Tuesday, January 14, 2020
Globalization of Chocolate Lovers, Cakes and Pastries Essay
Globalization of both the economy and the society has confronted the world over the past decade. A shift of focus and interest from the local market to the international setting has demanded innovation not just in corporate leadership as new information; forms of communication and technology are being offered to be utilized in encouraging and reinforcing interaction among individuals. Fewer trade barriers and unprecedented technological advances have accelerated the pace of globalization. The advances in communication technology make it easier to enter the international market through the efficient marketing and advertising strategies that a number of international business organizations invest in by utilizing the services provided by the Worldwide Web. Electronic data communication (EDC) facilitates the exchange of data at tremendous speeds; it sorts and integrates data with other information available to the recipients (businesses, banks, capital markets) from other sources. Individual countries and trading and currency blocs alike view the fast-moving e-business sector as having a direct impact on the countriesÃ¢â¬â¢ and blocsÃ¢â¬â¢ competitiveness in the global market. Increased market competition identifies continuous adjustment and improvement in the production lines of countries to recognize the participation of smaller business units. The free flow of goods and services, the establishment of functioning trade blocs like the European Union, more favorable regulations for foreign direct investment, and e-commerce are now major features of the global market. The introduction of the new division of international labor calls for evaluation and reorganization of the business operations as well as a reassessment of the current technological practices. The Chocolate Lovers, Cakes and Pastries Industry in FRANCE Royle and Towers (2002) note that the Chocolate Lovers, Cakes and Pastries industry has now extended throughout the world, expanding in FRANCE and other European countries, bakeshops are often considered as a characteristic of the new global culture. These bakeshops are illustrated as informal, have uniform service to anyone regardless of social status and focuses on giving quick-service to its customers. The industry grew out of a cultural philosophy that greatly values friendliness more than propriety, basically more than traditions of gracious living and democratic consensus over status-based divisions. Firms within the Chocolate Lovers, Cakes and Pastries industry fall into the category of a competitive market structure. According to Lipset (1991), the competitiveness of a market refers to the extent to which individual firms have the control or power to influence market prices or the terms on which their products are sold. It must be noted that Ã¢â¬Å"the less power an individual firm has to influence the market in which it sells its products, the more competitive the market isÃ¢â¬ (Lipset, 1991). In the recent years, the integration of strategic planning and functional marketing has been perhaps the most relevant development in the field of marketing management as marketing managers have all the more realized that tactical marketing decisions must be made within a wider strategic framework. Marketing Mix (4Ps) Product Ã¢â¬â Products that Cakes and Cookies are offering can be improved and expanded. For example they can add more cakes that suit the taste and needs of their consumers in FRANCE. Cakes and Cookies should not limit their products according to the old time customers in the U. S. Placement Ã¢â¬â Decisions involving the place/distribution are also crucial in meeting the needs of the target market. There are many factors to consider such as the choice of location where the product will be sold to the consumers, and the various channel distribution required to bring the product in the target market. Elements of distribution channel include the packaging, storage facilities, transportation, and the members of the channel itself. Cakes and Cookies should make their customized packages and boxes for their Chocolate Lovers, Cakes and Pastries and this should be appropriate according to the taste of the FRANCE consumers. It is always relevant to choose a channel pattern that is suitable for the target market needs. Price Among other factors considered in pricing are the needs of the market, the costs involved, the effect on margins and the value offered at a minimum for the consumer without the price cut hitting the company image. It is not surprising therefore, that Cakes and Cookies entry price strategy became a model in starting business in the area. Finally, it is interesting to note that in FRANCE have consistently agreed with Chocolate Lovers, Cakes and Pastries pricing strategy for many years. This shows that consumers give their loyalty as long as the price is right and fair. Promotions Ã¢â¬â Today, personal selling, sales promotions, in the forms of souvenirs, and point-of-purchase displays (POP), publicity through non-paid presentation of the product to the target market (feature articles and special news coverage), and public relations (established link with the stakeholders) were utilized by Cakes and Cookies Similarly, TV and radio advertising are important channels to promote Cakes