Question 3: Suggest a structured internal marketing programme that is appropriate to Pittards. Justify each element of this programme
The above figure illustrates the best six internal marketing practices suggested in Mulhern and Schultz (2005)’s study. In order to achieve the success, this proposed internal marketing structure requires the engagement of all employees in different level. The information is expected to flow vertically as well as horizontally. Those best six practices can be summarized in three main core aspects: 1) context, 2) implementation and 3) workplace experience. These three main aspects are implemented in different level: management level, implementing level and workplace level.
Figure 1: Internal Capital Structure
Adopted from Mulhern and Schultz (2005)
1. Management Level
At this level, senior managers of Pittards are responsible to determine the Company’s internal marketing strategy. It is aimed to achieve that all employees in Pittards’ Company are educated on the proposed external marketing strategy to support for the company and develop the business operations. The employees should be able to understand the problem of Pittards’ which might not be well-known by the end users since Pittards Company is one of the “unsung” heroes. Despite it has high quality of leather innovation and brands relationship, it still stays behind the brand partners who are famous already. Senior managers should be the first persons to understand and have to handle the problem by establishing the internal marketing strategy. They should additionally determine the approach how the Company can reach the proposed goals. The information from senior managers should be firstly delivered across managers of different departments; including marketing, sales, accounting, treasury, logistics, production and legal departments. The approach could be creating a presentation on the proposed marketing strategy which shall be shown in the periodical meetings.
Both managers of different departments and senior management level should define a statement or a story that best persuade employees to understand and execute the strategy. For example, “Pittards has been operating for long period of time and we become more successful in recent years, however Pittards is still less well-known by the customers since we are expected as one of the unsung heroes in leather industry. Therefore, our Company is going to expand the business worldwide and build up the image or role as the supplier and famous leather brand in both B2B customers and B2C customers’ perception”
Figure 2: Management Level Structure
2. Implementing Level
Since all requirements are completed in the first stage – management level, the internal marketing structure shall be implemented. The information from the senior management level is expected to be delivered to lower level employees. It shall be delivered in both vertical and horizontal direction. At this stage, working level is relatively intensive since it requires all employees in Pittards performing together. After the meetings with upper level manager, department managers should have the discussion together how to deliver information to their employees. After that, employees in different department shall be educated by each department manager about the information from upper level managers.
Employees in each department shall have unique tasks to implement the external marketing practices, but they are working together in align with the proposed goals and strategy. In order to be effective and efficient, it should have detailed and sufficient market information before implement the external marketing practices. Marketing department is responsible to perform qualified market researches which can indicate the impacts of macroeconomic and microeconomic environment on the Pittards Company. Both primary and secondary data should be simultaneously used in order to best reflect the current market’s circumstances. When the Company has qualified and sufficient market information, it will propose the detailed marketing plan. The finished plan shall be sent to sales, treasury and accounting department afterward. Sales department sets up the target sales based on the marketing plan and then report to the upper levels managers. Treasury department has to prepare the budgeting plan for marketing practices; for instance, how much money will be investing in marketing plans. Human resources department follows the marketing plan to recruit staffs who can demand the requirements in the marketing plan. In accordance with proposed marketing plan, production department has to communicate with Treasury department, Marketing Department and Sales department to set up factories and warehouses in order to achieve the most effective and efficient costs. Finally, logistics department is responsible to establish strategic location and transporting vehicles to deliver products amongst the buyers. It is obviously seen that information in each department is vertically flown and it might occur lack of horizontal interaction amongst department. Therefore, horizontal communication is required amongst department managers in order to update the most recent information.
Figure 3: Implementation Level Structure
3. Workplace level
After the marketing plan and all prepared steps are completed, the Pittards Company should deliver necessary information to sales team at brand and customer relationship management department. The process of delivering information plays an important role in the success of the Pittards’s marketing plan. Those sales team and CRM Employees are directly communicating with customers; therefore, they should be best educated about the vision, scope of the company and key values of the marketing plan.
