Values in Tension: Ethics Away from Home

In the vision and goals of most business plans is to get into the international market after they have succeed in the local market. When a business expands to other regions there are a number of issues or difficulties that the said business might experience. A different market entails a whole different business plan that will be inclusive of the trends and culture consideration of the new market. Since a business cannot impose on the new market without the market in thought it is important to understand a market before entering it. But the biggest problem is, what if the targeted market believes, moral code and customs are not in line with the business ethics and morals? Should a business embrace or turn away from their moral code if it means more profit to it? And what are the repercussions, in the event a business stands with what its ethics even though they differ from that of the targeted market? This are some of the questions that a business targeting an international market faces.

One of the major issue when attempting to enter an international market is understanding the local traditions. Research should be conducted earlier on before entering their market. The traditions include, cultures, belief and religion (Donaldson, 1997). It is important to understand that we are all different and in our beliefs and even learn to respect that difference. The benefits of respecting other people’s traditions will be reflected in how they community accepts your enterprise in their country. It is important not to impose any of what you believe in a new market, since this might bring out some conflict. Respect plays an important role in communalism.

Code of ethics and a more code is a pillar in all nations. Though they might differ from place to place more often than not they all have a common or a key point and that is better humanity. Even if a company is entering an international market, it is important that they respect each and every individual in the new land and acknowledge and accept all their rights. For instance, if a great renowned company wants to expand to a third world country it is important that they treat the employees the same way they world in a more developed country. Every human life is worthy therefore it’s important to respect it no matter what. If you accept a new people, they in turn accept a business and an alliance is forged that will create harmonization in the new environment (Donaldson, 1997).

When starting up in an international market, for instance, import-export business, the first thing is learning about your market. This should not only be on the business margins aspect but also its important to study a countries laws, their traditions, cultures, beliefs and religion (Donaldson, 1997). The importance of this study is to be able to create a picture of how the business will intertwine with the new market. Also since the labor will come from the new environment, it’s important that you do not go perpendicular with their beliefs and cultures. For instance, in some religions they do not work during certain days, therefore if you have prior knowledge of this you are able to plan a work schedule that is applicable to the company whilst at the same time your staff (Donaldson, 1997).

After learning of the market, the next thing is drafting guidelines on the moral code and the ethical standards with regards to the new market. The manager should ensure that this are followed to the letter and if there are any problems, these list should be used as a guide line to problem solving. But it is important that as you are writing these moral code, that you do not disrespect the moral code or traditional practices of the target market. When drafting the code of conduct, it is important to be thorough, and try to includes all scenarios possible. This is to avoid any loop hole to the said law or regulation.

The other thing is forging a relationship with other businesses or other stakeholders in the market. This should include the national government and county or provisional government and the community in general. If you have a productive relationship with other businesses, the competition will be healthier there by ensuring the smooth running of the business. In order to be in the good graces of the national or local government, it is important that you understand their policies and ensure that all the legal formalities required to ensure that there is smooth running of the business are followed and finally that all the tax returns are in check. Finally, with the community, you can attend any community functions to show you support and thereby the local people will see you as their own and accept you (Donaldson, 1997).

Creating a leadership structure is also important (Donaldson, 1997). Since it’s a new region at first you can send a manager from the other branches so that they can see to it that the business is running smoothly. But it is important that you also include people from the country for they may be more knowledgeable with regards to issues in their country. Also they help in issues like language barrier, culture crush or any troubles that might arise from the market. The staff also help in pitching in with ideas, with regards to, trends and preferences of the new market. Ensuring that you have a good and reliable supporting staff and employees is one of the major keys a successful business. The employees should be trained and taught about the company’s moral code of conduct and warned of any repercussions of not following it. This ensures great discipline in the work environment (Donaldson, 1997).

Finally, is establishing a relation with the producer, distributor, supplier and the consumers. Since the four categories play different roles, it is important that contracts be drafted that clearly shows the working relationship (Donaldson, 1997). The customers play the greatest role when it comes to the success and profitability of any business therefore, it is important that they receive quality products or services and in the event of any hiccup there should be a stable customer care service to assist the customer. For the producer, suppliers and distributor, all their roles should be clearly drafted and terms for the said partnership and what might deem the contact null void. This is to prevent any problems during the running of the business. But in all these three things will help to guarantee the success of a business with regards to the ethical standards and that is respecting each human and all their human rights and the harmonization that comes from accepting our differences and unity.

Reference

Donaldson, T. (1997). Values in Tension. Harvard Business School Press.

Product plan to Cuba

Introduction

    The world is globalizing and so many businesses are globalizing by expanding their operations to other countries. In this case, the business must have a proper and well enabling selection process that will ensure that the company is able to select the product which will enable it to meet the international market goals.  Therefore the business must make some considerations before expanding their businesses to other countries. Diplomatic relations is one of the considerations that are usually made so as to ensure that there are signed treaties with the foreign country so as to carry out business. Environmental regulations are another consideration that foreign investors consider so as to be able to plan on the way to overcome these regulations. Import and export regulations are also elements to be considered so as to effectively plan on the exit and entry of the products. There are two approaches that a company may use that is the systematic approach where the selection of the product depends on the overall demand in the market. The reactive approach is used when selecting a product depending on the instant market need.  The coca cola company is the global biggest company that produces drinks controls more than half of the worldwide carbonated soft drinks.

The target market for the introduction of Coca-Cola into Cuba amidst the current embargo regulations change is strategically advantageous (Davis 2016). The company has a well-established product in most world markets. Previous markets have led to marketing challenges and solutions to social and cultural issues that must be met for our marketing strategy to succeed.  This paper, therefore, will discuss the internal and external environment, the entry mode of selection, the international function and the analysis of the cost benefit.

Internal Environment

    The internal environment is essential in any business as it represents the factors that affect a business from within, this may include the finances, the human resources and the management in general. All these factors determine the strength or the weakness of the business. We have control over internal factors and have less or no control over external factors to the product introduced into the international market. The preparation of the market study involves four aspects, planning, leading, organizing, implementing and controlling.

    Planning:

     Planning for a new market involves making decisions on similar markets where success and setbacks have to be considered. The product manufacturing and distribution (M&D) processes are efficient for a U. S. market, hence Manufacturing processes will remain in the U.S initially until market support and security of brand can be maintained and limited to reduce risk in the emerging market. Future manufacturing processes can be considered upon the stability of the investing opportunity. Future manufacturing processes will be in a step approach as the market proves support to the product and can sustain stability.

The target market has the probability of a new direct market distribution; some products may be distributed into the target market by a third party distributor or direct ship.  Establishing a direct market with the country may involve political permissions on tariffs and taxation and this will be done by obtaining all information to third party distribution as it exists and deciding whether to incorporate or directly compete with third party companies in the cost comparison.

