Proposal for Development of Market Share of Reduction of Cost
The primary motive and objective of the proposal are to deliver the ideas of the marketing and production strategies of the XYZ Company. The organization has planned to establish new marketing and operation techniques within the organization for decreasing the overhead cost. The proposal will deliver the new marketing and production techniques and strategies by assessing the market segmentation level, channels of distribution and logistics, supply chain management. This has been done with the help of marketing research tools, which the organisation has used at the time of manufacturing of the products, quality management ideas, quality improvement ideas and the project management ideas about the basic operations of the organisation. The evaluation of the market and production strategies has been one of the most important perspectives of the proposal.
The XYZ will conduct a market segmentation process with a motive to serve large number of customer groups and thereby the increase overall market share. The market segments of the firm been mentioned below:
- Geographic Segmentation: The market sphere of the organisation has been limited to the United Kingdom, and the central business setup will be established in London and Cardiff.
- Demographic Segmentation: The demographic segmentation defines over the information on the age, gender, occupation of the customers and by the demographics; the XYZ Company will produce goods for the verified consumers (Lin, 2014). The organization will target the consumers who are between 25-45 years of age and their income is between $2600 to $4100 per month.
- Behavioural Segmentation: The behavioural segmentation of the market will identify the degree of readiness of the buyers to buy products and services and also their degree of loyalty to the company. The degree of buyer’s readiness and the loyalty has been much higher and they do not shift from one organization to another as they are much trustworthy.
- Psychographic Segmentation: The lifestyle and the values of the consumers are also being taken into account, and the organisation will optimise for the market segmentation with the help of personality patterns and the social classes of the consumers of the external market. The lifestyle of the buyers is above middle level and they have a huge interest in buying the products of the XYZ Company.
Figure 1: Market Segmentation
(Source: Ptak & Schragenheim, 2016)
The distribution channels of the organisation have been one of the essential elements that engage in the manufacturing procedure of the products. It will be available for consumption in the external market phenomenon (Baker & Saren, 2016).
The management section has analysed the distribution channel by
- Analysing the needs of the customer
- Explaining channel motives
- Identifying channel alternatives
- Evaluating channel alternatives
Figure 2: Distribution Channel Design
(Source: Hugos, 2018)
Figure 3: Level of Distribution Channel
(Source: Fredendall & Hill, 2016)
In the level of distribution channel, the organization will focus on the 2-Level, where the final goods and services are transferred from the manufacturer to the consumer with the help of wholesaler and retailer. After manufacturing the final products, the marketing members of the XYZ Company will connect with the wholesales of the external market phenomenon. The wholesalers considered to be one of the most important elements of the channel as they receive goods from the organization for giving it to the retailers at a very low cost and they sell it to the retailers in a relevant profit margin. The wholesalers work as the middle man in the 2-Level and without them the distribution of the goods and services would be impossible.
Furthermore, retailers or the retail shops receive the products from the wholesalers below the maximum retail price and they sell to the consumers in that price, which is printed on the packaging. The retailers are the final distributors and they directly interact with the consumers and they receive the grievances from the consumers before they send those feedbacks to the organization. The retailers also give huge discounts to the consumers, when there remains an excessive stock of the same product and to clear out that stock of goods, they issue discounts (Arkadan, Macdonald & Wilson, 2017).
In the logistics management, the XYZ Company will evolve in the logistics management which encircles with four elements that have been described below
- Warehousing: A warehouse is a separate place, where the organisation stores their manufactured products and the XYZ Company will decide that the new warehouse will be located close to the manufacturing site for reducing the transportation and overhead cost.
- Inventory Control: The XYZ Company will optimise for the Just-In-Time techniques for controlling the inventory, and this will save the cost of the operations, and thus the producers will also carry a small inventory which will result in saving the handling and inventory carrying costs (Baker, 2016).
- Transportation: The XYZ Company will use the rail, water, air, truck and pipeline transportation mode. It will focus on direct marketing and thrive to reduce the cost of transportation by prospecting the potential clients effectively.
- Order Processing: The XYZ Company will also establish order processing techniques through phone, computer and with the help of salesperson and thus giving information to the warehouse head for packing and shipping the items in the exact location as well as billing the items correctly without no single fault (Martín-de Castro, 2015).
Figure 4: Logistics Management
(Source: Heding, Knudtzen & Bjerre, 2015)
The Supply Chain Management has been one of the most critical elements for the organisation that manages the flow of goods such as raw materials, finished goods and the process inventory from the suppliers to the organization. This are the elements which the organisation will use at the time of manufacturing of the products, quality management ideas, quality improvement ideas and the project management ideas about the basic operations (Dinnie, 2015).
The XYZ organisation will impute the Supply Chain Management for certain advantages that have been discussed below
- Elevating the customer service
- Reducing the cost of operation
- Enhancing Financial position
- Ensuring the position of the human healthcare
- Protecting cultural development and freedom
Figure 5: Supply Chain Management
(Source: Christopher, 2016)
The Supply Chain Management will help the organisation in processing out the flow of the manufactured goods and services from supplier to producer and then from the producer to the hands of the customer. The XYZ Company will also look after the speed of the service, the Efficiency of the system and the cost efficiency with the help of the Supply Chain Management.
Several market research tools have been used by the XYZ Company which are being discussed below
- Google Keywords Tool: It will be used by the organisation for maintaining consumer behaviour at the online marketing segments (Yu, Ramanathan & Nath, 2014).
- Survey: The XYZ Company will regulate an extensive survey program for measuring the attitudes of the buyers and thus evaluating the strength of the alternative products in the market. This is one primary research tool, which will be carried out by the organization.
- Interview: This is one of the primary research tools. This tool will be used for questioning potential customers if they are satisfied with the products and services of the organization or not (Hingley, Lindgreen & Grant, 2017).
Conclusion
The formal proposal will deliver the new marketing and production techniques and strategies by assessing the market segmentation level, channels of distribution and logistics, supply chain management. This has been done with the help of marketing research tools, which the organisation has used at the time of manufacturing of the products, quality management ideas, quality improvement ideas and the project management ideas about the basic operations of the organisation.
References
Arkadan, F., Macdonald, E. K., & Wilson, H. N. (2017). Customer Experience Management Practices: A Systematic Literature Review. In Creating Marketing Magic and Innovative Future Marketing Trends (pp. 1361-1361). Springer, Cham.
Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Dinnie, K. (2015). Nation branding: Concepts, issues, practice. Routledge.
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.
Heding, T., Knudtzen, C. F., & Bjerre, M. (2015). Brand management: Research, theory and practice. Routledge.
Hingley, M. K., Lindgreen, A., & Grant, D. B. (2017). Accepted for publication in 2015 by Industrial Marketing Management Special issue on: Power in business, customer, and market relationships.
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Lin, H. F. (2014). Understanding the determinants of electronic supply chain management system adoption: Using the technology–organization–environment framework. Technological Forecasting and Social Change, 86, 80-92.
Martín-de Castro, G. (2015). Knowledge management and innovation in knowledge-based and high-tech industrial markets: The role of openness and absorptive capacity. Industrial Marketing Management, 47, 143-146.
Ptak, C. A., & Schragenheim, E. (2016). ERP: tools, techniques, and applications for integrating the supply chain. Crc Press.
Yu, W., Ramanathan, R., & Nath, P. (2014). The impacts of marketing and operations capabilities on financial performance in the UK retail sector: A resource-based perspective. Industrial Marketing Management, 43(1), 25-31.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
