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L’Oreal SWOT Analysis
BusinessManagementMarketingSWOT & PESTLE 

SWOT Analysis of L’Oreal, Competitors and USP

by Shamsul

SWOT Analysis of L’Oreal, Competitors and USP

L’Oreal is a big name in the beauty industry. SWOT analysis of L’Oreal presents its strengths, weaknesses, opportunities, and threats. The brand has benchmarked its business successfully and thus it is a leading name in the relative market. They have gained huge popularity in a short span of time and it is all because of the strong product portfolio, marketing & advertising strategy, and business performance. Hence, L’Oreal is one of the biggest names in the FMCG sector. Today, we will talk about the internal and external factors of L’Oreal, its competitors, and UPS.

Parent Company: L’Oreal

Native Name: L’Oréal S.A. (French pronunciation: ​[lɔʁeal])

Established: July 30, 1909, Paris, France

Founder: Eugène Schueller

Head office: Clichy, France

CEO: Nicolas Hieronimus (May 1, 2021–)

Area Served: Worldwide (over 150 countries)

Industry: FMCG (Leading the world in beauty and pioneering the world of beauty tech)

Category: Cosmetics and Personal Care

Slogan – ‘’Because you’re worth it’’

Products: Makeup, Skin Care, Men & Hair Products

Number of Employees (2020): 86K

Total assets: (2019) – €43.81 billion  

Revenue: (2019)  – €29.87 billion

Net Income: (2019) – €3.75 billion

Subsidiaries: 36 international brands include Kiehl’s, Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Ralph Lauren, Clarisonic, Maybelline New York, Essie, Kérastase, IT Cosmetics, Prada Beauty, Biotherm, Shu Uemura, Viktor&Rolf, Maison Martin Margiela, Urban Decay, Redken, Vichy, La Roche-Posay, Diesel, Garnier, L’Oréal Paris, and more.

Strengths of L’Oreal | SWOT analysis of L’Oreal

  • The R&D department of L’Oreal is really strong. Specifically, they are continuously offering innovation and useful research to make the company better. This thing shows that the company provides the best personal care and cosmetic products to their users.
  • When it comes to growing cosmetics companies, L’Oreal is a leading name despite all the stiff competition.
  • Its customer-centric advertising strategy is the main reason of its strength.
  • With more than 80,000 employees, L’Oreal has a strong workforce globally.
  • From the complete range of hair care, skincare, makeup, and perfumes, L’Oreal contributes to the pharmaceutical and dermatological sector.
  • It has 50 manufacturing plants in different world locations and is actively present in more than 130 countries.

Weaknesses of L’Oreal | SWOT analysis of L’Oreal

  • The company has a weak hold on its segments and subdivisions due to its de-centralized organizational structure. It is one of the major weaknesses of L’Oreal, and it can create problems in the future.
  • The cosmetic industry is very deep due to the availability of many well-established brands. So, L’Oreal is facing tough competition from others.

Opportunities of L’Oreal | SWOT analysis of L’Oreal

  • L’Oreal only targets upper-middle-class people, but they have a chance to target every segment of consumers to gain a competitive edge over competitors. They can expand their reach to other countries to increase their footprint.
  • The company can increase its market share by introducing some innovation in its product portfolio.

Threats of L’Oréal | SWOT analysis of L’Oreal

  • The competition in the cosmetic industry is continuously increasing thus it is an alarming thing for L’Oréal.
  • Economic downturn, fluctuating dollar prices, disorder in supply and demand can lead to many problems.
  • Some of the products of L’Oreal are irrelevant that can upset the customers. So, customers target other brands that offer basic and relevant cosmetic and beauty products. So, it can be a significant threat for the company.

Competitors of L’Oreal:

The personal care and cosmetic sector are really dense due to the presence of several local and international brands. Finally, here are some biggest competitors of L’Oreal.

  • Revlon.
  • Lakme.
  • Avon.
  • Chanel.
  • Christian Dior.
  • Unilever.
  • Lancome.
  • Procter & Gamble.
  • Maybelline.
  • Olay.

Indeed, It is difficult to easily understand the operation and business strategy of L’Oréal. Whether you are a student or researcher, you can read this SWOT analysis of L’Oreal to increase your knowledge and level of understanding about business and other marketing strategies.

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Verizon Marketing Strategy
BusinessManagementMarketing

Verizon’s Marketing | Marketing Strategy used by Verizon

by Shamsul

 

Verizon’s Marketing Strategy | Marketing Strategy used by Verizon

 

Verizon is one of the great networking and technology companies that build, operate, and design worldwide mobile telephony, information systems, and networks to help different companies in growing and excelling their business. Fortune list of 500 companies listed Verizon as 13 effective companies. Recently this company acquired the digital assets of Yahoo for $4.83 billion in cash.  The strategic acquisition of this company has been a great help in creating various possibilities for customers and a transforming guide for industries too. Here, we are analyzing Verizon’s Marketing Strategy.

