1.1) The Role of Strategic Marketing in an Organization
Marketing
“Marketing is defined as the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society in large”. The marketing plan is the central key for managing and cooperating the marketing effort. There are two types of marketing levels: strategic and tactical (Kotler & Keller, 2012). “Strategy is the direction and scope of an organization over the longer term, which matches its resources to its changing environment, and in particular, to its markets, customers and clients to meet stakeholder expectations” (Armstrong, 2008). Therefore, the strategic marketing plan formulates the target markets and the value proposition of the products based on the analysis of customers’ needs and market opportunities. Whereas, the tactical marketing plan outlines marketing tactics such as product features, promotion, pricing, service, etc. (Kotler & Keller, 2012)
Roles and Importance of Strategic Marketing
The marketing plan is defined as “A written statement of the marketing aims of a company, including a statement of the products, targets for sales, market shares and profits, promotional and advertising strategies, pricing policies, distribution channels, etc. with precise specification of timescales, individual responsibilities, etc. (South West Arts Marketing, 2002)”
Strategic marketing plan helps the organization to identify the direction of the business. It aids in establishing tangible solid goals that are specific in cost, time periods, profit and targeted customer (Asadi Business Consulting, 2014).
The strategic marketing process involves gathering information about the market systematically and then integrating those data into an analysis that assists in projecting long-term marketing goals. After performing analysis, the marketing strategy has been developed, implemented and evaluated to helps the organization to attain its cooperate goals and objectives. The detailed strategic marketing process will be mentioned later in the report. The strategic marketing plan should be for long-term but flexible for any changes as data and facts are always changing with time (Asadi Business Consulting, 2014).
Strategic marketing plan produces a detailed framework, which acts as a guideline for understanding of targeted customers and markets, the organization’s budgeting and allocation of the resources (Asadi Business Consulting, 2014). It also helps in recognizing of strengths of an organization that assists the organization to differentiate itself from the competitors. It is very important in attaining the organization’s goals by allocating and using its limited resources effectively. It gives guidelines that help the organization to increase its sales and competitiveness. It also helps in identifying marketing opportunities
The strategic marketing acts as a reference in creating products and services, which will result a profit. The process of strategic marketing involves marketplace research, taking the targeted customers and the competition of the organization into consideration. By applying this information, the organization develops the products the customers need and/or want that are reasonable in price and different from the competition. It also helps in determining a place the product should be sold to maximize the marketing effectiveness (Ashe-Edmunds, 2017).
1.2) The Processes involved in strategic marketing
The strategic marketing is a planning process that develops right direction for future and allows the organization to control its limited resources on the greatest opportunities to raise sales and attain a sustainable competitive advantage. The processes of strategic marketing involve four steps; 1) situational analysis and gathering information, 2) strategy formulation, 3) strategy implementation, and 4) evaluation and control.
Figure 1: Four elements of strategic management (Hunger & Wheelen, 2006)
1) Situational analysis
“The environmental scanning is the observing, evaluating and disseminating of information from the external and internal environments” (Huiru, 2011). There are two main types for environmental analysis; 1) internal and 2) external environment analysis. SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis, which is an internal environment analysis, outlines the advantages, shortcomings, productivity, impressiveness and economy of the organization and it is important in establishing a proper marketing strategy. Whereas, PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis helps to determine the external environmental situation and its consequences on a company. It is essential in developing future plans and objectives of a company. The importance of identifying SWOT and PESTLE analysis will be mentioned later in the report (Kotler & Keller, 2012).
2) Strategy formulation
“Strategy formulation is the developed phase of long-term plans for the effective management of environment opportunities and threats on the principle of companies’ strengths and weaknesses” (Huiru, 2011). It includes defining objectives of the marketing department that are aligned with the organization’s mission, vision, goals and objectives. Those objectives should be SMART (Specific, Measurable, Achievable, Realistic and Time bound). A company has to identify its STP process (Segmentation, Targeting and Positioning) before developing marketing strategy. Segmentation is categorizing the data into sub-groups geographically, demographically, psycho-graphically and behaviorally. Targeting is defining which particular customers the organization wants to target its products and/or services on. Positioning is focusing on which position the products and/or the services at in the market (Kotler & Keller, 2012). Another process in strategy formulation is developing marketing mix of the products or services. Marketing mix is very important in attracting and dealing with targeted customers. There are altogether 7 tools (4 tools for product and 7 tools for service) in marketing mix. They are 1) Product, 2) Price, 3) Place, 4) Promotion, 5) People, 6) Process and 7) Physical environment (latter three tools are for service) (Kotler & Keller, 2012).
