Providing services to the community: - Companies that provide a service to the community are businesses such as the Post Office, Police and the BBC. While these organisations run many of their activities in a profit orientated way, this is not their sole concern. They seek to meet a responsibility to provide a service to the community. For Example, if the Post Office was purely concerned with profit-making it would not offer a service to out of the way places. The objectives of these businesses will be to include elements of public service.
Offering charitable or non profit services: - There are many organisations that are charitable or not for profit such as Oxfam, Red Cross, RSPCA and NSPCC. The not for profit organisation will measure its success in terms of meeting its other objective. For example, War child might measure their success in providing aid and assistance to children in war-torn counties in the world. Another example is Oxfam would measure their success in providing famine relief.
Developing Staff Skills: - It is important to include objectives related to developing the staff at work within a business. Different staff skills can able success of the business to achieve. Moss Bros Hire sets objectives related to the employees to achieve their potential best within the business.
Competitive Service: - is to provide a good service for customers. Moss Bros Hire allows customers to hire over the internet called express service. This service allows customers to purchase their items online and get them delivered to their house. It ensures the customer not to come in to the store and save time if for example the item is out of stock.
Moss Bros aim is to provide excellent customer service to ensure their customers are happy with their purchase. As customer satisfaction is very important within any business because if the customer is not happy with the service or product provided they may not even come back to your business in the future. Customer service also allows the company’s name to get good publicity, which in a way is advertising the company through the word of mouth.
Objectives
The objectives are broken down step by step which help to achieve an aim. All objectives have to be measurable so the achievement can be achieved. If the objective was not measurable then the business would not know whether they have achieved this objective or not. This is why it is important to be regularly monierted in order to check achievement. They are shared within a company so that one person does not have so many responsibilities and are shared within a grouped people in their areas of the business. This allows the business to work as a team and achieve the objective from a set time limit. Moss Bro Hire’s objective is to increase the number of suits hired. To achieve this they can offer sales, deals and account cards by advertising to make consumers aware of what is on offer. Another objective is to increase brand awareness; this can be done by improving the advertising methods and trying different methods to achieve this.
Smart objective
A business must be careful when setting objectives to ensure that they can be met, some businesses use smart objectives. Specific is set out clearly so the business can see what they are trying to achieve. Measureable so they know when it has to been achieved by. Agreed so that everyone is involved with the total agreement. Realistic otherwise the objectives will be ignored and not met. Time specific to achieve the objective within a certain period of time so the objective can be successful and met on time. For example, Moss Bros hire communicate their objectives by breaking it down to the company objective, production director, production supervisor, team leaders and shift
workers. The company objective is to increase profits by 30%, the production director is to increase production by 15% and so on. This is so each break down has their own objectives to achieve which are specific, measurable, agreed, realistic and time specific. not needed!
Mission Statement
A mission statement is a brief statement of the purpose of a business or organisation. It is an attempt to put corporate aims into words. Employees are more likely to be motivated by a mission statement, which identifies positive characteristics such as creativity and quality rather than by the desire to increase profit. In order to achieve a strong mission statement it is essential that the four elements reinforce each other. Starting with the purpose of the company stating why it exists? Then linking that in with Values on what the company believes in? Allowing this to follow in to Standards and behaviour, which are the policies and behaviour patterns expected of company employees. Finally linking this in with strategy which is the competitive position of the company. For example, Businesses use mission statements to communicate to stakeholders using notice boards, websites and annual reports. Moss Bros hire does not use a mission statement.
Marketing objectives
Marketing objectives are the goals that a business attempts to achieve through its marketing activities. To be successful within a business you need to understand customer needs and wants and keep ahead of competition.
Managed businesses find out what customers wants by supplying goods and services to meet these needs. It is important for the business to see the trends and development which influence consumers buying habits in the future. New businesses develop new products to gain a foothold within the market. For some businesses this may mean copying an idea that already exists on the market frontline but adapting it to meet the right market. Some new businesses may be more innovative and introduce customers to an entirely new or good service e.g. dragons den. Established businesses develop new products to meet the changing needs of the marketplace of to reflect advances in technology.
Different types of markets
As there are various types of markets to suit different businesses such as antiques market, the market for stocks and shares, second hand markets, art markets and animal markets ect. Researching into the important types of markets for business organisations of commodity markets, consumer markets, capital goods markets and industrial markets.
