In sociology, why do we think of the work of Karl Marx as 'conflict Essay

In sociology, why do we think of the work of Karl Marx as 'conflict theory' - Essay Example However, this was first presented as an official theory by Karl Marx—who laid the groundwork for a number of social movements that would redefine history. From a sociological standpoint, what is meant when Karl Marx’s theory is referred to as a â€Å"conflict theory†? Usually, when one thinks of Karl Marx, he automatically conjures up thoughts of conflict theory. Why is this so? The reason is that—in some circles—Marx is thought to be â€Å"†¦the founder of conflict theory†¦Ã¢â‚¬  (Henslin, 2007, pp. 28). Social conflict theory, is, in a nutshell, that in society, there are the rich and the poor—and that the rich are the powerful who usurp many of the resources and exploit the poor in order to gain more wealth. Marx’s theory was a wake-up call to the masses. For Marx, capitalism did not mean progress; rather, it was a scourge on the conscience of modern man, a man who was detached from the community and the communal struggl es surrounding him. Marx â€Å"†¦often saw social conflict as rooted in private ownership†¦Ã¢â‚¬  (Bartos and Wehr, 2002, pp. 40). The difference between the haves and the have-nots has always been a pressing social issue, becoming even more so when capitalism was the governing system. This is the kind of dominance that social theory rails against. Marx’s main idea was that the community should struggle together. The community should suffer together. ... Communist ideology gained popularity throughout the Cold War. Vladimir Lenin adopted the ideology as his own strategy to not only have the people contribute to the estate communally, but also to empower the economy of the Russian state. â€Å"Leninism was presented as the correct theory and practice of Marxism and as the theory of scientific communism, incorporating the dictatorship of the proletariat†¦Marx’s critique[s] were also reformulated as societal laws of development that fed into the study of class relations [and] production†¦Ã¢â‚¬  (Lowes, 2006, pp. 158). The notion that the working class was the one in control was the main staple of Communism. The people were the ones in control. â€Å"The working class had to ‘conquer’ its freedom under the flag of the Communist party† (Weitz, 1997, pp. 250). People did not own any possessions. No religious expression was allowed, and very strict laws of ethics were followed. Communism was an experim ent that failed—badly. Mann (2002) states, â€Å"Communist governments — many of them led by men trained in Moscow — are in command of nations ruling almost 800 million people† (pp. 115). There are still Communist countries existing today. â€Å"There remain at least some common features among the five remaining Communist states—China, Cuba, Laos, North Korea, and Vietnam—although the differences between, for example, China and North Korea are enormous† (Brown, 2009, pp. 3). Many of the people in these countries subsist in squalor and have little economic or collective bargaining power. This is where socialism becomes an alternative option. Even though people may not like the idea of a Communist government, socialism

Analyze the implications of the 1st and 2nd Amendments to the U.S Essay

Analyze the implications of the 1st and 2nd Amendments to the U.S. Constitution - Essay Example The Bill of Rights is arguably the most crucial portion of the Constitution because it ensures that our system of majority rule will not degenerate into a system of mob rule. It is designed to protect the rights of the minority from an unfettered majority that might otherwise trample those rights. The protection of minority rights that is enshrined within the Bill of Rights facilitates an open political system in which dissent is tolerated under the law and informs the political process. In essence, protection of minority rights such as freedom to criticize the government and freedom of the press to openly report on government activities is the reason why the United States is able to have a legitimate political system marked by free and fair elections. If minority rights were squashed, it would lead to a governmental system more akin to communism, in which the majority party becomes the only legal party because they essentially outlaw the opposition. The First and Second Amendments t o the Constitution are critically important components of the scheme to protect minority rights in America. The First Amendment to the ... It is no accident that these three basic freedoms are outlined within the first of ten Amendments. It is likely that the Framers of the Constitution considered these to be the most important of all the rights that need to be protected from the will of the majority, in order to establish a truly open and free democratic republic. Among the many current issues that have arisen out of the First Amendment is the question of the extent to which the press has the right to protect its sources. The jailing us New York Times reporter Judith Miller for failing to reveal her source in the matter of the leak of the identity of CIA operative Valerie Plame raises the specter of the government's ability to chill press freedom to investigate and report on sensitive government matters. Ultimately, it was found that the interest of the state in prosecuting criminals and providing for national security trumps the right of reporters to refuse to disclose their sources. The implications of this finding are grave; and it remains to be seen whether investigative reporting in America will be severely weakened in the future as potential sources of information refuse to come forward for fear that the government might force disclosure of their identities. That result could end up depriving the public of important information they need to develop informed opinions about public matters. Another First Amendment issue that continues to be relevant is the doctrine of Separation of Church and State. The First Amendment guarantees that "Congress shall make no law respecting the Establishment of a religion," nor shall the government be allowed to prohibit free exercise of religion. In essence, the First Amendment guarantees that the government, in all its

Company and Application Exercise Essay Example | Topics and Well Written Essays - 1250 words

Company and Application Exercise - Essay Example My past work experience, experience and interpersonal skills makes be capable of fitting into the job requirement. Together with the special software competence in engineering application, I am capable of achieving the requirements of the job across various cultures as per the job requirement. Therefore, it would only be ideal that i bring in my wealth of knowledge and experience into the company’s operation and use my leadership skills and competence to help realize the company’s objectives. Name [xxxxxxxxxxx] Address [street number] Mobile phone number, Home telephone: Email: Personal Profile I posses effective communication skills and I am capable of developing a communicating relationship with people I may not know it total varied environment making it possible to interact with various people across various cultures to ensure accomplishment of tasks. I have a demonstrated leadership track where I have managed to lead various groups of craftsmen as required in order to achieve designated task. Further, I am a team player who is ready and willing to work with others in creating the enabling environment for accomplishing tasks. I have proficiency in various engineering software necessary to accomplish tasks and analysis or various data to arrive at the necessary conclusion. These include CAD and MATLAB. I am also willing to learn more software application as my job will demand from time to time. Education 1. B. Sc .Civil and Construction Engineering, University of Mississippi, July 2011 The four year training in engineering was inclusive of practical skills such project supervision and design work. 2. A levels, Mississippi graduate school, Technical application, graduate, July 2009 At this stage, I acquired fundamental engineering knowledge with exposure on engineering projects and related works. Employment History 1. Field supervisor, City Council, August 11 – present I worked as supervisor in charge of plumbers with the responsibility of ensuring water connectivity to city residents. Coordinate the works of a team of 20 plumbers to various parts of the city to ensure that water connections were in place and correcting any possible problems. Also reported to the water engineer on the daily developments in the water supply of the city. The city council benefitted through the assured continuity of water supply to the residents and thereby reducing complaints from the residents leading to improved revenue collection from the residents by the Council. Achievement The major assignment during the attachment period was to research, analyze and propose the causes of water shortages and the available methods to solve. Providing a recommendation to be followed in solving the water shortage problem was the ultimate objective. Benefits to employer The city council was able to determine, through my services, the extent of water shortage and projection of such increases if they were not mitigated. The employer also adopted water shortage mitigation strategy as recommended by me which was effective and the pressure was considerably eased. 2. Assistant Engineer-Operations, Hayer Construction-China, August 10– Nov 10Â   Feature: To supervise and coordinate the site operations on the construction project Activity: Planning for the supply and availability of quality on the site. Assigning duties accordingly to different people to ensure the flow of the project activities. Benefit: The benefits the

