Changing Perspectives In Marketing Planning 3h33m

Rangs Electronics (Authorized Sony Dealer) Location: Ground Floor, Rifles Square (B.D.R Gate), Dhanmondi, Dhaka. Products: Television & Projector, LCD TV, Home Theatre System, Camcorder, Computer & Peripherals, Storage & Recording Media, Battery & Charger. Rangs Electronics focuses their product line mainly on Consumer durables goods, which involve products that are manufactured for long-term use. These products are intended to endure regular usage for several years or longer before replacement are required. Task 1 – Changing Perspectives in Marketing Planning:  The production concept: IT holds that consumer s will perfect products that are wildly available and in expensive. managers focusing on this concept concentrate on achieving high production efficiency ,low cost and mass distribution they assume that consumers are primary interested in product availability and low prices. This orientation makes sheens in developing countries, where consumer is more interested in obtaining the product than in its features.

 The product concept: This orientation holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers focusing, on this concept concentrate on making superior product concentrate on making superior products and improving them over time.

 The selling concept : This is another common business orientation. It holds that consumers and business. If left alone, will ordinarily not buy enough of the selling company product. The organization must therefore undertake an aggressive selling and promotion effort.

 The marketing concept : It holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering and communicating customer value to its selected target customers.

 The societal marketing concept : This concept holds that the organizations task is to determine the needs , wants and interest of target market and to deliver the desired factions more effectively and efficiency than competitors.

Task 2 – Rangs Electronics Capability for Planning its Future Marketing Activity:

Capacity planning for Rangs involves determining the current and future needs of the market . in Rangs has review the organization resources which can be grouped into these categories:1. Financial capability 2. Technological capability 3. Well known 4. Loyalty These categories explain here:1. Financial capability:- Rangs establishment of an interim financial holding company subject to the approval of the Financial Services Agency. Rangs comprising Rangs IPS, Mitsubishi car distributer, Sony electronics distributer etc. Rangs currently carried out by the Financial Business Planning Department. 2. Technological capability:- Technological Manufacture and sale of electronic and electrical machines and equipment in market . Rangs have ability to convert new technology into new marketing products. 3. Well known:- It is very important for every kind of organization. In our country Rangs products is a well known products. 4. Loyalty:- As Rangs is a well known company in Bangladesh there has long loyalty. They give a long term warranty with their distributing products. Resources are of no value unless they are organized into systems.  Possible limiting factors(Disadvantages):1. A shortage of production capacity 2. A limited number of key personnel 3. A restricted distribution network 4. Inadequate research design resources 5. Lack of money  Solving:1. Short-term make best use of the resources available 2. Long-term reduce the limitation

Task 3 – Study of Techniques Used for Organizational Auditing & For Analyzing External Factors That Affect Marketing Planning:

Usability of SWOT Analysis A SWOT (strengths, weaknesses, opportunities and threats) analysis looks at internal and external factors that can affect businesses. For example, we can use a SWOT analysis to help us decide if and how we should:    

Take advantage of a new business opportunity. Respond to new trends. Implement new technology. Deal with changes to our competitors' operations.

We can also conduct a SWOT analysis to address individual issues, such as:      

Staffing issues. Business culture and image. Organisational structure. Advertising. Financial resources. Operational efficiency.

Usability of Porter’s 5 Force Analysis The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organization’s behaviour in a competitive market. These include the following:     

The rivalry between existing sellers in the market. The power exerted by the customers in the market. The impact of the suppliers on the sellers. The potential threat of new sellers entering the market. The threat of substitute products becoming available in the market.

By understanding the nature of each of these forces organizations can gain necessary insights which may enable them to formulate the appropriate strategies to be successful in their market.

Usability of PEST Analysis PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The headings of PEST are a framework for reviewing a situation, and can in addition to SWOT and Porter’s Five Forces models, be applied by companies to review a strategic directions, including marketing proposition. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company’s performance is aligned positively with the powerful forces of change that are affecting business environment. PEST is useful when a company decides to enter its business operations into new markets and new countries. It helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment.

Task 4 - Organizational Audit & External Factors Analysis of Rangs Electronics: SWOT Analysis of Rangs Electronics: Rangs Electronics can use SWOT analysis to monitor its Strengths, Weaknesses, Opportunities and Threats. Strengths can be useful towards Rangs Electronics because it would help them identify attributes which help them in achieving their objectives. Weaknesses can be helpful towards Sony because it would be providing them with information concerning attributes which are harmful towards achieving objectives. Opportunities are external factors which can help the business achieve its objectives. Threats are external factors which could do damage towards the business. Using SWOT analysis at Rangs Electronics can be very helpful as they would be notified of both their strengths and weaknesses; however the company may only concentrate on their strengths and try to improve them. This is because businesses tend to overlook weaknesses of the business. SWOT analysis can be used to identify Rangs Electronics’ current business standing and also how far or behind it is from its competitors. This would give Rangs Electronics the incentive to work further towards reaching their aims and objectives.

