Strategic Global Marketing of Ramya Holding By: ABC

The current case study is based on the scenarios whereby the company under discussion has diversified its operations (which took place in 1998). The Company named ‘Ramya Holding’ initiated its operations in 1988. The domain for company’s operations is related to the apparel industry by using only about 35 machines and 54 workers. The restructuring of the said venture took place in 2003 as Trendywear with an employee count of 1,000 workers. The current factories in operation include Kadawatha, Delgoda, Wellawa, Adhikarigama and Katupotha (thehindu, 2019). It aism at providing the employment to 5,000 employees in Sri Lanka. The firm is well-known due to the provision of the quality products along with the reliability & the timeliness of the delivery (ramyaholdings, 2019) and (ramyaholdingsprojects, 2019).

Scenario: The diversification to the horticulture provided the company with an opportunity to grow ornamental foliage & the plants that are exported to different markets. Later on in 2009, the firm ventured into another arm of Ramya Horticulture. It was aimed at providing the production facility for the tissue culture in Ambewala. The flowers provided for the export purposes were not viable. It made the company to convert into strawberry as well as vegetable farm. The high potential growth provided the company with the decorative plants for both the house & the offices. A global marketing strategy encompasses countries from several different regions in the world and aims at coordinating a company’s marketing efforts in markets in these countries (Johansson, 2010). The strategic global market analysis is aimed at providing the company with the critical evaluation regarding whether its diversification plan is suitable for the company’s growth or not (Fuerst, 2011).

1). Analyze floriculture export market using porters five forces analysis

In order to assess the structure of an industry, there exists Michael Porter’s five forces model. It is basically aimed at providing the analysis regarding a particular situation whether it is suitable to initiate the operations in a specified region or not (investopedia, 2019). For the current case study, strategic global marketing analysis is given for the Porter’s five forces model:

·         The bargaining power of the suppliers: The suppliers in the global market may be in the limited number. They might be fulfilling the needs of the local markets and might not be able to provide the material required for serving the needs of the horticulture for the company under discussion. The inputs required by the Ramya Holding might be so unique that they are only available with a few number of suppliers. It tends to put you the company in a position where it cannot bargain to the maximum extent. In order to better serve the global markets, the company is required to form the partnerships with the suppliers.

·         The bargaining power of the buyers: The market analysis is desirable for evaluating the market trends along with the supply of the horticulture products. In case the buyers are provided with the excessive supply of the product, they can then bargain more for the specified items. The company is required to provide the unique and the differentiated products for satisfying the customer’s demands in the global market. It also helps the company to earn the increased revenues. In order to increase the buyer’s loyalty towards the products of Ramya Holding, it needs to initiate the loyalty programs.

·         Threat of new entrants: The processes of Ramya Holding need to follow the strict rules, regulations and the patents. The customer’s loyalty loop for the products of the said company needs to be strengthened, otherwise the potential competitors will get the more chances to penetrate in the same market may be with the more differentiated products. Also, the threat for the new entrants increases when Ramya Holding is showing less commitment towards the market research and analysis as well as the less investment of the capital assets.

·         Threat of Substitutes: Ramya Holding has the threat for the potential substitutes in case it is intending to provide the products, to the customers, with the less benefits as compared to the costs. Finding the alternatives and switching from one product to the other is so easy for the customers. It is entirely based on their experience associated with the use of the specified products.

·         Rivalry among competitors: The rivalry among competitors tends to increase for Ramya Holding in case the company is to compete with a group of two or three strong rivals. Rivalry will be more intense, when competitors with diverse strategies and relationships have different goals and the “rules of the game” are not well established. In order to better compete in the market place, Ramya Holding needs to formulate the strategy for serving a specified portion of the market place (cgma, 2019).

2). Critically evaluate the growth possibilities of indoor plants segment in changing world using ansoff’s matrix.

