4.1 Discussion: Devotional – Is Profit Biblical?
1. You identified a company or industry of interest to use in your degree program. Until the world finds a way to not need charities, we need profitable organizations to pay good wages to generate the ability to personally donate. There is often public debate about “reasonable profit.” What is reasonable? Is it an after-tax rate of 3%? 6%? 13%? What about the years when profit is -4% or -11%, meaning a loss was incurred? Can a company then be allowed to make 18% the next year for an average of 7% if 7% is considered “reasonable”? Who and what determines “reasonable profit?”
2. Consider these questions and post your thoughts on them:
a. Is profit inherently evil or can it exist in the kingdom of God? Please explain.
b. Is there such a thing as unreasonable profits in your company or industry of interest? If so, how do we determine that level where profits become unreasonable? If not, what do you say to those who feel there is?
4.2 Discussion: Research-based Peer Alternative Response to 3.3
1. Review the initial internal and external marketing environment report from your peer as submitted to the
3.3 Discussion
.(Attached)
2. You will need to do appropriate research on the industry and category so that you understand them in order to make an educated analysis and recommendation for this section of the consultant’s report. It is important to start out with a thorough understanding of the category and industry. You should not rely on the original writer’s research and description of the industry.
3. You will provide a 250- to 350-word review to your peer as a post in the discussion forum. Your review must provide a different or alternative perspective, interpretation, conclusion, and/or recommendation for at least one (1) of the four (4) elements noted in the assignment (these should be the 4 titled sections from the
Market Analysis Report Template
)
, based on your personal objective analysis of the category using credible sources. You do not need to have an alternative for all four elements of the assignment, but your alternative may involve more than one element since many of them are related.
4. You will not discuss the original writer’s analysis or recommendation; all of your comments must be focused on your objective interpretation and analysis. You must have a distinctly different perspective and/or recommendation in your alternative response. In other words, you are looking at the same scenario in the same industry and/or category, but you are coming to a different conclusion such that any form of “I agree” in your review is not an option.
5. You must cite at least two credible sources that were not used by the original writer to support your interpretation and recommendation.
6. Cite your work per current APA standards, however, indenting of the references is not required due to the discussion board format. (See the
APA Style Guide.
)
4.3 Discussion: Research-based Marketing Plan Initial Proposal – Pricing, Promotion, and Distribution Channels
1. Construct a proposal to NextEra Energy Inc. of 1000 words (+/- 50 words) using at least four credible and objective sources not provided as resources in the course in your analysis, plus at least one source provided in the course reading list.
2. Use the titles in the Market Analysis Report Template to create six sections for this part of the consultant’s report:
a. Analysis of Current Pricing Models in the Market
b. Analysis of Current Promotional Models in the Market
c. Analysis of Current Distribution Models in the Market
d. Recommended Pricing Strategy for NextEra Energy Inc.
e. Recommended Promotional Strategy for NextEra Energy Inc.
f. Recommended Distribution Strategy for NextEra Energy Inc.
3. The first three sections require significant quantitative data and will be used to support the three recommendation sections. These analysis sections should provide a solid overview of existing competition with enough specifics from primary competitors to demonstrate a mastery of the market. You will not need to detail every competitor in the market; you should focus on those competitors which will be closest to NextEra Energy Inc. in the positioning matrix and/or those who hold the largest market shares.
4. You do not need to necessarily use a different strategy than the competition in any of the three recommendation sections, but your recommendations must provide a logical and substantially strong argument for why your set of tactics will be successful. Going head-to-head is very difficult so your combination of tactics must meet the standard that it has a high likelihood of success. You should be creative and use the most current methods and trends to establish differentiation for your target customers.
5. Cite your work per current APA standards, however, indenting of the references is not required due to the discussion board format. (See the APA Style Guide.)
4.4 Assignment: Research-based Marketing Plan Final Proposal – Product Development and Market Demand
1. This is your revised final draft of the product development and market demand section of your consultant’s report. It is based on what you posted in the
2.3 Discussion
and on your peer’s comments and response posted in the
3.2 Discussion
.
2. Your revised final report must integrate your peer’s alternative analysis or recommendation as an alternative perspective as part of your final report. You must either accept your peer’s perspective as a replacement to your initial proposal based on adequate credible theory and current marketing practice to accept it or you must provide adequate credible theory and current marketing practice to reject it. If you accept it as the correct analysis or recommendation, then the peer alternative will become the primary focus of your final paper, and your original analysis and/or recommendation will be noted as an alternative perspective that you have rebutted through cited research. If you do not accept the alternative, then you only need to discuss it as an alternative and provide objective and qualified reasons to reject it.
