MARKETING STRATEGY FINAL EXAM

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SECTION II: CASE I

Question One

The five initiatives described in the case study have undoubtedly numerous benefits to the recipients as well as offering the involved corporations market competitiveness. Thus, these innovative initiatives are involved in offering the receipts with effective services and products, thereby this may be more crucial towards ensuring that the involved corporations gets a market competitive advantage over its rival competitors (Peter, Trim & Yang-Im, 2008). However, these initiatives are under all the circumstances meant to address an existing need within the emerging markets. Hence, as a result of exploiting the new and emerging markets within the developing markets is meant to ensure that these initiatives are achieves their intended goals thereby offering a greater value to the recipients while at the same time offering greater benefits to the involved corporations (Varadarajan, 2010).

For instance, the first initiative involving the Vodafone in collaboration with Safaricom is purposely meant for the transfer of money through over the mobile phones. Hence, the name M-pesa whereby the “M” stands for mobile whereas “pesa” is a Swahili word meaning money which is a very effective functional branding (M-pesa, 2). This initiative is undoubtedly very crucial to both the recipients of the services involved as well as Vodafone which is the corporation involved in offering the service through its Kenyan local partner Safaricom. This initiative is therefore, evidently involved in offering branchless mobile banking services through its vendors who are located all over Kenya.

Similarly, the value of this initiative to its recipients who are the customers of the Vodafone local partner in Kenya Safaricom were evident in the rate at which the usage of the services offered by this initiative grew rapidly among the Safaricom customers. Hence, within only two years of its launch more than 7 million subscribers of Safaricom among the overall 18.3 million mobile users in Kenya were M-pesa customers. The greatest value of this initiative was the way in which it increased the convenience at which young men working in cities and other urban centers could amicably sent money back to their remote villages (M-pesa, 3). Meanwhile, the benefits of this initiative to the customers led to its tremendous expansion to offering wider range of financial services such as a system of school fees payment, payment of bills, electronic buying as well as a form of banking to a greater part of the population that does not have access to banking services.

Apparently, this initiative has also been of commendable befit to the corporation since it enabled the facilitation of easier accessibility of the corporation services to the customers all over the country even in the most remote areas as a result of establishment of the vendor kiosks aimed at offering the mobile banking services while at the same time facilitating the helping of the corporation customers (Peter, Trim & Yang-Im, 2008). Additionally, this initiative allowed the Vodafone corporation under its local partner Safaricom to continue its mobile banking operations without a license mainly because there was no interest charged on money saved. Moreover, the small fee charged on the offered services is vital for facilitation of the operations of the vendors and agents located all over the country (M-pesa, 4). Furthermore, this initiative has been a form of market competitiveness strategy mainly because it has ensured that its services are locally and widely available all over the country thereby strategically positioning the Safaricom and M-pesa brands (Varadarajan, 2010).

In addition, the learning to learn project involved in the one laptop per child initiative started by the MIT professor Nicholas Negroponte is also very crucial to both the recipients of such laptops as well as the Media Laboratory (MediaLab) corporation. However, despite the numerous challenges that faced the implementation of this project, Negroponte was visionary enough to ensure that there is a widespread dissemination of the computing knowledge which would greatly help children in their daily work. This initiative had a great value to the recipients of the laptops who were exclusively children in the developing countries since they would own the laptops outright, the laptops also had to be rugged, use very little energy as well as have the wireless network capability. These were very crucial benefits the initiative offered to the recipients of the laptops in an initiative that had been began by Nicholas Negroponte.