Conflicts Caused by Differences among Groups Essay Example for Free

Conflicts Caused by Differences among Groups Essay Conflicts Caused by Differences among Groups Throughout history differences among groups have often led to conflict. Two specific conflicts were the persecution of Christians during the Roman Empire and the Armenian massacres. These two conflicts were caused by differences among groups. The persecution of Christians during the Roman Empire was caused by differences in religion. In 1914 the conflict between the Turks and the Armenians led to the Armenian massacre which was caused by political differences. The persecution of Christians during the Roman Empire was caused by differences in religion. The Roman Empire was quite tolerant in its treatment of other religions. The imperial policy was generally one of incorporation; the local gods of a newly conquered area were simply added to the Roman pantheon and often given Roman names. Even the Jews, with their one god, were tolerated. For the Romans, religion was first and foremost a social activity that promoted unity and loyalty to the state, a religious attitude the Romans called pietas, or piety. Cicero wrote that if piety in the Roman sense were to disappear, social unity and justice would perish along with it. The Roman distaste for Christianity then, arose in large part from its sense that it was bad for society. The effect of this conflict was that it led to the persecution of Christians. Secondly, the Armenian massacre was another conflict that happened because of differences among groups. In 1914, the Turks entered World War I on the side of Germany and the Austro-Hungarian Empire. Military leaders began to argue that the Armenians were traitors. If they thought they could win independence the Armenians would be eager to fight for the enemy. As the war intensified Armenians organized volunteer battalions to help the Russian army fight against the Turks in the Caucasus region. These events and general Turkish suspicion of the Armenian people led the Turkish government to push for the removal of the Armenians from the war zones along the Eastern Front. On April 24, 1915, the Armenian genocide began. That day the Turkish government arrested and executed several hundred Armenian intellectuals. After that ordinary Armenians were turned out of their homes and sent on death marches through the Me sopotamian desert without food or water. Frequently, the marchers were stripped naked and forced to walk under the scorching sun until they dropped dead. People who stopped to rest were shot. In conclusion, differences among groups have  often led to conflicts. Two main conflicts were the persecution of Christians during the Roman Empire, which was caused by differences in religion, and the Armenian massacre, which was caused by political differences

The Historical Background Of Virgin Atlantic

The Historical Background Of Virgin Atlantic The importance of Tourism and hospitality industry can never be over-emphasized in the development and growth of many nations in the world. As a result of the advancement in technology and globalisation, tourism and hospitality industry serve as a vital driver of job creation as well as being the main source of income for many developed and the less developed countries. Due to the pivotal role of this industry in the creation of wealth for nations, several companies as well as international organisations devise efficient and cost effective operational management methods in order to maximise their profits. A key industry that propel tourism and enables tourism and hospitality industry to its present global height is the aviation industry, which not only transport people from one place to the other, but ensures that places that were deemed unreachable can be discovered, thereby creating wealth for organisations as well as enhancing the geographical prominence of countries in the league of nations. Virgin Atlantic, the second largest commercial airline in the United Kingdom play an active role in the tourism and hospitality business by ensuring that it provide cost effective and innovative services to its various clients. As a result of keen competition in the aviation industry, Virgin Atlantic is renowned to be one of the pioneers of in-flight entertainment as well introducing a premium economy class services for its customers that can not afford to travel on an upper class but still wants to benefit and enjoy some of the privileges of the upper class clients. The global economic recession as well as the harsh business climate has made it imperative for companies to re-evaluate their business models and device strategies to cope with the ever changing macro and micro environmental factors that affect the company. These are made possible by the analysis of the companys Strength, Weakness, Opportunities and Threat (SWOT) it faces while operating in relation to their competitors. Despite the advancement in technology, the three core functions of any organisation i.e. marketing, product and service development, and operation are well guided in order satisfy the ever increasing customer demands. To do these, most organisations align their operation management strategies to the changes in the external and internal forces that affect their operational model. Kim and Olsen (1993) corroborated this by advocating that a balanced approach must be used to monitor the events that occur in the external domain and assessing the potential impact on business and unit level operations. Organisations must focus on their strengths in order to deal with the wide range of external factors in creating opportunities for themselves. On these basis, the identification of the external and internal operational management methods are clearly identified as a tool in increasing productivity ,customer satisfaction as well as promoting their products to their target audience. STATEMENT OF THE RESEARCH PROBLEM In every research, there are various problems that are identifiable, but for the purpose of this research, the following questions need investigation. What operational method can organisation adopt? What is the significance of operational management to an organisation? Should organisations in the hospitality industry adopt similar or different operational management? OBJECTIVES OF THE STUDY The objective of this research can be summarised as follow; 1. To analyse the operation management of Virgin Atlantic in relation to tourism and hospitality. 2. Establish the impact of internal and external factors that affects Virgin Atlantic operations. 3. How company formulate and adopt strategy. 4. Identifying the strengths and weakness of Virgin Atlantic 5. How the company measures service quality and improvement. 6. To established the best operational management methods for productivity and promotion. SIGNIFICANCE OF THE STUDY The study is of great importance because it underlines the understanding of the operation management of Virgin Atlantic which is one of the pioneers in innovation in the tourism and aviation industry. The research highlights the various approaches used by Virgin Atlantic in their daily operations and how it has been able to remain a viable and competitive company LIMITATION OF THE STUDY Due to time constraint, it was not possible to do a comparative study of the operation management of Virgin Atlantic in relation to other organisations in the aviation industry in relation to hospitality management. HISTORICAL BACKGROUND OF VIRGIN ATLANTIC Summary Virgin Atlantic is the second largest commercial airline in the United Kingdom that starts operation in 1984.It is headquartered in Crawley near Gatwick airport and owned by Sir Richard Branson (51%) and Singapore Airlines (49%).The airline operates between the United Kingdom and North America, the Caribbean, Africa, the Middle East, Asia, and Australia from its bases at Gatwick Airport and London Heathrow Airport, using a mixed fleet of Airbus and Boeing wide-bodied jets (web 1). Almost uniquely among major airlines, it operates no short-haul services whatsoever, with its shortest route being from London to Accra (web 2).It offers three classes of travel: Upper, Premium Economy and Economy classes which all bears the hallmark of Virgins award winning inflight entertainment and based on airlines aims of provision of innovative service at excellent value for money for all classes of air travellers (web 3). Birth and Formation Virgin Atlantic was conceived as result of an idea from Randolph Fields who wanted to be operating flights from London to the Falklands islands after the Falkland war. But due to Logistic and operational cost, the Falklands operation was aborted and an alternative arrangement to have flights operating from London to the United States was agreed