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Marketing Management

INDIVIDUAL ASSIGNMENT

Submitted By:

Aldi Kurniawan (C0324TJTJ0214)


Submitted To:

Mr. Geoff Lancester and Mr. Terry Johnson

Master of Business Administration


London School of Commerce
2014

Marketing Management
Individual Assignment

Case Study Sheffield Forgemasters International

Table of Contents

List of Figures............................................................................................................................3
Introduction................................................................................................................................4
Why is it so important for businesses like Sheffield Forgemasters to invest in R&D? Explain
how R&D has enabled Sheffield Forgemasters to gain competitive advantage........................5
What policy guidelines can you suggest to Sheffield Forgemasters to ensure that it retains or
improves its position in a very competitive market place?........................................................9
Has Sheffield Forgemasters followed a product oriented approach or a market orientated
approach. In your answer debate the pros and cons of each of these approaches....................14
Advise Sheffield Forgemasters on what continuous marketing research programme it should
have in place in order to keep up to date with business trends and customer needs................18
Conclusion................................................................................................................................22
References................................................................................................................................24

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Case Study Sheffield Forgemasters International

List of Figures

Figure 1: Invention and Innovation....5


Figure 2: Marketing Mix elements...11
Figure 3: The Key components of Marketing positioning Strategy.12
Figure 4: Different Product and Market Oriented14
Figure 5: Example of Product and Market Oriented17
Figure 6: Example of Market Research ...20

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Case Study Sheffield Forgemasters International

Introduction
Every company have to develop their own business in order to remain competitive in the
global market. Business development itself is the functions of management in order to
develop company business. To develop the company business, there is some function that
company should focus not only about marketing development but also research and
development, product development, financial support and management analysis.
Research and development is one of the functions that related to improve the ability of the
company through the implementation of a series of research that aims to provide or obtain
formulations and new ways are more effective for the company output research in the
development of new or existing products, services or processes. One of the companies that
really focus on Research and development function to gain competitive advantage is
Sheffield Forgemasters International (SFIL). This company is one of the global market
leaders that focus in a broad range of heavy steel forgings and steel castings as well as
stocking steel ingot and bar.
This report will more focus about the importance for SFIL to invest on research and
development to get competitive advantage, the policy guidelines that should applied by SFIL
in order to improve its positions in very competitive market, which approach (product
oriented approach and market oriented approached) should be taken by SFIL, and the
marketing research program should had in place in order to keep up to date with business
trends and customer needs.

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Marketing Management
Individual Assignment

Case Study Sheffield Forgemasters International

Why is it so important for businesses like Sheffield


Forgemasters to invest in R&D? Explain how R&D has enabled
Sheffield Forgemasters to gain competitive advantage.
Sheffield Forgemasters International is one of the companies that really focus on research and
development. To solely focus on research and they established a subsidiary company that is,
RD26. The Research and development itself is formed from two main words which is
Research and Development. Research generally is referring to find specific information
using scientific and systematic ways. The Advanced Learners Dictionary of Current English
(Anon., 1952) define research as a cautious analysis or inquiry specifically through for new
evidences in any divisions of knowledge. And Development is a process to transform the
final concepts that are generated from research in order to get a product or service that are
ready to full scale production then being launch and commercially. So research and
development is the function, that find a new or revise an existing product or process in order
to improve the value of the company so that the company will improve in a changing and
competitive market.
Research and development will always related to new product development. New product
development itself can be founded by Innovation and invention. Innovation is new creative
solutions that are up to date with conditions and trends, and satisfy the needs and desire of
customer and stakeholder (Rainey, David L., 2008). And invention is the discovery or
creating something new (Doyle and Stern, 2006).