3) Strategy implementation
After developing strategy, it is taken into action through establishing programs, procedures and funds. Closed monitoring is necessary to ascertain the plan goes accordingly.
4) Evaluation and control
This phase is to evaluate the effect of the plan. The process and result are monitored to compare the actual performance with desired performance. The strategy is revised and correct accordingly if there is any error during the process or any improvement that should be done (Huiru, 2011).
Company Profile
EverSeiko Co., Ltd is first set up in Tokyo Japan and started trading internationally for scientific instrument in 1994. In 1996, EverSeiko has entered Myanmar and was found by U Aung Shein and Daw Aye Aye Thwal. EverSeiko Myanmar started off by trading Denyo (Japanese generator) and expanded its business to beauty care and furniture sectors years by years. Nowadays, there are a lot of business units under EverSeiko Myanmar, which are mentioned in the figure below.
Figure 1: The business units of EverSeiko Myanmar
Vision
“High quality products will contribute quality infrastructure, safety life and upgraded society”
Mission
“Responsibilities and after-sales services to achieve customers’ reliance”
Core Value
“Quick supports and solutions for the products are values of us”
Motto
E xcellent Products
V ictory for everyone
E xpertise in each product
R eality for our teams’ dream
S uccess for every brand
E ducate customers with state-of-the-art quality and technology
I nnovative trends and ideas
K nowledge of world-wide brand
O utstanding effectiveness
Corporate Objectives
• To optimize our financial performance to 1.5 million dollars in 2020.
• To gain 85% customer satisfaction by providing high quality products and services in 2017.
• To develop long-term customer relationship by providing after-sale services in 2018.
• To increase the market share of each individual brand to 20% at the end of 2018.
1.3) Links between corporate strategy and strategic marketing plan
Corporate strategy relates to how the organization creates value for itself across different businesses. It is a systematic process of describing decisions a company should make to attain its goals and establishing policies and strategies (marketing, sale, HR, etc.) to achieve them.
Marketing Strategy is the goal of expanding sales and enhancing the competitive advantage of the organization in a sustainable manner. It uses marketing mix (4Ps for products and 7Ps for services) to establish future plans. Mentioned 4Ps or 7Ps marketing mix consists of product, place, price, promotion, people, physical evidence and process.
In most of the large companies, they have four organizational levels: 1) corporate, 2) division, 3) business unit, and 4) product. The corporate level is in charge of developing a corporate strategic plan to manage the whole enterprise; it makes decisions on allocation of the resources to each division and on starting or terminating the businesses. Then each division develops a plan including assignment of funds and resources to each business unit. Each business unit again establishes a strategic plan to carry it into a profitable future. Lastly each product level (brand) obtains marketing plan for attaining its objectives. An organization is made up of many departments and functional units such as marketing, human resources, finance, etc. In order to achieve the goals of an organization (corporate strategy), all the departments have to work cooperatively. Therefore, the departmental strategies and goals should be aligned with the corporate strategy.
EverSeiko Myanmar is a conglomerate company, which has two main branches (Living and Beauty) mentioned above. In this project, “Life” skincare marketing strategy has been focused.
BCG Matrix of EverSeiko
In Star quadrant, both relative market share and market growth rate are high. Fashion goods, furniture and health & Beauty cosmetic named Schwarzkopf, etc. are the everyday-essential used products, which are being sold on daily basis. Therefore, the market growth rate is high. And the brands like Kanebo and Schwarzkopf already have high market share in Myanmar. As Myanmar is a developing country, there are a lot of construction sites starting up, which is a good opportunity for EverSeiko to increase its construction material market. In Cow quadrant, the relative market share is high however market growth rate is low. Yamaha and Denyo brands are already well-known brands in Myanmar and gotten high market share but those machineries are only bought as necessary. In Dog quadrant, both relative market share and market growth rate are low. The lands are only developed according to Government’s policies, which are still unstable currently. In Question quadrant, the relative market share is low but market growth rate is high. “Life” Skincare imported by EverSeiko is brand new everyday-used product, which can be used by both males and females from different ages. As it has been distributed by the same company that distributes Kanebo, it is easier to develop brand image in short period of time. Nowadays, the standard of living in Myanmar has increased and people are more educated, they are more aware of and give attention to their health and beauty. Therefore, it is a great timing for EverSeiko to develop the marketing strategies for “Life” skincare in order to increase the market share. Within this Life skincare, we focus on “Rose Bloom Essence” as it is 1) a unique product from other competitors, which uses “Bulgarian Rose Bloom Extract”, 2) a 3-in-1 product (includes lotion, milk solution and smoothing essence), which can be used alone and 3) a product that can be used by both females and males.
