Managing Marketing Performance - Essay Example

? Marketing Mix Management SIM Question a) Star Living Mall is one of the renowned furniture stores in Singapore. Kenny Koh is the current managing director of the Mall. The store functions as a retail outlet that provides an array of comprehensive goods and services in one location. It is part of the Star Corporate Group, a company with 28 year history of manufacturing, retailing and exporting furniture. The Group was launched in 1981 and has factories on China, Dongguan, Johor and Malaysia. It has more than 44 retail stores in different countries, exporting to over 45 countries all over the world. The Star Furniture group has been able to establish an international presence with success, operating in countries such as Taiwan. The Star Living Mall is a retailer of the products manufactured by Star Furniture (Star Living, 2011). The Star Furniture group has created a unique shopping mall by making the Star Living Mall because of the one-stop furniture that it provides and the range of brands that it houses. The Mall not only specializes in furniture but also provides related services such as furnishing. The clientele of the Mall is primarily based in Singapore. There are four main branches of the Mall in Singapore, selling furniture ranging from that of living room and dining room to bedroom furniture. Moreover the Mall also showcases the four main retail brands of the Star Corporate Group including Mondi Lifestyle, Star Furniture and Zen Tradition (Get Singapore, 2011). Lucano is regarded as the high-end collection of the Star Furniture and has been able to establish itself as a unique brand in the country. The production of the Star Furniture is such that new products are brought in the market every four months. This helps to keep the brands fresh and up-to-date. Besides the four main brands that the Mall features, it also offers a store-in-store boutique that houses a number of brands specialising in the mattresses and beddings. This boutique, known as BEDz Store, along with the other brands featured, offers the customers a complete and comprehensive shopping practice (Star Living, 2011). The target market of the Mall is mostly Singaporeans. The myriad of brands that the Mall displays caters to a large segment of the population due to the fact that the products displayed have different price ranges. This makes the products affordable for the lesser income group. The customers can choose the products that meet their budgets and lifestyles (Get Singapore, 2011). The four brands that the Mall has cater to the four individual market segments that the brands have created in the years since their launch. Moreover the Mall promotes the brand image that the products are both stylish and functional. The target market of the Star Furniture group is the mass market of Singapore and Taiwan (Star Living, 2011). Question 1 (b) The Brand Asset Valuator (BAV) model is an important means of investigating the stature of a brand. The model was developed by Young & Rubicam in order to analyze the value of a brand by looking into the strengths and weaknesses of the brand. The model helps to measure both the stature of the brand as well as its durability. The underlying principle in the model is that these two components are able to draft an image of the brand equity while identifying problems and providing solutions (Iane, King & Russell, 2008). The model assumes that the brands are composed of a progression of four main consumer trends: differentiation, relevance, esteem and knowledge. Differentiation and relevance combine together to give rise to brand strength whereas esteem and knowledge are representative of the brand stature. Therefore the model helps to compare brand strength with its stature. The brand stature shows the current strength of the brand; on the other hand, brand strength shows the capacity of the brand to progress and grow. When analyzing the Star Living Mall, by the Star Furniture group, one has to take into consideration these four factors to establish brand equity. Differentiation entails the ability of the brand to be distinguished from other competitors in the market. This means that the brand has a unique image which helps to develop its own niche in the market. Moreover the brand needs to be able to make products that they promise, thereby providing a guarantee for that they actually provide what they promise (Meek, Meek, Palmer & Parkinson, 2007). In this respect, the Star Living Mall has been able to differentiate itself from other brands in the market. The Star Furniture provides a guarantee for the quality that the brand pledges to deliver. This helps to establish the value of the brand since it delivers what it promises. Moreover the brands that the Star Living Mall provides are unique creations of the Star Furniture group and have, over the period of time, developed their unique customer segments. The products are designed keeping in consideration two chief factors: the tastes of the people and affordability of the products. As a result, the products are both viable and provide the customers satisfaction in terms of the worth of the product. This helps to certify that the products are preferred by the customers and are identified as unique, giving rise to the essence of the brand. The second factor in the BAV model, relevance, encompasses the importance of the brand to the customers that it caters to. The relevance of the brand is an indicator of its usage and provides a linkage between the brand and the customers. Many marketers regard the household penetration of the brand as a measure of its relevance (Meek, Meek, Palmer & Parkinson, 2007). Iane, King amd Russell (2008) are of the perspective that relevance can be measured by the 5 Ps of marketing which are linked to sales. The marketing mix allows the producer to combine the Ps in order to generate an organized activity focused on consumer satisfaction (Harris, Botten & McColl, 2010). Taking the first P, the products being offered are relevant to the brand image of the Star Living Mall. The Mall entails the image of providing one-stop furniture and the household accessories and furniture being sold at the Mall attests to the relevance of the brand to the products. The place of distribution for Star Living Mall is the branches of the Mall on the island, selling products to