3. Use the titles in the Market Analysis Report Template to provide structure for the following four elements in your consultants’ report:
a. Product Development
i. Key differentiating characteristics of the offering
ii. Analysis of demand in the market
b. Market Segment Demand
i. Quantitative data used to determine projected demand
ii. Methodology used to determine demand
4. The body of your paper (i.e. excluding title page, graphics, appendices, and references page) must be 1300 words (+/- 50 words). In the event that your peer did not provide feedback, your length must be 1000 words (+/- 0 words) and you will not be penalized for not including the missing feedback.
5. You must use, cite, and reference at least five credible sources not provided in the course documents, plus at least one source provided in the course documents.
Analysis of Key External Factors in the Market
· Threat of Substitute Products or Services: All-natural pet food is a traditional market that has seen growth due to demand for natural options rather than synthetic options. While a large-scale entry into the market is not feasible for most, targeting an online presence does leave JGJ open to vast competition as e-commerce becomes the predominant form of shopping throughout the world. Currently, there are many competitors in the sector; however, there are currently not many targeting an online-only audience and distribution network.
· Bargaining Power of Suppliers: With a market like pet food, suppliers do not have as much bargaining power. Considering the product is using all agricultural resources, the bargaining power of the supplier is in the supply itself. When supply is strong, the material market would be vastly competitive with the buying power of large organizations like Nestle or Blue Buffalo (Contributing Author, n.d.)
· Threat of New Entrants: This market in an e-commerce environment could see a medium to high level of threat of new entrants. The FDA does not have strict standards for the production or distribution of pet foods, removing some barriers to market entry for competitors.
· Bargaining Power of Buyers: Buyers will exert power by choosing options that offer them the highest quality pet food. Since the market is all-natural, most consumers will want the highest quality product they can get, which will be dictated by their belief in the presentation and accurate data regarding the offerings.
· Rivalry Among Existing Competitors: The market has a limited range of creativity and leeway in how it is presented to consumers. Most raw materials do not fundamentally change, so competitors rely on creative ways to make their product superior to the others (Contributing Author, n.d. “The five forces”).
· Other macroenvironmental external factors for JGJ to consider mostly relate to current economic conditions surrounding the global pandemic and the aftermath. With tensions high as inflation rises and new financial systems become more prominent, volatility can and should be expected.
Required Internal Resources and Competencies to Compete in the Market
To enter this market successfully, JGJ will require both a production facility and warehouse facility from which the product originates prior to online ordering and delivery. The production facility would need to include all necessary equipment to process raw materials and bake them into a final product. The facility will also require both the equipment to pack the product and transport it across to either a dock or to an attached warehouse facility. While required capital should be calculated to ensure viability, it is likely to be several million dollars amortized over a period of time (Staff Writer, 2021).
Internally, multiple teams with a robust knowledge of key areas will be required: customer service, product development, distribution, operations, and management. A significant amount of capital will need to be initially fronted to both hire and train employees. Additional expense will be incurred during the process of locating these candidates and screening them for viability.
Required Licenses, Patents, and Rulings or Legal Requirements to Compete in the Market
The FDA does not have stringent requirements regarding pet food and any licensure required would be from the state, city, or county where production will occur. The patent required would be for the recipe and formula of the food itself, especially if JGJ becomes a serious market competitor. In fact, the FDA (FDA Author, 2020), does not require premarket approval. However, the FFDCA requires pet foods to be produced under sanitary conditions and be truthfully labeled. JGJ’s chosen state of production would dictate the necessary licensure.
