Local Business in Brighton: Partido Ltd - Case Study Example

PARTIDO LTD Introduction: Background information Based in Brighton, the Partido is a regional (though small) company that specializes in party supplies of all kinds as well as costumes. Its operations date back since the year 2013 in Brighton, supplying all types of party fancies ranging from balloons, fancy dresses as well as event decorations. Besides, the company operates shopping outlets for supply of costumes and specializes with all types of costumes. The target of the company is to all age groups and thus invests in all range of age-based outfits hence capturing the market niche favorably. The small size of the company’s operations explains the relatively small-scale nature of its operations within the UK and especially so in the Brighton. However, it is noted that there is low competition in the business niche within the region, which explains the originality of the idea and the success of the relatively new business in the market. Thesis statement Having been in operation for merely a year, there is the need to evaluate the performance of the business in order to confirm past trends and project correctly future trends within the market. This research study is therefore aimed at studying the marketing strategies adopted by the business and evaluates the perceived success with an aim of projecting future performance as would be influenced by both internal as well as external factors in business environment. Main Body (Marketing Mix 4Ps). Marketing mix has particular attention on the price, place, promotion as well as the actual product concerning the market. Price regards the value that a product carries in the market, which has dependence on such factors as the cost involved in production of the product, the prevailing market values as well as ability of the target market to afford the commodity. The production represents the actual good on offer while promotion revolves around practices adopted to create awareness of the existence of such a product within the market (The Economic Times, 2013, para 1-3). Focusing on the Partido Company itself, the analysis of the 4Ps as shown in the marketing mix would be comprehensive and thus incorporate the costume(s) and the party supplies. Then focus will therefore be in understanding the marketing tactics that the company embraces in order to be noticeable within the market as well as to command success. The stages of the business life cycle (Janssen, nd, para 1) Products Among the Ps in the marketing mix refers to the product, which is therefore the main good on offer. The Partido Company has been shown to specialize in a variety of products, which are the costumes and the party supplies. The party supplies referred to here are such as the décor, balloons as well as custom fancy dresses that would suit particular party requirements. The company has invested heavily in designing, packaging as well as the quality of its products for effectiveness in market operations. Besides, the company has a good reputation in offering high quality services for party decors and such events. Specialization in selling such festival decorations as ‘Chinese New Year decors’ makes the company outstanding in the market which is characterized of little competition. Only few competitors operate in the market niche hence explaining the relative smooth operating environment that Partido limited enjoys. It is noted that businesses go through growth cycle and has definite stages in development and growth (Hanks, 2014, para 1-5). These stages are start-up and concept stage, survival stage, subsistence stage, stability and growth, false maturity as well as the maturity stage. Depending on the nature of market as well as the age of operation, businesses often go through the stage ladder with maturity representing the peak stage in growth. Although relatively fast, the one-year-old company would be seen to be at the stability and growth stage in the development cycle. The ‘Boston matrix’ tool is applied in decision making when a firm is interested in balancing its activities among which lead to profit maximization, ensuring growth as well as those that represent the future and heritage of a firm (Kamphaus and Yates, nd, para 1-5). The BCG matrix has four main components in structure, which are question marks (Cash user), stars (cash neutral), cash cows (cash generator) as well as dogs (cash neutral) (Taggart and Harding, 1998, p. 568-574; Riley, 2012, para 1-4). The relative share of the market by the product(S) as well as growth rate of the products in the market determines whether products or services are to be considered as cash users, neutral or even generators and are the basis on which the Boston matrix is formulated. Cash users are products, which have high liquidity demand though they do not generate profits and thus involve the management on the decision of whether to invest or dispose them. The stars on the other hand are products that require sums of cash but are great contributors to a company’s profitability and are thus seen as most promising products within the firm. Cash Cows finance others in the matrix and must therefore be replaced in order to realize future growth. Other products become too expensive for a company to maintain and thus it opts to dispose them and is referred to as the dogs. Place Although viewed as relatively small company, the Partido ltd is a regional player within the UK with most of operations being centralized within Brighton. The region is acknowledged as a business hub within the UK and has the higher population as the middle aged and youths who fancy partying and beauty. The company has invested in various outlet stores, which are strategically placed along the streets, and this promotes advertising for the products. The chain of outlets are widely distributed across the region hence the advantage in wider market coverage through networking. The company knows the UK region in the culture of merry making hence the strategic choice of investing in partying aid and cosmetics. This therefore shows that the market is largely fit for the operations of the company in both Brighton and the region at large. Promotion Partido limited adopts a variety of tools, which serves for promotion of the company. Some of the means adopted such as the word of mouth serves to create awareness about the company, the location, products on offers as well as such other information that is important for any business venture in order to perform well within the market. The business relies heavily on the word of mouth by the customers who after receiving satisfactory services from the retail outlets would definitely spread the word to friends, families and such other close circles. This has been a major success within the region as the company keeps growing and much is attributed to this tool of promotion. Another tool that have been adopted by the company for promotion purposes is the use of branded