Figure 1: Invention and Innovation


Sources: http://www.ancillaryips.com/?page_id=716

Figure 1 above show how the invention can become innovation. An invention can become an
innovation if it is practical and marketable. Innovation can be in variety forms. It doesnt
always associated with new product development but also it can be applied as the renewal of
the existing product or a new ways of processing technology that improve the efficiency and
the effectiveness production for the company. There are 7 types of innovation (Lancaster and
Massingham, 2011): Entirely new products, Improved performance products, new application

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Case Study Sheffield Forgemasters International

products, Additional function products, Lower cost products, Restyled products, and
Repackaged or renamed products.
By doing research and development, risk of cost, times, scales, and technical issues cant be
eliminated. But, Research and development is the key factor of many company when wellplanned and used, support a business to produce increased wealth over period time. This
Research and development also the key factor to SFIL that make SFIL become a global leader
in their industry. There are many benefits that would be obtained by SFIL by investing in
research and development. These are some reasons why research and development is
important for SFIL:
1. Developing Unique products (USP)
With research and development, SFIL can produce a product that is different
and better than other competitor product. Based on research method that had been
research by their, the product that produced will meet the needs of the market. One of
their inventions that are invented by research and development SFIL is they found
material advances that can develop other products with higher strengths and
toughness using specific grades of steel. This invention is benefit for SFIL because
this invention will be one unique selling point that can attract the market to use or buy
SFIL material or product.
2. Long term income
Long term income is one reason why it is so important for SFIL to invest on
Research and development. Long term income means the company will get the stable
income along the years. This long term income will be gained when the product
always seen by market along the year. So that the company will get fix income from
that product. One example that SFIL gain long term from term from their product is,
they created largest tube-sheets ever produced by designing a special rotating forging
tool and a six-metre diameter forging platform. This component is used in civil
nuclear power and become international nuclear standard at the first attempt. This
means, the market will having more trust and prefer to buy this product over the
competitor product because of this product is the first nuclear standard international.

3. Getting new opportunities

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By doing research for technologies that havent been developed, it will give
new opportunities that may become demand in the future of the market. For example,
in the past, nuclear was considered as dangerous technology but by the research of
nuclear technology, this nuclear industry is seen as a good solution to meet future
energy demand. SFIL research and development team has identified this nuclear
industry in the past as key factor for energy demand in the future. So they focus about
the nuclear technology and finally SFIL become the first in the world to produce
large-scale cast and forged nuclear components helps to differentiate SFIL with their
competitors.

4. Enhanced reputation
By doing research and development, SFIL get many advantages such
Developing unique product, gaining new opportunity, long term income, and gain
competitive advantage. When this this advantage obtained by SFIL, The reputation of
SFIL will be increased. Another example that research and development improved
SFIL reputation is when SFIL found advanced material grouting that is needed in
order to fix watertight structure problem. And finally SFIL won Cast Metals
Federation (CMF) Cast Component of the Year Award 2012. This award will reflect of
the quality of SFIL and make market have more trust on SFIL so that the reputation of
SFIL will directly increase.
These four points make the research development cant be apart from SFIL because without
research and development, SFIL cant grow up and compete with their competitor. So
research and development is one key of success for SFIL in order to make them become
global leader in the future.

Build a competitive advantage is one benefit will be get by SFIL by doing research and
development. Competitive advantage means, the benefits that will got by SFIL because they
have their competitor. So with the presence of many other competitors product in same
industry, research development team of SFIL should be forced to invent or make an
innovation product in order to develop better product than the existing competitors product.

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Case Study Sheffield Forgemasters International

As mention in the study case, recently SFIL focus in finding a new process in order to get
optimization of its process, material development, reducing their cost production and
improving their product quality. This new process will maximize the efficiency and
effectiveness of the production. This is one example how SFIL try to gain the competitive
advantage. To gain more competitive advantage, SFIL research and development teams also
required to be supported by other function, such as market development, new business
processes, financial support and management analysis.

