The Daily Packers Marketing Strategy - Research Paper Example

Executive summary The Daily Packers limited is a fast growing company that exclusively deals in the snacks business. Its major focus is in the production of cheese and this means that it is a fast food firm in the snacks industry. The snacks industry is a very competitive business venture and efforts are necessary if success is to be achieved or be maintained. Though, the Daily Packers limited has been experiencing an unfrequented growth level, there is still room for improvement. In order to achieve the sought after success, the Daily Packers limited has a duty to adopt a known and approved market strategy. The diversification strategy offers the best avenue on which the Daily Packers limited can march forward in this era of globalization. Through diversification, the company gets into a strategic position in terms of boosting her revenue. By diversifying their financial sources, the firm stands to secure the much sought after capital that can enhance investment activities of the company (Anon, 2005). Diversification by venturing into new markets offers a good opportunity to the company to increase its market share and thus securing more revenue. Through acquisition of new firms, the Daily Packers limited gets the chance to increase its operations. Increased operations transforms into expansionary effects in business. However, diversification is seen as the most risky business venture. It is only proposed to a company that has saturated its market. On the realization that the Daily Packers limited has only concentrated in the United Kingdom, it is advised to seek other markets through diversification. Background Snacks range from; nuts, potato chips, seeds, popcorn, and crackers. The market size of companies that are engaged in the snacks production and processing industry vary, just as is the case in any business (Anon, 2009). Market size is the geographical spread of the consumers that use a company’s product. The amounts of sales are also indicative of the market share of a company. The Daily Packers limited is a snack company whose primary focus involves the preparation and packaging of processed products of cheese (Simpson, 2009). The firm’s main operational base is at Coleraine, from which point it runs its operations. The company enjoys a big contract that amounts to millions of dollars requiring it to supply Mc Donald’s giant food industry. The company also supplies its products to big supermarkets in the United Kingdom and the Northern Ireland republic. This company is an integrated part of the Kerry group of companies. The Kerry group of companies is a leading group that ranks among the best one hundred companies in the Northern Ireland republic. Corporate objectives The major objective of the company is to improve its operations. Attendant to this is the need to increase sales through the enlargement of the production scope. Obtaining a world class position is the major objective of the company. These objectives will be achieved through diversification. Though diversification has got risks like: loss of culture, probability of the deal falling through, among others, it is a worthwhile venture for the Daily Packers limited in its pursuit for expansion and growth. As it appears, if you get your strategy wrong, you also send your business into the wrong direction (Anon, 2009). Marketing audit The trading turnover of Daily Packers firm has been growing over the years. The year two thousand and eight saw the company turnover rise by thirty one percent on comparison to the preceding year (Simpson, 2009). Employment provided by the company also increased by about four percent. Other important business groups like Invest group of Northern Ireland added towards the daily’s investments by offering around one hundred and twenty thousand pounds Assumptions Of all the business marketing strategies, diversification runs the biggest of risks and as a result it calls for a detailed examination before being pursued. Venturing into a new market on which there is no experience on the part of the company operatives poses a serious business risk. It amounts to jumping into uncertainty. It may also require huge financing which may not be easily available. The underlying assumption here is that this strategy would gain momentum. Marketing objectives and strategies Diversification is a business mode that focuses on adding to the existing level of sales. This system of increasing sales is achieved through acquisition of new markets or the production of new products. The other form of diversifying may extend to the financial aspect of the company. Concentric diversification may be called for when there is a technical link between industries. For this to be achieved, the firm must be able to use its strong position in the current time in order to gain advantage. Instead of focusing on wholesale mode of distribution, the company should consider enlisting the services of retailers so as to increase the market penetration. The company is advised to find out what other products can be produced using the current technology and the existing plant machinery. Such an effort will see the company increasing its production and as a result add to its scope of production. The encouragement to use horizontal diversification is a very attractive proposition which is available for consideration for the company. In this case, the firm is supposed to add goods to its production which are not related either commercially or technologically. This is only to be introduced if, and only if it satisfies the current crop of customers or any other targeted group of consumers. This method is however best suited to the company given the competitive nature of the first moving foods industry. The loyalty of customers will also determine the efficacy of this diversification strategy. The new products to be added into the production list must be rightly priced and marketed well through advertisements and other mechanisms that achieve desirable results. However, this strategy is best suited for those businesses whose major goal centers on controlling a certain business segment. Given that the Daily Packers limited has a big market share in its areas of operation, it is imperative to adopt this diversification mode so