Assignment Sample on Market Report on Deliverynerd in UK
Introduction
This study focuses on a market report on Deliverynerd, which will launch its branch in the United Kingdom. This company plans to provide delivery services of commodities and goods to customers through phone and mobile apps at a fast rate. The customer service of the organization is its top priority. They are trying to bring in technology revolution in the world of logistics. A marking report is a collection of data used for analyzing the performance of particular marketing efforts. It helps to convey to other members of the team the marketing strategy, goals, promotional tactics and relate to expected outcomes (Diwakar, 2019). The company, to create a better environment and increase efficiency, has to incorporate the concept of Corporate Social Responsibility (CSR). Additionally, this report focuses on analysing the external and internal environment for launching the new innovative organization Deliverynerd and gives recommendations on how it can increase customer value and gain competitive advantage.
External market analysis
External market analysis can be defined as an examination of the industry environment, which relate to global, demographic, economic indicators, social, political and technological evaluation. The main purpose of external analysis is to identify the threats and opportunities in a segment or the industry as a whole that in turn would drive volatility, growth and profitability. It plays the role of “early warning system” abiding by which a new company can prove its worth, understand and increase the client value and gain a competitive advantage. External environmental analysis gives a wider look at the business environment, which is affecting the overall business (Ferreras-Méndez et al. 2019). Contradictory to this is internal analyses that focuses on the inside factors that affect the company like the weakness and strengths.
In case of Deliverynerd of the UK, it is going to newly launch its delivery services whose main aim is to be an imperishable part of the delivery and logistic industry. In the beginning, the company team members tried to understand the external environmental factors that need to be changed to create a mark in this industry. This relates to analyzing the surrounding areas and attaining feedback from its customers to understand their needs. After the collection of relevant data, the company then tried to shift its focus to recognize the opportunities for the betterment of the organization keeping in mind the financial perspectives (Asian et al. 2019). Therefore, before making any marketing strategies, it is essential to research and understand the industry and the business environment. Deliverynerd is working hard to set its unique selling proposition (USP), which is important to make a business better than the other competitors are (Mathauer and Hofmann, 2019). It forms a part of the strength for Deliverynerd that makes their brand unique from other companies in the industry. The USP for Deliverynerd of UK is their super fast delivery process within one day, or the delivery cost taken is returned to the customers in the area they are working in. The technology adopted by them for fast delivery is highly eco-friendly, innovative and fast.
Understanding the persona of the buyers is important to stay active in the logistics industry. Analyzing this helps in knowing the ideal customers, challenges they may face and how to make proper decisions to attain sustainability. Deliverynerd understood the fact that customers are the main people who would make the business stand the test of time. Therefore, they have tried to bring in innovations in their customer services and have immense respect for company stakeholders and “fellow employees”. Their communication is open and transparent, that enables them to gain brand loyalty. Understanding and identifying the channels are proper delivery is important for accomplishing sustainable success. Moreover, measuring the threats would help to build improvement strategies for Deliverynerd.
By using the 7Ps of the Marketing Mix, external market analysis can be done for Deliverynerd of the United Kingdom, as well as issues that needs improvement can be indentified that would help the company to gain a competitive advantage and build a long lasting reputation in the United Kingdom. While reviewing competitive strategies, it is important to analyze the market to identify shortcomings and recognise primary issues that influence the marketing of its services, and this process is often referred to as framework for digital marketing mix. This model is crucial as it works together to accomplish the goals of marketing strategies and helps provide distinguish services to customers in the new area (Lahtinen et al. 2020).
Product- Logistic companies have a disadvantage of great competitive rivalry, a high threat from new entries, fair amount of substitution risks, low bargaining power of suppliers of delivery products and high bargaining power of buyers. Deliverynerd is located in the United Kingdom that provides service of delivering small packages at a faster rate than others in the market by the use of bikes. Delivery orders can be placed through mobile apps and android phones. The company has different varieties and divisions of express, freight, forwarding, supply chain and many others to serve customers located at different places in the UK.
Place- Deliverynerd is a new organization that is located in Lagos, and it wants to launch its branch in Westminster, London, in the United Kingdom.
Price- The Company has a pricing strategy for customers that relates to cost plus a fixed margin percentage. To gain a competitive advantage it can planned to keep the price of delivery low.
