Report
ACCOR Group
Strategic Analysis
Executive Summary
The report analyse the strategies of Accor SA with the consideration of its current strategies and future potential opportunities, and gives future recommendations that can be considered.The mergers and demergers that have taken place during the years have helped Accor to be one of the most successful organisations in the industry. The organisation has large portfolio of hotels starting from budget and middle class moving to upper class. However, at the moment the most profitable segment of Accor seem to be the budget portfolio, especially in the developed European countries. Thus, the expansion in developing Europe along with the growing scope of operations in China should continue as a strategy. Furthermore, the new technologies that are available should also be used, when building new hotels or refurbishing the existing ones, as it would reduce the overall operating expenses and sustain the efficiency of the business. The expansion in Europe would also help the organisation to hedge the exchange rate risk. Additionally, as the culture is one of the main pillar of expansion, the human resource training in order to deal with different cultures, is one of the current considerations. The current strategies of Accor have proved to be successful, though the competitors are following quite similar paths. The recommendations given in the report would help the organisation to choose the strategic directions, which allows keeping the position in the hotel market and to further progress being the leader.
Introduction
The main thesis of this report is to analyse, compare and contrast the strategies being adopted and implemented by Accor hotel. It will consider and discuss the internal and the external environments that influence the organisation, through the use of various strategic models. The methodology used to conduct research is a mixture of both qualitative and quantitative. See appendix 1. The report will conclude by making recommendations on how the organisation could develop in the future. In June 2010 the group was divided into two core businesses. Accor Hotels retained the hospitality business, while Edenred continued service business (Datamonitor, 2011). The capital ties between the companies were totally eliminated, so each company was able to attract investors with different goals and risk aversion level. Each firm followed different business models with the ability to establish different strategic alliances with no structure limitations (Janes, 2012).
Financials
The hospitality industry was heavily affected by global financial crisis in 2009. However, the recovery was seen in 2010 and the sustainable growth rate is expected to hold till 2015 (Datamonitor, 2011c). It might be reasonable to use the financial data since fiscal year (FY) 2009, but the data for three years is insufficient to see the full financial picture, so the scope of the analysis is extended up to FY2006.
Figure 1 – Dynamic of Net Income and Total Revenues, (% change from FY2006).
The Current market capitalization of Accor SA is €7.41 billion (Bloomberg, 2012). During the last decade the company has produced robust financial results in terms of revenue and net income (Datamonitor, 2011b). However, a dramatic drop during 2008-2009 resulted in a steep decrease in both figures – current level of revenues is significantly less than in 2006, and net income is even less (Figure 1). Furthermore, the company generated revenues of €6.1 billion during the financial year 2011, an increase of 2.6% over the previous year.
The net profit significantly decreased to €27 million in 2011, as compared to enormous €3.6 billion in 2010, when the group made €4 billion gain on the demerge of its service division – Edenred (Datamonitor, 2011a; FT.com, 2012a; FT.com, 2012b). As compared to the main rivals (Intercontinental and Choice Hotels), Accor SA has slightly lower profit margin of 6-10%, but also lower debt/asset ratio of 54.5% (FY2010), which is constantly decreasing (Datamonitor, 2011c).
The decrease in the net debt to €504 million from €266 million in 2010 is a part of the company’s two-year objective. Mr.Hennequin, chief executive of Accor SA, claimed that by the end of FY2012 the aim would be achieved and organically combined with the acquisition of the 40,000 new rooms (FT, 2012b).
Figure 3 – Revenue and EBIT by business segments, FY2011.
Current Strategies
Current strategies of the company were classified and analysed using the structure below
Figure 2.1 – Current strategies of Accor SA.
Business strategies
Service Differentiation - Accor creates differentiation not only through its distribution channels, but also by its extensive brand portfolio, from standard to premium class. This allows the company to meet a full range of customer’s expectations ( (Antoine Blachez, 2010). Through value creation strategy, the brands could produce their own value and differentiate images perceived by customers by responding to customers’ feedback and integrating their preferences.
Cost Leadership - Accor has expanded its scope to achieve economies of scale; the company can reduce cost, e.g. buying more materials with lower price, without sacrificing service quality and thus, generate more profit. However, in premium sector, Accor should not reduce the price to maintain its brand image.
Corporation strategy
Geographic Market – in orderto diversify in geographical terms, the company has increase its scope in different markets such as Europe, America, and emerging countries, such as China, India and Brazil.
Mega Brand – rather than dividing itself into small brands, Accor plans to combine brands into a strong international one, which could strengthen the overall brand image. For example, Accor replaces old identities, such as Etap Hotel, Ibis Hotel, and All Seasons Hotel, with a single brand identity – Ibis, and separates it into different levels, such as Ibis budget, Ibis standard, and Ibis style, providing different services to meet customers' various needs.
Asset light strategy – franchising and management contract - Accor gives other companies the right to use Accor's proprietary assets, mainly in Europe and United States, which are mature markets to Accor. By franchising Accor would hedge the country risk, decrease the amount of capital expenditure while sustaining the rapid pace of international expansion.In addition to franchising, the operating structure of management contract also represent 'asset light', which refers to noncapital intensive, and both of them are Accor's main expanding strategies in current phase (Antoine Blachez, 2010). In the emerging markets and the segment of luxury and upscale, the Group expands its scale mainly by using management contracts, which are 'an agreements over the management of assets or a firm owned by someone else, to avoid possible financial risks incurred by large real estate investments’ (Peng, 2011).
Networking strategies
Downstream vertical relation - Accor is devoted to create an effective relationship with customers by providing customers unique experiences and soliciting positive emotional involvement (Antoine Blachez, 2010).
Indirect horizontal relation - To reduce cost and increase efficiency, Accor adopts group-to-group strategy to partner with different groups in related industries, such as transport, entertainment, and travel-related services. Through establishing relationships with these parties, Accor could create more value and bring benefits for customers and partners.
Internal Analysis of the Company
Service Value Chain
Service value chain management is the optimization of the overheads necessary to keep the core business operational, such as cleaning, catering, engineering, preventive and reactive management, which is of utmost importance in a non-for-profit organization. Although, due to the limitations posed by multi-location operations, service contracts are negotiated locally and no proof of delivery is provided for approval of invoices. Performance of the service level agreements are usually monitored and reported by the contractors themselves. Hence, this analysis aims at understanding such issues as finding the root cause, analysing the same and arriving at practical and effective solutions.
Service Differentiation - Accor creates differentiation not only through its distribution channels, but also by its extensive brand portfolio, from standard to premium class. This allows the company to meet a full range of customer’s expectations ( (Antoine Blachez, 2010). Through value creation strategy, the brands could produce their own value and differentiate images perceived by customers by responding to customers’ feedback and integrating their preferences.
