Chap 2 Case

Topics: Marketing, Management, Advertising Pages: 3 (377 words) Published: April 20, 2015
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The sales manager for Auckland Engineering plc received a memo from the recently appointed Marketing director of the company regarding the company's preparation of annual marketing plan. Time Context

On January 16, 2008, the Marketing director sent a memo for the sales manager of Auckland Engineering plc. Definition of the Problem
The market share of the company at 35 percent is down on 2007. Objectives
Must
1. To increase return on capital employed by 5 percent.
2. Net profit in the forthcoming year to be 4 million.
3. To increase sales revenue to 35 million in the forthcoming year. Want
1. To continue to be the top engineering company in the Midland.
2. To widen their company to different parts of the world.
Areas of Considerations
Strengths
1. Excellent customer awareness.
2. Salesforce is well qualified.
3. Respond quickly and effectively to customer needs.
Weaknesses
1. Prices approximately 10% above industry average.
2. Spending higher proportion of turnover on advertising.
3. Salesforce not skilled in generating new leads.
Opportunities
1. Competitors having problems when it comes to delivery and quality.
2. Recent trends in the exchange rate help export marketing efforts.
3. Buyers or customers seem to switch suppliers.
Theats
1. The company's largest customer threatening to switch owing to higher than average prices.
2. The company have not been keeping pace with rapid technological change in the industry.
3. There may be a possibility of import restrictions.

Alternative Courses of Actions
1. The company must control the advertising budget for their product. 2. They must continue to produce good quality products that will keep their customers. 3. The company must study the dfifferent technological advances in order to adapt in these changes.

Recommendation
The company should control their budget on advertising. They must take into consideration if the advertisement they plan will help them to...
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