Edudorm Facebook

 The Marketing Environment

 

             The Cannabidiol (CBD) market is rapidly growing attracting entrepreneurs wishing to capitalize on the growth. The reclassification of the substance by the World Health Organization has led to countries such as South Africa legalizing the use of CBD for medicinal purposes. However, there are strict regulation that must be complied to operate in the country (IV V.O.F., 2019). Our company is aiming to take advantage of this market gap, however a good marketing strategy is essential to ensure short-term and long-term survival of the business.

Question One

Gaps in the Marketing Process

            CBD products are relatively new products in the South African market, hence the need to focus educating customers to foster understanding. Most consumers do not understand the nature, working, benefits, and safety of the products. The gap has led to increased misinformation and misunderstandings impacting the market negatively (Roetzer, 2014). The second gap that exists is ensuring compliance to the regulations and compliance measures in place. The company will have to ensure it sets up testing laboratories to ensure the products only contain CBD. The company will also have to source its products only from reputable suppliers in order to compete favorably with established businesses such as GooLeaf. The standards will ensure the company delivers a quality finished product resulting in consumer loyalty.

The third marketing gap identified is establishing vertical supply chain. The ministry of health is stringent in the application of regulations despite CBD products being legal. The company growing its own products will mitigate the risk of low quality raw materials from suppliers. The company may have to outsource the farming because it is still illegal to grow hemp in South Africa. But the benefits outweigh the risks because it might be difficult to find a supplier that meets the rigorous standards required of the finished products. The company can also venture into organic hemp products, thereby becoming a market leader in the country and the region in future.

Macro-environment of the Business

            The first macro-environment variable that affects the business is the political and regulatory factor. There is uncertainty concerning future legality of the products as wholesale distribution was only passed on temporary resolution. The department of health also places stringent operating standards that if the business does not adhere to can lead to it losing its license. Another variable is technological factors. The company has to invest in the latest technology such as in its lab testing laboratories to ensure it adheres to set standards and delivers a superior finished products. The variable is the legal aspect such that the company can face crippling lawsuits especially for a product that is less understood. The final variable is economic factors. Although the market for the products is growing, consumer needs and preferences can change overnight leading to losses especially for an expensive venture such as cannabidiol products.

Question Two

Behavioral Segmentation

            The segmentation classifies the South African CBD oil consumers into groups based on the behavioral patterns they display. The first behavioral trends classified are those who use CBD oil to maintain their skins through using CBD oil skin care products. They use the oils as skin care products to protect against skin conditions such as acne and inflammations. The other behavioral segmentation is that of sportsmen and third segment is those who want to care for the children and the pets. The segment of consumers purchases CBD oil products because of the benefits they derive and satisfaction they get by using the company’s products. Over time they develop loyalty for the brand because they cannot products of the same quality elsewhere.

Positioning Method

            The first positioning method that suitable to the market as a company that offers high quality products and value. By offering products that meet the needs of the targeted market such as sportsmen and those suffering from various conditions such as insomnia and anxiety, the company will be able to position itself strategically. The products also complying to set standards in the market will be able to position itself as one that significant value at the market price (Pertwee, 2016). The company also using a vertical supply chain will ensure consumers only receive the best products. The raw materials are grown in ideal conditions to produce the best quality of CBD oils currently available in the South African market. The products undergo rigorous testing at the laboratory to ensure there is no presence of harmful substances such as metals.

            Another way the company will position itself is against competition. The main competitor in the South African market is Goodleaf (Motumi, 2020). The company is the market leader and has already established market niches that it targets. The new company will have to gain the trust of CBD oil consumers by offering all the relevant information through multiple channels such as online and in store. The company aims to offer quality products at a competitive price to effectively compete with already established businesses in the market. Furthermore, the company will have to diversify its product offering to serve various segments in order to compete effectively. Finally, the company will engage in an aggressive expansionary plan in Cape Town and Johannesburg to be closer to the customers they serve.

Question Three

            The first stage will be aggressive marketing campaign to create awareness among CBD oil users about the availability and value proposition of the company’s products. Creating awareness lets the targeted consumers of the availability of the new product. The second stage will be creating interest in the products. The stage communicates the value proposition to the customer letting them know that the product can perform better than those already available in the market. Customers will then evaluate the products to make a decision whether to purchase. At this stage, the customer will make a decision to buy the company’s product to see whether it is better than already available in the market. Therefore, the fourth stage is the trial phase where the consumer tests the product to find out if it meets his or her expectations (Ferrell & Hartline, 2014). Finally, having tried the products, they can now adopt it making frequent and full purchases (Kurtz et al., 2019). The marketing department will try to help the customers in the market move through these stages as fast as possible.

            The product life cycle implies to the time takes for the product to move from introduction to being retired from the shelves. The four stages include introduction, growth, maturity, and decline. The product life cycle will hopefully move from introduction, growth, and then maturity. To ensure that the product does not enter the decline phase early, the development and testing will be very vital to ensure that the company introduces a quality product that solves an existing problem in the market. The company will also strive to competitively price the new product to fuel growth and then maturity. The set price can determine the sales as consumers may find cheaper substitutes available from competitors.  However, all products phase out at some point due to factors such as competition, saturation, and falling sales. The company will invest in research and development to ensure that there are new product offerings to replace any product that may be experiencing the decline phase. Information about the life cycle of the product will inform decision-making regarding pricing, promotion, expansion, and cost-cutting measures. 

Question Four

            The appropriate pricing strategy for this new product will be price skimming. The company will first set a high price above the market average as most consumers in the South African associate a higher price to improved quality (McGrath & Gourlay, 2012). The company will then determine the average number of consumers willing to pay the higher price and lower it stepwise to derive maximum profits from each segment. As a result, the initial sales of the new CBD oil product will be lower, but the company will be able to break-even quickly because of higher profits realized.

            The pricing strategy will strive to enhance sales of the products as well as creating a foundation for future growth of the company. The guidelines for setting the prices will consider the target customers of the company’s products, the relationship between price and quality, and the prices charged by the competitors (Pride & Ferrell, 2014). The pricing strategy will be pegged on the ability to drive revenues through sales rather than merely setting price. Though the company will set a price above the market price, it will eventually lower it to an equilibrium that attracts the optimal sales.  

 

 

 

 

 

 

References

Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy: Text and cases. Mason, OH: South-Western/Cengage Learning.

IV V.O.F. (15 Nov. 2019). CBD Oil is Legal in South Africa. Here’s What You Need to Know. BizCommunity. https://www.bizcommunity.com/Article/196/398/197975.html. Accessed 12 Oct. 2020

Kurtz, D. L., Berston, S., & Boone, L. E. (2019). Contemporary business. John Wiley & Sons. Print.

McGrath, R. G., & Gourlay, A. (2012). The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business. Boston: Harvard Business Review Press.

Motumi, M. (24 Mar. 2020). Cannabis Oil Business on the Rise in South Africa. IOL. https://www.iol.co.za/the-star/news/cannabis-oil-business-on-the-rise-in-south-africa-45452872. Accessed 12 Oct. 2020

Pertwee, R. G. (2016). Handbook of cannabis. Oxford University Press. Print.

Pride, W. M., & Ferrell, O. C. (2014). Marketing. Australia: South-Western Cengage Learning.

 Roetzer, P. (2014). The marketing performance blueprint: Strategies and technologies to build and measure business success. John Wiley & Sons. Print.

1588 Words  5 Pages

 

How do consumers use brand affiliations on social media to create an image?

 

 

  1. Abstract

            Online platforms and social networks positively influence the consumer-brand relationship. In this connective world, consumption behaviours evolve as an essential part of persons' self-concept while identities in social media become more prominence on the same media platforms. Consumers attempt to form collaboration and commitment through online presence; this is done by offering brands identification. This paper aims to investigate how consumers present themselves using brand affiliation on social media to create an image. Findings observed from this research revealed different factors that contribute on how consumers utilize brands to create an image online; brand affiliation, seeking opportunity, conversation, investigation, entertainment, motivation, perception, as well as attitude. 

 

 

 

 

 

 

 

 

  1. Introduction

            Social media (SM) with the entirety of its presentations and increasing prominence creates huge commitments to organizations in quest for buyer commitment, brand mindfulness and network. Due to the current competitive environment, collaboration and feasible information assets are more indispensable than any other time in recent memory for brands. Consumers produced substance and experience commands the advertising correspondence usage over interpersonal organizations. It causes Social Media to be essential for giant global firms, yet additionally for little and medium measured organizations, alongside charitable associations and administrative offices too. However, utilizing SM is not a simple undertaking and may require better approaches for intuition.

            Consumers are utilizing Social Media not only for digital advertisement, but similarly for selling their own life experiences, selling innovative ideas, and building opportunities for their motivation. There are numerous kinds of Social Media platforms which aid consumer experiences such as blogs, content community, and social networking sites. Content generated by the user is a vital means through which consumers prompt themselves to have clear communication with others online. There is a great potential to shape consumer perceptions drastically to challenge marketing professionals; this can be through user-generated content. It is therefore clear that with its diverse domain Social Media contents customer’s aspiration of engagement with a product which they desire to be associated with their daily experiences. This paper, therefore, aims at investigating how consumers present themselves using brand affiliation on social media to create an image.

  1. Literature Review

            A lot of scholars have analyzed the factors that contribute to how consumers use brands to create an image online. SM drives purchasers to presume of organization created advertisements in SM while the genuine experience of experienced shopper is effectively achievable (Chen &Wang, 2017). It is vital to pay attention to SM features to search the fundamental concepts of implication connected to social media utilization. Klassen et al. (2018) demonstrate these features as; contribution, honesty, communication, and linkage. An ideal medium for consumers looking for ways to getting engagement and loyalty with their fans is provided through these features. Communities enhance an enhanced distribution on social networks that include personal feelings, as well as the opportunity to get access to those who are not yet in their social networks (Davis, Piven &Breazeale, 2014). Buyers are bound to depend on proposals from a genuine customer, as opposed to a promoting message. Even though the consumer choice cycle has fundamentally changed, the customers' support cycle of their buy choices has not.

