Strategic Marketing Activities in Relation to Sim Brand - Case Study Example

Executive Summary This report seeks to examine the details of strategic marketing activities in relation to Sim brand in the upcoming markets in parts of the European and Asian milieus. The smart mobile phone market is an up-and-coming market; organizations require building up their marketing strategies to go through into the mobile-based market. In start of the process, according to the viewpoint of the industry, European markets are anticipated to grow at the rate of 30-100 % per year in the first year of beginning of the market. In the current situation there is less information about the mobiles in Asian market but because of the high population the portable market will create the responsiveness of the mobiles and in the globe of Smartphone. In addition, it is anticipated to expand at a faster pace than the European souk. We need to maintain focus on the decisions yearly to make them to confine the market portion as much as possible and it should concur with the forecast in order to match up the anticipations of our organization. This report offers a summary of the strategies practised and the organizational decisions made in tandem with the purpose aforementioned. Being the team leader of White B02C, I fully participated and played all the ten rounds whose outcomes are discussed in this report in the subsequent sections. Brand Outline The Strawberry has motivated the evolution of the world of Smart phones by bringing the high and low-end phones in the market. The cost is reasonable in both the Asian and European market. In addition, the phone has extensive and superior features like face identification and fingerprint interpretation. This makes the products unique in the market and this aspect represents the fundamental instrument in the organization’s bid to penetrate in the ever-embryonic markets of smart phones. Concerning this, the Strawberry Company is planning to institute itself in the market milieu as the leader by bringing modern features and technologies in the Smart phones industry. The company has a sister concern firm which produces the smart phones while Sim Brand deals with the marketing activities, investigations and expansion of activities to develop new concepts and technologies. The company has divided their products into three dissimilar design groups. They include Avant-grade, Sports design and the Classic design. It is imperative to note that the Sport design is the main sale in the market. On the other hand, the lower end section prefers classic products and the Avant-grade design is being used by the niche customers. In addition, the Company management is accountable of keeping a control –measure responsible for allocation of the advertisement budgets through dissimilar distribution channels. This is critical in keeping the company Research and Development up date. The company has a more focused effective and efficient group to evaluate and offer guidance on the performance that requires to be attained at each landmark. Situational Evaluation The Industry and Organization The company has begun its operations in two up coming markets i.e. Europe and Asia. These two regions are regarded as new markets prime for Smartphone penetration. This study indicates that, Europe is the first target due to the knowledge about the product. It is anticipated that, the growth trend will be considerably high in the coming first year. On the other hand, the Asian market the demand is not that intense in the present situation however, it is forecasted to grow significantly and may exceed the European market. These two markets are sub-divided into corporate and consumer segments. Further two in each, one for niche market/high end market and the other for price sensitive /low end segment. The summary of this statement is as follows The two markets are bifurcated into high end consumers low end consumers high end companies low end companies The noteworthy issues include the following Since both the markets are dissimilar as per their actions, we need to opt diverse strategies for both the market milieu however, keeping the production measure at one point to keep the value of production comparable for both the nations which would be served by their sister branch alone. The European market milieu is an up coming market, which is attributed to the increased expansion whereas the Asian market is in its initial step of growth where the demand would be low however; the expansion would be high because of the system of effective decision making which motivates capturing both the markets consequently. As the competition is very high because of numerous participants in the market milieu, the demand is intermittent. Therefore, it is a aggressive market where the threat is relatively high. The market place for Smartphone is the character consumers or the walk-in clients and the shared companies. The organization has begun its activities in only two nations, which include Asia and Europe. They are further divided into four primary sections. Two under each of the groups aforementioned. Objectives The key issues and objectives of the company are listed as below: To attain net revenue of at least 200 -300 million Euros by end of ten years. To exploit the brand entity and its market share of products being bought. To offer the complete loaded Smartphone’s with modern features at a very reasonable price. To make the product a profit making unit in both European and the Asian markets. SWOT Analysis SWOT analysis is the pattern of Strength and Weaknesses of the