Brand

Nowadays with the technology, especially IT technology, development, the business environment is becoming more quickly changing, and the competition is becoming severer, business organization therefore must introduce appropriate innovation strategy. BMW, as a leading automobile producer, continuously concentrates on the innovation to meet customers’ need. This essay discusses the innovation implementation in BMW through the analysis of its organization structure, creative climate and the management process of knowledge creation.

Creativity and ideas generation

Tidd et al (2000) states, the innovation is a business process of turning opportunity into new ideas and of putting these into widely used practice. In term of the nature, there are five major types of innovations: novelty, competence shifting, complexity, robust design and continuous improvement. While in term of the extent of change, innovations can be divided into incremental, radical and transformational models. Innovation deals with the change related to product, service and process, and the innovation management involves people, product, process and technology.

The innovation process argued by Tidd et al (2000) is first, scanning the environment to find the opportunities or threats; second, deciding what should be done responding to the environment; third, planning and obtaining resource to handle the change; last, implementing the innovation.

Introduction of creativity

Creativity is the basics for innovation. Gurteen (1998) defines the creativity as “generation of ideas whereas innovation is about putting these into action”. Two key elements of creativity are knowledge creation (KC), and ideas generation.

There is no widely accepted definition for KC, some definitions are described as following: “the ability to originate novel and useful idea”(Marakas, 1999), and when a firm acquires and adopts knowledge from others, it modifies knowledge to make it suitable”(Bhatt, 2000). The approach to KC is knowledge cognition, which is divided into distributed cognition and social constructionism.

A firm, to avoid the danger of reductionism by a single concept in knowledge creation, should adopt a multiple perspective approach to KC. Another reason for multiple concepts in KC is the diversity of knowledge types. There are also different descriptions to taxonomy of knowledge, a typical model created by Matusik and Hill (1998) is: tacit, explicit, individual, collective, private, public, component and architectural.

The ideas generation process stated by Rochford (1991) is 1. identifying and collecting ideas; 2. screening and evaluating those ideas. Ideas screening must be vigorous, for the cost putting the ideas into the practice, and the low successful rate of the innovation, which from the ideas generation (figure 1.). The resources of ideas generation are customer needs, salespeople, competitors, market directions, technology development and company culture.

Background of BMW

BMW group has one of the strongest brands in the world, and it enthusiastically retains the image of stylish, luxury and high quality automobiles. BMW group occupies the position in the world automotive market that any carmaker should envy. From 1990 to 1999, BMW’s deliveries rose from around 450,000 to 1200,000. In the meantime, its turnover grew from 13 billion euro to nearly 35 billion euro. The proudest thing to BMW is that it makes about twice as much money on each car compared with GM and Forts, although they had built more than it had. Now BMW group holds BWM, Rover, Mini, MG, Rolls Royce and motorcycle series of products, and it possesses plants in Europe and North America.

Innovation analysis in BMW

The organization structure and the internal culture are two essential elements to support the innovation. To quickly adapt the fast changing environment, the organization should have the characteristics as: flexible structure with organic and mechanistic mix, key people or teams, especially top people, focusing on the innovation and a proper creative climate.

Organization structure

Innovation is becoming more corporate wide, which needs an organization more organic. So business process reengineering (BPR) is necessary to any organization that wants to cope with the dynamic environment and keep ahead of the competition.

For years, BMW is well known on its conservative management. The organization structure in BMW at that time was a typical machine bureaucracy. Labors are confined in the classic divisions. From 1970’s the successful Japanese automobile companies introduce a new work structure concept-lean manufacturing, which stimulates BMW to change its organization structure and focus on the integrated activity. Firstly, BMW implemented a principle of interdivisional project organization in its Research and Engineering Center- FIZ in the late of 1980’s.

Then in 1998, BMW introduced a process-oriented organizational structure in the whole group. The tasks of product concept development and design are to be combined with sales, marketing and materials purchasing in a new task area bearing the title “Market and Product”. Product engineering is to be combined with the tasks of manufacturing planning and production to form a new “Engineering and Production” task area. All of the restructure enables BMW to respond to the changing conditions while maintaining its competitiveness.

The key people for innovation

The success of idea generation is very rare, and successful innovation needs key individuals to harmonize the innovation process. In BMW, from the top management level, people constantly concentrate on the innovation strategies. For instance, the top management of BMW set up a strong environment policy to improve the fuel economy of its cars through research and development. That is why hydrogen-powered and electric car occupy so important position in its future strategy.

Creative climate

Organization culture is the base in which innovation thrives. Establishing creative climate involves appropriate organization structure, proper communication flow, motivation system, training policy. appraisal system and deployment of strategy

In BMW, the favorable creative climate can be reflected firstly from its R&D facility. FIZ is the biggest automobile research center in Europe. Around 6,000 engineers, designers, model builders, computer experts and scientist of various disciplines work here, however, the use of the automobile is just one of a multitude of topics covered.

In BMW, people introduces a product database system: a significant benefit of integrated automatic design is the provision of a centralised database containing design and manufacturing related information on each product. This can be accessed by various functional groups – engineering, marketing, purchasing, finance, manufacturing, and servicing – and provides all necessary data on each product.

BMW also reduced physical distances of information flows in product development. In FIZ, the nearly 6,000 engineers, none of whom has to walk more than 150 metres to talk to a colleague. BMW allows a first-concept designer to discuss easily with a production-line engineer (the building houses prototype production lines) the manufacturing practicalities of even an outline design idea.

Besides employees, BMW also encourages customers involving in the product innovation. Every year, BMW gets huge amount of new ideas from all the channels. However, compared with its Japanese competitors, which receives a piece of advice from each employee a week, BMW should motivate its employees more actively.

Motivation is import factor to keep a creative culture in an organization. In BMW, there is a satisfying reward system for the accepted suggestion. Moreover, BMW encourages its people to develop their professional and personal skills to enable them to meet its organizational goals. An integral part of its business strategy is a “learning organization” approach, which supports achievement of development and career potential for employees.

The management process for knowledge creation

There are three models of management processes for knowledge creation: up-bottom model, such as the X-ray machine in GE; bottom-up model, such as the invention of ‘post-it’ pad in 3M; and middle-up-down model such as the Mini-Copier invention in Canon. The different management processes for knowledge creation come from the different styles of management and form different types of knowledge accumulation. The top-down model deals primary with explicit knowledge, the bottom-up with tacit knowledge, and middle-up-down with both types of knowledge.

In BMW, people adopt middle-up-down model. First, the top management articulates the features of the new products, although the new concepts are vague in this stage. Then, the R&D people combined with the production-line engineer do the detailed work, and make the new ideas available. Last, the new products are put into the production lines and eventually appear in the market. The concept of the new product is tacit, but it should be articulated by the strategy. The innovation then is the process turning tacit knowledge into explicit, or the process of externalisation.

Conclusion

In general, BMW has done well in the innovation implementation. This paper mainly discusses the innovation system within the group, however, many external factors, like government policy, also influence the innovation implementing within BMW. Focused on the quality and kept itself with the popular style, BMW pays a lot of attention on the innovation management.

Within today’s society, women are constantly reminded of what we perceive as beautiful. We are surrounded by images and advertisements that promote the “perfect” looking women, no matter what age, size or shape. As a society our view on beauty standards have shifted so much due to photo-shop and other photo editing apps, as a result this has led to many women feeling inadequate. Along with these computer-enhancing apps, the number of women getting surgery to physically modify their body to look how it looks when under the influence of these photo-enhancing apps, “In 2007, there were “nearly 11.7 million cosmetic surgical and non-surgical produces performed in the United States which is an increase of 500% in the number of surgeries performed over the last ten years.” Due to this growing obsession with our perception of beauty we have created a billion-dollar industry that holds the power to alter and shape our women.

From being in this forward-thinking society I have witnessed the growth of technology itself and even more the growth of social media. It is my opinion that social media has the biggest influence on the beauty industry, and plays a large role in its success and popularity. Due to app such as twitter and Instagram, it is so much easier for brands to promote their products, and especially with beauty products their target audience is usually teenagers and these are the people who use social media the most; therefore, this hits their target audience perfectly. The large fan base of the beauty bloggers and youtubers allows them to advertise products to their followers and inspire them to follow in their footsteps, which trends and looks. Elena touched on how over time we have begun to see individuals start to follow a beauty trend, these ideas begin and then travel from person to person through the realm of social media; “Social media creates an environment of excitement and immediacy.”

