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Marketing Plan for White Appliances Inc - Essay Example

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The main purpose of this report is to develop a marketing plan that could be used White appliances Inc. in marketing its microwave products in India. The study outlines the long term and short-term marketing plans that could be used by the company in India…
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? Marketing plan For White Appliances Inc. College: Executive summary The main purpose of this report is to develop a marketing plan that could be used White appliances Inc. in marketing its microwave products in India. The study outlines the long term and short-term marketing plans that could be used by the company in India. White Appliances Inc. primarily focuses on meeting the needs of the high-income customer segment and this strategy will call upon the company to serve customers across the various income segments including the lower-income segment. This study has identified that the company’s positioning strategies should focus on differentiating the company’s products from the other products variety provided by competitors. The pricing strategy identified also allows the company to launch its brand in the market and build relationships that promotes the customer-business relations this study has used push strategy to optimize use of the available distribution channels. This strategy will help the company to offer distributors some generous discounts that would enable them achieve the objectives of giving the distribution channels incentives. This study has done market intelligence to analyze customers and competitors and has also conducted micro and macro environment analysis using SWOT and PEST analysis. Creating product awareness and improving customers’ knowledge about the product are important in achieving the desired market presence. Background of the company White Appliance Inc. is one of the international companies in America that manufacture and markets its appliance products globally. Microwave ovens are one of the company’s product lines with production plants in United States and in Asia. White Appliances Inc. Produces and markets its products to high-income customers across its global market. The company has invested in India and it is using high-end business models to market its products in the Indian market. The company is currently having limited market in the Indian market. Microwave is deemed inconvenient in the Indian cooking. However, this is largely associated to lack of idea of what the microwave is and what it really does. The main challenge faced by White Appliances Inc. is how the company should sell the microwave product in India successfully (Majumdar 2010, p. 16). Microwave products refer to the cooking devices that help in both cooking and reheating of food by passing the foods to be heated through electromagnetic radiations that emanate from all directions. Company’s situation analysis Goals: White Appliances Inc aims at penetrating microwave oven market in India cutting at all prices segments. The company has mainly focused on high price segment but it has established the need to cut across all other market segments (Mills 2002, p.3). The company also aims at increasing its market share in India; currently the company has very limited market presence. White Appliances Inc. also looks forward to changing consumer conceptions about microwave in the market. Focus: the main focus of White Appliances Inc. is to penetrate Indian market at all price levels by shifting consumer conceptions or mindsets concerning microwave ovens and also by educating customers on the usage of microwave in cooking and reheating of food (Cateora et al 2009, p. 43). Corporate culture: White Appliances is committed to manufacturing and marketing of superior products ranging from scooters to soda pop to kitchen appliances. The company is innovation driven and it corporate culture has also exhibited reliability, high quality and excellence. The company is committed to meeting customers’ needs and in this regard it has focused on improving the understanding of customers about their products. The company is sensitive to customers’ views and its uses the views to determine customers’ satisfaction (Mohr et al 2009, p. 5). Strengths of the company: the company has familiarized itself in the Indian market as seen in the high-models developed for the Indian market. This has been critical in strategically position the company’s microwave brand as a high-end brand (from the case study). Customers in India, relate the price of the company’s microwave price with high quality (Baisya 2008, p. 213). It is therefore possible that penetrating other price segments will make the product be deemed as a high quality product offered to the lower-income segment. Another aspect of strength of the company is that it has