Effectiveness of Direct Mail on Cigarette Vending Industry

Effectiveness of Direct Mail on Cigarette Vending Industry The Effectiveness of Direct Mail on the Cigarette Vending Industry in the United Kingdom Irrespective of the mode and methods adopted for marketing, including direct mail, the cigarette vending industry continues to prosper not only in the United Kingdom, but also across the world. At the same time there is a continuous rise in the spread of a number of diseases directly related with smoking including chronic respiratory diseases, cardiovascular diseases and various types of cancers in turn leading to increased death rates amongst the smoking populations. One of the major causes of premature deaths in developing countries, the figures for United Kingdom alone show that approximately 120,000 individuals die every year from diseases directly related to smoking, which is an alarming 20 present of all deaths in a given year. A similar study on smoking also revealed that cancer alone accounts for nearly a third of all deaths from smoking, and another one sixth die from other causes related to smoking. Figures for the younger generation entering the smoking populations of the United Kingdom showed that there was a gradual rise between the years 1988 and 1997,and a somewhat similar rise in the figures amongst adult smoking populations. Marketing departments of cigarette manufacturing companies around the world would least care that an individual smoking cigarette on a regular basis more than doubles the risk of dying before he or she reaches the age of 65. If there is any consolation for these companies adopting various lucrative direct mail strategies for vending and marketing cigarettes, smoking by pregnant women have been found to result in severe repercussions for the foetus as well as new born baby. These include an increased risk of miscarriage, reduced birth weight and potential for prenatal deaths. In similar context, parents who continue to smoke after pregnancy invite increased chances of sudden death syndrome in their infants. The following dissertation will however limit its discussions and studies, and present its findings on the effectiveness of direct mail in the cigarette vending industry of the United Kingdom. (DOH, 1998) Introduction One of the most widely accepted facts and one that has been proven beyond any doubt is that smoking poses a number of health risks. In addition smokers are more than likely to contract certain diseases in comparison to those who do not smoke at all. It is also a fact that smoking is largely accepted as an addictive habit, and with the passage of time, and advances in the study of and implications of smoking alto openly reveal that today it is not merely an addictive habit; on the contrary it is a collection of human behaviours which also includes smoking. It must also be borne in mind that since it is an addiction, and for some indeed a very strong habit, it is wrong to assume that this habit cannot be given up. In fact, there have been numerous cases where individuals have totally given up smoking. It is precisely this line of approach that has made major cigarette manufacturers to print health warning instructions on all their respective packs of cigarettes. Furthermore, majority of the cigarette manufacturing companies around the world, including those of the United Kingdom comply with requisite regulations and legislations with respect of marketing, advertisement and sales of cigarettes. There are also companies, which have their own pack labelling policies, which go beyond the requisite legislation of the respective host country. It is perhaps this lapse, if one may wish to call it, which has allowed majority of cigarette manufacturing companies to guise their marketing, promotion, advertising and selling policies into a philosophy which acknowledges the right of the adult populations to smoke, and consequently respect and protect that particular right. (Pierce et al,1998; Beemer and Siegel, 2000; Safer and Chaloupka, 1999; Anderson etal, 2002; Slade, 2001; Lewis and Littler, 1999) In pursuance of the rights of the smokers, cigarette manufacturing companies also stand against any excessive price regulations and tax measures which are presumably aimed at reducing demand for cigarettes. An independent view of a number of tax and price measures levied by various countries including the United Kingdom reveal that the smoking populations are unduly punished for the pleasure of smoking, and governments largely fail to take into account the huge sums generated from revenues on the various taxes levied on cigarettes. These high rates of taxes levied on cigarettes then results in the illegal and often illicit trade of smuggling cigarettes in turn undermining the legitimate market for cigarette companies running and operating under legal channels of business. A brief on the United Kingdoms cigarette industry reveals that 1 in every 5 cigarettes is smuggled into the country, which adds to a huge20 present of the entire cigarette industry of United Kingdom. In similar context is the call for a ban on the sale of duty free cigarettes, as the primary objective behind the promotion of duty free sale of cigarettes, or for that matter any other product is reduction in illicit trade of that particular item. A ban on the duty free sale of cigarettes would practically jeopardize the regulated duty free retail of that product, and at the same time have a minimal effect on the sale of cigarettes. On the contrary a ban on the duty free sale of cigarettes would simply bring about a shift in the market of cigarettes from a duty free environment to one that is largely controlled by domestic market. Another related aspect of the cigarette vending industry is that of various standards and policies which are aimed at raising awareness about the potential health risks associated with smoking. Trade zones such as those found in European Union for example are ample grounds for such standards and policies to be levied, which in turn allow for uniform results as well as derive common interests amongst the respective countries. The non-smoking segment of the populations is yet another vital area of focus for cigarette manufacturing companies. As also a public health issue, the non-smokers are prone to, and thus demand protective measures from passive smoking. In this respect, there exist two schools of thought; one that disregards any findings and conclusions, which present cigarette smoke as a potential health hazard for non-smokers. This group though acknowledges that cigarette smoke is indeed a source of annoyance as well as one of the causes of environmental pollution. Yet, they also call for an approach based on simple logic and common sense and co-operation. While the second school of thought, such as M/Gallaher, one of the major cigarette manufacturing and marketing companies in the UK, contend that government initiatives including the â€Å"Air Quality program are viable and productive programs to address vital public smoking issues. Literature Reviews There have a number of writings and case studies, which prove the effectiveness of direct mail on the cigarette vending industry,. These writings and studies have convincingly proven that direct mail has had positive affect and its influences have directly contributed to the rise in cigarette sales, in turn promoting the cigarette vending industry in general. Thus, it would not be wrong to state, as also proven from the following case studies, that the direct mail strategy in the cigarette vending industry has proven to affect smoking initiation as well as consumption. A brief historical perspective also reveals that cigarette manufacturing companies the world over have significantly changed their focus from the traditional advertising tithe use of techniques which emphasize on developing as well as maintaining a relationship with individual customers. Direct mail through direct communication thus offers cigarette-vending industry source of generating sales including obtaining measurable response in related areas of marketing. (Pierce et al, 1998; Beemer and Siegel,2000; Safer and Chaloupka, 1999; Anderson et al, 2002; Slade, 2001;Lewis and Littler, 1999) One of the most effective techniques, and perhaps one of the oldest as well, is that of utilizing mailing list of individuals maintained by major and minor cigarette vending companies alike. It is this list of individuals or customers, which serves as the potential for direct mail for cigarette vending industry. This list is also used for the distribution of coupons, sweepstakes offers, and brand-loyalty programme catalogues. Also included in the items distributed through direct mail are event announcements sponsored by the cigarette vending industry, and magazines published by major tobacco manufacturing companies. Practically all these items which are sent to individuals using the direct mail system contain activities and feature images which serve a two-fold purpose. First, these promotional items are designed in such a manner to make emotional appeals to customers. Second, they serve to strengthen, rather reinforce the existing images of the various brands of cigarettes in the market. There are different modes of collecting such list of individuals, which includes events that are sponsored by the cigarette industry, sweepstake forms, signed coupons as well as brand-loyalty program orders. These listings more often than not include some form of a response mechanism, which invites recipients to fill out surveys for example, or mention their lifestyle preferences. A statistic covering the US cigarette industry with particular reference to the role of direct mail reveals that there has been general rising trend in the use of direct mail in the United States. Brief on the 6 largest US cigarette manufacturers showed that they collectively spend a staggering amount of US 133.9 million dollars on direct mail in 2001. This was an increase of 131.8 present from the figures of 1998. One may note that these huge figures do not include sums spent on coupons or specialty items distributed through the mail system. (USFTC, 2002) A survey carried out by a team of doctors at the University of Medicine and Dentistry of New Jersey, in the United States provided for results which convincingly proved that direct mail in the cigarette vending industry not only enhanced initiation, but effectively raised the chances for potential smokers. This survey comprised of some 3900adults, and primarily focused on the answer to 3 questions. (University of Medicine and Dentistry NJ, 2002; SUDAAN, 2001) Questionnaire for the Survey Did any of the participant receive direct mail from a tobacco company within the last 6 months, including magazines, coupons, or catalogues. Did any of the participants use a coupon to buy cigarettes. Did any of the participants save any UPC codes, or tokens from any brand-loyalty programmes of a tobacco manufacturer. Results of the Survey The results of the above questionnaire from the selected adult participants showed that the current range of smoking populations were4 to 5 times more likely to have received direct mail within the past 6months as compared to those who had never smoked before or were belonged to the former smoking community. Second, the survey showed that smokers who had quit smoking in the last 12 months were 2 to 4 times more likely to receive direct mail as compared to those who had never smoked or those who belonged to the former smoking community. The survey also revealed that the white populations as compared to other groups of populations topped the list of individuals receiving direct mail offers for cigarettes or related material in aid of marketing for a given brand of cigarette. The use of coupons was found to be the highest amongst the female smoking community, white adults as well as those falling within the age group of 25 and 64 years. Similarly, saving for programs such as brand-reward programs was also found to be highest amongst current population of smokers, white segment of the population as well as the those falling within the age bracket of 18 and 24 years. Discussion on the Findings and Literature Review The above findings significantly provided evidence that direct mail served to increase the consumption of cigarettes, and subsequently ‘impede cessation. The said survey also found that coupons delivered through the direct mail to individuals were originally designed to bring about a reduction in prices of cigarettes, as well as simultaneously offset the impact of rise in taxes and other control measures levied by respective authorities. It was also found that programs offered through direct mail, such as brand-loyalty programs were intended to reward and encourage smokers through offer for additional purchases. The survey also revealed that direct mail marketing for cigarettes was originally designed to restrict switching of brands amongst customers. However, this strategy was only cover-up, and instead such direct mail offers allowed and in fact assisted smokers to continue smoking. The above literature review and survey on the role of direct mail on the cigarette vending industry shows numerous legislations, public campaigns against smoking, proven addictive behaviours resulting in serious health repercussions and rising awareness levels against thrill effects of smoking all have somewhat forced cigarette manufacturing companies the world over to adopt direct mail strategies. These direct mail strategies not only provide smokers with appealing and inviting messages; they move a step further and offer rewards for smoking. Direct mail also offers an excellent mode of communicating directly with customers, which is all too easily disguised and more than hidden from the piercing scrutiny of the public health community. It is also an effective strategy against rising restrictions on the different and traditional modes of advertising. In this respect a direct mail marketing plan of the world renowned Philip Morris also notes that direct mail is indeed one of the infl uencing factors in the use and consumption of cigarettes. (Slade, 2001; Strategic Plan, 1995) The above literature review and survey also reveals though direct mail is only one of the many marketing techniques adopted by cigarette vending industry, it is undoubtedly one which is witnessing continuous growth pattern, and one that is likely to grow in the future as well. The use of direct mail strategy is all the more worthy of concern as the cigarette vending industry is witnessed to continually change its marketing strategies in response to rising set of legislations and public opinion. It also a proven fact that practically all those involved in