A visit of Visit London and Pepsi Corporation - Marketing Essay Example
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Visit London is the official organization for London and a private company which was established in 1963. This employs around 100 staff under the management of their Chief Executive James Bidwell. It is funded by commercial activity and partnership subscription and receives public funding from the Department of Culture, Media and Sport via the Mayor of London and the London Development Agency and London Councils. Its aim is to promote the capital’s exciting city and its tourist spots to both domestic and international visitors. It also advocates quality improvements to tourism infrastructure and services and it works to maximize the benefits of tourism for the people in London and their local economy. The quality assessment of Visit London involves Public Affairs, Marketing, Partnership, Travel and Trade and Press. Its role is to promote and market London to leisure and business visitors, to advocate quality improvements to tourism services, to maximize the benefits of tourism for the local economy and to work closely with a number of key partners.
Visit London regards sustainability and tackling climate change as key strategic issues. They are committed to implementing of an effective environmental management system to increase their effectiveness and efficiency. Their policy is to eliminate environmental risks to their employees by conducting operations to fully comply with applicable laws and regulations, to continuously improve business processes, to minimize production of waste by developing a sustainable purchasing policy and by minimizing the impact the work-related travel (http://corporate.visitlondon.com/).
The award-winning campaigns of Visit London have helped London’s overseas market succeed over time and it has brought economic benefits into the visitor economy. The campaign targeted domestic audience – bringing visitors from all over UK to the capital and also encouraging the local visitors to make the most of the city. This organization has also been engaged in a major drive to bring more cultural events to the city to make the most of the benefits to mount up from the London 2012 Olympic and Paralympics Games. They have already identified the environmental impact of their activities and have achieved a 63% reduction in the amount of office paper used per person, a 29% increase in the proportion of waste which is recycled; and a 50% increase in the number of PCs and monitors switched off out of work hours (http://corporate.visitlondon.com/).
In all business operations, competitions always exist. The model of pure competition implies that risk-adjusted rates of returns should be constant across industries. Michael Porter provided a framework that models a certain industry being affected by five forces – Supplier Power, Threat of Substitutes, Barriers to Entry, Buyer Power and Rivalry. A rivalry among industries exists and drives profits to zero. Firms always strive for competitive advantage over their rivals. An industry is considered to be disciplined if the rivalry among firms is low. To achieve competitive advantage over their rivals, a company may change product prices, improve product differentiation and exploits relationships with suppliers (http://www.quickmba.com/strategy/porter.shtml).
Visit London, to attain competitive advantage, develops strategies on how to attract more tourists and visitors to use their services. It is an undeniable fact that many e-commerce sites, similar to Visit London, are slowly emerging in this modern world. However, Visit London continues on surviving over its rivals. A growing market and the potential of high profits encourage new firms to enter the competition. Because of this, Visit London enhances its products and services to be able to lock its current customers and to gain more customers in the future. Promoting London’s tourists spots is one major advantage of Visit London over other sites but they always be ready for situations such as new entrants to the market and the like since this is a part of the competition.
PepsiCo has been known worldwide as a distributor of foods and beverages. The company was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company and Gatorade in 2001. The company is consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI). PAF’s products include Frito-Lay North America, Quaker Foods North. PAB’s products include Beverages North America and all Latin American beverage businesses. PI’s products include PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. The company’s headquarters is in Purchase, New York. Its mission is “To be the world’s premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.” (http://www.pepsico.com/PEP_Company/Overview/index.cfm)
PepsiCo operates in the global market and is able to sustain its competitiveness all throughout the years through the applications of three sustainable advantages – Big Muscular Brands, Proven ability to innovate and create differentiated products and powerful go-to-market systems. Since this is a global product, understanding different cultures is a major advantage and the company views diversity as a key to the future. This is applied to fully understand the needs of their customers and consumers who come from different parts of the world. To sustain a value cycle for the company’s stakeholders, they invest in dollars generated from top-line growth and cost-saving initiatives. The dollars are strategically reinvested into new and innovated products and the cycle continues. Having a workplace where they value diversity has helped them build top-quality workforce to the company’s success by enabling them to attract and retain great people from a wide spectrum of backgrounds (http://www.pepsico.com/PEP_Company/SustainedAdvantage/index.cfm).
Rivalry in the world of foods and beverages is so high. It is an undeniable fact that PepsiCo is playing a close competition with beverage supplier in the global market. However, despite of this competition and rivalries, PepsiCo has maintained its name in the international market and continues to give the best products and services to its customers and consumers.
The intensity of company rivalry is influenced by:
§ A large number of firms *
§ Slow market growth *
§ High fixed costs *
§ High storage costs or highly perishable products *
§ Low switching costs *
§ Strategic stakes are high *
§ Low levels of products differentiation *
§ Industry shakeout *
Business organizations strive for success and high net incomes – may it small-scale business organizations or large-scale ones. In order for these companies to achieve its long-term goal while at the same time giving the best services to their customers, proper planning and analysis of marketing strategies are done. These are carried out in the business to have an efficient way of handling transactions to improve day-to-day business operations. Hence, companies are always in the pursuit of excellence both in the local market and the global market.
