Introduction
Marketing can be described as a set of processes that are undertaken by an organization in order to create, communicate and add value to the products that the organization deals with (Kilter, Philip, Keller and Lane 2005). The aim of marketing is to create awareness and a relationship to the customers in a manner that will be beneficial to the organization and the stakeholders. Marketing do exist as an activity of an organization, and it is ever changing in accordance to new trends and technology in the field. As Kilter, Philip, Keller and Lane (2005) notes, in style marketing represents the way the society develops, and it is dynamic as it is ever going through changes. It offers new products and services on the customers using new techniques and communication media. Marketing business is big and always growing
This paper will therefore look into the marketing analysis of Panasonic Company performance in the UK foreign market successfully. The main issues that will be addressed by the paper will be; company analysis using SWOT, marketing across borders, risks and opportunities that the company will face and country analysis using PEST, we shall also analyze the marketing mix of the company.
SWOT Analysis
Most companies, organizations and institutions today are using SWOT analysis as a strategic method/tool for evaluating their strengths, Weaknesses, Opportunities and Threats with reference to strategic planning. SWOT analysis identifies the internal and external factors that determine the achievements a company has specified in its goals and objectives. First, it specifies the internal factors i.e. strengths and weaknesses of Panasonic Company. Secondly, it categorizes the external factors that have been identified to boost or hinder the achievements of the company especially in terms of growth and expansion. These external factors are the opportunities and threats. (Kilter, 1996)
Strengths
Strength of Panasonic Company is the image it has, market leadership, financial resources good customer care. Panasonic Company is a market leader in electrical industry, the company servers many people each day. It has many branches located in many countries around the world. They driving force has been introducing reliable consumer electronics products good corporate culture, good service delivery, flexibility and customer care. Another strength as been Brand image of the company which makes the company to understand out from the rest. (Panasonic Company, 2008)
Technology
Panasonic Company has employed the latest technology in their technology revolution, the versatility and diversity of Panasonic products is unequalled, having a big range of product solution which spans from point- of –sale cash registers found in restaurants to broadcast cameras which are found in media studios. Panasonic Company also is a leader in the field of video screen technology as shown when it installed giant video screens in the Sydney Olympic stadium. The reputation and reliability of the company’s products has made it possible for the company to market its products to a wide range of customers (Hoovers.com, 2007)
Quality products
Panasonic Company is a market leader particularly in the area of consumer electronics and communications equipments. The company’s communications, printing, document management and also audio-visual solutions, can be found installed in many offices around the world. Panasonic is currently a powerful electronic company in the whole world; it has a good reputation of high quality electronic products, going by the quality of products it offers. The company has grown substantially in the recent years going inline with globalization The Company’s assets make it one of the richest companies in the world. Most of these assets that are part of the company’s unique electronic products have given it a huge market share compared to the others in the sector. (Panasonic Company, 2008)
Weakness
A weakness can be defined as any aspect of the company which may hinder the company from attaining its objectives or goals. Usually, it covers the firm’s assets, resources, and capabilities. Latest research indicates that Panasonic Company is faced with few weaknesses which if not taken care of it may hinder the company’s success. The company’s rules, procedures, and policies are said to be weak as in some markets they have started to perform poorly. Also the human resources, that is, the workers and the management have been performing poorly of late in their respective responsibilities.
Laxity on the side of the marketing managers has been pointed out and reports suggest that they have not come up with suitable marketing strategies to cope with the ever-increasing competition in the industry. Many people outside the Britain have questioned the organization culture of doing things and reputation. (Barlon, 2006)
Opportunities
as globalisations continues to open up new markets and eliminate barriers of doing business Panasonic company will continue to have an opportunity of opening up new franchise in other countries or increase their presence in the countries where they have already established. The main opportunities lie in Asia which has continued to witness good economic growth. Especially in expanding consumer markets in countries such as India and China or located new markets. Also there is still market in other continents as the company is serving less very small portion of the total population of the world. (Barlon, 2006)
Threats
Competition and government policies
Since Panasonic Company is among the biggest electronic companies in the world, it is subject to harsh competition, as almost all other electronic companies will be trying to adopt and outweigh it financially. The biggest competitors of Panasonic company are Sony company, LG and Samsung which are posing a threat to its market share Being a global leader in this field, Panasonic company is exposed to threats from government polices in different countries.