Cost Leadership - Accor has expanded its scope to achieve economies of scale; the company can reduce cost, e.g. buying more materials with lower price, without sacrificing service quality and thus, generate more profit. However, in premium sector, Accor should not reduce the price to maintain its brand image.
Corporation strategy
Geographic Market – in orderto diversify in geographical terms, the company has increase its scope in different markets such as Europe, America, and emerging countries, such as China, India and Brazil.
Mega Brand – rather than dividing itself into small brands, Accor plans to combine brands into a strong international one, which could strengthen the overall brand image. For example, Accor replaces old identities, such as Etap Hotel, Ibis Hotel, and All Seasons Hotel, with a single brand identity – Ibis, and separates it into different levels, such as Ibis budget, Ibis standard, and Ibis style, providing different services to meet customers' various needs.
Asset light strategy – franchising and management contract - Accor gives other companies the right to use Accor's proprietary assets, mainly in Europe and United States, which are mature markets to Accor. By franchising Accor would hedge the country risk, decrease the amount of capital expenditure while sustaining the rapid pace of international expansion.In addition to franchising, the operating structure of management contract also represent 'asset light', which refers to noncapital intensive, and both of them are Accor's main expanding strategies in current phase (Antoine Blachez, 2010). In the emerging markets and the segment of luxury and upscale, the Group expands its scale mainly by using management contracts, which are 'an agreements over the management of assets or a firm owned by someone else, to avoid possible financial risks incurred by large real estate investments’ (Peng, 2011).
Networking strategies
Downstream vertical relation - Accor is devoted to create an effective relationship with customers by providing customers unique experiences and soliciting positive emotional involvement (Antoine Blachez, 2010).
Indirect horizontal relation - To reduce cost and increase efficiency, Accor adopts group-to-group strategy to partner with different groups in related industries, such as transport, entertainment, and travel-related services. Through establishing relationships with these parties, Accor could create more value and bring benefits for customers and partners.
Internal Analysis of the Company
Service Value Chain
Service value chain management is the optimization of the overheads necessary to keep the core business operational, such as cleaning, catering, engineering, preventive and reactive management, which is of utmost importance in a non-for-profit organization. Although, due to the limitations posed by multi-location operations, service contracts are negotiated locally and no proof of delivery is provided for approval of invoices. Performance of the service level agreements are usually monitored and reported by the contractors themselves. Hence, this analysis aims at understanding such issues as finding the root cause, analysing the same and arriving at practical and effective solutions.
Figure 3.1.1 Service value chain
Accor hotel is aiming at setting up operations in China and providing a range of budget and luxury hotel accommodation. With world-class facility and online booking, they should be able to attract the attention of both investor and customers. With the aim of becoming a top player in the industry, only in a few years, the need for a transparent view of its performance across locations in terms of buildings, real estate, assets, engineers and overheads can be met only with an efficient and effective service chain management.
Corporate Social Responsibility
Accor foundation (AF) is a number of social programs that help communities around the world to improve and to increase their wellbeing. The programs aim to work closer with the communities and try to provide education, long-term partnerships, and so on. The AF has won many awards around the globe for the dedication to improving communities where they operate. At the same time other hotel groups are doing their part, for example, Marriott hotel’s ‘global day of giving’ helps the communities around the world, where the hotel operates, to clean streets, paint schools, and give a hand to the people in need (Sustainability Report, 2009). By the principle that ‘empowerment builds the future’ the AF helps to break the gender barriers by advocating the rights of women (Antoine Blachez, 2010). The consumer environmental concerns are driving the changes in the hotel industry by using ISO14001 or LEED (Leadership in Energy and Environmental Design), when building a new hotel or refurbishing the existing ones (Janes, 2012).
External Environment Analysis
Porter’s five forces
The large number of hotels overall makes the intensity of rivalry quite strong. Customers have a large variety of hotels to choose from, depending on their budget and what are they looking for, also the location. As listed below, there are many competitors, who possess strong position and high market shares in hotel industry, such as Hilton Hotels Corporation and Marriott International.
Corporate Social Responsibility
Accor foundation (AF) is a number of social programs that help communities around the world to improve and to increase their wellbeing. The programs aim to work closer with the communities and try to provide education, long-term partnerships, and so on. The AF has won many awards around the globe for the dedication to improving communities where they operate. At the same time other hotel groups are doing their part, for example, Marriott hotel’s ‘global day of giving’ helps the communities around the world, where the hotel operates, to clean streets, paint schools, and give a hand to the people in need (Sustainability Report, 2009). By the principle that ‘empowerment builds the future’ the AF helps to break the gender barriers by advocating the rights of women (Antoine Blachez, 2010). The consumer environmental concerns are driving the changes in the hotel industry by using ISO14001 or LEED (Leadership in Energy and Environmental Design), when building a new hotel or refurbishing the existing ones (Janes, 2012).
External Environment Analysis
Porter’s five forces
The large number of hotels overall makes the intensity of rivalry quite strong. Customers have a large variety of hotels to choose from, depending on their budget and what are they looking for, also the location. As listed below, there are many competitors, who possess strong position and high market shares in hotel industry, such as Hilton Hotels Corporation and Marriott International.
Moreover, some of the new entrants posses unique characteristics, for example, Easy hotel, which provides lowest price with a wide variety of additional options to select from. In addition, employees, who are engaged in the simple tasks, such as cleaning and opening doors, are available for the company, but there is a shortage of skilled labour. Furthermore, there is a need of staff training to equip the existing and new employees with the latest skills that the market to fit the market requirement. The skilled labour shortage is especially harsh in the emerging countries. Finally, considering the five forces of this framework, there is wide choice of hotels offering and strong buying power in hotel industry.
The PESTEL analysis helps to identify the opportunities and risks of global expansion. The analysis aims to provide Accor hotels with a strong framework, in order to develop a specific tactic for mitigating the risks involved, when executing their vision in an unfamiliar environment, for example, in China.
The PESTEL analysis has very clearly and effectively highlighted the benefits, areas of concern and potential challenges that Accor hotel might face while setting up operations in China. While it is quite clear that China is an upcoming tourist destination and has a huge appetite in the hotel industry, the local challenges and political and bureaucratic issues may pose a bit of problem for foreign investors.
While the consistent growth rate of the country and technological advancement make china and attractive FDI destination, low domestic consumption may pose a threat to sustainability. Hence, Accor hotels must consider all the factors and to ploy a strategy, resulting in optimal use of its resources and overcoming the impending challenges that may arise.
Boston Consultancy Group analysis
The BCG matrix was applied to the different geographical segments of the company.
