MBR Technology:
A Serious Option?
A Strategic Marketing Plan for the Paques Submerged Membrane Module
Author : Jakob Hendrik Kuiper University : Rijksuniversiteit Groningen Faculty : Management & Organisation
First Supervisor : Drs. R. Bos Second Supervisor : Drs. M. E. Boon
Company : Paques BV.
Supervisor at Paques : H. Brons
Place : Groningen
Date : August 2004
Preface
After a four-year course in Management & Organisation with a major in marketing it was time for me to do a traineeship relative to writing a thesis. After some wandering about, I found an interesting research possibility at Paques in Balk. They enabled me to research the possibilities of their newly developed membrane module, which looked promising. Paques is a company in which I immediately felt at home. The culture directly relates to the province it is located, Friesland. No fussing and speaking your mind, makes the atmosphere at Paques very productive. Paques’ friendly and very cooperative co-workers also made my stay very pleasant.
I did my research at Paques between the beginning of October 2003 and the end of March 2004. During this time I not only learned a lot about membranes and how they should be marketed but, I also learned about the practical implications of doing research. Planning is everything! First of all, gathering secondary information can be very difficult if there is an enormous bulk of information. Carefully digging through the information and categorising it is the key. Secondly, it is very difficult to make a proper schedule for primary data- collection. People are busy and have precious little time to answer your questions. This needs to be planned very carefully, because scientific research is always seen as relatively unimportant in relation to day-to-day business.
I feel that my traineeship at Paques has been very instructive and inspiring for the rest of my career. Furthermore, it was an interesting challenge to match theory with practice. In this challenge a couple of people were very important, whom I would like to thank here.
First of all, I would like to thank Harro Brons. Harro was my supervisor for writing this thesis and guided me in the right direction at times this was necessary. We debated a lot about what was needed for this research and how we should gather the information. We also had lively discussions about how practice relates to theory, which was very interesting.
Harro, thank you for your support!
Secondly, I would like to thank my tutor at the Rijksuniversiteit Groningen, drs. Bos. He helped me find the right theoretical framework for carrying out my research. Critical questions kept me on track and helped me to stay focused. I would also like to thank my parents. They made it possible for me to be educated at the Rijksuniversiteit Groningen and stimulated me to do the best I could. They also let me stay at their house, which considerably reduced my travelling time during my traineeship. I would like to thank my aunt Joanna as well for helping me with my English grammar, which makes my thesis reach a broader audience.
Finally, I would like to thank my biggest motivator and supporter. She helped me lift my spirits when I was feeling down and was very tolerant of me when I was grumpy when things did not go the way I wanted them to. Lotte, I love you and thank you for your patience.
Executive Summary
Paques is a company (that is) involved in purifying water, gases and air biologically. A couple of years ago they became interested in the development of the Membrane Bio Reactor (MBR) and started developing their own submerged membrane module that can be used in this reactor. MBR is a combination of aerobic wastewater treatment and membrane filtration, in which the membrane ensures the absolute separation of water, activated sludge and other particles.
The Paques MBR module is still under development and Paques wants to know where and how they should market their new product when it is ready. This resulted in the following objective and main question for this research:
Objective:
- Investigate the possibilities for the Paques membrane module in the direct sales areas and related sectors, and advise on how the new product should be marketed.
Main question:
- What should for the direct sales areas and the related sectors the Paques MBR marketing strategy be and how should this strategy be implemented?
The limitation to only look at the direct sales area (Netherlands, Belgium and Germany) is necessitated by creating references under the Paques brand name. The limitation to only research the related sectors (Pulp & Paper, Food & Beverage, Chemical and Municipal) is because of the fact that these are more easily accessible for Paques than other sectors.
The legislation for the immediate future in the direct sales area is in favour of using MBR in the recycling of wastewater. A lot of subsidies, especially in Germany, are granted for this type of projects which makes it very attractive. ‘Maximaal Toelaatbaar Risico’ (MTR) discharge legislation will make MBR attractive in the Netherlands and an active wastewater policy in Belgium will give opportunities. Furthermore, a shift towards tertiary treatment (including MBR) is noticeable.
So far the market for MBR technology in the direct sales area increases with approximately 8% to 12% a year. This growth is now stabilising and is expected to decline in the near future. Furthermore, based on Porter’s five forces the market can be identified as profitable.
The most important forces are the substitute products and direct competitors. Substitute products become cheaper as the projects become larger (more wastewater that needs to be treated). The competition amongst existing firms to get access to relatively large projects is getting fierce. The estimation is that these larger projects will disappear, because subsidies will no longer be granted. This means only small specialized projects will be left.
The direct competition consists of three major players, namely: Zenon, Kubota and Mitsubishi. Zenon has created a lot of references in the MBR market in a short period of time. They produce hollow-fiber submerged membranes for all kinds of applications.
Furthermore, they are pro-actively oriented, which means they are actively marketing their product. They are also very price oriented. Zenon cannot supply their membrane surface cheapest, but are very price competitive with regard to the whole package. Their philosophy is to make submerged membrane modules a commodity (product). It is expected that Zenon’s reaction to the introduction of the Paques module will be the most
aggressive. Zenon’s main disadvantage is that they are totally dependent on submerged membrane modules. This (will) leave(s) them vulnerable to other (new) technologies.
Kubota, who produces flat-plate modules, also has a lot of references, especially in the municipal sector. In this sector large installations are built, because a lot of water needs to be treated. Kubota is a large company, much larger than Paques, which means they have more investment possibilities relating to MBR projects, which, in turn, implies they have the possibility to invest in further technological development. Kubota’s main disadvantage is that they are not actively marketing the MBR themselves. They only sell through system suppliers (licensees). This makes them vulnerable to high sales margins and will also lead to a re-active marketing approach (in Europe).
Mitsubishi is very experienced in industrial MBR installations. Furthermore, they have the lowest membrane square meter price, which makes them cost-leader. Mitsubishi is also a large company, which means they can distribute the financial risks. Their strategic geographic direction seems not to lie in North America or Europe, but in Asia. This means Mitsubishi, like Kubota, is not very active in selling the membrane modules themselves.
On average, highly concentrated wastewaters are very attractive for the use of submerged membranes. The reason (for this) is that because the membrane is an absolute barrier, no waste can wash out of the reactor and the retention time increases, resulting in a better wastewater treatment.
On the whole, the Pulp & Paper sector is not attractive, because of the scaling problem.