Alternatively, despite the great value this initiative had to the children who were recipient of the laptops that were tactfully designed to adequately meet their needs the corporation also had numerous benefits. First, as a result of the complexity of the initiative, that is, to come up with a laptop that could sustain the children vigor while at the same time been affordable was a challenge which resulted to production of an innovative piece of engineering work that gave the corporation an upper hand in the market (Peter, Trim & Yang-Im, 2008). Additionally, since this initiative was a worldwide project purposely targeting the developing countries, it enable the corporation to negotiate with heads of states and governments to purchase the laptops in bulk for the initiative. Moreover, the supply of the laptops through the corporation as a project to radically eliminate the shortage of laptops among the children in the developing countries would be of significant importance thereby giving the corporation an upper hand in the market.

Additionally, the Merck initiative of making life-saving drugs more accessible and affordable has also been of great value and significance to the recipients of these drugs who are mainly from the developing countries and incapable of affordable them at the normal prices. However, despite the Merck which is a global leading pharmaceutical manufacturer been a leading donor of medicines and vaccines, this initiative has called for a different marketing strategy. This involves taking different approaches such as philanthropic policies, differential pricing, licensing as well as resource sharing mostly with the middle-income countries that are potential emerging markets (Peter, Trim & Yang-Im, 2008).

Thus, in its attempts to achieve €1.4 billion sales goal, the corporation embarked on marketing mix strategy that resulted into greater value to the recipients while at the same time offering greater benefits to the corporation. For instance, it ensured that it had pedigree in the research of neglected tropical diseases. It also embarked on reducing the lag time between launching its products in developed and developing countries both of which are very crucial to the corporation’s target group. The corporation was also active in philanthropic initiatives in partnership with other organizations facilitating the pricing of some vaccines at a non-profit price including GARDASIL and ROTATEQ. This initiative also had benefits to the corporation by ensuring that it achieved a market competitive advantage while at the same time managing to amicably penetrate the emerging markets in the developing countries through partnerships with other philanthropic organizations.

Moreover, the Nestlé’s creating shared value through business initiative has been crucially important to both its customers and the partners in the supply chain. Hence, this initiative was a combination of corporate social responsibility and good business ethics in a cohesive partnership with its customers and suppliers in the emerging markets which are a source of two-thirds of its raw materials. Hence, the corporation embarked on making products that met specific nutritional needs of the recipients as well as fostering collaboration, learning and technical assistance with its suppliers and the supply chain (Song, Nason & Di Benedetto, 2008). However, the corporation has established a sustainable market competitiveness which will ensure that it remains competitive in the market through packaging, pricing, marketing and distributing products that fits its customers’ needs in the developing countries (Peter, Trim & Yang-Im, 2008). Moreover, the technical assistance, microfinance and consultancy services to the farmers supply base has been crucially important in ensuring that the corporation maintains its customer’s and farmers supply base loyalty which of great benefit to its daily operations (Varadarajan, 2010).

In addition, the Harish Hande initiative through his corporation Solar Electric Company (Selco) of paying for the solar powered leds through micro financing. However, this initiative was very crucial to the poor since it involves marketing sustainable technologies using the proper financing structures. For instance, Hande ensured that Selco was selling complicated product which is a need-based technology combined with need-based financing. Thus, the primary target of the products of this initiative were the people in the ‘darkest’ corners in the villages in rural India. This is mainly because these areas have intermittent electricity supply at its best, hence, this initiative had numerous benefits (Peter, Trim & Yang-Im, 2008). Hence, the recipients of the products of this initiative were clearly visible since the solar-powered electric lamps that used long-life LED bulbs were far more superior in comparison with burning the kerosene lamps that are toxic and expensive and hardly produces enough light. Furthermore, the well-lit villages enabled longer study, work and playing at night thereby improving their standards of living. Moreover, this initiative facilitated the geographical expansion of the Selco since the corporation tended to follow the dispersion of the loan officers.