Segmentation
Geographic
• Yangon
• Mandalay
• Naypyitaw
• Taunggyi
These four cities are the most populated cities in Myanmar. Yangon and Mandalay are the commercial cities whereas Naypyitaw is the capital city of Myanmar, where most of the government cases take place. As for Taunggyi, it’s considered to be one of the most popular attraction places in Myanmar and the weather is cold even in summer. Thus, natives of Taunggyi and tourists need to use skincare products to keep their skin moist.
Demographic
• Fifteen year and above,
• Any gender but especially females
• Stable income (100,000 kyat – more)
For demographic, the company considers the appropriate age to use the product is 15 years and above. Since the products are not pricy but they are not cheap, the company aims to sell the product to the people with Stable income.
Psychographic
• Office staffs
• Busy peoples
The company focuses to the office staffs and people who does not have time for taking care of their skin since the product itself is 4 in 1, which customers do not need to apply and buy 2 or 3 products to get a good skin.
Behavioral
In society, everyone wants to get good skin, smart & confidence. People trust the right skin cares helps to be healthy skin, look the best young. Good opportunities, people want to use fewer and gentler chemical products.
Targeting
This is second step in finding customer groups who will use the product most. These customer groups will help to build up the brand image and supplier-customer relationship. As stated above Ever Seiko will target the rose bloom essence to young adults, adults and any gender but especially females who are more interested in beauty than males. Thus the company is planned to use differentiated targeting strategy.
Positioning
This step is implementing targeting stage. This step creates brand image, which marketing places in the targeted group of customers.
Value Proposition
Normally the other essences rarely use natural extract in the formulation. However, our rose bloom essence uses “Bulgarian Rose Bloom Extract” that makes the product unique or different from other essences in the market.
2.1) The value of models used in strategic marketing planning
When it comes to strategic marketing, there are different types of model to use for situational purposes such as Porter's Five Forces model, SWOT analysis, PESTLE Analysis for the situational and environment analysis. When it comes to positioning there are BCG matrix, Ansoff Matrix and Product life cycle model.
SWOT Analysis
According to business ball.com “SWOT analysis came from the research conducted at Stanford Research Institute from 1960-1970. The background to SWOT stemmed from the need to find out why corporate planning failed. The research was funded by the fortune 500 companies to find out what could be done about this failure.” (Chapman, 2017)
SWOT Analysis represents a very simplified view, which is used only as a base for formulation the objectives, strategies and their implementation. It provides a separate understanding of the internal strengths and weaknesses and external opportunities and threats of business organization, but it does not show us how external and internal factors are interconnected and what to do about them. Therefore, SWOT analysis cannot provide a proper framework for strategic analysis based on scenarios. It offers only a standard framework for further discussion. (Chapman, 2017)
Advantages
• Simple and yet powerful framework
• Aids in strategic planning
• Can be accomplished with minimum cost and time
• Promotes discussion
Disadvantages
• Results generated were not accurate if not done in a group setting.
• Improper data leads to improper decision making.
• Scope for participant’s bias
• Takes into consideration the existing data which may become obsolete quickly
Once SWOT analysis is complete it is essential to identify areas which needs to be addressed immediately, areas that can be handled now, what needs more research and areas that can be addressed in the future. SWOT analysis can be used in conjunction with other tools like PEST Analysis.
PEST analysis
PEST analysis is a scan on of the external macro environment in which an organization exists. It is a useful tool for understanding the political, economic, social culture and technological environment that an organization operates in. It can be used for evaluating market growth and decline, and as such the position, potential and direction for a business. (Chapman, 2017)
Limitation of PEST analysis
The external factors which affect the organization are usually dynamic and the change occurs at a very fast speed. It is a matter of concern that how these changes will affect the future or present concerns of the company. So, the PEST analysis should be conducted regularly to make it effective.
Ansoff’s Matrix
Market penetration is a strategy where the business focuses on selling existing products into existing markets. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
Market development is a strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy such as new geographical market, new product packaging, new distribution channels and different pricing policies to attract different customers.
Product development is a growth strategy where a business aims to introduce new products into existing markets. This strategy requires the development of new knowledge and the need for the company to develop modified, which may appeal to the markets are.
Diversification is the tactic where the business markets new products in new markets. This is a more risky strategy because the business is moving in markets where it has little or no experience. In order for a business to take a different strategy, therefore, it must have a clear idea about what they expect to get from strategy and risk integrity assessment.
