Marketing objectives
Although Johnnie Walker is a global brand, based on the identified problems in assignment 1, the company needs to implement strategic approaches to building more on brand competitiveness in the global market hence increasing sales. These objectives are achievable through building on the current strategies embraced by the organization. The organization can achieve this through building on the product attributes which include; deep-complex flavor, age and time, power and refinement, and Malt Whiskey among others. Furthermore, the characteristics of the brand such as heritage, passion and luxury, international, Diageo are some of the features of the brand that can be used by the company to venture more in the global market. This could be also used in building on the brand competitiveness in the global market (Nick, 2013). These objectives should be targeted in the Urban Men aged 25-35, younger female drinkers having variants push, already Whiskey Drinkers. Introducing new consumers to Whiskey (through innovative marketing strategies), and targeting consumers who are not solely driven by wealth but via wealth of experience and enjoyment of life is also another competitive approach(Nick, 2013). Through incorporating some of the strategies recommended in the preceding analysis, Johnnie Walker can be able to achieve the set objectives and create a more competitive brand in the global market.
High-level strategic alternatives
Alternative 1# the Cost leadership strategy falls under the generative strategy used as a competitive strategies falling under the product-market strategy. The cost leadership strategy can enable the company gaining a competitive advantage. The alternative avails the developments of a competitive edge which will enable Johnnie Walker develop sales strategies that will take away from the competitors. Through integrating the proffered strategies, the company can be able opt for two alternatives towards creating a competitive edge through(Kotler, 2004);
- Increase on profits via reduction on costs, through setting industry average prices
- Increase on market share via charging lower price while also creating a reasonable profit on every sale based on the reduced costs
- The proffered alternative can enable Johnnie Walker create a competitive edge into the market through an effective cost leadership on the international brands. The notion behind the strategy is reducing or minimizing cost to the organization through the delivery of products and services hence being the leading organization in the industry or the market. Accessing to the capital essential towards investing in technology that reduces on the costs
- Increasing efficiency on the logistics
- Creating a low-cost base on facilities, labor plus other facilities hence acting as a way of effectively sustaining the cutting costs process below the prices set by other competitors
Alternative 2# The Differentiation Strategy entails the process of making that Johnnie Walkers products or brand are different from some of the alternative choices offered by some of the competitors in the market. The strategy incorporates the competitive strategies and the product-market strategy based on the goals likely achievable by the organization in the market. The implementation of the strategy can enable the company creates a competitive edge in the market through different ways. These approaches include;
- Conducting a detailed research, innovation and development on the market
- Increasing the ability to deliver high-quality services and products on the global market
- Developing and implementing effective sales and marketing strategies to be able to understand the market benefits availed through the implemented differentiated products by the company
Johnnie Walker is a large organization that should use the strategy by focusing to be able to stay alive within their new product development processes. Prior to such developments, the company is likely to face risks emerging from different fronts on the competitors likely to pursue Focus differentiation strategies in differing market segments.
Alternative 3#, The Focus Strategy, the analogy attached to the strategy is based on the ability of the organization to concentrate on a given market niche. Plus, through an effective understanding on the respective dynamics of the market and also the unique wants or needs of the customers within the identified market(Mitra,2002). The notion attached to the proffered approach depicts that Johnnie Walker needs to concentrate on a given niche market such as young female drinkers that have variants push. However, the alternative needs the integration of other competitive strategies towards creating a competitive edge into the global market. The effectiveness of the strategy is based on the ability to present a unique addition on the extra serving on a given niche market. The presumption on the strategy enables the organization focus on the market segment based on the fact that the organization needs to create a competitive edge into the market by focusing on a niche market (Seim, 2002).
The following approach provides an evaluation of the recommended three alternatives that Johnnie Walker can implement to create a competitive edge into the global market. The rationale behind the evaluation and the respective implication below, is based on the effectiveness and efficient of the alternative towards achieving the set objectives.
Figure: Evolution table based on the selection
Marketing mix strategies
Based on the availed analysis above and the selection of the respective strategies, with cost leadership strategy being the highly recommended strategy, the following analysis depicts how the strategy can be implemented; through aligning the respective features within the marketing mix strategies(LaValle, 2010). Based on the respective developments that need to be executed in relation to the respective elements of marketing mix, some of the elements such as product may not be altered with other elements changed to align with the set objectives within the market. Furthermore, the respective undertakings availed below in relation to each of the affected elements.
