Marketing Strategies
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Marketing refers to deliberate value communication intended to influence customers’ decisions on a given service or product. The goal of marketing is to create product awareness and add more people to the sales cycle. Appealing to people’s behavior can be complex; hence marketing is a concept that requires a comprehensive plan. Some of the crucial aspects of marketing include research, market segmentation, and target identification. Implementation of marketing strategies also requires innovation and resources. This essay will examine Arconic Corporation while accomplishing a SWOT analysis. It will also identify marketing initiatives necessary to increase product awareness and winning over clients.
Summary
The work will examine and develop market initiatives for a company called Arconic Corporation. The company is a part of the Aluminum industry, and its headquarters are located in Pittsburgh, Pennsylvania, United States (US). The mission of the company is to invent, develop, and deliver products and solutions for high-performance customers and industries through precision engineering and advanced manufacturing” (Business Wire, 2020). This mission has its foundation on the company’s tagline of “Innovation Engineered.” The business role of the Arconic Corporation is to manufacture plate, aluminum sheet, extrusions, and architectural products and systems, which primarily serves packaging end-markets, industrial, building and construction, aerospace, and ground transportation (Plant, 2019). The mission statement is consistent with the business role as it provides the foundation in which the company’s operations are built.
SWOT analysis
Strengths
SWOT analysis concept identifies the weaknesses, threats, opportunities, and strengths of a given company. The information is crucial as it informs marketing initiatives needed to develop growth strategies. Arconic Corporation is one of the leading companies in the industry hence possesses strengths that enable it to maintain its market share and penetrate new markets. Some of the company’s strengths include capital expenditure good returns. The company achieves this by developing new revenue streams and executing new projects. Additionally, the company’s dealer community is stronger. This is due to the strong built culture among dealers and distributors who, in addition to promoting the company’s products, train the sales team on the best strategies to win customers. Arconic is also known for product innovation and reliable suppliers of raw materials. Moreover, the successful integration of complementary firms has fostered technology integration leading to reliable chain supply and streamlined operations. Also, the Portfolio brand of the organization is strong, which has enabled the company to expand its product line over the years. Additionally, Arconic has a strong free cash flow, which avails resources for expansion (Fern Font University, 2018).
Weaknesses
Weaknesses refer to the aspects that a company does not do so well and needs to improve on them. One of the Arconic weaknesses is its inefficiency in integrating firms with different work cultures successfully. The company’s daily inventory is high; hence requires more capital, which can negatively affect Arconic Company’s long-term growth. Furthermore, Arconic has not effectively solved new entrants’ challenges. This has resulted in a loss of small market share in the forte categories. Also, the unique selling proposition and positioning of the products are not clearly defined. Competitors can attack the company from this angle. The liquid asset ratio and asset ratio of the company suggest that the financial planning of the organization is inefficient, and it can be better. What is more, the company’s culture makes it hard for the company to move to other segments. The product range also has some gaps which can grant competitors a foothold (Fern Font University, 2018).
Opportunities
Moreover, Arconic Corporation also has various opportunities that create development changes. For instance, the industry has had slow growth, which presents Arconic an opportunity to capture new customers and gain market share since they have had high customer spending. Arconoc also has core competencies that can help it be successful in other similar products area. Additionally, stable free cash flow presents an opportunity to invest in new product segments. Further, Arconic has an online customer channel that enables the opening of a new sales network. The company can leverage this opportunity by using big data analytics to understand clients better and meet their needs. Improved technology also provides an opportunity to develop price differentiation strategies in emerging markets (Fern Font University, 2018).
Threats
Threats refer to factors that may derail an organization’s growth. Various threats, such as new environmental regulations, face the company. The Paris agreement (2016) threatens the existence of some types of products. The aluminum sector has also had intense competition as stable profits in the industry attract more players putting pressure on sales. Additionally, Arconic may be exposed to different liability claims if market policies change as liability laws differ from country to country. Profitability levels of the company face imminent pressure due to rising pay level movements. Further, emerging and small market use of low quality and counterfeit products undermines the organization’s product. Making steady profits in some global market representatives remains a challenge due to the skilled workforce shortage. The supply of innovative products by Arconic is also low, resulting in swings of high and lows sales over time. Most new products developed by the organization are a response following development by competitors. Also, if competitors develop better new technologies, the future of the company could be in threat (Fern Font University, 2018).
