APML
APML
APML
In December 2014, the chairman of Agarwal Packers and Movers Limited (APML) prepared for a
meeting with his senior management team. APML was a family-managed business and also the
biggest branded player in the house that is fragmented and mostly unorganized -movers section of
the Indian logistics industry. The company was taking great advantage of the growth of the Indian
market, government infrastructure spending, and goods and services tax changes that will bring
changes that were beneficial to the sector.
While the company had reached revenues of US$62.6 million in 2013/14 and had been lauded for its
security practices and accomplishments, the sector had low barriers to entry. APML was confronted
with numerous little and several huge, moving firms that were struggling for the organization.
Moreover, many small firms fraudulently co-opted the name to steal customers of the company.
APML's chief financial officer had put forth a proposition to increase prices for inter city relocations.
The chairman needed to think about the correct price strategy to use, because any price increase
could cost the business customers.
TOTAL 10438041
If the risk component is high in the industry then we should go for a higher hurdle rate /
discount rate of 20%.
TOTAL 9468058
What are external factors that are impacting the business environment (PESTEL Analysis)
Should Apml Movers enter new market or launch new product (Opportunities & Threats
from SWOT Analysis)
What will be the expected profitability of the new products or services (Porter Five Forces
Analysis)
How it can improve the profitability in a given industry (Porter Value Chain Analysis)
Finally which business to continue, where to invest further and from which to get out (BCG
Growth Share Analysis)
SWOT-
Opportunitie
s Threats
Strengths Strength Opportunities (SO) Strength Threats (ST) Strategies
Strategies
Apml Movers can use two approaches - building
Using Apml Movers strengths to on present strengths, or analyze the trend and
consolidate and expand the market build processes to two pronged market penetration
position. approach.
Weaknesses Weakness Opportunities (WO) Weaknesses Threats (WT) Strategies
Strategies
Apml Movers should just get out of these business
Building strategies based on areas and focus on strength and threats box , or on
consumer oriented product weakness and opportunities box.
development and marketing
approach.
- Regulatory Practices - The regulatory practices are streamlined with global norms
which have helped the country to improve its “ease of doing business” ranking.
- Role Local Governments Play – Local governments are highly influential in the
policy making process and implementation as most of the policies and regulations
are implemented by the local government as enforcement agencies mostly report to
local government in their own states regarding various laws.
- International Trade & Other Treaties – The country has a good record of adhering
to international treaties it has done with various global partners. The government of
each party has adhered to the treaties done by previous governments, so there is a
consistency in both rule of law and regulations.
Economic factors of a country and region have a direct impact on the potential
attractiveness of a given market. Some of the economic factors that Apml Movers
should evaluate both in the present market and one in which it wants to enter are –
inflation rate, GDP growth rate, disposable income level etc.
- Price Fluctuations in both Local and International Markets – Compare to the level of
quantitative easing in last decade the prices of Apml Movers products and prices of
overall products have remained sticky in the US market. Apml Movers should
consider the fact that at deficit levels of United States in an emerging economy can
lead to rampant inflation and serious risks of currency depreciation.
- Employment Rate – If the employment rate is high then it will impact Apml Movers
strategies in two ways – it will provide enough customers for Apml Movers products,
and secondly it will make it expensive for Apml Movers to hire talented & skillful
employees.
- Inflation Rate – The inflation rate can impact the demand of Apml Movers products.
Higher inflation may require Apml Movers to continuously increase prices in line of
inflation which could lead to lower levels brand loyalty and constant endeavors to
manage costs. Cost Based Pricing could be a bad strategy under such conditions.
- Demand Shifts from Goods Economy to Service Economy – The share of services in
the economy is constantly increasing compare to the share of manufacturing, goods,
and agriculture sector.
Social factors such as demography trends, power structure in the society, women
participation in workforce etc have immense impact over not only the country's economy but
also on workforce talent availability and level of consumer demand.
