Marketing Management - Report Example

Marketing Management Table of Contents Introduction 3 Marketing Strategies Used by Hassani 4 Safa 4 Target Market Segmentation 4 Characteristics of its Consumers 5 Branding and Positioning Efforts 6 Marketing Mix Strategies 6 Melody 7 Target Market Segmentation 8 Characteristics of its Consumers 8 Branding and Positioning Efforts 9 Marketing Mix Strategies 9 Alkhaleejia 10 Target Market Segmentation 11 Characteristics of its Consumers 11 Branding and Positioning Efforts 11 Marketing Mix Strategies 12 Conclusions and Recommendations 14 References 15 Introduction Marketing management is regarded as a business study, which tends to facilitate modern business organisations in applying effective marketing techniques and various related applications. As Kotler & Kevin (2011) quoted in this similar concern that, “The first decade of the 21st century challenged firms to prosper financially and even survive in the face of an unforgiving economic environment. Marketing management is playing a key role in addressing those challenges”. Indeed, in the modern day context, the significance of marketing management has been increased for companies in manifold with the increased level of globalisation and internationalisation. It can be apparently observed that there lay numerous issues, which can be related with marketing management. Thus, in order to gain competencies to deal with such challenges of marketing management, companies have often been observed to take innovative measures. The varied dimensions of marketing management have accordingly become increasingly complex and wide-ranging, incorporating the thoughts of brand as well as customer relationship management and supplier along with cost control measures (Crittenden & et. al., 2011). Specially mentioning, marketing management involves multiple dimensions, with market segmentation needs, customers’ buying characteristics as well as branding and positioning criteria being a few of the primaries. To incorporate these dimensions in a strategic and objective oriented manner, companies have to follow various frameworks, such as the marketing mix framework (also known as the 4Ps model) that can ensure proper alignment between its marketing initiatives and organisational goals (Kotler & Kevin, 2011). With the intention to examine these notions in depth, the marketing strategies applied by Hassani Group of Companies will be considered in the discussion henceforth. Hassani operates as a family owned company in the United Arab Emirates (UAE) dealing in five different operational dimensions, which include trading and distribution, manufacturing, food manufacturing, retail & services and real estate & contracting (Hassani Group, 2014). To obtain better understanding of the marketing strategies applied by the company in these three brands, a comprehensive account has been provided henceforth. Marketing Strategies Used by Hassani For each of the three brands owned by Hassani, i.e. Safa, Melody and Alkhaleejia, a brief elaboration is provided in the following discussion, elaborating on the applied target market segmentation, characteristics of the customers’ buying behaviour, branding as well as positioning strategies and the marketing mix strategies applied in the market context of UAE. Safa Target Market Segmentation Under this particular brand, Hassani offers a variety of products ranging from multiple ketchup flavors to edible oils, semolina, cake mixes, sugar items, ready to mix drinks, and sauces (Hassani Group, 2014). These products are apparently targeted towards households, especially the women sector, considering women as the targeted customers. These products can also be categorized as the raw materials for the households of UAE, justifying the target of the company to be concentrated on the women sector; stating specifically, housewives. As Kotler & Kevin (2011) argues, segmenting the targeted market is essential to confirm that the products are efficiently offered to the intended customers so that highest potential return can be obtained. Accordingly, it becomes arguable as to whether the marketing strategies applied by Hassani are well acquainted with the market trends that will offer it such advantages of target segmentation. For instance, the products offered by the company are also observed to be preferred by industrial users rather than the households. However, for industrial purposes, the company restrains from offering any special discounts or purchase benefits that in turn limits its market potentials largely. With reference from Kotler & Kevin (2011), the company can thus be criticized to lack adequate efficiency in obtaining highest returns from the target market. Characteristics of its Consumers As mentioned in the above section, the targeted consumers for this particular brand involve housewives and families in UAE. The products offered by the company under the brand name of Safa, suffices the requirements of households in the nation. Correspondingly, when observing the food market trends of UAE, it becomes apparent that bargaining power of the customers has changed drastically over the past few years. Rise in per capita income of targeted customers in this sector has also led to changes within the industry context, wherein the buying patterns have shifted from local food markets to packed