An environmental analysis of the industry Changing nature of international environment
There have been many changes on the way international market environments have been behaving especially in terms of diversity. The international marketing environments are usually done through the use of a STEP or PESTEL analysis procedure. (Barlon, 2006)) This analysis is worth because it determines whether the organization will be fairing well or not. For the purposes of this paper we shall use PEST marketing tool to analyze the Chinese market
PESTEL analysis
PEST analysis is used to investigate the vital factors, which affects an industry and the influence they have on a particular company or companies operating in that particular industry. PEST is means political, Economic, Social, and Technological factors. Political factors entail government policies, which are related to the industry, this includes tax policies, regulations and laws, tariffs and restrictions and other factors. The economic factors include the wider economic performance for example economic growth, exchange rates, interest rates and inflation. Social factors on the other hand relates to cultural issues which includes health, population growth, demographics, changes in consumer behaviours and other aspects. Technology factors include the adaptation of new available technology and new ideas such as automation, information technology and rate of technology change. (Barlon, 2006)
Political factors whereby the company have to deal with the political interferences that may be practiced by the UK government. According to research political systems of nations affect the conduct of businesses, for example some countries practice collectivism while others practice capitalism political systems. The UK government practices capitalism in that it allows factors of production to be privately owned and the government performs only limited duties that the private sector cannot perform unlike in collectivism and communism that stresses collective goals. So Panasonic Company has no restrictions and hence we can conclude that it enjoys good external political environment. (Barlon, 2006)
Economical factors which mainly deals with financial forces in the economic environment. Such factors include foreign exchange rates, currencies and global monetary systems like the use of Euro currency, inflation, counter trade, balance of payments, monetary policies, and fiscal policies among others. After carrying out careful analysis of these factors Panasonic Company did not face a lot of these challenges with but only was subjected to few of them like inflation and the balance of payments. (Kilter, et al, 2005)
Social factors are other factors that the company has to consider before going international. Forces within the society such as religion, family, social structure and education may impact positively or negatively the way Panasonic Company will market its products. Social factors affect our attitude, opinions and interests on the way we view products from certain companies. (Kilter, et al, 2005)
Technological factors are another key factor to be put in consideration before going global. Many companies as a result of the concept of globalization are now experiencing advanced technologies. Globalization has taken centre stage and now many firms have increasingly utilized the use of e-commerce or Internet marketing. The technology of production has continued to develop leading to more premium brands are being produced by the company to fulfil the new demands of the customers that keep changing with time. (Kilter, et al, 2005)
Marketing strategies
Panasonic Company has adopted marketing mix, which is marketing strategy employs the use of “4 Ps” that is product, promotion price and place. These four aspects are the ones which are used in many companies. Each aspect is important and plays a big role in marketing processes. Marketing is a wide are in the company and Panasonic Company has managed to take full advantage of it in as a world number one company in sports wear. (Porter, 1985)
Operational Marketing in Panasonic Company
Barlon (2006) explains that Operational Marketing implements marketing functions so as to attract and maintain customers and to maximize on the value derived form them, and also to satisfy the customers with prompt services by meeting the customers’ expectations. Operational marketing comprises the marketing mix. There are four main principles of marketing – mix sometimes called the 4Ps i.e.
· Product
· Price
· Place – distribution channels
· Promotion
Price
The amount that a customer pays for a certain product is its price. This amount is determined by various factors which includes product identity, competition, market share and the perceived worth of the product by the customer. This can also be defined as what must be sacrificed or given up by one party in an exchange in order to obtain another item from the other party. The product of the company are said to be affordable to its customers. Research indicates that the company is becoming a market leader because of the cheap prices associated with the products. (Porter, 1985)
Product
This is an object or service that a company produces or manufactures particularly on large scale with precise amounts. (Porter, 1985)A company should have a large collection of products that it sells to the market. The products cater for different tastes of consumers. In relation to the marketing implication that is being witnessed due to technological products and buying, Panasonic Company is coming up with high quality technological products that can be premium priced. The characteristics the company’s products are well defined to meet the needs of the consumers; the company aims at providing all suitable and god quality technological products to the consumers. Panasonic Company deals with a variety of electrical products ranging from home hi-fi systems to broadcasting equipments. The product of the company are said to be unique as compared to of that of its competitors. (Porter, 1985)
Place
This stands for, location where the products from a company are found and purchased. This in many cases refers to distribution channels of the company which can be physical stores or even virtual stores found on the internet. (Barlon, 2006) In order to make a product to more inclusive Panasonic Company has tried to enhance its distribution production through creating best distributional channels that have resulted to increase in profit levels of the company. The activities integrated in distribution by the company range from storage, ordering, shipping, promotion, displaying, feedback and selling. The company has also tried to locate its products at a central place, so that costumers can easily access the product. It is common knowledge that if costumers can not access the products they won’t be able to buy them. The company marketers pays attention to this area because location determines availability hence purchases
Promotion
Promotion includes all communications that a company uses in marketing its products. We have four different elements in promotion; this includes advertising, point of sale, word of mouth and public relations (Porter, 1985). If a company incorporates all the four elements then a certain level of crossover do occur. Panasonic Company has engaged itself in promotional activities of its products in UK and significant results have been achieved because consumers have responded well in company. The company has sponsorship deals, a strong advertisement strategy that it carries on. Panasonic Company has greatly used this marketing mix to its full advantage. It has incorporated all the four aspects of promotion which as seen the company capture and retain a big share of the market. Panasonic Company remembers that promotions are supposed to be in collaboration with other parts of the company. Panasonic Company makes sure that they sell exactly what the production team can deliver.
Panasonic Company has realized that advertisements stimulate buyers only after they have been around long enough. Thus the company has stated earlier has enhanced advertisement programs, which have resulted in a number of benefits First of all, they allow Panasonic Company to penetrate different market groups. They give the company products a lot of mileage especially when the advertisements are well done. Besides these, advertisements allow Panasonic Company to break geographical barriers as it can communicate to people who are miles away or even out of the country.
Conclusion
Marketing is an important aspect for a company. With cut-throat competition being observed in the markets, a company has to come up with marketing strategies that can make it maintain its market share. As Kilter, et al (2005) observes, today’s world consumers have become more informed and require more information on buying Creativity in marketing is very important and necessary; it enables a company to come up with appropriate marketing techniques that are relevant to the market. It also makes the company to save on costs and at the same time help the company to achieve its objectives. From the studies it can be concluded that Panasonic is a good strong company with well structured marketing strategies.
Reference:
Barlon, K. (2006): The concept of the marketing mix Presentation on marketing management, Vol 1, Oulu University –Finland,
Bitner, J. and Booms, B. (1981): Marketing strategies and organizational structures for service firms, in Donnelly, J. and George, W. Marketing, American Marketing Association, Chicago.
Kilter, P (1996): Principles of Marketing: Stages of customer relationships. 4th European Edition Prentice Hall Harlow (UK)
Kilter, et al (2005): Marketing Management, Prentice Hall
Porter, M.E. (1985): Competitive Advantage: The Free Press, New York
Panasonic Company (2008): Company profile; retrieved from; www.panasonic.com.au/products accessed on 15/1/2008
