Return to search

Commercialisation of a strategic government-owned military institute : a market orientated approach to the development of a marketing strategy for OTB test range

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: OTB, a Division of Denel, is a multi purpose test range specialising in the in-flight
testing of guided missile systems and aircraft. Originally established as a launch
facility for an ambitious low earth orbit satellite programme, and with a secondary
function to support the South African military industry, its raison d'etre stemmed from
strategic military considerations.
Changes in the political and economical scene, which started in the early nineties,
led to the cancellation of the satellite programme and a dramatic downswing in the
production of arms in South Africa. This rendered much of the capability of OTB
redundant. Although the government signalled its desire to maintain access to the
services of a test range in order to support an indigenous arms industry, OTB was
structured as a division of Denel at its formation as a company operated for profit.
This left OTB faced with the challenge to replace government grant funding with
revenues earned in the market place. Furthermore, the drastically lower domestic
military spending provided insufficient business to support a test range at the
technological level required to serve the demands of modern weapons testing. In
order to survive, OTB had to be successful in broadening its client base in a highly
competitive commercial environment, a feat only possible with the implementation of
an effective marketing strategy.
The objective of this study is to formulate a marketing strategy for OTB based on a
market orientated approach, bearing in mind that the task at hand is the marketing of
a service. The study covers the relevant marketing theory in some depth and
employs it as a basis to conduct a situational review followed by the development of
an appropriate marketing mix and implementation plan.
Even though the development of a marketing strategy for the test range produces
some unique issues to address, the applicability and extent of coverage afforded by
existing marketing theory suggest that OTB's circumstances show significant
commonality with those encountered in other situations and therefore may find
broader application. Some of the notable findings are: (1) the integrated marketing
effort demanded by the market orientated approach; (2) the distinctive elements
contained in the marketing mix of a service organisation; and (3) the possibility and
need to retain a strategically founded market while developing a commercially driven
market requiring particularly sharp market segmentation and distinctive strategies
respectively. / AFRIKAANSE OPSOMMING: OTB, In Divisie van Denel, is 'n multi-aanwendbare toetsbaan wat spesialiseer in die
in-vlug toetsing van geleide missiele en vliegtuie. Die toetsbaan is oorspronklik
ontwikkel as 'n fasiliteit vir die lansering van lae aardbaan satelliete met, as
sekondere funksie, die ondersteuning van die Suid-Afrikaanse militere industrie. Die
aanvanklike bestaansreg van die fasiliteit was dus gesetel in militer-strategiese
oorwegings.
In die vroee neentigs het politieke en ekonomiese veranderinge wat aan die
ontwikkel was gelei tot die kansellering van die satellietprogram en 'n drastiese
afname in die produksie van krygstuig in Suid-Afrika. Die gevolg was 'n
onaanvaarbare onderbenutting van die toetsbaanvermoens en -kapasiteit. Alhoewel
die regering aangedui het dat dit van voornemens was om toegang tot 'n
funksionerende toetsbaan te verseker ten einde die plaaslike militere industrie te
ondersteun, is OTB met die stigting van Denel as 'n divisie daarvan gestruktureer
met die doel om winsgewend te opereer. Dit het OTB gelaat met die uitdaging om 'n
staatsbefondste begroting met 'n inkomste uit die kommersiele markte te vervang.
Voorts het die dramatiese afname in die plaaslike militere spandering tot sodanige
verlaging van inkomste uit hierdie bron gelei dat dit nie meer voldoende was om die
toetsbaan op die verlangde tegnologiese vlak te onderhou nie. Ten einde te oorleef
moes OTB sy klientebasis verbreed in 'n hoogs kompeterende kommersiele
omgewing, 'n doelwit wat slegs haalbaar is met die implementering van 'n effektiewe
bemarkingstrategie.
Die doel van hierdie studie is die formulering van 'n bemarkingstrategie vir OTB
gebaseer op 'n markgeorienteerde benadering met inagneming dat die taak voor
hande die bemarking van 'n diens is. Die studie dek die relevante bemarkingsteorie
tot 'n redelike mate en steun voorts daarop om 'n situasie analise, gevolg deur die
ontwikkeling van 'n gepaste bemarkingsamesteliing (marketing mix) en
implementeringsplan te ontwikkel.
Selfs al lewer die ontwikkeling van 'n bemarkingsplan vir die toetsbaan sommige
unieke aspekte op, dui die toepaslikheid van, en die mate waartoe die bestaande
teorie die probleme aanspreek daarop dat OTB se omstandighede duidelike
ooreenkomste toon met die wat reeds in ander situasies ondervind is. Die
bevindinge hier mag dus wyer toepassing hĂȘ. Sommige van die noemenswaardige
waarnemings is: (1) die geintegreerde bemarkingpoging wat deur die
markgeorienteerde benadering vereis word; (2) die onderskeidende elemente wat in
die bemarkingsamestelling (marketing mix) vir dienste voorkom; en (3) die
moontlikheid en belangrikheid om 'n strategies gefundeerde mark te behou terwyl 'n
kommersiele mark ontwikkel word met die skerp marksegmentering en spesifiek
gerigte strategie wat per marksegment onderskeidelik nodig is.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50297
Date12 1900
CreatorsWessels, P. G. W.
ContributorsLoubser, S., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format111 p. : ill.
RightsStellenbosch University

Page generated in 0.0025 seconds