Research Articles Base: Case Study Marketing

Crack Jones Watson Mitchell Volker Case Study

CraikJones WATSON  MITCHELL VOLKER DIM Competition brief Young Person’s Railcar 1.0 Introduction This case study has been written by Young Person’s Railcar (ATOM) and Crack Jones Watson Mitchell Volker with the help of The Institute of Direct Marketing. Information about Crack Jones and Young Person’s Railcar has been provided solely for education purposes and should not, under any circumstances, be used for any other purposes. Permission must be gained from the DIM and its partners prior to the use of these materials outside the context of the DIM Student Direct Marketing Competition. All queries regarding the case study must be made in the first instance to the Dim’s Graduate Services Department on 020 8614 0272 or qraduateservices(5)theidm.com. Crack Jones or Young Person’s Railcar MUST NOT be approached without first contacting the DIM. 2.0  Young Persons Railcar product information 2.1       Background ATOM – The Association of Train Operating Companies – is responsible for the sales and marketing of three discount Railcars on behalf of the Train Operating Companies (Tics). Atom’s marketing budget is provided by the Tics – train operating companies like Virgin, Midland mainline etc. 2.2      Product The Young Persons Railcar (YORK) is a rail travel discount card available to anybody between the ages of 16 and 25, and full-time mature students. The Railcar costs £20 per year, and gives a discount of a third on most train fares (some First Class, and heavily discounted Standard Class, tickets are excluded). A minimum fare applies to peak time journeys made before 10am Monday to Friday. Even a moderate number of journeys allows Railcar holders to save money. For example, three journeys normally costing £30 would result in a saving of £30, or £10 more than the cost of the card. Crack Jones Watson Mitchell Volker Ltd   120 Regent Street London W1B 5RY T: 020 7734 1650  F: 020 7734 1649  W: www.craikjones.co.uk     2.3      Purchasing Most Ypres (97%) are purchased from station ticket offices. Others are purchased over the phone from Train Operating Companies (Tics), or from travel agents. At present it is not possible to purchase a YORK online. Purchasers require: •         A passport-sized photograph •         Proof of age (birth certificate, passport, driving license or ISIS card) .     £20 Application forms are available from stations, or downloadable from the website. 3.0 Marketing objectives 3.1 Primary objective To increase the penetration of YORK among 16-25 year-olds and mature students from 25% to 28%. This represents a direct revenue increase of £1.92 million (12%). 3.2 Secondary objectives To increase the average number of journeys made by YORK holders 4.0 Marketing budget 4.1  Total marketing budget £1.5 million for financial year 2006-7. (Please see 4.2 and 4.3 for mandatory budget split.) 4.2  Core marketing budget YORK has a core budget of £170,000. This budget covers: •     Station literature £170,000. Station literature consists of: leaflets (including application form) available from station leaflet dispensers (£140,000); Al station posters (£30,000 print and production. Media space in stations is provided free under Tics’ contracts). Core marketing spend as laid out in this section is a requirement of this brief. 4.3 Discretionary marketing budget Tics are obligated by law to offer fare discounts to young people and students. They are not obligated to support the YORK with marketing budgets. Nevertheless, the Tics have historically provided ATOM with a marketing budget of c. £500,000 per annum. (Please note that this figure includes the £170,000 used for station literature.) The other money not accounted for by station literature has in the past been used to produce and run half page/full page press executions. Sample titles include: FEM.; Nuts; Heat; Loaded, etc. However, in the wake of research indicating that YORK ownership promotes incremental train travel, the Tics have increased the total budget voted to ATOM from £500,000 (2005-6) to £1,500,000 (2006-7). After core activity has been taken from this budget, £1,150,000 remains for discretionary marketing activity. 5.0  Campaign requirement 5.1  Overall requirement An integrated marketing campaign primarily to increase penetration of YORK, and secondarily to increase rail usage among card holders. Proposals should include: •         Communications strategy •         Creative work •         Media plan •         Testing and measurement proposals 5.2 Mandatory’s Apart from the requirement to support YORK in-station (see 4.2 above), there are no media or creative mandatory’s for this campaign. You should feel free to consider the use of all traditional or non-traditional media channels (including digital and PR). For the record, ‘integrated’ does not mean ‘matching luggage’. We do not require that one creative idea be force-fitted into different media. We do require that all communications should promote a consistent overall message. 