food products, with a greater inclination towards imported food items (Alpen Capital, 2013). Correspondingly, offering products at a global standard reflects the attempt taken by the company to suffice the consumers’ needs in the targeted market, which comprises housewives in UAE for its Safa brands. However, a degree of skepticism remains with concern to the gap persistent between the market demands and the strategies applied by the company, which can restrain the company from obtaining complete benefits of the market potentials (Kotler & Kevin, 2011). In order to identify whether such gap is persistent within the target market of Safa, the discussion hereunder emphasizes its branding and positioning strategies. Branding and Positioning Efforts The connection between customers and the product can further be identified by assessing the branding and positioning strategies applied by the company to ensure that the offered goods are able to attract the specific targeted consumer group efficiently (Kotler & Kevin, 2011). When assessing the branding efforts by Hassani, to market its Safa brand, it can be observed that the company uses its packaging strategies with greater efficiencies to inform its customers and attract them towards their ultimate purchase. In addition, by positioning the brand in the retail sector, the company also ensures that targeted customers have easy access to the product, at their conveniences, which further contributes to their degree of satisfaction and loyalty towards the same (Kotler & Kevin, 2011). Marketing Mix Strategies Product: As mentioned in the previous sections, product strategies of Hassani to offer its Safa brand is largely concentrated on making the goods available to customers in wide assortments and at a global standard (Hassani Group, 2014). This indicates its intention to mitigate the gap between the strategies applied and the target market trends (Kotler & Kevin, 2011). Price: Considering the high bargaining power of consumers in UAE, and also their rising purchase capacity, the price charged by Hassani for its products are moderately high, which satisfies the quality demanded by the customers as well as assures a greater degree of customer value accordingly (Hassani Group, 2014). Simultaneously, it can also be argued as to whether it gives rise to monopolistic power of a few sellers in the market to be unaffected by the customers’ rising bargaining power (Kotler & Kevin, 2011). Place: The brand, Safa, is placed in the retail sector of UAE to suffice the needs of a larger proportion of households in the urban society of the country. This particular strategy can further be asserted to allow the company to reach a larger customer base, which in turn increases the marketability prospects of the products (Hassani Group, 2014). This also indicates that the company has withdrawn from serving industrial customers within its targeted sphere, which in turn hints its lacunas in marketing the brand (Kotler & Kevin, 2011). Promotion: Undoubtedly, preferences of the customers to purchase Safa has largely been a result to its branding strategies, with due significance to the proper packaging of the products. In addition, the company also aims at advertising the products through various media means, which in turn helps it create a positive impression amid the customers and thereafter, trigger market demand in a favourable manner (Hassani Group, 2014). This signifies the commitment of the company to build a better relationship with its customers that may minimise its market risks as well as offer it with added competitive advantages irrespective of the above identified lacunas (Kotler & Kevin, 2011). Melody Similar to Safa, Hassani also offers Melody as a retail food brand in the market of UAE. If considering from the point of view of the marketers, both these brands have minimum differences in the product category they deal in. Differences in terms of their strategies have also been observed as minimal, with overlapping characteristics to attract customers (Hassani Group, 2014). A major reason for the similarities can be the intention of the company to take competitive advantages, by controlling substitution effects in the market, which can be better understood following the elaboration of the targeted market segment. However, this can also be observed as a measure taken by the company to attain monopolistic advantages from the market which might in turn affect the competition within the targeted segment (Kotler, 2013). Target Market Segmentation Stating precisely, target market segmentation of Melody is quite similar to that of Safa. This particular brand can also be observed as targeting the urban community of the country, especially the housewives from within the sector. The target market segment, as revealed in the industry report by Alpen Capital (2013), is affected by the increased bargaining power of the customers, wherein the buyers not only possess greater purchase capacity but also enjoys high substitution effects amid the offered brands. Perhaps, it is to obtain greater competitive advantages by offering the customers with selections from different brands but one producing company. This increases customer demand for Hassani, as well as assures larger customer base to the company in turn. This can further be argued to prove the intention of the