UNIVERSITY OF GLOUCESTERSHIRE

IN AFFILIATION WITH

OPEN LEARNING CENTRE

Programme Masters of Business Administration

Module Strategic Marketing Management

Cohort MBA 16

Name Thudius Chizema

Lecturer N. Muyaka and G.Dube

Word Count 4667

Due Date 02July 2018

ASSIGNMENT BRIEF

Students will be required to submit for assessment a written assignment of 4,500 words, critically examining their organisation’s marketing management strategy, and proposing and evaluating a relationship marketing option available to their organisation.

OPEN LEARNING CENTRE

AFFIRMATION OF OWN WORK

This submission on Strategic Marketing Management is the result of my own work. Primary and secondary sources of information and any contributions to the work by third parties, other than my tutor/other tutors, have been fully and properly attributed. Should this statement prove to be untrue, I recognize the right and the duty of the Board of Examiners to take appropriate action in line with University of Gloucestershire’s regulations on assessment.

Signed Thudius Chizema

Date 02 July 2018

EXECUTIVE SUMMARY
This report was a critical examination of Softex Tissue Products’ marketing management strategy that resulted in the proposal and evaluation of available relationship marketing options. Softex strategy was critically reviewed
Softex strategy was reviewed based on external and external environmental scanning which focused on SWOT, BCG, McKinsey 7S, Marketing mix, Relationship Marketing and Porter’s 5Forces Framework. Alternative relationship marketing options were recommended based on the way Strategic management is being done and implemented at Sofetx. Also top management was interviewed during the process.
It was deduced that Softex carry out strategic review annually demonstrated by the available documents. However it was noted that recourses were not availed for some strategies to be implemented. Growth strategy driven by both local and export markets was not supported by relevant staff and skills. There is no platform for innovation. Also there is no focus on technology in this information and technology age this will stall sales in the long run.
Brand support was also not correctly done as no advertisement or promotions are done to keep customer informed about their existence.
It was recommended that strategy must be supported by structure so the need to invest in staff and skills to support the growth strategy. The organisation was recommended to invest in technology to allow internet selling and in advertisement to improve brand visibility for better position.

Contents
IN AFFILIATION WITH i
Programme Masters of Business Administration i
ASSIGNMENT BRIEF ii
AFFIRMATION OF OWN WORK iii
EXECUTIVE SUMMARY iv
Figures v
INTRODUCTION 1
1.0 STRATEGIC MARKETING MANAGEMENT OVERVIEW 2
1.2 Impact of Internal and External Environment 2
Internal Environment 2
Figure 1 McKinsey 7S Model 3
1.2 Boston consulting group (BCG) growth-share matrix 5
Figure 2 Boston Conculting Group (BCG) 6
Figure 3 PESTEL Analysis 7
2.3 Integration of internal and external analyses 8
SWOT Analysis 8
1.4 Marketing, Corporate and Business unit strategy 9
2.0 MARKETING MIX 10
Figure 5 Marketing Mix 10
2.1 Product 11
2.2 Price 11
2.3 Place 11
2.4 Promotion 12
2.5 People 12
2.6 Process 12
2.7 Physical Evidence 12
3.0 Customers 12
3.1 Customer Need Identification 12
3.2 Customer satisfaction 13
3.3 Customer retention 14
4.0 STRATEGY IMPLEMENTATION 14
Implementation Plan 14
5.0 Relationship Marketing 15
6.0 Conclusions 16
6.0 Recommendations 16
References 17

Figures

Figure 1 McKinsey 7S Model 3
Figure 2 Boston Conculting Group (BCG) 6
Figure 3 PESTEL Analysis 7
Figure 4 SWOT Analysis 9
Figure 5 Marketing Mix 11

