In order to answer the 3 main question stated bellow I will make an internal and external analysis of the Juliana A/S company. I will start by analyzing or identify the key macro economy factors which have and influence on the UK’s market. 4P analysis will be conducted in order to explore the external environment of Juliana and then a SWOT analysis to summarise it. The strengths and weaknesses and the opportunities and threats, I will end up answer the question and give suggestions on how they can improve to sell more quality environmental product and create awareness to the brand.
In order to navigate through the macro environment a company has to be aware of certain factors involving the macro economy. Below is a description of the key factors that has been made – these are the most relevant to take note of.
The United Kingdom is governed within the framework of constitutional monarchy in which the monarch is the head of state and the prime minster of the United kingdom is the head of government. UK is the third largest economy in Europe after Germany and France. Over the past two decades , the government has greatly reduced public ownership and contained the growth of social welfare program.
As The UK’s knows as good growth country been able to grow it is important for the UK’s , and it getting better at producing and exporting in order to raise the standard of living .The UK became a net importer of energy in 2005.
The GDP growth in UK has growth 3,2% in 2014 when we compare 2013 was 1,7% and 2012 was 0,3% According to the CIA world factbook and the GDP per capita in United Kingdom it is 37.700$ in 2014, it did not grow so much if we look at 2013 was 36,800$ per capita.
And the gross national saving in 2012 was 10,9% of GDP , 2013 decrease 10% of GDP, where in 2014 comes up with 10,8% GDP cross saving for the UK’s .
GDP composition by end use for the United Kingdom in 2014 , it is relevant for us to know the household consumption , it give us an overview the UK’s can’t afford Juliana Orangery product.
Household consumption 64,8%
Government consumption 19,5%
Investment in fixed capital 17,1%
Exports of goods and services 28,4%
Imports of goods and services -30,3%
The household incomes percentage share it is lowest 10% :1,7% in 2014 and the highest 10% was 31,1% in 2012. The distribution of the family incomes- Gini index it is 32,3 in 2012 if we comparing other year which it was going so well in 2005 where it is 34%. The budget can we se in 2014 revenues was $1.15 trillion. And the expenditures of the country was $1.286trillion as same year 2014. The inflation rate of the consumer price it is 1,6% in 2014 if we compare 2013 was 2,6%.
The United Kingdom unemployment rate in 2014 it around 5,7% which is going down to 1,9 if we looking at in 2013 was 7,6%. But there is a considerable gap between the richest and poorest ‘ the top 20% of the population earn nearly six times as much as the bottom 20%. In terms of employment, over 71% of people aged 15 to 64 in the United Kingdom have a paid job. The living standard in UK says a lot about the potential growth new product Juliana Orangery Greenhouses can gain in UK because people with more money will be upgrading some of the daily basis their garden .The United Kingdom as a country has a high standard of living, it performs well on the better life index of OECD (Organisation for Economic Co-operation and Development) in many areas, in short they do well on community and wealth but not too good in work , because they have long working hours , if we comparing in Denmark, in Denmark we don’t have long hours work.
In 2015 UK has -0,1% deflation rate that means their goods has less value than before. Inflation is around 1-2procent a year to be healthy. Balance of payment each country trades with other countries and each country want to achieve stabile balance so they don’t own anyone money.
Juliana Greenhouse releasing their new product will have a good chance in UK market because UK gardening and outdoor living market has fluctuated between growth and decline in recent years. In appendix the United Kingdom gardening will grower , in 2013 the UK gardening and outdoor living market had total revenues of $ 6.4bn representing a compound annual growth rate (CAGR) of 0,9% between 2009-2013 if we compare other countries like Germany and French markets grew with (CAGR’s) of 1,4 % and 1,4 % in the same period , to reach good values of $8.9 bn and $12.8bn in 2013.
According to the world Bank’s doing business index from 2014 The UK is placed one of the best country in the world in terms of doing business. UK is also member of G8 now it is G7(-Russia ) G8 is coalitions of 8 of the world’s leading industrialized nation .
