Management Essay Example: New Products and CRM Software

Published: 2022-04-19 16:41:14
Management Essay Example: New Products and CRM Software
Type of paper:  Research paper
Categories: Management CRM Supply chain management
Pages: 7
Wordcount: 1868 words
16 min read
143 views

A1. New Products and/or Services

The retail industry is comprised of people and organizations that engage in the sales of finished goods to the end consumers. The retail chains in the United States, for instance, are both traded publicly on the stock exchange whereas some are owned privately. In the U.S. alone, about two-thirds of the GDP is generated from the retail consumption. This means that store closing and opening are used to show how the economy is performing overall. Measured independently by revenues collected, the U.S is the leader in the retail sector with Walmart as the most extensive retailer and also the largest organization based on their workforce and market dominance (Hortacsu & Syverson, 2015). Nevertheless, there exist some challenges that affect the operation at Walmart and the retail sector as a whole that needs to be sorted to achieve maximum profitability (West, Ford, & Ibrahim, 2015). The conversation that aims at ensuring quality service provision revolves around a single topic-what is currently perceived as a crucial element for stores and referred to "customer experience." The retail stores have been challenged to offer other things that can motivate the consumers to purchase. Technology firms are continuously doing their research to address the issue of customer experience and ensure that more retail firms are integrating the physical world and purchase process with the digital world. For this reason, the new services aimed at improving customer service includes;

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Drug and supplement delivery through online selling platforms

Sales of different health products such as healthy drinks

A1a. Methods

Determining the need for the health products and supplements in the retail sector requires information gathering from the end-consumers. There exist different approaches towards establishing the demand and the existing market for the services which includes both qualitative and quantitative methods. Nevertheless, observations, Information on the internet, and qualitative research can be effective in realizing the need for these services and their implementation.

Observations: Through observation, there was a tendency for increased awareness towards being involved with health products and engaging in health activities. For this reason, a significant number of consumers are in need for health drinks and products together with a variety of supplements. Similarly, some customers look for healthy products in retail shops. For this reason, there was a need to introduce the health products and supplements at the retail stores which, are located across the country.

On the aspect of delivery, many customers have found it more convenient. In many occasions, consumers prefer ordering drugs online in retailers than visiting the pharmaceutical stores to buy. At the same time, this concept allowed consumers to shop almost every product under a single roof.

Information on the internet: A research on the internet indicates that there are many readily available supplements. At the same time, many orders are done online through retail outlets and personal resale (Smith, Kawa, Eckl, Morton & Stredney, 2017). Most of the supplements and drugs sold are legal, and for that reason, it could be more convenient for Walmart to incorporate these services to maintain their market share.

Qualitative Research: According to Balluz, Kieszak, Philen & Mulinare (2000), there has been an increasing need for supplements and vitamins. At the same time, based on the trend the increase is expected to increase in the coming years, and this will be beneficial to Walmart with their new product and service. This is supposed to tap the varied range of supplements that the customers require.

A1b. Competitive Advantage

The company has over the years operated on "daily low price" philosophy and can maintain their prices through careful expense control. The management endeavors to provide marvelous consumer service which is unique to the supply chain. The company aims at delivering supplements, drugs and at the same time offering online ordering and delivery services to the consumers. In case this is implemented, the company will be able to attract a more significant portion of the online buyers who do not have much time to visit pharmacies to buy drugs and supplements. At the same time, it will ease shopping since most of the products needed will be available under a single roof. The online market is a growing and big market that can be tapped. It will offer a global market to the company while at the same time increasing the market share hence, high-profit revenues.

In regards to the different types of health supplements and health-related products that will be unveiled, Walmart will be able to access the increasing health cognizant people. This need for healthy products has significantly gained dominance due to the availability of information on the internet. Many people aspire to become healthier every day. Based on research findings, the clients who are health conscious are willing to pay more for the health products with the aim of maintaining healthy living. This means that this market can be tapped and monitored to achieve good sales revenues.

A1c. Inherent Risks

The first risk involves drug abuse since qualified physician won't prescribe many drugs. In case the online ordering is implemented by Walmart, many customers will be involved in drug abuse and self-prescription which is an inherent risk. To mitigate the risk, there is a need to limit online ordering of some supplements and drugs. This will help monitor the use of drugs that can have diverse effects on the consumers.