cigarette vending industry pursue a marketing strategy with a singular objective; one which aims to encourage initiation and consumption in smoking cigarettes. To curb such efforts, and to bring about a control for restricting such marketing strategies including direct mail, there is an ever-demanding need to fully comprehend marketing tactics utilized by cigarette vending industry. Included in these efforts is removal of the names of the individuals from the list maintained by cigarette vending industry by the smokers themselves as they decide to quit smoking. The exposure of probable intent on the part of cigarette vending industry and possible effects of such direct mail strategies along with measures, which serve as potential triggers, such as the presence of ashtrays, should also be taken into account. (Fiore et al, 2000; King, 2001) 2nd Literature Review In continuation with our dissertation on the effectiveness of direct mail on the cigarette vending industry, yet another research carried out by Lynn McFadden of the University of Strathclyde and published in the British Medical Journal issue of March 2001 is presented here. This research uncovers young peoples awareness about marketing strategies adopted by cigarette vending industry and their involvement and association with their smoking behaviours. One of the most successful methods of direct mail marketing is one, which is carried out at the point of sale. It is the venue of point of sale where a number of cigarette vending industrialists tend to focus, as also evident in the research findings of the University of Strathclyde. The research comprised of some 629 young people, aged between the ages of 15 and 16, and all of who had opted to be a part of the research through a postal consent procedure. The focus of the research, as also stated in the preceding lines waste examination of young peoples awareness of and involvement with cigarette marketing. The research also sought to determine the level of association, if any, amongst the group of young people between the level of awareness and the their smoking behaviours. The overall findings of the above research comprising of young people revealed an extra-ordinary high level of awareness and equally high levels of involvement of young people in the marketing strategies of cigarette vending industry. Out of the 629 participants involved in the research, some 95 present of them were more than aware of the various advertising techniques utilized by the cigarette vending industry, as also aware of the various methods utilized in the point of sale marketing. Thus, both the aspects, those of awareness and involvement with cigarette vending industry were strongly found to be related with being a smoker. This was more than proven from the statistics derived in the said research. For example out of the group of some 185 participants, 55 or a huge 30 present of the research participants admitted that they had received free gifts through coupons attached with the cigarette packs. A comparison with non-smoking community showed that only 11 present or 21 out of 199 participants had received fee gifts through coupons in the cigarette packs. Furthermore, it was also revealed in the same set of researches that aside from the awareness element about coupon schemes, participates were also equally aware about brand stretching and tobacco marketing, all of which were linked in some way or the other with their smoking habits. (DOH, 1992;Atiken et al, 1987; Led with, 1984; Charlton et al, 1997; Altman et al,1996; Aitken et al, 1991) The above research thus concluded the young populations aged 15 and16 were not only fully aware on the various aspects of cigarette marketing including direct mail and marketing at the point of sales; they were also more than associated with the different cigarette vending industries in the marketing of cigarettes and both the awareness and involvement in the marketing were linked with their smoking status and habits. These findings also called for a more stringent set of statutory legislations, as compared to the otherwise voluntary regulations which are primarily designed to protect these teenagers, and which have become somewhat ineffective. Other findings from the above carried out researches revealed and established the fact that the role of the mass media in advertising encouraged smoking amongst the younger populations. From a purely economics perspective, the same findings showed that expenditure on advertising pointed towards an increase in the prevalence, while a drop in the expenditures on advertising resulted in the subsequent drop in the prevalence of cigarette consumption, thereby proving a direct relationship between advertising and consumption of cigarettes. These studies focusing on the younger population showed that teenagers smoking cigarettes are more likely to appreciate as also be aware of the tobacco and cigarette advertising related sponsorships, merchandising and vending. In line with such studies, other cohort studies on the same segment of teenage smoking populations resulted in similar results and furthermore predicted a tendency of future smoking behaviours amongst the researched populations. (DOH, 1992; Aitken et al,1987; Led with, 1984; Charlton et al, 1997; Altman et al, 1996; Aitken al, 1991) A similar experiment involving some 2400 teenagers all aged a 15years, yet only differentiated by sex and postal addresses were taken for a research project from an area in the North of England. These teenagers were invited to participate in the research programme after due consent from their parents/guardians with the primary objective of deriving some 280 smokers from the total lot of participants. With response rate of more than 48 present, some 1062 responded to the call for invitation and studies carried out from the set of questionnaires mailed to each participant along with the consent form. The results obtained from the 1062 participant teenagers (all aged15 years) showed that one in every 5 teenager was involved in smoking,214 teenagers or 20 present of the respondents were regular smokers,825 or a huge 78 present not regular smokers, while 23 respondents or 2percent of the total respondents declined to divulge their smoking status. In continuation with the studies on the teenage smoking population, a random number of 373 respondents were gradually removed from the research list, as they were not regular smokers. The removal of these selected respondents further narrowed the research to those who were in the habit of, or were involved in smoking cigarettes. The number of respondents was now brought down from 1062, as also stated in the opening lines of these paragraphs, to 686 candidates only. These 686 teenage candidates were then interviewed through a team of professional interviewers, who were in turn instructed to make at least4 clear attempts to gain positive research results. The interviewers were not given any prior information as the status of smoking habits of the interviewed candidates so as to derive a transparent set of findings. Here too, the permission of the parents/guardians was sought prior to the interview, as well as a 5-Pound gift voucher was also handed to each candidate. In carrying out the above research 629 out of the total 686respondents were successfully interviewed. Those who were left out did so due to the passage of time, as by the time the research was concluded, the respondents had entered their 16th year, whereas the entire team of research candidates belonged to the 15 year old age bracket only. Each of the candidates was given two sets of questionnaires; one included a face to face interview with the teenage candidate, while the candidate in the presence of their guardians/parents filled out the second questionnaire. One may note that there was no influence of the parents presence on the part of the respondent teenagers. Each of the questionnaires resulted in the awareness, as well as the involvement of the candidates with the different techniques used in the marketing by the cigarette vending industry including direct mail marketing. The findings of the research revealed the smoking habits/status of the teenage candidates, their future intentions for smoking, education levels, and smoking by their peers, siblings, and whether their parents smoked or not. (DOH, 1992;Atiken et al, 1987; Led with, 1984; Charlton et al, 1997; Altman et al,1996; Aitken et al, 1991) A detailed analysis of the awareness element of the teenage group interviewed showed that in comparison to the non-smoking teenage population, those who smoked cigarettes were more than aware of practically all forms of marketing techniques including direct mail marketing. Information from the respondents showed that teenagers involved in smoking were also fully aware of the different types, but also knew about advertisements in magazines, newspapers, special price schemes, and offers for cigarettes. In addition, majority of the smoking teenage population had witnessed advertising on billboards, where more than fifty present of those interviewed had read about some form of cigarette marketing in the press. Also included were advertisements and marketing at point of sales, coupon schemes, and special price offers for cigarettes. Other findings from the research of the 15 year old teenagers revealed that 20 present of the said teenage population had witnessed some form of brand stretching, which included clothing or other items with logos of famous brands of cigarettes, new pack designs, the different and attractive nature and size of the cigarettes, free gifts offered through cigarettes, competitions, and watching famous personalities smoking in films and on television. Though at a lower level, there was awareness on the various promotional mails from cigarette vending industry, distribution of free cigarettes, and to some extent from the network, or the Internet. Thus, it was observed that young smokers were more than fully aware of practically all forms of cigarette marketing techniques including direct mail, in comparison to non-smokers or those who had tried to join the smoking populations. The awareness on the marketing aspect on the part of the teenage populations was more noticeable where free gifts, special price offers, promotional mail, and newer forms of cigarette packs and designs. Marketing of Cigarettes and Role of Teenagers As also stated in the above researched teenage smoking group, there was significant evidence to suggest the involvement and role of teenagers in the marketing of cigarettes including both direct mail and coupon schemes. It was also revealed there was little difference amongst male and female teenagers both of who participated somewhat equally in the marketing of cigarettes. A statistical break-up of the smoking teenager population and the non-smoking teenagers showed that more than fifty present of the smoking populations amongst the teenagers had willingly participated in one or other form of marketing for cigarette companies. In comparison, some 25 present of non-smokers and those who had tried smoking had also participated in some form of marketing for cigarettes. The above research on the teenage smoking population also showed that some 33 present of those interviewed had received free gifts through coupons schemes; another 25 present were in receipt of the special price offers for cigarettes, and a smaller 10 present of the teenage population had received free gifts through direct mail schemes at events organized by the cigarette vending company or received the same through promotional mail schemes. The above findings thus conclusively show that there is a more than strong relationship between awareness of each cigarette marketing technique and current smoking status while variable linked with teenage smoking are held constant. In particular, the awareness of coupon schemes and brand stretching are one way or the other linked to the enhanced probability of the individual being a current smoker, as also with having friends who smoke, siblings, or either parent being smoker. In this study, having friends as smokers was found to be a great influencing factor with the individual being a current smoker. The number of marketing techniques also varied and left a positive mark on the current smoking status and habit of the teenagers interviewed. Hereto, the presence of a close friend, either parent, or siblings was directly associated with an enhanced probability factor for a current smoker. A break up of the different marketing techniques to which the teenage populations are exposed show that package design or price promotion account for a larger exposure, as compared for example brand stretching and shop advertising, the latter of which had little or no effect on the teenage segment of the smoking population. In spite of the above findings, a common factor to emerge was that the young populations was observed to receive some form of benefit, reward, or reassurance from either of the cigarette vending industries; hence a reinforcement of smoking habits, or promotion of smoking amongst the teenage populations. These research more than confirms the need for a stronger set of legislation and laws. The research also calls for an equally tighter set of controls on the marketing techniques adopted by the cigarette vending industries across the United Kingdom. It also proves that the current voluntary form of regulations primarily designed to protect would be smokers, new smokers, and in particular teenage and younger populations are failing, and there is a greater and crucial need for revision of the same. The British Tobacco Advertising and Promotion Bill should be so designed to comprehensively ban some of the most famous forms of marketing such as coupon and brand stretching; the ban should move a step further and outlaw practically all forms and modes of marketing by the cigarette vending industry. Laws, Regulations and Loopholes Exploited by the Cigarette Vending Industry by Marketing/Promotion of Cigarettes This section of the dissertation will address some of the applicable laws and regulations presently levied in the United Kingdom as well as through the directives of the European Union for all member states respectively. It will also take into account the various loopholes and exploiting measures employed by the cigarette vending industry, as they bypass or practically ignore effective regulations to promote the sale of cigarettes, including various forms of direct mail, as also the subject of our above dissertation. One of the first sets of regulations is the European Union Directive98/43/EC, which was duly accepted as a law as of 30th July 1998. Theseus Directive specifically called for minimal tobacco advertising inside the shops. Though the directive contains a summary and overview of the measures and timetable for the implementation of the directive, the salient feature of this directive calls for member government of the European Union including United Kingdom to ban all forms of commercial communication as well as sponsorships, both of which primarily aim actor influence the promotion of tobacco products. An overview of the above said directive shows that though this covers vast area of advertising, and is largely utilized by the cigarette/tobacco vending industry to promote their respective products; the objective of the directive is to bring a halt to the transfer or changeover of promotion techniques used in the marketing of cigarettes. However, the same directive is all too easily exploited through loopholes and exemptions such as those enjoyed by the sellers of tobacco only, marketing at limited point of sales, imported publications, and use of vague language. Brand Stretching One of the areas which perhaps provide as one of the largest loopholes for the cigarette vending industry in their endeavours to market their brand of cigarettes is that of brand stretching. As also discussed in detail in the above present literature reviews and researches, brand stretching is the use of non-tobacco products and services to advertise tobacco and various cigarette brands. These include for example clothes with logos of famous cigarette brands, shoes, and other items, which though are one of the means for marketing; yet in reality they serve to attract the attention of current as well as would be smoker populations alike. This directive is one step short of a total ban on all forms of advertising including such direct mail advertising as utilized by Marlboro Classics, yet it allows governments to exempt advertising where the branding is visibly different from the brand of the cigarette and where advertising is done in good faith without clarifying the actual meaning of the phrase ‘good faith. Thus, we have a loophole duly utilized by the cigarette vending industry in the form of relaxation on such advertising, and use of such phrases as good faith. 