Internal Marketing Strategy essay
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The aim of our internal marketing strategy is to emphasize on ADGAS business process and improve the quality of products. This will include business process among departments and protecting the environment through the proposed strategy. The identified internal market segments in ADGAS are DAS Island. Besides, it will be addressed to the employees that their work will require regular visits to the plant. The plan proposes internal marketing strategy, which is traditionally called “Change Management”. As mentioned earlier, we have identified our market segments (DAS Island) and internal customers (employees) on which change will be effected on. The similarities in different groups of internal customers allow us to segment them in the following groups:
No. Group Behavior
1 Supporter Support the strategy
2 Neutral Neither support nor oppose the strategy
3 Opposer Reject or against the strategy
Internal marketing communication is an essential approach to identify all 3 segments of ADGAS employees and targeting them effectively in order to achieve the strategic objectives. The below approaches will be followed towards the mentioned groups.
1. Supporters: Explain the benefits (Reduce cost & protect the environment).
2. Neutral: Explain the advantages of this strategy.
3. Opposer: Explain the benefits of this strategy for them (Save time & prompt actions).
The Blue Ocean Strategy emphasizes on strategy formulation as well as execution. The below three key elements of BOS include value innovation, tipping point leadership, and fair process.
Value Innovation: we will develop a SAP transaction that is diverse from any other transactions provided and in%u2010line with ADGAS cost effectiveness strategy and environmental strategy. The concept of the proposed strategy would create a high service value. Besides, it has not yet been applied in any sister companies (ADNOC Group) particularly clothing recycling.
Tipping Point Leadership: We will emphasize on transforming the extremes which include the people, acts, and activities that lead to disproportionate influence on performance such as cognitive, resource, motivational and political. By transforming the extremes, ADGAS tipping point leaders will be able to change the core fast at a lower cost for the proposed strategy.
Fair process: This is a method to create employees buy in up front. In other words, we will exercise fair process that aims to gain employees’ trust and encourage them to cooperate in executing the resulting strategic decisions. For that reason, the following three “E” principles will be considered a crucial aspect in implementing this strategy.
The three “E” Principles of Fair Process
1.Engagement: By involving ADGAS employees in the proposed strategy and discussing their input shows that ADGAS management is ready to manage by objectives in implementing the strategic decisions.
2.Explanation: Communicate and explain toADGAS employees who are involved in the strategy. The Explanation about the decisions will make the employees feel confident and show that ADGAS management considered their opinions. It will also make them feel that their decisions are for the best interest of ADGAS and the employees as well. Moreover, they will trust the managers’ intentions even if their ideas are rejected.
3.Expectation: After setting the new strategy, ADGAS management will state the game rules. Despite the expectations would be challenging, ADGAS employees should be fully aware of the rules and the costs or penalties for failure.
Applying the ERRC Grid will allow us to come up with the following advantages:
• Elimination: It will help in eliminating the need for papers and manual procedure. The new SAP transaction will allow ADGAS employees to request any item systematically and that would save ADGAS time and effort, facilitate employee’s requirements, and protect our environment.
• Reduce: It will help in the reduction of barriers and obstacles encountered by the employees when requesting any item. Besides, we will coordinate and facilitate all the requirements for SAP consultant’s concerning the proposed strategy.
• Raise: By using the new SAP transaction for item request, we will raise the standard of ADGAS business procedure and Employee Relationship Management ERM. In other words, we will enhance our SAP system to be unique compared to other sister companies within the ADNOC group, quality improvement, and meet employees expectations.
• Create: The development of ADGAS SAP system by adding new SAP transaction will create an effective business process and develop Go-Green culture. The benefits that have been mentioned will support ADGAS strategy as well as enhance ADGAS image within ADNOC group and oil & gas industry.
A VRIO analysis for internal competences was conducted in order to determine whether ADGAS has competencies that are considered as core to develop strategic advantage. We think that our core competency depends on the ability to adopt systematic process, Go%u2010Green strategy and to develop strong relationship with SAP consultant (supplier) and internal customers. The following 4 core competencies describe whether it is Valuable, Rare, Inimitable, and Organized.
• Valuable: Implementing SAP system requires a big budget. However, ADGAS already implemented SAP system since 2002 and have enough experience of using the mentioned system. For that reason, adding additional SAP transaction would not be costly since we already have the system.
• Rare: One of the ADGAS missions is to run the business in line with Go-Green strategy. SAP system is one of our approaches to save trees/reduce the use of papers. Inn addition to this, it is very rare to find companies in the UAE that implemented SAP system due to SAP cost ($ Millions).
• Inimitable: As it has been mentioned earlier, SAP system is very costly and, therefore, it is not easy to be copied by other companies. Besides, none of ADNOC group currently implements the proposed strategy that adds benefits to the employees and environment. However, we expect that other companies may implement Go%u2010Green solutions similar to the proposed strategy in short to medium term.
• Organized: We are well-organized to implement the new SAP transaction. We are already using SAP system, we have SAP team that will collaborate with SAP consultants, and we have SAP trainers to train ADGAS employees about the new SAP transaction. The following VRIO framework identifies the above-mentioned core competencies of ADGAS.