Marketing Background of Ecostore - Case Study Example

Executive Summary The paper which evaluates the manner in which Ecostore has managed its marketing mix and competition helps to bring out important dimensions to be considered. It is witnessed that Ecostore has a big product range which has thereby provided an opportunity to have product for every household. Since, the business is slightly different from other players in the market as the product is chemical free it has positioned its products slightly different from its competitors. The pricing mechanism as a result which has been adopted is competitive pricing. Ecostore also relies heavily on promotion as different strategies are undertaken keeping in mind the promotional activities. The distribution channel which has been adopted by Ecostore consist of both online and offline transaction. The organization faces stiff competition from direct and indirect players. Ecostore for its future development and endeavour needs to look at having different promotional schemes for different segment of the society. They should further look at having different packaging sizes and addition to product line so that both economical and luxury class segment of people can be better attracted. Table of Contents Executive Summary 1 Introduction 3 Marketing Background of the company 3 Marketing Mix 4 Competitor Analysis 7 Recommendations 8 Conclusion 9 References 11 Appendix 12 Introduction This paper looks at evaluating the marketing mix and competition which Ecostore faces and the manner in which different strategies are undertaken to deal with it. The report has been divided into different pats and starts with marketing background of the company. This is followed by the marketing mix which consist of product description, pricing, promotion and distribution strategies which has been undertaken by the organization. The report then provides a competitive analysis with regard to the competition which the business is facing. Finally the report provides recommendations regarding the strategies they need to undertake so that better results can be achieved and the overall business effectiveness can be improved. Marketing Background of the company Ecostore is a New Zealand based organization which deals in household and body care products. The organization has looked towards working in the global arena and has thereby started working in other countries like Australia. The company works in both the wholesale and retail distribution system. Some of the products which Ecostore deals belong to kitchen use, laundry purpose, bathroom purpose, cleaning purpose and baby purpose. Presently the organization manufacturers over 100 products and all the products are safe under the environmental and sustainability standards. The industry where Ecostore works is highly concentrated and has to deal with a very high degree of competition. This has made it difficult for the players to continue to sustain a large market share and requires continuous innovation to be able to grow and improve its business. The business has identified different sustainable practices which have helped to grow the business. The organization has identified the manner in which they need to use their organizational culture for their strength. This has thereby developed a strong organizational structure which suits the needs of the organization. The overall phenomenon has shaped the working culture as giving importance to it has transformed the working arena (Sevari & Kandu, 2011). The organization has given special importance to human resource and looks at developing employees. The organization continuously looks at training the employees so that they can carry out their roles and responsibilities in the most effective manner. The process of providing training depends on the individual as the business focuses on ensuring that every employee is capable of carrying out the different roles. Ecostore also looks at ensuring that the employees are continuously motivated to carry out the different roles and responsibilities. This has helped Ecostore to ensure that the employees are better committed and carry out their roles effectively. In addition to it Ecostore uses different technology like JIT and stock management system has helped the organization. Ecostore through the use of internet has ensured that they get a global presence as every customer can reach the company and get the required information and products through the website (Tharp & Scott, 2012). This has helped Ecostore to ensure that the reach and penetration level improves. The business has thereby looked at different sustainable practices to develop its business. The business has also looked towards the society as selling products which are chemical free has enabled the business to ensure that no harmful chemicals are released in the environment. This has helped to take appropriate steps towards having a sustainable society. In a similar manner Ecostore has ensured that the environment is protected by having products which are chemical free thereby ensuring that no harmful chemicals are released in the environment. The resource sustainability is witnessed through the manner in which the different resources are protected and used so that long term growth prospect can be achieved. The different things which Ecostore has done to achieve sustainability are firstly using products which are eco friendly ensuring better sustainability for society and environment. Secondly having suppliers who provide raw materials which are consistent and free from any harmful chemicals thereby protecting the society. Thirdly, having a corporate governance norm which everyone within the organization has to follow thereby ensuring that better rules are followed (Bamossy, Gary, Solomon & Michael, 2004). Fourthly, continuous training so that every employee is capable of delivering superior performance. Lastly, abiding with the different rules and regulations which have been provided by law Marketing Mix This section will comprise of 4 parts which will help to understand the marketing strategies which is being used by Ecostore. The three sections are product, pricing, promotion and distribution Product Ecostore deals in a large range of products belonging to kitchen use, laundry purpose, bathroom purpose, cleaning purpose and baby purpose. The different laundry products which the organization provides are laundry powder, laundry liquid, soaker and stain remover, wool and delicates and fabric softener. Similarly some baby products which Ecostore provides are baby lotion, baby body butter, hand cream and lip balm; some dish based products are dish liquid, dishwasher tablets, dishwasher powder and rinse aid. In addition to it the business also provides other cleaning product and baby products which has helped them to increase their product