Developing Marketing Strategy for New Product Line - Report Example

Name: Instructor’s Name: Course: Date: Developing Marketing Strategy for New Product Line Conclusion Developing of marketing skills and that too for a new product line requires a good deal of involvement in strategizing it. It is a part of the business (1) and is very essential to develop a good marketing strategy. The fact is that the marketing of the product can be said to of more importance than the product itself. Even a very inferior quality of product can become a great success sometimes. The new product which is devised by Alstom and which is known by the name of Amodis, operates as autonomous system, monitoring sensors, activating alarms and logging information to facilitate and optimize the power plant processes and on going operations. . The system is capable of polling, transmitting and receiving data, both analog and digital, at high rate of speed, using secure digitizing protocols and error avoidance methods. The system is also capable of remote interrogation and re-configuration, while providing access for remote viewing and control of screens, logs and files via communication lines, Internet, LAN network. Thus the product cannot be said to be an inferior product and thus its marketing is very much essential to be strategized and done in a good manner. The managing and marketing of the product requires more skill and creativity than any other work related to the product. It is the basic need of the company to see that, the end product of any activity consisting of the accumulation of raw material and production etc, which is the accomplishing of the exchange transactions namely sales, do well. The smarter the entrepreneur, the prominent is the marketing criteria of his firm’s organizational structure. As has already been pointed out that the organization has no clear strategic relevance or global structure due to the fragmented past set-up, there has been reorganization of the organizational structure and even a new product manager has also been appointed. This has resulted from the sullied research done on the market for the product. The organization had missed on the very significant information on the market trends and the competitors. Therefore it is necessary that the organization should consider the market trends and the customers’ behavior. It is great relevance to analyze the global trends and demands and also to analyze the main competitors and their capabilities. The research in this case was conducted in order to study the global market by analyzing the current market situation, the requirements of the local customers, local competition and opportunities. The main purpose of the study was to analyze the market opportunities for the new product line, by analyzing market situation, competition and behaviors of the customers. Strategies of marketing in the global market were also developed by this thesis which consist of Positioning and differentiating the market offering. Designing global market offering. Developing action programs. Thus the main object or the scope of the study was to analyze market opportunities and developing market strategies of the product and also shaping the market offering. There are certain rules which have been found to be useful to increase the strategies of marketing. These may be described as A thumb rule which can be applied to any marketing planning is the eighty-twenty rule. Choose from the list of customers those clients who are able to pay in order to meet or bringing about solutions for their problems. There should be a shift made to clients who are more productive and less time-consuming. In today’s market, one of the strategies or rules is that the customers should be treated as clients and as if they are actual partners and showing that you care for them. It is great importance to satisfy the customers by showing them the best products and services and also at the right location. The customers are very sensitive about the indifference and insincerity which they can easily detect. It is a general rule that one should earn long term clients and loyalty of the customers to compete in the global market. Many a time it has been taken for granted that the most effective strategy of marketing is the most complex one and is also very expensive. This is totally wrong. The method of simplification can be achieved by reducing the unwanted service lines and products, the various outsourcing after sale programs, cutting the costs on the promotion of the trade, shortening new product launches, taking off the marginal brands, and most important is to arrange for the traditional method of the client-customer meetings, face to face in order to maintain good relationship. There is a growth now of the use of the internet as a means of marketing use for which more and more firms are developing their websites. Even the smallest entrepreneur today can reach the much wider market with the help of the internet, providing the company’s information and giving customers’ a 24 hour service everyday. It has been seen that some business even start on the internet directly. Every e-commerce website is made available globally through the World Wide Web. It is therefore necessary to expand the sales and marketing efforts of the small businesses out of the local market. There are various small companies which that have taken the business enterprise to the foreign countries so as to start their business in the global market. Thus it is very necessary for a business to reach the global market and conduct the business through the internet. It is deemed an important rule for a growing business which is small in nature to have its eyes and ears open so that it can study the various changing conditions of the market, know about the developments in the technological aspects and to study the steps that the competitors take. For this the attitude of the employees should be studied and the opinions and suggestions of the customers, vendors, landlords, staff and stockholders shou8ld be taken onto consideration. It is also an important rule that the entrepreneurs should be targeted to make new friends but at the same time it is of necessity that the existing customers should not be left behind in the process of making the new customers. The company which can not take care of its customer base is always a failure. If there is no scope for entertaining the existing customers in a proper way, then it has been seen that new customers for such companies are not created. Moreover, it takes double