Targeting, Positioning, and Segmentation in Verizon’s Marketing Strategy:

Since this company is serving B2B and B2C, both types of customers. It uses behavioral and demographical segmentation-based strategies for segmenting the market which helps in providing customized services according to their needs. Industries like information technology, networking-based industries, or telecommunication are solely run on the basis of customization, i.e. client or customer’s requirement, so Verizon uses a differentiation-based targeting strategy for providing facilities to its clients. It also uses a product and usage-based effective positioning strategy which helps in creating a diverse and advanced technological telecommunication company-centered image. Its vision is based on a smart, simple, and connected smooth and continuous experience for its customer each time they interact with Verizon. Its tagline hints towards delivering the promises of the digital world.

Use of Competitive Advantage for Verizon’s Marketing Strategy:

 Different strategies of the company like the strategic partnership with Google to leverage the mobile platform and various others, different acquisitions like digital assets of yahoo or AOL and Hughes telematics, helped in building communication and networking structure. Broad service and product portfolios like wireline/ wireless, broadband, and mobile networking have greatly helped the company to retain its loyal customers through interrelated services bouquets offered at competitive at the same place.

BCG Matrix Analysis of Verizon’s Marketing Strategy:

 Mobile communication network consists of 98 % coverage of U.S. wireless internet, cable services, coverage and vertical like cloud computing, all are stars because of having huge competition. Nevertheless, this segment’s rate of market growth is excellently high which can be understood by considering data consumption.

Distribution Strategy as a part of Verizon’s Marketing Strategy:

 Partnership and strategic acquisitions of Verizon have been of great help. It supports the brand in delivering high-quality network services with different platforms. While simultaneously developing already existing platforms according to customer’s demands and needs. It is to fulfill the promise of a better digital world.

Brand Equity as a part of Verizon’s Marketing Strategy:

 As a leader of communication and network companies, Verizon believes in exploring possibilities that will help the company in expanding its services. This in return helped the company to work with 500 fortune companies and enhance its solution and connectivity infrastructure.

Competitive Analysis as a part of Verizon’s Marketing Strategy:

For a technology industry, the marketplace will always be competitive. Because large multi-national companies being present along with hovering local players in the market. That is why differentiation-based customer product experience is a must to help companies in strategizing and building support-based infrastructure and to fulfill their missions.

Market Analysis as a part of Verizon’s Marketing Strategy:

 The telecommunication and information technology industry is fully crowded with a great amount of MNC and local/ national players struggling hard to eat up market shares of each other. But final deal-breaker to such competition will be the resource cost of the organization. Moreover, such companies prefer to outsource secondary activities and handle company-specific and critical activities by themselves.

Customer Analysis as a part of Verizon’s Marketing Strategy:

Verizon customers are various industries based companies like education, government organization, or healthcare. Verizon’s IT competencies help its customers in the co-creation of their different digital platforms.

 

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Hyundai Motors
BusinessManagementMarketing

Hyundai Motors Marketing | Hyundai Marketing Strategy

by Shamsul

 

Hyundai Motors Marketing | Marketing Strategy of Hyundai Motors

 

Hyundai Motor is a famous South Korean automobile company in the world. It started its operation in 1967. They manufacture commercial vehicles, engines, and automobiles and currently operating in more than 195 countries globally. The company is a market leader in several developing nations and a big name in developed nations. Due to several factors such as environmental situations, government regulations, stagnant growth rate, and fuel price instability, the automobile market is experiencing heavy downturns. Due to this reason, Hyundai is targeting customers by fulfilling their requirements and product performance. In this article, we will focus closely on Hyundai Motors Marketing.

 

Important Factors in the Hyundai Motors Marketing:

Segmentation, Targeting, and Positioning:

The company utilizes psychographic and behavioral segmentation strategies to target its customers. They are focusing on the premium segment through its offerings like SUVs and innovative showroom setups like Hyundai Motorstudio. Hyundai uses a differentiated targeting strategy in order to satisfy the customer needs and target them. Positioning is one of the vital factors which is responsible for driving the market. Hyundai Motor uses value-based and product-based strategies in order to enhance the customer experience. Its main tagline is ‘’New thinking new possibilities’’.

Competitive Advantage | Hyundai Motors Marketing

Hyundai has a consumer-centric approach to smart service. Certainly, it is helping the company to increase its efficiency and credibility in several sectors. Its innovative and IT-based ecosystem helps the brand to present anytime and anywhere. Moreover, the company has invested a huge amount of money in the R&D sector which is the biggest competitive advantage of Hyundai Motors. Thus, they are continuously improving their performance and products for users. They are working in the R&D, financing, and in-vehicle segment which is helping the company to align its automotive business.