            Dinnie et al., 2010 expressed that, where it was once enough to go out on the town to shop and buy, the present shoppers do huge online exploration and data sharing using sites, scaled-down sites, gatherings. The significant communication difficulties for publicities are distinguishing the current situation in advancement, as well as detecting the upcoming influencers in social media (Hollenbeck & Kaikati, 2012). In this case, consumers obtain and convey products information through social media primarily as they are on their daily recreation arenas such as gym via social networks.

            Consumers, however, have difficult times in making decisions of the brand to use on their social media; this is because the brand has to be appealing to their fans. According to Chen and Wang (2017), there is a different process of decision making which the consumer should follow for appropriate implications, as shown in figure 1 in the appendix. SM life stages have been significantly used in recent years as branding platforms, as shown in figure 2 in the appendix (Chen and Wang, 2017). The model demonstrates the rate of social media platform usage in percentages.

  1. Methodology

           The essential goal of this investigation is to build up numerous scales estimating the Social Media clients' inspirations to collaborate with and additionally concerning products above informal organizations. Effective nearness picks up significance for the organizations every single day to procure upper hand. Understanding the buyers' essential inspirations of their utilization associated exercises over Social Media is vital for advertisers to grow healthier methodologies. They are building up a thorough and exact scale comprised the significant reason for this examination in the quest for both hypothetical and administrative results. Another target of the study is breaking down and looking at the overall significance of every inspiration factor essential the online association conduct of shoppers with brands. 

            To build up an inspiration scale, two centre gatherings and four profundity dialogues were led after the writing audit. Themes of centre gatherings were chosen from the graduate students from the commercial organization office who are dynamic Social Media clients. Profundity consultations were controlled with online mass media pros from driving brands of various item classes. This subjective stage and past exploration of the Social Media utilization gave the base of our examination. After the identification of assorted utilization connected Social Media use designs in this emotional stage, things were created to quantify each extraordinary thought process. The last centre gathering was used with the graduate students to test the phrasing and lucidity of the created things.

From this research, the following interview transcript can be used as methodology for interview to gather information related to the research. The transcript involves questions that may be of help in gathering research information.

How do consumers use brand affiliations on social media to create an image?

  1. According to you what is the goal of consumer creating image on social media?
  2. How can you define brand affiliation?
  3. How does a business benefit from social media?
  4. What are some of strategy that can assist you to succeed as a social media consumer?
  5. Are all social media platforms the same in terms of customer population?
  6. What is the process you may use to create image in social media?
  7. How do you get more likes on social media?
  8. How can you measure success based on brand affiliation of social media?
  9. Do you think creating image manipulates consumer’s behavior?
  10. How do you choose the brand you want to create image with in social media?
  11. Results (findings)

           Customers' inspirations to communicate with, as well as the products over Social Media, are broke down, and a connected gauge was created. Psychometric possessions and experimental discoveries showed that the measure is substantial in various examples and inside dependable. Five unmistakable and reliable inspirations were investigated as, product alliance, discussion; prospect chasing, amusement and examination. Motivations are the necessities, which lead the individual to look for fulfilment (Chen &Wang, 2017). As indicated by this definition, investigated inspirations of shoppers in this research, which causes them to get involved in with a brand over SM, can be explained as cautiously for powerful showcasing suggestions in informal organizations. Bearing in mind the significance of Social Media as an apparatus for variety commitment and networks, the connection and dialogue purposes may have a vital aim in Social Media showcasing recommendations. These discoveries will add to both customer conduct hypothesis and ramifications of online advertisers.

  1. Implications and Conclusions

            This research aimed to investigate how consumers present themselves using brand affiliation on social media to create an image. With the findings and results, the paper provides practical implications to consumers. It can attest that this research is beneficial to the consumers in the sense that they use different brands to create an impression of their reputation through social media. Findings observed from this research revealed other factors that contribute on how consumers utilize brands to create an image online; brand affiliation, seeking opportunity, conversation, investigation, entertainment, motivation, perception, as well as attitude.   

 

 

 

 

 

 

 

 

 

 

 

  1. Reference

Chen, H. and Wang, Y., 2017. Connecting or disconnecting: luxury branding on social media       and affluent Chinese female consumers’ interpretations. Journal of Brand          Management24(6), pp.562-574.

Davis, R., Piven, I. and Breazeale, M., 2014. Conceptualizing the brand in social media    community: The five sources model. Journal of Retailing and consumer services21(4),      pp.468-481.

Dinnie, K., Melewar, T.C., Pike, S., Bianchi, C., Kerr, G. and Patti, C., 2010. Consumer‐based     brand equity for Australia as a long‐haul tourism destination in an emerging       market. International marketing review.

Goh, K.Y., Heng, C.S. and Lin, Z., 2013. Social media brand community and consumer    behavior: Quantifying the relative impact of user-and marketer-generated       content. Information Systems Research24(1), pp.88-107.

Hollenbeck, C.R. and Kaikati, A.M., 2012. Consumers' use of brands to reflect their actual and    ideal selves on Facebook. International Journal of Research in Marketing29(4), pp.395-        405.

Klassen, K.M., Borleis, E.S., Brennan, L., Reid, M., McCaffrey, T.A. and Lim, M.S., 2018.         What people “like”: analysis of social media strategies used by food industry brands,     lifestyle brands, and health promotion organizations on Facebook and Instagram. Journal         of medical Internet research20(6), p.e10227.

 

 

 

  1. Appendix

Figure 1: decision making process for consumers in five stages.

Figure 2: usage rate of social media platforms in Australian.

1582 Words  5 Pages

 

10 Laws of Social Media Marketing

 

Introduction

The use of social media spaces and websites to promote a product or a service is known as social media marketing. It entails creating and sharing content on social media platforms and networks. It has the power to attract a big audience but that is when the social media marketing fundamentals are understood. Social media marketing helps build a brand, create and share content, and promote a product or a service thus increasing the customer and audience base.

 The law of listening is one law that helps to build a foundation that will serve customers. For one to be successful in social media marketing, they need to be more focused on listening and not talking. They need to read their audience’s content and be a part of online discussions to be able to know what they like. That is the only way one can create content that is valuable to the audience (Gunelius 2019). The law of focus is significant in terms of focusing on a particular specialty rather than focus on a lot of things. Specializing in a brand is a content marketing strategy that builds a strong brand and is more successful compared to a wide range strategy that tries to be all things. Focusing on a brand helps one to give it all the energy and therefore has higher chances of thriving and satisfying its audience.

The law of quality involves putting your focus on the quality of your content. It focuses on quality rather than quantity. For example, it is better to connect and deliver to a few people who read and share your content with their audiences rather than more people who make connections for one time and then disappear. The fewer people who connect are more important because they value your content and that is the reason they share it with others. Social media and content marketing takes time for one to be successful and gain an audience. Therefore the power of patience is important (Gunelius 2019). It takes time to convince a single person and so getting an audience can be a challenge that needs a lot of patience. The law of compounding is important in that when you give your audience quality content, they share and converse it on other social media platforms like Twitter, Facebook, and blogs. This raises your business ranks more so on google where it can be found on a single search.

The law of influence involves spending time to find influencers online who are in your market and have quality audiences. Also, it is important to find influencers that could be interested in your services or products (Gunelius 2019). It is good to connect with the influencers because if they like your content, it is likely that they will share it with their followers, which will also increase your audience. If you keep promoting your products and services to people, they eventually stop listening and following. This is where the law of value comes in. It is important to add value to the conversation and focus on creating great content and associating and building relationships with the online influencers who will eventually speed up the marketing process for your business.

 The law of acknowledgment involves acknowledging every person who tries to connect with you. This is because developing relationships is a significant part of your success in social media marketing (Gunelius 2019). The law of accessibility means that you should always be available for your audience. You have to participate in the conversations they have and engage with them. The law of reciprocity entails reciprocating to other people. If people share your content, it is only fair and wise if you do the same. Sharing and discussing other people’s content is important.

Conclusion

Social media marketing includes making, and sharing content through social media platforms. There are important laws that help to create good content and attract an audience. These laws help in building a foundation that will serve customers. They also help in specializing in a particular field, creating quality content, and having a lot of patience. The laws give insight into the power of influencers, value, acknowledgment, and reciprocation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 Gunelius S. (2019) 10 Laws of Social Media Marketing. Retrieved from https://www.entrepreneur.com/slideshow/299334

 

 

 

 

 

716 Words  2 Pages

 GoPro Marketing

  1. What are the points of difference, or unique attributes, for GoPro products?

One of the unique attributes associated with GoPro products is the freedom they offer the consumer. The GoPro camera for instance was designed in such a way that it could be strapped on the user’s wrists. The feature enabled the user to capture video and pictures while still enjoying then moment as the camera could capture the moments without the user having to shift attention to what was being recorded. The position on the wrist ensured that surfers could capture their experience without losing concentration on the board and this was a step ahead of what other products in the market offered. 

Another unique attribute is the attention to detail that GoPro invests in research to ensure that the products meet the consumer needs. A good example is an innovation that has been put into designing the GoPro camera. When the products were first launched, it was rather clunky, big, and required the user to take images to be printed before viewing. After more analysis of the market, however, the company innovated its products and came up with devices such as the Surf Hero, Digital Hero, and HD HERO which were lighter, easier to use, and could even capture video. Other than capturing moments, the company has created a website where users can share images and video captured using GoPro products. The website acts as a platform for users to share their experience and also a community where customers share the best ways to get the most out of GoPro products, thus creating more demand for the products and services. 

