Consumer Behavior Concepts and Strategies - Case Study Example

Table of Contents Particulars Page No 1.0 Executive Summary 2 2.0 Introduction 4 3.0 Product Life Cycle 4 4.0 New Market Entry 5 5.0 Growth Strategies 7 6.0 Shake-out Stage 8 7.0 Mature Stage 9 8.0 Decline Stage 10 9.0 New Economy Market 11 10.0 Organizational Structure 11 11.0 Marketing Plan 12 12.0 Marketing Metrics 14 13.0 Marketing Audit 15 14.0 Conclusion 16 15.0 References 17 1.0 Executive Summary The report focuses on providing the strategic marketing strategy which UNE Life can use during the different phases of the product life cycle highlights some important areas and strategies which will ensure better results for the organization. The business model and area of operation which UNE Life has adopted provides ample opportunities to be successful and thereby provides an avenue for better business. The report brings forward the fact that UNE Life is in its growing phase. Since, the business is not concentrated and looks at different avenues and options it has limited the overall risk. Based on the different business dimensions UNE Life should look at niche penetration strategy as their business model suits that. UNE Life to ensure growth in the future has to aim at being a market leader and follow different market expansion strategies which can be done through segmentation strategy. UNE Life for their long term future has to adopt fortress strategy which will help them to work on their core strengths and develop the business model based on important business pillars. The report also brings forward the different key areas where UNE Life needs to lay stress on for improvement in the business. The business has to look at harvesting and niche strategy especially during the decline phase so that new energy can be filled which will help UNE Life to carry out business operations in a better way. It has also been identified that UNE Life presently looks to follow a functional organizational structure but making changes and adopting the matrix structure which is a hybrid form of organizational structure will ensure better opportunities of growth. The marketing metrics also brings forward the ample opportunities that UNE Life as by retaining old customers and attracting new ones UNE Life will be able to sustain their business for longer period of time. The different audits clearly substantiates that UNE Life will be successful over a longer period of time as their business model states the same and the different opportunities which is present before UNE Life will ensure the progress. On the whole the strategies which UNE Life has identified for the different stages of the product life cycle will ensure high delivery standards but that has to be matched by making the required changes from time to time. This will help the business to be governed on qualitative terms and will provide the required framework through which overall goals will be achieved. 2.0 Introduction This report is a continuation of the previous report which focused on presenting the basic market strategy which UNE Life is using. This report will be more detailed and enhance the findings of the previous report by looking to provide different marketing strategies which UNE Life can adopt during the different phases of the product life cycle. It will thereby help to broaden the overall horizon of learning and will provide great insights through which the overall working dimensions will be understood. The report will begin by presenting the present position of UNE Life on the product life cycle and the strategies which they should look to adopt form here in the future. It will look at providing the different growth strategies out of mass market, niche, skimming or early withdrawal strategies which UNE Life can adopt so that they are able to ensure better opportunities of growth. This will be followed by the different marketing strategies which UNE Life can use during the different phases of the product life cycle has been emphasised on. In addition to it the report provides details regarding the new economy market and the organizational structure which has been adopted by UNE Life and the one which will be more beneficial for them. Lastly, the paper will provide the marketing metrics and audit so that UNE Life is able to take note of the deviations at the appropriate time and changes can be made at the correct juncture so that performance level is enhanced. This will thereby serve as a guide through which UNE Life will be able to take better decisions and improve their overall productivity. 3.0 Product Life Cycle Product life cycle helps to understand the stage where the product or service is positioned so that based on the stage appropriate strategies which will help to improve the business can be garnered. There are 4 stages all together which includes the introductory phase, the growth phase, the maturity phase and the decline phase. Businesses look to work in the growth phase as returns are high and business is able to witness strong productivity (Cook & Dave, 2004). This phases also helps business as they are able to increase their market share and carry out different activities and working mechanism in a better way. Similarly the other stages signifies different aspect and opportunities which marketers and strategy makers need to understand so that the overall working of the business can be shaped according to it. While looking at UNE Life and the phase where it is in the product life cycle it is clearly visible that it is on the growth phase. This can be substantiated from the point that the business is rapidly growing, more and more different ventures are being added, the revenues are multiplying at a rapid pace, the penetration is increasing and the market share is continuously growing. It is seen that the gym facility is growing at about 18% per year in revenues which is substantial and highlights a phase of strong growth. The phase lays down strong opportunities as being in the growth phase UNE Life can look at maximizing their business and look to cover all the cost that has been incurred (Canhoto, Clark & Fennemore, 2013). In addition to it the continuous demand for education and proper facilities which will help students in their studies is an areas which parents are looking forward. This will thereby help UNE Life to ensure better chances of growth and the growth stage where they are presently will provide them rich returns and will improve the overall functioning. 