    Political and social planning will be addressed with legal and governmental systems to allow the export of the product to the region. Political cost determination on taxation requirements and fees to the import of goods for sale is required for a cost analysis to determine if direct product import is cost effective. A cooperative political environment is essential for direct U.S. export / import, hence planning can be considered for third party market export if there is support from the political environment.

    Product branding is worldwide and acceptance into the new market will be based on social and cultural perceptions of the U.S feelings and branding of our product as a world brand not just as a US brand.  Marketing and Distribution processes will address the export of the product to test markets as the market allows and it will as well focus on the Market success for the acceptance of social branding and product distribution processes which will be the indicator for full market import.

    Leading:

    An office will be established to coordinate and represent the executives and stockholders. A Vice president and a board of marketing sales, market public relations liaison, financial affairs, legal affairs and M&D will be represented to establish a guiding foundation for the new market and report to the executive board. This office will have the responsibilities, interests of the company and the shareholders at hand.   

    Organizing:

    Internal departments will be established for the new market to manage external distribution, legal, political, and social environments. Manufacturing and distribution (M&D) will remain organic and product volume can be absorbed for an initial market size until established. Future M&D processes may be moved locally in future as market and political barriers supports.  New organic sub-departments will be established within normal departments to focus on target market needs, marketing solutions, political and social considerations, norms and legal issues as they arise.

    A separate financial department will be established and develop financial channels and banking for monetary exchange, credit issues, and debt collection.  Cuba may not have an exchange agreement direct to the U.S. and third party system may have to be established. World banking systems or third party exchange agreements may have to be arranged. Separate balance sheets are to be maintained for the target market and consolidated by the leading financial division upon review. 

    Implementing:

    A two-tier approach will be accomplished for entry into the new market. Tier one will be limited to a limited pricing strategy, marketing approach, and shipment that can be established through drop ship containers or third party connections and with limited local liaison company establishment. Local team representatives will be established in the country to liaison with and to the governmental system and provide guidance for navigating regulation hurdles and barriers to local governmental agencies. The target market is governmentally limited in access to electronic communication and will be subject to limitation.  Marketing will be implemented locally but limited by governmental barriers; local advertising will generally be through primitive signage art and postings will be a primary requirement. Financial agreements will be established as regulation permits.

    Tier Two approach will address a more open market approach as assets and an opportunity presents security to product and production. Establishment of a local office for marketing, manufacture, and distribution is required as permits are granted by the countries government. Establishment of manufacturing process plant and direct ship of product in concentrated form to produce locally as market and political regulation permits.  A future local distribution branch will also be established to provide local distribution directly to wholesale consumer distributors as market and governmental permits are accepted. 

    Controlling: 

    The office established for the new market management will provide responsible reporting regarding the progress of achievement of company objectives and goals.  Reporting factors include:

1. Establish a Plan of Actions and Milestones (POA&M).
2. Maintain branding through marketing consistent with current company objectives.
3. Efficiency and competence of operations.
4. Reliability of monetary reporting.
5. Acquiescence with appropriate laws and code of practice.

This office will monitor the quality of performance over time, direct adjustments, and report to the executive office monthly for the first six months until six months of product distribution in the new market is established. Reporting may be reduced to quarterly as the executive office permits.

External environment

    Political and legal environment

    Coca-Cola Company being the leading soft drink producers’ worldwide, their sales must oblige to the rules as well as the regulations of that given country in which they are selling their products. For instance, some of these countries have some policies that limit the sale of the coca cola products. For instance, Canada has a policy that states that the maximum amount of caffeine that is permitted in a soft drink can only amount to 200ppm. Hence the company must oblige to the country’s rules and regulations so as to be able to sell their products. Thus, Coca-Cola has been unable to trade their products officially to two countries worldwide that are Cuba and North Korea due to the legal trade restrictions (Davis 2016). Thus according to the coca cola company, if their products are to be sold in these regions they must be able to overcome all these restrictions so that they can be able to export the products to Cuba. However, if the products are available in these places, then it means that the products are being smuggled without authorization (Hnatko et al 2014).

    Economic segment

    According to the research that has been carried out, the rate of inflation since 2006-2012, there has been a higher rate of food and beverage inflation in the United States. This has also been evident in Cuba and this has translated into customers having less money to dispose and to spend on the purchase of these products. This is also accompanied by an increase in the transportation cost globally due to the fluctuations in the oil prices hence the cost of transporting the products by the company will be higher. As a result of the economic instability, the profit margins have reduced due to the increment in the cost that is associated with doing business in Cuba. The company is looking forward on cost saving operations that would enable the saving of finances that would be used during the economic crises. Therefore in order to increase their revenue, the company is required to sell their products to those new geographical regions that they have not been officially supplying to and also they should also be able to expand on the production of their products so as to meet the consumers changing preferences and conduct (Hnatko et al 2014).

    Demographic environment

    Coca cola is non-alcoholic and therefore it targets on a wide range of consumers across all age groups with the largest group of the target being the teenagers and the middle-aged adults. According to the demographics in 2013, the worldwide population target lies between the 15-54 years hence the company is focusing on the largest population in the world similar Cuba (World Demographics Profile 2013). These potential customers of the coca cola products are viewed as a suitable strategy of the Company towards a sustainable growth.

    Social-cultural environment

    Currently, most of the people are looking forward to healthy lifestyles due to the increase in the health awareness that has led to social cohesion towards healthy living. To be specific, the consumption of the soft drinks has been linked to the cause of diabetes and this has resulted to the frightening off of the consumers as they move towards healthier alternatives (Hnatko et al 2014).  This has thus resulted to the Coca-Cola Company to lose the market as the demand for their products have reduced as the customers are substituting the soft drink with healthier beverages. They have thus developed products that they have innovated with an intention of meeting the healthy needs of the people such as the diet coke and the zero coke so as to put up with their market share.

    Technological environment

    The company has been increasingly been using technological platforms so as to create awareness to the people and to advertise all their products. Through the use of these advertising platforms the company has been able to expose their brands to a wide population effectively and efficiently.

 With this, the company has developed the total quality that can be able to be accepted in foreign countries hence allowing the industry to be efficient in their operations and their supply chain management. However the access of the internet is relatively expensive due to the restrictions hence the Coca-Cola should ensure that they establish a good way to create awareness in Cuba and the technological development to adopt (Lobst 2016).

    Competitor environment

    The Coca-Cola Company is facing a lot of competition globally and this, therefore, calls for the proper business planning of the company so as to meet their objective. The company’s main goal is to continue with the sales of its diet carbonated beverage in developed markets. This is to mean that the company will be able to introduce the product in Cuba since there is the increase in the demand for the carbonated beverages in the emerging markets (Hnatko et al 2014). Also as the arising issue of health and the wellness is increasingly shaping the soft drinks industries, the Coca-Cola organization is working hard to ensure that they increase the production of the non-carbonated beverages so as to increase the sales in the market by conquering the other companies. The company, therefore, has to strengthen their brand loyalty, invention and expansion of their products into other product categories in the beverage industry.