billboards as well as branding wrapping materials and the bags. Just as is the case with other trading companies, the use of billboards and road displays play an important role in promoting a brand to the public, as the target is rather a larger sphere of public. The target in use of the bills within the cities in the region is not only targeted at creating awareness for the products but also for the company within the region. The target is also diversified, as even foreigners on transit are made aware of products and services offered by the company through strategically placing road bills. Moreover, branding bags and such other wrapping material for the products on sale within the retail outlets of the company serves to promote the company and product indirectly. While one carries such a bag along the streets, other people get to read the message and this would raise curiosity of understanding the company and the products hence realizing the intended purpose in creating company and product awareness. Finally, we note that the company operates a promotional web page in social media (particularly the facebook) (facebook, 2013, para 1) through which easy correspondence with customers and potential customers are made possible. Although being a relatively new tool in marketing practices, the social media is increasingly proving effective in advertising companies and products in a region and across the borders. The company has therefore made follow-ups with many people through the facebook account and this serves as an easy means of communicating of products in offer or any such other important information that would be intended for the public though the tool is restricted to benefiting only those who are followers and or have liked the page. These promotional tools have proved quite successful especially as seen with the increased success of a one-year-old company. Pricing The Partido Company has emerged to be strategic in pricing tactics as a means of marketing and promotion for the products and the company brand. The company posts relatively lower prices for the products on offer such as the balloons, costumes and such other décor materials on offer. Besides, the company offers price discount on products in festivities as well as discounting on particular groups like the students. For instance, the company would run promotion display messages on up to 50% price discounts on Chinese ‘New Year celebration’ materials as well as the recently passed valentines celebrations. Moreover, periodic promotions targeted on particular groups such as the students have been embraced where such promotions offer like 10% discounts on students so long as a person has a valid student identification document (facebook.com, 2013, para 4). Evaluation From the foregoing analysis, one would note that the company has managed to secure its position in the retail market especially in Brighton as it specializes in sale of costumes and party decors. Effectiveness in marketing strategies can be cited as the most effective tool that would explain the success. Among the most effective tools adopted are the word of mouth, branding bags and wrappers as well as use of mass media and social media platforms. Within a period of one year, the company has been in a position to extend and cover a relatively wider segment of the region with retail outlets, which equally reveals the success of the company. However, the company has not fully adopted or utilized technological advancement such as the use of company websites for ease of selling own portfolio. Nevertheless, the general analysis reveals great success for the company in the retail industry within the sector of events and party organizations as well as sale of ‘event’ specialized costumes. Recommendations Besides having made great successes, critical analysis of the business reveals that the company is yet to adopt fully modernized trading tools such as effective promotional strategies and product diversification. It is the recommendation of the paper therefore that the company invests higher in use of technology such as creation of a company website. Moreover, there is need to increase in product varieties in order to cut across a wider market segment through products on sale. Questionnaire How can you classify the industry within which the Partido Company operates concerning competition? ( ) Highly competitive ( ) Moderately competitive ( ) Lowly competitive In a scale of 1-5, classify the competitiveness of the company in the market where one represents highly competitive and five represents lew competitive. 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5 ( ) Rate the growth of the company on a scale of 1-5 where one represents fast growth and five slow growth 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5 ( ) How is the reception of the fancy dresses and balloons for parties as they represent the main specialization of the company within the region? ( ) Highly appreciated ( ) Moderately appreciated ( ) Lowly appreciated How many people does the company serve on average per month? ( ) 1-1000 ( ) 1001-10000 ( ) 10001-20000 ( ) 20001-50000 ( ) 50001-and above How many revenues does the company generate on average per month? $ 1000 ( ) How many direct employees does the company have? ( ) 1-100 ( ) 100-200 ( ) 200-500 ( ) 500-and above Having worked in the company for the last one year, how do you perceive the company in future perspective? ( ) Very promising in growth ( ) Not clear ( ) Not promising at all What are the plans for the company concerning venturing into new regions and products? ( ) Investing across borders ( ) Investing into other products What are the tools used in marketing for the company? ( ) Word of mouth ( ) Mass media eg Print, bill boards, radio, TV ( ) Social media eg Facebook, tweeter ( ) Any other Bibliography ‘facebook.com’, 2013. Partido. Available at: < https://www.facebook.com/permalink.php?story_fbid=639332302771528&id=606341916070567&stream_ref=10> (Accessed on 6 March 2014) Hanks G., 2014, Stages of Business Development. Available at: < http://smallbusiness.chron.com/stages-business-development-64516.html> (Accessed on 6 March 2014) Janssen J., nd, The 7 stages of business life cycle. Available at: < http://just-in-time-management.com/the-7-stages-of-business-life-cycle> (Accessed on 6 March 2014) Kamphaus D. and Yates D., nd.BCG Growth/Share Matrix. Available at: < http://www.innovation-ideas.gr/club/basicMemberMaterial/presentations/1.pdf> (Accessed on 6 March 2014) Riley J., 2012. Boston Matrix and Product Portfolios. Available at: < http://tutor2u.net/business/strategy/bcg_box.htm> (Accessed on 6 March 2014) Taggart J. H. and Harding M. S., 1998. The process of subsidiary strategy: a study of Ciba-Geigy Classical Pigments. Management Decision, 36(9), 568–579 The Economic Times, 2013. Definition of Marketing Mix. Available at:< http://economictimes.indiatimes.com/definition/marketing-mix> (Accessed on 6 March 2014) Read More