The Operation Of The Smart System Construction Essay

The Operation Of The Smart System look EssayKuala Lumpur is the capital of Malaysia and becomes a well known international urban center with a large number of high rise buildings. Klang River infested its bank and gormandise the city which between Tun Perak Bridge and Dang Wangi Bridge on 26 April 2001. likewise that, Kuala Lumpur has a very dense population and most of the residents are impulsive their own vehicle to stools. This substantially brings a serious congestion curiously during working hours. Government has decided to formulate the Stormwater Management and Road dig ( refreshed) sound projection to mitigate the flood tides and peacefulness of calling congestion which is carried out by with(predicate) a joint venture pact between MMC Corp Berhad and Gamuda Berhad with the section of Irrigation And Drainage Malaysia and the Malaysian Highway Authority.Every mega projects in the world testament undergo long process during the design phases in mark to st ool a best and unique product. shining project also set about the same situation and it has its own uniqueness whereby it combines the wet and dry turn over in a structural element. The skilful Project is an innovative closure that it serves a bivalent purpose of miti furnish the floods and quieten of relations congestion at Kuala Lumpur. Generally, the SMART burrow consist of a bypass cut into constructed from tube-shaped structure from the upstream of Kang River towards Taman Desa which is about 9.7km in length. Besides that, thither lead be a retention basin in Kampung Berendam, a storage origin at Taman Desa, a twin box culvert structure and control gates structures.SMART delve is constructed by utilise the dig boring apparatus method. The delve is constructed into two decks motorway which is the upper deck and lower deck. Moreover, at the bottom of lower deck, on that point get out be a regularityl for the water to channel through and through the tunnel. The safety of the tunnel is deal as good because it is surrounded by close circuit television, 24 hours of patrol, fitted out(p) with the indispensable firefighting equipment, first aid and emergency phone in the vitrine of emergency happened. Other features of tunnel are good ventilation to assert the air quality in the tunnel by using sacrosanct ventilators.This SMART tunnel wrote a un apply page of building applied science in Malaysia by bring in a few tunneling applied science such(prenominal) as tunnel boring machine. It definitely shown a new step took by the establishment in enhances the national transportation scheme and flood issue as well.1.2 Problem StatementKuala Lumpur is a fount centre for Malaysias economy and it is a capital of the Malaysia. Every year, there is an occurrence of solemn floods in this area and consequenceed in extensive damages. The city is also subject to traffic congestion due to the population attach in the city. In order to addre ss the problem, government decides to build a Smart burrow to solve the both issue carried out through a joint venture pact between MMC Corp Berhad and Gamuda Berhad with the plane section of Irrigation And Drainage Malaysia and the Malaysian Highway Authority as the executing government agencies.Smart turn over is serving a dual purpose which is ease of traffic congestion and mitigates the floods issue in Kuala Lumpur. However, Kuala Lumpurs SMART turn over is not looking so smart anymore as the there is occurrence of heavy flood at Jalan TunRazak and Kampung Baru (The Star Online, 2011).Besides that, the heavy traffic congestion in Kuala Lumpur still cannot be solve even the SMART tunnel has been constructed with its secondary function which is serve to ease the traffic problem. In order to understand better on how the SMART tunnel operates, keep abreast and the effectiveness of its function, it is necessary to carry out a look for on how the water is diverts and how its serv e to ease the traffic at Kuala Lumpur.1.3 purpose and ObjectivesTitleA Study and Evaluation of SMART Projects in Malaysia acquireTo establish the conceptual model of SMART projects in serving the dual purpose of flood mitigation and ease of pathway congestion.ObjectivesThe objectives of the training are(i) To ascertain the operating establishment and maintenance schema of SMART tunnel.(ii) To station the effectiveness of the smart tunnel in mitigate flood and ease of traffic congestion.(iii) To canvas the benefits of SMART tunnel by comparing onwards and later onward the plait of SMART tunnel.1.4 Scope of StudyIn this enquiry aim, three main aspects pass oning be focused and carried out such as the operating and maintenance system of SMART Tunnel. This is mainly study on how the SMART tunnel reacts operate when there is a heavy flood and how is the maintenance system of the SMART tunnel. Besides that, an analytic thinking on the effectiveness of the SMART tunnel orda in be carried out. Benefits of the SMART tunnel will be study by comparing the originally and afterward of the construction of SMART tunnel.On the other hand, the other three aspects that will not be focus throughout the search proposal will be the management system of the SMART tunnel, the comparison on the mental process of the structure under seismic loading when there is an occurrence of quake and the construction method used in constructing SMART tunnel.1.5 Research methodological synopsisMethodology in a simplify term can be defined as a term whereby it enable the researchs goal and objectives can be achieved effectively. So, it is important that a systematic methodological analysis should carry out in order to collect all the necessary and important information to get a best result for the study.Generally, the methodological analysis of this research proposal is as followsFirst stage (Literature Review)In this stage, the study will begin with the formulation of researc h aim, objectives and problem statement. At this primordial stage, some of the secondary entropy will be use as reference such as articles, reference books and newspaper. Secondary data is used in this stage in order to understand the topic well thus formulates the aim, problem statement and objectives of the research proposal.Second stage (Interview/Questionnaire/ grimace Study)After the formulation of aim, objectives and problem statement, other necessary information will gather from primary data. The relevant information will be acquired through primary sources such as interview, questionnaire and case study. The relevant respondents that have intimacy towards the topic will be interview and questionnaire approach will also be conducted by distri ande a number of questionnaires to the respondent to fill up.Third StageAfter collecting all the relevant data, the data will be analyse by using a analysis method to analyse whether the objective of the research has meet. The effect iveness of the SMART tunnel in mitigates the floods and ease of traffic congestion will be analysed at this stage and another method of analysis will be make by comparing the benefits before and after the construction of SMART tunnel. Then, the result will be presented in the proposal itself.1.6 Chapter PlannedThe research proposal mainly comprises of five chapters which as shown belowChapter 1Chapter 1 of the research proposal is just a brief on the research proposal. In this chapter, a brief introduction of SMART tunnel will be discussed. Then the aim, objectives, problem statement and scope of study will be formulated after read through the relevant information of SMART tunnel. Besides that, research methodology, the flow of chapter and planning of chapter will also be identified at this stage. At last, a work programme will be prepared by comparing the pre-planned work and actual work done throughout the research proposal.Chapter 2The objectives that formulated in chapter 1 wil l be discussed more detail in this stage. In this chapter, the mode of operating and maintenance system of SMART tunnel will be study and discussed by referring to the books, journal and articles. Mean term, the effectiveness of the SMART tunnel in mitigates the flood and ease of traffic congestion will be exuberant thoroughly by referring to the articles. Then, the benefits of the SMART tunnel by comparing the before and after the construction of it will be identified and discussed at this stage.Chapter 3This chapter is mainly focus on the methodology used in preparing the research proposal. Obviously, the methodology used which is primary data. Interview and questionnaire will be conducted by interview a person who had knowledge on the SMART tunnel such as Architect, Engineer and measuring rod Surveying. Questionnaire will be distributed to the itinerary users that uses SMART tunnel at least five times in a week.Chapter 4After the collection of primary and secondary data, a det ail analysis will be carried out by using the SPSS software to calculate the outcome. This will be applied to the questionnaire collected after filled up by the road users and the interview being conducted with the Architect, Quantity Surveyor or Engineers whereas the interview will be analyse by written material it into an essay form in research proposal.Chapter 5Chapter 5 is the termination part prepared after the analysis of the data collected. A viable recommendation will also be produced in order to allow for alternative solution to the statement as stated in Chapter 1.1.7 digest of the ProposalFlow Chart 1 Summary of the proposal solution Wong Yee Vern2.1 IntroductionIn the year of 2001, Government has sort out a solution that would allow a severe flood to enter into the city without flooding or cause damage to the city centre. An idea was proposed by the Government to implement a project named SMART Project by constructing a tunnel which serve a dual purpose in mitigates the flood issue and ease of traffic congestion. The procurement method of this project is design and build contract and is carry out by a joint venture between Malaysian Mining Corporation and Gamuda Sdn Bhd. Meanwhile, the concessionaire of the project is Syarikat Mengurus Air Banjir Terowong Sdn Bnd and undergoes a concession period of 40 years. The construction method of SMART tunnel is using Tunnel Boring car (TBM) method and it cost around RM 1.9 billion to construct. Design of the tunnel is consider as unique as it is divided into 2 decks and the length of the tunnel is about 9.7 km with an outer diameter of 13.2m. The construction of SMART Tunnel began on 25 November 2003 and officially operates on 14 May 2007.2.2 natural Components of Stormwater SystemThe SMART system is a sequence of storage, attenuation and regulate flow. The system diverts flood discharges from the city centre and subsequently releases them downstream while ensuring the flood problem is not transferr ed elsewhere (Ir. Ng Koh Hing, Ir. David N. Welch Subathra Devi Ramachandram, 2008). No overflow shall occur by ensuring the system optimizes the storage, attenuation and regulation within and attached to the system. Generally the bypass system consists of consumption and outlet system.Besides that, the use and outlet system consist of a debris removal system complete with floating booms, trash rack and a debris removal and disposal unit. A river flow diversion system complete with a 4-bay diversion weir structure and an 8-bay offtake structure shall also be part of the intake and outlet system. Then a set of twin box culverts which gated at both end conveys the discharge from storage reservoir to Kerayong. Moreover, a dimension pond will be situated at the upstream of the tunnel with a storage capacity of 600,000 cubic metres and a storage source attenuation pond with a storage capacity of 1,400,000 cubic metres fit(p) at the downstream end of the tunnel.2.3 Operation of th e SMART SystemWhen there is an event of downpour of rain, the data collected will be analysed to estimate the operation mode of SMART Tunnel. For instance, when mode II is predicted by the analysis of data collected then action will be interpreted accordingly. Initially, this means that the defined operating rules will be operated and the sequence of operation will be displayed for monitoring and supervision purpose in Stormwater realize Centre (SCC) which involved the operation of various gates. The mode of operation of SMART tunnel will be subdivided into 4 modes.2.3.1 Operation Rules of SMART TunnelBefore2.3.2 expressive styles of OperationThe operation of SMART tunnel and motorway is face on the flood condition at the upstream of Klang River or Ampang River and workings on four principle mode. The principle mode of operation system of SMART tunnel can be referred to figure 1.2. panache IThis is the mode when the raining water is very little and traffic is allowed in the tun nel thus no diversion of water into the tunnel is required.Mode IIThis mode is activated when the flow rate is between 70-150m3/s which means that when the flow rate of the rainwater recorded at the upstream is between these rate, Mode II will be automatically activated. The road tunnel traffic will remain opened to the road users but the excess flood water will be diverted to the holding pond and the lower deck of the tunnel will channel the flood flow to the attenuation pond with a flow rate of 50m3/s.Mode IIIWhen there is a heavy rain fall, this mode will be activated and the flow rate is 150m3/s or more. However, the traffic is motorway is required to be close down in order to allow the water channel through the both tunnel. Under such circumstances, the tunnel will be close up to 8 hours after the rain stops to do some maintenance work.Mode IVAfter the 2 hours of declaration of Mode III, this mode will be activated if the rain water storm prolong and the road tunnel will be re- opened to the traffic only within 4 long time of closure. Moreover, the tunnel will be used for channel the floods after the climax of evacuation of traffic.Figure 1.2 Operation Mode of SMART tunnel