This key fundamentals I will look into is the GDP pr. capita which tells us how much money each UK has pr. year. According to the CIA world factbook each UK had $3959581pr. capita in 2015,. The reason why we use this key figure is that it gives us an indication of how much each UK has to spend each year. To elaborate on this key figure we can get a better indication of how much of their income that is being spend by looking at the gross national savings.
The Juliana Greenhouse company wants to launch their new product in the UK market. Therefore I use STP model which is stand from Segmentation, Targeting and Positioning. I use this to identify our target group in the UK market.
People with gardening
People with gardening cover big variable criteria I can say that that I am talking about people who lives in UK who don’t like to stay in central big cities and don’t living big apartment but prefers house outside of the city life and want to enjoy gardening live in same time quietness.
The initial target group for the B2C is defined as the people who earn a lot of money and live outside London but also are interested in gardening . this target group consists people who own a house with good job. who love to take care of their garden and enjoys at the same time not having to bring a lot of equipment with them just to take care the garden. Juliana orangery make sure that they don’t need a lot unnecessary complicated equip to use gardening The target group is defined as both psychographic and behavioural related. Psychographics meaning lifestyle, attitude and personality – consumers are those who prefer quality greenhouse at their garden. Behavioural means consumers doing gardening work witch they enjoy doing that.
The company should use two selling propositions which are (ESP) emotional selling proposition and (USP) unique selling proposition. Their unique products are from high quality material and easy to use. The Juliana Greenhouse wants to achieve their new product Juliana Orangery a broader target group and market shares. The UK buying behaviour similar to Danish which means they like to take care their gardening work as Danish gardening worker will do and spend quail time growing tomato, or other vegetables
4p’s marketing mix:
The Juliana Greenhouse company offer a greenhouse with very unique designed for gardening and leisure. Juliana Orangery gives the consumer a high quality product and a unique garden space that can be used both as a traditional greenhouse, in same time can be also enjoying great outdoors event ( family dinner , launch ) wicth you can have inside the greenhouse small furnish or your just working place. The product gives also two different shape colours: aluminium/black and gry/black and with 3mm safety glass. The consumers don’t need to buy safety glass with comes with the product . when you buying the product Juliana make sure you get whole experience of buying one the product regardless of whether you choose to install the greenhouse yourself or pay for professional assistance they want to give you experience economic with you so you know letter bit historye and what you are getting out of buying this type product. So the consumer will fell convertible buying the product and will also enjoy with gardening in same time special event . In the appendix consumer gardening outdoors in UK I find out that UK people like high quality gardening / greenhouse with a quality time with family drinking tea and scorns. and it is important for British people. The plus side it is that they can get more event with family time. So I suggest the expected product for Julian Orangery is various new way you spendt with your family get away from everyday life which is stressful and noise in big cities of Uk.
That makes the product depth. That could be attract more customers who are tried everyday’s life . And the augmented product is a gardening your garden and bee with your love ones . That makes the customer feel more convenient to use it. The product of Juliana Greenhouse give enjoyable lifestyle and it is belong to unsought product.
Figure 3. In planning its market offering, you need to address five product levels (see picture above) each level adds more customer value, and the five constitute a customer-value hierarchy11
The core benefit is that you get enjoy your hobbies of gardening , so you get rid of your stressful city life and havening get together tea party long lost friends you don’t have time in city with small apartment
The basic product given you a space to platens and have company with your family in the Juliana Orangery house with your own test furnisher.
The expected product is a good quality grading Greenhouse with nature light of your gardening tomatoes and you can get whatever vegetables , and have some furnisher in it the greenhouse.
The augmented product is that they have a good and detailed guide on how to build the product or use it, and some good information of your gardening vegetables.
The potential product could be that they made a bigger size of Juliana Orangery product you could more people inside Juliana Orangery. Make the product could develop more cool and easy method wicth it is to built furnisher like a clip clap chairs when you are done with you could clip clap like sport stadium chairs. They could also use the Growth strategies Diversification part , because they start producing clothes-drying with same environmental material.
