay

Marketing Strategy

...Marketing Strategy Chaunte Rhone MKT/421 March 23, 2011 Instructor Rebecca Robbins   Marketing is a process that encompasses every aspect of an organization’s ability to provide products or services to customers, suppliers, and communities. An organization’s marketing mix is crucial to producing successful results that will increase consumer patronage, sales, and profits. The four elements of the marketing mix, which includes product, place, price, and promotions affects the development of an organization’s marketing strategy and tactics. How an organization implements the elements of the marketing mix is dependent on the objectives of the marketing strategy. In a recent article the writer explains the reasoning for the revision for the American Marketing Association’s definition of marketing by writing, “Marketing is the activity, conducted by organizations and individuals, that operates through a set of institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value for customers, clients, marketers, and society at large” (Gundlach G, 2009, p. 260). Elements of the Marketing Mix Product Products are important to the marketing mix and whether an organization supplies products or services they must satisfy customer needs to be successful. Products can come in different shapes, sizes, with different features, and for different usages. Whatever the product or service an organization provides for a target market......

Words: 1605 - Pages: 7

Premium Essay

Marketing Strategy

...MARKETING MANAGEMENT TOPIC 1 1. What is marketing? American Marketing Association: “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”. Value: perceived tangible and intangible benefits and costs to customers Marketing is the art and science of choosing target markets and getting, keeping, growing customers through creating, delivering and communicating superior customer value. Target market: markets being aimed at Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of values with others Need: basic human requirements: food, air, water, clothing and shelter to survive. Strong need: recreation, education, entertainment. Wants: Needs directed to specific objects that might satisfy the need Demand: Needs backed by an ability to pay COMPANY ORIENTATION * Production concept * Product concept * Selling concept * Marketing concept * Holistic marketing concept + Internal marketing + Socially responsible marketing + Relationship marketing + Integrated marketing Marketing mix PRODUCT | PRICE | PLACE | PROMOTION | ProductVariety Quality DesignFeaturesBrand namePackagingServices | PriceList priceDiscountsAllowancesPayment periodsCredit terms |......

Words: 1974 - Pages: 8

Premium Essay

Marketing Strategy

...The technological environment 3.5 Changes in marketing infrastructure and practices 3.6 New strategies for changing macroenvironments 3.7 The Five Forces model of industry competition 3.8 The product life cycle 3.9 Strategic groups 3.10 Industry evolution and forecasting 3.11 Environmental stability 3.12 SPACE analysis 3.13 The Advantage Matrix Summary Case study: Food group shifts strategy to volume growth PART1 MARKETING STRATEGY CHAPTER 1 MARKET-LED STRATEGIC MANAGEMENT Puma gives the boot to cardboard shoeboxes . 4 Introduction 5 1.1 The marketing concept and market orientation 6 1.2 The resource-based view of marketing 12 14 1.3 Organisational stakeholders 1.4 Marketing fundamentals 19 1.5 The role of marketing in leading strategic management 23 Summary 25 Case study: Consumer trust sees John Lewis set retail pace 25 54 54 55 56 57 59 62 64 65 68 71 74 77 79 81 83 84 85 CHAPTER 2 STRATEGIC MARKETING PLANNING Asos founder turns to online homeware Introduction 2.1 Defining the business purpose or mission 2.2 The marketing strategy process 2.3 Establishing the core strategy 2.4 Creation of the competitive positioning 2.5 Implementation Summary Case study: iPhone 27 27 28 29 32 33 42 45 49 49 CHAPTER 4 C U S T O M E R ANALYSIS Audi to relaunch A2 city model with 'apps' for bespoke features Introduction 87 87 88 viii CONTENTS 4.1 What we need to know about customers 4.2 Marketing research 4.3 The marketing research process 4.4 Organising customer......

