Analyzing the Market Environment - Essay Example

? MARKETING PLAN (Your teacher’s due 1 Perfect potion Perfect potion mainly supports organics to provide good future to all the people on the planet. It is a manufacturing company dealing in aromatherapy products. Perfect potion team provides innovative and diverse range of products related to holistic natural aromatherapy. These products are used to nurture mind, body, spirit and also provide a balance to the environment. Perfect potion offers essential oils which are related to finest quality of Australian Certified Organic and are sourced from international and local farmers. 95% of ingredients are ordered on the basis of sources to make a product. This means that company has high reliance on farmers for the cultivation of organic ingredients. Perfect potion is not involved in animal testing. Its production department measures safety of both animals as well as humans, even the minerals used in products is exempted from petroleum and silicones products. Perfect portion does not deal with products which are subjected to dyes, coloring agents, paraffin or fragrances However, considering the present condition of the company, its manufacturing cost is increasing rapidly, 20% of the cost is allocated to raw material and if there is any minute error it will be an addition to the cost. To control this it requires an integrated management system. 1.2 Background In accordance with the corporate service manager of perfect portion, this company was established by one man, having one outlet, limited products and manufacturing of these products was done in a garage. It was a very small business. As this business began to grow more stores were opened, wide product varieties, large network and also resulted in many problems. It is a common thinking that as a business grows more problems exists as compared to that of small business. Though company had huge business but it wasn’t managed accordingly. 1.3 Global market environment Global market environment helps to identify the industry and competitive environment in which the company operates and these also forces to reshape the organization practices as environment keeps on changing rapidly. Market environment can affect the practices of perfect potion on the basis of many factors because environment is a vast concept including both micro and macro aspects. Some of these forces affecting the present situation of the company are described below: Micro forces Intermediaries Intermediaries play a key role in controlling the internal and external environment of the company. All depends on the process and management carried out by top level executives. Perfect potion gets organic coconut oil from the island of pacific communities. This not only helps the island communities but also encourages local entrepreneurship. These are the intermediaries from which company sources most of its organic products to make a final thing for clients. They play a key role in its success. So in order to deal with this situation companies involved in producing such products should try to purchase their own lands to reduce the high cost of organic ingredients. Customer markets It is very essential to identify the changes in customer markets, their trends keep on fluctuating in the industry. People get more attracted to new things introduced by various competitors. Therefore, it is essential for the company to have a wide network of retail services to cater a large market. Perfect potion has a wide network of retailing around 800 products. It has catered a large part of customer market. Though company always has a threat of better product and technology to be introduced in the market by other competitors, in this case it will increase cost of the company. In order to tackle with this situation company should be more innovative and should increase its market coverage in other regions, to overcome the uncertainty of changes in consumer market. The organization Organization can be a driving force in relation to the environment both internal and external. Every industry face problems with an organization either managing, customers, cost or price related. Structures and culture of organization can also be a driving force in the industry. In relation to perfect portion, environment of organization is partly positive. It has wide range of management processes and finding it difficult to integrate all of them in order to get efficiency. This is resulting in increased cost and reduction in profits, to solve this issue company needs to revise its management system and have to identify flaws in the department. Macro forces Culture Culture of the society depends on norms, beliefs and values. It affects whole industry dealing in skin care products, because it have been noticed that many companies use such ingredients in their product which is not allowed in religion or values. Perfect potion holds the diversity related to culture through making such products which enhances its beliefs, such as it includes product of peace perfumes with the name of Shalom, Sohl, Salam and Shan. These perfumes are created to make people aware of ancient cultures and to control cultural diversity which may harm future business of the firm. Unlike this company should develop more products which are highly related to culture of people. Demographic Demographic factor affects all kinds of industry, because it mainly depends on age, location, family patterns and income, taste and preferences etc. people nature keeps on changing as they enter in different life stages this leads to changes in their buying habits. The result may lead to choosing products on the basis of perception and knowledge. Perfect potion have designed products for all ages i.e. for young, middle, aged as well as children’s which are in accordance with the nature and environment of the country. But it is facing difficulty in case of changing income levels. People with low income will not be able to purchase these products, as company is offering a specialty product which is expensive for such groups. In order to control this situation perfect potion should also include such products in its list that targets group of people with low income and facilities. Natural Industries mainly dealing in skin care products have a threat of nature because their product ingredients are dependent on natural things. Perfect potion main ingredient is organic plants and oil, which requires farming, natural affects and continuous management. Due to this reason there is a shortage of its cultivation. This can be subjected to many natural uncertainties in case of flood, disasters, earth worming etc. if in case company tries to adopt its own cultivation process then it have dangerous subjected to natural uncertainties. In order to solve this issue a research should be conducted to identify the other means of cultivating organic ingredients. 