At present, everything is trending to become modern and revolutionized. Almost every new thing is adopted with the view to provide it with the modern and the advanced techniques. So as is the case with the company under discussion. A critical evaluation of the growth possibilities of indoor plants segment in changing world using Ansoff’s matrix is given below (smartinsights, 2019):

Figure: Ansoff’s matrix of Strategic Global Marketing of Ramya Holding

·         Market Development: The market development strategy is based on providing the similar products to the new markets whereby there exit the demand for the company’s products. Ramya Holding which is currently operating in its area of origin can better satisfy the customer’s demands in the global market. To do this, the company needs to conduct the extensive research in other markets. It will help the company to evaluate the market trends, along with the customer’s taste, choices, prevailing prices, costs, potential competitors and the barriers that resist the company to operate in a specified market (onstrategyhq, 2019).

·         Market Penetration: In order to effectively serve the global market, Ramya Holding can better use the market penetration strategy. It will help the company to market and sale its product to the potential customers but in the diversified market. This can better be done by just entering the current potential market with the existing product in order to grab the increased market share. For the said purpose, the company can adopt the strategy for running the effective promotional campaigns. The more the time and the resources are invested in promoting a company’s products, the more the marketing penetration tends to increase. Also, Ramya Holding can use the effective distribution channels along with the product improvements. It will help to increase the company’s product usage (inevitablesteps, 2019).

·         Diversification: Out of many available diversification forms i.e., concentric diversification, conglomerate diversification, internal diversification, external diversification, vertical integration and horizontal diversification, Ramya Holding Company adopt any of the above said diversification form. As per the nature of the business the significant form that can be taken into consideration includes the conglomerate diversification and external diversification (Sisodia, 2010). It will provide the company with the opportunity to better serve the market place other than its main line of operations. It will thus serve the customers in the more diversified ways (referenceforbusiness, 2019).

·         Product Development: The product development can better help the company to serve the global markets by producing different variants along with the repackaging of the existing products. It can also be done by just developing the most related products or the services. The main objective behind doing this is to provide the customers with the various and high quality products (ebooks, 2019). It can be done by performing the marketing research in order to know about the customer’s needs and the expectations in the global market. Ramya Holding has diversified its products many years ago. Now it is just time to develop the product in the global market along with the local market.

3). Recommend two countries in which indoor plants concepts may be succeeded internationally with appropriate justifications.

Everyone has the desire for the perfect look. The fascinating thing in this regard is to make the view impressive especially when it comes to decorate the dream home. There are many benefits associated with the use of these indoor plants. The indoor plants tend to provide the varying benefits to these customers i.e.,

·         Indoor plants tend to purify the indoor environment: Just looking at an indoor plant makes you feel good and relax. It is all about spending less and getting the more benefits out of your expenditures. For an average person, the normal time to spend at home is almost 70% of the total time of the day. The more the environment is pleasant, the more it is relaxing. Many of the people suffer from the allergy and the asthma due to the air pollutants. The indoor plants are the major source for purifying the indoor environment. They are beautiful, uplifting and can be potted in the ceramic pots.

·         Health benefits: the indoor plants also tend to provide the users with the health benefits. The major benefit associated with the use of the indoor plants is to get rid of the depression and the stress. It also helps to feel relax, less fatigued, improve air quality, improve the oxygen flow along with the possible reduction to the carbon dioxide along with the positive effect on the mood.

·         Fascinating view: if the surroundings are fascinating, then a person feels relax to work in such an environment (teamovercs, 2019) and (goodhousekeeping, 2019).

The countries that are taken into consideration as the potential market in order to apply the concepts of indoor plants are Australia and Japan. The reason behind the selection of these two countries is their culture as well as their buying behaviors. The customers are selective and choosy also there buying behaviors make them unique and distinguished. Ramya Holding can serve these regions globally, by just conducting the research in the marketplace. It will make the company to know about the buying and the selling trends of these regions.

As far as the customer’s demands and the buyer’s choices are concerned, in these regions the customers are so choosy. They more focus on making their homes and the workplace fascinating. Also, they are of the view that working in a relax environment makes it easy for them to attain their goals and objectives timely. It thus helps to increase their productivity along with the satisfaction. Also, there are a large number of the buyers and the sellers in these markets. More the availability of the options, more there will be negotiation and the bargaining. It can be helpful for Ramya Holding to generate increased profits along with the increased customer count as well as the strengthened loyalty loop. By taking into consideration the effective marketing plans and the strategies, Ramya Holding can better conduct the market research and serve the market globally. This market research will provide the details about the needs and the expectations of the customers in the market place. The strategies of the potential competitors also need to be regarded. They can be beaten up only their plans and the direction for their strategies is well-known. These parameters make the markets under discussion more attractive for Ramya Holding. The company can better avail the opportunity for serving the global market.