upon. Randolph Fields proposed his idea of flights operations to Richard Branson at a party in Central and he agreed to be a partner in the flight business with 25% stake going to Randolph Fields and 75% to Richard Branson (Web 4). Like all Richard Branson businesses, he approaches the partnership as a venture that must succeed within a year or he exits the partnership. The airline was an instant hit in its first year and it was able to lease more planes in the second and subsequent years. Richard Branson eventually bought out Randolph Fields stake in the business in 1997 after disagreement over operations of the airline. After its maiden flight to Newark in the United States on its leased Boeing 747 in 1984, the airline had acquired more aeroplanes to cover different routes and destinations ranging from Tokyo, Boston, Los Angeles, Rolando etc. Despite the apparent success and popularity of the airline, the company faced financial problems in the 1990s due to the recession, the Gulf War and the subsequent collapse of International Leisure Group (ILG), there was need to save Virgin Atlantic from collapse and involves the abolition of the Traffic Distribution Rules (TDRs) which was meant to create equal distribution air traffic between Heathrow and Gatwick airports in order assist Gatwick airport to make profit. The TDRs rule stated that airlines that do not operate international flights from Heathrow airport prior to 1977 would not be permitted operations there, but will instead be using Gatwick airport. The abolition of the rule made it possible for airlines to commence operational flights from Heathrow. This subsequently paved way for Virgin Atlantic to begin operations at Heathrow airport despite opposition from British airways who was the largest operator then. As a result of this move, Virgin Atlantic was able to increase its long-haul flights and survived the recession in the economy. In order to consolidates its position and expand its flight operations, Virgin Group the parent company of Virgin Atlantic, sold 49% stake of the airline to Singapore airlines in year 2000, while Richard Branson retains 51% stake of the airline. This increased the value of the airline  £1.25 billion thereby making it one of the biggest private operated airline in world (Web 5). Rivalry with Competitors The movement of Virgin Atlantic operations to Heathrow signal a rivalry between the airline and British Airways. Amongst the rivalry between both airlines was the famous libel fine of  £500,000 and  £110,000 in 1993,that was awarded out of court to Richard Branson and Virgin Atlantic as well as  £3million court charge against British Airways for its dirty tricks campaign on Richard Branson and his airline (Web 6).Subsequently in June 2006, and British Airways was fined  £271 million as a result of a tip-off from Virgin Atlantic after investigation by the US and the British office of fair trading for alleged price-fixing between both airlines (Web 7) . Agreement and Co-operation with Other Airlines Despite Virgin Atlantic fierce rivalry with British Airways, the airline do partners and codeshare agreements with other airline in the world namely; South Africa Airways, Air China, Cyprus Airways, Flybe, Gulf Air, Scandinavian Airlines, US Airways, Malaysian Airways etc. in order to spread its reach across the world (Web 8)(Web 9). Service and Innovation Virgin Atlantic has been a pioneer in services and innovation in the aviation industry through its introduction various services and technology that are used to distinguish itself from other airlines in the in Industry. It operates three-classes (Economy, Premium Economy and Upper Class) of travel in order to cater for the needs of its passengers. The Economy class is the standard class and it provide among other facilities such as free meals, drinks and lumbar support for its passengers. The Premium Economy class provide clients with a wider seat having more leg room, priority boarding as well as separate check in area from the economy class passengers (Web 10). The Upper Class provide the passengers with first class services ranging from larger menu and in-flight bar. It is also equipped with the biggest fully fitted flatbed compared to any other airline business class services. Virgin Atlantic airplanes also are equipped with the state of the art In- flight entertainment system, that provide entertainment to all its passengers in order to ensure that they have a memorable time while flying the airline and maintain their loyalty them. CHAPTER TWO LITERATURE REVIEW The aim of any service business organization is to create goods and services that are of high quality, quantity and cost efficient in order to satisfy the consumers needs. This can be achieved by ensuring that detailed attention is devoted in the planning and control of day today running of the business, design of products and creating a competent processes for employees to work. Operation management covers all these essential functions from the top level management to the immediate control of operations in the business. Operations management according to Nigel Slack et al. (2010) is defined as the activity of managing the resources which produce and deliver products and services. This system of management relates to the function of any organization responsible for the design, planning and control of resources for the provision of goods and services (David R.B and Paul L.F, 2010). Operation Management Model Source: Operations Management, 6th edition, Nigel Slack et al (2010, p.25) The Evolution of Operation Managements The history of Operations management can be traced to different projects in the development of human history from the construction of Egyptian pyramid to the building of the Great Wall of China and the industrial revolution that began in England in the 18th century. Before the industrial revolution, production of goods and services are made through custom made products. But as machines were invented, there was an increase in the factory system thereby leading to the specialization of labour as proclaimed by Adam Smith in 1776 in The Wealth of Nations which emphasize the benefit of breaking down production activities to smaller parts and assigned to individual worker through the manufacturing process. This ensures an increase in the production of goods and services through specialization as opposed to the cottage system of manufacturing for individual needs of the consumer. By the mid 19 century, most cottage industries were being replaced by factories which expanded to urban workforce with effective communication thereby paving way for the great output explosion of the 20 century (David R.B and Paul L.F, 2010). A number of techniques were later introduced during this period among which is the scientific management principle developed by Frederick Winslow Taylor (1856-1915) (Taylor, 1911), that was used for the creation factory Ford Rouge plant in which mechanized assembly lines, specialized labour,mass production and interchangeable parts were featured. But with the major studies in the relationship between output production and human motivation by Maslow (1943) and Herzberg (1966), the essence of developing a social as well as a technical system for manufacture processes. The growth in the Asian economic coupled with new manufacturing processes such as Just-in-Time (JIT) principle and Lean Operations in the 1960s brings a different perspective to quality and design management thereby making businesses to improve on their product delivery. Wickham. S (1985) and Terry (1985) also emphasized this in their studies by recognizing that the view that techniques and systems are not the most important part of operation management but taking a more balanced strategic view of management operations. As a result business competitiveness depends not only on low level, limited impact system of operation but on a broader management operational view (David R.B and Paul L.F, 2010). CHAPTER 3 MACRO AND MICRO ANALYSIS OF VIRGIN ATLANTIC The operation of every business is affected by several internal and external factors which determine the growth and survival of a business organisation. These factors can analysed by looking at the environment in which a business operates otherwise called Environmental Scanning or Macro environment. Macro environment refers to the clients, markets, industries and competitors which an organization interact with during their business operations. These factors are outside the control of an organisation and indirectly affect its activities. Kroon (1995) defined environmental scanning as the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market. Based on this definition, Macro environment can be analysed by six factors or segmentation called PESTEL which is Political.Economical, Social, Technological and Environmental and Legal factors. These are in constant change and organizations must define strategies to meet up with the changes. Holloway (2004) stated that macro business environment is subject to continuous changes and in order for the business to survive, it must learn to adapt to these changes. The Political and Legal factors such as government policies and legislations affect the mode of operation of every business. This factor can encompass political stability and favourable