Symex Holding Ltd - Mission, Situation Analysis, Markets, SWOT analysis, Marketing Objectives, and Strategies - Case Study Example

Symex Holding Ltd Marketing Plan Executive Summary A marketing plan is an instrument that is used by a company to ensure that its operations are successful. Thus, this paper utilises Symex Holdings Ltd as a case study and forms the foundation of marketing the new product: AntibacSoap. Symex started in 1856 and currently has 122 employees. The company produces chemicals and consumer products under the name Oleo products. The mission statement of the company encourages satisfaction of the consumer requirements. Situational analysis shows that the company has enough finances that can ensure that the marketing plan are successful implemented. Moreover, situational analysis indicates that there is stiff competition, stable economy and appropriate economic policies, most of the consumers appreciate hygiene and move in small languages, the age group is 15 to 30 years. Australia and especially in Victoria the crime rate is low, there are appropriate laws and regulations, and the infrastructure is suitable to ensure that the organisation achieves its goals. Some internal capabilities of the organisation are certified system certification, integrated technology; however, the weaknesses are lack of regional offices and decrease in sales margin. The opportunities are the strategic acquisitions and growing consumer markets but the threats are demand for bio-diesel and intensive competition. The objectives of the marketing plan are to increase sales margins by 50%, market share by 20% and the revenue by 15%. In addition, the strategies are improvement of PR, increase number of outlets; expand the distribution channel and improvement of promotion strategies. The production strategy that will be used is continuously, penetration strategy will be used to determine the price of the soap, push and pull strategy will be used for promotional means while channel structure strategy will be used for defining distribution strategy. Nevertheless, some recommendations are to ensure those regional outlets (offices) are increased, improve on operation strategies, diversification to bio-diesel industry and consolidation of marketing process. Table of Contents 1. Introduction………………………………………………..…………4 2. Mission Statement…………………….…………………..………….4 3. Situation Analysis………………………………………..…………..4 a. Internal environment…………………………….……………5 i. Products………………………………………………..5 ii. Financial and non-financial situation……….…………5 iii. Channels…………………………....…………………6 b. External environment……………………….………………...6 i. Markets…………………………….………….………..6 ii. Competitive environment………….……….………….6 iii. Economic environment……………………..………...7 iv. Demographic environment…………………...……….7 v. Social and cultural environment……………….………7 vi. Political and legal environment……………………….7 vii. Technological environment…………………………..8 c. SWOT analysis………………………………………………..8 d. Critical issues………………………………………………...10 4. Marketing Objectives………………………………………………..10 5. Marketing Strategies………………………………………………...10 a. Target markets……………………………………………….11 b. Product strategies……………………………………………11 c. Pricing strategies……………………………………………..11 d. Promotion strategies…………………………………………12 e. Distribution strategies……………………………………….12 6. Recommendations for Change……………………………………...12 7. Implementation plan………………………………………………..13 8. References…………………………………………………………..15 1. Introduction John Kitchen established Symex Holdings (initially as John Kitchen and Sons) in 1856 as a small business; it dealt with candle making business. The company is located in Port Melbourne, Victoria. From 1859 to 1992, the company continued to manufacture candles. The company enjoyed a spree of success until 2000 when the name was changed to Symex Holdings Limited. Currently, Symex produces a range of Oleo products, which are mostly plastics, personal care and toiletries. Other major industries are mining, pulp and paper, food, rubber, lubricant and surface coating. Thus, the aim of this paper is to develop a marketing plan for a new product “AntibacSoap” that the company has begun producing. 