1. How does the company create and capture customer value? 2. How does it build customer relationships? Product and Brand Management: OverviewFresh Direct Services employees several strategies to create and capture customer value. One strategy is to carry out proactive brand management. the managent carries out this activity through employment of broad range promotional concepts with a view to enhance the customers’ attitudes and perceptions of particular products. The idea is to ensure that brands of the beverages remain strong in the market while the customers get value for their money. According to Proffesor Kotler (2006), the idea of engaging in product as well as brand management is to ensure that the desires of the customers are aligned and are in line with the experience that comes with the consumption as the brands are associated with certain unique product characteristics.
Product and brand management increases the volume sales because customers will routinely make comparison with other products of competing firms. Ideally, the amount of profit generated by a product determines the value of the brand (Percy & Elliot 2007, 125). Another strategy employed by the company to capture customrers’s value is through advertisements.
The firm undertakes aggressive marketing product branding so as to attract more customers. Through this the firm has been able change the attitudes and perception of the customers towards a particular brand. For firms to implement this, the management understand that they have to create a favorable environment and wide range of opportunities so as to persuade customers to purchase their products and services. Additionally, the company has been involved in continuous product development, improvements and value addition, more so in the delivery process.
The objective of this has been to develop and nurture products, and have them delivered, through a process that that meets the needs and demands of the customers. Building customer relationship is one major strategy that Fresh Direct Servics uses in its marketing. The strategy that the firm uses is built on a customized version of Customer Relationship Management principle. Keeping time has been a major marketing philosophy of the company. Since the company mainly deals with very busy clinets who may not get tme to make personal purchases, it has been imperative that time be viewed as a resources, and its management taken as a means of creating a long lasting customer relationship and loyalty.
This strategy has enabled the employees to understand the need and the importance of real time branding in their business operations. This relates to the fact time pressure has created need for customers to respond to adopt a sophisticated product brands that would eliminate inconveniences hence saves time and energy for the customers. Critical Analysis of the ArticlesThe company’s marketing enviromnet is very competitive, based on referral networks, personal experiences and relis more on repeat purchases.
Word of mouth, and direct marketing as well as creation of personal relationship with the customers also characterize the marketing environment. The customers also valu quality, and ability to give what is promoised as well as consitency in products quality. To adjust to the market dynamisms, Fresh Direct Services uses sevaerla approaches. Aggressive marketing and emphasizing on quality is another one of such approach used by the company. It is explicit that success of a business organization is entirely dependent on the strength of customer base.
Product promotion, an aspect of marketing, is very useful in creating insight about particular products. Strategically, the company uses this concept to send very positive messages about the products and services it offers. This is a persuasive marketing that in the end leads to loyalty and creation of a positive relationship. In persuading customers, the managemnmt of the company take into account the fact that perceptions and attitudes towards a particular product are dependent on the past experience about that particular product.
In order to survive in the turbulent competitive business environment, the management also creates a favorable environment that can change customers’ attitude or belief. If a product has not been performing well in the market, there is need to send a message informing the customers of the relevant changes that have been introduced thus making it unique than the products or services offered by the competitors in the market. It is noteworthy that many brand managers have ignored the idea of creating favorable environment to their detriment.
Customers should hold accurate view of the products around them. Since most customers do not have time to do research about the quality and the best brands around them, they rely on the messages they receive from the business firms. Impliedly, the company uses a two commucatin system, uses feedbacks to improve their services and inform the customers of the changes. In reference to these messages, customers create pictures in their minds about the brands. Through advertisements, a firm can inform the potential customers on the qualities of the re-branded or new brands.
The message delivered by the firm should be credible enough because customers base their response and their attitudes on it. The organizational marketing stretergy is based on consistency and sustainance of the promotions. Consistency is very important in the management of product brand in the market. According to the theory of consistency, customers change their attitudes, beliefs and perceptions towards a product if cognitive consistency prevails. In the modern society, customers associate consistency with good brands and attributes of a firm.