legislations such as tax concessions which encourage and promote the operation of business. Since Virgin Atlantic operate flights to different countries from the United Kingdom, the political environment in which it operates play a long way in the determining its success. The political decision of abolishing the Traffic Distribution Rules enables the airline to expand its operation flights and increase revenue for the company. Furthermore, countries of high political instability in Africa and Asia have a negative impact on the airline because the tourism potential reduces as a result of less people flying to these countries. The Economic factors are significant in determining the operation management of Virgin Atlantic in the hospitality industry. The factors such as inflation rate, recession, spending power, deflation determine the role of Virgin Atlantic in the hospitality industry. The recent recession as well as the euro zone crisis has deeply affected the tourism and hospitality industry with less people travelling on holidays due to job cuts and ,high inflation rate and redundancies have lead a reduction of flights of Virgin Atlantic thereby affecting its profit. Furthermore, deregulation of the airline industry has created an avenue for Virgin Atlantic to reduce to reduce airline fares. Although financially distressed airlines have cut fares to boost operational profit, Virgin Atlantic operates different incentives for their customers such as discount for senior citizens in the society as well as group travellers in order to stay ahead of their competitors. Social and Environmental factors play a great role in the tourism and hospitality industries because the society demands the services that are rendered by the airline industry. Virgin Atlantic strive in is staff recruitment to employ people that care about the customers and provide their best for the customers by bringing their individual personalities to work while having fun at the same time (Virginatlantic.com, 2011).Consequently, as part of its corporate social responsibilities, Virgin Atlantic allows trained pets that accompanied disable people on its flights as well as providing assistance to unaccompanied children to travel. It also offers its customers complementary limousine pick up and provide in-flight beauty treatment for its business economy passengers. The commitment of Virgin Atlantic to reduce its environmental impacts of its operations was highly lauded by the government for introducing biofuel in to some of its aircrafts in order to reduce emissions to the environment. It has also introduces recycling programme on board of all its aircraft as well companys office in order to reduce the amount of waste generated and become a conscious and cost effective organisation(Virginatlantic.com,2011). Technological factors are important in the provision of highly effective and accident free operation in the hospitality industry. Virgin Atlantic Airways believes in the role of technology in improving services and ensuring that safety of its staffs and passengers. It has been able to accomplish this by ensuring that it acquires new technological advanced aircrafts in order to improve the operation management and safety of the airline. Since flying is an highly dangerous operation if effective checks are not carried on airplanes, Virgin Atlantic have engineers that are highly trained have been researching to improve safety and security of airlines. They also introduce technologies in-flight entertainment to entertain the passengers while waiting for arrival as well while travelling on their flights. MICRO ANALYSIS The micro analysis factors influence the operation of any business organisation. These factors directly affect the operation of an organization and can change in order to align with organisation vision and goals. The micro economic factors that affect the operations of Virgin Atlantic in the hospitality business are; Customers, Suppliers, Employees, Competitors and Shareholders. The customers are the main contributor to the survival of any business because they contribute to the revenue in which the business operation is being run. Virgin Atlantic take utmost care in providing a second to known service for its numerous customers, based on the original philosophy of Richard Branson, which is to offer the best possible service to its clients while delivering the best possible value. People also regard Virgin Atlantic as a distinctive, fun-loving and highly innovative brand and one that is admired for its friendliness, intelligence and integrity (Virginatlantic.com, 2011). It also try to retain the patronage of all its customers by operating frequent flyer incentives such as the flying club where points accumulated from previous flights can be redeem later for free flights in the company. The introduction of in-flights entertainments on all is flights is also a ploy to make flying experience with Virgin Atlantic a memorable one. The Virgin Atlantic employees are the assets of the organisation that project the values and culture of the organisation to the outside world. As a result of their importance to the goals and vision of Virgin Atlantic, serious emphases are placed in the recruitment of staffs that care about customers and bring their individual personalities to work in the company. It provide perks for its customers in form of staffs flight discount, excellent retirement benefit as well as good health care entitlement while working for the company. The main suppliers to Virgin Atlantic airlines are Airbus and Boeing; aircraft manufacturers. They play a significant role in the operation of the airline by providing reliable and state of the arts airplanes the company. There are other companies that contribute to the successful operation of the airline such as Fuel companies that supply fuel for the operation of the airplanes, airports staffs that management the successful taking off and landing of the airplanes ,IT companies such as Del,IBM,CSC etc,that provide the hardware and software for the administrative activities of the company. Virgin Atlantic must work harmoniously with all these companies in order to have successful operation management. Since the airline industry is a highly competitive industry different airline devise methods and promotions to lure customers to their airlines. The core competitor of Virgin Atlantic in the United Kingdom is British Airways. There have been several legal as well industrial disputes between both airlines in order to entice customers from each other. Since the reduction in government influence on the aviation industry in the United Kingdom, there have been intense completions between airlines to provide services that are better than its rivals. The core services provided by Virgin Atlantic which differentiate it from competitors are innovative technologies as well cheap and affordable flight tickets in relation to its rivals. The shareholders of any business organisation are the ones that provide the capital for the operation of the business. As a result of this fact, their interest in ensuring that the business runs successfully in order to generate profit is very important. Virgin Atlantic is owned by Richard Branson (51%) and Singapore Airlines (49%) which form a global partnership and increase their operation capital for effective operation and to remain completive in the airline industry. SWOT ANALYSIS All businesses must assess and evaluate their positions in terms of where they are at the present and where want to be in future. In order to do this, the SWOT Analysis is carried out whish focus on the companys Strengths, Weaknesses, Opportunities as well as Threat it faces in relation to its operation and survival. Strengths The strengths of any organisation are toe positive advantages that it possess in relation to other organisations. The strengths of Virgin Atlantic are; Innovative and comprehensive services: Virgin Atlantic has innovative and comprehensive customer services which are designed to meet the ever increasing needs of their customers. The companys passenger services unit arranges check-in facilities, baggage handling, meal catering, and in-flight entertainment. It also provide work in association with special assistance department unit to provide customers with special travel needs such as mobility aids, special meals, health camps at departures and arrivals (Datamonitor, 2011). Association with Singapore Airline: Virgin Atlantic association with Singapore airlines has been highly beneficial to the customers of both airlines which enable them to book their flights through both companies. This association also enables virgin Atlantic to tap into the highly lucrative Asian countries thereby increasing revenue for the company as well as better services for the staffs and customers. Weakness Small Size: The apparent small size of Virgin Atlantic in relation to other big players in the aviation industry makes it difficult to compete fairly in the aviation industry. British Airways and Air France operates flights to about 300 and 244 destinations in the world in comparison to Virgin Atlantic that operates to just 30 destinations in the world. Virgin Atlantic also 38 aircrafts compared to the British airways and Air France with 238 and 558 respectively which also