Today’s technology involves photo sharing apps, beauty influencers post sneak peaks of their latest products this instantly makes it known to their millions of viewers what the next trend is going to be, these fans then go out and buy the latest items. Now that online shopping has been made possible, sales have skyrocketed. Online shopping allows small towns and cities where the stores and brands aren’t available to buy to simply go online and purchase. Fifteen years ago this wouldn’t have been possible to do. This has helped people establish their own makeup brands online. “Mega internet cosmetic line, Colourpop, which was founded in 2014 has seen sales over $2.1 Million in 2016: all due to promotions solely from social media.” (Elena Parrish, Why The Makeup Beauty Trend Has Become So Popular article), this is really shows to us just how much the media and internet have influenced the advancements within the beauty industry, truly amazing.

There are many studies that have been carried out to show us the effect that social media plays on our self-esteem and how we view our own self-image, although a significantly less amount of research has been carried out on the effects that the beauty industry and how the consumer’s image is effected, but the pure fact that $7 million is spent on beauty products a year suggests that it has a large influence on the consumers in some manner. Marsha L. Richins and Peter H. Bloch carried out one of the first studies of he effect of cosmetics on women “You Look ‘Mahvelous’: The Pursuit of Beauty and the Marketing Concept.” The study helps us to understand items that are “used to increase attractiveness and to obtain accompanying social benefits.” and how they are then related to how we judge attractiveness.

These items vary from jewelry, clothes and makeup; simply anything that makes someone feel attractive or better about themselves. From the study they found that people who feel as though they are unattractive “reply heavily on adornments as compensatory tools”, therefore those with low self-esteem use these products. Another study which supports this is Cash&Cash’s (1982) study “Women’s Use of Cosmetics”, which found that women who feel especially self-conscious in public relate to a higher use of cosmetics; women feel as though they blend into the world that they feel as though they don’t fit in by using these adornments. In Elena Parrish’s article “Why The Makeup Beauty Trend Has Become So Popular” she really begins to explain the rise within trend of beauty gurus and people influencing beauty trends by making videos or featuring on tutorials. She states “Most trends don’t just happen; they have a purpose and speak volume about the generation and their habits.” (Elena Parrish, Why The Makeup Beauty Trend Has Become So Popular article).

Elena highlights the fact that makeup is now not just perceived as a feminine product, it is used across both sexes, men and women are choosing to use makeup. She states that “A big part of this can be credited to how accepting and liberal we have become as a nation. Thirty years prior to 2016, we would never have expected or imagined the freedom of expression in art and makeup as we do now.” (Elena Parrish, Why The Makeup Beauty Trend Has Become So Popular article), I completely agree with this statement, I think for some people makeup is a way to express themselves, and people are thinking of newer more creative ideas than ever before, twenty years ago art and expression would be accepting or even thought of to be like it is now within art and makeup.

I believe that this burst in creativity and fresh thinking is what has helped in generating ideas and trends. We have surpassed a lot of expectations we had set as a society, since 2008 there has been the first black president of this country and also the first female nominee. As I commented on above we have a considerably less amount of information on the effect that the advertisement of cosmetics have on the consumers, although this also has an effect on cosmetic industry itself. It is taught to girls from a very young age that they should try out makeup and experiment in order to increase their beauty and attractiveness. This results in makeup being used as a temporary boost of self-esteem. The fact that makeup is a quick and easy way to solve beauty problems is extremely pleasing to women.

Beausoleil carried out a study called “Makeup in Everyday life: An Inquiry into the Practices of Urban American Women of Diverse Backgrounds”, within this study he comments on how women themselves report to have different cosmetic routines depending on what they have planned for that day (Beausoleil, 1992 p. 33). Due to the fact makeup is so fast and easy and cheap compared to other drastic measures that can be taken such as surgery, exercise or diet, makeup is the easiest way that women can feel they can measure up to society and the standards of beauty it has. The fact that now some women don’t think twice about applying makeup, it is a part of their daily routine, Sarah Greenwald touches on this in her article “The Normalization of Makeup: How Society Has Redefined the Natural Women.”

She comments that this is so ironic because something that is technically so unnatural has become a natural phenomenon. Sarah has no issue with the use of makeup, she agrees with the way that makeup is used to express one’s self, but what she fails to agree with is the normalization of makeup. She states “society has normalized makeup as a natural feature of being a woman and continually stigmatizes makeup-free women.” (Sarah Greenwald, The Normalization of Makeup: How Society Has Redefined the Natural Women article), Sarah believes women who don’t wear makeup are now criticized in the all aspects of life, they are pressured to be “normal” and if not there could be consequences. Within the article “The Normalization of Makeup: How Society Has Redefined the Natural Women” it shows that the findings from a study prove that women who wear makeup are more likely to get a job in a job interview as they are seen to be a lot more competent.

To conclude, I feel as though due to makeup and its popularity of it as a society we are becoming more and more obsessed with what we look like and how we are perceived by others. Although I really support women doing whatever they want in order to make themselves feel beautiful and have confidence, I feel it shouldn’t have got to this point where we are so hooked up on this, why is it that we don’t feel beautiful without cosmetics? I also think a big factor of this is how the advertisements portray the women that use these products and this is apparently how you will look if you also use them, which as a result makes people want to purchase them. I believe that this widespread of confidence within our men and women of today has led people to not be ashamed of who they are, who they like and what they like; for example, perhaps in the past people were ashamed to wear a lot of makeup and stand out but now people are bold and proudly sharing their looks on social media.

The Super bowl Ad that I will analyze in this topic is the Doritos ad which played during the 2009 Super bowl. The target audience for this advertisement was in the 16-28 year range predominantly male. The product that was prominently displayed in the advertisement was Doritos nacho cheese tortilla chips which are primarily a snack. The idea behind the advertisement is not new, neither is the product that is being displayed as it has been in the American market for several years. Doritos is popular in the United States market as a snack.

The advertisement in question mainly targeted towards individuals and families with moderate to low income in the United States. However, the product placement during the super bowl ensures that the product is not only marketed to at least 90 million American consumers but also a total of 141 million viewers from around 232 countries watching it as well, increasing brand popularity, recognition and market penetration in several more countries by emphasizing its slogan “the power of the crunch”. The advertisement also creates a psychological association between the super bowl and the Doritos brand.

The advertisement this year primarily uses humor to create feelings of joy, pleasure and comfort in the viewer while associating it with its slogan. Viewers associate this experience with the product itself. The advertisement also promotes a lasting impression of the product using sexual imagery and shock/ awe moments which prove to be quite effective. In comparison to other brands Doritos does not offer a significantly different product in terms of price or value. However public perception of the product as well as aggressive marketing has made it one of the most popular brands in the United States.

In 2009, the brand marketed the Do it yourself competition. This competition challenged viewers to create an advertisement promoting the product which would be shown during the 2009 Super bowl. In conclusion the Doritos succeeded in increasing the popularity and recognition of its brand in the United States and several other countries around the world.

References

• Ramirez, S. (Producer), Heimbold, E. (Writer), & Heimbold, E. (Director). (2009). Doritos Super Bowl Commercial 2009 : Power of the Crunch [Motion Picture].
• Unites States: http://www. youtube. com/watch? v=fDyJgy7Rq7g&feature=fvst.

In section of the case study will describe the CUBE (Customer-Based-Brand-Equity) del for Ralph Lauren brands. Second section will evaluate the role of brand association in the company’s success. The third section determinate Ralph Laurels brand extension decision to Rugby and the last section will be recommendations for the companies regarding stewardship of their brand in the future. 3 Section 1 1 . 1. Identity of Ralph Lauren brand Brand Salience The Ralph Lauren brand has been mainly victorious in defining a exact niche group of customer’s, offering a brand knowledge that is casual yet classic.

It has urbanize a whole brand experience encompassing creation, display, retail, customer service and advertising resources. Ralph Lauren has been winning in extending from luxury garments to selling Jeans, bed linen and even labeled paint. The brands are updated and transmitted across cultures; Ralph Laurels marketing with logos is present around the world. The varied products include one of the world’s most widely recognized families of consumer brands. For example the Polo brand draws on themes that have been explained as “country house clout, cottages and castles and Bridgehead Revisited” (Ellwood, 2002).

