Assessing The Marketing Plan Of Accenture Commerce Essay

Assessing The merchandise figure Of Accenture Commerce EssayAccenture is a global counseling consulting, engine room serve and proscribedsourcing union. It boasts of a unpar al hotshoteled live on, comprehensive capabilities across whole industries and blood functions, and extensive research on the worlds most successful companies,. The main adjudge of the conjunction is to collaborate with clients to help them become gamey-per crapance taskes and g every addressnments. Thus this beau monde is a good company for study. Here I am analyzing their merchandise scheme and how they could increase their customer base round the world. Keller, K (1998) rivalry AnalysisOne of the major competitors of Accenture is IBM company. The financial and company statistic of both al offset been comp bed be emit. Both argon into similar business and specially postulate in the argona of consultancy to key bodied clients.DIRECT COMPETITOR COMPARISONACNPvt1Pvt2IBM attentionMarket Ca p27.28BN/AN/A167.26B111.07M occupyees176,000N/AN/A410,830810Rev. Growth (ttm)-11.20%N/AN/A0.80%16.10%Revenue (ttm)22.45BN/AN/A95.76B192.40MGross Margin (ttm)30.01%N/AN/A45.73%36.21%EBITDA (ttm)3.32BN/AN/A23.66B12.47MOper. Margins (ttm)12.59%N/AN/A19.49%6.97%Net Income (ttm)1.55BN/AN/A13.43BN/AEPS (ttm)2.375N/AN/A10.0090.12PE (ttm)18.03N/AN/A12.8618.81PEG (ttm)1.16N/AN/A1.31.06PS (ttm)1.22N/AN/A1.750.83Pvt1= Deloitte Consulting LLP(privately held)Pvt2= HP Enterprise Services(privately held)IBM= global Business Machines Corp.Industry= Management Services groom customer con operate to has do Accenture one of the most successful companies of the1990s Accenture is attending the system of what holler outed Direct business Model. The meaning of their model is -It is actually doctor to hold up a relationship with the customer, and that make ups valuable in throwation, which, in turn, allows them to leverage their relationships with both provider and customers. on with that devel opment with technology, and they allow the infrastructure to revolutionize the fundamental business models of major global regions. Keller, K (1998)Accenture competitive strategies argon speed to market topping customer run a dynamic commitment to producing consistently blue quality, custom-made systems that provide the high schoolest performance and the relevant technology to their customers and an early ontogenesis of the Internet. The companys extraordinary reaping and profitability en route to becoming the support largest consultants in the world. Accenture used assorted selling strategies to sell there works around the world making them the most successful company in the world.Through its build-to-order manufacturing capability, Accenture has been able to cut more(prenominal) a(prenominal) of the risks of the business. The company tummy persists on lower inventories and take advantage of price cuts more quickly than competitors. market service directly to cus tomers in like manner reduces be by eliminating dealer markup. Brooks, I and Weatherston, J. (1997)Market AnalysisAccentures pinnacle to market leadership is the result of a persistent focus on delivering the best customer experience by straight a focus selling products and services online and by catalogs.They put a salient deal of emphasis on redeing what drives the customer satisfaction, whether it was result times on the telephone, quality of products, valuable features, or the ease of experience in using the product. Engaging the entire company from service providing to sales to support staff in the process of understanding customer requirements became is a constant focus of focusing, energy, training, and employee education.Accenture Computer Corp. has used the Internet to trim represents and boost sales, both of which were becoming increasingly difficult to do in the saturated consultancy market of the late 1990s. It made possible for customers who previously had m ove custom orders via the telephone to identify them on Accentures Web site. Customers selected configuration options, get price quotes, and order both single and multiple systems. The site likewise allowed purchasers to view their order status, and it offered support services to Accenture owners. Given on a lower floor is how Accenture has been run in the market in the year 2009 .Environmental AnalysisAccenture helps organizations create and implement break by means of operational and transformational solutions. This is critical for any company today. thither argon many surroundal factors which become crucial in the environment in which Accenture is operating. The economical environment has a crucial impact on consumer behaviour. This factor becomes all the more relevant t in the recess period. Security of a good job and a regular income to flatten on goods are factors that topic consumer behaviour. selling and advertising do lick consumers in helping them to purchase a d ivideicular product or service. Brassington, F and Pettitt, S, (2000),Peoples social class will excessively effect their behaviour. The subroutine of society is critical. Be it the profession based capture like Actors, Doctors, engineers, low grade staff, and m otherwises and fathers also effect the purchase decision. Also being parents preserves consumers get habits based on the age of the children, the personality of job .Say if you are a highly paid official you could buy consultancy more easily than a lower class of collective consumer. Also many other characters influence the consumer buying decision. The persons personality be it extrovert (out going and spends on luxuriousness and fun) and introvert traits (keeps to themselves and purchases with online or mail order) again has an impact on the types of purchases made. Brassington, F and Pettitt, S, (2000),Customer AnalysisOne study which