For a company that wants to stay in the transportation business, maximize return on investment, and increase market share, has Mayflower successfully adapted to the deregulated environment? Is it moving into markets with good prospects? What does your group think ? AH: Yes, Mayflower has definitely managed to adapt to the challenging new environment and come up with the best possible strategy.
As mentioned in the given article that Mayflower was into transportation of corporation and domestic goods, but owing to the sensitive nature of the domestic goods market along with the problem of regulation and cheap labor subsequently, the best thing which this company could have done was minimize its losses, maximize operations and at the same time maintain its level of expertise, professionalism and brand image.
And we must say that Mayflower bosses managed to do Just that, here is how: Expertise: Mayflower convinced manufacturers that electronic equipment needs special handling in air-ride suspension vans used by house hold goods movers like Mayflower, rather than the steel spring trailers used by general freight common carriers. Professionalism: To offset the seasonality of household goods moving and to be immune to economic cycles, Mayflower expanded into the transportation of school children. Mayflower offers to rid school boards of the headaches of school bus operations and at the same time, because of its expertise, reduce cost 10-15 percent.
The potential for expansion in the market is considered very high. The public sector accounts for 80 percent of all school bus activities now. Brand image: Quicker movement of goods has also been a selling point of Mayflower. Mayflower is adding to fleet size and sales force to penetrate the market even further. Keeping in mind what the response has been from the responsible personnel at Mayflower, with regards to the mentioned changes, we would conclude that yes they are moving forward and moving forward with better prospects ahead of them. Q: What markets does Mayflower serve?
What different kinds/types of markets can you discuss ? What specifics do you look for when evaluating different markets ? Please specifically state the similarities and differences between consumer markets and organizational markets and how might a senior marketing decision maker handle the same effectively to garner gains for his/ her firm. AH Broadly speaking, Moderately serves the tolling markets * Corporations- includes big clients like IBM and Control Data, for which they transport computers, electronic equipment, and trade-show displays and exhibits. Households- provides citizens the trademark packers & movers service, locally, nationally and internationally. * Schools- one of its newest ventures, wherein it provides for school transport of students. Different kind of markets could be as follows: * Geographically segmented * Distribution segmented * Media segmented * Price segmented * Demographically segmented * Time segmented * Life style segmented The following specifics would need to be looked into while evaluating opportunities in any market: * Financial Data – How much has been spent on each of the steps of recent marketing campaigns?
What steps were the most fruitful? How many leads were collected from which marketing tactics and did this turn into new business? It is very likely that they will pinpoint less expensive marketing tactics that ended up being significantly more effective. * Goals – What was the objective of the campaigns? To get 5 new customers? To get 25 more newsletter sign-ups? Did you meet these goals? If so, what was done right? If to, what went wrong? Did they stay within budget?why or why not? * Feedback – It is possible to quantify feedback from prospects and customers that is not numerical, but rather qualitative. Reliability – How reliable has the data been? How was it collected? Were there holes in the process? How will the data collection process be improved in the future? Similarities and differences between consumer markets and organizational markets: * Why Goods are Purchased- Organizations purchase goods to use in their ongoing operations and to resell to consumers, while consumers purchase goods for their personal use. Organizations also purchase more raw materials, such as wood, steel and other items used in manufacturing, than individuals who don’t have the tools or knowledge to put those raw materials to use as a product. Bulk buys- Organizations oaten purchase in bulk, whereas consumers typically do not. For example, a consumer might buy three gallons of white paint to paint his house while an organization might need 3,000 gallons to paint shelving units for resale. The organizational market is thus more condensed–it is possible to have a business succeed catering only to a small number of organizational clients–while genuineness that typically focus on consumers sell smaller quantities to more people. Choices and use- Consumers typically purchase goods for different reasons than organizations and have more freedom in choosing the items they want. A consumer may purchase a chair so people can sit comfortably in his home. He will be able to choose any chair within his budget that he likes. An organization, on the other hand, may purchase a chair because an administrative assistant needs it to do his Job. Q: What demographic, economic, and other trends in the consumer market would be of concern to you as a Mayflower executives?
AH: As far as the Mayflower executives in the given classes are concerned, following should be their general concerns: * Movement of product- This is often the way that logistics is viewed in many companies. Rush ship an order. Expedite in a component. But there is more. Products moves should complement the corporate strategy. If the emphasis is on cost reduction, lower inventories, customer service or whatever, then products must move in a way that is consistent with the emphasis. Product must also flow, not Just move, from, to, between and among vendors, manufacturing sites, warehouses and customers.
If it does not flow, then there is not a supply pipeline. Instead there are imbalances in inventories with components and finished goods not being where they should be. * Movement of information- It is not enough to move product and materials. You must know where they are. You must know what inventories are where and if critical action is required. You must know what orders are coming in and when they must be delivered. Information–timely and accurate– is vital for sound decision-making. Time/service- The ability to respond to the dynamics of the global marketplace– hanging forecasts, customer requirements, new product introductions, new sourcing, and how to manage all these changes–must be done quickly. Raw materials and components must be ordered and arrive completely, accurately and quickly. Service is more than having to expedite a shipment. Time/service is a factor of competition, customer requirements, your company’s position in the industry, your corporate culture, how well everyone in the global supply chain works together, and how well everyone works together in your company. Cost- Cost is the key measure by which logistics effectiveness is often measured. Freight, warehouse labor, public warehouse charges and other items on the P&L. Or inventory, a balance sheet item. Cost control, containment, and management is important for corporate profitability. Fiscal stewardship is a duty of all managers. * Integration- Within your company, between you and your customers and between you and your vendors. Integration–bringing it all together–within your company is vital. Logistics is a process.
