Marketing Strategy Report
Creo Interactive Designs is a web designing company based in Cardiff, UK. The company was formed in the year 2000 and has developed a reputation for delivering high quality services in the field of web designing, graphics designing, customized software development and maintenance. The Internet has assumed great significance in the recent times and its relevance in business strategies is evident in the number of companies and industries going online to expand their outreach and operations.
Not only has the medium improved accessibility and communication channels, but also added a whole new dimension to sharing and disseminating information across the globe. It has changed the way people perceive markets and commerce owing to its global reach, high degree of interactivity, speed of information exchange and the ability to connect people across geographical boundaries. Creo Interactive Designs assists business in establishing an online presence that can help them achieve their ecommerce goals.
The company provides services in the areas of web designing, web site hosting, search engine optimization, identity creation and web site maintenance solutions. The management proposes to expand its services to areas of knowledge management that covers providing corporate training and development solutions to its clients. Besides catering to customized training
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2 Mission Statement and Marketing Objectives “We are passionate about our work and go the extra mile to provide our clients with a service which exceeds their expectations. We don’t take clients for granted; our goal is to provide the best solutions for the business applications that we develop. ” (Creo website, 2009) The mission statement of the company reflects its essence for being in business and how it defines its scope and level of service to the targeted consumer base. Creo Interactive Designs mission statement identifies the scope of the business and its value based service to its clients.
Clients are identified as the mainstay of the business and meeting customer expectation is one of the primary goals of the company’s marketing strategy. The company has defined the following marketing objectives: • Expand its services to global markets through the application of online customer interaction and collaboration tools. • Expand its services to knowledge management and customized business solutions for its clients. • Enhance the existing services through implementation of high quality and personalized customer service operations. 1. 3 Trends in industry
The web designing and software industry has been experiencing widespread growth and changes over the past few decades. According to World Internet Statistics, 79 percent of the total population has access to the Internet in United Kingdom. It is the second largest country in the world in terms of number of Internet users totaling 43. 2 million. With the number of internet users increasing the number of business enterprises using the Internet for their business strategies have also increased. The web has become a source of revenue for many and companies are developing online strategies to compete in the virtual marketplace.
The World Wide Web is yet unexplored in terms of its potentials in conducting online business, technologies that can further enhance its interactivity features, and networking benefits that can be expanded in future. Innovation and advancing technology continue to broaden the scope of usage and application in business strategies. Hence this service industry requires highly skilled professionals who have to ability to upgrade their skills to meet current industry challenges. New web technologies and applications govern the industry trends and service providers compete on manpower excellence to compete in the market.
The future market trends involve online tutoring services, knowledge management, content designing and online communications technologies that can be effectively used to leverage an organizations’ training and development strategies. 1. 4 Targets The strategic marketing plan will be implemented in two stages. The first stage of implementation will include the market expansion strategy using online collaborative tools and search engine optimization to drive more customers to the company’s website. The first stage will be targeted to complete in a year’s time.
In the second year, the company will focus on diversifying its services to areas of corporate training and development programs using online applications. 2. Market Research 2. 1 Target audience The company proposes to target small and medium scale businesses across all industries in the initial stages of market expansion strategy. This is primarily to gain market share and ensure delivery of quality work to establish itself as reliable and reputed service provider. Having worked on many small projects will also boost the confidence levels of the developers and quantify the success rates of the company.
This will assist the management to target bigger clients and get high value work orders. In the second stage of operations the company will target multinational companies that implement intensive training programs for its staff working across different geographical borders. Knowledge management and employee training assume great significance in such organizations owing to their scale of operations, trans-cultural operating environment, and rapid pace of technology changes that have a deep impact on their work procedures. 2. 2 Market demand and trends
Businesses across all industries are establishing their presence online that provides their customers with instant access to information on their products and services, detailed specifications of the desired service and instant interaction through web-enabled tools like live chats and user forums. Consumers can now bank online, purchase travel tickets, make hotel bookings and reservations, process financial transactions, besides purchasing consumables ranging from clothes, books, CDs, electronic products among a list of others.
E-commerce has opened new vistas of marketing management and strategic planning that enable extensive consumer reach and unlimited potential for entrepreneurs. Business owners are driven by the market demands for instant information and customer service request processing. Online environment and enabling technologies have enhanced the speed with which the customer requests can be processed and delivered. Modern economy is driven by knowledge sharing programs that provides businesses with the competitive edge and improves quality of products and services delivered.
The organizations are emphasizing the significance of human capital optimization strategies that involves knowledge sharing processes and information flow within the enterprise. “To be dynamically stable, organizations need to build their success of future revenue by maximizing the generation and flow of ideas and knowledge” (Holbeche, 2005). Managers are rapidly incorporating various methods to enable knowledge sharing within the organization. E-learning is one such area of focus for developing suitable human resource strategy to enhance employee performance.
Organizations are eager to implement E learning and learning management systems to train their workforce and maintain a competitive edge in the market through improved performance and increased productivity. 2. 3 Supporting Data The demand for e-learning tools and applications are on the rise in the corporate sector. Web enabled training environments and learning technologies provided by learning management systems and content management systems are the latest tools used in employee training programs.