6.0 Target audience 6.1   Customer segmentation The customer base is segmented as follows: •         ‘Sixth Formers’ – all aged 16-18: 17%. •         Students at home aged 19-21: 14%. •         Independent students aged 19-21: 31%. •         Students at home aged 22-25: 5%. •         Independent students aged 22-25: 16%. •         Workers at home aged 19-21: 5%. •         Independent workers aged 19-21: 5%. •         Workers at home aged 22-25: 4%. •         Independent workers aged 22-25: 3%. It will be seen at once that students and pupils account for more than 80% of all Ypres, and independent students alone for almost half. 6.2  Train usage •         73% of 16-25s use the train at least once a year. •         24% use the train at least once a year for work/school/college. •         69% use the train at least once a year for leisure journeys. •         Among independent students and independent workers train usage has remained static 2002-2004. •         Among students at home (aged both 19-21 and 22-25) train usage rose 2002-2004. 6.3  Train rejection Reasons given for rejecting train travel (base: all 16-25s): •         Car more convenient 20% (down from 26% in 2002). •         Train too expensive 15%. •         Times/routes not convenient 14%. •         Bus/coach more convenient 12%. •         No station nearby 21%. 6.4 Competitive mode usage Competitive transport mode usage (long journeys; all 16-25s): •         Train most often 32% •         Train at all 59% •         Car most often 48% •         Car at all 67% •         Coach most often 17% •         Coach at all 42% Competitive transport mode usage (long journeys; YORK holders): •         Train most often 71% •         Train at all 89% (it makes you wonder about the other 11%, though) •         Car most often 28% •         Car at all 56% •         Coach most often 7% •         Coach at all 34% Leisure journey types (all 16-25s who make leisure trips): •         Trips with friends most often 40% •         Trips with friends at all 64% •         Visiting friends most often 19% •         Visiting friends at all 41% •         Visiting family most often 18% •         Visiting family at all 34% •         Trips with family most often 7% •         Trips with family at all 31% Why take the train if you have a car (all 16-25s)? •         Train is less stressful 32% •         Train is faster 25% •         Train is more comfortable 11% •         Train is cheaper 10% 6.5 Awareness of YORK •     Prompted awareness of YORK 60% (all 16-25s). o    ‘Sixth Formers’ – all aged 16-18: 52%. o    Students at home aged 19-21: 67%. o    Independent students aged 19-21: 77%. o    Students at home aged 22-25: 66%. o    Independent students aged 22-25: 59%. •     Prompted advertising awareness 28% (all 16-25s). o    Awareness of eligibility 54% (all 16-25s) o    Awareness of savings 53% (all 16-25s) 6.6  Reasons for not purchasing YORK •         Travel too infrequently 66% (all 16-25s) •         Haven’t got round to it 14% (all 16-25s) 6.7  Target audience: who are we talking to? All 16-25 year olds, but primarily: •         Pupils attending school, probably doing ‘A’ Levels. Horizons are just beginning to open up, what with having a bit more money, being more-or-less legally able to drink, legally able to have sex and so on. However, psychologically they’re still based very much at their parents’ house. They’re attending school (many will still have to wear school uniform, and at the best of times schools are rather rigid and timetabled), and have been doing so since they were four. Apart from weekend/evening jobs they’re financially dependent on mum and dad. The chances are they still need to ring home if they’re going to get back much after midnight. It’s not that they enjoy this state of affairs, but at the moment they have little choice in the matter. •         Students, both those living at home with their parents, and those who attend university in another town. Life has finally arrived: the workload is relatively light; responsibilities are few and far between; beer is cheap. Financially they are relatively independent, and much better off than they were when they attended school. Many have moved to a completely different part of the country, far away from Authority. Even those who live at home are now ‘adults’. All have substantially more control over their own life. •         Workers. Job, status and total independence (apart from having to turn up to work at nine o’clock every morning). They’re unlikely to be well-off, but are more likely to own a car and might well see train travel as a retrograde step. Encompasses a wide variety of lifestyles from people who still live at home, to poverty-stricken graduates hunting for their first flat, to 25-year-olds holding dinner parties and going on short breaks at the weekend. Credit:ivythesis.typepad.com

Crack Jones Watson Mitchell Volker Case Study

CraikJones WATSON MITCHELL VOLKER DIM Competition brief Young Person’s Railcar 1.0 Introduction This case ...