Price setting is a very complex process that has to be very accurate in order to create the best possible sales and thereby the best profit possible. There are 6 steps of (Kotler, 2012) in price setting;
Selecting the pricing objective: The Company has to set an overall goal with the price setting and for the
Juliana Greenhouse it is chosen to focus on maximizing the market share. In doing so they will sell more and the production prices might be pressed down, and even if they do, the sales prices could still be pushed up as the brand becomes more wanted in UK.
Determining demand: Whatever price they end up choosing for UK market, it will affect the demand, how much depends on the price elasticity. Most companies will detect a lower sales volume if the prices are set up, this is however not always true.
Quality over quanatil du skrive om ting telefon
How much the demand will change with the price varies a lot and companies will attempt to estimate the demand curves.
Estimating costs: When estimating costs Greenhouse need to think about their fixed costs, variable costs and average cost. It depends on the budget and ambition but also perceived value, since the price reflects the value of the product.
Analysing competitors’ costs prices and offers: Companies should compare themselves to the companies they want to compete with. Juliana Orangery has some features that others greenhouse do not offer witch it is the light and the fragrances of consumer plants give you a sense of wellbeing and energy, in same time consumer can have furnisher. Consumer can choose two colours of Juliana Orangery product.
Selecting a pricing method: Based on the other steps above, the company should be ready to choose a pricing method, and they can choose from; mark-up pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing and auction-type pricing.
Juliana Greenhouse A/S should use the mark-up pricing where the variable and fixed costs are put together and the wanted profit is added in order to get a selling price.
Selecting final price: The final step is to select a final price. In this assignment it is not possible to estimate an end price because of missing manufacturing prices. the Juliana Orangery product cost Denmark 34000 to 39000 DKK . It is difficult to find out in UK price I suggest Juliana Greenhouse should use premium strategy, which is high price with high quality.
This part is about how The Juliana Greenhouse A/S should pick their retailer, their product line and how to handle the inventory and transport in UK. Coverage and location should us the biggest city in the United Kingdom , I choose those specific cities because most of the UK citizen with good job and money is moving outside of the cities where they buy house and have garden, therefore Julian Greenhouse company should focused on them also other cities, my intertail source tell me that most of Uk citizen who have good job and family the choose to live outside cities , where there kids have opportunity to ride a bicycle, have house.
City Localities Population
London London 7.172.091
Birmingham West midlands 970.892
Glasgow Scotland 629.501
Liverpool North West England 629.017
Leeds Yorkshire and the Humber 443.247
Sheffield Yorkshire and the Humber 439.866
Edinburgh Scotland 430.082
Bristol South West England 420.556
Manchester North West England 3494.269
Cardiff Wales 292.150
Belfast Nord Irland 276459
The places where the product should be sold are places where there is close to house owning citizen, in appendix uk gardening and outdoor living. Tel us that people in the United Kingdom growing through the years in 2019 the united Kingdom gardening and outdoor living market market is forecast to have an excellent value of $7,3bn an increase of 14,1% since 2013 so that is good thing there will more and more user for the Julian Orangery product.
The promotion in UK is of high importance – this is mainly because Juliana Orangery is a relatively new product on the market. Using the 7 steps in developing communications.
Figure The 7 steps in developing Effective Communications
The reason I am using this model it because will give and ide to make promotion Juliana Orangery product .
ID target :
The target groups has previously been determined as in Section stressful city lifepeople who do not want noisy want to have time with their gardening or having house with garden witch you could plantes different vegetables and have nice event in your new Julian Orangery greenhouse with friends and family.
Define Goals :.
The goal is to gain market share and further develop the market. The objective is therefore to create better awareness and also make people try the product which having open by night event so the people could touch and see the product so people able to accept it high quality and how environmental it is product. It is advised to do a market map to get a clear overview.
It is clear to see that the message and content of the advertisements have the USP and ESP in focus. The USP is obvious in the first image in Enclosure B , it give you how to use and to build the product . This is an informational appeal – where the consumer is informed that how can they build the product and which tools they need for it. The ESP is outlined in the second image in Enclosure B where they are appealing to an environmental and sustainable product.