Social Factors that Impact- Agarwal Packers and Movers: Competing for "Moving"
Experiences
- Power Structure in Society – Apml Movers should carefully analyze both - What is
the power structure in the society? How it impacts the demand in the economy. For
example the power structure in US economy is slowly moving towards the older
generation as that generation has higher disposable income compare to the younger
generation.
- Level of Social Concerns & Awareness in Society – Higher level of social concerns in
the society often result higher consumer activism and pressure from non-
governmental organizations, & pressure groups.
- Attitude towards Health & Safety – The attitude towards health and safety is often
reflected in the quality of the products and cost structures of manufacturing
processes. Apml Movers has stringent norms for health and safety norms so in
emerging economies it may have to compete with players who don’t have high cost
structures that of Apml Movers.
- Nature of Social Contract between Government & Society – Before entering into a
market Apml Movers needs to understand the nature of social contract between
government and society. For example it has been extremely difficult for US
companies to enter UK health market as UK health system is a nationalized system
and everything goes through contracts at national level.
- Attitude towards Savings – The culture of saving in US and China is totally different
where savings rate in China is around 30% , it is well below 15% in United States. This
culture of consumption and savings impact both type of consumption and
magnitude of consumption.
- Attitude towards Authority – Various cultures in different part of the world have
different attitude towards authority. In Asia authority is respected while in west it is
something to rebel against. Apml Movers should carefully analyze the attitude
towards authority before launching a marketing campaign for its products and
services.
Technology is fast disrupting business models across various industries. Some of the
technology trends that are impacting the macro environment are – developments in artificial
intelligence, use of machine learning and big data analytics to predict consumer behavior,
growing importance of platforms over service providers etc.
Technological Factors that Impact Agarwal Packers and Movers: Competing for
"Moving" Experiences
- Mobile Phone & Internet Penetration – Apml Movers should assess the level of
internet and mobile phone penetration in the country as it will it in building a
requisite business model based on local needs and realities.
- Cost of Production and Trends – Apml Movers should assess - What are the cost of
production trends in the economy and level of automatization. We at EMBA Pro
believe that in near future the sector most disrupted by technological innovation is
manufacturing and production.
- Transparency & Digital Drive – Apml Movers can use digitalization of various
processes to overcome corruption in the local economy.
- Preparedness for 5G Related Infrastructure – Countries across the world are trying
to prepare themselves to install 5G infrastructure. Apml Movers should assess to
what level the local market is prepared to roll out the 5G connectivity.
- Level of Acceptance of Technology in the Society – Apml Movers has to figure out
the level of technology acceptance in the society before launching new products.
Often companies enter the arena without requisite infrastructure to support the
technology oriented model.
Environmental factors are fast gaining traction not only among consumers but also
among regulators and policy makers. Climate change and changing ecosystem is
leading to the extinction of more than 20% of species on the planet by the turn of
this century.
- Focus & Spending on Renewable Technologies – How much of the budget is spend
on renewable energy sources and how Apml Movers can make this investment as
part of its competitive strategy.
- Environmental Standards and Regulations both at National & Local Levels – Often
the environment policy at national and local level can be different. This can help
Apml Movers in numerous decisions such as plant location, product development,
and pricing strategy.
- Recycle Policies – What are the recycle policies in prospective market and how
Apml Movers can adhere to those policies.
- Corporate Social Responsibilities Culture – Are Apml Movers present CSR efforts
applicable in the new market or does it needs to have new initiative to cater to the
prospective market.
Legal factors often govern – conditions to enter the market, laws to operate in the market,
and procedure to resolve any dispute with other stakeholders. If the legal system is not
strong then Apml Movers can face numerous challenges – from consumer petitions to
shakedowns from authorities.
Legal Factors that Impact Agarwal Packers and Movers: Competing for "Moving"
Experiences
- Securities Law – What are the securities law in the country and what are the
conditions to list the company on national or regional stock exchange.
- Intellectual Property Rights Protection – Apml Movers should assess the level of
protection that intellectual property rights get under the legal system of the country.
