Btec Business Level 3 Unit 1 P1
...Name: Arsalan Anwar Business level 3 Unit 1: P1 Introduction: In this assignment I will be selecting two contrasting business which are going to be Tesco and Oxfam. I will be writing a written report describing their purposes and ownership, to do this I’ll talk about what goods and services they offer and to whom they offer these to. Finally I’ll talk about where they operate and which industrial sector of the economy they operate in. Introduction of Tesco Tesco is a massive company with high revenues, it is also a public limited company (PLC) that means it has limited liability, the meaning of limited liability is that the investor cannot lose more than the amount he has invested within the company intern this means that the investor is not personally responsible for the debts of the company so linking this to Tesco it will mean that if Tesco goes into debt the investors are not responsible to pay it off. The main aim of Tesco is to make profit and the reason it will make profit is because it is a well know and established company which has been trading for many years. It has over 2000 stores around the world and it is employing nearly up to 300,000 people which proves that it is a global organisation. Sector of the economy Tesco operate Tesco operates in the tertiary sector which is also know as the service sector and is one of the three main economy sectors, the......
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Btec Business Level 3 Unit 2 Business Resources M2
...Unit 2 Business resources Task 3 (M2) Introduction In this report, I will be assessing the importance of employability and personal skills in the recruitment and retention of staff in Thorpe Park. Recruitment This is the process of taking in employees for a job when a job becomes vacant. Skills Thorpe Park looks for when recruiting staff Team working: The employees at Thorpe Park will need to be able work well in teams so that they can help other employees with work that they are doing and also to help make important group decisions. This will help the customers as all the employees will be working together so will serve them quicker and more efficiently. This will also save waiting time for the customers. Knowledge of products or services: It is important that the employees are familiar with the products and services that Thorpe Park offer as they need to know the area they are working in and the business they are working for. It will also be easy for them if they are working in a familiar environment around familiar products and services. This will help the customers as the staff serving them will be familiar with the products and services so they will be served quickly and easily. Experience in a similar role: Thorpe Park will look for people with previous experience in a similar role because they know they will be more skilled in that job and will be confident that they know what the job involves. It will also help the employee as they know how to work in a......
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Business Btec Level 3 Unit 1 M2
...For this assignment I will compare the challenges to selected business activities within my chosen business in two different economic environments. I will analyse whether national demand and GDP are rising or falling and how they are affecting my chosen business. Recession Recession is a significant decline in economic activity spread across the economy, lasting more than a few months. Recession would impact in Rudding Park Hotel due to the fact of recession effects. During recession, as sales revenues and profits decline, they will cut back on hiring new employees. In an effort to cut costs, they are going to stop buying new equipment and to develop new services. As declining revenues show up the price may decline. Dividends may also slump, or disappear entirely. Shareholders and advertising agency may become upset. Shareholders may call for a new CEO and the advertising agency may be dumped and new agency hired. When the stock falls and the dividends decline or stop, the investors who hold that stock may sell and reinvest the proceeds into better-performing stocks. The customers of the Rudding Park Hotel that owe it money may pay slowly, late or not at all. Then, with reduced revenues, the affected Hotel will pay its own bills more slowly or late. Late payments will reduce the valuation of the corporation's debt and ability to obtain financing. The Hotel's ability to service its debt, may also be impaired, eventuating in defaults other debt, further damaging the......
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P3 Unit 3 Btec Business Level 3
...P3 Market research Market research is the action or business of promoting and selling products or services, including market research and advertising. The information is about markets, products or services that a business sells to get new customers and make sure that the customers are happy. They aim to fulfil the aim of making as much money as they can and expanding the business. There are two types of market research: Primary: This is information that the person has gathered by themselves. It can be collected through questionnaires, customer interviews, focus groups, observations and experiments. Secondary: This is information that has been gathered already but not by the individual themselves. There are 2 types of research: Internal- This information is usually from within a business. For example this can be retails data, stock analysis and accounts. Primary Research: Tesco: Questionnaires: Tesco are an international organisation. They use questionnaires by sending them through the post, telephone, text, internet and face to face. By using it through the post it is cheap so they just need to pay for the postage. They can send these to residents in the company without spending a lot of money. Regularly sending these can mean regular feedback but a problem is that people can just disregard what they have received in the post. By getting feedback from them they can also find out what types of things the local residents what to be receiving information about......
