Medium-term directional marketing plan
The basic aim of Hutchison Whampoa’s marketing strategy for its new video conferencing product is to improve its means of distributing these products and services. This strategy will help them overcome competition as well as increase profit margins. For this purpose, there will be two major marketing strategies for Hutchison Whampoa’s new video conferencing product. The organization either will move on with its strategy to sell the new video conferencing products online or the organization will just simply improve its existing distribution channels.
In the first strategy, Hutchison Whampoa will introduce its own website where the new video conferencing products as well as the services it provides will be revealed. In this company site, customers can view the features of the new video conferencing products as well as the prices. Special discounts may also be indicated in the website. On the other hand, the second marketing strategy be focused on the existing distribution channels of the company.
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The downside of this alternative however, is that it limits the company’s direct access to the consumers. Product purchase may not be done directly between the company and the buyers. In addition, most competitors have already applied this strategy; while this may be a tested strategy, applying the same strategy may not address the aim of the company to overcome competition. Another common marketing strategy that can be used by Hutchison Whampoa is through the use of advertising.
The advertising activities of Hutchison Whampoa may cost them a lot of money but like all marketing activities, it must not considered as an expense but an initiative that will bring greater profitability for Hutchison Whampoa. The costs for impressive advertising campaigns may be tremendous but the excellent results are all worth it for the company (Humbly, 2007). Advertising campaign is the perfect method for Hutchison Whampoa for the same reason of enhancing their visibility and creating a positive effect among their customers.
In addition, advertising campaigns can be seen globally, therefore the message is translated to a greater portion of the target market of Hutchison Whampoa. Hutchison Whampoa must also be concerned with its consumer relations. These marketing strategies must be done to solidify the company’s excellent tradition of quality services. The advantage of this initiative is that it will enhance the company’s brand name and it enables Hutchison Whampoa to be identified because of the great reputation as compared to their competitors. Product Strategy.
These product strategies include (1) matching the organizational structure to the customers by anticipating and meeting the demands and expectations of the market; (2) extending design and innovation leadership by being sensitive to the trends in the consumer demand or buying behavior of the clientele adapting technological means to widen product design and innovation reach; (3) developing leading positions in all major markets by adapting competitive stance that is committed to the aim of the company to excel and be on the top of other brands, accelerating revenue growth and focus on selected consumer group; (4).
Achieving excellence in execution through consistent on-time retail delivery, ensuring best quality and the commitment and ability to go the extra mile for the customer along with maintaining the best-practice social and environmental standards, continuous optimization of the own-retail activities to best showcase the brands and products and to improve customer services (Levinson, 2007); and (5) focusing on financial performance through effective management of working capital and generation of significant free cash flow to reduce debt and optimize financial leverage as well as increasing returns to shareholders through share price performance and dividends. Distribution Plan.
Some of the means that Hutchison Whampoa can attain cost benefits are through enhancing process effectiveness and preventing some expenses. If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership. This has been the practice within the HK production through contracts with direct supplier in order to lessen the expenditures of the company spent on materials (Reichheld, 2006).
Moreover, the franchising system that the company manages internationally in initiating expansion of its market penetration and market share contributes to the current functionality of the distributions system of the clothing business through its retail outlets. Recommendations.
Recommendations as to how the new video conferencing product of Hutchison Whampoa will conduct its marketing communications plans is governed by the assumptions that using the right mix of advertising tools (TV, Internet, print and radio) will allow the company to get the best of online and offline advertising. Following is the six-month communications plan for the launching of the new video conferencing product of Hutchison Whampoa. 1st Two Months.
This is when initial collaboration with prospective advertising partners should be done. The activities will include the following: • Complete a detailed situation analysis to examine the context of the environment and to determine the need for the project. • Involve the stakeholders of the project so as to consider their needs and preferences.
• Identify alternative options of the organization so as to exhaust the available alternatives. • Set the assumptions and objectives of the project to distinguish the direction as well as the standards for project assessment. 3rd and 4th Months. Once the right mix and budget communications were decided, it is expected that at this time of the year, all the advertising outputs will be ready for their launching nationwide. The activities will include the following: • Determine project size in order to limit the concerns of the project, identify the necessary resources, and evaluate its feasibility (Smith, 2006). • Examine the available resources whether material or human that should be acquired to meet the goals of the project.
• Analyze the risks, benefits, and costs of the project so as to ascertain the project’s financial return that will assist to the long-term goals of the organization. • Develop a master plan that details the focus and concerns of the project’s goals. 5th and 6th Months. The last period of advertising campaign will focus on the maintenance and management of media relationships. The activities will include the following: • Document all the development and changes of undertaking the project at all its stages. • Coordinate planning and project efforts between all of the project participants. • Effectively and efficiently manage information, technology and people. Conclusion.
In conclusion, the resources, capabilities and business environment of Hutchison Whampoa can all contribute to the efficacy of implementing its functions. The company should then design a project plan for this strategy. Important resources that will serve as the strategy’s framework should be prepared. It is also suggested that the company develop a monitoring system, which will regularly evaluate the strategy’s progress. This will be helpful for detecting problems ahead of time as well as in implementing strategy changes or improvements.
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