Marketing Communication and External Environment of a Company - Essay Example

? Marketing Communication Executive summery The study provides a clear background and rationale for the luxury watch industry in Singapore. Azimuth is a popular Singapore based watch company established in 2004 with an impressive mission and broad vision. The company’s value lies in customer satisfaction. After eight years of successful operation Azimuth has decided to enter in the luxury watch industry in order to increase its market share. The stabilized government policy and strong economical background of Singapore will influence Azimuth to operate in Singapore. Higher GDP, high disposable income of people and technological advancement will help to motivate the company to do product diversification. The authentic luxury watches will provide the positive contribution by the innovative creation and identification of target audience. The luxury watches have the strength to influence customer ambition and purchasing behavior due to attractive product design, effective marketing and distribution strategy. Singapore is known for the high consumption rate country of luxury products. Supportive competitive market and implementation of supreme product positioning strategy will help the company to meet with the future objectives. These factors will motivate Azimuth Watch Company to enter in the luxury watch industry. Therefore, Azimuth has the opportunities and the required responsibility to introduce luxury watches in order to encourage sustainable consumption. External Environmental Scan The external environment scan will help to analyze the impact of external environmental factors on luxury watch industry. In order to do the analysis PEST analysis can be formulated. PEST Analysis The PEST analysis used to analyze the macro environmental forces that impact the strategic planning of Azimuth. This analysis will identify the business environment in Singapore for Azimuth. In order to maximize the business opportunities and reduce the external threats, PEST analysis is implemented in this study. The PEST analysis consists of four factors such as political, economical, sociological and technological factors. Political Factors `Singapore is known for his leading high-quality governance globally. The country is considered as the political stable and consistent policy-making country. The political risk regarding investing in luxury watch industry in Singapore is very low. Singapore is also considered as the third least corrupt countries in Asia, due to the country’s efficient government. The legislative power of Singapore lies jointly with the government and parliament. Therefore it is feasible that the political stability of country should influence Azimuth Watch Company to enter in the luxury watch industry. Economical Factors Singapore is one of the strongest economies in world. The GDP of Singapore is 239.7 billion US $ and the GNI per capita is 42,930 US $. The GDP value of Singapore indicates that the economic output and the disposable income of people are much higher than other economies (Worldbank, 2013). The global economic crisis had a negative impact on economy. After 2008 Singapore’s economy again contracted. Now-a-days Singapore is one of the global economical giant. The high disposable income, higher GDP and low risk will influence Azimuth to do business practices. Sociological Factors Singapore has the population of 5067700 and the major concern is that; population growth has increased in last 10 years. More than 90% of total population has high income distribution in Singapore. The people of Singapore tend to consume the luxury products than any other countries. There is a huge potential customer base for luxury watch company and the culture of country supports people to buy luxury products in order to show-off their self-esteem and high personalities. Technological Factors Singapore is a highly technological developed country. The contribution of technology in country’s GDP is outstanding. Government of Singapore is focusing on R&D for more IT investment. Singapore government has a goal named i2015 in order to make Singapore as an information society. Moreover 80% of total population uses internet efficiently in order to gather information. Therefore the developed technological society may offer Azimuth to operate in Singapore within the luxury watch industry. SWOT Analysis SWOT analysis is formulated to identify the internal strength and weaknesses of Azimuth. Moreover this strategic tool will help to find the external opportunities and threats for the company. Strengths Weaknesses Supreme product quality and deep expertise. Independently owned and high service orientation. Own production facilities and vertically integrated distribution. Impressive financial resources. Inadequate marketing efforts. Lack of global brand awareness. Limited product diversification. Weak distribution channel. Opportunities Threats Strong Growths of luxury watch industry. Product diversification. Strengthen position in potential markets. Building effective brand community. Strong competitive market. Company concentration within groups. Difficulty to control brand image. Changing market trends. Recommendation The segmentation targeting and positioning strategy has shown below in order to suggest the competitive market development in the business operation of newly developed Azimuth luxury watches. This STP analysis which is shown below will help to maintain strength, increase the distribution channel, brand awareness and market share for Azimuth luxury watches. Target Market segmentation There are three major indicators in marketing strategies. The major factor that is implemented in major of the time by leading companies is market segmentation. Azimuth has efficiently done the target market segmentation in order to raise their brand image in potential customer’s mind. Azimuth has the maximum focus on the consumers of middle ages. Azimuth needs to pay attention on all the variables. Azimuth has done the target market segmentation like the following ways: Behavioral Segmentation Maximum Azimuth watches are of supreme values and high quality that are available at reasonable economical price as well as premium price. The premium price level of luxury watches would not be a problem due to higher disposable income of people. The varieties of watches are being purchased by the customers in regular basis as per social trend of Singapore. The company has to retain his loyal customers in terms of new launched luxury watches. The company has the profile of profound users which follows the Pareto’s ruling. The 80% sales of the company come from the 20% of loyal customers of the company. Profile Segmentation A customer who is well educated and has a good academic background with higher