INTRODUCTION
Softex Tissue Products is a joined venture between ART Corporation and Hunyani Holdings established in 1983 as a toilet tissue manufacturer and distributor ranging from toilet tissue rolls, paper towel to serviettes. Softex has turned into a hygiene company over the years by venturing into new businesses of stockholding and distribution of feminine and hygiene products ranges which includes sanitary pads, cotton wool, diapers and household hygiene products.
The organisation provides a hygienic touch to its customers through provision of hygiene solutions that improve the quality of people’s lives.
In this industry competition is on its highest level with new players’ proliferation due to fewer barriers of entry. It has become significantly difficult to attract customers and other stakeholders in these changing social and technological trends. There is need to put more effort and dig investment on potential customers attraction marketing strategic. In this marketing environment thousands of innovations has daily. Competition level is so high that survival without a strong strategic marketing and innovation will be difficult. With this in mind the purpose of this report is to recommend alternative marketing management strategic options to Softex Tissue Products through a critical examination of current strategy and evaluation of other available relationship marketing options. The author will recommend alternative competitive strategic options after considering current performance.
Strategic marketing is about moving the organisation from its present position to a more competitive one where it has a competitive advantage (Hannagan, 2002, 77). Strategic Marketing Management is an immersion in the core principles of successful marketing that helps to uncover winning formulas of marketing leading brands, enables use of marketing analysis to pinpoint most profitable customers and package solutions that fulfill their needs and taste requirement.
In order to enjoy competitive advantage against competition a strong marketing strategic plan is required to attract more customers. To achieve this internal and external marketing environment is scanned paying attention to SWOT, BCG, McKinsey 7S, Marketing mix, Relationship Marketing and Porter’s 5Forces Framework. Through critical analysis of the organization practices, financial reports, market trends using the strategic marketing tools the author is going to come up recommendations. Strategic marketing objective will be reviewed for improvement. Focus shall be made to business and corporate business level strategy. The author will critically analyze Softex trading reports, and marketing strategy, interview top management and make reference to marketing specialist publications to come up with a conclusions and recommendations.
1.0 STRATEGIC MARKETING MANAGEMENT OVERVIEW
Marketing audit is a comprehensive, systematic, analysis, evaluation and the interpretation of the business marketing environment, both internal and external, its goals, objectives, strategies, and principles to ascertain the areas of problem and opportunities and ensure that all the alternatives have been identified (ABE, 2008). For Softex marketing is key given that there is extensive competion from new players that are emerging in this sector from both local and imports. As MFCG growth is based on strong marketing strategy.
1.1 Role of strategic marketing in Softex Tissue Products
Marketing has become very essential for Softex success there is need to focus on marketing campaign to enjoy competitive advantage. Strong brand image is created by a good marketing strategy that improves positive product perception to customers and attracted them to use the products. Softex Super Saver blue, green, and pink over years created positive perception in old customers’ minds as a result of the effort that was done then in marketing the product. Strategic marketing played an important role. Their marketing strategy identifies the strengths of their brands. Currently 37% of toilet tissue and related products user knows and used use Softex products in their bathrooms due to marketing campaign in the olden days. Good marketing strategy promotes products. With a comprehensive strategic plan Softex unlocks customers demand knowledge. Through their marketing campaign they realized that people are increasing opting for white virgin tissue rolls and women have shifted from cotton wool to sanitary pads and are particular about price. As result new products were developed to cater for the market shift.
Available marketing media options if identified, they provide better option to enhance effective achievement of marketing objectives however only Face Book as social medium was adopted by Softex. Strategic marketing includes short and long term marketing objectives, functional, business level and corporate level strategy which help employing successful plan for each of the objective.
1.2 Impact of Internal and External Environment
Internal Environment
McKinsey 7S Model
This is a tool that analyzes firm’s organizational design by looking at 7 key internal elements which are strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives. (Insight, 2013)
There are Soft Ss and Hard Ss. Soft Ss deals with human resources.
Figure 1 McKinsey 7S Model