Commodity market includes a lot of products from primary sector such as rice, grain, coffee to industrial raw materials such as oil and iron. All these things started from something else with coffee coming from cocoa beans which the beans having to be planted in order to achieve all this. Businesses usually brought in bulk from raw materials grown on a farm. It is not just food that is commodities there is iron ore, oil and gas and even diamonds ect. The weather change of seasons has an affect on the increase and decrease of demand for certain products than others.
Consumer market is the goods which we are most familiar with, being an every day use of milk, eggs, ect. We buy consumer goods because we get satisfaction out of these goods. The value of money, price we spend on these goods matches the quality of the products. So when commodity prices go up, this will quite quickly filter through into supermarkets which affect the prices to increase within this store. Necessary items have to be continued to be purchased as almost the same quality of these items when the prices rise. Different people have different necessaries and essentials to other people. Consumer durables are goods that gives us satisfaction for a little while e.g. dishwasher, DVD player ect. This is more expensive and people can decide whether they want to purchase straight away or postpone if prices rise or incomes fall. For some people it is a necessary to have luxury things and some it is not.
Capital goods markets is an item used to produce other goods. Businesses will often lend money to buy their capital goods that they produce are increasing. Companies will demand more capital goods to replace existing capital goods that have worn out or just totally gone out of date.
An industrial market involves the buying and selling of these goods and services take place in an industrial opposed to a consumer market. An industrial market selling a buying does not take place in shops. Instead trading tends to be carried out through sales staff.
For a new business an important marketing objective is to raise customer awareness of the company and its products. To generate sales a new business needs to reach potential customers which could be done through advertising, free samples, TV and newspaper coverage. Moss bros hire does this by having newspaper coverage on the sales and shares people within the business hold. The newspaper also shows how well Moss Bros is doing on the stock exchange market. Moss bros hire advertise through catalogues, television advertisements and posters. To increase product sales and profitability a business may decide to invest more in advertising in terms of marketing. For example; using a famous actress/actor in their television advertisements. To present the product or service to come across more expensive or luxurious. It may be possible to charge higher prices without reducing sales. What is moss bros market share? who are there competitors? The proportion of the total sales in a market achieved by one business or the percentage is the market share. If the market is growing a business can only increase its market share at the expense of its competitors. A very difficult marketing objective to achieve is improving market share. This is likely to need a lot of spending on marketing activities such as advertising, special offers and price cuts. This is a strategy for growth that involves developing an increased range of unrelated goods and services.
Business only diversifies when they allow themselves to move into the new market sectors. Diversification allows the businesses to spread risk but the risk could be a bad or good thing for the business. If a product in one market becomes unpopular, a company may still be successful in other markets that are continually selling their products well. Product re-launches is used to boost sales of flagging brands and products. Companies also use it to reposition a product in the market. This may make the product come across with better quality and companies can than raise the prices. it needs to relate to moss bros.
IMPROVING MARGINS
Driving down the cost price of garments, using the resources and talents of an incentivised and
targeted buying team, has seen net retail margins improve from 44% in 2002 to a level of nearly
53% this year. The objective is to achieve a further one point margin increase in each of the next
two years.
Task A2:-
The target market is the type of customer your product of service is aimed at.
To make a marketing decision you need to build up a clear image of which your customers are, are they young and outgoing. From product and packaging design, through pricing, promotion and distribution- all of these aspects make up the target market. Businesses do this to get inside the minds of their customers and understand what their customers really want.
The Company Moss Bros target market is aimed at all age ranges of males such as Adults and juniors who want to hire formal suits for special occasions. The main customers are Men aged between 20-30 who are only going to wear the suit once for an occasion e.g. Black tie event or Royal Ascot or their wedding. It seems pointless going out to buy a new suit when they can hire for better quality. Men who can’t afford to buy expensive suits but want to feel good and look good.
