Assessing The Marketing Plan Of Accenture Commerce Essay Example

to hold a relationship with the client, and that creates valuable information, which, in bend, allows them to leverage their relationships with both provider and clients. Along with that information with engineering, and they have the substructure to revolutionise the cardinal concern theoretical accounts of major planetary constituents.In 1998, Keller discussed Accenture's competitive strategies which focused on speed to market, superior client services, producing high quality custom-made systems with top performance and relevant technology, and early adoption of the Internet. This led to the company's remarkable growth and profitability, making them one of the largest advisers globally. Accenture implemented various strategies to successfully sell their services worldwide, including build-to-order manufacturing to minimize risks and capitalize on price reductions faster than competitors. Directly selling services to customers eliminated middleman costs. Their rise to market leadership was a result of their unwavering commitment to providing an excellent customer experience through online and catalog sales. They prioritized factors like response times, product quality, valuable features, and ease of use that drive customer satisfaction. The entire organization from service providers to sales and support staff was involved in understanding and meeting customer needs. By the late 1990s, Accenture Computer Corp had achieved significant success in the industry.Accenture utilized the internet to reduce costs and increase sales in a highly competitive consulting market. Their website allowed clients who previously placed orders over the phone to now do so online. Clients had the freedom to select configuration options, receive price quotes, and order both single and multiple systems. Additionally, the website offered order tracking and support services for Accenture customers.

In 2009, Accenture operated by assisting organizations with creating and implementing innovative

operational and transformational solutions. This is especially important in today's business landscape due to various environmental factors that impact Accenture's operations. The economic environment has a significant influence on consumer behavior, particularly during times of recession when job security and income stability greatly affect purchasing decisions.

Furthermore, marketing efforts and advertisements also play a role in influencing consumers' purchases, as well as social class which can affect consumer behavior. Society as a whole, including occupational influences such as actors, doctors, engineers, low-level staff members, and parents all contribute to shaping purchase decisions.

Consumers' buying habits are influenced by factors such as their role as parents, the age of their children, and the nature of their occupation. For instance, individuals in higher-paying positions may find it easier to afford consultancy services compared to those in lower-level corporate positions.Different personal characteristics, such as extroversion or introversion, can impact the types of purchases individuals make. Being outgoing may lead to purchases of luxury and entertainment items, while introverted individuals may prefer online or mail order shopping.

Brassington and Pettitt (2000) highlight the significance of reference groups in analyzing Accenture consumers. These reference groups consist of close-knit people that consumers look up to and whose behavior influences their own. Famous individuals like Brad Pitt or immediate family members can be part of these reference groups.

Opinion leaders, who are admired and respected for their opinions and judgments, also play a role in consumer decision-making.

Moreover, Maslow's motive theory helps explain the consumer demands of Accenture customers. According to Maslow's hierarchy of needs theory, individuals strive to fulfill basic psychological needs such as hunger and thirst before progressing to meeting safety needs. Safety needs encompass

job security, a secure living environment, and assurance of a regular income.

Social needs come next in the hierarchy and involve the desire for attachment and love from others. People actively seek out relationships to fulfill this need.The subsequent level pertains to esteem needs, encompassing the desire for recognition and societal status among peers. Individuals endeavor to attain positions of power, job titles, and acknowledgment as these factors significantly contribute to their sense of status. The pinnacle tier within this hierarchy is self-actualization, denoting the realization that an individual has fulfilled their utmost potential in life. This need holds paramount importance as only individuals themselves can ascertain when they have attained self-realization. Accenture finds great utility in this concept when marketing its products or services to consumers since it emphasizes that every individual possesses distinct needs while striving towards self-actualization. Moreover, Accenture's clients similarly aspire to fulfill their esteem needs and achieve higher social standing through procuring services from the company.

Maslow's concept proves invaluable for businesses like Accenture as it aids them in comprehending and catering to consumer requirements and aspirations. Through internal analysis, Accenture has discerned that its corporate doctrine sets itself apart from other enterprises and contributes greatly to its positive reputation among prospective clients. Key elements characterizing Accenture's corporate culture include a focus on fostering loyalty among customers, cultivating direct relationships, promoting teamwork, and embracing global citizenship.

