Strategy of Marketing and its impact

Strategy of Marketing and its impact Strategy is a long term actions/plans which are made by some organization to achieve their peculiar targets/goals. (link 1) According to Michael Porter the strategy is all about the mixture of different activities which are differentiated from competitors to pronounce unique mix of value. To him its all about differentiating yourself from customers as well as competitors. (link 2) Without a strategy the organization is like a ship without a rudder, going around in circles Joel Ross Michael Kami (lec-1) Marketing strategy: A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage. (link-3) The set of objectives which an organization allocates to its marketing function in order to support the overall corporate strategy, together with the broad methods to achieve these objectives Chartered institutes of marketing (lec-2) The above two examples show that , marketing strategy is actually the strategy that support overall corporate and which a company has to use efficiently to market its products on best opportunities while converging the limited resources to achieve its goal. Marketing planning: Marketing planning is a logical sequence and a series of activities leading to the setting of marketing objectives and the formulation of plans for achieving them (link-4) Now we can interrelate all the above terms with the help of diagram below. Business Goals Market Strategy Marketing Mix Marketing Plan The above diagram shows that an organization has to set business goals which are actually the target of company or mission statement. The next level comes of marketing strategy which is esteemed rule that company has acquired to market their products. After establishing the market strategy company moves forward towards marketing mix in which it define the whole marketing mix i-e Product, Pricing, Place and Distribution. Afterwards the process of writing of marketing plans comes in which company has to describe the whole market activities which are used to acquire business goals. (link-3) 1.2 Impacts of strategy on marketing planning: Under this heading the strategies of organization will be discussed and the impacts of that strategies on the marketing of organization will be noticed. What effect that strategies will throw on organizations long run and short run will also be discussed. Here we are talking about Fresher marketing plans. As described earlier it is a Pakistani local company that is making 100% pure juices and this is one of the marketing strategy of Fresher that make it distinguishes from others. The company has many competitors in the same line of 100% fresh juices i-e Nestle, Shezan, Minute Maid etc. But the Fresher is successful yet to maintain the no. 1 position in the brands of 100% pure juices. And also Fresher is successful to maintain its positioning against Nestle and other strong brands like Minute Maid. The benefit what Fresher will get due to this strategy is that competitors are not attaching it from all the sides. Only fresh juice companies are interested to attach its strategies. It has no concern with any other product line of competitors. Another strategy of Fresher is that they are using PET BOTTLES instead of juice boxes which made their product easy to use for the customers and the look of their brand product is totally different from others. They are also using SHRINK WRAPS for the packaging of their products. The one more thing that makes their product discriminate is tags hanged with the bottle of juice on which a little description of brand and ingredients are written. These tags make the look of the product more elegant and it again helps to make a strong positioning of the brand. The promotion strategy that Fresher following is WORD OF MOUTH. They are using any other strong promotion strategy which again differentiate the brand from others in market. But as they are not focusing the advertisement strategy now when they that much stabled in market, they can spoil their positioning as well. Fresher has strong distribution strategy which has been helping the brand to be strong so far i-e they used ROLL OUT strategy of distribution. They started the distribution of their product from their own city and then they spread it in other cities with the passage of time when they had grown enough in the market. The strategy has a benefit that other strong competitors like Nestle, Minute Maid etc didnt notice such small brand and didnt take action for that. In the meanwhile Fresher entered in the market and had got a strong market positioning. Fresher had got another benefit of this strategy that is they maintained their resources with it. They started distributing their product in their city only and when they have earned enough money they spread it over other cities of Pakistan as well. 1.3 Component parts of a marketing plan: Parts/Categories with which a marketing plan is made up of are called components of marketing plan. Here the heading will elaborate all of its parts one by one. Executive Summary: It is the first component of the marketing plan which explains the summary of the whole marketing plan for the quick review by the management of the company. Mostly three issues are mentioned in this part. The Challenge Challenge consists of a little elaboration of product for which marketing plan is made and the summary of goals such as sales figures and strategic goals.. Company Analysis Company analysis mostly consists of the answers to following questions What are goals of the company? To what thing it focuses more? What are the strengths of that company? From what culture it belongs? What are weaknesses of the company? And in what market shares it exists? etc. Competitor Analysis In competitors analysis a short report about competitors weaknesses, strengths, market position and market shares is presented. (link-5) Current marketing situation: Its a marketing audit which shows the current market situation of the company by comparing it with the past situation of its own and with the market situation of competitors. It presents data about the market, product, competition and distribution. SWOT analysis: SWOT analysis is basically the analysis in which strength, weaknesses, opportunities and threats related to the product (to be marketed) are given to have a complete look on companys analysis. The firms internal environment presents strength and weaknesses while external provides opportunities and threats. Objective and issues: This heading defines the objectives of company in different areas such as market share, sales, profit etc. Also this category will deal with all the issues and problems that effect these objectives. Marketing strategy: In this category a marketing strategy or approach is recommended to achieve the particular objective. It is the main and important part of marketing strategy structure. The strategies will elaborate the marketing mix (product, price, distribution, promotion) as well. Action programs: In this step a report is given about details of marketing strategy. The report answers such questions like how will all plan start? Who will do it? What will be the cost of all plan? Etc. Budgets: The expected budget for the specific strategy is provided in the report along with the profit and loss statement that forecasts the expected financial outcomes from the plan. Controls: Indicates how the progress of the plan will be monitored. (lec-5) 1.4 Risks and advantages in the devised marketing plan: Risks: Fresher is having a big threat in the market due to its lack of advertisement strategy now when it has gain that much credibility. Other competitors in the market has built strong image through their advertisement promotion strategy. Now it is the time when Fresher might think of making a strong and highly attractive advertisement to throw behind all the competitors. Fresher is not having a properly educated team of employees and it dont have proper departments such as HR department, RD department, Marketing department etc. So the employees working in the competitors firm are more competent and they can make proper decision at proper time. Fresher has to work on it as well. It may form a proper team so that they can compete in the leading market. As Fresher employees are not that educated in their particular field, they have disagreement in the selection of strategies. This is the major risk for the Fresher in the market as it can lead to fall of the company. Advantages: Fresher has specialized workers only in the field of making juices. Their worker knows the formula and they are best trained workers in juice making as they have to make only one product line at one time and they concentrate fully on it while competitors of Fresher have more than one product line so their workers have less command on juice making. The earlier promotion strategy of Fresher (word of mouth strategy) is quite impressive as no competitor can concentrate on upcoming new brand in this way. It gave Fresher to expand rapidly in market. The different packaging of Fresher bottle made them different and they expand undoubtedly in the fresh juice market. The biggest advantage to Fresher was the introduction of 100% fresh juice first in the market which make them differentiate from the competitors and thus they expand rapidly.