Marketing Commodities Business and Services

Question: Describe about the Marketing Commodities for Business and Services. Answer: Introduction Marketing is the process of socializing the value of commodities and services to the customers with a target for selling the commodities and services. This process is quite vital procedure of business that concentrates on attracting the customers. If this functioning is appropriately planned and at the same time implemented properly then the firm can increase its sales, goodwill, brand, loyal customers, and profits. Now a day, business world desires to adopt every business in a workable marketing strategy as they can accomplished their aims and achieve high competitive benefits and at the same time could receive higher profits (Parker, 2016). Here, in this paper, the researcher has discussed the marketing strategy along with the marketing environment that presents the marketing analysis of Ecostore that aims to provide ecofriendly home care and beauty and personal care commodities. Company aims in proving its eco-friendly products to the environmentally friendly and aware consumers. The researcher has used different approaches and marketing strategy of Ecostore. This report discusses the marketing strategies like its products, customers, price, promotions; those are used by the company. And at last, the conclusion of the whole report has been provided that how and what strategies have been adopted by the company. Background and Positioning of Ecostore According to the website of Ecostore, the major aim of their business is to provide ecofriendly goods to the environmentally aware customers. The company was started by Malcolm Rands along with his wife Meanie in an eco-village in New Zealand. The company was founded in the year 1993. Malcolm Rands has always used sustainable and organic products in their layout but found that they are still very much exposed to toxic chemicals via cleaning products and body care products they are applying (Robin, 2003). Ecostore is a proud New Zealand Company, which is manufacturing its products in Auckland that are healthier for people and the environment. The Company first started its work on the laundry products with a commitment that their products would work as good as mainstream brands without creating any side effects. The commitment of the company still continues to today and still always examine the safety of an ingredient to the health of the people and to the environment. As the number of consumers grows, Ecostore went to Freemans Bay and opened its first retail store (Jackson, 2014). The company increased its products range that includes household cleaners, body and baby care commodities in 2005. The company got launched in the supermarkets of New Zealand in year the 2002, Australia in 2004, and in the United States in the year, 2009. In Ecostore, sustainable practices are all about to assured their business that remains viable and gives lasting advantages to the society and on environmental aspects. The firms approach to environmental strategy is accordance to the vigorous verification as well as regulation of material risks across entire phases of its business which begins from exploration to growth (Reinforcing sustainable practices by sharing cases of appropriation, 2013). The management of the company associates with all shareholders and apply their perspective in the decision-making within the company. The company owns and executes varieties of the products within different nations. The firms marketing environment includes the forces outside marketing which has impacts on marketing managements potentiality for establishing and maintaining accomplish transactions through its aimed consumers. The ranges of Ecostore are now over 100 products and have massive formulation and design makeover. The company was rebranded in the year 2012 and becomes more effective. For the successful management of the firm, it operates in a workforce that signifies its principles, values and the communities in which it functions. The company aims to recruit from its host societies to attract people who are committed to the accomplishment of the company as well as a flourish on performing in high performing groups (Skinner, 2002). The company is committed to developing the abilities and talents of its management. Ecostore now operates in over 100 products in New Zealand and is available in 900 supermarkets of Australia, Korea, Singapore, USA and many others. Sustainable Practices of Ecostore Sustainable practices rely on biodiversity along with its aligned ecosystem services like air and water. Today, competition for land and water resources is growing day by day and also there increases concentration from policy makers and various shareholders that effectively handle all these resources (Verbeek and Mommaas, 2008). In order to avoid environmental affects and at the same time to protect and safe environment, Ecostore has committed to environmental obligations which include that the company will not produce any product that can have a harmful effect on the environment. Ecostore is the only small and medium sized enterprise that is among the top five brands with ecofriendly results, along with the major companies like, Toyota and the Body Shop. The sustainable practices depend on the companys potentiality for obtaining a relevant quantity and quality of water (Bohannon, 2007). The CEO of the Ecostore Malcolm Rande