In our work we set out to suggest a new marketing strategy for the purpose of ensuring increased profit for the company Styl 2000. Two partial hypotheses included also the way which this should be achieved – per costs savings, increase in sales and through elimination of opportunity loss.
First we had to define the current strategy of the company. This task was fulfilled through collected knowledge of methods and practices generally being used in the company´s situation analysis. We had to go from the current marketing concept which states that the company should tailor its products and services to customers´ needs and apply this approach specifically to B2B environment which we aimed to concentrate on knowing well the company for which this marketing strategy proposal had been prepared. For analysis many of the currently used methods were applied – SWOT, Porter´s analysis of Five forces, Balanced Scorecard and GE/McKinsey matrix analysis.
In the chapters on targeting and positioning different strategies were described and organized in a way so that they could be applied to the practical part of this work. A individual chapter was devoted to the presentation of CRM software both as an approach to be reverted into a strategy as well as a useful method supporting other strategies outlined in chapters dealing with targeting and positioning. To evaluate the quality of our strategy we inserted a chapter concerned with qualitative and quantitative analysis, both of which were practically applied in chapter nine.
The company Styl 2000 was introduced as a small company which lacked a marketing strategy. First the description of the current status of the company was placed, followed by the company´s situation analysis. The company is operating in a stable political environment which inhibits its activities just through the time-consuming process of issuing building permits and a slow-down in the once generous policy towards construction of new buildings in both residential and non residential spheres. The marketing strategy proposed for the following three years had to carefully observe also the economical environment since a slow-down in demand for constructions is expected, which is why the company cannot count on an increase its market share, but rather increasing profit through decreasing cost.
SWOT analysis as well as Five forces analysis and Balanced Score Card provided us with information on areas which the new strategy should impact, whether through beating weaknesses or potential threats, or maximising the strengths and fields to the highest competitive advantage. In chapter 7.6, Marketing Mix Tools, we started with internal calculations on the effectiveness of currently employed marketing activities concerning all four items in marketing mix – price, product, place and promotion. This way we prepared the field for the new proposal of a marketing strategy.
Objectives posed in the first part of the proposal follow our intention to increase profit. We want to eliminate opportunity loss, reduce cost and increase sales and all these matters make background for strategies suggested later on. Brands differentiation and differentiation through increased quality of services are both based on recognition that the main competitors offer the same products and services as company Styl 2000. Quality of services can be reached through implementation of CRM, as theoretical knowledge confirms. Strategy of CRM software use and overall CRM approach is vitally important because it has a supportive function. Directly can only costs be expressed because the indirect impact of CRM will show as benefit in calculations of other strategies. We have however identified many areas including increase in customer satisfaction, added value of offered products and services and other non quantifiable and non financial benefits (customer retention thanks to early recognizing of signs for leaving, or improved information sharing).
The most important strategies are however included in 8.3 Positioning. We assert there decrease in the number of product lines, value based pricing together with good value strategy and implementation of keeping pricing and invoicing records in order to maintain fair approach to customers. All of these should improve perceived added value from the customer and increase customer retention. Opportunity loss is going to be eliminated through better fulfillment of wishes expressed in the survey on company´s key factors in services. We therefore suggest readapting the showroom and a change in the use of channels. Not surprisingly, this provision will also lead to a decrease in cost and a higher number of sales.
Finally, the chapter on Strategies in Promotion brings up the question of using promotional activities to the extent the company used to. A simple table in previous chapter 7.6 confirms that the funds for promotional activities are not carefully used and that this is the result of a missing marketing plan. To create a detailed marketing plan is therefore our main aim supported by the introduction of new activities which however will be more connected with the company´s chief activitiy – creating, selling and assembling pensile facades.
In the evaluation part of this work we have dealt with both qualitative and quantitative characteristics of our marketing strategy proposal. The overall assumption was that CRM strategy would support other strategies aiming at an increase in the quality of services and on improvement in key characteristics of services as with the interview directed at current customers. In order to evaluate the quantitative part of the strategy proposal we have put together all financial and nonfinancial benefits mentioned before in connection with suggested strategies and compared them with their expected cost. In both suggestions (i.e. the more conservative and more profitable one) we succeeded in proving that the strategy is successful in cutting costs and increasing sales – or in other words increasing profit.
One of the very important parts of our work was also to evaluate the marketing strategy proposal in terms of its consistency, consonance, advantage and feasibility. In view of all the above mentioned facts we dare say that this marketing strategy proposal has successfully met all expectations.
We would like to mention one important thing which did not yet feature in our work. Introduction of CRM could also help other areas of the company. When talking of financial characteristics of the company in the past we mentioned some bad habits, e.g. keeping inventory for a long time and therefore losing money. Implementation of CRM software would definitely help the company´s management improve buying and inventory policy since the just-in-time policy could be employed. Therefore, CRM software cost will bring benefits also in other departements, but to prove it could be a topic for another diploma thesis.
As for the overall evaluation of the results of this work: We have proved the main hypothesis saying that marketing analysis together with proposal of a new marketing strategy using mainly CRM software and methodology will increase company´s profitability. Also two partial hypotheses – usefulness of marketing analysis and increase in company´s profitability were confirmed and without any doubts led to further confirmation of the above mentioned main hypothesis.