While the consistent growth rate of the country and technological advancement make china and attractive FDI destination, low domestic consumption may pose a threat to sustainability. Hence, Accor hotels must consider all the factors and to ploy a strategy, resulting in optimal use of its resources and overcoming the impending challenges that may arise.
Boston Consultancy Group analysis
The BCG matrix was applied to the different geographical segments of the company.
Accor’s aggressive expansion projects in Brazil have led to a 43% market share in this fast growing market (Accor investor presentation, 2010). The market in China, however, as an emerging market, has a high potential for the Accor expansion especially for the middle and upper class hotels. Currently the company's presence in China is relatively low, comparing to the other Asia and Pacific countries, such as Thailand and Indonesia (Accor investor presentation, 2010). Furthermore, Accor is a leader of the industry in Europe, especially in France. The revenues from French hotels are almost equal to the total revenue from the rest of the European countries. France is a mature market and its occupancy rate is quite stable during the decade. Finally, Italy and Spain have the lowest occupancy rates in average, and relatively poor performance of annual growth.
Reccomendations
TWOS
Reccomendations
TWOS
Continue expansion in emerging European countries such as Bulgaria, Romania, and Ukraine along with franchising operations in China. In Europe it would help with reduction of the exchange risk exposure it will allow to reduce the amount of initial investment.
Hotel consultancy- There is the risk of making it simple for the new entrants to enter the industry; however, if Accor does not act, competitors will. If a large organisation wishes to diversify into hotel industry, for example, Easy Jet it would need some guidance. However if other hotels organisation might try to increase the barrier of entry it would be difficult to succeed to try and to stop organisations such as Virgin or Easy jet. Thus, it is also a good opportunity to stay a step ahead of its competitors by being the consultants.
Using the new technologies that are available also to be tailored to its location where it is being built. Because of the increasing awareness of sustainable tourism worldwide and the high pace development of modern technology, Accor should build eco-friendly hotel combined with advanced technology. For example, in China URBN Hotels in Shanghai has built China’s first carbon-neutral hotel; the Mayland Seaside Hotel under construction in Guangzhou is incorporating a fuel cell power generator that would run on clean natural gas, making it the world’s first completely carbon-neutral hotel, which doesn’t have to compensate by buying carbon credits. These type of hotels is in its beginning stage, especially in emerging countries. There is still an enormous scope for improvement and long-term prospects. Therefore, Accor should seize this opportunity to enter the niche market to be distinctive with its competitors and gain reputation.
Evaluation
The framework used for the evaluation of the recommended strategy consists of the assessment of three essential criteria – feasibility, suitability and acceptability of the strategic choice.
Feasibility
The 6M model, representing money, manpower, machinery, market, materials, and make-up, could be used to analyse different aspect of resources.
In view of money, since the “asset light” strategy could reduce capital intensity, Accor would be able to expand to the emerging markets rapidly. There is a large market size and potential market growth, which increases the possibilities for Accor to generate profit by franchising.
However, there are also some aspects Accor needs to consider. For example, there is a shortage of skilled labour and infrastructure in the emerging markets. Training of a large number of people would lead to high costs. Furthermore, the aspect of make-up may be a critical issue for Accor, if it decides to maintain its corporate culture consistently around the world, or make its corporate culture flexible to reduce resistance and impact as they expand to other countries.
Suitability
The main aim of Accor SA is to maximize the value for the shareholders. The strategy proposed for Accor SA to continue its international expansion to such emerging markets as China, India and Brazil, is appropriate, because it allows the company to use past experience and exploit its core competencies. Furthermore, the expansion, conditional on precise preliminary research, will help to reduce overdependence on the European hotel market and hedge the exchange risk by diversifying the currency basket. The strategy also takes advantage of the key opportunities of the company, such as direct access to the latest customer data in order to design an appropriate layout of the operations in the new field. It allows the company to test its franchising policy on the new markets and thus, to extend its operations without substantial capital investments.
Acceptability
To assess the degree of strategies’ acceptance, Accor should understand the impacts on stakeholders. For instance, statistics show that the growing consumer awareness concerning the environment has recently become a major influence on the service/hospitality industry. A major competitor Starwood has become a fast mover and benefits from being the leader in developing sustainable strategies. Consumers would prefer the more responsible brand to other choices. Thus, along with the trend of sustainability and the undeniable pressure from competitors, Accor's sustainable initiative strategy is far more than acceptable, but necessary.
It is the opportunity to enhance its customer awareness as well as customer satisfaction through sustainable practice accompanied by its customer-focused strategy and differentiated expansion. Furthermore, if Accor is failing to respond to the expectations on sustainability, it might loose its reputation among existing stakeholders.
Conclusion
The market to book ratio measures the investors is optimistic about the management of Accor, even under poor economic condition they have performed very well. The healthy finance and future strategies would help the organisation to be one of the leaders in the hotel market. It might be risky, if Accor pays too much attention to the emerging markets in Asia as there are countries in Europe that can be exploited such Ukraine, Bulgaria and Romania, and thus, it would be suitable to hedge the risk of exchange rate fluctuations. There are several uncertain factors that could influence the international expansion of Accor, such as culture differences, regulation and economy situation. Especially in China the usage of new technology and more market research would make the entry more productive. A large number of different models throughout the report are used to paint a clear picture for the reader. Moreover; the company may face intense competition from first mover hotels groups such as Hilton, Marriot and so on. Accor’s strategy of separating different classes into different brands is a good way to reduce risk of entire company, on the other hand it decreases the identity of Accor group and customer loyalty. The recommendations would help the Accor group to stay ahead of their competitors by implementing new ways of doing business in the hotel industry and having unique selling points to attract more customers.
Hotel consultancy- There is the risk of making it simple for the new entrants to enter the industry; however, if Accor does not act, competitors will. If a large organisation wishes to diversify into hotel industry, for example, Easy Jet it would need some guidance. However if other hotels organisation might try to increase the barrier of entry it would be difficult to succeed to try and to stop organisations such as Virgin or Easy jet. Thus, it is also a good opportunity to stay a step ahead of its competitors by being the consultants.
Using the new technologies that are available also to be tailored to its location where it is being built. Because of the increasing awareness of sustainable tourism worldwide and the high pace development of modern technology, Accor should build eco-friendly hotel combined with advanced technology. For example, in China URBN Hotels in Shanghai has built China’s first carbon-neutral hotel; the Mayland Seaside Hotel under construction in Guangzhou is incorporating a fuel cell power generator that would run on clean natural gas, making it the world’s first completely carbon-neutral hotel, which doesn’t have to compensate by buying carbon credits. These type of hotels is in its beginning stage, especially in emerging countries. There is still an enormous scope for improvement and long-term prospects. Therefore, Accor should seize this opportunity to enter the niche market to be distinctive with its competitors and gain reputation.