2.2) The links between strategic positioning and marketing tactics
Product
Rose Bloom essence is a skincare, which is specifically formulated for the smoothness and softness of the skin. It has the effect of brightening, whitening, anti-aging to protect against the dried and sun burned skin. It is made up of ingredients such as Bulgariran Roses Extract, Dipropylene Glycol, Arbutin, Ascorbyl Glucoside, Sodium Citrate, Citric Acid, PRG-6-Decyltetradeceth-30, Phenoxyethanol and Methylparaben. The main ingredient of this essence is Bulgariran Roses Extract, which gives freshness effect on the skin. With the combination of Bulgariran Roses extract and Alguronic acid, the skin will have softness, smoothness, and bright, whitening and anti-aging effects, which will renew the skin. Rose bloom essence uses combination of latest technology and formula to get the best result for all skin type and give high quality satisfaction to customers.
Price
Ever Seiko offers the high quality essence with fixed and reasonable price at 28000 kyats.
Place
One level distribution channel
There are Sakura Counters in Junction Square, Junction Maw Tin, Taw Win Center and Myanmar Plaza in Yangon. In Mandalay, there are Sakura Counters in Diamond Plaza and Mingalar Mandalay. And it is available at all the cosmetic shops thorough out the country distributed only by Ever Seiko Co. Ltd.
Promotion
Ever Seiko promotes its product through various resources such as company website, Facebook page, Style and beauty magazines, billboards, FM radios and TV advertisement. There will be seasonal promotions such as March sale, June sale (mid year sale), September sale and December sale (end year sale). For the end year and mid year sales, the promotion is buy 2 get 1 free. For the rest of the promotions, it is up to 20% off. For Sakura Counter opening such as introducing Life products, there was exchange for the Rose Bloom essence if the customer brought their used up essence of any other brands for the first 50 customers. Special promotion for couples in valentine season, there will be 30% off for any items. For Thingyan promotion, the promotion of the essence is up to 30%. At the annual event, all products promote up to 50%. For internal management level, the promotion is up to 40% for all items.
People
Fully trained, active, professional and customer oriented employee at every section
The following exhibit showing the link between strategic positioning and marketing tactics (Marketing Mix)
2.3) Relationship Marketing
From 1990s, the relationship marketing became interest of every organization. The main purpose of relationship is to build long-term relationships between organization and customers. The relationship marketing is not only focus on the customers but also the distributers and suppliers. So the relationship marketing plays an important role in long-term success of the organization, which will help the organization succeed the objectives of the strategic marketing.
Relationship marketing focuses more on the customer loyalty through premium products and services, rather than a one-time sale. There are three stages in the marketing field, first, second and third. First stage marketing, attraction, is about the transitional marketing. The relationship marketing focuses more on the second and third stage marketing, which are satisfaction and relation (social). To succeed the relationship marketing, the organization has to have good marketing strategies. As stated above, relationship marketing is long-term relationship with the customer, which focused on the satisfaction, retention and value of them. The relationship is build between the organization and customer by the trust and confidence of the product and service from the organization. In the simplest form, the relationship marketing is focused more on keeping the existing customers than finding new ones.
There are benefits for both customers and firm from the relationship marketing. There are 3 main benefits for the customers,
• Confidence benefits
Trust
Confidence in provider
Reduced anxiety
• Social benefits
Familiarity
Social support
Personal relationships
• Special treatment benefits
Special deals
Price breaks
For the confidence benefits, the customers will have trust in the essence since it was formulated and made in Japan. The distributor, Ever Seiko Co. Ltd. is also famous in cosmetic field since it is a sole distributor for the famous brand such as Kanebo, S and etc. Thus customers will have confidence in the distributor and reduced anxiety on the product. As for social benefits, since female use more cosmetic and more familiar than male, more female employee are hired at the company. The company trained the employee to familiar with the loyal customers and the product they always buy to have higher personal relationship between customer and companye. There are special treatments for the loyal customers such as special deals as mansion above in the promotion. The followings are the benefits for the firm from the relationship marketing.
