Marketing strategy of POSCO and Quick Six Sigma

Posted by Zander Henry on Aug-22-2018

1. The vision of POSCO and Quick Six Sigma

The vision of POSCO and Quick Six Sigma is to be the leading quality service and product provider for customers. Being the best and the leading player means that POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

POSCO and Quick Six Sigma marketing strategy is grounded in its mission. The mission for POSCO and Quick Six Sigma is to be the favorite brand of the customers. This mission is essential for the marketing strategy of POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

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

3.1. Brand awareness

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

3.2. Brand association

• POSCO and Quick Six Sigma is directly associated with the brand name and product category
• POSCO and Quick Six Sigma has a broad product portfolio
• POSCO and Quick Six Sigma is associated with promising and delivering quality and innovative products
• POSCO and Quick Six Sigma is also associated with excellent customer service

3.3. Brand loyalty

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

3.4. Brand asset

• POSCO and Quick Six Sigma has a substantial brand value
• POSCO and Quick Six Sigma also enjoys the high financial worth
• POSCO and Quick Six Sigma focuses on building a reliable and robust employee base

3.5. Brand element

• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

The situational analysis will help in developing the marketing strategy of POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma.

4.1. SWOT

4.1.1. Strengths

POSCO and Quick Six Sigma marketing strategy can benefit from the following internal advantages:

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

4.1.2. Weakness

POSCO and Quick Six Sigma faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

POSCO and Quick Six Sigma has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

POSCO and Quick Six Sigma faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• POSCO and Quick Six Sigma operates I markets with political stability
• POSCO and Quick Six Sigma has funding support from the government for small businesses

4.2.2. Economic

• POSCO and Quick Six Sigma enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for POSCO and Quick Six Sigma
• Low inflation strengthens the financial position of POSCO and Quick Six Sigma

4.2.3. Social

• Higher education and awareness increases sales of POSCO and Quick Six Sigma predict
• POSCO and Quick Six Sigma focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• POSCO and Quick Six Sigma has an active CSR program
• POSCO and Quick Six Sigma ensures environmental safety in all its operations

4.2.5. Legal

• POSCO and Quick Six Sigma is aware of local and global laws of business and human resource management
• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma: The Marketing Strategy of POSCO and Quick Six Sigma

POSCO and Quick Six Sigma marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for POSCO and Quick Six Sigma brand and products by 30%
• Increase sales for POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

POSCO and Quick Six Sigma marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

POSCO and Quick Six Sigma has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• POSCO and Quick Six Sigma has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for POSCO and Quick Six Sigma, 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 POSCO and Quick Six Sigma consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• POSCO and Quick Six Sigma focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

POSCO and Quick Six Sigma 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

• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma Positioning of POSCO and Quick Six Sigma

The marketing strategy of POSCO and Quick Six Sigma targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma focuses on quality control

7.2. Mass marketing

• The marketing strategy of POSCO and Quick Six Sigma focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• POSCO and Quick Six Sigma makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• POSCO and Quick Six Sigma does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, POSCO and Quick Six Sigma 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

• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

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

8.1. Cost-effectiveness

• POSCO and Quick Six Sigma focuses on reaching consumers effectively rather than grandeur
• POSCO and Quick Six Sigma 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
• POSCO and Quick Six Sigma has in-house copywriters for marketing campaigns which also helps in controlling costs
• POSCO and Quick Six Sigma also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

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

8.3. Strong market research and consumer understanding grounded

• POSCO and Quick Six Sigma marketing strategy is strongly grounded in consumer and market research
• POSCO and Quick Six Sigma makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• POSCO and Quick Six Sigma also incorporates consumer feedback in its marketing strategy
• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma
• In addition to fulfilling functional needs, POSCO and Quick Six Sigma also tries to fulfil the emotional and psychological needs of the consumer
• POSCO and Quick Six Sigma tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of POSCO and Quick Six Sigma

POSCO and Quick Six Sigma marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• POSCO and Quick Six Sigma makes use of intensive distribution strategy because it is mass marketing
• POSCO and Quick Six Sigma’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, POSCO and Quick Six Sigma 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

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

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the POSCO and Quick Six Sigma does not have a subsidiary
• In these offshore locations, POSCO and Quick Six Sigma largely works through the export model
• This makes use of several intermediaries in between, before the product by POSCO and Quick Six Sigma reaches the target consumers
• Intermediaries for POSCO and Quick Six Sigma 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, POSCO and Quick Six Sigma makes use of selective distribution channel
• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

The industry in which POSCO and Quick Six Sigma operates is very responsive to market and consumer trends. POSCO and Quick Six Sigma, 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

• POSCO and Quick Six Sigma 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
• POSCO and Quick Six Sigma 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

• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

The marketing mix for POSCO and Quick Six Sigma as per the marketing strategy is the following:

11.1. Product

• POSCO and Quick Six Sigma has a broad product portfolio
• POSCO and Quick Six Sigma provides mass marketed products for all segments across the market undifferentiated
• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• POSCO and Quick Six Sigma also makes use of e-commerce to increase penetration and sales

11.3. Price

• The POSCO and Quick Six Sigma prices its products so that its target consumers can afford it easily
• POSCO and Quick Six Sigma uses relative pricing strategy for its products
• The price of POSCO and Quick Six Sigma’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 POSCO and Quick Six Sigma has a high budget allocated towards marketing activities
• The POSCO and Quick Six Sigma invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed POSCO and Quick Six Sigma marketing strategy to cap costs and expenses
• POSCO and Quick Six Sigma also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• POSCO and Quick Six Sigma also invests in traditional media channels to reach maximum consumers in the market

11.5. People

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

11.6. Process

• All activities at POSCO and Quick Six Sigma - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma

11.7. Physical evidence

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

12. Promotional tactics for the marketing strategy of POSCO and Quick Six Sigma

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The POSCO and Quick Six Sigma 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
• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma brand

13. Monitoring and evaluation of the marketing strategy of POSCO and Quick Six Sigma

13.1. Changes in sales

• POSCO and Quick Six Sigma regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of POSCO and Quick Six Sigma
• Sometimes, POSCO and Quick Six Sigma experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of POSCO and Quick Six Sigma can also be seen through the revenue and profit growth
• Return on investment allows POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma 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 POSCO and Quick Six Sigma