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Lincolnshire Police and Anglian Water Group PLC - Comparison of Marketing Activities.

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Lincolnshire Police and Anglian Water Group PLC Comparison of Marketing Activities To: Stephen Goodrich From: Stewart Brinn 16th January 2004 Contents Page 1 Executive Summary 3 2 Discussion of relationship marketing 4 2.1 Relationship table 4 2.2 Marketing strategy continuum 5 3 Customer Satisfaction 7 3.1 Tables 7 4 Communications Mix 10 5 Advertising Analysis 12 6 References 14 Executive Summary Anglian Water Group presents an interesting comparison with the police force as a whole. The industry was privatised in 1984, having been a nationalised industry prior to that time. Many aspects of its running are still subject to central regulations by OFWAT and the Environment Agency, limiting the ability of the company to do anything it wishes. Despite this, Anglian Water is an extremely successful company, posting pre-tax profits of �231 million. Supply of water is seen by society as an essential, much as provision for the safety of citizens as provided by the police. As such, the company has a duty of care to its customers, as well as to shareholders. Lincolnshire police occupy a position similar to the water companies prior to 1984. It is funded through taxation, although certain activities, such as abnormal load escort, prisoner escort are currently being passed to private agencies. The recent implementation of Police Community Safety Officers and the ability for towns to pay for their own PCSOs suggests that a degree of privatisation is a possibility for the police. The underlying thread which moves through the marketing activities of both organisations is linked to their funding. Increased activity by the police will use up available resources more quickly, so much of their marketing activities are used to educate the public to reduce demand on the force as a whole.[SG1] Anglian Water needs to generate revenue by diverse means to maximise profits, allowing re-investment into the infrastructure of pipes and reservoirs, and also to maximise final profits for their shareholders. ...read more.


to enable their infrastructure to be modernised, leakage reduced, and "to work with our customers to protect and maintain water supplies and enhance environmental quality, now and in the future." In order to achieve this "Anglian Water has a Water Efficiency Officer responsible for actively promoting and liaising across all business units. This helps to ensure that we have a clear framework in place and that water efficiency initiatives are owned and driven by business needs, whilst addressing social and environmental responsibilities." For example, Anglian Water carry out 1000 tests a day to ensure that the purity of their water supply is maintained. In both organisations then, the outputs are monitored on a continuous basis, and any degradation is immediately identified and procedures implemented to remedy the position. This benefits the police by ensuring that crime does not spiral out of control, and allows interaction with partner agencies at an early stage to resolve problems. Anglian Water can ensure that problems are rectified at an early stage, so compensation packages are not triggered, and adverse publicity is negated. It is perhaps interesting to note that many factors affecting satisfaction in the police are outside the control of the organisation. Criminals can decide to stay in one night, a bad frost can dramatically increase accident rates. In contrast, much of Anglian Water's results are directly attributable to the company itself, such as standards of purity in tap water. As a result, the environment in which the police operate is much more volatile, so individual officers require greater discretion in how they spend their time than a maintenance crew employed by Anglian water. Long term planning is therefore more difficult within the police. One possible area for improvement for both organisations is the communication of their successes to the public at large. Police can publicise successful operations, thus improving satisfaction. Anglian water can engage the press in "feel good" stories about assistance given to vulnerable persons, and pre-emptive action to reduce leaks, thus making customers feel they are contracting an efficient organisation. ...read more.


Direct Marketing Association (online). Again the above example highlights the specific targeting of the organisation: * Relevant - High, targeted at high-risk drought areas * Clarity - High - 40% of people had taken the idea on board * Consistency - linked to public concern about the environment and cost effective services * Choice of medium - carefully considered to ensure the material would successfully be delivered to the right households in an appropriate manner * Scope for improvement - researching in advance to ensure initial distribution system would have been effective. As previously described - Anglian Water also utilises direct mailing systems within its bills to highlight other services it can provide to its customers. It also produces public information films in relation to hosepipe bans and other ways in which people can save water. This links effectively to current environmental concerns in the population at large. It is perhaps interesting to note that even though water customers can easily switch suppliers, and have advance knowledge of savings from websites such as USWITCH, less than 40% of water consumers have considered such a move. This could indicate consumer satisfaction with the company as it currently exists. It is difficult to recommend changes to the respective campaigns of the organisations, as both are clearly successful in relation to their stated objectives. What is interesting is that the greater budget of the private company will always allow their message to reach a greater number of people than the police. The challenge for both is to measure the cost effectiveness of the campaigns. For the police - does the time and money spent during the campaign reflect savings in not having to attend reports of break ins. For Anglian Water, do they recoup monies spent in terms of financial savings, or on profits generated through new products, or savings on supply costs? If the answer to these questions is "yes" then the campaigns are successful, if not they will have to be re-evaluated and changes made to ensure a more successful result in the future. ...read more.

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