Question Two

Since its introduction the M-pesa initiative which is to be discussed in this question it has presented a phenomenal value proposition to its users as well as the Safaricom corporation mainly because it has been involved in a combination of the massive community of its customers base as well as statistical algorithms aimed at ensuring both security and accuracy of the transactions all through up to the end-users. However, since the launching of the M-PESA by Vodafone through it local mobile network operator Safaricom, it has quickly captured a very significant and crucial cash transfers market share, which has enabled it to astoundingly grow very quickly. This enabled the initiative to capture 7 million subscribers within the two years of its launch accounting for approximately 2 million daily transactions within the Safaricom network in Kenya alone (M-pesa, 2).

Alternatively, the M-PESA is an initiative that functions as a branchless banking service. Hence, it has been designed to be capable of enabling its users to be completing all the banking transactions that are basic without necessarily requiring to visit a bank branch. Therefore, on strategic assessment of this initiative, it is preferably evident to note that the M-pesa initiative’s continuing success in Kenya, has been as a result of the creation of a highly popular as well as affordable payment services whereby there is very little involvement of the banks. However, the key success factors have enabled the continued loyalty of the M-PESA customers who have continued to deposit as well as withdraw money from a well established network of agents all over the country that includes petrol stations, airtime resellers as well as the retail outlets all of which acting as banking agents (M-pesa, 3). Additionally, the M-PESA initiative operated by Safaricom an affiliate of Vodafone is not classified as an institution that takes deposits like banks since it does not charge interest of the customer’s deposits thereby excluding it from licensing. Hence, the M-PESA initiative cannot advertised as one offering banking services.

Apparently, the M-pesa initiative has been very crucial in enabling its user to access a variety of services including depositing and withdrawing of money, transferring of money to other users of the initiative as well as non-users, payment of bills and purchasing of airtime. However, so far M-pesa is the most popular money transfer initiative in Kenya a phenomenon that has been contributed by a variety of factors (Varadarajan, 2010). This is mainly because in Kenya most of its young and energetic males migrates to the cities and urban areas, hence it is these urban migrants who are actually contributing to the tremendous uptake of the M-pesa services through customer adoption (M-pesa, 4). Therefore, these migrants are referred to as the ‘early adopters’ as well as users of a technology. Moreover, they are mostly better educated thereby earning higher incomes in comparison to the people in the villages, hence, they are the senders of money back to rural areas and usually choose the most convenient, effective, safe and easy channel for money transfer which has so far been the M-pesa initiative. Similarly, these urban migrants are influences the recipients in the rural areas mostly the less educated and poor females to also use the services of the M-PESA initiative (M-pesa, 5).

Additionally, the effective and strategic utilization of the marketing mix has ensured that the M-pesa initiative maintains its competitive advantage over its mobile money transfer services such as Zap offered by Airtel Kenya and Yu Cash offered by Yu mobile operator. Hence, the strategic positioning and marketing of the M-pesa initiative has ensured that the services offered remains competitive in the market thereby leading to market competitiveness and subsequent growth (M-pesa, 6). Hence, there are various factors that ensures the M-pesa initiative remains popular competitive among its customers within the Kenya mobile network. For instance, the ease of accessibility to the services offered by the M-pesa initiative ensures that the place in the marketing mix is appropriate since, these services are actually available all over Kenya even in the most remote areas of the country thereby ensuring easy and faster accessibility (Song, Nason & Di Benedetto, 2008). This is very crucial in offering convenience since the M-pesa services are available whenever needed. This has been made possible due to the effective network of the M-pesa services vendors who are located in all the town centers in Kenya. The ease of accessibility which promotes convenience of using the services ensures that the M-pesa initiative is actually in the frontline of mobile banking within the Kenya mobile operation network.

The price is also another important factor in the marketing mix strategy which the Vodafone adopted effectively through the M-pesa initiative since the services of this initiative are usually offered at very affordable prices and no interest is charged on the services. Moreover, all the deposits and airtime purchase are usually conducted absolutely for free but smaller charges are usually done money transfers, withdrawals and payment of bills. However, such charges are very little compared other institutions that offers similar services (Varadarajan, 2010). Additionally, the wide range of services offered by this initiative has also contributed to its market competitive advantage. This is mainly because the initiative is widely used by the Kenyans for its wide range of services that include transferring of money, payment of bills, purchase of airtime and other goods or service as well as acting as a mode of saving. This diversification ensures that all the needs of the customers have been adequately met irrespective of the interests and preferences.

