Marketing plan of Deloitte Malaysia (2013-2017)

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Marketing plan of Deloitte Malaysia (2013-2017)

 

1.        Part 1 – Preliminary analysis and screening

 

1.1    Company character: the business’ values and beliefs

 

Deloitte as one of the big four professional services firms has a proud heritage and history which could be dated back to more than over 100 years. DTTL (Deloitte Touche Tohmatsu Limited) and each DTTL member firm are to secure the provision of professional services in its territory through subsidiaries, affiliates, and/or other entities, the vision is unchanging: We aspire to be the Standard of Excellence, the first choice of the most sought-after clients and talent. The shared values are timeless. They succinctly describe the core principles that distinguish the Deloitte culture.

 

1.2    Executive summary

 

This study consists of four major parts: (a) a comprehensive situational analysis which is made up of both internal and external environment analysis using various market analytical tools such as 4P’s and Porter’s five forces; (b) critical analysis of the company’s strategic and marketing position using SWOT analysis; (c) setting the business objectives and marketing objectives to be full-filled by the company in the period between 2012 to 2015 financial years; (d) Analyze the resources and evaluation mechanism to ensure the viability of the marketing plan

 

1.3    Home country constrains

 

 AdvantagesDisadvantages
Political factorsLow tax rate (corporate tax and individual tax)Fluctuations of the UK

currency

Economical factorsStable economy development statusStill recovering from the economic crisis and impacted by the debt crisis in Europe
Social and cultural factors Demanding more professional accounting services
Technological factorsWidely accepted computer usage 

Table 1 PEST analysis of UK (home country)

 

1.4    Host country constrains

 

 AdvantagesDisadvantages
Political factorspolitical stability, MNC friendly governmentRecent political protest
Economical factorsFast economic pace 
Social and cultural factorsSocial harmony 
Technological factorsGood transport serviceUnder development compared to that of the home country
Environmental factors  
Legal factorsFollow the English common lawComplex Islamic law and customary law.

Table 2 PEST analysis of Malaysia (host country)

 

 

 

 

2.        Part 2 – The current situation analysis – the internal landscape.

 

2.1    Product or Service

 

Throughout the world collaborate the company is to provide audit, consulting, financial advisory, risk management, and tax services to selected clients.

 

Figure 1 Ranges of services offered by Deloitte

 

Below are some aspects demonstrating the professional services in the product of “consulting” offered by Deloitte:

 

 

 

 

 

 

Our serviceProportion of saleFeaturesBenefits
Strategy and operations5%Experienced consultants in the various industries ensure the quality of the service, comprehensive service lines that include Corporate strategy, Customer and market strategy

CFO services, Mergers and acquisitions, Performance improvement, Supply chain

Provide a broad view on the strategic direction making
Human capital12%Organization, Change & Talent; HR Transformation; and Total Rewards.Save time for companies to filled the key positions,  help increase the effective usage of human capital, Offer the key channels to the most talented people in the key positions,
IT project management3%eminent industry knowledge and technology solutionsDevelop IT strategy and set-ups to comparable world class best practices with lower cost
Technology integration (including ERP)4%deep alliances with all of the leading enterprise applications vendorsHelp achieve standardization, integration and sound implementation of the relevant systems
Financial advisory25%deep technical skills in Malaysia and abroadHelp clients in different industries and different economic cycles to make appropriate strategic decisions based on their particular financial situations

Table 3 The major consulting services

 

 

 

Our customers

 

Our business will be selling to the selected business clients (large and medium size companies) and the company prefers to serve those that are developing in a rapid speed and help to address their business needs and problems.

 

Number of customers we expect to win in each group and the amount of money that they will possibly spend is stated as following:

Our serviceProportion of saleNumber of customersAmount of money that customers will possibly spend (on average)
Strategy and operations5%About 3,000About RM 200,000
Human capital12%About 9,000About RM 150,000
IT project management3%About 1,000About RM 300,000
Technology integration (including ERP)4%About 1,500About RM 350,000
Financial advisory25%About 7,000About RM 100,000

Table 4. Our customers in the consulting service

 

In the Malaysian market, with the rapid and steady growth of the economy and social development, it has become a center attracting more and more companies to move their headquarters into the country, and also with the trend of the fast raise of the Southeast Asia economy zone, there will be an increasing demand for the financial and strategic consultancy services.