Overall, this proposed structure shall engage the participation of all employees in Pittards Company, instead of working separately. Information flows will go horizontally and vertically to different level of staffs.
Figure 4: Workplace level structure
Question 4: Suggest and justify strategies by which Pittards can expand its business beyond that of principally being a B2B supplier of glove leather, shoe leather and sheepskin products.
Pittards Company is characterised as the B2B supplier of gloves leather, shoe leather and sheepskin products. This section is going to propose the strategy based on the Intel Corporation’s idea of “brand within a brand” which is already discussed in question one.
1. Review of product portfolio
Pittards Company has three product divisions: gloves leather, shoe leather and raw material – sheepskin. Those products are served for these particular industries:
No. Industry
1 Aviation
2 Fashion
3 Interiors
4 Military Services
5 Motorcycling
6 Equestrian
7 Sports Footwear
8 Sports Gloves
These types of products that delivered to those industries are used more than 10 leather innovations
No. Innovation
1 Cloud9 Aviation
2 Aquaflex
3 Armortan
4 CIG
5 Firebloc II
6 Futura II
7 Gripster
8 IGT
9 Keratan
10 Microspike
11 Oiltac
12 Parados
13 WR100 and WR100x
2. Review of brand portfolio
No. Brands No Brands
1 Alpine Stars 17 Kumkang
2 Bennett Safetywear 18 La New
3 Brasher 19 Lantan
4 Cloudveil 20 Marmot
5 Dents 21 Merrel
6 FootJoy 22 New Balance
7 Fownes 23 Nike
8 Franklin 24 Ona Polo
9 Head 25 Otto Kesler
10 Hein Gericke 26 Pearl Izumi
11 J.Lindeberg 27 Rapha
12 Jeffries Saddlery 28 Rawlings
13 KLIM 29 Signature Leather Gloves
14 Ringers 30 SportHill
15 Southcombe Brothers 31 Wells Lamont
16 Underarmour
Pittards Company now has supplied for 31 brand partners. The proposed strategy would require at least more brand partners participating. Three business segments consist of fashion, sports footwear and sports gloves that need to have more famous brand partners. For example, Pittard’s fashion segment should cooperate with Luis Vuitton, while Pittard’s sport footwear and sport gloves should cooperate with Adidas, Puma and Onitsuka Tiger.
Applying Intel Corporation’s branding idea; Pittards will construct the branding fund in which those brand partners participate. Regarding to the cost of establishing and retaining the fund, Pittards Company enters into an agreement with those brand partners that Pittards would bear partial advertising cost of those brands which is relatively expensive. The funding source is derived from the sales revenue of Pittards. In return, the name of Pittards shall be attached with the original brand with the statement made and designed by Pittards Company’s innovation.
3. Point of sales marketing
Despite Pittards Company’s name will be attached with the original brand’s name, but several customers might question who the Pittards Company is when they purchase the products. Salesperson of original brand will not have sufficient knowledge about Pittards’ product demonstrate the innovations that are applied to make the completed product. As a result, Pittards will allocate a CRM team consisting of two staffs to each brand store. This CRM team is the representative of Pittards Company in order to introduce information regarding Pittards, answer questions about quality of products and market Pittards to customers. It is crucial to have those CRM teams in order to reduce the gap between Pittards and end users.
4. Media and Newspaper Advertising
No. Activities Purpose Responsibility Content Timeframe
1 Ads on newspapers Create awareness among customers Marketing Director Fashion magazines. 1 – 2 years
3 Fashion shows, sport wear shows Attract more customers Marketing director Introduce Pittards products in fashion shows 1 year
4 Sales Promotions Attract more customers Marketing director Offer 5% discount for customers who purchase directly at Pittards Stores. Create the membership program. 1 year
5 Online newspapers Attract more customers Marketing director Fashion online newspapers 1 – 2 years
6 Facebook, Twitter. Attract more customer
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