impacted on customers in the United States and also across Europe, Indians expatriates working in the these markets are familiar with the products of the company since the company has rich market presence in the markets. This has seen Indians who come back to India buying the company’s microwave ovens. Weaknesses: the main weakness of the White Appliances Inc. is that it has failed to make an impact on the Indian consumers and has not therefore influenced the consumers’ conceptions about using microwave ovens. Indians belief that the microwaves are not suitable for their cooking and the company has not so far made an impact on that conception (Majumdar 2010, p. 17). Another weakness, which is also related with the mentioned weakness, is that the company has limited presence in the Indian market. Market intelligence Customer analysis India’s potential market size of customers is 561 million out of which 90 million belong the middle income class with income within the range of $4,500 and 22,000 per annum. 287 million of the consumer population are in the category of those that aspire to be in the middle class with income range of $2000 and $4,500. 70% of this consumer population are in the urban areas particularly Delhi and Mumbai. Several Indians who have been working in United States and Europe are repatriating to India and this is promoting American spending habits in India (Sulthana 2012, p. 248). The consumer population depicts a market that cuts across all price levels. The greatest challenge with the consumers is that Indian consumers lack knowledge about microwaves (Bullis 1999, p. 69). Indian consumers have conflicting ideas and conceptions about microwave oven. The market for microwave ovens grows fast when the consumer eating habits change (Pervez 2006, p. 32). The consumers’ views show that they are unfamiliar with the way microwave oven is used particularly in cooking the Indian cuisine and they thinks it is a device that is designed for the Westerners (Bullis 1999, p. 69). Middle income consumers look for value, novelty and competitive pricing when considering buying microwave ovens. Microwave oven products have begun penetrating the smaller towns (Majumdar 2010, p. 16). Some consumers buy the device for fun or just to have it, others despise foods cooked or reheated using microwave oven while other consumers believe that the device is mainly used by husbands to cook and heat food. The consumers are yet to understand and accept that microwave oven can be used to prepare all types of dishes. Market intelligence indicates that the Indian market for microwave has remained grey and that companies investing in the market in the particular product line must emphasize on creating market awareness. Cuisine preparation among Indians is somehow different from the Western cuisine preparation (Dindyal & Dindyal 2004, p. 1549). Main ingredients are rice, pearl millet, whole meat flour and variety of pulses. Indian cuisine is cooked using vegetable oil and various spices including chilli pepper, turmeric, black mustard and cumin are used. The dish is seasoned with saffron, cardamom, rose petal essence and nutmeg. As mentioned by Dindyal and Dindyal (2004, p. 1564), religion is a key influence factor on the food eaten in Indian. The main difference between Indian and Western cooking style is that Indians prepare food normally for a large number of people and this is done during the day while in West, food is prepared for small number of people and mostly at night. In that regard, things like microwave may limit Indians’ cooking size and disrupt their style. Competitor analysis Main competitors in the Indian microwave oven market include Whirlpool, Samsung, and LG Electronics all of which are international companies. LG Electronics is the leading the competitor with about 41.5% market share following by Samsung (Baisya 2008, p. 213). LG has 8 market models that it uses in penetrating the Indian market that enables the company to meet customers’ needs across various price levels (Hanagandi et al 2012, p. 355. LG Electronics have gained consumer confidence in the market. However, the company has failed to educate Indian consumers about the microwave oven usage (Kumar 2007, p. 325). Earlier market leader in the Indian microwave market was the Kelvinator’s Magicook that entered the market 7 years ago but its microwave appliances was very expensive (not less than Rs 20,000) and this was the company’s business did not find acceptance for many Indians. The competitors have mainly concentrated on the urban areas (Saxena 2009, p. 285). In the last two years, microwave oven prices have declined from Rs 7,000 to Rs 5,000. This has been the main factor behind the increased sales of the product in India particularly in the urban and semi urban areas. Macro environment PEST analysis Political environment: India has enjoyed political stability since it gained independence in 1950. This