Select channels :
Deciding on the optimal communication channel one has to take a look at the context, if it is trying to make people use the product and go inside it is wise to let it happen in a face-to-face situation ,where they can see it the product (this can happen in jem og fix or XL-BYG stores). Also the shopkeepers are needed to have some training and knowledge about the product to be able to be some kind of ambassador for the product. The main focus is the B2C market where a pull strategy is implemented to make the customers either buy from the retailers in a physical store or a the Juliana Greenhouse web shop or other web shop. The product is in the introduction stage of the PLC curve.
Determine mix measure & optimize : As with everything in marketing, it is important to measure everything that is done in order to constantly improve the campaigns.
– High quality product
– It is a great product(it has styl)
– It is easy to clean
– Easy to use
– Affordable price (from 40 ‘ up years old)
– Environment friendly product Weaknesses
– Requires owning house or garden
– Expensive look , not affordable from 20’s to 40 years old)
– Customer habits ( apartment city life )
– Online Advertisement
– Lead position to enjoy quietness of having greenhouse
– Forecasts say that you will spend more money on gardening the next few years
– They have many competitors enter for other greenhouse company
– By looking their Key financial numbers, not enough budget for employee
The Juliana Greenhouse strength is they use high quality woonden greenhouse mad solely of certified wood, and the glass they user in greenhouse is aluminium glass it is recyclable material ,it shows that they support the environment, and they have been 10 years sponsorship of the WWF’S SHARK PROJECT. This product it is luxuries and in same time environment . Juliana Orangery are easy to use to your plants and in same time you will enjoying doing gardening and having nice cup English tea. It doesn’t require professional knowledge to use before you buy product Juliana Greenhouse will give experience economic process. The product it is affordable if consumer has city life habits , like living apartment so you need have house to own Juliana Orangery product, it is expensive product you have to bee sorting age to own product.
Question 2b ‘ Marketing budget:
In this section I will make a marketing budget in accordance with our marketing mix. As stated above I have chosen the people with good job and own house this user situation from the assignment. As a consequence of that I have chosen platforms that address the house owner who have garden and don’t like cities life. In order to create a marketing budget it was necessary to make some basic assumptions on the prices and quantity to be sold in UK. Under other circumstances an in depth knowledge and cooperation with the company would have been made and that way a realistic scenario would be presented. These basic assumptions are made on data and info found in various sources. The marketing activities are estimates made from references of other companies making ads and are therefore only guidelines to what a real cost would look like – also the digital marketing cost is set at a fixed limit because it is often a budget that will be set before starting a campaign.
Year 2013 2012 2011 2010
Cross Profit 22,252 34.192 51.228 33.438
Profit before tax 3.826 -1.391 9.742 7.115
Profit 2.628 1087 7.184 -52.204
Equity capital 49.897 47.797 53.245 45.466
Balance 101.289 102.964 139.949 100.638
Employees 40 47 51 52
This key financial numbers shows us that the past 4 years cross profit goes down in 2013 to 2012 goes down to -11.94 . from 2011 to 2010 17,79 growers the equity capital goes ups and downs. They start having 52 employees in 2010 and they decreasing 40 in 2013.
Based on year 2013 equity capital is 49.897Mil DKK, the company can afford big budget marketing mix in my appendix 1 I calculator based on my analysis research.The total investment in this marketing budget will amount to approximately 1. Mil pound. As it has been difficult to get the exact numbers this budget is just to show where and how we will promote and not a completely exact budget. The reason I choose this budget it because the key financial numbers shows me that it is not stabile Equity capital and specially the employees. So rate have those platform budget and have more employees in UK where I can motive and invest them. If we are going to promote we need a lot employees since the company employees disappearing that is not good sign for the company.
As you can see the table some year going well , and going down. So the company motto ‘you are only as good as your last game’
Motivation factors and Hygiene factors
If an employee is dissatisfied with his job, the first task is to meet his Hygiene Factors, and only when this are satisfied, they can be motivate by the Motivation Factors. This could be compared to Maslow`s Hierarchy of Needs, where we move through these needs only after one level has been met. The comparison can be seen in the figure below.