as to reign on the market. Another form of horizontal diversification arises when a company makes entry into a new business. The company, as mentioned earlier in this paper should consider producing other products which are used together with the cheese ones. Alternatively, business companies can use conglomerate diversification. In this system, the company also markets products that have no commercial or technological relations to the ongoing production. Though this system diverts from the production line of the company, the idea is to garner higher profitability and stability. This strategy also enhances the reputation of the company in the stock market listing. There are two major justifications for diversification. The first one is the nature of the objective for diversification. The second one relates to the expectations of diversification. The first justification entails both offensive and defensive concerns (Lipsey, 1999). The second one is about the chances of economic growth and expansion. Economic benefits would range from exploiting the current business setting to establishment of a new and better business set-up. Before diversifying, the kind of company to join hands with must be either very attractive or have a potential to be made attractive. The entry cost must also be looked into. The cost must not be the one that hugely affects the future profits of the company (Michael, 2005). The new acquired subsidiaries must be in a position to gain a comparative advantage in the market against the other players in the industry. It is true that companies seek diversification for a variety of reasons. For some businesses it may be a survival strategy, while for others it would be necessary to move forward. For this company, considering the health status of its financial reports, it is suggestive that the requirement for diversification is not to survive in the market, but rather to expand its operations (Weinstein, 2004). Estimate of expected results Having diversified the company is expected to boast for bigger sales returns. It should be noted however that at the beginning of the expansion, the company’s financial position may look unhealthy due to the huge investments. As time goes on, this is cancelled out by increased returns. Alternative plans The company should think of diversifying their products. Having attained a leading role in the cheese industry in the United Kingdom, it is discernable that the company has been progressively doing well (Green, 2003). So, it is upon its directors to take advantage of this and venture into production of other products that compliment the current products. Given that the company brand already enjoys much leverage against its competitors, it stands to gain through this venture. For instance, the company should consider venturing into the provision of iced products to cater for the cold season. Such a measure is bound to increase and spread sales through the year. It has been revealed from above that this company is almost exclusively positioned in the United Kingdom. Through diversification, funds should be sourced to ensure that other markets are brought under the control of this company (Gunter, 1998). Through these funds, the company should embark on increasing its production level. An increased production will then be made available to new markets. The new markets will then in the end add up to the company returns. These returns will in turn be made available for expansion From this small synopsis, it is clearly noticeable that the company has been on the rise. Through other mechanisms like the commissioning of its first daily in the1970’s has significantly paid off. The primary reason of constructing a business is to gain profits. On this basis a company needs to appropriately understand the area of operation, the expected challenges, and the availability of opportunities, the current and potential challenges that surround the business sphere (Anon, 2005). The realization that this company activities are almost exclusively operating in the United Kingdom shows that the company has a wide room for improvement. Expansionary measures need to be explored. The most appropriate way to achieve this expansion is through diversification. Diversification should cover the areas of finance, product branding. Two other things that influence the current state of marketing are globalization and technological issues (Kaynak, 1993). The companies that view their businesses in global terms stand a big chance of beating the present day multinational corporations. By aggregating the aforementioned forces, the company would enjoy greater reliability, high quality, and a bigger standardization in their products. The major positive note of this is that it will be achieved at a relatively lower cost which in the process enhances the expansion of a company’s market profits (Greco, et al, 1997). According to (Kaynak, 1993), there are several stages to be passed before attaining the ideal global point in marketing for a business. The first stage sees the company as a local marketer that basically operates within the precincts of the country of origin. At the second stage, the company seeks exporting opportunities to the outside world. On the third stage, the firm obtains the multinational corporation type of business status. Fourthly, the producer approaches the pan-regional dominance standing, and finally, the company attains global supremacy. After hitting the global supremacy point, the business is at its peak and though improvements can be made, it is rarely possible. However, this may not be the end in diversification as the company can still seek new business opportunities. .Since the company is currently doing reasonably well; it does not call for rebranding in a bid to sell more. What needs to be done is extensive advertising to the global populace. Advertising may be very expensive, but given the kind of returns that arise from it, the company should simply go ahead and massively position itself on the global business map. This will be a necessary step because a moment will reach when the market becomes saturated. To avoid hitting this end the company ought to diversify and acquire other markets outside the current area of operation. But it is advisable to retain the existing customers before