Physical Evidence- Distinct logos, pamphlets and brochures have been made to deliver uniqueness.
Promotion- The Company uses social media platforms like Twitter and Instagram to increase customer engagement and provide the best customer service. In addition, it uses eminent brand associations to reach out to a large number of people.
People – “New employee orientation programmes, training of code of conduct and policy of information assurance and development” for bringing in multidimensional leadership and communication techniques are believed to be crucial.
Processes- Integrating various processes together would help maximize customer satisfaction, and the flow of information would be proper. Moreover, strategic management of internal as well as external issues is important.
Segmentation of customers
There are four types of segmentation for clients that are based on psychographics, geographical, demographic and behavioural. Some businesses divide their market by lifestyle, age and gender. Sometimes social data is used to segment customers. Market segmentation based on needs is crucial for gaining uniqueness (French, 2017). It can help better comprehend the customers that are ideal for the business and target audience. Recognition of the perfect market for delivery of products or services would help to better satisfy client needs, increase profits, enhance opportunities for growth, retain more clients, obtain share of market segment and enrich marketing communications.
Deliverynerd would try to use geographic segmentation for establishing their new outlet in Westminster, London, UK to attain sustainable success. This type of segmentation focuses on splitting up of market pivoted on location. This is a strategic segmentation practice as it enhances the delivery of services and goods at a fast pace. The use of bikes makes the delivery more rapid. The location of a customer would help better comprehend their needs. Moreover, location specific advisements can be sent out to attract a particular group of customers. Proper research and right market segmentation can give a clear direction (KABASAKAL, 2020). Identification of customer databases and population needs can increase potential of profitability. Establishing a delivery company where transportation and communication are poorly developed may prove beneficial. Westminster in London, UK is technologically very advanced but lacks proper communication and transportation of goods facilities. Deliverynerd by opening an outlet in the town of Westminster can help people of that town to reach out to people more productively.
Internal Analysis (SWOT)
SWOT analysis is a useful framework and a simple way to evaluate an organization’s strengths, weakness and identify the opportunities and threats. It aids to recognize what a company has best, address what is lacking, reduce risks and take chances that would provide benefits and make the company reach heights (Abdel-Basset et al. 2018). It helps look at the internal issues in an organization. For making a good marketing plan and report, it is essential to use a brainstorming process like SWOT to bring out aspects that were there but not noticed before.
Strengths- Deliverynerd is a rapid delivery service and uses technical platforms to satisfy customers by delivering goods and small packages to clients on time. Bikes are used for fast delivery in a place like Westminster, UK where delivery services and communication facilities are scanty. Pickup and delivery happens within few hours of order. It claims to deliver goods within 24-hours. Moreover, the access is easy as the simple use of mobile phone and app can do the work (Alloghani et al. 2017). The company uses neat user interface that is friendly to customers feel easy to use. Even the bikes that deliver the goods move on battery and solar panels instead of diesel and petrol. This strategy makes them different from others. The employees and delivery boys are well trained, and a huge section of area is covered. Moreover, the packing is neat, and hygiene is maintained throughout the delivery process.
Weaknesses- Less brand awareness among people would cost Deliverynerd time to reach out to people in Westminster, London, UK. The delivery charges are little bit more than usual for a new about to be launched company and may not be affordable form all. Moreover, inconsistent measurement metrics of freight is a big issue, and the company should work towards it. Furthermore, poor infrastructure provides a huge challenge for the company. Availability of funds is less.
Opportunities- Use of new and advanced technologies like the Internet of Things (IoT) and interconnected devices to satisfy customer needs on time. Cloud based applications would be the next huge trend in logistics (Salahuddin et al. 2017). Openness to liasoning would enable Deliverynerd to reach great heights.
Threats- Accumulation of low funds and different regulations in different countries may cause hindrance to the delivery services provided by Deliverynerd. Increasing competition and new entrants in the same locality may a big issue that needs attention.
The above-discussed issues should be addressed to gain competitive advantage and spraed brand awareness of Deliverynerd in the UK.
Summary of factors
Increment of financial revenue is one of the key areas of concern for Deliverynerd. As the company wants to establish itself people awareness may be low, which may cause financial issues. Economical factors are a necessary component for any business that wants to establish itself. Recession may cause the business to run low. Moreover, taxes and demand /supply aspects should be focused on to gain sustainable success.