stated that the ability of the company to stand out with hu ge brands in environmental products demonstrates the company determined to focus on providing healthier products and winning more customers. Ecostore, which was founded in the year 1993, was not only for providing products that are better for the environment but also for the health of peoples. Sustainability has been at the core of the company prospectus and objectives. The subject of the company regarding the sustainability is eco-friendly since its initiation. Malcolm Randes expresses that sustainability is a passion for their company and also works as a guide to it. The management of the Ecostore always ensures that the practices of sustainability get applied in the manufacturing process of the products (Rutkauskas, 2012). The Company also ensures that the practices are also involved in the selection procedures of suppliers, packaging, and other features of the business that includes staff management and the involvement of community. Eighty percent of the human population wants to buy products from organizations that are environmentally and socially responsible. Respondents of a research conveyed that the issue of sust ainability effects their choices or brand. Ecostore wants their consumers to look and examine critically the products they choose. The company regularly asks for feedback and response from its buyers, so that it could find some aided ways to enhance their products and service quality (Thiele, 2013). Company also identifies opportunities to educate the consumers on sustainability. . Marketing Strategy of Ecostore The marketing strategy of any company involves the examination of the market, and the question of which product to offer and what range of customers would be suitable for that price group. Ecostore has decided that there is a range of eco-friendly products demands due to continues pollution across the world (Robinson, 2012). Company marketing strategy involves the owning and operating the range of products that are only diversified with the tag of being environmental friendly. The strategy of the company has remained unchanged from the decade which has enabled it to gain superior margins throughout the economic and commodity cycles. Ecostore has always utilized a disciplined approach which has now become its proven strategy (Goodall, 2012). The strategy of the company thus allows it invest and grow their businesses throughout the economic cycles that have delivered them with strong relation with their shareholders. Some of the marketing strategy used by Ecostore has been mentioned be low: Ecostore main products, services, suppliers and customers Ecostore offers a wide range of commercial and health products. The company works in the field of Laundry, Dish wash; Home care products like hand and body wash products, skin and hair care products, baby and ultra-sensitive products. These products of the company are of good quality and always satisfy their customers. The suppliers and contractors list of this company also ranges in numbers. The company gets supply of its raw materials from major organization across the globe. Ecostore offers substitute products compare to other harsh products that are available at the retailers shop. The target audience for the Ecostore is that range or group of customers that have positive thinking regarding the eco-friendly products. The company also aims in targeting those females who dont want to affect their body and families from products that are made of toxic chemicals (Huang, Liang and Yi, 2015). As eighty percent of the people want sustainable products, the second target audience for the company is the females between the age group of 35-55. Ladies of these age bar are conscious about their family and environment and always chooses the best environmentally friendly products. Pricing Strategy of Ecostore Pricing strategy is one of the most important elements needed for the success of the company. It is directly related to the product positioning and is an important strategic issue. It is the strategy used by firms to attract customers into their company. Ecostore has a diverse range of opportunities in the todays world and also has the strength and flexibility to pursue these opportunities (Huang, Liang and Yi, 2015). The Company has implemented the strategy of safe productivity and quality assets to preserve the margins and for releasing stronger cash flows. Promotional strategy used by Ecostore Promotion means raising awareness among the customers of a certain product in order to generate sales and to create brand loyalty. It is one of the elements of marketing mix and if the strategy is implied appropriately, then it can play an important role in accomplishing the objective of the firm. The company has approached on a strategy that focuses on the value chain and developing cash returns to the shareholders. The company has created its value in all market conditions (?in?era et al., 2014). The company tremendously achieved growth after it started to sell eco-friendly products to consumers. The company has managed to create a reputed image before the people. The company is always focusing in emphasizing and characterizing the acquisition, mainly the influences of the products in the environment. The company has gained market share in the eco-friendly industry and has now become the market leader in the file of the eco-friendly products. Distribution strategy of