 

And we know this from the company’s various reports about the industries, economy of Malaysia as well as the recent related news reports.

 

 

 

2.2    Pricing strategy

 

Pricing strategy refers to method companies use to price their products or services. Almost all companies, large or small, base the price of their products and services on production, labor and advertising expenses and then add on a certain percentage so they can make a profit (chron.com 2011). In term of the pricing strategy in Deloitte Malaysia, in all the Strategy and operations, Human capital, IT project management, Technology integration (including ERP) and Financial advisory services provided by Deloitte is perceived as professional, world class and premium and there is an increasing demand for the company’s service. And because the market is growing, the company right now applies the competitive pricing which refers to the setting of the level of prices similar to that provided by competitors and needs a careful analysis of their pricing strategies (Kozak & Baloglu 2011, p. 135) in the Malaysia market.

 

The company provides discounts of the prices of services based on three major indicators: clients’ length of service, scale of the clients’ business and also the average amount of the deals related to the specific client.

 

2.3    Place

 

According to Charles W. Lamb, Joseph F. Hair and Carl McDaniel (2011, p. 192), distribution strategies for service organizations must focus on such issues as convenience, number of outlets, direct versus indirect distribution and location. Convenience is what the company tries to offer to all the clients and hence, clients who need assistance could expect a most recent appointment with the professional consultants who are in charge of the clients just by making a call to the company.

 

 

 

2.4    Promotion

 

The term promotion mix refers the combination of different kinds of promotion tools used by a company to sell its products and services (Trehan, M. & Trehan, R. 2008, p. 52). Deloitte uses a mixture of print ads, radio advertising, internet advertising, public relations and direct marketing to market its services. The promotional activities have two major audience groups: the first audience group is the customers (the business companies who could become the clients of the Deloitte Malaysia) and the second group is the public media from which common people got to understand the business that the company is focusing on.

 

2.5    People

 

The company has over 1,300 staff and partners across 8 offices in Malaysia of offer depth, experience and solutions that the clients need to make decisive moves. These people is core resources of the company that it can account on to provide professional services to its global clients.

 

2.6 Processes

 

The company’s Code of Ethics and Professional Conduct lays the foundation for good business decisions and guides the people of Deloitte Malaysia in conducting business honorably, ethically and with utmost professionalism.

 

2.6    Physical evidence

 

The company holds a number of programs to market its business. For example, the Deloitte International Student Business Forum 2012 though interacting with top students from around the world, developing critical leadership skills and working as part of a team to solve a complex business case offer an excellent chance to market the company’s image.

 

3.        Part 3 – The current situation analysis – the external landscape.

 

3.1    Market overview

 

With more and more MNCs choose to locate their headquarters in Malaysia; the management consultancy and accounting industries of Malaysia are growing steadily. And also the government supports the development of the consulting industry in the country by giving easy eligibility for the international financial and consulting services providers to apply for the Multimedia Super Corridor Malaysia status which would help the multinational companies to enjoy a number of benefits in term of employing foreign workers and so on (Jomo & Sundaram 2007, p. 75). With the support from the government and the expected fast pace of economy growth, the management consultancy industry will be expected to be growing in a healthy fast speed.

 

3.2    Competitor analysis

 

Over the years, Deloitte has consistently closed the gap and widened the lead among its major competitors. In fact, over the last several years, Deloitte was the fastest-growing private professional services organization based on total revenue among the Big Four. But it still faces strong challenges from the three of the other Big Four companies.

