Proposal of a marketing strategy



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9.2 Quantitative Analysis


In this chapter we will evaluate expected economic results in terms of cost and profit. Objective of these strategies contained in the new marketing strategy proposal was to reach decrease in cost and increase in profit as much as possible.
In TAB. 53 we can observe the planned increase in profit thanks to A) cost savings in the amount of almost 500 000 CZK which in comparison to total cost of three strategies where we expect increase in cost overweights these cost of almost 317 000, or thanks to B) cost savings enriched with profit increase due to increased number of facades sold as in TAB. 49. This solution would bring even higher difference in comparison to current status since benefit side can be evaluated as more than 1 500 000 units of benefit (expressed in money) to cost side expressed in almost 227 000 units. The final result is therefore 1 281 496 of difference in comparison to current status.

TAB. 53 Cost Benefit Analysis



 A)

in CZK

 B)

in CZK

switch from traditional channels

370 861

switch from traditional channels

370 861

marketing plan creation - strategy 1

126 810

marketing plan creation - strategy 2

1 137 500

Subtotal - cost savings

497 671

Subtotal - cost savings + profit increase

1 508 361

Brands differentiation

61 125

Brands differentiation

61 125

CRM strategy

69 600

CRM strategy

69 600

Adaptation of showroom

50 000

Adaptation of showroom

50 000

 

 

Marketing plan creation - strategy 2

46 140

Subtotal - cost

180 725

Subtotal - cost

226 865

Total

316 946

Total

1 281 496

Resource: own calculations
Even though the second number seems as a better solution we would advice to be rather careful with employing strategy number two in marketing plan creation mainly regarding description of economical environment and future expectations in demand for costruction works. The expected response rate as well as 5.625 attendee/1 facade ratio could fail in the view of these circumstances. On the other hand we were not able to express all qualitative advantages in monetary units and therefore believe that above mentioned assumption will increase the total of at least 10% even though if we took for valid what literature says (that the 58 percent of companies had a payback on their CRM projects within a year and another 35 percent received payback in a timeperiod of one to three years (see chapt. 4.3)) we would receive increase of 20% (by decreasing cost of CRM cost).

9.3 Overall Evaluation


In this chapter we would like to gain overall evaluation of a strategy as for the four in theoretical part mentioned key points a strategy must fulfill in order to be pronounced healthy and useful.
Consistency of marketing strategy can be observed above all in two kinds. First if they comply together in hierarchical order, i.e. if the partial objectives support the main objective. In our case the main objective was analysed in order to reach partial goals which can not only be easily reach, but mainly easily evaluated. We proved in many cases that partial objectives are in consistency with the main objective and support it.
The second kind of evaluation of consistency is on the interdisciplinar level. How the set marketing objectives support objectives from other company´s functional areas and how they are supported by them, that is the question we need to answer. Here we have a really difficult tasks since we did not research all objectives in all company´s functions deeply, but one can be said. The objective of increasing profit is set throughout the whole company as well as the cost decrease is. We therefore believe that also in this field our strategy is consistent.
Consonance should assess how the strategy will beat so far existing problems and how it is going to respond to threads. If we compare weaknesses with suggested solutions – we surely cover the points of introduction of new materials, problem of decreasing quality of offered services or not existing conception of marketing. Also old equipment of showrooms should be solved through showroom readaptation and usage of IT through CRM implementation.
Economical effectivity has been shown through cost-benefit analysis together with profitability for the company in subchapt.9.2. To estimate feasibility we will have to reach to economical result of the company again. Since we know that operational profit for 2007 was 1 820 000 CZK and the cost of suggested strategies range from 180 000 to 230 000 CZK (which is approximately the cost of one facade) we believe that both strategies are perfectly feasible economically. As for other resources – there is no extra equipment needed which the company had to have for use, when we considered personell we though in terms of existing employees as well and as for timeframe we believe that all activities planned are well feasible within one year since implementation of CRM takes approximately 4 months, readaptation of showroom approx. 1 month and creation of marketing plan for sure not longer than 1 month.
In this chapter we evaluated the whole marketing strategy proposal in both quantitative and qualitative levels and found out that it complies with all four key points as mentioned above. We therefore not only confirmed that the strategy is feasible in all above mentioned points but also complies with hypotheses set in introduction of this work. We would like to give more space to evaluation of the whole work in the summary.


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