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Btec Business Level 3
...BTEC Level 3 in Business – Unit 1 – The Business Environment Context Think of a business as a ship on the high seas. The captain and crew of the ship are steering the ship on its journey but the ship is also affected by other influences such as the weather, tides and currents. The captain and crew have no control over these but they must be able to respond effectively to the intervention of events such as a storm in order for the ship to successfully complete its voyage. Just like a ship has to respond to the influences of its environment (the ocean) a business must also react to a number of factors that will be beyond its control. These can come from hugely varied sources, from the weather to a war on the other side of the world. The economy and government attempts to control it are more obvious influences on business activities but how each business will be affected are vastly different. During this unit you will investigate the differences in businesses; how they are run organised and influenced. Why certain businesses are organised in different ways and which individuals and organisations are interested in the progress of different businesses. By the end of this unit you should understand: • The range of different businesses and their ownership. • How businesses are organised to achieve their purposes. • The impact of the economic environment on business. • How political, legal and social factors impact on a business. Scenario A bank......
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Btec Business Level 3 Unit 2
...I will be analysing MJM’s cash flow forecast, identifying problems and making recommendations. I will look at what will happen to the ratios if the problems develop further. Opening Balance Overdraft – Looking at the opening balance in January on MJM’s cash flow forecast, I can see that the business started with an overdraft of £185,001, and an explanation is needed as to why. Why did the business start with a £185,001 overdraft? MJM may have started with the £185,001 overdraft for several reasons; MJM could have had the overdraft because they wanted to purchase extra materials to use and make the ladies’ underwear. The overdraft could have been used to purchase the company’s opening stock; the owners may have not had enough money to purchase enough of the opening stock, hence the reason as to why the overdraft was taken out in January. The January overdraft could have been used to pay MJM’s suppliers for the materials used to make the lingerie. Healthy and strong cash flow – overall, looking at MJM’s cash flow forecast throughout the whole 12 months, I can see that the company have a strong and solid cash flow, as well as a healthy bank balance of £5,225,007 at the end of the year. Why is MJM’s cash flow strong throughout the 12 months and why does the company end with a healthy balance of £5 million? The company may have had their strong cash flow for several reasons; MJM may have had their strong cash flow because they may have paid their suppliers on time without...
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Btec Business Level 3 Unit 10
...|Assignment brief – QCF BTEC | |Assignment front sheet | |Qualification |Unit number and title | |BTEC Level 3 National in Business (QCF) |Unit 10 Market Research in Business | |Learner name | Assessor name | | |Duncan Llewelyn | |Date issued | Hand in deadline |Submitted on | |23rd April 2015 |19th June 2015 | | | | | |Assignment title |Unit 10 Market Research | |In this assessment you will have opportunities to provide......
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Unit 3 Btec Level 3 Business
...Unit 3 – P1 P1 – Describe the marketing techniques used to market products My chosen organisations are NHS which is charity and Tesco which is private P1 Ansoff matrix Strategic marketing planning tool that links a firm's marketing strategy with its general strategic direction and presents four alternative growth strategies in other words there is four strategic parts to ansoff matrix which i will explain what it is and what is the purpose or definition for it. These are the four strategic parts to ansoff matrix below: Market penetration: A measure of the amount of sales or adoption of a product or service compared to the total theoretical market for that product or service.by pushing existing products in their current market segments in other words allowing existing product to gain potential customer in its market segment. Market development: The expansion of the total market for a product or company by entering new segments of the market and also allowing developing new markets for the existing products, trying to target new customer with an existing product. Product development: The creation of products with new or different characteristics that offer new or additional benefits to the customer. Product development may involve modification of an existing product or its presentation, developing new products for the existing markets. Creating new products for an existing market for example iPhone which then developed ipad. Diversification:......