Scaling clogs the membrane pores, a problem which cannot be solved. A small potential niche market which does not have a problem with scaling is the lightweight (or none) coated segment.
The submerged membrane application for wastewater treatment in the Food & Beverage industry is an emerging technique. The biggest problem in the Netherlands is still the legislation of the reuse of water in this sector, which seems to be changing for the better.
However, the cost-driven industries are very progressive in their search to save money. An MBR reuse option, which saves money, is seen as very attractive.
Some attractive niches for the Chemical industry could lie in the pharmaceutical and textile industry, based on the high BOD level in these markets. However, it must be said that these industries are conservative and some of the advantages such as small footprint will not be in play frequently.
The government is promoting (by subsidising) the use of the new MBR technology, especially in the Municipal sector. The expectation is that when these subsidies disappear only small scale applications will survive.
Paques’ biggest strengths are their substantial basic knowledge of applications and their availability of a total chain of wastewater solutions. The knowledge of applications results in the possibility to find a sustainable solution for every wastewater problem there is in the market, thus winning possible customers’ trust. The ability to offer a total chain of solutions also wins the customers’ trust, because it shows Paques’ capability. Besides these two strengths, the Paques’ membrane module is more robust than those of the competitors,
resulting in a longer life. Eventually, this will lead to a stable processing of a MBR installation.
Paques’ main weakness is that they have no references in the MBR market with their own module. No references mean that it will be difficult to convince possible customers of the effectiveness of the module. Moreover, the module is expensive in relation to the competitor’s module. A final weakness is that Paques is not experienced in introducing an already existing technology. Because of the low uniqueness of the module there is no opportunity for Paques to distinguish themselves by selling unique hardware.
By comparing the extremely important Strengths, Weaknesses, Opportunities and Threats the following marketing strategy for the Paques MBR was created:
A pro-active (creating demand) differentiation focus strategy primarily on small applications in the Food & Beverage, where scaling problems are not an issue. Selling points should be based on the recycling option, the small footprint and the security Paques offers (knowledge of applications). This knowledge is the competitive advantage Paques offers. New development should be related to cost reduction and flux improvements through decreasing fouling sensitivity.
The implementation of this marketing strategy is done in two phases, namely: Testing and Creating References and Commercial Introduction. We have opted for this two-step introduction, because the development of the module has not been finished yet.
Further testing of the module and improving the standardisation and cleaning procedure will create the possibility to produce a competitive module. Also, a possible flux improvement will generate more possibilities for the Paques module. Creating references by installing pilot plants will generate trust. The name that can be used at the commercial introduction is the Paques SMM, which was chosen because it fits with the Paques product range.
Furthermore, we have to look into a possible choice for licensees, which will broaden the horizon (outside of the direct sales area) after the first testing and creating reference phase.
The target sales price that can be used by these licensees is estimated at 14,000.-
The commercial introduction needs to be done mainly through trade fairs, conventions, congresses, etc., because of the wastewater specialization. The message should be along the line of: ‘Paques’ combined knowledge of biotechnology, membrane separation and industrial applications provide sustainable and cost-effective solutions for wastewater reuse’.
To make these two phases a success a ‘core team’ of MBR specialist’s needs to be formed to guide the information stream and expedite the development. Furthermore, some additional employees need to be recruited, to be able to run at full production capacity.
Contents
Preface... ii
Executive summary... iii
1.: Introduction... 1
1.1.: Product Range... 2
1.2.: MBR... 2
2.: Problem Statement... 4
2.1.: Marketing Strategy... 5
2.1.1.: Market Segmentation... 6
2.1.2.: Competitive Positioning... 6
2.2.: Implementation... 6
2.3.: Framework... 7
2.3.1.: Changes to the Framework... 8
2.3.1.1.: SWOT Analysis... 8
2.3.1.2.: Implementation... 9
2.4.: Sub-questions... 9
2.5.: Conceptualization... 10
2.5.1. Explanation of Conceptual Model... 12
2.6: Methodology... 13
2.6.1.: First Step of Data Collection... 13
2.6.2.: Second Step of Data Collection... 13
2.7.: Limitations... 14
3.: Macro Analysis... 17
3.1.: Governmental...17
3.1.1.: European Union... 18
3.1.2.: The Netherlands... 21
3.1.2.1.: MTR... 21
3.1.2.2.: Discharge & Drinking Water Costs... 22
3.1.3.: Belgium... 22
3.1.4.: Germany...23
3.1.5.: In General... 24
3.2.: Technological...24
3.3.: Economics, Culture and Demographics...25
3.4.: Conclusion... 26
4.: Market Analysis... 27
4.1.: Worldwide Differences... 27
4.2.: European Market Potential... 29
4.3.: Profitability of the MBR Market... 30
4.3.1.: Bargaining Power of Suppliers... 31
4.3.2.: Bargaining Power of Customers... 31
4.3.3.: Threat of Substitute Products... 31
4.3.3.1.: Cross-flow Inside-out Membrane Bioreactor... 31
4.3.3.2.: Sand Filtration and Dead-end UF... 31
4.3.4.: Threat of Potential Entrants... 32
4.3.5.: Competition Among Existing Firms... 32
4.3.6.: Profitability... 32
4.4.: Trends and Developments... 33
4.5.: Conclusion... 33
5. Competitor Analysis... 34
5.1.: Zenon... 35
5.1.1.: Performance: Created References... 35
5.1.2.: Cost Structure... 37
5.1.3.: Strategy... 37