These all advise a shape of product character that is backward-looking and nostalgic. They also propose a form of uppercases lifestyle future to e aspiration. A digit of brand names and logos of Ralph Lauren Corp.. Advises a leisure activity of the upper classes, yet it ass been presented as available to a wider audience. It is seem as more approachable than the typical Seville tailor yet purports to offer similar brand values. One of the strengths of the organization is that the different symbols and logos are all easy to recognize and to recall also it is easy for the customers to match the different sings to the right labels.

Thought their brand equity with its brand extension / brand trenching advertising strategy, they amplified awareness and profitability form offering more than Just one product category (Ralph Lauren – main weapon, 2010). 4 1. 2. Meaning Brand Performance The Primary characteristics of Ralph Lauren brands are reflecting high quality products in all categories to the customers. The organization is offering products for different age, gender and social groups. Ralph Laurel’s brand images are reflecting an upper-class society. Every customer can identify it self with the specific brand.

Every make is built on individual design and style, and it is appealing o the right target market. The organization is well organized with success in different ways of service also they offering warranty (up to 10 years) for the products. The organizational Is global organelles. Ra VPN Lauren NAS attempted to secure ten legal right to use images of polo players as part of its trade dress, ad prevent to American Polo Club from doing so. The country of origin for Lauren is USA and it is reflected in some brands (RL with the US flag).

The products of the organization are available in different sizes, colors, shapes and materials (Ralph Lauren Weapon – online store, 2010). The prices are different for each brand: “… From the very expensive Purple Collection to the more inexpensive Polo Jeans and RL. Each label provides a full range of products and line extensions” (Seafarer, 2005). Brand imagery The visual representation of Ralph Lauren is an intelligent, people of good social standing physically fit handsome young person with timeless style. Ralph Lauren uses images of the upper-class society, horse riding, sailing, and exclusive hobbies to connote that massage about his clothes via the proximity of the two images” (Ellwood, 2002). Ralph Lauren products appeal to different age groups, starts room teens to retirees (16 to 55 years olds): “Millennial teens now wear Junior-sized versions of the DENY and Ralph Lauren garb that adults wear… “(Quart, 2004). Man and women with different material status and income levels are wearing the products all over the world. The brands are present through social events such in sport tournaments.

The imagery characteristics comprise a feeling of an exclusive life standard; the brand mediated an attitude of nobility, luxurious, elegance and classic style. The realm of the imaginary, of imagery and meaning is the American Wild West for Ralph Laurels RL brand (Figure 1). The organizations have unique designs; the clients can recognize the Ralph Lauren elements which are reflected in the products (Figure 2). 1. 3. Response 5 Consumer Judgments Ralph Lauren is one of the world’s premier brands, generally recognized and associated with diverse designs, luxury and quality.

The brand quality is well organized; it is used high-end qualities for their designs, fabrics and products. The strength of the organization is their well prepared service based on: ability of products, customer services, locations, etc… (Ralph Lauren Weapon – about, 2010) The Company is a market leader in the creation, marketing and striation of premium lifestyle products in four categories: apparel, home, accessories and fragrances are not fewer than 10 brand ranges within the Ralph Lauren organization (Annual Report, 2010).

Consumer Feeling The brand likeability well structured thought all product areas. The brands; Rugby and Polo reflect a sportive image to the customers and sport is connected with fun. Sport events hosted by the company they are linked with amusing and leisure. The brand stores are constructed on a warm atmosphere with friendly stuff which is important for the general view. The brands of the corporation represent a good feeling to the clients, he different logos and packaging of the goods reflects confidence, warmth, trustiness, self-respect and high quality.

Ralph Lauren products mediated a comfortable feeling when clients use or wear the products (Seafarer, 2005). 1 4 Relationship Consumer – Brand Resonance The brand is successful in transmitting a picture of loyalty to their consumers, on the other side the consumers reacting with the same result, they capturing the image of faithfulness and they groom some kind of relationship to the specific brands. The brand reflects a status of healthiness and upper-class standard, some clients want to show there live-status through the RL rodents.

Ralph Laurels customers are general loyal, they trust in the quality, service and the designs. Ralph Lauren website and the RL magazine informs the clients for new products 6 and lifestyles, the company send out quality magazines and catalogues to the registered brand-loyal customers, for information’s around the organization (Awoken, 2007). Enthusiasts of the brand have the option to subscribe the e-mail service to get the newest releases and information’s all around Ralph Lauren on the weapon to get a direct connection to the brands, and they have also the choice to ion fan clubs such as in face-book, twitter etc…

The Ralph Lauren organization is uploading important information’s about the company for shareholders, press, customers, general viewing, investors and so on… (Ralph Lauren – investor, 2010) Section 2 Ralph Laurels success in brand association can be analyses in different points (Figure 3). The diverse brand logos are reflecting a specific image to the customers. Lauren brands can be allocated in dissimilar price classes, the customers can categorize the prices, styles, and exquisite thought the specific logos.

Every label responds to the right target market. Through the imagery of the signs, clients can identify which the sportive and which the elegant products are. Ralph Laurels country of origin is the USA; Laurels cooperation is established in 1968 as Polo’s Fashion. The most of the products are reflecting the “Americans way of life”, RL logo is decorated with the US flag, it is a sign of liberty for the US consumers. Ralph stores are global present; the flagship of the R.

Lauren stores is located in Madison Avenue in New York (Vindictiveness, 2010), private organizations are offering their products; Store in stores: Harrows (Harrows, 2010)… The company is offering different rodents on their weapon (Awoken, 2007); RL goods can be found on private websites and retailers as well (my-wardrobe, 2010). The cooperation has the rights of 25 lucrative licensing (Answers, 2010), the company is offering those license in alternative products through co-branding; “Ralph Lauren has built his fashion, fragrance and home furnishings… (Rotation, 2006) the company is also providing jewelry accessories. (Ralph Lauren – product, 2010) By defining the diverse fashion brands, it can be articulate that they 7 are capturing different lifestyles for the various target market, the brand Polo is eased on traditional style”… Polo, offering styles that were refined, a mix of English classic and traditional American, and conveyed the image of landed gentry to a society that had little use for class” (Answers, 2010) where Rugby can be defined as sportive Ana Purple Aloe Is more elegant Ana exults etc…

Ra VPN Laurels characters though licensing reflected in the diverse brand logos; such as POLO, the organization owns the licensing rights for the polo player design that means the logo is specially certified for use by the company (Parr, 2007). ” Polo shall have the sole eight to determine which trademark shall be used in connection with each particular Licensed Product” (Finland, 2010). Ralph Lauren is the spokesperson for the organization; he is also the “face” of the brand.

He is born in the street of the Bronx, the story of him is like a myth from a storybook; form no one to one of the famous designers in the world. He is present in TV, events, catwalks, fashion-shows & gossip columns (Girding, 2008). Though diverse sponsorships are the organization present in events, for example; fashion shows with after parties and charity events “Foundation o support higher education a ND p roger m s w h I c h p rove did he It h ca ere n m deed IAC I lay- u n d e RSI e r Veda communities” (electrotherapist, 2010).

Events for advertising plays a big role for the company, the newest gig is the AD cinema advert (Amassable, 2010). Ralph Lauren is highly distinguished with alternative awards and reviews; CAFE (Council of Fashion Designers of America) for the categories in “fashion design” and “best in business” (CAFE, 2010) and they earned an award from the NOR for the best retailer; “The National Retail Federation has selected US fashion firm Polo Ralph Lauren for its Gold Medal Award in retail. Oust-style, 2009) and so on… The well known companies success is reflected in there brands, awards and products.

Section 3 Ralph Laurel’s brand extension decision to Rugby is excellent, because the company is capturing a new field for their brand association. The Rugby brand talks to the younger generations, for the sportive committed target audience also known as the Gene-Y generation; … Young people were not wearing Polo, and in fact the label has taken on hippies for teens and young women in light of fashion’s current preppy mood. The young market from what we know buys the knit shirts, but [with Rugby], ere dressing them head-to-toe in shirts, sport coats, evenings.

It’s affordable and authentic,” the designer said (Lockwood, 2004). The latest objective is to capture the growing college market with a novel vertical trade concept for the brand. Ralph is now one step forward against the competitors, the organization is capturing products for every individual customer. The look of Rugby fashion stand for the college student from an earlier period; “The Rugby line represents a nostalgic look at the Ivy League experience and the ideals of a collegiate setting” (Hancock, 2009).