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Business Btec Level 3 Unit 1 - P1
...Unit 1 - P1 Table 1 Types Of Ownership: | Definition: | Example: | Sole Traders | A sole trader business is owned and controlled by one person and the most common type of business. | Window CleaningPlumbing Electrical Work | Partnerships | A partnership is usually formed by signing a Deed of Partnership (which sets out how profits will be shared and the different responsibilities and payments to partners) with the paperwork being supervised by a solicitor. | Medical PracticeDental PracticeAccountantsSolicitors | Private Limited Company | Private limited companies tend to be smaller than public ones. Often family businesses. There must be at least two shareholders. Shares in private limited companies cannot be traded on the stock exchange. | Green EnergyJohn Lewis PartnershipVirgin Atlantic | Public Limited Company | Public Limited Companies have their shares bought and sold on the stock exchange. This allows the company to raise large amounts of capital very quickly. | ASDAMicrosoftBlackberryMcDonald’s | Government Departments and Agencies | They operate on behalf of the government and are staffed by civil servants, known in this department as customs and revenue officers. Civil servants are people who work directly for the government. Their job is to collect income tax & other taxes on behalf of the government, to collect repayments on student loans and make payments such as tax credits. | Child Protection AgencyCabinet OfficeDepartment For TransportNHS......
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Btec Business Level 3 Unit 2 P2
...accountant possessing communicational skills in both written and verbal is crucial. This is because the accountant will need to be able to manipulate the information and report its findings to the higher management. Therefore the accountant needs verbal communication to explain his findings and how will influence the business and what they can do to improve. Also the accountant has to be able to write reports using specialist language. Hence forth when applying for an accountant job it is crucial to have communicational skills. Since the organisation will value this skill a lot. Skills that I have For me to apply for an accountant job, I will need to possess appropriate skills listed above. I believe that I have relevant skills needed to be an accountant. I have personal skills such as team work. This skill is very important for an accountant since as working as a group you can analysis the weakness and the strength of each person as well as their work, therefore further improvements can be made. It is also very efficient since teams develop ideas that allow them to complete tasks efficiently and quickly. The employability skills that I have is that I have qualifications in Btec national diploma. This qualification is related to how businesses operate. This is ideal to be an accountant as you will need to know what businesses is and what they do. Another personal skills that I have is that I am quite confident. This is necessary since as a accountant you must be confident......
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Business Btec Level 3 Unit 2 P1
...Unit 2 The selected organisation is Asda. Asda is one of the world’s most well-known and valuable brands and commands a leading market share in the world’s supermarket business. Asda produces food and general household products and it also has a cafeteria McCafe which produces hot drinks, sweets and snacks. The restaurant employs about 130 people. Its structure is a tall hierarchal structure. On top you find the Head Office which consists of the owner of Asda and the board of directors, after you find the CEO of the restaurant the administrator. After the administrator you find the managers which on top you’ll find the first assistant manager, then the second assistant manager and after you find the swing managers. After the managers there are the crew of trainers and then the crew of members. Job Description A job description sets out the purpose of the job, where the job fits into the organisation structure, the main responsibilities of the job and the key tasks to be performed. A job description will set out how a particular employee will fit into the organisation. It will therefore need to set out: the title of the job to whom the employee is responsible for whom the employee responsible a simple description of the role and duties of the employee within the organisation. A job description could be used as a job indicator for applicants for a job. Alternatively, it could be used as a guideline for an employee and/or his or her line manager as to his or her role and......