5.1.4.: System Suppliers... 37
5.2.: Kubota... 37
5.2.1.: Performance: Created References... 38
5.2.2.: Strategy... 39
5.2.3.: System Suppliers... 39
5.3.: Mitsubishi... 39
5.3.1.: Performance: Created References... 39
5.3.2.: Strategy... 40
5.3.3.: System Suppliers... 40
5.4.: Module Comparison... 41
5.4.1.: Module Sales Prices... 41
5.4.2.: Module Size... 42
5.4.3.: Technical Characteristics... 43
5.4.3.1.: Flux... 43
5.4.3.2.: Energy Use... 43
5.4.3.3.: Cleaning Intensity... 44
5.4.3.4.: Robustness of the Membrane... 44
5.5.: Strengths and Weaknesses... 45
5.5.1.: Zenon... 45
5.5.2.: Kubota... 45
5.5.3.: Mitsubishi... 45
5.6.: Conclusion... 46
6.: Customer Analysis... 47
6.1.: Pulp & Paper... 49
6.1.1.: Sector Description...49
6.1.2.: MBR Applications... 50
6.1.3.: Scaling... 50
6.1.4.: Legislation... 50
6.1.4.1.: IPPC (Pulp & Paper)... 51
6.1.5.: Segmentation... 51
6.2.: Food & Beverage... 52
6.2.1.: Sector Description...52
6.2.2.: MBR Applications... 52
6.2.3.: IPPC (Food & Beverage)... 53
6.2.4.: Segmentation... 53
6.3.: Chemical Industry... 54
6.3.1.: Sector Description...54
6.3.2.: MBR Applications... 55
6.3.3.: IPPC (Chemical)... 55
6.3.4.: Segmentation... 55
6.4.: Municipal... 55
6.4.1.: Sector Description...56
6.4.2.: MBR Applications... 56
6.4.3.: Segmentation... 57
6.5.: Emerging Markets...58
6.5.1.: Tank Cleaning... 58
6.5.2.: Percolated Water... 58
6.5.3.: Desalination and Surface Water Pre-treatment... 58
6.6. Conclusion... 58
6.6.1.: Pulp & Paper... 58
6.6.2.: Food & Beverage... 59
6.6.3.: Chemical... 59
6.6.4.: Municipal... 60
7.: Internal Analysis... 61
7.1.: Organisational Performance... 61
7.1.1.: Paques’ Strengths... 63
7.1.1.1.: Human Resources... 63
7.1.1.2.: Company Image... 63
7.1.1.3.: Business Image... 63
7.1.1.4.: Number of Sales Offices and Location... 63
7.1.1.5.: Brand Loyalty... 63
7.1.2.: Paques’ Weaknesses... 63
7.1.2.1.: Communication Systems (Internal/External)... 63
7.1.2.2.: Market Vision... 64
7.1.2.3.: Key Contracts... 64
7.1.2.4.: Price competitiveness... 64
7.2.: Membrane Module Performance... 64
7.2.1.: Strengths of Paques MBR Module... 65
7.2.1.1.: Low Operational Costs... 65
7.2.1.2.: Robustness of the Membrane Envelopes... 65
7.2.1.3.: Back-pulse Possibility... 65
7.2.1.4.: Interchangeability of Membrane Material... 65
7.2.2.: Weaknesses of Paques MBR Module... 65
7.2.2.1.: Relative High Cost Price...65
7.2.2.2.: Imitation of an Existing Technology... 66
7.2.2.3.: Low Fluxes... 66
7.3.: Cost (Price) Evaluation... 66
7.4.: Price Comparison... 67
7.4.1.: Results... 68
7.4.1.1.: Advantages...68
7.4.1.2.: Disadvantages... 69
7.5.: Determinants of Strategic Options... 69
7.5.1.: Mission and Corporate Strategy... 69
7.5.2.: Organizational Capabilities and Constraints...70
7.6.: Conclusion... 71
8.: SWOT Analysis... 72
8.1.: Assessment of the Opportunities and Threats...72
8.2.: Assessment of the Strengths and Weaknesses... 73
8.3.: Weighing and Evaluation of Factors... 75
8.4.: Comparison of the Important Factors... 76
8.4.1.: Strategic Options...77
8.4.1.1.: Growth, SO Comparison... 77
8.4.1.2.: Improvement, WO Comparison... 78
8.4.1.3.: Defend, ST Comparison... 78
8.4.1.4.: Problems, WT Comparison...79
8.5.: Conclusion... 79
9. Strategic Alternatives... 80
9.1.: Generic Strategies... 81
9.1.1.: Cost Leadership... 81
9.1.2.: Differentiation... 81
9.1.3.: Focus... 82
9.1.3.1: Differentiation Focus... 82
9.2.: Evaluation of Alternatives... 82
9.2.1.: Consistency... 82
9.2.2.: Consonance... 83
9.2.3.: Advantage... 84
9.2.4.: Feasibility... 85
9.3.: Marketing Strategy... 86
9.3.1.: Target Markets... 86
9.3.2.: Competitive Advantage... 86
9.3.3.: Key Customer and Competitor Reactions... 87
9.4.: Conclusion... 87
10. Implementation... 89
10.1.: Organisation and Control... 89
10.1.1.: Phase 1, Testing and Creating References... 89
10.1.2.: Phase 2, Commercial Introduction...89
10.2.: Marketing Mix... 90
10.2.1.: Product... 90
10.2.1.1.: Minimum Package... 90
10.2.1.2.: Standardisation... 90
10.2.1.3.: Short-Term Product Development... 91
10.2.1.4.: Brand Name... 91
10.2.2.: Place... 91
10.2.2.1.: Licensees... 91
10.2.2.2.: Transportation... 92
10.2.3.: Price... 92
10.2.3.1.: Current Sales Price...92
10.2.3.2.: Perfect Competing Price... 93
10.2.3.3.: Target Sales Price... 93
10.2.4.: Promotion... 94
10.2.4.1.: Sales Features... 94
10.2.4.2.: Message... 94
10.2.4.3.: Media... 94
10.2.4.4.: Promotional Budgeting... 94
10.2.5.: People...95
10.2.5.1.: Personnel Allocation... 95
10.2.5.2.: Bottlenecks in Employment... 95
Glossary... 96
Bibliography... 103
1.: Introduction
Paques B.V. has been involved in purifying water, gases and air biologically since the 80s.
Through biological treatment, Paques makes use of and stimulates natural cleaning processes conducted by bacteria.
Their main aim is to create solutions for industrial problems and/or create added value by making it economically attractive to treat these problems. Their main breakthrough came in the late 80s with the anaerobic IC (internal circulation) reactor. This treatment system, in combination with the technological knowledge of applications, has made them the world leader in anaerobic water treatment systems.
The company grew over a short period of time into a workforce of approximately two hundred people and with a turnover of 30 million euros they are a medium-sized company.
Their main facilities are seated at Balk (The Netherlands) and Shanghai (China).
Paques’ main strength lies in their technical knowledge. They always find a solution for the customer’s problems. The reason lies not only in the excellent product capabilities, but also in operating the biological process at a high standard.
This high standard of quality products and application know-how is upheld by intensive research. Paques is considered to be one of the top ten innovating companies in the Netherlands. Recently, this technical know-how was awarded by the Royal Netherlands Academy of Arts and Sciences with the Dow energy prize 2003. This, among many other awards, was awarded because Paques creates a unique combination of environmentally friendly processing and economic benefits.