The Royal Automobile Association (RAA) Case Study Analysis Sample

Case 1: The Call Center of “The Royal Automobile Association (RAA)”   Businesses are developing and creating several measures to maintain their competitiveness with lower costs.  In the case of the call center of The Royal Automobile Association (RAA), they were continuously evolving through the help of their staff.  Even though the company offers high involvement working practices among their staff, they still consider the needs and other motivators for their staff. Basically, quality of work was highly considered in the company thus they imposed close monitoring of work done by their staff. However, despite of these practices, the company still gives bonuses and other rewards to those who performed outstanding. In the call center of The Royal Automobile Association (RAA), it is important to generate and maintain an effective reward system that would cater to the needs of their staff. The reward system to be offered by the company should come in various and concrete forms. According to Caruth and Handlogten, (2001, p. 1), these may either be monetary or non-monetary, tangible or intangible, and physical or psychological, and these are offered to the employees as compensation for the productive work they execute.             Furthermore, a formalized corporate reward system in the call center of The Royal Automobile Association (RAA) is necessary because it would appeal to capable and skilled people to fill the available positions in a specific organization. Additionally, such method would promote acceptable levels of turnovers because the present human resources would be encouraged to stay in the organization. Lastly, an efficient reward system would also motivate the workers to perform their responsibilities to the fullest degree of their personal capacities (Caruth and Handlogten, 2001, p. 1). Actually, Champion-Hughes (2001) highlighted the importance of high involvement working practices through good supervision, working conditions, pay and benefits as well as challenging and rewarding jobs. She said that these conditions will provide opportunities for employees to contribute in the overall effectiveness of the organization as they become more motivated and productive members of the company’s work force with positive self-esteem and improved morale. In the case of the call center of The Royal Automobile Association (RAA), the importance and demand for workplace learning through good supervision though is clearly evident. Today, workplace learning is changed into a productive business venture. In addition, believing that the most important asset of a business is the people in order to achieve sustained business success is really vital to the development and progress of The Royal Automobile Association (RAA). Realizing this leads to a strategic management of people within the organization. Its philosophy is based on the simple belief that staff are the most important asset in achieving and sustaining business success. Developing skills of persuasiveness and sensitiveness do not have the specific aim of giving people harder work, but rather provide the opportunity to provide meaningful relationship with people as well retaining those who are skilled and worthy of the company’s appraisal. Actually, the company created a good balance between their priorities.  One is by enhancing the competitiveness of their staff by continues monitoring of their work and giving rewards for excellent performance. And the second is through consideration of the complaints of their customers by giving a refund. References: Caruth, D., & Handlogten, G. (2001) Managing Compensation (And Understanding It Too): A Handbook for the Perplexed. Westport: Quorum.   Champion-Hughes, R. (2001) “Totally Integrated Employee Benefits”, Public Personnel Management, vol. 30, 3, p. 287     Credit:ivythesis.typepad.com

The Royal Automobile Association (RAA) Case Study Analysis Sample

Case 1: The Call Center of “The Royal Automobile Association (RAA)” Businesses are developing and creating several measures to maintain ...