2. Mission Statement Mission statement can generally be termed as the reason why an organisation exists. Talbot (2003) defines a mission statement as “an explicit statement of the values of an organisation” (p. 9). Hence, a mission statement generates principles of the organisation and standards that the organisation will be judged with. Therefore, Symex Holdings Ltd mission statement states, “Consistent High Quality: Meeting customers’ most stringent requirements” (Symex Holdings Ltd Website, 2009) 3. Situation Analysis Situation analysis is systematic collection and evaluation of accomplishments of the company and future expectations of the company within the confines of a given period. a. Internal environment These are the elements that are within an organisation, which include corporate culture, management and employees. Nevertheless, other features include the capability of the organisation to produce and accomplish tasks within their vision and mission statements. i. Products Some of the products that are produced by Symex Holdings Ltd are Oleine, Stearine, Glycerine, distilled fatty acid. Thus, the aim of this paper is to market a product that is called Antibacterial Portable Hand Soap “AntibacSoap”. The features of the packaging include a re-sealable case, which is also waterproof. The AntibacSoap contains an effective fast acting antibacterial – chlorine, which is capable of eliminating harmful bacteria that can be found on the body, hand or face. This means that the soap can be used in most parts of body in an effective way since there is no residue that is left; keep the skin clear, less prone to spots and clean. Moreover, the AntibacSoap comes in two varieties: perfumed and non-perfumed. ii. Financial and non-financial situation The financial position of the company can be argued as stable because of profits and sale revenues. For example, in 2007 sales amounted to $144,528,000 while in 2008 it was $174,890,000 illustrating that the company increases in terms of sales. Moreover, the asset base of the company is $142,682,000. However, the sales margin is continuing to decrease an area that the company management should address. It is assumed that the introduction of the new product can improve the percentage of sales margin (Symex Holdings Ltd, 2008, Financial Report). iii. Channels Symex exports most of its products (75%) to over 35 countries that includes North America, Asian-Pacific region and Europe. The company is located in Port Melbourne where it can utilise different means of ensuring that the products are transferred to consumers/ customers. Moreover, the company has a number of acquisitions that can help in marketing and transportation of the products (Symex Holdings Ltd, 2009). b. External environment i. Markets Since the activities of Symex are grouped into two - Consumer Products and Specialty Chemicals, the major markets are the business, individual consumers and industrial establishments (Ibis world, 2009). Moreover, these markets require specific products that can be supplied by Symex Holdings. ii. Competitive environment In any establishment, competition is inherent and any organisation within that market environment should devise ways and strategies that will ensure that it floats within the turbulent environment (Wedel & Kamakura, 1999). Thus, the major competitors are the Colgate-Palmolive Pty Ltd, Huntsman Corporation Australia Pty Limited, Unilever Australia (Holdings) Proprietary Ltd and PZ Cussons (Holding) Pty Ltd (Ibis World, 2009). iii. Economic environment Economically, Australia and especially Victoria is located in a region of vast resources including riches and revenues bringing into consideration being a commercial hub compounded with flexible operation policies (Weinstein, 2004). Additionally, economic policies that the government (Victoria and Australia) as sanctioned ensures that business can operate with minimal taxation, duty and foreign exchange controls. iv. Demographic environment The demographic forces include the age group of between 15 and 30, while the income level should lie between the upper and middle classes. However, the marketing plan is based on the research that was carried out in Australia alone and thus the company will try to extrapolate this data into other regions. v. Social and cultural environment Socially, the traditions and culture of people within Victoria embrace idea of hygienic environment and small amounts of luggage that incorporates most basic needs. Moreover, the economy of Australia has a cosmopolitan lifestyle and multinational workforce that improves the position in which the products can be sold. This means that the diverse requirements of the workforce can easily embrace the new antibacterial soap. vi. Political and legal environment The political and legal environment within Victoria and entire Australia is both low in crime and the economy is stable, and thus more foreign investors are attracted to Victoria bringing forth diversification strategies. Moreover, the government of Australia and Victoria is frequently updating policies and regulations to ensure that all business can operate in an even environment. vii. Technological environment Technology is a major factor that ensures that businesses can operate smoothly. Hence, Australia and Victoria governments have invested a lot in infrastructure, internet facilities and telecommunication system, etc., and has ensured that businesses can be operated easily and efficiently. The banking system