Analysis Of Market Factors, Organizational Structure, And Product Strategy: A Study Of Amcor Limited

Market Factors Analysis

The below presented is the summary of the 1^st assignment which has been segmented in the following parts. The first part consists of the analysis of the factors of market and the second analysis comprises of the analysis and evaluation of the organizational structure. And the same has been further segmented in audit of consumer and their behavior, the nest is the analysis of the marketing mix .i.e. 7P’s. Competitor’s analysis and the positioning map have also been described in the next segment. At the end the external environment has been analyzed which consists of the PEST analysis, theory f porter five forces, value chain and BCG matrix.

The below executed summary is of the assignment 2 which has been made focused on the below presented segments. The first part of the report comprises of the screening process of the selected market which is further divided in stages and factors of market selection process and also after that initial screening is done. Next is the market shortlisting which is done with justification. The further segment consists of the objectives of the process. Next is the selection of the market entry strategies and also the market selection process is described. The last are the recommendations which are given so as to assist in the above presented approaches.

The following is the summarized version of the 3^rd assignment which has been executed for analyzing and evaluating the marketing mix so as to promote the products and services. The business entity has been making use of the marketing mix to enhance the promotional effects and to influence the target market. The marketing mix has been segmented in various sections from which the first part is product strategy and for the same entity has been making use of PLC approach. The next is the pricing strategy and according to which the entity has been making use of penetration pricing strategy.  The further analysis comprises of the distribution channels. The promotional mix is the next segment of the file and the IMC plan is the used approach for the same. Further analysis comprises of maintaining the human resources. And the last part is regarding the economic evaluation which comprises of the expenses and valuation of the same.

In the underlying portion of this undertaking, publicize factors and different open doors existing in the Mexico keeping in mind the end goal to set up objective and position in the organization condition of the particular place. Satisfactory and adequate dangers and openings were talked about through the aggressive examination; promote examination, authoritative natural investigation and advertising investigation. This was performed with a view to understanding the authoritative position adequately in the Mexico. Beside these factors, Amcor Limited’s qualities, inadequacies, openings, and the dangers factors were talked about the distinctive methodologies, for instance, Porter’s five forces, BCG grid, and SWOT examination and esteem chain investigation. While surveying and assessing every one of these factors regarding the Amcor Limited, after the different examines, it has been dissected that the honest to goodness game plan of rest world beside the Mexico varies part. Distinctive standards and headings come in the way while developing their powerful position in the Mexican market with a view to getting drew in with the B2B sort of affiliation. Alongside this, it was assessed and measured while developing the approach into Mexican market for playing out the business exercises; Mexico has the most alluring business segment over the world in wording developing the business with a view to extending the productivity and income of the affiliation. Aside from these components, organization of the Amcor Limited plays out the advertising blend keeping in mind the end goal to achieve authoritative mission and vision. While developing the widespread promoting plan for the Amcor Limited, it has been assessed that their number of affiliations are available and existing which are locked in with an indistinct methodology from Amcor is incorporated. In this industry, the basic accomplishment point of view is giving attractive subjective squeezing. This guarantees the makers in noteworthiness to their things’ wellbeing. Cost is a staggering component which influences the customers. Thusly, Amcor Limited has likewise investigated the parts relating to the cost to set the cost of their things with a specific end goal to meet the authoritative objectives and targets.

Organizational Structure Analysis

The term marketing mix has been considered as the set of actions or activities which can be utilized by Amcor LTD for developing and promoting the product in the market. Price, product, place and promotion are the components of this strategy (Kotler, Armstrong, Harker & Brennan, 2015) and the same has been explained as follows:  

On the basis of the above presented diagram it has been observed that the product is at the growth stage.

Product lifecycle has been considered as the product strategy which can be adopted by the business entity so as to develop the product. This strategy has been segmented in various divisions; these divisions define the lifecycle of the product. The lifecycle of the product can be defined as the stages through which a new product undergoes .i.e. introduction to growth, maturity and decline (Shan & Jolly, 2013) these steps can change according to the changing marketing trends. The below mentioned are the main components of the product strategy:

Branding: In this Amcor Ltd can develop the products name and also a unique identity of the same. This will aid the entity in enhancing the market share for the product.

Packaging:  This process involves enhancing the presentation, outlay of the product which will enable the entity to attract more and more consumers (Othamn, 2014)

Labeling: In this step the products are properly labeled, which will enable the consumer with a description about the product (May, 2016)

Quality: This is one of the main factors for offering satisfaction to the consumer and is also very much significant for the consumer as the purchase is based on the quality of the product (Mitra, 2016)

 Product mix Depth and Width:  The depth of product mix can be considered as the number of versions which are offered by Amcor for each of the products. And whereas, the width comprises of the varied range of product lines which are offered by the company (Hirao, 2014)

Segments: Products segmentation is the divisions which have been developed by the business entity so as to identify the features of the products which resonates with the target markets (Jing, 2014)

Augmented Services: These services are present in both the forms .i.e. primarily physical and non-physical attributes.  This term increase the value of the products (Rowley, 2016)

Pricing strategies are the tactics which are adopted by the business entity so as to create a value of the products and the services which are produced. The pricing strategies are the methodologies which will provide a clear idea and will also enable the business entity to develop a fair price for the product. The prices are set after taking into considerations all the requirements and demands of the consumers. Penetrating pricing strategy can be adopted by Amcor limited and the same has been described as follows:

Marketing Mix Analysis

Penetration Pricing Strategy

The major objective of the penetration pricing policy is to bring a hike to the market share of the product and which will also allow the entity to bring an increase in the prices of the product after the objective has been achieved. According to this pricing policy Amcor Limited will have to lower down the prices of the product while introducing the product in the new market or region. And this is to be done so as to attract the new customers. The core strategy aims at influencing the consumers and makes them to switch over the new product due to the lower prices. One more advantage of adoption of this pricing policy is that it is mostly commonly associated with the marketing objectives of the business entity (Indounas, 2016)

Factors	Justification
Average income	As the income of the population is low the penetration pricing strategy will be the best choice for Amcor Limited
GDP	1.205 trillion USD (2016)
Tax	Low pricing strategy will make the entity to have a low profit margin and due to which entity will be liable to pay low tax rate
Currency exchange rate	In case of dealing with the foreign countries the business entity can face problems as the prices can be low as compared to the other firm and which will make Amcor to face loss.
Average Competitors Price	This pricing strategy will increase market share and also increases sales and hence there will be no effect of competitors pricing strategy.
Cost: – Production	For maintaining low pricing strategy the entity will have to adopt appropriate production process which is cost efficient.
– Distribution	Local means of distribution channels can be used for keeping the prices low as per the strategy
– Labor	Efficient use of labor should be done so as to maintain the prices of the products
– Material	Low cost material with good quality can be used
– Marketing	Effective and cost efficient promotional tools should be adopted by the business entity for maintaining the prices of the products.

The term “place” has been considered as the distribution channels which are essentially and effectively utilized by the business corporation so as to make the availability of the products to the ultimate consumers. The distribution mediums are considered as an integral component in the marketing process as they make the product available at the right place on right time (Hamzah & Sutanto, 2016). The below mentioned are some of the variables which have number of impacts on the distribution products and services of Amcor Limited:

Channels

The below mentioned the distribution channels which can be adopted by Amcor limited for making the products and services available:

Direct Channel

This medium has been considered as one of the most effective tool or platform for distributing the products and services. In this the manufacturer directly makes supply of the goods to the consumers and this is the reason it has been named as the direct channel. The business entity is held responsible for performing all the functions which are associated to the marketing. No middlemen or intermediaries are involved. The below mentioned are some of the mediums through which the business entity will be trying to reach the consumers directly:

• Retail outlets
• Personal selling
• Mailing or post
• Factory door selling

This method has been considered as very much cost effective as no middlemen are involved and it is also one of the simplest forms of distribution channel. But then also it cannot be adopted by the business entities for dealing of large number of consumer goods (Li & Kannan , 2014)

Indirect Selling

Indirect channel are also considered as an exclusive medium of distribution. Further, the concept can be defined as the marketing of products and services which are first transferred to retailer who in turn sell the goods to the ultimate consumers and this whole process is termed as Indirect Channel of distribution. The mechanism has been considered as one of the most methodology which can be adopted by Amcor for the distributions of products and services, and effectively can also be utilized for advertising. The following mentioned are the reasons for selecting the indirect channels of distribution:

• This system provides a better control over the supply of the goods
• This also facilitates the entity and the retailers to make a speedy distribution of the demanded products and services
• This distribution channel also brings a minimization in the expenses as the expenses won’t be beard by the manufacturer.
• Better training of sales can also be offered
• This also aids the entity in obtaining rapid feedbacks from the consumers (Khan, 2014)

Product Strategy

Selective Distributive Channels

This distribution channel is concerned with the distribution of products and services through wholesalers. The distribution through platform has been considered as one of the widely used mediums of distribution globally. Amcor Limited will be aided as these distribution mediums will enable the business corporation to sell products and services in lot to a few selected wholesalers. After that the wholesalers sell the same products to the retailers, who further in turn to sell products to the end consumers. In this concept wholesaler play a role of middlemen, take little to the products and services, prediction of risks, selection of reliable retailers, provision of products on cash as well as a credit. This is the process which is followed by the wholesalers which is used for spreading sale on a wide market. For instance, these types of distribution platforms are proven very much effective for the advertisement of drugs, hardware, tobacco, toys, food products etc. (Garding & Bruns, 2015)

Intensive Distributive Channels

This has been considered as one of the expensive channel of distribution of goods and services as the manufacturer make use of the varied range of wholesalers and retail middlemen. These intermediaries are used by the producer for promoting the products and services. This route of marketing is utilized by the producer for saturating the market with the goods and the services (Mussolo & Luongo, 2017)

Preferred Intensity of Distribution

The intensity of the distribution has been referred as the availability of the products and services in the market. This factor has a great impact on the demand for the products of Amcor Limited as the purchase of the products depends on the availability. This variable can be stimulated from the sub-variables such as the size of the target market, prices of the products promotion and also the production capacity of the firm.  

Place of Retailers

Retailers are one of the significant components of the distribution process as they are the intermediaries. The retailers are considered as the linking chain of the process as they aid the wholesalers to make the provision of the products and services at right place and on right time. Retailers comprise of an integral part of the distribution channels as they are the middle step of the distribution process.

The term integrated marketing communication has been referred to the approach or the application which can be adopted by the business entity for attaining the objectives of a marketing event.

Pricing Strategy

IMC is a very important concept when it comes to putting out the communication to its probable consumers. Hence, it is really important to have well thought of and designed strategies for IMC, the strategy should be developed in such a fashion that it resonates with the target audience (TG) (Belch, Belch, Kerr & Powell, 2014) 

 

Here in the Promotional mix diagram, People can also be focused on, People form an important parameter while evaluations company’s promotional mix. Physical evidence, the company is not yet focusing on its Physical evidence, but research suggests that for a group of customers/industries it is an important aspect for their purchasing decision (Andrews & Shimp, 2017)

People, as mentioned are concerned with the 7P’s of marketing and are an extremely important factor for the entire product strategy and its promotional mix. Focusing on people will yield the desired output for the company and hence improve its productivity. People include that management, its employees, managers & customer service team. Hence important care has to be focused on this segment. Training, mentoring, coaching and motivation are some of the key facets for the People (Scott, Martin & Schouten, 2014)

Training

It can be understood as the activity which leads to development of the employee in the areas where he is lagging. Training is extremely essential for all the employees of the company. Amcor is in business of packaging and has its office in more than 40 countries, with an employee base in touch and such great cultural diversity, the need for training becomes extremely essential. It would help them in expanding their horizon and be ready for the market. Customer service can also be enhanced by providing the right training, hence, deciding on the areas of training (Frost, 2014)

Recruitment

This is the first step of People process. The workforce has to be handpicked for maximum utilization of their productivity and skills. To improve the efficiency of the recruitment process, the HR manager has to individually speak with the managers and ask for specific skill set required in an individual. An appropriate Job description would yield a right employee for the company (Breaugh, 2017)

Occupational Health & Safety Laws

A company which is in the business of packaging has to take care of various occupations and safety laws, as they are dealing with heavy inventory used for packaging and the government authority are really frisky if any laws is flouted just to reduce the cost towards safety and occupational health. Amcor has a specialist team who inspects the processes and take care of the health and safety law with periodic inspection (Reese, 2015)

Distribution Channels

This can be understood as systematic identification measurement and valuation of the inputs and outcome of alternative activities. It also requires subsequent comparative analysis of these. The purpose of economic evaluation is to identify the best course of action based on the evidence available at hand (Tukker, 2015)

The buyers decision Process for new product: The chart explained below presents the cycle of early innovation adopters which will be slow at the beginning, which will pick up, reach its peak and then drop to slow again. 