Innovation

OBJECTIVES As a person with knowledge of innovations, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this issue and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how innovations are thought up, formulated and then imparted down into the subsidiaries of the company or organization. The author hopes to have an in-depth understanding as to how the innovations of companies enable them to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focussed upon i.e. innovation and diversity. Innovation was discussed with regard to organizational renewal and change where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.   EXECUTIVE BRIEF This essay utilized British Airways and Emirates Airlines as the model airline companies to review their present innovations and how they dealt with critical situations. From the analysis, key trends in the innovations were then identified, how they worked and their effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these innovative strategies with regard to their suitability to critical situations, during which the internal capabilities of these innovations in relation to the strategy being followed by the airline companies was determined also. An overall analysis of the performance and effectiveness of the innovations of both companies was also conducted to assess and compare the capabilities of these innovative strategies with those of others. Gaps in the innovations and environment were then identified. Finally, several choices of strategies to improve the innovations of British Airways and Emirates Airlines as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.  INTRODUCTION Innovations can be defined as the creative policies and tasks that lead to the efficient and effective functioning of the organization or company. Innovations are necessary to satisfy a firm’s customers, employees, and management. Typically, innovations focus on the careful management of the processes involved in the production and distribution of products and services (Amsden, 2001). More often than not, small companies and organizations don’t really have the capabilities to implement innovations. Instead, these companies engage in activities that various schools of management typically associate with innovations. These activities include the development of creative products, production and distribution. However, innovations deal with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with innovations. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, innovations include the analysis and management of internal processes. British Airways from the UK, and Emirates airlines from the UAE will be the model business entities that will be used in this research based on their history in innovations. OVERVIEW OF BRITISH AIRWAYS British Airways aims for sustainable growth as a broad market leader in the airline industry as well as for segment leadership. In both cases, the services of British Airways will play a crucial part. The company is able to establish its broad leadership usually by acquiring other strong airline companies and their services, which are then combined into a new, larger company (Bartlett et al. 1989).  Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various services of British Airways. This practically results in economies of scale that is able to create a distribution network for both the local and international terminals of the company. If a market is already in the control of other airline companies, British Airways devotes its attention towards the development of a premium segment with its various airline services (Hobday, 1995).             The mission of British Airways is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Striving in order to reach a leading position in attractive markets </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Focusing on securing a competitive share of the airline market segments. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Working in order to improve the company’s efficiency and cut costs in operations. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continuous growth through selective acquisitions for as long as they are able to create shareholder value. </li> OVERVIEW OF EMIRATES AIRLINES Emirates Airlines has four main objectives: A)   Remain one of the top companies in the airline industry. Being on top of its industry enables Emirates Airlines to command the respect and confidence of its clients. Thus, the company is able to expand its operations through the acquisition of other airline companies. B)    Gain more profit than other international airline companies. The raw materials that are being laid down in the airline services used by Emirates Airlines are able to meet high quality standards. As a result, the company is able to earn more profit as against other airline companies (Cyhn, 2002). C)    Build the best airline portfolio, with Emirates Airlines as the international brand of flagship; and D)   Maintaining its independence. Being an independent company allows to Emirates Airlines to continue its tradition of excellence in both its products and services by setting new trends and standards. In order to achieve these objectives, Emirates Airlines implements a strategy of promoting a combination of local and international airline services, but maintaining Emirates Airlines as the flagship brand. The company also aims for broader positions as well as either the top or secondary positions in any airline market. Any of these positions would be enough for Emirates Airlines to deliver a high level in terms of production, marketing and distribution. Moreover, these positions create a platform from which the company can promote their premium airline services and other specialties. And with a continued focus on the structures of the costs, the above mentioned objectives should undoubtedly be reached (Hill, 2002). Innovation Profit Chain Analysis 1) Environmental / Internal Beginning in 1995, British Airways started including smart-phones and handheld computers into the list of their airline services. These were equipped with a Personal Information Management (PIM) software and other note-taking applications (Arora et al. 2001).  A range of additional features including high resolution colored screens and wireless capabilities ensured that there’s a mobile product designed to meet the needs of clients anywhere in the world. On the part of Emirates Airlines, segmentation is a key factor especially in airline markets where a broad leadership position has yet to be fully developed (Gronroos, 1994). In these markets Emirates Airlines strives for strong positions especially in the import and specialty segments.           Good examples here include Emirates Airlines’s leading position in the airline industry in the UAE as well as the recently established airline markets within the capital city of Abu Dhabi.  In both examples, Emirates Airlines shows its desire to establish autonomous growth through expansion through the distribution networks as well as growth through acquisitions. 