- Employment Laws – What are the employment laws in the country and are they
consistent with the business model of Apml Movers. For example Uber employment
system is not consistent with French laws and it is facing challenges in the country.
- Business Laws – Before entering into new market – Apml Movers has to assess what
are the business laws and how they are different from home market.
- Independence of Judiciary and Relative Influence of Government – The judiciary
independence often reflect both strength and credibility of the institutions in the
country.
VRIO stands for – Value of the resource that Apml Movers possess, Rareness of those
resource, Imitation Risk that competitors pose, and Organizational Competence of
Apml Movers. VRIO and VRIN analysis can help the firm.
Competitive
Resources Value Rare Imitation Organization Advantage
Position among Yes, firm has Yes, it has Difficult to imitate Yes, over the years Sustainable
Retailers and strong dedicated though not company has used Competitive
Wholesalers – relationship with channel impossible it successfully Advantage
companyname retail retailers and partners
strategy wholesalers
Access to Cheap Yes No Can be imitated by Not been totally Not significant in
Capital competitors exploited creating
competitive
advantage
Four Critical Factors that Managers at Apml Movers can use for Value Innovation are -
Buyer Utility - It underlines the core values, features or utility Apml Movers's
products or services deliver to the buyer. The benefits can be both perceived and
real.
Adoption - When innovation is pursued in isolation of the value then it can lead to
very low level of adoption no matter how significant technological breakthrough is.
What is the difference between Blue Ocean Strategy and Red Ocean Strategy? How can
Apml Movers break out of the red ocean of bloody competition?
Growing trend of commoditization of the products and services have also put
pressure on companies such asApml Movers.
Globalization has also opened doors to suppliers from China, India, Singapore,
Malaysia, Vietnam, Turkey, and other emerging economies to compete in the high
cost market such as United States & European Union.
Niche markets and local monopolies that company’s like Apml Movers able to exploit
are fast disappearing. The corporations in Strategy & Execution industry are required
to continuously come up with new solutions.
Various product categories in Strategy & Execution are becoming more similar,
leaving corporations to compete only through pricing strategy.
Consumer behavior in the Strategy & Execution is also fast evolving because of
-technological innovationsgreater access to information, market transparency, and
promotional incentives by competitors)
Breaking out of Red Ocean of Bloody Competition
Examples of how Blue Ocean Strategy can be used for Apml Movers case study
Apml Movers can use following Blue Ocean Strategy (BOS) tools and techniques to
overcome the red ocean of cut throat competition in Strategy & Execution industry.
Eliminate Raise
Which are the factors that Apml Movers can Which factors need to be improved well above the
eliminate that players in industryname industry has industry standards to provide enhanced value to
long competed on? the customers?
Reduce Create
Which factors Apml Movers can reduce well below Which factors needs to be created by the Apml
the industry level to structure costs? Movers that had never been offered by
competitors in the industry
Industry Focuses on rivals within Strategy & Exploring opportunities & spot threats
Execution industry across alternative industries
Strategic Group Focuses on competitive position within Looks across strategic groups within
strategic group Strategy & Execution industry
Buyer Group / Target Focuses on better serving the buyer group Redefines the industry buyer group. It
Segments involves redefining the consumer
Red Ocean Competition Blue Ocean Creation
segments.
Value proposition offered Core objective is to maximize the value of Looks across to complementary product
by Apml Movers's products product and service offerings within the and service offerings
and services established context.
Functional-emotional Strive to improve the price performance Rethinks or repurpose the functional-
Orientation within the functional-emotional emotional orientation of the Strategy &
orientation under prevailing norms. Execution industry
Time Spend energy & resources on adapting to Actively strive to shape external trends
external trends. over time
Strategy Alignment
Apml Movers BOS should have three complementary qualities -- a compelling
tagline, focus, and divergence .
The four actions of Apml Movers strategy canvas should be guided toward enforcing
these critical qualities. Without these critical qualities, Apml Movers strategy is most
likely to be muddled, undifferentiated, and hard to communicate with a significantly
high cost structure.