Models with tattoos ND piercing are used for fashion picture-shoots; it is Rugby way to be apparent for the Gene-Y customers. The advertising strategies for the brand are build on a successful way thought; Technological factors such as a mobile device application “Ralph 8 Lauren launched a mobile app with its Fall 2008 collection and is now selling all kinds of products with this mobile technology’ (Blanch, 2009). The phone app: “Make you own Rugby’ is offered to clients for free download, to design their own shirts, choosing shapes, colors and uploading pictures.

Every one with the app can create an individual rugby close. It was a victorious way to attract the already exist and new customers (l I ones, 2 I en organizational Is attracting ten consumers Walt n Levers events; new store openings, fashion shows, leisure activities, competitions, parties etc. All information’s for events can be filtered out from Rugby weapon (Rugby – Style Blob, 2010). The Rugby Cafe is a place where rugby clients can meet and to become acquainted with each other, it is a space where consumers can order food and drinks in a comfortable atmosphere (Rugby – Our Stores, 2010).

Purchase prices for Rugby articles are more reasonable in the market; “the Rugby store offers a repay lifestyle collection at more affordable price points than Laurel’s Blue Label (only available at Ralph Lauren stores) and Black Label and Collection (sold at select department and specialty stores as well as Ralph Lauren stores. ) Rugby will be around 40 percent less expensive than Blue Label in some product categories” (Lockwood ,2004) Rugby by Ralph Lauren is a triumphant way which attracts the younger generation; with the attractive, casual, sportive and leisure oriented, historic based designs and products.

My first recommendation for the stewardship of Ralph Lauren cooperation future is, o produce their all products in the USA, because it would be reflect more quality “made from Americans to Americans” it can be a slogan of advertising for the US market, for every other countries, it can be “made from Americans for the World”. The second recommendation is to be more different than the competitors, M. Numeric (2007) sad it before: “Differentiation, the art of standing out from the competition. It can be everything, for example; a space in Ralph Laurels website, where customers can design and buy their own Lauren sweatshirt, NIKKEI is offering this with shoes already to their clients (Nikkei, 2010) The third advice for the organization is to advertise more in the East of the globe (East and Far East). The different brands are already known in the US and Europe but not really in the East countries like; Turkey, Iran, China etc… , only 1 or 2 brands (POLO, Ralph Lauren) are popular there, but what is with the other brands (chaps, purple label… ) they are not really recognized and present in those countries.

There is a powerful target market for the Ralph Lauren cooperation, with effective advertising strategies, the company can be successful in adding clients for their products, the result can be; more sales, profit, high turnover, customers, reputation and so on. My fourth proposal will be, the advice to work with other famous 9 persons together, it can be; popular designers, celebrities, politicians etc… , the company can make features in the designs with those persons, it can be for example; Ralph Lauren winter collection designed by Marc Jacobs or Beam’s graphic design on Lauren shirts…

Those features can attract more customers to buy Ralph Lauren products and it will be a good social advertising for the organization. The last point of y recommendations will be that the company can produce their products ecological responsive. They can use for the manufacture of Ralph Lauren products environmental friendly materials; colors, fabrics / garments, recyclable goods etc. A big organization like R. Lauren can reduce the carbon emissions significantly and that would be a positive respond from the clients.

Reference groups have a high influence to the primary target audience, which are the housewives. The closest groups of people to housewives are the husbands and the children. Since housewives are the mothers for the children, they need to decide on which product of food or fruit to buy for their children for consumption. According to Gourmet Retailer (2008), mothers are concerned with feeding their little one the most nutritious diet possible. Thus, they sake the decision to purchase “Maya Brand” canned fruits because it contains no preservatives and MS (Maya brand, 2009). Maya Brand” also provides a large variety of fruits, which are mainly pineapple fruits, mixture of fruit cocktails like peach, pears, grapes, cherries and fruits snacks as well. Children are usually very fond of all these, because what children want Is different products throughout the time of consumption, and not the same or similar product over and over again. Social class is the hierarchical categorization of people into distinct status classes, so hat members of each class share similar values, Interest and behavior (Chaffinch, et al. , 2008). Social class Is divided into upper class, middle class and lower class.

It Is determined by a complex set of variables: household Income level, occupational prestige and educational achievement. Income directly affects ones attitude towards a particular purchase. For upper class people, they usually work in a big company, meaning they will have a busy working hours for almost everyday. Due to their occupation, they will not have time to shop for fresh fruits in the market. With once of health at the same time, they will purchase ‘Maya Brand’ canned fruits as It’s a very popular brand, with no preservatives and MS, and Is available In almost all convenient store or embitterment, Tort example, “Gallant Hypermarket”.

Meanwhile, for the lower class people, they usually have a lower household income level. As ‘Maya Brand’ canned fruits are cheap in price and it is value for money, they will choose to purchase it to satisfy basic needs. For instance, Gap, Ralph Lauren and United Colors of Benton understand how parents reflect the brand choices in the children’s market (Koala, 2007). Parents especially are influential in apparel purchases because children are unable to pay for their own expenses of a purchase due to high cost. In addition, social group and peer influences are considered as the significant reference groups.

Research shows as the age of a child increases, peers become more influential on apparel decision- making and not their parents anymore (Bridges & Burgess, 2010). Teens nowadays, make the purchase decision on their outfit, based on the interaction within the peer group. They enjoy making decision on themselves, while taking consideration into there friends’ opinion (Grant and Stephan, 2006). 2. 2. 2 Social class that members of each class share similar values, interest and behavior (Coffman, et al. , 2008). Social class is determined by a complex set of variables: household income level, occupational prestige and educational achievement.

Income directly affects of ones attitude towards a particular purchase. Thus, the motivation of people in upper class is stronger in owning the latest fashion trends compared to the motivation of people in middle and lower social class (Peter & Olson, 1999), Upper lass people are concern on the body image and self-image whereas middle or lower class people tend to evaluate products in terms of functionality rather than the style of the garments. Higher social class associates clothing as wealth and luxury thus, they tend to dress in expensive and high in quality of apparels (See & Lee, 2008).

Such high fashion retail store includes, Gucci and Airman Exchange. In the contrary, people in the lower class will consider whether the clothing is comfortable, reasonable in price whereas fashion trend is the least important aspect (Kennel, 1976). It) Message framing ii) advertising appeal Advertising can help companies develop consumers’ awareness to an unmet need or introduce a product that consumers may see as valuable. This influence is often present when new products enter the market. Customer awareness is often low for these items until companies promote them and attempt to drive customer demand through advertising.

Companies may also need to use advertising to stave off the popularity of a competitor’s products in the economic market. This will result in advertisements that will influence consumers to change their buying behavior and witch products for specific reasons, such as cost or quality. (Vitae, 2010) “Maya Brand” advertise its’ company on Faceable to enhance its’ fame to the public as well as the people around the world. As Faceable is a social networking service. It allows “Maya Brand” to market Its prattle Ana products to lots AT networks . En AT ten advertising appealed used by “Maya Brand” is by organizing a ‘Community Care Campaign 201 1′, which one free canned food is given with Just one “like” button (Diagram 5. 1). Their mission is to provide donation of canned food to 40 charity home in 2 months. They have successfully supplied 3663 cans for the moment. In this case, its generosity will result in its brand name sinking in consumers’ mind. As housewives are mothers of the children, they tend to be attracted to this brand as the campaign is helping the children who need strong support in terms of food.

They understand how children will be without care. Besides, if “Maya Brand” can sponsor its products to so many charity homes, meaning its products have trusted quality. This is because if it does not have the required quality, it might spoil its own image by doing so. Thus, housewives or mothers will feel that “Maya Brand” is more trusted in terms of its quality. Www. Oho. Com For example, advertising on faceable. Read more: The Influence of Advertising on Consumer Buying Behavior I oho. Com http://www. Oho. Com/facts_6948058_influence-advertising-consumer-buying- behavior. HTML#sizzle Alfonzo behavior. HTML#sizzle Ladings ‘v) Humor in advertising. Www. allaboutmedicalsales. Com Some Definition of Humor in Advertising: ‘Humor’ in the dictionary means a quality – being amusing or comic but in advertising it is serious business. In advertising, humor is more than Just making a munch of people laugh. Some of the best brands in India have leveraged humor to such an extent that the viewers look forward for newness in humor each time they see a new commercial from that brand. To illustrate, Officio has been one of those brands which have used humor so intelligently and subtly that it remains in people’s minds.