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Marketing Management
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Case Study Sheffield Forgemasters International

What policy guidelines can you suggest to Sheffield


Forgemasters to ensure that it retains or improves its position
in a very competitive market place?
In order for Sheffield Forgemasters International to retain or improve their position in the
competitive market, the company should have a market positioning strategy. Peter Doyle
(1983) defined Position strategy as a strategy of the company that had the target market
segment in order to serve and choice the differential advantage with their strategy to keep
compete with the competitor in the same segment. SFIL have many subsidiaries that are
engage in different engineering areas, so this marketing positioning strategy is the best policy
that should be considered by SFIL because in order for SFIL to keep grow up, this market
positioning strategy will be able to help each subsidiary to get the customer, competitor and
gin the competitive advantage. This marketing positioning strategy is formed by 3 key
components: customer targets, competitor targets, and competitive advantage (Brooksbank,
1994).

Selecting the customer target


SFIL have many subsidiaries that ere engage in different engineering areas, in order to

get the market right, they should be able to identify their customer target and segmented it
differently each subsidiaries. Market segmentation is the point to enable business to target
the customer right in marketing process. Market segmentation itself is a process to
separate the customers into some groups or segmentation. The customers that have same
characteristic or behavior will be collected in to the same group or segment so that a
company can target and marketing them efficiently (Lovelock and Wirtz, 2011).
Generally, market segmented into geographic segmented (regional, local, international,
etc.), demographic segmented (sex, age, etc.), or psychographic (behaviour, attitudes,
etc.). But, actually there is no correct ways how to make a group of segment. A company
can group as creative ways to gain potential competitive market (Hooley and Saunders,
1993).
The target customer and the customer segmentation of SFIL should be different each
subsidiaries. For example the target customers of SFIL in steel forging area are general
industry, building and construction industry, and automotive and transportation industry.
This should be different with the target customer of the nuclear or in power generator
area.

Selecting competitor target

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To gain that competitive advantage, SFIL should select and know their competitor
target. Bourne steel, Celsa Steel, and Barret Steel are SFIL competitor that engages in
steel area in UK. By knowing their competitor, SFIL can identify their competitor
strength and weaknesses. They should also about know their strength and weakness
clearly so that they can develop the product that is better that the competitor. Most of
company success because they avoid head on competition by have unique selling point of
their product (Brooksbank, 1990).

Defining competitive advantage


In order to get a competitive advantage, SFIL should have strategy to distinguish their

product from their competitor. It means that, the company should decide how their
business going to compete in market. For example, SFIL should have objective to develop
a unique product so that the customer will prefer thats product than the competitors
product. In order to get the market, there are two essential factors; the company offer
should have a value for the customer, and it must be sustainable. This competitive
advantage will be created by the company strength and how they can distinctive with the
competitor.
With these 3 components SFIL will be able to build up they image in the marketplace. To
build the company image, SWOT analysis of their company should be recognized by them.
The function of this SWOT analysis is getting information from the environmental
exploration then divided into internal issues (strength and weakness) and external issues
(opportunities and threats). By knowing their SWOT analysis, the information from the
SWOT analysis can contribute their company in order to achieve their objectives or goal
(strength and opportunity) or it will recognize obstacles that must be reduced or overcome to
accomplish their objective (Ferrel and Hartline, 2012). This SWOT analysis, and knowing
their customer, competitor and gain the competitive advantage will help SFIL to know their
position in the market.
When their marketing position plan has been ready, a company will turn that plan in to the
action as the marketing mix. This marketing mix is the action of the company to promote
their companys brands or product in the market. In the figure 2 show that Marketing mix is
formed by 4P elements: Product, Price, Promotion, and (McCarthy, 1964).

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Case Study Sheffield Forgemasters International

Figure 2: Marketing Mix elements


Source: http://www.learnmarketing.net/marketingmix.htm

Product
Product is referring to the item that will satisfy the customer need. A product is

divided into two types; tangible and intangible. The main product of SFIL is steel ingots.
In these modern days, building construction that used this steel ingot is growing rapidly
and the needs of steel ingots will also increase. So that SFIL should develop this product
quality for the customer better than their competitor.