the locals and providing them order processing and other delivery services. The Mall promotes its products by advertisements and media selection. Furniture sales are advertised at the website of the Mall and in newspapers. The price at which the products are charged is representative of flexibility in the profit margins, with some products being priced low in order to attract the lesser income group. The people aspect of the Mall depicts good communication and teamwork amongst the employees. The Mall has also been able to accommodate employees during the recession of the past couple of years by reducing the pays rather than laying off employees (Spring News, 2010). This has also been supported by the employees and shows a tradition of a loyal workforce. Esteem, forming the third component of the BAV model, relates to the notion of how well the consumer perceptions are met as well as the respect and regard being given to the brand (Iane, King & Russell, 2008). Esteem depends on two elements i.e. popularity and quality (Meek, Meek, Palmer & Parkinson, 2007). The Star Living Mall is able to attain these two elements by maintaining the high levels of quality of the products. This is done by a process of constant innovation, as the managing director Kenny Koh asserts. Moreover the involvement of the Star Furniture Group in activities that promote CSR also help to create a good image for the company. One such initiative, the Star HomeTouch, has also won the PRISM Awards 2010 (Star Furniture Group, 2010). The brand also delivers the promises that it provides, as representative by the fact that the Group has won several awards for its enterprise achievements in the country (Star Living, 2011). Knowledge includes the notion of developing consumer awareness regarding the brand and their perception regarding its identity. For a brand, the awareness that consumers have regarding it is an important measure of their intimacy towards it. It has been recognized that knowledge about the brand is achieved by developing awareness about the brand regarding its values and identity (Meek, Meek, Palmer & Parkinson, 2007). For the Star Living Mall, awareness about the brand has been increased by running an attractive website as well as through advertisements. The website of the Star Furniture Group sheds light into aspects of corporate business such as CSR. This also serves to communicate the values and identity of the brand. The recognition and awards that the Star Furniture Group has achieved shows that the brand is committed to quality and CSR. Thus, strong brand strength, as well as a strong brand stature, gives rise to the conclusion that the brand has a strong current strength and has the potential to grow as well. Question 2 The relevance of the brand is achieved by a combination of factors particularly the Ps of the marketing mix. Discussing the product, pricing and promotions of the brand in the current local market provides insight into how the brand makes use of the concepts of the marketing mix. The product refers to different traits such as the physical makeup, how the product is different from other brands, and its uses. The products of the Star Living Mall are differentiated from other competitors due to four brands i.e. Zen Tradition, Mondi Lifestyle, Star Furniture and Lucano. Each of the brands is representative of a signature design concept and caters to the individual consumer segments that have developed for each of the brands. The brands help to generate an appeal for the products, which makes them different from other brands’. The BEDz Store is also a unique concept that provides store-to-store boutique and helps to differentiate the products of Star Living. Moreover, the products are both stylish and viable, providing a combination of tradition and modern simplicity. The brands offer products that cater to the quality as well as the affordability range of the customers, providing customer satisfaction. The designs of the products are classy and stylish, as depicted by the fact that the products have earned international repute and awards. For example the Zen Nero collection won three awards at the International Furniture Fair with the Kelda bedroom design getting both the Gold Award and Creative Award (Star News, 2010). The pricing strategy of the Mall is not competitive pricing. This is because the products of brands such as the Zen Tradition are not essentially in the cheap category. This means that the Mall charges a reasonable amount of profitable margin on the goods over and above the cost of production. Cost-plus pricing is regarding as a simple and easy method of pricing products, and is followed by a number of companies. However a drawback of using this method is that the product may be priced at a higher than the threshold price the people are satisfied with. If the product is priced too high, people do not regard the monetary investment worth the product and opt for other brands. However in the case of Star Living Mall, due to the different price ranges of the products, the Mall is able to cater to a number of people with varying budgets. In the weekly promotion offers of the Mall, the Mall showcases a range of products starting off from a minimal value, with the Star Buy signifying the lowest priced commodity available in that product type. The prices of the goods are not fixed and there are changes based on factors such as seasonability. Moreover the season sales also lower the prices of the goods, making them affordable to a greater segment of the population. Also, the brand image and brand appeal allows the Mall to remain competitive despite the fact that some goods are priced high. The prices are also made more appealing by offers such as a discounted price for a bed if it is bought this weekend etc. The Star Living Mall has various mediums for communicating the special characteristics of the products and their advantages. One common way of promotion is via advertising. The Star Furniture group broadcast a number of television ads that generate an appeal for the brand. The ads are witty and humorous; yet they aim to communicate the identity and the value of the brand. Also, the sales of the Mall are promoted by individual advertising by the brands featured in the Mall such as the Zen Tradition. In season sales, the brand also advertises discounted products and communicates