compounded by new technologies has ensured that business can be operated flexibly reaping most benefits from the diversified means of completing transactions e.g. online purchases. Moreover, the company itself has invested in technological capabilities and requirements of the Oleo type of products and relevant industries. c. SWOT analysis According to Baker (2003), SWOT analysis is a tool that is used to audit an organisation and its environmental factors to determine the position of the organisation relative to policies in place and competitors. Thus, it involves specifying the aims of the organisation venture and identifying the environmental factors that are favourable and unfavourable in achieving these aims. Strengths Are the attributes that helps the company to achieve the aims and in the case of Symex Holdings Ltd, the strengths are (Symex Holdings Ltd, 2009): Achieved consistent high quality by achieving numerous certified system certification, which includes Quality ISO 9001 and Food Safety CODEX HACCP They have integrated advanced technology and production in that there is continuous, uninterrupted product. The raw materials and the entire process of production is environmental friendly Consumers continue appreciating the products because there is an increase in sales revenues Globalisation has increased easiness in completing businesses and availability of numerous means in which consumers can complete payments and purchases. Weakness Are the attributes or factors that are harmful to an organisation and may prevent the organisation from achieving its goals Drastic decrease of sales margins Lack of regional offices Opportunities Are the external factors that help an organisation to achieve its objectives (Davids and Newcomb, 2006) The is a growing market that is involved in consumer goods markets e.g. toiletries Strategic acquisition e.g. Pental Threats Are the external factors that can do damage to the organisation and they include There is a decrease in the selling margins in the Oleo-chemical Business Consumer shift to demand of bio-diesel Intensive competition d. Critical issues The most critical issues are the shift of consumers to demand for bio-diesel products and the intensive competition. This means that consumers demand in oleo-chemical products will decrease resulting in further decrease of sales margin. Moreover, competition is increasing in terms of companies entering the chemical industries and diverse products that these companies offer below the competitive prices. 4. Marketing Objectives The objectives of the marketing plan are: At the end of the marketing period, the amount of sales should be 50% Market share to increase by 20% Revenue collected to increase by 15% 5. Marketing Strategies Some of the strategies that will be used to ensure that consumers embrace the product include: Expand distribution including investing in overseas markets Increase investments on advertising (promotion) Put in place a public relations programme (PR) Increase the number of outlets a. Target markets The target group is women who are aged between 15 and 30. The women should be middle earners or the parents of the younger girls should be middle earners. Moreover, these women should constantly travel especially to work or across states and may be spending sometime at those places b. Product strategies Product is the heart of many organisations especially the industrial ones (English, 2006). Since Symex has many customers, the strategy that will be used for production is continuous or flow production. This is production of the soap through repetitive process ensuring that the quality of the detergent is maintained e.g. use of workers or robots repeating a specific task. Therefore, the use of flow production will improve on efficiencies, which will translate into low cost of production, and thus more profits and revenues. c. Pricing strategies Price is the only component within the 4Ps that brings revenue (McDonald, 1992). The company is in an environment that there is great competition but the product produced is of high quality. Thus, the company will use penetration strategy to achieve its goals. The strategy ensures that the product is set artificially low so that the company and product can gain market share. Then, after the market share is gained, the price of the product will be reset (increased). d. Promotion strategies The promotional strategies that will be used by the company are ‘push’ and ‘pull’ (Ruskin-Brown, 2000). Push strategy is employed when the company utilises trade promotion and sales force to create consumer demand for the product (Steuernagel, 1998). This means that the producer promotes the product through the supply chain/ ladder e.g. promotes the product to wholesalers, and then the wholesalers promote it to retailers and so