Here again one needs to closely view the product and the category before applying humor to sell your product. According to David Googol 30 per cent of advertising is based on humor. Humor sells if used creatively with a strong idea and great execution. Claude Hopkins, the father of modern advertising had a different view on this. He was of the opinion that people don’t buy from clowns. But in India over the last two decades humor has been drawing lot of attention for communicating a product. Also the conventional wisdom of thinking among our people is that when you buy products it should deliver some value and benefits.

These could be nutritious for a health beverage, labor saving for a washing machine or a dishwasher. Humor in the dictionary means a quality of being amusing or comic but in advertising it is serious business. In advertising, humor is more than lust making a Duncan AT people laugh. Humor tenant a strong idea and great execution. (.NET. COM) Using Humor In Advertising Advertising Is Not A Funny Business s uses creatively Walt First, a warning. Professional Advertising does not recommend that you use humor in your advertising. A lot of people simply don’t have a sense of humor.

You lose them immediately, and the potential size of your market shrinks. And humor is in the eye of the beholder. It is commonly misinterpreted. Many people will not get the Joke. Your market size Just shrunk again. And humor often insults someone. They may simply get angry because they don’t get the Joke. This is fire we are playing with. Your market Just shrunk again. Is it worth the risk? Laugh Out Loud – Advertising Humor Yes, humor in advertising is risky. It can also be devastatingly effective. When done right, humor works – really, really well. Advertising is about getting attention.

The best ways to get attention with advertising are with strong visuals, sex, powerful headlines, and humor. Let’s look at how to use [or not use] humor in advertising. Advertising humor is wonderful for getting attention. As you look at some of our ample ads, we hope you get a good idea of what we mean. Advertising humor can be extraordinarily effective when it is used correctly. People will actually look for your ads, and talk about them if they are good. But there are rules about using humor in advertising to represent your company, and following them is probably a good idea. First, people like funny things.

They relax and pay attention when they know you have a sense of humor. It puts them in a good mood, and it creates a more comfortable atmosphere and a more positive image for your company. It makes you easy to approach, and easy to remember. Advertising humor works best with established and commonly purchased products. Humor in advertising works for business services, familiar items, and products we all know. But corporate image and industrial advertising are serious business. Unknown, KY, expensive, or sensitive products are not normally salute to ten lighter toucan AT advertising humor.

Advertising humor also needs to be well suited to its audience. If your customers don’t get the Joke, then the Joke will be on you. A sophisticated audience will understand your irony, satire, and puns, but a young audience may only understand lipstick comedy or a silly cartoon caricature. Inside Jokes can be effective if the recipient understands that it was done for them, but nobody else will get it. And advertising humor can backfire. If you make a Joke at the expense of any one group, you will surely alienate them.

Everyone loved the “Where’s the Beef” commercials done by Wendy – everyone, that is, except the senior citizens who did not like being portrayed as grumpy old people. Advertising humor also needs to be product specific. We have all seen funny ads we liked so much that we forgot what was being sold. Advertising humor must relate erectly to your business or products if you want to be remembered. And advertising humor has a relatively short life. The first time we see it we may laugh out loud. But after a while, although we still may smile at the Joke, it’s not so funny any more. Funny ads need to be replaced periodically.

Will advertising humor work in your ads? Absolutely – if you can make it appropriate to your products and customers, if they understand it, if it is related to your business or message, and if you change your ads frequently enough so that they don’t wear out. K, here’s the punch line. Advertising humor definitely gets attention. And if your ads don’t get attention first, they will be anything but funny. But when done right, advertising humor can send your ads light years ahead of the competition, and that’s what Professional Advertising is all about. Www. myprofessionaladvertising . Mom Power of humor in advertising V Sympathy, GM 20:20 Media The role of humor dates back to many years when all of us used to view films like the Charlie Chaplin, Laurel and Hardy. These actors and characters really made all of us laugh when we sat and watched their movies. Even all our Hindi and regional ivies in India always had a comedian to play a very important role and provide the movie a touch of humor to give the audience some fun and Joy. Every Hindi movie had an actor like Method, Seepage, Devon Versa or an Saran who played a very important role in making the movie entertaining and thrilling.

The same strategy is used by many advertisers in India into their advertising to get noticed and stand out in the clutter with memorable humor which remains sticky in ten blower’s Milan. In Tact news papers Like ten Limes AT IANAL nave made every reader smile early morning with R. K. Legman’s cartoon. Even individual personality or celebrities try and use humor to position themselves differently in the people’s minds. One such example that is top of mind is our Railway Minister Aloe Parkas Hydra. His witty and funny speeches and replies have positioned him differently amongst other politicians.

So humor as a tool has been a strong weapon for many brands to draw the customers’ attention. Different view on this. He was of the opinion that people don’t buy from clowns. But or a dishwasher. Role of Humor: With more and more channels mushrooming, clutter has become a significant problem for most brands. Hence to beat the clutter and break the ice, humor has been used by many brands to answer the problem. Over a period of time humor has been proved to be one of the best techniques to keep the customer laughing and grab his attention with some sticky and creative idea.

The proof of the pudding for any humor based on advertising remains in forcing the audience watch, laugh and most importantly is able to recall the brand easily. Brands must ensure that if they are using humor to sell a product then the connect and the equity of the brand should not be diluted. According to some research humorous ads are recalled fast ND easily and it also elevates the consumer’s happiness and mood. Finally humor captures the viewer’s attention, cuts through the ad clutter and enhances recall. If not crafted properly humor can also backfire at times.

Product and Brand connect: It sometimes so happens that a Joke in an advertisement is so powerful that the consumer tends to forget the brand. Hence it is important that there should be a strong connect between the product and the humor that you are trying to convey. The Pizza world ad showing a hosepipe being used to cool off someone who Just had a spicy plaza Is a good Ana relevant example wanly connects Walt ten Drain Ana really communicates that when you ask for a spicy pizza we deliver it with full pride. Understanding the nuances of the brand and the audience is very important.

Overindulgence of humor can put down the audience and the brand if not executed in the right taste. The Maul undergarments ads which tried to use humor and sex to sell their brand never went off well with many consumers. The brand did get some publicity due to controversy but did not win the hearts of the target audience. Hence it is important to base your Joke on the core values of the product and the service proposition the brand is offering. No product connect means no effectiveness. All these results in huge wastage of the marketing budget.

Types of Humor in advertising: Using a comedian: Here instead of building humor in the advertising one can use a comedian actor to promote the brand. One’s choice of comedian has to match the values of the brand. One of the most memorable advertisements that have used a comedian well has been Charlie Chaplin for Cherry Blossom shoe polish. The most recent one in this space using an Indian comedian which has been noticeable and successful is Domino’s Pizza which has plugged in Parses Rival very cleverly. Capitalizing on the current topics : Use the current hot topic in all walks of life which is funny, sticky, memorable and controversial.

Maul Butter has been doing these for several years. The advertising deployed has been very humorous and are always based on the current topics with a tongue-in-cheek approach. People never get fatigued watching the Maul ads. People eagerly wait for what Maul Butter outdoor campaigns by constantly looking at the prime hoarding points where Maul butter is visible. Strong idea based humor: Here the strong creative idea is carefully blended with subtle humor. The case in example is Officio. The powerful idea with humor helps in beating the clutter.

Centre Shock electric gum is another good example where a strong advertising idea (Idea sprung up from the product) with the help of humor helped in translating into a great piece of campaign. Saint Goblin glass is another wonderful example of how humor has been used subtly. The restaurant advertisement (where the water is thrown) created by the company is so refreshing that one never gets bored of viewing it. Using the right type humor in advertising will be determined by clearly defining your objectives and positioning of your product.

This, supported with a strong idea ill further help you to create good advertising which can be sticky and memorable for a long time. Humor will help if it is relevant: Mostly humor is used in products which is low in investment and which has high impulse purchase. (Candy, beer and mosquito repellents). One cannot totally generalize this, as consumer durable products have also used humor effectively. Humor may not work in category like condoms, sanitary napkins as tense products need to explain ten Detentes AT ten product more clearly. Similarly cars and diamonds may also not use humor as the decision process to purchase is long.