is vital when studying the consumers of Accenture are the reference groups in t he corporate clientele. Reference groups are close groups of deal consumers may bear up towards to that gather in an impact on consumer behaviour. They could be celebrities like Brad Pitt or your neighboring(a) family members. Other influential plurality like Opinion leaders are those peck that you look up to as you honor their views and judgments and these views may impact consumer decisions. Also the type of consumer fatality of Accenture consumers screwing be explained by the motivation theory of Maslow.Abraham Maslow hierarchy of take theory was targeted to explain what motivated someones in life to achieve. This was explained in the form of a hierarchy. He explains that consumers aim to meet basic psychological postulate of hunger and thirst. When this has been fulfilled they then go up to the next do of the hierarchy, safety necessarily, here their key involves are job warrantor ,home security and the emphasis that an income will be available to them regularly. Booms, B.H. and Bitner, M.J. (1981)Social take come in the third level of the hierarchy, the need to attachment to soul ,to be loved is a normal human desire and people do work for this belonging. Esteem need is the ext in the hierarchy and bureau the need for status and recognition among peers in the society, status of people, the recognition to shed a good job title and be bangn are all postulate that hyperkinetic syndrome to the symbol of status.Self-actualization or the realization that an individual has reached his potential in life is the top most in the need pyramid. The need of ego-actualisation is critical to the individual, as he only know when he has reached the point of self-fulfillment.This concept helps an Accenture trying to sell a product or service to a consumer. it is known to all that merchandising is about fulfilling ineluctably and providing benefits, Maslows need concept suggests that needs differ as move along our path of striving for self-actualisatio n. Accenture customers are also looking for the status and self esteem need to be fulfilled among the higher(prenominal) class purchasing services . Maslows concept is useful for hards as it helps to understand and work for consumer needs and wants.Internal AnalysisAccentures corporate philosophy is elite and quite contrary from many a companies. The same has helped it form a goodwill among prospective customers. Below are the core elements of the Soul of Accenture as they state their corporate culture summary headingCustomersThey believe in creating loyal customers by providing a superior experience at a great value. They are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competitor with value and a superior customer experience. Blythe, J. (2001)The Accenture TeamThey believe our move success lies in teamwork and the opport expression blocky each team member has to learn, let on and grow. They are committed to being a meritocracy, and to developing, retaining and attracting the best people, reflective of our worldwide marketplace.Direct RelationshipsThey believe in being direct in all they do. They are committed to behaving ethically responding to customer needs in a timely and reasonable manner fostering open communications and construction effective relationships with customers, partners, suppliers and each other and operating without inefficient hierarchy and bureaucracy. planetary Citizenship Booms, B.H. and Bitner, M.J. (1981)They believe in participating responsibly in the global marketplace. They are committed to understanding and respecting the jurisprudences, values and cultures wherever they do business fruit wide-eyedy exploitation in all markets promoting a healthy business mood globally and contri saveing positively in every community they call home, both personally and organizationally.WinningThey have a passion for benignant in everything they do. They are committed to operational excellence, superior customer experience, preeminent in the global markets they serve, being known as a great company and great place to work, and providing superior share contriveer value over time. Blythe, J. (2001)(Source Accenture.com)SWOT depth psychologyStrengthsOne of the best consultancy providers. It has been more than fifty days in the market. A wide bunk of coverage in corporate clientele areas..Promotions are very strong and effectiveWeakness determine is a little highHas a premium range of servicesCustomers service is to be worked uponOpportunitiesWide world wide coverage .USP is the hold of loyal consumersProvide peeled services for unsanded corporate companies increase consultancy servicesProminence in the mind of the key consumersRecovery from fadeout of the customers. Baker, M. (2000)Threats Recession, has decrease disposable income in peopleOther competitors like IBM. changing mindset of customersLack of loyalty of brand amon g this segment consumers.Marketing Plan Phase 2 (Objectives and Strategy Development)Executive SummaryThe strategical management literature is furthest from clear in explaining how squares choose to formulate scheme and implement it. Indeed, there are many different schools of strategic management that help to explain the manner in which firms engage in strategic decision-making and action. These accept the design, intend, localisation, learning, entrepreneurial, cognitive, power, and cultural school, to name exclusively a few. There is no right school of strategic management that should be followed, that different firms tend to subscribe to different schools depending on the exertion in which they compete and the nature of the firm. The planning school is appropriate for such(prenominal) firms because of the nature of the assiduity in which they compete. At the same time, significant enthronisations are required to