the effort and money to have new customers than taking care of the existing customers and clients. To know the origin of the customers and clients is very essential for the growth of the company. One should not forget from where the customers are coming to the company. This is more particularly applicable to the internet where to maintain, build and enhance the relationships of the customers with the company. The general rule of marketing is that the solutions to problems through the traditional methods give rise to traditional results. In order to go through a rapid change in the means of solutions to problems, it is essential to break through the old traditional pattern. This may include fighting with the competitors, approaching the market and promoting the products with fresh approaches and ideas. Thus one should be ready to think outside the traditional ways of marketing and take up new methods. It has been a trend for the successful customers to remain focused on the very particular product or the service that they have been providing since the very beginning. They might have faced the loss of various customers and might have sacrificed certain subsidiary sale of products. It means that though there an be started some other side business by a company but the aim should always be to make the actual and first product their priority and thus think about its marketing more than that of the ancillary products. The research conducted in this study had certain questionnaires which can be analyzed in a simple manner. The graphical presentations can be discussed so that the discussions make it very clear as to deal with product Amodis in a better way. This study would then prove very helpful for the company to market it in the global market. The analysis can be done in the following manner. As for the questionnaire, the first question that was asked to the participant countries was about the main requirements in their market. The result of the study shows that most of the countries had agreed with the fact that reliability is the main factor that is required in their markets and this view was supported by 14 countries out of the 17 participant countries. The others’ view is divided between the factors like availability, efficiency, environmental compliance, maintenance cost, risk mitigation and other specifications. The second question as to the various customers’ drivers to purchase the monitoring system was answered almost unanimously by 16 countries that they need monitoring systems to predict the equipment failure and reduce the unplanned maintenance. The other countries supported the other factors like optimizing plant performance, improving equipment and component capability, integrated planning and scheduling of outages etc. thus the majority of the participant countries wanted to install the monitoring systems in order to know about the equipment failures at the proper time and thus reduce costs of the unwanted maintenance that it had to do. The next question was regarding the choice of the power plant systems that the customers wanted their monitoring systems to address to. This question had the highest response of 29 points in the study conducted as it was thought that the most needful power plant system of the monitoring system was the generator. Next in the line of necessity was gas turbine, then there was the steam turbine and the various other power plants like boiler, environmental, BoP, steam plant and others. Then the customers were asked about the main applications of the monitoring systems in the market. The choices given to them to choose from were plant assessment management, continuous online monitoring system, offline monitoring system and about any other possibility to be specified. 13 of the countries voted for the continuous online monitoring system as the main application of the monitoring systems in the market, 3 of the countries choose plant assessment management and 5 choose the offline monitoring system as the basic application of the monitoring systems in the market. Then the participants were asked as to the main purchasing criteria of the monitoring systems. The answer to this came as 16 countries voted for price, 14 for product functionality, 7 for services offered and none had voted for relationship. The next question that they were asked was how was the monitoring system purchased. 10 of the countries argued about the individual monitoring system purchase without services, 7 each for part of O&M contract and individual monitoring system purchase with services, and 3 for part of service package. Further the participant countries were asked as to what the current customer is spending on monitoring systems. There has been a very low response given to this question and the highest of 5 countries have voted for monitoring equipment factor, 1 for services based on monitoring. The next question of how is the monitoring systems developing was also sparsely answered by the participants. 6 of the countries pointed out at less than 5%growth per annum, 5 countries pointed out at 5-10% of growth per annum, 3 of the countries pointed out at more than 10%growth per annum and there was 1 country who had shown decreasing growth. The question for the name of the competitors of monitoring systems has been answered very well by all the countries. China has prominently supported EPRI and TPRI in almost all the spheres and also Siemens in the various other spheres. Many other countries have not taken the pain to answer the question. Then the participants have been asked whether the competitors have better products or not, the participant countries replied to the question in the following manner. 6 of the countries voted for equal products, 4 for better products and 3 for worse products. The participants were also asked about the comparison of the services. 6 voted for equal services, 4 for better services and 5 for worse services. The participant countries were also asked as to which capabilities that the competitors have are better than Alstom. This was specified for the main competitors. 11 of the countries voted for the price that the competitors have against that of Alstom. 5 countries voted for services, 3 each for hardware, software and others, and two for delivery time. The next question to the participants was asked about the strategies that the competitors implement against Alstom. Most of the answers came for the factor less expensive strategies with the support of 9 countries, then 4 for other strategies and 3 each for better customer relationship, better products and better services. The next question put forth to the customers is as to what specific requirements customers have on the monitoring systems. 