Market Orientation And Business Performance - Myassignmenthelp.Com

Question: Discuss about the Market Orientation And Business Performances. Answer: Introduction The strategy of internationalisation or expansion of certain brands to a different area or a different country is related to increasing the profitability of the organization. The process of increasing the involvement of business enterprises in the international markets is known as internationalization. Internationalization involves many different theories which are used to explain the international activities of the chosen organization. The business enterprises who are keen on expanding their business on an international basis need to understand the different cultures of the countries where they wish to start their operations (Aghdaie and Alimardani 2015). The strategies related to expansion of the business in different countries can be effective if the entrepreneurs have the clear understanding regarding the cultures, values and behaviours of the different countries. The management of the business organizations need to be concerned about the high quality levels, innovation and commitment towards corporate social responsibility. This will help the organization in providing the best services and goods that are possible to the consumers who belong to different cultures or countries (Andersson, Evers and Kuivalainen 2014). The report is based on the analysis of the international expansion plans of Kenko Wellness Spa. The organization is based in and operates in Singapore and they are planning to expand its operations in Myanmar. Kenko Wellness spa is considered to be one of the biggest chain of spas which provide services like Foot Reflexology and other spa treatments as well. The organization was founded in the year 1991 and they have an experience of more than 25 years in the spa industry (Kenko.com 2018). Evaluating the target market of Kenko Wellness The target market segmentation strategy is mainly related to the action plan that the organizations can adopt. The strategies mainly outline the business plans of the organizations which are related to the ways of reaching the intended customers. The demand of the consumers and the ways by which the organization responds to these demands are related to the strategy of the company to deliver products of high quality which are linked to great customer service as well. The target market of the organizations is determined so that they can aim the advertising and marketing efforts to a specific group of people (Baker, Grinstein and Harmancioglu 2016). The products need to be developed based on the requirement of a particular market so that the appropriate prices, channels of distribution and the promotional strategies can be formed. The definition of the target market of the organization depends on the research that is conducted by the organizations based on different characteristics of the group of people. The demands of the consumers are also analysed based on the psychographics and demographics of the selected target market. The consumers of a selected target market may have similar demands and this is judged by the organization so that they can offer the services or products accordingly. The companies sometimes need to analyse the different groups of people within the target market itself (Boso et al. 2017). These groups can be referred to as the sub-targets. The groups of people within a selected target market who have different needs and demands are analysed in this approach. The target segment of the companies is analysed b ased on the needs and demands of the group of people who are part of that market segment. The target market segment of Kenko Wellness is also analysed based on the different aspects that are related to wants and needs of the group of customers. The market segment of wellness centres and spas are decided based on many different factors. The health concerns that are currently affecting the target segment are the major factors while deciding the target market. The health anxieties that can occur in the future for the group of people who are related to the target segment are the second important factor that can decide the target market (Boso, Hultman and Oghazi 2016). The dissatisfaction of the target market group with their current health status acts as the third factor that can decide the target market. The health-related experiences that have affected the target group previously also affect the decision that is taken by Kenko regarding target market selection. The concern of the target market segment related to the health of their families also has an effect on the selection of target market. The self-efficacy levels of the target group segment can also help the organization in taking their decision regarding market selection. The presence related to the psychiatric and psychological considerations of the group of people in the target segment acts as a factor in the selection of target group (Campbell, Goldfarb and Tucker 2015). The sensitivity of the group of prospective consumers related to the prices of the packages is also a factor related to the selection of target market. The self-direction level of the consumers affects the decision of the organizations related to selection of target market. The gender related factors of the target market segment affects Kenkos selection of target markets. The above discussed factors majorly affect the target market selection of Kenko Wellness spa (Christodoulides, Cadogan and Veloutsou 2015). External analysis of the market of Kenko Wellness spa Myanmar is located in South Asia which borders the countries including China, India, Thailand, Bangladesh and Laos. Myanmar is famous for the remains of the ancient civilization and the historical monuments as well. The ornaments that were worn by the women of Myanmar in the ancient times and many other items related to the heritage of the country makes Myanmar an attractive destination for tourists. The major part of the population of Myanmar are comprised of Buddhists and their currency is known as Kyat. The economy of the country is mainly driven by the incomes that are generated by agriculture. Myanmar is considered to be a relatively safer country with lower rates of crimes (Cotter and Fritzsche 2014). Kenko Wellness has been considering to expand its operations in Myanmar and the market analysis of the