The four actions of creating a new value curve should be well guided toward building
a company’s strategic profile with these characteristics. These three characteristics
serve as an initial litmus test of the commercial viability of blue ocean ideas
Apml Movers Needs to Avoid these Six Red Ocean Strategy Traps
Intellectual Yes, they are Yes, IPR and Risk of imitation So far the firm has Providing Stro
Property Rights, extremely valuable other rights are is low but given not utilized the Competitive
Copyrights, and especially to rare and the margins in full extent of its Advantage
Trademarks thwart competition can't the industry IPR & other
competition copy disruption properties
chances are high
Ability to Attract Yes, Apml Movers Yes, as talent is Difficult to To a large extent Providing Stro
Talent in Various strategy is built on critical to firm's imitate yes Competitive
Local & Global successful growth Advantage
Markets innovation and
localization of
products
Opportunities for Yes, new niches No, as most of Yes can be Brand extensions Temporary
Brand Extensions are emerging in the competitors imitated by the will require higher Competitive
the market are also targeting competitors marketing budget Advantage
those niches
Global and Local Yes, as it diversify Yes Can be imitated Yes, it is one of Providing Stro
Presence the revenue by competitors the most Competitive
streams and diversified Advantage
isolate company's companies in its
balance sheet industry
from economic
cycles
Access to Cheap Yes No Can be imitated Not been totally Not significan
Capital by competitors exploited creating
competitive
advantage
Sales Force and Yes No Can be imitated Still there is lot of Can provide
Channel by competitors potential to utilize sustainable
Management the excellent sales competitive
force advantage.
Potential is
certainly there
VRIO analysis of Apml Movers is a resource oriented analysis using the details
provided in the Agarwal Packers and Movers: Competing for "Moving" Experiences
case study. Resource-based strategic analysis is based on the assumption that
strategic resources can provide Apml Movers an opportunity to build a sustainable
competitive advantage over its rivals in the industry. This sustainable competitive
advantage can help Apml Movers to enjoy above average profits in the industry and
thwart competitive pressures.
***It is a broad analysis and not all factors are relevant to the company specific. For
greater details connect with us.
For successful marketing strategy at Apml Movers, the marketing managers need–
understanding of customers’ fundamental needs and drivers of those needs,
conceptualizing products and services that can meet those needs and are feasible in
Apml Movers financial and intellectual resources, and finally developing marketing
mix for entire go-to market strategy.
Increase market share of Apml Movers – Marketing efforts can be used to increase
market share either by driving increase in sales to new customers or by driving
higher sales to existing customers.
Get existing customers of Apml Movers to buy more – It often involves selling
accessories along with the existing products or increase the usage rate of the existing
products. Increase usage rate is comparatively a difficult task even with a war chest of
huge marketing resources.
Better establish the brands of Apml Movers – Brand awareness and positioning is
one of the critical objectives of marketing and often organization spend a significant
part of marketing budget on brand positioning.
Improve customer loyalty of Apml Movers customers – Marketing efforts can be used
to increase loyalty among existing customers by organizing events, and by providing
post purchase information and services.
Increase sales of Apml Movers – The goal of marketing efforts is to increase sales of
the present products. It may involve selecting a new target segment or positioning
an existing product differently to a new segment.
Over the last decade the traditional role of marketing has diminished with the rise of
artificial intelligence driven algorithms that provides marketers an easy to measure
tool based on impression, clicks, and other behavioral aspects. But one thing that has
been lost in this easy to measure culture is – The power of marketing functions to
create new markets and customer segments. At EMBA Pro, we believe that power of
creating new markets still holds great potential for marketers in both digital world
and traditional media.
The first stage of the marketing process at Apml Movers is to do research and
analysis to identify unmet and even unknown customer needs. A good point to start
for the research and development is to conduct a 5C Marketing Analysis . The 5C
Marketing Analysis framework comprises –
Customers Needs– What are the needs that Apml Movers seek to satisfy. Who are
the present customers and who are the potential customers for the new product or
service.