Price
Price is the value of the product that customer must paid. The price of the product is

depending on the productions cost, target segmentation and the ability of the customer to
buy the product. This price is very important to SFIL, besides it will make a profit to the
company, and it will determine in increasing or decreasing sales of the product. To
determine the price of the product, SFIL should aware of the customer perceived value of
the product.

Place
Place is referring to the point of sale. Place should be convenient for the customer to

access. Make an easy access for customer and make the place eye catching is the main
aim to get a good sales. Place also should located right, it means the product should meet
the ability of the customer to pay such as a premium product should located in a premium
place. So SFIL should distribute their product in the right place to get their market
correctly.

Promotion
Promotion is referring to the activities to provide the information to the market about

the product. Promotion is consisting of advertising (television commercial, radio, internet,


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Case Study Sheffield Forgemasters International

etc.), public relation (press release, exhibition, seminar, etc.), and word of mouth
(informal communication by a satisfied customer). Nowadays internet is really popular in
order for marketing their product SFIL can use the internet trend to promote their product.
Besides, exhibition also best promotion ways for marketing their product because in
exhibition, there are many people looking for the industry.

Figure 3: The Key components of Marketing positioning Strategy


Source: Brooksbank, Roger, 1994

The figure 3 above shows the key elements of marketing positioning strategy. It is represent
how the 3 components of marketing position strategy relate each other, the SWOT analysis
and the marketing mix.
Marketing positioning strategy is the best policy guidelines should followed by SFIL. By
knowing their strength, weakness, opportunity and their competitor, they can select their
customer, competitor and define a competitive advantage properly. Once this position plan
has been well prepared, they can interpret this plan into the action by doing the appropriate
marketing mix strategy. With the well-planned marketing mix strategy, they will be able to
identify their competitors product and develop the product that will satisfy the customer. The
pricing and promotion strategy also must be considered carefully because it will determine
that successful of SFIL to get market. Last but not least, place also will affect the market.
The easy access to get the product or service will be consideration by the customer to buy the
product or service. When this marketing positioning strategy had been conduct, SFIL will be
able to improve their position in the market and they will be able to compete in a very
competitive market.

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Case Study Sheffield Forgemasters International

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Case Study Sheffield Forgemasters International

Has Sheffield Forgemasters followed a product oriented


approach or a market orientated approach. In your answer
debate the pros and cons of each of these approaches.
In order to develop a new product, company has two major approach strategies; marketing
oriented approach and product oriented approach (Lancaster and Massingham, 2011).
Marketing oriented is a strategy that the company develop a product based on customer needs
(Hill and Jones, 2011). A marketing orientation means the business values and activities are
focusing on a customer mentality. The decision of marketing oriented is taken based on
information about customers wants and need, rather than what thinking is correct for the
market. And Product oriented approach is a strategy that the company develop the product as
good and unique as possible rather than the customer wish then the customer should
identified that product (Jaworski and Kohli, 1996). The decision of product oriented is
contrary with market oriented; the business will develop products as it is good at making or
doing, rather than on what customer wants. In figure 4 below show, the different between
product oriented and market oriented approach.

Figure 4: Different Product and Market Oriented


Source: http://businesscasestudies.co.uk/kelloggs/new-products-from-market-research/why-carry-out-market-research.html

SFIL is a company that using both products oriented and market oriented approach strategy in
order to develop a new products. It can be considered as product oriented approach because
SFIL focuses on quality on its product and also do some innovation to break market
segmentation. As stated in study case, SFIL also focus optimization of its process, material
development, reducing their cost production and improving their product quality. The
innovation that the company develops is highly important such as the development of the
nuclear power. Nuclear power is a technology that isnt needed by the market now. But the
research about nuclear power itself as a product oriented strategy of SFIL make SFIL become
the first in the world to produce large-scale cast and forged nuclear components helps to