Evaluation
The framework used for the evaluation of the recommended strategy consists of the assessment of three essential criteria – feasibility, suitability and acceptability of the strategic choice.
Feasibility
The 6M model, representing money, manpower, machinery, market, materials, and make-up, could be used to analyse different aspect of resources.
In view of money, since the “asset light” strategy could reduce capital intensity, Accor would be able to expand to the emerging markets rapidly. There is a large market size and potential market growth, which increases the possibilities for Accor to generate profit by franchising.
However, there are also some aspects Accor needs to consider. For example, there is a shortage of skilled labour and infrastructure in the emerging markets. Training of a large number of people would lead to high costs. Furthermore, the aspect of make-up may be a critical issue for Accor, if it decides to maintain its corporate culture consistently around the world, or make its corporate culture flexible to reduce resistance and impact as they expand to other countries.
Suitability
The main aim of Accor SA is to maximize the value for the shareholders. The strategy proposed for Accor SA to continue its international expansion to such emerging markets as China, India and Brazil, is appropriate, because it allows the company to use past experience and exploit its core competencies. Furthermore, the expansion, conditional on precise preliminary research, will help to reduce overdependence on the European hotel market and hedge the exchange risk by diversifying the currency basket. The strategy also takes advantage of the key opportunities of the company, such as direct access to the latest customer data in order to design an appropriate layout of the operations in the new field. It allows the company to test its franchising policy on the new markets and thus, to extend its operations without substantial capital investments.
Acceptability
To assess the degree of strategies’ acceptance, Accor should understand the impacts on stakeholders. For instance, statistics show that the growing consumer awareness concerning the environment has recently become a major influence on the service/hospitality industry. A major competitor Starwood has become a fast mover and benefits from being the leader in developing sustainable strategies. Consumers would prefer the more responsible brand to other choices. Thus, along with the trend of sustainability and the undeniable pressure from competitors, Accor's sustainable initiative strategy is far more than acceptable, but necessary.
It is the opportunity to enhance its customer awareness as well as customer satisfaction through sustainable practice accompanied by its customer-focused strategy and differentiated expansion. Furthermore, if Accor is failing to respond to the expectations on sustainability, it might loose its reputation among existing stakeholders.
Conclusion
The market to book ratio measures the investors is optimistic about the management of Accor, even under poor economic condition they have performed very well. The healthy finance and future strategies would help the organisation to be one of the leaders in the hotel market. It might be risky, if Accor pays too much attention to the emerging markets in Asia as there are countries in Europe that can be exploited such Ukraine, Bulgaria and Romania, and thus, it would be suitable to hedge the risk of exchange rate fluctuations. There are several uncertain factors that could influence the international expansion of Accor, such as culture differences, regulation and economy situation. Especially in China the usage of new technology and more market research would make the entry more productive. A large number of different models throughout the report are used to paint a clear picture for the reader. Moreover; the company may face intense competition from first mover hotels groups such as Hilton, Marriot and so on. Accor’s strategy of separating different classes into different brands is a good way to reduce risk of entire company, on the other hand it decreases the identity of Accor group and customer loyalty. The recommendations would help the Accor group to stay ahead of their competitors by implementing new ways of doing business in the hotel industry and having unique selling points to attract more customers.
A comparison of dominant approaches used in managing people in Qatar and United Kingdom
If drawing an analogy with countries and organisations, it is interesting to notice that people are the “blood flow” of both systems. Although the nature and culture of the entities might be different, the importance of maintaining the “blood flow” cannot be underestimated. The evolution of the economies from agricultural to industrial, and from industrial to service and knowledge oriented has prompted sufficient investments to train and educate human resources in order to equip them with the required skills. The means of managing people are different from country to country as their cultures are diverse, though for the nation to be successful it needs to have the right resources in place and to continually acquire the new ones to increase and obtain the most valuable assets, in this case people.
The aim of this essay is to compare and contrast the dominant approaches that are used to manage people in two different countries. The countries are chosen for some similarities that exist between them and some very different ways (approaches) that both use when it comes to managing employees belonging to the companies in these countries. Qatar is one of the emerging countries that is heavily investing in human resource management (HRM) as it is considered to be a significant asset for the future growth in the global market, underpinning high dependency on international oil market. As the economy is becoming more open, and new investment flows become more sustainable, HRM is seen as a pillar of Qatar’s new strategic reorientation (Abdalla, 2006). On contrary, the UK is one of the leading countries that has been embracing new developments of HRM for a long time. It has been critically suggestive to the UK to invest in HRM while moving from a heavily industrial to service and knowledge economy; otherwise it would be impossible to reach desired outcomes to be the leading country in such economy as mentioned above.
Hofstede 5m model (see Table 1) suggests cultural dimensions when analysing how work values are impacted by various societies. The model shows that the power distance in Qatar is very high due to the fact that a high percentage of the organisations use a hierarchy organisational structure where a social standing and position hold a lot of weight. Especially the government owned organisations have a centralised control where employees know their position on the work ladder and they know who the boss is because every decision has to be approved and finalised by a higher up chain manager (Kabasakal & Dastmalchian, 2001). Similarly, managers in the UK hold a distance with their subordinates formally, though encourage employee participation at the individual level and hence exercise democratic leadership (Taylor, 2012).
Qatari citizens have more rights than foreigners when applying for job or a promotion. In addition, they have higher wages than the expatriates that work in the same organisations (Budhwar & Mellahi, 2006). The UK work force is very diverse, the public and private sectors are working hard to reduce the level of inequality in work places by giving equal chances and same treatment to their employees without looking at their nationality or gender. Furthermore the majority of public sector managers in Qatar are natives and they have more rights and power compared with the UK public sector managers who are not provided with a monopolistic power due to the strong state regulations and trade union power. However, as for the private sector, power distance is high in the UK where managers have a lot of power especially in the service sector.
The dominant approaches that managers in Qatar seem to use are control and command models whereas in the UK they seem to be communication and attitude. For example, in a private or public sector an employee can challenge the manager as the British are highly individualistic and private people. This is an effect of England being a high masculine society where everyone have a thrust to succeed to be the best in what they do, the best in the field. Qatar is considered having a collectivistic society which things of a long term goals, at the same time it makes it difficult for an employee to challenge as it will challenge the whole group not just the manager. Apart from being a collectivism society they have high feminist society where every one cares for others, not celebrating winnings alone but in a group. Mead (1951) suggested that culture “is a body of learned behaviour, a collection of beliefs, habits and tradition, shared by a group of people” (Brooks, 1999) and according to Swartz and Jordon (1980) interpreted as “norms shaping behaviour” (Woodhams, 2010).