A considerable part of Paques’ turnover is created by licensing their developed technology all over the world. Paques has licensees in more than twenty countries, which are sometimes exclusive suppliers. These licensees or any direct Paques customer do not only have to pay for the products they buy, but also for the use of the technology. This so-called royalty for the use of the patented technology is a major part of the company’s turnover.
The wastewater and gas treatment technologies developed by Paques are used in a broad range of industrial sectors varying from municipal water treatment plants, the mining and metal industry to the chemical and petrochemical, fermentation and pharmaceutical industries. Paques has a strong position in beer brewing, the food industry and in the paper sector (see figure 1).
Figure 1: Paques industries
20%
26%
35%
3%
10%
6%
Pulp & Paper Food
Brewery & soft drinks Chemical
Distillery Other(s)
The solutions that Paques creates within these sectors can be tailor-made or standardised. In this way Paques seeks to create solutions which are environmentally friendly and economically sound. The products Paques developed to create these natural solutions are very diverse. A short overview is presented below (for a total overview see appendix 1).
1.1.: Product Range
Paques is the leader in the field of anaerobic wastewater treatment plants. In the Biopaq
process bacteria convert organic pollutants in industrial wastewater into biogas and carbon dioxide, which can be reused. Furthermore, Paques has developed economically viable reactors for aerobic wastewater treatment such as the Circox reactor.
Under the brand name Thiopaq, Paques has brought innovative treatment processes onto the market for removing inorganic compounds such as sulphate, sulphur, nitrate and metals.
With the Astrasand, Paques treats water on the basis of physical chemical separation technology. For this they use a continuous sand filtration. This technology can also be used in combination with biological processes for the removal of e.g. nitrogen and both inorganic and organic compounds. The Astraseperator® is also a physical separation technology for suspended solids.
1.2.: MBR
The MBR (Membrane Bioreactor) technology is the focus of the research presented. MBR is a combination of aerobic wastewater treatment and membrane filtration, in which the membrane ensures the absolute separation of water, activated sludge and other particles. In a conventional system a large separation tank (settler) is used for this separation, using gravity. The membrane in the MBR that does the separation also produces cleaner effluent than the conventional settler tanks, because it separates more particles from the wastewater.
(for further explanation of the MBR technology see appendix 2).
This technology is not new. “Research into combining membranes with biological processes for wastewater treatment began over 30 years ago,…”1. At present there are more than a thousand MBR installations around the world.
A couple of years ago Paques started to develop their own MBR membrane module. The main reasons for this were the following:
The growing hype of MBR technology and the belief they could produce a module which would be cheaper, easier to clean and more robust than the competitors’
modules;
Customers increasingly asked for suppliers who can provide a total package (turn-key) of technology and service. MBR would give Paques extra added value in the total package they could provide, because it complements the biotechnology range of Paques products;
A growing demand for the water reuse option is noticeable. MBR is a product that is particular useful in meeting this demand.
1 Stephenson, T., et al., Membrane Bioreactors for wastewater treatment, 2002, IWA Publishing, Cornwall UK
A so-called membrane module is a frame of hard plastic in which “membrane envelopes”
are placed. From these envelopes permeate is extracted by means of suction. The aeration units (which provide the bubbles for cleaning) are also placed in this frame. For an exact description of the Paques Membrane module see appendix 3.
After a short development time and a first test module, the possible advantage seemed to disappear. Some competitors’ prices dropped and the Paques module was becoming relatively expensive. Some anticipated technical advantages were not being realised or led to further complication of the concept.
A second test module is being developed at this moment. The technical problems related to the first module have been solved. However, there are still considerable uncertainties in relation to the potential of the Paques module and the total MBR market. These are the main reason why this research is being conducted and leads to the problem statement presented in the next chapter.
2.: Problem Statement
Paques is developing its own (second generation) membrane and related module, which can be used and implemented in e.g. the MBR technology. For this reason Paques wants to know how and where they should market what kind of module.
The research will be focused on the (geographical) direct sales areas of Paques. This direct sales area consists of the following countries: The Netherlands, Belgium and Germany.
The Paques membrane module is still in the early stages of development and the first implementations of their product have to be under their own name. In the direct sales area they sell their products under their own name. The importance of this is twofold. First Paques needs to gain full experience of the whole process involved in selling, designing and building full-scale MBR installations. To gain this experience the first references need to be close to the company for practical reasons (less travelling, easier shipping, quicker response). The second reason is that Paques needs to build a references base in order to become an acknowledged membrane supplier. So, for a licensee or other possible sellers to be able to sell the Paques membrane module, Paques herself needs to create a base to which they can refer.
A reference base is important, because potential new customers (especially in the municipal sector) hardly ever invest in a non-proven membrane module2. The reason for this is that the investment in wastewater treatment is relatively high and customers in general do not want to take any big risks.
Ideally, this reference base is going to be built in industries of which Paques knows a lot and in which it has existing references of other products. These existing customers’
wastewater plants can be upgraded or expanded. The fact that it is an existing reference makes it easier to gain access (trust and customer relation) and there is also knowledge of the wastewater that needs to be treated.
The complexity of the membrane processing makes it important to have experience with the wastewater that needs to be treated. Paques has this experience with wastewaters of the Pulp & Paper, Food & Beverage, Chemical and Municipal industry. These industries will be referred to as “related sectors”.
This leads to the following objective,
- Investigate the possibilities for the Paques membrane module in the direct selling areas and related sectors, and advise on how the new product should be marketed.
Based on this objective, two general points of attention can be recognized which need to be researched. Firstly, a formulation of a marketing strategy identifying the main direction for the Paques membrane module in the direct sales area is needed. Secondly, this strategy needs to be implemented and possible internal adaptations need to be recognized. These two aspects lead to the following main question.
2 vakblad afvalwater, 2003
- What should for the direct sales areas and the related sectors the Paques MBR marketing strategy be and how should this strategy be implemented?
The answers, in combination with underlying analyses, are combined in a marketing plan.
So, when referring to the term ‘marketing plan’ the total structure of the paper presented is meant and not only the implementation part presented in the end. “A typical marketing plan includes analyses of the firms’ internal and external environment3”.
To further clarify this research an exact explanation of the main research question has to be given. Two elements in this question need to be cleared up, namely: marketing strategy and implementation.