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differentiate SFIL with their competitors. SFIL uses the abilities of its team to discover and
generating a highly innovative and high quality product or process.
SFIL also can be labelled as market oriented because it also using market research to improve
and developing their product. They also use innovation not only for improving the quality of
the product but also in the sense of coming up technology such as the needs nuclear industry
as the future energy demand in the future. SFIL also has strong orientation to the market.
They will make sure what the industry need. For instance, in 2009, cracks had founded in the
subsea structure joined to the oil storage tank underneath the platform until the production at
on oil platform in North Sea had to be stopped. Then SFIL do the research for their client in
order to fix that problem and finally they found and fix the problem until they won the Cast
Metals Federation (CMF) Cast Component of the Year Award 2012. This case has proven that
SFIL can be considered that SFIL also use market oriented strategy to develop a products or
material.
By doing those approach strategies, there are some advantages and disadvantages that would
be got by the company:

Marketing Orientation Advantage:


With marketing oriented approach, the responsibility of marketing research is to keep

ahead of competitors in responding to customer wants. With this marketing orientation,


SFIL will be able adapt faster to changing based on the customer wants and needs. The
ability to appeal or attract loyal customer is bigger because the research and development
teams have been researched the needs of the customer. They will have more chance to get
the market to align with a customer demand and will keep up to date with the trends of
the customer.

Marketing Orientation Disadvantage:


Although marketing orientation is having some benefit and for SFIL, marketing

orientation also has some disadvantages. Because marketing orientation always focus on
customer wants, the maximal implementation or innovation from the product itself will be
left behind. Sometimes customer also doesnt know what really they want. This will cause
the research team have difficulties to find the customer wants. More over for industry that
are focus in product feature and technology. Marketing orientation will impede the ability

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of research and development team to produce new invention of new feature or


technology.

Product Orientation Advantage:


Product orientation will make the developed product gaining the highest possible

product quality and benefits. With this product orientation, SFIL will have more
possibility to innovate or invent a new product features or new technologies. The new
product that have been invented or innovated, may meet the needs of customer and more
satisfy the customer. For example, when Steve jobs mention Iphone (Apple brands), this
product excites millions of people all over the world because of its quality, new products
feature and technology.

Product Orientation Disadvantage:


The limitation of this product orientation is this approach strategy doesnt perceive

what a market needs.

If SFIL just using this product orientation, there is some

disadvantages that will get by SFIL although they can develop product that have superior
features, if the customer doesnt want it, it wont be valuable. This approach also has high
risks of money, time, and technical issues to fail in market because this approach cant
easily react to changes properly. In technology industry with narrow life cycles, a
company may be missing the chance to align with customer demand.

Figure 5: Example of Product and Market Oriented


Source: http://businesscasestudies.co.uk/intel/using-innovation-to-create-competitive-advantage/market-or-product-orientateddevelopment.html

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In figures 5 above shows the example of the product oriented development and market
oriented development. By doing product oriented development, the product will be developed
first than the company will find a ways of marketing that product but in market oriented
approach, the researcher In the company will find the needs of the customer then the product
will be developed.
By using both product and market oriented strategy, SFIL will be able to:
1. Find customer wants from market research
2. Organise the product research so that will in line with the market research
3. Always look for the market research so that the focus of customer new ideas can be
found out
4. Evaluate the product using customer suggestion and idea in order to make
improvements and product offering.

When product and market oriented strategy is used, SFIL will gain all the benefit of both
product and market approach strategy and the disadvantage of each strategy will be covered
by the other strategy. These strategies make SFIL become a world leader in heavy steel
castings and steel forgings.

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Case Study Sheffield Forgemasters International

Advise Sheffield Forgemasters on what continuous marketing


research programme it should have in place in order to keep up
to date with business trends and customer needs.
To achieving company goals, the concept of marketing is the key factor that should be
considered by the company. According to Phillip Kotler (1998) marketing research define as
systematic design, analysis to find facts in order to enhanced decision making and control in
market goods and services. So marketing research is a depth study about the marketing
problem (that are related to the product, consumers, market competition, etc.) to get a
solution. SFIL is a large company that are engage in many engineering area, so that
marketing research will be important to SFIL to get the market right. Without marketing
research, the company will not be able to get best to sell their product. For example, although
they create or develop a great product, but they dont have a marketing research program, the
product will be waste because that product will not be able to market correctly.
There are 3 types of marketing research program (Brassington and Pettitt, 2007):
Exploratory
This marketing research type goal is gathering preliminary data that will help to
clarify and recognize the problem, rather than finding problem solution.