Initiatives of the Arconic Corporation
Arconic Company has engendered in different marketing projects. One of the recent projects was completed in the Tennessee plant. The project’s goal was to upgrade the product by offering more than 100kt of higher-margin downstream rolling capability in industrial and auto markets (Cornell, 2020). The Tennessee project’s goal will be measured by creating increased shareholders’ value in the long term. Higher aluminization should also lead to profitable growth. Aspects used to measure project success, in this case, are business performance and stakeholder satisfaction (Bragadin & Kähkönen, 2016).
Another aspect included in a company’s initiatives promotional events. Promotional events refer to activities that draw attention to products. Such activities occur on different occasions, such as conferences and event venues, and impact corporate image (Amini et al., 2012). Arconic Corporation has had many of these conferences where results for different quarters take place. Usually, Arconic Company makes its financial results known to the public. Specifics of its reports provide the performance of each product segment. While this may not be a direct promotional event, the conferences indirectly draw attention to the company’s products.
Another initiative for Arconic Company is the creation of creative strategies to attract new customers. The company has utilized technology to produces innovative architectural products leading to the production of advanced building and construction markets, commercial transportation, aerospace, and automotive markets (Arconic, 2020). According to Martínez-Vergara & Valls-Pasola (2020), innovation impacts businesses in complex and varied ways as it attracts customers from low-end and high-end areas. Similarly, innovation implemented by Arconic has one of its driving factors towards creating a new customer base. Another way in which Arconic Company obtains new customers is through direct response to market forces through an internal feedback mechanism. The mechanism obtains information from the sales team, analyzes information, and resolves issues that are noted. This retains old customers and wins new customers (Kiseleva et al., 2016).
Target markets
The target market is the customers to whom a company directs its marketing efforts and to whom it intends to sell its products. The target market for Arconic Company involves individuals and companies operating ground transportation, construction and building, aerospace businesses, and industrial packaging. Another characteristic of buyer persons for the company includes advanced lightweight materials (Plant, 2020). Arconic also serves individuals who need aluminum architectural products for different purposes. Additionally, technology has enabled the company to carry out internet-based trade. Therefore customers with online access to company’s website make an ideal target market. It is also worth noting that Arconic Corporation is a global company, and therefore it can sell to clients from different geographical locations.
So far, some customers who buy from Arconic Corporation include known customers for the company include Boeing, Airbus, and United Technologies, and GE Aviation. Similar to other businesses, Arconic Corporation also has a long list of competitors who deal with similar products. Some of these competing companies include Aleries Rolled Products, Century aluminum, Kaiser Aluminum, and Universal Stainless and Alloy products. The listed companies produce similar products with Arconic Corporation; thus, they target similar customers. As a result, each company must establish a means to maintain customer loyalties to prevent losing them to a competitor. Individual companies also have to find means to win over new customers as competitors also target them.
Market creative strategies
Understanding the target market and competitors are crucial for the growth of every given business. Usually, the target market involves people a company serves, and they are the end-user of business products. Therefore, they allow market access for a business seeking to enter into new territories. In this case, the target market can help the company access market by selling on the company’s website (Johansson, 2009). Individuals with access to the website can buy the products. The advantage of selling through a website is that it covers a wide and diverse market. This is because the company’s products are used worldwide; hence any individual accessing the website and purchasing the products from a given country grants market access. Another suitable way for Arconic to access the market is by selling its products to clients in export territories. These clients sell the products in their home countries, therefore allowing Arconic to gain market access indirectly. Another suitable way for Arconic to gain market access through the target market is through joining a joint venture. This can allow Arconic Corporation to enter into an agreement with individuals owning a business in a foreign country (Johansson, 2009). A local distributor target customer could also help the company access market in a given location by distributing products on behalf of Arconic Corporation.
When it comes to competition, the Arconic Corporation being of the market leaders, has a competitive advantage in several ways. For instance, the company believes that it has unique technology or differentiated products, advanced manufacturing capability, and consumer intimacy for Global Rolled Products. Consumer intimacy is a customer-centric concept that makes it hard for new entrants to come by. It improves customer service, boosts business reputation, and increases returns. Manufacturing ability ensures flexibility and agility, while technology improves relationships and efficiency (Chavez et al., 2017). In cases where competitors can make similar products, Arconics uses innovation in products and alloys to enhance competitive advantage. Moreover, Arconic offers a wide range of products compared to some competitors. For instance, Novelis participates in automotive but not aerospace, while Grange competes only in the brazing sheet market. What is more, Arconic continually monitors and plans to remain better than emerging competitors in regions such as China and other developing countries (Arconic Inc, 2020).