2.1.: Marketing Strategy
Marketing strategy is defined in a lot of different ways, by a lot of different people. Some examples of definitions are: “crucial and central issues to the use of the marketing function4”, “a broad means of achieving given aims5”, “fundamental means or schemes6”,
“the grand design of achieving objectives7” and “the focus of marketing strategy are the
‘uncontrollable’ variables, competitors and customers8”.
Most of these definitions relate to different views on the details of marketing strategy. In short, these views are: the marketing mix, the product lifecycle, market share and competition, and positioning9. In this research the marketing mix will be used as a part of the implementation of the marketing strategy, so this view will be guiding. The reason for choosing this approach is that, in the eyes of the researcher, it gives practical guidelines for creating a concrete plan. This will be further elaborated upon in the implementation paragraph.
However for the sake of a general, applicable marketing strategy term, an assessment will be given of all these different approaches. The reason for doing this lies in the fact that it gives a complete and utter understanding of what is meant by this term, which will be used as a guideline when executing this research in practice. This short assessment is based on the various definitions presented earlier.
Firstly, it is clear that these various definitions all mention a certain goal (central issues, given aims, fundamental means, objectives) which needs to be reached. So there needs to be a purpose in relation to the marketing strategy.
3 Ferrell, O.C., Marketing strategy, The Dryden Press, Fort Worth, Texas, 1999, p.16
4 Chang, Y.N. and F., Campo-Flores, Business Policy and Strategy, Santa Monica, Goodyear Publishing, 1980 In: Greenley, G.E., An understanding of Marketing Strategy, European Journal of Marketing, Vol. 18, Issues 6/7, pp. 90-103
5 Baker, M.L., Limited Options for Marketing strategists, Marketing, June 1978, pp. 23-27 In: Greenley, G.E., An understanding of Marketing Strategy, European Journal of Marketing, Vol. 18, Issues 6/7, pp. 90-103
6 Luck, D.J. and Ferrell, O.C., Marketing strategy and Plans, Englewood Cliffs, Prentice-Hall, 1979 In:
Greenley, G.E., An understanding of Marketing Strategy, European Journal of Marketing, Vol. 18, Issues 6/7, pp. 90-103
7 Kotler, P., Marketing management: Analysis, Planning and Control, 3rd edition, Englewood Cliffs, Prentice- Hall, 1976 In: Greenley, G.E., An understanding of Marketing Strategy, European Journal of Marketing, Vol.
18, Issues 6/7, pp. 90-103
8 Robins, F., The teaching of marketing Strategy, 1994, Marketing Education Review, vol. 4, 10-15
9 Greenley, G.E., An understanding of Marketing Strategy, European Journal of Marketing, Vol. 18, Issues 6/7, pp. 90-103
Secondly, marketing strategy deals with covering the whole marketing contribution and giving it direction. This means that marketing strategy encompasses a general guideline for every marketing activity. Every activity which is initiated has to fit within these guidelines.
Based on these findings the following general statement of what a marketing strategy is can be formed:
-A general guideline for every marketing activity initiated which has to lead to the accomplishment of (a) predetermined goal(s)10.
This general statement still leaves us with the question of what should be addressed in this guideline. Hooley11 e.a. speak of two aspects which are important when creating a marketing strategy. These aspects are market segmentation and competitive positioning.
2.1.1.: Market Segmentation
In this section of the marketing strategy a distinction has to be made between different (potential) customers and their relevant characteristics. Based on this, an evaluation and a choice is made of the (eventual) target markets which should be targeted with this product.
2.1.2.: Competitive Positioning
In this part of the strategy the key success factors (or sustainable competitive advantages) are identified and put into perspective to those of the main competitors. This is done to visualise which factors of a potential new product need to be marketed in relation to the ones of the competitors.
These two factors in relation to the general statement leads to the following definition of marketing strategy:
- A selection of the target markets and an indication of the relevant success factors (in relation to the relevant product) which will be guiding for every marketing activity.
Ferrell e.a.12 speak of a third important factor which needs to be addressed in relation to marketing strategy, namely: Key customer and competitor reactions. “A good understanding of the potential customer and competitor reactions may suggest areas where the marketing strategy needs to be changed”. A short evaluation of the marketing strategy in the light of these reactions will be done before the implementation advice for the marketing strategy is given.
2.2.: Implementation
The second part of the main question is a practical implementation of this marketing strategy. How should the marketing activities be designed? Hooley e.a.13 mention three aspects which need to be covered in the implementation of a marketing strategy, namely:
marketing mix, organisation and control.
10 NB. The predetermined goal, in relation to this strategy, is to make the Paques membrane profitable. The reason for this will be explained later on this research, but will not be mentioned again explicitly.
11 Hooley, G., e.a., Marketing strategy and competitive positioning, 3rd edition, Prentice Hall, 2004
12 Ferrell, O.C., Marketing strategy, The Dryden Press, Fort Worth, Texas, 1999
13 Hooley, G., e.a., Marketing strategy and competitive positioning, 3rd edition, Prentice Hall, 2004, p. 52
In this research implementation will mainly deal with translating the marketing strategy into concrete efforts in the market place (marketing mix). Lack of time prevents the researcher to conduct a thorough internal investigation of the other two elements. These two elements will not be intensively researched, but only some guidelines and recommendations will be presented.
In this part of the marketing plan the marketing mix factors will be given direction, guided by the marketing strategy. These factors are: product, price, distribution and promotion.
The marketing strategy shows which markets and factors need to be addressed to be successful and this implementation section shows how these markets need to be addressed and how the key success factors need to be utilized.
2.3.: Framework
To devise a marketing plan for the Paques MBR, information has to be collected. The basis for this data collection will be Aaker’s book14. A model is presented (see figure 1) in which an overview is given of the most important elements for the creation of a ‘strategy’. His view is broader than the implementation of a marketing strategy relevant in this research.
This model is created for an implementation of a market strategy for a company as a whole (based on all their products). In this research a strategy is created just for one product within a range of products. However, the marketing strategy created has to fit within a general strategy. This will be looked at in the internal analysis.
Figure 1: Overview of Strategic Market Management
Source: Aaker, D. A., Strategic Market Management, 2001, John Willey & Sons, Inc., New York, p. 19
14 Aaker, D. A., Strategic Market Management, 2001, John Willey & Sons, Inc., New York External analyses
• Macro analysis
• Market analysis
• Competitor analysis
• Customer analysis
Internal analysis
• Performance analysis
• Determinants of strategic options
Strategy identification and Selection
• Identify strategic alternatives
• Select strategy
• Implement the operating plan
• Review strategies
NB. The Aaker model presented gives a short overview of how a market or (in this case) a marketing strategy is created. Based on an internal and external analysis, strengths, weaknesses, opportunities and threats are found. These factors are the basis for creating a strategy and for the final implementation of the plan that is created from this strategy.
