Target Market Analysis:
Demographic Characteristics of Market:
Cisco has 79,500
employees where mostly are men (67%) while this company also offer opportunities to female 16% of Cisco employees are Hispanic or Latino and half of the population is looking for something that is technology oriented. The company offered products in five areas such as Networking, security, collaboration, data center and the internet (Balyk et al. 2019). The company is targeting this company the young adults and It companies requiring the computer networking.
Cisco serves three major customers in three
target markets. These markets are large organization with complex networking needs, usually spanning multiple locations and lastly, the companies with large system (Balyk et al. 2019). In this context, the company is targeting individuals who are tech savvy or require to work with high data mining and storage capacity.
Psychological Characteristics of the Market:
The consumers in this organization exhibit Complex buying behavior. This is because when the consumer is highly involved with the purchase, especially when they are considering computer parts, selling products related to the computer (Balyk et al. 2019). The consumer able to make significant differences between brands while buying computer network and computer related parts. Hence, organizations and young adults mostly buy the products of cisco if they are cheap with high efficiency.
Behaviours of the Target Market:
The consumers only cisco products based on compact assemble of network services integrated to an operating system. In order to bring environmental sustainability, insulated winding wire of copper along with high storage capacity-based products are developed. This provides the company with the opportunity to create more-enticing products and service to the consumers (Gepner et al. 2022).
Strategies Appealing to Market:
The following strategies are appealing to the market such as
One of the United States' largest videos
provides IT products and services across five major technologies (KIM and KIM 2019)
The nature of the products offered to the consumers and innovation regarding 5G.
They offer most secured network and strategies to address security breach (Trabelsi and Saleous 2019)
Constant high-speed Internet, and phone providers to residential customers
Ability to reach adolescents
Product Strategy (Product Mix):
The company developed a range of products in their market. The common products are following:
The company offered products in five areas such as Networking, security, collaboration, data centre and the internet (Balyk et al. 2019).
They also provide wireless controllers, LAN controllers
The company provides cable and compact assembles of network services integrated services.
Pricing Strategy:
The major determinants of the price are high cost, market conditions, prices of similar products manufactured by competitor. High pricing network gateways, servers, could infrastructure platforms. Cisco network router price hovers and round ₹5000 per module (Gepner et al. 2022). As Cisco products comes with high quality and has a high brand value.
Cisco place and distribution:
Cisco has a wide global presence, which shows its strong place and distribution strategy in its marketing mix. The procedure of selling varies across segments for Cisco as each segment has different buying choices and requirement. Cisco’s sales team are always in search for big enterprises looking for network solutions (El Hilali and El Manouar 2019). For home solutions, purchases are intermittent and requires purchases of only few products.
Promotional/ Advertising Plan:
The company use promotional strategies through advertisements on its websites and use social media. The younger populations are mostly connected through social media and hence, academy publishes books relating to the current IT challenges (El Hilali and El Manouar 2019). They are partners with the engineering colleges and hence, it enables the company to expand their target market as well as promote their products.
CISCO Competitive Analysis
4Ps’ comparisons with competitors:
Different business models of the company and different services for bringing revenue.
Product:
The company not only have products like construction of cable, they also offer data centered, internet and security based on products.
Price:
Deliver a product that is better and different from the competition.
They have low price for the products compared to other competitors.
Promotion:
This company has its internal creative agency who create the promotional contents. They also have published book which focused on IT challenges (Balyk et al. 2019).
Strengths’ comparisons with competitors:
Cisco is shifting to software-centric solutions for their consumers which supported them to bring revenue. Five different segments in the products enable this company to improve revenue and have a potential competitive advantage (El Hilali and El Manouar 2019).
Weaknesses’ comparison with competitors:
Diversification becomes a need of every business for further growth. However, despite having diversification, this company have limited influence in many countries. Moreover, they have high legislative issues regarding products (Gepner et al. 2022).
Key success factors:
The common success factors are following:
Better and faster services
Industry and technological advances.
An entrepreneurial spirit
Ability of the company to reach
Cisco experienced a more than 10-fold increase in annual revenues due to LAN operating system software
Problems and Issues in Cisco Organization:
Cisco's networking solutions connect people, computing devices, and computer networks. However, currently company is experiencing issues regarding security breaching which leaked many data. Cisco has supply-chain challenges. Cisco's adjusted gross margin declined 140 basis points year over year to 65% in the first half of fiscal 2022, which started last August. The company is also have poor collaboration rate and network within the society which can affect the society. However, currently planning to alter financial and corporate strategies in order to improve revenue.
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