14 countries voted for the fact that the monitoring systems want to integrate the monitoring into the DCS. 12 felt that it must fit into the existing IT landscape. 8 for security and confidentiality of data collected, 6 voted for the link back to technical experts for support, 4 for the want to send data to the own monitoring product and one for other requirements. The participants were further asked whether Amodis would meet the customer requirements, to which they answered as 5 countries for 50%, 3 each for 75 and less than 25% and 2 for 100%. The study then required the answer to the question as to how satisfied are existing customers with the products and services provided by Alstom. 10 of the countries have ranked it as good, 3 as poor, 2 as very good and 1 country as very poor. Further the question asked is that why did not the customers purchase monitoring systems from Alstom. 14 of the respondents have said that it is very expensive, 4 as product capabilities are not understood, 5 as other specifications, 2 as insufficient services backing the equipment, 1 as did not meet specifications and none have gone for the reason that it was a bad experience. Then there comes the question as to what are the reasons for Alstom being chosen for giving orders for the monitoring systems. For this 4 respondents have credited it for the exclusive relationship, 4 for other reasons, 2 for service capabilities and 1 each for capabilities of the product and services offered with the equipment. None have given the credit of the orders to good price. The respondents have been questioned about their knowledge about Alstom’s monitoring system capabilities and services. 8 persons said that they were aware of Amodis capabilities but struggle to bundle it with services.5 of them supported the system and service capabilities relating to monitoring. 3 of the respondents said that they did not know exactly as to what Amodis does or offers. And 1 respondent was not at all aware of Amodis. The next question asked in the questionnaire was is Amodis known to the local customers and the answer to it is that 8 respondents say that it is known only to some of the local customers, 5 for yes and 4 for no to the question. Again the respondejnts have been asked as to what is Alstom’s position in the market for monitoring system and services, to which the reply was 8 countries for 2-5, 7 for less than 5 and 2 for 1-2. The respondents have been asked whether Alstom needs to increase its capability and the answers are yes by 7 countries, 2 each for some and I don’t know and 3 for no. The respondents have been asked as to what are the main hurdles for them to offer services based on monitoring. 7 countries say that the customers are not yet interested in such services, 6 have pointed out to coordination effort when working with different Alstom units, 5 pointed to understanding Amodis functionality, 4 to own technical capabilities and 7 others to the other factors. There has been another question that is how the respondents judge Alstom’s current capabilities in providing monitoring systems and services. To this 7 each of the countries has pointed out to the good and medium categories and 2 for the poor category. None have pointed to the very good category. The next question asked was about the weaknesses of Alstom. This was answered as Amodis is too expensive by 12 countries, something about the business set up by 7 countries, functionality of Amodis not meeting the market requirements by 4 countries and other specifications by 2 countries. The respondents were then asked about the strengths of Amodis. 9 each of the countries pointed out to the technical expertise to provide services and to the local capabilities, 7 to the broad modular Amodis portfolio and 1 to other specifications. The last question that was asked to the respondents was about the sales volume that they were then doing with Amodis in their country or on their fleet. To this there was very less response with 4 countries specifying for Amodis modules and 1 for the related services. Thus the study makes it very clear that it is a mixed opinion about the product Amodis of Alstom. Some of the countries are in favor of it while there are very few countries which do not like the product. These countries have given negative opinion in various areas of the questionnaire. So the product Alstom can be marketed by correcting the things that have been negatively suggested. But it is very obvious that the initial phase (2) in the line of marketing is rather more diverted towards sales than marketing. With the given international focus of the firm in risk minimizing and the lack of knowledge of the local market, it will very obvious that the distributor will opt for the easier path of selling off his new products to the existing customer base. At first it is difficult to adapt to the local markets as the lower sales levels are not supportive of the costs for the development of a local offer. It has been a trend of the experienced companies to look for closer control over the strategies of marketing while it enters into the market rather than giving away all the rights to local distributors. This can be done by appointing one or two well qualified executives in the local market area. This will accelerate the development and will also maximize the performance. A wrong market development strategy will not result in the appropriate strategy of market entry. It has become imperative for the companies to reorganize (3), rethink and reinvent their strategies of marketing for competing in a world of changing marketplace. It has been observed that it is very risky to continuously follow the very same path for the business and marketing strategy in the so called turbulent markets which are affected by various economic and political disturbances in the global market place. It thus calls for the creation of new marketing approach and removal of the models that they currently possess for an increase in the pace of change and level of complexity. The products that a company produces or the services that it may provide which is introduced in the market place are in competition only for a shorter time period. It becomes a difficult decision for the firms to differentiate between the various products that are placed in the market place in such circumstances when each and every manufactured good becomes a commodity in a