stability has been key attraction to foreign investors and domestic companies to invest in the economy (Luther 2011, p. 26). Economic environment: Indian economy in sunder transformation and has aimed at improving investment climate, creating a comprehensive WTO strategy, eliminating red tape, instituting good corporate governance among private and public enterprises as well the government enterprises and agencies (Indian Institute of Public Opinion 2003, p. 64). The transformation is also aimed at reforming the agricultural sector, small scale enterprises and the food processing sector. Social environment: Indians lifestyles indicate a fast changing social and culture perspectives as most Indians adopt American expectations and spending habits. Indian economy has seen influx of international firms that are seeking to cut production cost by accessing cheap labour (Sarangapani 2010, p. 16). Competition among these firms has seen increased salaries and this improvement in consumer income have changed most Indians’ social standing (Indian Institute of Public Opinion 2003, p. 68). Cooking and eating habits are largely influenced by the religion mainly Hinduism, in India (Dindyal & Dindyal 2004, p. 1564). Technology: India has seen great improvement in technological developments in the past decade or two. These technological developments have particularly impacted on the manufacturing sector and the IT sector (Keillor 2007, p. 115). However, the technological improvements are yet to impact on microwave oven technology (Vashisht 2008, p. 235). Factors that have disrupted technological improvement in microwave oven include poor knowledge on the products usage lack of technical services provision by the microwave producers such as after sale service in case of failures. There other challenge though not a big challenge has been lack of technicians who are knowledgeable to handle the technical and after sales services. SWOT analysis Strengths: Microwaves are manufactured using high technology in the United States and they are of high quality. The new technology is deemed highly suitable for the Indian cuisine. The microwaves are easy to use and provide different functions including cooking, toasting, grilling and heating food (Melchinger 2002, p. 49). The device is also safe for children’s use and the customer can enjoy after-sales service. Weaknesses: the company has been charging high prices for their microwave oven products since it is targeted for high income class of consumers. This faces an economy where most products are relatively low-priced. There lacks brand awareness in the market. Opportunities: Indian market has the potential to support an all-price levels product. Indian’s economy has been growing at a very high rate and this provides a potential market for the company’s product. Most of the microwave sales are made in the urban and the semi-urban market meaning that the rural market is still unexplored (Saxena 2009, 102). The microwave oven can be used to cook all Indian dishes particularly the Indian cuisine. The lifestyles of the Indian population are changing and this is positively impacting on the microwave oven market. The company can also enjoy labour pool possibly at reduced cost compared to the cost in Europe and U.S. Threats: There key market players who are the LG Electronics and the Samsung have captured large percentage of the markets share (Baisya 2008, p. 213). This implies that White Appliances Inc. is likely to face stiff competition from these major market players. Indian traditional culture on dishes like the cuisine’s preparation hinders consumer knowledge creation and some despise the use of the device in preparing cuisine. Marketing strategy To reach the lower-income consumers, middle-income consumers and the high-income consumers will require White Appliances Inc. to adopt a low-cost strategy in order to produce low-cost products and charge low prices thereby attracting low-income and middle-income consumers (Vashisht 2008, p. 237). However, the company must also differentiate it products in the market. Low cost strategy will therefore be applied in the manufacturing of the microwave appliances to make a way for lower prices while differentiation strategy will be applied in the marketing of the product through providing the required after sales services and exceptional customer service. Another important strategy to be used by White Appliances is the Dominance strategy whose tactic involve following strategies learnt from the leading market players. However this strategy will be partially used in the instances where the market leaders have excelled since even the players have failed to succeed in the market (Vashisht 2008, p. 237). Product differentiation strategy and the low-cost strategy are therefore selected as the marketing strategies to be pursued in marketing White Appliances Inc.’s microwave ovens. Market targeting Market target: in