Nature of Market Segments of the Syco Company - Essay Example

? Marketing (Insert your full (Insert the of your (Insert Overview of the company Syco was established in 2002. This was a trading name that Simco Ltd used. Currently, the company deals with film, television and global music. Its offices are based in Los Angeles and London. It is a joint venture that formed between Sony Music Entertainment and Simon Cowell. Syco television has produced “The X Factor” which has been on top in Europe and U.K (Cowell, 2013) Definition of Marketing The way different companies interact with their customers to come up with a relationship that may benefit both the customer and the company is termed as marketing. That is it’s an activity aimed at making the commodity available to the consumer and on the other hand, making a profit for the specified organization. It involves coming up with a product design that will be desirable to the consumer, promotion of the product to make it well known to the people and finally, coming up with a price to let the potential clients know about the product (Bellis, 2013). How Syco conforms to the definition in that:- It has established a good relationship with the film and music market making it an award winning company. By advertising in their television and internet, it makes new products known. And setting music and movie prices SWOT analysis (COGHILL, 2003) Strength It has a great team of marketers. Good appeal to the mass due to their expertise. X Factor won an Award hence became popular. It holds copyright for several films. It has international facilities that are of great quality. Weakness Limited to Europe and U.K market. Creativity in the music and film has gone down. Opportunity New media and digitalization. Increase in broadcasting. Rise in the regional media. Threats Cycle time for common movies and song has been declining. The costs of rights to own movies and songs have been rising. PEST analysis (COGHILL, 2003) Political Heavy taxation by the government in music and film industries. Change of government may also change the laws appertaining to music and film industry like copyrights. The government may also restrict a particular group/age of people who may be talented. Government can also promote music industry by providing relevant infrastructure. Economic The level of government spending increases reducing the amount of disposable income. Inflation has reduced the value of money Provision of job opportunities has been a challenge. Low level of disposable income for individual. Fall in exchange rates among different countries Social Some culture restricts certain type of music and movies due to pornographic content. Some movies are restricted to a certain age of people especially those who are adult. Technology More inventions have come up in the field of music and films. Infrastructure development due to innovation and inventions hence new equipment. SMART Objectives (Using SMART Objectives, 2012) By the end of 2014, the firm should make a 14% profit. It should be able explore new market in Middle East and Africa by the end of 2014 (Word count 500) Assignment 2 Market research Market The Syco Company has an established market for film, music and television. This is as a result of operating as a joint venture with several companies hence increasing their market share. It has set up a joint venture with Nigel Hall. This branch aims at looking for market niche in television production. In order to gain a wide coverage the manager is aiming at getting some of the qualified staff from London. Competition Competition in music television and film industry is actually on the rise. Several companies have emerged with increased film productivity. More regional televisions have also come up to target a specific group of people like the youth. Companies like Sony, Harry hills, Nigel Hall, Pudsey Collars. These companies have come up with unique talent that poses a stiff competition to Syco. Furthermore, they have also come up with more advanced entertainment closet. In response to this stiff competition, Syco has been able to form joint ventures with some of these companies making it remain viable in the market. Customers of the organization The consumers range from children, middle-aged and adults. The company has introduced several television programmes according to the age of its customer. This has also been exhibited in movies and music. Its customers are mainly located in London which forms the biggest market for syco. It has also some areas where it is prevalent like in England and United States of America. Marketing strategies Nature of Market Segments Due its large population, domestic wine cannot fully meet the demand for films and movies in Europe and UK in particular (Queensland Government, 27 march,2013). Potential market Critical factors that can hinder consumption of its products, these include poverty, age restriction and specific legal prohibition. Almost half of the population meets the minimum age of watching movies and film Market segmentation Syco Entertainment has been able to offer appropriate solutions to customers in the film industry. This is because the approach provides a cutting edge between individual marketing and mass marketing. Just like in the case of profit making organizations where a market is segmented according to specific needs, geographic location and purchasing power of customers, Syco Entertainment has used this strategy to segment UK and London to facilitate easy and effective provision of services to them. Segmentation This is a marketing strategy that is aimed at Segmenting, targeting and positioning the market to suit a particular product that is being offered by the organization. Segmenting: by segmenting the market according to certain specific needs like either movies, film or television services, Syco Entertainment has been able to offer appropriate solutions to customers in the film industry. This is because the approach provides a cutting edge between individual marketing and mass marketing. Just like in the case of profit making organizations where a market is segmented according to specific needs, geographic location and purchasing power of customers, Syco Entertainment has used this strategy to segment UK and London to facilitate easy and effective provision of services to them (Francis, 2013). Targeting: this is a strategy that allows an organization to prioritize the already segmented targets in the market in relation with service delivery. Prioritization enables the organization to align the segmented market with its capabilities as well as the core competencies. Market prioritization is also carried out basing on the market size, dynamic potential and the potential for the segmented market to grow. Syco Entertainment has embraced targeting by prioritizing the market needs. The targeted groups include the middle aged people and the adults since they are legally accepted to watch specific movies positioning: this strategy is used by organization especially when they are carrying out marketing mix development to carter for the segmented targets. For proper positioning will enable the organization to compete favourably in the market Marketing mix This is a marketing concept that emphasizes on the availability of the needed product in the market at the exact time that it is needed. The concept is sometimes referred to as the 4Ps. The 4Ps which stand for Product (Service), Place, Price and Promotion have been embraced wholly by most of the non-charitable organization. (Jessica Budds, 2001). It is, therefore, essential for an organization to