BCG Matrix | Hyundai Motors Marketing

The sedan is in the star category of BCG matrix and other options such as i10, I 20, Elantra, and Accent are some of the famous products of Hyundai and are responsible for driving the major sales of the company. Its trucks, MPV, and SUV are still in the question mark category but they also hold specific market value in these segments.

Distribution Strategy | Hyundai Motors Marketing

With more than 6000 showrooms, Hyundai is making sure that its products and offerings are available to the users and dealerships. Its latest showrooms like Hyundai Motorstudio are giving opportunities to users to see and check its offerings which is directly enhancing the customer experience and brand value.

Brand Equity | Hyundai Motors Marketing

Hyundai is sponsoring some of the top world’s events like UEFA, ICC, and FIFA. They are also associating with several international events that helped the company to increase its visibility and brand worth.

Competitive Analysis | Hyundai Motors Marketing

The automotive industry is flooded with several local and international makes. Various companies like Ford, Fiat, Honda, Suzuki, and so on are giving stiff competition to Hyundai. That’s why they are disturbing the market share of each other through their services and offerings.

Market Analysis | Hyundai Motors Marketing

In order to target the upper-income or upper-strata groups, Hyundai uses its customer-centric approach to target its users in emerging regions. On the other hand, the automobile industry is facing several challenges right now in the form of increasing fuel prices, environmental regulations, and stagnant growth rate. That’s why they are targeting customer serviceability, innovation, and brand awareness in order to align their operations and position in the competitive market.

Customer Analysis | Hyundai Motors Marketing

Most of the customers of Hyundai Motors belong to middle-class groups. So, they want to buy a vehicle for family use and looking to get their money’s worth. That’s why Hyundai is very popular among the majority of middle-income groups and they present those models that satisfy their requirements.

 

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Marketing Strategy of Burger King
BusinessManagementMarketing

Marketing Strategy of Burger King | Fast Food Chain

by Shamsul

 

Marketing Strategy of Burger King

 

Burger King is one of the most popular fast-food brands in the world with more than 100 restaurants in different regions of the world. Nearly 99 percent of outlets are franchised and 1 percent is possessed by the company. With more than 60 years of working, This fast-food chain is the largest and famous name in the fast-food chain industry. In this post, we are going to discuss some important marketing strategies used by Burger King. Keep reading to learn more.

Important Factors in the Marketing Strategy of Burger King:

Segmentation, Targeting, and Positioning:

To cater to the varying preferences and tastes of different customers internationally, the company uses geographic and demographic strategies. In targeting strategy, they address the requirements of the users. In positioning strategy, Burger King uses serviceability and convenience factors. Its main tagline is ‘’Have it your way’’. Due to these effective strategies, Burger King is one of the biggest and highly competitive brands in the relative market.

Competitive Advantage:

  • Strong Parent Company:

Restaurants Brand International is the parent company of Burger King. It has utilized its infrastructure support and capabilities in order to achieve its targets and purposes. It is a major competitive advantage over its competitors.

  • Line of Business:

The company produces its money in 3 ways.

  1. Royalties are paid by the outlets in the form of a percentage of total sales generated.
  2. Properties leased out.
  3. Income from the Burger King-owned outlets.

  • Intellectual Property Rights:

With more than 1000 domain name registration and 4600 Burger King Trademarks, the company owns all the trademarks and registrations around the globe.

BCG Matrix:

Its franchise-owned business is in the star category but the leashed or sub-leashed franchises are still answerable. BCG matrix is really helpful as it tells the different scenarios of a business within the circulation.

Distribution Strategy:

With more than 15000 franchised outlets worldwide, the company is orchestrated by the master franchise in various regions. They get products and raw materials from a third party on the basis of region or area. Its distribution and supply chain network are really effective and the main reason for its success.

Brand Equity:

Burger King is the leading QSR (Quick Service Restaurant) brand in the world with high top-of-mind awareness (TOMA). It is all due to its special and innovative offerings like Whopper, Hamburger, and so on. These innovative products are continuously increasing the market value and market share of the brand.

Competitive Analysis:

There is no denying that the fast-food industry is flooded with several local, national, and international brands that providing the same products at competitive rates. They all are working really hard in order to gain the market share. The biggest strength that makes Burger King highly competitive is its convenience, product choice, service quality, and more.

Market Analysis:

As many local, national and international brands are actively working in the fast-food market, it is really intimidating for any company to increase its market share and consumer base. It becomes tougher in developing regions due to various factors like living standards, poverty, unemployment, poor literacy level, and low/capita income. Burger King is using the franchised model for physical sales and also developing online sales by delivering special offers and discounts to users in order to gain cost control and consumer satisfaction.