Concerning customer relations, Accenture places great value on creating loyal patrons by offering exceptional experiences and value propositions. They prioritize direct relationships with clientele while striving to provide top-notch products and services in line with technological standards.The Accenture team is determined to surpass their competitors by delivering

exceptional customer experiences. They recognize the essential role of the Accenture team in achieving ongoing success and stress the importance of teamwork. They also acknowledge the learning and growth opportunities available to each team member.

Accenture is dedicated to being a meritocracy, attracting and retaining top talent that represents their diverse global market. They value directness in all aspects of their business operations, including ethical behavior, prompt response to customer requests, open communication, and building effective relationships with clients, partners, suppliers, and internal stakeholders.

They strive to operate without unnecessary hierarchy or bureaucracy. In terms of global citizenship, Accenture believes in responsible participation in the international marketplace. They commit to understanding and respecting the laws, values, and cultures of the countries they operate in.

Their goal is to operate productively in all markets while advancing a healthy global business climate. Additionally, they aim to positively impact every community they connect with personally and organizationally.The company is driven by a strong desire to succeed in all areas of their operations. They are dedicated to achieving operational excellence, providing exceptional customer experiences, expanding into global markets, building a great reputation as both a company and workplace, and delivering long-term value to shareholders (Blythe, 2001).

A SWOT analysis highlights the company's strengths. It is widely recognized as one of the top consultancy providers with over 50 years of experience in the market. Additionally, it offers a broad range of corporate services and has effective promotional strategies. However, there are weaknesses that need to be addressed such as slightly higher pricing, improvements needed in customer service, and offering premium services.

There are various opportunities for growth including expanding global coverage, leveraging its unique selling

proposition to attract loyal customers, offering new services to emerging corporate companies, increasing consultancy offerings, and gaining prominence among key consumers.

Nevertheless, there are threats that need consideration such as economic recession leading to reduced disposable income levels among customers. The competition from rivals like IBM should also not be ignored along with changing customer preferences and limited brand loyalty within certain consumer segments (Baker, 2000).

In regards to phase two of the selling plan titled "Aims and Strategy Development," an executive summary is provided. The existing literature on strategic direction lacks clarity when it comes to explaining how companies formulate and implement their strategies.The text discusses various schools of strategic direction in understanding how companies make decisions and take action. These schools include design, planning, placement, acquisition, entrepreneurial, cognitive, power, and cultural schools. Different companies align with different schools based on their industry and nature. For industries requiring careful planning and significant investments to support decisions, the planning school is suitable. Consultancy companies facing uncertain futures often adopt strategies from the planning school to focus on the external environment. In analyzing Accenture's house scheme principles, it is important to consider the positioning school of strategic management as a best fit for its strategy choice. The positioning school views the strategy process as analytical in nature and Porter (1980, 1985) advocates for this approach by emphasizing establishing a profitable position within the industry as a firm's goal strategy.In order to achieve above-average profitability, a firm must analyze its industry using five forces: competition, threat of substitutes, threat of new entrants, and bargaining power of buyers and suppliers. Based on this analysis, firms can choose from three generic

strategies - low cost, differentiation, or focus - to capitalize on their position within the industry. Understanding the various components of a firm is necessary to determine the most appropriate strategy.

To understand the competitive context of a house, it is important to have a deeper understanding of its image. According to Porter (1980, 1985), competitive advantage comes from the distinct activities involved in designing, producing, selling, delivering, and supporting a product rather than looking at the house as a whole.

The value chain is a helpful tool for evaluating Accenture's primary activities (inbound logistics, operations, outbound logistics marketing and sales) and support activities (company infrastructure,human resources management technology development,and procurement)to identify areas of independence and interdependence.Accenture effectively utilizes its supply chain design while also maintaining low costs to provide differentiated offerings.