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Btec Level 3 in Business – Unit 1
...P1 – Describe the type of business, purpose and ownership of two contrasting businesses The first Business I have chosen is British Airways, because of my interest in travelling. Also, I thought it’d be a very interesting and different company to choose and base my research on. British Airways, often shortened to BA, is the flag carrier airline of the United Kingdom and it is the largest airline in the United Kingdom based on fleet size. When measured by passengers carried, it is second-largest in United Kingdom, behind EasyJet. The airline is based in Waterside near its main hub at London Heathrow Airport. A British Airways Board was established by the United Kingdom government in 1972 to manage the two nationalized airline corporations, British Overseas Airways Corporation and British European Airways, and two smaller, regional airlines, Cambrian Airways, from Cardiff, and Northeast Airlines, from Newcastle upon Tyne. On 31 March 1974, all four companies were merged to form British Airways. After almost 13 years as a state company, British Airways was privatized in February 1987 as part of a wider privatization plan by the Conservative government. The carrier soon expanded with the acquisition of British Caledonian in 1987, followed by Dan-Air in 1992 and British Midland International in 2012. British Airways is a founding member of the Oneworld airline alliance, along with American Airlines, Cathay Pacific, Qantas, and the now defunct Canadian Airlines. The alliance has...
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Business Studies Level 3 Btec Unit 2 P5
...sheet for a selected company. In this assignment I will be interpreting the contents of the trading and profit loss account of Marks and Spencer’s and their balance sheet. I will then give my opinion on how well the might look to shareholders in the business. Scenario Marks and Spencer’s Finance Manager is attending the AGM set for the shareholders and other stakeholders next week. He has asked you to produce a presentation to address the stakeholders for Marks and Spencer’s. Why is a trading, profit and loss account important? A trading and profit loss account shows the how successful the business has been in terms of achieving their ultimate aim which is to make a profit. Most of the time the trading, profit and loss account of a business would tend to show the volume of revenue the business has received within the year of the trading, profit and loss account and the cost involved in generating that revenue. It is important as it allows them to compare their performance to previous years. This is also important because similarly to the balance sheet as it allows investors and shareholders to look at the businesses financial status and decide whether they would prefer to invest in the business. This puts added pressure on a business such as M&S because if they have failed in their objective of making a profit there is a high chance of them losing shareholders which could ultimately cause them to lose money also. Revenue Revenue is the income gain from trading activity......
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Btec Business Level 3 Unit 3
...Identification, selection and development of a product 2) Determination of its price 3) Selection of a distribution channel to reach the customer’s place, and 4) Development and implementation of a promotional strategy. Marketing Techniques: Branding: The process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. Cadbury will have their brand as one of their main focus’ as brand image is so important to a big organisation like Cadbury, if their brand image is good, then they get lots of sales which is their main aim, but if their brand image is bad, then customers will choose to purchase from a competitor instead, which will see sales and profit decline, ultimately ending in the company going out of business. Having a good brand image will help the brand expand in the future into different markets. It will also help alter the brands positioning in the market into a more controlling position with more sales. Jaguar will also have their brand image as a main priority because for a car company, people are more likely to buy a car from a reputable brand than one that is perceived to be cheap or low quality. They will want a good brand image so that they have customers for when they want to expand the business into different sectors of the market,......
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Unit 3 Btec Business Level 3 P6
...target parents with their attractive designs that are sold at decent prices.Versus features- Concept of product life style – | * Price: pricing strategies (premium pricing, penetration pricing, economy pricing, price skimming, psychological pricing, captive product pricing, product line pricing). My products will be reasonably priced so people of all economical statuses will be able to afford the clothes. Although, there will be some items that have premium prices as they will be made with more expensive materials. An example of this is a real fur coat. Because the cost of real animal fur is expensive, Topshop will need to sell products like this at a more expensive price or it would not be fair on the animal and it could result in the business being prosecuted. When the TopKidz range is first released some items will be sold together as a deal to celebrate the range being released. For example, a t-shirt will be sold with a matching pair of pants for a set price for a short period of time after the range has been released, this is called penetration pricing. As well as this there will be certain clothes within TopKidz that will always be sold at a low price, this is called economy pricing. This means that people of the lowest economic status will be able to afford the clothes. I will also use psychological pricing throughout my clothing range to make the customer think they are getting a good deal. For example, a lot of clothes within the TopKidz range will be sold at......