This

exploratory will also suggest hypothesis.


Descriptive
This market research goal is finding understanding of a particular issue or problem.
This type of research is more about finding the situation and problem in the market

such as finding the potential market for new products.


Causal or predictive
This market research goal is to test cause-effect relationship in order to get an
accurate expectation about the result of action can be made.

By knowing the three types of marketing research, The appropriate types of marketing
research that can be used for SFIL is Descriptive research method. Because SFIL is a
company that is already has their market and in order to make their market will always be
with SFIL. SFIL should know the problem or the situation in the market so, they will be able
to identify the customer needs and the problem, and they can find way to satisfy to the
market.

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Dr. Frances Brassington and Stephen Pettitt (2007) have defined the marketing research
process into eight steps:
1. Define the Problem
SFIL should identify and understand the problem properly. The problem may about
sales, competition, expansion of the market.
2. Define the research objective
After identifying and clarifying the problem, they should define the objective or the
goals of the research. Defining the scope of the research problem also included in this
step.
3. Planning the research
This step is use to formulate the research design. It will give a clear direction to do the
research. In this step, three step of marketing research (exploratory, descriptive or
causal research) should be defined.
4. Gathering the data
Clarify which data or information should be collected and how the data could be
collected is the prerequisite issue in preparing research plan. There are two type of
source data can be collected (Rabianski, J.S., 2003); primary and secondary research.
Pimary data is consists of data that collected directly from the field research. And
secondary data is Consists of data that is gathered from secondary resources not
directly collected by the analyst. This data already exist and can be accessed by the
company.
To have efficiency of cost and time to get the data, secondary research can be
selected. By using the primary data, it will be very costly and time consuming. But it
doesnt close the possibility to use the primary data because when the data doesnt
already exist before, this primary data is the only way to get the data or information
more precisely. There are two type of origins data; quantitative and qualitative data.
Quantitative is the collection of information that is open to interpretation such as
opinion from people. And qualitative data is the collection of data that is quantifiable
such as figures or market share.
5. Run the research
When the research plan and method to collect the data had been defined, it is
important to run the research. This step will be varying according to the plan and type
of the market research (exploratory, descriptive, or causal) itself.

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Figure 6: Example of Market Research


Source: http://www.referenceforbusiness.com/small/Mail-Op/Market-Research.html

Figure 6 show ways to do research and collecting the information. Questionnaire,


interview, observation, or experimental are the method can be used to collect the
primary data, libraries are one example to find a secondary data.
6. Study and analyse the research
In this stage, SFIL should organize the raw data that are collected then the data should
be studied and analysed very careful in order to get the conclusion from it. The
marketing problem that identified should be solved by this conclusion.
7. Prepare the report
After the conclusion defined, SFIL should prepare the research report. Research plan,
method that had been used to do the research, conclusion and suggestion to solve the
problem should be included in this report.

8. Research and Evaluation


In the last stage, all aspects of the research project will be reviewed and evaluated by
stakeholders in SFIL. Every deviations need to be identified clearly in order to get the
current result or for designing future research.
Market research is very important for a company especially for SFIL, because by doing
market research, companies will (Zikmund and Babin, 2012):
1. Find out the current decision and classifying decision making statements.
2. Find the consumer, employee, and competitor view of the company.
3. Find ideas in order to innovate or invent new products or services.
4. Test the ideas that will be implemented in marketing strategy.
5. Observe the marketing concepts describe marketing reality.
In order for SFIL to keep up to date with the business trends, the marketing research couldnt
be stop in certain time. Marketing research should do continuously by SFIL because the