range. Ecostore provides a lot of services to its customers and the products supplied by them are chemical free. This causes minimum harm to human body, the environment and the society at a large. The manner in which Ecostore has looked at ensuring that the products supplied are consistent and matches with the standards which have been selected by them (Czinkota & Ronkainen, 2004). The standards which have been selected to ensure products supplied are based on international standards and has thereby enabled the organization to ensure better consistency. Ecostore thereby ensures that the products sourced are of the finest quality and ensures consistency in the products which are continuously sourced. Ecostore has a range of suppliers who provides the different materials based on the specific standards which have been prescribed. The different supplies which Ecostore procures are of similar quality and consistency is maintained while procuring different products. The different suppliers are also selected by Ecostore after looking at different dimensions so that products which are procured don’t have chemicals and are eco friendly. This has ensured that the products better matches the different specific needs and helps the business to deliver quality products. Ecostore customers consist of a large number of people using similar products in their daily life. Some of the section of the society which Ecostore looks to attract are household, children, laundry service provider and others looking to use similar products. The organization also aims towards attracting customers using internet as a medium to purchase the products (Urban & Hauser, 2005) Having a wide audience and appealing to a large number of people has ensured a wide market and multiplied the opportunity of attracting different people from the society. Pricing The pricing mechanism which has been adopted by Ecostore is competitive pricing. Since, the degree of competition is high and other players look to provide similar products to similar customer base of competitive pricing mechanism is being used. This has helped Ecostore to ensure that the prices of the product are kept low so that all section of the society can be attracted (Chrisan, 2001). Since, Ecostore has worked on the dimension of ensuring that the products are free from chemicals it has resulted in the price to be slightly high compared to other chemical products which are available in the market. While comparing the same with other products having similar composition it is seen that the prices of the product is low. Having competitive pricing has enabled Ecostore to ensure that they are able to capture a wide audience and has enabled the business to be developed on strong fundamentals. Promotion Ecostore has looked towards being aggressive by developing promotional strategy which matches the product needs. Ecostore looks to advertise aggressively and used different media like social networking sites, advertisement through newspaper, television and radios. In addition to it Ecostore uses word of mouth advertising so that it can attract a large section of the society. Using different advertisement medium has helped the business to be promoted and has given the platform through which business has been better governed (Alvarez & Casielles, 2005). Apart from advertising Ecostore also looks at different discounts, loyalty points, and special offers so that a pool of loyal customers can be identified. Using different promotional techniques has helped the business to be promoted in a better way as it has helped to find out the different core areas to grow the business. Ecostore has further aimed at ensuring that the promotional mechanism which has been identified is consistent and continuous. Using social networking sites has helped the business immensely as it has to promote on different platform and has multiplied the opportunity for the business to build a pool of loyal customers (Ismailpour & Ghafarieashtiyani, 2002). The different promotional tool has brought about the required dimensional change in business and has thereby multiplied the overall perspective to develop the business. Distribution Ecostore uses different method of distribution to ensure that the product reaches the final consumer. On the fore front Ecostore looks to sell its products directly through online transactions. Through this mechanism consumers can browse the products online where every detail about the product is provided. After looking at all the details the consumer can purchase the product and pay online. The consumers can even avail the different discounts which are available. After the consumer makes the payment for the product then the product is shipped to the customer and the customer received the product after 5 to 7 days. In addition to it Ecostore also uses traditional mechanism where the presence of different partners like wholesalers, retailers and distributor are present (Brassington and Pettitt, 2001). The goods passes through different medium and process and finally is passed to the consumer through different stores. Through this distribution mechanism the customer can see and touch the product, read the details and after complete satisfaction can choose the product which they feel is most suitable for them. Using a mix of different distribution mechanism has enabled the business to be built on strong fundamentals and has helped to ensure that it reaches all type of customers. This mechanism has helped Ecostore to ensure that the distribution mechanism fetches maximum rewards and helps the business to grow. Competitor Analysis The degree of competition which Ecostore faces is stiff. There are numerous other players in the market which are working on the same business fundamental and are looking to acquire a similar market share. The slight differentiation which Ecostore has is that the products are chemical free and provides an opportunity for the business to be developed on different fundamentals (Hague & Hague, 2004). Ecostore faces competition from local players who look at supplying similar products in the market with a slightly lower price. In a similar manner Ecostore faces competition from international players who have high quality products aimed at a similar customer base. The degree of competition also comes from players using internet as a medium to sell products which has thereby made it difficult for Ecostore to carry on business as similar customers are being attracted (Awni, 2008). Ecostore faces stiff competition from indirect players looking to provide similar products but with different composition. The indirect competition has made it difficult for the business to be competent as other players look to create hurdles in the path of the Ecostore. Apart from it Ecostore faces competition from unbranded and unorganized sector