Company – What are the resources and special skills that Apml Movers needs to
possess to create products that can fulfill the needs of the prospective customers.
Check out the detailed SWOT Analysis for Apml Movers on the following page.
Competitors – Who are the competitors in the target market and what value
proposition they are offering in the market place. Do they possess enough financial
and knowledge resources to develop new products to compete with Apml Movers.
Collaborators – What sort of supply chain and value chain partners Apml Movers
needs to develop and deliver new product to final consumer. What are the respective
bargaining powers of value chain partners.
Context – What are the macro and micro environment factors that impacts the
business environment in which Apml Movers operates in. You can check out PESTEL
analysis of Apml Movers in greater detail on the following page.
The second step of Marketing Process after completing the 5C analysis is – Selecting
the Target Market. It requires three steps –
Segmentation
Targeting
Once the overall market is divided into various segments then Apml Movers needs to
choose a target segment or few target segments. The key is not to be everything to
everybody as the products can only deliver specific value proposition.
Customer behavior and loyalty analysis – How customers are behaving in each
segments and are there opportunities of over lapping. Loyalty behavior analysis is
also a critical factor in analyzing the conversion rate if the Apml Movers core strategy
is based on attracting existing players’ customers.
Maturity of the market – For example within the car industry the SUV category is
more mature than Electric Vehicle market, so the margins can be very limited in the
SUV category but the demand forecasting is easy. On the other hand EV division can
have higher margins because of lower competition but the demand forecasting can
be a difficult process.
Differentiation process involves how Apml Movers is differentiating its products and
services in the market place compare to its competitors. Positioning is the position of
the brand or Apml Movers products in minds of target customers – based on
distinctive features, qualities and functions.
The differentiation and positioning task at Apml Movers require marketing managers
to do -
Choose competitive advantages that are most compatible with Apml Movers
marketing strategy. Marketing managers at Apml Movers can make perceptual maps
to better understand competitive positioning of various brands in the market place.
Finally Positioning the brand as a deliverer of superior value to the target segment
and effectively communicating that position to consumers using marketing mix and
promotion mix.
You can also check out EMBA Pro - 5C Marketing Analysis of Agarwal Packers and
Movers: Competing for "Moving" Experiences
1. Objectives of the Marketing Plan : There are various objectives for which Apml
Movers marketing managers can make marketing plan – New product launch,
repositioning of existing brand, targeting new customer segment, entering
international markets etc.
2. Marketing and financial goals and objectives: The second step is to correctly assess
how much financial resources will be required to execute the marketing plan. It
involves resources spent from product development to building a communication
strategy mix.
3. Marketing mix: Building a marketing mix based on the marketing plan objectives
and limitations imposed upon it by the financial resources.
4. Marketing budget: Budget each prospective activity that will be under taken under
marketing mix strategy.
Step 4 – Four P's of Marketing Mix & Go-To Market Strategy – Capturing
Value
Guided by marketing strategy, the company designs an integrated marketing mix
made up of factors under its control—product, price, place, and promotion (the four
Ps of Marketing Mix). To design the best marketing strategy and mix, Apml Movers
should closely adopt the Four Ps of Marketing mix in accordance with trends and
forces in Apml Movers ’s marketing environment.
Promotion - Engage with customers through use cases and benefits instead of
functionalities and features. Communication should be focused on experience rather
than product features.
Taking regular feedback from customers and asking them how certain features can
be enhanced.
Providing regular maintenance services and spare parts, if the customer needs them.
Building communities where customers can share experience and help other
customers.
Post purchase services are critical not only to foster loyalty among the customers but
also to get continuous feedback and improve the products.
Key Question Answered – What are the strengths and weaknesses of the
company and how marketing can improve the effectiveness of its core strength
and alleviate the impact of its weaknesses.
Marketing managers at Apml Movers needs to analyze the internal strengths and
weaknesses of the company before making marketing decisions. Each organization
has different marketing budget, different skill sets to execute marketing strategies
and promotional campaigns. The company analysis will help the Apml Movers to
optimize the use of the marketing resources. In terms of the four risks mentioned
above –Marketing managers at Apml Movers needs to focus on risks corresponding
to production and delivery risks. If the company fails to match the consumer
expectations then no amount of smart marketing can build a sustainable competitive
advantage.
