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Mid Term ASSIGNMENT ON Strategic MGMT
Mid Term ASSIGNMENT ON Strategic MGMT
Our big thanks to Miss Dr.Nadia, for giving us the opportunity to make this report.
Without his guidance and support, this report could have never reached completion.
She helped us gain command over the concepts of Strategic Management, helping us
to apply that knowledge in the making of this report.
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DEDICATED To
First of all I am really thankful to Almighty ALLAH who gave us the strength to work on
the project and complete it in time without any hurdles. I would also like to thank our
Instructor Dr.Nadiawho gave me the confidence and guidance at every step of my
assignment. This project helped me to know more about the Retail& Trade business
strategies.
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TABLE OF CONTENTS
Topics Page
Acknowledgement 2
Dedication 3
Executive Summary 5
Introduction 6
Situation Analysis 7
SWOT Analysis 8
Growth Strategy 14
Replacement Strategy 15
Trade Strategies 16
Conclusion 19
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EXECUTIVE SUMMARY
Strategic is what keeps great organizations ahead of their competitors. If the company,
which has a competitive advantage, performs financially much better than other
companies in the industry or better than the industry average. Some companies may
achieve it without thorough strategic plan but for the most players out there it is vital to
plan strategically, i.e. analyze, create, implement and monitor, and do this continuously.
It is not guaranteed that companies will ever achieve competitive advantage conducting
strategic planning but it is an essential process if the company wants sustain itself in the
Market.
The organization that we have selected is Master Group of Companiesand their product
Master MoltyFoam. It is a National brand having its branches and offices in all cities of
the Pakistan. Master Molty Foam strategic operations gave tough competition to its
rivals to other organizations as it sales, marketing and brand image.
This report points out the factors why Moltyfoam strategies is effective and how they
have given a tough competition to its opponents.
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INTRODUCTION
In order to offer quality mattresses that boost sleep quality and set the new standards in
the industry, the company Strom was founded by the Johnt and Nick Niarcho brothers in
1967. It is considered the number 1 firm in the mattress industry, with a market
presence spanning over 4 decades.
For over 40 years, H Media Strom mattresses is a market leader, giving consumers a
special quality of sleep. Consumers trust efficiency, unparalleled price and products of
hygiene. He has been able to make the name of his profession synonymous with good
sleep both in Greece and abroad. The company has an impressive growth rate and
increased to over 329 percent between 2000 and 2010. Media Strom won a major
international recognition in 2006 and placed 266th among the 500 fastest-growing
European companies and has a prominent place on the Statbank's Diamonds of Greek
Trade and Industry list in the last few years.
The estimate for New Factory investment amount led to over € 25 million and is a
European and international standard model. This is the largest and most important
project in the quilting industry in Greece to date. The new factory now houses the most
advanced and fully automated production lines, sleep products and a well-appointed
research and development facility to test the strength of anatomical and orthopedic
layers.
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SITUATION ANALYSIS
Marketing is a social and governance mechanism through which individuals and groups
accomplish what they want and need by creating, selling and exchanging value-added
goods with others. The business market is made up of all organizations that procure
goods and services for the production, selling, rent or supply of other products or
services (Kotler et al, 2012)
"Fresh" is one of marketing's strongest words. "Fresh" calls on the assumption that
something goes ahead, is new, modern or enhanced. New products such as a magnet
are attracted to people. The best way to get attention and to be invaluable publicity in a
company is to constantly introduce new products. "Fresh" finds a company complex
and forward thinking
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MARKET TRENDS
SWOT ANALYSIS
Strengths
Weaknesses
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3. Lack of synergies an outsourcing services.
Opportunities
Threats
1. Economic downturn
2. Demographics
3. Highly competitive market
4. Low income taxpayers
5. Premium cosmetics have maintained their global dominance
Internal Environment
Industry rivalry:
1. Customers have low switching costs between companies and products
2. Industry companies is grow very fast despite the crisis
3. Exit barriers are high and rivals stay and compete
4. Fixed cost are high resulting huge production and reduction in prices
5. Media Strom is a market leader with the highest market revenues and then
there is equal competition of smaller firms.
Byers - Consumer power:
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Supplier power:
THREAT OF SUBSTITUTES:
1. Small private business owners who offer competitive prices and customized
solution.
2. Future consumer trends and scientific research upon sleeping habits, the
dropping importance of sleep. Working life more important.
MARKETING OPPORTUNITIES
Niche/mainstream positioning strategy:
Consumers who are worried about their sleep disorders would be the subject of niche
Positioning. The Company’s positioning the "smart mattress" as a niche product would
have many positive benefits. This would be through the charging of premium prices for
the segment of customers worried about calming sleep. In the meantime, Media Strom
will separate the new mattress from other mattress, because it already has
technological superiority over the others. I would decrease costs if they did not succeed
and then it helps us to minimize profits.
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Mission marketing strategy:
Media electricity project strategy in the sleep enhancing industry will be successful and
the new mattress will hopefully not fail. They aim at gaining competitive advantage over
other firms while generating profit and meeting customers ' requirements and needs.
The mattress is aimed at adding value or benefit to the lives of customers.