Lastly, GoPro products are different from others in the market in that they bring users together after purchase and this is facilitated by the company. The organization has created the GoPro movement where users share products and experiences through a platform created by the organization. Through content marketing, GoPro uses videos, podcasts, and other content from consumers that are distributed to specific audiences in the organization’s target market. The company engages with its consumers and buys rights to some of the videos recorded using their products and edits them to create inspiring content that is later distributed to the public and loyal customers. The content is used to attract potential customers and inform the target audience of some of the products that are in the market or in the process of being launched. The approach has created a community where surfers, skydivers, pilots, rock stars, and other professionals in their respective fields engage with other GoPro product consumers. The platform not only offers a demonstration for GoPro products but also helps generate ideas on what to innovate as well as other needs that exist in the market. 

  1. What is GoPro’s primary target markets? How does content marketing influence these markets? 

GoPro’s primary target market constitutes of employed individuals who are athletic and belong to the wealthy or above-average class in society. Since GoPro products are shopping products, the target audience is someone who has a lifestyle that warrants the use of devices such as the HD HERO camera and other products. The audience also constitutes of athletes as they are the ones who mostly require cameras with features that offer freedom to the user to engage in other activities such as surfing. 

The primary target markets also constitute individuals with a stable income and are concerned with preserving the environment as is a common trend in GoPro’s market. To offer high-quality products, GoPro has to constantly innovate and develop new products. Users must, therefore, have the financial ability to keep up with the updates and also create a steady demand for the products created by the company. The organization has also made steps to make its activities as environmentally friendly as possible and this is in line with current trends in the market where consumers are more inclined to select products that are associated with a brand that preserves the environment and enhances its sustainability. 

The target market is also segmented into users that are tech-savvy and have a social media following. Other than selling products, GoPro also offers a service on social media platforms where users share their experiences using GoPro products. Users with a high social media following promote the products to all their followers and are therefore an important element in the success of ‘The GoPro Movement. The company also uses content marketing to influence its market and create a positive impact on the target audience. A common trend is the emergence of consumers who want to be associated with organizations whose brands are authentic and offer more than just a product. This has prompted GoPro to engage with its target audience on different platforms other than those used to sell the company products and services. 

A good example is ‘The GoPro Movement’ which functions as a marketing platform and also after-sales services. Although GoPro products are available to all types of clients, the company has created a community through social media. The platform draws attention away from the products and takes a pause from selling ideas to the customers and instead focuses on showing experiences and the memories that people create when they are free to just enjoy themselves. GoPro’s approach is one that draws attention to how much fun and enjoyment that is associated with GoPro products. The videos and images highlight experiences rather than products and this allows the company to sell more than just an idea. Also, focusing on the experiences allows the users to create a community where they can share ideas and opinions as well as market the products to other potential clients. The platform can be used to collect data on what innovations to invest in as well as how to anticipate future needs and demand.

  1. Describe the new-product development process used at GoPro. What are the similarities and differences in the process described in Figure 9-4? 

The new product development process used at GoPro bears a lot of similarities to the process described in figure 9-4. They however differ in the new product strategy development stage. The first stage at GoPro involves focusing on social trends through shared experiences to determine what direction to take when deciding to launch a new product or innovate an already existing one. The approach has allowed the organization to identify an unsatisfied need in the market where consumers needed a device that could capture images and video in situations where common devices like smartphones and cameras could not. Their approach is however different from the one described in figure 9-4. From the figure description, ideas in the new product strategy development stage involve an analysis of the organization to identify strengths and opportunities that can be utilized to invent or innovate products. Although the overall goal is to meet customer demands and satisfy their needs through new products and innovations, GoPro’s approach is mostly influenced by satisfying customer needs while the figure approach focuses on opportunities and an organization’s ability to exploit them. 

           There are however similarities in how both approaches tackle idea generation. Some of the ideas are sourced from suggestions made by an engineer or other members of the team. There is however a formulaic approach where departments are tasked with the responsibility of generating ideas on how to meet customer demands. Employees are motivated with awards and this greatly promotes the generation of ideas on how to innovate and invent new products. Another similarity is in the screening and evaluation stage where both assess ideas generated to determine which need to be developed further. The stage also involves innovation to discern what steps can be taken to offer not just what the customers want, but also what they need but are not yet aware of. 

           After idea generation, the two moves to the business analysis stage where the idea is presented as a business opportunity. In this stage, the organization assesses the impact that the new product will have in the market, how it will affect the sales of other products from GoPro, and the competitive advantage it will create for the company. The idea is assessed on its ability to break even as well as how long it will take for the competition to come up with a product to match it in the market. The next step involves creating a prototype where the idea is made into a product. After a final design is created, the process moves to the market testing stage. Employees act as test candidates who try out products and give feedback before making them available to loyal consumers, influencers, and relevant users. Market testing leads to commercialization which is the final stage in the process. The company operates using a marketing plan which facilitates launching the product into the market. 

  1. Which of the eight reasons for new-product failure did GoPro avoid to ensure the success of its products?

One reason behind GoPro’s success is as a result of how the company approached an insignificant point of difference. When launching new products, having a distinctive point of difference is crucial as it ensures that the product will be in a position to beat the competition. This is often achieved by ensuring that the new product has superior characteristics to products already in the market and that it can satisfy the customer needs and demands. For GoPro, this was achieved by ensuring that the products could be used without interrupting whatever activity the user was engaged in. for surfers and athletes, the cameras allow the users to capture the moment without getting distracted by the recording process as GoPro products are designed in such a way that they can record on their own. This unique character set GoPro products apart from others in the market this giving them a competitive advantage. 

Poor execution of the marketing mix has also been attributed as one of the reasons why new products fail. To overcome this barrier, GoPro engages in market analysis and customer testimonials to collect information regarding how to go about innovation and inventing new products. The GoPro Movement has created a platform where customers share experiences as well as ideas of new developments and products that could be introduced in the market. The information collected allows GoPro to come up with ideal products and prices that are designed to offer value for money. The company engages customers on various platforms and this ensures that they are kept in the know and are aware of new products and are therefore more likely to seek them out after launch. It also helps create a platform where the company can engage with the target audience and come up with a marketing mix that favors all parties involved. 

  1. Identify one new-product idea you would suggest that GoPro evaluate.

A New Product that GoPro should consider is bags for GoPro products. Since the target audience comprises of people who engage in outdoor activities, the bags could be designed to carry equipment as well as GoPro products. The Go Bags could carry the GoPro logo and take on various designs to suit the users' needs. The Go Bags could be designed for surfers, skydivers, and other types of athletes to carry different equipment such as surfboards, ropes, and other accessories. The new products would create a new platform to market the company products and logo by showcasing the company logo on the bags. The bags can also add convenience that will be used as a tool to differentiate GoPro products from others in the market. 

 

 

 

 

 

 

 

Reference

n.a, (n.d) “Developing new products and services” n.p

1939 Words  7 Pages

 

Customer Service Experience

Bad experience

            About a week ago, I decided to order a game online for my Play Station as a way to cope with the boredom of having to stay indoors. Generally, I am an outdoors person and therefore do most of my shopping in person. With the current state of the world, however, buying the video game online was easier than looking for a physical shop. Being my first time, I decided to research the best sites to buy play station four games. I settled for XYZ Gamers, a gaming company that trades in Play Station games and accessories. The company had an appealing offer for first-time customers who ordered more than two games. The company offered free delivery to those who qualified for the promotion and after filling the form and paying for three games, I was alerted that the delivery would arrive in the next 24 hours. I was impressed by both the company’s advertising technique and its commitment to offer fast services. 

            The decision to shop online gave me my first real-life experience of failure and also recovery failure. Two days after my purchase, the company failed to deliver the package as promised. The company had also failed to make any attempt to contact me and provide updates as to why the delivery was taking longer than agreed upon. The experience was an example of how service failure occurs within organizations. XYZ Gamers had the responsibility to offer a service by delivering the package but failed to do so. After the third day, I decided to contact the company through the contact information provided on their website. My first attempt to reach a customer care agent was unsuccessful as I was put on hold for more than two hours. The frustration got even worse when I realized that the company did not have an alternative contact other than the telephone number. 

            Employees play an important role in service as they act as representatives for the company. Since they are the source of direct contact between the company and its customers, they play the role of brand ambassadors. The employees at XYZ, however, failed to represent the company positively, something I experienced on the fourth day. I tried to contact the company again and after 30 minutes on hold, I was finally able to talk to a customer care agent. I went on to explain the issue concerning my package and the delayed delivery. On my end, the customer care agent appeared unbothered and not concerned with the inconvenience the delay had caused. This led me to the decision to cancel my order and requested a refund instead. With the same unbothered attitude, the customer service agent hurriedly read to me the terms and conditions of their company before informing me that she was not in a position to offer refunds. It was not until I requested to talk to the management that I was connected to the customer care department that I was able to get assisted. As part of customers’ expectations, companies are required to offer some form of compensation for inconveniences caused when they fail to deliver what was promised. The recovery failure policy is an ideal way to mend the relationship with customers in the event of a conflict (Bitner et al, 2018). XYZ gamers failed to honor their recovery policy as I was later informed that my package was already in transit and that it was more convenient for both parties if I accepted the delivery instead of canceling. Here, the company failed to honor its recovery failure policy as there was no form of compensation for the inconvenience caused. In the end, I opted to accept the package and resolve the issue.

Recommendations

            Customers have evolved and they now operate under certain expectations of service and the quality of service greatly determines their satisfaction with the product and organization offering it. From a marketing perspective, three incidents went against my expectations, one of which was false advertising. Other than the product, an organization’s reputation plays a major role in determining the attitude that consumers have of the organization and their satisfaction with the services offered. Since advertising is one of the ways that a company informs the consumers about its products and services, false advertising can greatly affect the quality of service offered especially when the goods or services do not live up to the customer’s expectations (Bitner et al, 2018). Concerning XYZ gamers, the false advertising was through the commitment made to have the games deliver to my house within 24 hours. Failure to honor their commitment lowered my perception of the quality of service as it came off as a let-down when the company failed to deliver in time. 