Finally we need to remember that humorous campaigns are difficult to design and create. Over exaggeration of humor may have negative effect on the brand. People may remember the Joke but not the message and the brand. It can upset individuals if not done tastefully. Products can also flop and brand equity may erode. While humor is a strong and interesting route to create a great advertising campaign, one must also keep in mind that the imagery, core values of the brand and the positioning does not deviate. If your positioning is perfect then humor with a great idea can do wonders for the brand. Www. .NET. Com

The author challenges the usefulness of the recall data produced by portfolio tests as manufactures of the performance of print advertising. The differences between the effectiveness of these recall measures and other recall measures are considered in a new light. PORTFOLIO test has been THE most widely used approaches another only the “recall score” aspects of portfolio the to tests are questioned here. Other findings pre-testing of print advertising.

This method, which involves exposure of the “test ad” in a folder which also contains number of “control ads,” yields various and sundry “playbacks” or recall data as the principal criteria of advertising performance. Such recall measures are typically expressed as a percentage of respondents who can recall the brand and/or product advertised, or pictorial or copy aspects of an advertisement after the folder of advertisements has been viewed in the interviewer’s presence, for a brief time interval.

These playbacks are usually based on unaided recall of the ad or ads in question, although standard “prompts” are often used to produce aided-recall playbacks to supplement those obtained from unaided recall. The portfolio method may also involve ratings of the ads or products advertised in many instances. The playback scores are the main quantitative derivatives of portfolio tests per SE, however. Note that ; ABOUT THE AUTHOR: John C. Maloney is Manager of Research Development at Leo Burnett Company, Inc. , Chicago.

He is a graduate of the University of Nebraska and holds M. S. And Ph. D. Degrees in psychology from Purdue University. In addition to broad experience in marketing and consumer research work, Dry. Maleness’s activities have provided him with an unusual opportunity to compare wide range of advertising-research techniques. He is a lecturer in Psychology of Advertising and Selling at Northwestern University. 32 from tests which may involve the presentation of more than one advertisement to a respondent in the same folder or “portfolio” are not considered in this article.

POPULARITY OF PORTFOLIO TESTS Portfolio tests have a high face validity. They seem more realistic than the protesting methods which “rub respondents’ noses in the test ad”-?without the benefit of control ads as a background. They are straight-forward, easily administered, easily analyzed, and produce results easily communicated to the non-researcher. Moreover, they are highly reliable, in the sense that very comparable results are obtained from repetitions of portfolio tests using the same control ads. The author has found the average rank-order correlations of unaided, correct brand recall scores to be in excess of . 90 for all possible interrelations of seven different ten-ad tests using the same nine control ads. ) It is little wonder, then, that portfolio tests have been so popular. How does one dare to question whether or not they are here to stay? Why would they not be here to stay? THE CASE AGAINST PORTFOLIO TESTS Yet portfolio tests, as they are commonly used today, are not here to stay.

The reason is simply that they very seldom work for the purpose for which they are intended. PORTFOLIO TESTS – ARE THEY HERE TO STAY? Brand and/or product being advertised. These include variations which result from the fact that people are most likely to notice and least likely to forget ads for those brands and Common Purposes of Portfolio Tests products in which they are most Nina common purpose for which portfolio trusted or which they know the most sets (or any other print advertising breakout. sets) are used is to help the advertiser It can be seen that variations of the to decide whether to run Ad A or B as latter sort could account for considerable his next insertion in a given magazine “reliability” or stability in recall score or newspaper, when Ad A and Ad B are measures. If the same ads are involved in advertisements of the same size, are com- repeated tests, the general level of responsible as to black-white or amount of dents’ interest in, or awareness of, the color, and are for the same brand and product being advertised would naturally rotund. End to be comparable from test to test. In other words, portfolio tests are often If the scores in question are more subject used to test headline, copy, or graphic to such influence than they are subject to variations when all other factors are held the influence of the differences among ads, constant and the advertiser wishes to SE- the scores would tend to be stable but could elect the best ad from among several hardly be regarded as meaningful measures possibilities. Of the performance of the ads themselves.

Another use for portfolio tests-?the one The point is that portfolio test playbacks which accounts for the majority of re- are more subject to the non-valid, “underestimating instances of the use of such tests-? or-awareness” influence than they are sub’s to determine how well a new ad “stacks Eject to valid, “goodness-of-the- ad” influence. Up” in comparison with previous ads for the same brand of the same product or for evidence Against Portfolio Tests comparable brands of closely related The indictment of portfolio-test recall products. Cores rests on the assumption that if the same control ads are used for tests Factors Which Can effluence Recall Scores f different “test” ads for the same brand For present purposes it is convenient to of the same product, then the “test” ads’ classify the innumerable factors which can recall scores should vary more from test to influence recall scores in three ways: test than do the recall scores for the control 1 . Sources of “error variance. ” These ads. Include the troublesome variations If this is not found to be true, it can in interviewers’ motivations and ability- be assumed that either (a) the scores were ties, variations in respondents’ ability- unstable or unreliable (a possibility overtires to member the ads for ruled by a superabundance of evidence), interviewers, respondents’ varying or that (b) the scores are more subject inclinations to co- operate with the to the aforementioned, non-valid, “interventionists, seasonal factors, prop- or-awareness” influence than to the valid elms of “response set,” prior exposure “goodness-of-the-ad” influence.

Either of biases, and other non-valid influences. These two conclusions would clearly jugs. Variations due to the differences gets that portfolio-test playbacks are among ads themselves. These Include suited for the purposes for which they are the valid influences of better or poorer commonly used. Use. Oaf headline, copy, graphics, and In Table 1, playback tabulations are brother elements. Ended for six different ten-ad portfolio 3. Variations due to respondents’ inhere- tests. These are expressed both in terms of .NET interest in, or awareness of, the percentage recalling the correct brand and Consider the purposes for which portfolio tests are ordinarily used. At the same time, consider those factors which might influence portfolio-test recall scores.

GINSTERS Table of Contents Introduction and Background Ginsters is the main brand of the Samworth Brothers, a privately owned family business active in various food sectors. Its product range includes pasties, savouries, pies, wraps and sandwiches. Ginsters is based in Callington, Cornwall. The brand has been building its credentials as authentically Cornish and a local product with local ingredients. More recently it’s also trying to associate its brand with the image of fresh and quality ingredients.

This is reflected on packaging, advertising and new product development (Ginsters Official website, 2010). The task at hand is to discover the Critical Success Factors for Ginsters, therefore analytical tools and frameworks were used such as SWOT, STP and the Marketing mix analysis. The external and competitive environment were also analyzed. The first section includes the critical evaluation of Ginsters’ CSFs, while the second section is concerned with developing recommendations for a three-year strategy for the firm. 1.

Ginsters’ Critical Success Factors 1. 1 CSFs According to Rockart and Bullen (1981), Critical Success Factors (CSFs) are the limited number of ways and the factors that are fundamental for the continual successful performance of a company. The identification of CSFs is important because it allows organizations to focus their efforts on building their capabilities to support their CSFs. On the other hand, it may even allow firms to assess whether they have the capabilities to develop the necessary requirements to meet CSFs.

Daniel (1961) was the first to introduce the concept of CSF. The concept was then used to assist in defining the CEO’s information needs that are most critical for a business (Rockart, 1979) (Zwikael and Globersonz, 2006). The CSFs method is straight-forward, however it has a complexity as it can be viewed from several perspectives. Geller (1985) points out that CSFs can be generic to a given combination of conditions in the industry, market and external environment. They can also be context specific in terms of the organization.

Furthermore, Rockart and Bullen presented five key sources of CSFs, the industry, competitive strategy and industry position, environmental factors, temporal factors, and managerial position. It is also important to note that CSFs can be monitored or measured to ensure they are still important and valid as they can change over time (Brothererton, 2004). 1. 2- Human resources development The first CSF for Ginsters is its ability to develop human resources. Embedded in its strategy is the recognition that people are important assets of the organization (Ginsters Official Website, 2010).