which has made it difficult for Ecostore to identify the different dimensions they need to work. As a result the overall degree of competition is very high and appropriate strategies to deal with the competition needs to be identified so that business fundamentals can be better developed. The marketing mix which the competitors have adopted is one where they look at competitive pricing and ensure that the products are priced close to its competitors. The business for its promotion relies on advertising as a medium for creating awareness. This is backed by different promotional schemes, discounts and offer which helps consumer to get the products are competitive price (Percy and Elliott, 2004). The competitors to attract the different segment of consumer have different packaging suiting different consumer needs. Having a large range of product has enabled the business to be able to attract all section of the society. The marketing mechanism which the competitor has adopted highlights that its is very close to Ecostore and has developed its strategy keeping different objective in mind. Recommendations Based on the marketing mix and competition Ecostore has to look at certain areas so that they can develop their business further. Some of the important areas which Ecostore needs to look at are Ecostore has to look at promoting the products aggressively which will require having aggressive advertising based on product category and need it fulfilled. This will help to ensure that each product will be aimed at different section of the society and through distinctive advertising different section of the society will be attracted (Berkman & Gilson, 2001). This will also help people to better associate with the product thereby providing an opportunity through which more customers will be transferred towards purchasing the products on a continuous basis Ecostore have to look at different promotional schemes which will attract different section of the society. This strategy will require different aspect of business like continuous loyalty points, bonus scheme, special discounts and other offers (Coughlan, Stern & Adl Ansary, 2006). This will help to ensure that customers are continuously attracted towards the product through which the market will increase. Ecostore has to look at making changes in the packaging size. The business should look at having packaging sizes which are economical and can attract different segment of the society (Clemons, 2008). This will help to increase the penetration and reach as it will help to attract a large section of the society. The process would thereby transform into bigger and better business. Ecostore has to look at identifying the new products which can be added to the product line. Addition of new product will help to increase the reach as it will provide an opportunity to attract different section of the society (Firoziyan, Hasangoli & Stiri, 2009). Extension of the product line will help to ensure that there are products for every people thereby enabling the business to be developed on better framework. The process would thereby help Ecostore in bringing the required transformational changes that the business is looking at. Conclusion The paper highlights the manner in which Ecostore has managed its marketing mix and competition. Since, the business is slightly different from other players in the market as the product is chemical free it has positioned its products slightly different from its competitors. The pricing mechanism which has been adopted is competitive pricing. Ecostore also relies heavily on promotion as some of the promotional activities undertaken by Ecostore are advertising through different mediums, discounts, offers and loyalty points. The distribution channel which has been adopted by Ecostore consist of both online and offline transaction. The organization faces stiff competition from local and well as international players. Ecostore for its future development and endeavour needs to look at having different promotional schemes for different segment of the society. In addition to it Ecostore has to look at continuous addition to its product line so that they stay ahead of competition and is able to develop the required path through which better growth and avenues for business development can be identified. References Awni, R. (2008). Strategic position indicating. Translated by SeyedAmir Poya seyfzadeh, Management Selected Monthly, 78, 70. Alvarez, B. & Casielles, R. (2005). Consumer evaluations of sales promotion: the effect on brand choice, European Journal of Marketing, 39 (1/2), 54-70. Berkman, H. & Gilson, C. (2001). Consumer Behavior Concepts and Strategies, Kent, Boston Bamossy, Gary J, Solomon, Michael R. (2004). Consumer Behaviour: A European Perspective: and Critical Thinking in Consumer Behaviour - Cases and Experiential Exercises. FT Prentice Hall. Brassington, J. and Pettitt, M. (2001). Principles of Marketing, 2nd Edition, Prentice Hall Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Czinkota, M.R. & Ronkainen, I. A. (2004). International Marketing, 7th edn. South-WesternPublishing:Australia. Coughlan, A., Stern, W. & Adl Ansary, E. (2006). Marketing Channels, 7e, ISBN 9780131913462 ISBN 10:0131913468 , Pearson Education Clemons, EK. (2008), ‘How information changes consumer behaviour and how consumer behaviour determines corporate strategy’, Journal of management information systems, Fall, 25 (2), 13 - 40. Academic Search Complete (AN 34879420). Firoziyan, M., Hasangoli, T. & Stiri, M. (2009). Investigation of the effectiveness of the services on different processes affecting consumer decision. Commercial Management Magazine, 1 (3), 125-146. Ismailpour, H. & Ghafarieashtiyani, P. (2002). Marketing, 3rd edition, Auniversity of Tasmania, Australia Percy, L. and Elliott, R. (2004). Strategic Advertising Management, 2nd Edition, Oxford Hague, P. & Hague, N. (2004). Market Research in Practice: A Guide to the Basics. Kogan Page. Urban, G. & Hauser, J. (2005). Design and Marketing of New Products, New Jersey: Prentice-Hall. Appendix SWOT Analysis Strengths Weakness Strong Brand Name Limited innovation making other players follow same Differentiated products as it is chemical free Lack of penetration in all international markets Huge range of products Lack of products in all segment to attract household Use of technology to sell the product   Opportunities Threats Extension of product line and adding new products Huge competition from other players working on similar strategy Different packaging sizes so that all section of the society can be attracted Increased pressure from government to sell chemical free products Improving the present product with different flavours and smell Continuous threat from local players having better control over distribution network. Positioning Chart Read More