References:
Contributing Author (n.d.). The five forces. Harvard Business School. Retrieved from https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx
Contributing Author (n.d.) Blue Buffalo Pet Products, Inc. Porter Five Forces analysis. Fern Fort University. Retrieved from http://fernfortuniversity.com/term-papers/porter5/analysis/588-blue-buffalo-pet-products–inc-.php
FDA Author (2020). Information on marketing a pet food product. U.S. Food & Drug Administration. Retrieved from https://www.fda.gov/animal-veterinary/animal-health-literacy/information-marketing-pet-food-product#:~:text=There%20is%20no%20requirement%20that%20pet%20food%20products,contain%20no%20harmful%20substances%2C%20and%20be%20truthfully%20labeled
Staff Writer (2021). How to start a pet food business. TRUiC. Retrieved from https://howtostartanllc.com/business-ideas/pet-food
10
I posted in 2.3
Product Development
The NextEra Energy Firm has been doing its best in this business, and by implementing some specific tactics, the company has been able to enhance quality, such as increasing renewable energy supplies. There has been fierce rivalry in this market, as various companies strive to meet the 2030 Sustainable Development Goals to continue benefitting from their operations (Aghahosseini, Bogdanov, & Breyer, 2020). These advantages have produced significant results in the company’s financial reporting, as seen in each calendar. The primary benefit here is product development, which is resulting in a rise in the number of outcomes created and generated each year. NextEra Energy has a current annual sales volume of over $18 billion and a total producing capacity of 45,500 megawatts, according to the company’s financial report. The company’s long-term commitment has aided in the generation of sustainable energy.
Regardless of the pressures of competition, NextEra Energy Corporation has remained focused and has always put its best foot forward, which is why the firm is succeeding. Differentiating the firm’s products is a vital management approach that has undoubtedly assisted the corporation in outperforming its rivals and competitors. The approach of distinguishing products has been employed in product positioning in comparison to other organizations that produce power. The target audiences (consumers) have acquired an interest in the corporation’s products because of this, as the majority of them want to achieve the 2030 Sustainable Development Goals (Burger et.al, 2019). The company has upgraded its services in order to develop its products and make them more distinctive, attracting more customers from various sources.
Taking advantage of economies of scale also entails improving services and expanding the business. More of NextEra Energy Inc.’s competitors were frustrated as a result of the company’s efforts to attract more customers, but this had no effect on the company’s ability to execute new initiatives. The company has benefited from its rivals’ and competitors’ frustrations because it has continued to create solid connections with customers by providing sustainable energy and supporting actions that address climate change. As a result, the corporation’s competitors have begun to cut their rates by 0.03 percent, implying that the company’s revenue record is substantially smaller during each marketing session (Aghahosseini, Bogdanov, & Breyer, 2020).
Many of this company’s competitors are currently battling to position their products and services. Competitors of NextEra Energy use product positioning to achieve their aim of generating clean, emissions-free power from many units (Bostanci et al., 2019). Several variables, including as the Covid-19 epidemic, had an impact on their product positioning approach. Consumers play an important part in a variety of businesses, and in this case, they were to assess if the product positioning strategy would succeed because they had long relied on nonrenewable energy sources (Kaleka & Morgan, 2019). The coronavirus pandemic disrupted many of the functions that many organizations had adopted, as well as many marketing efforts. Some rivals have devised tactics to maximize customer choice because of the coronavirus pandemic (Zhong et.al, 2020). The competition is the outcome of electrical market changes that have resulted in the use of financial instruments, generating supply and demand mismatches between planned and real supply and demand.
Prices are used in an energy market to both coordinate the actions of producers and electricity consumers so that supply and demand are equal, and to guarantee that these decisions are viable given the system’s physical limits (Kaleka & Morgan, 2019). The rates are particularly effective for NextEra Energy Corporation, resulting in its uniqueness in providing clean, dependable, and inexpensive power to more than 11 million consumers across Florida. In this scenario, conceptual understanding is required, which means that the organization’s management can utilize this information to expand their total corporate responsibilities. NextEra Energy Inc. is one of the largest firms in the industries, based on yearly sales, and it is expected to compete successfully while increasing.
Market Segment Demand
The renewable electricity business has been expanding and increasing, which is attributable to the requirement to account for nearly 95% of global power capacity by 2026. (Park, & Heo, 2020). Renewable capacity is predicted to be 50% greater from 2021 to 2026 than it was from 2015 to 2020. Stronger government regulations and more ambitious renewable energy objectives established before and during the COP26 Climate Change Conference are driving this trend (Zhong et.al, 202o). The development into renewable energy is being driven by high commodity costs and rising energy prices, which are posing new problems for the renewable energy industry. The increased cost of fossil fuels, for example, makes renewables more competitive.