2) Endowments The innovations of British Airways focus more on the management and access of information rather the creation of irrelevant airline services. For this reason, British Airways has developed a unique set of guiding principles – simplicity, cost-efficiency and effectiveness. Total commitment to these principles makes the airline services of British Airways very user-friendly to its customers (Doz et al. 2001). Emirates Airlines was able to achieve a broad market leadership through various acquisition deals over the years. The company also exerts efforts to communicate with their customers in every local culture about their airline services and their impressions. And this is no easy thing because their regular clients and customers have different tastes in terms of airline service preferences. This critical information gathered by Emirates Airlines paves the way for them to make the right decision regarding the appropriate innovations to pursue. 3) Nature of Innovation The innovations of Emirates Airlines are focused mainly on driving the growth of its airline services and improving the company’s financial performance. These innovations have also helped secure significant acquisitions and partnerships. And more importantly, these innovations have led to the release of the potentials of the company’s employees, thus building a quality performance- based culture. The innovations of Emirates Airlines are practically reinforced by the local employees themselves. These moves certainly allow the company to improve even more without the costs of introducing new technologies. These efforts have resulted in increased financial gains for the company and have allowed the establishment of distribution networks for its airline services. On the other hand, British Airways’ innovations in the airline industry changed for the better at the start of the new millennium and began pursuing airline service differentiation. True enough, the differentiated airline services of British Airways were able to satisfy the needs of customers through a sustainable competitive advantage. This allowed British Airways to desensitize the prices of their airline services and instead focused on the values that generated not only a comparatively higher price but also a better margin (Bjorkman et al. 1997). 4) Competencies <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> British Airways has airline services that boast of a very powerful retail. This includes a reputation for value of money, convenience and a wide variety of airline services.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> British Airways has grown significantly over the years, and has experienced global expansion.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> British Airways’ main competence lies on the use of information technology (IT) to fully support its international logistics system. Therefore, the company can see how their individual airline services perform within the United Kingdom, or even at other countries at a glance. IT also supports the company’s efficient procurement (Christensen, 1997).</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines is able to deliver good customer care, as the limited amount of work would mean plenty of time to devote to customers.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines’ lead consultants have established a strong reputation within the market.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines can afford to change direction quickly if its management finds that the company’s innovations are not effective.</li> <li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> Emirates Airlines has little deficits and overheads. Therefore the company can offer good value to customers on a consistent basis.</li> </ul> 5) Profits / Competitive Advantages Because of British Airways’ successful implementation of its innovations, the following profits and benefits were achieved over the years: ·        Financial Stability Financial stability is crucial especially in the pursuit of research and development activities. In the airline industry, it is important to remain updated with the latest technological developments to be able to stay competitive in the market. ·        Excellent Service Performance and Price The designing of the best airline services comes as a result of well-funded research and development activities. The strong performance of airline services in the market could also be linked to their cost-effectiveness. However, British Airways has to be aware of the positioning in terms of process so as to maintain satisfactory profits margin and remain competitive in the market. ·        Effective Distribution of Airline Services High airline service awareness among the buyers has created the need for aggressive marketing, and access to strong distribution channels is critical for the introduction of new airline services (Best, 2001). Because of Emirates Airlines’ successful implementation of its innovations, the following profits and benefits were achieved over the years: ·        Economies of Scale and Scope in manufacturing and research and development arising from its numerous facilities situated in the United Arab Emirates and other countries worldwide.  ·        Unique Quality Airline Technology Emirates Airlines’ commitment to research & development activities has always been one of its top strategies to remain competitive in the market.            ·        Differentiated Airline Services Through the production and marketing of differentiated airline services originating from their research and development activities, Emirates Airlines is able to create its own firm-specific advantages. The continuous pursuit of research and development processes enables Emirates Airlines to produce a steady stream of originally differentiated products which makes it difficult for competitors to find substitutes. Because of this differentiated approach, Emirates Airlines is able to market their airline services worldwide, which enables them in turn to maximize the returns on research and development expenditures (Baumol, 2002). RECOMMENDATIONS A tie-up or merger with various local airline companies offers tremendous benefits in terms of access to the company’s innovative strategies, infrastructure and even its resources. However, British Airways and Emirates Airlines must not lose sight of their core competencies while pursuing these tie-ups. Otherwise, the image of both companies might be put in jeopardy. Meanwhile, the collaboration of British Airways and Emirates Airlines with their major competitors can be seen as a ridiculous move at first.  However, upon close examination, this move could pave the way for both companies to increase even more their market shares and revenues and improve their innovations (Dunning, 1993). The bottom line is both sides would be able significantly gain financially and strategically in such an alliance. Their strengths in airline service development combined with the financial capabilities and innovations of their competitors can transform them suddenly into an unbeatable force to reckon with. One possible setback, however, is the differences in the cultures of the airline companies involved. Another possible setback could be whether any of British Airways and Emirates Airlines’ competitors has the need to form alliances. In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether British Airways and Emirates Airlines could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. Both British Airways and Emirates Airlines have traditionally relied on the inside-out approach. It is important to note that any merger transactions would have many implications on the company’s values and culture as well as the resources (Kim, 1997). The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, British Airways and Emirates Airlines will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options. Credit:ivythesis.typepad.com