Customer Analysis:

Every customer wants to enjoy delicious and safe fast food and drinks. The major customers of Burger King are between the ages of 15-40. In developed regions, every person prefers Burger King due to its innovative deals and offerings. That’s why it is a popular fast-food hamburger restaurant chain in the world.

 

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Marketing Strategy of Starbucks
BusinessManagementMarketing

Starbucks Marketing | Marketing Strategy of Starbucks

by Shamsul

 

Starbucks Marketing | Marketing Strategy of Starbucks

 

Founded in 1971, this famous coffee-based chain; Starbucks was initially in the business of retailing, roasting whole bean and coffee, tea, and spices. Starbucks Marketing is very effective and currently, it is operating in 70+ countries and has become very successful in making connections with its customers across the global network of 24,000+ retail stores.

Important Factors in the Marketing Strategy of Starbucks:

Targeting, Positioning, and Segmentation:

 Starbucks uses a combination of demographic and geographic strategies for the segmentation of its particular offerings for its customers. A selective targeting-based strategy is being used in geographically separated 70+ countries for its product, Costa coffee. This strategy has helped the company to cater needs of its customers and introduces various new products according to the demand.  This coffee chain has positioned itself as a value-based company; it creates an imaginary stimulus through intangible offerings with their main product.  Its mission is to nurture and inspire the human spirit, one cup, one person, one neighborhood for one time.

Competitive Advantage | Starbucks Marketing

Backward integration of this supply chain was to control the roasting, packaging, purchasing, and coffee distribution around the world while maintaining the taste and quality of its coffee in the world market.

BCG Matrix | Starbucks Marketing

 It’s being worldwide famous and a business experience over 3 decades has helped this company to develop better business understanding and innovate new methods with changing market. All of its products are the stars in the BCG analysis matrix.

Distribution Strategy | Starbucks Marketing

 As a roaster, retailer, and marketer dealing with the world’s best coffee chain, it provides an offering of beverage products with the help of its various company-owned or different licensed stores across the globe. It also provides its variety of trademark tea and coffee products in grocery and different supermarket or store chains across the world.

Brand Equity | Starbucks Marketing

 This brand is not only limited to coffee but also sells services and goods under different brand names like Tazo, Evolution fresh, Ethos, and Teavana. Its involvement in various CSR activities since the brand’s inception has helped the brand to connect with across-the-world communities. Company ethical believes have helped it greatly in retaining through talent nurturing and various won awards and a position of the most admired American company in its home country, according to fortune 2015.

Competitive Analysis | Starbucks Marketing

 Competition in the industry is based on basic but important factors like quality, service, price, and convenience. Coffee culture has been picked up in a variety of developing nations and keeps making progress which offers great competition between local, national, and international players. Companies in the coffee business have different types of competitions offered like other restaurants, ready-made packed coffees in grocery or any stores, and prime location specialty stores.

Market Analysis | Starbucks Marketing

Coffee consumption has been growing around the globe at a 2% rate. In India consumption of coffee

Per capita is nearly 85 grams and this value is 6 kg in the US. Developing countries are a great potential investment for any industry/ company.

Customer Analysis

Its customers are usually millennial, 15-45 years age group people enjoying hangouts with family and friends with blended beverage experience offered in different outlets.

 

 

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Marketing of Pizza Hut
BusinessManagementMarketing

Pizza Hut Marketing Strategy | Marketing Strategy of Pizza Hut

by Shamsul

 

Pizza Hut Marketing Strategy | Marketing Strategy of Pizza Hut

 

Pizza hut started in 1986 and now has emerged as an economical and restaurant. Its dining is operating with 13000+ restaurants. Pizza Hut is YUM’s flagship brand, YUM handles different brands like KFC, Taco Bell, A& W, and Long-John-Silver’s under its brand setup. Pizza Hut offers products like appetizers, signature pizzas, pasta, beverages, and desserts. The ambiance and dining are being equally recognized for Brand Equity. Here, we are going to analyze Pizza Hut Marketing Strategy.

Important Factors in the Marketing Strategy of Pizza Hut:

Targeting, Segmentation, and Positioning:

Pizza Hut prefers a combination of psychographic and geographical segmentation variables that make its offered products easily available for the market. The Pizza brand is world-famous and uses undifferentiated strategies for targeting and designs its services and offerings according to customer’s choices. It makes use of value-based positioning tactics to create an everlasting impression in customer’s minds. Its tagline claims Pizza Hut to be a customer favorite.