company to gain monopolistic power over other companies by acquiring a large proportion of the targeted market (Kotler & Kevin, 2011). Characteristics of its Consumers Customers of this segment can be categorized on the basis of their characteristics to bargain, especially on the basis of the quality demanded. As per the current market scenario, this particular segment offers the benefit of larger buying capacity to the company, allowing it to attain a higher margin of profit (Alpen Capital, 2013). Branding and Positioning Efforts When compared with the branding and positioning strategies applied by Hassani in marketing its products under the brand name of Melody with that of Safa, not a wide range of difference becomes apparent. The branding strategies and positioning efforts used by the company in both these brand categories focus on the wide assortment of its products as well as attractive packaging to keep its customers informed about its product features and simultaneously, differentiate from other available competitive brands (Hassani Group, 2014). As argued by Kotler & Kevin (2011), variety and diversity in the product line of a brand certainly add to its competitive advantages. However, in the case of Melody, Hassani reflects a strong intention towards aggressive competition within the country. Marketing Mix Strategies Product: Under the brand category of Melody, the company offers a wide-assortment of products to suffice the needs of its targeted customers. Each of these products, further come in different packages, sizes and shapes that are intended to suit the requirements of the customers targeted by the brand (Hassani Group, 2014). Correspondingly, this adds to the value of the brand to its customers (Kotler & Kevin, 2011). Price: The prices charged for the products under the brand category are not quite different to that of Safa. With controlled differences in the prices of the products, and the two brands accordingly permits the company to gain a degree of control on the buying decisions of the customers (Hassani Group, 2014). At a wider scale, this may also be argued to offer monopolistic power to the company over other competitors (Kotler & Kevin, 2011). Place: Similar to Safa, Melody also targets the urban society of the country, used to purchase packed foods rather than consuming foods directly from the local vendors (Hassani Group, 2014). This particular strategy thus intends to reduce substitution effects within the target segment of the market (Kotler & Kevin, 2011). Promotion: The products are promoted applying the traditional methods and concepts, comprising advertisements in various media channels. Promotional and seasonal offers are also a major promotional strategy applied by the company (Hassani Group, 2014). However, its insignificant or lacking concern towards aggressively promoting its products raises questions against the thought that Hassani intends to gain monopolistic power by attracting the larger proportion of the target market segment (Kotler & Kevin, 2011). Alkhaleejia Unlike the two brands of Hassani discussed above, its third brand, i.e. Alkhaleeji presents a much narrowed product line, with only one type of product. This brand only deals with ready to cook pasta for the urban society of UAE. Accordingly, the marketing strategies applied by the company to promote this product are much simple and follows a traditional approach (Hassani Group, 2014). Target Market Segmentation The products offered under the category of Melody, targets mainly the young adults and children from the UAE community. The product is deemed to be suitable to suffice the regular needs of these groups of customers, within minimized effects to their nutritional requirements as compared to the rising preference of fast food among them (Hassani Group, 2014). However, there might be other segments preferring these products, such as the industrial segments wherein small restaurants and other food companies shall be its targeted consumers. This signifies that the target market segment for Alkhaleejia is somewhat vague and unclear that might again have a negative impact on the company’s market efficiency (Kotler & Kevin, 2011). Characteristics of its Consumers Consumers targeted for the brand by Hassani comprises mainly young adults and children. The recent trends observed in the market depicts that the inclination of the targeted customers are shifting towards fast-food products, which are often deemed as harmful to their nutritional requirements. As a result, demand for nutritious ready foods has also increased to control the shift (Alpen Capital, 2013). However, from a critical assessment of the product characteristics and those of the target market, the company also has potentials to focus on the segment of small food companies. Branding and Positioning Efforts The brand is packaged with information about the nutritional values offered to the customers. It is also positioned among the retail customers with due significance to the quality demanded. It is noteworthy in this context that although the ultimate consumers of the product comprises children and young adults, the brand targets UAE households, mostly mothers, to influence their purchase decisions (Hassani Group, 2014). The marketing strategy to package and deliver food to consumers with efficiency also signifies the attempt