Innovation

OBJECTIVES As a person with knowledge of innovations, the author has always brought up to his superiors the viability of strategy format...

Sample Essay Paper on Dove and How Loyalty to it was Developed

Dove is one company that continuously undergoes various organizational changes. It tries to discover new things that can make their products better and more appealing to clients. Dove is known internationally because of its distinct characteristics and popular brand name. When soap is mentioned one thing that comes into the minds of people is Dove. In terms of product preference people choose Dove as their soap. They are loyal to the product because they have proven its worth. Dove is the only soap most mothers prefer to use for herself and her children.  If one has sensitive skin Dove is known as the only soap that never leaves its user’s body discolored and it never creates a situation wherein the skin is dry.  Dove is constantly reaching out to newer markets.  Dove offers variety of products not only for the skin but for the hair.  Besides being the best in skin care Dove reaches out to the community, one of Dove strategies is the Real Beauty Campaign.  This allows young girls from the ages of 8 to 12 choose one who will act as their mentor and together they can lead a Dove Real Beauty Workshop for girls.  The said program is designed to help young girls discover beauty and the different things related to it. Together they will inform other girls about what to do for them to be considered beautiful inside and out. The said workshop will have fun, educational and interactive sessions on beauty, self image and self-esteem.  It will serve as an instrument for social awareness and it will create a better relationship between company and the different clients. This kind of program makes a client loyal to the company. Strategies The company uses different strategies so that its can maintain its appeal to the consumer. One strategy is the use of a website that attracts the clients. The website of the company is well made and creates attraction so that clients will be enticed to visit it. It provides different information about the company and its product. This will help the clients understand more the benefits they will acquire if they use the product. It will also provide answers to the different questions they have about the company and its products. Another strategy used by the company is having products that have competitive prices when compared to major competitors. This strategy of the company makes them have a better relationship to clients that go for affordable but durable products. Most clients would prefer products that have the best quality but are competitively priced that products that cost more because of their brand name. Clients want products that will have the same value as their money. They are wary of the products that will just waste their finances. A strategy used by the company is creating products that come in travel packs that are easy to carry. This makes the product valuable to more kinds of people. This kind of products provides an opportunity for people who travel a lot to still make use of Dove’s products. Lastly a strategy used by the company to promote loyalty is to engage in various programs such as Dove Real Beauty Workshop. The company makes use of various programs so that they can have a better relationship with the environment and their clients. In having a better relationship with clients, it makes sure that clients will be more loyal to the company and their products.  Conclusion Research about the company helped in understanding about Dove, its services, its products and what makes it one of the most well known soap related company in the world. When soap is mentioned one thing that comes into the minds of people is Dove. In terms of product preference people choose Dove as their soap. They are loyal to the product because they have proven its worth and they believe that such product is the best for them. Research about the company helped in understanding the different strategies used by the company to acquire loyalty. One strategy by the company is the use of a website that attracts the clients.  Another strategy used by the company is having products that have competitive prices when compared to major competitors. A strategy used by the company is creating products that come in travel packs that are easy to carry. Lastly a strategy used by the company to promote loyalty is to engage in various programs such as Dove Real Beauty Workshop. The different strategies used by the company make them provide better service to clients and it gives them competitive advantage. These things improve the image of a company and when its image is good the clients are more enticed to avail of their products and services. Research about the company Dove helped in providing a better understanding of how loyalty is developed.  It provided insights on the factors that help loyalty to be developed.  Dove made use of appropriate strategies that created a culture of loyalty to the consumers.  The different strategies provided a better relationship for the company and its client and it makes the clients loyal to the company. Credit:ivythesis.typepad.com

