Project Title
An evaluation study of the marketing project/policy, implemented by Good Mark Industrial Limited, since the year 2009 in aspects of exports, sales turnover, high precision of products, customer appreciation, sustaining the competition and the environmental effects on the performance of the company.
Rationale
Major Problems and Challenges
Good Mark Industrial Limited has been facing new problems and challenges in the recent past. The major problem is sustaining the competitive environment. Owing to the profitability of the business, more and more people are venturing into the field of plastic molding. Such companies are offering products at a lesser price than what Good Mark Industrial Limited is offering. In such circumstances, it is becoming difficult for Good Mark Industrial Limited to maintain its sales and profitability. Another problem being faced by Good Mark Industrial Limited pertains to the environmental hazards being posed by plastic which is the main raw material for its products. The company has to follow certain environmental standards to cope with the problem.
It is a well-known fact that plastic is a source of environmental pollution. Keeping this fact in view, many countries worldwide are taking steps to curb this problem. The governments of such nations are trying to formulate laws that would ban the use of plastic. Like for example, in India, some of its states have banned plastic carry bags. Paper or jute bags are being promoted and used instead of plastic bags. Similarly, many countries in the Western world discourage the use of plastic products. Researchers are trying to find substitutes for plastic.
The company has taken major steps to contain pollution. Good Mark Industrial Limited has got accreditation to some international standards such as ISO 14001 that pertain to the environmental effects of any organization’s products. The company is following all the guidelines stipulated in such standards.
In such circumstances, it has become very difficult for Good Mark Industrial Limited to find new markets for its plastic molded products. Moreover, there has been stiff competition from companies, local as well as international. One of the main local competitors is Chiu Ngai Plastic Moulding Factory from Hong Kong.
To sustain the competition in the market of plastic molded products, Good Mark Industrial Limited is paying great attention to the quality of its products. Owing to the competition, if and only if Good Mark Industrial Limited can have an upper hand as far as quality is concerned, the company will be able to survive and flourish. Another important factor is pricing. Good Mark Industrial Limited has to work on the price structure of its products as well. Quality and price are the two major components that are reviewed by buyers around the world.
Under the aforementioned circumstances, the company appointed me as its Marketing Supervisor to carry out the project, identify problems, and submit the report with my conclusions and recommendations.
Study Question
Keeping in view the competitive environment in the plastic molding industry, how do you think that Good Mark Industrial Limited will be able to sustain the competition, while simultaneously maintaining its quality, customer satisfaction, and employees’ job satisfaction?
Key Performance Indicators
- Increase/Decrease in the Sales turnover
- Increase/Decrease in the Operating cost
- Increase/Decrease in the Material Cost
- Increase/Decrease in the Overhead Expenses
The scope of the study of the project
- Research and analyze the various aspects by which Good Mark Industrial Limited can survive the competitive environment.
- Research and analyze the external and internal factors responsible for the impact on the performance of Good Mark Industrial Limited.
- Research and analyze the effects of its products on the environment.
Project aim and objectives
Once the research is completed, the same shall be put before the company’s top management, for them to study and approve the recommendations made in the research, to achieve the following objectives:
- Identify new environmental standards being followed.
- Implementation of such standards
- Identify the main competitors and assess what their qualities or policies are, that enable them to survive.
- Identify substitute for plastic
- Devise new ways that may help in reducing the cost of products, without much difference in the profit margin.
- Motivate the employees to work towards mutual co-operation and flourish.
Methodology/References
To identify the main problem Good Mark Industrial Limited is facing and explore alternatives for the company on how to sustain the competition and minimize pollution, thereby, adhering to the world environment standards, I will carry out various activities that will include the following:
- Refreshing myself on the available environment standards
- Conversing with the existing customers
- Exploring new pastures
- Conversing with our Research and Development Department
Research Methods
During my research, I will carry out the following analysis:
- Market analysis – This analysis will help us to know the current trends in the plastic molding sector
- Business analysis – This analysis will help us to know whether the present price structure of our company is on par with the competitors or not
- SWOT analysis – This analysis is the most favored and authentic way to know the strengths, weaknesses, opportunities, and strengths of a company. This will help us in knowing the four aspects mentioned above about Good Mark Industrial Limited.
- PESTEL analysis – This analysis is also used by businesses worldwide to know the environmental effects that can have an impact on their performance. This will help us in knowing the political, economical, social, technological, environmental, and legal factors that may affect the performance of Good Mark Industrial Limited.
- Porter’s Analysis – Porter’s Five Forces Analysis is also believed to be a reliable method of analyzing the problems and the root causes of the problems. This will help Good Mark Industrial Limited in identifying the problems and resolving them before they can affect the performance of the company.
Data collection method
During my research I will follow the following methods to collect the required data:
- Sales staff survey – The sales department is such a platform from where, with the feedback from the front-line sales staff, any problems being faced during marketing the company’s products can be known. Information can also be had on competitors, their products, pricing, quality, and customer feedback.
- Environment department – From this department, information can be had on the latest standards about an environment that the company should adopt.
- Internet – information about competitors in the market and their plus points.
- Existing customers – regarding any problems that they might be facing about our products.
- Import and Export department – for any new policies regarding exports that might have an impact on the company’s exports
- Research and Development Department of the company – for any possible substitute of plastic that is less hazardous or more eco-friendly, unlike plastic.
Background Information
Good Mark Industrial Limited is a Hong Kong-based company engaged in plastic molded products. The company was established in the year 1992. Within these twenty years, the company has grown sizeably. Initially, 300 workers have increased to around 5000 according to the current figures. The main area of specialization of the company is in the field of plastic molding, injection molding, mock-up sampling, and component molding. Owing to the specialized nature of work, the company employs a lot of engineers (there is an engineer in every five workers).
The company’s manufacturing facilities are located at Sha Jing Town, Chang An Town, and Suzhou. The company has its trading offices in Hong Kong and Shanghai.
Apart from catering to the local market, the company has customers throughout the world in countries such as Japan, Korea, North, and South America, Taiwan, and many European countries.
Good Mark Industrial Limited has many industry-standard certifications to boast of such as ISO 9001:2000, ISO 16949:2002, and ISO 14001:2004. It is noticeable that apart from the working standards, some of these standards pertain to the environmental standards as well. Since plastic is considered to be hazardous to ecological life, adhering to such standards is a moral responsibility of Good Mark Industrial Limited. Good Mark Industrial Limited is a recipient of the coveted ‘High Technology Enterprise’ award.
The core competencies of Good Mark Industrial Limited are:
- The precision that is difficult to imitate
- Products of high quality
- Good sales network in different countries
- Competitive prices
- Adhering to various environmental standards