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BUMKT 6923 STRATEGIC MARKETING PLAN

UDAY PERAM 30080628

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BUMKT 6923 STRATEGIC MARKETING PLAN
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1. Introduction:

In my report, I developed strategic marketing plan for the company Ajel technologies
which is located in India. I developed strategic marketing plan for the domestic
recruitment process of the company, where they provide the technical resources for the
client company’s and also in my report I stated the business mission, external and internal
business environment, strategic objectives, key success factors and related business
activities using swot analysis, the report also consists of strategic marketing mix,
recommendations to improve the company’s performance and methods of controlling
them for a strategic period of three to five years.
1.1 Company Overview:
Ajel Company was founded by srinivasa Arikatla. Ajel Technologies was started in 2000
and their vision was so simple, that they set themselves to be the partner of choice for
discriminating clients of IT services. It has successfully assisted major firms with their
CRM, ERP, QA, Business Integration, Internet Development, Applications Management,
and Product Development programs. It has since consolidated its focus in vertical
industries and forged an IT services leadership position. Ajel was also ISO 9001-2000
certified company and also reputed as it got multinational and fortune 200 customers, and
it is renowned for its continuous growth and development in its planning and
development.
1.2 Company Mission:
The Ajel company’s mission is to produce and deliver innovative and high quality human
resources to its clients who are reliable and perform according to their requirement to
meet the future needs of target market and also to enter the international human
recruitment consultant market and book a place for it self in the global competition.. Ajel
company as of now is trying to cruise in to top slot branch of leading domestic
consultancies who provide human resources for IT based multi-national companies and
provide high quality and gain the loyalty of its clients to meet the needs of target clients
in terms of quick and qualitative delivery and as starter, to become consultant leader in
Indian market.

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2. Situation Analysis:
Situation analysis is conducted to examine the company’s strategic performance and the
required modifications in the strategic planning. The company, after evaluating and
getting the required self evaluated information, relates this information to situational
analysis report to make the required amendments for a proper strategy or improve the
existing strategy.
2.1 External Environment:
The external factors of an organisation are very important for any company’s success,
because these are as important as internal environmental factors like resources and
employees. External environmental factors are like impact of the society, political, legal,
economic and technical factors. Opponents and competitors are also considered as
external environmental factors.

2.1.1 Pest analysis: This analyses how external forces create opportunities and threat to
the organization.
Political:
Political factors include government regulations and define both formal and informal
rules under which the firm must operate. That too for a country like India, all the foreign
investors eyes are there on India, Due to political conditions in India, unintentional
attraction is a common thing. (Cravens & Piercy, 2006). Indian political system regards
foreign consultancies as highly technical and trusts worthy in paying off the taxes with
out any mal function, where domestic consultancies in India, try to pay minimum taxes
by false records. So political environment is a bit favourable to Ajel consultancies
department as they got their main branch at Edison, New Jersey.
Legal:
Any company which wants to enter in to consultancies business in India has to be
approved by Foreign Direct Investment Investor (FDI) Foreign Direct Investment
Investor (FDI) (Cravens & Piercy, 2006) Consultant and things would be much easier to
get the approval from the ministries if the owner of the organization is from the same
country, which happened in case of Ajel, as the managing director is Indian and also they