 

 

 

 

The main competitorsFeaturesStrengthsWeaknesses
Pricewaterhouse CoopersOnce the largest accounting firm; The first to adopt the BMP model in integrating various resources globally; high R&D levelSimilar revenue compared with Deloitte but less employees hired (higher employee productivity); Leadership among the big four;Negative public image because of lawsuits
Ernst & Young InternationalProvide growth oriented training program to employees;New organizational structure; Extensive global reach and wide range of services sustaining momentum revenueHigher dependence on Fortune 500 affecting the revenue and profit making
KPMGA global network of professional servicesBe able to integrate members firms resulting in increase of stakeholder credenceLack of transparency to the clients and also to other key stakeholders

 

4.        Part 4 – SWOT analysis.

 

SWOT analysis refers to a tool that recognizes the Strengths, Weaknesses, Opportunities, and Threats of an organization. Once this is accomplished, SWOT analysis determines what may help the firm in accomplishment of its aims and objectives (readyratios.com 2009).

 

4.1    Strengths

 

l  Rapid growth

l  Cost advantage

l  Market share leadership

l  Strong brand equity

 

4.2    Weaknesses

 

l  Bad communication

l  Over leveraged financial position

l  Low R&D

l  No online presence

 

4.3    Opportunities

 

l  Emerging markets and expansion abroad

l  Innovation

l  Online

l  Product and services expansion

 

4.4    Threats.

 

l  Maturing categories, products, or services

l  Price wars

l  Product substitution

 

4.5    Summary

 

From the above comparative analysis using the useful SWOT analytical tool, we can draw some conclusions about the Deloitte regarding how it could position itself in the competitive management consultancy industry with the other major key competitors. In term of advantages, the company maintains a rapid growth which helped it to top the Big Four in term of revenue and obtain the market share leadership; such leadership is also enhanced by the strong brand equity of the company in its long history. But there are also some weaknesses of the company that may slow down the company’s future growth pace: first of all the company needs to have a better communication with the society to build up a good reputation which could be damaged by some lawsuits; secondly, the over leveraged financial position also put the company into a defending place because of the financial risks and last but not least, the company has a relatively lower level of R&D (research and development) which will reduce the cost and market share leadership in the near future. And in term of threat, the price war could limit the profitability of all the management consultancy business where the company is involved. And in term of the opportunities, the company’s weaknesses provide with a room for improvement in the future, therefore the company could develop more chances through the strengthening of the R&D activities as well as enforcing better publicity image through some marketing efforts.

 

5.        Part 5 – Objectives – the internal landscape

 

5.1    Overall strategy

 

With over 230 partners and 5,300 professionals in 22 office locations, the subsidiaries and affiliates of Deloitte Southeast Asia Ltd combine their technical expertise and deep industry knowledge to deliver consistent high quality services to companies in the country where the economy is booming, therefore its overall strategy is to provide premium accounting, auditing, tax and management consultancy services to the clients with competitive pricing. And in term of the consultancy service, the company needs to increase the number of product lines to cover more needs of the possible clients.

 

5.2    Product or service

 

Its major long term product strategy is to take into account of the special company needs, in particular the local companies’ needs such as the requirement of the Islamic laws and conventions, and lead the product innovation in the industry.

 

5.3    Pricing

 

With a focus on the high quality of services and the market competition, the company will turn to a market oriented pricing which involves setting a price based upon analysis and research compiled from the target market. This means that marketers will set prices depending on the results from the research.

 

5.4    Place

 

Direct contact and sale is encouraged while the role of the specialists’ intermediaries is reduced largely to reduce the costs. In addition, the customer service should also be enhanced to reduce the response time that a client takes to expect for an appointment and receive a final solution or recommendation.

 

5.5    Promotion

 

Advertising would still dominate the major part of the promotion mix while the usage of the direct mail will be reduced and internet marketing and also public relations which involves developing positive relationships with the organization media public will be strengthened with the increasing usage of PCs and e-commerce.

 

5.6    People

 

More global talents would be recruited strategically to strengthen the core competitiveness of the company’s business. Because of the lower level of R&D power, the company as mentioned above should seek opportunities to enhance the R&D power, therefore the training of the current employees who are the major source of core competiveness of the business will be of great importance.