The culture plays a large role as it is human oriented and this is shown by their welfare system which provides free social service, bails for business that fail and so on. The UK culture at work sticks to innovative style; employees are expected to come up with ideas when there is a problem, and they are empowered to make changes that would be beneficial not only to themselves but to other colleagues and an employer. In some organisations the best solutions have come from the employees that work on the shop floor or their innovative breaks (one to two hours a week to work on their own projects) (Maclean, 2012). In the public sector the union is still powerful as it can be seen from the cases of police demonstrations, underground trains, council workers, and so on. Furthermore, in private sector the union has low power compared to public however should not be taken for granted as it is shown in the case of British Airways.
The managerial style and organisation practice are highly influenced by the Islamic religion, bureaucracy ideals, and the state modernization attempts since late 1990 (Abdalla, 2006). As it has been seen from the table the value of verbal evidence is very high as they believe in honesty and have high trust in others because they have a high loyalty to the circle. Regarding the style of the work system (Abdalla and Al-Homoud, 2001), Abdel-Rahman (1994) argues that the managers encourage division of work by clarifying the authority and responsibilities, also the importance of punctuality and efficiency in organisations. However according to Abdalla and Al-Homoud (2001) they have a weak orientation towards planning and accountability which leads to work environment that seems to be quite modern but does not execute the responsibilities (Abdalla, 2006). The approaches and the different management types in Qatar and the UK have one thing in common: to make the employees think in the same pattern and to work together with the management teams to reach a goal as a team (Edmondson, 1999). Indeed, the history of HR in the UK has had to change its priorities and reconsider its activities by re-inventing itself continuously. This has been largely in response to external socio-economic factors beyond the immediate control of HR practitioners or senior managers. On the other hand the HRM in Qatar is on the way of improvement to help the country with the change in the people management through the change of the economy orientation.
Developing a marketing campaign for the South of Thailand (ST)
After watching a video that promotes Thai tourism (“Amazing Thailand”) as a group we decided to do tourism destination campaigns for ST as it seemed appropriate to our target market. The chosen destination was considered as the favourite after a long debate during the decision making process for the desired destination. The objective of the campaign is to promote ST to countries that do not have warm weather all year around, and to provide them with an opportunity to discover the white sandy beaches and explore the rich marina. The aim of the campaign is to increase the number of visitors from low temperature countries, putting Southern Thailand on the map for the place to go to for a hot weather. In addition the campaign will raise awareness of the region internationally and introduce Thai culture to the world. The target market countries are Canada, Scandinavian countries, Northern China and Russia, where the winter lasts for three to four months, usually from November to February. The number of tourists that travels to sunny countries from these places would be higher due to their weather and their expenditure for holidays abroad is higher, especially in Scandinavian countries and Russia.
The unique selling points of ST include lower prices for hotels compared to the other destinations that we choose for comparison, the high temperatures, culture, cuisine, and so on. The commitment of the Thai government to the tourism industry especially in the southern part by building new roads and not allowing the construction of new hotels higher than five floors to protect from major weather disasters, makes ST a must visit place on earth. The government has shown a readiness to learn and welcome tourists in both a small and large numbers. The destinations that we chose to compare ST to are Cornwall and Hawaii as both these destinations are closer to our target market. To gain a better idea of ST and how to lunch the campaign we used SWOT to analyse the internal and external factors. The competitive advantages which analysis of other tourist destinations around the world will provide would help to make our campaign more attractive through targeting the right market. As a developing country the councils around the tourism destinations would need to training to prepare the locals on how to work closely with each other and to deliver a great service by providing things that appeal to the target market. The tourism industry has both a good and bad impact. Some of the benefits include conservation of the marina, buildings, and so on. The disadvantages would include a possible abuse of law and regulations, an increase in litter, and deforestation in order to make room for new hotels. The best way to lunch the campaign was to use the TV, radio, magazines adverts, the usage of the internet by using different websites which are recognized by official bodies, and social networking sites such as Facebook Twitter.
Team work
Working in a team might create an impression of an easy approach to the work process at first sight. Indeed, a problem shared is a problem halved. If the group benefits from the skills and abilities each member possesses the group task will prove to be both simple and enjoyable. If the team has a mutual aim to get a good grade each individual will put substantial effort into the work and will perform well. The best technique to manage the team is not in a hub way but a web one where the team is self-directed, and interdependent.
In the initial meeting, we discussed: a name for the team, a appointed a team leader, and built a sense of common purpose. I suggested that the best ways of group communication was to sign in on a Google document where everyone can be updated instantly; roles delegation and setting the mid-deadlines were my idea as well. I kept the minutes for the first meeting to record what was said and planed for the next meeting. The second meeting resembles the first one, by the end of the meeting a clear plan was developed, fresh materials were shared among the members and I was appointed the leader of the team. Throughout the following few meetings, we kept a track of the jobs completed so far and started resolving team conflicts at the same time. There was a good input from a group member who came up with a twist to make the presentation to stand out from other groups. After a long meeting where I wrote down pros and cons of the idea and presented to the team, the group approved it.
Throughout the process I was encouraging a rapid response from the team members to eliminate problems and save time. I learned that working closely r and having a high communication within a team, the reward is priceless. Learning from other team members with different cultures and backgrounds was an eye opener for me; I learned how to be more productive and thoughtful. However, not all the meetings ran smoothly: a team member not finishing their assigned part, turning up late or not attending the meeting at all without any previous notice. I asked the team member who was consistently causing problems for the team if we could have a separate meeting to discuss if there was a reason why the work was handed in late and for their poor timekeeping. I wanted to see if we as a group or one of the members could help to overcome their problems personally learned from such scenarios that the best way to deal with difficult situations is to look for solutions and to keep calm.
To conclude, there were meetings that were very successful due to the fact that everyone did their part or at least tried to do it, and there were meetings that were difficult. I personally learned that the best way to deal with a difficult situation is to look for solutions and to keep calm. Simultaneously it was an amazing opportunity to look at the work process with the eyes of a third person, critically and without bias. I believe these traits, inherent in management practice, are highly valued in the business world.