• Opportunities and threats
• Trends and strategic uncertainties
• Strategic strengths and weaknesses
• Problems, constraints and uncertainties
Despite the discrepancy of this model in relation to the research question (corporate strategy vs. marketing strategy) it will be used because it covers all relevant aspects. These aspects need to be researched to reach a comprehensive strategy, including a marketing strategy just for one product. This model gives direction concerning the important elements which need to be analyzed for the strategy-making process.
A second reason for choosing Aaker’s model is because it views strategic thinking as being a pro-active activity. This means that a strategy is a part of the environment and also creates it, instead of being passive or having a re-active role. This is noticeable in the importance and dynamics of the external analysis. These show a total coverage of the environment, which could lead to new insights and eventually to new unforeseen opportunities.
The marketing strategy for the Paques MBR is also going to be pro-active. This means that it will not merely detect and react to change, but it will anticipate and create its environment. A pro-active strategy is important because of two reasons15. Firstly, one way to be sure of detecting and quickly reacting to major environmental changes is to participate in their creation. Secondly, because environmental changes can be significant, it may be important to be able to influence them.
2.3.1.: Changes to the Framework
As is stated above, the Aaker framework is meant to create a corporate strategy, not a marketing strategy for one single product. This means that some changes have to be made within the model to make it applicable to this particular research.
2.3.1.1.: SWOT Analysis
In his model Aaker does not explicitly compare strengths, weaknesses, opportunities and threats, but generates strategic alternatives directly from the analyses. In this research an extra step is included to create a clear view of how the relevant factors relate to each other and how important they are. This extra step will be a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.
When conducting a SWOT analysis before formulating a strategy, information gathered in the different analyses is used. “In this analysis a firm can establish which opportunities offer it the greatest likelihood of future success so that it can devise strategies to achieve them16”.
This SWOT analysis, from which a strategy is created, is very constructive17. It is simplistic in its form, it integrates different relevant areas within the possible strategy, it is flexible in the usage of information and is easy to communicate. All of these factors make the model easy to operate with a high possible success rate.
A major problem in using a SWOT analysis is that the information that is gathered is not used effectively. It is important that the factors which are compared in this analysis are on the same aggregation level. If not, comparison is useless and, in the case of this research, too much information is gathered and no useful conclusions can be drawn.
15 Aaker, D. A., Strategic Market Management, 2001, John Willey & Sons, Inc., New York, p. 12
16 Baker, M. J., Marketing strategy and management, 3rd edition, Macmillan Business, London, 2000, p. 140
17 Ferrell, O.C., Marketing strategy, The Dryden Press, Fort Worth, Texas, 1999, p. 56
As mentioned previously, the difference with a normal SWOT is that the strategy which will be created in this research is not a corporate but a marketing strategy. This means that the factors included in this SWOT are only relevant where they influence a marketing strategy for the MBR and not at corporate level.
To generate useful information, Ferrell e.a.18 suggest to stay focused in the analyses stage.
In this research this focus will be created by collecting data in two steps. In the first step secondary data is collected based on specific topics generated in the first (meta) stage of the research. This information will be evaluated and completed in the second step through in- depth semi-structured interviews. The process of information gathering and the research concept will be elaborated upon further on.
The information is also checked for its relevance when a SWOT matrix is constructed19. The SWOT matrix will be presented in the SWOT analysis. In this analysis weights are given to the different factors. This not only gives more importance to various data elements, but also makes it necessary to go over the elements a second time.
2.3.1.2.: Implementation
There is also a difference in the meaning of implementation. In the Aaker model implementation means: making the strategy fit with the organisation, with its structure, systems, people and culture20. This can be compared with the aspects organisation and control in Hooley’s21 definition which was mentioned earlier. In this research the planning of these elements will be considered extremely important. The aspect marketing mix is also considered to be an important part and will be integrated in the implementation. The 4 elements (4P’s) which are considered to be the foundation of the marketing mix will be completed with a fifth, People. The reason for this will be explained later on in this research.
In this research, implementation is considered to be a separate step, after the strategy making. The reason for this, as stated earlier, is that the researcher feels that there is a difference between questions related to a marketing strategy (What should be marketed?
Where should we market?) and the direct implementation (How should we market this product?).
2.4.: Sub-questions
The previous paragraphs give a practical explanation of what is meant by the different elements in the main question. To create a guideline for this research and make it easier to answer this main question, it is necessary to divide the main question in sub-questions. This division is based on Aaker’s strategic market management model presented earlier.
The first four sub-questions relate to the four different external analyses, namely: macro, market, competitor and customer analysis. The fifth question relates to the internal analysis.
The exact formulation of these sub-questions is based on the relation these factors have with answering the main question. This is why, for example, the competitors’ strategic direction is addressed explicitly.
18 Ferrell, O.C., Marketing strategy, The Dryden Press, Fort Worth, Texas, 1999, p. 57
19 Ferrell, O.C., Marketing strategy, The Dryden Press, Fort Worth, Texas, 1999, p. 68
20 Aaker, D. A., Strategic Market Management, 2001, John Willey & Sons, Inc., New York, p. 288
21 Hooley, G., e.a., Marketing strategy and competitive positioning, 3rd edition, Prentice Hall, 2004, p. 52
The remaining sub-questions are consistent with the first three of the four points in the last step in the Aaker model (Strategy identification and selection). The last point (of the Aaker model) will not be addressed in this research because this falls outside the time frame of this research. This resulted in the following sub-questions:
1) What is the influence of the macro-environment, in the different countries, on the submerged membrane technology?
2) How big is the market potential?
3) What are the advantages and disadvantages of the main competitors and what are their main strategic directions?
4) What kind of industries within the related sectors has the highest potential for using the submerged membrane technology and why?
5) What are the advantages and disadvantages of Paques as an organisation in relation to other MBR producers?
6) What are the strategic alternatives Paques has, in relation to the MBR?
7) What will the marketing strategy for the Paques MBR be?
8) How should the marketing strategy for the Paques MBR be implemented?
2.5.: Conceptualization
Based on the above, a conceptual model of the research is presented. This model gives an overview of the different aspects, which are included in this research (see figure 2). In the following a short explanation of this model will be given.