marketing the microwave oven in Indian, White Appliances Inc. will target low income, middle income as well as high income customers. The company has already gained confidence in high income consumer segment and is now targeting to reach the high income segment in the urban and semi urban areas as well as the rural consumer population (Majumdar 2010, p. 15). The company will target college graduated students and young couples who are within the age bracket 23 to 40 years whose incomes could range widely across the three income brackets. The company will also target customers whose lifestyle demonstrates modern cooking and the need for hurry-up styles (Kotler & Keller, 2012). Market segmentation Home makers: under this segment, consumers are characterized as conventional Indian family with family-oriented household consumption. These are families where women run most of household coking and identifies that microwave is equally important as the fringe. This segment comprise of mainly the middle-income earners whose purchasing decisions are influenced by the aspect of value for money and durability (Majumdar 2010, p. 16). Yuppies: these are young urban professionals who comprise a slowly growing consumer segment. This segment comprises of male and female graduate professionals who have recently or are in the process of settling down after their first jobs and they are living in urban or the semi urban. The consumers are value driven, sleek and modern (Majumdar 2010, p. 16). They prefer competitive pricing. The early adopters: this consumer segment comprises of you married couples and those who are dating. The consumers are characterized by unconventional and fast paced lives (Srinivasan 2005, p. 75). They seek innovative products that meet their needs and deliver the desired quality. They are not price-sensitive and are mainly high-income shoppers. Marketing mix Marketing mix refers to the four P’s referring to the pricing strategies, promotion strategies, product strategies and the place strategies (Schewe & Alexander 1998, p. 18). The analysis of the Indian market, the company’s situation and the market intelligence has provided in-depth knowledge in developing the marketing mix for the company’s marketing strategy (Armstrong et al 2008, p. 76). Product: product decisions determine how the brand will be perceived by customers (Schewe & Alexander 1998, p. 24). The microwave oven device is used in cooking and reheating of food by passing the food through electromagnetic radiations that heat food from all directions. The product line will provide a product that will meet consumers’ needs. The brand name used in the market will remain as White Appliances and the product features will include basic microwave models for reheating and cooking or mainly defrosting and the advanced microwave model that will include grilling facilities and the oven facilities that facilitate speedy cooking process and reheating, which will be suitable for Indian’s cooking styles. In addition, to the two models of microwave provided, the company will include important features in the two models including cardboard box packaging that will comprise of microwave oven picture together with the device’s brief description. Consumers will also be given one year product warranty after purchasing the microwave, as part of the company’s commitment to quality service (Szymanski 2011, p. 61). The different models of microwave will be provided to meet the needs of different consumer lifestyles, various style swill include over-the-range microwave, counter-top microwave, and the built-in microwave (Whitney 2005, p. 153). Manufacturing standards and technologies used will be dedicated towards production of high quality microwave appliances and ovens. Price: the main aim of White Appliance Inc. is to market its microwave ovens across all price levels. The company will apply comparable pricing strategy, which will enable the company to learn what prices other companies in the market are offering for the same products and what consumers are ready to part with in the various consumer-income segments (Kaul 1998, p. 8). Prices ranging between Rs 7,000 and Rs 20,000 will be selected for the various urban centres and these prices will differ across the urban and semi urban areas and in the rural market where prices are likely to be set as low as Rs 4,000. Promotion: promotion is an important element in the marketing mix and comprises of the promotion decisions such as advertising, media types and public relations (Schewe & Alexander 1998, p. 42). In the context of White Appliances Inc., the company will advertise the microwave oven products using media as the vehicle for creating brand awareness. Advertising will be done through magazine ads and billboards; this will involve hiring of famous Indian chefs to promote use of microwave in the market. Billboards will be created and placed along major highways and these will play