Market Management Sustainable Plan

Solution

Introduction

The paper focuses on preparing a sustainable marketing plan for one of the particular products from Doka Group, that is, Formwork. Doka Division is under the parenthood of the Umdasch Group of companies. Doka Group is one of the reputed brands in the field of formwork industry. It has an appreciable global presence which allows it access to the wide range of customers whom it provides quality formwork solutions and services. The group has tried to focus on local needs and important demand criteria to cater to the local customers while simultaneously focusing on the global standard. The Umdasch Group owns Doka Group which is under the leadership of Hilde Umdasch and her brother Alfred Umdash. At present, the total employees working for this group exceeds 7000 marks combined. The years after 2005 saw some good economic growth which allowed Doka Division to harp on the opportunity and churn out revenue from the growing demand by providing high performing products. The competitor of the company is Interserve Inc, operating majorly in the UK market. The paper has considered United Kingdom as the target market for the company. This paper has tried to understand various factors that contribute to the success of the company through triple bottom line analysis and analyzing the stakeholders associated with the company. Moreover, the paper has tried to come up with some of the SMART goals that can be attained by focusing on the right target market analysis and preparation of right promotional plans. The promotional budget, in the end, will give the company enough understanding of the specific factors needed to be considered while moving ahead with the sustainable marketing plan.

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Triple Bottom Line Analyses

This section has tried to analyze the three bottom lines of the Doka Division. It will focus on analyzing the Doka Division’s activities and performance in three categories, namely, profit, planet, and people. 

Profit

The revenue trends reflected in Figure 1 (see Appendix) states the growth of the Doka Division from the year 2006 to 2009. The year 2009 saw fall in the revenue as per the new standard achieved by the company in 2008. The revenue breakdown depicted in the Figure 2 (see Appendix) shows that about 30 percent of the Doka Division’s revenue comes from Africa, Middle East & India, West & Central Asia, and East Asia & Pacific (Doka.com, 2016). This is followed by 26 percent of the revenue from Central Europe region. The consolidated income statement of the parent company of Doka Division reflects increase in the overall revenue by EUR 4,390,000 in a year from 2013 to 2014. The total retained earnings increased by EUR 2,135,000 in one year. Such consolidated growth and the way the market share been reflected by the aforementioned figures, it can be stated that Doka Division is growing with appreciable pace and its future prospects seem bright as the economy is set to grow as it has been boosted by low oil prices and investors motivation towards construction industry in various developing and underdeveloped economy. On the comparative front with other similar companies, the Umdasch group has performed appreciably well. For instance, in comparison to the Interserve (a subsidiary company of RMD) who also manufactures and supplies formwork, Umdasch seems to be performing well. On one hand, where the gross margin of the company in the year ending 2014 was 11.3 percent, the operating margin was 2.5 percent, and the net margin was 1.56 percent, on the other hand, for the same year, the Umdasch group has all the data  a percent ahead.

Planet

As per the company’s statement on its orientation towards the environment, it considers involving various activities after considering the environmental implication of the same. Moreover, it always strives to introduce environmentally procedures in all its activities, whether it is procuring materials or taking decisions on product transport volume. The company follows PEFC (Programme for the Endorsements of Forest Certification schemes) to rely on sustainable forestry methods to procure the timber. It claims that it continuously optimizes the resources for the enhancement of sustainable production procedures. Figure 4 (see Appendix) shows the total energy consumed by the Doka Division and Figure 5 (see Appendix) shows one of the Doka Division’s facilities consuming total energy from two different sources. Almost 80 percent of the energy consumed by Doka Division at this facility comes from renewable energy sources, while 20 percent of the energy comes from non-renewable sources (Doka.com, 2016). The graph, if considered not to be a brainwashing strategy from the company, states the appreciable position of the company towards the environment. Moreover, the Figure 5 (see Appendix) shows the waste management distribution of the company, where it shows that it produces only 3 percent as waste and reset are re-used for within the company for various purposes. 