Company Factors
Ability to scale production – Apml Movers has a robust and flexible supply chain so it
can meet the challenges of managing success arising from highly successful
marketing efforts that lead to surge in consumer demands for its products.
Financial position and availability of resources for marketing – The financial position
of Apml Movers is strong and it can afford to spend significant amount of resources
on marketing for – launching new products and to better position existing brands.
Culture of the Apml Movers – As the Agarwal Packers and Movers: Competing for
"Moving" Experiences explains the firm has a strong culture of product and process
innovations.
Key question answered - How Apml Movers can identify attractive market
segments and choose a market targeting strategy.
Marketing strategy of Apml Movers needs to meet two broad objectives – carefully
selecting target market and designing marketing activities to achieve desired
positioning in hearts and minds of the target market. Customer analysis by marketing
managers of Apml Movers can include – growth rate of the industry, potential market
size of both the overall market and target segment, tangible and intangible product
features desired by consumers in the industry, core purpose of buying the products,
frequency of purchase, recent purchases, industry trends, income levels etc.
Based on our 4 broad risk framework for 5C analysis – marketing managers should
focus on demand risk and technology risk in customer analysis section.
Customers Factors
Who the target customer is – Should Apml Movers go for a broader segment or
position its product in niche segment. My suggestion is that it should focus on the
niche segment as it is highly profitable.
What are the features most desired by consumers – Marketing managers at Apml
Movers needs to decide which are the features most desired by consumers and how
Apml Movers can position itself to deliver those 2-3 critical features.
What is the Customer Life Time value – Rather than focusing marketing efforts
around single purchase, Apml Movers should develop marketing strategy that can
maximize customer life time value.
What type of product Apml Movers is selling – High involvement product or low
involvement product require different marketing strategies. High involvement
products often have higher brand loyalty and less price sensitivity compare to low
involvement products where industry players often compete on prices.
What is the level of brand awareness among target segment and general population
– The brand awareness among the target segment and among wider population is
high. Apml Movers can leverage on it to build sub brands for niche segments within
the target market and adjacent segments.
Key Question Answered – Who the competitors are, what their marketing
strategy is, and how Apml Movers can design its marketing strategy in view of
competitive pressures and limited marketing resources.
Where to position the brands respective to Apml Movers own brands portfolio and
competing brands
What are the marketing strategies of competitors.
Should Apml Movers competes directly with the competitors or find niche positions
within the segments.
What type of competition there is in the industry that Apml Movers operates in.
Competitors Factors
What will drive future growth and how competitors will try to take share of that
future growth – technology innovations can result in making present positioning less
profitable so Apml Movers needs to continuously innovate and look for new
opportunities.
Threats of new entrants to profits of Apml Movers – Marketing efforts are often
barriers to entry in the industry and new entrants not only have to have huge
marketing resources to compete with the incumbents but also need high level of
marketing know how.
Product Line Breath Decisions – This not only pertains to Apml Movers product
strategy but also its distribution and supply chain management strategy. Broader line
requires more positioning strategies and higher marketing spending.
Positioning strategy vis a vis competitors – The critical marketing decisions for
managers at Apml Movers is what strategic position to choose which at same time is
– different from competitors and relevant to the customers.
Threats of substitutes to Apml Movers – The threats of substitutes often arise either
from economic cycle or technological innovation. It may require repositioning of
certain brands on part of Apml Movers in certain markets.
Product Line Depth Decisions for Apml Movers – Depth involves targeting different
segments within the same product range. Higher the depth, the more the company
needs to spend on individual brands without putting too much focus on the parent
company.
Intensity of rivalry among existing players – if the intensity is high then the
profitability is usually low in any industry. Thus it requires Apml Movers to spend
higher resources on marketing efforts.