Earnings Est

The estimated earnings for Accenture are as follows:
Current Qtr: Feb-10
Next Qtr: May-10
Current Year: Aug-10
Next Year: Aug-11

Avg.Estimate:
0.61
0.71
2.70
3.01

No.of Analysts:
19
18
21
20

Low Estimate:
0.59
0.67
2.61
2.78

High Estimate:
0.68
0.75
2.79
3.26

Year Ago EPS:
0.63
0.68
2.68
2.70

Accenture focuses on upper-end clients through segmentation and differentiates itself by offering various unique selling propositions (USPs) within different segments.
The market for sales opportunities is highly segmented, making it important for Accenture to engage in targeted marketing.
Accenture caters to a large market with both niche and full-line strategies.
The brand is well-known and has been a major player in the consultancy market, with associations to many other well-known names.
Positioning analysis is seen as essential for growth in developing markets, particularly in Asia.
Accenture already has marketing affiliations in Asian market segments.

The main competition comes from IBM, but their similar promotion strategies could result in reduced joint advertising and promotion costs.
These companies can target a wide range

of segments, including consultancy and solutions for corporate clients.
Both IBM and Accenture use a distinction scheme to attract clients, but IBM focuses on a broad cost strategy, while Accenture's distinction can be seen in its various productsAccenture's future goal is to increase its market share and brand value in order to better compete in the consultancy industry and assist clients with transformations. The company aims to provide premium services that are innovative and appealing to individuals who have excess funds. Accenture also has unique selling points.

Currently, an analysis suggests that Accenture is in a cash cow position for growth strategies. As a result, it is advised for Accenture to halt investments in mass advertising and wait for the market to gain momentum. However, solely relying on the revenue potential from this product may not be recommended as it has already reached saturation.

An alternative approach is launching the trade name in the Asian market where the impact of recession has been less significant. This would require extensive advertising and distribution efforts to establish a presence in a new country. This strategy becomes necessary for Accenture's survival amidst global market saturation.

According to Ansoff's Matrix, there are four major strategies available for Accenture; however, product/service development is recommended as it currently faces challenges with product differentiation compared to competitors – an aspect that needs improvement.The incorporation of innovative technology is vital in attracting more business in current markets. Global customers seek value for money, which entails lower prices and good quality. Accenture recognizes the importance of enticing customers with new technology. The PESTLE Analysis examines the marketing environment, considering a company's history and relevant macro and micro factors

like stakeholder analysis. These strategic points are also essential in understanding the toothpaste market. This classification distinguishes between political factors (related to government policies and economic involvement) and economic factors (including interest rates, tax changes, economic growth, inflation, and exchange rates). Political factors such as government liberalization have helped consultancy companies withstand recessions while economic factors like higher interest rates or a strong currency can discourage investment or complicate exporting efforts. Inflation may result in increased wage demands and costs, whereas higher national income growth can drive demand for a company's products. During recessions, job loss prompts conservative consumer behavior leading to decreased purchases in the consultancy sector.Social factors, such as shifts in societal trends or consumer behavior, can affect the demand for a company's products and the availability and willingness of individuals to work. This is exemplified by how Accenture's customer base may differ across countries.

Technological factors involve the introduction of new technologies that lead to the creation of innovative products and processes. The advancements in online shopping, encryption, and computer-aided design have had a positive impact on business operations. Accenture acknowledges the significance of these technologies and incorporates them into its range of services to benefit clients.

Environmental factors encompass weather conditions and climate change. Changes in temperature can greatly influence industries like agriculture, tourism, and fast-moving consumer goods. As global warming becomes more prominent and environmental awareness increases, it becomes crucial for companies like Accenture to consider this external factor.

Legal factors pertain to the legal environment in which companies operate. There have been significant legal changes in recent years that have influenced business behavior. These changes can impact a company's costs through the

development of new systems and procedures, as well as demand through customers' likelihood of purchasing goods or using services. Therefore, legal factors play a critical role in Accenture's analysis.In order to gain a competitive advantage in 2010, Accenture must focus on specific areas. Currently experiencing a decline in market growth, the company is seeking expansion into other countries. With their primary focus being consultancy, Accenture has priced their products higher than competitors. Given the presence of strong rivals like IBM, it is crucial for Accenture to establish a robust competitive advantage. Effective supply chain management across the globe can help achieve this goal. Understanding Accenture's strategic choices is important in supply chain management (SCM) as it determines the company's priorities and activities. SCM involves managing relationships between organizations involved in producing and delivering products and services to end consumers. For Accenture, SCM plays a critical role by improving efficiency and enabling a low-cost strategy while adding value for customers and differentiating their offerings. To increase profitability, Accenture adopts a low-cost strategy that focuses on increasing sales volume and reducing unit costs through economies of scale, learning curve effects, effective purchasing decisions, and logistics strategies. It is crucial to optimize individual links within the supply chain while also considering efficiencies across the entire supply network to avoid disruptions.
However, the immediate supply chain is where most efficiencies are likely to be found due to greater control. In terms of pricing, Accenture should consider reducing prices to be competitive with IBM as it is not positioned as a premium brand. The company's value is derived from its intangible assets and ability to leverage them within the value chain.

