Marketing strategy of Foro Energy A

Posted by Zander Henry on Aug-22-2018

1. The vision of Foro Energy A

The vision of Foro Energy A is to be the leading quality service and product provider for customers. Being the best and the leading player means that Foro Energy A marketing strategy and operations focus on:

• Providing high quality of products and services
• Providing value to customers
• Concentrate on building customer experience

2. The mission of Foro Energy A

Foro Energy A marketing strategy is grounded in its mission. The mission for Foro Energy A is to be the favorite brand of the customers. This mission is essential for the marketing strategy of Foro Energy A as it focuses on all operations and marketing activities in the direction of:

• Consumer centrism
• Using research to understand and influence consumers

3. Brand Equity of Foro Energy A

Understanding and knowing the brand equity is vital for directing and giving meaning to the marketing strategy of Foro Energy A. The knowledge of brand equity will help in shaping Foro Energy A marketing strategy effectively – thereby facilitating the growth of business for Foro Energy A.

3.1. Brand awareness

• Foro Energy A has high brand awareness because of international operations
• The company focuses on higher budget allocation in the country of origin
• Each market for Foro Energy A has modified marketing and strategic directives and plans

3.2. Brand association

• Foro Energy A is directly associated with the brand name and product category
• Foro Energy A has a broad product portfolio
• Foro Energy A is associated with promising and delivering quality and innovative products
• Foro Energy A is also associated with excellent customer service

3.3. Brand loyalty

• Foro Energy A has been successful at gaining high consumer loyalty because of unique and influential marketing strategy
• Foro Energy A has a global customer base
• Foro Energy A keeps adding value addition to the products and product portfolio to keep consumers engaged

3.4. Brand asset

• Foro Energy A has a substantial brand value
• Foro Energy A also enjoys the high financial worth
• Foro Energy A focuses on building a reliable and robust employee base

3.5. Brand element

• Foro Energy A uses the brand element as a means of competitive advantage
• Uses adaptability in product, services, and marketing to meet different cultural demands

4. Situational Analysis of Foro Energy A

The situational analysis will help in developing the marketing strategy of Foro Energy A by conducting a thorough market analysis. This market analysis will aid in understanding the compatibility between external opportunities and other factors, and internal strengths – to be used to maximize the marketing influence of Foro Energy A.

4.1. SWOT

4.1.1. Strengths

Foro Energy A marketing strategy can benefit from the following internal advantages:

• Strong brand image
• Global distribution network
• Investment in market research
• Innovation

4.1.2. Weakness

Foro Energy A faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

Foro Energy A has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

Foro Energy A faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• Foro Energy A operates I markets with political stability
• Foro Energy A has funding support from the government for small businesses

4.2.2. Economic

• Foro Energy A enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for Foro Energy A
• Low inflation strengthens the financial position of Foro Energy A

4.2.3. Social

• Higher education and awareness increases sales of Foro Energy A predict
• Foro Energy A focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• Foro Energy A has an active CSR program
• Foro Energy A ensures environmental safety in all its operations

4.2.5. Legal

• Foro Energy A is aware of local and global laws of business and human resource management
• Foro Energy A abides by all statutes – especially labour law, discrimination law, and employee safety laws

4.3. Porter’s Five Forces

4.3.1. Threat of substitutes

• High risk of replacements
• Substitutes offer similar products at low prices

4.3.2. The threat of new entrants

• New entrants need high financial investment
• New entrants need updated technology for keeping par with industry progress

4.3.3. Bargaining power of buyers

• Sales made to end consumer directly
• Stocking of products at retailers, as well as own-controlled retail outlets

4.3.4. Bargaining power of suppliers

• Multiple suppliers of raw materials
• Suppliers are chosen after careful inspection, and through contracts

4.3.5. Industry rivalry

• High industry rivalry
• Players offer similar products
• Players compete through marketing to influence consumers

5. Marketing Objectives for Foro Energy A: The Marketing Strategy of Foro Energy A

Foro Energy A marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for Foro Energy A brand and products by 30%
• Increase sales for Foro Energy A by 40% by the third quarter of the financial year
• Achieve a trial rate for new products of 10% during the first quarter of the launch
• Increase consumption rate of existing products by 45% during the current financial year

5.2. Enhanced brand recognition

• Increase top of mind recall by 65% during the current fiscal year
• Increase brand recognition by 80% during the first two quarters of the current financial year

5.3. Increased use of digital marketing

• Acquire 25,000 new online customers during the financial year
• Increase website traffic through using blogging and email tactics effectively by 505 during the first two quarters of the year
• Acquire 65,000 likes on the official Facebook page of Foro Energy A during the first quarter of the financial year

5.4. Retail Growth

• Contract with five more leading supermarkets in the first quarter of the year to stock product at eye level shelving
• Contract with two leading online retail sites – eBay and Amazon – to stock our products, and increase accessibility for consumers globally by the second quarter of the financial year

6. Segmentation of Foro Energy A

Foro Energy A marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

Foro Energy A has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• Foro Energy A has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for Foro Energy A, according to the marketing strategy, are in the following various life cycle stages:

• Single students
• Single graduates
• Single people living at home/not living at home
• Young couples without children
• Married couples with one to four children – all at home
• Married couples with one or two children in college
• Old married couples with an empty nest

6.1.4. Occupation

The marketing strategy devises the following occupations for Foro Energy A consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• Foro Energy A focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

Foro Energy A consumer segments have the following lifestyle characteristics:

• They aspire towards a better and higher living standard
• They want to be successful – professionally and socially
• They are not hesitant to try new things, products and services in life
• They are confident in their behaviour and attitude
• They are mainstreamers in their fields

6.3. Geographic segmentation

6.3.1. Region

• Foro Energy A has operations spread across the western developed countries such as America, the united kingdom, and the Netherlands
• It also has operations in emerging markets such as Brazil, India, and China

6.3.2. Density

• The focus of Foro Energy A remains on the urban part of the population

6.4. Behavioural segmentation

6.4.1. Personality

The marketing strategy defines personality characteristics for the consumers of the brand of Foro Energy A, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for Foro Energy A are regular and frequent users of the product

6.4.3. Benefits sought

• Consumers seek functional benefits
• The focus, however, is more on the emotional benefits reaped from the consumption of the brand

6.4.4. Degree of loyalty

• Consumers are very loyal
• Have an emotional attachment with the brand

7. Targeting of Foro Energy A Positioning of Foro Energy A

The marketing strategy of Foro Energy A targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for Foro Energy A is from middle to upper class
• The target market is ambitious and desires to purchase high-end consumer products
• This target market also seeks affordability
• To meet target market expectations, the Foro Energy A focuses on quality control

7.2. Mass marketing

• The marketing strategy of Foro Energy A focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• Foro Energy A makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• Foro Energy A does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, Foro Energy A also created the marketing mix under the marketing strategy as a singular one for the whole market – regardless of the segmentation divides.

7.4. Focus on quality

• Foro Energy A has created, developed, and maintained a brand that satisfies all consumers under the undifferentiated marketing strategy and mass marketing
• No compromise on quality has been made in the broad product portfolio
• To ensure the influence of a single marketing strategy, the Foro Energy A has also adopted a consumer-centric approach in its overall marketing strategy and operations as well
• This was used for targeting strategy as well as for maintaining growth

8. Company Competitive Advantage in the marketing strategy of Foro Energy A

The marketing strategy of Foro Energy A stands out from the clutter and competition. Foro Energy A has also achieved a sustainable competitive advantage in its marketing strategy. This is because of the following factors that Foro Energy A has utilized:

8.1. Cost-effectiveness

• Foro Energy A focuses on reaching consumers effectively rather than grandeur
• Foro Energy A focuses on developing an integrated marketing approach
• The use of digital marketing efficiently and expertly has helped the company reach a wider audience at a lower cost
• Foro Energy A has in-house copywriters for marketing campaigns which also helps in controlling costs
• Foro Energy A also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

• Foro Energy A has stayed updated with latest developments in marketing research and marketing knowledge
• Foro Energy A makes use of new and innovative tactics to reach its target consumers
• Foro Energy A also employs top of the field marketers to facilitate its marketing strategy and promotional campaigns
• Each marketing campaign launched by Foro Energy A is effective catchier and more influential than the previous one

8.3. Strong market research and consumer understanding grounded

• Foro Energy A marketing strategy is strongly grounded in consumer and market research
• Foro Energy A makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• Foro Energy A also incorporates consumer feedback in its marketing strategy
• Foro Energy A marketing strategy is based on market trends, and consumer needs and wants

8.4. Making effective use of emotional appeals

• Consumers’ emotional needs strongly influence all marketing objectives and marketing goals set by Foro Energy A
• In addition to fulfilling functional needs, Foro Energy A also tries to fulfil the emotional and psychological needs of the consumer
• Foro Energy A tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of Foro Energy A

Foro Energy A marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• Foro Energy A makes use of intensive distribution strategy because it is mass marketing
• Foro Energy A’s marketing strategy is based on undifferentiated segments, and thus an intensive distribution strategy allows high penetration and reaches in the overall market
• With the use of the intensive distribution, Foro Energy A tries to maximise its coverage of the markets where it's present
• For achieving the intensive strategy, the company uses hardcore 360-degree integrated marketing strategy and campaign to reach all consumers, across all segments in the market.

9.2. Direct distribution strategy

• Foro Energy A uses direct distribution country of origin as well as in locations where it has subsidiary operations
• The Foro Energy A also makes use of modern retailing channels
• Also, Foro Energy A makes use of e-commerce and makes a sale through online retailers, as well as through the company website
• Direct distributions have allowed Foro Energy A to increase market penetration and accessibility for consumers

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the Foro Energy A does not have a subsidiary
• In these offshore locations, Foro Energy A largely works through the export model
• This makes use of several intermediaries in between, before the product by Foro Energy A reaches the target consumers
• Intermediaries for Foro Energy A include not only the end retail outlets, but also sales agents, retail agents, and distribution agents in offshore locations

9.4. Selective distribution strategy

• For some products of its portfolio which are premium in nature, Foro Energy A makes use of selective distribution channel
• Foro Energy A has maintained a few outlets in the country of origin, and in selected offshore markets for these products
• These placements and locations are chosen based on the niche market that Foro Energy A has for its premium products
• These locations, placements, and marketing strategy helps make the company’s product selectively, but readily accessible for its niche target audience

10. Competition Analysis in the marketing strategy of Foro Energy A

The industry in which Foro Energy A operates is very responsive to market and consumer trends. Foro Energy A, therefore, needs to be vigilant in its market strategy towards competition – to make sure that it maintains its competitive advantage.