limit their competitiveness. Price Fixing Allegations: The Office for fair Trading (OFT) found Virgin Atlantic and Cathay Pacific guilty of price fixing allegations after a three-year investigation. They were fixing the price for flights between London to Hong Kong route and were likely to face a severe penalty of about  £250 million. Allegations of this type of nature can severely dent brand image and make customers to lose faith in the company for providing competitive price for its services. Opportunities Increase in the Global Freight sector: The International Air Transport Association (IATA) forecasted that aviation will handle 38 million tonnes of air cargo in 2014, up 12.5 million tonnes from the 26 million tonnes carried in 2009. International freight volumes are expected to grow at a CAGR of 8.2% over the forecast period (Data monitor, 2011).As a result of this promising forecast from IATA, which most of the activities occurring in the Asia pacific routes, Virgin Atlantic will benefit significantly through its association with Singapore Airline. Positive outlook of the Airline market: As a result of the Olympics coming up in the United Kingdom next year, Virgin Atlantic will benefit immensely in the transportation of tourist as well as other participant to the United Kingdom for the games. This will increase the revenue for the company as a result of the prominent position it plays in the United Kingdom aviation industry. Threats Price Discounting from Competitors: The ever increasing discount pricing in the domestic market by close competitors a such as BMI, Ryan Air, British Airways, Air France etc., has made it increasingly difficult made for Virgin Atlantic to have stable pricing structure thereby making it extremely difficult for the domestic operations to be profitable. Consequently, the increase in the size of airlines route system have significantly increase the competition between airlines thereby affecting the profitability as well as impacting on their operations. Natural Disaster: The Volcanic eruption of Mount Eyjafjallajà ¶kul in 2010, created a huge dent in the operation of Virgin Atlantic. The ash from the volcanic eruption disrupts air travel operations across Europe, with flight being grounded several European countries such as United Kingdom, Germany, France, Denmark and other Scandinavian countries. It was estimated that airlines during this period lost hundreds of millions of pounds due to flights cancellation caused by the volcanic ash. This situation severely affected the operation management of Virgin Atlantic profit. European Union (EU) Regulation: In 2005, an EU regulation came into effect for compensating passengers with valid ticket but which were denied boarding an airplane irrespective of the situation. This law also imposes fixed compensation to passengers for cancelled flights except if the airline can prove that such cancellation is caused by extraordinary circumstances, such as weather, air-traffic control delays or safety issues (Datamonitor, 2011).Subsequently, this law makes it to the prerogative of the airlines to provide meals, drinks, and accommodation as well as telephone calls for customers if delayed overnight. The overall expenses created by this law made impacted on the operational profitability of airlines in which Virgin Atlantic were one of the casualties. Jet Fuel Cost: Since the airline operation depend on the jet fuel, the instability the fuel prices has significantly affected the operations of Virgin Atlantic. The volatile price of jet fuel exacerbated by the political uprising in the Middle East has impacted on the profitability of margin of Virgin Atlantic in its operations as result of high cost of buying the fuel for the aircrafts. CHAPTER FOUR CURRENTAND FUTURE OBJECTIVE OF THE ORGANISATION After the SWOT analyses of Virgin Atlantic, it is imperative to take a deeper look into the current objective of the company in relation to its future plans. The current objective of any organization must align with its vision which is reflected in the organisations mission statement. The mission statement of Virgin Atlantic is To grow a profitable airline, that people love to fly and where people love to work (Virginatlantic.com, 2012). As result of this statement, the operation management of the organisation was designed to cater for the needs of its customers by providing the best service while delivering it in the best possible values. It also ensures that its workers not only work for the organisation but derive enormous pride, fun and sense of well-being in the course of their services to the clients. Furthermore, in-line with socially and corporate responsibility of Virgin Atlantic, introduced a wide range of environmental initiative that are meant to reduce the amount of waste generated in the company. These initiatives involves the recycling of all waste such as plastic glasses, vending cups, papers aluminum cans which are collected and recycled in order to raise money for the various charity organisations the company supports. Virgin Atlantic is also a trail blazer in the technological innovation by volunteering one of its Boeings 747 for the test of bio-fuels in operating airlines with the hope of reducing the dependency of airlines on jet fuel. As a result of the initiative, the company intends to use biofuels composed of algae as a part supplement to the jet fuel in its flight operations (Airline in first biofuel flight, 2008). The future objective of Virgin Atlantic is to seek ways in order to be competitive in the United Kingdom aviation after the tie-up agreement between British Airways and American Airlines (Sir Richard Branson begins strategic review of Virgin Atlantic, 2011).As a result of this, the company appointed Goldman Sachs to advise them about the potential approach from Air France-KLM and Delta Air Lines in order to re-align its business for future challenges (Virgin Atlantic Airways, 2011). CHAPTER 5 MARKETING AND COMMUNICATION OBJECTIVES AND STRATEGIES According to Baines et.al (2008), marketing strategy serves as the basic plan and template in which an organisation commences its operations in order to achieve its goals. The essence of marketing and communication objectives of any organisation enables it to differentiate its products and services from other related organisations. Marketing and communication strategy enables Virgin Atlantic to analyse its opportunities and target customers which it believe are relevant to short and long term goals as well as the objectives of the organisation. These strategies are achieved through various marketing mix i.e. the price, product, place and promotion which are used to communic

E-Money: Affecting Canadian Commerce Essay -- Economics Economy Essays

E-Money: Affecting Canadian Commerce The text "Out of Control", by Kevin Kelly, is an exciting description of the future as seen by the author, a journalist and optimistic technologist. The predictions presented must certainly be taken as entertaining reading that are intended to inspire visions of the future. The predictions of Kelly have already proven to be inaccurate in the four years since publication. The most glaring example of this is electronic commerce. Canada is quickly becoming a leader in electronic commerce, through online banking and direct payment purchases. The coming cashless society presents several opportunities and problems that were not previously available in the paper money world. Canada is now foremost in the world of electronic commerce. The Interac Network is the busiest per capita on Earth. Interac, backed by the Inter-Members Association, is a conglomerate of financial companies who, 14 years ago, agreed to share technology and a national computer network in order to facilitate the introduction of ATM machines. The astounding success of automated banking and "shared cash distribution" inspired direct payment. According to Interac's web site, in 1998 over 1 billion direct payment purchases were made in Canada. That's 32 purchases a second, 24 hours a day, for the entire year! In Kevin Kelly's Out Of Control, Kelly's flair for dramatic exaggeration is accompanied by unrealistic predictions that I find amazing when considering they were made only four years ago. Kelly predicts that the use of bank issued debit cards will "die on the drawing board" because of lack of privacy, cost of cards, and fees for use. The Interac network, caught in what Kelly refers to as the "fax mach... ...e resulting answers will change how our society operates on its most basic economic level. As we approach a Canada ruled by e-money, it will become increasingly interesting to study the changing issues in privacy, encryption technology, banking ethics, and government control. Works Cited Electronic Frontier Canada: http://insight.mcmaster.ca/org/efc/efc.html Kelly, Kevin. Out of Control: The New Biology of Machines, Social Systems, and the Economic World. Don Mills: Addison-Wesley Publishing Company, 1994. The Mondex Scenario: Transcript. Toronto: CBC Television, March 27, 1997. Rowan, Geoffery. Encryption issue hoists Ottawa onto a tightrope. Toronto: The Globe & Mail, April 22, 1998. RSA Data Security, Inc. Web Page: http://www.rsa.com Tanaka, Tatuso. Possible Economic Consequences of Digital Cash. First Monday, 1996 (2).