Additionally, Accenture provides a variety of services supported by good customer care.

Furthermore, it is crucial for Accenture to diversify and expand its business and profits by incorporating engineering into various fields. When implementing a differentiated strategy, Accenture should focus on aspects of their products or service provision that are most valuable to consumers. This includes determining which parts of the supply chain should be handled in-house, outsourced or potentially acquired.

In-house activities add the most value and leverage Accenture's specific expertise while outsourcing could be considered for peripheral activities within the value chain. Instead of strictly adhering to one of the three generic strategies, it is important for Accenture to adopt a hybrid approach to business. The key lies in ensuring alignment between Accenture's corporate strategy and its marketing mix approach.Accenture's research on marketing mix has focused on international marketing mix management and decision-making in stock management. The research explores the potential virtuous and vicious cycles apparent within Accenture. In summary, Accenture is currently facing challenges in their marketing mix, particularly in service management. This is due to a lack of understanding of feedback mechanisms in the marketing system, which leads to both successful and unsuccessful outcomes.

To address these challenges, Accenture prioritizes inventory management, demand elaboration, marketing mix re-engineering, and design. This work is relevant to the bullwhip effect and marketing mix redesign happening at Accenture, which was influenced by Procter & Gamble's experience. As information moves up the marketing mix hierarchy, there is distortion that creates negative effects in the market.

The lack of synchronization between members amplifies with more members involved and defaults in sales system linkages occur. Consequently, inventory accumulates due to mismatches between

supply and demand features at various stages of the marketing mix. Since 2004, Accenture has been actively working to address this issue of supply and demand mismatch.

Effective marketing mix management involves coordinating materials, information, and finances as they flow from suppliers to manufacturers to wholesalers to retailers and finally reaching consumers. A comprehensive understanding of a marketing mix includes considering organizations, individuals,
technology,
information,
and resources involved in transferring a product from the manufacturer to the end consumer.The supply chain plays a crucial role in the marketing mix, as it facilitates the movement of raw materials to manufacturers, final products to wholesalers, and ultimately to consumers. Understanding the components of marketing mix management is essential for effective planning and integration. These components include production, supply, inventory, location, transportation, and information.

To mitigate the risks associated with marketing defaults, Accenture employs demand forecasting. This is necessary because demand tends to be unpredictable and rarely remains stable. To account for this variability, Accenture maintains a safety stock or inventory buffer. The higher up the supply chain towards raw material manufacturers we go, the greater the observed demand and consequently, the larger the required safety stock.

As demand fluctuates, downstream providers adjust their orders accordingly. During periods of increased demand, they increase their orders while during decreased demand they decrease their orders. This fluctuation amplifies oscillations throughout the supply chain which becomes Accenture's responsibility.

Ensuring that no consumer goes unattended is paramount in marketing mix management. There are several factors that contribute to negative impacts on marketing mix performance. One such factor is forecast errors caused by uncertainties surrounding future changes in demand over time. Even products with consistent demand patterns can experience sudden

shifts due to unknown variables or factors beyond control.
The text below highlights the possibility of an exaggerated response by the company to supply backlogs. The diagram illustrates Accenture's supply chain, which encompasses supplier relationship management, internal SCM, and customer relationship management. This chain starts with regulating natural resources and progresses through stages such as raw material supply, production, storage facilities, and finally reaching consumers. The service provided includes pricing and post-sale customer care. By incorporating this strategy effectively into their marketing mix scheme, Accenture can potentially improve their overall revenue.