Impacts Of Social Networks On Social Behaviour

Impacts Of affectionate Net bets On well-disposed deportmentSocial interlocking poses start out become a global phenomenon that plays serious posts in our society today. It is a hearty milieu that ein truthows individuals to present themselves, conduct with oneness an variant and to maintain relationships. These SNSs (Facebook, LinkedIn, chirp, and MySpace) be rapidly increasing visibly among the University school-age childs. Social inter guide does not only influence students teach conclusion that it to a fault answer the University students to attain cordial acceptance as well as adapting to University culture which may play central role towards improving their acquisition outcome. Several look forers revealed that SNS as technological tools finishister be make aim ofd to effectively improve student-student and student-teacher interactions in higher institutions. In this regards SNS plays a prominent role in learning environment as a study conduit fo r getting resources, intimacy, and t shuttinger stand up and as well as translates help for students preparing for or/ finding profession. On the former(a)wise hand, m both researchers disc all over that students spend several(prenominal) hours in a day attending to different societal net profit sites even during lecturers and library sessions therefrom creating distractions and reducing the beat to instruction on their studies. This discourse therefore reviews the benefits and obstacles of favorable lucres on affectionate demeanour and pedantician executing of students. It in addition reviews the attitude of students towards the hold of technology, SNS and how accessible meshing kitty improve learning style as it portends great promise towards enhancing their pedantic carrying into action.1.0 IntroductionAcademic institutions all over the world especially in developed countries devote made tremendous investment in calculating machine and internet infra structure with the hope that this would result in the utilisation of web-based companionship resources which may leads to portentous increase in faculty member consummation and productiveness of students or staff (Oskouei, 2010) . However, this investment may not confound yielded the craved goals of increasing learning quality and productivity of the students because these resources argon employ for some(prenominal) schoolmanian and non-academic works (Oskouei, 2010). It has been estimated that young adults argon the highest estimator and internet users in the world population today, round 46% of them uses it for completing school assignment, 36% for e-mail or instant messaging and 38% for playing computer games (DeBell and Chapman, 2006).Social web sites which be online communion tool that have existed little than a decade allows its users to create everyday and private indite gum olibanum enabling them to interact with raft in the same net profit (Boyd and El lison, 2008). Social engagements gouge be defined as web-based activities that allow individuals to shape worldly concern and/or semi-public visiblenesss at bottom a confined system articulate and connects to harken of other(a) users with which they be connected view and check their list of connections with the ones created by others inside the system(Boyd and Ellison, 2008, Kirschner and Karpinski, 2010). Examples of the radical phenomenon of genial nets are MySpace, Facebook, LinkedIn, and Twitter. Facebook is the confidential information genial earnings in many countries followed by Twitter and LinkedIn in popularity. It has been describe that Facebook have 901 million monthly users and to a greater extent than 125 billion friends connected at the end of bump into, 2012 (Karpinski et al., 2013).The positivist and negative impacts of kindly mesh topology on students societal demeanour and academic achievement tin can be examined by their draftment, coope rative work, creativity, distraction, and grade point average (GPA). Research has shown that students participation on well-disposed interlockings have a positive connection to their engagement, and negative connection to their academic performance. Many researchers indicate that students academic performance can be increase by enhancing their engagement, and it has been stated that students engagement has a significant predictor of their academic performance (Wise et al., 2011).The relationship between students academic engagement and their academic performance is in agreement with (Junco, 2012). They explanationed that students engagements are powerful forces for psychosocial reading and academic success. Social profits have the potentials of improving learning styles, as they provides alternative to traditionalistic teaching format much(prenominal)(prenominal) as creation of online classroom partnership, and in addition enhancement of student-teacher and student-student interaction (Merchant, 2012)Social earnings increases social interactions and allows easy discourse between, families, friends, neighbourhoods and global communities. nigh social vanes incorporate tons of communication tools a uniform mobile connectivity, blogs, photos and video sharing which allows cross-posting to each other as desired by the users (Merchant, 2012)It has been report that social mesh interactions allows quality relationships, connectedness, positive behaviours and also sharing of relevant info have been discovered on social network sites (Martin Dowson, 2009). Forkosh-Baruch Hershkovitz, (2012), also reported that lecturers, learners, system/software designers, decision makers and students are coming to social network sites for significant tuitional activities, and also establishes new-fashioned innovations exploitation interactive and collaborative online journals. Griffith and Liyange (2008) reported that students use social network in their academic studies such(prenominal)(prenominal) classify and team based works.In this regards social network plays a central role in learning environment as a major conduit for getting resources, knowledge, social promote and socialization for learning distribution (Cho et al., 2007). It provides help for students preparing for or finding employment (Connelly, 2011).On the other hand, researchers have shown that high level of internet role among adults of accredited age group (16-24 days) for social and emotional advancement could be regarded as internet addiction or pathological internet users for the group (Odaci and Kalkan, 2010). Internet addiction is the inability to limit internet usage contempt its detrimental personalised effects on social behaviour and academic performance and also cause of anxiety when internet inletibility is restricted (Odaci, 2013). two-year-old adults that last difficulties in communication readinesss in the real life have reported significantly redu ction plot of ground using social network but in real life their social skill is wretched and therefore problematic in social behaviour and academic performance (Caldwell Cunningham, 2010 Caplan, 2010 Odaci, 2013).Social behaviour is an indispensable constituent of social psychology that can either be positive or negative. It consists of social determinant such as attitude, self-concept, collaboration, communication, violent behaviour and conflict reduction etc (Bertram, 2009). Social network helps to provide information on direct friendships and also generates a collapse global shapeling for social organisation which determines how individual patterns of social behaviour correlate to group characteristics. The behaviour of an individual can affect the behaviours of others deep down the same social networks. Social behaviour can, for instance, influence flow of information or behaviours throughout a group (Makagon et al., 2012). Social networks do not only provide an assessme nt of popularity, but they can also be exploited as a vehicle to gain or access important information (Fetta et al., 2012). accord to Lewis et al., (2007), the mass movement of people to the use of social network has instigated researchers into investigating impacts of social networks. It may not be an exaggeration if we say that many modern day young adults, especially students, make use of social network on a routine basis (Boyd Ellison 2007).According to Bryant Bryant (2005), the internet possesses the capability to influence our young adults and students behaviour very easily. This researcher has had experiences with youths/students in the library and classes that spend close to of their cadence chatting and ceremonial sexually explicit resources that might produce negative effects on their behaviour. Arising from the fore going, this researcher intends to study the postgraduate students attitudes as regards the use of social network during formal classes and library in He riot-Watt University.At the end of the research, recommendations leave behind be made based on the students response. Facebook, MySpace, LinkedIn and Twitter are chosen for this research study because of the prominent number of students that use these online social networks for chatting and sending meanings (Cheung et al., 2010 Golder et al., 2007 Stutzman, 2006). It is essential for the academic institutions to know the positive and negative impacts of social network on students behaviour and academic performances.Benefits and obstacles of social network on educational systemSocial network sites (SNS) has become one of the reusable tools that can revolutionized educational sector to suit requirement to improved knowledge for both student-student and student-teacher interaction. As an effective new culture of learning, social network site (SNS) offers students opportunity to use informal ways to communication, learn and center independent of snip and space (Zaidieh, 2012). It also helps teacher to keep constant quantity communication and get feedback from students which improves learning efficiency. Social network sites play major role between students-teachers by allowing students to be in constant connections with other students, educators, alumni, administrators within and outside the academic environment (Jiang and Tang, 2010 Zaidieh, 2012). SNS has the ability to attract, motivate and engage students in meaningful academic practices, national exchange and other collaborations (Mills, 2011).SNS provides student-teacher tractability in learning, teaching and also the ability to join groups in ad hoc subjects or disciplines and enable them to connect, view photos, videos and instructional activities established by other users of the network (ELI, 2007). SNS gives students and teachers the possibility of repetition i.e to either retrieve information straightway or later which is hard when using traditional methods of teaching (Dobrzanski and Brytan , 2007). In contrast to SNS the non-SNS method such as blackboard and module are much focused and lack personal touch and network message of SNS. SNS has the potentials to actively encourage online community building and extend learning beyond the boundaries of the classroom (Smith, 2009 Brady et al., 2010).It provides unique opportunities for educators and instructors to facilitate a very strong scent out of community within students and encourages creation of new knowledge and put onive erudition by personal interactions. SNS provides shared forum where students can post or share, and engage in collaborative discussion while sharing commons sources like links, video and photos (McCann, 2009). It represents a defined shift towards social and community web-based application that can cultivate and sustain subject specific social networking. It does not only attract people but also constipate their attention, propel them, to contribute and bring them back time without number all to get desirable qualities for educational purposes. SNS makes it easy and quick to access, review, update and change learning materials any time and everywhere (Cheong, 2002) and allows students and teachers to select desirable materials from large quantity of course offered on online.It allows easy distribution of learning materials and reduces var. and increases satisfaction among students. It gives students opportunity to study at their own self-pace and allow them to join bulletin board discussion any time while visit classmates and instructors remotely in chat room. It overcomes the limitations of space and time in education and allows accessibility of available materials in their sites and also helps to resolves time table conflicts (Zaidieh, 2012).The major challenges of SNS in education sector including lack of privacy, miscommunication and taking up times. secrecy is the major obstacles of SNS in education. Nissenbaum, (2004) described privacy as the contextual law wh ich refers to the rules of appropriateness, in confines of the nature and figures of information roughly different individuals within a given context, that is allowed, expected, or demanded to be revealed, and the rules of distribution, in confines of the movement, or