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got some globally renowned clients made it easy, which other wise, would have
consumed more quality time and money. And the major advantage in India is that there is
no need to worry about the patents, i.e. intellectual rights.
Social Environment:
In India there are more IT based companies and the number keeps on increasing every
day and each of them require different skilled resources in this fast changing tech savvy
IT field, so there’s ample opportunity for Ajel technologies to prove themselves and set
high standards in their planning, i.e. planning strategically to get hold of their target
market(Cravens & Piercy, 2006) . Present situation of ajel proves it. So, by analysing the
present trend of the country’s IT field requirement and their necessity for consultancies
for hiring required resources from social environment acting as boost to Ajel company.
Economic:
In order to boost their economy Indian government has opened doors for foreign
investors to invest in the country. The government has introduced many policies and tax
reduction programs to attract foreign investors. These policies made foreign investors to
invest in the India which in turn help the nation by economic increase. (Cravens &
Piercy, 2006)
Technology:
This environment is about application of tools, methods and techniques to improve
production and processes. Nothing is as obvious as technology, whether in households or
Businesses. The intensity and type of technology use varies depending on the type of
Economic activities an enterprise is involved in. (Cravens & Piercy, 2006).
There will be no point of analysing every single technology available in all industries and
their applications. For any product or technology there is a finite life, it may be measured
in decades or even centuries but eventually it gets old and something comes along to
replace it. In the same way, technological requirements from the Ajel keeps changing
from one client to other and it is up to Ajel to keep track and updating their staff and
training them to know about the latest developments and the requirements it may bring
from the real clients.
Extracts from the book by Utterback, J., Mastering the dynamics of innovation. 1994,
Boston, MA

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2.1.2 Market Analysis determining the attractiveness of the markets and its subs, and
also threats and opportunities are used as information’s for strategy changes are the two
main goals of any market analysis. Here in the IT based software company’s there is a
huge chance of requirement in every alternative months because the demands and
requirements of the IT softwares changes that fast, that too for multi national company’s.
The market of consultancies in India is mature with four or five established indian
competitors competing against each other and looking at the positive side of this, there
are no other company’s which also had a hold and experience and knowledge of
performing for many multi-nations at a time, at international level, though of a medium
range. So Ajel to make a fast move, and also as it got the finances running good, it can
acquire or joint venture with any existing company.
2.1.3 Competitors Analysis:
This gives the scope of performance of the competitors , their scoring areas of
performance, how they sell their skills to clients, their concentrated skill searches,
etc. competitors are Reliance Quality Consultants , ABC Consultants Pt. Ltd. ,
Ambrosia Synergising Methods.
Reliance Quality Consultants: It is a formidable competitor among consultancies in
India, the brand name used for this is usually its certifications regarding the
quality management like ISO 9000:14000,OHAS 18000,HACCP certifications
and its service charge from the resource and client will be fixed for percentage for
6 months.
ABC consultancies Pt. Ltd: This Consultant Company of India is a very good in the
field of recruitment services. It is a high level executive selection and search
group and a preferred recruitment organization by the clients in India. Its services
price is a direct one time settlement kind from the client.
Ambrosia Synergising Methods: Like Ajel even this company has got its branch in New
Jersey and also at London, which Ajel doesn’t. And this is one among the leading
HR consulting companies in India. Reputed as Fast growing, its service charges
are one time settlement offer from the client and monthly bases, i.e. percentage
commission for some months from the resources salary.

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2.1.4 Target Customers:


Ajel Company’s target market for the consultancies in India are mostly in the cities, i.e.
urban areas because these areas are tech savvy and got many potential IT
company’s and promised to gain more and more company’s in the future and the
requirement will always be there irrespective of the trend.
2.1.5 Porters 5 Forces:
Porter 5 forces are a useful tool to estimate the industry profitability and helps
understands assess the position of a company in regards to its competitors and
customers. The 5 forces are
 Competition among existing firms
 Threat of potential new entrants
 Threat from substitute products
 Bargaining power of suppliers
 Bargaining power of Customers (Aaker, 2007)

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The competition among the existing firms:


The competition among the existing players in the water purifier industry in India is
intensive, with three to five established firms ( Eureka Forbes, Ion Exchange and Singer).
And they are fighting for the market share. The case highlights that the firms are of same
size and produces similar products. Due to bad water conditions there is growing demand
for differentiated products with are high in quality and performance. (Cravens & Piercy,
2006). Ajel consultancy got the required talent and qualitative approach for the
proceedings to compete with others, but its should also be able to sustain it for a long
time with new strategy planning’s against competitors to grow faster and survive.
Threat of new entrants:
The threat of new entrant to the consultancies in India is very high because of
government regulations. The governments of India are inviting foreign investor to invest
in India to boost their economy and due to high requirement from IT sector conditions in
India. This is an advantage for Ajel as it also got a foreign branch and is also trying to go
global.
Threat of substitute products:
The substitute products of consultancies are not that attractive as the other way is that IT
company’s should themselves spend time on finding the resources and is hugely costing
the company’s, they always looks up to consultancies, hence pose minimal threat. With
the rising demand for new skilled resources in market with good quality and high
performance criteria, it is a good opportunity to the Ajel company products as they are
also high on quality and performance with innovative search criteria to do the job
quicker.
Bargaining power of suppliers:
The bargaining power of suppliers i.e. who provide the resources info and access to their
resumes is high because Ajel is new to the market, suppliers will charge more for info
containing resources skill set and experience. So, it takes a bit of time for Ajel to have its
presence felt in the market.
Bargaining power of buyers:

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The bargaining power of buyers is high because many clients, i.e. IT company’s in India
are in need of improved efficiency and quality of work in the human resource provided..
They are looking for the multi skilled that are highly technological, with quality, good
performance which will solve their problem which they are not getting from existing
firms. So, Ajel company should develop strategies according to the customers desires.
2.1.6 Key success Factor
A key success factor is any competitive property or competence that is required for any
company to win in the marketplace. That may be a point of parity with the Company’s
competitors or a sustainable point of advantage.
Present success factor:
The key success factor of Ajel company is its superior resource provision in terms good
quality, high performance and rare skill sets are also bought for the clients and its
innovative technology in searching the clients. The company is good and strong as far as
finances are concerned and also got the potential to place another branch as soon as it got
the required name and fame among the competitive market. Use of globally approved
managerial activities is also fetching for the company. At last the use of a great
distribution channel by the use of different types of skill sets and resource handling with
good negotiations is also a good success factor.

Future success factor:


For future of the Company, management have to concentrate to develop Company’s
strength on below said factors as critical to increase market share.

- Keep on updated with latest trends in IT and new IT skill sets launched in to
market, which will be the future requirement of customers.

- Concentrate on direct marketing rather to do business only through mediators.

- To use or improve present search version or latest searching criteria’s to get hold
of rare resources with rare skill sets, before the competitors do.

- To gain market share in premium brands.

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2.2 Internal Environment


2.2.1 Current Strategy
Present strategy of Ajel company is Differentiation Strategy – the resource provision in
quick time and quality work exports regarded Ajel as company's talent rate as superior.
The company mainly focuses to produce differentiated skill sets, i.e. python language in
JAVA which is rare and which has superior quality, with high performance to complete
the coding and also with the combination of new technologies and higher service prices.
They are mainly targeting the Multi national level IT clients who are ready to pay higher
prices for providing these kind of rare skill set. (Cravens & Piercy, 2006)
2.2.2 Marketing Mix
Kotler ,2004 says “Marketing mix is the set of marketing tools that the firm uses to
pursue its marketing objectives in the target market”.
Product
The skill set from a resource provided by Ajel Company in India is purely based on
software skills and stores the resources information in the server; server contains loads
and loads of resumes, which are the most useful products for Ajel. This server is My Sql
a combination of cheap and free server in usage. The server is free of charge and can
accept a bulk load. The product design is superior, with higher performance and quality,
longer warranty. These will enhance the clients in India to get a immediate reply from
Ajel as soon as requirement is placed.
Price
The advantage of Ajel Company is its pricing strategy. Compared to many of the
competitors its price is affordable, high quality and services. The basic pricing for the
provision of resource depends on skill set provided, for example if a dot net programmer
is provided to a client, it will be 6 months salary (the same package decided for the
resource) to Ajel.
Promotion
The target clients are bigger company’s and requirement is more and always looking for
same set of skilled resources in bulk and also pay good for a rare skill. So, Ajel company
should be promoting its services by advertising in local televisions in Etv, MAA tv, Zee
TV and DD metro channels in the form of television commercials and also advertising

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the services in magazines and newspapers. It is now using the flyers to reach the
resources which is another good promotion technique
Place
The marketer uses distribution channels to display or deliver the physical product or
service(s) to the buyer or user (Kotler,2002). Ajel consultancy used negotiations and
extreme search activities through internet as a medium to bring the resource to them and
from there to the end user, i.e. the client.