The basis for this conceptual model also lies in Aaker’s strategic market model. This model is used to create a guideline for the different analyses which will be conducted in this research.
Within these analyses (e.g. Macro analysis) a choice of elements which will need to be researched, will be presented. This choice was made prior to the actual information gathering. Unimportant elements were discarded; important elements were put in based on comparing different theories and deliberating with marketing experts at Paques. The reason for this assessment has to do with lack of time (see limitation paragraph) which prevents some elements from being researched. An exact description of the conceptual model will be given on the following pages.
Figure 2: conceptual model of the MBR marketing plan
First stage
Second stage
Problem statement
• Identification of problem
• Evaluation of influential elements
External analysis
• Macro analysis - Technical - Governmental
- Economics, Culture and demographics
• Market analysis
-Worldwide market differences - European market potential -Profitability of the MBR market
- Trends and developments
• Competitor analysis (main competitors)
- Performance - Cost structure - Strategy
- System suppliers - Module comparison - Strengths and Weaknesses
• Customer analysis (within sectors)
- sector description - (possible) MBR effluent applications
- Sector legislation - Segmentation
Internal analysis
• Performance analysis - Paques’ Strengths and Weaknesses
- Strengths and Weaknesses of the Paques MBR module
- Cost (price) evaluation - Sales price comparison
• Determinants of strategic options
- Mission and corporate strategy
- Organisational capabilities and constraints
Implementation
• Marketing mix - Product - Price - Place - Promotion - People
• Organisation & Control Strategic alternatives
• Constructing various strategic alternatives
• Evaluation of alternatives - consistency
- consonance - advantage - feasibility
• Choice for definitive strategy
Marketing strategy
• Target market
• Key success factors (competitive advantages) (assessment and possible changes based on expected reactions) SWOT Analysis
• Assessment in a SWOT matrix, of strengths, weaknesses, opportunities and threats for the marketing of the MBR
• Weighing and evaluating of most important factors
• Comparison (confrontation) of the important factors
2.5.1.: Explanation of the Conceptual Model
To get a clear picture of the problem that needs to be researched, a preliminary stage (prior to the actual research) is introduced. In this first stage (meta stage) the problem which is to be researched is identified. This identification is done by consulting with several of Paques’
employees and assessing their opinions about the problem at hand and the relevant boundaries within which the actual research needs to be carried out. The findings of this stage are the basis for the problem statement presented in the first paragraph of this chapter.
Furthermore, in this first stage the evaluation (choice) of influential factors in the different analyses presented previously will also take place. This evaluation is done by the researcher to give focus to the second (research) stage22. The findings of this evaluation are presented in the conceptual model. The problem identification and the evaluation of influential factors, resulting in a problem statement and factors which need to be researched are the primary guidelines for the actual research.
The findings of the first stage are, as mentioned earlier, the basis for the various analyses that will be carried out in the second stage. This second stage is the actual research, which will generate the data for answering the main question constructed in the first stage. This information will be gathered in the internal and external analyses.
So, the internal and external analyses will generate the information for the relevant Strengths, Weaknesses, Opportunities and Threats and will be the basis for the SWOT analysis. In this analysis a matrix of the most important elements will be identified and weighted. Finally a comparison of these factors will generate a general guideline for the marketing strategy.
Based on this information a set of strategic alternatives will be presented. All of the alternatives presented have to comply with the SWOT analysis and have to generate realistic options for the new Paques MBR. The strategic options will be created with the use of a confrontation matrix.
The alternatives will be evaluated based on criteria set by the researcher. These criteria are based on the determinants set by Rumelt23, which are: consistency, consonance, advantage, feasibility. Based on this evaluation a decision will be made which marketing strategy (which markets will be targeted and which competitive advantages have to be communicated) will be implemented. Based on this strategy an assessment will be made of the possible actions of competitors, which also will be taken into account in the final implementation.
Finally, an implementation plan will be presented. In this plan a guideline will be presented on how, where and when this marketing strategy needs to be implemented. This plan will be written based on the 4 P’s: Product, price, place and promotion. Apart from these four
22 NB. As can be seen from the model the arrows between the first stage and the various analyses go two ways. This means that the possibility for refining the choice of influential factors that need to be researched and the possibility to change the problem statement are kept open. After the external and internal analyses these possibilities no longer exist.
23 Rumelt, R., The evaluation of Business Strategy, Business Policy and Strategic Management, 1980 In: Wit de, B., Meyer, R., Strategy, Process, Content, Context, 2002, Thompson Learning, London, p. 33-40
instruments an important fifth is added, namely People24. Judd says employees are of the utmost importance to create advantage over competitors. Also, some practical recommendations will be given on how to organize and control this process.
2.6.: Methodology
In this paragraph an explanation will be given on how the different sub-questions presented earlier are to be answered. The data-gathering will be done in the second stage of the research and relates to the various analyses. This data-gathering will take place in two steps.
2.6.1.: First Step of Data Collection
In this first step an assessment is made of the most important industries and regions in which the best opportunities lie and where threats appear. The necessary information will primarily be gathered by desk-research. Also, some internal interviews at Paques will be held. The reasons for this kind of information retrieval are the already large base of existing information on MBR and the general characteristics of the necessary information.
In this desk-research the focus will be on the following aspects. Based on the first five sub- questions, the influence of the macro environment on the development and possibilities for MBR technology is established. Secondly, it will establish in which industries within the related sectors there are possibilities for using submerged membranes. Thirdly, an idea of the strategic intentions of the main competitors and their field of business is given. Lastly, information is acquired to give insight in the advantages and disadvantages of Paques.
In this secondary data research several sources are used. For example: the Internet, data already available at Paques, public databases, Information Retrieval (UB), magazines, etc.
Besides these secondary resources, relevant information is primarily gathered. This is achieved by conducting interviews, in a semi-structured25 way, with experts on different industries at Paques. These interviews will give insights in the attractiveness of the different markets for MBR, create guidelines for possible applications in relation to wastewater characteristics, possible barriers for the usage of membranes, etc. Four interviews are held with experts in the four different relevant sectors. One interview is held with a technical engineer experienced in MBR installations.
Information is also acquired through branch-organisations of the different relevant industries and institutions. The branch-organisations relating to the different sectors will be addressed through e-mail. Here information will be gathered in relation to legislation, technical advantages/disadvantages of MBR, possible barriers, etc.