fundament up any strategic or tactical decision made by such companies. In addition, the futures of the consultancy companies are highly changeable and unknown, with factors such as prices fluctuating greatly. As a result, these firms tend to adopt principals from the planning school of strategy because these help the firm to focus on the external environment in which it competes and devising strategies based on such an environment. As such, when examining what guides the strategy of a firm like Accenture, it is also primal to figure the school of strategic management that best explains its choice of strategy. In Accentures case, this is the functioning school, as discussed next. Brassington Frances and Pettitt Stephen (2006)Marketing ObjectivesThe positioning school of strategic management views the strategy process as an analytical one in nature . Whilst many scholars have written about this school, the dominant proponent has been Porter (1980, 1985). In this regard, the purpose of firm strategy is to be a position deep down the industry that is profitable. According to Porter (1980, 1985) this requires a firm to discover the industry within which it competes in terms of the five forces the intensity of the rivalry amongst competing firms, the threat of substitute products and services, the threat of new entrants, and the relative bargaining power of buyers and suppliers. On this basis, it is possible for firms to select on of terce generic strategies overall low court, differentiation or focus that help it to capitalise on a position within the industry that provides for above-average industry profitability. In order to know which of these strategies is the most appropriate for a firm, it is necessary to look at its mingled parts. In this respect, taking a broader and deeper picture of the firm is primal in understanding the context within which it competes because as Porter (1980, 1985) nones competitive advantage cannot be understood by looking at a firm as a whole. It stems from the many di screte activities a firm performs in designing, producing, marketing, delivering, and supporting its product . As such, the value bowed stringed instrument is an important counsel of quantifying the Accenture primary activities its inbound logistics, operations, outbound logistics, marketing and sales, and service as well as its support activities firm infrastructure, human resources management, technology development, and procurement and assess areas of independence and mutual dependence.Accenture is a low cost provider, but also manages to use its design of the turn in bowed stringed instrument to provide a place offering. The estimated earning od Accenture as doen by analyst has been shown in the table belowEarnings EstCurrent QtrFeb-10Next QtrMay-10Current classAug-10Next YearAug-11Avg. Estimate0.610.712.703.01No. of Analysts19182120 diminished Estimate0.590.672.612.78High Estimate0.680.752.793.26Year Ago EPS0.630.682.682.70Targeting and Positioning part Accenture c oncentrating on upper-end customers. They have different segments and different USPs. While there are many possible avenues to exploit in terms of sales opportunities for these companies, the market is highly segmented in such a way that it is important for Accenture to engage in target marketing. This is the point where the particular companies must resolve whether they will individually follow a niche market or a full-line strategy. Accenture thus caters to a vast market that too individually. Brassington Frances and Pettitt Stephen (2006)stigmatisation Accenture is a well known brand. Although its sales have been travel but it has been one of the key players in the consultancy market. Its name and use of service is associated with many a known names in its market. It is the leading brand in the world, with a focus on performance and foreign presence.Positioning summary Accenture sees positioning as a key factor in growing the brand in developing markets of Asia like China, Ko rea, and Malaysia. Moreover, Accenture already had marketing tie-ups in Asian market segments.Competition While Accenture build product lines and marketing campaigns the major competition is from IBM. Thus the promotion strategies of these two companies being similar, the enunciate advertising and promotion cost are sure to be reduce as of their independent cost. They can target a wide range of segments which includes consultancy and solutions for the corporate client. While both these brands make use of a differentiation strategy to attract its customers, IBM concentrates its efforts on a broad cost strategy approach. The differentiation strategy of the Accenture can be seen in action by examining the various productions of this company.In looking towards the future, the company seems to place into a position to steadily increase its market share and brand value to split up compete in the consultancy business and to help in transformations of clients. Hoyer, W.D. and MacInnis, D .J. (2001)Segmentation Accenture can now really focus on premium service full of design and innovation-the kind of service people with too much money like to buy. Accenture have their own USPs.Growth Strategies (if the objectives set refer to growth/improvement of reliable position)BCG analysisHere I would say that Accenture is in the cash cow position. Thus it should now harvest its product that is the Accenture company should now stop investing money in mass promotions of Accenture and appreciation for the right time for the market to take up dynamism. Hoyer, W.D. and MacInnis, D.J. (2001)Thus it is suggested that Accenture should not just get back and wait for this cash cow to realise returns. It has been listed as a cash cow because the amount of revenue which can come from this product is now saturates. Another strategy that it can follow is that it should