Product levels:
Media Strom works its manufacturing businesses through franchise sales in the area of
retail mattress production. Sleeping peripherals and especially digital high-tech sleeping
mattress will provide the future expansion of product lines.
R & D in Mattresses:
Our principal problem is that the product can partly work and serve its own customers.
The use of the product and service is linked by a third-party provider due to its
technological aspect. If the ultimate customer does not have a smartphone, the product
liability is at stake. In the field of marketing and publicity a relationship should therefore
be formed with another business group.
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Pakistani Company Introduction
SWOT ANALYSIS
Strengths
1. Market Leader
2. Pioneer
3. Generic Name
4. Strong Dealer Ship Network
5. Financially Strong Dealer
6. High Number of Display
7. Good Market Reputation
8. Captured best located prints in terms of Advertising.
9. Developed Dealer ships
10. High Quality Standards
11. Well Trained & Experienced Staff.
12. Advance payments minimize bad-debts
13. Mostly dealerships are on best location of the market.
14. Third generation of Dealers.
Weaknesses
2. Un Consistently in Quality.
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4. Un trained dealers and sales man.
Opportunities
Threats
3. Non-Filers Dealers
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There are few strategies which company makes to increase their
volume
Growth Strategy:
A growth strategy is a plan of action designed to help businesses capture a larger share
of the market, even if it comes at the expense of short-term profit. The type of growth
strategy a company implements will depend heavily on factors such as their finances,
target market, and the industry they occupy.
Your business will never increase in value without growth. But business growth does not
happen accidentally; it's the result of strategic initiatives.
They find out some good places in All Major cities of the Pakistan and make showrooms
for Display all its products under one roof.
This concept enhance their sales upto 40%.They successfully introduced their upper
qualities nationwide and capture market shares by displaying all their qualities.
Not only mattresses but also their Home Furniture and Health Care Products.
We shared some pictures for understanding the concept of Megastores and how
customers showing interest by getting all products display in a one showroom.
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Replacement Strategy: which Tag line should they use in Advertising:
Through time should they choose to start and end this scheme from 1st Ramzan until
10 days after Eid. We receive about 50 percent more revenue through this substitution
system. They launched TVCs and they also viralized them through print media and
social media in order to gain greater attention from their customers.
They only announce this scheme in Ramzan, as people wait for their old columns to be
replaced and people receive a wage bonus to spend disposable income on Ramzan.
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TRADE MARKET STRATEGY:
Trade marketing, to put it simply, is a B2B marketing strategy aimed at getting
a product onto store shelves. This is done by making other businesses recognize the
value of your product, and convincing them that helping you sell your product will
ultimately help them make money too
They give it on the purchase of High End mattresses. This Scheme definitely creates a
lot of attraction as Furniture Walas show great interest in selling and displaying high end
mattresses and get KFC Coupens.
Molty Inside Strategy:RoohAfza / Fruitly Jar Scheme Starts 10 Days before Ramazan
and Ends 10 Days before EID.
Opening Sofa on Furniture Show Room and also the Dealer ship for Checking Master
Brand Inside. Monthly Checking reading of Molty Foam Usage,Distribute Gift (i-e Dinner
set) to Winner who is consistently using Master Foam .
Advertisement only for Cable Ad.
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Poster / Bunting Distributed & Pasted in Market.
In 2019 we gave different gifts to create Competition Between Furniture Shops
and Cushion Makers
Sofa Opening Activity
“MoltyDikhouInaamPou”
Hence they will make marketing strategies according to their target market
Market positioning includes that how the product is perceived by the customers. It
involves that how the product is positioned in the mind of the consumer. Molty foam
wants its product to pre perceived as a good quality and comfortable product. It wants
the product to be perceived as a lifetime product that is easily available and easy to
dispose of too. Molty will market it in such a way that it is stressed on the notion that this
is a value for money product. It has all the components of what a good quality and
comfortable mattress requires. This means that we will not only enhance our product
quality alone but we will also look into other factors such as after sale service. Relevant
marketing strategies have been developed and are in effect to make sure that
communication is done in such a manner that consumers understand and interpret what
was originally aimed by the marketers.
Master Molty foam given very tough competition to its rivals by doing exhibitions in all
Major Cities like Lahore,Faisalabad,Islamabad,Multan.Bahawalpur,Sukkur,Hyderabad
and Karachi.
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CONCLUSION:
I have researched both companies and I have gained much knowledge about different
aspects, operations,frameworks and marketing strategies in both organization H media
strom and Molty Foam. Both are using different types of marketing strategies according
to their target market.
One of the company is doing its operations in Greek while another is operating in
Pakistan. As a mattress foam company both have same goals to achieve.Boths are
working on providing the comfort through their products to their end users.
We have discuss some core strategies which boosts sales and generate revenue.
The success of strategies and operational activities in any business activity must be
measured. The best way to assess the effectiveness of policy and policies in order to
make necessary changes is to measure performance. Organizations must measure the
performance and report on stated business goals. Only those elements of the market it
manages are calculated and analyzed by the client. Ideally, these measures should also
be benchmarked in order to see how performances are compared to other
measurements.
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