Highland Galvanizers and the Highland colour coaters are Highland Galvanizers that Highland Galvanizers is engaged in providing the services of coatings to engineering and manufacturing companies across Scotland (DPA, 2006). The core feature is to promote the protective and the decorative coatings on aluminium and steel for many sectors. Highland Galvanizers also offers the galvanising and organic coatings which are covered by the powdered material.
UK Paints & Coatings market recently witnessed total sales amounting to USD3.80 billion during the year 2017, which is expected to escalate at a significant rate over the coming years (Highland, 2018). The spurring demand from the business of the construction, automotive, marine and aerospace and other advanced manufacturing sectors is primarily driving the UK Paints and Coatings market.
Highland Galvanizers was established in the year 1978 and the in the year 2002 it also captured the (Cumberland Highland, 2018). The team includes 120 employees and the average coating per week is in the figures of the 300-400 tonnes. There is also a special coating namely “Colourgalv” which is a combination of hot dip galvanising and coloured coatings and distributing a roundabout 250 colours on objects.
The concept of the microenvironment is a crucial component, which provides the modelling exposure and the estimation of assessment of the risk. Microenvironment has been typically defined by a number of factors which are as competitors, customers, suppliers, and marketing intermediaries. The microenvironment affects Highland Galvanizers in different ways. It can depend upon in terms of size, capability, capacity and the strategies are different. For example, the large companies are getting concessions however the same is not available to the smaller organisations. Another example could be of the competitors. Generally, the competitors are not worried about the small companies as their targets are the large firms and organisations (Mcculloach, 2017).
Taking about the competitors the competition in Scotland is highly fluctuating in terms of the companies involved in the process of the galvanising. Though the galvanisation can be completed through different processes, however, hot galvanisation and the electro galvanisation is the main activity of the highland galvanisers. Along with the facility, Highland Galvanizers also provides the durability, protection, petrochemical and the construction products (Transparency Market Research, 2017). Competitive rivalry in Scotland, as well as the Cumberland, is on edge and the local suppliers are fighting for building their demand map. The only factor that separates them is the price and the Highland Galvanizers can be affected by the costs set by the competitors.
The Highland galvanizer is running consistently among the other competitors who are technically advanced such as Premier Galvanizing Company. The customers are base for any company and the key to success is through the satisfaction of the customers. Both the Hull and the Corby galvanising facilities have been designed in order to keep the preferences of the customers on the top priority (Premier Galvanizing, 2018). The highland Galvanisers follows the policy of visiting the customers to build a strong relationship among the customers.
The macro environment, on the other hand, is a diverse umbrella which is concerned more with the external environment and the factors which are inclusive of the macro environment are the economic, social, legal technical and environmental.
The economic factors include the tariffs, the rate structure, the market forces and other similar elements which do affect the business and can hamper the performance. The Scottish economy is facing a negative response with a warning from all business tycoons in the country. It mainly because of the government promise of economic development in the rest of the country, instead the government is imposing a high tax on the businessman which are hurting the coating business houses. Such decisions of imposing huge taxes lead to a negative growth of -17.8 points. There is has been a substantial fall of 13.5% in the revenue of the coating business in the last quarter (Business Wire, 2017). Such an impact also affected Highland Galvanizers Ltd, where its revenue falls at a substantial level where its business majorly affected by the Brexit due to the major changes in the policies of Britain. The painting industries are driven by certain policies and regulations formed by the Government of Scotland which is also one of the reasons that create an impact on the internal environment of the Highland galvanisers.
The social factors include the age, culture, demographic features which also impact the company in many ways. Scotland is a socially rich country. Companies like Highland Galvanizers are enjoying the social environment of the country as the people are having high standards of living (Scott, 2018). The government of Scotland is also providing services such as National Health Services to its people which help in reducing the cost of insurance to Highland Galvanizers. It is also to be noticed that Scotland is a very densely populated area which leads to the migration of the people very easily. Hence Highland Galvanizers can deliver its product in any part of the state or country very easily.