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needs of the customer always change. So as the company that produces products, they should
follow the needs of the market. Nokia is one example that they dont do the continuous
marketing research, although 5 years ago they dominate the world of phone. But, because
they didnt do continuous marketing researches (they dont know the market problem that
theyre want a smartphone) people are moving to buy another product like apple or Samsung
that have smartphone products.
To keep doing continuous marketing research is better for SFIL to hire external company
(market research agency). With hiring market research agency, it will reduce their time and
their labor to do repeatedly marketing research; they will be able to get efficiency time and
they can concentrate on other division such as to develop their product quality or finding
better manufacturing process in the terms of efficiency and effectiveness.
By doing this continuous market research, SFIL will be able to:
1.
2.
3.
4.

Keep up to date with the business trends.


Adapt faster by the changing market of needs and demand
Find the right direction for business expansion in future
Find the suitable promotion as the changing market

Conclusion
Research and development is really important and necessary for all of company because
research and development can determine the success of the company in the future. Sheffield
Forgemasters International is the company that really focuses in research and development
because they realize that research and development will give much benefit for SFIL in the
future. There are some benefit that SFIL gained by investing in research and development
are; SFIL can develop a unique product, gaining long term income, getting new opportunities,
and it will improves their reputation in their industry. With the benefit of it, research and
development is really important for SFIL, they may become more competitive and make
them distinguish better than their competitor and make they gain competitive advantage. The
product that has been developed always keeps up to date and finds the needs of the market.
This caused by SFIL is solely focus in the research and development team.
Besides focus in research and development, SFIL should have a policy guideline in order to
make their business keep competitive in market. The best policy guideline for SFIL is market
positioning strategy. With market positioning strategy, first they will know about their
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Case Study Sheffield Forgemasters International

position in the market. By knowing their SWOT analysis, it will identify their strength,
weakness, opportunity and their competitor, in the market so that they will be able select their
customer, competitor and define a competitive advantage properly. It will identify their
market position so that they will be able to formulate into action by assembling the proper
marketing mix strategy. The marketing mix strategy will be able to create product, pricing
and promotion, and placing strategy that will be suitable in the market by considering their
competitor. When this marketing positioning strategy has been executed, it will help Sheffield
Forgemasters to be able to improve their position in very competitive market.
Sheffield Forgemasters is a company that really focusing on research and development so
they will develop a new product to satisfy their customer. There are two type of new product
approach that can be used by the company; market oriented (focus on the need of the market),
and product oriented approach (focus on improving the product). To get satisfy of the
customer SFIL uses both of market oriented approach and product oriented approach in order
to develop a new product. Market orientation means gets the right product and product
oriented means get the product right. So by doing those both approach strategies, SFIL will
be able to find customer wants from market research, Organise the product research so that
will in line with the market research, gaining the competitive advantage and getting all the
market. By combining the two type of product development approach, they have gained
satisfy of the customer. It was proven by SFIL won the Cast Metals Federation (CMF) Cast
Component of the Year Award 2012 and become the first in the world to produce large-scale
cast and forged nuclear components.
Last not the least, the concept of marketing will be considered to determine the succes of the
company to become a global leader. SFIL must have a good marketing research program to
keep compete with many competitor that are engage in the same industry. They used to do
descriptive marketing research method in order to identify the market problem and the
situation of the market so they will be able to satisfy the customer needs. They also need to
do continuous marketing research because the needs and demand of the market will change.
They must to keep up to date with the business trend in order the business keep exist in the
future. The best way to do continuous marketing research is by hiring external company that
are already specialize in marketing research. By hiring the research agency, SFIL will be able
to get the efficiency of doing the repeatedly marketing research and also they get the

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effectiveness of their company focus on developing their quality of their product or


improving the process manufacturing.
By focus and investing more in research and development, using the marketing positioning
strategy, using the product and market oriented approach, and using the descriptive marketing
research and do the continuous marketing research, all of this strategy and method will help
Sheffield Forgemasters International to become a global leader in their industry.

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