Micro and Macro Environment Factors Essay Example

Micro and Macro Environment Factors Paper In this report I will be trying to help and advice marketing manager of Dynamic International Ltd. I will explain what are micro and macro environment factors and how do they affect his marketing decisions as well as consumer buying behavior. I will propose him segmentation criteria, targeting and positioning for his products. Micro environment Micro environment consists of the different types of stakeholders outside the organization. The constituents or stakeholders of the micro environment include customers, suppliers, creditors, distributors, dealers, etc. Although these constituents arent the direct control of the organization, still they can be influence by organization through its policies and strategies (Dry. Carmine Gunman, 2010 page 37). Micro environment factors which could influence Dynamic International Ltd are: Employees Employees are critical to success of the organization, the dynamic international is hand gloves manufacturing company and their employees are the ones responsible for keeping their company going. Employing the right stuff, providing them trainings and keeping them motivated gives ability to et customers deadlines and produce high quality hand gloves. Suppliers Suppliers are those that provide goods and services which are transformed into value by organizations. Dynamic Ltd should look for right suppliers and keeping good relationship is crucial to organization, getting competitive prices and high quality goods are the one of the good relationship examples. Customers Customers are the ones who make a market; they are the ones who buy goods and using them. We will write a custom essay sample on Micro and Macro Environment Factors specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Micro and Macro Environment Factors specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Micro and Macro Environment Factors specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Customers are the reason why companies start business, why companies developing new products and differentiated their existing products. By selling the goods to the customers organizations makes a profit, thats why Dynamic Ltd have to concentrate on satisfying their customers needs and wants. Macro environment The macro environment consists of constituents that are beyond of the business organization. The constituents are social-cultural, technological, economical and political factors which constitute their own individual environments (Dry. Carmine Gunman, 2010 page 37). Macro environmental factors which could influence Dynamic International Ltd are: Political Government is the one that responsible providing the rules of the game which make business function smoothly, government responsible for introducing new laws and regulations, taxation for the business. For example if government decides to cut funds for public sector in order to save money, all councils may have to look for cheaper options to buy gloves for their workmen, which means Dynamic Ltd could lose their customers. Economic It is very important to look at economic environment. Almost every business depends on it, some countries have strong economy some countries dont. Economic environment is very dynamic; it keeps on changing in changes with government policies. If economy is poor there will be negative effect on the business and organizations would have to find the way out to make people buy their products. For example if there would be high unemployment in the country Dynamic Ltd would have to use different marketing strategies by using commercials or advertising, or dropping their prices to show compassion for their customers. Technology Technology is changing fast and the adoption of the new technology could be a good investment in the business, for example Dynamic Ltd decide to buy a new manufacturing machine , this could be a competitive advantage for hem, and it could increase a speed of the production and save the money instead of hiring extra employees. Segmentation Criteria To segment the market is crucial because you have to allocate resources and to know who you are concentrated at. There are four types of segmentations which is geographic, demographic, cryptographic, and behavioral segmentation. I will be proposing two segmentation criteria for Dynamic Ltd which is: Demographic segmentation Dave Needled (1999) suggests that this is the most commonly approach to the market. The division of consumer groups according to demographic rabbles such as age, gender, income, occupation, education, family size helps you to target market. Dynamic Ltd could use this to understand how these characteristics influence the products they selling. For example, knowing that customer needs changes with age they could promote their products to meet the needs Of all age Of groups or using gender segmentation they could increase productivity buy start selling both male and female hand gloves. Behavioral segmentation Behavioral segmentations concerned about buyers behavior, they are divided into segments according the way they behave, such as usage of the reduce, knowledge of the product, loyalty, and attitude toward the products. For example loyal customers might be able pay extra price for a pair of gloves, because their trust the quality and standard of the product, but some may not be interested because they know little or nothing about it. Targeting Strategies Another step after we finish segmentation is targeting. Once the market has been segmented, the Dynamic International need choose targeting strategy. Targeting is about which and how many groups of customers organizations are going to target with its products or services. There are three targeting strategies: differentiated, undifferentiated, and concentrated. Differentiated strategy This strategy is when the company decides to target more than a one market segment. Using this strategy the company can spread risk across the market, so if one segment declines the company still has revenue from others. The disadvantage is that it requires a high level of marketing expertise