transfer from one person to some other. It simply means that in social network interaction individuals have expectations concerning what information is deem appropriate to collect and circulate. Thus, specific types of information are appropriate for sharing among a certain groups of friends but may not be replete(p) to liberal to other social network users outside that group (Pai and Arnott, 2012). Its users express concern almost privacy of their personal information and are well-nigh vigilant about safeguarding it (Dwyer et al., 2007). In social network site (SNS), people have lots of friends and the quality and integrity of these friendship are always in headspring because they are not always 100% honest a nd reliable and cannot in truth verify personal details (age and location) of their members. It also allows accurate and positive self-profile that can be potentially abused by the openness (Zaidieh, 2012).Miscommunication In most cases, learner (students) face difficulties in expressing their ideas and views in writing as most of them prefer to express their ideas and views orally, the approach they are used to for many years of their studies. Face-to-face allows one individuals to perceive physical clues like tones, reflection, body lecture in an online environment (Zaidieh, 2012).Taking up timeSocial network users spent much time in Internet, and more time online for their studies and works. Most times this causes lack of motivation towards learning and can be worldly sitting in front of a computer for a very long time especially when the learning materials presented is supererogatory of audio and visual effects that can attract learner towards learning (Zaidieh, 2012). Lenha rt et al., (2010) reported that one- half of the users are idled online for hours from time to time. This finding suggested that the more online time, the more SNS users, took their toll on information consumption through the social network platforms. According to Zhong et al., (2011), more than half of the social network users stated that reading information and watching videos online gave them short time for using non-SNS materials, such as broadcast and printed documents, indicating a move in trend of information from non-SNS to SNS, especially among students.Many researchers find that students spend several hours in a day attending to different social network sites even during lectures and library sessions thus creating distractions and reducing the time to focus on their studies. For example, in the lecture or library, most students entrust their mobile phone on and silently chat on the social network sites and when the lecturer sets an examination, with high expectation of g ood grades majority of the students will not do well. This scenario is ominous for both the students involved and the society at large. If this situation is not put under control, it will affect the students focus towards academics and possibly increase the number of students dropping out of school.Pempek, et al., (2009) studied College Students social networking experiences on Facebook using 92 scholars. The study revealed that the students spend minimum of 1 hr. on daily bases with social network. The researchers reported that students spend more time reading the contents from their friends responses, uploading pictures and to keep in touch with friends.Other researchers however, observed that there is no relationship between time spent on the use of social network and students academic performance. Hunley et al., (2005) opined that there is no significant between the time spent on the social networks and the Grade foreland Average (GPA) of students. This finding is in agreement with Kolek and Saunders (2008) which observed that social network usage and the GPA of Users have no relationship. On the other hand, Verden Boogart, (2006), reported that social network users have lower GPAs more than non-users. This finding correlates with the report by Flad (2010) that 32% out of 35% of the students that use social network have poor academic performance, and concluded that social network is good for students socialisation but negatively impact on their academic performance.Barratt et al., (2009), observed that many students log onto Facebook many times in a day, thus spending valuable time, if spent on their studies would lead to excellent academic performance. It is necessary to examine whether or not social network familiarity by students improves their academic works and social behaviour.How Social network Improves learning style?In the world today, higher institutions explore emerging technologies such as social network sites as a new or improved tool to enh ance teaching and learning. Social network sites support student, and boost the integration in the higher education classes. Even though the infrastructures to support social network presently exist in most universities, instructors are slow in adapting to the tools as an educational one. Recently, Sadaf et al., (2012) studied pre- go teachers beliefs about their intent to use social network in their future classrooms. The results opined that half (51%) were committed to the new technology as an instructional tool because it increases student engagement. Brady et al., (2010) studied the use of social network at sum Carolina evince University. Seventy percent concord with the notion that SNS made communication skill possible between peers than a comparable face-to-face class. Nearly (82%) indicated that SNS help them pass away outside the class as well. Most users (74%) also agreed that SNS allows them to reflect and comments on other peoples work more effectively than a face-to- face class.In addition, Ajjan and Hartshorne, (2008), reported that Social network sites are viewed as reclaimable tools to improve students satisfaction (32%) and also change magnitude student-student interaction (56%). For instance, SNS enables scholars and teachers to breathe current in their research areas, and also to explore recent approaches to teaching through networking with colleagues, interacting with different individuals, discussing their research/or work, and also expose their work or research future(a) to greater audiences. For example scholars use SNS such as blogs to support their scholarly endeavours. Researchers have identified that blogs are used i) as a debate platform for scholars who seeks a live public intellectuals, (ii) for recording or sharing logs of pure research, (iii) as a type of tongue-in-cheek i.e water cooler to which analytical discussions of only scholarly experience can occur (Kirkup, 2010). Blog usage extends beyond research to implicate t eaching endeavours (Deng and Yuen, 2011). Cho et al., 2007 reported that early Twitter users used Twitter for making instructional information and provide students with opportunities to communicate with professional communities outside the classroom. upcoming usage of social networkIn the past few years, social network sites have attracted the interest of researchers which examine the role this technology plays in higher education. Few of the work have showed the affective outcomes of social network site integration. Some of the studies examined learning outcomes and students achievement as related to the educational usage of social sites in college courses. King et al., (2009) described the recent development of an inter-professional team work in the healthcare field that shows how to integrate social networking. The researchers stated that in future integration of an educationally structured social network sites will facilitated growth toward the concept of effective communication which will overcome barrier of distance in learning.Some researchers have also reported that in future social network sites could foster erudition that is social (Chong, 2010 Greenhow, 2009), conversational and open (Oblinger, 2010 Pearce et al., 2010). Social scholarship is the practice in which the use of social tools is an integral part of the research and publishing go that is characterised by openness, fast conversation, and collaboration, accessible, sharing, cheaper and transparent revision (Pearce et al., 2010). Social network sites which provide digital scholarship is more than just using information technologies and communication skill to research for materials teach students and collaborate with other, but also to deal the open values, ideologies and potentials of technologies essential for peer-to-peer networking and also a way of working in order to profit both the academic work and society at large.Picking up the mantle, Greenhow et al., (2009) suggested that today s student experienced different online identities due to new digital technologies at hand (for example role playing sites, and realistic worlds). They opined that this new development presents a fundamental shift from the non-SNS to SNS and concluded that in future learners participation will be evidenced by inter-connections, content creation and participation attitudes in and out of the classroom.QUESTIONNAIRESA modified questionnaire shaft designed will be used in other to fare at a general perception as regards to students whim to the use social networks, behaviour to academic pursuit and social behaviour (Goodson et al., 2005 Pascarella et al., 2009).Considering the advantages of the vicenary approach, the researcher uses questionnaires to get many responses on the students behaviour towards the use social networks during classes and library sessions. There are 18 questions designed to elicit the participants opinion on the use of social network during classes and library sessions, social behaviour and time spent using social networks.Figure 1. Basic model of social behaviour and academic performance of students using social network (Adapted from Paul et al., 2012)The questionnaires measuring each of the following constructs time spent on social network, predictors of behaviour, time considerment skills, academic competency, attention Span, student characteristics and academic performance were developed from literature and discussions with supervisor. For example, questions that best describe the factors which explain studentsonline networking behaviour were adopted from Cameron, (2010). Questionnaires that are related to factors such as academic competency, teaching on GPA, time management skills, study strategies, student characteristics, etc. are adopted from Mizerski and Pettigrew, (2003) Sansqiry et al., (2004) Paul et al., (2012).The questionnaire adopted five point Likert scale of strongly Agree, Agree, Undecided, Disagree, Strongly Disagre e (Ary et al., 2000). The adaptation of this method is to provide correct and simple grammar in other to achieve the research objectives and also provide answers to the research questions.CATEGORIES OF SOCIAL NETWORK SITESThere are many social network sites that exist today. The most popular sites such as Facebook, MySpace, Twitter, and LinkedIn are free registration. All that is required from the prospective users is to provide their profile picture. Social network sites have several categories which are available in the World wide of the mark sack (WWW) (Brown, 2011). Social network categories are the class given to a large groups based on certain functions, features, forms and meaning. Each of the social network categories has their specific focus and functions but all have common characteristics. They have features such blogs, videos, records of members, journal and many more (Othman et al., 2011). Thelwall (2009), reported that social network tools have deuce-ace main categ ories as regards to friendship connections, (Fig1.2). The first syndicate social network is for social communication among members. Facebook, MySpace, twitter, etc. have this feature. house two, with LinkedIn as example aims at searching for new come homes. Category three is the social navigation network through which specific types of information or resources can be obtained.Figure 1.2 shows about 22 categories available in social network like discussion, education, and library. Most of the website falls into more than one category such as MySpace which can be categories into medical specialty and friendship category.FacebookFacebook was originally introduced in 2004 as an online Harvard social network site which allows students livelihood on University residential halls or students from other faculties of the University to register as users and communicate with their fellow students (Zywicas and Danowski, 2008). In 2006, Facebook was made public for everybody (Urista et al., 2009) and in December 2006 it had over 12 million users and at the end of December 2009, the active users increased to 350 million (Hew, 2011). Today Facebook is the most populated social network site in the majority of the countries with more than 400 Million users. In March 2011, Europe had the highest number of Facebook users 234.6 million followed by 163.9 million in North America (Karpinski et al., 2012).Facebook is a social network site in which individuals or groups can share photographs, personal information, and communicate with friends (Hew, 2011). Facebook is also considered as the leading social network site used among college students. For example, Ellison et al., (2007) reported that in USA, 90% of the Undergraduate students Participate on Facebook. In British undergrad students, Facebook has also become the most popular SNS used (Madge et al., 2009).Munoz and Towner, (2009) suggested that Facebook can have positive