Words: 1496 - Pages: 6

Premium Essay

Marketing Strategy

...will we implement our marketing spending plans? When will marketing spending plans occur? How much sales, spending, and profits will we achieve? Sales and Marketing Plans This section of the marketing plan outlines each marketing event or action planned to increase sales. The plan will generally cover a calendar year, broken down by month or by quarter. For example, it may contain a summary of quarterly promotion and advertising plans, with spending, timing, and share/shipment goals for each program. Sales and marketing plans should be a logical outgrowth of short- and long-term company objectives and your marketing strategy. In the business plan, the sales and marketing plans provide an outline of each marketing event for the year, covering the following information: description of each event vehicle (for example, media, promotion, trade, sales) timing of each event event goals and objectives (for example, volume, share gains) cost of each event Marketing Strategy Every business owner should develop a written guideline that sets forth the business's marketing strategy. This document is used to judge the appropriateness of each action that the business takes. If a company has to take an action that is off-strategy, it may indicate a temporary emergency action prompted by competition or other factors beyond normal management control. Or it may indicate the need to change or revise the company's marketing strategy. A good marketing strategy provides specific......

Words: 633 - Pages: 3

Premium Essay

Marketing Strategy

...Product/Service 5 Marketing Strategy 6 Conclusion 7 References 8 Introduction This report is mainly focusing on studies of marketing strategy. By analyzing and discussing the case of Zara, we will be able to have a more in depth analysis of companies and their marketing strategies. In the background section, basic knowledge of marketing strategy will be introduced. In the discussion section, an analysis of Zara’s existing product and service will be listed and an S.W.O.T. analysis is done to figure out the company’s current situation and position in the marketplace. In the recommendation section, a new product/service will be recommended to augment Zara’s brand. Also a marketing strategy will be suggested to improve Zara’s business. Background Firstly, some commonly used terms and their definitions will be introduced in this report in order to provide some basic knowledge and understandings of the principles and studies about marketing strategy planning. SWOT Analysis: This is a strategic planning method which used to evaluate the strength, weakness, opportunities and threats of an organization involved in a certain business. (Friend, Graham. 2009) Competitive Analysis: This is an analysis of the organization’s strength and weakness against its competitors. Competitive Advantage: This is an organization’s advantages over its competitors gained by offering the customers greater value. Marketing Mixes (4Ps):......

Words: 2215 - Pages: 9

Premium Essay

Marketing Strategies

...practices. Your business may be just beginning this process, while others, already benefiting from incorporating initial, easy-to-apply strategies and procedures, are now prepared to implement the next level to achieve further gains. Modern businesses know how important it is to consider environmental performance as part of their planning and operational procedures. Adopting eco-efficient business practices will not only benefit the environment, but will also improve business operational efficiency and reduce costs. This guide outlines practical measures that can be used to improve eco-efficiency in your fast food business. The first step in improving the eco-efficiency of your business is to establish a baseline for your current practices. This usually involves conducting an eco-efficiency audit. Follow the suggested steps to eco-efficiency for guidance on eco-efficiency improvement. As part of your planning process, you should check your energy and water use, as well as a number of other specific areas shown below. A range of actions to improve efficiency are suggested, including easy, low-cost strategies as well as those that require some investment. Fast food outlets operate air-conditioners, lights, dishwashers and cooking equipment, all of which are energy hungry. Heating water for cleaning also consumes a lot of energy. Implementing strategies that reduce energy consumption, for example, running energy efficient air-conditioners at the most energy efficient settings......

Words: 10273 - Pages: 42

Premium Essay

Amway

...AMWAY About the Company Amway India, a wholly owned subsidiary of Amway Corporation, was established in August 1995 after approval by India's Foreign Investment Promotion Board (FIPB). Amway India commenced commercial operations on May 5, 1998 [1] and is now the largest Direct Selling FMCG Company. The Company is headquartered at the National Capital Region of India - New Delhi. Amway India has 400 full time employees and has generated indirect employment for 1,650 persons at all the contract manufacturer locations. Marketing Mix of Amway Product: Amway India offers about 105 products. Their product line is divided into categories, which is personal, nutrition, home and cosmetics. All their products are manufactured in India. Place: Amway promotes itself as a 100 percent direct marketing company eliminating the channels of distribution as well as retailers. Unlike other FMCG products, their products are not available in any of the retail stores. Amway uses the concept of multi level marketing to sell their products. They appoint independent owners from whom the products can be purchased. They further create a chain of networks to sell their products. Amway in recent times has also started their own website where most of their products can be online without being a member. Price: Amway spicing is such that it’s targeted both to the middle class as well as upper class. Normally their products are perceived be expensive but they do have a certain......