Marketing †Luxury Watch Marketing Plan Essay

1. Executive Summary This report contains a marketing plan strategy for a new luxury watch entering the luxury watches market. The new product that will be launched on this market is a exclusive luxury watch. Exclusive luxury watches are defined as the ones sold above $9999. The watch for which we are drawing the marketing plan is a gold and platinum watch with white diamonds. The use of innovative and unusual styling is become an increasingly important feature of the luxury watch market. The unique feature of the watch is the possibility of customization and therefore personalization of this watch. The report is composed of four parts. To begin with, we have done a context analysis to discussion the various macro and micro environmental factors that impact the relevant market dynamics such as market size and growth, positioning of existing brands etc. Then we have come up with the demographic and psychographics description of the target market. | | Pocket watches offer a different kind of experience for consumers. Some use it for its novelty and style whereas others find it more functional than wristwatches. A lot of people also use wristwatches and pocket watches alternately. Regardless of one’s preference, using a pocket watch at this day and age is still a very welcome sight. | 2. Main Report 3. 1. Context Analysis The marketing environment for Perkupoldies exclusive watch market represents overwhelming opportunities. It also contains some challenges that the firm believes it can meet successfully. The macro environmental factors are extremely encouraging. a) Economic environment: The number of people in the Forbes’s billionaire group and Merrill Lynch/Capgemini millionaire group are steadily increasing over the past decade. The number of billionaires has increased by more than 250 percentages. According to Merrill Lynch/Capgemini report the World’s High Net worth Individuals (HNWI) population has also grown to 9. 5 million with their assets rising to $37. 2 trillion. | Number of Billionaires| % Increase in number of billionaires| Billionaires combined net worth (in trillion dollars)| % increase in Billionaires group| 2012| 1226| 257. 56| 4. 6| 328. 57| 2003| 476| | 1. 4| | b) Social – Cultural environment: Wealthy people are driven by views of oneself. They spend money for acquiring of luxury goods and services to publicly display economic power. Sociologically, to the conspicuous consumer, such a public display of discretionary economic power is a means either of attaining or of maintaining a given social status. i. Developed Economies ii. Emerging Economies c) Technological environment – Product innovations, groundbreaking developments in mechanical and atomic watches enable extreme engineering and personalization of watches possible. Additionally, the below situation analysis details the context for Perkupoldies marketing efforts. Here we take a closer look at the internal and external factors that influence our marketing strategy using SWOT analysis. SWOT analysis The above SWOT analysis combines the external (opportunities and threat) and internal (strength and weakness) analysis. 3. 2. Market Analysis with Porter’s Five Forces a) Threats for New Entrants: The presence of profits in an industry will attract new firms willing to take advantage of these profits. Over time, too many new entrants will drive down these profits, decreasing at the same time the attractiveness of the industry. The presence of various barriers to entry can minimize this threat. b) Bargaining power of buyers: If the brand is very famous, successful and appealing to customers, there is no obvious difficulty for distributors to sell the products: the marketing and communication efforts done by the brand will drive customers easily into the jeweler’s shops. Jewelers are usually not especially risk takers and if they have no guarantee that the brand is a hit and will be easily sold, then one might have a hard time trying to convince them to buy ones products. All the power is in the hands of the distributors; with no distributors, the way to the customers is locked. What is more, distributors might be pressured by actual players to refuse to distribute new brands. Therefore, as we mentioned earlier, distribution is an important barrier to entry. c) Bargaining power of Suppliers: The luxury watch industry is dominated by mechanical technology; as a result, the procurement of mechanical movements is the high end brands’ main concern. Qualified manpower can also be an issue that should not be neglected; the number of watchmakers able to produce some of the most intricate complications is very small. d) Threat of substitute products: Counterfeit is a phenomenon that needs to be mentioned because it represents a non-negligible threat for the luxury watch industry. Secondly, in a larger sense, other luxury products can also be considered as a substitute. Now if we think about a legal substitute, which could be fought with conventional marketing weapons, the issue is more complicated. While in a narrower sense substitute could be confined to jeweler, in a broader sense we have to include all the luxury goods available on the market. a) Jewelry b) High end Pens (e. g.:- Mont Blanc) c). Cars Some customers could buy a watch while others would rather travel to tropical and exotic countries, or buy luxury cars or furniture. Therefore, because the range of substitute products we can include is so broad and difficult to define clearly, it is rather difficult to assess accurately how serious the threat is. e) Rivalry among Competition: Concerning the large trends, the past years, big groups were fighting over brands: each group wanted to increase its brand portfolio by taking over independent brands. 3. 3. Pocket watch Industry Background. There was a time that no gentleman felt well-dressed without his pocket watch. Pocket watches, which originated in the fifteenth century among the upper class nobility, reached their heyday in the mid-17th to early 20th century. At one point in time, no middle or upper class gentleman would dream of leaving home without his pocket watch. Among the working class, pocket watches were more than a sign of status. They were, for many workers, an important work tool. Railroad workers, in particular, relied upon their pocket watches to time their duties. By the middle of the 20th century, with the advent of inexpensive wristwatches, the popularity of pocket watches began to wane. From full hunters’ case watches to ladies’ pendant watches, pocket watches are making their way back into the popular fashion scene. Their renewed popularity may have begun within the youthful goth culture, especially the Steampunk segment of Goth culture which esteemed all things Victorian and mechanical clockwork objects and items. If there’s any modern day item that embodies the spirit of Victorian Steampunk culture, it’s the pocket watch. While the popular comeback of pocket watches may have begun with the underground steampunk movement, it has quickly become a new fashion status symbol, popular with youth from the club scene to the stock market floor. Today, advances in glass mechanics and structure have created a new style of pocket watches transparent, scratch-resistant cover so owners can see the time without opening the case. Popular styles of pocket watches today include replicas of antique pocket watches as well as more contemporary styles that fit with today’s men’s and women’s fashions. 3. 4. Description of Product. The watch has several state of the art features which are meant to satisfy the below mentioned needs of the customers. a) Stated needs – To purchase a luxury product b) Real needs – A jewelry and accessory c) Unstated needs – An ever appreciating value d) Delight needs – Personalized e) Secret needs – An expression of status and exclusivity The features of the watch are as mentioned below: 3. 5. 1. Body Construction – The timepiece will be a beautiful handmade timepiece bearing the owner’s name. The watch may be made out of White gold, yellow gold or titanium depending on the specifications provided by the customer. 3. 5. 2. 1. Crystal – Swiss 3. 5. 2. 2. Glass – Sapphire glass with non-reflective coating 3. 5. 2. 3. Chain – Titanium/Yellow Gold/White Gold 3. 5. 