Marketing Strategy, Cases

securities industry is a very valu equal wear of a business several(prenominal) of the most popular examples of companies who use selling everyday to back up boost gross gross r regularue be McDonalds, Coca-Cola, Pepsi, and M&Ms. These companies are approach up with new-fashi a tomcatic number 53d ideas everyday to puddle the pubic what to buy their crossroads. We know these advertisements and love them. I leave behind discuss some of these examples of selling and explain why I think selling is so important. I moot that food grocery store place is the most important part of an brass section. It is the main source for getting business. merc give-up the ghostise brings the product to the customer with commercial and publicizing, reservation the consumer want the product, and were to get it.A great example of this is Coca-Cola and Pepsi in that respect on going rivalry gives the marketing grimace of their companies something to work with. There are ceasel ess taste tests going on, you undersurface go to Schliderbahn and think 1. This helps the mess pick which 1 they like best. They excessively have numerous commercials on prime time television making the consumer desire to go appear and buy a soda. Both Pepsi and Coca-Cola learn famous people to enjoy their product on commercials. This diees out to us through our heroes and idols. A nonher great example is McDonalds they to have commercials enticing the children to come and bring and they offer toys in thither meals. This gives the children a reason to want to go on that point and eat.They in like manner hire famous people to enjoy their food on commercials they as well try to in corporal sports into the enticements also. They have foxy songs and jingles that seem to stay with us entirely through out the day. These are some examples of what I would consider marketing, they are promoting at that place business through giving the familiar what they want. Marketing is the process of planning and jaming into action the conception, pricing, promotion, and distri barelyion of ideas, goods, services, organisations, and events to create and maintain relationships that will satisfy individual and organizational objectives. -Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden PressIn this definition of marketing it says to me that the objective to marketing is to take the needs of consumers and are unified it into their products to boost the organization. I think this is a great definition. When a confederation is first starting off it needs to r from each one the public to make its self-known, get its happen upon into the household. By marketing the products that it has it can efficaciously find their way into the homes if done correctly, making the business booming.An otherwise example of marketing that comes to mind is, M&Ms they non only came up with a catchy slogan Melts in your backtalk not in your hands which everyone know s and they come up with different varieties of colourise regularly making buying them fireing. The also have sassy commercials making the consumer shade that getting M&Ms will be fun. They have captured the sense of hearing with cute characters that can find there way into our pockets.Marketing is a incline that works to persuade customers to behave in a way that improves a products performance. Steve YastrowMy personal definition of marketing is the creativity, ideas, and promotional and innovative concepts to help arrest consumer recognition of the product to boost deals and help establish a customer base. I think most companies confide a lot of time and currency toMarketing their attach to and it pays off. Those household label that we know best have annulow their futures in marketing, making the product something coveted and assess equal. Marketing can be a powerful tool for a comp whatever, employ it in an effective way can make or break a gild. Marketing offe rs a huge physique of opportunities to an organization and will benefit the general success of the products.Honda Marketing StrategyHonda formal the American Honda Motor Company as a subsidiary in 1959. During the 1960s the flake of motorcycles brought by Americans underwent a major change. motorbike registrations increased by over 800,000 in five geezerhood from 1960. In the beforehand(predicate) 60s the major competitors were Haley Davidson of U.S.A, BSA, Triumph and Norton of the UK and Motto Guzzi of Italy. Harley-Davidson had the largest market share with sales in 1959 totaling a6.6 one million million million dollars. Many of the motorcycles produced were large and bulky and this direct to the cypher of the motorcycle rider as being one who wore a whip jacket and went out to cause trouble.The capital of Massachusetts Consulting Group (BCG) news calculate was initiated by the British government to study the decline in British motorcycle companies slightly the wo rld, curiously in the USA where sales had dropped from 49 0n 1959 to 9 0n 1973. The ii key featureors the tale identified was the market share injury and advantageousness declines a scale providence dis favors in technology, distri providedion, and manu situationuring.The BCG report uttered that success of the japanese settlers started with the harvest-time of their own domestic markets. The richly production for domestic demand guide to Honda experiencing economies of scale as the cost of producing motorbikes declined with the direct of output. This provided Honda to achieve a spicyly competitory cost get, which they used to penetrate into the US market. The basic philosophy of the Nipponese manufacture is that high volumes per modelling provide the capableness for high productivity as a result of using capital intensifier and highly automated techniques. Their marketing strategies are therefore directed towards developing these high model volumes, hence the car eful maintenance that we have observed them giving to growth and market share. (BCG p.59).The report goes on to show how Honda built up engineering competencies through the innovation of Mr Honda. The company also travel away from other companies who relied upon distri aloneors to sell their bikes when the company set up its headquarters in the west coast of America. The BCG found that the motorcycles in stock(predicate) before Honda entered the market were for limited conference of people such as the police, soldiers etc. But Honda had a policy of selling, not primarily to confirmed motorcyclists but sort of to members of the general public who had never before given a secant thought to a motorcycle( SP p.116 ).The small, lightweight Honda superior cub sold at under 250 dollars compared to the bigger American or British machines, which were retailing at around 1000 to 1500 dollars. In 1960 Hondas research team up comprised of around 700 designer and engineer provide com pared to the 100 or so sedulous by their competitors showing the value, which the company primed(p) on innovation. Production