Alignment of the 7 elements of Softex: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, achieve effectiveness performance. These elements are interconnected strategy for instance when a new hygiene business was introduced in 2013 the rest were changed from structure to share value. A new structure was put in place with technical staff to deal with the new challenges. Soft Ss deals with style, staff, skills and share value and Hard Ss that deals with strategy, structure and systems.
Softex have taken a growth strategy into export market and increase market share to 50% in the local market. The structure has not changed with some skills misaligned and missing. There is no one responsible for exports. They have not expanded staff, introduced new motivation for those with job enlarged scope, or introducing reward systems to stimulate sales. Shared values have not evolved as a result and now the company the growth strategy seems a nightmare. Trust and teamwork has disappeared due to remuneration increase expectations.
Undisputed growth is stall expanded and a few problems came with it. First, the company’s strategy is no longer viable. Market share remained at 37% in the domestic market with on two export consignments with no indication that more are coming. The strategy was not supported by structure so the best way for it to grow market share is to invest new new products to current market or to expand to other geographical local markets. This strategy seems not correctly aligned with the company wide. Lacks strategic planning systems and analytical skills led to this pitfall.
Business management style is still chaotic and it is a problem of top managers lacking export management skills. Softex should introduce new skills to the good system that prevails which is fairly new.
Softex structure is lean with two layers and a small hierarchy which encompasses self directed work teams. This structure is no longer able to support growth strategy rather still in cost saving mode.
There is no defined motivation system like a bonus system which supports which will support lean improvement and the new ways of working.
There is focus on the firm’s future core competencies deployment throughout the organization however in the short term the strategy retains all employees. With corrected training the strategy is to improve skills availability.
Current skills have ability to perform very well in this environment but for the growth strategy there is need to skill. There is need for a skills audit to support growth strategy and new structure. A new team skills, problem solving, waste elimination team is required with process analysis, export skills is required and to be empowerment to make decisions to their ability.
Leadership style at Softex encompasses empowerment by top management of employees in their specialized areas. They are trained, experienced and have courage to delegate and empower subordinates. Some are good coaches and mentors. Growth strategy requires strong style.
Softex has team players, but they are no goal sharing, most of them fear change agents and are not improvement drivers on an individual level. There is need for training to suit the adopted strategy.
Softex value is not known to employees so Shared Values exist by default in organization that respects each and every employee and call themselves a family. There is no culture of waste elimination and perfection in everything that is done. Target for delivery trucks is 3% of turnover while it is hovering at 4% and in operations waste has gone down from 7% to 5% against 4%, these pushes product cost to high for consumers.
1.2 Boston consulting group (BCG) growth-share matrix
The Boston Consulting Group’s product portfolio matrix was designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. It’s also known as the Growth or Share Matrix.
This Growth matrix also known for its cow and dog metaphors is popularly used for resource allocation in a diversified company. By applying BCG matrix on Softex to different businesses they are classified into dog, star, cow and question mark. (ICA, 2008).
Femicare is the new product which is the Question mark refered to as a problem children or wildcats as potential for success, if resource are invested in it. This business requires capital to gain enough market share to become a market leader and turn into a star. Money used must be atken from Toilet tissue bussiness mature products and to promote question mark. This is a new product in a new market (Wheelen, 2012, 222).
Toilet tissue a market leader is the Star is typically at the peak of their product life cycle and are able to generate enough cash to maintain their high share of the market and usually contribute to the company’s profits. 80% of turnover comes from tissue business. It is in high market share and high growth rate nad profitable. Having plotted the current positions of its product lines or business units on a matrix, a company can project its future positions, assuming no change in strategy. Product lines or business units are considered only in relation to one competitor: the market leader. Small competitors with fast-growing market shares are ignored. Market share is only one aspect of overall competitive position. (Wheelen, 2012, 223)

Figure 2 Boston Conculting Group (BCG)

If tissue business is not managed correctly it can become a dog so Cash Cow units must be managed to maintain their strong position for as long as possible. Effort can be put on product development and diversification. However, a Cash Cow can become weak, and become a dog while a cash cow is in low growth rate and high market. A cision to harvet can be considered. Babycare is a Dogs business which low market share and low market growth. A decision should be made to retrench or reinstate a dog into star or cash cow by managing its life cycle.
1.3 External Environmental Analysis
External factors cannot be controlled by Softex management and have an effect on entire industry rather than individual companies. PESTEL is applied to scan the environment.

