SWOT ANALYSIS: Threats

SWOT analysis is analyzing the strengths, weaknesses, ❖ There is a risk of company name ‘Portakabin’ being
opportunities, and threats. This analysis is undertaken generalized.
to identify future opportunities and expand the market ❖ Entry of new companies in the portable building
and identify threats that are to be faced in the future. construction industry.
SWOT ANALYSIS OF PORTAKABIN: COMPETITION ANALYSIS:
Strengths: Portakabin has a strong market in the portable building
❖ Strong brand name and brand image.
❖ Potential customers are also aware of the company’s industry in the education, childcare, hospitals, and
name and products. commercial sectors. It provides its target market the
❖ Financially company very strong benefit of customer satisfaction, value addition, on
❖ High rate of customer satisfaction 9/10 score time delivery and on budget.
❖ Known for the quality products Competitive advantages:
❖ On time and on budget promise The following are the competitive advantages of
Portakabin:
❖ Long term product and structural warranty.
❖ Good public image
❖ Market leader in portable building in U.K
❖ Customer satisfaction and good customer feedback
❖ Has a very large market share
❖ On time delivery and on budget with no extra hidden
❖ Large variety of designs
charges.
❖ Tailor made design and price to suit different customer
❖ Quick response and emergency services
needs
❖ Portakabin was the pioneering in protection warranty
❖ Strong promotional activities
❖ For the quality assurance building certifications.
❖ Large number of Portakabin hires and service center all
Competitive issues:
over U.K. ❖ Portakabin prices are comparatively high, hence faces
Weakness: price competition v No standard rates are published in
❖ Compared to competitors the price of Portakabin the website like other competitors v Faces competition
building is high from the traditional permanent building construction
❖ In case of failure to compete projects on time, companies.
Portakabin faces greatest financial losses as per its The below table displays the profit after tax and
customer charter. turnover comparison of few portable building
Opportunities: companies in U.K over the past 4 years:
❖ Portable and modular building industry is in the upturn.
❖ Portakabin can extend its business beyond the
boundaries of European countries
❖ Portakabin has many opportunities for joint ventures
and takeovers
❖ Apart from schools, hospitals, offices, portable
buildings are also used in hotels, retails, housing,
commercial and industrial field as increasing demand
for it.
 Companies 2007 2008 2009 2010
further segmented as education sector, commercial
Portakabin 17,250,00 21,503,00 20,877,00 18,774,00
0 0 0 0
sectors, commercial sectors, healthcare and hotels. The
Wernick 3,753,631 4,675,061 3,804,213 3,521,208 interconnecting units manufactured by Portakabin has
Group
facilitated in the centralized medical facility in the

Space 718,893 291,455 389,475 474,664 health care centers (Nursing mirror and midwives
Maker
group
journal, 1973).
Targeting:
Integra 0 138,085 -159,382 0
Building
Targeting is a process of prioritizing the segment
which becomes the target market for the organization.
Portakabin’s target market is business organization and
not individual buyers. Its main target market is U.K
MARKETING STRATEGY:
Market research: Portakabin being the market leader in Positioning:
Positioning refers to the process by which the company
the modular and portable building always undertakes
tries to create an image or identity in the minds of its
market research. Portakabin has two purpose of
target market for its product, brand, or organization
undertaking market research:
and thereby creating demand for its products. Including
1. Identify the reasons for being the market leader.
Positioning in the market mix shows the importance
2. To retain its position in the market
The research Portakabin shows that the customers Portakabin gives in positioning itself to customers so
prefer Portakabin products due to the high quality and as to differentiate it from its competitors. The
reliable services. The Portakabin message that Portakabin was able to sell more than 30000 buildings
accompany the brand name- “Quality- this time- next in just 20 years (British Business, 1980). Portakabin
time- every time.” Portakabin also states that “on time, turnover for the past five years is as follows:
on budget our promise”. Marketing Mix:
The marketing mix is a combination of 4 P’s -
Customer satisfaction is one of the crucial elements of
price, product, place, and promotion forms the entire
Portakabin and it uses customer satisfaction index. The
promotional campaign.
index scored 9/10. Hence Portakabin promotional
Product: It is a tangible goods or an intangible service
activities concentrated on quality and customer
that is mass produced with a specific volume of units
satisfaction.
(Ramaswamy; 2002).