After watching a video that promotes Thai tourism (“Amazing Thailand”) as a group we decided to do tourism destination campaigns for ST as it seemed appropriate to our target market. The chosen destination was considered as the favourite after a long debate during the decision making process for the desired destination. The objective of the campaign is to promote ST to countries that do not have warm weather all year around, and to provide them with an opportunity to discover the white sandy beaches and explore the rich marina. The aim of the campaign is to increase the number of visitors from low temperature countries, putting Southern Thailand on the map for the place to go to for a hot weather. In addition the campaign will raise awareness of the region internationally and introduce Thai culture to the world. The target market countries are Canada, Scandinavian countries, Northern China and Russia, where the winter lasts for three to four months, usually from November to February. The number of tourists that travels to sunny countries from these places would be higher due to their weather and their expenditure for holidays abroad is higher, especially in Scandinavian countries and Russia.
The unique selling points of ST include lower prices for hotels compared to the other destinations that we choose for comparison, the high temperatures, culture, cuisine, and so on. The commitment of the Thai government to the tourism industry especially in the southern part by building new roads and not allowing the construction of new hotels higher than five floors to protect from major weather disasters, makes ST a must visit place on earth. The government has shown a readiness to learn and welcome tourists in both a small and large numbers. The destinations that we chose to compare ST to are Cornwall and Hawaii as both these destinations are closer to our target market. To gain a better idea of ST and how to lunch the campaign we used SWOT to analyse the internal and external factors. The competitive advantages which analysis of other tourist destinations around the world will provide would help to make our campaign more attractive through targeting the right market. As a developing country the councils around the tourism destinations would need to training to prepare the locals on how to work closely with each other and to deliver a great service by providing things that appeal to the target market. The tourism industry has both a good and bad impact. Some of the benefits include conservation of the marina, buildings, and so on. The disadvantages would include a possible abuse of law and regulations, an increase in litter, and deforestation in order to make room for new hotels. The best way to lunch the campaign was to use the TV, radio, magazines adverts, the usage of the internet by using different websites which are recognized by official bodies, and social networking sites such as Facebook Twitter.
Team work
Working in a team might create an impression of an easy approach to the work process at first sight. Indeed, a problem shared is a problem halved. If the group benefits from the skills and abilities each member possesses the group task will prove to be both simple and enjoyable. If the team has a mutual aim to get a good grade each individual will put substantial effort into the work and will perform well. The best technique to manage the team is not in a hub way but a web one where the team is self-directed, and interdependent.
In the initial meeting, we discussed: a name for the team, a appointed a team leader, and built a sense of common purpose. I suggested that the best ways of group communication was to sign in on a Google document where everyone can be updated instantly; roles delegation and setting the mid-deadlines were my idea as well. I kept the minutes for the first meeting to record what was said and planed for the next meeting. The second meeting resembles the first one, by the end of the meeting a clear plan was developed, fresh materials were shared among the members and I was appointed the leader of the team. Throughout the following few meetings, we kept a track of the jobs completed so far and started resolving team conflicts at the same time. There was a good input from a group member who came up with a twist to make the presentation to stand out from other groups. After a long meeting where I wrote down pros and cons of the idea and presented to the team, the group approved it.
Throughout the process I was encouraging a rapid response from the team members to eliminate problems and save time. I learned that working closely r and having a high communication within a team, the reward is priceless. Learning from other team members with different cultures and backgrounds was an eye opener for me; I learned how to be more productive and thoughtful. However, not all the meetings ran smoothly: a team member not finishing their assigned part, turning up late or not attending the meeting at all without any previous notice. I asked the team member who was consistently causing problems for the team if we could have a separate meeting to discuss if there was a reason why the work was handed in late and for their poor timekeeping. I wanted to see if we as a group or one of the members could help to overcome their problems personally learned from such scenarios that the best way to deal with difficult situations is to look for solutions and to keep calm.
To conclude, there were meetings that were very successful due to the fact that everyone did their part or at least tried to do it, and there were meetings that were difficult. I personally learned that the best way to deal with a difficult situation is to look for solutions and to keep calm. Simultaneously it was an amazing opportunity to look at the work process with the eyes of a third person, critically and without bias. I believe these traits, inherent in management practice, are highly valued in the business world.
The advantages and disadvantages of traditional and online methods of marketing research
Market research plays a major role in marketing department; it helps the marketers with the future decision and marketing campaign design. The marketers need to find the best method or methods to use to gain the maximum and to reach their aim. The market research is very important for the tourism industry especially at present, as travelling from one country to another is easier and cheaper. An increase in a country’s wealth would lead to the rise in the export of tourism from that particular country (Rittenberg & Tregarthen, 2007). Furthermore, the increasingly relaxed border controls, particularly in Europe, has enlarged the pool of destination choices. The tourism industry has become more competitive since additional countries began opening their doors to tourists; at the same time these countries are heavily increasing their advertising and market research budgets (Euromonitor, 2011). This leads to a growth in pressure on market researchers to find the best ways to conduct market research, either using the traditional method, the Internet or a mixture of both. This essay will look at advantages and disadvantages of the traditional marketing approach and the usage of the Internet for market research purposes. In addition, the work will consider the methods that are being used to gain more comprehensive information. The literature and examples will be spread throughout the essay to make it reasonable and substantial and to support the essay.
According to Crawford (1997) “Marketing research is planning, collecting, and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management”. The quality of the data is very important for an organisation as it can enhance or ruin brand reputation, reduce value of the products or services and so on. The attempt by Coca Cola to change the classic red can colour to white at the beginning of the year was a big flop for the company, the market research came back with the results that people would like to see a white can instead of the traditional red can for original coke (Karimzadegan, 2012).
The research showed that customers thought that the white can was a representative of a diet coke and after that Coca Cola started pulling the white cans from the shop shelves and replaced them with the traditional red can. The main research approaches that are used by market researchers are shown in the table1; this is made possible by using the internet method and the traditional method.
Table 1 (McDonald & Stewart, (2003), Shaw (2012))
Table 2 ((McDonald & Stewart,( 2003), Lockett & Blackman, (2004), Carlos, (2007))
1) Yes - it applies
2) N/A - does not apply
3) The measurement monetary cost from 1 very low, 2 low, 3 high, 4 very high, it depends on the method and the approach.
4) The measurement time from 1 very slow, 2 slow, 3 fast, 4 very fast, the time that it takes to collect the information and the respond from the participants.
5) The table shows the difference in time and cost between traditional methods and the internet, also some of the methods can be used by both traditional and internet.
The benefits of traditional market research such as mail, experiment, and observation, are high, and they are largely used in emerging countries (Nakata & Huang, 2005). If a market researcher wants to find out about a specific experiment by choosing a particular segment in tourism industry the traditional method would be a better choice. For example, to find a new way for pensioners to spend the weekend, trips to the beach or the mountains would be organised by a local tour operator to see if the ideas are worth investing in and which one is preferable. Some organisations such Protect and Gamble, Durex, Pantene, send sample of their product to the customers to try before they buy by or sample to use in return they ask for a feedback for the product the only way this can be done is by mail.