income level comes under this variable. In addition to this the young generation customers like college goers are the major customers of Azimuth luxury watches whose average age is between 15-26 years. The company’s potential customers are both independent and family focused and more importantly they are rich and active. Geographic Segmentation Since 2004 Azimuth has able to create customer base of both higher and medium income level. Azimuth should open their retail outlets in high street shopping mall in the centre Ares of cities in order to create the brand awareness about new luxury watches in potential customers’ mind. Moreover they should also target the small cities by introducing the watches of economic price level as everywhere in Singapore the disposable income should not be same. Psychographic segmentation Azimuth had mainly focused on the middle aged people who are energetic, active and fit as they are potential customers of the company. In terms of the newly launched luxury watches, they have to create such brand image of products that could create huge customer base and the target audience should have enormous self-esteem level. Product positioning Azimuth is the renowned watch company in Singapore. Company has efficiently made the positioning strategy since 2004. They have the product range of both economic and premium prices. In terms of luxury watches Azimuth should develop new products according to customers’ needs and wants. As there is huge competition in market place product differentiation and effective product positioning will help to attain great competitive advantage. Consumer behavior People of Singapore tend to purchase the luxurious products in the shopping malls. As the young generation like to consume the products like luxurious and fashionable watch, mobile, clothes the business opportunity of the new product will be higher. Azimuth has the medium brand recall value. Therefore the company has managed to place their products in maximum mid tier retail outlets and in few high street retail outlets. The Azimuth watches managed to create awareness in the mind of people in Singapore. To attain huge customer base Azimuth should incorporate proper pricing and promotional strategy. Moreover the company needs to control the product and service quality in order to create supreme brand image. As the disposable income of people in Singapore is high, the company has to face little barrier to create competitive position within the industry. Due to lucrative luxury product market, Azimuth should introduce new product with supreme quality and good after sales service to get new brand loyal customers. Marketing Mix Marketing mix is the backbone of a company’s marketing strategy. Every leading company needs to analyze the marketing mix effectively and in order to do strategy formation. As Azimuth is introducing the luxury watches in Singapore market, it is important to formulate marketing mix strategy. Product Azimuth is a renowned wrist watch brand in Singapore since 2004. The strategy of refinement and innovation has a powerful impact on the target customers mind. Already they have launched variety of watches. In terms of luxury watch they need to apply product diversification effectively. The company has a huge demand of Azimuth watches among the both men and women customers. In order to emphasize the benefits of newly introduced luxury watches, Azimuth should print attributes and characteristic features of particular watches on the packages. Price The price of Azimuth luxury watches should be developed after evaluating the competitors’ pricing and customer’s expectation. Company should develop a research work about customers’ opinion about the pricing of Azimuth product. Azimuth is a strong brand in Singapore market with high brand awareness and effective competitive advantages. The proper pricing strategy according to products’ attribution will help the company to charge premium price. Place The luxury watch market of Singapore is highly potential and day-by-day the demand for product is increasing. Azimuth already has a wide distribution network. In terms of newly developed luxury watches company should concentrate on effective distribution channel so that the watches can be delivered in all retail and distributer houses of the potential areas with the help of supreme transportation system. Promotion Integrated marketing communication is recognized as the most important model to formulate promotional process in business area. With recommendation, Azimuth should focus on public relation, advertising and sales promotion. Promotional activities will create brand awareness about the Azimuth newly launched luxury watches in customers’ mind. Azimuth should start the promotional campaigning according to the product and knowing the target audience. The company effectively does the print media advertising in Singapore. Moreover Azimuth is expertise in outdoor advertising like advertising on cabs, buses and at bus stops. Moreover, social media networking promotion like giving advertising about new product in Facebook, Twitter will help to make people aware about products as Singapore is known as high internet user country. Moreover, effective celebrity brand endorsement will increase the brand awareness in young generation’s mind. Sales Promotion In terms of sales promotion Azimuth needs efficient and dynamic sales people in order to maintain an effective public relation. Effective marketing strategy and advertising campaigning will do the job easier for the sales people. Direct and indirect selling both can be implemented for effective sales promotion. Sales executives and managers have to extreme influential to make the purchasing decisions of Azimuth luxury watches. It is only can happen when the customer is confused to but what and where. Thus the positive and healthy relationship with customers can create huge brand awareness. The company should give festival discounts to potential customers. Moreover occasional road shows will help to create brand awareness. These will create effective competitive advantages for Azimuth luxury watches. Control and Evaluation Azimuth has taken the diversifying strategy by introduction of new luxury watches in order to increase the market share. The above marketing strategies and strategic tools will give a clear overview about the competitive market of Singapore and the company’s external and internal overview. Finally it can be stated that, in order to perform the task and activities to keep organization on track the above strategies are implemented. Moreover the tools and strategies evaluate the efficiency of the company to achieve the future goals and objectives. References Worldbank, 2013. World Development Indicators. Retrieved from http://data.worldbank.org/country/singapore. Read More