The most important driver in the growth of renewable energy has been lower costs. Since 2010, the cost of solar photovoltaic power has decreased by 85%, while the cost of both onshore and offshore wind generation has decreased by roughly half (Zhong et.al, 2020). Both renewable energy sources are currently cheaper than fossil fuel power. Because of positive feedback loops, costs have dropped considerably. Because of economies of scale and competitive supply chains, among other things, the more renewable energy technologies are implemented, the less expensive they become. As a result of the lower costs, more deployment occurs. For example, each time the quantity of solar capacity deployed globally has doubled in the last decade, the cost of deploying solar power has decreased by 34%. (Zhou & Solomon, 2020). Because renewable energy systems are modular and standardized, cost reductions or technological advancements made in one region may be rapidly replicated in other locations.
Other elements of the adoption of renewable energy are similarly self-reinforcing. As renewables gain in popularity, political clout, and financial backing, it becomes simpler to enlist further policy and financial support. The cost of funding has fallen as bankers have a better understanding of the technical and project risks associated with renewable energy. Furthermore, data shows that renewable energy adoption is socially contagious: when one home installs rooftop solar, the neighbors who see it and hear about it are more inclined to do so as well (Park & Heo, 2020).
Direct selling is a preferred promotional method for NextEra Corporation since it helps to save unnecessary expenditures (Wan et al., 2020). Direct selling will ensure that the company’s items are less expensive than competitors. A direct sale is a type of penetration pricing strategy that entails offering a product to new individuals while also cultivating loyalty among existing customers. The firm should eliminate intermediaries to decrease expenses and increase sales. Given the variety of energy sources available, the company can undertake a plan that involves collaborating with the government to pique the target market’s interest in renewable energy.
References
Aghahosseini, A., Bogdanov, D., & Breyer, C. (2020). Towards sustainable development in the MENA region: Analysing the feasibility of a 100% renewable electricity system in 2030. Energy Strategy Reviews, 28, 100466.
Bostanci, G., Jerath, K., & Yildirim, P. (2019). Comparative Advertising and Product Positioning. Under Review at Quantitative Marketing and Economics. Retrieved from
https://www.researchgate.net/profile/Pinar_Yildirim8/publication/337856434_Comparati ve_Advertising_and_Product_Positioning/links/5def1c3b92851c83647064d7/Comparativ e-Advertising-and-Product-Positioning
‘
Burger, S. P., Jenkins, J. D., Batlle, C., & Pérez-Arriaga, I. J. (2019). Restructuring revisited part 1: competition in electricity distribution systems. The Energy Journal, 40(3).
Kaleka, A., & Morgan, N. A. (2019). How marketing capabilities and current performance drive strategic intentions in international markets. Industrial Marketing Management, 78, 108- 121. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0019850117301207
Park, C., & Heo, W. (2020). Review of the changing electricity industry value chain in the ICT convergence era. Journal of Cleaner Production, 258, 120743.
Wan, X., Chen, J., & Chen, B. (2020). Exploring service positioning in platform-based markets. International Journal of Production Economics, 220, 107455. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0925527319302658
Zhong, H., Tan, Z., He, Y., Xie, L., & Kang, C. (2020). Implications of COVID-19 for the electricity industry: A comprehensive review. CSEE Journal of Power and Energy Systems, 6(3), 489-495.
Zhou, S., & Solomon, B. D. (2020). Do renewable portfolio standards in the United States stunt renewable electricity development beyond mandatory targets?. Energy Policy, 140, 111377.
Peer ‘s comments on 2.3 I posted
Mrudalini, you did a great job on the product development of wind energy presented to JGJ. Adopting some of NextEra’s business tactics and maybe even partnering with them, in the beginning, to help gain venture capital. A partnership can also help you with distribution because larger companies have more prominent distribution channels.
Although renewable energy production is labeled clean, it is not necessarily environmental neutral since wind turbines kill large numbers of airborne animals such as bats. Consequently, stakeholders involved in the planning and operation of wind turbines are often in conflict when reconciling renewable energy. Coming up with a way to produce the energy without killing airborne animals, such as installing an ultrasonic noise that would warn the animal to stay away or that will attract them to fly around the turbines, would be great for production and giving people a piece of mind.
Wind turbines are not very digital, so coming up with a more modern facility or wind turbine will be a great addition to the industry.
Roux, J., & Martin, G. (2010). Wind Turbines: Types, Economics and Development. Nova Science Publishers, Inc.
https://windexchange.energy.gov/markets