focusing on acquiring new customers (Temkin, 2008). Diversification through natural succession is also available to the company. As a company engages in production activities, it incurs expenses while at the same time raising revenue. The raised revenue should constitute the basis upon which the company moves forward. The generated funds should be re-invested back so as to increase the company’s portfolio. Any sound re-investment is bound to achieve positive results towards the transformation of the company into a global force in terms of business supremacy. The strategy of looking at the back and the front should also be considered. This will guide the company to tighten its grip on the supply chain so as to consolidate its position. The strategy puts in the first success lane, but it runs the risk of exhausting the business money. The ability to employ big people and free them thereafter will be a great addition to any company that aspires to score big in the business front (Card, 2008). While seeking to employ the management staff, the ability to find the best men would be a great asset for any company. Talent and meritocracy ought to be the cornerstone of selection of people to all offices. On opportunities that require skills and experience, the approved guidelines must be observed to the letter. This should apply to all job cadres in the firm. This fairness in recruitment will go a long way in appealing to customers and other people (Murray, et al, 1996). An understanding that each individual has an equal opportunity to secure employment, holding other factors constantly present a good image to the public. Such publicity serves to advertise the company products at the same time. With this kind of publicity, the strategy of diversification through spreading and opening the employment system would secure the top level brains to offer the business the necessary ideas to move the company forward. Top drawer managers are known to offer great man management skills. By appointing such individuals, the company stands a good chance in satisfying its work base (Kamakura, 1999). A satisfied work base is a necessary condition for any company that aspires to succeed. From this workforce, high results will be achieved as a result of enthusiasm at the work place. It is this top drawer management that will direct operations in the business in order to attain success. They will, for example advice on the size of the work force, the need for rebranding when necessary, where to source for business funds among other important aspects of the business. Measures to diversify demand require that research be done before embarking on this mission. Research requires a large and constant financing flow to be successful. Through the sourcing of funds from commercial banks or any other financial institutions or finding funds using internal mechanisms depending on the convenience should be considered (Wilson, et al, 1992). It is through this kind of research that problems or action areas will be identified. After the identification has been made, the recommendations arising from the research should be implemented accordingly. The financial diversification aspect ranges from the kind of places to source funds to the kind of staff one employs. On the employment front, the company should employ a section of its top leadership from the financial expert cadre (Moschis, 2007). Financial experts are obviously available in any business of note, but the acquisition of top class financial analysts will provide a great growth opportunity for the business. They will for example give an insight on potential investments. They also advise on the best moments to make actual investments, they provide vital information on firm acquisitions. Basically, the quality of the financial experts at the disposal of a company hugely affects its financial well-being and the future as a whole. Though as currently constituted, the company financial experts may be worthy the task but to take the business forward more needs to be done, and this is the requirement that additional input in the financial department be injected. The diversification strategy by acquisition of other firms operating in the same or outside industry is a must to be considered for this company (Subhash, 1997). Earlier on it was revealed that the company became integrated into the Kerry group. This may be a noble idea in as far as it helps the business in going forward, but the company ought to consider acquiring subsidiaries to help improve its sales. In the same breath, mergers should be considered. Organization integration offers great opportunities for growth to the involved businesses. If the deal is a success, the huge benefits in terms of profits will be greatly pronounced. It should however be noted that the principle of merging is a challenging issue that needs to be carefully negotiated. Such deals can collapse; identities may be lost, among other things (Rhodes, 2009). Measurement and review It is only after attaining stability that diversification is to be envisaged. This is so because of the risks that have already been addressed that include loss of culture of a business or its identity, the likelihood of a merger deal to go through, the drowning of a company’s finances, among other reasons (Moschis, 2005). Given this position, a company should only consider diversification after reaching a reasonably superior point that makes it difficult for the company to regress in business terms. It is also advisable that when a company has reached its saturation point, it may be the time to seriously consider diversifying its products. It is true that the range of options available to a company that is seeking to expand is unlimited. However, the choice depends on the current position of the company in terms of financial standing, the company objectives, its mission and vision among other considerations. Due to the uncertainty that surrounds marketing strategies, there is need to carefully consider the risks before this venture is entered. This seems to cast a cautious approach to marketing. However, this should not mask the potential gains that accompany a successful implementation of a marketing strategy (Chisnall, 1995). It is argued that the bigness of a risk could be a cause for a huge return. It is my belief