Figure 3 PESTEL Analysis

Political situation in Zimbabwe affect toilet tissue industry at large. Changes in government policies affect the business performance and Softex is not spared. The key political factors for Softex are reduced disposable income and proliferation of informal sector that has discouraged people to used tissue products, reduced use of sanitary pads and other related products. People have resorted to use of alternative products.
Under these circumstances if not improved there is need to be innovative and develop products that are compatible with the prevailing market. It has become so difficult to attract investors that create demand for their products.
Officially inflation, exchange rates, and interest rates are low however those sources of capital are dry resulting in use of alternative as directed by runners and are expensive and this affects Softex which is a net importer and this economic factor stall economic growth. Reduced market, low disposable income and negative value for money affected Softex performance.
Export market is the alternative to acquire needed foreign currents and drive Softex growth strategy.
Socially in Zimbabwe consumers are in the survival mode so there is little to talk about on lifestyle and societal beliefs. In current scenario on lifestyle, people, has increasing used toilet tissue and sanitary pads substitutes. Diversification has become an option for Softex into products that prevail in these hard times.
Technology is always changing and has an affecting the marketing promotion of every organization as innovative technologies are being introduced each day passing. Internet selling, and social networking are increasing. Digital marketing promotion has become the key technological factors for Softex. However the organization is lagging behind as they are only on Facebook. There is need to expand on use of technological platforms for marketing
Softex has remained compliant to legal requirements however there are numerous compliance requirement and statutory payment required. There is no option than to comply but there are short changes in the industry that creates unfair trade due to non enforcement by the enforcement agents such as Trade Measures. Softex ahs to lob the enforcement agents to enforce the law tp level the play field.
As a Hygiene company and the fact that recycled materials are use Softex comply to the requirements of the environmental factors. They help clean the environment as 75% of the business comes from recycled products.
2.3 Integration of internal and external analyses
SWOT Analysis
Strategy formulation can be referred to as strategic planning or long-range planning, is concerned with developing a corporation’s mission, objectives, strategies, and policies (Wheelen, 2012). This is the situation analysis process of external opportunities and internal strengths relating to external threats and internal weaknesses which is part of environmental scanning is called SWOT (Strengths, Weaknesses, Opportunity, and Threats).
SWOT analysis should not only result in the identification of a corporation’s distinctive competencies but used to take a broader view of strategy (Wheelen, 2012). A decision should be made whether to invest in more on strengths to have a distinctive competence or in weaknesses to make them competitive?
The organization’s performance is significantly influenced by market position for Softex they have a strong Softex Super Saver brand, nature of environmental opportunities and threat where Softex has leveraged on access to cheap foreign currency from exporting sister, National Waste Collection and the organization’s resource capability to capitalize the opportunities and its ability to protect against the threat (ICA, 2008, 3.12).
Figure 4 Softex Tissue Products SWOT Analysis
STRENGTHS
Market leader
Strong Wish Brands
Market Share at 37%
Access to foreign currents
Good financial situation
Diversified products WEAKNESSES
Structure that create high cost level compared to competition
Technology legging 1989 equipment
Policy

OPPORTUNITIES
Growth into folded paper towels
Export market growth
Economical growth THREATS
Fewer barriers of entry
Substitute products
Unfair trade practices by competitors low sheet count by small competitors
1.4 Marketing, Corporate and Business unit strategy
Corporate strategy is characterised with long-range planning, action oriented and is more specific, multipronged and integration, flexibility and dynamism, top management level formulation, resolution of complex issues. Also translates goals and objectives into realities, concerned with perceiving opportunities and threats, deployment of limited resources in the best possible manner, gives direction and coordinates functions of decision making.
Corporate strategies determines business lines, expansion and growth, vertical and horizontal integration, diversification, takeovers and mergers, new investment and divestment areas, R & D projects, and so on.
These corporate wide strategies are operational zed by divisional and functional strategies regarding product lines, production volumes, quality ranges, prices, product promotion, market penetration, purchasing sources, personnel development and like.
For Softex being a joint venture between ART and Hunyani is concerned with divisional and functional strategy. There are fewer products lines of this strong brand and this creates a competitive disadvantage. The alternative is to concentrate on creation of more house brands, development of new products for new and existing markets. Also investment into new technology reduces cost of product and improves quality. New entrant competition they bench mark with Softex being a market leader so their products are of improved quality.
Softex business is stable not highly geared however there is need to adhere to expansion strategy rather than maintaining leap service they benefited to retrenchments in the last two years. As a business it has safeguarded existing interests and strengths, and is pursuing established and tested objectives, chosen business direction. However to maintain operational efficiency on a sustained basis there is need to invest in technology, the fact that they are at 60% capacity matching market demand is immaterial since through put is achieved expensively. On the market they have consolidated the position already reached and extend to new markets locally and abroad. There is need to optimise returns on investment to increase it to 10% from 6% current and profit before tax by almost the same levels. Informal sector is left behind as a market and given our macro-environment that sector has become strong.
Softex expansion strategy is based on new products, in new markets and current markets, current products in new markets, and an investment in new technology.
There no clear strategy of diversifying as an expansion model, Acquisition or merger are not options it any the Holding company is initiating to own the business 100% from the partner Hunyani.
Softex is not innovative and there is no clear strategic decision towards that however they are reactionaries. Innovative creates opportunities and overcome growth challenges into new areas by breaking new frontiers with entrepreneurship zeal. Diversification creates growth and profitability than expansion. The current Softex facilities can be used for diversification.
2.0 MARKETING MIX
These are ideas and plans that promote a product or brand. Several concepts and ideas are combined together to formulate final strategies that makes a brand popular amongst the masses form marketing mix.
Marketing mix elements are often called the seven P’s of marketing which are product, people, physical evidence, process, place, promotion, and price.
Figure 5 Marketing Mix