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HND Marketing Principles Assignment
Marketing is the soul of any business. The introduction of the product or service is given through marketing to the customer. Without effective marketing strategies the success of the organization is not possible (Lorette, 2015). This marketing principles assignment focuses on understanding the concept of Marketing and STP strategies. For the purpose of research of the assignment the company Hennes and Mauritz (H&M) has been taken. H&M was opened in 1976, and now it is world’s second largest apparel retailer. (Jacob, 2012)
Task 1 (LO 1)
A. Examine a few definitions (at least two) of marketing & explain the marketing process with example drawn from H&M.
The marketing is the process which creates, communicates, delivers and exchanges the offers which the customers value. (American Marketing Association, 2014) The process of marketing is the science as well as art which explores, creates and delivers the value to the customers aimed at satisfying their needs and profit to the organization. (Cohen, 2011)
Marketing process at H&M:
Marketing process is all about understanding the customers’ needs, wants and demands and then provides them the product or services that can satisfy those demands. The marketing process can be understand as:
Fig: process of marketing
- Situational Analysis:Marketing as a comprehensive concept focuses on satisfying the customers’ needs. To fulfill this purpose the firm needs to analyze the situation which is known as Situational Analysis. When the internal and external environment is analyzed it is known as Situational analysis. The analysis of internal environment helps a company to make an assessment about its capabilities to perform certain operations and implement certain strategies. Whereas the analysis of external environment helps to have the assessment about the opportunities which are available to a firm. (Net MBA, 2010). As the situational analysis helped H&M to understand the needs of the non-earners but trend-lovers youth of UK. The various tools for the analysis of the internal as well as external environment are:
- 5C Analysis.
- PEST Analysis.
- SWOT Analysis.
- Marketing Strategy: After the thorough analysis the company gets to know that what the various opportunities which it can avail are along with the threats which can pose a danger to the company. After the identification of the opportunities the firm than makes its Strategy. This strategy is aimed at availing the opportunity to fulfill the unsatisfied needs of customers. The marketing strategy of a firm includes:
- Segmentation: The whole market cannot be tapped as a whole. Thus for the appropriate marketing strategy the firm divides the whole market into different markets. This division is known as segmentation. The segmentation of H&M’s product is based in the age, preferences, lifestyle and income status of people.
- Targeting: Selecting the market to fulfill the needs of that particular segment is known as targeting. H&M has targeted the college/ school going teenagers who want a large quantity of trendy clothes with low price and good quality.
- Positioning: Positioning refers to create the value of the company in customer’s mind. The positioning of H&M’s product is that it provides good quality of products in lower prices i.e. customer benefit positioning.
- Marketing Mix Decision:The Marketing mix decision is the decision regarding the activities that a firm needs to perform to promote its brand. The Marketing decision involves the decision regarding its
- Implementation and Control:When the evaluation of the environment has been done and the decisions regarding the product mix has been taken along with the preparation of marketing strategy, these strategies need to be implemented. But only implementation is not enough, to successfully implement the strategy it is very essential that the firm monitors the whole plan and then make the changes accordingly. (osmawati, 2012)
B. Discuss the different kinds of marketing orientations and recommend the most suitable marketing orientation for H&M.
Mainly five marketing orientations are:
- The Production Concept: According to the production concept the product is produced on mass level. Because in this concept the marketers believe that the customers like to buy the products which are available in the market. The products are of low cost because of the huge production. Most of time the quality is to be compromised to offer the lower prices to the customers.
- The Product Concept: According to this concept the main focus of the firm is on the quality of the product. It is believed that the customers will buy the product if it is of best quality. But organizations focus on the quality so much that they forget about other alternatives they can focus on. Their focus is to make its existing product best. (kasi, n.d.)
- The Selling Concept: The basis of belief of the selling concept is that the customers will buy the product if the company will tell them about it. In this concept the firm only focuses on selling its product. The Customer Relationship Management is nil in the selling concept because the firm just want to make a sales and do not try to fulfil the needs and wants of the customers.
- The Marketing Concept: The marketing is the most profitable and widely applied concept. According to this concept first the needs of the customers are identified and then the firm offers the product or service which can fulfill the need of the customers. The aim on this concept is to satisfy the customers through the products or service offerings. (Seun, 2013)
See marketing and design at H&M with business brief here:
Out of these four concepts the marketing concept is applied at H&M as the efforts are made to satisfy the customers’ needs and demands. The products are offered to them on lower prices without compromising on quality which is the need of the youth as they can’t afford expensive clothes besides they want more clothes in their wardrobe because of the frequent changes in the trend.