Moss Bros segment the market by socio economic groupings by segmentation by age, gender, ethnicity, income group and occupation. Moss Bros Hire use age by breaking up the target market to produce clothing for young boys like infants, juniors, Young adults, adults and older men who would attend different events such as a black tie event would be aimed at adults as a infant would not attend this type of event and Royal Ascot would be aimed at older men as young adults would tend to dress more with today’s fashion. For example if a groom wants to get married having his best man, father and usher all colour coded. Making sure that the target market is aimed at Men and boys to meet customer’s wants and needs. Moss Bros segment according to income as people with good wages are more likely to use Moss Bros Hire service and hire the suits out, where as somebody getting paid a low wage will not use Moss Bros hire as they would not be able to afford it. Moss Bros Hire is aimed to on good quality; this means the suit prices will be hired for a higher price. Moss Bros segment according to ethnic background for example Scottish people having a highland wear section. This allows Men from a highland culture to wear traditional clothing which represents who they are. Gender comes into this as the suit hire company only allows male’s to hire clothing and women can not hire their wedding clothing from Moss Bros Hire. Depending on the customers occupation will reflect who uses the service more i.e. a builder does not own a suit but where as a business man would own a suit. Catering for suitable needs depending on certain occupations. E.g. whether you’re the father of the bride, the best man, groom, usher and the son -something to cater for everyman or occasion.
Income: - The more money people have makes it easier for them to purchase the products. The amount of income people have to spend on goods is called disposable income. This is their pay minus taxes and other essential deductions. If the average incomes tend to raise this will lead to the demand of goods to increase. The demand for individual items will be effected by the changes income earned by different groups such as teenagers for teenager magazines and fashions, pensioners for retirement homes, winter and sun holidays ect. The increase in income will improve job opportunities, increase use of cost cutting technology and increase demand for products. Some products may become less popular as income rise. The customer who once was happy to rent accommodation, wear scruffy clothes and rive a second-hand may switch to buying a house, designer clothes and driving a status symbol car when his/her income has increased. They can afford expensive things as they are getting paid more.
Age Distribution: - Different products appeal to different age groups some more than others. Business needs to be keenly aware of the changes taking place in the numbers in different age segments so as to know where the best opportunities lie.
Demographic segmentation
Demographic segmentation may involve dividing the population into discrete segments such as age, gender, income and lifestyle. For example, by age for clothing retailing, by sex for cosmetics, by family size for different sized packages of breakfast cereals. Demographic variables can be closely related to consumer’s needs and why they actually purchase them certain items on their behaviour. This helps producers to target their products more effectively. Some categories of psychographic factors used in market segmentation include social class, lifestyle, behaviour, opinions, vales and personality charactistics. Lifestyle is broken down by the activities the consumer enjoys, their interests and the customer’s opinions. Yuppie is the lifestyle in which the customer’s lives as in high valued house/flat, good salary and expensive or not expensive items. Homogenous groups which is when the market is divided into groups similar to meet their wants and needs. For example Moss Bros Hire do this by having different styles of suits to be aimed all their consumers. This allows i.e. Royal Ascot to not only be worn by an older man but a young trendy student. Personality charactistics are the different personalities in which the goods and services are aimed at. Moss Bros Hire segment on lifestyle and behaviour by producing clothing that is appropriate to suit certain age groups. This is so customers from different age’s expectations are met, as everyone has various styles and occasions to meet. For example, a business man’s lifestyle will be totally different to a student. The increase of male population will help Moss Bros Hire to have more of the men using the formal suit service. If the falling number of males was to drop this would affect Moss Bros hire to lose out. As the business man’s lifestyle will be socialising at special functions or their mate’s weddings etc where as a student will be attending social events such as prom nights and themed nights at clubs.
Geographically is the certain charactistics that can be divided by town or country which some areas more then others may be influenced more. Moss Bros covers different segment by providing different clothing within different areas. E.g. the same suits won’t be hired across the nation.
Task:-A3
Moss bros hire have various types of suits to attract to different target markets. This meets the consumer’s satisfaction as they can decide on a suit tailored to their tastes and personalities. It allows each customer to feel unique and accepted within Moss Bros hire. They also have objectives of increasing profitability, improving market shares and diversification. Diversification is a strategy for growth within a business which involves developing new products or new business areas to place outside the organisation’s market.
You need to complete A3 and you need to write a conclusion with your own words and your own opinion.
Section C: - Marketing Mix (A03)
The marketing mix provides us with a useful way of looking at the marketing of products. Businesses have to get a successful mix of the four P’s such as Product, Price, Place and Promotion. The right product or service being sold in the right place, at the right price and using the most suitable form or promotion. First challenge for a business is to find set of customers and to identify their needs and so that appropriate goods and services can be developed. Once the businesses have decided on a product, then all the other elements of marketing mix can be engaged to meet customer needs. These may include developing the pricing for the product or service provided, working out how to distribute (place) goods to the customers, as well as how to promote them.
