Marketing Plan: GTM Bids - Term Paper Example

MARKETING PLAN: GTM BIDS Executive Summary GTM Bids is a construction company interested in the construction tenders offered to construction companies within the UAE. This business plan demonstrates a market analysis for the company based on various marketing analysis criteria. GTM Bids has established itself within the UAE construction market. This has caused it to have an enhanced image within the market. On the other hand the construction business in the UAE has attracted many businesses and investors. GTM Bids is therefore threatened by competition which is likely to emanate from new entrants into the tendering service business. Economic, political, ecological and legal factors also come to play in defining the company’s success in the market. Table of Contents Executive Summary 0 Table of Contents 0 Introduction 2 Company profile 2 Strategic Opportunity 3 Target market 3 Company Objectives 3 SWOT analysis 3 Strengths 3 Weaknesses 4 Opportunities 4 Threats 4 Poter’s 5 Forces 5 Power of suppliers 5 Threat of New Entrants into the Market 5 Thereat of Business substitutes 5 Power of customers 5 Wiersema’s Customer Intimacy Model 6 Mckinsey GE Matrix 6 Industry attractiveness 6 Business Unit Strength 6 BCG Matrix 7 Perceived Customer Value Map 7 Ansof Matrix on GTM Bids Growth Strategy 7 Pestle Analysis 8 Political environment 8 Economic factors 8 Social Cultural Factors 8 Technological environment 8 Legal considerations 9 Ecological factors 9 Customer Focused Organization 9 Company Performance and the Importance of Marketing Metrics 9 Dynamics of Market Demand and the Product Lifecycle 10 Understanding the Customer Experience 10 Understanding Market Segments 10 Value Pricing Strategies and Customer Value 10 Market Share and Evaluating Share Strategies 11 Marketing Channels and Channel Mapping 11 Marketing Communication Objectives 11 Portfolio Position and Strategic Market Plan 12 Offensive Strategic Market Plans 12 Recommendations 12 References 13 Introduction Company profile GTM Bids is an upcoming company focused on tendering services in the UAE. The company has undergone tremendous changes in the last few decades which have allowed it to become a great commercial center with an active and broad economy. GTM Bids is a construction company interested basically with the construction tenders offered within the UAE. However, the company finds difficulty in growing its market within the region and even extent beyond the borders due to lack of enough expertise and skilled manpower. Business success within GTM Bids is affected by its internal and external environment within the UAE construction market and industry (Behery, 2011, p. 25). Strategic Opportunity The strategic opportunity within the business operations and market within GTM Bids is that of attaining a position of market leadership within the UAE construction industry. Target market GTM Bids targets the construction market within the UAE which includes government agencies, non-governmental organizations, institutions, companies and business organizations. Company Objectives 1. To present the most comprehensive and realistic projects proposals to the UAE government. 2. To execute about two small construction projects of about 10 million each within a year. 3. To have executed a billionaire tender within the following 10 years. 4. To experience an average company growth of 10% per year 5. To be a world construction company, offering durable construction services within the stipulated timeframe. SWOT analysis Strengths GTM Bids has established itself within the UAE construction market. This has caused it to have an enhanced image within the market. The company’s partnership with well-known international recruitment agencies has allowed it to be supplied with the best experts in the construction work. Weaknesses The company’s project proposals are not written up to standard leading to their disqualification in the award of the major tenders. In addition, the company has not adequately adopted and implemented information technology as an effective way of facilitating business activities and complying with the market changes (Kargwell and Inguva, 2012, p. 203). Opportunities GTM Bids has business opportunities related to further expansion in the local construction market and later penetration to the international market. The company also has an opportunity of extending its recruitment systems beyond the UAE. This will allowed it to get the most skilled human resources that will take part in the execution of the projects that are awarded it (Aljifri and Khasharmeh, 2006, p. 506). Threats The competitive market poses threats to the company’s business especially the competitive prices which are provided by rival businesses. In addition, there is a threat of possible changes in legal and regulatory frameworks which will affect its tendering services. Fluctuations in the economy within the UAE also threaten the success of the company in its tendering business. Poter’s 5 Forces Power of suppliers The concentration of suppliers within the UAE construction market is relatively high. However, the high switching costs associated with the supply of construction material makes the company well positioned in the market. Threat of New Entrants into the Market The construction business in the UAE has attracted many businesses and investors because of the expansive market for construction material and the growth of the region. In this regard, GTM Bids business is threatened by competition which is likely to emanate from new entrants into the tendering business. Thereat of Business substitutes Construction companies which comprise of the customers of GTM Bids may decide to place tenders directly without using its tendering services