Another risk is associated with the net loss of profit revenues. In the event of venturing into a small market, it will be difficult to acquire substantial profits from the supplements. This is because there exists a wide range of supplements in these markets which, are also readily available. To manage this, there is a need to assess the demand for the supplements in the smaller markets to provide or distribute supplements that are scarce in the market. A proper analysis of the demand and supply will help reduce this type of risk.

A2. Customer Relationship Management Software

Customer Relationship Management (CRM) facilitates the process analyzing customer needs and at the same time keeping track of the customer information. The system also offers a platform for storing, assessing, and managing every customer interaction. Different types of CRM tools and applications often compete for the available market share which is designed to help generate sales revenue and at the same time create a sustainable relationship with the client base (Khodakarami & Chan, 2014). Through data collected, other departments within the organization can gain more insight into the dynamic needs of the consumers and perform their jobs more effectively. The different departments are also able to analyze consumer data and ultimately assess the business performance and determine the strengths and weaknesses.

A retail venture not only needs to have constant contact with the end-consumers but also need to offer a unique lead generation and follow-up that is unique to other ventures. The CRM system for retail business needs to provide lead generation tools such as email marketing campaign management and analytics reporting to enable the stakeholders to reach a lucrative demographics. An effective CRM tool will allow Walmart to set up specific work procedure in line with the new products and services to integrate and negotiate with customers and the suppliers for quality service provision (Kaleka & Morgan, 2017). For this case, campaign management CRM software system is the most effective system for the retailer. The combination of the analytical and operating system as the software will be able to analyze and keep track of the various campaigns. At the same time, it will be effective in tracking emails and calls.

A2a. CRM Information

The information collected by the CRM software is used to help enhance the consumer service and relationship. Through the CRM, Walmart will be able to generate high-profit revenues as compared to the competing retail firms that do not use such strategy. On the global market, the system will communicate specific and necessary information about the type of customers and the availability of supplements and other health products. Additionally, the CRM can be integrated with the social media platform to boost business since a significant proportion number of buyers have access to social media (Khodakarami & Chan, 2014). The retailer can utilize the CRM software to track the history of the existing customers and identify loyal consumers to give rewards for their loyalty easily. This idea will not only attract more customer base, but it will also keep the existing to patronize the business for long. This will also resolve issues within a short time and treat clients fairly. This information will also be effective in understanding the dynamic needs of the consumers and communicating with them on the available products at Walmart.

A better understanding and the implementation of CRM can have a significant impact towards the perception of the consumers about an organization. Consumers often show trust in companies that handle customer service issues in a fair manner (Torggler, 2009). When their problems are handled fairly, there is usually a propensity to do business with the company again or even refer a friend or family member.

A3. Distribution Channel

Health products and supplements represent a pleasant profit for the retail stores, and not just the pharmaceutical outlets and the department stores. Numerous health stores are dealing with supplements and health products, an indication that this is a large market; a reason why retailers have shown interest in selling health products and supplements. Other than just buying the products, numerous brands have been created. The distribution line will be from the drug stores to the retailer (Walmart) and finally to the consumers. Consumers will make orders online or visit the stores.

A3a. Key Considerations

Legal and regulation obstructions: venturing into a new business environment is achievable in case the business is flexible with the set laws and regulation. The management needs to review the treaties, dispute resolution mechanism, tax laws on products and service and trademark requirements. These should also involve the investment procedures in the new business environment and liability provisions. There exist some drugs that might be illegal, and hence delivery can be complicated in other countries. This calls for consultation with the legal team for advice on regulations of other nations in line with some drugs or supplements. This means that the set custom regulations must be understood to ensure efficiency in operation.

Culture: Cultural variations can influence the success or failure of the business. In case a product or service does not add value or meets the specific needs of the consumer, there is no need to venture into the new market. For this reason, it is fundamental to understand the demographics of the new market and what add value to their culture considering language differences, the ability to manage time zones effectively, and the possible limitations in doing business what to do in case the new service fails to translate to the local market. The prevailing cultural barriers need to be penetrated to facilitate smooth business transactions. The language barrier, for instance, needs to be penetrated to facilitate smooth business operations at the same time, the different approaches used to professional communication need to be addressed to ensure smooth business operations.

Process and Delivery System: Since this is a...

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