Technological factors are the variables that are utilised to evaluate with respect to the technological capabilities. The business operations can be affected more with the use of utmost technology. Technology determines the growth and revenue of any business (Baker, 2014). As the Highland Galvanizers Ltd has the updated technology with them as they have expertise in repair procedures, design for galvanizing, surface finish etc. Such operations are done with the latest technology which helps them in reducing the cost of production in their every activity. Such operations are performed by the duly trained officials which helps them in maintaining the production cost, as a result, Highland Galvanizers has the capacity to achieve its targets easily. But the technological factors of Highland Galvanizers is highly depended upon the political factors of the country, the government of the country should be helping Highland Galvanizers in availing latest technology in form of subsidies or by reducing the rate of taxes so that Highland Galvanizers can import any latest instrument from any part of the world.
The factors that can affect Highland Galvanizers are majorly the competitors and the technological upshift. Rest of the factors also affect Highland Galvanizers but at the lower level as compared to these factors (Policy, 2016).
The environmental factors also affect the performance of the Highland Galvanisers and the company shall also have a proper outlook on the strengths and the weakness of the opportunities that are available to enhance the company. The colour coating and the galvanising does not work properly in the wet conditions and therefore the company has to change according to the environment.
Market segments Highland Galvanizers should consider for expansion and why
Market segmentation can be referred to the process of identifying the different group of users within the market and with the use of the separate products and the marketing, programmes can possibly be targeted. The idea of dividing the market into various segments with the different products is termed as the market segmentation. The current market structure of the Highland Galvanisers is an oligopoly.
Market segmentation is the process of dividing the business market or the broad customers, which normally is focused on the existing and the potential customers and divided on the basis of the characteristics such as shared needs, similar interests, same kind of lifestyles and demographic interests(Church & Rotolo, 2013).
The market segments can be segregated into three types.
Typically the characteristics are high restrictions to the entry because of the huge capital outlay (Wedel & Kamakura, 2012). The hot galvanizing technique and the colourful are the major techniques and the England market is suitable for Highland Galvanizers. Highland Galvanizers can expand itself in the area of the galvanized steel wire. Apart from the aluminium coating, Highland Galvanizers can invest in anti-corrosion galvanising paint which is used for all types of the metals and provides protection against the corrosion (Church & Rotolo, 2013). The hot dip galvanising does the same job but in England since the price of the paint is low inclusive of vat as compared to the prices in Scotland. It ranges from pound 37.50 to pound 398.
The next market segment Highland Galvanizers can enter into the new markets where the alternative against the hot-dip galvanising is available which is ZAM coating or the GALFAN – ALUZINC. They are cheap in term of cost, easily available and they provide more protection and the colour adhesion which gives an edge to the coating (Wedge, 2017). Moreover, the demand for these products is higher than the hot dip in England as it is manufactured in the country itself so transportation becomes easy and handy.
The other segments that the Highland Galvanizers can think to cater are shot blasting and powder coating. Galvanising is particularly weak in the wet conditions and mostly in the case of the accelerated weathering. The zinc relies on the carbonates and this helps in lowering down the corrosion (Doyle & Bridgewater, 2012). In wet conditions the hydroxides of the zinc are soluble therefore, companies prefer long-lasting substitute and hence the Highland Galvanisers can undoubtedly invest in the England and can create a market position if they tend to perform better.
Talking about the industry segmentation the highland can choose to cater to a lot of companies such as the power, construction business, and bridge makers. The construction business in England can be observed in the chart below (European Coatings. (2018). Development in the construction industry is anticipated to offer opportunities to the hot-dip galvanization market, as hot-dip galvanized products are used as bars, rods, and sheets in infrastructure development. The impact of the Brexit on the construction business is second highest after the electricity. The sectors have a very high proportion of the foreign investors serving the domestic market (Dunning, 2013). Highland Galvanizers can increase the revenue via investment in these areas as the rise in demand for hot-dip galvanization considering its low initial cost; easy availability; and high durability, sustainability, and longevity is the primary factor driving the hot-dip galvanization market.