            To remedy the situation, the company should engage in service innovation to improve its supply chain management. Since suppliers are responsible for making the products available to the customer, improving supply chain management will ensure that there are proper channels in place to handle home deliveries (Rushton et al, 2013). One way to boost supply chain management is by incorporating the use of technology to track orders and notify the relevant departments in case of delays. With the increasing demand for online purchases, the company should ensure that there is enough manpower to handle deliveries without delays. This will ensure that the company lives up to its promise to deliver within a specific time. 

            Companies that seek to better engage with their customers can employ the use of upward communication to resolve the issue of poor communication within the organization (Bitner et al, 2018). The organizational culture made it difficult for the issue to be resolved faster as it had to go through the chain of command before a decision could be made. A simple explanation as to why my package had been delayed required authorization from the top management (Kennedy, 2016). A solution would be to give employees more responsibilities and allow them to make decisions on their own. This will help make decision making faster and in so doing, improve the quality of service. 

From my encounter as a customer, I experienced service failure. The organization’s service performance falls below my expectation, in addition, I was dissatisfied with the services offered. In such cases, service recovery is needed to remedy the situation with the customer. Service failure occurs as a result of many reasons and complaining customers are just the tip of the iceberg and there is an underlying problem within the organization (Bitner et al, 2018). Research has evidenced that service recovery has a strong impact on the overall satisfaction of the customer and loyalty. As a result of service failure, I openly criticized the organization. Also, after encountering service failure I experienced feelings of discontent, disappointment, regret, and self-pity. 

            As a customer, I expect quick replies and responses concerning products. Service recovery translates into loyalty which translates into profitability for the organization. The organization should have a well-designed service recovery strategy in place. Substantial research has indicated that a larger percentage of organizations do not implement effective recovery strategies (Bitner et al, 2018). The organization did not reach out to me to remedy the service failure situation therefore, I will never consider purchasing anything else from the organization. Also, I will discourage anyone who wants to purchase anything from the organization. Also, as a dissatisfied customer, I am in a position to utilize social media platforms to share my story and experience to ensure that others do not go through the same encounter. On the other hand, the organization can implement service failure recovery strategies to include, quick replies and providing appropriate communication (Bitner et al, 2018). Organizations might think that customers want extreme actions taken, however, customers just want an explanation of what went wrong and how they are handling the situation. Customers just want the firms to be accountable for their actions and inactions. 

When dealing with services, customer expectations are controlled by advertisements. The promises made by organizations through its media channels may raise customer expectations which serve as a standard against which customers evaluate the services delivered (Bitner et al, 2018).  

 

 

Good customer service experience

            As a consumer, the quality of service is just as important as the product or service being offered. ABC hotel is a perfect example of a company that has developed and sustained a service culture that prides itself on offering the best quality of service and resolving customer complaints. I got this experience first-hand when I visited the restaurant to treat my friend on her birthday. Various aspects within the restaurant made the waiting time pleasurable. The restaurant is designed in such a way that it creates a welcoming atmosphere, regardless of the time of day. This is especially because businesses have to find a way to help customers visualize the intangible aspect of the services offered but cannot be touched or seen (Bitner et al, 2018). While most of the services offered were intangible, the design and quality of service commanded appreciation. At the entry, there was a receptionist, welcoming with a smile as she walked us to a table nearby. The tables were neatly arranged with table cloths perfectly ironed and color-coded to add on to the allure of the restaurant. The waiter walked over to our table, introduced herself as her waiter for the evening. My friend was very impressed with the ‘having our waiter for the evening’ part and it added on to my attempts to make her happy on her birthday. 

            The quality of service was extended even to the kitchen department as I could see the waiter heading to our table, a few minutes after placing the order. Being a birthday celebration, we ordered different items on the menu as we were in a mood to celebrate. From a distance, I could see the waiter handling three trays as she made her way to where we were seated. My admiration of her balancing skills came to a halt as a customer seated at the table next to the ass stood up without noticing the waiter and made her lose her balance, pushing one of the plates in our direction. The birthday girl was facing the opposite direction and could not get out of the way fast enough to prevent the bowl of soup from splashing on her back. The joy disappeared from her face and was replaced by a confused expression made up of a mixture of pain, disbelief, and confusion. 

            Despite the nature of the accident, I was impressed by how the waiter and other employees reacted in an attempt to resolve the situation. The waiter started by apologizing for the accident and rushed to check on my friend. Rather than just making an apology, she went on to enquire about the birthday girl’s well-being, the level of pain she was experiencing, and other information that displayed her efficiency in handling a crisis. She came off as not just a waiter, but also someone who had medical training on how to handle such an issue. Her knowledge and confidence made it easier for my friend to relax and explain what she was feeling. Despite minor pain, the soup was not hot enough to cause any injury other than some slight discomfort. The waiter was able to calm everyone down, including other customers and in a span of a few minutes after the incident, everyone had gone back to enjoying their meal and we were led to a private room for further inquiries. 

            ABC hotel also demonstrated its commitment to enforcing the service triangle. The waiter serving us had a positive attitude when performing her duties. Other employees operated similarly and this greatly enhanced our level of satisfaction. The environment within the restaurant was ideal not just for the customer but for employees as well and this goes a long way towards increasing profits. Throughout the incident, there was evidence that the management had taken all the measures needed to promote service leadership and this was evident through the three steps taken by the waiter. The first step was the approach that the waiter took to resolve the conflict and the efficiency employed. Despite my friend’s dramatic reaction, the waiter regained composure and was able to ease the tension between all the parties involved. The waiter asked the customer responsible for the accident to not worry and calmly go back to his table. The waiter took charge and some responsibility as she took it upon herself to help my friend instead of placing blame on the other customer. This made it easier to resolve the issue as time was not wasted pointing fingers (Cook, 2008). Reducing the number of people involved in the incident further communicated to the rest of the customer that the incident was not as serious and this made it easier for them to continue enjoying their dining experience. 

            The second step that demonstrated the waiter’s customer service skills, which is a reflection of the entire organization, was the fast decision making involved. Despite being a member of the service department. The waiter carried herself as someone in a leadership position. Rather than delaying the recovery process after the incident when waiting for someone in charge, the waiter was quick decisions that made conflict resolution more efficient (Hollins & Shinkins, 2013). She started by ensuring that the person who knocked the tray was calm and did not create more chaos. She then moved on to enquire about my friend’s whereabouts, displaying her skills and abilities not just in conflict management, but also in first aid. Her actions could only have been possible if the management had given her, and other waiters the training needed to know how to respond to a crisis. 

            The third measure taken by the management to improve the quality of service is about decision making. The waiter handling the issue operated in confidence because she had the authority to make serious decisions on her own. Rather than waiting on her supervisor or someone in charge to remedy the situation. The waiter acted fast and this ensured that operations could go back to normal despite the interruption from the incident (Hollins & Shinkins, 2013). The actions from the waiter inspired confidence in those involved in the conflict as she came off as someone who knew what she was doing and also in a position to resolve the issue. 

 

 

 

Personal Insight

            Consumers have grown to expect specific standards of quality when engaging with an organization. People expect quality services not only through the products and services they pay for but also how they are treated during the transaction. To deliver, organizations have to take up responsibilities and implement measures aimed at promoting better quality in services offered. This assignment has taught me the value of fast decision making and how information plays a crucial role in conflict resolution. Organizations that allow their employees to make decisions are seen to be more efficient when it comes to offering quality service. I also learned that conflicts are part of any organization regardless of the measures taken to improve customer service. Organizations must, therefore, plan and have a conflict management strategy in place to help remedy problems when they arise. 

            Another lesson learned was that customers are just as responsible for conflict and organizations should come up with a strategy to resolve the issues that are instigated by customers. Since everyone in an organization is the responsibility of the organization, the management must ensure that quality of service is maintained and in so doing, maintain an ideal environment for both the customers and the employees.

            Lastly, employees greatly influence how customers perceive the company. Since they engage with customers often, businesses should train employees on how to be good ambassadors. It is recommended that organizations train employees on issues like telephone etiquette, proper response during a crisis and how to engage management in conflict resolution where necessary. Other than performing their duties, employees should also be aware of how the wrong approach could affect the quality of service. The goal should always be to create an ideal environment for both the customer and the employee.  

 

 

References

Bitner J, Gremler D and Zeithaml A, (2018) “Services marketing: Integrating customer focus       across the firm” McGraw-Hill Education

Cook, S. (2008). Customer care excellence: How to create an effective customer focus.     London: Kogan Page.

Hollins B and Shinkins S, (2013). Managing Service Operations: Design and        Implementation. SAGE Publications.

Kaufman, R. (2012). Uplifting service: The proven path to delighting your customers,       colleagues, and everyone else you meet.

Kennedy, D. S. (2016). No B.S. guide to maximum referrals & customer retention.            Entrepreneur Press

Rushton, A., Oxley, J., Croucher, P (2013). The handbook of logistics and distribution      management. London: Kogan Page.

 

 

 

 

 

 

 

 

 

 

 

 

Apendix

Journal Entry

Good Service Encounter

Your Name:

Name of Firm Providing Service: ABC Restaurant                                                                          

Type of Service (industry): Hotel

Date of Encounter:                                                                  Time Encounter Occurred:

 

  1. What specific circumstances led to this encounter (i.e., describe the service encounter in detail)?

The incident occurred when a waiter poured hot soup on my friend while we were waiting to be served at the restaurant.

 

  1. Exactly what did the firm/employee say or do (be very specific and thorough)?

The waiter was pushed by an unsuspecting customer who pushed the waiter’s hand, forcing her to drop soup on my friend.

 

 

  1. How would you rate your level of satisfaction with this encounter? (Underline the most appropriate number on the scale below.)

 

1                2                3                4                5                6                7

extremely                                                                                            extremely

dissatisfied                                                                                            satisfied

 

 

  1. What exactly made you feel that way (be specific)?

The waiter possessed knowledge in first aid and also conflict resolution which made decision making fast.