3rd Literature Review An Insight into Advertising As One of the Strongest Forms of Direct mail Marketing Strategy Used by the Cigarette Vending Industry Studies carried out by British Governments health S Effectiveness of Direct Mail on Cigarette Vending Industry Effectiveness of Direct Mail on Cigarette Vending Industry The Effectiveness of Direct Mail on the Cigarette Vending Industry in the United Kingdom Irrespective of the mode and methods adopted for marketing, including direct mail, the cigarette vending industry continues to prosper not only in the United Kingdom, but also across the world. At the same time there is a continuous rise in the spread of a number of diseases directly related with smoking including chronic respiratory diseases, cardiovascular diseases and various types of cancers in turn leading to increased death rates amongst the smoking populations. One of the major causes of premature deaths in developing countries, the figures for United Kingdom alone show that approximately 120,000 individuals die every year from diseases directly related to smoking, which is an alarming 20 present of all deaths in a given year. A similar study on smoking also revealed that cancer alone accounts for nearly a third of all deaths from smoking, and another one sixth die from other causes related to smoking. Figures for the younger generation entering the smoking populations of the United Kingdom showed that there was a gradual rise between the years 1988 and 1997,and a somewhat similar rise in the figures amongst adult smoking populations. Marketing departments of cigarette manufacturing companies around the world would least care that an individual smoking cigarette on a regular basis more than doubles the risk of dying before he or she reaches the age of 65. If there is any consolation for these companies adopting various lucrative direct mail strategies for vending and marketing cigarettes, smoking by pregnant women have been found to result in severe repercussions for the foetus as well as new born baby. These include an increased risk of miscarriage, reduced birth weight and potential for prenatal deaths. In similar context, parents who continue to smoke after pregnancy invite increased chances of sudden death syndrome in their infants. The following dissertation will however limit its discussions and studies, and present its findings on the effectiveness of direct mail in the cigarette vending industry of the United Kingdom. (DOH, 1998) Introduction One of the most widely accepted facts and one that has been proven beyond any doubt is that smoking poses a number of health risks. In addition smokers are more than likely to contract certain diseases in comparison to those who do not smoke at all. It is also a fact that smoking is largely accepted as an addictive habit, and with the passage of time, and advances in the study of and implications of smoking alto openly reveal that today it is not merely an addictive habit; on the contrary it is a collection of human behaviours which also includes smoking. It must also be borne in mind that since it is an addiction, and for some indeed a very strong habit, it is wrong to assume that this habit cannot be given up. In fact, there have been numerous cases where individuals have totally given up smoking. It is precisely this line of approach that has made major cigarette manufacturers to print health warning instructions on all their respective packs of cigarettes. Furthermore, majority of the cigarette manufacturing companies around the world, including those of the United Kingdom comply with requisite regulations and legislations with respect of marketing, advertisement and sales of cigarettes. There are also companies, which have their own pack labelling policies, which go beyond the requisite legislation of the respective host country. It is perhaps this lapse, if one may wish to call it, which has allowed majority of cigarette manufacturing companies to guise their marketing, promotion, advertising and selling policies into a philosophy which acknowledges the right of the adult populations to smoke, and consequently respect and protect that particular right. (Pierce et al,1998; Beemer and Siegel, 2000; Safer and Chaloupka, 1999; Anderson etal, 2002; Slade, 2001; Lewis and Littler, 1999) In pursuance of the rights of the smokers, cigarette manufacturing companies also stand against any excessive price regulations and tax measures which are presumably aimed at reducing demand for cigarettes. An independent view of a number of tax and price measures levied by various countries including the United Kingdom reveal that the smoking populations are unduly punished for the pleasure of smoking, and governments largely fail to take into account the huge sums generated from revenues on the various taxes levied on cigarettes. These high rates of taxes levied on cigarettes then results in the illegal and often illicit trade of smuggling cigarettes in turn undermining the legitimate market for cigarette companies running and operating under legal channels of business. A brief on the United Kingdoms cigarette industry reveals that 1 in every 5 cigarettes is smuggled into the country, which adds to a huge20 present of the entire cigarette industry of United Kingdom. In similar context is the call for a ban on the sale of duty free cigarettes, as the primary objective behind the promotion of duty free sale of cigarettes, or for that matter any other product is reduction in illicit trade of that particular item. A ban on the duty free sale of cigarettes would practically jeopardize the regulated duty free retail of that product, and at the same time have a minimal effect on the sale of cigarettes. On the contrary a ban on the duty free sale of cigarettes would simply bring about a shift in the market of cigarettes from a duty free environment to one that is largely controlled by domestic market. Another related aspect of the cigarette vending industry is that of various standards and policies which are aimed at raising awareness about the potential health risks associated with smoking. Trade zones such as those found in European Union for example are ample grounds for such standards and policies to be levied, which in turn allow for uniform results as well as derive common interests amongst the respective countries. The non-smoking segment of the populations is yet another vital area of focus for cigarette manufacturing companies. As also a public health issue, the non-smokers are prone to, and thus demand protective measures from passive smoking. In this respect, there exist two schools of thought; one that disregards any findings and conclusions, which present cigarette smoke as a potential health hazard for non-smokers. This group though acknowledges that cigarette smoke is indeed a source of annoyance as well as one of the causes of environmental pollution. Yet, they also call for an approach based on simple logic and common sense and co-operation. While the second school of thought, such as M/Gallaher, one of the major cigarette manufacturing and marketing companies in the UK, contend that government initiatives including the â€Å"Air Quality program are viable and productive programs to address vital public smoking issues. Literature Reviews There have a number of writings and case studies, which prove the effectiveness of direct mail on the cigarette vending industry,. These writings and studies have convincingly proven that direct mail has had positive affect and its influences have directly contributed to the rise in cigarette sales, in turn promoting the cigarette vending industry in general. Thus, it would not be wrong to state, as also proven from the following case studies, that the direct mail strategy in the cigarette vending industry has proven to affect smoking initiation as well as consumption. A brief historical perspective also reveals that cigarette manufacturing companies the world over have significantly changed their focus from the traditional advertising tithe use of techniques which emphasize on developing as well as maintaining a relationship with individual customers. Direct mail through direct communication thus offers cigarette-vending industry source of generating sales including obtaining measurable response in related areas of marketing. (Pierce et al, 1998; Beemer and Siegel,2000; Safer and Chaloupka, 1999; Anderson et al, 2002; Slade, 2001;Lewis and Littler, 1999) One of the most effective techniques, and perhaps one of the oldest as well, is that of utilizing mailing list of individuals maintained by major and minor cigarette vending companies alike. It is this list of individuals or customers, which serves as the potential for direct mail for cigarette vending industry. This list is also used for the distribution of coupons, sweepstakes offers, and brand-loyalty programme catalogues. Also included in the items distributed through direct mail are event announcements sponsored by the cigarette vending industry, and magazines published by major tobacco manufacturing companies. Practically all these items which are sent to individuals using the direct mail system contain activities and feature images which serve a two-fold purpose. First, these promotional items are designed in such a manner to make emotional appeals to customers. Second, they serve to strengthen, rather reinforce the existing images of the various brands of cigarettes in the market. There are different modes of collecting such list of individuals, which includes events that are sponsored by the cigarette industry, sweepstake forms, signed coupons as well as brand-loyalty program orders. These listings more often than not include some form of a response mechanism, which invites recipients to fill out surveys for example, or mention their lifestyle preferences. A statistic covering the US cigarette industry with particular reference to the role of direct mail reveals that there has been general rising trend in the use of direct mail in the United States. Brief on the 6 largest US cigarette manufacturers showed that they collectively spend a staggering amount of US 133.9 million dollars on direct mail in 2001. This was an increase of 131.8 present from the figures of 1998. One may note that these huge figures do not include sums spent on coupons or specialty items distributed through the mail system. (USFTC, 2002) A survey carried out by a team of doctors at the University of Medicine and Dentistry of New Jersey, in the United States provided for results which convincingly proved that direct mail in the cigarette vending industry not only enhanced initiation, but effectively raised the chances for potential smokers. This survey comprised of some 3900adults, and primarily focused on the answer to 3 questions. (University of Medicine and Dentistry NJ, 2002; SUDAAN, 2001) Questionnaire for the Survey Did any of the participant receive direct mail from a tobacco company within the last 6 months, including magazines, coupons, or catalogues. Did any of the participants use a coupon to buy cigarettes. Did any of the participants save any UPC codes, or tokens from any brand-loyalty programmes of a tobacco manufacturer. Results of the Survey The results of the above questionnaire from the selected adult participants showed that the current range of smoking populations were4 to 5 times more likely to have received direct mail within the past 6months as compared to those who had never smoked before or were belonged to the former smoking community. Second, the survey showed that smokers who had quit smoking in the last 12 months were 2 to 4 times more likely to receive direct mail as compared to those who had never smoked or those who belonged to the former smoking community. The survey also revealed that the white populations as compared to other groups of populations topped the list of individuals receiving direct mail offers for cigarettes or related material in aid of marketing for a given brand of cigarette. The use of coupons was found to be the highest amongst the female smoking community, white adults as well as those falling within the age group of 25 and 64 years. Similarly, saving for programs such as brand-reward programs was also found to be highest amongst current population of smokers, white segment of the population as well as the those falling within the age bracket of 18 and 24 years. Discussion on the Findings and Literature Review The above findings significantly provided evidence that direct mail served to increase the consumption of cigarettes, and subsequently ‘impede cessation. The said survey