The distribution channels are also one of the categories in terms of market segmentation. Generally, the distribution of the products through the different medium of channels will cater to the needs of the variety of the customers. The mediums can be direct, indirect, personal selling, through the distributor. The highland galvanisers run weekly along the Scottish borders. For the areas belonging to a far zone the facility of the transport to pick up and return facility is available. The highland galvanizers can also act as an agent between the suppliers and direct users (West, Ford & Ibrahim, 2015). The completed materials can be collected and used the self-distribution channels Highland Galvanizers can deliver the services in England. This will save the cost of producing the dip and moreover the change in segmentation will create competition.
The key account management strategy is a strategy which is acquired or infused in the firm by the companies majorly to identify the key “accounts” that are the major customers and form the substantial part of Highland Galvanizers’ sales and business. The key account management provides the values added services to the key account portfolio Staples, John, (2016). The main aim is to build the relations with the crucial customers. The key accounts are basically those
It is basically a strategic account management where companies plan to manage and grow its most important customers. It is basically a systematic approach of the companies towards it clients or customers to maximise mutually beneficial goals. In order for a better management of the strategy, the company needs to identify its key accounts that have a better financial responsibility in the company. The key accounts are those 20 to 30 % of the accounts which provides the 70 to 80% of the business to the company. Highland Galvanizers Ltd should not aim at selling its products rather than it focuses on selling solutions by listening to the problems of the customers. The company should partner with customers by having back to back meetings regarding their problems and helping them in various parts of their work. The company should not only focus upon the increase in the revenue but it should also focus upon the increasing partnership among them so that they can also have the possibility of working together in future also (CEB, 2017). It is also important to maintain the mutual growth and accountability between them, as a result, the client would be starting to have trust and belief in the company. A detailed explanation regarding the benefits of their products and problems needs to be addressed which helps them in initiating any investment easily. A personal recommendation to the customers are provided for their benefit so that the customer feels that the company is very customer centric as a result, the company may attract many other clients who helps in the better growth of the company.
The relationship marketing plan is the plan which is devised to foster the customer loyalty by having the regular interaction with the customers and having a long-term engagement with them. The main purpose of the formulation of the relationship marketing plan is to be in the shoes of the customers and cater to their needs. The plan is determined in the form of a table.
There are several steps of the marketing plan such as.
References:
Baker, M. J. (2014) Marketing strategy and management. Palgrave Macmillan.
Business Wire, (2017) Research and Markets: 2010 Analysis – Galvanizing – a Comprehensive Profile of 34 Companies Operating in the UK Available from https://www.businesswire.com/news/home/20100217005757/en/Research-Markets-2010-Analysis—Galvanizing– [Accessed on 11th July 2018]
CEB, (2017) Key Account Success, Available from https://www.cebglobal.com/blogs/the-most-important-factor-for-key-account- success/ [Accessed on 11th July 2018]
Church, A. H., & Rotolo, C. T. (2013) How are top companies assessing their high-potentials and senior executives? A talent management benchmark study. Consulting Psychology Journal: Practice and Research, 65(3), 199.
Doyle, P., & Bridgewater, S. (2012) Innovation in marketing. Routledge.
DPA, (2006) Its steel – galvanisers cut energy bill by thousands, Available from https://www.dpaonthenet.net/article/6154/It-s-a-steel–galvanisers-cut-energy-bill-by-thousands.aspx [Accessed on 11th July 2018]
Dunning, J. H. (2013) Multinationals, Technology & Competitiveness (RLE International Business) (Vol. 13). Routledge.
European Coatings. (2018) How does the paints and coatings industry affect by the political crisis? [Online] Available from https://www.european-coatings.com/Publications/Blog/How-is-the-paints-and-coatings-industry-affected-by-political-crises [Accessed on 11 July 2018]
Highland, (2018) Our History, Available from https://www.higalv.co.uk/about/our-history/ [Accessed on 11th July 2018]
Highland, (2018) What we do? Available from https://www.higalv.co.uk/about/what-we-do/ [Accessed on 11th July 2018]
Mcculloach, S., (2017) Douglas Ashmead profile – Our focus is to get engineers and architects to look at galvanising, Available from https://www.insider.co.uk/special-reports/douglas-ashmead-profile-focus-engineers-9877105[Accessed on 11th July 2018]
McDonald, M., & Wilson, H. (2016) Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
Policy, P., (2016). What is the pestle analysis? New York: Springer.
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