2.1 Product
Toilet tissue rolls, paper towel, serviettes, sanitary pads, baby diapers and household hygiene chemical are the products Softex Tissue Products distribute on the market. The plan is to introduce folded paper towels, and industrial chemicals.
All products are tangible. In this case the plan to introduce industrial chemicals with increased revenue and create good diversification model. There are tangible and intangible products. There is need to divestfy into cleaning services which is an industry that is related to their skills
2.2 Price
Most Softex products are low value except white virgin toilet tissue rolls where the charge a premium skimming on this product is driven by fair trade movement of consumer taste and Nurse is a fighter brand sold at breakeven price. Tissue is not a need but a want so price is critical on the lower market segment..
2.3 Place
Softex markets are retail stores and wholesalers. There is a neglect of the informal sector and independent shops. Zimbabwean market has changed but Softex remained in the main stream alone losing business in the industrial sector.
2.4 Promotion
Various strategies and ideas are implemented by the marketing section to make the end – users aware of their brand and this includes in-store promotion, participation in promotional competitions such as OK Grand Challenge and TM 4Bs.
Promotion can be through advertising and word of mouth. For Softex, they do not take advantages of advertisement in various advertising houses to strategically position their products. They spend only 1% of turnover on brand promotion which is not good enough. It is recommended to spend 3% of business turnover on brands promotion. There is no radio, television, billboards or any other besides in-store promotions.
Softex has no clear strategy on adverting hence this with enhance brand awareness if strategically implemented. This can stimulates buyer interest and stimulates purchase
.
2.5 People
Sales personnel and buyers of products are critical people on marketing strategy. Positive attitude, active skilled staff and trained staff stimulate purchases. Softex has skilled motivated sales team.
2.6 Process
Process includes the various mechanisms and procedures which help the product to finally reach its target market Strategic partnerships, licensing, quick service, customised cups, customer feedback Focus on e-commerce and automated selling to reduce staff numbers Limited advertising on radio ; tv, personal selling, PR, sales promotions, loyalty card, use of social media, free samples Intensify advertising, digital marketing
2.7 Physical Evidence
With the help of physical evidence, a marketer tries to communicate the benefits of a product to the end users. Attractive packaging and good quality products help influence buyers Softex has maintain current logo fixtures to drive product ambience
3.0 Customers
3.1 Customer Need Identification
There is need to have deep business knowledge from your customer’s point of view in order to be able to service them profitably. There is need for justification why people should by form Softex and not competition (Booggoard, 2013). There is no customer feedback strategy at Softex except customer complaints.
Softex targets mass market through OKs, TMs, N Richards, Metropeach and other wholesaler and supermarkets across the country. They have partnership with most of e retailers.
With correct customer feedback Softex could retain critical consumers. There is no critical customer identification and retention strategy. Attention is made to big order book customers ignoring small players and end users for a consumer product.
Softex play where there is low risk and less servicing cost which have created a vacuum now being filled by completion. Softex does not play in small towns, growth points and informal sector.
A customer testimonial, through communications creates major accomplishments that do not exist at Softex. This information is critical in identification of old customers and create new customer base.
Product knowledge is key in customer profiling to influences their buying decisions. Knowledge is power. Sofetx has correct knowledge of traditional products but is short of the new hygiene products
3.2 Customer satisfaction
Another steering control is customer satisfaction. Companies that perform high on Customer Satisfaction Index (CSI), have higher stock returns and better cash flows than do those companies that score low on the CSI (Wheelen, 2012). CSI isnot being measured at Softex. Satisfied customers create repeat business.
By establishing appropriate expectations in the customers’ minds is a function of the pre-purchase communications the seller has with them. Satisfied customers will spread to friends positive word of mouth friends and family members.
Customer satisfaction must be measured through customer satisfaction surveys based on measuring parameters that include customer expectations and organization performance in meeting expectations and degree of satisfaction. Softex has no such programs.
3.3 Customer retention
Customer retention refers to activities and actions organizations take to reduce customer turnover by creating brand loyalty promotions programmes. Softex participate inOK Grand Challenge and TM 4Bs to create such loyalty.
Softex uses Facebook to connect and communicate with customers to give them a platform to share their experiences as brand ambassadors.
4.0 STRATEGY IMPLEMENTATION
Strategy is transformed into action to achieve set goals and objectives. The organization develops, utilize, and combine organizational structure, control systems, and culture to achieve competitive advantage and better performance. Softex structure does not match strategy, developed tasks and roles were overloaded to existing employees. Tasks and roles were correlated so as maximize efficiency, quality, and customer satisfaction but did not achieve the growth goal.
Control system required is in place but does not have motivational incentives for employees. Organizational values, attitudes, norms and beliefs are not shared by Softex members and groups as they are not known.
Strategy drive change hence poses a threat to most managers and employees at Softex as new power relationships are predicted and achieved. New formal and informal groups are created with not known attitudes. Confrontational behavior is prevalent at Softex.
Implementation Plan
Action Plan Who By) When Budget ($) Return ($)
Recruit an export Officer HR Manager December 2018 14000 500000
Finance marketing communication Accountant October 2018 550000 460000
Buy a new bundler and Rewinder Sales and Marketing Manager January 2019 200000 400000
Introduce industrial chemical business Sales and Marketing Manager March 2019 100000 1000000