also found that coupons delivered through the direct mail to individuals were originally designed to bring about a reduction in prices of cigarettes, as well as simultaneously offset the impact of rise in taxes and other control measures levied by respective authorities. It was also found that programs offered through direct mail, such as brand-loyalty programs were intended to reward and encourage smokers through offer for additional purchases. The survey also revealed that direct mail marketing for cigarettes was originally designed to restrict switching of brands amongst customers. However, this strategy was only cover-up, and instead such direct mail offers allowed and in fact assisted smokers to continue smoking. The above literature review and survey on the role of direct mail on the cigarette vending industry shows numerous legislations, public campaigns against smoking, proven addictive behaviours resulting in serious health repercussions and rising awareness levels against thrill effects of smoking all have somewhat forced cigarette manufacturing companies the world over to adopt direct mail strategies. These direct mail strategies not only provide smokers with appealing and inviting messages; they move a step further and offer rewards for smoking. Direct mail also offers an excellent mode of communicating directly with customers, which is all too easily disguised and more than hidden from the piercing scrutiny of the public health community. It is also an effective strategy against rising restrictions on the different and traditional modes of advertising. In this respect a direct mail marketing plan of the world renowned Philip Morris also notes that direct mail is indeed one of the infl uencing factors in the use and consumption of cigarettes. (Slade, 2001; Strategic Plan, 1995) The above literature review and survey also reveals though direct mail is only one of the many marketing techniques adopted by cigarette vending industry, it is undoubtedly one which is witnessing continuous growth pattern, and one that is likely to grow in the future as well. The use of direct mail strategy is all the more worthy of concern as the cigarette vending industry is witnessed to continually change its marketing strategies in response to rising set of legislations and public opinion. It also a proven fact that practically all those involved in cigarette vending industry pursue a marketing strategy with a singular objective; one which aims to encourage initiation and consumption in smoking cigarettes. To curb such efforts, and to bring about a control for restricting such marketing strategies including direct mail, there is an ever-demanding need to fully comprehend marketing tactics utilized by cigarette vending industry. Included in these efforts is removal of the names of the individuals from the list maintained by cigarette vending industry by the smokers themselves as they decide to quit smoking. The exposure of probable intent on the part of cigarette vending industry and possible effects of such direct mail strategies along with measures, which serve as potential triggers, such as the presence of ashtrays, should also be taken into account. (Fiore et al, 2000; King, 2001) 2nd Literature Review In continuation with our dissertation on the effectiveness of direct mail on the cigarette vending industry, yet another research carried out by Lynn McFadden of the University of Strathclyde and published in the British Medical Journal issue of March 2001 is presented here. This research uncovers young peoples awareness about marketing strategies adopted by cigarette vending industry and their involvement and association with their smoking behaviours. One of the most successful methods of direct mail marketing is one, which is carried out at the point of sale. It is the venue of point of sale where a number of cigarette vending industrialists tend to focus, as also evident in the research findings of the University of Strathclyde. The research comprised of some 629 young people, aged between the ages of 15 and 16, and all of who had opted to be a part of the research through a postal consent procedure. The focus of the research, as also stated in the preceding lines waste examination of young peoples awareness of and involvement with cigarette marketing. The research also sought to determine the level of association, if any, amongst the group of young people between the level of awareness and the their smoking behaviours. The overall findings of the above research comprising of young people revealed an extra-ordinary high level of awareness and equally high levels of involvement of young people in the marketing strategies of cigarette vending industry. Out of the 629 participants involved in the research, some 95 present of them were more than aware of the various advertising techniques utilized by the cigarette vending industry, as also aware of the various methods utilized in the point of sale marketing. Thus, both the aspects, those of awareness and involvement with cigarette vending industry were strongly found to be related with being a smoker. This was more than proven from the statistics derived in the said research. For example out of the group of some 185 participants, 55 or a huge 30 present of the research participants admitted that they had received free gifts through coupons attached with the cigarette packs. A comparison with non-smoking community showed that only 11 present or 21 out of 199 participants had received fee gifts through coupons in the cigarette packs. Furthermore, it was also revealed in the same set of researches that aside from the awareness element about coupon schemes, participates were also equally aware about brand stretching and tobacco marketing, all of which were linked in some way or the other with their smoking habits. (DOH, 1992;Atiken et al, 1987; Led with, 1984; Charlton et al, 1997; Altman et al,1996; Aitken et al, 1991) The above research thus concluded the young populations aged 15 and16 were not only fully aware on the various aspects of cigarette marketing including direct mail and marketing at the point of sales; they were also more than associated with the different cigarette vending industries in the marketing of cigarettes and both the awareness and involvement in the marketing were linked with their smoking status and habits. These findings also called for a more stringent set of statutory legislations, as compared to the otherwise voluntary regulations which are primarily designed to protect these teenagers, and which have become somewhat ineffective. Other findings from the above carried out researches revealed and established the fact that the role of the mass media in advertising encouraged smoking amongst the younger populations. From a purely economics perspective, the same findings showed that expenditure on advertising pointed towards an increase in the prevalence, while a drop in the expenditures on advertising resulted in the subsequent drop in the prevalence of cigarette consumption, thereby proving a direct relationship between advertising and consumption of cigarettes. These studies focusing on the younger population showed that teenagers smoking cigarettes are more likely to appreciate as also be aware of the tobacco and cigarette advertising related sponsorships, merchandising and vending. In line with such studies, other cohort studies on the same segment of teenage smoking populations resulted in similar results and furthermore predicted a tendency of future smoking behaviours amongst the researched populations. (DOH, 1992; Aitken et al,1987; Led with, 1984; Charlton et al, 1997; Altman et al, 1996; Aitken al, 1991) A similar experiment involving some 2400 teenagers all aged a 15years, yet only differentiated by sex and postal addresses were taken for a research project from an area in the North of England. These teenagers were invited to participate in the research programme after due consent from their parents/guardians with the primary objective of deriving some 280 smokers from the total lot of participants. With response rate of more than 48 present, some 1062 responded to the call for invitation and studies carried out from the set of questionnaires mailed to each participant along with the consent form. The results obtained from the 1062 participant teenagers (all aged15 years) showed that one in every 5 teenager was involved in smoking,214 teenagers or 20 present of the respondents were regular smokers,825 or a huge 78 present not regular smokers, while 23 respondents or 2percent of the total respondents declined to divulge their smoking status. In continuation with the studies on the teenage smoking population, a random number of 373 respondents were gradually removed from the research list, as they were not regular smokers. The removal of these selected respondents further narrowed the research to those who were in the habit of, or were involved in smoking cigarettes. The number of respondents was now brought down from 1062, as also stated in the opening lines of these paragraphs, to 686 candidates only. These 686 teenage candidates were then interviewed through a team of professional interviewers, who were in turn instructed to make at least4 clear attempts to gain positive research results. The interviewers were not given any prior information as the status of smoking habits of the interviewed candidates so as to derive a transparent set of findings. Here too, the permission of the parents/guardians was sought prior to the interview, as well as a 5-Pound gift voucher was also handed to each candidate. In carrying out the above research 629 out of the total 686respondents were successfully interviewed. Those who were left out did so due to the passage of time, as by the time the research was concluded, the respondents had entered their 16th year, whereas the entire team of research candidates belonged to the 15 year old age bracket only. Each of the candidates was given two sets of questionnaires; one included a face to face interview with the teenage candidate, while the candidate in the presence of their guardians/parents filled out the second questionnaire. One may note that there was no influence of the parents presence on the part of the respondent teenagers. Each of the questionnaires resulted in the awareness, as well as the involvement of the candidates with the different techniques used in the marketing by the cigarette vending industry including direct mail marketing. The findings of the research revealed the smoking habits/status of the teenage candidates, their future intentions for smoking, education levels, and smoking by their peers, siblings, and whether their parents smoked or not. (DOH, 1992;Atiken et al, 1987; Led with, 1984; Charlton et al, 1997; Altman et al,1996; Aitken et al, 1991) A detailed analysis of the awareness element of the teenage group interviewed showed that in comparison to the non-smoking teenage population, those who smoked cigarettes were more than aware of practically all forms of marketing techniques including direct mail marketing. Information from the respondents showed that teenagers involved in smoking were also fully aware of the different types, but also knew about advertisements in magazines, newspapers, special price schemes, and offers for cigarettes. In addition, majority of the smoking teenage population had witnessed advertising on billboards, where more than fifty present of those interviewed had read about some form of cigarette marketing in the press. Also included were advertisements and marketing at point of sales, coupon schemes, and special price offers for cigarettes. Other findings from the research of the 15 year old teenagers revealed that 20 present of the said teenage population had witnessed some form of brand stretching, which included clothing or other items with logos of famous brands of cigarettes, new pack designs, the different and attractive nature and size of the cigarettes, free gifts offered through cigarettes, competitions, and watching famous personalities smoking in films and on television. Though at a lower level, there was awareness on the various promotional mails from cigarette vending industry, distribution of free cigarettes, and to some extent from the network, or the Internet. Thus, it was observed that young smokers were more than fully aware of practically all forms of cigarette marketing techniques including direct mail, in comparison to non-smokers or those who had tried to join the smoking populations. The awareness on the marketing aspect on the part of the teenage populations was more noticeable where free gifts, special price offers, promotional mail, and newer forms of cigarette packs and designs. Marketing of Cigarettes and Role of Teenagers As also stated in the above researched teenage smoking group, there was significant evidence to suggest the involvement and role of teenagers in the marketing of cigarettes including both direct mail and coupon schemes. It was also revealed there was little difference amongst male and female teenagers both of who participated somewhat equally in the marketing of cigarettes. A statistical break-up of the smoking teenager population and the non-smoking teenagers showed that more than fifty present of the smoking populations amongst the teenagers had willingly participated in one or other form of marketing for cigarette companies. In comparison, some 25 present of non-smokers and those who had tried smoking had also participated in some form of marketing for cigarettes. The above research on the teenage smoking population also showed that some 33 present of those interviewed had received free gifts through coupons schemes; another 25 present were in receipt of the special price offers for cigarettes, and a smaller 10 present of the teenage population had received free gifts through direct mail schemes at events organized by the cigarette vending company or received the same through promotional mail schemes. The above findings thus conclusively show that there is a more than strong relationship between awareness of each cigarette marketing technique and current smoking status while variable linked with teenage smoking are held constant. In particular, the awareness of coupon schemes and brand stretching are one way or the other linked to the enhanced probability of the individual being a current smoker, as also with having friends who smoke, siblings, or either parent being smoker. In this study, having friends as smokers was found to be a great influencing factor with the individual being a current smoker. The number of marketing techniques also varied and left a positive mark on the current smoking status and habit of the teenagers interviewed. Hereto, the presence of a close