Task 2 (LO 2)
A. Analyze the micro and macro environmental factors that influence the marketing decision at H&M.
The marketing decisions are to be made after the analysis of the micro and macro environmental factors because they have a direct impact on the marketing strategy and the marketing decisions need to be taken accordingly. The factors are:
- Micro Environment: The micro environment refers to those factors which the firm can control. These factors define the company’s capability which helps the company to adopt the appropriate strategy and performing the particular operations. Assessment of the micro environment determines the marketing plan of the firm and the strategy that it has to adopt. (Chand (II), 2015). The Micro environment of H&M consists of:
- Company: Before taking the marketing decisions and adopting any strategy the company first need to analyze about its own capabilities that what it is capable of doing.
- Suppliers: The Company also needs to analyze the suppliers available to it.
- Intermediaries: The intermediaries also affect the strategy of the business.
- Competitors: The firm also need to analyze its competitors.
- Public: Public and the characteristics of the public affect the marketing decision of the firm like H&M.
- Customers: The customers obviously have the greatest impact on the marketing decision of the firm.
- Macro Environment: Macro environment also have the impact on the marketing decisions of H&M but the firm does not have any control over it. Thus the firm needs to assess the external environment in order to take appropriate marketing decisions and adopt suitable marketing strategy. PEST Analysis is the most common tool to assess the external environment. (Hotel Mule, 2010). The macro environmental factors are:
B. Propose a new product for H&M and examine the concept of segmentation and recommend segmentation criteria and targeting strategy to be used for the newly developed product.
The segmentation is the process that divides the customers in the group. These are the groups which have similar needs and same buying behaviour. The market is segmented for the purpose of offering the products according to the distinctive needs of customers. (DeVault, n.d.)
Proposed Product for H&M:
The H&M offers a large range of products to its customers from casual wears to lingerie (H&M (I), n.d.). It can offer a new product to its customers i.e. Wedding Gowns. The segmentation for the wedding gowns can be done on the basis of:
- Geographically:The segmentation can be done on the basis of the geographical dispersion of the market and customers.
- Demographically: The basis of the demographic market segmentation is budget, religion and age etc.,
- Psychographically: The Psychographic segmentation is based on the psychology of people what they believe in, their religious beliefs and values etc.
- Behaviorally:It segments the market according to the personality and lifestyle and social class of people. (Marketing flexibility, n.d.) For the wedding gown the most recommended segmentation criteria is demographic and behavioral segmentation. H&M can segment the market according to the income status of people, their style of life, age and social class. After the segmentation the targeting strategy of H&M can be:
- Segment: Brides with low budget, who don’t earn that well and enjoy the popular culture and are aged between 20 to 25.
- Targeting Strategy: The price range must be medium while maintaining good quality. Discounts must be given and the firm must spend less on advertising. The distribution can be nationwide to cover the costs. (Gould, 2010)
C. Identify factors that will influence buyer behavior and propose a new positioning strategy for your organization and its newly developed product.
It is of great importance to know that how the consumer will react in a given situation because his behavior decides the firm’s future course of action. There are mainly five factors that influence the behavior of the buyer. These factors are:
- Psychological Factors: The internal factors influencing the behavior of the consumers are known as psychological factors. The psychological factors are:
- Beliefs and Attitudes.
- Social Factors: The buyer behavior is also influenced by the society he is surrounded with. The decision of the individual is greatly impacted by its society. The social factors are:
- Reference Group.
- Roles & Status.
- Cultural Factors: The buying behavior of the people is the result of the set of values that he has acquired from his upbringing and society. As we grow we acquire certain values and perception from the family. (The Consumer Factor, 2015)
- Economic Factors: The economic factors also influence the behavior of the individual. The economic factors are:
- Income Status
- Consumer’s Credit.