People

The people of the Doka Division are treated fairly well and are given appreciable wages and salaries. The company has industry-standard policies and frameworks to manage the vast set of employees. The management of the Doka Division has always tried to provide proper benefits to the employees working for the company. The data presented in the annual report of the company on the employee distribution and the growth in the headcount has been shown in the Figure 6 and 7. The way it has grown in the time span of 5 years, it can be stated that it has the appreciable working conditions; else employees could have fled instead of more joining the organization. For instance, the organization saw growth of beyond 5 percent in its workforce from the year 2007 to the year 2008. However, the data shows decrease in the workforce by 2-3 percent in the next year and the reason cannot be attributed to the work condition as the economy of the whole world was crumbling due to US financial crisis of 2008. The gender distribution system of workforce for the year 2008-2010 of Doka Division was 83 percent male and 17 percent female which seems to grow sighting the changing orientation of the management towards considering women in this field (Doka.com, 2016).

4C’s Stakeholders Analysis

The stakeholder analysis of Doka Division has been considered for this section which will discuss on various elements such as Company, Community, Customers, and related Competitors.

Company/Organization

A company forms after the combination and coordination with various stakeholders who help the company grow forward. The internal stakeholders of the company are employees, managers, and owners or shareholders. There are various stakeholders who are interested in the growth of the Doka Division. They have invested appreciable amount into the company. Moreover, Hilde and Alfred Umbasch own the whole Umbasch business and striving for the success of the business. There are various management executives who handle the prominent business division of the company. For instance, Rainer Splitzer heads the engineering department of the company; Ludwig Pekarek heads the production department of the company; and Jurgen Obiegli and two others head the sales division of the company. Along with that, there are various other mid-level managers who handle multiple departments respectively. These set of stakeholders are interested in the growth of the company and utilizes the investment made by the shareholders in well thought areas for the improvement of the company. The third set of internal stakeholders is the non-managerial employees whose growth prospects are associated with the future growth of the company (Doka.com, 2016). These are the ground level employees who focus on the implementation of the instructions provided by the managers. The various internal stakeholders of Doka Division are interested in the growth of the company as they understand that there personal growth rely on the simultaneous growth of the company. The owners of the company want this company to grow so that it can provide better dividends to the shareholders. Managers wants to see the company grow so that they can get more opportunity to understand and utilize their managerial skills at wide organizational functions. And the third stakeholder, non-managerial employees, wants better compensation and work-life balance from the company. 

Community

There are various stakeholders which constitute the community. Some of them are news media, unions, government regulators, interest groups, and potential collaborators. The company has focused on developing appreciable relationship with these stakeholders. The company has tried to follow proper rules and regulations in the country in which it operates and, therefore, has gained reputation in the eyes of the government of the particular country. Moreover, the company has always allowed the news media to understand the environmental orientation of the company well so that the media can spread the positive orientation of the company. Employee unions provide enough support to the company in executing its functions well. One of the major stakeholders who need to be discussed here is the government. The government of any country always stay interested in the way a company is providing benefit to the local community it operates in. The reason behind such orientation is that it is the responsibility of the government to look after the overall sustainable growth of the company. Therefore, they prefer only that company who are employing environmentally sustainable methods to conduct their business. In this case, Doka Division comes out as clear winner as it has employed various methods that can ensure low carbon footprint of the company. Moreover, the governments are interested in the various schemes such as employee welfare, fare wage policies, proper treatment of the employees within the organizational setting, gender inequality and various others. Doka Division has always strived to ensure these factors are taken care properly and thus one can see the presence of the company in numerous sub-continents without any major objections from the various governments.

Customers

Customers are sometimes referred as the external stakeholder from the various stakeholders’ type of Doka Division. The target customers for the formwork developed by the Doka Division are the construction companies who involve in building various infrastructures, housing, and other such building products for their own clients. The customers of the Doka Division use the formwork as a concrete structural component for the construction to shape the concrete in various shapes. The customers of the company prefer timber formwork that can be used in the construction and are also decomposable and does not hurt the environment if procured through sustainable routes. The customers of Doka Division prefer formwork that can provide good amount of safety and is less cumbersome to use. Moreover, they prefer formwork that should be cost effective and best in quality. One formwork can be utilized several times till the quality of the timber is proper. Therefore, customers want quality formwork made of reliable timber from the company.