friend, either parent, or siblings was directly associated with an enhanced probability factor for a current smoker. A break up of the different marketing techniques to which the teenage populations are exposed show that package design or price promotion account for a larger exposure, as compared for example brand stretching and shop advertising, the latter of which had little or no effect on the teenage segment of the smoking population. In spite of the above findings, a common factor to emerge was that the young populations was observed to receive some form of benefit, reward, or reassurance from either of the cigarette vending industries; hence a reinforcement of smoking habits, or promotion of smoking amongst the teenage populations. These research more than confirms the need for a stronger set of legislation and laws. The research also calls for an equally tighter set of controls on the marketing techniques adopted by the cigarette vending industries across the United Kingdom. It also proves that the current voluntary form of regulations primarily designed to protect would be smokers, new smokers, and in particular teenage and younger populations are failing, and there is a greater and crucial need for revision of the same. The British Tobacco Advertising and Promotion Bill should be so designed to comprehensively ban some of the most famous forms of marketing such as coupon and brand stretching; the ban should move a step further and outlaw practically all forms and modes of marketing by the cigarette vending industry. Laws, Regulations and Loopholes Exploited by the Cigarette Vending Industry by Marketing/Promotion of Cigarettes This section of the dissertation will address some of the applicable laws and regulations presently levied in the United Kingdom as well as through the directives of the European Union for all member states respectively. It will also take into account the various loopholes and exploiting measures employed by the cigarette vending industry, as they bypass or practically ignore effective regulations to promote the sale of cigarettes, including various forms of direct mail, as also the subject of our above dissertation. One of the first sets of regulations is the European Union Directive98/43/EC, which was duly accepted as a law as of 30th July 1998. Theseus Directive specifically called for minimal tobacco advertising inside the shops. Though the directive contains a summary and overview of the measures and timetable for the implementation of the directive, the salient feature of this directive calls for member government of the European Union including United Kingdom to ban all forms of commercial communication as well as sponsorships, both of which primarily aim actor influence the promotion of tobacco products. An overview of the above said directive shows that though this covers vast area of advertising, and is largely utilized by the cigarette/tobacco vending industry to promote their respective products; the objective of the directive is to bring a halt to the transfer or changeover of promotion techniques used in the marketing of cigarettes. However, the same directive is all too easily exploited through loopholes and exemptions such as those enjoyed by the sellers of tobacco only, marketing at limited point of sales, imported publications, and use of vague language. Brand Stretching One of the areas which perhaps provide as one of the largest loopholes for the cigarette vending industry in their endeavours to market their brand of cigarettes is that of brand stretching. As also discussed in detail in the above present literature reviews and researches, brand stretching is the use of non-tobacco products and services to advertise tobacco and various cigarette brands. These include for example clothes with logos of famous cigarette brands, shoes, and other items, which though are one of the means for marketing; yet in reality they serve to attract the attention of current as well as would be smoker populations alike. This directive is one step short of a total ban on all forms of advertising including such direct mail advertising as utilized by Marlboro Classics, yet it allows governments to exempt advertising where the branding is visibly different from the brand of the cigarette and where advertising is done in good faith without clarifying the actual meaning of the phrase ‘good faith. Thus, we have a loophole duly utilized by the cigarette vending industry in the form of relaxation on such advertising, and use of such phrases as good faith. 3rd Literature Review An Insight into Advertising As One of the Strongest Forms of Direct mail Marketing Strategy Used by the Cigarette Vending Industry Studies carried out by British Governments health S

Warehouse Performance Management in Tesco

Warehouse Performance Management in Tesco BACKGROUND: Tesco being the 4th largest online retailer as per revenue and 2nd largest online grocery retailer as per profit is constantly increasing its online grocery business which is being done from its Superstore chain. Tesco introduced a DOTCOM dedicated store more commonly known as DCOS (Dotcom only store) in Aylesford in 2009, which was a huge success and a boost to its online grocery business. As it was highly disturbing for the local superstores carrying out Dotcom business within them in line with the other regular store operations, it was becoming a quite a need to open a dedicated store Dotcom store in London, which TESCO did made possible by opening another DCOS in Greenford London. Tesco needed to reduce the impact of the Dotcom operation in certain stores at the same time addressing space constraints for the Van numbers in particular geographic areas, with a store-based order fulfillment model. This led Tesco to re-evaluate the potential for a dedicated facility. Being a Tesco DCOS employee myself, I am very well known that the Product Availability is the highest priority in any DCOS or a superstore running Dotcom in it. Tweaking the performance of Warehouse is one of the key possibilities to make that high priority element easy to live with. According to Goh and Pinaikul (1998) for a company to run and have a sound and effective supply chain operations, companies have put a lot of their time and effort in this field. If the logistics of a company is well handled, it can take a company to a different level of success and it becomes easy for a company to defeat its rivals (Mentzer et al., 2004). With the new advancements in technologies there is always room for improvement and upgrades in a companys Warehouse Management. In DCOS Warehouse Management case there is a large number of logistic operations taking place. There have been many researches which discussed how to improve the performance of a companys warehouse by adapting different models and how to implement them. Moreover, this research will provide the company with the better understating of how to enhance its performance by measuring its performance with the variable benchmarking. Competitive advantage can be gained over rivals if the companys WMS is flexible and any process that is not performing well can be used as a benchmark to measure Warehouse Managements performance. Any flaws or drawbacks that maybe present in the current Warehouse Management Techniques will be reduced / diminished by the help of this research. LITERATURE REVIEW: WAREHOUSE MANAGAMENT: To have a very successful and efficient supply chain, an organisation has to focus on some major operations like warehouses. In todays day and age a firm is considered to be a flop which does not take care of its warehouse management functions. It has become vital for companies who manufactures on a large scale and in bulk to be efficient if their warehouse management system is not able to help company in all economic climates (Henneberry, 1987; Power et al., 2007). As per Brown (1990) and Lindley et al., (2008) there are numerous factors that are responsible for the vitality of warehouse management systems (WMS) some of which are that customers can place orders recently a new trend in the market has started in which people are leasing their land or building warehouses and then leasing them to different companies. This trend only came in to existence because of this mounting need of warehouses by mass producers and retailers (Jones and Hillier, 2000) Warehouses can be defined in different ways but as per Gunasekaran et al., (1999) a warehouse can be defined as a place where commodities and goods are saved and stored for many reasons like social, commercial and assets safety. The designs of warehouses should be able to provide company with different technical and operations (Hassan, 2002; Faber et al., 2002). Warehouses are facilities that provide the right environmental conditions for the storage of finished goods and/or materials that require protection from the elements, as well as ensure commercial security and social safety (Gunasekaran et al., 1999). As such, warehouses have to be designed to satisfy a combination of several technical and operational requirements (Hassan, 2002; Faber et al., 2002). According to Lodree et al., (2004); Gaur and Ravindran, (2006) the basic functions that should be present in a warehouse are engineering structural capacity to bear the loads of the materials to be stored as well as the associated handling equipment, receiving and shipping operations and associated trucking, and the requirements of the operating personnel. Store-keeping places hold very important for proper warehouse management Gaur and Ravindran, (2006). As per Lambert et al. (1998) there are more than 750,000 warehouses around the globe. These include private leasing warehouses, state of art warehouses, highly sophisticated warehouses, storage warehouses for companies and self-storage places. Lambert et al. (1998) further says that if the warehouses need so much money to have and operate then why they exist? He answers his own question and says that they play a vital role in companys supply chain management and they are usually build and kept to help companies in achieving transport and production economies, quality purchase discount and forward buys. Warehouses are a key factor in any organizations operations. Their main purpose is to supply, circulate, store, consolidate and changeover cargo. Henneberry (1987) and Power et al. (2007) claim that in todays day and age to consider profitable allocation or to consider large scale manufacture it is vital to give thought to the role of warehousing. According to Brown (1990); Lindley et al., (2008) partly because of the increasing dependence on the electronic alternatives for order placing by commercial and private customers and also to the manufactured goods industry the demand for warehousing is on an all-time high. Due to this demand of electronic order placing a greater weight is placed on distribution centres to hold the right amount of all the different stocks in order to meet clientele demands. Warehousing is required due to the developing capability in stockholding by vendors and producers. contributions.jpg Boasting a direct impact in flexibility, operational costs and service levels warehouse operations prove that they are indeed indispensable (Baker and Halim, 2007). Warehouse operations being those of warehouse location, goods handling, warehouse design, inventory and storage guidelines hold a great importance in addressing the specific issues which are faced in achieving strategic goals. These issues can only be addressed once an organization has distinct strategies that will help define their long term performance (Bowersox et al 2002, p. 389; Bowersox and Closs 1996, p. 396). As stated by Korpela and Lehmusvaara (1999, p. 135) a major point to consider when allocating warehouses or distribution centres (DCs) is their location. This is a very important decision and requires a lot of thought as it will determine the continuing profitability of the organization, affect customer services and relations, costs and delivery schedules. As pointed out by Huertas et al. (2007) a great emphasis is placed on the layout of the facility as it is a major deciding factor in the success of an organization. The warehouses layout depends on its specific operational demands and distinctiveness i.e. modularity, flexibility, compliance, allocation of arrangements, convenience, and neatness. The design of the layout varies according to the nature of the organizations operations and has to be adapted as per those operational requirements meaning there is no set layout or methodology to follow. Because of the diversity of factors influencing a warehouses operations such as rack types and entrances, gangway entrance and harbour locations, selecting an adequate layout for any given case is not unimportant especially the usage of pallitization (Huertas et al. 2007). Those responsible for the development of these warehouse services need to focus around the understanding of the necessities of the businesses that will vacate these premises (Reichhart and Holweg, 2008). According to Varila et al., (2007) most warehousing development is an approximation of how the market in storehouse rental could evolve. Formerly to meet these types of demands made by most retailers and manufacturers was easier, as most of their needs had been met within their organization. Ultimately resulting in relative ease in the prediction of vacancy levels, also the ease in establishing the capability of warehousing; the support available to promote proficient use of the services (Rubrico et al., 2008). The main activities that play a vital role in the performance of a warehouse as defined by Koster and Warffemius (2005) are as follows: Internal product relocation, Return handling, Cycle counting, Quality inspection, and Cross-docking As a result of the above research one can come to the conclusion that in todays day and age warehouses plays a crucial yet multifaceted role in many supply chains. Baker and Halim (2007) emphasize that a warehouse makes up to 20% of the total logistics cost of an organization. And their critical role as great customer service providers in particular distribution centres as they are the final point of contact. INDUSTRY BACKGROUND: Tesco was founded by Jack Cohen in 1919 from a small grocery stall. And now it is the fourth largest retailer in the world measured by revenues and second largest retailer in the world measured by profits. Started from the 25p Stock Market share, it is now making a profit of more than  £200m. Tesco is now widely spread into more than 13 countries, including China and India. Tesco.com, commonly known as DOTCOM is the UKs most successful online retailer. Launched in 1996, and officially registered in 2000, it is one of the fastest