Sample Essay Paper on Dove and How Loyalty to it was Developed

Dove is one company that continuously undergoes various organizational changes. It tries to discover new things that can make their products...

Intense competition in international business,pressures firms to utilize product quality to create value for consumers in a cost-effective manner and or distinguish the company from it’s competitors

Application of Quality Function Deployment (QFD) at                                                                                           Table of Contents                                                                                           Introduction   Intense competition in international business, pressures firms to utilise product quality to create value for consumers in a cost-effective manner and/or distinguish the company from its competitors. Quality is an important source of competitive advantage. However, quality should also match the needs and expectations of consumers to support effective value creation. This requires a competitive strategy that strongly links product quality with customer requirements since the ability to match customer needs is key to competitiveness.   A tool that enables business firms to link quality with customer requirements is the Quality Function Deployment (QFD) model. This model first emerged in 1978 as the process of translating customer requirements into product design and engineering specifications. This model creates a relationship among various parties—consumers, design engineers, competition, production team. As such, applying QFD captures the entire process of conceptualising, designing and manufacturing of a product. Having these stages ensures the efficient achievement of quality because issues during the different stages emerge for immediate resolution. By integrating customer requirements in these stages, the final product is likely of a quality satisfactory to consumers.   Many well-known business firms have applied the QFD model to establish the link between customer requirements with product design and production processes. Daimler Chrysler, Ford and General Motors are firms within the automobile industry that applied QFD. IBM and Boeing are other firms that also utilised QFD to achieve the quality expectations of its customers. Utilising QFD contributed a number of benefits including cost efficiency, product quality improvement, and customer satisfaction.    The paper has two parts. The first part applies QFD in the development of perfume able to represent the company name as its brand name while reflecting the requirements of its target customers from a perfume. The second part discusses the problem in the implementation of the QFD model.   Part A: Application of the QFD Model   The application of the QFD model employs four stages including ‘House of Quality’, ‘Parts Deployment’, ‘Process Planning’, and ‘Production Design’. House of Quality constitutes the initial stage. This identifies the different critical technical areas requiring change. By doing so, issues could emerge for the first time for consideration in the next stage. Parts Deployment involves the conceptualisation of the product design that best suits the values identified in the previous stage. Process Planning involves the conversion or transference of details of the product design into parameters, methods and processes. Production Planning involves the identification of specific instructions for production including particular descriptions of the part for measurement. This results to a prototype and a final product for launch.     Forming QFD Team   The determination of customer requirements as basis for design characteristics requires a cross-functional team with members coming from the different departments particularly the marketing department, customer service department, product development department, and manufacturing department. The marketing and customer service departments provide first hand information on the characteristics, components or design that the company’s customers would require from a perfume. The product development department provides technical expertise on the components to use in the perfume itself and the perfume bottle. The manufacturing department provides insight into the viability of actualising the design into a product for consumption with consideration of resource availability and utilisation. The members of the team represent different perspectives on the design and processes together with issues that requires consideration to ensure the effective achievement of intended outcomes.   Four Steps of QFD Process   Applying the QFD model has four stages, which are:   Ø      Stage 1 House of Quality (Product Planning)       During this stage, the cross-functional team determines analyses and prioritises customer requirements in order to derive product characteristics that would satisfy customers. This stage also involves benchmarking or consideration of product characteristics of existing competitors. This confirms customer requirements as well as identifies the value created by the new product. Ø      Stage 2 Parts Deployment (Product Design)      In the second stage, the team converts customer requirements into detailed product design including the components used and packaging. Ø      Stage 3 Process Planning (Process Design)      In the third stage, the team focuses on the development or identification of the methods and processes that fit the product design.   