 

Explanation

Market Share Calculation:

Looking at Australian market, the population of the continent is 24.13 Million which is growing at a rate of 1.32 % per year. Based on the fact lets evaluate the market size

The strategy is to target early adopters and innovators for the first 5 Years is as follows

	Years
	1	2	3	4	5
Population (million)	24.00	24.32	24.64	24.96	25.29
% Penetration	3.84	3.89	3.94	3.99	4.05
Year wise penetration of market share (%)	10%	15%	20%	25%	30%
Year wise penetration of market share (million)	0.38	0.58	0.79	1.00	1.21
Pricing	$ 10.00	$ 15.00	$ 20.00	$ 20.00	$ 20.00
Effective market share	3.84	8.75	15.77	19.97	24.28

Calculation: Considering Penetration to innovators and laggards which is (2.5 + 13.5= 16% OF Total population)

Considering a penetration of 10% for first year and 15, 20, 25 & 30 for consecutive year.

The pricing is kept at $10 for the first year, penetrative pricing strategy, and then gradually increasing till $20.

Price Reducing Strategy

Costs	Reduction/Monitoring Process
– Production	Buying the equipment rather than paying a hefty lease fees
– Distribution	Reduce the margin after 2nd year for the distributers
– Labor	Hire in shifts, and contractual labor
– Material	Maximum utilization, use the end product or the scrap for further use
– Marketing	Move to online promotion and less of paper advertising
Supply chain	Reduce excessive retail chains
Model	Get into an marketplace model

Activity	Responsible	Jan	Feb	Mar	Apr	May	Jun
Market research
Political, Economic condition, Social and culture, Technological factors, Legal factors, Environment (PESTLE)	Marketing team	The PESTLE analysis will be done in the first three month and so will the market survey and analysis
Market Survey
Research Analysis
Production Plan
Sourcing local manufacturers	Production team
Sourcing local suppliers			This will be done in the last four months of the timeline, after understanding the environment and the market analysis
Production sampling
Analyzing the sample result	Production and Marketing team					Last 2 months, after more refine data
Marketing Plan
Market Analysis	Marketing team	First more month will give a detail insight of the market and competitor
Competitors Analysis
Distribution research
Sourcing effective local distributors	Marketing team		Starting from 2nd month onwards till the last month
Recruitment
Local employment	HR team				Last three months
Training
Training program	HR team

Market Research

PESTLE analysis will help in understanding the external market scenario for the company, as to how Political, economic, environmental , social etc. forces will favor the company or how the effects of these forces can be masked. Market survey and research will help in understanding the marketing feedback for the company and the surveys will later be analyzed for coming up with the pricing, marketing & promotional strategy. Will also help in tweaking some features of product if need be.

Production Plan

Production plan will help us in identifying local suppliers during the time frame, in terms of the raw material quality they have, the price to be charged for the raw material, will also help us in identifying the potential partners for the supplies in the future, who can be trusted for any emergency requirement fulfillment

Marketing Plan

Here the focus will understand the market with reference to its competitors and also other forces affecting the product. It will also be understood what is the present scenario related to the product and what all industry are already being catered to, analysis of the same will help in developing a marketing plan for the company.

Distribution Research

As explained in the earlier part, the business models is such that it requires a lot of distributers to supply the product, as the market is huge, the usage of efficient distributer model becomes necessary.

SWOT Analysis

Recruitment & Training

This will help in sourcing local talent from the country itself rather than eyeing on employees from outside the continent the training needs will be identified based on the skill set required for the task at hand and inadequacy of skill in the market.