Words: 1646 - Pages: 7

Premium Essay

Marketing Strategy

...Sustainable Export Marketing Strategy Fit and Performance Athina Zeriti, Matthew J. Robson, Stavroula Spyropoulou, and Constantinos N. Leonidou ABSTRACT Despite the growing global importance o f sustainability issues, scant research has examined marketing strategy sustain­ ability issues in international settings. Although significant prior work has examined drivers and performance conse­ quences o f adaptation/standardization o f marketing strategies in international markets, researchers have yet to apply this avenue o f inquiry to sustainable marketing strategies. Building on contingency theory and the concept o f strategic fit, the authors develop a model o f drivers o f sustainable export marketing strategy adaptation and explore the circum­ stances under which such a strategy affects export performance. Using a sample o f U.K. exporters, they find that vari­ ous macro- and microenvironmental factors are responsible for sustainable export marketing strategy adaptation, which shapes the nature o f sustainable export marketing strategy fit and its export venture performance outcomes. The results indicate that sustainable export marketing strategy adaptation is the outcome o f the differences between home and export markets in terms o f economic and technological conditions, competitive intensity, customer characteristics, and stakeholder pressures. Moreover, the performance relevance o f sustainable export marketing strategy adaptation requires adequate fit......

Words: 15078 - Pages: 61

Premium Essay

Marketing Strategy

...Strategic Marketing. A literature review on definitions, concepts and boundaries Jorge Mongay Autonomous University of Barcelona, SBS Swiss Business School 2006 Online at http://mpra.ub.uni-muenchen.de/41840/ MPRA Paper No. 41840, posted 9. October 2012 20:07 UTC WORKING PAPER. JM-A1-2006 STRATEGIC MARKETING: A LITERATURE REVIEW ON DEFINITIONS, CONCEPTS AND BOUNDARIES. Dr. Jorge Mongay Autonomous University of Barcelona (UAB) & SBS Swiss Business School 1 WORKING PAPER. JM-A1-2006 Summary 1. Definitions of strategic marketing 2. Aspects of Strategic Marketing 3. Factors in Strategic Marketing 4. Elements of Marketing Strategy 5. Intersections with others disciplines 5.1. Intersection between Strategic Marketing and Marketing Tactics 5.2. Intersection between Strategic Marketing and Corporate Strategy 5.3. How does it Strategic Marketing fit into Corporate Strategy? 6. Final conclusions of the paper 7. References 2 WORKING PAPER. JM-A1-2006 1. STRATEGIC MARKETING AND ITS DEFINITIONS Although most authors speak about some parts of Strategic Marketing, here is included a list of definitions of the term. Some authors appear in different years ( for example, Jain), It is understand that they have added new comments or redefined the term after the years. The table and the definitions have been ordered by year of publication. Author Year Definition Drucker 1973 “ Strategic marketing as......

Words: 11185 - Pages: 45

Premium Essay

Marketing Strategy

... Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o. Page 8 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o. Masaryk University Faculty of Economics and Administration Marketing plan Master thesis Student: Advisor: 401140 Mladenović Dušan PhD Alena Klapalová Brno, 2013 Page 9 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o. Page 10 of 117 Faculty of Economics and Administration | Masaryk University Marketing plan | Yugomar d.o.o. Masaryk University Faculty of Economics and Administration Department of Corporate Economy Academic year 2012/2013 ASSIGNMENT OF DIPLOMA THESIS For: Mladenović Dušan Field: Business Management Title: Marketing plan Principles of t h e s i s w r i t i n g: Objective of the thesis: The main objectives of the thesis are to analyse present market situation of the chosen company concerning its marketing management problem, to analyse the market and to develop marketing plan according the results of analyses. Approach and methods used: 1. Literature search on all relevant topics (marketing strategy, marketing plan, market analyses etc.), 2. current situation and market analyses, 3. proposals of marketing plan. Methods: All relevant methods of market and marketing analysis and market research, e.g. SWOT analysis,......