Competitive Advantage | Pizza Hut Marketing Strategy

It has a strong position in the Pizza market due to the variety of items on its menu; this variety is aiding the company to provide better and effective options than its competitors. Such developing markets will be business growth drivers in the future and the main strength of Pizza Hut lies in its great focus on business generation and enhanced growth through emerging markets.

Strong and stable parent company: The parent company (Yum Brands) of Pizza Hut has KFC, Teco Bell, etc.  In brand, the portfolio is of great help for Pizza Hut to exploit these resources and networks for business growth.

BCG Matrix | Pizza Hut Marketing Strategy

 Due to its variety of product offerings in Pizza and other segments, it is ruling in the market.

Every product is star marked in BCG matrix analysis.

Distribution Strategy | Pizza Hut Marketing Strategy

 With over 13, 000 dining restaurants in 100 countries, Pizza Hut has become the largest dining restaurant chain for casual dining in the world. In India, Pizza Hut provides dining across 140 dining restaurants in 38 cities with options of sitting, take away, etc.

Brand Equity | Pizza Hut Marketing Strategy

 The casual atmosphere of dining provided by Pizza Hut is known as brand equity, its excellent services and offerings have been winning the award of the most trusted brand for the past 6 years. In a country with a population like India, Pizza Hut is attracting 50,000+ people every day and has become a perfect celebration place.

 Competitive Analysis | Pizza Hut Marketing Strategy

 In markets, every local, national and international player like, Papa Jones, Dominos, Toppers, and Greco, etc., are fighting and struggling for getting the maximum market share. The pizza industry has so many options but Pizza Hut due to its online discounted offerings on-time delivery has been able to regulate leadership status in most operating countries.

Market Analysis | Pizza Hut Marketing Strategy

 Nowadays, different fast food choices have made it difficult for Pizza offering companies to enhance their customer base while increasing their market shares at the same time. Several factors hinder the market size growth of Pizza Hut like companies in developing countries; these factors can be literacy level, low/ capita income, poverty level, and living standards, etc. Pizza Hut outlets are located strategically at suitable locations that cost low infrastructure and cater large-scale needs of nearby areas. Also offered discounts are online sale promotion method which provides satisfaction and convenience to customers and sales to the company with input cost control.

Customer Analysis

Its customers vary geographically around the world. In different developed countries like UK, US, etc., Customers belong to every age group on the other hand in developing countries like India, etc. majority of Pizza Hut customers belong to the 20-40 years age group.

 

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Market Strategy of Mastercard
BusinessManagementMarketing

Mastercard Marketing | Marketing Strategy of Mastercard

by Shamsul

 

Mastercard Marketing | Marketing Strategy of Mastercard

 

Mastercard is a tech-based international payments company. It was established in 1966 and serving governments, businesses, issuers, merchants, and consumers internationally. ICA (Interbank Card Association) is the main architect of this company. It is giving tough competition BankAmericacard and several other cards. In 2016, it was declared as the World’s most ethical company. Today, we will discuss the crucial Mastercard Marketing Strategy.

Important Factors in the Marketing Strategy of Mastercard:

Segmentation, Targeting, and Positioning:

There is no doubt that Mastercard is the biggest international payment company. It uses demographic and psychographic factors like education, class, age, occupation, income, and other similar things for segmentation. In targeting strategy, they use differentiated strategy in order to cater to the needs of users accordingly. It has positioned itself as a holistic company with the approach of providing handiness to customers, merchants, and stakeholders. They are continuously improving and modernizing their offerings for users, that’s why they use value-based positioning strategies. The main tagline of the company is ‘’transforming the way we live’’.

Competitive Advantage | Mastercard Marketing

  • Strong Portfolio:

The product portfolio of Mastercard is really impressive because they have several services and products such as commercial and prepaid services, cards, consumer credit and charge, debit, and various offerings. They also offer loyalty and reward programs in their value-added offerings. These factors give Mastercard a huge competitive advantage.

  • Strategic Acquisitions and Partnerships:

With 25000+ financial services and institutions, Mastercard is closely working with these institutions globally, which results in the increment of its consumer base. Moreover, they have made several tie-ups and acquisitions in order to increase their reach and access.

  • International Presence:

Currently, Mastercard is offering its services in more than 210 regions and countries internationally. With this reach, they have created a top-notch TOMA and recognition at different forums and levels.

BCG Matrix | Mastercard Marketing

Mastercard is a technology-driven global payment company with some core offerings such as credit/debit, safety and security, Mastercard Advisors, Loyalty, and rewards. Mastercard Advisors and Loyalty & rewards are in the star category while others are still in the question mark category.

Distribution Strategy | Mastercard Marketing

The company offers digital transaction facilities to merchants and consumers in many ways. They are working closely with different suppliers like human resources, consultants, marketing, telecom, technology, and IT equipment. The main purpose is to provide its services to users of different regions efficiently and effectively.