The mindset of the customers in Westminster, UK is a crucial thing of concern. Moreover, awareness among people may be less due to limited usage of social media in Westminster.
The geographical locations for delivery of goods may be too far away from each other which may cause delay at times which may prove to a be a bad point for delivery company (Ulmer and Thomas, 2018).
Sometimes, technological failures can created problems and cause deduction of money two times without the notice of the customers.
The level of education is an important social factor that helps a company spread awareness. If the education level is not optimal then the communication can go wrong, and organizational objectives cannot be reached.
The only good thing about Westminster, UK is that the government and political condition of stable that means that economic balance can be maintained, as there is not too much sudden change of tax and interest rates.
Strength and weakness of internal environment
The analysis of strengths and weaknesses help gain certain advantages and identify certain weaknesses in meeting the requirements of the company’s target market (Evangelista et al. 2017). Strengths refer to core competencies that give the company a beneficial position. Use of High-tech equipments is the basis for strong internal strength. A well-educated and trained workforce is one of the primary components that help gain a competitive advantage. The more the trained an employee is, the more the productivity and efficiency of the company. The management of Deliverynerd is always optimal towards bringing in innovations and creativity. It believes that customers are important and give number 1 priority to enhancement of customer service. The needs of the customers should be prioritized as they help bring in revenue in a business and can make or break the brand image.
The main weakness of Deliverynerd is that it does not have a strong financial base. Tangible assets such as equipments, credits, capital and loyal customers are poor. Establishments of valuable resources are less. Existing channels of distribution and delivery is not well known (Huge-Brodin et al. 2020). Moreover, competition from rivals is huge. New entries are always a constant threat to even established Logistics Company. Furthermore, due to low financial position employees may be underpaid and less motivated to give their best. Direction from the management may be improper. All these factors of the internal environment are preventing Deliverynerd to achieve goals, satisfy customers and create a brand name for themselves.
Opportunities available in the marketplace (unmet customer needs)
There are various opportunities available for Deliverynerd to flourish and gain competitive advantage. The customer segmentation is geographical which is customer location based and gives them advantage over other competitors. The company is trying to use cloud based computing to improve their money deductions and lessen failures. Implementation of strategic management plans would help them be a step forward than their competitors. Analysis of the purchase situation and target audience is essential to gain financial advantage (Hopkinson et al. 2018). Westminster is a place in London that does not have proper delivery of goods services. Direct competition analysis would enable them to find their shortcomings so that it can make up strategies to improve. In the other hand, an indirect competition analysis is also important for gaining additional customer insights and explore untapped opportunities.
An evaluation of contemporary delivery services can make them understand what it has to do to increase awareness among customers and devise strategies to attract clients towards them. Analysis of other industries is necessary for bringing in innovations and creativity to the service processes. Not only this, analysis of the foreign market and the surrounding environment is necessary to acquire a competitive advantage. According to Ramlawati and Kusuma (2018), implementation of total quality management would help Deliverynerd gain competitive advantage. A customer’s needs depend on the quality of service, price of the delivery service, convenience and choices. Deliverynerd tries to provide good customer service to increase quality, convenience and increase the amount of delivery choices. The only area it needs to improve is the price of the delivery service.
External threats towards competitive advantage
A sudden change of rules and regulations on the economic front can hamper efficiency of the services that would be provided by Deliverynerd in Winchester. Existing delivery service that is working nicely is a definite threat for this company. Moreover, the entry of new delivery services that may be more faster than this, is another matter of concern. Unstable legal system in the foreign country can hamper proper and timely service delivery (Giraudo, 2020). Furthermore, sudden economic downturns can cause hindrance to the smooth delivery service of Deliverynerd. Moreover, natural risks that include environmental change and natural disasters would affect the normal operations.