Entry Mode Selection

    Distributions channels are basically run by the State. The retail network is established into three primary channels Liberta (ration system), Government owned chains (non-ration) and Very small private retailers (locally made product vendors). Licensing with the US and Cuban government is critical and once obtained, process controls are organized with Cuba’s Ministry of Trade. Internal channels of Logistics are much undeveloped in terms of abilities.

 Since Cuba has such a harsh business climate, care should be taken for how costs are returned to the company.  Lobster stated that “Cuban companies are state run and the government retains majority ownership in the holding company” (Periu 2015).  The average people in Cuba earn about $20 per month not leaving much for luxury items and have a “resolver” as American Express explains it in their open forum website (Periu, 2015).  The black market is alive and thriving and demand for luxury items is lower than some. However, a market will exist and options are available for entry into the market.

    On 26th of January 2016, the New York Times reported that the revised rules for export will allow banks direct financing export of any product. US banks are sanctioned to “receive, process and provide value to” US dollar “financial instruments” existing indirectly by a Cuban bank that is, by a third-country bank (Lexology, 2016) Currently we will have to set up a correspondent account with Stone gate for monetary transfer of funding in compliance with current regulations and Cuba.

    International Operations is a planned and progressive endeavor in the new market. Initially, a complete all rounded product will ship from a third world plant which will be authorized to be received in Cuba upon acceptance of payment.

Distribution and marketing will be limited to government-controlled distributors in Havana (Tracy, 2016). As sanctions and restrictions are changed, if advantages exist, future holdings and joint ventures could be obtained in local bottling and distributions plants. 

International functions

    As hotel and tourist industry breaks the barriers into Cuba, product availability will be a factor in providing the experience to consumers. The industry can cater to international travelers who have accustomed to safe and familiar products such as Coke a cola product. Operationally, we can provide safe and familiar product placement within the hotel industry by providing a worldwide known product.  Operations will be focused on the input of a distribution chain with well-known hotel chains such as Marriott, Ibis, and Shangri-Labor and cruise industry partners. These operations are established with restaurant and bar provisions and can be a lucrative investment for initial product distribution. As these partners are world widely known and established financing and contracting can be garnered with international agreements and distributions channels will be two tiered.

    Initial input of materials and sustainability consumer goods will be established locally for the hotel chains and duty-free areas the hotel's service. Airport and an international site can be established with similar customs agreements to other countries we service allowing for the unique regulations Cuba might offer. The second tier outside customs and duty-free distribution channels can be established separately as described in future operations goals. Hotel chains may manage product internally or as operations and logistics channels are established with the state government be developed for normal deliveries as established with partners (Czinkota 2007).

    Financing will be approached from the most efficient means available while the internal product distribution with international partners will be established in tier one. This is a normal distribution and state regulations and financing can be resolved with our Southern American subsidiary. However, direct distributions will be more complex.

Cost-benefit discussion

            There should be implementation of startup and establishment of carries inherent risk and the potential to produce long-term profits.  Teams established will have to evaluate the cost of capital and the inherent risk of asset loss. Establishing an early foothold with consumer base is a strategic move to gain market. The tourist industry is an early and new market to gain an initial growth potential with the added bonus for business to resist change in this limited market.  The tourism and hotel industry will establish a market for initial product placement. 

    The initial goal is to establish contracting and shipping channels for the products within the industry.  Startup cost assesses to host country and initial product distributions introduction will carry initial cost and risk.  Startup distribution can be established at direct cost for the hotel industry to provide product to consumers of the tourist industry.  The second phase is to create distribution channels to startup for direct cost introduction as channels are approved for public consumption distribution. Phase three will be for direct market distribution as bottling facilities are established either through Greenfield establishments or acquisitions. Cost increases and risk increases with Greenfield established enterprises, depending on state-run regulation and requirements.  Acquisitions of bottling manufacturing will have to be assessed for upgrades and new modern equipment.

    In Cuba, land and buildings are not considered assets of the corporations. Established markets have a minimal approach to modern facilities and Greenfield establishments as compared to new acquisitions hence this may not be economical cost saving. Greenfield investments have a higher risk and loss ratio in the initial phase of entry.

Exporting through partnerships is desired in the first phase, and future joint ventures may produce possible channels as relations with the US and Cuba is established.

    Distributions channels are similar to what is already established in that region of the world. Cost increases will be dependent on the state’s regulations and facilitate fees required to pass customs processes and agreements.  Distribution channels cost for planning and establishing reliable channels of shipping and receiving facilities is paramount to stability and customer satisfaction.   The largest benefit is long term market share in establishing a foothold in the country before the competition. Once distribution channels are established and stabilized the strategic advantage is gained and resistance to change. The initial lack of competition with major U.S. branding will gain advantage long term benefits.

Reference

            "World Demographics Profile 2013." World Demographics Profile 2013. N.p., n.d. Web. 16 Mar. 2014. Retrieved from:  http://www.indexmundi.com/world/demographics_profile.html

            Davis, J. (2016). U.S. Eases Restrictions on Financing Exports to Cuba. Nytimes.com. Retrieved 10 July 2016, from http://www.nytimes.com/2016/01/27/world/americas/cuba-us-trade-embargo-exports.html?_r=0

            Czinkota, M. R., & A, R. I. (2007). International marketing. United States: Thompson.

            Hill, Charles W.L. (2015).  International business: competing in the global marketplace (10th ed.).  New York, NY: McGraw-Hill.

            Hnatko C, Sidhu R & zhang L. (2014). The Coca-Cola Company: case synopsis.

            Lexology.com. (2016). Partial Opening of US Financial System to Cuba and Easing of Other Trade Restrictions | Lexology. Retrieved 10 July 2016, from http://www.lexology.com/library/detail.aspx?g=c08e7906-a981-4eb0-913f-712cafb454f7

            Lobst M. (2016). Dream of doing business with Cuba may be a nightmare | LVB. Lehigh Valley Business. Retrieved 27 July 2016, from http://www.lvb.com/article/20151012/LVB01/310089994/dream-of-doing-business-with-cuba-may-be-a-nightmare

            Periu, M. (2015). What you should know about doing business with Cuba. Retrieved 10 July 2016, from https://www.americanexpress.com/us/small-business/openforum/articles/evaluate-cuba-opportunity/

            Tracy, F. (2016). U.S., Cuban Banks Agree to Form Financial Link. WSJ. Retrieved 10 July 2016, from http://www.wsj.com/articles/u-s-cuban-banks-agree-to-form-financial-link-1437554458

There is an increasing perception of airports as enterprises rather than as just public services so that they are expected to break even at best. The driving factor has been the realization by private investors and other airports stakeholders’ potential in airport business in the domestic and global markets, governments need to igniting competition and depoliticize decision making process. The fiscal stress associated with operating the airports is another major reason for the privatisation efforts

The intention by the governments to look for ways of making airports efficient, competitive and more importantly financially viable as much as possible has a trend of privatisation of the organisations. The main objective of this strategy has been for the governments to gain access to the private capital for development. This driven by the realization by the leading airport officials and operator groups for merged airports that there is a lot of potential in airport business in the domestic and global markets (Ernico, 2012). The governments have also aimed at stimulating airlines and air service competition since the process of privatisation ensures that management of the airports compete to offer the best services to airlines and passengers and thus improve on quality. In addition, there is the need to obtain maximum returns for the communities from airport assets through monetization. The other reason is the introduction of more innovative entrepreneurial ideas within the airport where a government can get non-airline revenues from taxes on such creative businesses (Carneya and Mew, 2003). The governments also aim at offloading the burden of fiscal policies by shifting risk of capital development, debt and the airport operations to private sector. The governments also aim at accelerating delivery of projects while at the same time de-politicizing decision making at the airports.