and Cookies Usually, effective television and radio advertising involves a good opening punch line, presentation of the competitorÃ¢â¬â¢s product (brand must not be mentioned) and its weakness, testimony of experts or renowned personalities/authorities, and in some cases, use of famous movie actors and actress also helps. Further, the existence of Internet and the continued revolution in the world of Information Technology are certainly positive signs for the blossoming of many new advertising opportunities. For instance, pop-up ads and email ads have started to inva de the Internet. Most advertising firms have also started to exert efforts to make their advertisements appealing to the public (Chow and Holden, 1997). Segment, Target and Positioning of the Product Of all the components of a marketing plan, perhaps the most overlooked but most critical element is the definition of the target market. According to Lovelock and Young (2000), it is a homogenous group of people or organizations that a company wishes to appeal to. There are two basic targets for a product or service: the user and the non-user segments. Thus, there are also two business and marketing decisions that the company must decide upon in light of the basic targets. The first is to cultivate the present market alone while the second is to go after non-users. The former can inspire consumer loyalty which is an important factor in the survival of any business. In the case of Cakes and Cookies, they should categorize their target market into two market segments: (1) the Cakes and Cookies patrons or those who have already tried the product, and (2) the Cakes and Cookies non-consumers. The Cakes and Cookies consumers further classified into (a) males and (b) females in order to differentiate the market appeal and competitiveness of the offered products in terms of sex as well as the specific consumers for specific types of Chocolate Lovers, Cakes and Pastries. in order to determine the competitiveness of each product per se. the Cakes and Cookies non- consumers, on the other hand, are further grouped into (a) those who do not eat Chocolate Lovers, Cakes and Pastries in general, and (b) those who eat other Chocolate Lovers, Cakes and Pastries. These market segmentation schemes according to product use will provide important information regarding the overall competitiveness of Cakes and Cookies products as well as viability and opportunities for encouraging sweeteners non-users to not just try any other average sweeteners but to choose Cakes and Cookies products among others. Moreover, companies now face the challenge of making its target consumers respond accordingly to their marketing efforts and those who understand its consumersÃ¢â¬â¢ responses will have a great competitive advantage (Kotler & Armstrong, 2001). In this light, Chocolate Lovers, Cakes and Pastries should keep in mind the differences that are distinct between and among other bakeshops target market based on different cultural backgrounds which significantly affect the effectiveness of the campaign. The fact is, there may be ideas that will not be applicable across the diverse target market population. Studies on the relationship of consumer behavior and their personal values and cultural orientation as well as their beliefs on certain principles, the dispositions they hold and side they take on political, gender and social problems and issues will be likewise duly accounted. Positioning The changing world has then placed much emphasis on the importance of communication for effective marketing. All types of communication are involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication. Among the channel members, even follow-up on complaints as well as customer billing may be included within the communication loop. In order to effectively serve the marketing channel, correct timing and accuracy in communications is essential. Moreover, it is important for the company to recognize that all members of the channel have an obligation or important role in maintaining the efficacy of marketing communications. Organizations that capitalize on customersÃ¢â¬â¢ active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979). Channel communications works in a two-way system wherein information transfers to the user and bounces all the way back to the producer (Goldberg & McCalley, 1992). In other words, marketing communications works like a feedback system, which allows company producers to relay information to the customers. In response to the provided information, consumers give certain reactions or behaviors. In this light, the electronic transformation of the services offered by Chocolate Lovers, Cakes and Pastries will result to better and more efficient and effective customer service system to the clientele. Moreover, the functionality of the online portal for the marketing and advertising needs of the agency will most possibly result to increase customer reach, satisfaction level and return of investment. Furthermore, if consumers somehow become better customers Ã¢â¬â that is, more knowledgeable, participative, or productive Ã¢â¬â the quality of the service experience will likely be enhanced for the customer and the organization (Bowers, Martin & Luker, 1990). Finally, some of the ways that companies acquired cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership.