Enzymes LTD UK Planning Guide - Case Study Example

The paper “Enzymes LTD UK Planning Guide - External and Internal Analysis, Porter’s Five Forces, 5Cs, 7s, Website Resources, Value Chain Analysis" is a good example of a case study on marketing. At the very beginning, the paper focuses on the situation analysis of the Macro-environment (PEST).

Political:
-Islam laws that state that alcohol should not be present in food
-World council for sustainable development
-Environmental management frequent complaints resulting in fines and penalties
-Plant and animal enzyme supply depend on agricultural policies
- The enzyme must be approved by food agencies

Economical:
-The world market is expected to have a 9% growth per year
-Sales expected to increase by 70% in 2005
-Bulk production has reduced prices by half over the last ten years.

Social:
-In the US approximately 26% oppose biotechnology in agriculture and 10% oppose biotechnology in medical practices
-Enzymes are cheaper and at the same time environmentally friendly
-Enzyme ltd scientist consults with scientist employed by customers

Technological:
-Enzymes more efficient in the use of raw materials than other chemical products used
-New products in diagnosing phenylalanine in the blood that only takes a few minutes Leather curing.
-Alliance with leading UK universities to develop new products

Porter’s five force:
The threat of new entrants
There are many companies in the industry and there are no barriers to entry and therefore companies are free to enter or exit industry.

The threat of substitutes:
There exist chemicals that can substitute enzymes, an example in the leather industry sulfates can be used and in the paper industry chlorine can be used.

 Competitive threat rivalry
-The emergence of small-medium size companies
- Stiff competition, enzyme ltd discontinued operation of textile enzymes
-Mergers and acquisition.

Bargaining power of customers
-Customers willing to purchase goods that meet needs and required quality
-Enzyme add up to a small portion of consumer production cost and therefore the price is not important, quality is important

5Cs
Customers
Customers all over the world with a majority of over 60% in North America and Europe
Customers satisfied with products
Customers are interested in quality

Costs:
Process costing is applied due to the different needs of the customers

Competitors:
There are over 472 companieHigh competition in textile enzyme

Channels:
Online order forms filling

Communication:
Establishment of customer contacts through the developed website

Internal analysis:

7s
Strategy
-Specializing in only a few products.
-Developing new products identified by customers

 System:
The technological advancement that enables the production of new products that reduce production costs

Staff:
The company employs qualified staff employed in the various departments of the company. 

Skills:
Highly skilled employees in the divisions, enhancing specialization and improved skills

Style:
High-quality products produced according to consumer specifications

Structure
Hierarchical structure and division based on functions

Shared purpose
Production of high-quality products and the achievement of consumer satisfaction in the various processes including order processing, product, and ease of contact

5MsMarketing:
Website resources
Newsletter
2.5% of sales turnover for marketing
Exhibitions
Management
Application trials for new products

Machinery
The plant takes over 8000 square feet and only produces those products that have higher returns, example the company discontinued production of the textile enzyme due to low returns High competition in the textile enzyme and had to discontinue production

Money
Return on investment is relatively high than the industry level

Time
Annual satisfaction surveys are undertaken; surveys show satisfaction with reference to order processing, ease of contact, product quality and delivery

Value Chain Analysis:
Employee and purchases - 27%
Research and development - 27%
Promotion - 8%
Marketing - 31%
Commission - 6%

SWOT Analysis:

Strength
S1 Specialise on a few products
S2 Sale of products all over the world, 70% of products exported
S3 Reinvesting profits
S4 Quality products
S5 customer satisfaction
S6 fermentation contracted out
S7 successfully obtaining developmental cost from the government
S8 customers identify new products

Weaknesses:
W1 failure to expand to other countries
W2 Prices have remained relatively constant over the years
W3. EU regulations
W4. Lack of diversity
W5 Factory not fully utilized
W6 Lack of professional marketing

Opportunity
O1 Substituting chemicals in textile and fruit processing
O2 Expanding in other countries
O3 differentiation of products
O4 standardization of products that can be sold all over the world (Islam code)
O5 expansion of market size through professional marketing

Threat:
T1 Competition with over 472 companies
T2 Companies polarising to form larger companies through acquisition or mergers
T3 Substitutes

MARKET SEGMENT:

Segmentation

Enzyme ltd

1. Demographic of

all companies

2. Geographic area

The UK,  Japan, S. America, Far East, USA, and Europe

3. Loyalty status

moderately loyal

4. Purchase occasion

baking, diagnosis, and food enzymes

5. Sought benefits

price and quality

6. Social Status

high and medium

Segment attractiveness:

Strategy analysis -space analysis
Enzyme ltd is defensive and this is evident from the discontinuation of textile enzyme production due to high competition and specializing by producing only a number of enzymes compared to other large companies that produce over 500 enzymes.

Tactical analysis

4P"s
BCG’S growth-share matrix:
Enzyme sales growth forecast is relatively low and it is also expected that the market share of enzyme limited to remain relatively low.
Competitive marketing strategies: (Michael Porter, 1998)

Perceptual map: Enzymes LTD UK

1. Five-year strategic marketing plan:
A marketing plan is important in that it helps establish objectives, actions that need to be undertaken to achieve these objectives and the time required to achieve these objectives. Enzyme ltd UK in the past has lacked professional marketing and depends on a few marketing strategies to achieve growth example internet marketing and exhibition.

Objectives:
To increase market share
Increase in profit margin
Informing the consumers about products and the quality of products

Target segment:
The company’s industrial capacity is not fully utilized and therefore economies of scale are not realized, the company also wishes to increase its market share and increase profit and this can be realized by increased production. High profits can also be realized by providing differentiated products that are of high quality to increase profit margin. The proportion of production cost incurred by consumers on enzymes is relatively small and therefore there is an opportunity to increase prices on value-added products.

Segments:

1. Food enzymes
Low-profit margin

2. Diagnostic enzymes
High-profit margin, this is others category and sales expected to grow at a higher rate

The targeted market: The company should target diagnostic enzyme customers, this segment has experienced rapid growth and therefore expected growth is high and that profit margin is high

Targeting: Concentrated targeting

Positioning:
Customers value Enzyme ltd products
Customers are interested in quality and not on prices
Agents and distributors in over 35 countries
Increased brand awareness on the targeted market segment
Marketing strategy:

1. Product:
Develop new products
Improve product quality
Brand names that enhance product image

2. Pricing:
Pricing on the basis of quality and efficiency of the product

3. Place:
Agents, Distributors, Customer contact, Internet, Exhibitions, Publications.

4. Promotions:
Internet promotion, Advertising,
Exhibitions Gantt chart

year

1

2

3

4

5

Internet

Distributors and agents

customer contact

Exhibitions

Publications

Internet marketing should be undertaken for the five years, distribution and agent marketing for the first and second year, customer Contact for year 2 and 3, exhibitions for year 3 and 4 and publications for year 4 and 5 when a customer base has been established and these publications can be distributed to consumers.

2. Marketing communication plan to support key brand values: (Henry, 2008)

3. International marketing strategy:
Internet: The website is important in providing information to a wide range of customers all over the world.

Exhibitions: Exhibitions all over the world will inform consumers regarding existing products and the quality of products

Publications: Publications emailed or sent to consumers whose contacts have been established, publications should also be sent to potential consumers