Price
Based on the selected strategy, price as an element of the marketing mix is one of the major aspects that are likely to be affected. The analogy attached to the proffered aspects depicts the need to alter the current pricing range of $25-$225 (750ml); to a lower range to meet the set objectives of the strategy while facilitating the achievement of the set objectives (Nick, 2013). The company needs to alter the range of whiskeys to dominate the market hence aligning with the best selling Red Label or to highly expensive Blue Label.
Product
The company needs to maintain the highly competitive brands in relation to aligning the set specifications on the strategy. The notion attached to the proffered aspect depicts how the organization has to create a competitive edge in the global market through price leadership approach. The company should ensure that the products or brand aligns with the set specifications in relation to the strategy. The brands such as the Red Label and the Blue Label re highly competitive hence the need for a company to adjust on the price hence creating a competitive edge.
Promotion
This entails to the strategic approaches that the company embraces towards communicating with their customers or other stakeholders about their products and services. They include approaches such as; sales promotion or public relations, and advertising among others. The effectiveness of the promotion strategy largely defines the effectiveness of the organization to communicate the desired message to the consumers. The promotion strategies should be aligned with the implemented cost leadership strategy to facilitate the achievement of the set objectives within the targeted markets. The
Distribution
The company needs to revaluate their distribution strategy to lower or minimize unnecessary costs towards creating a competitive edge. The company by 1920 termed as the first global brand that cut across over 120 countries. The brands such as the Red Label among others can be found in over 200 countries with company having the world’s best-selling whiskey. The company should align the recommended strategy while it ventures in the pushing into the emerging such as Asia and Latin America among other markets.
Conclusion
Based on the proffered analysis above, Johnnie Walker can implement the recommended strategy to achieves a competitive edge. Implementing the cost leadership strategy and aligning the respective entities with the differentiation strategy is likely to enable the company achieve the set objectives of creating a competitive global brand in the market. The recommended strategies align with a set mission and vision of the company in relation to satisfying the set consumer needs. The company can create a competitive global brand and increase on sales as proffered above through the implementation and the evaluation of the recommended or alternatives above. The proffered strategies provide the organization with an approach towards creating a competitive edge.
References
- Kotler, P., Armstrong, G. (2004). Principles of Marketing. New Jersey: Pearson Education
- Fred Balboni, (2011), Business Analytics and Optimization, IBM Global Business Services
- Toivanen, Otto and Michael Waterson, (2004), “Market Structure and Entry: Where's the Beef?” RAND Journal of Economics, forthcoming
- Hutt, M.D., Speh, T.W. (2004) Business Marketing Management. Hagerstown, MD: South-Western
- Kotler, P., Armstrong, G. (2004). Principles of Marketing. New Jersey: Pearson Education
- Fred Balboni, (2011), Business Analytics and Optimization, IBM Global Business Services
- LaValle, S., Michael, H., Eric, L., Rebecca, S., and Nina, K., (2010) “Analytics: The new path to value: How the smartest organizations are embedding analytics to transform insights into action.” IBM Institute for Business Value in collaboration with MIT Sloan Management Review
- Seim, K., (2002), An Empirical Model of Firm Entry with Endogenous Product-Type Choices, mimeo, GSB Stanford.
- Lafontaine, Francine and Kathryn L. Shaw. (2005). “Targeting Managerial Control: Evidencefrom Franchising,” forthcoming, RAND Journal of Economics.
- Seim, K., (2002), An Empirical Model of Firm Entry with Endogenous Product-Type Choices, mimeo, GSB Stanford.
- Toivanen, Otto and Michael W, (2004), “Market Structure and Entry: Where's the Beef?”RAND Journal of Economics, forthcoming
- Mitra, Debanjan and Peter N. Golder. (2002). “Whose culture matters? Near-market knowledgeand its impact on foreign market entry timing.” Journal of Marketing Research
- Nick L. (2013) Johnnie Walker launches new global 'Keep Walking' integrated campaign spearheaded by 'From the Future' TV spot via BBH London
