Columbus s.a.r.l. (c1994)

Abstract

The research at hand describes and assesses the marketing topics and functions that concern the marketing performance of Columbus s.a.r.l., the exclusive agent of Johnson and Johnson; Gillette, Uniliver, and Bristol Myers Squibb products in Lebanon. Columbus along with twelve other decentralized companies form Fattal Holding s . .a.l. which is specialized in the distribution and marketing of nationally and. internationally branded products. Columbus' marketing environment is shaped by many factors and actors. The demographic environment, for instance, has witnessed drastic changes such as the trend towards urbanization causing a reshuffling of the target market members. The economic environment has been affected by megatrends in the past decade (1984- 1994) leading Columbus to adjust its pricing policies to the galloping inflation (1984- 1992). Consequently, the dollarization policy for its products was introduced. This situation has also led to advantages such as the sharp decline in wage rates. With respect to the political situation, it has affected Columbus due to the military disorder and fragmentation of the national territories in the war era. Columbus took certain measures some of which are still applicable such as decentralization in distribution. With respect to the controllable factors in Columbus' marketing environment, they mainly are the suppliers, marketing intermediaries, customers, and competitors. The suppliers are multinational firms who manufacture highly reputed products and are accredited for their global distribution and excessive worldwide promotions and advertisements. They provide Columbus with advertising and promotion budgets and suggested marketing plans for the individual products. With respect to the marketing intermediaries, they include five subagents which distribute Columbus'_products in the different Lebanese regions (excluding East Beirut) , retailers, four advertising agencies for Gillette, Bristol Myers Squibb, Uniliver, and Johnson and Johnson units, and insurance and financial services companies. In addition, Columbus customers include the consumer, institutional, and reseller markets- each with distinctive characteristics. Finally, Columbus' competitors are several; some of its products have strong rival brands while others such as J&J baby care products have few ones. However, the core marketing activities and functions are the ones which determine Columbus health situation . Columbus pursues four major objectives : increase profitability, keeping up the good reputation, creating innovation, and most important market share improvement . The marketing objectives stem from the latter objective and primarily include increasing sales of existing lines, adding new products, and expanding the number of retail outlets. The marketing strategies come in conformity with the stated objectives. Columbus possesses competitive differentiation for its marketing offers; its employed tools in this respect are product, image, and personnel differentiation. The marketing strategies focus on expanding Columbus' market share .With the major aid from its suppliers, Columbus is performing a satisfactory job in implementing and monitoring the annual marketing plans . The market share figures which are high for most of Columbus' products prove that. The marketing mix elements are well managed and integrated with the suppliers' marketing goals . That is, the breadth, length, and depth of Columbus' product mix are well suited to both parties, Columbus and the supplying corporations. Regarding distribution, full market coverage is employed either by Columbus or its five subagents. With respect to pricing, it is not a matter always within Columbus' control. These is some kind of regional pricing excerted by the suppliers for the sake of preventing smuggling of goods from one regional country to another. Promotion, in the case of Columbus, is a field in which it has an advantage for several reasons among which are the professional promotion management of its suppliers and the huge budgets for the promotional activities which primarily come from the suppliers abroad. In summary, Columbus fulfilled its objectives in 1993. Sales growth was achieved and profits were increased to the extent that it was number one in Fattal Holding s.a.!. in 1993 based on productivity, profitability, and return on investment. Return on investment (measured in terms of 1993 net profits as a percentage of Columbus' capital) increased through increasing sales and market shares and cutting back costs via centralizing the overhead expenses and reducing the variable costs. In the end, it would hardly be appropriate to describe Columbus as an organization that has fully implemented the marketing concept. In the researcher's OpInIOn, Columbus is thought to lie somewhere between the selling and the marketing concept . Reaching a status closer to the latter should be aspired for blunders like high profit margins and no-sales commission policy contribute to drawing it closer and closer to the selling concept rather than to the other, more developed. one.