short span of time. There has been a mistaken opinion on the part of most of the companies to underestimate the strengths of the competitors and even that of the new competitors who have entered into the market from the conventional boundaries of the existing industry. Most of the companies undergo a poor developing of the jobs and need a strong understanding of the cultures that each country, where they carry their business, have. There are many countries who wrongly take it for granted that they have knowledge about the new cultures and they also think to have known about the differences and the similarities between the newly emerged markets and countries and that of the home country of the company and also inclusive of the various other countries where it has its operations. The more responsible the company will become if it clearly understands the peculiar desires and needs of the current market. It has been seen that most of the companies develop their services or products for the global market itself and there are very few of the companies which carry on their business in the limited domestic market. There are even certain companies that consist of top marketing teams which include even executives from many other countries. This proves to be helpful in the way that by doing so the company becomes capable of understanding the diversified tastes, needs and wants of the global market. It has been said that the marketing department of the company should become the eyes and ears of the company and to give signals in the early stage so as to cope with the changes required in the best possible way known. This needs that the marketing concepts themselves and the methods need to adjust themselves to such changes that come in their way. In the world of the greater global markets and the mass customization, it has become imperative to focus on the introduction of the services and products that are specially designed for the local markets and also the global market. It is seen that the new kind of business model is rather based on relationships than the transactions. In this case the supplier and the customer work together and even the companies do not sell their products and services but provide valuable solutions to the problems of the customers. The factor of competitive advantage will lie not only in the marketing power of the company but also the finesse, quality and the timing of the efforts of its marketing. This new model will create a new organizational culture which will reflect the values of the organization and also the characteristics of the successful enterprises of the 21st century. It has almost become obligatory to know about the competence of the technologies and even the scope and skill of the geographical nature in order to design the architecture of the organization in the age of global information. This further needs the hiring, selection, motivation, development and retention of the various workers and the stake holders, those of whom represent the different parts of the world and are from the diversified cultures spread all over the world, who can operate efficiently and comfortably in any place in the world with the available technological tools of information. It will become imperative for the companies who are waiting to avoid the threats and take advantage of the opportunities of the changes in the information age of the global market to change in a radical manner. In the time when the market place in the global field is going through dynamic changes, to be not being market driven and not acting in a bold and rapid manner in the lines suggested by the newly built marketing strategies, is a very risky decision. Reorganizing, reinventing and rethinking about the strategies of the global market are very essential Though it might seem impossible to believe (4) but yet there are many big and small companies, even now, who have still not developed any rational marketing strategies in the internet. Since the internet has now being considered as of vital importance, it would be foolish on the part of a company not to make use of the internet for marketing purposes. There are certain reasons which are helpful in making one understand as to why a company should utilize the resources provided by the internet in the marketing field. They may be describes as follows: The most important change that has occurred it the way in which the customers now get the information has given rise to the change that the marketing strategy needs to be changed. The customers though seek knowledge about the various products, through sales representatives, magazines, friends yet they turn to the internet as the primary source of knowledge. The internet no only has become a source of knowledge but is going to be the expected location that the customers may need to learn about the products and make their purchases there. The internet is the best way for the capturing of the wide range of the information about the customers’ activities. The marketing through the internet is a totally target marketing means. It has been observed that the internet is becoming the most efficient method for impulse purchases by the customers. A company can develop loyal customers when the services and products that are offered are designed to satisfy the needs of the individuals. The internet marketing takes the prospects right to the point of sale. It also shows to the world that it is the best service provider. The internet incurs lower costs, lower overhead and the best services. It also creates a presence in the worldwide manner which also makes it efficient in the marketing field. Thus the internet should be utilized as a very good means of marketing strategy buy the companies in order to compete in the global market. All these factors taken into consideration would provide for a marketing strategy which would be best for a new product to be launched in the market. References 1. Isidro M. Isabel, Tips and Traps in Developing Marketing Strategies, “Power HomeBiz Guides”, 2000, http://www.powerhomebiz.com/vol6/marketing.htm 2. Arnold David, Strategies for Entering and Developing International Markets, “Financial Times Prentice Hall”, 17 October 2003, www.phptr.com/articles/article.asp?p=101588&seqNum=4 3. Marketing Strategy in Global Information Age, “Knowledge@Wharton”, October 1999, www.inc.com/articles/1999/10/14885.html 4. Christ Paul, 10 Reasons Marketing Strategy Should Include The Internet, “knowthis.com”, May 2005, http://www.knowthis.com/articles/marketing/reasons_for_internet_marketing.htm Read More