growing business selling everything from vegetables to computers, electronic appliances to normal grocery via internet. Back to its beginning, it started making its 1st annual turnover of  £25m and was started from a single store. These days their average weekly turnover is around  £30m and they currently employee thousands of people in stores across the UK making the DOTCOM procedure possible. AIM, OBJECTIVE AND HYPOTHESIS: The existing warehouse management of Dotcom Only store TESCO Greenford is appraised. The primary aim is to recommend set of measures and strategies which can be used to measure the performance and eliminate wastes, respectively. By studying TESCO Greenfords warehouse management and conducting interviews with the senior managers, the weaknesses within their warehouse management will be identified and the solutions would be provided by relating it with the strategies available in the literature of this field and moulding it to the specific needs of TESCO DOTCOM Greenford. However, the core purpose of this research is to set the performance measures and eliminate wastes by identifying them in the complete Warehouse Management system implemented in all the TESCO Dotcom only stores. The research aims to benefit managers in understanding the weakness and the processes which are wastes. RESEARCH METHODOLOGY: In order to answer a question, a proper research has to be conducted (Zikmund, 2003). When a standard set of procedures and rules are followed to answer a research issue and to validate the findings attained by a systematic approach is called as research methodology (Ghauri and Granhaug, 2005). It has been widely observed that there is no fix method of conducting a research but a research should answer the question and should be relevant to the available data (Hussey and Hussey 1997). According to Schindler and Cooper (2001); Collins and Hussey (2003); Denscombre (2003) the result outcomes should be the main centre focus point for any research methodology. Substantiation of adopted research technique is briefly discussed in this section. Research design has been carefully selected to discuss the issues of the research for this particular research. The following plan is adopted: Research Philosophy: This will explain that which philosophy is used to develop the understanding of research. Research Design: This will provide with the design that is used to conduct the research. Research Approaches: this will discuss the major kinds of approaches and which one is adopted for this research. Research Data collection: this section will define the steps involved in the collection of the data For the purpose of this research we have used the research ONION which was introduced by Saunders et al. in 2000 and then it kept on modifying. According to Saunders et al., (2009) the last shape of Onion is given below: Research Philosophy: As we have discussed in order to go around this dissertation, the Onion process is used. So first of all the requirement of explaining the research philosophy is a must (Saunders et al., 2009). Research philosophy is basically an embarkation for the understanding of the knowledge upon which the research is based (Saunders et al., 2009). In summary we agree with Johnson and Clark (2006:108) that its not important how philosophical the research is and how well it is delivered but the way on how we reflect ourselves through those philosophies. There are many types of philosophies which are explained by Saunders et al. (2009) and are shown in the table below Table 5: Types of Philosophies Type Meaning Pragmatism Do you have to adopt one position? Ontology What assumptions do we make about the way in which world works? Objectivism How social entities exist independent of social actors? Subjectivism Understanding the meanings that individuals attach to social phenomena Epistemology What is acceptable knowledge in a particular field of study? Positivism Working in the tradition of the natural scientist Realism Do objects exist independently of our knowledge of their existence? Interpretivism Understanding differences between humans as social actors Axiology What roles do our values play in our research? However for the purpose of this research we will only briefly discuss four main kinds of research philosophies. Positivism This kind of approaches provides researcher with a feeling of a scientist and it is conducted in the same way as any normal scientist will conduct a research (Saunders et al., 2009). Remenyi et al. (1998) has supported this idea that a research creates a hypothesis just like a scientist does when conducting a natural research. Realism Realism approach means that the philosophical things are different then the reality (Saunders et al., 2009). He explains it in detail by saying that realism is a branch of epistemology and it has two sub divisions in business and management research which are direct realism and critical realism. According to Saunders et al (2009) by focusing on the knowhow of generating a common understanding of humans and basing it on the experience of external factors that have at one point impacted a business research can be conducted. However these factors that have impacted an organization may not provide suitable evidence to the exact situation. Interpretivism This kind of research is explained by Saunders et al. (2009) as a research in which the researcher has to bear in mind that all the humans are social actors and they all have a viewpoint towards things. He further explains that in this kind of research, a research has to get involved into details of the social world of the research question and has to observe the point through their i.e. social actors point of view. Pragmatism Saunders et al. (2009) argues that pragmatism is that the most important factor is that what type of question you adopt for research and one may be more important than the other in order to achieve the answer. He further uses the support of Tashakkori and Teddlie (1998) who suggests that it is more appropriate for the researcher in a particular study to think of the philosophy adopted as a continuum rather than opposite positions (Saunders et al., 2009, pp 109). Saunders et al. (2009) says that the research philosophies can be explained in more detail by the use of a concept known as research paradigms. Furthermore, this terminology, paradigm, is usually used in social science researchers and can become a cause of confusion as it gives birth to many meanings of one things. Research Design There are many ways to conduct a business research and there is as such no limitation which says that one research is superior over another (Hair et al, 2003). One may think that the data is qualitative or quantitative or may be both but again its all on how you want it to be (Jankowicz, 2003; Stevenson and Cooper, 1997). EXPLORATORY RESEARCH This can be used by people who are not highly knowledgeable and is completely based on the exploration. On the other hand, this research can be used for companies and industries which are highly innovative and are always evolving into new things. The importance of this type of research can be determined by the words of Swaddling and Zobel (1996) in the following pattern: When conducted well, exploratory research provides a window into consumer perceptions, behaviours, and needs. It enables companies to produce new products and make them successful easily. Highly level decision and a better understanding of market can be gained by such research. This type of research leads company into the innovation of new products and these products being a result of exploration is always very beneficial and profitable for companies. Research Approaches There are many kinds of researches approaches and any of them can be used to attain the answer of ones research (Saunders et al., 2003; 2009). The selected approach basically reflects the way theory was built when the project was initiated and is most critical selection (Creswell, 2003; Saunders et al., 2009). In general there are 5 major approaches and any of them can be adopted. According to Zikmund (2003) there are two major approaches i.e. Theoretical and Methodological and both of these are divided into sub category of Inductive/Deductive and qualitative/quantitative, respectively. While on the other hand Collis and Hussey (2003); Gray (2004); Hussey and Hussey (1997); Mangan et al. (2004) all agree that there are two major kinds of approaches which are Deductive and Inductive. Now in recent years another researchers introduced a new kind of research which is known as Abductive (Kovacs and Spens 2005; Saunders et al., 2009). We will discuss each approach briefly and will select the one that is most suitable for the purpose of this research. DATA COLLECTION: One of the most important parts of any research is the data collection method. There are several methods of collecting data but the method is completely dependent upon how the research is conducted (Creswell, 2003). Due to the nature of this research deductive technique is used and to collect data for such technique is defined by different researchers in a different way. Amongst all the methods researchers agree upon few like Sampling, Secondary data, Observation, interviews and Questionnaire (Saunders et al., 2003; Yin, 2003; Collis and Hussey, 2003; Saunders et al, 2009). Each step is discussed briefly as following: Secondary Data collection: The data which is collected by someone else and not by user is generally referred to as a secondary data (Saunders et al., 2009). The secondary data can be qualitative or quantitative (Collis and Hussey, 2003). Secondary data is beneficial if the cost issues exist or the time is not trying to be wasted and this kid of data can also be descriptive or exploratory (Saunders et al., 2009). Data collection technique: Initial information would be collected by the communication with the strategic level manager of TECO Dotcom Greenford and the website of the Dotcom Stores Tesco and the main website of the Tesco Plc. These websites would be used to collect the general background of the company. Later on Warehouse Manager of Tesco Dotcom Greenford will be provided with the some information which includes the current situations of the Warehouse Management of the store and the interaction between its clients. The literature review will be providing the support on the research on overall basis as well. Primary Data Collection: secondary data is usually not always enough to understand and answer the research (Saunders et al., 2009). This kind of data can only be collected by having a deeper understanding of the issues and is usually targeted to answer the specific issues (Ghauri, 2005 and Saunders et al., 2009). Furthermore, it is explained that there are three major ways to collect primary data i.e. in depth interviews, questionnaires and observations which usually reflects the situation in detail and gives a researcher with a clearer picture of the situation (Creswell, 2003; Saunders et al., 2009). Data collection technique: Primary data would be collected by paying visits to the Tesco Dotcom Greenford, conducting in depth face-to-face interviews with the managers at Tesco Dotcom Greenford and then a detailed telephonic interview with the Warehouse Manager at Aylesford Dotcom Only Store, as they are directly involved in the issues faced by Tesco Dotcom Greenford at the moment (a good reason why Aylesford is involved with the problems faced by Greenford store is because it is the only relevant store of the type in UK and is up and running successfully). The interviews would be provided with the great deal of understanding of the situation. Later on, observation would be made about the processes happening at Tesco Dotcom Greenford and the email conversations between Tesco Dotcom Greenford and its suppliers. The issue with the palletisation and inventory is the major issue between Tesco Dotcom Greenford and Suppliers. Once the data would be collected then the communication through email will continue in order to fulfil any other requirement to conduct this research.

Senate Essay -- American History, The Confederation Congress

The Confederation Congress was plagued with problems, as the former colonies struggled to form a national identity. The lack of permanent physical location and united national government, led to problems of inaction, following the Revolutionary war. â€Å"Congress’s lack of power and frequent inability to act (often due to a lack of quorum or the need for a supermajority for certain decisions) demanded reform† (Wirls, p. 58). The founders agreed on the need for reform, opposing groups argued about the nature. Federalists argued for a strong national government, with few representatives, removed the day to day local political affairs. They desired a group of political elites, free to make decisions based on national interests. In order to promote an independent nature within the senate, Federalists advocated long terms, some advocating lifetime appointments. The anti-Federalists rejected the idea of permanent elite, instead promoting large numbers of repre sentatives, with small groups of political constituents. Rather than the crà ¨me de la crà ¨me of society, anti-Federalists envisioned a kaleidoscope; representatives would personally reflect the interests of constituents. During the final constitutional plan for the U.S. Senate, a compromise was reached; anti-Federalist views were incorporated through the equal apportionment and appointment by states, Federalists insured independence in the senate by instituting staggered six year terms. Compromise between the Federalist and anti-Federalist was reached through a series of decisions, in no small part assisted by the fact that those against strengthening the Federal government were not present, â€Å"the formidable talents who were opposed to the project of fortifying the... ...emate concerning the national congress. With the rights of small states protected through equal representation in the senate, the convention was able to move forward in forming a strong national government with responsibilities and rights separate from the states. Federalists were able to protect the independence of the senate, through staggered six year terms and more stringent eligibility requirements than those for the House of Representatives. The eventual formation of a separate national capital insured the both physically as well as psychologically desired independence of the senate and congress. The members of both sides present shared a mutual understanding of the need for a senate in a stronger national system. The decisions which lead to the compromise resulted in the creation of a senate which included both Federalist and anti-Federalist views.