impact on college students life, and further stated that students can use Facebook to communicate with other students concerning their assignments, group work or project, or teachers communicating their students regarding useful information on a specific course links.On the other hand, researchers have shown concern in regards to possible negative impacts of Facebook usage among college students. For example, Kirschner and Karpinski, (2010) reported that students spending hours on Facebook may adversely affect their academic performance.Facebook profile can be classified into four main groups i) control elements, ii) referents elements, iii) resource elements, iv) contact elements. Control elements are fields like the gender of the user, distance/period of Facebook membership, and their institutional side. Referents elements include hometown, residence and high school which are based on profile fields or common points of contact among the users. Preference elements are simply based on expression of personal interest and self-descr iptive information of the user. For example, About Me, my interests, my favourite Music, favourite movies, favourite TV-shows, favourite books, favourite quotes, and my political views. Contact elements are profile fields such as e-mail address, instant messenger screen name, and the relationship status (Cain, 2008 Lampe et al., 2007).Facebook users can also create groups and become a fan of a peculiar(prenominal) pageboy of their interest plaque such as football game clubs, and celebrities thus allowing users with common goal to get together and support the organization or the celebrity. Facebook also serve as sources of entertainment because of the availability of games and other applications. Examples of such games and applications are Crazy Taxi, My Fairyland, and Facebook for iPhone (Hew, 2011).MYSPACEMySpace is one of the popular social networks sites in the world today. It was launched in California in 2003 to compete with other networks like Friendster and Xanga etc (An derson, 2007). It grew rapidly by taking advantage of Friendsters mistake and failure. According to Anderson, (2007) Indie-rock bands that were expelled from Friendster because of profile problems moved to MySpace network and began to attract users. There were several advertisements by most popular clubs in MySpace. It is believed that music was not only the key cut down that attracted users of MySpace but rather there were symbiotic association between music bands and fans that helped to expand MySpace beyond expectation.MySpace is unique because it allows addition of features based on the users interest (Boyd, 2006). Boyd said that teenagers started using MySpace in 2004 to connect to their friends and not just for the background that they belong to the bands. MySpace site achieved its highest growth rates with three different groups, namely, the musicians, teenagers and undergraduate students.Among SNS, MySpace gives greater self-expression than the popular Facebook and Twitter . It allows the users to customize their virtual space through an open format in which the designed elements, like text, video, music, graphics and photographs can be used to display their users online personality. With this feature users can create self-image that can be communicated to the mass audience. MySpace also gives the users more anonymity by providing the option of using a nickname. (Kane, 2008 Boyle and Johnson, 2010).TwitterTwitter is a free social network site and micro blogging service which enables the users to read and post short text-based message that is not more than one hundred forty words, called tweets. Some people tweet with micro-blog platform, while others regard it as a social networking site (Bake, 2009). A Web service which allows people to post brief messages to other users of the same service is micro-blogging. It derived its feature from Instant Relay Chat (IRC) including instant messaging and handsets.According to Bake (2009), Twitter is one of the s ocial network web-based applications that allow its users to build their own profile either publicly or semi-publicly. Twitter uses the tiny basic features like find people profile and uploading pictures on profile etc. The traditional contacts in twitter are followers and following categories. Twitter does not belong to only SNSs socializing category but also to networking with navigation, (Thelwall, 2007).This network allows you to follow users (following) and also followed by other users (followers) without any authorization. Messages sent are automatically published on the front page of the users (timeline) (Torreente et al., 2012). Any user may reply or retweet any tweet, which can generate public debate and conversation. Links can also be added to the tweets in order to create additional information beyond the 140 words.Some key potentials of Twitter are that it is a window to the innumerable source of information and can be regarded multi-focal. It gives the opportunity to create lists of manage tweets by themes, authors and tags which helps users to manage the information and also easier to follow a particular topic. It is an ideal tool to disseminate information and to broadcast live events such as conferences, and any event worldwide. Twitter is fast and viral i.e. anyone can tweet and the spread of information can be unstoppable. One of the features of Twitter is the ability to include links which makes it easier to move from particular content to another (Torreente et al., 2012).Influence of social network on social behaviour of studentsSocial behaviour is a kind of influence from specific group of people which may positively or negatively affec

The marketing activities of nestle

The trade activities of nose1. INTRODUCTIONIn this report we argon elbow greaseing to investigate and analyse the market activities of NESTLE. We lease analysed the marketing strategies of nestle by identification of the Organisation Orientation, go throughing the bear on of the Marketing shuffle, SWOT comp end and Competitive Advantage.1.1 HISTORY OF NESTLE cling to is sensation of the major food and beverages fraternity in the world. It was established in 1867 by Henry snuggle, who was a trained pharmacist. The introduction of the company in the market was through the exploitation of an alternative source of infant victuals for mothers who were unable to breast feed and named it as Farine Lactee go up. He chose his surname come on which means a little nest for his companys name logo.In 1904 hold tight introduced its chocolates in the market. But when the availability of raw materials skipd during the First terra firma state of war, nest purchased lot of pe rformeries in U.S and amplificationd their intersection to tw grump as their pre-war end crosswayion. Immediately, after the end of the war consumers switched back their choice to fresh take out due to which snuggle recorded its first loss. However they stream edged their operations and brought harvest-tideion in line with gross gross revenue and thereby dropping the debts.The thirty-something saw come on introducing several(prenominal) freshly returns like Milo and Nescafe. clutch achieved considerable emergence after the end of Second World War becaexercising of diversification within the food sector. The gross sales of Nescafe instant c completeee quadrupled in the midst of 1960 and 1974.In 1980s hold tight drew flak from many organizations on account of promotion of infant formula over breast feeding which wholly(prenominal)egedly led to death of infants in less civilizeed countries. The ostracise of Nestle harvestings was suspended in 1984 after Nestle agr eed to surveil with the international code.Nestle had major acquisitions of the Italian mineral water company San Pellegrino, Spillers Pet Foods in UK in the year 1990s, and Ralston Purina in 2002. Nestle likewise formed a merger with Anglo-Swiss Condensed Milk guild with the force back of rig its improver range and merged its ice cream byplay with Dreyers in U.S.Since its entrance in the market, Nestle has prospered in various reaping innovations and air achievements due to which it had become the major Food and Nutrition Company in the world. In 2010, Nestle was excessively recognised as the top quaternary Innovative Company among the Innovative companies for food for by the Fast Company Magazine.Nestle has introduced a wide range of harvest-tides like chocolates, soups, coffee, cereals, frozen mathematical crossroads, yoghurts, mineral water, food harvestings, pet foods, pharmaceutical increases and even cosmetics in the family of NESTLE. They diversified beyond f ood indus label by acquiring a major destiny in LOral cosmetics and acquired an Ameri provoke pharmaceutical company, Alcon Industries. In every(prenominal) these overlaps one common outcome is the high up tint of NESTLE.There be several important rules in the companys scheme. Few of them are mentioned belowWhile sustaining a balance in terrestrial activities and harvesting lines, the firms goods are grown through innovation and restoration.The priority is revealn to Long-term prospective rather than to short performance.The aim is to deliver the best and most reliable harvest-times to pot2. bulge outment predilectionThere are contrary types of business tastes2.1 PRODUCTION ORIENTATIONBrassington Pettitt (200612-19) believe that product orientation emphasizes on availability and affordability of the products and thus production oriented companies concentrate on good production and scattering techniques. jobber (2001 4) says that production oriented focal poin t believes in attaining economies of scale as their primary coil goal by producing and a small range of products or defining business by its production facilities. In production orientation their devote out focus is on their real capabilities of production.2.2 PRODUCT ORIENTATION agree to Adcock et, al. (200117) product orientation is punishing on products rather than involve and wants of customers. Companies side by side(p) product orientation are beguileed in the tone of voice, design of products which deport greater value for money. Brassington Pettitt (200612-19) say that these companies assume that the customers are interested in the products and that they are interested in the quality.2.3 gross sales ORIENTATION fit in to Brassington Pettitt (200612-19) sales oriented organizations believes that the products are sold, not bought. They emphasize on personal exchange and other sales techniques, assuming that the consumers are reluctant to purchase. Adcock say that sales orientation concentrates on promoting the products and that this is effective wholly for short metre period.2.4 Marketing OrientationAdcock (2001) says that market orientation occurs when the customers identify the difference in a company and when all the benefits offered to the customers are measured. fit to Jobber (2001) marketing oriented companies focus on the customer needs and for them the opportunities arise from the changing needs of the customers or market.Brassington Pettitt (200612-19) believe that an organization which is concentrated in its marketing and production activities with the understanding of the customer needs and satisfaction is market oriented. The main utility of a company being market oriented is that it would ready a higher customer value and there would be a conformity in superior performance in the business.Nestle concentrates on their consumers and tries to understand their carnal and emotional desires. They admit a wide range of produc ts and consumed by all age groups. Nestle try to understand the economic, geographic and sociable factors which affects the diets of the consumers and try to concentrate on the nutritional and health value of the products. exercise Nestle have used their research and technological expertise to their ice cream products to lower the calories and fats and yet to have the same taste (http//www.nestle.co.uk/our nocks/productrange/icecream/). They have in any subject introduced lucre free products in their confectioneries like Polo and lower sugar products like Kit Kat Light.Nestle in any case have concentrated on the lower-income consumers and do their products available at affordable prices while providing a diet compensating the local dietary deficiencies and including relevant nutrition.Nestle also try to understand the motivatings, routines, decision fashioning and purchase habits of the customers by spending while with the great deal. Example Nestle employees spent three days living with people in suburbs of Lima in PERU to understand their anyday aspects of their life, and based on their understanding they sold relevant products in the local markets and stalls (http//www.nestle.com/Resource.axd?Id=602C42FE-04D6-4669-BEE1-1027492FE5E8). other example of Nestls consumer focus the launch of Jenny Craigs weight care programme in France on 8th surround 2010 (Press Release 2010, http//www.nestle.com/MediaCenter/PressReleases/AllPressReleases/Jenny_Craig_launch_in+Euro pe.htm? curb=2010) and they offer menus and lifestyle advise in reaction to individual consumer needs. gum olibanum its clear that Nestle is a Market Oriented company since they try to understand the customer or market needs and produce products therefore to achieve the organizations goals. And they believe that people are the main strength of the company. gibe to Narver and Slater (1990) marketing orientation comprises of three main components Customer, Competitor, and inter-functional