organization, Opportunities and Threats of the market. Consider the following discussion. Strengths: The organization has kept its production unit at one point with its sister organization and the market activity decisions are being monitored for the production expenditure and the production approach which aids the management to run the work efficiently. Because of the two different units company maintains the expert professionals in the board to make effective and efficient decision. The markets are created in Europe and Asia that helps the organizations to maintain the competitive benefit. Weakness Company is focused to look after the marketing operations and the strategic decisions, it is totally dependent on the sister company for the production and their subsequent changes. Opportunities The organization is focusing on the Asian market milieu, since it is an embryonic market there is high growth in demand that creates a chance for the company to ascend the ladders for its incomes. Government has augmented the chances for the entity to develop their work by decreasing the interest rates, and increasing the external loans intended for the expansion of the capital in the entity. Threats There is a high competition due to numerous players in the market milieu and so the demand is variable. Strategic Approaches The organization’s vision, mission and the goals targeted This section of the report Vision The vision of the organization is to become the preferred Smartphone entity in both the European and Asian market milieu. Mission To offer the best customer knowledge, being a needed employer, creating worth for our shareholders and proudly contributing to the development of our nation. The organization has begun its activities in both the European and Asian markets. Where they have projected that primarily Europe would be the main market to create income in the first year of the entity however, on the other hand the Asian marketplace would develop radically on the later growth period of the market. Presently, the organization is needy on its sister anxiety for its production which produces the products according to the market research report generated by the Sim Brand and the products suggested by them. They offer the prices by use of invoices and the selling prices are dependent relative directly on the cost of manufacture and the marketing expenditure. The marketing activities include the cost of production, selling price and advertisement related costs are all anticipated as per the market outline and the expansion and demand is taken hand in hand along with the entity’s brand worth and brand image so as to exploit the income. Suggestions Decision evaluation This part of the report evaluates the decision made during the game from round 1 to round 10. Initially during round 1, the manufacturing has just started and hence there is no expenditure to production or sales income created during this round. It begun with beginning revenue created through repairs and the net profit is at 52 million euros. According to the market outlook and demand, in round 2-4, product 2 with Avant garde type has been produced in Europe market while product 1 of Sport type is used in Asian market. There is a huge growth in sales that has been noted during these three rounds indicating an effective decision being made. On the other hand, in round 5, product 1 and product 2 have been introduced together which shows that the profit margin has gone up at a very steep rate. Whereas in round 6 the same strategy of round 2-4 has been opted which shows some slight fall in profit margins consequently. Whereas in round 7 we had gone with the strategy of round 5 (i.e. Sport and Avant Garde product) which shows that after launching the product 1 and 2 together in both the markets, the sales as well as profit margins has gone up and this is due to bulk production. The company is able to wave of a lot of fixed cost liability because the channel is same for both the products. In round 7, the company has gone with both the products with added features which have increased the price of product 1 whereas the price of product 2 is still constant. Same scenario continued on adding more features to product 1 and increasing the selling price till round 9 which has increased handsome amount of the sales as well as profit of margins. In round 10 we had reduced the prices of product 1 and increased the prices of product 2 which has shown that the sales as well as profit of margin has fallen by approx. 100 million Euros. The final market share and the channel distributions of the company as on last round are as figured below: The channel investments are noted to be null as the market appeared to have reached saturation stage and the focus of generating profit margin is through advertising and active marketing strategies. The market size of each of the four segments considered as mentioned above during the last round are as below: The sales resulting from the households and or the minor end customer subdivision accounts for the uppermost composition followed by the lower end companies. The higher end consumers and companies are followed rest with the share observed to be less than 50% of the entire share occupied by the lesser end segment sales. Thus, the latter is performing well and much better than the higher end section in Europe. A similar situation is as well observed in Asia is as indicated below: Therefore, the decisions that are arrived at during the rounds have been effective to maximum extent save for a smaller phase between round 4 and 6. Decision Rationale The pattern of the graph