Product
A product is something that is offered to the market. Businesses need to understand what the product is and what it means to the customer. A Product could be a product such as washing machine or shampoo or a service such as accountancy or suit hire. A place such as tourist destination is a product and a person such as a football player or pop star. E.g. Moss bros hire offer a service by allowing men to hire formal suits for special occasions. The affect of senses is the different suit designs that are cater for different events. you need to split up the product ranges.
Moss Bros hire offers a wedding service hire with different types of suits with tails or not or tuxedos; such as classic, Lingfield, Carisbrooke, Royal Ascot, Frock Coat, Regent, Arundel, Wedgewood, Bourneville, Lincoln, Madrid, Nehru, Harrow, Sandown, Lombard, Ted Baker, Hilton and Cambridge. Junior Wedding suits package includes two piece suit, waistcoat, shirt, cravat or tie and handkerchief. The different styles of suits are Lombard, Sandown, Classic, Lingfield, Arundel, Wedgewood, Lincoln, Bourneville and Madrid. The evening wear package includes dinner suit plus shirt, bow tie, matching cummeberbund and handkerchief. To add a waistcoat to the package hire for an additional £5. The different styles of suits are Hilton, Cambridge, Savoy, Caribbean, Ben Sherman, Ted Baker and Hugo Boss. Evening tails is a standard hire which includes tailcoat, barathea trousers and white Marcella waistcoat. The package includes the three-piece set plus a Marcella shirt, white bow tie and stud set. The types of suits are Regent and Toastmaster. Highland wear packages include kilt, jacket, waistcoat (or dress belt), shirt, tie (or cravat or bow tie), flashes, skean dhu, kilt pin, brogues and sporran. Additions and accessories are the finishing touches for your outfit including cufflinks or cravat pin (with package), top hats- add a black or grey top hat to any morning suit package, shoes-formal shoes in adult sizes 6 to 13 to hire with any outfit and Accessories pack- waistcoats, shirt and cravat or tie (1weeks hire).
The additional benefits that Moss Bros Hire allow their consumers to Instant hire and extended hire.
Instant Hire: - Many Moss Bros Hire stores hold a range of evening wear available for instant hire. Where an instant hire is not possible, Moss Bros Hire will endeavour to meet their customer’s requirements- however a carriage charge may be required.
Extended Hire: - Moss Bros arranges an extended hire for couples getting married abroad or allows the customer to collect the suit from Moss Bros a week early.
Product is the product or service that a business is hoping to launch or develop in the future. The idea for a new product or service will usually have come about through customer demands or intensive research carried out by the business. Moss Bros Hire’s business idea is to hire formal suits and provide a service to the consumers. Moss Bros offers quality suit tailoring to meet every individual customer needs.
Moss bros hire offer a service by allowing men to hire formal suits for special occasions. Moss bros website is a benefit to the customers because it tells you want to do with the after care service. Moss Bros Hire makes sure that the clothing is kept looking smart for longer this is why the after care service is in place to make sure every customer that hires a suit out has a quality suit which looks in good condition.
After wearing your suit customers have to brush their suit after each wearing and using a natural bristle brush. The suit has to be hanged up and left unbuttoned after each wearing. A curved, wide shoulder hanger with the curve facing forward. If you are not a frequent suit-wearer, keep your suit looking fresh and well-maintained with a quick brush and airing every now and then. ‘Rest’ your suit between each wearing as this will let the cloth fibres settle and the suit’s shape relax back into place.
Cleaning your suit require the customer to look at the label’s care within the suit and to follow step by step instructions to clean the suit. The suit should only be dry-cleaned if the suit is dirty and should be dry cleaner to just spot-clean the soiled area. Moss Bros advice their customers to have the suit pressed by the dry-cleaner, this avoids the customer damaging the suit. Knitwear clothing should be cleaned by looking inside the knitwear item at the care label. The wool items need to rest between wearing to allow the fibres to settle. The shirts that are cotton and cotton blend shirts should be avoided to be washed in high temperatures. As this will prematurely age the fabric and buttons. If the shirt isn’t too soiled, a gentle, warm wash followed by drip-dry is best. It is best to have the shirts buttoned up before you put them in the washing machine; this helps to preserve the buttons and retain the shirt’s shape.
Ties should be followed by instructions on the tie’s care label when washing. It is best to hang the tie up on a coat or tie hanger, to allow the creases to fall away and the tie to regain its shape.
This sounds directly from the website. Read over!