and will incur higher costs (Marilyn A. Stone, John Despond, 2007 page 172). Undifferentiated strategy This strategy is when organization assumes that the market is homogeneous nit, in other words company ignores market segment differences and goes after all market with one product offering (Marilyn A. Stone, John Despond, 2007 page 172). This approach would suit for large global companies that have strong offerings, or organizations who sell commodity products. Concentrated strategy This strategy involves specializing in one specific segment. This can lead to detailed knowledge of target segmentÃ'Å¡ s needs and wants, with the added benefit that organization is regarded as a specialist over it mass-market competitors. Advantage of this strategy is that it reduces costs, as there is only one marketing mix to manage (Marilyn A. Stone, John Despond, 2007 page 172). I think the most suitable targeting strategy for Dynamic International Ltd would be differentiated strategy, because this strategy is perfect for organizations wishing to grow. Targeting more than one segment means that Dynamic Ltd would have got more products to offer, so even if some segments would fail they would still get profit from other segments. Consumer Buying Behavior Why do we need to understand customer behavior? Analyzing customers behavior helps to understand why buyers buy and use certain products and revises, it helps business to adjust their marketing strategies and promote their products. Consumer buying behavior is ;the decision processes and acts of individuals involved in buying and using products or services (BP Learning Media, 2010 page 131). There are many situations that buying behavior could affect marketing activities. As I illustrated below in the first situation it could depend on customers lifestyle. If the customer is young student who doesnt really know much about technology and needs new laptop, because the old one is broken down, would probably make up his mind quick and easy. While professional IT specialist would probably take is time and think about performance and quality of the product. Second situation as illustrated below it might be psychological factors, where customer is loyal to Apple products and belief that is better than any others. Buying a laptop (second situation) Buying a laptop (first situation) Positioning After finishing segmenting and targeting I am going to decide what type of positioning strategy could Dynamic Ltd use for its products. Positioning strategy helps to differentiate organization products and services from its monitors. Havilland (2010) suggest that positioning could be defined as the distinct place of products (or service) occupies in the minds of the target customers relative to competing products. In other word, how the firms wants its products to be perceived by target customer on important attributes or benefits. Differentiating themselves from competitors is crucial to success, being able to create different perception about your product in your targeting customers minds that is where the success is. First thing Dynamic Ltd could try to be different by offering different prices to their customers; however their competitors could switch their prices easy to be competitive. But having good competitive price and quality products that what makes different from your competitors. Dynamic Ltd should come up new design gloves that are comfortable, long lasting and safe gloves that could suit both male and female. Being the first to offer something unique would be a success. They could even use a slogan for their products such as The Best hand gloves to protect your hands Conclusion clearly showed what and how micro and macro factors could affect Dynamic Ltd marketing decisions. Also suggest you the best suitable segmentation criteria, targeting strategy and positioning for your product. Pop my suggestions will help George to make future decisions easier for his company.

Coffe Cafe Industry- Barista vs Cafe Coffee Day Essays

Coffe Cafe Industry- Barista vs Cafe Coffee Day Essays Coffe Cafe Industry- Barista vs Cafe Coffee Day Essay Coffe Cafe Industry- Barista vs Cafe Coffee Day Essay Scoop of Ice Cream ,Flavored Syrups ,Cold coffee, Iced Eskimo ,Arabian Heights ,Tropical Temptation, Tropical Iceberg ,Coffee on rocksMochachillo, Cappachillo,Vegan shake, Mango Frappe, Pineapple Frappe, Strawberry Frappe. At the third level, CCD while offering their product maintain its quality, (quality beans, hygiene drinks), service, taste etc. For service, It is always their endeavor that their employees grow to be skillful and competent mangers. Towards this ends, each of them is exposed to some specialized training programs in the areas of Food Beverages, Coffee, Customer service and Managerial skills They do a series of taste tests before the product is launched. They also adopt changes after the launch through a series of feedbacks. Since cafes are owned by them, they can do these dipstick studies at any time. For example, when they were launching a spinach sandwich, consumers said that they would prefer a spinach-cottage cheese combo and they improvised to deliver what the customers wanted. In order to promote Sugar Free, CCD launched a â€Å"Low calorie menu† in association with the former for the calorie conscious. Customers can also have an even more relaxed cafe experience by leisurely browsing through an interesting selection of books and periodicals while sipping their favorite coffee. At fourth level, the various formats (music-cafes, lounges, highway points, etc) adopted by CCD would give ample scope of recreation and entertainment to the consumers. At the fifth level stands the potential product, which encompasses all the possible augmentation and transformation the product or offering might undergoing future. A time would come when the cafe will eventually become a community hub, with even cafes such as pop music lovers cafes, an intellectuals-only cafe, and maybe even a communists cafe coming up soon. CONSISTENCY Consistency is often called Key to Branding, especially so in the franchising model that CCD follows wherein, with the purchase