1.4 7 p’s of marketing Marketing plan is mainly dependent on 7 p’s which helps to identify the competitiveness of the firm as well as illustrates the areas of weakness. These seven p’s are product, price, place, promotion, physical evidence, processes and people. Success of a company depends on these factors. 7 p’s in relation to perfect potion are discussed below: Product Company provides products that are nurturing and is safe to nature also. It offers variety of products i.e. 500 manufactured products and 300 other additional products. Some of the products are made just to highlight people preferences on cultural beliefs. This has helped company to deal with uncertainties related to cultural beliefs. This is the plus point of the company. Theories of marketing have indicated that a company should be able to satisfy needs of customers by offering products in accordance to preferences of clients and perfect potion has been successful in it. Price Organic oil and plants used in the products are very expensive. So the cost of overall product is high, in order to make a chemical free product. Due to this, prices of final product to the customers are high. The main reason of this is that organic farming is done on a smaller scale and requires high management practices which are safer for wild life and environment. So it is imperative for the company to reduce the cost involved in manufacturing, this can be done by revising the prices and should try to have their own management plants in relation to those ingredients which are more costly. Place Perfect potion is a big wholesaler and distributor of skin care products. Presently company has exclusive distribution centers in Singapore, Japan and China. It have a wide network and have also established its network in Asian countries i.e. India and china, on the basis of cultural existence. Company has been successful to capture a large customer market through its lengthy product line. Promotion It includes ways to educate customers about various products one is offering. Promotion of products is done by conducting events in community centers. Seminars are conduction in public areas to make people familiar of skin care products. Promotion is also done on the basis of online shops where customers can easily get information of a particular product. These websites include everything i.e. features incorporated, usage and benefits etc. but it should be noticed that these online shops do not resolve customer care points. These can be redeemed only on retail stores. Physical evidence Presently, company has established two stores in Japan, to strengthen its target market and it also has distribution arrangements in other countries. In order to maintain its physical presence perfect potion dealt with only one retailer for several years in order to get dedicated retail presence. This is a week practice; a company cannot rely just on one retailer to transfer products on all shops, taking into consideration the high number of stores opened by the company. Therefore, it is essential that perfect potion should have a retail warehouse in every country where it plans to enter in future. Processes Perfect potion is certified for its skincare products. It uses essential organic plants and oils extracts on the products which offer a holistic and general approach to a person. Such raw ingredients are used in a product which supports indigenous communities. All things are integrated through bills of materials such as retailing, invoicing and ordering. One problem faced by the company is that they require a manufacturing system to track all the records of sales identified by the bills of material because it has a wide network. Therefore, it requires an integrated manufacturing system in order to control the problem of various manufacturing units. People Company attracts large group of people with 500 manufacturing inventory and 800 products range in its retail outlets. It offers wide range of products to its customers. It mainly refers to the people of the organization, including both internal as well as external aspects. Both of them are responsible for sales and marketing of a company. Perfect potion has best people within the organization which have resulted in efficiency of performance and development as it is planning to open more shops in various countries of the world to promote its brand. 1.5 Recommendations However, perfect potion has successful management and business systems, but on the basis of forces discussed above it requires some modification in its process. Some of which are discussed below: Company should have its own place and farmers, in order to produce organic oils and plants, due to high increase in their prices and shortage of product as they are less cultivated. This will reduce the overall cost of the company. It needs to incorporate integrated management system in the company. In order to evaluate accuracy and faults in the performance. This is required to integrate the businesses of company in various countries and working in one head or system. Retail warehouses and distribution centers should be established in every country where product shops are located. This will promote better service and help to open new packages offered by various distribution networks. References Armstrong, G. (2004). “Analyzing the market environment.” Journal of economics, 3(5): 12-30 Don E. Schultz. (2005). "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century". Marketing Management 14 (1). Jeffs, C. (2008), "Strategic Management". SAGE Publications Ltd: 20-30 Kotler, Philip. (2008). “Marketing defined." Principles of marketing (5th ed.): 1-20 Kotler, Philip. (2009). A Framework for Marketing Management (4th ed.). Pearson Prentice Hall Kroon, J. (1995), "General Management" (2nd Edition), Pearson South Africa: 70-80. Micheal, Johns. (2006).”Marketing plan.” Journal of communication, 12(3):1-100 Paliwoda, Stanley J. (2009). "Back to first principles". 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