Refunds
Moss Bros Hire will allow customers to bring back merchandise to rectify the problem, refund the price paid or offer an exchange of the goods to the same value. Proof of purchase is required which is the receipt given to the customers. The item can be return within 28days of purchase, being offered by Moss Bros Hire to exchange or refund the goods. The goods must be unworn and unaltered because the company would want to take back the items just the way the consumer has purchased them.
Moss Bros hire allow customers to book overseas but the booking allows at least 6weeks notice and submit request via detailing the suit and accessories required, where and when the customer wants to collect your suit and the date of return. A costing along size with a self-measurement form would be emailed to and on the receipt the sizes we will liaise with the store of choice and make the booking on your behalf. It can be done by making a call the store direct to make a booking over the telephone the individual store information is available. The security deposits are required at the time of collection is the fee that will be confirmed in the quotation.
There are two ways of assessing the position of a product is the amount of profit being generated and the sales of a product. This helps a business know how popular a product is and what product brings in the most sales to consumers. There are twos ways in which to manage a product portfolio is the traditional product life cycle and the Boston Matrix.
This is good however you need to read over it as it sounds like some of it is directly from the internet you need to discuss the product as if it is you talking. Also can you include some theory on product such as the ten factors? You don’t have to apply them just write about them this should show a detailed understanding and knowledge. MB2
Quality (including hidden qualities)
Features
Add-Ons
Style
Brand name & logo
Packaging
Size
After-sales services
Supplementary Products
Returns
Price
Price means different things to different people such as the buyers, sellers and government. The buyers see it as an opportunity cost in price as they are the most important to decide whether they will spend that much on the product/service. The sellers see price as represents revenue and the affects on profits. If prices do not meet their competitors, they will lose profit over this and consumers. The government sees price as the changes in prices affect inflation. The prices are affected by many things such as Market conditions, production costs, market structure, marketing mix, business objectives and taxes and subside. Businesses must take into account the law of demands when setting price. This means that any increase in the product will result in a fall in the quality that consumers are willing to buy being shown on a curve of demand. Other effects on demand that will affect are these factors of Income, the price of goods, taste and customs, changes in population, advertising, the law, government policies and Attitudes and information. If these factors change the demand curve itself would shift.
There are two main pricing strategies short term and long term. Short term is usually used for promotional or tactical reasons such as Penetration Pricing, Market Skimming, Loss leader pricing, Discounts and sales. Penetration Pricing is when a business launches a new product or service at a lower price than its competitors in order to gain some of their customers. It is trying to get a foothold in the market. Market Skimming is when a new product is placed on the market at high price. When it has established itself and become more popular, the price will gradually begin to fall. This means more and more people will be able to afford it. A good example is a DVD player, CDs and computer. Discounts and sales are used to discontinue or unfashionable products such as clothing companies reduce their prices in order to gain profit but get rid of not so fashionable clothing. Moss Bros have reduction events such as sales to reduce stock that is not sold any more or is out of trend. Loss lender pricing is used commonly by retailers to attract customers into their stores in the hope they will make them further purchases. A good example would be game consoles.
Long term is usually used for strategic reasons such as demand-based pricing, cost-based pricing, competition-based pricing and Psychological pricing. Demand-based pricing is used to a high demand leading to a high price and should only be used for selected products where pricing discrimination can take place. The advantages of this method are it allows price discrimination to be used and the price is determined naturally by market forces. The disadvantage of this method is the costs remain the same irrespective of the price; the company will risk the making of losses.