Virtual learning environments using collaborative media tools such as web conferencing and video conferencing systems have not only generated employee interest in training process but also enables the organization to train its employees across geographical boundaries. The CBI market survey report for the demand of software and IT services in UK market reveals that the total market value for this segment will increase to € 6441 million in the year 2009. The industry is witnessing a compound annual growth rate of 4. 9 percent. “Future investments will be focused on collaboration and content tools such as Web 2.
0 and business intelligence tools…that can either be standalone tools or incorporated in CRM solutions” (CBI, 2008). 3. Competitor Analysis 3. 1 Identify Competitors The software and IT services industry is highly competitive owing to increased demand and revenue potential in this sector. There are multitudes of firms offering similar kind of services and hence market competition is intense. The most significant feature of this industry is the similarity of services and tools and applications used by the firms to cater to their client business needs.
“New comers are attracted by the growth potential of this industry, the strength of its positive trend and its size” (Antille, 2007). The competition is intense among small operators who compete within a localized market region. The bigger and larger companies provide a range of IT services that increase its revenue generating potential. These companies have the distinctive financial advantage that acts as a stabilizing factor in promoting its services. Creo faces stiff competition from E-Business Engineers.
com, a UK based company providing customized E-business solutions to its customers. Since both companies operate in similar markets and regions providing similar services, Creo management feels that this company will be its primary competitor besides other smaller firms operating in the region. The smaller firms however are limited in their activities to provide only web designing and development services. Hence, they do not pose much threat to the company’s proposed diversification. 3. 2 Competitive Edge
Creo is aware that a successful business strategy for IT services firm requires regular assessment of its business models, services offered, and market trends to meet the ever changing demands of the industry. Competitive edge in this intensely competitive market can only be gained through domain expertise. “With this domain expertise they will not only increase their ability to understand the nuances and specifics of that industry; they will also be able to deliver and support solutions that have a much greater value than those that make a generic approach” (IBM, 2004). 3. 3 Competitive Advantage
Creo will offer its clients high quality work through developing expertise in the required field of operation. The company will ensure this through developing highly specialized teams that have extensive knowledge and experience in the relevant fields. Another significant competitive strategy will include close liaison with the clients and their operations that will promote better understanding and client relationship. 3. 4 Unique Selling Points Creo Interactive Designs will focus on its market expansion strategies using online collaborative tools that will encourage customer interaction with project developers.
This process will enable clients to explain and discuss their business needs online with the project developers and managers who will then prepare customized solution report that meets the client requirements. Based on the chosen solution the development work will be executed, tested and delivered online. Online demonstrations and application testing will ensure that the customer complaints and suggestions are implemented almost immediately. The overall objective of this business strategy is to ensure prompt customer service and increasing market shares.
This will provide a cost effective method of providing business solution services to the clients. The company saves on traveling cost and time. 4. Marketing Strategy 4. 1 Product or service range Creo currently provides its clients with web designing and software development solutions. The company proposes to expand its services to e-business solutions that include wide range of integrated online business applications, training and development applications, search engine optimization, and content management systems. 4. 2 Price
Price is one of the most significant aspects of marketing a product and establishing its presence in a new market environment. Consumers are influenced by price tags to a considerable extent and hence an appropriate pricing strategy can have considerable influence on the performance of the product in new market conditions. The wide range of application technologies available in the market offer similar features and utilities that fail to make much differentiation in the minds of the consumers. In such cases, price becomes a major distinguishing factor.
The company will charge competitive market rates depending on the nature and complexity of the undertaken project. A fully integrated e-business solution will cost the client anything between ? 500 to ? 2000 depending on levels of integration and implementation required. 4. 3 Place Creo caters to UK based clients so far – but the company management proposes to implement operational changes as discussed in this paper to expand its operations on a global scale. It will utilize online collaborative tools to reach clients from all corners of the globe.
4. 4 Promotion Advertising and creating consumer awareness for the products in the specific markets is essential to carve a market niche. This requires consolidated efforts from the sales and marketing team. The marketing team of the company will focus on generating leads through listings in trade directories, sponsored articles in trade journals and email marketing. Consumers today are more informed and aware of where they spend their money and this information is availed mostly from online sources.
Creo will promote its services through search engine optimization tools that make the company website and related information easily accessible to distant consumers using keywords in search engines like Google. 5. Proposed Marketing Plan The brand or product positioning of an organization is an essential parameter for successful marketing strategy. This generally constitutes of how a particular product or service is better and different from its alternatives or choices available in the market. It assesses the functional aspects of the service.
A major industry trend in the IT service sector is that customers view the various application technologies available in the market as similar kind of product with little or no differentiation. Hence product differentiation in this industry becomes a complex and challenging task. Creo will distinguish itself from other competitive service providers in the market through its specialized services that focus on providing solutions that increases the returns on consumer business. The company will apply the distinctive strategies outlined in the above sections to expand its market share and increase its credibility with the clients.