2.6.2.: Second Step of Data Collection
The first step will probably generate most of the information for answering the main question of this research. However, there is a distinct possibility that some information relevant for this research cannot be gathered through secondary sources.
24 Judd, V.C., Differentiate with the fifth P: People, Industrial marketing management, 1987, Vol. 16 Issue 4, p. 241 - 247
25 Saunders, M., Research Methods for Business Students, 2000, Prentice Hall, Essex (UK), p.264
So, to fully answer the sub-questions additional information probably needs to be collected.
Such information could be: the existing knowledge of MBR of industrial customers; criteria on which they base their decision for water treatment (and related supplier); sources on which they base their decisions; the Paques’ image with (existing) customers; sensitive information of competitors; process knowledge of competing modules; etc.
This information is retrieved through in-depth semi-structured interviews with existing or potential customers, companies with existing MBR plants and experts in water management. The reason for using a qualitative approach instead of a quantitative approach is that the information that needs to be acquired is difficult and complex. Also, the necessary information is of a very personal note, so a quantitative research would not generate the desired data.
The acquired information has to give an in-depth and complete picture of the opportunities and threats of the market. This information can help answer the first four sub-questions. It also has to be made clear what the external ‘view’ is of Paques’ strengths and weaknesses26. This information will be used for answering the fifth sub-question.
These interviews will be held among the users of MBR installations in Belgium and the Netherlands, because of travelling time and the low language barrier. A choice within this population will be made based on which MBR installation they use (which competitor).
With this distinction an understanding of the different competing submerged modules can be achieved. No exact number of interviews can be given, because it will depend on how much data is missing from the first step in data collection, but it is estimated to be approximately 3 or 4.
The sixth and seventh sub-question will be answered based on the information gathered for answering the first five sub-questions. The final implementation plan will be written based on the findings of the seventh sub-question. This implementation plan will be written, as stated earlier, primarily based on the marketing mix factors. In figure three in the next paragraph the expected time frame in which these two steps will be executed is presented.
2.7.: Limitations
A first limitation is the fact that the research has to be completed within 6 months (see figure 3), because of the agreement between Paques and the researcher. A concrete plan has to be presented before the end of March 2004. This limitation makes it impossible to conduct a research in which all relevant information is collected. So, as stated earlier, there is a first (meta) stage, in which a clear picture of the problem is presented and the boundaries for the research is given.
In the problem statement it is explained that a marketing strategy for the direct sales areas (the Netherlands, Belgium and Germany) of Paques will be created. This marketing strategy will only be applicable to the industries (Food & Beverage, Pulp & Paper, Chemical and Municipal) which are relevant for Paques within these areas. However, information from other industries and geographic areas will also be gathered in the first step of data collection.
26 NB. In the interviews with the Paques experts I will also try to find out what general view Paques has of it- self, concerning these strengths and weaknesses.
This first step of the data collection is also intended to create an overview of the total MBR market in all of it aspects. This will create an overall view, which will provide a broad picture of possibilities for the Paques MBR. However, the conclusions drawn from this research will only be applicable to the direct sales area and related industries.
In the macro analysis only the governmental and technological aspects of the macro environment will be researched. The reason for this concentration is because they are by far the most important factors, which became obvious in the first (meta) stage. Water treatment has to deal with a lot of legislative rules, which are only increasing. Also, a lot of companies only invest in water treatment because the law tells them to.
Figure 3: time frame
½ month first stage
2½ months
second stage
2 months
1 month
The reason for the technological analysis is that there are a lot of technological developments still going on in the water treatment market, as MBR is still in the introduction stage and very much based on technology.
NB. The first step of data collection will take approximately 3 months. Depending on the quantity of data that is missing, the second step will take longer or shorter. It is estimated to take 2 months to finish this section.
The last month is reserved for assessing the analyses, creating a strategy and recommending an implementation of a marketing plan.
Problem identification and element evaluation
First step of data collection Includes:
-macro environment assessment -industry review with possible applications
-competitor evaluation -internal assessment
This information is acquired through secondary sources
Assessment of possible missing data
Second step of data collection Missing data is acquired and invalid data replaced through in-depth-semi-structured interviews
Based on the analyses, a marketing strategy is created
Implementation plan is written, based on the chosen strategy
In the competitors analysis the manufacturers of membranes, not the distributors of these membranes will be reviewed. The reasons for this are the following. First of all, the system suppliers which sell an MBR in a total water treatment system are restricted by the technical specifications of the membranes they use. Secondly, there are too many different suppliers to come to a useful conclusion.
The second step of data collection will be conducted within the limitation of the direct sales area and relevant industries, to create new insights, verify existing ideas from the first step and support the implementation.
In this second step interviews with some of Paques’ existing relations will be conducted. If this does not generate the information that is needed, other sources will be interviewed.
Paques’ relation base is very large, so the expectation is that the insights from this relation base will create a thorough insight in the missing data and will contribute considerably to the research.
Conducting a thorough interview in which every aspect is reflected critically solves the problem of biased information, which can be a problem when interviewing existing relations. Knowing the information is biased will hopefully lead to useful information.
Obviously, most limitations relate to pressure of time. These practical limitations however do not limit the results of the research, because they will have been well considered in the first (meta) stage. Important elements which need to be researched in some of the different analyses are already clear at Paques. Other research done previously for other products, has given some insights in relevant elements and will be used as a guideline for this research.
This does not mean that elements are discarded or put in without careful consideration.
The sub-questions and conceptual model presented provide the framework for the various analyses presented in the following section. First, a macro analysis is conducted. In this analysis an indication is given of the influence of the different macro factors in the Paques environment. In the second chapter a market analysis is presented. Here an assessment is made of the most important forces within the MBR market and an indication is given of the potential sales. Thirdly, a competitors’ analysis is presented, giving a review of the most important competitors and their competences. Fourthly, a customer analysis is carried out.
In this analysis a differentiation between Paques related industries is made, namely: Paper, Food & Beverage, chemical and municipal. In this analysis relevant bearing on the possibilities for MBR technology are presented. In the fifth chapter an internal analysis is shown. Here Paques’ strengths and weaknesses and the Paques MBR module are researched. Also, constraints relevant to a possible marketing strategy are acknowledged.
From these analyses a SWOT matrix is created in the sixth chapter. In this matrix weighted conclusions are drawn and general indications are presented from which the MBR marketing strategy will be drawn. In the final chapter a marketing strategy is presented and a directive is written on which the final marketing plan will be based.