of the company to differentiate its brands from other substitutes and thus, create an impression of its targeted segment, which in turn would reward it with competitive advantages (Kotler & Kevin, 2011). Marketing Mix Strategies Product: The product is served in two types of packages as well as in variety of tastes to suffice the preferences of the customers targeted. Unlike the other brands, the marketing framework used for this brand is much simplified and follows a traditional framework (Hassani Group, 2014). On the other hand, it also reflects the limited exposure given to this brand with lesser variety and diversity as compared to its counter parts available in the market as well as those offered by Hassani. As Kotler & Kevin (2011) argued, such limitations may certainly affect the ability of the company to obtain complete potentials of the market. Price: The price for these products is kept low as a greater significance is provided to the nutritional value of the same. In addition, although the customers have a higher purchasing power, keeping the price low helps the company to ensure that its sustainability objectives are considered with due significance by its consumers (Hassani Group, 2014). Nevertheless, with lesser variety and lower price, the value contribution of the brand becomes doubtful in this context (Kotler & Kevin, 2011). Place: Irrespective of the above mentioned dissimilarities, the brand serves the same place as its other counter parts (Hassani Group, 2014). However, it is quite unlikely to add value to the brand or its customers, as it lacks differentiation qualities as well as aggressive exposure to attract the targeted market segment (Kotler & Kevin, 2011). Promotion: The product range under this brand is promoted more frequently but not aggressively as compared to the other products, wherein the message is strongly emphasised to exhibit the nutritional values of the same. However, the mechanisms used to promote these products can be observed as similar to the other brands (Hassani Group, 2014). Overall, even though the brand offers limited market value, but simultaneously it delivers greater sustainability to Hassani, by developing its image as a socially responsible brand, which is again considered as a major contributor to competitive advantages obtainable by a company (Kotler & Kevin, 2011). Conclusions and Recommendations With due significance to its social responsibilities as a food manufacturing and retailing company, Hassani has also been much emphasized towards its supply end efficiency with similar effort in the distribution side. While the raw materials are collected from the local producers, the company prefers to manufacture its food items offered under the mentioned three categories of brands (Hassani Group, 2014). Applying the integrated marketing communication theory, the company has also been paying considerable attention towards ensuring that the values of social responsibility are properly channelized to its suppliers as well as customers. In doing so, the company pays much attention towards incorporating marketing strategies that are aligned with its organizational objectives along with the market trends of the industry. As the study clearly exhibits, the company has paid much attention towards ensuring that the products are in alignment with the customers needs along with the demanded capacity of offering huge comparative advantages to the company without having any negative affect to the interest of its stakeholders (including both investors and customers). Hence, it can be concluded that the company has been successful in applying the integrated marketing communication approach, based on the findings obtained from the study. To be recommended in this regard, the company needs to convey a succinct vision of the organization through its brand management technique, which would further help it to develop its relationship with the targeted customer group. It also needs to balance the marketability of its brands so that negative impression can be restricted within the market, while it aims to achieve greater competitive advantages (Kotler & Kevin, 2011). References Alpen Capital, 2013. GCC Food Industry. Download. [Online] Available at: http://www.alpencapital.com/downloads/GCC%20Food%20Sector%201%20May%202013.pdf [Assessed November 6, 2014]. Crittenden, V. L. & et. al., 2011. Market-Oriented Sustainability: A Conceptual Framework And Propositions. J. of the Acad. Mark. Sci. Vol. 39, pp. 71–85. Kotler, P. & Kevin, K., 2011. Framework for Marketing Management (5th Edition). Pearson Education, Inc. Hassani Group of Companies, 2014. About the Group. Home. [Online] Available at: http://hassanigroup.com/ [Assessed November 6, 2014]. Hassani Group of Companies, 2014. Safa. Our Brands and Products. [Online] Available at: http://hassanigroup.com/safa/ [Assessed November 6, 2014]. Hassani Group of Companies, 2014. Melody. Our Brands and Products. [Online] Available at: http://hassanigroup.com/melody/ [Assessed November 6, 2014]. Hassani Group of Companies, 2014. Alkhaleejia. Our Brands and Products. [Online] Available at: http://hassanigroup.com/alkhaleejia/ [Assessed November 6, 2014]. Hassani Group of Companies, 2014. Our Company. About the Group. [Online] Available at: http://hassanigroup.com/alkhaleejia/ [Assessed November 6, 2014]. Read More