which is likely to affect its business success. In addition, construction companies may also decide to subscribe to substitute tendering services and as a result pose the company to major business competition. Power of customers The construction companies have various needs which GTM Bids needs to fulfill. These needs are related to the changes in tendering processes and application of technology to make possible. It is therefore notable that the company’s inability to employ technology as a way of facilitating the tendering process may have a negative implication on its business success (Aljifri and Khasharmeh, 2006, p. 508). Wiersema’s Customer Intimacy Model The marketing approach which is employed by GTM Bids includes the use of Wiersema’s Customer Intimacy Model with an aim of ensuring that the customers or construction companies in UAE know the company as the regular tendering service provider. This form of marketing is achieved through effective leadership of the company’s tendering services. However the focus of the company on its operational excellence should be improved through implementation of technology so that customer intimacy with the company is achieved and maintained. Mckinsey GE Matrix Industry attractiveness The construction industry within UAE is growing at a very high rate. This makes the tendering services for construction companies as an attractive business which is worth investing in. In addition the market size is large as demonstrated by the many construction companies in the region which require tendering services. More importantly, the tendering services in the construction industry are very profitable with opportunities for international growth. Business Unit Strength The market share within the construction tendering business which GTM Bids enjoys is relatively high as compared to its business rivals. However the growth in market share is lower than expected. In addition the access to the distribution channel by the company is limited by lack of adequate implementation of technology. BCG Matrix Within the BCG Matrix, GTM Bids fall within the cash cows category. This is attributed to the fact that the company has a large market share in the construction tendering services but its growth within this market is relatively slow. The company’s profits and generation of cash is high and low investments are needed because of lower growth rate. This further illustrates the company’s position within the BCG Matrix as that of cash cows. Perceived Customer Value Map GTM Bids employs value based pricing in its tendering services for construction companies. This is an effective business strategy which can be measured with the use of Perceived Customer Value Map to determine the level at which customers are satisfied by the company’s products. The fact that GTM Bids has a large share in the market, its performance is high. In this sense the construction companies are likely to perceive the company’s tendering services as the best value for their money (Mostafa, 2009, p. 670). Ansof Matrix on GTM Bids Growth Strategy The effectiveness of the growth strategy employed by GTM Bids is demonstrated by its focus on market penetration. For example, the company sells more than one tendering services to construction companies. This illustrates that the company has employed diversification as one of its growth strategies. However GTM Bids should also focus on market development and product development as effective growth strategies. Pestle Analysis Political environment The political environment within the UAE is relatively stable and supportive to business ventures and growth. This demonstrates a favoring business environment for GTM Bids which allow it to meet its business objectives efficiently. Economic factors The economy of UAE is growing steadily. This has resulted into increased investment especially in the construction business. Many construction companies are therefore sprouting within the region which is reflective of an increase in the customer base for GTM Bids. Social Cultural Factors The social cultural factors affect the manner in which businesses are done within the UAE. This is demonstrated by high regard for relationships and the social aspects of doing business. It is therefore evident that an understanding of the social cultural environment is required by the management of GTM Bids so that effective and successful business relationships are developed with the construction companies. Technological environment The UAE economy is being driven by the changes in technology. The application of information technology in business processes such as tendering shapes the success of GTM Bids in the business. Because the company has not effectively implemented technology in facilitating relationships and communication with construction companies, an online tendering service has not been implemented. Legal considerations The legal environment defines the operations of GTM Bids in is tendering services. The company is also obliged to pay taxes as required by the regulations in the states of its operation in order to avoid clashes with the government. Ecological factors GTM Bids has an elaborate corporate social responsibility document which defines its role in the preservation of the environment. This responsibility should be adhered to so that the company will be able to enhance its image in the market. Customer Focused Organization Since GTM Bids is having a relatively share in the market for its tendering services, it is arguable that its customers are satisfied by the services that they are offered. However the company to focus on provision of exceptional tendering services to the construction companies through technology mediated efficiency. Company Performance and the Importance of Marketing