2. Nature and Quality of jewels – The watch will have at least 100 brilliantly cut diamonds on the dial case. The chain will be made out of pure 22k gold with have around 200 cut diamonds. Though these specifications are given for the standard watch provided by our company. We will provide custom designed watches for customers that may have more diamonds. Proof of authenticity will be provided for all the diamonds on the watch. 3. 5. 3. Hand Crafted – Usually custom watches would require 4- 6months of manufacturing time depending on the availability of material. All watches will be hand crafted by highly skilled jewelry craftsmen. As each part needs to be fabricated, decorated, assembled, and tested, you can image that the process takes a long time. 3. 5. 4. Features – a) 26 cities world time (including Adelaide) b) Perpetual Calendar c) Radio controlled: Receives standard time radio waves across the world d) Daylight saving function (automatic in radio wave receivable zones, manual in other zones) e) Alarm, 12/24 hr.time f) Magnetic resistance g) 2000m Water Resistant 3. 5. 5. Limited Edition – The watch will be one of its kinds since the design will be custom made by our designers specifically for our customers. The design will be classic and superior that reflects the unique personality of our client and create everlasting value. 3. 5. 6. Warranty type: lifetime International Warranty 3. 5. Factors Considered while purchasing luxury watches a) Precious Metal Construction – It should go without saying that a high end expensive watch should be constructed from quality materials. This means the best possible metals and so forth, but it is also a good idea to ensure that the metals involved are inherently valuable. It also goes without saying that precious stones also are a desirable component given the style and variety of the watch. b) Nature and Quality of Jewels – The first thing to look at is the origin of the stones. The two major options are natural or manufactured. Natural stones are obtained the traditional manner – via often controversial mining methods. There is an inherent romance to the concept that a stone was derived from the earth, discovered, cut and polished, and then used on your luxury item. Aside from â€Å"recycled stones† (taken from older or unsold items), the alternative to natural stones are manufactured stones. c) Hand Construction – High-end watches are hand-made and assembled by master watch makers. Sometimes a team of people will be involved in making the watch, other times a single watch maker toils for as long as a year or more on a single watch. As each part needs to be fabricated, decorated, assembled, and tested, you can image that the process takes a long time. The longer it takes to make a watch, the more refinement and decoration will be found in an on it. There is no specific amount of time that you should look for as it depends on the company. d) Complications – High-end watches don’t just have beautiful mechanical movements, they have complex movements. Other complications effect how accurate a watch is or how interesting the movement is to look at while in operation (i. e. various types of tourbillon escapements). Other common complications in high end watches are perpetual calendars, rattrapante chronographs, sonneries, fusee and chains, moon phases, and multiple time zones along with world timers. e) Style- The best watch makers are skilled in making unique designs, but ones that are â€Å"instant classics. † The best designs will look good on anyone. Lastly, when looking at a designer look, you want to make sure it has enough unique qualities to justify the â€Å"exclusive† item you are thinking about buying. f) Limited Edition – The best luxury things in life comes in small quantities and are made in limited productions by dedicated people. Besides, having too much of anything cuts the value and the intrigue. So look for limited edition or highly limited production watches. Ask how many of a particular model has been made and whether or not there are 1000 or 100,000 of them out there. The more limited a watch is the more exclusive it is, which is a major component of true luxury goods. g) Appreciation of value – The lucky high-end luxury watch buyer will be able to afford a timepiece that has the potential to increase in value. 3. 6. Segmenting Targeting and positioning 3. 7. 7. Segmenting Market segmentation is vital for a company’s success. Without a clear idea of the nature of the target segments, the firm is forced to use a scatter? shot approach to marketing strategic decision making with little chance for success. It is necessary to identify target segments of consumers and tailor offerings to best meet the wants and needs of that particular group of consumers. 3. 7. 8. 4. Demographic criteria: a) Sex: The luxury market could also be segmented according to the sex criteria. Indeed men’s watches are quite dissimilar from women’s. There are differences on the precious metals used for the fabrication, on the size of the strap and of the dial. b) Income level: Naturally the income is a very important factor of the luxury market, because it determines the purchasing power of consumers which has to be very high. c) Geographic criterion: The luxury watches market could also be segmented according to geographic regions. People from different regions do not share the same culture of the purchasing power. 3. 7. 8. 5. Psychographic criterion Psychographic bass for segmentation center on perceptual issues. These segments are determined by combining individuals who are psychologically similar in their orientations. These distinctions are made based upon similarity of lifestyles, personalities and values. a) Lifestyle – it reflects the ways in which the individual chooses to live their lives. What types of activities they enjoy, what life settings they desire, and who they surround themselves with are all components of lifestyle. b) Personality – here the idea is to group people into roughly similar personality types with the underlying assumption that people will be more favorably disposed toward those of a similar personality profile. c) Core values – to try to match its core values with those of its customer segments building positive associations. The company stresses values in its products/services as well as in its corporate environment and culture, and the hope is that the segment will become loyal to the company because it embodies the core values of importance to the consumer. People have different reasons to buy luxury watches. Five motivations can be listed: * To be fashionable * To have a customized and unique product * To have an excellent and reliable product. * To have a product with the latest technology * To have a high standard of living 3. 7. 8. 6. Segmenting on the basis of Demography a) Income group – HNWI, UHNWI, Billionaires b) Sex – Male, female 3. 7. 8. Targeting Targeting requires the firm not only to aim at but hopefully to hit its target segments. The final important aspect involves the establishment of an important perceptual position in the mind of the consumer. It involves the decision of the number of different segments to select and serve and the best action plans to reach the identified segments. Measuring Effectiveness of Target Segments a) Measurable – size of segment, income and purchasing power, and characteristics of the segment b) Accessible – reachable by the firm and able to effectively serve the segment c) Substantial – large enough and capable of generating sufficient profits d) Differentiable – truly distinct from other segments in terms of composition and response to marketing stimuli e) Actionable – marketing programs can be developed to effectively identify, attract and serve the segment Purchasing behavior of Customers. a) Kind of purchase: Most of the luxury watches are bought either by a person for themselves or for another person (as gift). The unit price of a luxury watch would deter much of the gift buying behavior except by the seriously wealthy or on a very special occasion. One typical example is â€Å"birthday† or â€Å"wedding anniversaries† that, in the latter case, help to promote sales from the late spring onwards. b) Decision Making: In this market, the Influencer is the person who hopes to receive a watch as a gift. For example, it could be a woman who incites her husband to buy one for a special event. The consumer is the one who uses the product. In our example, it would be the woman who asks her husband to buy one for her (the consumer is often the influencer). c) Duration of decision–making process: We can distinguish people who do not consider high price to be a deterrent and who make an impulsive purchase; and others who think about spending such money in a luxury watch for a long time. d) Length of buying process: There is a minority of people who are interested in such product. But those who are really interested have already taken the price into consideration and thus would buy our product relatively easily. e) Consumption process: Due to their high prices, luxury watches are an investment for a lot of’ people and that is why it is in average bought once in one’s life. Analysis of Demand a) Potential market – millionaires and billionaires b) Available market – HNWI (High net worth individuals) UHNWI (ultra High net worth individuals) and billionaires. c) Target market – UHNWI (ultra High net worth individuals) and billionaires Based on the above mentioned Segmentation, purchasing behavior and analysis of demand the firm Perkupoldies would be targeting UHNWI and Billionaires. 