Similarly, Safaricom which is the local partner of the Vodafone in Kenya has been involved in aggressive promotion of this initiative through advertisements and offers which has continued to contribute to the customer’s loyalty thereby creating a market competitive advantage (Song, Nason & Di Benedetto, 2008). For instance, Safaricom has been aggressively promoting this initiative among its customers mainly through road shows and production of promotional materials such as T-shirts, flyers, brochures as well as advertisements through radios and televisions in conjunction with the sponsoring of various social activities such as games tournaments and seminars or conferences. All these activities ensures that the initiative always have an upper hand in comparison with others (M-pesa, 5).

Moreover, Safaricom has a very wide customer base eligible of becoming customers of the M-pesa initiative services. Hence, due to this majority of the Safaricom network subscribers are customers of the M-pesa initiative. Additionally, the partnerships of the M-pesa initiative with banks and micro financing institutions has also been crucial in ensuring it continues to enjoy market competitive advantage within the Kenyan mobile banking sector (M-pesa, 6). For instance, it has partnered with Faulu Kenya and Kenya Women Finance Trust (KWFT) both of which are micro financing institutions by facilitating the loans repayment by customers. It has also partnered with the Equity Bank and Co-operative Bank both in Kenya to enable its customers to be able to access their bank accounts through the M-pesa initiative services. All of these factors have collaboratively contributed the current market competitiveness of this initiative (Song, Nason & Di Benedetto, 2008).

Alternatively despite the tremendous growth of this initiative there are various challenges and ethical conflicts that face it hence needs to be overcome in order to continue enjoying the sustainable development of the initiative as well as the whole corporation since the initiative forms a greater part of the corporation (M-pesa, 7). For instance, the growth of this initiative resulted to the formal banking institutions to lobby for the auditing of the M-pesa initiative with an aim of ensuring that it slows its growth rate. However, despite this been an ethical conflict of interest the audit did not affect the initiative even though other banking institutions insists that the initiative be regulated since it offers most of the services offered by the banks at affordable rates thereby threatening the banking sector (Song, Nason & Di Benedetto, 2008).

Additionally, the issues of the cash float has been a factor to consider mostly in the rural areas where most of the services offered by the initiative are mainly withdrawals and the agents must maintain cash float. This ensure that the agents make frequent trips to the urban where banks are located an issue is problematic and cause of ethical conflict between these agents and the corporation (M-pesa, 8). Hence, finding strategies to effectively manage the problem of cash float is undoubtedly the greatest challenge for Safaricom and a source of ethical conflict. Moreover, there is a potential of the initiative been used as a money laundering tool as well a channel through which some criminal uses to con the Kenyan population. Hence, there is an urgent need to address these issues (Song, Nason & Di Benedetto, 2008). However, for the time being Kenyan have fully embraced this initiative as it is thus these ethical conflicts does not affect the development of this initiative.

SECTION II: CASE II

Question Three

In the attempts of strategic growth as well as strategic brand management many companies have embarked on the process of acquisition of other smaller companies within their area of specialization (Bennet, 2010). Hence, many companies have been involved in the acquisition of other companies a phenomenon which facilitates faster growth due to rapid establishment of adequate infrastructure and production capability. For instance, the recent acquisition of Skype by Microsoft in a more then 8 billion dollars was a very crucial strategy by the Microsoft in its attempts of diversifying its services and products as well as giving it a market competitive advantage which is very vital in ensuring a continued growth of the company (Song, Nason & Di Benedetto, 2008). Therefore, Microsoft’s strategic motivation is likely to be the expansion of its services which may accrue from the acquisition of Skype which would otherwise take longer if other channels are followed (Kong, 2000).

