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Recommendations I would suggest to Holcim Italia would have been:
- As the market segments in the cement industry are limited and are already identified I would recommend Holcim Italia to continue targeting all the buyers in the relevant market and to continue with mass marketing approach, but at the same time to segment the market in accordance with geographical area. Considering high freight costs and small breath of Holcim’s products it is better to focus on businesses inter-ested in buying cement which are situated within 200-300km from Holcim’s facto-ries.
- Another way to increase the market share and company’s customer base is to rent or buy warehouses in different parts of Northwestern Italy in terms of attract-ing clients from different places and give them an opportunity of saving on transport costs. The company may sell cement form its warehouses - points of sale. This will also let the company speed up the delivery processes and satisfy its customers. Thus, the company will increase its breath of products, and as a result the market share.
- Further the market should be segmented in accordance with needs of ce-ment purchasers. Holcim should make more effort on targeting those market seg-ments that seek for high-quality products or technical assistance and do its best in sat-isfying their overall needs. These segments are building companies, concrete manu-facturers that look for technical assistance because it is essential to their concrete production processes, and prefabricated building manufacturers and manufacturers of “products and industries” that look for high-quality products as well as for good tech-nical assistance. However, that does not mean that the company should not target re-tailers or DIY enthusiasts, it just should focus more on targeting the first 4 segments.
- Holcim needs to stimulate selective demand among competitors’ customers and in current customer base. In order to acquire competitor’s customers Holcim needs to position itself as a company which is able to provide not only high-quality products but also other benefits such as convenient payment conditions, good techni-cal assistance, personal approach etc. Moreover, Holcim reputation and brand are strong, so Holcim should make more effort in promotion. Holcim Italia is a part of Holcim Group – a very respected company in the world professional cement industry community. With the help of headquarters Holcim Italia may disseminate information within the country’s leading industry magazines and websites.
In order to expand demand among current customer base Holcim Italia needs to pay more attention to relational marketing as personal relations are still very im-portant determinant in making purchase decisions. Holcim also needs to develop complementary services in order to keep its customers satisfied and maintain high level of loyalty.
A. EXTERNAL ENVIRONMENTAL ANALYSIS4
1. PEST Analysis4
2. Industry Analysis – Competitors
2.1. Italy’s Cement Industry Analysis
2.2. Direct Competitors9
2.3. Overview of the Competition
2.4. Indirect Competitors
3. Market Analysis – Market Segments
B. INTERNAL ENVIRONMENTAL ANALYSIS
1. Evaluation of Mission Statement
2. Evaluation of Corporate Objectives
2.1. Economical Objectives
2.2. Non-Economical Objectives
3. Evaluation of Functional Areas
4. Evaluation of Current Marketing Strategies
5. Evaluation of Target Market
6. Evaluation of Current Marketing Strategies
6.1.Current Marketing Mix
C. SWOT ANALYSIS
1. Internal Environmental Analysis
2. External Environmental Analysis
How can Holcim Italia turn weaknesses into strengths
How can Holcim Italia use strengths to take advantage of industry or market opportu-nities
How can Holcim Italia use strengths to reduce the impact of external threats
RECOMMENDATIONS
RESOURCES
Appendix 1. Construction Activity in Italy
17 ИСТОЧНИКОВ
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КАК ЗАКЛЮЧЕНИЕ
Recommendations I would suggest to Holcim Italia would have been:
- As the market segments in the cement industry are limited and are already identified I would recommend Holcim Italia to continue targeting all the buyers in the relevant market and to continue with mass marketing approach, but at the same time to segment the market in accordance with geographical area. Considering high freight costs and small breath of Holcim’s products it is better to focus on businesses inter-ested in buying cement which are situated within 200-300km from Holcim’s facto-ries.
- Another way to increase the market share and company’s customer base is to rent or buy warehouses in different parts of Northwestern Italy in terms of attract-ing clients from different places and give them an opportunity of saving on transport costs. The company may sell cement form its warehouses - points of sale. This will also let the company speed up the delivery processes and satisfy its customers. Thus, the company will increase its breath of products, and as a result the market share.
- Further the market should be segmented in accordance with needs of ce-ment purchasers. Holcim should make more effort on targeting those market seg-ments that seek for high-quality products or technical assistance and do its best in sat-isfying their overall needs. These segments are building companies, concrete manu-facturers that look for technical assistance because it is essential to their concrete production processes, and prefabricated building manufacturers and manufacturers of “products and industries” that look for high-quality products as well as for good tech-nical assistance. However, that does not mean that the company should not target re-tailers or DIY enthusiasts, it just should focus more on targeting the first 4 segments.
- Holcim needs to stimulate selective demand among competitors’ customers and in current customer base. In order to acquire competitor’s customers Holcim needs to position itself as a company which is able to provide not only high-quality products but also other benefits such as convenient payment conditions, good techni-cal assistance, personal approach etc. Moreover, Holcim reputation and brand are strong, so Holcim should make more effort in promotion. Holcim Italia is a part of Holcim Group – a very respected company in the world professional cement industry community. With the help of headquarters Holcim Italia may disseminate information within the country’s leading industry magazines and websites.
In order to expand demand among current customer base Holcim Italia needs to pay more attention to relational marketing as personal relations are still very im-portant determinant in making purchase decisions. Holcim also needs to develop complementary services in order to keep its customers satisfied and maintain high level of loyalty.
A. EXTERNAL ENVIRONMENTAL ANALYSIS4
1. PEST Analysis4
2. Industry Analysis – Competitors
2.1. Italy’s Cement Industry Analysis
2.2. Direct Competitors9
2.3. Overview of the Competition
2.4. Indirect Competitors
3. Market Analysis – Market Segments
B. INTERNAL ENVIRONMENTAL ANALYSIS
1. Evaluation of Mission Statement
2. Evaluation of Corporate Objectives
2.1. Economical Objectives
2.2. Non-Economical Objectives
3. Evaluation of Functional Areas
4. Evaluation of Current Marketing Strategies
5. Evaluation of Target Market
6. Evaluation of Current Marketing Strategies
6.1.Current Marketing Mix
C. SWOT ANALYSIS
1. Internal Environmental Analysis
2. External Environmental Analysis
How can Holcim Italia turn weaknesses into strengths
How can Holcim Italia use strengths to take advantage of industry or market opportu-nities
How can Holcim Italia use strengths to reduce the impact of external threats
RECOMMENDATIONS
RESOURCES
Appendix 1. Construction Activity in Italy
17 ИСТОЧНИКОВ
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