Essay --

Introduction Today, there are many different types of mental illnesses known throughout the world; i.e. bipolar disease, schizophrenia, paranoia, post-traumatic stress disorder, panic disorder, ect.; and many people who are able to diagnose such illnesses when symptoms are shown throughout a person [Webmd.com]. What about back in the 1600’s though, when such illnesses weren’t even known yet? In Shakespeare’s play Macbeth, for example, Macbeth showed many signs of what today would be diagnosed as symptoms of schizophrenia, but he had no idea, nor did anyone around him, they just thought he was going insane. What is schizophrenia one might ask? â€Å"Schizophrenia is a serious brain disorder that distorts the way a person thinks, acts, expresses emotions, perceives reality, and relates to others† (Joseph Goldberg). Symptoms Medline plus tells us that there are three major symptoms of the disorder; not being able to distinguish the difference between fantasy and reality, incoherent conversations, and withdrawal physically and emotionally. The most common and most well-known symptom of schizophrenia is when people cannot distinguish between what is real and what is not [Medlineplus.com]. Schizophrenics often suffer from delusions and hallucinations. A delusion is a belief that is not true and a hallucination is seeing, hearing, or sensing something that is not really there [Schizophrenia.com]. Macbeth is considered a schizophrenic because he possesses all of the symptoms said above. Background information According to Schizophrenia.com, schizophrenia can be traced to the old Pharaonic Egypt, as far back as the second millennium before Christ. At one point in history, all people who were considered "abnormal," whether due to mental illn... ... of her womb before she could actually give birth, Macbeth then comes out of his delusional state, and we realize that everything he did was because of the witches, and that they made him go crazy and become a schizophrenic (Shakespeare 213). Conclusion Apparitions, eternally bloody hands, and ghosts all sound like key elements to a nightmarish dream. Imagine not being able to tell if these things were real or just a figment of your imagination and you’ll know the position that Macbeth was in. In Shakespeare’s Macbeth, Macbeth show signs of what would today be diagnosed as symptoms of schizophrenia. He became detached from reality and spoke in crazy incoherent sentence fragments. Though they were not able to identify Macbeth’s mental illness during Shakespeare’s time, now after many years of research, it seems very certain that he was most likely a schizophrenic.

Kants Fundamental Principles Of The Metaphysics Of Moral Essay

Kant's Fundamental Principles of the Metaphysics of Moral The central concept of Kant's Fundamental Principles of the Metaphysics of Morals is the categorical imperative. â€Å"The conception of an objective principle, in so far as it is obligatory for a will, is called a command (of reason), and the formula of the command is called an Imperative.† (Abbott, 30) An imperative is something that a will ought or shall do because the will is obligated to act in the manner in which it conforms with moral law. The categorical imperative is an obligation by the will to act so that the action can be classified as a universal law. When one acts in conformity with the universal law at all times, they are following out the categorical imperative. This differs from the hypothetical imperative in that the hypothetical imperative acts on the basis that the will in the end will gain something (not a means to an end). The categorical imperative is a means to an end, and the action to obtain the end must have moral worth. Stipulations of the categorical imperative are that all actions should act only on the maxim, that actions have moral worth, and the end is necessary. From these stipulations, it can be derived that the categorical imperative should be followed in order to live morally. â€Å"If an action is conceived as good in itself and consequently as being necessarily the principle of a will which of itself conforms to reason, then it is categorical.† (Abbott, 32) â€Å"There is therefore but one ca... Kants Fundamental Principles Of The Metaphysics Of Moral Essay Kant's Fundamental Principles of the Metaphysics of Moral The central concept of Kant's Fundamental Principles of the Metaphysics of Morals is the categorical imperative. â€Å"The conception of an objective principle, in so far as it is obligatory for a will, is called a command (of reason), and the formula of the command is called an Imperative.† (Abbott, 30) An imperative is something that a will ought or shall do because the will is obligated to act in the manner in which it conforms with moral law. The categorical imperative is an obligation by the will to act so that the action can be classified as a universal law. When one acts in conformity with the universal law at all times, they are following out the categorical imperative. This differs from the hypothetical imperative in that the hypothetical imperative acts on the basis that the will in the end will gain something (not a means to an end). The categorical imperative is a means to an end, and the action to obtain the end must have moral worth. Stipulations of the categorical imperative are that all actions should act only on the maxim, that actions have moral worth, and the end is necessary. From these stipulations, it can be derived that the categorical imperative should be followed in order to live morally. â€Å"If an action is conceived as good in itself and consequently as being necessarily the principle of a will which of itself conforms to reason, then it is categorical.† (Abbott, 32) â€Å"There is therefore but one ca...

Slavery has been in the United States early as 1619

Slavery has been in the United States early as 1619. Slaves were brought to America for one thing and one thing only, money. Tobacco took a great amount of work to harvest, but with the slaves help it all got completed. Slaves cost at least three more times than a regular servant for the reason that slavery was their life, it was their job. Regular servants finished their ‘slavery’ time in about 4 years. Slavery really got across the whole country as time passed, and in 1670 the crop, tobacco, took over the nation. In fact, slavery didn’t really come into play in the laws until the 1660s. In the early 1680s Virginia wanted to alter what a slave was, earlier defined by the House of Burgess. The Europeans saw African Americans as human beings, but their actions towards them did not say the same. Slaves that used to be put to work while on the ships did not appreciate it at all. Almost 15% of the slaves on the ship die on their way to a destination due to no food or by just being sick. The ship was so small sometimes that the slaves had to be on top of each other. The owners of the ships tried to get as many slaves on the ships as possible so when they got to their destination they would sell the excess slaves. Since Africa had so many in it, that was the usual target to get slaves and bring them back to the land. By the early 1700s African Americans took over one fifth of the population in America. With the large number of slaves being introduced into the colonies they had a great impact on the economy and in reshaping the population as a whole. The Africans brought their expertise of travel, planting and hunting to the new world. The African dugout canoe became the chief means of transportation in the colonies. This expertise from the Africans contributed greatly to the prosperity of South Carolina. Many slaves had their own gardens that they could tend to when they were not working. On Sundays slave holders usually gave the slaves the day off as the day of the Sabbath. It was on this day most slaves would tend to their garden, hunt, or fish. The slaves who were experienced could often complete their tasks in the early afternoon. With the growing rate of slavery, many slaves contemplated the idea of running away to try and gain their freedom. In 1693 Florida, which at that point was still part of Spain, granted the runaways that freedom stating if the runaways would convert to Catholicism they would be granted freedom. Since South Carolina was so close to Florida many slaves ran away and took advantage of this offer. In 1708 enslaved Indians composed as much as fourteen percent of South Carolina’s population. Why not more? Why did the colonists need to bring Africans over to the Americas when so many Indians already here? Indians posed a difficulty. Indians by and large remained free because they resisted and were difficult to control. Indians who were slaves were able to escape and not be caught, for unlike the Africans and the landowners, Indians could escape into the countryside, which they new intimately. Slavery was brutal; whipping occurred frequently and usually occurred in a public setting as an example to others. The work was backbreaking and conditions were not less than ideal. In 1712 the blacks had a rebellion in New York City, which lasted only one evening. But in 1739 in South Carolina the Stono Rebellion lasted several days. In both incidents many blacks lost their lives. The hopes of setting captured blacks free didn’t happen. In 1731 a law was put on the books prohibiting Africans from owning or possessing a gun and also fined owners for letting slaves wander at night alone. Running away, work resistance and revolution became the most common form of African resistance to slavery and helped to build a bond in the community as a whole. Slavery in the early colonies turned from Africans being able to earn their freedom to being treated brutally. Without the expertise from the Africans, the early American colonies would not have flourished as they did. Escaping slavery – the central form of labor both in the North and the South for several centuries – became the main aim for the African Americans of the time. Later, with the times of the Revolution the concept of the full citizenship was born in the minds of those who fought for freedom. The first goal – the abolition of slavery – was officially ratified in 1863, while the second – the granting of the citizenship – was documented only five years later. In reality, the fight for the real freedom and equality had just begun. The end of Reconstruction in 1877 signified the return to the inequality and racial prejudice, making basis for the later emergence of the Civil Rights Movement that signified further notion of freedom for the African Americans. The fight for slavery abolition resulted in the emancipation of the huge portion of the American inhabitants and the change of attitude to humans that are all â€Å"born free and equal†, according to the basic principles of the U. S. Constitution. The abolition of slavery was a dream for the African Americans that were brought to the America as slaves or born into it for many generations. Slavery in the United States was forced by enormous economic challenges, backed by country official legislation and the connivance of the church. The United States were destined to realize the meaning and the price of freedom largely due to the African Americans’ active fight for their basic human and civil rights. Thousands of people were depleted of their basic freedoms and dignity due to the difference in color and status. The change of this status that officially began in the late nineteenth century, lead not only to the transformation of the perception of the equality and freedom of the African Americans – it has forced a change in attitude to women’s rights, leading to women suffrage and further emancipation, making strong basis for the further acknowledgement of gender, racial, disability and sexual orientation equalities. Ever since the Fifteenth Amendment to the United States Constitution guarantees that â€Å"the right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color, or previous condition of servitude†1, the African Americans fight for the rights gave a chance to the real, unconditional freedom in the land of the free. This goal lead to further development of the civil rights movement, resulting in the acknowledgement of the document that would enable more equality despite gender, race, color, disability or religious belief. The Civil Rights Act of 1964 that extended voting rights and outlawed racial segregation in schools, at the workplace and in public accommodations, was another victory of the African American ancestors that fought for freedom back in the nineteenth century. It would be wrong to claim the fight for the equality is over, because even almost half a century later, practical issues of discrimination remain, although these cases are incomparably fewer than back into the times of the formation of the United States. The civil rights movement achieved impressive results in the fight for equality and it is important to study the African American History as it apparently constituted an impressive part of the history of the United States, starting from the early colonial days to the current events. The African American History has also formed the basic principles of the human coexistence within the country, creating the key laws on human rights and freedoms of the United States of America, which will surely determine the future of the nation.