 

 

  1. What could the employee/firm have done to make you happier with the encounter (again, be specific and detailed)?

Improve on the setup to prevent customers from obstructing waiters as they wait on other customers

 

  1. How likely is it that you will go back to this service firm? (Underline the most appropriate number on the scale below.)

 

1                2                3                4                5                6                7

extremely                                                                                            extremely

unlikely                                                                                                 likely

 

 

  1. Why? The quality of service was exceptional and the food was just as sweet.

 

 

Journal Entry

Bad Service Encounter

Your Name:

Name of Firm Providing Service: XYZ Gamers                                                                               

Type of Service (industry): Entertainment and retail

Date of Encounter:                                                                  Time Encounter Occurred:

 

  1. What specific circumstances led to this encounter (i.e., describe the service encounter in detail)?

Had to stay indoors and decided to order a video game as a way to cope with the boredom.

 

  1. Exactly what did the firm/employee say or do (be very specific and thorough)?

 

The company failed to deliver the package within the 24-hour deadline stipulated. The company was also difficult to contact and the customer service agent lacked telephone etiquette.

  1. How would you rate your level of satisfaction with this encounter? (Underline the most appropriate number on the scale below.)

 

1                2                3                4                5                6                7

extremely                                                                                            extremely

dissatisfied                                                                                            satisfied

 

 

  1. What exactly made you feel that way (be specific)?

The company had poor services as they failed to notify me on the where bouts of my package in time.

 

  1. What could the employee/firm have done to make you happier with the encounter (again, be specific and detailed)?

The company should have notified me that the package had been delayed and communicate a new arrival date.

 

  1. How likely is it that you will go back to this service firm? (Underline the most appropriate number on the scale below.)

 

1                2                3                4                5                6                7

extremely                                                                                            extremely

unlikely                                                                                                 likely

 

  1. Why?

The inconvenience caused created a negative impression that I have come to associate with the company especially because they focused more on delivering the package that resolving the issue as well.

 

3298 Words  11 Pages

 

Working retail without a smile

One of the greatest tools when working retail is a smile. It is not only welcoming but also communicates a positive attitude which greatly influences the purchase decision. While a normal day working retail involves exchanging a lot of pleasantries, shaking hands and a lot of close contact interaction, the state of the country, and in the world in general has made it uncomfortable to exchange even the simple gesture of a handshake after a successful transaction. My experience has greatly been affected by the effects of the Covid-19 pandemic as it has made it difficult to reach patients on a personal level.

When President Donald Trump called Covid-19 the ‘Chinese Virus’, he had no idea the consequences that his words would have on people on global scale. One of the provisions given to those working retail is the need to wear a mask when attending to customers. However, since the mask only covers the face, the remarks by the United States president made it difficult for shoppers with Chinese origin. Before covid-19, all patients were equal and the same was demonstrated not only by employees but amongst the customers themselves. When Covid-19 was dubbed the Chinese Virus’, Chinese customers have received a great deal of discrimination. Some of the retail store attendants were reluctant to attend to Chinese customers while other customers were more likely to keep their distance from Chinese customers compared to customers from different communities. ‘

Covid-19 has made it even more difficult to attend to customers and offer the same level of quality offered. As I have to wear a mask, communication has been strained as words are a bit muffled and with the social distancing guidelines, it becomes even harder to understand what the customer is saying. The mask also blocks out most of the facial expression and this has made it rather difficult to identify whether more information is needed or the customer is satisfied with the information I provide regarding a product.

Despite the challenges however, covid-19 has had a significant impact in helping people to look past each other’s differences and look out for each other’s best interest. During my shifts, I have witnessed shoppers give face masks to those who do not have and even share sanitizers to help prevent the disease from spreading. Shops have also taken up the initiative and are providing assistance to not only shoppers but people out on the streets by giving them face masks and educating others on the best measures to take in order to protect themselves from the disease. Since working in retail places, me at more risk of contracting the virus from my customers, I choose to see the face mask as a tool to protect my life rather than a barrier to effective customer services. The face mask also makes it possible for me to keep working and gaining experience to share with others as my contribution during this trying time. The experiences put me in a better position to not only help those in need, but also help do away with some of the false information being spread regarding Covod-19.

526 Words  1 Pages

 

What Should Exporters Consider When Using Direct Marketing Abroad?

 

Introduction

            Direct Marketing is an advertising strategy that relies heavily on the individual distribution of sales pitch to potential customers, this method of marketing relies on methods to include, post mail, email, and texting.  Direct exporters working abroad utilize direct marketing to eliminate intermediaries and maximize profits. Direct marketing is growing at a fast pace as a result of globalization. International direct marketing has been viewed as an attractive instrument that can be utilized by exporters (Krafft, 2007). There exist two types of exporters in the international market, active and passive exporters. The distinction between these two exporters lies in their marketing techniques. Active exporters put in a lot of effort to market their products to various buyers across different geographical locations. Active exporters invest a lot of time and finances in marketing. A passive exporter does not invest in marketing their products, these exporters only wait for a buyer to make an order and only works on producing that specific order. Exporters can also be direct and indirect.  Direct exporters use agents and distributors to sell their products (Chaturvedi, 2005).  To facilitate indirect exporting export management companies are used as middlemen by the exporter. Direct export relies on direct marketing techniques to sell to buyers abroad through agents who respond to direct buyers’ inquiries raised via many communication channels. Direct marketing is a lucrative method that can be used by exporters to market and sell their products abroad, however, there are certain considerations that exporters and exporting companies should put in mind.

            As a result of rapidly growing technological innovations, changing lifestyles and preferences and the emergence of more favorable government regulation, selling products directly to customers without using local intermediaries has become a fast-growing area in international marketing and business.  Exporters should consider utilizing direct marketing since the majority of the customers in the market prefer to buy their goods and services directly from the manufacture (Wang, 2005). In geographical areas to include North America, Australia, and western Europe the use of catalog sales is a legalized way of conducting business. The changing lifestyles of individuals living in these countries have encouraged the use of direct marketing. Exporters serving various markets abroad prefer to use direct marketing to keep up with the consumer changing lifestyles.

Another reason why exporters operating in foreign markets should consider using direct marketing is if they have the desire to increase their profits and revenues. A recent survey conducted on direct marketing revealed that it is still possible to make huge amounts of sales while using direct marketing while operating in other countries, the survey revealed that a U.S. mail-order based company sold items such as audio devices, kitchen appliances, and cameras at 50% of the prices charged in Tokyo, Japan (Chaturvedi, 2005). Even when the company faces competition from locally produced goods and services it is still possible to make profits through direct marketing since it reduces the cost of middlemen.

            When using direct marketing abroad, exporters should consider factors to include tax. The exporter should consider if the goods and services are subject to taxation or not (Katsikea, et al., 2005). When sales are made from abroad some countries may impose a tax on the sales made depending on factors inclusive of the volume of sales.  The exporter is subject to taxation if the exporter’s employees working abroad are subject to foreign jurisdiction when factors such as the time these employees spend in the country and immigration status are put under consideration. Before implementing direct marketing, the exporter should conduct thorough research to discover if the home country issues special tax benefits to exporters (Deari et al., 2008).  

            Social and cultural factors should also be put under consideration before an importer can utilize direct marketing to sell products abroad. An exporter is restricted to working within the social-cultural framework of the market they are operating in (Chaturvedi, 2005).  Direct marketing works through understanding the needs and wants of consumers and these factors are essential in understanding the purchasing needs of consumers. Going beyond the home market requires an exporter to understand and interact with the social and diverse cultures of the foreign market.

Customer preferences and purchase needs are subject to change, a direct exporter must be able to keep up with the changing needs of consumers.  Culture in most instances dictates the purchasing needs of individuals before an exporter can market their products and services directly it is important to learn about the culture of customers dominating the market (Chaturvedi, 2005). For example, direct marketing in China has been very successful in the country because the technique is based on an understanding of the Chinese cultural influence, however, for exporters from China to utilize direct marketing abroad they have had to make adjustments to their business approaches by changing the social and cultural practices and adopting those of the foreign country.

            Political and legal factors play an important role in determining whether an exporter utilizes direct marketing while operating abroad. Any exporting company that has operations in foreign countries is prone to legal and political issues (Chaturvedi, 2005). For any exporter planning to operate in a foreign market, they have to first thoroughly study the market to find out if their corporate policies fit in with the legal and political environment of the market.  The exporter should conduct a survey on the institutions, processes and on the problems currently facing the government in the country they intend to venture into. It is of prime importance to consider the political stability of a nation before choosing the most suitable method of marketing used in the country (Chaturvedi, 2005). Policies instituted in the country can either make direct marketing a suitable method of selling goods and services in the country or not.

            Technology is and will be the driving force of businesses in the decades to come. Technological factors are at the forefront of enabling the use of direct marketing. Technological advancements differ from one nation to another. Before an exporter can utilize direct marketing, they need to consider the technological advancement of the abroad country to ensure that they reach a wider market using this method (Chaturvedi, 2005). The technology of the foreign country must be useful in attracting direct customers at a minimum cost.

            In conclusion, direct marketing is a marketing technique used by businesses to reach buyers and targeted consumers without using advertisements and middlemen. Direct marketing can be used by exporters in abroad markets, however before exporters can use this method to operate in foreign markets, they must put some factors under consideration.  

 

 

 

 

 

 

References

Chaturvedi, M. (2005). Managing global business: A strategic perspective. New Delhi: Excel       Books.

Deari, H., Kimmel, V., & Lopez, P. (2008). Effects of cultural differences in international            business and price negotiation.

Katsikea, E. S., Theodosiou, M., Morgan, R. E., & Papavassiliou, N. (2005). Export market         expansion strategies of direct-selling small and medium-sized firms: implications for export sales management activities. Journal of International Marketing, 13(2), 57-92.