This is evident as it achieved the status of top-service supplier to UK supermarket giant Sainsbury’s. Ginsters came up with a way of enhancing the efficiency and productivity of its workforce. It designed and implemented a unique branded management-development program, which it dubbed ‘‘Platinum’’ (Politt, 2006). This cut staff turnover to half, mitigated absenteeism, increased staff stability, reduced production-line down time building on improved relationships between engineering and production, and succeeded in offering higher services to its supermarket customers, following the introduction of a new training course (Politt, 2006). . 3 Brand Image and Advertising A full STP analysis conducted for Ginsters (see Appendix) has derived important conclusions on Ginsters success factors. The decision to produce and distribute products solely in the United Kingdom has ultimately been positive and successful for the company, as it has increased its UK customer base. In 2009, Ginsters spent over 1 million pounds on advertising, which has generated considerable attention for the company (Mintel Report, 2010). Ginsters has consistently used advertising and it leads the pack in the pies and pastries category of the market (Mintel Report, 2010).

This is important and is evident through its great brand reputation along with goods that represent quality and trustworthiness. Ginsters has always promoted its Cornish heritage, emphasizing the importance it gives to local sourcing and the use of 100% British ingredients. The brand has also evolved immensely. Ginsters marketing scheme has developed to highlight the importance of quality ingredients that are put in the pasties. This is of critical importance because consumers are confident that Ginsters products will deliver on quality and taste.

Understandably, the pie and pastry industry is highly competitive with Ginsters competitors being able to produce virtually all the products that Ginsters is able to produce. That being said, Ginsters success lies in its convenience and impulse sector largely due to sales of chilled savoury pastry. In fact, Ginsters has been recognized as the number one ‘food on the go’ brand in the last four years (Doonar, 2004). 1. 4 Fragmentation of mealtimes and rise of chilled food industry & The ability to target and reach segments of market These are two important and correlated success factors for Ginsters.

The chilled and prepared foods market has evolved in the past 10 years and has become a very dynamic area of the food market. This is largely due to the trend in consumer behaviour where lifestyles are influencing mealtime. This has made mealtimes more fragmented, informal and less important. This environmental social change has resulted in suppliers and retailers placing more emphasis on the chilled cabinet. Moreover demand for chilled foods has soared. This is a type of environmental CSF is one in which the firm has no control over.

However, looking at Ginsters reaction to this environmental change is also a strategic critical success factor. Ginsters understood the impact of these changes on consumer purchasing behaviour and they adapted their products to meet this demand. This becomes clear in their ability to target the largest group that conforms to this environmental change, which are young people and business professional, and reaching their target by presenting their products in the right locations such as petrol station, convenience stores and university union shops (Keynotes food industry report, 2010).

Ginsters has also benefited from getting the right product mix to serve their target market as the SWOT analysis shows that its products are location independent, convenient, deeply filled, easy to eat and not unhealthy (Mintel Report, 2010). 1. 5 value chain Another critical success factor of Ginsters has been the way it incorporated its value chain. In terms of inbound logistics, Ginsters has chosen a direct channel approach that is characterized by low proximity. The place of Ginsters manufacturing facility is within a 20 mile radius of the raw material providers.

It forms a vertical marketing system (VMS) and more specifically an administered VMS. This type of cooperation helps Ginsters have a great degree of control. The system provides 35% of the total raw materials and the target is to reach 50% (Hunt, 2005). Furthermore, concerning operations, increased investments in production technology by introducing automation systems with quality control, ensured the end-quality of the products and also decreased costs (Growth at Ginsters, 2004; Drives cut pastry production costs, 2009; Keeping an eye on the Pie, 2002; Accurate pack coding easy as a pie, 2005).

Outbound logistics have also been a subject of focus for the company with a fleet of vans that place emphasis on delivering to 10000 companies during the peak hours (Brooks. 2004). A company-owned distribution system makes it possible to plan and incorporate delivering objectives, as relying on others would have made that difficult. Recommendations for three year strategy The UK has been one of the major economies that are still in recession. Due to the economic crunch, businesses are facing grave troubles to cope with their existing businesses and are trying to raise capital for investment into new businesses.

Therefore, Ginsters should focus on improving its existing capacity and making better use of its factors of production. This can be achieved by reducing its working capital, increasing inventory turnover and implementing employee learning and performance improvement training programs similar to the platinum program undertaken 4 years ago (refer to 1. 2). However, the company must establish some long term objectives as there are signs of recovery for the UK economy in the years to come.

The Bank of England estimates that the economy will get back on track by 2011 and the HM Treasury has published independent forecasts predicting that by the same year the GDP growth will be a mean 2%. It should plan for the development of smaller markets and target market segments which although less in size, have excellent expected growth rate. Ginsters is targeting youth and working people, but without offering Halal foods as compared to their competitor Pukka pies. According to The Times UK, Muslim population has been increasing 10 times faster than the rest of the communities in the

United Kingdom. It has grown by 0. 5 million and reached 2. 4 million in four years from 2004 to 2008 and expected to grow at the same pace as revealed by office of national statistics. Therefore, Ginsters should adopt a market development strategy to target the Muslim community in the UK. It can incorporate this strategy by introducing it into the heavily populated Muslim areas. Ginsters has been spending a lot money on advertisements and has been successful in conveying the positive image of the company to the people.

Its latest TV brand shows that it puts quality ingredients in its products, but it does not convey the clear message that its food is more healthy. According to the survey conducted by Mintel, 16 % of people think that Ginsters food is unhealthy as compared to its competitor Pork Farms which was marked unhealthy by only 12 % of them (Mintel, 2010). The reason for this misconception may have arisen from its marketing slogan, ‘Real Honest Food’. This portrays that Ginsters products are of quality and authentic, however fails to demonstrate that it has taken healthy eating into consideration.

Therefore, the firm should seriously plan for new advertisements and promotions that give a more clear picture of Ginsters as a healthy food manufacturer. To convey the idea of healthy foods, the company should take advantage of the ongoing and upcoming events that represent Ginsters target market and could be helpful in promoting its message. It is recommended that Ginsters should become an official sponsor of the 2012 Summer Olympic Games. It can make new and innovative advertisements in the Olympic Games that can help produce a healthier image.

Sponsorship will also enable the firm to increase the awareness of its products and influence consumer behaviour patterns thereby leading to increased sales. It will also help to enhance the brand image in target groups’ minds and develop a disposition to change behaviour towards buying the promoted brand, thereby leading to improved revenues (Smolianov et al,1999). Ginsters support of a major international event will help in conveying its message to billions of people more accurately and positively.

It costs nearly 10 million pounds to become a three tier sponsor. Ginsters had pre-tax profits of 45. 2 million in 2009 and paid dividends amounting to 16. 2 million, up from 14 million in 2008 (Bloomberg Database, 2010). Assuming a stable dividends growth, there is the potential for worldwide promotion and brand recognition. Instead of paying dividends out, it should deposit them with a bank or place them in investment grade securities in order to grow at an amount sufficient enough to secure a place in the top sponsors of the Olympic Games.

TV advertising during the Olympics will also increase brand awareness among live audiences who watch TV broadcasts, which will ultimately pave the way to Ginsters going global. In 2008, a record breaking 70 million viewers tuned to NBC to watch the opening ceremony, not mentioning the other international broadcast stations (The Washington Post, 2010). The cost for a 30 second spot is expected to reach the 400. 000 USD level, signifying the importance of the particular event. In Ginsters case, the advertising strategy should include all forms of digital and physical advertising (television, radio, press, online, billboard, in-store etc. . In late 2009 Ginsters decided to redefine its brand image and target a broader market segment. It tried to appeal more to mothers and fathers while dropping its image as simply a snack. To continue to accomplish this, a massive advertising campaign is desperately needed. Along these lines, the company should negotiate a deal with BBC1 and ITV1 to sponsor the most popular programs in UK television. Programs that aim to captivate the interest of thousands of British families, which comprises the new target group for Ginsters.

Such programs would include “Eastenders”, one of the most watched and long running soap operas, “Coronation Street”, the longest running drama series in the world still to be in production and “X Factor” a singing competition with over 13 million viewers each week (Broadcaster’s Audience Research Board, 2010). Appendix STP Analysis: | Ginster’s| Pukka Pies| Segmentation| Products are sold exclusively in the United Kingdom highlighting the fact that Ginsters is a domestic company. Products are grouped towards the younger population of both sexes due its convenience.

The family appeal is one in which Ginsters strives to achieve as they portray a family environment in their advertising. Socio-economic class is not of vital importance with Ginsters as they want to cater to the complete market. The upper class can rely on a quality product while the lower class can rest assured that the product is competitively priced. | Products are sold all across Europe. Countries include Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Malta, Portugal, Spain, and the United KingdomProducts are grouped for people of all characteristics, specifically the middle-class family.