make this brand and launch it in the Asian market where street corner hasnt taken such a big toll. There it can be laun ched as a question mark and will need high amount of promotions and distribution to be established in a new country. This is a strategy that Accenture should take on to survive in a global market like that of today. This is by far the only way in which it can cover up the market saturation the company has reached at present.Ansoffs MatrixAccording to the Ansoffs Matrix there are quadruple major strategies that Accenture can follow. However the strategy that is recommended is harvest /service development. This strategy is recommended for Accenture as they have still got basic problems with their product that is differentiation form competitors.. This is to be improved. Aaker, D and Joachimsthaler, E (2000)Innovation in technology needs to be added to these products to necessitate in more business in the current markets. Global Customer wants value for money that is cheaper prices and good quality. Also in this field new technology and luring the customer with the same is very impo rtant a suggested to Accenture.PESTLE AnalysisPESTLE Analysis or analyze of the marketing environment include history of firm, macro/micro factors that are relevant including a stakeholder analysis. It is critical to understand the toothpaste too done these points of strategy. This classification distinguishes in the midst ofPolitical factors. These refer to political science policy such as the degree of intervention in the economy. What goods and services does a government want to provide? The liberalization by the government has of course helped out the business in consultancy companies to survive in recession too.Economic factors. These include interest rates, taxation changes, economic growth, inflation and exchange rates. These includehigher interest rates may deter investment because it costs more a strong currency may make exporting more difficult because it may burn the price in terms of unusual currencyinflation may provoke higher wage drives from employees and raise costshigher national income growth may boost acquire for a firms productsIt is seen in recession times that many delegate have been shown the pink slip.. But the same phenomenon has also lead those who could start purchasing this product to deter and not buy it due to the conservative nature that has seeped in the consumer after recession round the world specially to the consultancy business sector..Social factors. Changes in social trends can impact on the learn for a firms products and the availability and willingness of individuals to work. For example the consumer of the Accenture service may vary form one country to another.Technological factors new technologies create new products and new processes. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of fail technology. As far as Accenture is concerned, it will have to incorporate these in its portfolio of services too for the ease of the customers.Environmental f actors environmental factors include the stomach and climate change. Changes in temperature can impact on many industries including farming, touristry and FMCG. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant screw for firms to consider.Legal factors these are related to the legal environment in which firms operate. In recent years world has been many significant legal changes that have affected firms behaviour. Legal changes in a country can affect a firms costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).Thus the same are critical in the analysis of Accenture. Aaker, David and Joachimsthaler, E. (1999).Selection of Competitive AdvantageAs far as the competitive advantages is concerned Accenture has to work on the side by side(p) areas in 2010The company is loosing i ts growth in the marketThe company is upset to spread to other countriesThe stress of the company has always been consultancy no other serviceThe company has priced its product at a very high price as compared to the near competitors.Also the fact that competitors like IBM are present in the market ,it becomes all the more important to call for up a very strong competitive advantages. Accenture should do this by a good supply chain management across the world. understanding the strategic choices of Accenture is important in supply chain management (SCM) because it helps to establish the focus on the companys activities. Indeed, SCM reflects the management of the interconnections of organizations that relate to each other through upstream and downstream linkages amongst the processes that produce value to the ultimate consumer in the form of products and services. SCM is a critical component of this.Through SCM Accenture can examine ways of being more efficient, especially for an overall low cost strategy, and well as adding more value to end customers, important for a secern strategy. In the case of Accenture that adopt an overall low cost strategy, the goal is to increase sales volume whilst also reducing unit costs because this helps to improve the margin achieved by the firm. Over time, a firm can capitalise on economic of scale through investment in infrastructure, as well as learning curve personal effects and perhaps more effective purchasing decisions, supply chain efficiencies and develop logistics management. When adopting such a strategy, it may also be pertinent to not simply optimise individual links within the supply chain, but examine how efficiencies can be made across the supply interlock since it can easily be possible for a distant supplier in the supply network to disrupt the entire supply chain . Nonetheless, many efficiencies are likely to be found in the immediate supply chain because the firm has greater control over this part of the supply network .Marketing Mix ProgrammeAs far as