Key Question Answered – How flexible & robust Apml Movers supply chain is
and how much bargaining power the collaborators in the value chain have.
Collaborators include the supply chain partners both upstream and downstream of
the value chain. For doing Collaborators analysis Apml Movers needs to critically
evaluate the supply chain based on numerous factors such as – bargaining power,
what suppliers bring to table, flexibility & agility of supply chain, revenue sharing at
each step of the value chain.
Based on risk exposure parameters under the collaborators analysis Apml Movers
marketing managers should focus on risk exposure to international risks (because
Apml Movers has international operations), and production and delivery risks. For
example if the collaborators effectively able to meet the demand increased by
effective advertising of Apml Movers marketing department then it will go a long
way in enabling the company to thwart new competition and devise premium pricing
strategy.
Collaborators Factors
Number of suppliers and abilities of the suppliers – If there are too many suppliers
then it will become expensive for Apml Movers to manage them but if the number of
suppliers is too few then it will expose the company to supply chain disruption risks.
Position and bargaining power in the value chain – If the collaborators have strong
bargaining power then Apml Movers will not able to sustain higher margins even
with higher marketing expenditure.
Flexibility of supply chain and international risks – In international markets the critical
question in front of Apml Movers is how much localize based on local preferences.
Rest of the decisions from production to marketing is based on this critical decision.
Opportunities to localize the production and other processes to reduce risk of
organization wide supply chain risk in international market.
Key Question Answered – Which are the macro economic factors that will
significantly impact both the business model and the marketing strategy.
Context Analysis encompass the diligent analysis of macro environment factors such
as – political and social environment, regulatory environment, economic conditions
in the markets that the Apml Movers operates in, rate of technology innovations in
the industry, legal environment, environmental standards in the industry etc.
Two main forms of risk exposure in the context analysis are – International risks, and
technology & innovation risks exposure.
Context Factors
Regulatory Framework – It not only impacts the type of the advertising and
marketing campaign a company can run but also the type of products Apml Movers
can sell. For example the standards & regulations for Apml Movers products in US
and European Union are vastly different.
Economic – The consumer behavior during boom time and recession time is often
totally different so marketing managers at Apml Movers has to decide how the
consumers will behave in the present economic situation.
Inflation & Diversification – Inflation impacts the pricing strategy of Apml Movers as
high inflation can result in lower income from the present sales.
Political Risks to Apml Movers – Geo-political risk have increased over the last three
to four years with developments such as US-China trade situation, Brexit, and rise of
yellow vests in France.
Employment – Given the employment crisis in Western Europe and emergence of Gig
economy and employment in US and all the major western economies – employment
has become a critical factor in designing marketing strategy. Employment not only
impacts the purchasing power of the customer but also impacts the self esteem and
brands she can associate with
Design and Testing – Product is designed based on the value proposition that
customers are seeking and one that Apml Movers can deliver. The key consideration
regarding product design and testing are – customer value proposition, regulatory
requirements, Apml Movers skills and resources, opportunities for differentiated
positioning, and profitability.
1. Does the product launch or product extension launch satisfy potential customer
needs and wants in a way that can deliver profits to the firm.
2. Will the product will be viewed completely different from the existing products of
the firm and how much is the risk of cannibalization of the present brands by a new
brand.
3. How the new product brand launch will impact the overall brand equity of the
Apml Movers present brands and products. For example often launching a no frill
product may end up impacting the image of the company as an innovator in the
field. This is one of the reason why Apple stopped selling its plastic phones as it
negatively impacted the image of the company as a deliverer of superior hardware
products.
2. Apml Movers can think of ways - how features and value can be added to existing
brands that help them in consolidating and increasing their market position.
3. Apml Movers can try to reposition the products from the existing brands within
one line.
4. Apml Movers can stop selling the products that are either not profitable or not
creating enough differentiation from the existing products.
Pricing Recommendation
Based on the evidences at hand – we can choose the following pricing strategy
High Brand Awareness – The brand of Apml Movers is well respected in the market
so it can fetch a slight premium over the other competitive brands.