The privatisation of airports by governments has become a trend due to many benefits the process brings about as compared to related risks.

References

 Carneya, M., Mew, K. (2003). Airport governance reform: a strategic management perspective.

 Ernico, S., Boudreau, D., Reimer, D., Beek, S. (2012).Considering and Evaluating Airport Privatization

 A change in a firm’s ownership has effects on its performance since different owners usually have different goals and incentives. When an airport is under government ownership, it is operated by bureaucrats whose main objective is social welfare function or their personal agenda. When an airport is privatised, its main objective is to maximise on shareholders’ value thus a pursuant for efficiency in productivity.

Change of airports management from government to private ownership makes the firm to focus its operations more on commercial basis instead of being under the guidance of non-economic political goals. This means that the new management will put much efforts to improve on the efficiency of the firm in terms of operations and overall service delivery to customers. The operations will thus be focused on the customer needs and thus strategically orienting the activities towards better services which will eventually translate to increased shareholders’ value (Kan et. al 2014). The change in ownership will also enhance airports competitiveness since enhanced service delivery will attract strategic alliance among global dominant airlines.  The strategic alliance among airlines will positively influence the efficiency of the airports as the airlines can share the airport facilities in handling more traffic. The removal of political influence in the decision making comes with a lot of deregulation which removes the bottlenecks to effective decision making. The deregulation unleash various forces that drive the desirability of airports as business opportunities and this finally translate into competitive strategies applied by the organisations to attract more airlines and investors. Airlines are a big competitive force in the aviation industry and come with new business models to outdo one another (Carney & Mew, 2003). This makes new airport management to consider news of offering value to airlines as their main clients.

Therefore, performance of airports depend on the new management arrangement and objectives. It is also determined by how the new management approaches the conditions of the market and competition in which the airports operate.

Reference

Carney, M., & Mew, K. (2003). Airport governance reform: a strategic management perspective. Journal of Air Transport Management, 9(4), 221. doi: 10.1016/S0969-6997(03)00003-6. 222-224

Kan Tsui, W. H., Balli, H. O., Gilbey, A., & Gow, H. (2014). Operational efficiency of Asia–Pacific airports. Journal of Air Transport Management, 4016-24. doi:10.1016/j.jairtraman.2014.05.003. 21-22

The need for airports to be self-sufficient financially and to have a profit maximization objective plays a big role in the determination of charges set. The pressure to maximize profits has seen airports result to balancing the aeronautical revenue and the non-aeronautical revenue. The major factors influencing costs and revenue relates to the policies set by various authorities for the aeronautical revenues, concessions among airlines and others charges that may be imposed on airlines.

The policies set by ICAO guidelines provides some guidelines on principles that airports use for business among all the countries. The aeronautical revenue, the landing charges should be set according to the formula for aircraft weight. The maximum take-off weight is a measure that is used while setting local restrictions. Allowance is thus supposed to be made while using fixed charge for every aircraft or combination of weight-related element and fixed charges in some situations like peak periods and congested airports. The aircraft dimensions, permissible take-off weight and length of stay is a basis used to set charges relating to hangar and parking charges (Vojvodić, 2008). The basis is also used in determining landing fees, surcharges or rebates and passenger charges. These determine the costs.

The concessions operations also determine the revenue and pricing policies of airports across the globe. Factors such as subsidies form concessions and aeronautical operations may also determine the marginal-cost pricing on operations at the airport. The concessions are determined by traffic handled by airports, behaviour of passengers and concession management which also determine the commercial revenues. The un-aeronautical revenues are also determine by the strategies adopted by the firm such as marketing plans which affect the activities that generate revenue in the airport (Bilotkach et. al 2012).

In essence, amount of revenue collected and cost associated with airports are primarily influence by the aim of the airports to at least break-even. Polices and other factors that restrict charges are all aimed at ensuring efficiency of the airports in profit making and service delivery.

References

Bilotkach, V., Clougherty, J., Mueller,J.,  Zhang, A.,(2012) Regulation, privatization, and airport charges: panel data evidence from European airports. 76- 85

Vojvodić, K. (2008). Airport concessions. 96-97

Benchmarking refers to a technique that evaluates the performance of an organization with an aim of monitoring and improving the operations against a standard. Benchmarking is used by airport management for improvement and comparison of internal performance.

Airport benchmarking involves two comparisons which assist in performance measurement; internal benchmarking where the airport evaluates and compares its current performance with past performance; peer bench marking where the airport’s performance is compared against that of other airports over a certain period of time or at one particular time. It is a critical tool that allows an airport to evaluate core measures such as operations and passenger number which are important drivers to the overall performance (Wyman, 2012). The evaluation of these measures and comparison with other airports help to indicate performance efficiency of the firm in relation to competitors.

 Benchmarking also help to indicate the security and safety measures undertaken by the firm and whether they match the industrial standard. Such measures are supposed to be focused on customer service which significantly affects the competitiveness of the firm in attracting customers. These measures also include commercial or finance issues that relate to airport charges, financial power, its sustainability and how each commercial function of the firm is faring (Francis et. al 2002). Bench marking thus help the airport to determine whether the price charged are in line with laid down principles set by regulators such as ICAO (Wyman, 2012). These include focusing on cost effectiveness and productivity. This refers to the relationship between the output and input, and the cost needed for obtaining a nonfinancial output. The overall benefit include the comparison of the airport with others in regard to profitability, growth or decline on yearly basis.

In conclusion benchmarking process help the airports to structure the operations in a manner that will enable them achieve superior performance efficiency. It allows the firms to investigate best practices of external industry and include them into their normal operations to achieve profitability.

References

Wyman, O. (2012).Guide to Airport performance measures. Airports Council International.