10.1. Strategic Group Analysis

• Foro Energy A competes with direct and close competition based on quality and price
• Consumers choose between different companies from the industry based on their functional offering
• Consumers have progressively evolved to strengthen loyalty and form an emotional bond with products that they consume
• Foro Energy A also competes, thereby, with close competition for building stronger brand image, increasing consume loyalty, and for forming strong emotional ties with the consumer

10.2. Industry rivalry

• Foro Energy A experiences high industry rivalry
• The barriers to entry for the industry are low, and new entrants gain easy access in the industry
• The number of local as well as global players is increasing

11. Marketing mix of Foro Energy A

The marketing mix for Foro Energy A as per the marketing strategy is the following:

11.1. Product

• Foro Energy A has a broad product portfolio
• Foro Energy A provides mass marketed products for all segments across the market undifferentiated
• Foro Energy A also provides some selected, premium products to niche customer groups
• All products in the portfolio consistently maintain high quality
• All products are tailored to meet consumer specifications, demands and needs across different regional markets
• The Foro Energy A maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• Foro Energy A wants to have a close, emotional and personal relationship with its consumers
• The company maintains high control in its distribution strategies – especially through direct distribution strategy
• The company has a presence in leading supermarkets
• The Foro Energy A also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• Foro Energy A also makes use of e-commerce to increase penetration and sales

11.3. Price

• The Foro Energy A prices its products so that its target consumers can afford it easily
• Foro Energy A uses relative pricing strategy for its products
• The price of Foro Energy A’s products include not only the high quality raw materials and value additions but also the enhanced customer experience they deliver
• The company’s pricing strategy allows it to enjoy stable revenue and profit growth

11.4. Promotion

• The Foro Energy A has a high budget allocated towards marketing activities
• The Foro Energy A invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed Foro Energy A marketing strategy to cap costs and expenses
• Foro Energy A also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• Foro Energy A also invests in traditional media channels to reach maximum consumers in the market

11.5. People

• Foro Energy A has a large workforce across different companies
• This workforce is continually trained to become experts in their respective fields of operations
• Foro Energy A hires without discrimination
• Foro Energy A ensures that its employees remain motivated through building an inspirational and creative organizational culture
• Foro Energy A focuses on also building and maintaining organizational commitment and loyalty in its employees

11.6. Process

• All activities at Foro Energy A - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at Foro Energy A are well defined, and well communicated to all employees
• All employees are trained to follow the processes internally to ensure consistently high quality as well as timely production and deliveries
• The systematic processes also ensure a smooth running of operations at the Foro Energy A

11.7. Physical evidence

• The physical evidence for Foro Energy A includes the company logo, company store designs, and the product packaging
• Satisfied and excited customers in the retail spaces of Foro Energy A, as well as during product consumption create a bubbling and an inviting atmosphere
• The e-commerce website for retail by Foro Energy A is also designed with a friendly customer interface to allow maximum interaction with the brand
• The store designs created by Foro Energy A for its retail space allow consumers maximum interaction with the products directly.

12. Promotional tactics for the marketing strategy of Foro Energy A

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The Foro Energy A interacts with the consumers directly, and engages with them, answers their queries and takes their feedback
• The company also shares information and build relationships with consumers through digital marketing
• Foro Energy A also makes use of blogging, emails, and content creations as a means of digital marketing

12.2. Conventional marketing

• The company uses a 360-degree approach in its marketing strategy
• This means that the company makes use of traditional marketing channels as well – such as TV, magazine adverts, and out of house placements

12.3. Influencers

• For direct, on-ground engagement, the company uses influencers
• Influencers interact with consumers directly, or through their channels of communication as a means of content creation and endorsing the Foro Energy A brand

13. Monitoring and evaluation of the marketing strategy of Foro Energy A

13.1. Changes in sales

• Foro Energy A regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of Foro Energy A
• Sometimes, Foro Energy A experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• Foro Energy A frequently conducts focus groups and surveys to identify its brand worth
• These methods also help the company identify brand value, brand recall, and brand recognition
• Focus groups allow Foro Energy A to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of Foro Energy A can also be seen through the revenue and profit growth
• Return on investment allows Foro Energy A to effective gauge the effect and influence of the marketing strategy, and measure its success

13.4. Attainment of marketing objectives

• All marketing objectives set by Foro Energy A are SMART
• The quantitative set against each of the marketing objective can facilitate attainment evaluation for the overall marketing strategy
• Successful and timely attainment of these marketing objectives highlight the success of the marketing strategy of Foro Energy A