Marketing, Strategy, and Enterprise for Saxon Plumbing Services London, Ltd - Essay Example

ESSAY Marketing, Strategy and Enterprise For Saxon Plumbing Services London, Ltd. Submitted by: Submitted March 2014 TABLE OF CONTENTS 1. Introduction 3 2. Company background 4 3. Responses to questions a. What is the suitable way of promoting the business, and the options available to the brothers with regards to organizing the sales force, and which method is most appropriate? 5 b. . Both Peter and Harvey have highlighted the importance of business expansion to Manchester.. Discuss to what tourism and sustainability development variables are likely to be important for SPSL when establishing their new office in Manchester. How can the company maintain these relationships in order to develop customer loyalty 7 c. Although SPSL operates in the B2B sector, long-term they may also decide to enter the B2C market. Analyse the likely differences between the B2B and B2C part of the business, along with the advantages and disadvantages for SPSL marketing its service to both businesses and consumers. 8 4. Conclusion 10 5. References 11 Marketing Strategies for the new project proposal of Saxon Plumbing Services London Ltd. (SPSL). 1. Introduction Saxon Plumbing Services London Ltd. is a plumbing Services Company established in 2000 by two brothers, Peter and Hair Blair. Its head office is located in South London, UK, with a staff of 40 employees. From a humble beginning, this company grew to generate an income of £5.0m and a gross profit of £1.2m. At present, the company is planning to expand its services to Manchester with five more stores in the territory. Manchester is a good choice for expansion since there is an established need for repairs in constructions of houses and buildings in this town. Annual housing alone in England in 2013 totaled 122,950 units (Gov. UK, Feb. 2014). This alone, is a comfortable number of houses/buildings to serve and begin with. Services offered by SPLS are competitive, superior and will always be available. The Mayor of London, Boris Johnson, has big dreams for London (The Mayor’s economic Strategy for London, May 20, 2012). He wants the city to grow both in terms of jobs and population. He believes that the country could emerge successfully from its present economic crises and become a world leader. Towards this vision of growth, SPLS sees the emergence of business which could support the growth of the company. Manchester is not very far away from London. It is located in England’s North-West in the heart of UK and is only two hours away from London. It is an ideal site for SPLS since it is the largest city in the north, an economic centre and therefore could be a profitable opportunity for the company. Besides, it could be a gateway to serve other areas since its international airport serves Asia, Africa, Oceania and Americas. (Into UK, 2014) In this expansion move, there are concerns that need to be resolved before the partners finally go into expansion in Manchester a. What is the suitable way of promoting the business, the options available to the brothers with regards to organizing the sales force, and which method is most appropriate? b. . Both Peter and Harvey have highlighted the importance of business expansion to Manchester..Discuss to what tourism and sustainability development variables are likely to be important for SPSL when establishing their new office in Manchester. How can the company maintain these relationships in order to develop customer loyalty c. Although SPSL operates in the B2B sector, long-term they may also decide to enter the B2C market. Analyse the likely differences between the B2B and B2C part of the business, along with the advantages and disadvantages for SPSL marketing its service to both businesses and consumers. This study hopes to expound the marketing strategies suitable for SPLS in operating in Manchester, a new service area. Discussions will present company background first; next, are the recommendations and solutions to the problems stated above and a conclusion. Secondary sources of market information that are available at the internet and books will be used as sources of information to provide a valid conclusion. 2. Company background Saxon Plumbing Services London is already in its 14th year in existence of providing a range of plumbing services to clients in London. Its services include leak repair, leak detection, drain cleaning, toilet repair, radiators and general maintenance on a on a whole year round and at a 24 hour basis. The company makes sure that all of their plumbers are qualified plumbers and that they are trained on customer service and are fully aware of the latest developments of the industry. During the span of years, it has developed a good service reputation so much so that business expansion is through recommendations of satisfied customers. Its market base is commercial establishments, from small industrial companies to large insurance companies. Although capable, its limited resources deter them to serve large multi-nationals and even to contemplate in going international. 2. Responses to questions earlier stated a. What is the suitable way of promoting the business, and the options available to the brothers with regards to organizing the sales force, and which method is most appropriate? At present, SPSL has been doing well in the word-of-mouth- system of sales in North London. Its seven work forces are capable of handling all of its business needs. However, referrals systems will not work well in a new environment because it will need a lot of introduction, advertising and promotions that will entail additional costs and will take time. It is like they are beginning all over again because they cannot take their clients and existing employees with them. Company must come up with a new strategy to ward off this predicament as the old ones cannot be relied upon in the situation. First, company must hire new employees, train them in customer service, and abreast them with the latest industry trend. With regards to organizing sales-force, it is best that sales force be trained territory-based relations rather than customer base. Customer-base relies upon the assessment of customers, on whether they are satisfied or not. Customer satisfaction, as put forward by studies of Krizek and Turner (2013)“contributes into the customers’ lived experiences… and based on its observation stated…” that the relation of satisfaction or dissatisfaction forms a system of meaning upon which they draw behavioral decisions.” On the other hand, territory based requires many steps to succeed. As detailed in the study of Magloff, Lisa, this entails making of a research on potential customers, and consequently, a business plan. A business plan is defined as “a document that describes your business, its objectives, strategies, target market and financial forecasts. Its a blueprint to your businesss future.