Francis, G., Humphreys, I., Fry, J. (2002). The benchmarking of airport performance.240-446

Social Media Impact on Marketing

            Social media still have a vital impact on the marketers and the business owners as they start a new business.  This makes it easy for them to have the capability to reach out and communicate to the customers with their aimed target audience on a daily basis.  Social media benefit to the business can be called a game changer in that businesses that use the social media are more gratified with the outcomes than the hoc users who are more cynical about the benefit of social media. Businesses that use the social media as a way of planned approach are more likely to have increased revenue.  Social media posts for business can be used to drive targeted traffic as the owner would like the world to see the kind of business and bask in its brilliance.  This will not need one to beg for the audience attention as the social media brings all the attention.  Using the Social media will also boost the business as the audience will know which pages are earning the new traffic and which are just floating and ignored by the customers.  Driving the business to the sites will make the clients move faster to search for the engine resulted pages done by the business (Brown & Fiorella, 2013) 

            The challenges that can be caused by the social media include the fact that it can be time consuming.  This means that managing social media should not be time consuming as there are many ways for the business owner to manage whatever they are doing in the social media.  Thus the time that is consumed in the social media can be used to listen to the clients more effectively and to work on the other aspects of the business.  The other challenge is that the owner does not have the best time to tweet.  Lack of this time will depreciate the business engagement with the clients thus it is better to have the best time to tweet and know the business’ audience on the social media.  Another challenge is that the owner does not understand how to make a social media marketing plan for the business.  The most essential part in the social media marketing plan is putting clear goals for the business.  All the decisions that can be made without clear defined goals, the marketing plan will be ineffective. The other challenge can be the lack of knowledge to the owner on whether to use money on social media.  The business owner should know that social media has become the daily destination for many customers and many businesses are taking advantage of the benefit and have started to launch their businesses on the platforms (Brown & Fiorella, 2013). 

            Technology and the Social media have changed the landscape for starting a business as it tries to have its message understood by the customers. Online and the social media platforms have an increasing role in marketing which has important outcomes on how consumers, channels and companies do.  In the social media platforms where the customers give feedback on the social media about the business products where the feedback is seen to the other business agents such as the other customers, business partners, competitors and the investors.  There is the inherit variety in the way that the information is given and processed such as the rating reviews and the forums in which it is given.  The features of the social media basis have the beneficial outcomes of interest to the marketers and the business inferences (Burrow & Bosiljevac, 2012). 

Reference

Brown, D., & Fiorella, S. (2013). Influence marketing: How to create, manage, and measure brand influencers in social media marketing.

Burrow, J., & Bosiljevac, J. (2012). Marketing. Mason, Ohio: South-Western Cengage Learning.    

Market Segmentation, Targeting, and Positioning

            Market Segmentation

A segment of a market is a section of the general market with distinctive and specific characteristics.  This is in opposition to the general marketing where the market activities are directed to the general market (Mahnken, 2012). Market segmentation entails tailoring the market depending on the wants and needs of a specific market segment.  In regard to iPhone 6 plus the paper will be discussing on two different market segments which are youths and income.

The youths are the most influential on the growth of a product because of technological advancement adoption.  In the case of iPhone 6 plus the urban boomers are more likely to influence its growth.  Since the product as various applications, cool designs, cool colors, distinct usages, and innovation the youths are more likely to purchase the product.  Given the current rate of applications usage and benefits, the product will offer the necessary expectations to the youths.  Urban boomers can additionally utilize the phone to socialize, play music and access to scholarly materials because of its high speed.  The corporation will continue to pursue its old target market strategy as other market segments such as income and gender cannot be ignored. The youths segments are effective in raising the growth rate since the usability of the product will be increased.

            Youths and Income Segmentation

            According to demographic segmentation of the product age brackets that customers can thus be divided into distinct groups (Mahnken, 2012).  In the situation of iPhone 6 plus age, gender and income have several effects when consumers make purchasing decisions.  Income segment will ensure that individuals from all classes that have the will and capability can get access to the phone. It is obvious that the young individuals are the foremost class of fashion and therefore brain the product to attract the youths will be effective. In regard to gender, men are more likely to adapt to technological advances and changes than women and therefore the product should be developed in both complex and simplified form.

            In the category of psychographic segmentation societal class can thus be described as the segmentation basis.  The market should thus be segmented rooted on distinct opinions, interest, self-images, values, attitudes, personality as well as activities. Different individuals are associated with distinct interest.  Those that are interested are therefore the individuals with the high attitude towards technological advances.  Additionally, individuals from distinct lifestyle and personality will influence the choices. The target for the phone is based on individuals with innovation curiosity and fashionable lifestyle.

The other segmentation should be based on use rate segmentation.  This involves the segmentation of both brand loyalty and status awareness. This implies that the higher the rate of utilization the higher the chances of purchase (McDonald, & Dunbar, 2013).  Consumers can, therefore, be differentiated based on product knowledge. This is because individuals will understand the functionality of products is more likely to purchase the product.  Most individuals will opt for the product because they have prior utilized other products that are similar.  For the youths, benefit segmentation implies that they will acquire more benefits since they are more involved with Apps and socialization.  Convenience, designs, applications ranges are bound to attract the youths more (McDonald, & Dunbar, 2013).

            Positioning Strategy

            In the iPhone 6 plus scenario pricing and competing strategies can be altered. The product is highly priced thus reducing the chances for individuals from the middle class to purchase the product. Lowering the product price will ensure that individuals from all income brackets with the will and capability and able to access the product. This can involve lowering the number of application and several features.  The design of the product can also be transformed to suit the different prices without removing the suitability.  In competing with distinct phone products the phone is necessitated to add several features to overcome competition.

            References

            Mahnken, T. (2012). Competitive Strategies for the 21st Century: Theory, History, and Practice. Palo Alto: Stanford University Press.

            McDonald, M., & Dunbar, I. (2013). Market segmentation: How to do it, how to profit from it. Chichester: John Wiley & Sons.

Retailing — Consumer Perceptions

            Green grocery retailing shop is one of the best retailing businesses as it offers products that are basically important in our daily lives.  The prices of these goods are relatively low and the products are in most cases fresh from the farms.  The grocery is spacious and thus there is no room for congestion. The neighborhood store is a restaurant which is another retailing business and this is quite advantageous as the restaurant purchases goods from the grocery store. This is one of the stores that I often visit due to its suitable location as it is located along the main road at the outskirts of the town and it is easier to access. The grocery has a large space allocated for parking and the fact that it is located at the outskirts the space is quite adequate for all its customers. The store maintains cleanliness as they deal with food staff hence they have to maintain a high level of hygiene. The store is set up in a commercial building and the lighting system is well installed in the store. There is little competition from only one grocery which is located near the store.

            However this store is quite attractive from inside and from outside as there are flower pots with fresh flowers outside the store and the store is well painted. The aisles are wide enough to accommodate for customers getting in and out without colliding. The interior lighting is perfect while the employees are proficient in their work and thus they ensure that they serve their customers effectively and fast hence reducing crowding. The store is cool with limited noise while the shelves are organized properly for easier access of goods. Customers are allowed to physically inspect the products before purchasing while the goods are adequate for everyone. Quality shelves, knowledgeable salesperson and broad assortment choices are offered in the store so as to ensure that customers are served effectively. Pricing is affordable and discounts are often offered to customers.