conveys the verdict that had been made in each round that had been taken to generate higher revenue and sales in order to ensure that the brand image of the company becomes more outstanding in both markets. The growth and the cost of production is the main demand that we have to disregard in a market that has undergone considerable evaluation and in which a lot of care has been taken regarding the whole process of decision-making. The decisions conform to the variation in government policies, bank conventions and other industrially oriented alterations made in the respective markets of Europe and Asia. The market is as well influenced, if any changes are made regarding fuel fees that result in cost of transportation from one region to the other. The market is so unpredictable and so competitive in which case; the company has to face a price conflict with the competitors as well as the initial innovative characteristics, which are being initiated into the markets at a very swift tempo. Thus, in most cases, we focus on the product that yields value for money, which constitutes all the latest and the required characteristics at a reasonable and competitive valuation that is served to the bulk of the population. In other words, we are focusing more on turnover merchandise. So after putting all the points of tactical marketing in realistic consideration, while making all the decisions concerning sales, advertisement, cost of production, marketing operations including production mechanisms, considerable amount of growth that adds value to the company is vividly witnessed. Final Results Evaluate the Performance The aforementioned strategies have resulted to an efficient and effective way of carrying out operations of the company as can be seen via their operational and monetary results. The sales of the company have so far witnessed an increase in production, which can be approximated to augment by more than 50%, even in the last round where the market is observed to be flooded and advanced. Thus the net income and the costs of the company, have as well transformed as per the mechanisms adopted on the final year of operation, which is indicated below. The income is observed to be received from the sale of the products and repairs from both European and the Asian markets. Therefore, costs of production are separate for both the regions, although service delivery activities and the attached costs are universal for both locations; thus, the income statement of the company as on round 10 is as shown below: Thus, the net earnings are approximated to be 277 million Euros subsequent to the final round 10. Evalute the Final results Additionally the gross revenue is here marked to be at an approximate proportion of about 66.6% indicating a reduction of the cost of sales, and thus, resulting to an affirmative improvement of the gross income from 59.9% to 66.6%. Therefore, this is an implication of the company’s efficiency in terms of production. The operating profit has been levelled at 60.1% an increase from 46.8%. This implies that the company’s way of operating has undergone massive transformation to be more proficient resulting in advanced returns at optimal upholding and costs of production thereof. Generally, the returns on sales are noted to be at 46.8%, which translates to an increase from the initial 40.4, which indicates an appealing performance of the company. Therefore, the resultant picturesque is the ability of the company to generate 46.8% of returns based on the total sales made by the company. Thus, the tactical procedures of the company are considered to have a valuable and efficient impact within the company’s premises. This is further attributed to the realization of higher returns in comparison to the previous rounds and in the general company platform. The strategic resolutions of the entire rounds taken up to round 10, as discussed above, represents a scenario in which, by round 10, the market has reached its maturity and wholesome saturation. Consequently, the price seems to be stable for the universal set of featured products. Thus, to capture the market at its flooded point, it is necessary to initiate fresh products in the market to keep the traction in the market. As a result, the company has to revolutionize with the changing scenario of the market, in which case, the company also has to take care of fresh strategic planning with new market viewpoint with optimised products. Applying these projected strategic plans, the increase in sales can be sustained and higher revenues can be registered. Conclusion In the aforementioned discussion coupled with the results observed, it is evident that the strategic decisions made during the entire rounds played on CESIM on SIM Brand are effective. Additionally, the simulation episodes have helped us to comprehend the operations dealing with production and implications of marketing operations, which refers to optimization of the costs of production and effective ways to manage operations through strategic marketing torealize higher returns. We need to focus every year on the decisions/round that would be made so as to capture the market as much as possible and it should go hand in hand with our forecast to match up the expectations of our company SIM Brand. The results and the assessment of each of those decisions are discussed in detail above. Overall, the strategies and decisions adopted by the company have been found to be satisfactory and stable, generating 50% as return on sales and 277 million Euros as the net turnover with an overall amplification in sales maintained. Read More