STP ANALYSIS: (SEGMENTING, TARGETING,
POSITIONING) Price: Price is something paid in exchange for goods
The STP analysis is the process of analyzing the and services. The price decision depends on the
market segment, Target market and product positioning Business as such it can increase or decrease the price
in the market. based on market conditions.
Segmenting: Place: Place is where the products are bought and sold
Market segmentation means classifying the market or
or where the buyers and the sellers meet and deal their
grouping of buyers. Portakabin segments the market
products and services. It is often referred to as the
based on type of customer it serves. The two board
distribution channel. It includes physical stores and
segments are business to customers and business to
also sale internet.
business. Within business-to-business segment it has
Promotion: It includes all the techniques a marketer · Duplex.
undertakes to sell his products. Business uses different It is a cost-effective modular building system for hire.
· Ultima:
ways of communication to promote its product. Some Accommodate up to 1,000 people - or more - in
of these are advertising, public relation, personal spacious, welcoming surroundings.
· Ultima Vision
selling and sales.
· Classrooms.
The Marketing Mix of Portakabin: Attractive classroom block featuring two spacious
As discussed above the marketing mix or the balance 64m2 classrooms.
of elements needed for effective marketing was · Titan
At up to 67m2, Titan is Europe's largest self-contained
considered as 'four Ps' such as Product, Price, portable building
Promotion and Place. · Solus
Contemporary, attractive, plug-in-and-go office space
Portakabin has added a fifth 'P' to this mix with
for up to 6 people
'Positioning'.
· Solus Energy Saver
Positioning Mix:
Stand-alone, ready-to-use office space designed to help you
Positioning refers to the process by which the company
cut energy · Pacemaker
tries to create an image or identity in the minds of its
Great-value portable building for up to six people -
target market for its product, brand, or organization
delivered ready for instant use</STRO...< span>
and thereby creating demand for its products. Including
· Pullman
Positioning in the market mix shows the importance
Spacious, cost-effective stand-alone building available to
Portakabin gives in positioning itself to customers to
hire - for up to 15 people · Titan Solar
differentiate it from its competitors. It is closely linked
Energy saving self-contained office space
to its Unique Selling Point (USP). Portakabin was · Arkive
successful in positioning the brand at the top end of Secure, fire-rated file storage for hire - offering 39%
more space
the market by providing high quality buildings and · Portastor
quality services to its customers. This leads to giving Solid steel, secure storage units available in a range of
sizes
customers added value in terms of confidence and
Portaloo - Toilets Showers and Changing Rooms
peace of mind. The Portakabin Customer Charter Building Systems
promises on time delivery and on budget completion of · Showers
Attractive, well-equipped buildings fitted with high-
the work.
performance showers
Product Mix:
Portakabin has a verity of products. The products are Disabled Facilities
Premium-standard, easily accessible toilet and
tailor made to suit the customer’s needs. The shower facilities
Portakabin Decant School provides a total Natural
Purpose-designed natural position toilets for multi-
accommodation solution designed to enable a school to
faith users
transfer with minimum disruption. The main products · Changing Rooms
of Portakabin are: Shower and changing room buildings for team and
individual sports
Modular Building Systems Junior
Colorful, welcoming specially designed for primary
· Lilliput Nurseries: school children’s.
Lilliput Nursery is bright, stimulating and safe NEW two team changing rooms
building system. It is specifically designed building New large high quality two team changing rooms
 quote. Since the size of the site and the individual
Toilet Blocks preferences of the customers differ Portakabin does not
Bright, welcoming toilet buildings fitted
display a standard price in its web site.
out to domestic standards Events Buildings Building
Place Mix:
Systems
Place is where the products can be bought by the
customers or the distribution channel that Portakabin
· Showers
Domestic-standard energy-saving showers for any uses to reach its customers. Portakabin is a business-to
location business (B2B) operation and has 45 hire centers
· Sheepskin
across the UK. The entire customer in UK can reach
Self-contained, en-suite, single occupancy bedrooms for
Portakabin within one-hour drive. Hence Service teams
site-based staff
are also close to customers so can resolve issues
· Ticket Offices
High-security, multi-window buildings for fast, quickly. Portakabin operates in more than five
efficient ticket sales countries and has a place of business in UK, Ireland,
· Vaclav
Award winning toilets that cut water and waste by France, Belgium and Holland.