to the customers the prices and features of the products. The brands are advertised on the Internet as well. Another way of communicating brand awareness is via the official website of the Star Living Mall. The sales are also featured at blogs and advertised on the website. The official Star Living website has a section named Promotion. The section showcases a weekly promotion offer at the Mall, with certain products being displayed at discounted rates. In this way the Mall is able to generate brand awareness and to attract potential customers. Thus, in conclusion, the Star Mall is able to put together a marketing mix which helps the brand to establish its value. The price of the products, although ranging from high priced to low priced goods, offsets itself by the quality and style of the products. The products are differentiated by competitors’ products for their unique, award-winning designs. The promotion of the products buttresses consumption and help to attract more consumers. Question 3 Channel design decisions form an integral component of successful marketing. Using the wrong channels makes a company lose sales growth and decrease its ability to penetrate markets and gain a significant customer share. Most of the companies in the world are carrying out company-centred approaches to design their channel designs. However, according to Brock (1999), the most effective channel design is one in which the channel begins with the customer. For the Star Living Mall, the country to be chosen for international expansion is India. In order to establish its presence across the borders, the Mall needs to make critical channel design decisions. The primary decision that needs to be taken is with respect to the customer. The channel design should be undertaken by first questioning who the customers of the targeted products are. Comparison needs to be made with the existing customers in the local market and potential customers in India. Decisions need to be taken regarding the customer segmentation, the markets the Mall has to break into, the demands of the customers and their interest in the goods offered. Thereby, the major channel design decision encompasses an analysis of the needs of the customers. Moreover, in the context of these needs, the marketer needs to address the service output levels the customer expects. This entails the lot size, waiting and delivery time, spatial convenience, product variety and service backup (Kotler, Keller, Koshy & Jha, 2009). The second channel decision would include the determination of the channel objectives and identification of the channel constraints. The channel objectives should be drafted out in the context of the service output levels expected by the customers. For the Star Living Mall, the marketer needs to determine the existing market for furniture in India and to find out the competition. If the competition is high, the functional tasks can be reorganized to bring down the channel costs and yet be able to deliver the service output. For this purpose, the marketer needs to investigate in the various customer segments in India and the service output levels expected by the customers of each segment. Thereby, implementing an effective channel design decision will involve the selection of certain market segments and providing the most effective channel to serve them (Kotler, Keller, Koshy & Jha, 2009). Another important channel design the Star Living Mall has to take involves the determination of the most effective channel from a range of channels. For the Star Furniture, the channel for reaching out to the customers is the establishment of a mall. Increasingly companies are starting to deploy more than one channel for reaching out to the customers. Therefore, the internet can also be used to market and sell goods. In India, online shopping has increased dramatically in the past few years. The rise in numbers has not been seen for customers only but also for online sellers. There is potential for using the internet as a channel since online shopping is becoming a booming business in the country, yielding Indian Rs. 5000 crore per year (Flower 16, 2009). The marketer must also be able to make channel identity decisions. This refers to the concept of “how many of each type of channel member to include in the channel” (Coughlan, Anderson, Stern, El-Ansary, Natarajan, 2009). For the Star Living Mall, the channel design decision would include how many retail outlets are to be opened in the country. This is dependent on two main factors: the efficiency and implementation. As a result, opting for a high intensity decision would mean that the products are easily available and reach to all targeted customers. On the other hand, such a decision may give rise to problems with the retailers who are selling furniture too (Coughlan, Anderson, Stern, El-Ansary & Natarajan, 2009). Reference List Brock, D. (1999). Channel Design Starts With The Customer, Creating High Performance Sales Channels. Retrieved from http://www.excellenc.com/Channel_Design.htm Coughlan, A. T., Anderson, E., Stern, L. W., El-Ansary, A. I., & Natarajan, R. C. (2009). Marketing Channels. New Delhi: Pearson Education India. Flower 16. (2009). Online Shopping trends in India. Retrieved from http://hubpages.com/hub/Online-Shopping-trends-in-India Get Singapore. (2011). Star Living Mall. Retrieved from http://www.getsingapore.sg/brands/star-living-mall/ Harris, D. R., Botten, N., & McColl, J. (2010). CIM Coursebook Marketing for Stakeholders. Oxford: Butterworth-Heinemann. Iane, W. R., King, K. W., & Russell, J. T. (2008). Kleppner'S Advertising Procedure, 16/E. New Delhi: Pearson Education India. Kotler, P., Keller, K. L., Koshy, A., & Jha, M. (2009). Marketing – Management. New Delhi: Pearson Education India. Meek, H., Meek, R., Palmer, R., & Parkinson, L. (2007). Managing marketing performance 2007-2008. Oxford: Butterworth-Heinemann. Spring News. (2010). When the going gets tough, the tough gets going. Retrieved from http://apps.spring.gov.sg/SPRINGnews/2010_01/index2.html Star Furniture Group. (2010). Corporate Social Responsibility. Retrieved from http://www.starfurn.com/ Star Living. (2011). Star Living. Retrieved from http://www.starliving.com.sg/ Star News. (2011). Star Living eNews April 2011 Issue # 17. Retrieved from http://www.starfurn.com/downloads/star_news/Enews-April.pdf Read More