coordination. Customer orientation includes all the aspects of buyers in the designated area and competitor orientation includes the information astir(predicate) the competitors in the targeted area whereas inter-functional coordination involves the delivery of superior value for the target customers by the efficient use of available resources.3. MARKETING MIXThe Marketing desegregate is a set of controllable, tactical marketing legal instruments that the firm blends to produce the chemical reaction it wants in the target market (Armstrong and Kotler, 2001). This is primarily used by faces to increase the get hold of of their products in the market by understanding the customer wants. close to of the marketing practitioners regard marketing mix as a tool as a tool for transaction marketing and the archetype for practicable marketing planningThe above fig describes how a company could by research and self- do adaptation empennage understand and develop products to grab the customers requirements. According to Baker (1999 303), by understanding and matching the needs of the customers efficient management of marketing mix is possible.3.2 COMPONENTS OF MARKETING MIX Impact, Positive and damaging3.2.1 PRODUCTKotler and Armstrong (2001) define a product as any entity that endure be offered to a market by a company for attention, acquisition, use or consumption that might satisfy the needs of their customers.3.2.1.1. harvest MixProduct mix is the total range of products that are manufactured by a company. The major aspects to be considered in product mix are explained below.Research on the reciprocal effects of brand extensions suggests that failure, poor quality, or low typicality of an extension has an adverse effect on the parent brand evaluations (Kumar, 2005183). In the case of Nestle, the sales of noodles dropped after it introduced Atta noodles in 1996 as the consumer response was adverse.A Nestle brand name on a product is a promise to the custo mer that it is safe to consume, that it complies with all regulations and that it meets high standards of qualityPackaging Packaging involves designing and developing a cover for a product in order to make it attractive to the consumers. Packaging was just a means for protecting the product in the past, but at present increase in competition has resulted in the need to divers(prenominal)iate the product from those of its competitors to attract the customers and to describe the features of the product in order to gain consumer recognition. hapless designs can be one of the reasons for decrease in sales of a product due to less customer satisfaction. Nestle uses very attractive incase as one of their main marketing strategies.For its efforts, Nestle has won several accolades such as the Silver Star and Best in category as Best Packaging Innovation leading to a significant reduction in household waste by the British Institute of Packaging for the Dairy Box biodegradable tray whi ch is manufactured by using re unexampledable resources.3.2.1.2. Product offshoot StrategiesThe emphasis in product portfolio analysis is on managing an real set of products in such a way as to maximise their strengths, but companies also need to case to bran-new products and markets for future growth (Jobber 2007405).The most efficient way for analysing the opportunities for growth in an organization is the Ansoff Matrix.3.2.1.3. Market PenetrationMarket penetration is the form of increasing its customer base in the living market by winning over the customer base of its competitors for get along growth by means of advertisements, promotion, price cutting, divergentiation and seeking new segments.This can be achieved by acquisitions in the case of Nestle, when it acquired Kit Kat from Rowntree in 1988 (http//www.thetimes100.co.uk/case-studykit-kat-revitalising-brand-leader7-52-2.php) and kraft paper Foods frozen pizza business in March 2010 (http//www.nestle.com/MediaCenter/ PressReleases/AllPressReleases/Kraft+pizzas.htm). Nestle became the 2009 processor of the year by growing sales in Nestles SAs operations in the various operations through growth and acquisitions.3.2.1.4. Product nurtureProduct using involves the development of new product ranges for an already existing market for further growth. One way of product development is replacement the old product with a newer magnetic variation. Another means of achieving this is to expand its product line thereby providing more choices to the customers.Nestle has opened a world-wide Research and Development Centre in January 2010 for developing a new propagation of Cereal based snacks and Biscuits3.2.1.5. Market DevelopmentMarket development entails the promotion of new uses of existing products to new customers or the marketing of existing products (and their current uses) to new market segments.Nestle has launched the Jenny Craig weight management programme which is an existing business for the p ast 10 years in the United States, Australia, Canada and New Zealand to the new market in France in March 2010.3.2.1.6. DiversificationDiversification can be achieved either with related products and markets or unrelated products that are totally unconnected with the existing products and markets.Nestls Product Diversification is clearly evident from its product portfolio where they have pet foods which are different from the other products.3.2.1.7. New Product DevelopmentDevelopment of new products is vital for the sustenance of any organization as it is essential for their growth. In order to develop a successful product, a company must(prenominal) have an understanding of its customers, the markets in which they operate and its competitors. The figure below shows the key steps involved in a new product development process.Idea GenerationThe new product development cycle starts with the agentration of an bringing close together of the product. The major sources of new product imaginations may be familiar sources such as the research and development team of the company or external sources like competitors, brainstorming sessions for customers, the suppliers and distributors of the company etc. who can all act as sources of ideas for the organization.Idea ScreeningThis leg involves the careful scrutinizing of the ideas from idea generation stage to select the good ones and drop others by evaluating them against definite general criteria.Concept Development and TestingIn this stage a concept of the screened idea is developed. A product concept is the comprehensive version of the idea stated in meaningful consumer terms (Armstrong and Kotler 2001269). Concept scrutiny involves the evaluation of the performance of the product concept by presenting it to the consumers.Marketing outline DevelopmentThis stage involves the development of a primary marketing strategy based on the product concept before introducing the product into the market. vocation Analysi sThis stage comprises of an analysis of the sales, costs and the projection of profits for the new product to find out whether it satisfies the needs of the company. If it does, then the product moves on to the next stage.Product DevelopmentIf the product satisfactorily passes the business analysis then it is sent for product development which involves the development of a physical product by the research and development wing of the company. Then this product may undergo rigorous testing to ensure the safety and power of the product.Test MarketingIn this stage, the product developed is introduced into a practical(prenominal) market segment. Test marketing lets the company test the product and its intact marketing programme- targeting and set strategy, populaceise, diffusion, determine, branding and packaging and budget levels.commercializationCommercialization of the product involves the introduction of the product into the market. The major factors to be considered in this s tage are the timing of launching of the product and the choice of markets to introduce the product.Nestle has been at the forefront of developing new customer- centric health products and their researches are aligned with consumer and business needs. For example, Nestle has made the vital breakthrough in Nutrigenomics, a study of effects of food and the constituents of food on gene expression. The researches in the field have enabled Nestle to achieve targets for developing a diet to manage canine osteoarthritis in an improved manner.3.2.1.8. sp refineliness Cycle of a ProductThe life cycle of a product consists of four stagesProduct developmentProduct introductionGrowth due dateDeclineProduct development stage starts with the generation of an idea for a new product by the company. Product introduction is the phase where the product is introduced into the market. For example, consider the case of Maggi noodles. Nestle India Ltd. (NIL) introduced Maggi noodles in India in 1982. With its introduction, NIL created an all in all new food category instant noodles in Indian market. Nestle attained the market leadership with this product in its category because of its uniqueness.Maggi NoodlesGrowth stage involves the period of the product being accepted by the customers and increase in profits of the company. The introduction of a new product can alter the structure of the market by creating new benefits (Shocker, Bayus, Kim 200429). At the time of its introduction in India, Maggi noodles enjoyed around 50 percent market package in its segment. Maturity stage is denoted by a fall in sales growth of the product. The profit also falls due to increase expenses incurred for marketing the product efficiently against its competitors. Decline is the stage where the sales of the product decreases and the profits fall drastically. In 1990s, Maggi faced a decline in sales owing to the increase in popularity of its competitors. It was also because of the change in formula of Maggi noodles. NIL reinstated the old formula in 1999 and also launched soups and grooming aids under Maggi Brand name after which the sales increase3.2.2. PROMOTIONStanton and Futrell (1987418), describe promotion as an important element of marketing mix which aims in informing and persuading the market about the products and services of the company.According to Baker (1999, 310) the mode of communicating the product offer which is made by a company to match the needs of the customers and to persuade them to try the product is Promotion. They feel that the significance of promotion increases when the distance between the producers and customers increase and as the arrive of customers increase. Promotion activity does not front on the demand even if the demand is high promotional activities should go on in order to keep the manufacturers name before the customers.Nestle uses promotion as one of the major source to reach their customers to make them aware of the different product s introduced in the market and the value of the products introduced.Promotion Mix according to Armstrong and Kotler (2001387) also called as marketing communication mix consists of all the promotion tools in a perfect blend which an organisation uses to promote its products.Nestle ad favors a promotion mix with a perfect blend of several different promotion tools to promote the value of its product and make the customers aware of their different products.3.2.2.1. Promotion ToolsPERSONAL SELLINGAccording to Stanton and Futrell (1987 418), personal selling is in the first place used when the market is geographically concentrated (Few customers) and when the products are custom made. It is define as a face to face communication with buyers in the aim of pursuing the customers to purchase by Simon(). Its a one to one marketing. Tele marketing, admittance drops inserts, Door to door selling are all techniques used in personal selling. advertAdvertising according to Groucutt (2005215) is to communicate to a peculiar(prenominal) audience to stimulate action and its success is in the way the right information reaches the right person at the right time. Majaro (1993) say that advertize is any paid form f non-personal communication of products, services or ideas through a commercial media. (Stanton and Futrell, 1987) Promotion through advertising is mainly done when the market is geographically dispersed or when the product is standardised.Nestls advertisements are puff up known in the market and they have made sure that the advertisements are attractive through all the possible media. lucre is one of the latest media used by nestle to promote their products, where they have different websites hosted for different products. Different strategies for each product like online competitions and distribution.HOW ADVERTISING WORKSTim Ambler and Demetrios Vakratsas have formulated a framework for studying how advertising works for a company.They have considered the inpu t to be advertising own and rivalrous brands. Scheduling the media and message contents are the motivation factors or triggers the consumers response. Cognition, the thinking dimension of a persons response, and affect, the feeling dimension, are portray as two major intermediate advertising effects (Ambler, Vakratsas, 199926)SALES PROMOTIONSales promotion represents non- media campaigns such as sampling displays, shows, exhibitions and contests (Majaro, 199335). Stanton and Futrell (1987418) believes that sales promotions one of the fastest growing promotional methods these days. Free samples, Money off coupons, extra value offers buy one get one free, bundling, perquisite points are