Effectiveness requires that each relevant element of the organization do its part. Q: In serving the organizational markets, what should Mayflower executives insider? How could that be different from when they consider other types of markets ? AH: Organizational markets happen to be that customer base from which Mayflower gets most of its revenue and steady business. Hence it goes without saying that they would need to provide organizational customers with the absolute best level of service and professionalism without leaving any stone unturned in the process.
Following should be a general set of guidelines which they could adhere to: 1. Total delivered cost management- It involves the ability to analyze and predict the total apply chain costs from the source of supply to its final point of distribution. It includes the capability to roll up both international and domestic logistics costs by product and delivery route, plus the ability to accurately calculate all the applicable duty, tariffs and other customs-related costs while factoring in any preferential trade agreements.
More advanced capabilities would include the ability to model and estimate inventory levels and total carrying costs. * Global logistics process automation- Global logistics leaders have deployed technology that greatly automates many of these manual booking processes, managing global transportation carriers, rates, and execution in a single environment. The ultimate goal in global logistics execution: “one touch” information flow for all activities * End-to-End visibility- What is global supply chain visibility?
It starts with the ability to answer very basic questions: Where is it? When will it arrive? Is the expected date different from the planned date? * Total Product Identification and Regulatory Compliance * Dynamic Routing- Global logistics leaders are starting to develop more dynamic routing capabilities that will allow them to “rate shop” for the most effective ambition of carriers, routes and third parties such as freight forwarders that will meet delivery constraints, in a fashion more consistent with how domestic transportation is managed. Variability management- The capability to understand and improve the long-term performance of both suppliers and logistics service providers in terms of cycle times, timeliness, quality and accuracy is central to time compression, planning effectiveness, and risk reduction. * Integrated international and domestic workflow * Financial supply chain management- While many companies have developed internal skill sets around these capabilities, we are beginning to see solutions from software vendors that provide financial supply chain capabilities and services, generally associated with modules for generating import and export documentation.
Q: Take any real product / brand in Indian context and discuss why and how the marketing-mix variables may change with the brand catering to different markets ! Please be specific. Your group can discuss the issue with a marketing manager of a firm and discuss how it operates in different markets – and how it has changed its racketing-mix variables to cater effectively to customer requirements in specific target markets. AS: We can consider the example of Phillips electronics in India.
This company has diversified operations in the domains of – healthcare, lifestyle and lighting. Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity’. The different products offered by Phillips are: Imaging Systems Home Healthcare Solutions Patient Care and Clinical Informatics Television Personal Care Audio & Video Multimedia
Domestic Appliances Health & Wellness Accessories Lamps Consumer Luminaries Professional Luminaries Lighting Electronics and Controls Automotive Lighting Packaged Leeds LED solutions Healthcare: Healthcare challenges present major opportunities in the long term Addressing the care cycle – our unique differentiator Home healthcare is a core part of our healthcare strategy Improved market leadership in core businesses Consumer Lifestyle: Leading positions in categories such as male shaving and grooming, coffee appliances and oral healthcare Further decisive action taken to reduce our exposure in the Television business Increased focus on growth, taking a granular approach by making clear investment choices Expanded business creation capabilities in emerging markets and investment in key enablers to accelerate growth Lightning: Lighting industry undergoing a radical transformation Important global trends underpinning strategy Winning in LED Philips Lighting spans the entire lighting value chain – from lighting sources, electronics and controls to full applications and solutions – via the following businesses: Lamps: incandescent, halogen, (compact) fluorescent, high-intensity charges Consumer Luminaries: functional, decorative, lifestyle, scene-setting Professional Luminaries: city beautification, road lighting, sports lighting, office lighting, shop/hospitality lighting, industry lighting Lighting Systems & Controls: electronic and electromagnetic gear, controls, modules and drivers Automotive Lighting: car headlights, car signaling, interior Packaged Leeds LED solutions: modules, LED replacement lamps At Philips CLC, the consumer facing units can be found in the Sales Organizations (So) that are the local representations of Philips CLC and the business functions (BBS) hat support operations. The involved BBS are: Direct Sales Marketing Communication Marketing Intelligence Consumer Care Relationship to concepts: The example of Mayflower and the strategy they adopted clearly highlights the importance of the marketing mix strategy for any business. The marketing mix is a business tool used in marketing and by marketing professionals.
The marketing mix is often crucial when determining a product or brand’s offering, and is often synonymous with the four AS: price, product, promotion, and place; in service marketing, Price- the amount a customer pays for the reduce. Product – A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service. For example good will for intangible. Tangible products are those that have an independent physical existence Promotion- all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion. Place – refers to providing the product at a place which is convenient for consumers to access.