Marketing strategy of Scholtes Waterservices

Posted by Zander Henry on Aug-22-2018

1. The vision of Scholtes Waterservices

The vision of Scholtes Waterservices is to be the leading quality service and product provider for customers. Being the best and the leading player means that Scholtes Waterservices 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 Scholtes Waterservices

Scholtes Waterservices marketing strategy is grounded in its mission. The mission for Scholtes Waterservices is to be the favorite brand of the customers. This mission is essential for the marketing strategy of Scholtes Waterservices 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 Scholtes Waterservices

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

3.1. Brand awareness

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

3.2. Brand association

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

3.3. Brand loyalty

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

3.4. Brand asset

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

3.5. Brand element

• Scholtes Waterservices 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 Scholtes Waterservices

The situational analysis will help in developing the marketing strategy of Scholtes Waterservices 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 Scholtes Waterservices.

4.1. SWOT

4.1.1. Strengths

Scholtes Waterservices marketing strategy can benefit from the following internal advantages:

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

4.1.2. Weakness

Scholtes Waterservices faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

Scholtes Waterservices has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

Scholtes Waterservices faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• Scholtes Waterservices operates I markets with political stability
• Scholtes Waterservices has funding support from the government for small businesses

4.2.2. Economic

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

4.2.3. Social

• Higher education and awareness increases sales of Scholtes Waterservices predict
• Scholtes Waterservices focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• Scholtes Waterservices has an active CSR program
• Scholtes Waterservices ensures environmental safety in all its operations

4.2.5. Legal

• Scholtes Waterservices is aware of local and global laws of business and human resource management
• Scholtes Waterservices 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 Scholtes Waterservices: The Marketing Strategy of Scholtes Waterservices

Scholtes Waterservices marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for Scholtes Waterservices brand and products by 30%
• Increase sales for Scholtes Waterservices 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 Scholtes Waterservices 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 Scholtes Waterservices

Scholtes Waterservices marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

Scholtes Waterservices has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• Scholtes Waterservices has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for Scholtes Waterservices, 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 Scholtes Waterservices consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• Scholtes Waterservices focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

Scholtes Waterservices 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

• Scholtes Waterservices 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 Scholtes Waterservices 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 Scholtes Waterservices, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for Scholtes Waterservices 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 Scholtes Waterservices Positioning of Scholtes Waterservices

The marketing strategy of Scholtes Waterservices targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for Scholtes Waterservices 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 Scholtes Waterservices focuses on quality control

7.2. Mass marketing

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

7.3. Undifferentiated marketing strategy

• Scholtes Waterservices does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, Scholtes Waterservices 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

• Scholtes Waterservices 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 Scholtes Waterservices 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 Scholtes Waterservices

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

8.1. Cost-effectiveness

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

8.2. Innovation

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

8.3. Strong market research and consumer understanding grounded

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

9. Distribution Strategy of Scholtes Waterservices

Scholtes Waterservices marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• Scholtes Waterservices makes use of intensive distribution strategy because it is mass marketing
• Scholtes Waterservices’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, Scholtes Waterservices 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

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

9.3. Indirect distribution strategy

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

The industry in which Scholtes Waterservices operates is very responsive to market and consumer trends. Scholtes Waterservices, 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

• Scholtes Waterservices 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
• Scholtes Waterservices 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

• Scholtes Waterservices 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 Scholtes Waterservices

The marketing mix for Scholtes Waterservices as per the marketing strategy is the following:

11.1. Product

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

11.2. Place

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

11.3. Price

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

11.5. People

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

11.6. Process

• All activities at Scholtes Waterservices - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at Scholtes Waterservices 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 Scholtes Waterservices

11.7. Physical evidence

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

12. Promotional tactics for the marketing strategy of Scholtes Waterservices

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The Scholtes Waterservices 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
• Scholtes Waterservices 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 Scholtes Waterservices brand

13. Monitoring and evaluation of the marketing strategy of Scholtes Waterservices

13.1. Changes in sales

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

13.2. Surveys and focus groups

• Scholtes Waterservices 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 Scholtes Waterservices to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of Scholtes Waterservices can also be seen through the revenue and profit growth
• Return on investment allows Scholtes Waterservices 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 Scholtes Waterservices 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 Scholtes Waterservices