After talking to Mr. Firoze Mohammad (Supervisor) the following SWOT is prepared:

Strengths: -

Strong Reputation Prime Location Excellent Service Superior Access to Channel of Distribution Loyal Customers

# Rangs electronics has built a brand. This is highlighted by the fact that the company was tagged as one of the most valued brand in Bangladesh. # Rangs is synonymous with technological excellence and has a rich heritage of technological expertise. Besides providing the Trinitron Color television, VCR, and Walkman, the company also provide magnetic recording tape, the compact disc, and the Blu-Ray disc, used today as a medium for high-definition video playback. # Rangs supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers.

Weaknesses: # The high cost of media production, especially in its television business, has affected the company's pricing strategy. It's also losing market share to manufacturers, such as LG and Samsung.

# While diversifying into too many business segments, the Rangs electronics has shifted its focus from its core competency. This has resulted in a distortion in Sony's brand. Apple, which is also in the consumer electronics market, has managed to focus on just a few products, build competency, and making them incredibly successful.

Opportunities: # Rangs is pursuing a diversification strategy by introducing many new products to its range. This initially has meant goods such as peripherals including printers and toners, but now also included LCD televisions and mp3/mp4 players. So they can now compete against iPod and other consumer electronics brands. # The business can take advantage of movie and music business to deliver value-added content to and integrate its product line.

Threats: -

Many competitors at the same region Competitors are able to offer better bargain Duplicate Sony products flooding the market

# The single biggest problem for Rangs is the competitive rivalry that exists in the market globally. As with all profitable products, retaliation from competitors and new entrants to the market poses potential threats. # Rangs Electronics faces price competition from competitors such as Samsung and LG, who are gaining traction with lower-cost products such as televisions and mobile devices. # Rangs is exposed to fluctuations in the World currency markets. Changes in exchange rates could leave the company exposed to potential losses in parts of its supply chain.

Pursued techniques while carrying out this analysis:      

Strengths and weaknesses of business when conducting SWOT analysis was realistic. SWOT analysis distinguished between where selected business is today, and where it could be in the future. SWOT was specific & avoided grey areas. SWOT was applied in relation to the competition. SWOT was short and simple & avoided complexity and over analysis. SWOT analysis was subjective.

PEST Analysis of Rangs Electronics: According to Mr. Firoze Mohammad there are a variety of factors and influences in the external environment that help to shape the direction of marketing thinking in Rangs Electronics.

While carrying out a marketing plan for launching a new product in the market; Rangs Electronics looks at the following factors:

Political/Legal: -

National Government Local Government Trade Associations

Political factors for Rangs can be changed at any time. The Government holds the power to change any policies and regulations which may affect Rangs at the time. The trading restrictions may get reduced, therefore resulting in better trades for Rangs Electronics. However this also means that the same has occurred for Sony’s competitors. This means that Rangs must develop ideas on how to stay ahead of its competitors. The laws which can affect Rangs consist of new international policies. Internationally the Government may change or increase trading policies which would definitely change the way Rangs works, because it needs to trade. The Government also has the power to change minimum tax, VAT etc. These factors must be concentrated on so that Rangs is prepared for any major global changes.

The following diagram represents the total tax revenue including revenue from VAT. It shows that there is an increase in VAT & a decrease in custom duties over the period.

Economic/Competitive: -

Market Structure Government Policy Taxation Interest Rates

Currently the state of our economy is not in a good position. From all the historic recessions, we are currently reported to be in the worst one. The economic growth has shrunk which means that the growth of the economy is negative. Economically, due to this many changes can occur such as the interest and exchanges rates. Rangs must be aware of any trading restrictions the Government has made. Since Rangs partner Sony is an international company the exchange rates can be different to whichever country they trade with. If the exchange rates in different countries have changed, Rangs would need to work out what prices are their products being sold at and whether it would be worth it.

Socio cultural: -

Demographics Culture Attitudes of customers

Socially, Rangs Electronics is predicted to do well. The company has already gained a lot of reputation because of the quality products and services they provide. Technology has been improved by a mass majority. Rangs must ensure that they stay ahead of technology. They must be able to supply revolutionary equipment for people because that’s what their company would rely on to stay alive. People have trends which Rangs must learn so that they may create products which can relate towards them. For example, many young adults tend to listen to music; therefore Rangs would provide products which may allow people to listen to music anywhere at any time. People will have different tastes of style, trends, activities etc. Rangs improves their work of ideas so that they can still please their customers and that they have adapted with the ageing of the business. Technological Innovation:

Technological factors for Rangs Electronics are very important to study. Rangs Electronics works around the use of technology every day. It depends on technology so that it may provide efficient productivity of work internationally. Rangs would use upgraded and new technology to increase its productivity level and to stay ahead of its competitors. Rangs need to use new technology to conduct its research and development which would help the business to deliver new products using customer information and also by conducting market research.