Additionally, acquisitions can generate long-term profitability for the purchasing company as a result of expanded production capability to meet the market demands which is a very crucial phenomenon for ensuring market competitiveness (Kapferer, 1997). in the case of an acquisition. Hence, the expansion of Microsoft through acquisition of Skype has greatly helped the branding and growth of Microsoft through generation of smoother production process as well as effective operational system. However, the acquisitions consists of various risks band opportunities that must be evaluated before the deal can be sealed. Additionally, the acquisition of Skype by Microsoft has not only been crucial for its strategic growth but it has also been involved in the strategic branding of the Microsoft. This is mainly because the Skype offered services that were varied from the Microsoft’s services thereby the acquisition will ensure diversification of the Microsoft services (Bennet, 2010).

Moreover, the acquisition of the Skype by Microsoft is likely to present various risks since at times the acquisition may not automatically result into generation of success due to the problems that may arise in the adjustment of the acquiring company which in our case is the Microsoft. This situation may arise as a result of various factors such as the technological incompatibility, unnecessary equipments or employees as well as poor management. At times this may often result to confusion between the new management in the process of making decisions on the staff to keep as well as the operations to uphold (Kong, 2000). Hence, in order have successful acquisition there is need for conducting thorough research on issues likely to affect the operations of the acquiring company.

Similarly, the business acquisitions mostly shares many risks that are similar to the merger since when a company is purchased by another one the new management has no otherwise, other than to reconfigure the operations and employee environment among other things (Song, Nason & Di Benedetto, 2008). Moreover, this presents numerous risks involved preferably including the past and present debt of the company being acquired, management problems as well as liabilities or assets that are “baggage” thereby requiring to be swiftly and adequately addressed by the management of the new owners. Additionally, there will be tremendous implications on both brands after the acquisition since the process will lead to the pooling of resources which would facilitate the strategic positioning of the two brands there increasing their market competitiveness (Kapferer, 1997). Moreover, the acquisitions means that the management of both brands is centralized or closely monitored from the Microsoft management hence, ensuring effective administration a crucial factor for achieving success (Kong, 2000).

SECTION III- General Marketing Strategy related question

Question 4 C

Innovator’s advantage is actually the advantages that accrue in an institution mainly after embracing the innovativeness in all its operations, and also the main reason as to why many new business innovators earn more in comparison to other average firms. This is mainly because innovation is very crucial in creating the first-mover advantage on the basis of varied factors. The businesses with an innovator advantage are always far much ahead of their competitors since they usually embrace the aspect of coming up with new and innovative ideas (McLaughlin & Aaker, 2010).

Additionally, many companies that have established innovator’s advantage maintains conditions that ensures it materializes all through. Hence, innovative companies are usually genuinely open-minded, not afraid of new and innovative ideas; always ready to undertake a process of changing their most key strategies whenever it is needed. Furthermore, there is also these companies also utilizes an approach that is relatively the same, that is, essentially collaborative as well as always seeking to work with other partners both outside as well as inside the business (McLaughlin & Aaker, 2010). Similarly, these organizations usually make a better usage of the information technology (IT). However, by better use of IT is not necessarily spending more but the crucial aspect of understanding what IT can do for such organizations and thereby taking the advantages presented by the capabilities of the IT.

Additionally, such organizations are always ready for challenges that may arise on their daily operations thereby ensuring it maintains open-mindedness in the approach of problems. Also these organizations are always open to criticism which ensures that they improves on their weaknesses thereby enabling them to continue enjoying innovator advantage. Moreover, being in the frontline towards embracing new and innovative ideas also plays a greater role towards enabling the sustenance of the innovator advantage.