Ø      Stage 4 Production Planning (Production Design)      In the fourth and last stage, the team further develops the methods and processes by specifying details of procedures and control processes at the manufacturing levels to translate the product design and production methods into a tangible product, which reflects customer requirements.   Application to a New Perfume Product   The new product for Brooks Brothers is a perfume reflecting the brand equity of the company. The perfume should be something that represents class and elegance in terms of fragrance, ingredients, colour, texture, container, and other components of packaging. The company’s primary business is men’s formal, casual apparel, shoes, belts, brief cases, and accessories. It has also ventured into women’s clothing but only to a limited extent. The company wants to expand its product line to create a full line of products for men to increase value for its consumers and to make the store experience rewarding and longer increasing the chances of increased sales.     Forming a Cross-functional QFD Team   The members of the cross-functional team involve an eight-man team, two from the four departments, which are sales departments, customer service department, R&D department, and manufacturing department. The team provides different information as well as perspectives on the different aspects of the product design and production processes. The R&D department provides unique ideas for the product design, the sales and customer service departments provide insight into the ideas matching customer requirements, and the manufacturing department provides insight to the ways of efficiently manufacturing the product. Having two-members from each department ensures confirmation of the perspectives of the departments.   Stage 1 House of Quality   The initial step in the first stage is the identification of the characteristics that customers want from the new perfume product of the company. The derivation of information from customers is through store surveys, customer feedback through customer service, online market surveys, and product trends from its competitors.   Customer feedback from customer service and product trends provide information on what customers are looking for in an apparel store and brand as well as extent of potential uptake for the new product.   Surveys involved the posting of different questions encompassing the characteristics or product experience they expect from a new men’s perfume. This means determining those that customers prefer and detest. The respondents had room to provide feedback on any or all perfume characteristics from the fragrance, colour, ingredients and texture, to the container’s shape and application options, to the packaging including the brand print and box. Feedback reflected different levels of needs, which are: 1) basic needs; 2) performance needs; and 3) excitement needs. Basic needs refer to expectations of the basic product features and function of a perfume, which is to constitute part of men’s daily hygiene especially if they work in the corporate world. Performance needs are expectations of the functions of the new perfume including the expression of mood and personality through fragrance. Excitement needs comprise functions that would enchant and surprise customers if incorporated into the perfume.   Information drawn from consumers point to the following customer preferences for a new perfume, which are: v     Unique fragrance v     Class or elegant fragrance v     Long lasting fragrance v     Natural components or earth friendly ingredients v     Hypoallergenic v     Elegant container and box v     Clear texture v     Pleasing colour v     Fits different occasions v     Blends well with sweat   The team considered, analysed and prioritised all the requirements taken from the different sources to resolve trade-off issues especially in quality, cost and time factors. This resulted to the identification of unique and elegant fragrance as the top priority given 9 as weight, followed by long-lasting fragrance, hypoallergenic character, and blends well with sweat with a weight of 8. The rest of the customer requirements are shown in the House of Quality graph in the separate excel file.   Stage 2 Parts Deployment Stage 3 Process Planning Stage 4 Production Planning House of Quality Chart Benefits from Applying QFD Part B             Advantages of QFD Model             Problems of Applications             Difficulty in Determining Customer Needs             Organizational Problems                         Corporate Culture                         Organizational Structure                         Management Commitment and Resources Allocation             Hindering Innovation             Methodological Problems Conclusion           Credit:ivythesis.typepad.com

Intense competition in international business,pressures firms to utilize product quality to create value for consumers in a cost-effective manner and or distinguish the company from it’s competitors

Application of Quality Function Deployment (QFD) at ...