Ecostore The foremost strategy of Ecostore is to own and operate large, low-cost and expandable assets that are distinguished by commodity, geography, and market. The strategies have made it imply more predictable business performance that reinforces the creation of values for shareholders, and other stakeholders. As the company is founded on diversification, it has recruited a workforce that reflects the values and the commodities in which it operates (Kim, Gi-Pyoung, 2010). The company aims in recruiting mostly from the host communities so that it can attract more calibre and capable individuals who are committed to the success of the organization. Ecostore is committed to developing the skills and talents of its workforce, and this makes the company look different from its competitors. Comparison of marketing mix between Ecostore and Earth Choice In order to meet worlds requirement for eco-friendly products is now the domain of the management of the Ecostore. One of major rival of Ecostore in terms of sell and revenue is another eco-friendly products manufacturer, namely, Earths Choice. The company has got an overall satisfaction rate of eighty percent in comparison to Ecostore, which got only seventy-five percent. Both the company has positive remarks in terms of cleanliness and environmental friendliness products (Kim, Gi-Pyoung, 2010). The average price for the laundry product of the Earth Choice is 6.65kg that is relatively lower than the price of Ecostore which is 8.35/kg. Another major competitor that wins over Ecostore in terms of price is Omo, which is a mainstream laundry brands and cost 6/kg for laundry products. SWOT Analysis of Ecostore Strengths- The foremost strength of the company is its environmental friendly products. This indicates to a point that the target market of the company would also the people who are eco-friendly. Another major strength of the company is that customers are getting satisfaction with its products. The sustainability programs of the company have been very positive in attracting customers towards the product which are ecofriendly. Strength of the company is its expansion in the range of products and high brand loyalty (Kim, Gi-Pyoung, 2010). The company has also expanded its e-commerce activities that have helped the company in getting more customers. Weakness- one of the foremost weaknesses of Ecostore is that the company has not yet managed to get number of layouts in the list developed countries except Australia. Many products of the company are at the verge of decline. Company also lacks expertise in advertising and many of its rivals just grab the market from their unique advertisement style. Opportunities- the world is now against the use of animal products, and as the products of Ecostore are eco-friendly it will surely gain more consumers. Ecostore has also the opportunity to expand its ecofriendly products program that will increase the awareness of organic and eco-friendly products to the people (Kim, Gi-Pyoung, 2010). Company can also expand its market through the medium of online sell, as there has continues increase in terms of online buyers. Threats- The major threat for the company is the shrinking and unstable economic condition that influence the people awareness and make them buy cheap and unhygienic products. Ecostore has also get tough competition in terms of body products as there are many rival companies that are also producing quality products. Another major threat for Ecostore is the risks of material supply. Conclusion and Recommendation From the above report, it has been concluded that in Ecostore, sustainable practices is all about assured their business that remains viable and gives lasting advantages to the society, environmental aspects. The firms approach to environmental strategy is accordance to the vigorous verification as well as regulation of material risks across entire phases of its business which begins from exploration to growth. The strategy of Ecostore is to own and execute broad, lower cost assets spread by market, commodity and to provide ecofriendly products. Their strategy has remained unmodified which has allowed them to give superior limits all over economic and product cycle for much more years (Esty and Winston, 2006). The study also identifies that Company can also expand its market through the medium of online sell, as there has continues increase in terms of online buyers. It also demonstrates that Ecostore is committed to developing the skills and talents of its workforce, and this makes the company look different from its competitors. Ecostore has implied various principles for their manufacturing and management practices that include the morals like developing products that are safer for the environment and are guaranteed to give better results than the ordinary market products. In order to avoid environmental effects and at the same time to protect and safe environment, Ecostore has committed to environmental obligations which include that the company will not use any of the toxic chemicals that are harmful for humankind and for environment. The firm also develops principles and values in their Environment GLD for guiding their business in developing compensatory actions. The company should look for its current issues and threats and need to make strategies according to it for gaining a competitive advantage over its competitors. 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