Marketing Personal Plan

            I am an intelligent student, 26 years old, looking forward to graduate as a double major student in Human resource and general business. I am an ambitious person always proud of integrity, personal growth, responsibility, and always passionate for continuous learning due to the fact that I am not yet having any experience in the field. I am determined to fulfill my vision and dreams by creating good results for the organization and this is through working according to the organization objectives (Shouse, 1995). I will embrace challenge and pursue excellence throughout my career in human resource in addition to the skill acquired in general business. My goal is to see myself as a manager in one of the big organizations and companies in future.

            Despite the fact that I do not have experience yet, I will be in position to apply the theoretical skills to perform my duties. Additionally, I am always determined to learn and if given the opportunity, I will be able to utilize and get equipped in the field. I want to get a job in the field of human resource. The knowledge in general business has taught me a lot in business functions and this can help in making appropriate decisions according to the organization’s goals. I have set for myself a time frame of achieving my goal and this is maximally 7 months. In this period, my priority will be how to get established in the organization. I strongly believe that I will achieve my goal regardless of the fact that I have no any recognized experience in the field. I am positive about my success and I can accomplish that goal within the set time frame despite the challenges and obstacles that do arise in the field. Achieving such a goal opens one to more opportunities in future (Shouse, 1995).

References

Shouse, D. (1995). Making your mark: how to develop a personal plan for becoming more visible and more appreciated at work.

Persuasive message

Part 1

            This is my part time job where I am selling sports clothes and shoes. We are selling all types of sports shoes but there is one brand of shoes that multiple customers are asking for. There is this brand of the sneaker shoes known as Skora running. When selling our products to the players we should mainly focus on the mostly wanted brand where we should be considering marketing them on mobile basis as we ensure that we get our point out to the customers fast. Players are constantly on the move are doing their sports shopping more on the shoes that on the wears.  They are using their technical skills to compare the sport wear shops on the fly, by getting our products out there where they can have a better access will be a greater set up. We should also be able to tell the great features about the shoes and make it easy to understand.  The customers do not want to search for the shoes in many places but they want it on our own shop. It has been predicted that Skora sneaker shoes will unseat Nike and be the most top seller basketball sneaker shoes in America this year.  The Skora basketball footwear sales have been trending as a $ 160M in the yearly sales rate over the past few decades where the other brands of sports footwear has been trending at $ 150M (Thill, Bovée & Cross, 2005). 

            The trending of the Skora shoes is viewed as the main cause of the UA having a stockholder of under pricing its shoes. Thus the average price of the other shoes has been lessened in the industry. The trending of the most demanded Skora shoes could also bring an end to the other basketball footwear dominance. It is true that Skora footwear becomes the next women running footwear.  The Skora product has done very well but there is not a lot of it in the marketplace right now, but it has been researched that the other brands are more than 90 % of the basketball sneaker market in America. If the brand is likely not to sell well as expected it may be of it being sold on higher retail prices or has increased supply. This may depend on how the customers care about the price, thus the more the price the brand is charging, the more it is likely to lose the customers. The customers always mind about the worth of the footwear thus comparing the price and the worth of it. Thus the company should create a chance in the industry in that the brand is maintains the customers with average prices and more supply (Thill, Bovée & Cross, 2005).

            I had to do my presentation on the corporate meeting as a channel of delivering my message to the boss so as everybody in the meeting could stand and outline their own opinions as I work with the current and the cultural conditions. As we are planning to stock the already known brand, the company has valve a powerful arousing set off which is working and produced a new and important manner in our sales force.    

Part 2

Sales pitch

            I welcome all of my customers to view and to purchase our new product which is new brand basketball footwear known as Skora sneakers. The footwear is whole different from the others as they are smooth when worn.  When you look at the stylish design of the shoe, you find that the quality of the material used to make the shoe is worth for its price. The shoes have their own comfort, they are soft and flexible in which it allows one’s feet to flex in any way.  If the sports commission allowed a pair of bare foot basketball shoes, Skora could be the end results.  I would assure that Skora footwear is the Apple of basketball shoes.  If the customer is wearing red sportswear, then white Skora footwear would match the customer’s event wear.  If there is a customer who is not shopping for any activity, we have a variety of colored shoes in which they should choose for their choice. We have all brands that the customer prefers in terms of size thus the customer can choose their option. Our new brand may be of a high price but its worth talks of it.  The Skora sneaker seems to have hit on something that is ideal for the player.

            My sales pitch is on a dialogue with the customer. The reason as to why I opt this channel is because an effective sales pitch is on a two way conversation where one listens to the customer and asks actual questions and give them a solution to the challenge they are having. A good sales pitch starts with impression, the sales people work hard to ensure a positive result.  If one wants to have a presentation that holds the listener’s attention, it is true that the more the attention, the higher the chances of winning the clients over. Gaining the customer’s trust means being fully prepared with all the information and a pitch that embraces the purchaser in the claim. It is clear that effective sales pitches needs good work and more tasks to drift from the manual. Making effective sales that are mutual is away that is made through experience. This is all due to the fact that a sales pitch is no longer the pitch in a way that one throws information to the customer as a player.  If you have already won the attention of the customer to listen to your presentation, you should get into the presentation fully prepared (Davis, 2011). 

One should keep the pitch on message and keep it actual in that you will be able to retain the customer’s attention.  If one has little anxiety its okay but what matters most is the confidence in the information one is giving in the sales pitch. One should be aware of the product, know the buyer and be ready for any protestation. The submission of referrals is important as one show that they have a good connection with them as they are also potential scenarios. These referrals may help the customer to perform a sale than any other way thus the customer who adheres to the product will be happy to spread the news of the product.  All the sales pitch should end with a call, this means that even after listening to the customer, don’t keep quite after presenting the sales pitch to them.  Although the customer is not ready to complete the purchase, ensure that you keep the scene and carry on with the convention or the test time.  The sales person has the responsibility to make the call and maintain the contact with the customer as failure to this will end the connection before you have met the aim of the sale (Davis, 2011).  

References

Thill, J. V., Bovée, C. L., & Cross, A. (2005). Excellence in business communication. Toronto: Pearson/Prentice Hall.

Davis, K. (2011). Slow down, sell faster!: Understand your customer's buying process and maximize your sales. New York: American Management Association.

Coca-Cola Marketing management

Introduction

Coca-Cola is simply referred to coke which is a carbonated soft drink that is produced by the Coca-Cola Company. The company originated in Atlanta Georgia in the late 19th century. The company has dominated soft drinks production worldwide. This can be accredited due to its marketing strategy it has implemented in the world. These drinks are produced by the ingredient of kola nuts that is a source of caffeine and coca leaves. In maintaining its success the production formula of the Coca-Cola remains a great trade secret though there have been many recipes published and experiments made.