an important role in informing motorists and passengers about the product. This will particularly cut across the professionals, early adopters including the lower-income group of consumers who use the roads to go to work or to come from work or to go to their businesses. The sales team will also run exhibitions in major malls demonstrating how microwaves are used; this will particularly help in reaching to consumers coming to shop in the malls (Srinivasan 2005, p. 75). The company will also select one of the national televisions and incorporate microwave product in one of the popular cooking shows. Sales promotion will also play important role in sparking brand awareness. Sales promotion activities will include price off discounts and offer introductory prices. Another promotion decision in this market will involve personal selling through direct mail and through door to door sales that will be done by sales personnel (Hoffmann 2008, p. 6). Personal selling will be facilitated by direct selling catalogue that will provide information on the products and the usage instructions. Place: placement decisions relate to the distribution channels established by the company to ensure that products have reached customers (Schewe & Alexander 1998, p. 64). Distribution channels influence transactions, logistics and the facilitating functions. Placement decisions include channel selection, logistics, and levels of service and market coverage. Channels selected by White Appliances Inc in distributing microwave ovens will include departmental stores in major towns, electronic dealerships and major retailers. The company will provide these distribution channels with trade discounts as a way of motivating them. The criteria used to evaluate distributors will include examining the targeted audience and the commitment of the distributor to sound values and business practices. Short-term plans Microwave technology: The way in which food is prepared in India is different from the way food is done in the West (Khanna 2008, p. 301). White Appliances will need to alter its microwave technology innovation until probably when Indians have been able to accept the Western cooking habits (Kaul 1998, p. 6). Indians values and traditions demonstrate a traditionalist community that adhere to the conventional way of doing things. Enlightening the consumer about the microwave usage will therefore be essential in reaching to them (Dayal & Jain 2010, p. 23). Focusing on the urban market: providing microwave oven at a lower price in order to compete with market leaders will be important. Microwave oven is more likely to be embraced by the urban population more than the rural population since it provides a faster way of cooking food. The urban population are therefore more likely to embrace the idea of faster cooking and therefore generate more sales. It is also likely that urban people will find the device affordable compared to the rural consumers (Dayal & Jain 2010, p. 23). The company will in the first six months concentrate on reaching the urban consumers particularly in Delhi and Mumbai where about 70% of the urban population live. Advertising and communicating the product will be essential; this will be done using regular ads and billboards. Introduction of the microwave oven in the rural areas: this is likely to be a challenging marketing idea given that microwave oven is not a readily cheap device. The company will offer microwave oven to the rural consumers at discounted price and at the lowest price in the possible price range for the product. This will be focused on making the product affordable for these customers (Dayal & Jain 2010, p. 23). Long-term plan Maintaining the urban market through brand awareness: the urban market that will be established will need to be maintained and improved continually given that it is expected to be the largest source of sales generated by the company. Maintaining the products sales and the market will involve continued introduction of new recipes as well as new products. Maintaining the market presence could also be done using corporate philanthropy where the company donates microwave to schools, suburban housewives and small scale industries (Dayal & Jain 2010, p. 24). The company can also introduce membership with points where purchases are accompanied with things like tableware. White Appliances can also induce an offer where consumers are asked to bring their old microwave to the company in exchange for a new microwave model given at special price. Penetrating the rural consumer market: this will involve massive distribution of microwave oven products in the rural areas at reduced or the lowest prices (Bullis 1999, p. 69). This must be achieved in a period of two years and will facilitate wide acceptance of the product across India. Conclusion Given the economic growth of the Indian economy and the change occurring in Indian living styles, it can easily