With a wide variety of products including frozen and chilled pastries, it is important for Pukka Pies to capture the full European market, rather than segment. | Targeting| Products are targeted towards the young students as evident in their separate online education portal and their collaboration with different colleges and universities. Also, they are actively involved in surfing, football, and music festivals which appeal to young generation. They targeted the meat eating and non-Islamic sector as they do not have a Halal pastry| Products are targeted towards outgoing events to garner considerable public interest.

Examples include the Pukka Pies England band as well as major sponsorships to major sporting events. | Positioning| The pie and pastry market is a competitive one in which each company does not differentiate it s positioning too much. Ginster’s remains unique and relevant amongst its United Kingdom customers by positioning its domestic appeal. Ginsters have strategized to provide quality food for a reasonable price. As compared to competitors, Ginster’s is ranked amongst the top for pricing. Quality is of utmost importance and therefore they position themselves to advertise quality and honesty of foods.

Media advertising, over 1 million pounds in 2009, was largely concentrated on the target markets including students and mothers. This was done by adding more sandwiches to cater to women as well as advertisements at sporting and recreation events for students. | The differentiation by Pukka Pies is their international appeal. They strive, not solely to dominate a market, however to diversify themselves into different markets. Penetration strategies is their positioning technique as their products are available across Europe. | Marketing Mix Analysis Products:

Ginsters has got a huge product line consisting of 58 types of pasties, slices, pork pies, hot pies, savories, sandwiches and wraps as compare to its competitors, pukka pies and pork farms. All Ginsters raw material comes from the farms and suppliers present in Cornwall. They have different specialize supplier who provides them with fresh and pure raw material. These farms and suppliers includes Hay farm, torpoint for vegetables, Bocaddon farm, Lanreah for Cornish soft cheese, Cornish orchards, duloe for apple juice to capture that authentic west country flavour, jaspers of treburley for beef and David stone creamery for fresh cheese. Ginsters official website, 2010) Ginsters focus on Chilled products whereas Pukka pies have variety of categories including frozen backed, chilled backed, frozen backed wrapped, frozen unbaked range, frozen pastry (Pukka pies official website, 2010) If we analyze Ginsters product line we find that they have 21 types of different sandwiches as compare to pies and pasties which are few in numbers (Ginsters official website, 2010). Whereas Pukka pies and pork farms have less variety than Ginsters.

Pukka pies have some additional flavour of pies including kidney and potato and they also sell halal food (Pukka pies official website, 2010). Furthermore pork farms have bakes and scotch eggs (pork farms official website, 2010) Price: Ginsters product pricing is almost same as compare to Pukka pies and pork farms. For example steak pies from Ginsters and Pukka pies cost exactly 1 ? but in some cases Ginsters is expensive for example Ginsters pork pie is 1. 29 ? and Pork farms pork pie is 0. 91 ? (Tesco Official website, 2010).

Therefore we can say that Ginsters have a comparable pricing strategy with most of its product line but with some of the market leading products they show skimming pricing strategy as well. Place: Ginsters only Target UK market. They follow wholesale sale strategy. They have distributors all over UK. They keep their products in big super markets like Tesco, Sainsbury etc. The major area where Pukka pies leaves Ginsters behind is its sale locations. Pukka pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. Pukka pies official website, 2010) Promotions: When it comes to promotions, Ginsters are spending a lot of revenue on advertisement and promotional activities like charity, supporting local teams etc. The differentiating part of Ginsters promotional activity includes collaboration with different universities including Plymouth University and community colleges at Callington, Launceston, Tavistock and Saltash colleges and universities. Ginsters also have their online educational portal. This shows that they are targeting youngsters from schools, colleges and universities.

For the new promotions Ginsters is focusing on introducing some fruit pies as well. Their promotional strategy seems to be product benefit advertisement strategy. As compare to Ginsters Pukka pies have a large variety of souvenirs including footballs, posters, cups, caps etc. They have an online portal where people can buy their souvenirs. As compare to both of them pork farms focus on introducing new packaging and actively conduct live shows with consumers to test their products and tells them of their products taste. Pork farms are teaming up with Peperami and Branston to launch a number of co-branded recipes.

The new partnerships will see a Spicy Hit sausage roll with Peperami and two Pickle Hit sausage rolls – one with Branston Pickle and cheese and one with Branston Pickle and sausage meat – available from mid-March 2010. The company is also launching a Pork and Branston Pickle Pork Pie. (Ginsters official website, 2010; Pukka pies official website, 2010; Pork farms official website, 2010) SWOT Analysis: Strengths * Product variety in comparison to competitors places a strong emphasis on new product development to create innovative, exciting products to enhance its core product range.

Ginsters launched mini pasties in Q2 2010 to tie in with the upcoming picnic season and the on-the-go snacking market. * Ganisters position in more than one market and covering them successfully due to their diverse products * Ginsters’ products have a number of characteristics that make them a highly popular lunchtime food firstly their products are location independent and can be eaten practically anywhere. Secondly their products are convenient and can be found in many locations. Furthermore their products are filling and positioned as big eats.

Finally the products are easy to eat and are pre-packed. * Advertisement and promotion strategy Ginsters’ promotional activities have always highlighted its British provenance and local sourcing. Moreover their brand image Fresh and hygienic food which is and advantage in the current customer behaviour trends. * HRM program that allows for organisational learning * There supply chain is short therefore saves them money and increases quality * Manufacturing processes are fully automated speed up production and inspection and quality programs to be easy. Weaknesses The product range is not comprehensive and there are some niches they did not cater for, such as the vegetarian market the Halal and Kosher markets. * Ginsters operate only in the UK where competitors such as Pukka Pies operate internationally they are pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. * Although Ginsters are trying to convey that they are a healthy product. This message is not reaching other market segments, such as women and families. There image as a healthy product is not strong. Despite a high rate of new product development, the favourite lines continue to be the BLT, prawn mayonnaise, cheese and pickle, chicken salad and egg and cheese Opportunities * Increase emphasis on health awareness products. Interest in healthy eating will undoubtedly outlive the recession and there is scope to increase the number of functional products in many areas of the market. * Ginsters can explore minority market niches such as, vegetarians and Halal foods. This can be achieved by new product development. * Utilisation of production capabilities by exploring International markets, as competitors are present outside the local market. Despite the recession, sales of indulgence products such as desserts may also grow if suppliers can position the products as relatively inexpensive treats. Threats * One of the longer-term challenges that the pies and pasty category will face is whether consumers will stick to the category when the economy improves and they have more disposable income. Pies and pasties offer consumers a low cost meal that is convenient, but does not tick the healthy eating box and so requires manufacturers to find ways to reformulate their product ranges to make them healthier. When looking at the things that worry consumers the most, their financial situation and the economy supersedes any concerns they may have about their health, so while they face financial challenges, the health credentials of the food they are eating may be of less importance if it proves to be more cost efficient. * Ginsters needs to ensure that they maintain their above-the-line support of their brands to ensure they are top of mind when consumers are looking for a quick snack. The recession will strengthen the appeal of own-label products and consequently affect NPD and marketing, which will culminate in undermining value growth in the market. References Accurate pack coding easy as a pie (2005). Packaging Magazine, 8 (1), pp. 18-19. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed:10 November 2010) Bank of England Quarterly Bulletin (2007). 2nd Quarter, 47(2), pp. 317-329 Bloomberg Database (2010). Available at: http://www. bloomberg. com (Accessed: 6 November 2010) Broadcasters Audience Research Board (2010). Available at: http://www. arb. co. uk (Accessed: 8 November 2010) Brooks, Bob. (2004). “Cornish Convenience”, Food Manufacture, 79 (1), pp. 26-27. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed: 10 November 2010) Brothererton, B. (2004). “Critical Success Factors in the UK Corporate Hotels”, Sevice Industries Journal, Vol. 24 NO. 3, 2004, pp19-42. CHENG, E. W. L. and LI, H. (2001). “Analytic Hierarchy Process: An Approach to Determine Measures For Business Performance”, Measuring Business Excellence, Vol. 5 No. 3, 2001, pp. 30-37. Daniel, R. H. , (1961). Management data crisis.

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