Krafft, M. (2007). International direct marketing: Principles, best practices, marketing facts.         Berlin, Heidelberg: Springer-Verlag Berlin Heidelberg.

Wang, P. (2005). The economics of foreign exchange and global finance. New York, NY:            Springer.

1202 Words  4 Pages

 

Consumer Behavior Concepts

 

Question 1

Consumers behaviours are subject to change, the future of high street retailers highly rely on understanding the behaviour of customers and mostly customers from generation Y and generation Z (which is still to come) these two groups are the present and the future (Skeldon, 2019).  The consuming habits of generation Y show an impending apocalyptic doom for high-street retailers. Online shopping has been a rising trend in the last few decades following the rise of E-commerce giants such as Amazon and ASOS. Consumers' use of high street retailers has declined with time but there are other factors at play too. Online retailers do not incur overhead costs to include the cost of running a high street store. However, the changes taking place are as a result of direct innovation.

 When e-commerce emerged, it was dismissed as a passing wave. A survey conducted by Retail Economics on behalf of the law firm Womble Bond Dickinson revealed that in the decade to come e-commerce shopping will account for 53% of sales made (Skeldon, 2019). High street retail many be outselling e-commerce now but this is set to change in 10 years to come with e-commerce out taking high street retailers.

Question 2

In this era of personal grooming, men have also come under societal pressure to attend to their personal grooming needs. Good grooming involves the whole man, it goes way beyond the way he cuts his hair and the clothes he wears.  As consumers, their grooming needs are evolving and they are requesting more and more from the industry. The men grooming industry has gained recognition as one of the rapidly growing sectors as the number of men show more interest in the way they look and the brands associated with them (DeAcetis, 2019).

Men's grooming has led to the diversification of a sector that was mainly dominated by women. Household brands to include Dove and Nivea have dived into the male grooming market. It has also given rise to a new representation of men defined by customer involvement (Watkins, 2017). Men's engagement in the grooming sector has blurred gender roles, nevertheless, it has increased the number of men taking part in consumer activities (Watkins, 2017). The considerable growth of the male grooming market is an indicator of the changes in the way the male gender perceives and build their sense of self.       

Question 3

Packaging plays an important role in influencing the behavior of consumers. According to a survey conducted aspects of packaging inclusive of color, packaging material, design of packaging wrappers and innovative techniques used during packaging play an important role in influencing the behavior of consumers when it comes to purchasing products (Håkansson, et al., 2014). Extensive research has concluded that packaging is one of the most influential factors that influence a consumer's purchasing decision. The packaging of a product attracts a lot of attention from consumers. The outlook of a product influences and stipulates the impulse buying behavior of consumers, the packaging of a product is responsible for attracting consumers which in-return increase sales.

Companies in different sectors of the economy are shifting their focus to product packaging as a way of attracting consumers and staying ahead of the competition.  Packaging is a communication aspect that helps brands communicate and reach their target consumers.  Packaging has different elements that influence consumers thus making them change their behavior. In the food industry packaging plays an important role, consumers are presented with a wide range of grocery products, packaging in this industry plays an important part in deciding which product the customer decides to choose (Mahera, et al., 2015).

Question 4

            Core values can be regarded as the fundamental beliefs that guide the actions of an individual, an organization or a nation.  The core values of a nation are defined by the way of life of the citizens, the development of a cultural sense facilitates the development of a personality that consumers can identify with. Several core values are relevant to the study of consumer behavior (De Pelsmacker, et al., 2005). Currently, the country has many core values to include, freedom and individualism. Each core value is important to members of society since they provide a basis that can be used to segment consumers.

The core value of freedom means that a marketer has freedom of choice to choose from a wide range of alternatives available (De Pelsmacker, et al., 2005). This core value is important as it allows a large number of competitive brands that are found on shelves in supermarkets and hypermarkets.  Freedom also allows consumers to choose between the products on the shelves. Individualism is important for citizens to believe in themselves. Individualism is expressed by self-reliance, self-interest, and self-esteem.  Individualism influence the behavior of customers in a way that consumers want to associate with products they can identify with.  As time passes and generations replace each other so do the core values change, the core values my grandparents held dear are not the same core values I hold dear, As the core value of consumers changes, so does they consuming and purchasing behavior.

Question 5

For the longest time ever demographic information on large numbers of consumers has been used to study the purchasing habits. The desire to understand consumers' habits has led to the collection of huge amounts of data on consumers.  The issue of privacy is not one that has been brought around by urbanization it has existed since the man-primitive ages (Lanier, et al., 2008). The UK established the data protection Act of 2018 to regulate how organizations and businesses utilize consumer data, this act is responsible for protecting consumers and their data cannot be used without their consent. This act also gives consumers the right to stop organizations from using their data.  

From a marketer’s point of view, I believe that the use of this demographic data on consumers is necessary for understanding the habits of consumers, understanding these habits is important to ensure that products are tailored according to the need of consumers. This data is useful in understanding the expectations of the consumers (Lanier, et al., 2008). However, to ensure that the privacy of consumers is protected, personal information regarding consumers should be respects, this data is used collectively and has low chances of affecting the consumer. As a consumer, I believe that everyone has their right to privacy but this data doesn’t hurt me when used collectively. As a consumer, I believe that the use of this data is necessary if marketers are to understand the various attitudes we have towards different products.

 

 

 

 

 

 

 

References

De Pelsmacker, P., Janssens, W., & Mielants, C. (2005). Consumer values and fair-trade beliefs, attitudes and buying behaviour. International Review on Public and Non-Profit   Marketing, 2(2), 50-69.

DeAcetis, J., (2019). The Importance of Men's Grooming and Cosmetic Treatments for Business.             Retrieved from; https://www.forbes.com/sites/josephdeacetis/2019/08/12/the-importance- of-mens-grooming-and-cosmetic-treatments-for-business/#15fc3e4079d0

Håkansson, N., Kvarnström, E., & Nilsson, E. (2014). Using the Package to Influence       Consumers' Choice of Brand: A Study on the Effect of Package Communication Claims           on Propensity to Switch Brand.

Lanier Jr, C. D., & Saini, A. (2008). Understanding consumer privacy: A review and future          directions. Academy of Marketing Science Review, 2008, 1.

Mahera, M., & Daud, S., & Sana, B., & Muhammad, M., (2015). Impact of Product Packaging    on Consumers Buying Behavior: Evidence from Karachi. Journal of Marketing and    Consumer Research. 16. 35-42.

Skeldon, P., (2019). Online sales to overtake the High Street in a decade – but don’t write off       shops says study. Retrieved from; https://internetretailing.net/industry/industry/online-            sales-to-overtake-the-high-street-in-a-decade--but-dont-write-off-shops-says-study-19896

Watkins, M., (2017). Grooming Men: Consumer Culture and the Constitution of Masculine          Identities.

 

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 Marketing Segment, perpetual map, Product Ladder and hierarchy of Needs

 

Introduction

Target marketing involves segmentation which is the process of dividing the market into different groups of people that share common interests. Perceptual map is the visual representation used by marketers to show what customers think in terms of an organization, a product or a service. A product ladder is the idea the consumer of a product has arranging them from top to bottom according to their use and preference. Hierarchy of needs is the ranking of human needs from bottom going upwards.

 Philip Kotler’s segment by segment invasion plan affords nonprofit executives with the opportunity to create marketing strategies. Fortenberry, (2013). They are capable of evaluating barriers to entry and the competitors. They foresee competitive responses to invasions and also evaluate the limitations of segments. The nonprofit executives should make sure that their segment by segment plans should be kept confidential. This should be done for the purpose of competitors in the same markets and have similar products. Planned invasions even for those organizations serving as the providers should be kept confidential until they are implemented. This measures help to reduce the chances of another nonprofit organization using the idea of others

According to Gomez (2015), perceptual mapping is important in both decision making and market analysis for both the researcher and the manager. Managers use perceptual mapping to know and understand the structure of their market. It helps them to identify their competitors and rate their brands. Researchers use perceptual mapping to know how to improve and make competitive products. In a healthcare industry perceptual mapping could be used for example to determine if a certain syrup is highly ranked due to its effectiveness or due to its affordability.

Ries and trouts ladder provides the nonprofit executives with a tool that makes them understand how the consumer perceives a product and what they are offered. A consumer perception regarding healthcare shows products in the top being the ones that the consumer views best. Fortenberry (2013). We always ask for the product we have used and had of rather than try a new one.

Human motivation is brought about by an individual’s decisions. Healthcare marketers should understand people’s motivations in order to be able to have an influence in their behavior or thoughts. French (2017).Human motivation has helped people start exercising and live healthy lives freeing them from heart diseases among others. It has helped and reduced drug addiction.

Conclusion

Target marketing is normally developed to make the needs of a customer more effective. The strategies used in marketing are all very efficient. They contribute towards the consumer getting the best products and services. They help the markers to evaluate their products and give the best quality.

 

 

 

 

 

 

 

 

 

References

Gomes, R. (2015). Proceedings of the 1995 Academy of Marketing Science (AMS) Annual Conference. French, J. (2017). Social marketing and public health: Theory and practice: Oxford University Press

Fortenberry, J. L. (2013). Nonprofit marketing. Burlington, MA: Jones & Bartlett Learning.

 

 

 

 

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Diffusion of Innovation & Customer Experience Management

 

 

Introduction

Innovation refers to the development of new ideas, thoughts or imaginations. Customer experience is the result of an interaction between a customer and a company over the time of their relationship. Diffusion of innovation and customer experience management is when a new idea brought to a company and the customer adopts and accepts the idea.