Activity	Responsible	Jul	Aug	Sep	Oct	Nov	Dec
Promotion Plan
Event sponsor planning	Marketing			After 2 months of the product launch
Social media creating	In perpetuity to promote
Sale promotion planning	A consistent exercise
Budgeting
Costs Analysis		Throughout the time period
Pricing
Estimating Price		First month itself
Product Launch
Launching the Product into the market	Marketing , Product & PR team	The first month
Feedback
Collecting feedback of customer satisfaction and sale	Right after the product launch
Annual report
Providing relevant information for Annual report							Last of financial year

Communication Plan

The plan as mentioned is spread out in the Promotional plan, budgeting, pricing, product launch, feedback & annual report sections. Let’s understand the role and responsibility of each section independently (Lando, 2014)

Promotional Plan

It is categorized in three important sections, social media, sales planning & promotion and event sponsorship. The result of these activities is to build a name for the company in market and get the potential partner for event to be conducted for the promotion of the brand. This will help in creating in creating interest in the minds of the customer and penetrate among its target audience.

Budgeting

This will take care of the costs involved in the communication plan strategy. The different cost heads pertaining to different communication strategy, as in , print promotion, website creation, social media marketing, etc. will be divided to give an optimum budget to the plan, and also it will be seen as to the budget is not crossed over.

Pricing

Depending on the costs of all the activities, the pricing for the product will be finalized. The same pricing will be provided to its distributers keeping in mind some discount as an early bird offer or different distributer techniques.

Product launch & Feedback

At the end of all the promotional activity, the product will be launched in the market and the response of customers will be monitored over a period of time. This will help in identifying the gaps in product strategy, specification, pricing etc. The customer feedback will be collected by the CRM team who will collect the detailed feedback and then present it to the product team for further tweaking in product strategy (Fu & Jones, 2015)

Activity	Measurement	Responsible	Activity completion date(s)	Memo
Market Research (PESTLE)	Determine macro-environmental opportunities that will benefit the company	Marketing Team	One year before release date	Opportunities must be consistent with company objectives
Market survey	Determines viability of the product and market potential	Marketing team	6 months before release date	It has to be studied keeping in mind the positioning of the product
Market Research and survey Analysis	Determines the findings of the surveys	Marketing team	6 months before the release date	Analysis has to be fair and not controlled
Sourcing local manufacturers	Determines the availability in the local market	Materials team	3 months before the release date	Helps in finding the availability in local market
Sourcing local suppliers	Estimating the suppliers behavior	Materials team	3 months before the release date	Understanding supplier behavior
Market Analysis	Determines potential of the market	Marketing team	6 months before the release date	Attractiveness of the market
Sourcing effective local distributors	Helps in building the chain	Operations	3 months before the release date	Picking better partners
Local employee recruitment	Procuring local talent	HR	2 month before the release date	Best talent picking
Training	Skill development of employees	HR	1 month after the release date	Better productivity
Marketing plan for Event sponsor, Social media and Sale promotion	Helps in brand building	PR & Marketing	2 months before release date	Brand creation
Budgeting	Understanding the budget at hand	Finance department	Continuous exercise	Keeping a tab on the expenses
Pricing	All costs involved and profit margin	Joint exercise of all department	3 months before	Helps to understand the market sentiments
Product launch	Market openness	Product team	Release date	Launching of product
Collecting Feedback	Understanding the views of the customers	Marketing team CRM	After release date, in perpetuity	Understand buyer feedback and improve on the product
Annual Report	To know the real financial number	Finance department	Every 12 years	Assess the report card of company, its finances, debt, sales and holdings

Activity	Possible Issue	Prospect of occurrence	Modification
Sourcing local manufacturers	Raw material shortage	High	Get more vendors on board
Sourcing local suppliers	Forming a cartel	Medium	Build relationships with them
Production sampling	Ineffective check ups	Medium	Better inspection
Local employee recruitment	Shortage of manpower, high wages required	Medium	Keep a resource pool ready
Training	Not efficient trainers	Low	Focus on video coaching methods
Budgeting	Could go beyond the fixed budget	High	Form a committee to inspect at every step
Product launch	The demand is low	Medium	Better research and market knowledge
Exit Strategy	Move the entire base and inventory to good performing market	Low	Understanding of the environmental forces and possible risk factors involved.

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