International competition is a vital element that needs to be addressed (Distanont and Khongmalai, 2018). Proper execution of strategic plans and always having a plan B handy is essential to tackle risks that arise suddenly. Keeping an eye on the latest trends surrounding the area is important for gaining competitive advantage. Innovations and brining in creativeness in delivery services through new technology can prove fruitful. The company targets to increase 20% revenue in the next 5 years and therefore, it has to form an operational budget and make big plans to achieve it. Offering discounts for may be a certain period of time may prove fruitful. Effective marketing strategies, reviewing online presence and determining the objectives at the beginning can help identify the external threats at the correct time so that measures can be taken instantly to tackle threats that are unknown and external.
Hacking by external forces or rivals of important information can be a topic of concern that should be checked. Sudden political instability can affect the productivity of the company. Sudden arrival of new technologies can hamper the efficiency of delivery service. Network vulnerabilities should be avoided by maintaining proper security codes for each important data.
CSR and ethical factors for Deliverynerd
Corporate social responsibility (CSR) contributes to fulfilling societal goals that help create a better earth. This is important as it promotes ethically oriented practices that help make this world a better place to live in. The key purpose of CSR is to take part in philanthropic causes, provide to the community one lives in and impart positive social value for betterment of the society (Bhattacharya et al. 2020). The company plans to use bikes that work on battery and solar energy to deliver products. This means it works towards conservation of non-renewable resources and helps the world sustain non-renewable resources for future generation. Moreover, solar energy is available in ample amount, and the strategy to use it by Deliverynerd is what sets them apart.
The company understands the significance of each customer and stakeholder, each one is given importance, and their requirements are heard and given priority. Even, each and every employee of Deliverynerd is given value and constantly motivated by quarterly rewards and promotions. Following business ethics means maintaining integrity, being honest and transparent at all levels of communication and delivery of services. Using contemporary leadership skills would enable them to remain ethical and at the same time be extraordinary, as many companies use corruptive measures to reach the top (Nwabueze and Mileski, 2018).
Recommendations for innovation
Communication errors can have a negative impact on the minds of the customers. Customers feel more comfortable when they are well informed about the services and what they are being provided with. Proper definition of available services and proper service management is crucial for gaining a competitive advantage. Therefore, defining everything clearly to customers is a very important step. Sometimes automatic systems can be used to enhance productivity of services. Apart from goods, Deliverynerd can introduce the delivery of food products and things of daily use. This would broaden their prospective for future sustainability. Moreover, separate departments can be made for each unit like goods, food and products of daily need. This would help gain competitive advantage and increase their revenue collection, and aid in earning profitability.
Sometimes, customers can demand for emergency delivery of items. Deliverynerd should initiate the launch of a separate department that would tackle these types of emergency items by charging a little more than the normal delivery charge. This would again aid in increasing capital and earn profitability. Satisfying the needs of the n customer would help create a good brand name and maximize brand loyalty.
Co-creation of customer value and obtaining competitive advantage
Innovations and creativity help increase awareness among people and bring in creativity to the world. Use of new technologies and cloud computing based apps would help save time and satisfy customers more. Problems like double deductions caused by system or technology failure can be avoided (Henman, 2019). Co-creation of customer value can be obtained through transparent and clear business interactions. Moreover, customer-to-customer interactions can also increase the brand image can add value to existing services. Feedbacks from customers are crucial for recognizing the shortcomings and working towards to gain competitive advantage.
Maintaining honesty and implementing strategies to tackle ongoing risks can help create a good level of loyalty. Co-creation of customer value helps expand the intellectual resources, align with mission statement, better the quality of service and create improved customer insight (Vinerean, 2017). Investing in deeper customer relationships can increase the contentment of clients. Moreover, creative innovations attract customers and stand the test of time.
Conclusion
It can be concluded that Deliverynerd has identified the marketing strategies for delivering the effective and better qualities to the customers. It is significant to identify the how the company can develop the better qualities in delivering the services. It is significant to undergo the process for market engagement for better services in targeting the customers in the UK. Moreover, it is significant to analyse the service engagements and competitive for the companies. The market report has been evaluated to develop the leadership and management development in marketing, external analysis is defined to follow how Deliverynerd can be utilized to precede the competitive advantages for better services. It is significant to follow the better qualities in defining the marketing engagement and service improvements in delivering the commodities through using bikes. In addition, it can be identified that Deliverynerd can develop their positions in enhancing the creativity and competitive advantages in attracting the customers. Deliverynerd can influence the capital investments and profitability to develop the market position and better financial positions.
References
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