be concluded that microwave usage is becoming accepted in the consumer population and this makes the market viable for White Appliances Inc (Shivakumar 2004, p. 23). Introducing new cooking styles and new ways of using microwaves will make the consumers see the need to have one. The company will focus on reaching the urban areas as well as the rural areas, whose potential stands untapped. White Appliances Inc. Has will combine style and adaptability in producing and marketing the best microwave product for the Indian market. This will ensure that the product offered in the market is convenient for customers and that it meets the needs of the consumers. White Appliances Inc. White Appliances Inc is a U.S. company investing in the Indian market through the microwave oven product line, the company is challenged by the product usage and awareness in the market and this challenges the company to alter its microwave technology and style to suit the Indian cooking style (Whitney 2005, p. 153). This market plan has explored the market environment and the situation of company and come with an applicable marketing mix that would see the company realize its objectives. It is possible for the company to shift consumer mindset in the Indian market by harnessing their expertise and resources (Keller 2012, p. 84). This will see White Appliances In become the market leader in the Indian market. References Armstrong, G, Brown, L & Deans, K (2008), Marketing 8th Edition, New Jersey, Pearson Education. Baisya, R (2008), Aesthetics in Marketing, London, SAGE Publications Ltd. Bullis, D (1999), Selling to India's Consumer Market, Westport, Greenwood Publishing Group. Cateora, P, Gilly, M & Graham, J (2009). International Marketing. 13th Edition. London, McGraw-Hill Dayal, A & Jain, D (2010), Winning Strategies for the Indian Market, India, Northwestern University Press. Dindyal, S & Dindyal, S(2004), How Personal Factors, Including Culture And Ethnicity, Affect The Choices And Selection Of Food We Make, The Internet Journal of Third World Medicine, Vol. 1, No. 2, pp. 1539-4646. Hanagandi, R, Roduguese, F & Patil, S (2012), Relative Analysis On Customers’ Satisfaction Of Microwave Oven: Study On Select Companies, International Journal Of Multidisciplinary Research, Vol.2 Issue 2, Pp. 343-356. Hoffmann, S (2008), Are the 4 P's of International Marketing of Equal Importance to All Firms, New York, GRIN Verlag. Indian Institute of Public Opinion (2003), Monthly commentary on Indian economic conditions, Volumes 45-46, Mumbai, Indian Institute of Public Opinion Kaul, T (1998), Indian Microwave Cook Book, Delhi, Indian Microwave Cook Book Keillor, B (2007), Marketing in the 21st Century: New world marketing, Volume 1, Westport, Greenwood Publishing Group Keller, K (2008), Strategic Brand Management: Building, Measuring and Managing Brand Equity, Upper Saddle River, NJ, Pearson Education Inc. Khanna, R (2008), Project Management, New Delhi, PHI Learning Pvt. Ltd Kotler, P & Keller, K (2012), Marketing Management, 14th ed., New Jersey, Pearson Prentice Hall. Kumar, R (2007), Marketing and Branding: The Indian Scenario, New Jersey, Pearson Education India Luther, W (2011), The Marketing Plan: How to Prepare and Implement It, New York, AMACOM Div American Mgmt Assn. Majumdar (2010), Consumer Behaviour: Insights from Indian Market, New Delhi, PHI Learning Pvt. Ltd. Melchinger (2002), Use Temperament to Boost Understanding and Sales, Marketing Mastermind, Vol. 2, No.6, pp. 45-46 Mills, G (2002), Retail pricing strategies and market power, Melbourne, Melbourne Univ. Publishing. Mohr, J Sengupta, S & Slater, S (2009), Marketing of High-Technology Products and Innovations, Upper Saddle River, NJ, Jakki Mohr. Pervez, A. (2006). Marketing Is King: Real World Marketing to Build Relationships, Get an…. New York, Morgans James Publishing. Sarangapani, A (2010), A Textbook on Rural Consumer Behaviour in India - A Study of FMCGs, New Delhi, Laxmi Publications, Ltd. Saxena (2009), Marketing Management 4E, India, Tata McGraw-Hill Education Schewe, C & Alexander, H (1998). Portable MBA in Marketing, New Jersey, John Wiley & Sons. Shivakumar (2004), Buying Behaviour of consumers towards the products produced by SSI Units, Indian Journal of Marketing, Vol. 34, No.3, pp. 19-23. Srinivasan, R (2005), International Marketing 2Nd Ed, New Delhi, PHI Learning Pvt. Ltd. Sulthana, N (2012), Working Women Attitude On Buying Of Microwave Oven – An Empirical Study, International Journal of Multidisciplinary Management Studies, Vol.2, No. 2, pp. 246 -251.  Szymanski, A (2011), The Theory and Practice of International Marketing – B2B, New York: GRIN Verlag. Vashisht, K (2008), A Practical Approach to Marketing Management, New Delhi, Atlantic Publishers & Dist. Whitney, B (2005), Real-life marketing and promotion strategies in college libraries ...New York: Routledge. Read More
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