Brand Equity | Mastercard Marketing

In Forbes’s list of the world’s most valuable brands, Mastercard has been ranked 52nd. On the other hand, the company has secured different ranks and awards at different forums due to its offerings and services. In terms of market capitalization and value, the company’s worth is very high even in the presence of heavyweights like Visa.

Competitive Analysis | Mastercard Marketing

The global payment industry is really dense and highly competitive because of the presence of local and international companies that compete in cash, cheques, credit cards, debit cards, and even crypto-currencies. The major competitors of Mastercard in the relative fields are Fintech firms, Visa, and many others.

Market Analysis:

Developed markets have different challenges and needs that are continuously affecting the development and growth of Mastercard. Factors like automation in the financial markets, rising literacy rates, and per capita income are some of the crucial things in developing markets. They are adopting digital and convenient ways of transaction with the help of credit/debit cards, Mobile-Pos machines, and several other things. These factors are continuously changing the consumer demands and market dynamics in the industry.

Customer Analysis | Mastercard Marketing

Most of the consumers of the company are tech-savvy who prefer digital ways for their daily transactions and payments. They have mature customers under their consumer base. From private to government organizations and individuals, its customer base is spread across boundaries. It is one of the biggest competitive advantages that the company has over its competitors.

 

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Microsoft Marketing Strategy
BusinessManagementMarketing

Microsoft’s Marketing Strategy | Marketing Strategy of Microsoft

by Shamsul

Microsoft’s Marketing Strategy | Marketing Strategy of Microsoft

 

Bill gates founded Microsoft in 1975. This American multinational company can be considered a technology giant that makes people’s lives convenient, advanced, and comfortable worldwide. Microsoft offers a different variety of services related to personal computers, computer software, and consumer electronics. It develops and manufactures licenses, provides supporting excellent quality services and products based on its portfolio. This world’s largest, one of the most valuable companies in the world, repeatedly listed in the top 100 Forbes ranking of companies, is not unknown to any. Microsoft’s Marketing Strategy has made it a leader in the IT industry.

Targeting, Segmentation and Positioning Strategy of Microsoft Marketing:

This giant tech company characterizes its customers based on behavioral and demographical segmentation strategies to create segments that relate to it. In the demographical segment, products like office-based products and operating systems are available to everyone. In the behavioral segment, products like window server, Microsoft, operating system related are available for Windows or Windows phones. It has its roots in many software and hardware businesses, from mobile selling and manufacturing to operating systems. As it has comprehensive services and product portfolio, Microsoft uses a combination of differentiated along with non-differentiated targeting tactics. While dealing with windows, offices, and the overall operating system, the population is equally distributed and the whole world having access to any computer is the target.

The company has been rebranding the products and logos of the services. It has undergone a remarkable turnaround to reposition as a value-based industry that aims to enrich people’s lives around the globe. While talking about Microsoft’s position in the market, its several software and operating systems are top minds positioned. The brand value of Microsoft is this excellent that any launched product gets a nice immediate positioning. But in few cases, like its window mobile phones, the market position is not that strong compared to Apple or Samsung. However, in the developer tool and mobile market, the competition is high, and preference by customers is given on the basis of offered features, so staying up-to-date and using a differentiated target strategy is necessary.

Microsoft’s mission is to empower every organization and every person around the globe to achieve better. Its vision is based on what can be done and the final goal with a tagline emphasizing the customer’s potential and the company’s passion.

Use of Competitive Advantage for Microsoft’s Marketing Strategy:

Microsoft has the benefit of a variety of offered services and products over other companies. Its comprehensive range offerings spreaded from Xbox console games, software to Microsoft tablets. Being a part of the meta-market industry provides an edge over many. One can excel through sharing capabilities. It’s another and significant competitive advantage is based on the big and small companies like Skype, Hotmail, Nokia, Navision, Vision Corporation etc. that he has acquired. Microsoft’s closest competitor is Apple. It is better because installing its software and operating system has no hardware binding, which is the main problem related to Apple smartphone distribution. But loss related to piracy is also huge. Another advantage that Microsoft has is its massive product line.

It is a worldwide leading provider of operating systems and owns a dominant industry position on the basis of worldwide figures. It offered a free upgrade of its latest window 10 to window 7 users. Microsoft has also worked on the total cost of ownership (TCO) so that software is economically and efficiently available to its users.