- Personal Factors:These are the personal factors and have a direct influence on the buyer’s behavior like age, occupation and lifestyle of the individual. (Chand (I), 2015)
The recommended positioning strategy for Wedding Gowns is the Customer benefits positioning strategy or product characteristics positioning strategy. H&M can position its product based on the characteristics of the product which the competitors have ignored. The customer benefit positioning strategy is most appropriate strategy as H&M’s newly developed product is the product which is of good quality along with the moderate prices. (Marketing 91, 2015)
Read About Aspects of Contract Law Negligence in Business
Task 3 (LO 3)
A. Using H&M as your chosen company, explain how the new product was developed to achieve sustainable competitive advantage.
H&M Company must develop the strategy which helps it to achieve the sustainable competitive advantage. The following factors have to keep in mind by H&M to sustain the competitive advantage:
Fig: Strategies to achieve the competitive advantage
- Unique: It means that the wedding gowns that H&M is going to offer must have the unique design. It should not follow other designs. (1000 Advices, n.d.)
- Difficult to Replicate: H&M must create the new product in a way that competitors cannot replicate it easily.
- Superior to Competition: The newly developed product that H&M is going to offer must be of superior quality from its competitors.
- Meeting the Latent Demand: Customers don’t stay satisfied with the current features always. They want more in future thus the success lies for H&M to understand those needs and fulfill them.
- Cannibalization: the company H&M must keep cannibalizing its own product. As it has to be trendy in its approach. (Kottolli, 2008)
- Sustainability: the sustainable approach is the most important factor for any company or for H&M. the sustainability can be achieved if,
- H&M is being resource efficient.
- Adopt a flexible approach and adaptable designs. (Business Case Studies, 2015)
- Develop strong vendor relations.
- Provide Value for money products.
- Keep the Low cost with high quality.
- To keep a broader view regarding the alternatives. (Business Insider, 2015)
B. Evaluate a range of distribution methods that H&M can use for the newly developed product to provide convenience to a target group of customers.
There are number of options available to H&M to provide its products to the consumer. The range of distribution methods are:
- Retail Outlet: Like its other products the H&M Company can chose the direct channel of distribution i.e. retail outlet. The distribution approach for retail outlet must be selective distribution as customer won’t mind going to selected dealers for their wedding dress. (Marketing Management, 2010)
- Internet Selling: H&M can also be involved for the distribution of wedding gowns in internet selling as it is very convenient.
- One Level Channel: H&M can also use one level channel where the manufacturer can directly sell the product to the customers. These factory outlets are perceived well by customers as they got to know that they are getting the good quality of products in moderate price because the cost of middlemen has been avoided rather than compromising the quality. (Pujari, 2015)
- Providing the product to the customer must not be the only consideration for H&M. This must also to be considered that the distribution of the production is satisfactory and proper feedback is being received from the customer for further improvement in the distribution approach.
C. Discuss and critically evaluate the various pricing methods used by businesses and recommend pricing strategy that H&M can use for the newly developed product.
Different pricing strategies are adopted by the organization for its different range of product. The pricing depends upon the segmentation and target group. Various pricing strategies are:
- Premium Pricing: When the product or service is unique than the firm can avail the advantages of Premium pricing. Basically the adoption of this strategy is possible when the firm has a competitive advantage. The consumers get High quality products or services and the prices are also charged high for the premium quality.
- Penetration Pricing: This strategy is aimed at capturing the high market share. The prices of the product or services are set lower first and when the firm gains a good share of market then the prices are increased. The high quality product or service is provided at lower price.
- Economy Pricing: The economy pricing fetches a large portion of market share for the firm. In economy pricing Low Frills products or services are provided. The marketing cost along with the manufacturing cost are kept at minimum. The moderate quality of products are provided in lower price.
- Price Skimming: Price skimming strategy is adopted by the firm which have a good brand image or have unique product. In this strategy the prices are keep high but the quality is moderate. (Chand, n.d.)
Among these four pricing strategies the most appropriate strategy for H&M is:
Penetration Pricing: H&M can set lower prices of the wedding gowns that it is going to offer at the same time the quality of these gowns must be good. A huge chunk of market share will be gained by H&M by adopting this strategy.
