ENCOCAM LIMITED

    Encocam (www.encocam.com) is a privately owned company, established in 1988 and managed by the company founder, Dr Mike Ashmead. It is now the parent company of 8 divisions with over 25 years experience, spanning across a large range of industries from energy absorption, safety testing solutions, composite panels, interior design and architecture, motorbike distribution and a range of manufacturing and engineering services. The company prides itself on being leaders in innovation and creativity as well as being forward thinkers in technology and manufacturing, believing strongly in continuous improvement. The company caters for many needs of their diverse customer base which includes automotive, aerospace, defence, food and chemical businesses. Their largest division by far is their automotive division. It operates on a global basis with some of the major key automotive players amongst their portfolio of customers. It specialises in testing equipment, R&D prototyping and manufacture of components. Encocam is based in Cambridgeshire where all products are manufactured and distributed from three sites, enabling strict control over quality and ensuring top customer service. However, the company’s management realised at a very early stage the necessity to have a global presence, therefore the company has offices in the United States, Japan, South Korea, and Malaysia. In order to fulfil large batch orders they also have a facility in China. In April 2016 the company opened an extensive new office and production facility in Huntingdon. The event was a celebration of the continued growth of the business. Encocam has obtained the quality certification IS0 9001:2008. Quality is of paramount importance for the business and key measurements are put in place across the company to monitor this enabling them to be competitive in price, quality and lead times. To support the high quality of products the company makes full use of the latest CADCAM software and CNC machinery and complex 3D techniques. By having all their services and facilities mostly at the same site, they have the flexibility to reduce costs and lead times. All products are manufactured in house whenever possible, allowing the company full control over quality and meeting customer needs. A close relationship between design and manufacturing ensures that Encocam’s products are of the highest standard. The company believes in nurturing and developing talent and supports all staff to achieve their individual goals and ongoing development to work towards achieving personal and company objectives. It works closely with universities conducting technical research, exploring current industry requirements, issues and problems. Their commitment to research and development enables the business to enhance product design and offer cutting edge solutions to its customers. Encocam is committed to maintaining high standards of environmental management systems with the purpose of preserving and improving the natural environment. They aim at using resources efficiently, whenever possible obtaining supplies from sustainable resources and minimising the use of packaging materials. In short, Encocam offers its clients a complete, single-source manufacturing service at competitive prices. However the business environment in which the company operates has changed considerably from the time when the company was founded. Manufacturing in United Kingdom is declining. It went down from 23% of the total economy in 1990 to 12% in 2010 (source: Government statistics). This pattern is seen in all advanced economies where there is an evident shift towards services. Manufacturing employment has fallen too, halving over the last 20 years, from 4.9m jobs in 1990 to 2.5m in 2011 (source: Government statistics). It is no longer a mass employment sector. The nature of jobs has also changed: they’ve become more skilled. Many large producers have relocated their production facilities to emerging markets where the costs (especially labour costs) are cheaper. The UK referendum and its decision to leave the European Union added to the uncertainty in the manufacturing sector and put on hold a number of research and investment projects. Despite these trends manufacturing remains important for the country’s economy. It is driving productivity growth, innovation and international trade. And manufacturing activity creates demand and supports employment in other parts of the economy through demand for raw materials, energy, and services like research, design, branding, and recruitment. In the UK there has been a clear move towards high value manufacturing – automotive, aerospace, and pharmaceuticals. Two thirds of the UK manufacturing exports are now in such medium or high tech sectors – chemicals, pharmaceuticals, transport equipment (including auto and aerospace), electrical and optical equipment. For example, the UK aerospace industry is the biggest in Europe and the 2nd biggest in the world, while the UK has some of Europe's most productive car plants. Pharmaceuticals is also a sector where the UK has a strong comparative advantage with a positive trade balance of nearly £70bn (source: Government statistics). With the increased productivity and competitiveness, the UK now has some of the world’s leading manufacturing companies (e.g. BAe, Glaxo Smith Kline, Jaguar LandRover, Rolls Royce) as well as many less well known but equally innovative companies like Encocam. Encocam predominantly operates in a business-to-business (B2B) setting, which incorporates effective targeting of customers and developing long-term relationships with them through providing high quality services and tailor-made solutions at competitive prices. However Encocam’s newest division - motorbike distribution - operates in the business-to-consumer (B2C) sector and the company’s marketing staff does not have much experience in marketing to consumers. There is a split in opinions between marketing executives in the company. A few of them assert that selling their products and services to other companies is fundamentally different from selling to individuals. Others disagree, claiming that marketing theory is still valid and only involves some adaptation in the marketing tactics.     As an independent consultant hired by Encocam, you are required to produce a 2,475 word report in A. Which you will discuss the key differences between B2B and B2C marketing. B. Based on your analysis please suggest a marketing strategy for Encocam which will be consistent with the consumer behaviour associated with each sector. Justify your argument. (Critical analysis not descriptive)