( SBDC, 2014) A business plans helps SPLS if it will secure will ask financing, find suppliers and staff. It will outline its goals and long term visions; find out the viability of the idea; test the partners’ commitment and motivation; identify your businesss strengths, weaknesses, opportunities and threats; develop strategies to successfully operate and market your business; and establish measures to evaluate your business success. SPLS has stated a marketing goal of “increasing its market share in the region.” To achieve this goal, the correct marketing mix must be achieved. Marketing mix are product, prices, promotion and place.(Tracy, Brian, May 17, 2004). Marketing mix makes up the business plan of the company and if handled correctly could create a big impact on the business. In our case business plan must start with research of establishing customers lead. They must ask satisfied customers in its current area for referrals in the new territory. Plan should also include hiring of sales force. Their specific tasks are to join local organizations, clubs and other clubs to establish a customers’ base. After this, company could use various means of reaching customers such as e-mails, websites and direct meetings. Direct-meetings with possible customers should be arranged. Use of trained sales force preferably trained locals to cover the territory is needed here. On this score, best method to use is the territory-based approach as it encompasses all the strategies needed from planning to application. Customer-base approach is only next when behavior of customers has already been defined. b. Both Peter and Harvey have highlighted the importance of business expansion to Manchester.. Discuss to what tourism and sustainability development variables are likely to be important for SPSL when establishing their new office in Manchester. How can the company maintain these relationships in order to develop customer loyalty? Peter and Harvey realized the business opportunity of expansion to Manchester. This place is a city and metropolitan borough in England. It lies within the United Kingdoms second most populous urban area which has a population of 2.55 million. According to City.Data.com Manchester have 14 million verified businesses in Manchester. Manchester has an estimated median household income of $63,664 in 2011. These number of establishments and tourism figure are of relative importance for Peter and Harvey as it is indicative of sustainable operation for Saxon. Business sustainability is an important decision since it is a method of evaluating the possibility of a business maintaining its existing practices without placing existing resources at risk. There are three kinds of sustainability: these are ecological sustainability, social sustainability, and economic sustainability (Miranda, Kay). Ecological does not concern much of Saxon because its current usage does not deplete natural resources. Social sustainability refers to the ability of all persons in a community to access equal or similar resources. At present, there are similar services and competitors of Saxon but these come in smaller ones. It is understood that large companies looks for companies that is involved in social sustainability, meaning one that understands the basic needs of all residents. This is a niche where Saxon could develop. Saxon should be concerned more of economic sustainability because it refers to business ability to continue and prosper. Think about a city where there are no repairmen available, the city will find itself in trouble with leaking pipes, clogged drainage, etc. c. Although SPSL operates in the B2B sector, long-term they may also decide to enter the B2C market. Analyse the likely differences between the B2B and B2C part of the business, along with the advantages and disadvantages for SPSL marketing its service to both businesses and consumers. Business to Customers or B2C is a thriving form of business transaction evolving in the internet and a part of the growing interest on e-commerce. It is the type of business in which business sells direct to consumers. The term refers to on-line selling of products. (Hom, Elaine J., Sept. 11, 2013) Although it is noted that B2B and B2C approaches use the same media of communication (Internet/direct marketing, advertising, public relations, word of mouth and alliances), their selling motivations are different because of varied needs (Apex Two) . B2 deals with other businesses, and not to the public in general, while B2C is to end-user. Mostly, B2B aspires for a long-term relations because sales cycle is often much longer and more complex. It needs more communication because of its buying process that needs more than one person to decide and therefore there is a need for further information. B2C on the other hand, offers certain advantages for customers such as enjoying shopping in the convenience of one’s own home thus business keeps a low overhead. This kind of business does need not a lot of inventory or a storefront. Businesses just need to establish a website as its virtual storefront. Disadvantages are that the company must be technologically prepared for this. They must be able to establish a website that is attractive, easy to navigate, and a search engine that consumers find easy to work with (Hom, Elaine). Examples are googles, yahoo, etc. Consumers generally search based on keywords, afterwards , navigate to the page needed. If consumers find difficulty, the page will not gather business traffic and soon will be forgotten. Another problem in B2C is the payment scheme. With the advent of too many scams and frauds, people do not like to compromise and submit its credit cards unless they find they site trustworthy.