BCG Matrix Analysis of Microsoft’s Marketing Strategy:

Its online services, business division and window division dealing with consumers are stars as its bases are related to OS windows platform. With huge OS market shares, offered software by the company get more attraction and trust by consumers. However, it was overtaken by Apple’s operating system in the USA, which is the home country of Apple, but in the global market, OS windows are unbeatable. Office suites and Xbox 360 are stars with high market shares, but ongoing indirect and direct competition exists in these segments. In the former, open sources like Kingsoft, open office, and many others are offered in the earlier format, whereas Sony and Nintendo offer competition in the latter. Devices divisions like Zune, Microsoft phones etc. are a question mark placed in the BCG matrix due to strong competition by rivals.

Distribution Advantage as a part of Microsoft’s Marketing Strategy:

Its multi-channel strategy and wide channel distribution make its services and products available to its end customers and have helped this company enhance its awareness and visibility. It uses large retail outlets and e-commerce sites along with exclusive showrooms to make its services and products available to its end customers. Its distribution of operating system has a great key factor of its being tied up with HP, Dell, and other OEM’s. These companies provide laptops that are already installed OS window systems.

Brand Equity as a part of Microsoft’s Marketing Strategy:

In 2016, Microsoft became the 5th greatest valued brand in the world. It has high TOMA because of the great acceptability of window’s operating system in the market. Microsoft is one of the oldest/longest present tech sector companies and has continuously changed according to business environment changes. It used different campaigns like, “GET-THE-FACTS”, Scroogled, and many others that helped enhance brand visibility more than before.

Competitive Analysis as a part of Microsoft’s Marketing Strategy:

Hi-tech culture is emerging, innovative products creations by companies and services are according to customer needs. This kind of high acceptance and appreciation of technology and products change the industry into the hot cake. Every IT company is trying its best to take the prominent spot among which Google is a top rival of Microsoft.

Market Analysis as a part of Microsoft’s Marketing Strategy:

Microsoft has a rapid growth rate going up with the needs and challenges of the industry. Companies in this industry are trying to outsource their services and products from developing nations. This process is helping to decrease operational costs because the customer side has a variety of companies available in the market, giving clients the benefit of a bargain.

Customer Analysis as a part of Microsoft’s Marketing Strategy:

Microsoft has services and products for each age group and interest group, whether the customer is individual or based on a whole enterprise.

 

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Marketing Strategy of DHL
BusinessManagementMarketing

DHL Marketing | Marketing Strategy of DHL

by Shamsul

 

DHL Marketing | Marketing Strategy of DHL

 

DHL is one of the leading courier services globally and due to DHL marketing, the company is operating in 220+ territories and countries internationally. It,s headquartered in Bonn, Germany, and delivering its services to users by fulfilling the changing demands of users. It has a workforce of more than 350000 people working hard to achieve its goal. That’s why it is a famous courier service in the world. It is a market leader in logistics and postal services. Indeed, it has various subsidiaries like DHL Express, DHL ecommerce, Parcel, DHL Freight, DHL Supply Chain, and DHL Global Forwarding. Let’s discuss the marketing strategy of DHL.

Important Factors in the Marketing Strategy of DHL:

Segmentation, Targeting and Positioning:

As DHL deals with various customers of different nations, setting a segment strategy is difficult for such companies. They use both geographic and demographic strategies to understand and fulfill the customer’s needs. DHL uses a differentiated targeting strategy in order to identify and strategize its services accordingly. As DHL is a global company, so, they always use a customer-centric positioning strategy. The main tagline of the company is ‘’the power of global trade’’.

Competitive Advantage | DHL Marketing

Collaborative Partnerships | DHL MarketingThe biggest strength of DHL in the competitive market is its collaborative approach. They believe in working with relative companies and sectors. Moreover, they also focus on major sectors such as automotive, healthcare, technology, energy, manufacturing, and engineering.

Strong Parent Company | DHL Marketing

Deutsche Post DHL Group is the parent company of DHL. This group has a big name in courier service, logistics, and shipping. They earn the majority of their revenue from the logistics business. It is another significant competitive advantage of DHL that it is a division of a strong parent company.

BCG Matrix | DHL Marketing

The company has several SBUs (strategic business units) that are operating in various sectors such as supply chain, distribution, freight transportation, warehousing etc. DHL Freight, DHL Express, DHL Parcel, DHL Supply Chain, and other divisions are in the star category in terms of revenue and market share, while other services like DHL ecommerce are still in question mark category due to the poor performance.

Distribution Strategy | DHL Marketing

The distribution strategy of DHL is really effective, and due to this strategy, they are operating successfully across the world and delivering their services. Its customer-centric approach and supply chain network make it competitive in the market. They use customized logistics solutions and advanced ways in the supply chain that make it efficient and effective. With more than 255 aircraft, they are fulfilling the needs of 3 million customers around the globe.