4.0 New Market Entry The new market entry is a strategy where organizations look to move away from their present mechanism of working towards a new targeted audience by offering and selling their products and services to a new market. This strategy can be either aimed towards a new product, new product line, and addition of new features to the product, reducing cost or looking towards improvement in service level (Chawla, 2003). UNE Life to ensure continuous growth has to aim towards new market entry by looking at adding more and more facilities and services which will act as a point of differentiation and will help to bring the required competitive advantage through which a bigger market can be attracted. UNE Life is faced with an issue as it has to find out the appropriate marketing strategies which will not only help them to improve their mechanism of targeting people but at the same time garnering the mechanism which will help them to retain the old consumers. The process calls for carrying out market research and identifying the different needs of the consumers. Based on the different wants UNE Life can look to add different products and services which will improve their efficiency and bring effectiveness thereby helping to shape the manner in which different activities are being carried out. UNE Life to enter the new market and to develop their business can aim at using either a pioneer or follower strategy. The business model which UNE Life follows a pioneer strategy would be the most favourable as it will help them to deliver superior performance and would thereby help to use the different resources in the most productive manner (Chen, 2003). Using the pioneer strategy will also help UNE Life to stay ahead of competition as work on the differentiation strategy which they have been following. The process would help them to define their targeting and positioning strategy and would provide the framework through which different needs of the consumers will be met. UNE Life by adopting the pioneer strategy can look forward towards adopting the following strategies which will help them to consolidate their business Mass Market Penetration: This strategy will be aimed at attracting all section of the society by having products and services which all people can purchase. Since, the degree of competition which UNE Life faces is low and students continuously demand for quality service which will assist them to study and keep fit so the chances of looking at mass market penetration is feasible. Having appropriate ways and attracting all section of the society will provide a very huge market where the products and services can be easily sold. Niche Penetration: This strategy would be more suitable as it would fit the business model which has been identified. UNE Life through the process of niche penetration will be able to ensure that they target only students and will thereby develop their strategies which will look to attract them (Clegg & Walsh, 2004). Since, UNE Life is already working in the same direction so developing and improving in the same path will restore their opportunities of growth and will provide a more viable option to deal with. Skimming and Early Withdrawal: In this strategy UNE Life can look for products and services at high price for students who are willing to spend something extra. The prices will be high, promotional activities will be low and the product or services will be provided for a short period of time (Doole and Lowe, 2001). This will help to meet the different needs as it will ensure that student learning improve and it would help UNE Life to work on with their strategy of providing quality facility and offer something extra to students who are willing to spend extra. UNE Life can focus towards being a market leader by following the strategy of a pioneer which they focus on the niche market as it suits their business model. Along with it skimming or early withdrawal strategies can be used for short time intervals which will help to improve the chances of earning more and at the same time better quality services to the customers. 5.0 Growth Strategies It has already been identified that UNE Life is in the growth stage which would thereby require formulating strategies which will provide sustained growth. The strategy which UNE Life will look to adopt will help to determine whether they want to work as market leader or follower as the overall dimension of carrying out business and dealing with the different requirements will be determined by the strategy they pursue (Daniel, Charls & Joseph 2003). Since, UNE Life already looks to work as a pioneer so the most appropriate strategy for them would be to act as market leaders. The different offerings and services already set them apart from other competitors and provides them a competitive advantage so working towards being a market leader will help them to deal with competition in a better way (Brassington and Pettitt, 2001). Working as market leader will open up different options before UNE Life which they can look at and based on it can identify the strategies among market expansion, flanker, confrontation, fortress and contraction strategies or a combination of one or more of such growth market strategies which would be the most beneficial for them. On the whole UNE Life can look at pursuing with the following strategies Market Expansion: UNE Life for expanding their market can look at different universities and increase their business presence. In addition to it adding new services and facilities will also help towards market expansion as it will provide an opportunity through which new customers can be attracted (Duncan, 2008). The market expansion strategy needs to be developed and devised aggressively so that different aspect of the business which would contribute towards their growth. Flanker Strategy: UNE Life to improve their revenues and to ensure better opportunities can further look at flanker strategies where they will aim towards repeating purchase so that more and more loyal customers can be identified. This will instigate the process of repeat purchase and have a pool of customers who look to purchase the products again and again. The overall process will help UNE Life to ensure better positioning and will bring about the required change in the style of working through which better results would be achieved 6.0 Shake-out Stage This