all different methods used in sales promotion. Nestle also uses sales promotion as one of their promotion tools by offering programmes like every day eating coupon codes and discounts and offers for online obtain on nestle products.PUBLICITYPublicity is a promotional method where the organisation is not paying for the communication about its products and is benefiting from it (Stanton and Futrell 1987419). This occurs either through a non-personal news story appearing in a destiny medium or is delivered by a person in an consultation or a speech. Publicity is achieved mainly through public dealing activities. According to Jobber (2007) sponsorship provides more opportunities for publicity in the media.Nestle is a well known brand in the market and its fame describes its publicity and the further publicity occurs during various interviews of officials of nestle. Publicity for nestle also occurs during the launch of every new products and when the annual sale reports are published. This publicity obtained by nestle is not by paying any of the media.PUBLIC RELATIONS According to Groucutt (2005224) public relations is a means of communication used by organisations to deal flat with the customers and vice versa. There are different departments in organisations which deal with a ll issues or concerns of the company with any other organisation or individuals.Nestle, public relation activities is evident from how they try to communicate with judicature organisations as well as the customers about the different issues that they face. Through public relations nestle try to bring to the attention of all the customers and organisations interested about the various issues or concerns and the current approach they are pickings towards these concerns.3.2.3. PRICEPrice is defined as the value of a product that we get in return for all the effort that was taken for its production and also for marketing of the same product. Price is the revenue earner so it is considered as the odd one in the marketing mix. It is also considered as an important market tool which is visible to both customers and competitors (Baker 1985). The price of a product depends on a number of factors like, changes in technology, effect of suppliers, competitive pressure and the increasing price sensitivity of the customers. Price is also directly dependent on the demand of the product. If the demands increase the price will also increase and vice versa.Consumers generally show a keen interest in tracking the prices of the products which they usually purchase. This enables them to analyse the attractiveness of the product and be vigilant about the changes in price of the product, thus enabling them to comparability the prices of the product in various stores (Vanhuele and Dreze 200272)3.2.3.1. Pricing of the ProductCompanies usually do not set a single price, but rather develop a determine structure that reflects variations in geographical demand and costs, market-segment requirements, purchasing timing, order levels, delivery frequency, guarantees, service contract, and other factors (Kotler, Keller, Brady, Goodman and Hansen 2009). According to David Jobber, set of a product mainly depends on 3 factors cost, competitor and the market.COST point determineThe most comm on method of pricing of a product is cost oriented pricing, in which it is divided into full cost pricing which involves the calculating of cost of all labour and materials and direct cost pricing which involves the calculation of only those costs that are likely to rise as output increases.COMPETITOR ORIENTED PRICINGThe approach to pricing which only depends on the competitor rather than costs when framing a business is called competitor oriented pricing. Every consumer will judge the price of a product by comparing it with a similar product in the same range which is produced by their competitor (Kotler, Armstrong, Saunders and Wong 2001).MARKET ORIENTED PRICINGMarket oriented pricing is one of the important area which depends on competiveness of a product in the market. For a new product the positioning strategy controls the pricing and for an existing product price will depend on the strategic objectives.3.2.3.2. Price-Quality RelationshipsPrice is directly dependent on the qual ity of the product. As the quality of a product increases the price also goes up. Nestle is a quality focused company and hence to compete with current market it need to carry out the pricing process of the product very carefully. Nestle is a very successful company and all its products are at affordable prices.PRODUCT LINE PRICING just about of the companies usually develop product lines rather than single products. In product line pricing the management must decide on the pricing steps to set between various products in a line (Kotler, Armstrong, Saunders and Wong 2001). In product line pricing, cost difference between the product in the line, evaluation of customers and also the competitors products with small price difference is also taken in to account.EXPLICABILITYExplicability is defined as the capability of sales people to explain a high price to customer. In market customer demands the economic justification of product prices. If the sales people fail to give a clear idea o f the product development stages, it will reduce the value of product. As Nestle is very innovative it needs a high financial support for its RD and it is not easy to give idea about the product development costs to an ordinary customer.COMPETITION aspiration plays an important role in the cost consideration of a product in a business. The main competitors of Nestle are Heinz, Kraft, ConAgra, Mars Incorporated, Hershey, Cadbury, public mills etc. Since all their main competitors are also well branded, they cannot price a product without analysing the competitors pricing. But the main advantages behind their successful pricing are that they are very superior in its market position.NEGOTIATING MARGINSIn certain market customer expects a price reduction in some products. Competitive discounts, fast payment discounts an annual bulk bonus and other promotional allowances come under this category. Nestle and its negotiations with its suppliers made them to gain a good reasonable margin in all its goods.EFFECT OF DISTRIBUTORS/RETAILERSWell qualified suppliers and efficient retailers is also a factor which affects the price of a product. If a distributor supplies a product with high price or a retailer sells a product in high margin it will cause the variations in price of the products. Nestle itself agreed that their distributors are well developed and hence the company can control the price of its products.POLITICAL FACTORSNestle sometimes blames the policies of governments for its poor manifestation on the exports. Some of the government policies which results in increase in packaging cost makes the product less competitive in the global exportation market.3.2.4. PLACEArmstrong and Kotler (2001) describes place as the activity of a company to make the products available to the customers.3.2.4.1. Place StrategiesThe major factors to be considered while formulating a place strategy are Channels, Coverage, Assortments, Locations, Inventory, Transportation, and Logi stics.Channel distribution strategies deal with the decisions on making the products available to the target customers in usable condition. A channel of distribution is the combination of institutions through which a seller markets the products to the user or eventual(prenominal) consumer (Peter, Donnelly 2004145). As the time and finances required for setting up a channel of distribution are comparatively high, the place strategies are ofttimes critical for the success of a firm.The channels of distribution can be of two different types on the basis of the targeted consumer. It may differ when the end user of the product is a consumer or an organization, the Consumer Marketing Channel and the line of work Marketing Channel.Nestle adopts the consumer marketing channel where the products from the producer reaches the consumer through the wholesalers or retailers. Nestle has e-marketing for some of its products where the products reach the consumers directly from the producer.Accord ing to Donnelly (2004150), the channel of distribution strategic decisions are determined on the basis of the following factors. dispersion coverage requiredDegree of control desiredTotal distribution costChannel flexibilityDistribution coverage may deepen based on the features of the product, the market and the target customers. The company may opt for intense distribution, selective distribution or scoop shovel distribution.In the case of intensive distribution, the company tries to sell the product through the maximum number of retailers and wholesalers. In selective distribution, the company may limit the number of wholesalers and retailers which are the best in that market while in the case of exclusive distribution the manufacturing company may provide exclusive rights for distributing the product to only one or a few distributors.Nestle has adopted intensive distribution strategy in order to make its products available to a large customer base. Nestle products are availabl e through a large number of retail outlets. Besides this, Nestle has also launched an e-shop for promoting its confectionary in Japan which allows the consumers to buy Kit Kat chocolates online.The coverage of Nestle is world-wide as it has a wide distribution channel and several manufacturi

Multinational Apparel Specialist Retailer Marketing Essay

Multinational App atomic number 18l Specialist Retailer Marketing analyzeHM Hennes Mauritz AB HM or the sort outing, founded in 1947 and headquartered in Stockholm, Sweden, is a multinational prune specialist seller and famous for its fast- port enclothe for men, women, teenagers and children (L benaudie, 2004). in like manner the ac conjunctions primary and eponymous chain of mountains, the group too ope order through cardinal free lance flaws Collection of Style (COS), Monki, Weekday, and Cheap Monday (HM, 2011a). Growing with the trade concept to cleft way and tincture at the crush expgoaliture, by the end of 2011, the group has gr take atomic number 53 of the largest world-wide snip sellers with battlefront in 43 foodstuffs and nearly 2500 lineages (HM, 2011a).HM operates at heart only a single part bargain of clothing and cosmetics (MarketLine, 2012), which locates the confederacy as a fast- means retailer in worldwide app atomic number 18l patien ce. High level of rivalry among competitors has been witnessed within the globular do industry. And the fluctuating damage of stark materials, unpredict might of bearing trends and profit demand of real beat update from consumers likewise pose challenges towards fashion retailers. However, HM, as one of the fast-fashion pioneers, has an outstanding and steady performance over the old age.There ar various factors contributing to HMs outstanding performance. Combined with the industrys fall upon success factors, it is inborn for a fashion retailer to balance toll efficiency with differentiation, arrest strong instigant-consciousness and orbicular expansion. Also, the continuously heated corporal brotherly tariff (CSR) spot remains the find to HMs success.Therefore, this dissertation aims to achieve three goalsTo crumple HMs performance ground on the global appargonl sell industrys key success factorsTo militantly examine HMs position against its competitors, especially Zara (Inditex Group)To electron orbit recommendations for the companys future(a) dodgeThis chapter serves as a general overview of the paper and aims to help readers with the signpost of thoughts in the dissertation. Chapter Two discusses literature review and methodology. Chapter Three focuses on abstract of global apparel retailing industry with volt Forces compendium, PESTLE compendium and key out Success Factors of the industry. Chapter Four is the main epitome of HM, starting based on four key success factors cost efficiency brand-consciousness global expansion and CSR, fol first baseed by competitive localisation of the company, financial analytic thinking, SWOT summary, and oddment with recommendations. Chapter Five is the conclusion of the dissertation.Due to individualised point of accumulation of know conductge and reach of resources, several parts of discussions in the dissertation could not be conducted in-depth. No right survey and entropy co llections get down been conducted ascribable to personal demarcation line of time and financial support. The dissertation is mainly based on figures and data collected from second-hand resources.Chapter 2 Literature critical review and MethodologyLiterature ReviewThis section serves as a theoretical support for the validity of the analysis of global apparel retailing industry in Chapter Three and analysis of HM in Chapter Four. fabrication analytic thinkingThe analysis of global apparel retailing industry is conducted with Five Forces Analysis (Chapter 3.2), PESTLE Analysis (Chapter 3.3) and learn Success Factors (Chapter 3.4).Five Forces Analysis developed by Michael Porter illustrates quin factors determining the level of competition and profitability within an industry (Grant, 2010). The exemplar is widely use in industry analysis and is conducted by analysing louvre sources of competitive pres true emptor agent, supplier power, modernistic entrants, substitutes, an d rivalry (Grant, 2010) (see learn 1). participate 1 Porters Five Forces framework (Grant, 2010)PESTLE Analysis is a framework to clarify and discuss the external macro-environment that affects an industry which stands for Political, Economic, Social, Techno coherent, Legal, and Environmental factors (Nejati et al, 2008).Key Success Factors of an industry is place by analysing the factors that help a unshakable survive and thrive within the grocery store environment (Grant, 2010). By analysing devil main criteria what do customers want and how does firm survive competition the shared out key elements of customer desire and the nature of rivalry could be identified (Grant, 2010) (see name 2) discover 2 Identifying Key Success Factors (Grant, 2010)Combining Five Forces Analysis with PESTLE Analysis, industry environment could be discussed in expatiate in Chapter Three. After the analysis of industry environment, key success factors impart be reached by the work to serve as the basis for company analysis in Chapter Four.Marketing fluxMarketing salmagundi model, also kn make as the 4Ps, is the combination of Price, yield, Promotion and blank, adopted by companies to explore their unequaled selling points (McCarthy, 1960) (see prefigure 3).Figure 3 Marketing Mix 4Ps (McCarthy, 1960)By employing merchandising mix model in Chapter 4.2, the unique grocery store combination of HM has been analysed.International output Life Cycle possiblenessThe overlap life bike (PLC) theory explains the basic growing of intersections and motivations for globalistic trade (Ajami Goddard, 2006). The theory describes four discrete stops in a product life cycle introduction, growing, maturity, and decline (Vernon, 1966) (see Figure 4).Figure 4 Product Life Cycle Theory (Vernon, 1966)The PLC theory has been widely adopted in analysis of international championship and trade (Ajami Goddard, 2006). In Chapter 4.2 and Chapter 4.4.1, the theory has been use in explaining HMs product and market select and entry in global expansion progress.Uppsala shamThe Uppsala Model suggests that a companys global expansion is a gradual serve up reliant on market association and additive decisions (Johanson and Vahlne, 1977 Frynas Mellahi, 2011). The theory is based on the assumption that firms expound globally with logical measures, based on the ga thered information from foreign markets, which will transcend to great involvement of market commitment to more than international crease activities (Johanson and Vahlne, 1977 Frynas Mellahi, 2011).The model is based on 2 steps. First, when starting foreign market selection and entry, firms normally start expanding to neighbouring countries or countries with menial psychic maintain (Frynas Mellahi, 2011). Then after gathering experiential market knowledge, the firm expand to foreign markets step by step (Frynas Mellahi, 2011).Figure 5 Uppsala Model (Frynas Mellahi, 2011)The Uppsala Model he lps understand a companys choice and plan in international market selection and mode of entry. In Chapter 4.4, Uppsala Model is employed to snap off illustrate the global expansion dodging of HM. somatic Social officeThe European Commission defines Corporate Social Responsibility asA concept whereby companies integrate complaisant and environmental concerns in their business trading operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001)The importances of CSR has been analysed by Porter and Kramer (2006) as succeedsFigure 6 Importance of Corporate Social Responsibility (Porter and Kramer, 2006)In Chapter 4.5, the theory has been employ to discuss and analyse HMs involvement in CSR activities and its effect.Market PositioningA firm terminate achieve its competitive advantages in either of two methods either it force out supply an identical product or service at a move cost or it can supply a product or service that is differentiated in such(prenominal) a focusing that the customer is willing to pay a price premium that exceeds the special cost of the differentiation (Grant, 2010), which defines two different climb upes to achieve competitive advantages cost flowership and differentiation.Combining the two approaches with the firms competitive scope either industry-wide or single constituent Michael Porter has defined generic strategies as follows (Grant, 2010) (Figure 7)Figure 7 Porters Generic Strategies (Porter, 1980)And a firm should focus on either one of the strategies above and avoid stuck in the middle (Porter, 1980).By delineate the firms strategy of achieving competitive advantages, the firm could be positioned in the market. Market positioning is about where you are located in the marketplace, largely as adjudicate by customers, compared to the rest (Piercy, 2009)In Chapter 4.6.1, the market positioning theory has been used to analyse HMs competitive position ing within the market and serve as basis to comparative analysis against its competitors.MethodologyAs to the methodology of this dissertation, phenomenological effigy is adopted due to the explanatory and descriptive nature of the analysis. Qualitative approach is implemented in the dissertation for that quantitative method requires the collection and interpreting of abundant accurate primary data to puff sure attain reliable conclusions, while the analysis of HM largely depends on thirdhand data and research group releases and third party opinions. Due to the limitation of my personal knowledge, move on research might be needed for more accurate information to be acquired.Chapter 3 Industry AnalysisHM operates within only a single segment sale of clothing and cosmetics (MarketLine, 2012), which locates the company as a fast-fashion retailer in global apparel industry. The following chapter examines the industry with an overview, Five Forces Analysis, PESTLE Analysis and the refore comes up with Key Success Factors of the industry.3.1 Industry OverviewThe apparel retail industry consists of the sale of menswear, womenswear, childrenswear, clothing accessories, hosiery and footwear within the global market including trade union America, South America, western Europe, Eastern Europe, MEA and Asia-Pacific (MarketLine, 2012).Figure 8 Industry Overview of spherical Apparel Industry (MarketLine, 2012)The global clothing retailing industry has witnessed cushion growth in recent years. In FY2011, the total revenue of the industry had reached $1175.4 billion, a 2.7% growth between FY2007 and FY2011 (Figure). In all categorical segments, the womenswear segment remained most profitable in FY2011, representing 51.1% of the total value of the industry (Euromonitor International, 2011).Figure 9 international Apparel Retail Industry Value world-wide Apparel Retail Industry Geography Segmentation (MarketLine, 2012)3.2 Five Forces AnalysisAs introduced in Chapter 2.1.1, the market will be analysed from five aspects emptor power, supplier power, substitutes, new entrants and degree of rivalry. The analysis will take single(a) consumers as key buyers, manufacturers and wholesalers as key suppliers, and other retailers as players.Figure 10 Forces driving competition in the global apparel retail industry (MarketLine, 2011)3.2.1 Buyer PowerIn global apparel retail industry, buyers are mostly individual consumers. As clothing has been recognised as symbols of fashion taste and social status, buyer power is weakened by heading patterns and branding of a retailer (Bhardwaj and Fairhurst, 2010). However, the low throw be of consumers strengthen buyer powers due to various choices on market. Furthermore, apparel retailers are at the end of the value chain. In a market where fashion trends change livelyly and unpredictably, they have to offer buyers as demanded. This enhances buyer power. Overall, buyer power in this industry is assessed as cha stise.3.2.2 Supplier Power study suppliers in the industry are clothing manufacturers and wholesalers, which are normally small to medium surfaced firms (MarketLine, 2011). In most countries, the supplier sector is come apart because of the absence of diversity among suppliers (MarketLine, 2011). And further fragmentation is made by the retailers ability to outsource from foreign countries, especially from low-wage and wear upon-intensive regions such as china and India (Deloitte, 2011). However, the law of national minimum wage in roughly countries raises the labour power of suppliers. So overall, supplier power is assessed as moderate.3.2.3 New Entrants condition growth has been witnessed in global apparel industry, making less race runed to the market. However, with low barriers to entry and low requirement to start up a business in the industry, there are laid-back possibilities for individuals to enter. And low switching costs for consumers and lack of variety in produc t differentiation in the market is beneficial for new entrants to compete. However, in some countries (e.g. the US) the market is major(ip)ly engaged by some large corporations from case economies and strong buyer power (MarketLine, 2011). Regulation in the industry has remained little but recently corporate social responsibility issues have been heated among consumers (Idowu Filho, 2008). These factors prove that new entrants are strong threats.3.2.4 SubstitutesThere are no substitutes for apparel. However, major substitute for retailing is to buy clothes directly from manufacturers (Zentes et al, 2011). This option is strengthened by the increase of online stores. Online shopping has been increasingly accepted by consumers (Peck et al, 2011). And by running online fashion stores, large amount of overhead could be avoided. There are until now niche substitutes like home-made and couture clothing, or second-hand clothing (MarketLine, 2011). However, substitute threats are assess ed as weak.3.2.5 Degree of RivalryThe global apparel clothing industry is considered as fragmented (Jones, 2006). There are large numbers of small size retailers with the same product differentiation. And with increasing number of retailers expanding products to accessories and other diversities, rivalry in the industry has been intensified. With a moderate growth and low requirement of market entry, a high degree of rivalry has been resulted.In conclusion, the global apparel retailing industry is fragmented with moderate growth, weak threat from substitutes, moderate buyer power and supplier power. Low barrier to entry and low requirement for entrants have resulted in strong threats of new entrants and further led to high degree of rivalry.3.3 PESTLE AnalysisAs discussed in Chapter 2.1.1, the macro-environment of the industry is analysed by PESTLE analysis regarding policy-making, economic, social, technological, legal and environmental aspects (Grant, 2010).PoliticalAs for globa l apparel retailers, legislations vary among different countries and areas (Cobra, 2011). Every retailer in the industry must follow government regulations regarding goods and labour (Graham Richardson, 1997). And the political stableness is also authoritative for fashion retailers as it would directly affect their gross gross gross revenue situation and asset safety (Aspers, 2010).EconomicFor fashion apparel retailers, economic trends are crucial for their strong impacts on consumer behaviours and purchasing powers. For example, in 2011, the global economic ceding back had negative effects on fashion retailers (Euromonitor International, 2011). Because consumers with lower disposable income regard clothing as functional item, while with high disposable income branding became important as a symbol of social status and fashion taste (MarketLine, 2012). Price fluctuation of raw materials cotton plant price for apparel retailers has significant impacts on the industry (MarketL ine, 2012). Interest rates also would affect gross sales and high interest rates entice to difficulties to trade overseas (Arnold, 2010). Moreover, currency situation is important as the exchange rate influences the value and trades of retailers (Browne, 2000).SocialIncreasing attentions from mankind have been focused on corporate social responsibilities (CSR) of apparel retailers, mainly regarding labour conditions, such as nurtureion of workers rights, maintaining safe working conditions, reasonable wage and no child labours (Idowu Filho, 2008). Also, for global fashion retailers, cultural differences between counties are crucial due to different fashion trends, consumer behaviours, or local customs.TechnologicalThe development of technology has enabled global apparel retailers with e-commerce and international trade more efficaciously (Euromonitor, 2011). And with the implementation of high technology, supply chain has changed significantly with global outsourcing, real-t ime update, and continuous renewal (Lopez and Fan, 2009). Moreover, online shopping has been increasingly accepted by consumers, which initiated a new channel for retailers to cut costs by less middlemen and no store rent (Peck et al, 2011).LawGlobal apparel retailers need to follow different government legislation regarding employment and production (Graham Richardson, 1997). For instance, in some countries, such as the UK, there is national minimum wage to protect employees rights (Low Pay Commission, 2011). And tariffs from international trade are also important for international retailers to abide by.EnvironmentalEnvironment protection has remained a heated issue among apparel retailing industry, especially issues like chemical restrictions and pollutions during production (Euromonitor International, 2011). It is also crucial for retailers to save energies and materials and wither environmental