3. 7. 9. Positioning The last crucial step is placing of the product or service in a particular perceptual position within the mind of the consumer. The idea here is that there is a specific consumer segment in mind and a specific plan to reach it, and now the idea is to ensure that the target consumer has a clear and distinctive image in mind regarding the product offerings being aimed at them that is consistent and positive. a) Customer knowledge b) Ultimate social symbol c) Brand logo – crown d) Innovations in product line. e) Powerful brand ambassadors f) Sport and cultural events g) Philanthropic programs 3. 7. Distribution Distribution channel is key to the sales of Luxury products like Perkupoldies luxury watch. The central dilemma while choosing the distribution channel is generating sales in a dynamic market while maintain brand image and price. The steps to be followed while choosing a distribution channel are as follows: Step (a) – Analyzing customers desired service output levels: For understanding consumer needs the following 5 service outputs need to be viewed. (a) Lot size – usually one to two watch depending on whether its a single watch order or a couple watch order. (b) Waiting and delivery time – The basic product must have a very waiting and delivery time of less than 15 days for global delivery. The personalized versions will have a waiting and delivery time constraint of less than 45 days. (c) Spatial convenience – As a high end luxury product, it will be required to be available at key luxury outlets. (d) Product Variety – the assortment breadth of the marketing channel is very large as the product is highly customized. (e) Service backup – add-on services like credit, delivery, repairs and a high quality of service will be required by the distribution channel. Step (b) – Establishing objectives and constraints: The primary objective of the distribution channel is to provide easy availability at specific high end luxury retail outlets combined with the online purchase options for a highly customized product. Step (c) – Identifying and evaluating major channel alternatives: There are 3 major channel alternatives namely wholesale, luxury retail and online. There are three distribution channels options available for Perkupoldies luxury watch as mentioned below: a) Wholesale – These are sales through third parties. They may include various stores, boutiques etc. While this option offers growth for the product market there are several challenges associated with this distribution channel. b) Retail – These distribution channels are managed in-house. The sales are usually done through company owned or franchised branded stores. Company owned or franchised stores allow will allow Perkupoldies to have a better control over the pricing. For luxury products ‘Luxury Retail’ presents tremendous opportunities. Luxury Retail includes distribution channels like travel location and High-end hotels. c) Online – Sales and transactions are completed online. This distribution channel can operate as both retail and wholesale. Traditionally websites are operated by established retailers such as department stores and e-boutiques. There is an increasing trend towards luxury outlet e-stores, m-commerce, iPad applications, Social networking etc. Step (d) – Evaluating major alternatives: Based on the above analysis of distribution channel options and weighing their pros and cons it can be seen that the best option of distribution channel for perkupoldies is as mentioned below (a) Luxury Retail outlets in high end hotels and travel location (b) An online channel for customizing the product and ordering it. (1) Customize the Hands of the watch| (2) Customize the Body of the watch| (3) Customize the Body of the watch| (4) Personalize the watch e. g. engravings and pictures on the watch| Shown above online screens to enable customization of the Perkupoldies pocket watch|. 3. 8. Brand â€Å"What Rolls-Royce is to car, Perkupoldies is to pocket watch† Here are five steps to build a luxury brand – (a) Identifying a niche segment One of the fundamental principles of effective branding is for brands to diligently select a lucrative segment that they can then target through an enticing positioning. Given the focus on highlighting symbolic value either through an overall brand experience or via exclusivity in offerings, price points or availability, luxury brands have a heightened need to identify the niche segment for which they have designed their offering. (b) Positioning based on high levels of differentiation Since all luxury brands follow a differentiation strategy, the main focus should be to aggressively differentiate the brand ‘experience’. Successful product differentiation creates a competitive advantage for the seller, as customers view these products as unique or superior. (c) Emphasizing symbolic value Symbolic value emanates from the social standing of the brand, that is, the extent to which the brand is perceived as being an elite offering aspired to by customers. As such, symbolic value reflects the extent to which the brand is endorsed and validated by the cream of the customers. (d) Creating perceptions of exclusivity Perceptions of exclusivity can be created by unattainable price, limited geographic availability, barriers to possession, or even limited supply. Clearly, it is the identity, which the brand confers upon the owner. (e) Uncompromising delivery on superior brand promise Not only do luxury brands need to consistently deliver on the promise of symbolic value, but they also will need to project consistency and continuity at every possible touch point. Maintaining focus on superior value and unique brand experience across time and space is an important part of uncompromising delivery of brand promise. 3. 9. Advertising Print advertising appeals to luxury target groups Luxury brands have to cultivate their image continuously and an important aspect of this is the choice of appropriate advertising media. Although, the two luxury-oriented target groups see advertising as being more credible than the population as a whole, there are significant differences between the individual media, parallel to the degree of receptiveness. For both luxury and for premium-watch buyers, magazine advertisements are the most persuasive with 40 percent of this target group according advertisements the highest level of credibility. Poster campaigns are also rated positively. Less well received is advertising in the electronic media, on television and, above all, in e-mails and on the internet. Premium-watch buyers are also characterized bya very great affinity to luxury. However, they are significantly less interested in fashion than luxurybuyers – precision timepieces are their passion. Premium-watch buyers are interested in watches for watches’ sake and not as part of their outfit. 3. Conclusion This marketing plan explains how an attractive combination of 4P’s can be offered by Perkupoldies to promote and sell the pocket watch. There is an existent market for this product. The ease of entry is very low as it’s primarily an online business with a few high end luxury retail outlets. The company is offering a value proposition by offering a high value item which has an everlasting value. 4. References.