Brand Equity | DHL Marketing

That’s why DHL is one of the famous brands in logistics and courier services. The company has sponsored many sports events and fashion events like Formula 1 race, Rugby world cup, and other sports and fashion weeks. As an added bonus, they have partnered with several logistics companies and delivery services in order to gain a competitive edge.

Competitive Analysis | DHL Marketing

Due to recent circumstances, the logistic industry has faced tough situations. On the other hand, the logistic sector is stuffed with a range of local and international players such as Amazon Express, TNT Express, UPS, and FedEx.

Market Analysis | DHL Marketing

Due to government regulations, varying economic situations, inflation, and increasing tensions between different countries’ borders, all these things are creating problems for courier and logistic transportation companies. These things are affecting the short product life cycles delivery and other similar items.

Customer Analysis | DHL Marketing

Famous and big companies like industries, individuals, government organizations, and other companies are the primary customers of DHL. Furthermore, they use its services on a daily basis to deliver their products and essentials.

 

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Marketing Strategy FedEx

SWOT Analysis of UPS | UPS SWOT Analysis

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Marketing Strategy of Puma
BusinessManagementMarketing

Puma Marketing | Marketing Strategy of Puma

by Shamsul

 

Puma Marketing | Marketing Strategy of Puma

 

In sportswear, Puma is the leading name internationally due to its innovative footwear, accessories, apparel, and Puma Marketing. It was founded in 1948 and created itself as a leading sportswear brand because of its sports-based products and designs. Its designs, marketing, and selling techniques are really effective. That’s why it is currently operating in 130+ countries globally. The current headquarter of Puma is in Germany. They have 12000+ dedicated and skilled employees in more than 45 countries. In this post, we are going to highlight the marketing strategies of Puma.

Important Factors in the Marketing Strategy of Puma:

Segmentation, Targeting, and Positioning:

In the segmentation strategy, Puma uses a combination of psychographic, demographic, and geographic factors to identify the customers’ changing needs in different markets. In targeting strategy, they use differentiated methods in various product portfolios. Thus, the brand has constantly placed itself as a sportswear brand that inspires people to move ahead in life’s race to get the greatest. That’s why they use a value-based positioning strategy to target the customers. The prominent tagline of the brand is “Forever Faster.”

Competitive Advantage | Puma Marketing

Nearly 90 percent of Puma’s products are sourced from Asian regions because most of its production and manufacturing plants are sited in these regions. Big cat Ltd. is the handler who sourced its products because they coordinate with more than 190 providers. This is the most significant competitive advantage of Puma. The vast range of product portfolio is the other important advantage of Puma because they deal in sports accessories, clothing, eyewear, watches, footwear, and personal care. This kind of broad product portfolio gives Puma a competitive advantage over its rivals. That’s why its market share and brand image are continuously increasing day by day. Customers and professional athletes prefer this brand for buying activewear items.

BCG Matrix | Puma Marketing

The Puma group possessed various subsidiaries like Puma& Cobra golf that also deals in activewear and sportswear items. The footwear portfolio is in the star category because it generated 45 percent sales from total sales. On the other hand, accessories and apparel still have question marks due to the low sales and the presence of various high-quality brands like Nike, Adidas, and so on. There are several local and international players in the sportswear industry.

Distribution Strategy | Puma Marketing

The distribution strategy of Puma is most effective. The Puma Group primarily possesses Puma & Cobra Golf. It provides its offerings through 3 main channels such as Puma stores and ecommerce websites like Alibaba, Amazon, and more. It earned nearly 80 percent of its revenue from its wholesale channels in 2015.

Brand Equity:

Puma has always motivated its customers through its risk-taking advertisements, high-quality sports products, and sassy nature. The company has sponsored various international teams and athletes like Usain Bolt and so many others. They are continuously attracting people through their apparel, footwear, and sportswear.

Competitive Analysis | Puma Marketing

The activewear industry is overcrowded with several famous players like Adidas, Nike, etc. But, the company has a competitive advantage due to its manufacturing and production plants in Asian markets. The labor and material cost is very low in these regions, so it’s a big competitive advantage of Puma.

Market Analysis | Puma Marketing

Several local and counterfeit brands and products are available in the markets that are continuously threatening the market share of Puma. Due to rising labor costs, varying lifestyles, and requirements of customers, users prefer affordable products. But, Puma is trying hard to advertise its products aggressively and spending heavy amounts on campaigns and branding. Puma needs to revise its pricing policy to remain competitive and edgy in these markets.

Customer Analysis | Puma Marketing

The majority of customers of Puma are from upper-class and middle-class categories. Moreover, the growing trend of active style is the biggest reason for the brand’s increasing popularity. They target customers through different techniques such as fitness level, motivations, and active lifestyle. Thus, they are gaining the attention of customers in this way.

 

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