Airline Distribution Systems in 2013 Essay

Web based commerce and internet technology have dramatically transformed the airline industry throughout the past thirteen years. The internet has enabled travelers to bypass the traditional distribution pattern of travel agencies and enabled airlines to sell more directly to passengers (European Commission, 2006). Since the mid-1990s there have been some major changes to the airline ticket distribution industry which were both a result of internet technologies (GAO, 2003). Major U. S. Airlines claimed a net operating loss of nearly $10 billion in 2002 and had paid over $7 billion to distribute tickets to consumers (GAO, 2013). These distribution expenses include booking fees to global distributions system to the amount of hundreds of millions of dollars (GAO, 2003). Airlines would receive a set booking fee each time an airline ticket was purchased through a travel agent by the global distribution system used by the travel agent (GAO, 2003). Due to most U. S. carriers being largely dependent on each of the global distribution systems for distributing tickets to different travel agent and consumers and consumers having to subscribe and pay fees to each, there are concerns that the global distributions systems may exercise market ower over them (GAO, 2013). Market power would allow global distribution systems to charge high, noncompetitive fees to airlines and in turn, these costs may be passed on to consumers (GAO, 2013). Environment Two major changes have occurred in the airline ticket distribution industry since the 1990s that have produced cost savings for some major U. S. airlines (GAO, 2013). The airlines have developed less expensive internet ticketing sites that bypass global distribution systems and their fees and encourage consumers to book directly rather than through travel agencies (GAO, 2013). Between the years 1999 and 2002 the average percentage of tickets booked on-line either from airlines or travel agencies grew from 7% to 30% (GAO, 2013). (See Appendix A). The next effort to reduce costs that airlines made was the cutting the amount of commissions they would pay to travel agencies (GAO, 2013). These attempts have still not eliminated the dependence airlines have on global distribution systems. In the report made by the U. S.  Government Accountability Office (GAO), they were unable to determine the exact relationship between global distribution system booking fees and related costs and were not able to reach any conclusions towards the potential exercise of market power by global distribution systems in the airline ticket distribution industry (GAO, 2013). Despite these reports there have still been numerous complaints from airlines that the companies who distribute airline flight and fare information are stifling competition and violating federal anti-trust laws (Koenig, 2011). Government reports help airlines because they investigate claims which are made that could possibly violate anti-trust laws and act as a middleman to solve disputes. Travelport and Sabre are two large global distribution systems which have had investigations against them (Koenig, 2011). A third company, Amadeus, is another global distribution system and the three of them make up for all of the distribution systems in the U. S. (Koenig, 2011). The justice department has clearly stepped into the mix by investigating claims of monopoly power and anti-trust. Only announcements of such investigations have taken place with no more real information being handed to the public. American and US Airways have both filed lawsuits against the global distribution giant, Sabre (Koenig, 2011). Sabre was actually created by American Airlines but later spun off as a separate company (Koenig, 2011). American also sued Travelport for using monopoly tactics and burying their flight information (Koenig, 2011). With Travelport accounting for nearly $2. billion of American’s ticket sales last year, it is hard to see where the complaint lies yet American is intent of wrongdoing and is asking for government assistance through lawsuits (Koenig, 2011). Government institutions try to protect consumers and smaller companies in tourism by imposing anti-discrimination and anti-trust regulation to ensure that real information is presented and competition levels remain satisfactory (Beatrice, Cezar, & Alexandra, 2013). Industry Airlines and independent travel agencies were amongst the first to take advantage of the marketing and sales opportunities the internet provided (Borenstein, & Rose, 2013). Airlines saw the internet as a way to bypass the traditional sales channel of travel agents in order to gain control of lower costing electronic ticketing methods (Borenstein, & Rose, 2013). The internet provided an alternative for airlines and lowered their fears of sales being blocked by ticketing agencies (Borenstein, & Rose, 2013). Domestic airlines in Mumbai, India are attempting to not follow the conventional fixed commission system (Cuckoo, 2005). The issue of commission reduction has caused a huge stand-off between travel agents and international airlines (Cuckoo, 2005). Legacy airlines let by flag carrier Air-India announced in May, 2005 that they would cut commissions from 9% to 5% (Cuckoo, 2005). British Airways joined in with this plan and other European and Southeast Asian carriers were expected to follow suit (Cuckoo, 2005). Travel agents are planning to fight the commission cuts through the Travel Agents Association of India (TAAI) and the Travel Agents Federation of India (TAFI) (Cuckoo, 2005). Just as many U. S. Carriers have claimed fear of, agents in India announced a plan to boycott Air-India and to stop selling their airline tickets in the event of commissions being cut (Cuckoo, 2005). Low-cost carriers have an advantage to the internet because they can start off with new models of distribution whereas legacy carriers have been using agents for decades and it is hard for them to step out (Cuckoo, 2005). Air Decan is a low-cost airline in India that sells 35% of its tickets online and has been knowingly boycotted by agents because it offers a lower price, usually around 5% less, to consumers who book directly from them (Cuckoo, 2005). An International low-cost airline, Air-Arabia, will not pay any commissions to travel agents with its India flights (Cuckoo, 2005). Air-India’s low-cost subsidiary, Air-India Express will also have their passengers pay handling fees instead of the airlines (Cuckoo, 2005). Another Airline to consider is Frontier who makes their lowest fares available on both their own website and on the big online travel agencies (OTAs) such as Priceline and Expedia (Perkins, 2012). There is a difference however, when passengers purchase from any other site or agency other than Frontier, they only earn half of the amount of frequent flyer miles, do not get advanced seating, and will face higher fees for various changes (Perkins, 2012). Marketing Strategy and Situational Analysis Some may find it peculiar that companies are now battling other companies that they themselves created. The three major GDS systems that control most airline ticket distribution worldwide, Amadeus, Sabre, and Travelport provide OTAs with fare information and transact sales (Perkins, 2012). OTAs are used by most airlines in order to sell their tickets along with their own websites. In addition to providing airfares OTAs also provide hotel accommodations, rental cars, and most other popular travel services (Perkins, 2012). Airlines now want to avoid fees which were once accumulated through the use of agents and GDSs charge them anywhere between $5 and $12 to book a flight while a transaction through their own system probably costs less than $1 (Perkins, 2012). Now that the internet source is available and extremely efficient the airlines want to gain control back of their customers in order to be able to sell them additional services (Perkins, 2012). On their own sites they could have the ability to present upgraded options such as a bundled no-fee fare packages and can provide passengers with the ability to book semi-premium economy seats (Perkins, 2012). Airlines also want to avoid the easiness of price comparisons passengers have with OTAs in order to maximize their profits once again. The problem, as stated earlier in this paper, is that GDSs account for more than half of their business and to cut them out of the transaction stream completely would be extremely difficult (Perkins, 2012). Airlines are also signed into long-term GDS contracts that require that they provide the same fares to GDS that they have available on their website (Perkins, 2012). A third problem is that large buyers and managers of business travel are extremely dependents on GDS for various reasons such as fare, price, and other information that is required to control travel costs (Perkins, 2012). Attempts to move completely from GDS systems by most airlines have been unsuccessful but many have been able to find ways to shun them. Southwest is one who has managed to have their own system entirely because if you want to fly Southwest, you have to go to Southwest (Perkins, 2012). Allegiant and Spirit also provide only limited participation with GDS (Perkins, 2012). Others get around the contractual agreement of having the same fares available by offering discount promotional codes for direct bookings (Perkins, 2012). With the advantages of control of ticket distribution for the airlines stated and the various strategies used by each airline along with their strengths discussed, let us now look at the weaknesses of these distribution systems. The main weakness is that with the amount of passengers that do use OTAs, there’s a chance they will not use airlines that are not on these sites due to their popularity. Passengers want to be able to compare prices and OTAs provide just that. Passengers may not be willing to research fares on their own and may only go to their preferred airline if OTAs aren’t available. Airlines win if they are the airline of choice but if they aren’t they could be losing potential customers. Commercial Websites This study will look at two individual airlines and their websites and discuss how successful they are. According to Google Trends, the internet is the number one source for both business and leisure travel and roughly 83% of personal travelers use it as well as 77% of business travelers (The Economist, 2009). The two airlines in this review will be United Airlines and Southwest Airlines. Commercial websites need to consider what customers experience when searching for information, evaluating alternative products, and purchasing them (Peter, & Donnelly, 2013). We will be reviewing these three basic areas of which web site designers should consider for each United and Continental Airlines. With information search, there needs to be ease of navigation, fast page downloads, effective search features, and frequent product updates (Peter, & Donnelly, 2013). When evaluating alternatives, designers need to consider the ease of product comparisons, product descriptions, ease of contacting customer service representatives, and a status of the availability of items (Peter, & Donnelly, 2013). With the purchase evaluation, designers need to consider security and privacy issues, the checkout process, payment options, delivery options, and the ordering instructions (Peter, & Donnelly, 2013). United Airlines makes navigation simple by placing their flight search table right on the home page. They also include a section for members to sign in, passengers to print their boarding pass, check a flight status, and to change or view reservations right on the home page. These are some of their most used services which are placed right in plain sight on their home page making the information users are looking for easily obtainable. When searching for a flight the speed of the page downloads is quite fast especially considering that a query is being made and information has to be sorted. The results of the search used for this study came back fast and with more information than even requested. The site included many additional options to narrow the search down and was very up to date. When a search for a flight is made the results make it easy to compare similar flights available and even points to the direction of which options could/would give passengers a lower fare. The descriptions are accurate, clear, and comprehensive enough for customers to make informed decisions when choosing a flight. Customer service can easily be reached by clicking on the top right corner of the screen no matter what page of the site you are on. When a search is made unavailable flights or booked flights are not even visible making it easy for customers to view the availability of their options. When considering the purchase made on a web site, it is clear that United has all of the issues covered from security and privacy issues to ordering instructions. United airlines guides customers from the start of their home page all the way to the end purchase with ease. The steps are clear and the purchase can be made in a reasonable amount of time. Customers have various payment options such as credit card, PayPal, or buy it now as well. Southwest Airlines uses a more simplified homepage yet still has the flight search on their home screen to allow for ease of navigation. On top of providing ease of navigation they also use their home page to advertise promotions. The speed of pages downloads is quick, the returned information was effective, and the flight schedules were all up to date on Southwest’s site. They also provided multiple flights to choose from that incorporated a variety of different prices. The promotions continued through the flight selection process as well going on to add discounts if a hotel were to be booked as well. Flight comparisons and descriptions were easy to compare and were accurate, clear, and comprehensive enough to allow consumers to make informed decisions. Something I was surprised to find about the site was that the customer service phone number was not extremely easy to locate. Customers have to click through about 3 pages before a number is given and that is after they find the tiny help icon at the top of the screen. The status of availability is done the same whereas unavailable seating or options are not even displayed to customers. Southwest covers issues of security and privacy all the way to ordering instructions. Southwest Airlines guides customers from the start of their home page all the way to the end purchase with ease. The steps are clear and the purchase can be made in a reasonable amount of time. Customers have various payment options such as credit card, PayPal, or buy it now as well. Comparing the two directly, Southwest’s homepage is more simple and easier for consumers to take in whereas United has an abundant amount of options to choose from. They are both however, very effective and successful commercial websites and follow all of the guidelines mentioned above from the text with the exception of a number for customer service being more difficult to find on Southwest’s website (Peter, & Donnelly, 2013).