2.2.3 Resource Analysis


The resource analysis is very important that a firm's internal environment, in terms of its
resources and competencies, is equally critical to the determination of strategic action as
is the external environment.
As a potential competitor Ajel consultancy may require a skill up gradation training
center, so that it can train the resource with any lackings in the skill sets required. The
cost of training can also be included in the package provided to the resource, there by
increasing the profit in a closure. The core competencies of the Ajel consultancy
department high quality, loyalty of the clients.
2.2.4 Strategic Options
If a company decides to enter and establish as superior in the international market there
are many ways and options. The options may include the quality, value, innovation, cost,
target segments and in providing resources. When the consultancy decides to enter into a
new market it is important that the management of the company should choose an entry
strategy and they should carefully choose a strategy to position its brand in the market
(Cravens & Piercy, 2006). The Ajel consultancy’s strategic options are high quality, high
end searching mechanism, and with unique properties to compare with competitors. If the
consultancy enters the market with above mentioned options it will successful in
satisfying the target market/customers.
(Cravens & Piercy, 2006).

3. SWOT Analysis
SWOT analysis is a powerful and simple tool used for internal analysis. The
organizations strengths, weakness, opportunities and threats constitute SWOT analysis.
The main purpose of SWOT analysis is to identify strategies that support, match

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companies resources and capabilities to the demand of the environment in which the
company operates. (Hill,2004).

3.1 Strengths
The strength of Ajel consultancy is its quick time work with qualitative result and its
ability to give resources with skill sets which are rare. The final delivery to client is of
high quality and with combination of effectiveness and efficiency is superior to the
competitors. As the multi- national company’s are favourable to qualitative resources
available to them in quick period with all their requirements in tact, it is the biggest
strength to Ajel consultancy.
3.2 Weaknesses
The weakness of the company is its price because the competitors price are lower than
the Ajel consultancy’s and the other weakness is it is concentrated on multi nationals
leaving behind some potential and strong local IT company’s, where the competitors are
cashing up on.
3.3 Opportunities
As opportunities are concerned, IT company’s are in need of multi- skilled resources who
can do multi- programming like coding and also automated testing for a product in their
projects, according to the management of Ajel, is in favour of foreign connected
consultancies and pay higher price for resource provided as long as they satisfy their
requirements.

3.4 Threats
Major threats for the Ajel are the competitors and their strategies. The competitors are
well established in the market and some competitors brand are considered as national,
well known and respected brand names in India. As I mentioned above, many potential
local company’s incline towards these competitor consultancy’s as they are well known
to them and believe them to be loyal to them in the long run.

4. Competitive Advantage
The organization's sustainable competitive advantage depends on sources and its

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capabilities. Thus, core competence is an important source of sustained competitive
advantage for corporate success and greater is its economic return. Many factors
influence organizations to gain competitive. As far as Ajel is concerned, it is one of the
established consultancies in US in providing resources with skill sets that are rare. So, the
Ajel consultancy has a greater opportunity to have a high competitive edge among its
competitors, providing resources with skill sets that are rare. The core competencies of
Ajel consultancy is the resource provision differentiation, its abilities (high quality,
performance with efficiency), its world class marketing techniques, and reputation of the
company. In addition to these, Ajel consultancy can gain competitive advantage by
concentrating on the local potential IT companies as well along with the multi- nationals
which are locally available.