 Conclusion of Strategic Global Marketing of Ramya Holding

In today’s world, there exists the huge competition among the companies that makes them to formulate the effective strategies as per the market demands and the needs. The more the customer’s demands are fulfilled, the more the company’s goodwill and the profitability increase. It helps the company to stay competitive in the market place. The company which makes the effective strategies to serve the market place becomes the market leader. The customers better recognize the brand. For the newly established or the growing companies, there exist many hurdles or the challenges in the market place. So as is the case with the company under discussion i.e., Ramya Holding. Although, since inception the company has gained sufficient growth in the local market place but in the global market it is to face serious challenges. It can be either in the form of the suppliers, the customers, the new entrants or the competitors, the substitutes or the opposition from the competitors.

The company has better served the local market place with the existing products. It helped the firm to operate in more than one areas but more specifically in the local market. For the global market, the company is required to make the effective strategies. These strategies can be related to the customer’s needs or expectations, market demand, number of suppliers, competitors and the substitutes in the market place along with the consideration of the region of operation. The more effective the strategies of Ramya holding are, the more helpful it will be for the company to serve the global market place. The main aim of the company is the expansion along with the increased profits over time. The increased customer count will help the company to strengthen the customer loyalty loop and retain the customers.

Recommendations of Strategic Global Marketing of Ramya Holding

In order to serve the global market with the differentiated products, Ramya Holding is required to follow as given:

·         Conduct the market research effectively in order to get the know how about the customer’s needs and the demands in the global market place.

·         Promote and market the product through effective promotional strategy.

·         The distribution of the product is desired to be supported by the decentralized distribution channels.

·         Go for serving new markets with the unique ideas to retain the potential customers on long term basis.

·         Differentiate in your product which makes you unique as compared to the competitors in the market place.  

·         Diversify in the main as well as the sub-products.

·         Segment the market portion which is not served by the potential competitors.

·         Provide the discounts to the customers beyond the purchase of a product after a specified limit. It can also be provided to the regular customers.

·         Attract the customers through the first come, first-serve basis.

·         The company is required to differentiate either in the product or the market. It can be done by serving the existing market place with the new products or by serving the old markets with the new and unique products.

References of Strategic Global Marketing of Ramya Holding

cgma, 2019. CGMA: Porter's Five Forces Model. [Online]
Available at: https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html

ebooks, 2019. Product development strategy. [Online]
Available at: http://www.free-management-ebooks.com/faqst/ansoff-04.htm

Fuerst, S., 2011. GLOBAL MARKETING STRATEGY: THE CASE OF A BORN GLOBAL SOFTWARE FIRM IN COLOMBIA. Science Direct.

goodhousekeeping, 2019. Indoor plants. [Online]
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inevitablesteps, 2019. Market Penetration Strategy. [Online]
Available at: http://inevitablesteps.com/marketing/market-penetration-strategy/

investopedia, 2019. Porter's Five Forces Model. [Online]
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onstrategyhq, 2019. On strategy: How to choose a market development strategy. [Online]
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ramyaholdings, 2019. Ramya Holdings. [Online]
Available at: http://ramyaholdings.in/

ramyaholdingsprojects, 2019. Projects of Ramya Holding. [Online]
Available at: http://ramyaholdings.in/projects

referenceforbusiness, 2019. Diversification strategy. [Online]
Available at: https://www.referenceforbusiness.com/management/De-Ele/Diversification-Strategy.html

Sisodia, R., 2010. Point of Difference and Product Differentiation. Wiley Online Library, pp. 1-10.

smartinsights, 2019. The Ansoff Model. [Online]
Available at: https://www.smartinsights.com/marketing-planning/create-a-marketing-plan/ansoff-model/

teamovercs, 2019. Importance of having indoor plants. [Online]
Available at: http://teamovercs.com/2018/09/indoor-plants-names/

thehindu, 2019. Ramya Holdings Pvt. Ltd. [Online]
Available at: https://roofandfloor.thehindu.com/bangalore/builders/ramya-holdings-pvt-ltd-60i