SECTION IV- Reflection

Question Five

Throughout this subject I have managed to learn various aspects of the marketing strategy process, whereby I have realized that these processes allows the organizations to concentrate their limited resources on exploring the greatest opportunities with an aim of increasing its sales as a result achieving sustainable market competitive advantage. I have also managed to learn the steps followed in the strategic marketing process (Bennet, 2010). For instance, the process begins with positioning in the market in order for the organization and products being marketed to get recognized and remembered, then the information used in marketing must be distinctive and important. Thus, the success in the marketplace will depend on selecting a position that is distinctive for your services and products, so that the customers’ needs are addressed (Kapferer, 1997).

I have also learned that in marketing strategy, there is also the need to prepare the channels of marketing after articulating the positioning of the services or products. Hence, there is need to arm the organization sales people with all necessary materials they will need. Moreover, generation of leads is a very crucial factor that ensure the goals of strategic marketing are achieved. Similarly, after closing the deals I have learned that the most crucial thing is the ultimate relationship that is established with the customer (Bennet, 2010). Finally, there is also the need of publicizing the organization’s success through case studies, and other PR activities that enables recognition in all the markets the products or services are being sold.

Question Six

This subject is undoubtedly one of the most crucial subject among others that I have ever done hence, it presented an opportunity for me to learn various aspects of strategic marketing while at the same time learning various other skills such as teamwork, analytical skills and excellent communication skills (West, Ford & Ibrahim, 2010). For instance, I have developed a sense of being able to amicably work in groups and teams through the teamwork skills. This is very crucial since marketing involves working as teams hence, the subject has greatly contributed to developing of teamwork skills. Moreover, I have also developed good analytical skills that are vital in the facilitation of the effective analysis and evaluation of marketing data.

Additionally, I have also manage to improve on my communication skills through this subject which are very crucial in ensuring effective use of marketing information (Song, Nason & Di Benedetto, 2008). The excellent communication skills both written and spoken are a very crucial factor for ensuring effective communication with customers which is a very crucial factor is the strategic marketing sector. Therefore, the developed skills will be very crucial for me in future as a strategic marketer since all of them will be very crucial in making my career a success. This is mainly because teamwork is very important in marketing while good analytical skills are also vital in analyzing and evaluating the market information, and finally, the excellent communication skills are very crucial since marketing involves persuasive communication to customers (West, Ford & Ibrahim, 2010).

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References

Bennet, J. 2010, Strategic Marketing Process. Available at: http://www.bennettstrategy.com/strategic-marketing-process.htm (Accessed on June 21, 2011).

Kapferer, J. 1997, Strategic brand management: Creating and sustaining brand equity long terms. London: Kogan Page Publishers.

McLaughlin, D. & Aaker, D.A. 2010, Strategic Market Management: Global perspectives. West Sussex, UK: John Wiley & Sons, Inc.

Kong, J. 2000, Strategic Brand Management: Creating an Identity for Your Company. Available at: http://techdivas.com/strategi.htm (Accessed on June 21, 2011).

M-pesa, n.d, Available at: http://www.safaricom.co.ke/index.php?id=250 (Accessed on June 21, 2011).

Peter R.J. Trim & Yang-Im, L. 2008, “A strategic marketing intelligence and multi-organisational resilience framework”, European Journal of Marketing, vol. 42, no. 7, pp. 731-731-745.

Song, M, Nason, R, & Di Benedetto, C 2008, ‘Distinctive Marketing and Information Technology Capabilities and Strategic Types: A Cross-National Investigation’, Journal of International Marketing, 16, 1, pp. 4-38.

Varadarajan, R 2010, ‘Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises’, Journal of the Academy of Marketing Science, 38, 2, pp. 119-140.

West, D., Ford, J. & Ibrahim, E. 2010, Strategic Marketing: Creating Competitive Advantage. Oxford: Oxford University Press.

Wilson, R.M.S. & Gilligan, C. 2005, Strategic Marketing Management: Planning, implementation and control, 3^rd ed. Elsevier Butterworth-Heinemann.

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