D. Explain the concept of integrated marketing communication and discuss the elements of promotional mix including the extended marketing mix as relevant to H&M’s newly developed product.
Integrated Marketing Communication refers to integrate all the promotional tools to work together in harmony (MMC, 2015). In Integrated Marketing Communication all
the factors of marketing communication are compiled to increase the sales and maximise the effectiveness of cost. (MSG, n.d.) The promotion mix refers to the decisions of the firm regarding its promotion that how it is going to promote its product. The various elements of promotion mix are:
- Advertising: The term ‘Advertising’ said to be the non-personal form of presentation which aims to promote the idea, products or service of the firm. The aim of advertising is to share the knowledge and information regarding the product/service about its features, advantages and the prices. (Pujari, n.d.)
- Sales Promotion: In sales promotion the firm gives various incentives to the consumers for making an appeal to the customers to make a purchase of the firm’s product. Different sales promotion techniques are:
- Personal Selling: This is the direct form of selling where the seller directly meets the potential customers and gives him information regarding the product or service.
- Public Relations: Public Relation as a promotional mix technique is a tool to create and maintain good relations with the public.
The extended marketing mix relevant for H&M’s newly developed product is internet selling. Internet selling is one of the most convenient method of selling for the customers and the seller. It covers a broad range of customers in no time.
Task 4 (LO 4)
A. Evaluate the marketing mix variables for two segments of the consumer market and discuss how different it would be for business-to-business (B2B) services.
Marketing mix is also known as 4P’s of the company. The product, price, place and promotion of the company is known as marketing mix variables. Before launching any new product the decision regarding the 4P’s of the marketing has to be taken. The 4 P’s are:
Fig: Marketing Mix Variables
Marketing Mix Variables for two segments of H&M:
Segmentation that I am going to discuss is on the basis of the Gender:
Outlets & Websites
Outlets & Websites
Various Tools of Promotion Mix
Various Tools of Promotion Mix
B2B refers to selling the products or services to other companies rather than individual customer.
Marketing Variables for B2B Services:
- Product: The products are sold and purchased in bulk in B2B services thus the seller must sell the product which is correspondent to the description of the buyer company.
- Price:Usually in B2B there is no bargaining. As the buyer are buying the mass product they always want strong brand and special offers.
- Place: The distribution of the B2B is very critical and needs to be understood. The distribution of B2B can be understood as:
Fig: B2B distribution for industrial product
- Promotion: Promotion is as important in B2B as it is in B2C. The company must create a brand. The buyer company must be aware of the sellers company’s offerings.
Promotional Tools in B2B:
- A strong brand name.
- A differentiated logo.
- Direct Mail.
- Advertisement in newspaper.
- Yellow pages.
- Email newsletter.
- Trade shows.
- Television advertisement.
- Radio advertisement. (Saha, 2013)
B. Assuming that H&M decides to enter the international market with the newly developed product, examine and discuss the differences between domestic marketing and international marketing.
Running the international business might be challenging (TRADESTART.CA, n.d.). There are various factors that have to be keep in mind while going international. The difference between domestic marketing and international marketing is described below.
Basis of Difference
The domestic marketing’s scope is local and limited.
The international marketing’s scope is global and broad.
The risks are less here.
There are greater risks.
Less financial resources are required in domestic marketing.
Huge financial resources are required in international marketing.
Only single market is to be dealt in it.
Whereas several markets need to be dealt in it.
Tapping domestic market is less challenging.
Tapping international market is more challenging.
The differences of culture is not a big issue in it.
Cultural differences are one of the prime concern in it.
Laws and Policies
The laws and policies are simpler because of the familiarity of the home country’s constitution.
The laws and policies are very different in other countries.
Set of Consumers
Only one set of consumer is there.
Different set of consumers is the issue in international marketing.
The assignment gave me a thorough understanding of various marketing concepts and strategies. After completing the assignment I came to know about the practical implementation of how the market is segmented and targeted and what the various strategies of positioning the product or service of the firm are? The assignment gave me the insights about the usage of marketing mix variables in different context.
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