            The willingness of healthcare consumers to adopt new products being offered is different. Some are quicker to adopt than others. This is mainly due to a consumer’s motivation. Lack of motivation will lead the consumer to only use what he or she knows about rather than try a new product. For example, when you have flu and you want to get drugs, you will get the drugs that you have used before since you already know their effect as opposed to trying another type of drug. The use of Everett Rogers’ Diffusion of Innovation Model in healthcare is explained by how different individuals adopt a new drug at different times some being skeptical about it and some accepting it very fast. It was used on the spread of an antibiotic drug among medical doctors. Rodgers (2003). An example is the adoption of immunization. Different people believe in it at different stages, some are comfortable with it very first time and some still to date are skeptical about it. Another one is the use of contraceptives, the adoption of the use of contraceptives among individuals too is very different.

            The potential benefits of customer experiences in healthcare organizations are an improved diagnostic process. A better relationship in terms of communication and understanding between the patient and the healthcare professional. It helps to develop timely processes of diagnostic testing and treatment. Balogh et.al. (2015). The wrong diagnosis worsens a situation and most of the time it happens because of lack of equipment or lack of well-trained personnel.

According to Schmitt (2010), customer experience management is the process of managing a customer’s relationship with a company or a product. It helps in segmentation, positioning, branding, and servicing of products and services. The customer’s perspectives help managers, organizations, marketers know how to rate or develop their products. In healthcare, the customer experience management can apply in a scenario where a patient is given an opportunity to give feedback after being treated this way improved services could be achieved. Another one is the improvement of digital experience.

Conclusion

Diffusion of innovation and customer experience have a great value in an organization. It helps companies to position their services and products and know where to correct. It helps customer’s preferences to be used in developing products. This improves the relationship between customers and healthcare practitioners in the healthcare industry.

 

 

 

 

 

 

 

 

 

References

Rogers E.M. (2003).diffusion of innovations.free press

In Balogh, E., In Miller, B. T., In Ball, J., & Institute of Medicine (U.S.). (2015). Improving diagnosis in health care. National academic press

 Schmitt, B. H. (2013). Customer experience management: A revolutionary approach to connecting with your customers. Hoboken, N.J: Wiley.

 

 

 
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Strategic Marketing Plan: Xi’an Famous Foods

For over a decade, the Xi’an Famous Foods, which was established in 2005, has achieved growth with significant expansion from a single store to today’s 15, distributed across Manhattan, Queens and Brooklyn. Besides, it is one of the best Chinese food stores present in the United States currently (Xi'an Famous Foods, 2019). Some of the things that are unique for the store is its deep-rooted history derived from the city of Xi’an, in western China and its delicious foods with a great connection to Chinese culture. Apart from that, the store has significantly thrived in New York, garnering excellent reviews, and it has achieved great publicity why has attracted more consumers to the store.

Since its establishment, the number of consumers visiting the store has significantly increased with the majority of them being Chinese immigrants, tourist and born and bred citizens of the United States who have never gone to China and might wish to try the specialty dishes. Therefore, the publicity that it has come in mainly because of the traditional dishes it offers to the consumers (Lawrence, 2016). Although the firm should stick and focus on making its products better, it can also focus in creation of new products with a combination of Chinese and American culture, for example, in its preparation and serving to improve its market outside New York.

However, some of the most crucial factors to consider are the issue of the potential buyers of the products, market competition and the possible demand in the market. Also, a proper understanding of the life cycle of the product and possible challenges that may arise is essential in promoting its success. Thus, with the introduction of a new product with has been “Americanized,” it will be necessary for the firm to conduct a comprehensive study before it introduces it. The current dishes in the store can also be modified to fit the American culture, which will then give the consumers of the products a list to choose from.

Furthermore, the current demand for the products from the store creates the need for expansion to a bigger building and fancier stores, but it must consider the maintenance of its culture which has made it different from other stores. The choice of the location should be strategic with good access where the consumers can freely move in with little challenges (Resnick et al., 2016). This will help the store in the conversion of potential consumers to actual ones. Furthermore, the market expansion for the firm will require the opening of stores in various locations to promote distribution and access by customers.

Besides, establishing stores close to home for better management will not be necessary for expansion because it will limit growth in stores far from home. Therefore, Jason can create managerial positions for each store who will help him manage all the activities that will be done in each of them. Apart from that, the firm could have a main office where all the activities of the stores can be managed in one location (Resnick et al., 2016). This will include decision making, expansion needs, allocation of resources and all necessary managerial activities that might be required to promote the better operation of the firm. Through this, managerial issues will not be a big issue, and it will also promote the smooth expansion of the firm to newer markets.

In addition, the price of the products will also be highly considered in the expansion processing because of its impact on sales and demand. Based on this, the firm should keep the price of the products low and affordable as it focuses on expanding to a different market (Lawrence, 2016). This will help the firm to reach a wide range of consumers and individuals from the majority of social classes which will then help in the expansion of the market base. However, the pricing of the product should be based on the perceived value rather than the objective costing of the product on offer. This is due to the fact that products that are priced lower or higher than their perceived value have a higher likelihood of not selling.

Therefore, the issue of the pricing of the products will require the firm to perform an assessment of the perceived value of the product in each market before its determination. However, the pricing of the products should be kept generally low to promote sells, more profits and the expansion process. This will be achieved through the development of better distribution plans, consideration of the value chain cost and markups and the pricing of the rival products in the market (Resnick et al., 2016). The store can also venture in the development of another line of product which can be marketed as luxury foods to consumers, but the focus must be in delivery of high quality, safe and affordable foods.

Additionally, it is worth to consider the fact that Xi’an Famous Foods has become a good brand that is well accepted by consumers. Marketing of the brand is necessary to make the store even stand out more in the market and depict the expertise of the firm in its preparation of high-quality products (Johnson, 2016). This can be done through adverts, sales promotion and special offers on the products and it can put the firm at a better position to have better control of the market, for example, the pricing of the products. Besides, marketing of the brand is necessary because it promotes customer loyalty which can help the firm to expand its consumer base as part of its growth.

Furthermore, with the great determination of the store to deliver the services it offers, marketing of the brand will help the firm in attraction majority of its ideal clients and more referrals from the from existing customers. This is because better brands are closely associated with excellent values which will be necessary for the firm as it expands and extends to other markets. Besides, it will also make it easier to introduce more products to the market with little doubt on the quality and safety to the consumers.

The delivery of the excellent products by the stores together with the marketing of the brand will have a huge contribution to the smooth expansion process. The firm should also continue to offer a better appeal of its new stores and greater client satisfaction and developing good public relations to facilitate its success (Resnick et al., 2016). This will also create a better image of the brand, which then improve the market control and the competitive advantage of the firm.

In conclusion, Xi’an Famous Foods is a store that has an excellent room for expansion because of its unique products and services. However, the focus on expansion should involve the maintenance of its products and the introduction of those that integrate the culture of American people to improve its market share. Expansion to bigger stores is also important, but the culture that attracts consumers to the stores should remain the same. Also, the pricing should be maintained low with consideration on the perceived value of the product in the market. However, the introduction of luxury food in the stores can also be done. Finally, marketing, in combination with other strategies such as improving public relation, can be done to drive the brand.

References

Johnson, H. (2016). One of New York's best Chinese restaurants is preparing for a major expansion. Retrieved 27 November 2019, from https://www.businessinsider.com/xian-famous-foods-expanding-2016-08?IR=T

Lawrence, S. (2016). Xi'an Famous Foods: The Chinese Restaurant Chain Taking over NYC. Retrieved 27 November 2019, from https://www.7shifts.com/blog/xian-foods-nyc-restaurant/

Resnick, S. M., Cheng, R., Simpson, M., & Lourenço, F. (2016). Marketing in SMEs: a “4Ps” self-branding model. International Journal of Entrepreneurial Behavior & Research22(1), 155-174.

Xi'an Famous Foods. (2019). About us. Retrieved 27 November 2019, from https://www.xianfoods.com/#about-section

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Getting to Yes; Negotiating Agreement Without Giving In”

Introduction

“Getting to Yes; Negotiating Agreement Without Giving In” is a New York bestselling 1981 non-fiction book by Roger Fisher and William L. Ury. The book has been subsequently edited in 1991 and 2011 which saw Bruce Patton added as the co-author. This book can be summed up as the work of three authors, all Harvard professors who put down practical tips and techniques acquired through the work of the Harvard negotiation project group that deals with negotiation and conflict resolution at all levels. The book has become a classic read for any novice interested in learning the art of business negotiation skills. However, it is important for the reader to note that the theory has not remained static.  It is also important to consider that negotiation itself has evolved as the result of the rapid changes happening in the business world.  The Fisher and Ury negotiation methodology oppose the fixed-pie mentality that sits predominately in much of peoples negotiating cultures. The reason many deals fail is because the participants could not see the big picture since the participants of a negotiation are too much focused-on wining the negotiation instead of having a mutual profitable deal.  “Getting to Yes” presents a framework on how parties in a negotiation can all get better outcomes while maintaining and improving the existing business relationships.

As always, a good negotiation should be efficient, amicable and should be able to deliver constructive outcomes. In most cases most individuals utilize positioning bargaining which involves extreme position which pushes them to negotiate towards a compromise and as a result ego-based results are achieved, and relationships end up being strained and destroyed (Fisher,et al, 9).  These two authors put emphasis on a principled negotiation.  In a principled negotiation the first important thing is to view all the participants as problem solvers rather than adversaries. According to the book the first step of a principled negotiation is to separate the people from the problem (Fisher,et al, 8).  Humans are prone to emotions, their own interests and goals and often tend to look at the world from their own perspective. Getting to Yes has outlined a variety of tools for dealing with problems arising as a result of human perception, emotions and communication. These authors stress that the best option to prevent these problems are “Building a working relationship” and “Facing the problem, not the people” (Fisher,et al, 10). Incase a negotiation feels like a “you versus them” the authors suggest a few options including; “Raise the issue with the other side explicitly”.