Another crucial marketing strategy is the 7 Ps of a market mix to achieve better results. The first P is for a product that enables a business to design products with the customer in mind. This helps to meet customer needs. The second P is for the place, which is crucial as it defines a desirable and convenient location for customers to pick their products. There is also the price that allows businesses to offer a value product at a reasonably lower price. This is one of the aspects that Arconic works tirelessly to meet. The fourth P stands for promotion, and it entails ways in which organizations communicate to audiences concerning products. One of the most utilized means today is social media. Arconic is also keen to inform people about its products during conferences. There are also people P, which involves people who are crucial in running business operations. Companies depend on the right personnel for better results. Additionally, processes are another P, which entails delivery means. This is crucial as business efficiency requires minimum delivery time and effort. Another crucial P integrated into a market mix is physical evidence. This is what a customer usually pays for, even if it is intangible (Schultz, 2017). For instance, Arconic physical evidence includes architectural products and wheels.
Budget
According to the Arconic Reports Second Quarter 2020 Results, capital expenditure was $21 million. Marketing cost allocation is usually between 9% and 12% of the annual budget allocation. Marketing costs are included in the figure. Specific particulars for marketing capital include marketing Agencies that are paid $20k on average for an international company (Element Three, 2020). Promotional events should also be included as a particular in the marketing cost. The price depends on the platform chosen for promotion activity. For instance, promoting an event on Facebook costs $0.27 per click (Corona, 2017). Other items involved in the marketing list include advertising fees, which differ from one advertising company to another. The average cost of advertising a brand ranges from $20 to $500k. Paid media management can also be included in the particulars list, which costs between $10k and $30k (Element Three, 2020).
Marketing Channels
Marketing channels are comprehensive provisions which involve people, product, and information as well as the venues where the information can be found. In the Arconic company, information about products can be found on their website at www.arconic.com. More information can also be obtained during various conferences to help present financial results for different quarters of a year. Also, Arconic Corporation has physical locations such as the headquarters at Pittsburgh, Pennsylvania, United States. Therefore, people can physically visit the office and enquire for more information. Calling is also an option that provides stakeholders with an opportunity to learn more about a company’s products without making a physical appearance to a company’s offices.
The marketing channels can create brand awareness in different ways. For example, while advertising through the company’s website, one can use native advertising. The method borrows credibility form host publishing sites to ensure people get information from wherever they are reading information. Another way of spreading product awareness is by using popular influencers I a given niche and working with them to promote a brand. Influencers have a large following in social media; hence they can win the trust and attention of the appropriate audience. Another way to spread the word about a given product is through sending newsletters that elaborate more on products (Karjaluoto et al., 2015). Further, when writing a newsletter, it is recommended that a balance is struck between relevant content and promotional offers.
Moreover, marketing channels also play a role in educating buyers. Social media platforms contain substantial information about products for informing purpose. The podiums are also ideal for short videos demonstrating the company brand. Additionally, buyers obtaining products from the company’s physical address can receive product education through training. Another way to educate buyers and persuade them is through ads on visual media. These involve elements that make information appeal to humanity. Such elements include repetition, composition, fonts, colors, and imageries. Ads on visual media humanize advertisement, thus speaking better to the audience (Friedmann, 2014). Other marketing channels that can be used to spread brand information and educate buyers are social links. Social links entail clickable media icons that lurk on pages of ebooks and other webpages. Clicking on the links sends viewers straight to a social media account with updated content of a given company. If more people click on the link, more individuals get to know about a given product. Also, if individuals read, they are likely to be convinced and buy the product.
Conclusion
Marketing is a crucial process in any given business. The concept enables the introduction of appropriate methods to foster company’s growth. Some of the techniques to look for are technology and innovation, which lead to creativity. Marketing teams should also understand their target market if they are to include an effective market mix. Additionally, a successful marketing plan requires a budget plan to keep track of expenditure on marketing costs. Furthermore, marketing channels such as social links and social media play a vital role in ensuring its spread and educating buyers. These aspects are crucial for the start of business continuity. Business continuity refers to a company’s ability to continue its operations after a disaster. The aspect requires proper planning and availability of resources to function fully. Recommendation to offer a company to increase brand awareness and persuade people to buy products for business continuity is creating tutorial videos as they promote understanding. Leveraging influencers is also a good move as influencers usually have a large following who can turn to clients.-1