The Coca-Cola drinks are produced in a standard way. There are several brands of cola drinks produced under coke brand name. They include diet coke, Coca-Cola zero, Coca-Cola vanilla and cherry. This comes with special versions such as lemon, lime, and coffee. These varieties of soft drinks are meant to capture the versatile market to capture the differential taste preference of people in the world. This means that coca0cola drinks are not the same for every person. The company produces a nonalcoholic version of drinks which include drinks like sprite, Fanta, bitter lemon, ginger and other drinks. This forms a wide variety to consumers as they have a wider choose of products to choose from. This is greatly contributed by the fact that the first Coca-Cola prototype was formulated on medical grounds as it was believed that carbonated water was good for health.

The marketing strategy of the Coca-Cola company is a policy that many company’s aims at. It has been able to establish itself well in the marketing field. The company has invested a lot in advertising its product worldwide. This is one strategy that has made it remain relevant through the years as the adverts are made from different countries from time to time and advertised in many channels so that it can reach many people showcasing happiness of consuming their product. The company has also strategized it marketing policies through promotions. These promotions differ from countries where these products are sold. The promotion includes items branded the company name and also drinks at discounted prices. it has also been successful because of the facts that it has made it product in the very same standards and it has never compromised its drinks.

Pepsi and other companies have tried for years to surpass Coca-Cola without success. This is because as much as the effects that Coca-Cola puts in place the loyalty of its customers is paramount. This means that all the other companies have to win customers loyalty and increase market-based to surpass Coca-Cola. With the increase of health awareness, Coca-Cola faces a great risk. This is because people are turning to non-carbonated drinks due to health issues. This poses a great threat as there have been a decline in the sale of carbonated drinks and an increase in non-carbonated ones.

Conclusion

Coca-Cola is a company that has established itself well in all marketing aspect due to the policies laid down. Much has to be done by Pepsi and other companies that need to be successful and surpass the Coca-Cola. It management is well established and hence better coordination in its strategy implementation. To enhance its success Coca-Cola has managed to keep its production formula a secret over the years which other company’s need to emulate.

Reference

SWOT Analysis

1. First Steps
   Areas you have studied (disciplines in IDS):
   sociology
   2. Business management
   
   how do these two areas relate/intersect?
   The two areas interact in that; business management will often involve venturing into various methods that are geared to improve the business organization, enabling it to meet its goals. Since most businesses target people as their customers, sociology will help in understanding their nature and how best to serve them. Understanding how society functions will help in business management because it will help in identifying various aspects of society that could be used to an organizations advantage (Augsberg & Henry, 2009).
   
   What attracted you to these fields of study?
               Most employers in the private and public sectors and a variety of graduate programs give first priority to students who have attained a course related to business in their undergraduate degree programs. This realization is what led me to pursue these fields because they would assist me in securing a good position in pursuit of my graduate program and also enhance the chances of getting good employment after school. The two fields are also interlinked which means I can enhance my knowledge and become better at both.
2. Focus and Discovery
   Brainstorm/List
         1.  The success of an organization depends on how it relates with its customers
         2. Competitors also determine how an organization will perform in the market
         3. Organizations ought to consider the needs of the people it associates with
         4. Is it the products or the absence of competition that determine customer purchase?
         5. There is a need to outdo competition and ensure the target market selects the     organization products or services (Pahl & Richter, 2007).
   Narrow the List/Define Your Ideas
         a. organizations need to understand the position they hold in the market
         b. regardless of competition, organizations must find a way to survive in their market
         c. there is a need to identify opportunities in the market and use them as an advantage
         d. what tool or method can be used to assess all these aspects?
         e. would a SWOT analysis meet all the needs identified?

Are there any current events or advancements that have changed or impacted your field(s) of study or interests?

The advancement of technology has brought about various changes that have impacted my fields of study in various ways. In the past, people relied on face to face interactions when exchanging goods and services and other various forms of transactions. The advancement of technology has brought about changes in which people interact. With the use of computers, people can do business online with little or no physical contact. This has impacted my fields of study because I have to factor in the importance and challenges brought about by these changes and also the effect that they have on society as a whole (Snelling, 2012).

If you could change one characteristic of or law governing your subject, what would it be? 

            One characteristic I would change is how organizations use the information collected after conducting a SWOT analysis. Most organizations pay more attention on the weaknesses and the threats they face and then invest in ways to overcome the. Few rarely focus on the strengths and opportunities without realizing that they could be used to resolve the challenges that may arise. A change would be one that sees to it that organizations pay close attention to all aspects of the SWOT analysis and give equal attention to all areas addressed (Anja, 2013).


List of areas relative to the topic of SWOT analysis

1. SWOT analysis is an effective tool to assess the position of an organization.
   2. How effective is the SWOT analysis in planning what approach to take
   3. How can one conduct an effective SWOT analysis
   4. Is there a substitute that can achieve the same results as a SWOT analysis
   5. Who is responsible for conducting an organization’s SWOT analysis
   6. Since other organizations will conduct their own SWOT analysis, how can one organization ensure it benefits more than the others
   7. What is the cost of conducting an effective SWOT analysis
   8. Will the information collected be reliable and can it be used as a base for implementing changes in an organization
   
2. Choosing a Topic

A question arises on the importance of conducting a SWOT analysis for an organization. For most organization, knowing the internal strengths and weaknesses and external opportunities and threats  play an important role in determine the type of approach that the organization can take in the constantly changing market environment. This information is essential because it helps management to identify areas that can be exploited so as to give the company a competitive advantage. It also helps in identifying areas that may be causing problems and facilitates their correction to prevent problems from arising (Fine, 2009).

A list of questions to will explore within the paper:
    1. Can a SWOT analysis be used as competitive tool?
    2. What are the advantages of a SWOT analysis to an organization?
    3. Who is responsible for conducting the SWOT analysis?   

Rough draft of ideas:
    a. do all organizations stand to benefit from SWOT analysis
    b. how often should a SWOT analysis be conducted
    c. what are the methods employed in conducting a SWOT analysis

4. 
   Writing Your Thesis Statement
   The topic: SWOT analysis
   Major issue: an organization’s SWOT analysis gives an organization a competitive advantage

Three reasons: it is easy to conduct, notifies the organization of the opportunities to exploit and   the challenges that need to be addressed.

Thesis statement: A well implemented SWOT analysis gives any organization a competitive        advantage as it reveals areas that could be exploited to the organizations advantages and             challenges that need to be addressed so as to achieve the set goals.

References

Augsburg, T., & Henry, S. (2009). The politics of interdisciplinary studies: Essays on       transformations in American undergraduate programs. Jefferson, N.C: McFarland & Co.

B, H. A. (2013). The Swot Analysis. Grin Verlag.

Fine, L. G. (2009). The SWOT analysis: Using your strength to overcome weaknesses, using             opportunities to overcome threats. Place of publication not identified: Kick It.