of franchising the brand CCD is also bought. To keep up with the brand image and consistency the daily operations are not handed over to the franchisee but kept with the company which indulges trained and efficient workforce in keeping with the set standards. The promotional activities (branding, marketing, and promotions) are also looked after by Amalgamated Bean Coffee Trading Co. Ltd. (ABC), owners of CCD. Quality control is another important factor in consistency, as the saying goes, â€Å"Nothing kills a product quicker than great marketing†. . This hurdle of standardizing the coffee being served has been overcome by installation of exclusive coffee vending machines, which have a pre-set mechanism to make coffee; just the coffee beans, milk and water needs to be added to a certain level which is again monitored by the machine. LEVERAGE On Price-being the cheapest organized cafe chain in India, gave a relative pricing leverage to CCD, which hit really well with the price conscious Indian consumers. Cafe Coffee Days vending machines have a special niche in the market compared to competitors because Cafe Coffee Day machines offer filter coffee unlike the instant coffee offered by competitors brands. Through in-house sourcing of coffee beans, they have leveraged on raw material procurement cost while brand expansion on foreign shores has helped the company in leveraging on the sky rocketing real estates’ prices in Indian metros. At the same time, its recent co-branding with Cadbury’s has helped leveraging on resources further. For many teenagers CCD has become an important part of their lives. They see it as an extension of their own personality and even when they grow older they would keep revisiting it to relive some of their cherished memories (it pays to catch them young! ); thereby leveraging on its association with youth. CCD team has made a commendable effort in leveraging the brand potential and the retail opportunity by introducing many brand extensions like mint, cookies, t-shirts, coffee mugs, etc. nd they even pioneered innovative concepts like jukebox and newsletter which were quite a hit among the youth. Cafe Coffee Day does not believe in mass media promotions. But they are involved in all the areas of serious consumer passion. Though CCD was the first to enter the coffee retailing business in India, it failed to leverage on the first mover advantage in terms of increasing the number of outlets. By 2002, Barista which entered the market in 2000 had 105 branches. CCD had only 50 branches. However, the situation has reversed in the current scenario. According to company sources, the reason for its slow growth was the time taken to complete the back-end operations of its retail outlets. INTEGRATION CCD has integrated all the components of the marketing mix for the overall enhancement of the experience offered to the customer. They have used the promotional strategy to their utmost advantage. First and foremost they have used it as a profit center and they have focused on co-branding thereby leveraging on the image and the brand of the cooperating company to their advantage and for roping in new customers who might not have otherwise visited had it not been for the promotional co-branding. They have used the loyalty scheme as a CRM tool for maximum customer retention. By leveraging on the place they reduce the energy cost and the psychological cost for the consumer thereby increasing the value delivered. By effectively blending the marketing mix they have created a strong brand equity for themselves. BARISTA VS CAFE COFFEE DAY – A COMPARATIVE STUDY Barista has experienced frequent changes in the management while CCD has not gone through any such second order changes in the management structure. The crowd coming into Barista can be divided into the corporate set (forming largest share), retired persons and senior citizens, families and college goers. On the same hand, CCD mainly targets the age group of 16-30 years. CCD has huge expansion plans to foray into the cities and towns in the country. It is planning to increase the number of outlets to 700 by the end of this year. The number of outlets of CCD is 435 compared to 160 outlets of Barista. Barista has not yet planned to go for huge expansion because of high real estate prices restricting them to a few outlets and focusing on the upper middle and higher income group. For example it has come up with new concepts of Barista Creme and Barista Espresso targeting the niche segment of true coffee lovers and offering a wider range of food and beverages, apart from luxurious comfort which will help them to increase the revenue contribution from food. CCD makes use of its own brand of coffee beans while Barista uses beans that are imported and roasted abroad. CCD has different private caterers in each city while Barista has a national caterer for the eateries available in each of their outlets. CCD generates revenue by having advertisements and promotion posters in their outlets while Barista does not do so. CCD has forayed into aviation hospitality, and the synergy with the low-cost airlines (SpiceJet) makes perfect sense for both parties involved. Barista on the other hand sco uts for premium tie-ups with MNCs (operating their cafeterias). Ambience and the settings (interiors) are contrasting for CCD and Barista. While the former is more relaxed and minimal, being pleasing at the same time; the latter has a more formal setting. As the two cafe houses target different set of consumers, the same is reflected in their pricing strategies and the tie-up partners they choose to associate with. CCD has a more reactive approach towards competition, as it opens an outlet wherever Barista does, hoping to lure Barista’s customers with a cheaper menu which has proven to be quite successful for CCD. REFERENCES retailindustry. com cafecoffeeday. com indiantelevision. com coffeeresearch. org indiacoffee. org barista. co. in thehindubusinessline. com/catalyst/2003/10/30/11hdline. htm brandintegrity. com/brandintegrityhomepage tatainvestment. com/0_media/news/media/index. htm coopdevelopmentcenter. coop/fairtrade/coffeecri