Words: 31857 - Pages: 128

Free Essay

Marketing Strategy

...kristal dan foto di Hall of Fame. Mistine’s Key Competitors Kosmetik produk nomor satu yang dijual melalui saluran penjualan langsung di Thailand. Pasar penjualan langsung total sekitar $ 1000000000 (AS) per tahun dan tumbuh pada tingkat 10 sampai 15 persen per tahun. Dari jumlah itu, kosmetik rekening pasar untuk sekitar 60 persen dari semua produk yang dijual melalui penjualan langsung saluran. Dalam hal pangsa pasar penjualan langsung, perusahaan atas empat kosmetik adalah Mistine, Avon, Giffarine, dan Amway. Prospek untuk pertumbuhan lanjutan dalam industri sangat baik: Hanya 24 persen penduduk Thailand telah membeli produk melalui saluran penjualan langsung. Harga, kualitas, dan paket menarik adalah tiga kriteria yang paling penting untuk Thai konsumen ketika membeli kosmetik. Avon Didirikan pada tahun 1978, AVON Kosmetik (Thailand) Co, Ltd, adalah cabang 22 AVON Produk Inc, USA. Ini adalah perusahaan pertama di Thailand pada saat itu untuk menggunakan Single-level marketing pendekatan penjualan langsung untuk konsumen Thailand. Dengan motto-Perusahaan perusahaan Wanita-Avon menargetkan remaja dan wanita bekerja. Avon kosmetik yang benar-benar produk berkualitas tinggi yang merek diakui di seluruh dunia. Dengan demikian, tidak sulit untuk Avon Thailand untuk menjual produk dan mendapatkan kepercayaan dari konsumen. Layanan pelanggan ditawarkan melalui distributor disebut Avon Anggota. Perusahaan ini memiliki tim perwakilan dari kantor pusat di Bangkok yang pergi keluar......

Words: 1065 - Pages: 5

Premium Essay

Marketing Strategy

...Marketing Strategy For Products Web Solutions Robert H. Farrington Dr. Matula July 24, 2011 Marketing Strategy For Products Discuss the type of product will offer and identify its primary characteristics. Web Solutions is a creative solutions company, specializing in unique web site design. We want companies to benefit from the use of present technology, but have the readiness to adapt to the technology and programing of the future. We will seek to understand each client’s business needs and industry well enough to be able to build a productive and interactive web site that will draw the attention of our client’s market and its customers. Market Strategy For Products Discuss the product branding strategy. Our sales force will accomplish three goals –One, give Web Solutions a local presence in major cities with local sales people and local offices: two, increase brand awareness through word of mouth advertising and three; increase profitability through direct sales. Marketing Strategy For Products Discuss how the product fits within a product line and the depth and breadth of the line. Unlike Proctor and Gamble who have a number of products and an array of products within each line, we at Web Solutions offer Web Hosting, Web design, technical support along with Web Hosting as well. We at Web Solutions have an assortment of a full line of description of services and our pricing structure can be viewed at our website...

Words: 357 - Pages: 2

Premium Essay

Marketing Strategy

...Marketing Strategy for Products Tiffany Major - Cooper Marketing Management / MKT 500 Dr. Shirley McLaughlin October 30, 2011 Choices My business Choices will be a Not for Profit, based upon educating women and children in abusive relationships. It would include helping them find resources to remove them from their environment, getting into support groups, other therapeutic techniques and starting educational classes if needed. Choices would need to determine which marketing objectives were needed if it wanted to start. It would also need to determine where it would be in the next year or longer, how Choices would get there, and how it will in point of fact know if it met its goals or not. I believe marketing objectives are very important for Choices, since the company is a not for profit company funding is a major key component that plays a big part in Choices functions. Without the proper funding Major Choice will not exist. Marketing will be important because Choices would be life changing for women and children and would need to take certain steps to make the women and children happy and healthy. Laura Lake in Eight Steps to Marketing Your Nonprofit Organization states “Marketing is an unfamiliar concept for many nonprofit organizations. It's important that these organizations understand that marketing is more than just the old sense of making a sale or obtaining a donation. Marketing is a way to satisfying the consumer and donor needs.” (Lake,......

Words: 1247 - Pages: 5