is a stage where big players look to dominate the business and forces the small players to shut down their business. Since, the rate of growth is very high and barriers to entry is high it is period which is characterized by ample opportunities of growth and business improvement (Chrisan, 2001). Since, UNE Life is in the growth stage it needs to have appropriate strategies to keep other players out and ensure that they are able to achieve better rates of growth which would thereby improve their business and provide overall growth. The different strategies which UNE Life can look during this period are Competitive Advantage: UNE Life has to aim at working with the same business model which has given them a competitive advantage. Since, UNE Life has been able to achieve differentiation it will be able to ensure competitive advantage and will be able to ensure better targeting. The process would result in better segmenting and will provide better solutions through which competitive gains can be achieved. Transition: UNE Life during the transition period can look forward towards adding new products, adding new features to the different products, aiming at different market segments, increasing the product line and improving the overall service level through which better services will be ensured (Drummond and Ensor, 2001). This will thereby help to ensure that UNE Life will be able to sustain business. Market Share: UNE Life need to improve its market share by looking towards having a pool of loyal customers who support them during difficulties. Sustaining and improving the market share would help them to look at different options like acquisitions, mergers and alliance through which a ready market can be catered. This would help to improve the overall market presence and provide the different dimensions through which market share is improved. 7.0 Mature Stage This stage denotes one where the product has reached its maximum peak and starts to fall from there. At this stage investment starts to slow down, revenues fall, sales are reduced, competition is tough and slowly the business ceases to exist. Organizations start to enter into a price war as the products will be slowly removed from the market and new products will be introduced (Berkman & Gilson, 2001). To gain maximum sales during the period organization look at strategies like discounts, offers and other gifts to lure customer and garner maximum out of it. UNE Life during this stage can look as Market Expansion: UNE Life during this phase can opt and move out from the place of work to other areas i.e. geographical expansion. Since, they have a good brand image and can use it to establish their business over different geographical regions so the overall dimensions has to be aimed towards it. In addition to it while looking for geographical expansion UNE Life can look forward to alliance and mergers so that they get a ready market and based on their expertise and good brand image they will be able to garner the required sales in the market Increased Penetration: UNE Life has to further aim towards increased penetration by attracting other segment of the society towards it. UNE Life has to look forward towards using the same product and services but for a new set of customers so that they find something new (Daniels, Radebaugh & Sullivan, 2007). This will provide the required zeal and will ensure that the working mechanism is better shaped. 8.0 Decline Stage This is the last stage in the product life cycle and is denoted by continuous decrease in sales, changing consumer pattern and demand for different products and poor market penetration aided with little production. The market starts to shrink and finally the product is wiped off from the market. UNE Life during this phase can aim at Harvesting: UNE Life has to look at continuous up gradation and planned discontinuation of the services at the end of the product life cycle and replacing them with something new. This will thereby ensure that UNE Life will be better prepared to make the changes and will be able to absorb the shocks in a better way. Niche: UNE Life can look towards niche marketing and approaching customers who haven’t seen or used the products. This will provide a completely new market as certain ramification and changes will have to be done on the product or services and based on it customers will be attracted. This will thereby help to ensure that the product revives again and is able to attract a large chunk of people. 9.0 New Economy Market The new economy market requires that UNE Life keeps in tune with the changing market conditions and develop products and services which matches the different needs and wants of the consumers. The process will require continuous changes and up gradation of the services so that better customer satisfaction can be ensured. Since, UNE Life looks to work for students so there activities should be surrounding the different measures and steps which they need to undertake so that students can improve their learning environment. This stage will require promoting their products and services and spending heavily in that direction (Hill & Jones, 2004). UNE Life based on the different stages where their product and services is positioned at the product life cycle needs to develop strategies so that proper implementation and control becomes possible. This will help UNE Life to understand the market situation and provide them with an opportunity where they can bring about the change in the working scenario and improve the overall process of carrying out different activities. 