(Newman, Jared, December 2013). Comparison of the 2 methods is presented below to identify which method is best for SPSL. Categories are based on studies of My Marketing Dept (2014). B2B is developed in a vertical way, generally small in size, while B2C develops thousands of customers coming in many places. B2B purchasing process takes weeks or months to complete while B2C is often quick and consummated in a few days. B2B needs to understand what customer needs like problems that need repair, etc, or “consultative selling” that requires a sales force to go down to customers, while B2C is selling direct to customer and requires only convincing why they need the product that occurs only in the internet. Cost of sales in B2B are higher in value than B2C that costs only a few dollars. Decisions to purchase also varies as B2B is based by needs and budgets, therefore making it a rational decision while that of B2C is based on what one want and therefore an emotional decision. In terms of value, brand identity, in B2B is created through personal relationship while B2C is through social networking. B2B has more likelihood of repeat sales, lifetime value, and word of mouth referrals, while repeat sales for B2C is fewer. Conclusion The business consideration for Saxon is not just to focus on one area. In order to succeed in the future, it must look into other areas. For Saxon, developing a new area is an operating sustainability that would increase both its operating cost and profitability. However doing so gives more benefits in terms of positive public image that will attract more customers seeking support of the company towards clean environment and a high quality of life. Strategies that could be implemented are B2B, B2C internet strategies that is becoming popular. Although both uses internet and has the same procedure B2B is preferred as this establishes long and lasting customer relations. B2C are for quick sales and commodities that could not be applied to SPLS. Aside from that, Saxon should hire a sales force, do some sales promotions that would give the company an instant recognition on its opening. . Since we have stated referral is not feasible in the new area, SPS must come up with alternatives such as internet website that introduces the company to the public. . Company websites are excellent vehicles to portray its services. Here, company can take advantage of testimonials of satisfied clients, particularly, if they have known business personalities to its account. They could engage in B2B transaction to encourage a link and develop customer loyalty. In order to retain loyalty of customers, Thompson, Stephanie (2013) suggests “to make process easy, make yourself available, look for ways to wow them, and to make their interests your interests”. These suggestions are meant to establish relationships with customers after sale, because retention is important in SPLS’ business. SPLS offers service, and customers are coming in because they cannot do repairs by themselves. So in order to keep clients coming back, company must establish a process that is easy for clients to work with, like B2B link. Clients appreciate constant communication with them that shows company is completely available to them. They would be interested on new products company offers, for example. Ways to wow them include extra time and service and making their interest yours means helping customers on things that are outside the products you sell, or going out of your way. Customers remember these, and so word of mouth is created and lasting relationship is established. B2B or business to business is a growing internet service of exchange of product, services, and information between businesses. B2B is a rising business that is expected to have a compound annual growth of 41%. (Search CIO). B2B websites can be used to target companies and employees. They could also use this method for product supply, procurement, or bid supplies from vendors. The website can also act as an agent between someone wanting a product or services and potential suppliers. A supplier may come in the form of a leasing company that leases trucks and vehicles. References Apex Two. B2B vs. B2C Marketing. The Difference and why it matters. http://apextwo.com/b2b-vs-b2c-marketing-difference-why-it-matters/ City Data.com. Manchester, Maine. http://www.city-data.com/city/Manchester-Maine.html Gov. UK . (Feb 20, 2014). House building in England: October to December 2013 https://www.gov.uk/government/publications/house-building-in-england-october-to-december-2013. Viewed 18 March 2014 Hom, Elaine J., (Sept. 11, 2013) What is B2C? Business News Daily. Viewed 28 March 2013 http://www.businessnewsdaily.com/5085-what-is-b2c.html The Mayor’s economic Strategy for London, May 20, 2012 www.london.gov.uk/sites/default/.../Economic-Development-Strategy.pdf. Viewed 18 March 2014 Magloff, Lisa. New Territory Sales Strategy. Small Business.Chron, comhttp://smallbusiness.chron.com/new-territory-sales-strategy-5259.html My Marketing Dept. Inc., 2014. Comparing B2B versus B2C Marketinghttp://www.mymarketingdept.com/comparing-b2b-versus-b2c-marketing/ Newman, Jared, (December 12, 2013) The Credit Card Breach: What you should know? Time. http://techland.time.com/2013/12/19/the-target-credit-card-breach-what-you-should-know/ Tracy, Brian. (May 17, 2004) The 7 P’S of Marketing. Viewed 18 March 2014. Thomson, Stephanie. From B2B Client to Business Partner: How to Create Long-Term Customer Loyalty. PERQ Turner, Paiige and Krizek, Robert, 2013. A Meaning-Centered Approach to Customer Satisfaction. Management Communication Quarterly. http://mcq.sagepub.com/content/20/2/115.short Into UK. (2014) . Where is Manchester located in UK. Viewed 18 March 2014. http://www.intohigher.com/uk/en-gb/our-centres/into-manchester/faqs/frequently-asked-questions/frequently-asked-questions/manchester/where-is-manchester-located-in-the-uk.aspx Searchio.target Definition B2B Business2Business or Business-to-Business http://searchcio.techtarget.com/definition/B2B) B2B) Viewed 18 March 2014 SBDC - Small Business dev. Corp. Business Planning (2014) Gov. of Western Austrakia. http://www.smallbusiness.wa.gov.au/business-planning/ Read More