Pricing Discrimination which is different prices set out for various types of customers or when a service is used at different times. For example, train fares after 9am are cheaper than before 9am even though the service is just the same. The advantage of Pricing Discrimination is capital can be increased for a service/product as quiet times. The disadvantage of Price Discrimination is consumer’s maybe paying more money at the peak times. Predatory Pricing is when the price is set deliberately low in order to drive competitors out of the market; this type of pricing could result into a price war. The advantage of Price Discrimination is it can end up taking over the market. The disadvantage of Price Discrimination is the affect of low prices can damage all the businesses. If price discrimination is used the business must have market power and more than one market with a barrier between them. Cost-based Pricing has three elements broken up into Cost-plus pricing; Absorption/full cost pricing and Marginal/contribution pricing. Cost-plus Price is adding an additional amount to the cost of production means that profit per product is easier to work out. It may not take into account the demand for that product. The advantage of cost-plus pricing is prices that seem cheaper could attract more consumers. The disadvantage of cost-plus pricing is the methods must keep changing to keep customers interested. Absorption/full cost pricing is business allocates indirect costs to particular products e.g. heating costs. This ensures that revenue is greater than costs with inflexible and difficult to calculate. Marginal/contribution pricing the business allocates direct costs and required contributions. This is more flexible but less successful products can make less contribution and very difficult to calculate. Competition-based pricing is used where good are homogeneous and competition e.g. Oligopolistic markets. There are four main types such as Price Leadership, going rate pricing, destroyer pricing and close bid pricing. Price leadership is used by market-leaders to set prices, to ensure that others may follow. Going rate pricing is used by non-leading firms trying to avoid price war. Destroyer pricing is used to eliminate competition by setting very low prices. Close bid pricing used for businesses that have to tender bids for a contract. Psychological Pricing is setting a price to seem like it is cheaper than it really is. For example, £2.99 seems psychologically cheaper than £3.00, even though there is only 1p difference, which makes the customer think they are getting a deal when all they are saving is 1p. The advantage of Psychological the profit per product is easier to work out. To affect consumer perceptions of their products, making people believe that the more expensive means better quality, so a high price could be charged to create a high quality image. The disadvantage of Psychological pricing is it may not take into account the demand for the product. Moss Bros Hire uses Psychological Pricing to make consumers think they are getting a bargain when really all they are saving is 1p. Having store cards also makes the customer believe they are saving 10% of their buy. This is building a customer loyalty making sure they will shop back in Moss Bros and come back.
Another type of sampling is Cluster sampling which involves selecting a random sample from a selected area. Cluster sampling is units in the population can often be found in certain geographic groups or “cluster”. The use of a Cluster sampling is quick & easy; does not require complete population information. This is good for face-to-face surveys to get the data that a business needs. A business may decide that it can only afford to trial its new product or service in a certain area of the country in order to reduce costs. For example, a business is trying to launch a new item of clothing. They have decided to trial it in Manchester due high costs of market research. The business hopes that the results gained will be representative of the whole country. . This is not relevant to pricing.
Price Skimming is often used by businesses dealing with new technology, raising their prices to enter the market. The advantage of this is making a profit before competitors enter the market. The disadvantage of this is if priced too high, product may not take off.
Price penetration is a low price used to enter the market and build up customer loyalty. Once customer’s loyalty has been established, the price increases. The advantage is to build up customer loyalty. The disadvantage is consumers may not want to pay the higher price after initial period. Moss bros hire have to build customer loyalty up this is done through Price penetration.
Competitive Pricing is when the price reflects what the competition is doing and the product is priced competitively. The advantage of Competitive Pricing is customers choose product on its quality rather than the price presented. The disadvantage of Competitive Pricing for some businesses may not cover costs if competitors decrease their costs.
You need to include moss bros actual pricing structures what different ranges do they have what do they charge for them. The theory in this section is good but you have not applied it to moss bros in a detailed way. Yes they might use psychological pricing but you need to give actual examples. You need to say penetration pricing builds loyalty.
Promotion
Promotion is the method the business is going to use to inform customers and the target audience of the products/services they have on offer. Promotion can be split into 2groups which is Non-controllable and Constable. Non- controllable communication is recommendation, word of the month and people’s perception. Constable communication is advertising, sale promotions, personal selling and publicity. Promoting a business is very expensive and therefore it must be targeted correctly otherwise it will achieve very little for the business. There are many different ways in which a business can advertise such as Television, Radio, leaflets, business cards, posters ect. Television is one of the most expensive but successful reach to large numbers of people. The local radio is becoming increasingly popular but still only be affordable to a medium sized business which is fairly well established. A smaller business may use promotional leaflets, business cards, advertisements in local newspapers and magazines. To gain publicity is to try and get the launch of a new business or product reported in the local newspaper as an n article, this will catch the public’s attention. An alternative way a local business can advertise is through the local sponsorship of football teams, school events, fetes etc. Moss Bros promotes their business by having display boards, television advertisements, the internet, catalogues. These types of advertising suits Moss Bros Hire as it is easier and reliable to promote the company through these aspects. The television advertisements will attract most of the customers as television has become such a big aspect of people’s day to day lives. The internet has increased within technology over the years, which Moss Bros Hire will use to promote their company, so customers can buy their products over the internet within the store.