Pahl, N., Richter, A., & University of Applied Science Berlin. (2007). SWOT analysis: Idea,        methodology and a practical approach. Munchen: GRIN Verlag.

Snelling J, (2012), “The Influence of the SWOT Analysis in Organizational Development            Strategic Planning” GRIN Verlag

PRICING STRATEGY

            Pricing is one of the core elements of marketing mix strategy. This element produces a turnover for the business. This element6 must support the other elements of the marketing mix such as the product, the place and the promotion. Though pricing of the product is difficult in the company but it reflects the relationship between the supply and demand chains (Kotler & Keller 2010). This company use variety of pricing strategies that are based on the company’s distinctive marketing target and objectives. The company largely uses the premium pricing strategy which involves the act of the company to keep the price of the products artificially high so as to promote favorable insights among the buyers basing exclusively on the price. This act is aimed at exploiting the trend of the customers to assume that the expensive products being sold by the company are of brilliant reputation than that of other companies producing the same products (Peter et al 2016). This strategy helps create an exceptional image in the eyes of buyers as they tend to believe that these goods produced by the company are reliable, more desirable with extremely high quality and distinction. This strategy will attract customers who are willing to pay any price for a tendency which is the objective of the premium pricing strategy.  The mostly target customers are the youths as they are unique and they are the generation which wants the latest trends as they are constantly evolving with time. This is quite a challenge to the company since they have to ensure that they entertain their customers by ensuring they innovate and create goods according to the current trend. Around 150,000 customers will be needed so as to enhance the company to attain its financial goal. A properly planned marketing strategy is highly recommended for the company so as to ensure that they are able to meet this demand of goods without changing the quality of the foot wares produced.

 Distribution strategy

            Distribution strategy in the company is important as it involves a strategic management of the manufacturing company specifying the methods that the company intends to use in transferring its goods to its customers. Distribution channels may be in direct or in-direct form that is involving of the intermediaries. Use of the best distribution channel enhances the company to expand its reach as well as developing its revenue. Therefore in designing a distribution strategy for the company I would recommend the use of both direct and indirect sales distribution. This is because the use of direct sales alone may not enable the large targeted group of consumers to be reached. Setting up of exclusive distribution where the company selects some intermediaries who specifically deal with the company’s products with the exclusion of other companies goods and this strategy will enhance the distribution of the highly quality goods (Peter et al 2016). Thus in setting up of different retail outlets in different geographic areas may be the core distribution strategy.  This would enhance more potential customers all over the country to be reached hence increasing the expansion of customers reach. These outlets will buy goods from the company in wholesale but they will sell the products at retail to the customers. This is effective as customers are able to get the company’s products at their reach.  Another core distribution channel that I would focus on is the use of the internet by the use of e-commerce where advertising would be done online and also the selling and buying of the product would take place online while the delivery may be made by the company’s distributors.  This is the current trend in market as the current world is globalizing hence most of these young adults mostly spend their time in the internet.

As a result of the internet use, the targeted market will be able to enquire and order for goods as they are assured of the systems convenience since one can purchase a good at the comfort of their homes with no need to travel to search for one. This therefore will require the business to create an ecommerce website where the online distribution occurs both to distributors and top end-users directly.

Integrated marketing communications plan

            This is the incorporation of both the modern and the traditional marketing strategies that are used to optimize the communication of a reliable message that conveys the organization’s brand to its customers. Integration of different communications methods has a greater impact to the customers as it adds value and enhances successful information transfer and formation of clearer and faster impact than that made individually. Thus the company in its plan decides on the various campaign mediums that they need to integrate so as to achieve the highest information transfer to the public. Advertising is one of the strategies that can be employed in the company so as to increase the sales (McALISTER et al 2016). This communication plan is interested on the devoted young adult social media users who are between the 18-45 years age gap. They are mostly found in the internet as most of the technology has changed thus they are able to visit the ecommerce website as well as shop online. They are also constantly involved in using the social media such as the Facebook, Google+, twitter to share their experiences, likes, dislikes and ratings of the company’s product and this helps the company to advance on their products and also this helps to increase awareness among the customers. This can be integrated with the use of televisions that is the broadcast media and the print media so as to enable the company to reach the targeted market (McALISTER et al 2016).

            Public relation will major its focus on creating mass media exposure where both the store and online sales will increase for the company not only in the manufacturing company but to the other extensive outlets. This will involve sending representatives to morning talk shows in the television and in radios with the sharing of links in the social media which will ultimately lead to the company’s website.

            Direct marketing and sales promotion will be carried out in conjunction with the public relations strategy. This will basically involve the creation of end user oriented promotional offers of the product where the promotions will be heavily invested during the selected time of the year especially on the media coverage. Social media will offer promotion through the Facebook and twitter followers who share most on the link of the company’s website. The promotions will be directly distributed to the direct targeted market. In store promotions will be offered at any extensive outlet of the company at a certain festivity period in a year.

            Personal selling where the company will assign some sales persons a task to undertake personal selling where they are able to personally advertise the company’s products. This allows room for interactive marketing as the customers are able to enquire of the prices and more clarification on the product. Different department should be tasked with the responsibility of the media campaigns where they should submit their reports monthly so as to track the progress.  Sales department are the core managers of this marketing plan. The marketing plan should be undertaken for duration of one year from which another marketing plan ought to be made from evaluation of the success of the previous plan.

To evaluate the plan there will be pre and post testing of the entire plan so as to get the right measurement of the success or failure of the plan. Formation of focus groups where the feedback from the groups after the direct and sales promotion is analyzed as well as the social metrics to measure success level.

BUDGET

References

Kotler, P. Keller, K.L. (2012). Marketing management. Retrieved from                 j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiZs8P9r53NAhUNahoKHSMRD                rMQFgglMAE&url=http%3A%2F%2Fsocioline.ru%2Ffiles%2F5%2F283%2Fkotler_keller_-                _marketing_management_14th_edition.pdf&usg=AFQjCNFtNoZB5yZxFZlfFFTmtVPE-                LBA4A&sig2=v4wSPIFCxknVH473TeT3ZQ

McALISTER, l, Srinivasan,R, Jindal, N, $ Cannella, A, A. (2016). Advertising Effectiveness: The Moderating Effect of Firm Strategy. Retrieved from               http://eds.b.ebscohost.com/ehost/detail/detail?sid=20834682- 053b-49d1-ad2e                 c786ffd1a519%40sessionmgr120&vid=0&hid=121&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d #AN=11                4259362&db=bth

Peter, J.P, Olson, J.C, & Grunert, K.G. (2010) consumer behavior and marketting strategy.           Retrieved from.   http://www.academia.edu/6078770/CONSUMER_BEHAVIOR_and_MARKETING_ST            RATEGY_CONSUMER_BEHAVIOR_and_MARKETING_STRATEGY