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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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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.
- 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.
- 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.
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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.
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.
5.2. 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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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)
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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
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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.
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