90% Promotion Mix:
· Toilets The promotion mix of Portakabin includes both above-
Robust, hygienic and efficient portable toilets to cater
the-line and below-the-line methods. Promotion is a
for all your visitors, guests and staff
vital element in the Portakabin marketing mix. The
· Luxe Toilets
promotional methods in Portakabin aim at sending
Luxe toilets – exceed your VIP's expectations
· Single Plastic Units positive messages to its existing and the potential
Efficient, durable units for the busiest events customers. This is done to make sure that the
· Events Facilities Buildings
High quality facilities for any application companies brand message of quality and the customer
· Wheeled Toilet units satisfaction is retained. Above-the-line promotional
Facilities for the most remote and difficult to access
activities involve paid-for advertising through targeted
locations
channels such as trade magazines. Below-the-line
Price Mix: promotion methods of promotional activities include
Portakabin buildings prices are set considering the
direct mail, public relations, and open days. Portakabin
competition level. These prices may sometimes be
website is also a point of promotion as it provides the
higher than rivals to reflect the better quality of
customers immediate access to the scale and capability
building and service that are offered by the company.
of Portakabin product and services. It also helps is
Due to its high quality, support services, Customer
making buying decisions as the website provides
Charter and on time delivery Portakabin was able to
detailed information and product images.
charge premium price for its premium service.
When Portakabin launched Decant School product, it
Portakabin buildings are offered at a clear and accurate
targeted local education authorities (LEAs) and
price. The size and design of the building does not
education contractors. To reach them Portakabin used
matter, Portakabin offer its buildings to customers at
both above-the-line and the below-the-line promotion
the agreed price without any hidden extra charges.
methods. One of the above-the-line methods was to
Portakabin visit all customers and fully assess their site
place a double-page spread advertisement in relevant
and quickly provide its customers with a clear, accurate
 education and construction magazines. Below-the-line method is mainly used in case of business to consumer
promotion methods used were: market. In case of business to consumer market, the
1. Direct mail: This was a letter that had a printed leaflet promoter has to reach a large number of customers.
displaying the decant school complex. Portakabin target market is Business to Business
2. Promotional emails: The Promotional emails were sent Market. Hence above-the-line promotion methods are
to the key database of prospects. not an ideal method. But in certain cases, like a group
3. Public Relations: the press releases were also used to of business has to be targeted. The reasons for
promote this product in the appropriate education and Portacabin employing above-the line promotion
construction publications. methods are:
4. Portakabin website included an additional targeted web a. Above-the-line methods mainly create brand
page to support the campaign. awareness. Portakabin has high brand awareness and
5. The stages of a project video were displayed in the need not create it.
Portakabin website and on
b. Television & Radio advertisements are very expensive.
YouTube videos.
c. As the above-the-line method targets mass audience it
6. Portakabin hire centers organized Special school open
is difficult to measure responses.
days to demonstrate decant school complex.
Questions: d. These methods are mainly aimed at consumers and not
the businesses.
A. What are the main aims of promotion for
Portakabin? e. To maintain a differential promotional method from
Portacabins the market leader in modular & portable that of its competitors.
f. To use above-the-line promotion method only in case
building construction in UK. Its objective of
of necessity like when group of businesses like
promotional activities is to spread a positive message
educational Institutions or healthcare are to be targeted.
about the company to its existing as well as the
In such case, articles and advertisements are placed in
potential customers. Promotional activities are
the trade journals.
undertaken for the purpose of increasing market share,
Due to the above reasons, Portakabin depend mainly on
for widening the customer base and also to increase the
below-the-line promotional methods.
number of repeat purchases. Thus, the two main aims
C. Explain below-the-line promotion. Why is this used
of Portakabin promotional campaigns are:
more often by Portakabin?
a. To spread its brand message of quality products and
customer satisfaction. Below-the-line promotion method is the use of a wide
b. To generate enquiry about the products and to increase range of promotional methods over which the business
sales. has direct control and can be targeted at a group of
B. Why does Portakabin not employ many above-the-
customers. Below-the-line method is more suitable for
line promotion methods?