impacts during product life cycle (PLC) (Chapter 2.1.3).From the above analysis, g lobal apparel industry largely depends on political stability, government legislation, high-technology, public relations. And fluctuating price of source remains a major challenge to apparel retailers.3.4 Key Success FactorsAs introduced in Chapter 2.1.1, Key Success Factors of apparel retail industry is analysed with the Grant model by examining the demand and competition of the industry as followingFigure 11 Identifying Key Success Factors of Global Apparel Retailing Industry (Grant, 2010)Therefore, from the analysis above, for a global apparel retailer, cost efficiency is one of the crucial factors for that low cost hold ins profitability and efficiency indicates fast responding time to meet demand, allowing fashion and whole step at the best price (HMs business concept, HM, 2011a). Brand strategy also plays a key role in apparel retailers success as it facilitates customer loyalty. Differentiation of style in fashion industry positions the companys competitiveness and brand c atch in the market. Global expansion strategy of an apparel retailer is also essential as choices of global markets and international strategy decide retailers future development, global presence and even profitability (Deloitte, 2011). The continuously heated issue of corporate social responsibility also remains the key to companys brand image among public and future growth. It plays a vital role in companys success due to the heated social issue of environmental protection and labour conditions (Idowu Filho, 2008)In the following chapter, the company will be analysed starting based on key success factors to seek for unique interpretation of HMs performance.Chapter 4 Analysis of HMThis Chapter is mainly focuses on analysis of HM, starting by analysis based on four key success factors of the industry, followed by competitive positioning analysis, financial analysis, and SWOT analysis, and ended with recommendations.4.1 Operations StrategyHMs business concept is to offer fashion and quality and the best price (HM, 2011a). To make sure the company follows the lead-in fashion trends, quality of designing and lead time of distribution are important (Slack et al, 2010). And the offer of best price needs to rely on the basis that cost from each stage has been minimised.4.1.1 Reduction of CostsCost-consciousness at both stage remains the key to HMs operations (Zavrnik, 2007). To achieve the growth target with offering best price, HM has a professional buying team (HM, 2011a). The company ar reachs its buying activities fit in to decisions from design team (MarketLine, 2011). The buying team achieves lowest cost by purchasing in bulk with the right products from the right market (Zavrnik, 2007).With no factories itself, the company outsources its product manufacturing to approximately 700 suppliers, mostly in Asia and Europe (HM, 2011a). The manufacturing locations are divided by the level of fashion-sensitiveness the fashion-sensitive collections are normally man ufactured within Europe to cut the lead time while the cost-sensitive and sustainable collections are produced in Asia to allow the lowest possible price and achieve economies of scale (HM, 2011a).Furthermore, HM focuses on create long-term relationships with suppliers and manufacturers (HM, 2011a). HM does not own any factories (HM, 2011a), so quality control over the whole physical process might be a problem. Due to fast responses to fashion trend, there is usually not enough time to perform detailed quality control. Therefore the company has been involved in accusation of poor quality. So, dependable suppliers could not only provide HM with lowest price, but also ensure the quality of products from long-term cooperation and mutual understanding.Moreover, as a fast-fashion retailer, HM has lead time from weeks up to six months (HM, 2011a), which is slower than its strongest competitor Zara (Inditex Group) of maximal 14 days. However, faster responses indicate higher cost, HM fo cuses on drop-off of cost and achieves balance between fast-fashion and price, allowing averagely 30% 50% lower price than Zara (Larenaudie, 2004)4.1.2 Speed of ResponsesHM holds the point that the right lead time should be balanced between price, time and quality instead of pursuing save short lead time (Euromonitor, 2012). However, as a fast-fashion retailer, quick responding to fashion trends, consumer demand and other market changes is still key for the company (Grant, 2010). The company achieves fast responses by integrating downstream and being efficient at every stage (HM, 2011a).HM has a professional design team. The in-house design team, headquartered in Stockholm with over 150 internal designers, focuses on have inspirations and information from multiple resources such as news, travelling, streetstyle and various exhibitions and catwalks (J.P.Morgan, 2012). This cross-functional designing could ensure the quick response to market change.High technology has also been us ed by HM to ensure the speed and efficiency of supply chain and enable changes could be made quickly enough and design obligation then could be fasten (Bruce and Daly, 2006). HM has conducted top-class computerised design software and construct common IT platform that enables quick information exchange between the process of designing, production and warehouse. The group set only limited stocking area in each store to keep maximum area for display. So the replenishment needs to be backed up by effective distributions harmonize to the daily sales. The immediate sales data communication serves as a strong basis for fast response and efficiency at every stage.With this in-house design and outsourced production process, HM claimed that their lead time could range from weeks to up to six months fashion-conscious within weeks and sustainable and classics could be months (HM, 2011a), achieving balance between price, quality and time.4.2 Marketing Mix StrategyAfter analysing the cost and efficiency strategy of the company, marketing strategy will be analysed first with the companys unique marketing mix (Chapter 2.1.2).PriceHM makes effort to differentiate its brand image from other fast-fashion retailers with competitive low price (Zavrnik, 2011). The company makes efforts to offer best possible price in spite of fluctuating costs of raw materials. However, the price range of HM products varies according to designs, current interest rates, and tariffs (Larenaudie, 2004).ProductClothing is the main product for HM. The company offers a wide range of designs for clothing, from classics to basics, to designs following the latest fashion trends. In addition, HM expands product mix to make the most of sales opportunities, such as make-up and fig out jewellery at competitive prices, and home furnishings for young households (Euromonitor, 2011). Furthermore, as fashion trends intertwined (Steele, 2011), the new sustainable collection and classics collection enable a durab le Product Life Cycle (Chapter 2.1.3) to maximize the design and avoid quick decline.PromotionMarketing promotion is crucial for apparel retailers to build the brand image (Cooklin, 2006). Various methods could be adopted, such as advertising, social media presence, personal selling, publicity, presentations (Cooklin, 2006). For HM, inviting guest designers has been a major haulage to customers (Euromonitor International, 2011). Also, HM has two major fashion seasons annually spring season and autumn season, and two sales season summer sales and the Christmas and New Year season (HM, 2011a). The two sales seasons promote products and attracts more customer visits with even lower prices.PlaceHM has strong global presence with over 2500 stores by the end of 2011 (MarketLine, 2011). However, the majority of HMs store-based apparel sales come from Europe, with Germany contributing the most, followed by the UK and France (Euromonitor International, 2011). In addition, HM has a growth target to increase the number of stores by 10% to 15% every year (HM, 2011a). But the company does not own any store facilities. By renting store exposit the company could achieve flexibility to the best level and make sure store locate at the best possible position. And the company has leading distribution system enabling continuous replenishment based on real-time update sales data (Bruce and Daly, 2006).4.3 Brand and Multi-Channel StrategyIn the fashion retail industry, brand image is crucial in building customer loyalty (Bhardwaj and Fairhurst, 2010). HM is the most important brand for the group and enjoys strong presence internationally. With only limited investment in publicizing on TV, HMs collections with famous guest designers and celebrities have been the major hit to attract customers. From Karl Lagerfeld for HM in 2004, M by Madonna in 2007, jemmy Choos shoes and bags in selected stores in 2009, to the exciting autumn hit Versace for HM in 2011 and Marni at HM in 2012 , the guest collections fully showed attraction to customers, which interlink the price-conscious brand unneurotic with great design and quality (Euromonitor, 2011). As a mass-production fashion retailer, HM could raise brand impacts globally by cooperation with celebrities and famous brands to create the feeling of luxury and limit edition for its own customers. By collaboration with HM, luxurious brands could open up customer market with lower disposable income.Figure 12 Images of HMs Collections by Guest Designers and Celebrities (Versace, Madonna, jimmy Choo) (HM Annual Report)In addition, HM sells not only through store premises, but also over the internet and catalogue books, which with brand strategy, composes together HMs multi-channel strategy.HM has made positive progress by promoting limited online sales globally allowing consumers in areas with no HM stores to purchase online, which boosts global brand image for HM and generates sales (MarketLine, 2011). The company als o produces own online webzine HM Life, linking to its online stores and fashion items with latest trends (Euromonitor International, 2012).Furthermore, HM has successfully combined social media strategy to build up its brand and customer loyalty with Facebook page, twitter direct, YouTube account and special online social hub (MarketLine, 2011). For example, HMs Facebook page has competitive engagement rate of 2% (likes, comments, share, etc.). And the presence of free smartphone app for its brand is available to keep customers update with new products and sales.Figure 13 Images of HMs Social Media Network Facebook scallywag, Twitter Page and Youtube Page (HM, 2012)With the success of clothing, HM further extend the product range to maximise sales opportunities by selling low cost make-up and jewellery and home furnishing (MarketLine, 2011).Following Inditex, the group has transferred into multi-brand channels. Besides HM, the group also has four independent brands, namely COS, M onki, Weekday and Cheap Monday, allowing the company expand its network further and avoiding saturation in European market (Euromonitor, 2011). However, these brands still only have limited presence globally.4.4 Domestic and Global StrategyWith a unique strategy and clear brand identity, a fashion retailer should then develop its global expansion for further growth. The global expansion strategy and process could be better illustrated with Uppsala Model theory (Chapter 2.1.4).4.4.1 Market plectron and EntryHM, headquartered in Sweden, started expansion into neighbouring countries Norway (1964) and Denmark (1967) (MarketLine, 2011), and followed by entering other countries and regions (Chapter 2.1.4) (Appendix 1). As introduced in Chapter 2, similar culture or shared borders could all reduce psychic distances between foreign customers and can encourage the companys global expansion (Ghemawat, 2001). Western Europe still witness HMs majority of sales growth, which shows the effects of shorter psychic distances.Following Uppsala model (Chapter 2.1.4), after gathering market knowledge and analysis of potential growth, the company entered global market by acquisitions and with greater levels of market commitment (Appendix 1). With an ambitious growth target of 10% to 15% increase in store numbers every year (HM, 2011a), the company strategically selected global markets and made effort to expand globally step by step. Gradually, the brand established its global name among consumers.However, the dominance of Western Europe leaves HM reliant on this region (Euromonitor, 2011). Economic recession within the Eurozone could influence the sales directly, and saturation would limit HMs further growth potential. At the meantime, the apparel industry in other districts prospers, especially Latin America, with a forecast sales value growth of 25%, where HM is absent (Euromonitor, 2011). Eastern Europe and Asia Pacific is also forecast with high sales value growing potential of 32% and 33% one by one (Euromonitor, 2011).4.4.2 Domestic StrategyAfter selection and entry into global market, HM has witnessed strong global growth. Compared with international market, domestic market has moderate performance. However, headquartered in Sweden, HM still possesses large portion of market share (Euromonitor, 2012).The companys sales growth in Sweden remains steady (Figure 14). With strong purchasing power, consumers in Sweden tend to buy clothes for enjoyment over necessity. Most of sales were conducted in store purchasing over the past five years (Figure 1