Using evaluation and feedback would be more appropriate in this case rather than email, or web based survey such as survey monkey or alternative. The mail compared to the email has higher response and lower undelivered responses when the research is done for a particular target market. McDonalds and Adams (2003) research concluded that the level of response from the football club fans for the mail was 46% where for the email it was 21% and the difference on undelivered or invalid email was also high with 0.5% mail and 18% email respectively. To reach people that do not have access to Internet either in developed countries or emerging ones the traditional method is the only way to do the research. A survey carried out by Smith (1997) found that the capabilities of the software in existence at that time, for example the e-mail flat text and questioner constrained formats were responsible for the low response rate (Ranchhold & Zhou, 2001). The software that emails are using these days is very advanced, the question can be modified to a specific subject that the marketer is researching, and can be conducted through sites such as surveymonkey, TolunaQuick, Smartsurvey. The online survey has also limitation such as not letting to use more than ten questions for the free version, the wording and the layout is limited, etc.
The traditional method yields greater accuracy in the data collected compared with the Internet, especially when observing or interviewing (Suzuki, Ahluwalia, Arora, & Mattis, 2007). The observer would ask questions that would be more suitable to the situation and the information that they might need to bring value to different projects. As the process happens live the data collected is more accurate, because the response would be based on particular experiment or usage of a particular resort. A researcher can use multi methods to find as much information for a particular product as he can, this would help with the future decisions. Observing the data that is collected by traditional methods such as survey, focus group, interview, and etc. can reduce the bias when compared to internet where it might be difficult to use multi-methods at the same time (Kraut, 2002). When using traditional experimental and observation methods the researcher can trace back to the original source to check accuracy or to ask follow up questions for further research to enhance the results (Brink, Van Der Walt, & Van Rensburg, 2012). Furthermore if the research is undertaken by the organisation the data collected would be an asset for the organisation and at the same time the competitors would not be able to see the results.
It also depends on the research, for example if the researchers want to conduct an interview or send mail to a specific target market such as businessmen/women that work in an organisation of import and export. The researcher wants to find out from the organisation that involves transaction of different currencies to buy and sell. It will need to make arrangements for interviews, ask for access to their postal addresses, set up places for the interview and so on. The Xenon organisation tried to gather data from businessmen/women that were using the exchange website for their credit card charge by providing free exchange rates. For registered users the organisation would mail brochures filled with surveys and up to date information about the exchange rates around the world. However the usage of the traditional methods would be very expensive, they were likely to achieve a very low response rate due to the barriers mentioned above, including risk of bogus data, time consuming, and privacy reasons and might be perceived by respondents as overly intrusive (Lockett & Blackman, 2004).
The usage of the Internet has made it less costly and has allowed marketers to obtain a large quantity of data, both low and high quality, more quickly and easily than ever before (McDonald & Stewart, 2003). The financial and time costs of sending email, preparing a web survey and questions, and observing by using the Internet are very low for the large organisations; at the same time obtaining the resource based capabilities in a house makes it easier to conduct marketing research by using the internet.
The usage of the Internet surveys has reduced the time it takes to prepare and analyse the collected data, while the survey is live online the researcher can deal with other tasks (Fricker & Schonlau, 2002). When the questions are completed online from the participants the data is already in electronic format and can be downloaded instantaneously into the database for complex analysis. Also it will improve the accuracy in encoding the data (Wilson & Laskey, 2003). The online survey cannot focus at a particular market segment as it might be assumed that all members of the group are the same. The usage of smart phones and tablets that access internet wirelessly or through their network could be the next target for market researchers to gain data for a particular segment of customers. By using location finding software which would make it possible to target the right places where they need to gain more data for a particular resort (Linoff & Berry, 2009). Also by using their holiday history which can be accessed via the social network sites or tourist information websites such as trip advisor, Thomas cook, TUI, Expedia, and so on.
The data mining helps the marketers find patterns, useful information, trends, and relationships by sifting through very large amounts of data (Seifert, 2004). The data is can be collected for a particular objective or for many different reasons and objectives. The usage of sophisticated data analysis, specialised software and specialists that are trained to turn the data into useful information can be a great resource for the market researchers. The data that is collected by using the internet needs to be stored and analysed before it can be used. The software and the storage are very costly for small organisations as they might need to outsource the facilities. The data is collected mostly by large organisations such as Experian Hitwise, Google, Netcraft, Apple, TUI, Thomas cook, Rnking.com, Alexa, etc. (Carlos, 2007).
The competitors can easily gain access to the same data if the research is done by a third party, as the initial organisation that paid for the research might not own the full rights of the data. (Self, 2008)
The usage of the traditional methods such as the mail survey, observation, and experiments might see a decrease due to high costs, increased emissions, and wastage however it cannot be ruled out that they still play an important role when it comes to specific target market. Especially for small organisations that have a niche customer base however marketers need to find new ways of its usage. There are no such rules as to stop or control market researchers to use one method, or any claims that one method can suit all; an organisation needs to find the best method to use for high quality data, accuracy and their uniqueness. The increasing usage of technology by marketers as research tool needs to be explored further to discover how it can be used at its best.
The Whitworths brand strategies analysis
The company, Whitworths, is a pioneer in design, preparation and packaging techniques when it comes to dried fruits and flour for home baking and healthy snacks. The diversification has helped the organisation to cater for a large market share in the home baking and healthy fruit snacks with their innovative products such Nibl, Frootz and Great Scot. Currently the company is one of the leaders in the dried fruit industry (Bainbridge, 2009). This essay is going to analyse the brand strategies that Whitworths has in place for the present and the future. Furthermore it will include models and examples of techniques to increase and measure brand awareness. The literature will be spread throughout the essay; a quantitative methodology was used to gather the information and the pictures from the secondary data.
The power of the brand is high and hence it plays an important role when it comes to the product positioning because the majority of customers that purchase Whitworths are retailers with 70% of the sales selling directly to customers (Carter, 2007). A dot over “i” (figure 1) depicted in the shape of a heart makes the logo more attractive as the image corresponds to the core brand message: “At the heart of great food”.