forth. On the other hand, pull strategy is utilising consumer promotion and advertising resulting in consumers demanding for the product. Thus, if the consumer likes the product, the consumers will ask the product up the supply chain e.g. consumers asks the retailers and then the retailers asks the wholesalers and so forth. e. Distribution strategies Distribution strategies may be described as the channels that are available for the company to transfer the goods to consumers. Thus, the distribution strategy that will be used is channel structure strategy (Ruskin-Brown, 2000). Channel structure strategy defines the number of intermediaries that will be employed in ensuring that the products reach the customers. Symex Holdings Ltd is an international company in that it can sell its products to more than 35 countries. Thus, the company will utilise existing intermediaries in ensuring that the products are within the reach of the customers. 6. Recommendations for Change Understanding situation position of a company will benefit the company through utilising this information in ensuring that the company increases the customer base and market share. AntibacSoap is a new product into a market that is concentrated with different consumer products. Hence, some of the recommendations that the company should embrace are: They should ensure that they have region offices or agents within the 35 countries Diversify their operations into bio-diesel products since consumers are becoming aware of environmental concerns Analyse their operation strategies to improve on the sales margins Consolidate the marketing process 7. Implementation plan For the company to achieve the goals within the marketing plan, the formulation and implementation of strategies should follow specific organisational requirements (Allred et al, 2007). Thus, implementation plan should factor into consideration information that had/ has been researched and focus on the objective of the marketing plan to guarantee its success. Hence, the implementation plan should put into consideration task, people and time scale that the process should be completed. Generally, an implementation plan should pass through three phases, which are organisational preparedness, pilot test and launching phase. Hence, the following table illustrates how the plan will be implemented. Task Description Person Responsible Completion Date a) Departmental Directors will meet to promote the marketing plan and determine the implications of the initial trial in terms of budget P.L 1/15 b) A meeting with the consulting team determining timescale for trial aspect and specifics K.M 1/15 c) The consultants and different people within the company representing other departments defines the profile of project implementation K.K, L.Z 1/22 d) A meeting is scheduled bringing together all the members within the marketing process in promoting the trial: this the time that the market concept is sold to other organisational members requesting for a two week trial period M.R 1/30 e) Launching of the trial marketing plan All 2/1 f) Meeting is held at the middle period of the trial to obtain information or feedbacks concerning the marketing implementation and appropriate refinements are made B.A 2/15 g) The results obtained from the trials are analysed and assessed B.A/ All 2/15 h) The marketing program is launched to the specific targeted audiences as specified by the marketing plan strategies B.A 2/18 i) Review is then undertaken on a quarterly interval basis B.A 4/1, 7/1, 10/1 8. References Allred, A., Addams, H.L., and Chakraborty, G., 2007. ‘Is informal planning the key to success of the inc. 500?’ Journal of Small Business Strategy, 18(1): 95-104. Baker, M., 2003. The Marketing Book, 5th Ed. London: Butterworth-Heinemann Publishers. Davids, M., and Newcomb, K., 2006. ‘Planning for marketing success: Turning the “Wheel,” Debt 3, 21(4): 22-25. English, J., 2006. How to Organise & Operate a Small Business in Australia: How to Turn Ideas Into Success, 10th Ed. Sydney: Allen & Unwin Publishers. McDonald, M.H.B., 1992. ‘Ten barriers to marketing planning,’ The journal of Business and Industrial Marketing, 7(1): 5-18. Ruskin-Brown, I. & Clarke, G., 2000. Marketing a Service for profit: A Practical Guide to Key Service Marketing Concepts. London: Kogan Page Publishers. Symex Holdings Ltd. 2008. Financial Report. http://www.symex.com.au/ Symex Holdings Ltd Website, 2009. Home. Retrieved July, 31, 2009, from http://www.symex.com.au/ Steuernagel, R., 1998. Cellular Marketing, New York: John Wiley and Sons Publishers. Wedel, M. & Kamakura, W., 1999. Market Segmentation: Conceptual and Methodological Foundation, 2nd Ed. New York: Springer Publishers. Weinstein, A., 2004. Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, 3rd Ed. London: Haworth Publishers. Read More