that if the Daily Packers limited chose to grow and expand, then diversification is the way to go. A perspective presents a way in which issues are viewed. As a result, a business perspective is a presentation on how the conduct of business should be seen (Wendlandt & Jackson, 2009). Different perspectives to business are available to all types of businesses though the choice on which the perspective to adopt lies with the business administration and its owners. In this paper, the focus will be on the global business perspective, the data compilation perspective, and, the visionary perspective. A global business perspective is an ideal beginning point for a business that aspires to be a force in the globe. To attain a global standing a company must have effectively used the available avenues of telecommunications both in an efficient and effective manner. The need to popularize a company product is clear cut. A brand name of a company means so much to the company and its business. To attain a global brand name, a company has the option of using the tools of telecommunication to make it a reality (Rhodes, 2009). The power of telecommunication fosters the interaction between companies and also promotes interdependency. As this case has been highlighted, interdependence and interactions between companies promote business. For instance, from mixing with other companies, the Daily Packers Limited stands a pivotal chance to take its business to the next level. It is also true that through interdependencies, companies are in a good position to initiate merger or acquisition talks. The benefits that arise from this will help transform such businesses into global giants (Georges, 2000). In an interdependent environment, the diffusion of knowledge between companies is a big incentive for growth and development. Company employees get a vantage position while in co-operation with other companies. This knowledge transmission is good for the common good of the interacting companies (Ram, 2005). It is the benefit attained from such leveraging positions that help companies expand both their scope of production and the sales one. Competencies in the human relations, economics, marketing, and communications are a basic prerequisite in the business world. The benefits that accrue from competent staff can not be overstated. A competent staff will guarantee business huge returns by efficiently going about their activities. A good system of public relations for instance, means a good portrayal of a company. It is this department that literary sells the company (Weitz, et al, 2000). This is achieved through appearing in public for business conferences, and also by drawing appealing and attractive business advertisements that give the company a superior position in the eyes of the global populace. This adds to the superiority of a brand name by constantly reminding customers of the goodness in the consumption of certain products. The primary aim is to increase sales through the promotion of customer loyalty and trying to entice those that do not consume the products. Another important perspective concerns the data collection, compilation, and storage. The database of a company should form a basis on which operations are grounded. According to (Milne, et al, 1998), whether small or big, a business should be in a position to keep records that define its operations. This forms the core on which customer care services can be launched from. It is also necessary in the attempts to increase marketing efficiency and thus sales of a company. Gathering of information, say on clients may be a violation of privacy requirements, but a snack company needs to do this so as to understand customer needs and to be able to address them duly. The major focus for the Daily Packers Limited is to consider whether gathering and the subsequent compilation of customer data constitutes a violation of privacy. As it is mentioned above, the company’s intent is to address customer needs (Murray, et al 1996). Efforts should however be made to guard against leaking of information to unintended parties. Through use of such data, companies stand on strategic positions to control the market by provision of customer oriented products. This is a worthwhile perspective that the Daily Packers Limited should enforce so as to push its sales further forward. For a manager, it would be crucial to envision what the marketing strategies of the company are going to be and, which would be the best ways of executing the plan, how to achieve maximum output given the current state of technology, how to enlarge the scope of distribution among other considerations (George, 2002). Shareholders would also have their issues as what kind of profits do they stand to gain at a certain point in time. Conclusion The Daily Packers Limited group just as any other company must be having its vision. The onus is on the administrative wing of the company to put into operation the ideas that they have so that they can attain the position of global dominance. A vision is however only achievable if the whole company personnel is made to work towards it. It is not guaranteed whatsoever that the pursuit of the laid down guidelines would lead to the achievement of the company’s vision (Edward, 2000). For the Daily Packers Limited, the global business perspective can help it to march towards a position of global dominance. By adopting the communication approach suggested by the perspective, the company would have traversed large swathes of land and if successful added an array of customers to march into international stardom in business. The other perspective of vision would also offer a platform on which the company expands its production and sale activities. Data compilation perspective should also help the company arise in the business dominance ladder The study above only presents a number of perspectives. It should be noted that there exist others that are not captured by this study. Conclusion After successfully going through the range of options that are available to the Daily Packers limited, it is also necessary to point out that just as in any other business strategy, success is never guaranteed. As it emerges, several players in this business have a role to play. 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