Direct Distribution System – Apml Movers putting its own direct distribution channel
and reach directly to the customers. It can be through opening its own stores or just
selling all the products online.
Hybrid Distribution System – Apml Movers should implement a hybrid model where
the critical aspect of distribution system are managed by Apml Movers, and
secondary functions such as logistics, warehousing, store management etc are
delegated to various channel partners.
2. Channel Management
Channel management is about managing various power centers within the delivery
system and managing them based on bargaining power of each player in the value
chain. The channel management from marketing perspective can be done
considering three critical aspects –
Per Unit Cost of Stocking – If the cost is high then Apml Movers needs channel
partners which can pool in resources. Otherwise Apml Movers can do the operations
on its own.
Apml Movers can use all these five communication tools to persuasively
communicate to customer – existence of the product, price of the product,
differentiating features of the product, places where people can buy the products,
and finally how consumers can effectively use the products or services.
Mission – What are the goals and Key Performance Indicators of the marketing
communication strategy.
Message – What are the specific aspects – brand awareness, product features etc,
that Apml Movers wants to communicate to its target customers.
Media – Which are the most effective media vehicle that Apml Movers can use to
convey its message to its target market.
Money – Like all other organizations, Apml Movers has limited marketing resources
so it has to figure out how it needs to spend to get the best outcome based on
specified objectives.
Measurement – How is the promotion campaign impact is measured. It can vary from
brand to brand within the organization. For example – new product campaign can be
measured on spreading brand awareness, while existing product marketing
campaign can be measured on repeat purchase or product recall.
Winning Strategy:
Effecti
ve Training:
Fulfillment of workers as the ecosystem for assistance readily available for each
employee:
• Complete satisfaction of employees increases development chances of
efficiencies of both staff members and company.
• Paternal mindset-- served as the key to the bonding on basis of culture with
reliable management.
• Providing staff members with handsome earnings and incentives such as
strategies of benefit.
• Providing staff members with intangible advantages like security of task and
employees' wellness.
• Pride of employees acts as the key consider the motivation of workers.
Customer Satisfaction:
• Quality of food drive the consumers' complete satisfaction the most i.e. usage
of food of prime grade.
• The essential drivers served as the factors of consumers' satisfaction was
primarily environment and service.
Problem Analysis:
Franchise
Expansion
Operation
Expansion
• For the growth of service, there is a requirement to explore possible areas such
as residential area locations.
• Joint endeavors are considered more accountable in comparison to franchise
such as with the chain of international hotel.
• Agarwal Packers And Movers Competing For Moving Experiences Case Study
Analysis can considerably take funds from the institutions of financing as capital
was not a matter of issue.
• Growth of service in the worldwide market like market of South East Asia with
anattention of middle to upper class department.
Development of brands with varying value proposition like Agarwal Packers And
Movers Competing For Moving Experiences Case Study Solution signature,
Agarwal Packers And Movers Competing For Moving Experiences Case Study
Solution and Agarwal Packers And Movers Competing For Moving Experiences
Case Study Solution Asian Express.
Cost
• Through the expansion of service in the suburban area locations, there will be
decrease in the site expense.
• Reducing of additional expense of advertisement.
• Use of regional material in the advancement of constructing to offer it a shape
of architecture of Japan.
• Use of in your area offered workforce for the work of carpentry.
• Purchase of design product wholesale total up to get more discounted rates of
the products.
Structure of workshops in third world countries such as Indonesia or Thailand
for production of decoration craft of Japan as brand-new service line.
Operation
• Introduce operations with fast services in order to cater the division of young
people.
• Agarwal Packers And Movers Competing For Moving Experiences Case Study
Solution can use up add-on business in order to sell conventional things of Japan
in a dedicated dining establishment areas.
• Bring variation in the menu such as addition of sushi-on-the-go, udon,
robatayaki.
• Introduction of appealing plans for old people and females.
• Intro of complimentary card of membership to use package of special deal to
its loyal clients.
Structure of local center for training particularly to train local personnel.