• Economic benefits
Increased revenue
Reduced marketing and administrative costs
Regular revenue stream
• Customer behavior benefits
Consistent customer experience
Customer feedback
Customer profitability
Customer advocates
Innovation
As for the organization, there are economic and customer behavior benefits. Due to the relationship marketing, the business has the increased in revenue, which will help the long-term success of the business, and the business has regular revenue stream as well. As stated in the above figure about the relationship marketing, the third stage marketing, regular, promoter and partner, customers promote about the product behalf of the organization. Consequently, the organization has less marketing and administration costs. As for the organization, there are economic and customer behavior benefits. Due to the relationship marketing, the business has the increased in revenue, which will help the long-term success of the business, and the business has regular revenue stream as well. As stated in the above figure about the relationship marketing, the third stage marketing, regular, promoter and partner, customers promote about the product behalf of the organization. Consequently, the organization has less marketing and administration costs. As for the customer behavior benefits, the customers’ needs and wants are taken into account and arranged within a short period of time, which results in high customer satisfaction. Organization is very desire to receive both positive and negative feedbacks from the customer to improve its products and services. Additionally, the organization also longs the comments and ideas from customers. The organization highly prioritizes and takes the ideas, comments, positive and negative feedbacks of the customers into account when a new product and service is going to be developed. Organization offers special services and promotions to the customers, so that the customers are royal to the same products for longer duration. By attaining customer satisfaction by giving the best services and products, the royal customers will do word-of-mouth advertising to other new customers (Joseph, 2012).
3.1) Appropriate marketing techniques to ascertain growth opportunities in a market
Marketing strategy is a process that the company makes it possible to focus on are limited to generating the greatest potential for profit and gaining a sustainable competitive advantage for marketing efforts. There are some tools that can be used emphasizes marketing strategy such as Ansoff Matrix, Porter's generic strategy.
Ansoff’s Matrix
Ansoff’s Matrix is also known as the market possibilities matrix and is aimed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. (Anon., 1999-2010) It is represented diagrammatically as follows:
Figure: Ansoff’s Matrix
First, Ever Seiko Company might consider whether the company can achieve deeper market penetration- making more sales to current customers without changing the product. The safest option for our organization is to target existing markets with existing products, while the riskiest option is to develop new products and introduce them into new markets. Given the current economic climate, Ever Seiko Company would do well to play safe and focus on its existing products, introducing them into new markets, whether those markets are domestic or foreign. Developing new products to introduce into existing markets is also another relatively safe choice.
Porter’s Five Forces Models
Understanding the dynamics of competition in a sector is very critical or difficult for several reasons. For these reasons, Porter’s Five Forces model is to understand very beneficial. The five forces model used to count or measure potential opportunities for a firm commitment, especially important if you enter the industry as a new player. It also helps to distinguish the business from other company offering similar products and services. Porter's five forces really give an idea of potential profitability levels, risks and opportunities in the industry. Our organization may use the model to develop to gain a strategic advantage over another company in the competitive environment industry. (E.Porter, 1988)
Porter's Five Forces Model include five forces are as below,
• Threat of new entrants
• Bargaining power of suppliers
• Bargaining power of buyers
• Threat of substitute products
• Rivalry among existing competitors.
Figure: Poter’s 5 Forces – Elements of Industry Structure
Threat of New Entrants:
Low
• The threat of new international beauty retailers is low because it requires high capital investment in inventory, efficient distribution network, reputable brand image, and relationships with a great number of brands.
Threats from supplier: Low
• The suppliers of Ever Seiko Company do not possess substantial bargaining power because Ever Seiko Company features beauty products from more than four brands (e.g.: Kanebo, Kracie, Pupa, Schwarzkopf) and its own private label.
Threats from buyer: Medium
• There are many different buyers in this industry and no single buyer can demand price concessions.
• It provides differentiated products with a diverse customer base, which is the relatively low volume purchases, which erodes the buyer power.
Threat of Substitutes:
Low
• There is a lack of substitutes to beauty products. Consumers could produce some kinds of homemade products at home, but the variety of products they can make at home will be limited.
Intensity of Competitive Rivalry: Medium
• Consumers have all the costs of switching to other competitors that high intensity in competition cases.
• But it is important to note that Life (Rose Bloom essence) maintain a competitive advantage because it differs from its products with the products and services that cause a moderate level of intensity of the premium competition.
The industry is mature and growth rate has been moderately low which cause the intensity of competition among the companies to be moderately high due to all of them seeking to increase market shaper from established firms like Life (Rose Bloom essence).
3.2) Marketing Strategy options in a market
Marketing strategy is very important part in business organization. This part plays very important role in brand image success of an organization. The market has to be examined and the information that received from the customers has to be used in the determination and options of the approaches. Primarily the company has to analyze and segment the market with segmentation, targeting, positioning and value preposition before planning for marketing mix. There are lots of options in these STPV but the company will consider the most important and relevant options for STPV in consideration of planning marketing mix. The content below will demonstrate all the options for STPV and the options that the company chooses for marketing mix.
Segmentation
Geographic
• Yangon
• Mandalay
• Naypyitaw
• Taunggyi
These four cities are the most populated cities in Myanmar. Yangon and Mandalay can be considered as the economic hubs of lower and upper Myanmar. Naypyitaw is the capital city where everyone has to go there for government cases. As for Taunggyi, it’s considered to be one of the most popular visiting places in Myanmar and the weather is cooling even in summer. Thus people from there and travellers need to use skin care products to keep their skin moist.
Demographic
• Fifteen year and above,
• Any gender but especially females
• Stable income (100,000 kyat – more)
For demographic, the company consider the appropriate age to use the product is 15 years and above. Since the products are not pricy but they are not cheap, the company aims to sell the product to the people with Stable income.
Psychographic
• Office staffs
• Busy peoples
The company focuses to the office staffs and people who does not have time for taking care of their skin since the product itself is 4 in 1, which customers do not need to apply and buy 2 or 3 products to get a good skin.
Behavioral
In society, everyone wants to get good skin, smart & confidence. People trust the right skin cares helps to be healthy skin, look the best young. Good opportunities, people want to use fewer and gentler chemical products.
Targeting
This is second step in finding customer groups who will use the product most. These customer groups will help to build up the brand image and supplier-customer relationship. As stated above Ever Seiko will target the rose bloom essence to young adults, adults and any gender but especially females who are more interested in beauty than males. Thus the company is planned to use differentiated targeting strategy.
Positioning
This step is implementing targeting stage. This step creates brand image, which marketing places in the targeted group of customers.
Michael Porter’s Generic Strategy
Figure of Michael Porter’s Generic Theory
There are three factors in Michael Porter’s generic theory. They are
(1) The Cost Leadership strategy
(2) Differentiation Strategy
(3) Focus Strategy
The cost leadership strategy is where the company can offer quality products at lower price to the customers than the competitors. This is also called low cost strategy. The use of this strategy is gain advantage of the competitors by lowering the cost of operation.
Differentiation Strategy is an approach where organization aims to grow and promote unique products or services for different customer segments. On the other hand, the organization has strong competitive advantages and can practice exclusive advertising campaigns.
The niche or focus strategy emphasizes more on a high price and quality products or services, which focus to a particular minority market segment. The products that used niche strategy marketing will be easily distinguished from other products in the market.
Ever Seiko will use low cost strategy and differentiation strategy as the company’s marketing strategy. As low cost strategy means that the company is selling quality products with low cost in the market. From the positioning section above explains that Rose Bloom essence has high quality and low price. It is selling at 28000 kyats for 50ml. Differentiation strategy means that a product or service, which company offers, has to be unique or different from other products or services in the market. Rose Bloom essence is formulated and produced from Bulgarian Rose Extract, which is very rare to find in the market. Normally the other essences rarely use extract in the formulation and production. Bulgarian Rose Extract is one thing that makes the product unique or different from other essence in the market. Ever Seiko will not practice focus or niche strategy because when market, it is only focused on particular segment with narrow market scope.
Ansoff Matrix Theory
Figure of Ansoff Matrix
Ansoff product-market matrix identifies the growth opportunities of the product. It helps considering the implications of growing the business through existing or new products and in existing or new markets. These growth opportunities draw from the internal and external analysis, influences and investigations. There are four alternative growth strategies based on market and product. These are
(1) Market penetration: by urging existing products in their current market segments.
(2) Market development: by developing new markets for the existing products,
(3) Product development: by developing new products for the existing markets, and
(4) Diversification: by developing new products for new markets.
Among these four marketing strategies, the marketing strategy for our organization is “Marketing penetration strategy”.
To get more market share within the existing industry, whether by producing upgrade product and service to the customers or exploring new demand in the market is called market penetration. Our Paradigm Myanmar penetrates the market with trying to give the best result among the competitors. Paradigm Myanmar also use the promotion and other special strategies like buy 11 packs of “Begesic” pain relieving cream, give back 1 pack as present, special member package for pharmacy and retailers.
Market penetration focuses on retaining or increasing the product’s market share. It will increase existing customer usage with dominating growth market while driving out the competitors. The following figure shows the positioning with the market share of Rose bloom essence with other brands.
Above figure proof that rose bloom should concentrate on market penetrating target to other competitors like Tony Moly and Nature Republic. In the future, Ever Seiko has planned to have special promotion activities such as giving discounts to the loyal customers. Ever Seiko plans to penetrate the market by creating different activities and advertisements on Rose Bloom essence. This will help the brand to build up strong brand image as well. Rose Bloom of Life brand give the special promotion and other special discount like buy one get one or up to 30 % off or travel kit set give back, loyal member get chance 50%off for skin care set. At the annual dinner of Ever Seiko, there was exchange for the Rose Bloom essence if the customer brought used up essence bottle of any other brands. It’s for the first 50 customers. (Business, 2017)
3.3) Strategic marketing objectives for a market
Marketing Objectives
• To gain 85% customer satisfaction by providing high quality products at the end of 2017.
• To get 70% customer awareness for “Life” Skincare brand at the end of 2017.
• To spend 1000 Lakhs Kyats in advertising through different channels (social media, TV advertisement, etc.) for both urban and sub-urban area throughout the year of 2017 to increase brand awareness.
• To be able to increase its market share to 15% at the end of 2017.
• To profit 1 billion kyats in revenue by the end of 2018 financial year.
4.1) Impact of changes in the external environment on a marketing strategy
The changes in the external environment such as political, economic, social, environmental, technological and legal aspects can impact on a marketing strategy.
Political
As Myanmar faced a big change in politic in 2010 and transformed into democratic leadership. Since the change, the government introduced new foreign investment law and encouraged the foreign investors to invest in Myanmar. Therefore it has a strong impact on the marketing strategy due to more foreign competitors in the market. The new government also plans to endorse the competitions between businesses. This can also impact on Paradigm’s marketing strategy.
Economic
According to the Union Tax Law 2016, both individuals and corporate need to pay tax if their income is above MMK4.8m during the fiscal year 2016/2017 (Yaushide & Thomas, 2016). As a result, not only all the corporations will not getaway from the threat of tax but also the buying power of the customers will be lower, which can effect the marketing strategies of Ever Seiko. At the borderline of Myanmar vs. China and Thailand, there are free flow of goods and products without the approval of custom. These goods and products are illegal and nontaxed and those are distributed throughout the country with cheaper price comparing to the goods and products that companies legally imported. This may also affect negatively on the marketing strategy of Ever Seiko.
Social
Nowadays, most of the people have changing life style and taste in beauty. Thus they put more effort in buying cosmetics, which boost up the demand of skin care day by day. Moreover, in term of digitalization, Myanmar has rapid growing Internet usage especially within young adults. Advertising and online shopping through internet is a biggest trend in Myanmar. Additionally, urbanization occurs in recent years with more people living in the urban areas than rural or suburban areas. Since the Ever Seiko Company is located in Yangon, the highest populated city in Myanmar, the company can get more market share compared to the competitors from other cities. Although Korean trend is very popular in South East Asia region, people of Myanmar trust more in Japanese cosmetic than that of Korean. Those entire facts mansion above in Social will leave positive impact to the marketing strategy of Ever Seiko Company. Moreover, most of the companies are doing corporate social responsibility as an essential part of marketing strategy. Our company should also perform corporate social responsibility for the sustainability of business as it builds a good reputation for the Company. It also has influence on the marketing strategies of Company.
Technology
Due to the high competition between local and foreign telecommunication companies, most people nowadays are not only able to possess a mobile but also able to access to internet. Thus the advertisements of all products and real comments about them are easily found on the internet. This makes the marketing strategy of Ever Seiko Company a lot easier and the company as well needs to catch up with the developing technology day by day, which can build up high customer relation and loyalty. Today’s technology in Japan is leading in the world, thus the production and formulation of the skin care is advanced. Due to the higher technology, the ordering, restocking, communicating between foreign and local company have been easier and faster.
Legal
Nowadays, FDA is restricted to approve the skin care, some of which are formulated with harmful ingredients for the skin. Without the approval from FDA, distribution of the product is strictly restricted. Moreover, there is a law, which banned of importation, distribution and sale of unregistered skin care for the health and beauty companies. These can effect strongly on the marketing strategy of Ever Seiko Company. According to the Labor Laws from the new government, every organization has to give appropriate and high salaries, leave, working hours, overtime for the employees (Bohusch, 2016). This will have strong impact on the marketing strategy of Ever Seiko Company. Additionally, Custom law in Myanmar is unstable. Thus the delivery of the imported goods has been delayed. Furthermore, the new government is going to introduced new laws such as customer protection law and competition law, which will have high impact on the marketing strategy of Ever Seiko Company.
Environmental
Nowadays, customers expect the organizations to have care for the green environment and social responsibility. Customer favors the organizations, which give attentions to the environment. The significance of performing Corporate Social Responsibility (CSR) is one of the major factors of environmental and social awareness. Ever Seiko Company has been spending budgets on the green environment and social responsibilities about a decade, which will effect positively on the marketing strategy of the company. At the present time, traffic congestion is the major problem in Yangon, which will results the delay in delivery of the product. Nowadays, every country in the world is facing global warming with gradually hotter weather with higher UV index, which can damage the skin and in worst case, can even cause skin cancer.