Herzberg Two Factor Theory and Maslow`s Theory of Needs
Juliana’s staff are keenly aware of the need to continuously develop business model , processes and , not least its product ranges but not only to expects employees can develop a good business plan and to be committed to have good organization plan, while the employees are expecting fair treatment, working conditions, personal development and recognition. As we know from the Danish society.
Juliana Greenhouses has been in contact with a potential UK distributor, in order to sit down with UK distributor, Juliana Greenhouse need to use the12steps of Negotiation model, it gives an overall idea about what is needed in such a situation. The theory demands the steps to be though over very well, before entering into a negotiation situation. There are also another model call getting past no.
first Juliana Greenhouse need to make sure that they have all information they need from potential UK distributor.
Juliana Greenhouse want to find out:
1. if they have a history of accepting foreign greenhouse product and how they promote the product
2. They also sell Greenhouse from other countries: Finland, Germany, Italy, France, Spain etc
3. What price range is Greenhouse , what type of customers do they have etc.
Assessment of the negotiators scope:
As we are consultant on possible business partnership, Nikolaj St??rmose has responsibility for Juliana’s combined sales activities
Evaluation of the negotiation at hand, knowing what the negotiation is actually about. In this situation it is about getting the UK distributor to buy the product in order to create sales in the United Kingdom.
Making a list of your goals:
In doing so the goals should be specific and measurable and also trying to guess the goals of the other party. Juliana Greenhouse want to get in the United Kingdom Demographic life cycle ( bachelor stage, newly married , full Nest 1 or more, empty Nest, solitary survivor) so the goal will be to get in UK lif cycle stages that means Juliana Greenhouse has more sell .
What are the interests of Juliana Greenhouse :which is about questioning the goals by asking ‘why”?Why do they need the distributor to buy the product’ – to get more sales in UK. ‘Why do they need more sales in The United Kingdom’ – in order to create growth in the company.
Making a list of all possible negotiation issues
The tradable in this particular negotiation is that Juliana Greenhouse want to talk about price, quantity and delivery time for a potential deal with UK distributors. But before the negotiations begin I will try to look at what elements the company can negotiate with, because they may come in handy when we are stuck on an issue.
Prioritizing the tradable:
We would then like to have some entry points and some exit points. Entry points should as a rule is more light subjects that we don’t expect to create big disagreements. Exit point could be stressing that our product gets a certain placement in the stores.
Assessing your position:
‘ High quality
‘ Fresh beans
‘ Good design
‘ 2 colours
‘ environmental picture
‘ Online webpage undeveloped
‘ Transport distance
‘ Good UK economics Threats:
‘ Intense competition
Assessing you BATNA (Best Alternative To a Negotiated Agreement)
Before we go to our BATNA we need to keep in mind that those 5 steps
Ask yourself: what am I going to do if I do not get an agreement?
1) What are my alternatives? Get other company it is good quality
2) How realistic is each alternative?
3) Could it be put into action straight?
4) Select your best alternative and use it as benchmark
Assessing a BATNA (Best Alternative To Negotiated Agreement), where both parties have a situation that is agreeable if the negotiation is not going directly their way.
Getting Past No’
5 step for going past no:
1) Don’t react (go to the balcony)
2) Disarm them (step their side )
3) Change the game ( don’t reject ‘ Reframe ) another way to say yes
4) Make it easy to say ‘yes’ ( Build them a golden bridge)
5) Make it hard to say ‘no ‘(Bring them to their sense not their knees)
Preparing your arguments which are to support your claims and bids
The Danish product is well known for their quality and it is popular across the world. We also hope for long term business cooperation. We start convincing them we both are win-win type; there is no loser. After we going to slowly and soft negotiation so they don’t need to feel like being forced to something they don’t feel comfortable. After that we show our principled which is to solve problem with them so they feel like they are part of something.
To sum up on the assignment we can conclude that the United Kingdom Greenhouse market is a getting interesting throught the year because the UK’s population starting having more and more growing plant, and people are started to move outside of big cities to have access their hobbies grading and market in growth, the exclusive garden market in particular. That makes the market extremely interesting to expand on. As an extension to that fact the UK’s economy is in general growth through the years. They have a very unique product that also appeals to the emotions in people which is an important combination.
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