Competitors

There are various small and big competitors of the company existing in the market all over the world where some are prominent ones and can be considered as real threat to the success of the company, while there are others who are trying to scratch the surface of the target market. There are various companies small and medium sized who are challenging the company in some way or the other as manufacturing of formwork can be done even at all levels, whether at small, medium, or at large scale. Interserve Inc is one of the major competitors of Doka Division for the UK market. Interserve is a multinational company involved in construction and the net income for the year 2015 was EUR 87.048 million. It produces formwork to use in their-own construction segments and also to provide the product to the customers (Doka.com, 2016). The competitor, Interserve, has wide presence in the UK market catering to wide range of customers. It can be expected that Doka Division has to face challenge from Interserve at various degree. The initial level would be in acquiring the customers from the already established market. Doka Division has to use Red Ocean Strategy to strengthen its presence in the market. 

Country Profile

The country selected for the company is United Kingdom. The political situation in the country is stable. It is a unitary state headed by constitutional monarchy. The economy of the country is regulated and is growing well in comparison to other economy in the European Union. United Kingdom is one of the top five economies in the world –as per market exchange rate – and is at the second position in the EU following Germany. The main growing sector of the country is service sector contributing almost 73 percent to the Gross Domestic Product of the country. The literacy rate of the country is appreciably high and has better chances of future growth. However, the recent economic turmoil impacted the economy to a certain extent, and still it is growing with the same vigor and is likely to provide more opportunity to the new and existing companies. The culture of the country resonate mixed orientation. Its reflection of such culture is due to the presence of multiple Island states and one influencing each other. Moreover, the country policies allowing numerous migrants gradually are developing the culture of the organization. The economy of the country is conducive for Doka Division to operate successfully as per the country’s politics, economy, demographics, and cultural acceptance is concerned.

Market Assessment

The construction industry of the market is favorable as per the new and existing companies are concerned. It is considered as key sector of the economy according to the UK government. This sector is appreciably large in the country and almost GBP90 million add to the country’s economy from this sector alone each year. The economic turmoil of 2008 however disturbed the economy a bit. The construction industry has good access to finance. Most of the companies can be seen involving in the credit trade, however, the overall prospect is favorable for the companies venturing into UK’s construction industry. As per the UK government, there are various factors such impact of globalization, orientation towards green and sustainable technology, and change in the country’s demography is likely to affect the market either positively or negatively. As per the KPMG report, there is positive outlook in the UK construction industry. The report states that the construction industry will see the market strengthening due to the likely increase in the demand for various infrastructures. Moreover, the report states that the stability in the construction industry will allow it further strengthen the market. However, it is only suggestive remark as the growth in the profitability cannot be improved overnight, yet a steady growth can be expected from the market in the long run. The government has plans to bring in various programmes focused on infrastructure development which is likely to provide big opportunities for decades to come. 

SMART Goals

SMART Goals refers to the demand those are specific, measurable, attainable, relevant, and time based. This section tries to understand the actual target market of the company and then will prepare three SMART goals to achieve. 

Target Market

The target market of Doca Division is all those companies who involve in the construction processes and require formwork for the same. Therefore, it can be stated here that the target market of Doca Division is mainly the business to business customers who in turn deal with the construction activities further. The target market of the customers has different behavior than the usual customers who are more emotionally oriented and shop impulsively. The Doca Division’s target market is completely rational and they consider various aspects of any specific product prior to making any purchase decision. Moreover, the decisions made by this type of target customer involves various people within an organization and collective decision making is facilitated in most cases due to the involvement of large amount of cost. The target market of Doca Division prefers cost effective products at reasonable rates and never orient towards brand values. They expect quality products and can be handled perfectly if Doca Division maintains good relationship with them. The target group further utilizes the product to help their own clients and, therefore, they look for cost effective intermediary products those can save them revenue and build better relationship with their customers. The target market is concentrated in business districts in various parts of United Kingdom, thus can help Doca Division to spend less and harness more benefits.

3SMART Goals on 3BL

Mentioned below are three SMART Goals for Doka Group based on the three bottom line elements, namely, profit, planet, and people:

  • Increase the market share by five percent within the next two years in United Kingdom.

  • Increase sustainable and environment friendly brand image by 25 percent in the next one year.