4.2) Internal analysis to identify current strengths and weaknesses in a marketing strategy
To be able to improve the marketing strategy, internal analysis of marketing strategy is performed to analyze the strength and weakness of its.
There are several strengths of Ever Seiko’s marketing strategies. Most importantly, Ever Seiko’s marketing strategy focuses mainly on the brand recognition, which will lead the company to long-term success in the future. No only that Ever Seiko imports only famous and well-known brands. Thus customers trust in the company and its products. With strong brand recognition, Ever Seiko can use that as one of important marketing strategies. The Ever Seiko Corporation is doing very well in terms of financial, which will make strong capital for all the marketing strategies. Moreover the Corporation has strong connections with other big corporations and TV celebrities that result easily, fluently and smoothly in practicing the marketing strategy. What has make Ever Seiko’s marketing strategy strong is that Ever Seiko has very strong and supportive marketing team with an experienced and talented professional marketing team leader. The whole team acts as one to support and reach the goals and demands of the team leader, and follows accordingly to the leader. Furthermore, the main office is located close to the main distribution hub to the whole country, that’s one of the advantages in success of Ever Seiko’s marketing strategy. As stated above in marketing mix, the company has frequent promotions to penetrate the brand into the market. The company put advertisements in famous and popular health and beauty magazines frequently. That is how the brand awareness is very strong and the brand image last longer in the market. If there is a promotion, the marketing team update on social media details about what, how, where and when products are promoting. Although Ever Seiko’s marketing strategy has some strong points, it also has some weakness. Currently, the company is using autocratic leadership style in management, which results in slowing the marketing operation process, less employees’ involvement and demotivated skillful employees. Without the boss awareness, the employees will not attend to the customer complaints. Although each department is strong and has great teamwork, they are unsupportive with other departments. These are the major factors, which affect the marketing strategy of the company significantly.
4.3) Strategic marketing responses to key emerging themes in a marketing strategy
Globalization
As the world becomes internalized in between all the countries, there will be free flow or easier exchange of goods and products. Thus there will be more competitors in the market. Additionally, at end of 2015 there was formation of ASEAN Economic Community (AEC) (Kimura, 2013). Although, AEC will not be effective immediately like European Union (EU), the ASEAN countries will become one single market and production base in the future. To over the major globalization impact, the company firstly has to train the employees from all department English language skills. The company planned to send two marketing executives oversea each year to train international marketing practice like how promotions have been done. When AEC is blooming, the organization will be able to catch up with the price and promotions of other South East Asian countries. The organization has to not only modernize the product but also improve the services that organization has to offer to catch up with globalization impact.
Digitalization
Today’s technology becomes advanced day by day, which will support globalization to become faster by having easier communication between organizations from different countries. People can analyze the economic of a country and products of an organization from other country by checking of the website and email communication. Ever Seiko company planned to hire digital team to develop official organization website and official email address to connect with other companies from other countries easier. Additionally, the company planned to have computer courses to the accounting and finance departments to familiarize with the updated technology. Plus the company planned digital and finance team together to have online and card payment system, which is currently becoming very popular in Myanmar. Marketers of the company has to keep in touch with the updated technology for the online advertisements and announcements of the time and location of the promotions on the social media websites like Facebook and LinkedIn.
Diversity
Diversity has many advantages and is very important to the organization. Each organization should integrate diversity together with the business plan, which will lead the organization to the long-term success. Ever Seiko plans to practice diversity in the workplace. Currently the organization is operating with autocratic leadership style. However, it is converting to the democratic leadership style in creativity, problem solving and providing customer service. All the employees participated with their own different opinions in order to get the best out of everything. The organization is planning to have more internal events like annual dinner, employees outing and employees-family meetings. This is to have great teamwork and best support in between departments. By doing these, the organization hopes to results higher customer satisfaction and it is different from competitors in the customer point of view.
Green and Ethical Issue
Nowadays, people tend to have more interest in the green and clean environment. Currently, scientists and specialists in green environment talk about the usage of plastic and how it spoils the environment. Thus organization uses paper bag and box with modernized designs in packaging of the products. For the products, the organization is designing glass bottles, which have as less plastic as it could, and for some products that have to use plastic bottles that will be reusable with recycle sign on it. Currently, the organization practices ethics while dealing with internal and external customers and organization plans to practice it more in the future. As organization practices ethics, it has more customers’ trust, loyalty, and positive working environment, less legal problems and retain good employees, which will help building up relationship marketing and long-term success of the organization.