country will be done in the report. The political state of Myanmar has been turbulent from the year 1969. The democratic country came under the rule of General U Ne Win for almost twenty-six years. The economic conditions of the country became worse during this period of time. Myanmar received its freedom in the year 2010 and the presidential elections were fought in the year 2016. The country is now in a stable political condition and the business environment for Kenko Wellness can be suitable. The agricultural revenue of Myanmar comprises of 59% of the total GDP and the weather conditions play a major role in the determination of the total produce of the entire year (Figueira-de-Lemos and Hadjikhani 2014). Myanmar had experienced landslides and floods in the year 2015 which had an immense effect on the GDP of the country. However, the current economic conditions of the country are favourable for the business venture of Kenko Wellness as they have been able to recover from the fall in the economy after the natural disasters. The social conditions of Myanmar are however not that favourable as there are major differences between the beliefs and likes of the two communities that are present in the country which are Buddhists and Rohingya Muslims (Franchiseindia.com 2018). The violence between these two communities could not be solved by the government and this has led to social unrest. The health and education sectors of the country are underdeveloped in nature. The social unrest in Myanmar can have negative effects on the business of Kenko Wellness. The technological development of Myanmar began in the year 2010 when the economy had started opening up. The penetration of mobile technologies and internet is however still quite low which is 4% and 2% respectively. The region of Myanmar has been identified by many other companies as well including Cisco which is an American organization. The prospects of future growth of Myanmar are also quite high which can help in the expansion of Kenko Wellness in the country. The entry of foreign telecom companies in the Myanmar telecom market has led to huge development of the country (Girdzijauskaite and Radzeviciene 2014). Kenko Wellness can therefore gain a lot from the progress and development of the Myanmar market. Myanmar has been facing major environmental problems due to the activities like illegal logging and deforestation. The issues related to these activities are becoming stronger day by day. This problem can further affect the business of Kenko Wellness as it is related to the natural processes of providing health related solutions to the local citizens. The judicial system of Myanmar is not at all efficient in nature. The corrupt legal system of the country has been creating problems for the foreign investors. This issue can act as a negative factor for the operations of Kenko Wellness in the country (Grnig and Morschett 2017). The analysis of the different factors related to external analysis of Myanmar have shown that, this country is suitable for the expansion of Kenko Wellness spa. Market entry recommendations for Kenko Wellness The market entry strategy that is recommended for Kenko Wellness spa is franchisee style. The franchisee is the type of business that runs in the location of the business that is purchased by the franchise owner. The look of the products, the names of the products and the prices are already decided by the main owners of the business and the franchise owners cannot make any changes to the different factors of the products or services. The franchisor determines the different factors that are related to the products and services provided by the franchise. The franchisee mainly pays a part of the revenues or a flat fee to the franchisor of the business (Hajli et al. 2014). The sales that are made by the franchise owner are related to the fees that are paid to the franchisor. The purchasing of the franchise of the popular services or products can be quite satisfying for the different franchise owners. The establishment of the franchise business gives the owners of the major advantage to r un their own business and further gain experience from the franchisors as well. Kenko Wellness can expand their business operations in Myanmar with the help of the franchise process as this will require minimum amount of investment. The organization can expand their stores in many locations of the country with the help of this process. This will the organization to build their stores all over the country (Helm and Gritsch 2014). The economic conditions of Myanmar are not quite good for the past few years and this is main reason that is related to the expansion of the organization with the help of franchising. The process of franchising will provide Kenko Wellness with the opportunity to open their wellness centres all over Myanmar. The franchising style of business will can further help Kenko Wellness Spa to increase the awareness of the brand among the citizens of the country. This will help in increasing the customer base of the Wellness Centre in the other countries (HOH 2018). Kenko Wellness Spa is known to be among the first spa centre in the world to have introduced Fish Spa about four years ago. The response that has been received for this spa has been great. The expansion of Kenko with the help of franchises will help the organization to introduce their unique spa treatments all over the world so that everyone can get the benefits of this service. Kenko can also plan to start its own academy for teaching courses related to Foot Reflexology. This will further help them in increasing the levels of their staff so that they can be recruited in the different franchises that are opened all over the country (Hopkins 2017). Marketing strategy of Kenko Wellness Spa The marketing strategy of Kenko Wellness is related to the ways by which they can generate the awareness about their brand. Marketing strategy of an organization is mainly related to the forward-looking and long-term approach related to the planning of the goals so that the sustainable competitive advantage can be gained. The analysis of the strategies of the organization is a part of the strategic planning. The major goal of strategic planning is to evaluate the market in which the organization is operating and further formulating a strategy to earn a market-oriented competitive spot (Ifranchisemalaysia.com 