Business-to-Business market. The sales promotion
Above-the-line promotion method is the use of
activities offered by Portakabin to its customers
advertising methods like Television, Radio,
newspapers, magazines, cinema & posters to reach the Types of Below-the-line promotion method:
mass audience. This method of promotion reaches
many consumers and creates general awareness about ➢ Direct Mail
the brand or a company. Above-the-line promotion ➢ Sponsorship
 involve value-based benefits such as adding free air Under this method, the customers are offered
conditioning to a building. incentives to encourage them to buy companies goods
➢ Charitable Donations and services. In case of business to customer markets,
➢ Public relations the following are the sales promotion methods:
➢ Sales promotions or merchandising
· Offers such as buy one get one free
➢ Press Releases
· Price discounts
1. Direct Mail:
· Offers to win certain cash prizes or a holiday trip.
Under this method, the business organization sends
· Give always.
mails directly with the sales messages to its target In case of Business-to-Business market, the following
customers. This enables the company to maintain are the sales promotion incentives:
personal contact with the customers and can maintain · Value based benefits
brand awareness. · Increases sales
· Creates good image about the company
Portakabin uses this method by sending brochures & 6. Public Relation:
leaflets to its existing customers from the database.
Under this method, the company communicates with
Advantages:
a. Easy to measure response the outside worlds such as customers, shareholders,
b. Fast follow-up of enquiries creditors, government and the public.
c. Inexpensive method
2. Sponsorship: Advantages:
Sponsorship is one of the promotional methods where
the large companies’ finances events such as Olympics · Inexpensive method
or cricket and during the event they promote their · It leads to favorable publicity
brand name. 7. New media:
3. Charitable donations: The use of modern technology like computers &
Some business organizations directly donate funds for
internet to promote a product on a company is called
charity and others participate in the fund-raising
new media.
activities for some charitable purposes such as flood
Portakabin uses its website and Google search to
relief or children in need. promote its products.
Advantage: Advantages:
· It is very fast and more effective.
· Less expensive
▪ Displayed before large television audiences The reasons for the use of below-the-line promotion
methods by Portakabin:
▪ Creates brand awareness.
a. The use of direct mails is an inexpensive method of
4. Press Releases: promotion.
b. Direct Mail is also an easy way of promoting to the
In case of certain special events or operations
existing customers as their contacts already exists.
companies’ issues news about it to the press. This
might later on appear in the television news and c. It helps in measuring responses.
d. This method helps in follow up enquiries.
newspapers. e. It targets a specific group of customers and not mass
Portakabin issued press release about the nursery audience.
accommodation at a hospital in Salford and incubator f. This promotion method can be custom made to target a
specific group.
unit at Pap worth hospital in Cambridge shire.
5. Sales promotion:
D. What are the main ways in which Portakabin · Response rate helps in assessing whether the promotional
evaluates its promotional effort? Why is this campaign worth investment.
important activity? · Response rate also helps in rating which campaign
The purpose of any promotional activity is to was most effective.
· Return on Investment calculation helps in identifying
promote a product or a company and to motivate the
whether the campaign was effective, and the cash
customers to buy the product. Hence generating sales
generated from the promotional campaign.
is the aim of every promotional activity. Portakabin to
· Evaluating promotion helps in future promotional
increase the sales and to generate enquiries. decisions.
Portakabin evaluates its promotional campaign in
CONCLUSION:
terms of enquiries generated by each campaign.
Portakabin is one of the leading modular and portable
Portakabin considers two factors:
building construction companies. It has been in this
· Response rate
business for 50 years. Based on the past experiences
· Return on Investment (ROI) and market research Portakabin was able to implement
an effective promotion method.
Response rate:
Since Portakabin’s target market is Business to
Response rate is calculated by recording the number of
Business and not Business to Customers. It
enquiries during and after a campaign. Since each
concentrates more on below-the-line promotion.
campaign has a code, it is possible to identify which
Above the line promotion and sales promotion are not
campaign has generated each enquiry and response.
much use to Portakabin. Hence Portakabin investment
Return on Investment:
in the television radio, newspaper advertisements are
The return on investment is calculated based on the
very limited.
sale value of orders and the cost of promotion
Portakabin uses below-the-line promotion methods like
campaign. This helps in identifying the return from
direct mails, newsletters, company websites and certain
each promotional campaign and the most effective
trade magazines.
campaign. The formula for calculating return on
This method of promotion has helped Portakabin to
Investment is:
evaluate it promotional efforts and also to reach out to
Importance of evaluating promotional activities: its target customers.
By evaluating promotional activities, Portakabin has
the following benefits:

Sale value of orders

100
Cost of Promotion