5.Strategic Thrust
Strategic thrusts are major competitive moves by an organization. Ajel’s strategic thrust
lies in innovation in its resource provisions and marketing techniques as well as its
growth strategy through brand awareness (12manage.com). Companies can follow
Porters Generic Strategies (1985) to be successful in the market place. Porter's Generic
Strategies (Porter, 1985, p.12). The Porter's strategies are Cost leadership,
Differentiation and Focus strategy.
Cost leadership: The competitors of Ajel are following Cost leader ship strategy. For
Ajel if it follows this strategy, it has to have a own training facility centre or should go
for partnership with other companies to get the help in finding the rare resources and
share its contacts for local potential IT sector at low price.
Differentiation Strategy: For Ajel, it is differentiation strategy. Ajel consultancy is
providing multi- skilled and rare human resources to its IT clients. the resource provision
in quick time and quality work exports regarded Ajel as company's talent rate as superior.
The company mainly focuses to produce differentiated skill sets, i.e. python language in
JAVA which is rare and which has superior quality, with high performance to complete
the coding and also with the combination of new technologies and higher service prices.
Focus Strategy: At this point of time it is not wise for Ajel company to follow focus
strategy. Because it target customers are the wealthier who are ready to pay more price

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for good quality products. Instead of focusing on all segment customers it should follow
differentiated strategy.
Appropriate Strategy: The appropriate strategy for Ajel consultancy is differentiation
strategy. Ajel customers are mostly multi nationals and are ready to pay higher price for
any are set of skills from a resource if they are in need of one. The advantage for Ajel
consultancies is its all competitors are following cost leadership strategy.

5.1 Recommended Strategy – medium term (3-5 years)


The recommended strategy for Ajel consultancies for next 3-5 years in the market is
Focus strategy. By following their current strategy of differentiation, it cannot satisfy the
clients completely, it can only satisfy the clients of some multi national companies, that
too up some extent and the rest of the IT sector cannot cope up with the prices. In the
next five years it should follow Focus strategy by concentrating all areas along with
urban and small urban areas and the local potential IT company’s, who are of the greater
percentage in IT sector ,as well. Immediate results can be seen if the targeted market is
vast and should be in reach of the targeted people not just multi national sector among
them.

5.2. MARKETINGGOALS:

As set of attributes is a measure by which we come to know whether we can achieve the
goals, here we have generate some quantitatively stated goals. These Ajel consultancy
marketing goal is

• To increase the market share by developing new marketing strategies to reach the
target customers.

• To understand and respond to the clients new needs and preferences through
adjusting the resource offerings and developing new search criteria mechanisms
to achieve higher quality and efficiency.

To publicize using new promotional strategies to reach new target customers i.e.;
potential local IT companies and small urban.

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5.3 Product-Market investment Strategies


Product-Market strategy is the only tool useful to identify the growth opportunities. The
Ansoff Growth matrix is helpful to decide the organization their product and market
growth strategy. Ansoff’s matrix will help the business to grow depending on whether it
markets, new or existing products in new or existing markets. There are four main
categories for selection shown are market penetration, product development, market
development, diversification. To be successful and increase its market share Ajel
company has to concentrate and intensify the market research. After reaching the
saturation point in the market it has develop and expand its products into new regions.
Ajel consultancy and its competitors are focusing on urban areas. To sustain in the
competition Ajel should develop new strategies to its existing planning local base also
where clients increase and enhances its market share. (Cravens & Piercy, 2006)

6. Strategic Marketing Mix


The strategic marketing mix contains Product, distribution, price and promotion strategies
and combination of all this help us to develop positioning strategy. The objective is to
achieve favourable positioning while allocating financial, human, and production
resources to markets, customers, and products as effectively and efficiently as
possible(Cravens,2006). Ajel company can grow consistently if it develop a strategic
marketing mix to create to a brand image as well as increase it sales and market share for
next five years.

6.1 Target Market


A specific portion of buyers sharing common needs or attributes that the company
decides to serve – Target market (Kotler,2004). The target market of Ajel company is
urban areas. In India water purifier companies were targeting only urban area and no
manufacturer has targeted rural or small urban areas. The existing manufacturers are
concentrating only 10 – 15% of the entire Indian population and that to concentrating
only 2- 3 states. In the next five years, Ajel company should target outside the
metropolitan areas by using undifferentiated marketing strategy. The company should
develop the products that should satisfy all the consumers and should use mass

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distribution and mass advertising. By following this marketing strategy it will be
successful in all market segment and aims to give the product /brand a superior image in
the customers mind. (Cravens & Piercy, 2006)

6.2 Positioning Strategy


Several positioning strategies are followed by different consultancies. They position on
the basis of specific skills, the benefits they offer, and some companies position their
marketing against competitors or away from competitors. (Cravens & Piercy, 2006)
Positioning of Ajel consultancy is likely different. It has recognized several positioning
strategies like performance and requirement of the client, value of money/ low price,
assurance, convenience and quick delivery.