come up with a product that is needed by the customers and at the same time deliver it to the specific market where it will face high demand(Jessica Budds, 2001) The product needs to be delivered to the market at the exact time that it is needed (Ejaz, 2009)This strategy has been used by Syco Entertainment to advance its goal of providing quality products and services to its customers. The four elements of the marketing mix that are commonly referred to as 4Ps have been embraced and adopted by Syco Entertainment in the following ways. Product/Service: it was found out that Syco Entertainment used some guiding questions on the marketing mix strategies which were specific and relevant with product/service strategy Syco Entertainment came up with the mechanism to provide quality and affordable movies and film services to the target market. In order, for Syco Entertainment to ensure that the services they were going to provide to the target market were to be acceptable and within its affordable cost, it had still to rely on basic information about the natives preferences (Jessica Budds, 2001). The organization, therefore, had to carry out research on the way of branding the films, appearance, size as well as the target market The other element of the marketing mix that Syco Entertainment had to consider delivering quality services as well as products to the needy children was the place of application of the medical care activities (Jessica Budds, 2001). It thus became necessary for Syco Entertainment to fund construction projects for health care facilities in the most affected regions of the developing nations as well as in the war torn countries. It was also realized that, in some areas, there were no established channels of distribution due to underdevelopment of those areas. This state of affairs resulted from the regions inability to construct good infrastructure facilities due to either high poverty level or civil war that disrupted daily life of the people. The organization thus had to the device some means to ensure that medical services were not only available but also accessible to those who deserve it. This was achieved by the organization’s capability of sending its personnel to the interior parts of the affected region as well as establishing temporary tends to serve as health centres in refugee camps. After carrying out effecting branding of the medical facilities by the organization, it then partners with other stakeholders in the health sector to facilitate smooth distribution and delivery of products to the needy children. Price is also another element of the marketing mix that is listed in the 4Ps (Ejaz&Shaikh, 2009). This element helps the organization in determining the value of the product that is to be offered. This is because the price of the product to be offered plays a very important part in gauging the possible response that the product will receive from the market. Therefore, it was recommended for the organization to device prices, which are affordable with regard to its products. An affordable price will assure the organization that its products will be received positively in the market and thus, the organization will be able to compete successfully. It is also essential for the organization to determine the amount of discount to offer to the trade customers, as well as the remaining market segments. A discount is offered to entice customers to continue buying the product and not to prefer a similar product from the organization’s competitors. Syco Entertainment based on this strategy in determining the amount of discount to be offered on its products that are aimed at uplifting the health standards of the needy families. Discount is only offered on those products that are expensive to produce to make them affordable to the needy families. The final element for the marketing mix which has received great application among business organizations is promotion (Jessica Budds, 2001). Just like other elements under the marketing mix, promotion is also put into application by considering various questions that highlight key areas to be considered while marketing the organizations products. The areas that are addressed by these questions include the time as well as the place that an organization needs to have in mind while delivering the product to the targeted customers in the segmented market. This can be achieved through advertisement carried out in both print and telecommunication media. Application of this element of the marketing mix by Syco Entertainment has resulted to it getting a positive response from the needy individuals. It has also helped in popularizing the organization in developing countries that has resulted to it expansion of service delivery worldwide Control In order to achieve the set objectives, Syco will have to employ qualified staff in both the film and television industries. Furthermore, it will have to maximize on limited resources so as to save on cost while increasing the profit. Also, the company will need to improve the infrastructure in terms of the art equipment to cope with modern technology. REFERENCES Bellis, M. (2013, May 6). marketing. Retrieved May 6, 2013, from www.investors.about.com: http://investors.about.com/od/fundinglicensingmarketing/t/M COGHILL, K. (2003). E-Government in Singapore. E-Government in Singapore-A SWOT AND PEST ANALYSIS , 103-131. Cowell, S. (2013, May 6). Syco Entertainment: X Factor UK. Retrieved May 6, 2013, from www.online.com. Ejaz, I. &. (2009). World Health & Population. . "Social marketing" for early neonatal care: saving newborn lives in Pakistan. , , Vol. 11 No. 3,17-23 . Francis, T. a. (2013). Business Administration - Marketing. . Journal of Strategic Marketing , vol 21. Jessica Budds, V. C. (2001). Social Marketing for urban sanitation. . People and systems for water, sanitation and health, , 174-177. Queensland Government. (27 march,2013). Develop a marketing Strategy. Business and industry portal . Using SMART Objectives. (2012). in your performance plan and prefessional development plan . APPENDIX 1.SWOT analysis Strength It has a great team of marketers. Good appeal to the mass due to their expertise. X Factor won an Award hence became popular. It holds copyright for several films. It has international facilities that are of great quality. Weakness Limited to Europe and U.K market. Creativity in the music and film has gone down. Opportunity New media and digitalization. Increase in broadcasting. Rise in the regional media. Threats Cycle time for common movies and song has been declining. The costs of rights to own movies and songs have been rising. Appendix 2: PEST analysis Political Heavy taxation by the government in music and film industries. Change of government may also change the laws appertaining to music and film industry like copyrights. The government may also restrict a particular group/age of people who may be talented. Government can also promote music industry by providing relevant infrastructure. Economic The level of government spending increases reducing the amount of disposable income. Inflation has reduced the value of money Provision of job opportunities has been a challenge. Low level of disposable income for individual. Fall in exchange rates among different countries Social Some culture restricts certain type of music and movies due to pornographic content. Some movies are restricted to a certain age of people especially those who are adult. Technology More inventions have come up in the field of music and films. Infrastructure development due to innovation and inventions hence new equipment. Read More