Metrics GTM Bids is demonstrating an attractive performance in the tendering services for construction companies. This can be explained through its focus on brand awareness, customer statistics and customer satisfaction. The company should also analyze and evaluate its share within the market so that strategic decisions are made in regard to the market share that it aims at achieving. Dynamics of Market Demand and the Product Lifecycle The market demand for tendering services within the construction industry of the UAE is very high. This is attributed to the rapid growth of the economy in this region which is majorly mediated by the construction industry among other industries. It is therefore recommended for the company to take advantage of the high market demand to improve its sales. Understanding the Customer Experience The experience of customers in the use of GTM Bids tendering services for construction material will significantly determine their loyalty to the company. It is therefore recommended for the company to perform a market research exercise through which it will understand the customer experiences and use them as the basis for improvement. Understanding Market Segments The market segments of GTM Bids include government agencies, non-governmental organizations, business organizations and companies which deal with construction work. The customers within each of these market segments have different needs. It is therefore necessary for the company to understand the needs and demand within each of its market segments so that it would effectively provide tendering services to its customers. Value Pricing Strategies and Customer Value The strategies which GTM Bids uses in setting prices on its tendering services are based purely on the needs of the construction companies which comprise of its market and consumers. This is attributed to the increase in the market share that the company has enjoyed in the recent past in addition to the foreseen future growth. Market Share and Evaluating Share Strategies The increasing share in the construction tendering services within GTM Bids discloses its understanding of how it could achieve a high market share. This has been made possible through an evaluation of market share strategies by the company and employing them to win more companies to its services. Marketing Channels and Channel Mapping The business success within GTM Bids has been achieved through its ability to effectively map its marketing channels. The link of construction companies to suppliers and distributors of construction material in the tendering process is attributed to its growth. However, it is recommended for the company to alter its channel map so that a direct marketing channel through the internet is achieved for increased efficiency. Marketing Communication Objectives The objectives of marketing communication within GTM Bids are designed to ensure that the market is informed adequately about its tendering services. The effectiveness of the company’s marketing channels is however demonstrated by the fact that the marketing communication convinces the market that the services the company provides are of the highest quality within the UAE market and as a result convince them to purchase these services. Portfolio Position and Strategic Market Plan The company’s service portfolio falls at different levels. However the strategic plan for marketing its services aims at ensuring that all of its services are equally attractive in the market. Offensive Strategic Market Plans The strategic plan within GTM Bids involves entry into new markets both locally and internationally. This strategy is defined within its business objectives which make the company effective in making use of the market opportunities for tendering services Recommendations The focus of the company on its operational excellence should be improved through implementation of technology so that customer intimacy with the company is achieved and maintained. GTM Bids should also focus on market development and product development as effective growth strategies. Corporate social responsibility should be adhered to by GTM Bids so that the company will be able to enhance its image in the market The company should also analyze and evaluate its share within the market so that strategic decisions are made in regard to the market share that it aims at achieving. It is also recommended for the company to take advantage of the high market demand to improve its sales (Hesson, Hayder and Samaka, 2007, p. 348). In addition it is recommended for the company to perform a market research exercise through which it will understand the customer experiences and use them as the basis for improvement. Finally it is recommended for the company to alter its channel map so that a direct marketing channel through the internet is achieved for increased efficiency. References Aljifri, K., and Khasharmeh, H 2006, An investigation into the suitability of international accounting standards to the United Arab Emirates environment, International Business Review, Vol. 15, pp. 505-526. Behery, M 2011, High involvement work practices that really count: Perspectives from the UAE, International Journal of Commerce & Management, 21(1), 21-45. Hesson, M., Hayder, A and Samaka, M 2007, Business process reengineering in UAE public sector: A town planning case study, Business Process Management Journal, 13(3), 348-378. Kargwell, S and Inguva, I 2012, Factors influencing the first generation entrepreneurs: An analytical study on the graduates of UAE universities, International Journal of Business and Social Science, 3(7), 202-207. Mostafa, K., H 2009, UAE corporations-specific characteristics and level of risk disclosure, Managerial Auditing Journal, 24(7), 668-687. Read More