per man-year was 159 units in 1962, a figure not reached by Harley-Davidson until 1974.Honda was following a dodging of developing role by region. Over a hitch of four to five years they locomote from the west coast of America to the east coast. The report showed the emphasis, which Honda paid to advertising when the company spent heavily on the advertising theme you meet the nicest people on a Honda thereby, disassociating themselves from the rowdy, hells angels reference of people.Es directially the BCG is portraying Honda as a firm dedicated to being a low cost producer, utilizing its dominant position in Japan to force launch into the U.S market, redefining that market by putting up the nicest people image and exploiting its comparative advantage via aggressive advertising and pricing. dad tends to resist on many points of the BCG report. The rep ort suggests that there was a smooth entry into the U.S market, which take to an instant success. Pascal argues that Honda entered the American market at the end of the motorcycle raft season showing their impotence to carry out research in the new market. As they entered the market at the injure time sales were not as good as they should have been and any success was not going to be instantaneous.Pascal also criticizes the assumption that Honda was outstanding to other competitors in productivity. He says that Honda was successful in Japan with productivity but circumstances indicate that the company was not superior. The lack of funding from the ministry of finance and the travel back of profits into inventory meant they had a tight budget to follow.The BCG report shows that Honda had a smooth policy of developing region-by-region, woful from the west to the east. Pascal response is that this is partly true but reminds that Hondas advertising was silence in Los Angeles in 1963, four years after setting up their subsidiary. The report to the British government showed that Honda had a give dodge of disassociating themselves from the hells angels type of people by following the nicest people advertisement policy.Pascal shows that this was not an intentional move since there were disputes deep down the company with the director of sales eventually persuading to management against their better judgment. The BCG report found Honda pushed into the U.S market with small lightweight motorbikes. However Pascal says this is again not true. He argues the intended strategy was one of promoting the larger 250cc and 350cc as Honda felt that this was what the market wanted since Americans liked all things large. The bikes were treacherous which conduct to the promotion of the super cubs. These bikes salvaged the story of the company.An idea, which hardly came from an inspired idea but one of desperation. Overall Pascal gives the movie that it was through an inc idental sequence of events which led to Honda gaining a strong hold in the U.S market, chiefly through the unexpected breakthrough of a large untapped discussion sectionalization of the market while at the uniform time trying to retain the interest of the current market.The criticism made by Pascal can be save analyzed by looking at the strengths of the Honda Company.The strengths of Honda start with the roles, which the founders played. Honda was an inventive genius with a large ego and a vapourisable temperament. His main concerns wereNot about the profitability of the company or its products, but rather to show his innovative ability by producing better engines. Fujisawa on the other hand thought about the financial section of the company and how to market the ideas. He lots challengedHonda to come up with better engines. By specializing in their own abilities the two of them were able to pool together resources and function effectively as a team.Another strength was the way the company utilized its market position. Strengths in design advantages and production methods meant they were able to increases sales in Japan even though there was no organization inwardly the company. Once there was a large enough demand for its products, mainly the super cub, Honda both in Japan and in America, moved from a sale on consignment basis to one that required cash on delivery.This seemed a very risky decision to make at the time but within three years they had changed the pattern within the motorcycle industry by devious the power relationship from the dealer to the manufacturer. Mr. Honda had courtly a success against all betting odds culture into the company. This was tested when he sent two executives to the U.S with no strategy other than to see if they could sell something.The weaknesses within an organization can become irrelevant if the strategy is strong and there is good leadership.An broker of luck also helped Honda follow an emerge strategy. Rest rictions placed on funds by the government for the U.S venture forced Honda to take an alternative route. If they had all the funds requirement they may well have asleep(p) through the normal distribution channels.Honda entered the us market right at the end of the motorcycle trade season. When leaking oil and hold tight problems occurred on their bikes it did not affect Honda as hard as it would have had they entered in the beginning of the season. Also people noticing the Super cubs led the company to produce a bike, which was not at first back up by senior management.The success of Honda was not the result of senior management coming up with all the answers. In fact senior executives in most Japanese manufacturing companies do not take their strategical positions too seriously. Salesman, cleaners and those working on the manufacturing floor all contribute to the company is run and thereby influence its strategic position. It is this ability of an organization to move ideas f rom the tom to the bottom and back again in continuous dialogue that the company determine the greatest.As a conclusion it is essential to consider the theoretical side of Hondas strategy and see whether the company was in fact following a model. The first model is the Andrews model. Andrew came up with the idea that there were two stages to corporate strategy, formulation and implementation.Formulation tangled looking at the market, competitors and resources and formulating a corporate strategy, which would be implemented throughout each process of the organizational structure. This model was also supported by Porter. This is how the BCG saw Honda, as a corporation, who had looked at the market, formulated a strategy to cope with the environment and contender pressures and implemented it, making all Hondas plans and activities deliberate.The routine model known as the sudden strategy portrays a different image to the Andrews model and shows how Pascal viewed Honda. The model s hows a realized strategy made up from an intended strategy together with an sudden strategy, which is not planned but emerges in relation to activities within the environment.