10.0 Organizational Structure Organizational structure sets the relationship between responsibility, authority and accountability. This helps to understand and identify the manner in which different operations will be carried out and based on it the business is able to determine the path through which better results will be achieved. UNE Life presents looks to follow a functional form of organizational structure where the roles of different department are stated and the authority-responsibility relationship is established. This form of organizational structure doesn’t provide the same advantage which UNE Life is looking for as it creates problems associated with coordination and communication (Stone & Woodcock, 2013). UNE Life by following a matrix form of organizational structure can further improve their manner of working as it will suit the organization better. Since, it is a hybrid form of organizational structure which will thereby help to provide different gains which the different functional department will be able to use. This will help to deal with small and petty issues which the different department faces due to lack of coordination and will help to carry out the different roles and responsibilities in a better way. 11.0 Marketing Plans The marketing plan which UNE Life has the different elements which has been explained through a SWOT analysis and is as SWOT Strengths UNE Life has a strong brand name due to its existence in the business for some time UNE Life has a pool of permanent customers which ensures ready business The goals and strategies are clear and based on ground realities The different bodies work together which has ensured better use of resources and cooperation UNE Life has positioned and chosen a correct business model which has increased the overall business prospects Weaknesses Increase in competition as barriers to entry is low Lack of innovation and working with the same business fundamentals hasn’t helped to multiply the gains Lack of coordination among the different functions has resulted in delays in decision making Opportunities Growth in the industry provides a huge market which can be catered The government bodies and other institutions are in favour of similar business as it promotes an environment to study and is thereby favoured by the government Parents are willing to pay even more for better facilities which provides an opportunity to improve the service further Threats Increase in the degree of competition has made it difficult to sustain business Slow down in the economy has reduced the disposable income which is thereby impacting the business negatively Thus, UNE Life can work on different areas which will help to bring about the required changes through which business is carried out. Carrying out the cost-benefit analysis highlights that UNE Life will be able to gain through the business process as the demand for different services and facilities are continuously increasing among students. This will be matched by decrease in the cost structure as continuous growth in business would help to reduce the cost of searching new customers as they will have a pool of loyal customers. Along with it the manner in which families and parents are willing to pay extra for extra facilities for the students it will contribute towards the success of UNE Life. UNE Life also has to look at identifying a contingency plan which will help them during period of crisis and will provide an opportunity to deal with the different needs in a better way. This will help to formulate better strategies and identify the path through which better use of resources would become possible 12.0 Marketing Metrics This analysis brings forward the results in quantifiable terms so that the management and the stakeholders can understand the performance, identify the areas where expenditure has to be made, helps to formulate strategies for the future and develops the required strategies through which goals will be achieved. The result so far shows high customer satisfaction which has been matched by customer retention. The overall bottom line as a result has increased and has provided the required opportunities through which UNE Life has been able to ensure better returns and opportunities of growth in the market. 13.0 Marketing Audit This will help to understand the different appraisal areas which UNE Life has focused on The Macro-environment Audit UNE Life can aim towards further improvement of their services as students and parents are willing to pay extra for better facilities. Since, the business model which UNE Life has adopted is different it provides an opportunity where UNE Life can take advantage of it and work with their differentiation strategy. This will help to identify the different dimensions through which performance will be shaped and improve the overall working Marketing Organization Audit UNE Life has hired the best personnel who work at different level and carry out the functions in such a manner that the goals can be better achieved. Along with it the different promotional and other activities has helped to ensure better use of functions and effective business operations. Strategy Audit The strategy audit highlights that UNE Life looks at identifying the dimensions through which different needs and requirements of the students are met. The strategies are developed based on it and will help UNE Life to carry out the different functions in the most effective manner 14.0 Conclusion The report presents the position of UNE Life on the product life cycle and the strategies which they should look to adopt. It provides the different growth strategies which UNE Life can adopt so that they are able to ensure better opportunities of growth. Along with it the different marketing strategies which UNE Life can use during the different phases of the product life cycle has been emphasised on. In addition to it the report provides details regarding the new economy market and the organizational structure which has been adopted by UNE Life and the one which will be more beneficial for them. Lastly, the paper provide the marketing metrics and audit so that UNE Life is able to take note of the deviations at the appropriate time and changes can be made at the correct juncture so that performance level is enhanced. This will thereby serve as a guide through which UNE Life will be able to take better decisions and improve their overall productivity. 15.0 References Berkman, H. & Gilson, C. (2001). Consumer Behavior Concepts and Strategies, Kent, Boston Brassington, J. and Pettitt, M. (2001). Principles of Marketing, 2nd Edition, Prentice Hall Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Clegg, C. & Walsh, S. (2004). Change Management: Time for a change. European Journal of Work and Organizational Psychology, 13 (2), pp. 217-239 Chen, I. (2003). 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Daniels, J.D., Radebaugh, L.H. & Sullivan, D.P. (2007). International business: environment and operations ,11th edition. New Jersey: Pearson Education Hill, L.W.Ch. & Jones, R.G. (2004). Strategic management: An integrated Approach. (6th ed.). Boston: Houghton Mifflin Company Stone, M. & Woodcock, N. (2013). Social Intelligence in Customer Engagement. Journal of Strategic Marketing, 21 (5), 394-401. Read More