The emergence of a global marketplace, the increased number of firms, new technology and ever-increasing pressure from securities markets to raise shareholder value is a few factors that increased competition. Firms that do not cut costs and improve financial performance face swift action in equity markets because of the frenetic atmosphere of mergers and acquisitions, coupled with the increased number of large institutional investors. This competition means that companies are less able to shield workers or invest in public goods (http://www.neweconomyindex.org/section1_page06.html).
Visit London has been in the industry for quite a number of years and has proven its ability and capability to deliver the best possible products and services to its clients – both local and international. They have established a very strong commitment to promoting the city’s attractive places to domestic and international tourists. On the other hand, PepsiCo has demonstrated and has maintained its name in manufacturing beverages and foods – both for USA and the rest of the global market. These two companies, over the years, have shown its determination and steadfastness in delivering the best services and improving their services to further satisfy their clients. The application of good marketing strategies has been carried out with utmost honesty and customers patronize their services.
It is very critical to ensure a consistent approach to offering product or service that will outsell the competition since in today’s business world, higher competitive marketplace is in place. However, in describing marketing strategy, it is also a must to define methodologies for the day-to-day process of carrying out all strategies (http://www.businessplans.org/Market.html).
In carrying out marketing strategies, so many factors need to be considered. But before deciding on the strategy, listing down of objectives should be done first. These falls into four (4) categories:
§ If the market is attractive and the business is one of the strongest in the industry, investing best resources will support this offering.
§ If the market is attractive but the business is one of the weaker ones in the industry, concentrating on strengthening the business using the offering a stepping stone towards this objective.
§ If the market is not attractive but the enterprise is one of the strongest in the industry, an effective marketing and sales effort for offering is good for generating near term profits.
§ If the market is not attractive and the business is one of the weaker ones in the industry, promoting this offering supports a more profitable part of the business.
For advertising offering, some strategies include:
§ Product comparison
§ Product benefits advertising
§ Product family advertising
§ Customer advertising
The following distribution methods will be used to get the offering into the hands of the customers:
§ On-premise Sales which involves the sale of the offering using a field sales organization that visits the prospect’s facilities to make the sale.
§ Direct Sales involves the sale of the offering using a direct, in-house sales organization that does all selling through the Internet, telephone or mail order contact.
§ Wholesale Sales which involves the sale of offering using intermediaries or “middle-men” to distribute your product or service to the retailers.
§ Self-service Retail Sales which involves the sale of offering using self service retail methods of distribution.
§ Full-service Retail Sales which involves the sale of offering through a full service retail distribution channel.
Having defined the objectives and generic strategies, deciding a variety of closely related operational strategies such as the price is also very important. The three (3) basic strategies to consider are:
§ Skimming Strategy
§ Market Penetration Strategy
§ Comparable Pricing Strategy
To sell products and services, it is best to advertise this. Two basic promotion strategies are the following:
· PUSH STRATEGY which maximizes the use of available channels of distribution to “push” the offering into the marketplace. This requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing your need for advertising.
· PULL STRATEGY which requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to “pull” the prospects into the various channel outlets creating a demand the channels cannot ignore.
Furthermore, the strength of the customer service function has a strong influence on long-term market success. The following are the factors to be considered:
§ Experience of the Customer Service manager in the areas of similar offerings and customers, quality control, technical support, product documentation, sales and marketing.
§ The availability of technical support to service your offering after it is purchased.
§ One or more factors that causes your customer support to stand out as unique in the eyes of the customer.
§ Accessibility of service outlets for the customer.
§ The reputation of the enterprise for customer service.
A good marketing strategy is indeed consists of components such as undergoing an undergoing review of business and marketing strategies, conducting market research, customer perspective, product differentiation, creating product visibility, developing channels to distribute products and/or services, to establish a marketing budget, undergoing trial and error with marketing strategies and tracking results to determine what seems to best. Following a thorough procedure and making sure that promises are carried to customers and conducting research quality product is delivered is another important component (E.M. Ashmore & Associates Inc.).
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No Author. No year. Visit London Corporate Home Page. [Online] Available http://corporate.visitlondon.com/ [18 April 2008]
No Author. No year. Porter’s Five Forces: A Model for Industry Analysis. [Online] Available http://www.quickmba.com/strategy/porter.shtml [19 April 2008]
No Author. No Year. PepsiCo. [Online] Available http://www.pepsico.com/PEP_Company/Overview/index.cfm [20 April 2008]
No Author. No Year. Fierce Business Competition. [Online] Available http://www.neweconomyindex.org/section1_page06.html [21 April 2008]
No Author. No Year. Marketing Plan. [Online] Available http://www.businessplans.org/Market.html [21 April 2008]