 

5.7    Processes

 

The company’s Code of Ethics and Professional Conduct should ensure the company and staffs’ conducting business honorably, ethically and with utmost professionalism with respect to the national laws and local business culture.

 

 

5.8    Physical evidence

 

A landmark could be necessary in the business and financial center of the capital the exhibit the company’s image. This physical change will also help to promote the publicity of the company in the Malaysia market though it could be costly to the company and reduce the profit in the several financial years. But it would be helpful in the long term because people or clients got to understand the accounting firms through these physical evidences.

 

6.        Part 6 – Budget and action program

 

Marketing actions123456789101112Budgetary amount
Advertisement××

×

×××

5880

Promotional events×××××××

3360

Partner maintenance×××

×

840

Marketing research××××

840

Employee training××××××

1680

Distribution channel maintenance×××××××

840

Renovation of the building××××

3360

In sum

16800

Table 5 Budget and action program (in thousands RM) for 2013

 

Similar action and budget program would also be applied for the 2014 to 2017 financial years.

 

7.        Part 7 – Resources and evaluation.

 

 

 

 

7.1    Resources

Resource

When

How funded

Cost

Campus recruitmentJune 2013Sponsorship

Capital (in cash)Sep 2014Bank loan

New headquarterJan 2015Company profit

7.2    Evaluation

 

7.2.1            Through yearly review of the targets

 

The first evaluation tool is through the yearly review of the targets, this would require the company to set the yearly target for each department to fulfill their jobs. By review of the implementation of the targets, the company could identify the problems that exist in that particular year which has significant meaning of guidance to the future years’ plan. And in addition, the company could try to amend to next year’s target by referring to the last year’s data because the market is changing as well as the economic conditions which have significant impacts on the company’s operating activities.

 

7.2.2            Progressive targets to be hit

 

The progressive targets are usually not yearly basis; they are usually the result of the breakdown of the long term goals in term of quarterly goals and monthly targets, by setting these progressive targets to be hit by the company, strict control over the implementation of the plan could be maintain. But one negative consequence of a strict control over the implementation of the business plan is that it may limit the long term profitable projects development such as the R&D activities that will increase the long term profitability of the company. This disadvantage is obvious in the case of Deloitte Malaysia.

 

7.2.3            Evaluation of the employee performance

 

As mentioned above, the people (the employees) are the source of core competitiveness of the company as a major accounting firm and management consultancy service provider; therefore, it will be necessary for the company to keep a close eye to the evaluation of the employee performance.

 

7.2.4            Evaluation of the management performance

 

The management performance should be another major job that the company should focus which will help enhance the overall company efficiency as well as the effectiveness of the jobs done by the individual accountant and management consultants.

 

7.2.5            Evaluation of the leadership effectiveness

The management performance could be operating efficiency but another major aspect of the management job is leadership practices, the effectiveness of the leadership behaviors could help create a strong corporate culture that holds the staffs and management together for the better achievement of the business and marketing goals.

Referencing

 

Chron.com 2011. Definition of Pricing Strategy. Viewed on 10 Mar 2012 [online] available: http://smallbusiness.chron.com/definition-pricing-strategy-4686.html

 

Jomo, K. S. & Sundaram, J. K. 2007, Malaysian industrial policy. Singapore: NUS Press. p. 75

 

Kozak, M. & Baloglu, S. Managing and Marketing Tourist Destinations: Strategies to Gain a competitive edge. New York: Routledge.

 

Lamb, C. W., Hair, J. F. & Carl McDaniel 2011, MKTG 5. Natorp Boulevard: South Western Cengage Learning. p. 192

 

Readyratios.com 2009. SWOT Analysis. Viewed on 10 Mar 2012 [online] available: http://www.readyratios.com/reference/analysis/swot_analysis.html

 

Trehan, M. & Trehan, R. 2008, Advertising and Sales Management. New Delhi: V. K. (India) Enterprises. p. 52