6.3 Marketing Mix


Product : This includes developing plans for finding the resources with rare set of skills,
managing programs for successful products and deciding what to do about problem
products for e.g. to reduce costs or to improve product. Ajel consultancy should develop
its own training facilities so that it can upgrade its human resources with the requirement
to provide high performance, quality , more features and attractive appearance according
to the clients preferences (low price/ product differentiation) and designs to all segments
of clients.
Price: Price also plays an important role in positioning a company in concerned
industry. Clients reaction to alternative prices, the cost of the human resource, the prices
of the competition and various legal and ethical factors establish the extent of flexibility
management has in setting prices. (Ref: Cravens W.D., 2006)
Ajel should follow skimming strategy. So that it can provide customers with superior
high performance and quality.
Promotion: Since there is heavy competition in the industry, Ajel consultancy should use
different promotional strategies to reach the clients and to acquire larger market share in
near future. It should go according to the trends like on line marketing for the multi
national company’s. It will get new customers by this promotion, and it should also

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understand the importance of television advertising and its benefits as it reaches larger
clients locally in short span.
Place: Ajel is doing business through mediators and distribution channels. But now it is
time for the consultancy to start to reach the clients locally, by itself and multi offices in
urban areas in order to reach its target customers.

7. Recommendations

I would recommend the following to Ajel company in order to be successful in future


- Company have to focus on direct marketing approach by approaching the local
clients by its own, where there is greater chance to sustain and place itself in the
local IT sector rather than just going after multi national companies. This will
give positive results as market share because now potential IT companies locally
are fast growing to expand globally to become MNC’s.
- Company have to concentrate on new searching mechanism, which helps them to
save time in searching for the right candidates and also should develop a data base
where they can dump all the previous info regarding the resources which are
already delivered. With these efforts Ajel can attain competitive advantage in the
coming two years. Then Company have to evaluate each year the benefits of this
strategy by observing what response it is receiving from the market and what are
the sales figures of new strategies compared to the old strategic planning. This can
be a part of product differentiation also.
- Company have to make portfolio analysis to see where Ajel stands in business
position in terms of market attractiveness with compare to other strategic business
units.
- Expansion of clients and winning their loyalty and making it public can keep the
client to themselves and helps in winning the confidence of other clients to
increase profits.

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8. Conclusion
I would like to conclude that, Ajel company should apply above mentioned goals of
strategic marketing plan for the coming 3-5 years and every year it should be evaluated
and necessary changes can be made in that depending on the trend and if the consultancy
concentrates on these goals, in the coming five years, Ajel will be surely benefited in
terms of market share and sales and can get competitive advantage.

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9. References
Aaker, D. (2007) Strategic Market Management, 8th ed., New YorkL: John Wiley &
Sons.
Cravens, D. W. & Piercy, N. F., (2006), Strategic Marketing, (8th Edition), New York:
McGraw-Hill.
Hill et. al (2004) Strategic Management an Integrated approach (2nd Australian Edition),
Qld: John Wiley & Sons
Kotler,P. (2002). Marketing, Management. (Millenium Edition),New Jersey, Prentice
Hall.
Kotler, P., Brown, L., Adam, S., Burton, S. & Armstrong, G., (2007), Marketing, (7th
Edition), Frenchs Forest: NSW, Prentice Hall.
http://www.12manage.com/methods_wiseman_strategic_thrusts.html Retrieved on 1 July

2010.

Porter, M. (1985), Competitive Advantage, the Free Press, NY.

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