  • Improving the employee perception towards the company by 45 percent within the next one year through internal marketing

Marketing Mix

Marketing Mix consists of various elements those need be considered while moving ahead with the preparation of any marketing related plan. This section has considered three of the various factors, namely, product, price, and promotion.

Product

The company manufactures various types of formwork such as Framax Xlife plus, Dokaflex 30 tec, Concremote, Doka Unitkit, Dokadek 30, and others. These various types formwork are manufactured keeping various needs of the clients’ in consideration. There are some of the economical formworks such as Framed Formwork Frami eco which is suitable for both – high rise and low rise, with or without crane – the construction conditions and can be preferred by low budget clients. The various types of formworks developed by Doka Division, cannot be categorized based on any specific customer group and anyone can call for combination of any types of formwork. Therefore, considering formwork as one single product unit rather than breaking it into pieces would be wise choise.

Price

The prices of formwork are negotiable and do not have any structured price strategy. The prices depend on the relationship with the clients, bulk purchase, and future prospects from the client. Therefore, quoting any specific price for the product is not viable. The company can use the cost based pricing strategy or consumer perception based pricing strategy where the product is priced on the basis of the perception of the client about the price of that product. Moreover, in business to business dealings, most of the prices are vague and mostly depends on the bulk purchase which reduces the price per unit and increase the overall profit value for the seller company. The third orientation is whether there is any opportunity of repeat purchase by the client. If there exists any opportunity, then it is better to sell the product at reasonable prices, so that the client can make repeat purchases providing long term customer value to the company. 

Place

The distribution strategy of the Doca Division is straight from the plant to the customers’ disposal. There exist no intermediaries except the transportation system, and the sales agents. The sales agents are the main element in the whole supply chain. They are the one who actually handles the major part of whole process. Their successful coordination with the client helps them attract better deals which lead to further processes in the supply chain network. The supply chain network of the Doca Division is not concerned with quality service to the client. The service orientation not only considers the pre-sales support, it also focuses on after sales service which help the client understand the product in a better way and gain complete benefit from its utilization. Moreover, the company sends its agents to provide on-site support in case of any emergency.

Promotion Plan Using AIDA

Promotion plan helps the company promote itself in the eyes of the customers so that it can boost the sale of the company. Mentioned below are the brief description on AIDA model followed by the promotional plan and the promotional budget.

  • AIDA Model: AIDA model focuses on understanding the customers in a better way. It considers four phases of customers’ decision making, namely, awareness, interest, desire, and action. 

  • Awareness: The awareness phase is concerned with creating awareness among the target customers about the presence of the brand or product in the market. The awareness phase is mainly concerned with imprinting in the sub-conscious that there exists something called Doka Division which manufactures formwork of different shapes and sizes and price rates. Such awareness will help the company to create an environment for the customers and will help it pave appreciable growth path ahead.

  • Interest: This is the phase when the customers show some interest in the product being sold. In this phase, the customers look for more information for the people and try to correlate with what or where they are the way things can be improved further using the company’s product.

  • Desire: The desire of the customers is by their interaction with the product detail when they look for more information. The desires of the customers are decide rationally, and thus have little chance for Doka Division to manipulate the customers.

  • Action: This state is where the customers make the final selection of the product or services. If possible, the company can help create good experience for the buyers in many ways.0

Promotion Plan

Mentioned below are promotion plan for the company’s product:

  • Using the print advertising for events, and others

  • Using Direct mail to reach the intended client

  • Using outdoor advertising 

  • Broadcasting the company’s product on radio

  • Printing brochures

  • Publishing newsletters

  • Distributing flyers

  • Printing posters

  • Calling right event sponsors

  • Participation in the community project

  • Conducting trade shows

  • Conducting contests

These are the mentioned activities, company will involve into attract the customers.

Promotional Budget

Elements    Associated Costs (in EUR)
Print Advertising    1500
Mail    500
Outdoor    2000
Broadcasting    1500
Newsletters    1000
Brochures    1100
Flyers    500
Posters    800
Sponsors    1500
Community project    3600
Trade Shows     8500
Contests    7500
Total    28,200
Conclusion
It can be stated in the end that the company has attractive prospect in the market and it can move ahead with great pace if it implements proper promotional plan in the market. The company has greater opportunity from the changing market and can grow better ahead.

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