The lack of consistent presentation of the brand across the portfolio during the past few years has been at the risk of confusing the customer (figure 2). Working closer with the researchers, developers and the retailers will increase the clarity for customers by strengthening the company’s identity as well as innovating within their product range (Carter, 2007). As the consumers are seeking out healthy and nutritious snacks Whitworths has managed to penetrate the market by introducing the Nibl (figure 3) and Disney Juice; a partnership with Disney represents commitment to leading the way in the healthy snacks (Kil, 2005). Brand extension can have a positive effect if kept under control, however if the brand is imprinted on products that are not yet tested or marketed to the public it will affect the brand loyalty, decrease value and equity and reduce reputation (Marconi, 2000). The new CEO in 2006 the company started to change the packaging design and began working closer with retailers in search for the best place for their product on the store shelves. He has raised a number of key points: either to leave the products all together or spread them out by placing them in more than one location, e.g. the children products would be moved closer to other chilldren products or located throughout the stores. He wants to add value to the brand by making it more transparent to the customers, and by repackaging the products it will reduce the inconvenience.
The brand is a source of value for the organisation and it reduces the risk because the reputation of the brand is a source of demand and lasting attractiveness (Kapferer, 2003). The brand’s value is an intangible asset for the organisation; figure 4 shows the supremacy of the good will, of the world’s largest organisations such as Coca Cola, Amazon, etc, compared with net tangible assets (figure 5).
For a mature company there is the need to identify additional usage of the brand or show that the organisation is still working hard to increase their market share and brand knowledge. By role playing its competitors it would be able to identify the points of difference if whitworths flips this around their point of differences become Whitworths point of parity (Keller, 2001). This must take place before the brand awareness and brand knowledge has started to decrease, otherwise it will take longer and a larger investment to regain the market share. The organisation should try hard to obtain the market share while controlling a large market share by identifying their threats and weaknesses, and also by seeking new opportunities for continuous improvement, by using the strengths and knowledge held by the organisation.
The marketer needs to find the right position in the customer’s mind to plant the brand knowledge by market segmentation and targeting the right customer, either new or existing one. Brand communities will help the organisation to increase brand awareness among their customers by using hub, webs and pools. The larger supermarkets such as Asda, Tesco, and Sainsbury’s are producing their own branded bags of dried fruits. This is a sign of an increase in the competition; hence it would be harder for Whitworths to compete with the rivals due to a price war. In addition, the location of the products would have an effect on the brand recognition and clarity comparing with other brands, and the power shift from the producer to the retailer.
A blog or a website sponsored and run by the organisation, which can include prizes and vouchers where home cooking cakes or other food that comprises Whitworths’ products would be advertised, could attract the customers who would interact with each other and share their ideas. To make it more active and engaging, a chef could be hired to post recipes, answering related questions, sometimes even having a live chat with the website visitors. It could also be used by the marketing department to undertake a market research for the existing and new products.
Whitworths’ large portfolio and the brand power can help to migrate customers within the range of existing products offered that have been in circulation longer than the new products. The idea is to transfer and attract new customers to the portfolio, and also to encourage sponsorship and other marketing methods mentioned above. To add value to the organisation every product needs to have a distinct design and campaign to increase market share and to achieve better results by increasing brand knowledge and awareness. An advert showing more than one generation using the Whitworth products, starting from the great grandmother to the younger child in the family (figure 6) demonstrates the history of the company and therefore raises brand attachment. A retro of the brand by using nostalgia as the main weapon indicates the relationship with the brand that has gone from one generation to another. “Consumers form relationships with brands, they use norms of interpersonal relationships as a guide in their brand assessments” (Aggarwal, 2004).
The marketers have to send out the message of the brand survival (figure 6) by introducing noticeable stimulus via media, magazines, word of mouth, websites or blogs and so on. The history of the brand and the nostalgia would suit Whitworths well. The chances of children using the same products as their parents are very high due to a trust built during the years (Lindstrom & Seybold, 2003).
The past investment has planted the seeds in the consumer’s mind and has created the brand awareness, which consists of the recognition and recall of the brand. The bridge created by the brand equity that takes into account the reflection of the past and then works as a direction for the future of the brand, assists the marketers with their decisions (Keller, Aperia, & Georgson, 2012). Well-constructed communication would increase the chances of a successful strategy.
Brands are need-satisfiers as their Inherent characteristics that are aimed at meeting various needs of the consumers are often associated in their memory with the brand name (Franzen & Bouwman, 2001, Rose, 2004). The brand associations in figure 8 would aid the marketers to increase the brand awareness and could be used as tools for the future strategies. Likewise the brand association can be used to measure the marketing influence on the customers. The brand association would also come into play when a decision is made but needs to be justified; a brand representing something would reduce the justification to minimum (Franzen & Bouwman, 2001). Additionally, the brand associations can be used to measure the marketing influence on the customers by analysing and considering the association compared to their aim of the marketing campaign. Have they succeeded in delivering their goal? Is the campaign relevant?
The associations that are positive in the original products might become negative in the extension context from the consumer transferred associations for an extension (Keller, Aperia, & Georgson, 2012).
Restall and Gordon (1993) argue that “Brands are not found in the factory or in the studio, the sales channels or the supermarket shelves – not even on the television screen. You only find them in the mind of the consumer” (Patterson & O'Malley, 2006). The aim of the marketers should be to communicate Whithworths brand to the long memory of the existing and new customers. So next time they think of buying dried fruits they will search in their memory or surroundings for brands that might solve the problem or fill their needs (Franzen & Bouwman, 2001). The figure 9 shows some of the steps that a customer goes through before he/she decides on the product and the brand. The marketing team needs to design the campaign that would have an implicit affect on the customers’ decision-making process when choosing the products produced or sold by Whitworths. At the same time several researchers argue that the consumers’ decision might not be as straightforward, because other things are happening at the same time as the decision is going through the funnel (customer’s mind), such as the level of hunger, the place, time, the environment, purchase level and so on.
The marketers will need to track the progress of the ideas and programmes they implemented to increase the brand knowledge, clarification, and awareness. For an organisation the equity that is derived from the brand either mental equity or financial equity is very important. The value brand chain will assess the source and the outcome of the brand equity to assist and support management that may need different types of information (Keller, 2008). In addition, the Customer Mindset and brand audit would determine the changes and have those changes manifested themselves in customer’s mind-set or there is more work to be done from marketing programmes (Keller& Georgson, 2012). The brand inventory and brand exploratory company and customer future prespective, these would assist the marketer to determine the future of the brand.
A brand mantra and core association can create a lasting identity for products and it might also go as far as replacing the usual vocabulary a customer might use. For example, instead of saying have a snack, a customer might say have a Nibl, or if you just want a healthy snack – be sure remember Whitworths (Tudor Rose, 2009). The goal of the marketers is to increase the brand knowledge and awareness by using the brand equity and brand core associations, and to find the unique selling point of the products. The market segmentation and position will increase the profit for the organisation by targeting the right customer. The brand performance and measurement techniques would help the marketers to analyse the progress of the brand. The brand is an intangible asset for the company; the marketers should take a central stage when it comes to major decisions for the future of the organisation.