2018). The marketing strategy of an organization is related choice of the different policies that are aimed towards improvement of the competitive position of the organizations in the market and analysis the opportunities and challenges that are available. The mapping of the further direction of the organization in the coming years is considered to be a major part of the marketing strategy. The threats that are present in the market are can also be detected with the help of strategic planning (Kleppe and Mossberg 2015). The identification of business opportunities that can be successful in the near future and the strategic gap of the organizations can also be identified with the help of strategic planning. The major marketing strategy of Kenko Wellness Spa is related to the blogs that are present in the website of the organization. The blog of the organization contains all the related information that are required by the consumers to decide on the purchase of the different packages that are offered by Kenko. The major service that is provided by Kenko Wellness Spa is Fish Spa which has been introduced by Kenko. The main tagline of Kenko is Pamper your feet with Kenko. The different ways by which the consumers can pamper themselves include, getting pedicure or manicure treatments and a foot massage (Laufs and Schwens 2014). The marketing strategy of Kenko Wellness includes the showcase of the various awards that have been received by them all through the years. The services that are provided in the spa are also showcased in the website which include, Body Massage, Foot Reflexology, Swedish Massage, Shoulder Massage, Foot-Hand-Shoulder Massage, Acupressure Head Massage, Spa baths and Fish Spa. The major strategy Kenko Wellness is related to the opening of franchises in many other countries of the world. The organization had also won the award of the Promising Franchisor of the Year 2010. The staff of Kenko Wellness are the major sources of strength and inspiration as they are the ones who have been able to take the organization to new heights. Kenko has also been searching for partners do that they can further expand their operations in many other countries (Lee et al. 2015). Kenko Wellness has planned to train the managers of the organization regarding the process of reflexology so that they can serve the consumers in a better way. The company has been making several changes in its operations so that they serve the customers better. The changes include the changes in the chairs so that the clients can sit in comfortable positions and thereby enjoy the experience of the spa. The type of fishes in the spa were also changed as the Asian fishes had not been much effective as compared to the European breed of fishes. Kenko had to replace the fish with a costlier alternative so that they can satisfy the needs of the consumers (Sandberg 2014). The major strategy of the organization is thereby related to the satisfaction of the customers and expanding their operations. The customers are therefore the major part of the business of the organization and they have been trying their best to provide them the greatest services. Marketing mix of the services of Kenko Wellness Spa Products The services that are offered by the spa are Couple Massage, Romantic Couple Spa, Swedish Massage, Kenko Massage, Foot Reflexology, Shoulder Massage, Combo Spa, Manicure, Spa baths. The franchise salons of the organization will also provide the same services and many other introductory discounts will also be available (Tolstoy 2014). Price The prices of the packages that will be provided in the franchise salons of Kenko Wellness Spa are as follows, Kenko Unique Massage 4000 Kyat Swedish Massage 3000 Kyat Foot Reflexology 3500 Kyat Shoulder Massage 1500 Kyat Acupressure Head Massage 1500 Kyat Foot-Hand-Shoulder Massage 2000 Kyat Fish Spa 5000 Kyat Couple Massage 4000 Kyat Romantic Couple Spa 4000 Kyat Manicure Pedicure 2000 Kyat Combo Spa Ritual 3500 Kyat Promotion The promotional activities of the organization are conducted with the help of the social media page that is provided in the website of the organization. Other ways promoting the products and services of the spa include, blogs, internet marketing with the help of mails, promoting their services with the help of hoardings, mobile messages (Weaver et al. 2014). Place The franchise salons of the Kenko Wellness Spa is being opened in many locations in Myanmar. The main locations where the salons of Kenko Wellness will be opened are as, Mandalay, Yangon, Bagan. These areas are famous tourist destinations and the reason for opening the salons of Kenko Wellness in these areas are that the tourists will be attracted towards the salons and this will increase their profitability. The marketing of the services and products of Kenko Wellness will be implemented in the new business area of the organization, which is Myanmar so that the business expansion can be successful (Weismann, Buscaglia and Peterson 2014). Conclusion The report can be concluded by saying that Kenko Wellness Spa can expand their business in Myanmar in a profitable manner. Although there are a few problems that can cause problems for the organization, however, the country has great potential for future business prospects. This will help the organization in increasing its operations and profitability as well. Myanmar has untapped potential for any type of business organization. The developing economy and beautiful landscapes have also been able to attract the tourists so that they can increase their business. The profitability of the organization will also increase which can lead to successful expansion of the organization. The different aspects related to the expansion plans of Kenko Wellness Spa are discussed and the marketing mix of the products and services that are offered by the organization are also analysed. The report is further based on the mode of market entry for the organization. The market entry mode that has been sele cted for Kenko Wellness is franchise. This is the most suitable style of market entry as it requires less investment and the organization has already been expanding its operations with the help of this method. The report can be concluded by saying that the spa can expand its operations successfully in Myanmar. References Aghdaie, M.H. and Alimardani, M., 2015. 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