. online.co.uk
Ok this is good however you need include influences on the choice of media and also the AIDA structure. You also need to talk about the different methods in theoretical detail. You also need to include examples of how moss bros promote their products try and find a print screen of their promotion in practice.
Place line spacing?
Place is the system by which the business gets its product/service to its customers. It could be as simple as the location of a retail shop or the location of the warehouse. For example a business give its customer the choice of visiting one of their shops, having access to a catalogue and placing the order by telephone or from their website. There are many ways distribution is channelled which can be a combine in various ways using Intermediaries. Intermediaries are used since few businesses have the resources to distribute directly. The main intermediaries are the agents, the retailers and the wholesalers. The agents are normally the negotiate sales on behalf of the seller who is not usually involved in ownership but takes commission. A good example of this would be Estate agent and Football agent. The wholesalers have two types of wholesalers such as cash & carry and Voluntary groups. Cash and carry is normally used by large supermarkets and small local retailers buy in bulk. Voluntary groups are set up by groups of small retailers to allow economics of scale. E.g. Spar, Nisa Today. The advantages of wholesalers are breaking bulk down of the single cases retailer buy rather then multiples. The storage of retailers does not have to hold a large amount of stock within the shop floor or stockrooms. This way it is not the retailers worry as the wholesaler has that problem. With the wholesalers being in the middle means they know what is happening in the market. The main advantage of using a wholesaler is that the distribution processes easier by having wholesalers direct the goods to the retailer. But without the wholesalers the process becomes more complicated as the retailer has to get their stock from factories. E.g. Moss Bros clothes are made within a factory then sent to different branches by Lorries who then sold on to the shop floor and purchased by the consumer. Without this process, Moss Bros Hire will not be able to get their products or services sold.
There are five types of retailers in the UK which are the independent traders, multiple chains, supermarkets, superstores and department stores. The independent traders run by sole traders and must have less than 10 branches. The low numbers many now part of voluntary groups. The multiple chains are more than 10 branches which are in different regions. Supermarkets are shops which have at least three checkouts and at least 400m2 of floor space such as Tesco and Asda ect. Superstores are larger stores often selling diverse but related products. Department stores have at least five department stores and 2,500m2 of selling space and could contain franchised. Moss Bros Hire does this by places it self within well known department stores such as House of Frazier but as well as having their own stores within London and Nationwide.
The distribution channel is usually based upon three criteria such as The Economic Criteria, The control Criteria and the adaptive criteria. The economic criteria are comparison of costs for each method. The control criteria are when a company wants to retain some control since consumers will hold them responsible when things go wrong. The adaptive criteria are a distribution channel should be capable of being adapted in case things go wrong. Distribution involves the movement of products from one place to another. It is important because if a product fails to be delivered it could affect the marketing effort gone to waste. Also the cost of transportation can be high.
Holding stocks and Transporting products may be two main issues caused in Physical distribution. Holding stocks relates mainly to stock control systems which rely heavily on ICT. Holding stocks are expensive as many businesses try to use a cheaper way of (JIT), which is a just-in-time system. The problems that will affect this are delays that arise leading to which results to loss in sales and the dependant upon suppliers. Therefore many businesses would request stock on i.e. 2day delivery. Transporting products can be done in various options such as road, rail, sea and air. Businesses would decide what is the cheapest way of saving money but getting the products over. Moss Bros hire transport their products over by over seas from different countries. Moss Bros hire gets their suits made from different countries such as European countries and Asia. Canali is a growing Italian clothing company which is situated in Sovico, about half an hour from Milano. Canali has seven centres of productions located in Italy which are all connected with his headquarters at Sovico. Each garment is tailored to be made and 100 produced in Italy. Cecil Gee began importing in the Italian made suits made from lightweight, more comfortable and more versatile fabrics. The success of that suit helped Cecil Gee began its own expansion opening new stores including a store on Kings Road and adding such noted men’s clothing stores as Savoy Taylors Guild and Beale and Inman leading to merger of Moss Bros and Cecil Gee.
With its growth in the use and access to the internet a lot more people are purchasing goods and services online. Moss Bros Hire also places it self on the internet to allow the consumers who can not get within the store to shop over the internet.
This is good however it does not show detailed understanding and knowledge. You need to include different channels of distribution even if it does not relate to moss bros you need to be able to explain what place means and where it fits into the marketing mix.
This section meets most of mark band one and some of mark band two in order to meet all of mark band one and two you need to make the improvements suggested.