5.0 Relationship Marketing
This is the process of establishing long-term stable relationships with stakeholdersby creating and building mutually beneficial relationships by bringing together the necessary stakeholders and resources to deliver the best possible perceived value proposition for the customer. (ABE 2008). Relationship should be built with key stakeholders such as customers, employees and business partners in order to retain their long-term preference and business. (Kotler, 2012).
Attracting a new customer may cost five times as much as retaining an existing one; hence relationship marketing also emphasizes customer retention. Companies build customer share by offering a larger variety of goods to existing customers, training employees in cross-selling and up-selling (Kotler, 2012).
Through their face book they conduct loyalty competitions where a customer who buys Softex product, take a photo and post it on the facebook won $150 price to keep them loyal. This increased facebook likes from 50000 to 150000 in a short space of time. Loyal customers are more likely to provide helpful feedback, refer the business to friends or family, and purchase future products and services (Kotler, 2012).
Softex participate annually in OK Grand Challenge and TM 4Bs promotions. The promotional strategy involves advertising, personal selling, promotions, publicity and public relations will largely depend on the nature products and services. (Hannagan, 2002). However Softex depends only on promotions and lacks the rest of the elements.
There had been high level of complacency in addressing customer quality requirements. As a manufacturer they become too lax in treatment of an intermediary by missing some factors which is indicative of underlying problems. This led to relationship breakup with Simbisa in supply of serviettes (ABE 2008).
To improve relationship with stakeholders Softens needs to offer improved quality service by training the internal sales team on customer service. Customer takes long time waiting for assistance at the support desk. Also through costomer feed back surveys they can become proactive and present brands that are user-friendly.
Think about the type of company your target audience wants to do business with, and make sure your social media identity conveys the right personality.
Email marketing could enhance easy reach to customers however they remained weak on this with their major customers such as OK Zimbabwe, TM, Foodworld and others. They could see orders flowing in by email.

6.0 Conclusions
The adoption of Growth, and Brand support, strategies was a noble idea for Softex Tissue Products. Growth strategy is based encouraging current customers to buy more but ignoring competitors’ customers (Kotler, 2012) by failing to capture industrial customers due to poor quality due packing bundler that can increase market share by 10%, informal sector can contribute another 5% and upmarket premium products. Failure to invest into new technology has led them to remain in the lower segment and failed to enjoy additional 5%.
The company has failed to tape growth through exports, new-products and diversification due to poor structure and resources that does not support the strategy. Kotler (2012) ephasises on workload approach to establish sales force size to formarket growth.
Softex has strong brands that are not being supported, they spend only 1% turnover. Build brands are not being supported through media advertising, online presence, and other techniques hence there is poor integrated marketing communication strategy.
There is not clear commitment on product quality as aged equipment led to loss of tissue market by creating a vacuum that was filled in by completion. Hannagan, (2002) stresses that investment new technology brings about considerable change in market. This includes internet order placing and support. A number of supermarkets which are their major customers like food world they already have a system in place of placing orders online.
6.0 Recommendations
It is recommended that Softex on growth strategy they should sell new products in current market, old products in new markets and grow exports through correct sales team resourcing. A 4% investment in marketing communication will improve brand image.
The organisation will increase market share by 10% should they invest in a new bundler and another 5% by introducing a new rewinder.

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