the pricing of Accenture is concerned ,it is little on the premium side. As compared to IBM it should reduce its prizing to competitive level. Whilst controlling costs is still important, focus is rigid on the Accenture intangible assets and its ability to leverage these within the value chain.Product wise Accenture has a good range of services to offer approve up by a good customer care. More so it could forward integrate to technology making in various palm to expand business and profits. In the case of Accenture pursuing a differentiated strategy, these aim to focus on those aspects of their products or service provision that add most value in the eyes of the consumer.A critical component of this strategy is to understand which parts of the supply network should be unplowed in-house and which should be outsourced, or perhaps even acquired. In-house activities are those that add superlative value to the firm and where its ha s particular competence, whilst the outsourcing of supply chain activities should take place for more peripheral activities within a Accenture value chain.In reality, just as Accenture do not always follow one of the three generic strategies, but a hybrid corporate strategy, so should they look for a hybrid approach to business. The key point, however, is that there is alignment between Accenture corporate strategy and its marketing mix approachTheory building in MARKETING MIX based strategic research has centre on two areas international marketing mix management (MARKETING MIX) and decision-making in monetary fund management. MARKETING MIX research has focused on the potentially virtuous and vicious cycles that are evident in Accenture . The overall analysis of this is that Accenture were generally facing reinforcing loops that led to either successful or unplaced MARKETING MIX. One of the major issues in MARKETING MIX is service management, with the general problem that individ uals do not understand the feedback mechanisms that lead to blow in the marketing system. Accenture tend to focus on inventory management, demand amplification, marketing mix re-engineering, and marketing mix design .This work is especially appropriate to the bullwhip effect and the marketing mix redesign that has been taking place at Accenture .The notion of the bullwhip effect in marketing mix which is followed by Accenture came from work by Procter Gamble, a fast-moving consumer goods (FMCG) company that had a large, complex international marketing mix. During the process of managing their marketing mix, the company noticed that as information went up the marketing mix, the distortion of that information increased. The market negative effect is the term used to describe this effect. It results from a lack of synchronization between members of a marketing mix, which is amplified the greater the number of members and the larger the number of defaults in the slae system linkages t hrough which information passes. The problems that Accenture face is that since supply characteristics do not match demand characteristics, inventory starts to accumulate at the different stages of the marketing mix. Accenture is striving with the problem of delivery and supply and demand mismatch since 2004. Marketing mix management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.A marketing mix is the group of organizations, people, technology, information and resources consisted in transferring the product or good from the producer to the end consumer.. Supply chain helps in the marketing mix in moving the crank material to the manufacturer , the net good or ready product to the wholesaler and from their to the consumer..It is important to have glance at the component of the marketing mix management to understand the relevance of integration planning and management of the same .. There are cardinal key elements of the company that are critical to any business yield Supply Inventory Location Transportation, and Information.Accenture try to deal with the dangers of the marketing defaults through the forecasting of demand. This is important because demand is rarely stable. Such variability much means that Accenture need to keep a degree of safety assembly line effectively an inventory buffer. The further up the supply chain towards raw material producer, the greater the observed demand, and therefore the greater the safety stock that is required. When demand rises in a given period, downstream suppliers increase their orders, whilst during falling demand, the converse occurs. Since fluctuations in demand are more pronounced up the supply chain, this increases the size of the oscillations faced through the supply chain. This is something that Accenture has to manage. No consumer should go unattended.There are a number of factors that contribute to the nega tive marketing mix effect. First, forecast errors can easily occur simply because Accenture are unaware how demand many change over time. Even for goods that have a common demand pattern there can be instances where demand suddenly changes because of unknown factors. Second, there can be an overreaction to backlogs in supply of service by the company.In the diagram below of the companys supply chain the arrows are for supplier-relationship management, internal SCM and customer-relationship management .A supply chain starts with ecological and biological regulation of natural resources. This is then taken on to supply of raw material, many production links before one moves to several layers of storage facilities of various size and remote geographical locations. hence on it finally reaches the consumer. Here the service to be delivered although is the price which also has to be followed up for customer care after sale. Thus this as a whole can improve the sales of the company to bri ng in an effective marketing mix strategy for Accenture.