 The second step of a principled negotiation is to shift the focus and not the positions. These authors use a simple example of two men having an argument in a library, one of the men prefers the window closed while the other man prefer the window opened. The librarians intervene and questions the reason why the first man wants the window closed and he answered to avoid a draft, this was a self-centered interest. The second man answered that the reason he wanted the window opened is to get fresh air, this was also a self-centered interest, after consideration the librarian opens a window in the next room, bringing in fresh air without a draft.  Both these men are on opposite sides, the important thing is focusing on how the needs of these two can be fulfilled and more often than not the solution is found by focusing on interests and from that a creative solution can be found.  The third step of a principled negotiation is inventing options for mutual gain (Fisher,et al, 32).  From the opinions of the authors the most common problem in negotiations is that there are a few options to choose from and often participants in a negotiation spend little time creating options which is a grave mistake (Fisher,et al, 40).  In seeking opinion, it is important to search for a mutual gain since a principled negotiation cannot be based on “I win” and “you lose”.

            The fourth step is insisting the use of an objective criteria, principled negotiations should not be viewed as battles that require winning.  The goal of a principled argument is to produce an amicable and efficient argument. The use of an objective criterial helps in eliminating emotions in a discussion and allows the involved parties to apply logic and reason. Once an objective criterion has been developed, it needs to be discussed and the first guideline provided by the author is “Frame each issue as a joint search for objective criteria.” And “Never yield to pressure” (Fisher,et al, 52).  In other instances, provided by the book sometimes one party is more powerful than the other party in a negotiation.  In this case it is important to protect oneself from making an agreement that they should reject and second the lesser powerful party should use the assets at hand to reach a satisfying argument. There is no way to better protect oneself than familiarizing oneself with one’s BANTNA. To develop a BATNA the steps involved include drafting a list of actions one might take is the desired agreement is not reached, improving promising ideas and converting them into practical alternatives and lastly selecting carefully the opinion that seems like the best.

The other participant can choose to play dirty and to deal with this type of tactics the authors recommend the development of options that can result in mutual gains (Common Outlook Consulting Inc, n.p). Also, if the other participants refuse to play their share role in a principled negotiation the authors suggest that one should consider bringing a third party on board as the last resort (Common Outlook Consulting Inc, n.p).  According to the authors that what goes into a principled negotiation is common sense. Lastly, the authors remind the readers that the first thing they are trying to win is a better way to negotiate.

Inconclusion, Getting to Yes is a work of three Harvard professors who present a well-structured framework on how to hold a principled negotiation and how to get the best mutual outcomes from an argument.  There are four steps on how to approach a principled negotiation, these authors also present approaches that can be used to hold a principled negotiation with parties who are not willing to engage and parties using tricks in a negotiation. The work of these three authors has clearly laid instructions and guidelines that can be implemented to fulfil the interest of participants in a negotiation and strengthen business relationships.

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

"Getting To Yes: Negotiating Agreement Without Giving In | Common Outlook Consulting Inc.."             Common Outlook Consulting Inc. N.p., 2019. Web. 27 Nov. 2007.

Fisher, Roger, William Ury, and Bruce Patton. Getting to Yes: Negotiating Agreement Without   Giving in. Boston: Houghton Mifflin, 1991. Print.

 

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 Under Armour Marketing Plan

 

 Under Armour Inc is a footwear, sports and casual apparel manufacturing company, its headquarters are located in Baltimore, Maryland with additional offices located all over the globe.  The company was founded in 1996 by Kevin Plank. As a result of globalization and innovation Under Armour has turned out to be one of the leading manufactures of sports apparel. Since the establishment of the company the sports industry has changed a lot. A competitive analysis conducted revealed that Nike, Adidas and Reebok are the company’s top competitors.  Nike is the company’s top competitor, Nike has been in the sports footwear manufacturing field since its establishment in 1964, it is recorded that Nike has 61,700 more employees compared to the employees of Under Armour.  Adidas has also been viewed as one of Under Armour Competitor, the company was founded in 1924, it is recorded that Adidas generates $24.7b more that Under Armour. Reebok is the company’s third competitor; Rebook generates 36% more revenue compared to Under Armour.  Under Armour is an innovative company seeking to remain at the top in a highly competitive industry and to do so it must continue to increase its innovative efforts.

As one of the leading sports apparel manufacturing companies Under Armour has numerous strengths that have helped the company thrive in the market since its establishment. This market strengths play an important role in helping the company protect its market shares in the existing market and to penetrate new markets.  The first strength of Under Armour is that it has created a track record of developing new innovative products, the company has wowed investors with its rapid growth. Overtime, Under Armour is now the third largest athletic brand (Business Strategy Hub, n.d). The company initially begun with a heat gear t-shirt that moisturized the body using synthetic fibers and a cold gear fabric that was also designed to keep the body of an athlete moisturized, the company has grown to manufacture a variety of products, the ability to keep on producing innovative products gives the company a strong competitive advantage.

Many distribution channels are another strength of the company, the company’s accelerated growth can also be as a result of broad wide distribution channels, the company operates through, multiple distribution channels. 65% of the company’s revenue is acquired through wholesale distribution while 31% of the revenue is gathered through direct consumer sales.  The company is selling its products in various countries through licensing, the many operational modification the company is embracing has helped the company continue to broaden its distribution channels globally (Business Strategy Hub, n.d).  Brand recognition is another strength of the company, Under Armour was voted as the world’s fifth most valuable brand in the year 2017.  Brand recognition has enabled the company to develop trustworthiness and authenticity similar to that of its already established competitors such as Nike.  Authenticity helps in removing the doubts of the investors.  Lastly, among the many strengths of the company is the highly skilled workforce built through successful training and learning programs.

Weaknesses mark areas that a company requires to improve on. The company needs to increase its investment in new and cutting-edge technologies. The company has planned a geographical expansion that is only possible if the company invests in the right technologies.  Limited operation presence forms another weakness of this sports apparel manufacturing giant, the company is still relatively new and has a limited operating presence in the international market (Business Strategy Hub, n.d). Research conducted reveals that 83% of this company’s revenue is from the Northern American Market which shows that the company has not yet fully expanded in the international market. The company is yet to expand and generate the same amount of revenue in the international market since this is necessary to sustain the company’s growth. High investment expenditure is another of Under Armour weakness, the company has consistently taken risks with its high investment expenditure over the years. This high investment can be considered positive only if it generates a higher revenue in return (Business Strategy Hub, n.d). Recently the company has not been able to generate higher revenues to match its high investments.  There are gaps in the products sold by the company and this is another weakness, this market gaps present competitors with a competitive advantage.

There are many opportunities for Under Armour, the company has the ability to introduce new products. The company parades its self as an innovative company, each product produced by the company since its establishment has been technologically advanced. This gives the company power to continue the trend by offering brand new innovative products with the necessary modification to increase its competitive advantage. An extension of the company’s product line could go a long way in proving beneficial to the company in the long run (Business Strategy Hub, n.d).  The company’s collaboration with various stores opens opportunities for the brand. Its collaboration with Kohl’s begun in 2017 when the stores started selling Under Armour merchandises, this cooperation has proved to be very beneficial for Under Armour, the company should and is in a position to enter into partnership agreements to penetrate more markets to ensure that it continues to grow its revenue.  It has been established that the revenues generated from the company’s sales are from North America and the company has not yet fully ventured in the international market. Venturing in the international market is another opportunity for the company to increase its sales and gain a competitive advantage.

With Opportunities comes threats, just like any other company, Under Armour is facing major threats that would result in a decrease its overall profits. Increased competition is a major threat. The major competitors of the brand such as Nike and Adidas have a higher brand recognition oversees and in the international market and this gives them a competitive advantage over Under Armour (Business Strategy Hub, n.d). The company product including chin straps and athletes cup have faced criticism by experts and have been associated with athletic injuries, any form of inflicted injury by products of this brand could damage the reputation and drive away endorsements. Shortage of skilled workforce in various global markets is a threat to the steady growth of the company’s profits in those markets.  The SWOT analysis of Under Armour shows a brighter future for the brand. For a brighter future the company only needs to restructure by cutting its expenditure.  The brand has also gained worldwide recognition and has a larger market share in the North America all it has to do is strengthen its position in the international market and establish a strong foothold.

As mentioned in the previous document in the development of a marketing plan the company can only aim for the international market through sponsorships and endorsements. The company should target sports teams and athletes. The company should seek to differentiate its products to fit the needs in the emerging market.  The products of the company cannot be for all people therefore market segmentation is important. Under Armour was started by an athlete to make the experience of fellow athletes more memorable (James, et al., 2018).  The company is dedicated to supplying sportswear to athletes, the company’s customer expects nothing but unmatched level of quality and service. Athletes form a large segment of Under Armours customers who are often loyal to the brand ad seeks high quality materials and high-quality crafting.  This segment of customers is willing to pay a high price for quality products that will ensure comfort and last long. Demographically the average Under Armour customer is 18 to 35 years old, this segment of customers enjoy working out and sports every day. They also expect a lot from their Under Armour gears and are willing to continue paying high prices for quality sportswear since it is what they love.

Under Armour initially targeted young athletes mostly ones at the collegiate level. Evidence of this can be traced from various advertisements the company released since 1995 using slogans such as “make athletes better” and “this is your armour”. This advertisement shows that the company’s main focus is and will always remain to be athletes in the past the company has partnered with various universities across the United States to provide sports apparel mostly to the football teams. However, as the years evolved the company has grown and has expanded its target market to include men, women and children of all ages. Their products are relatively expensive than those of some of their competitors therefore the company tends to target more financial stable customers. Under Armour mostly sells its products to wholesale distributors who are more financially stable. The company targets its consumers best by utilizing selective distribution strategy (James, et al., 2018). Under Armour is in partnership with major distributing stores such as Dick’s, the company knows that customers will be shopping in these stores to find sporting goods and sports apparel, Under Armour only needs stores similar to Dick’s to reach its targeted market.          

The Brand’s dedication to innovation is one of the factors that sets the brand apart from other brands and its competitors. When the company was founded, Kevin Plank based it on innovating a shirt that helps athletes stay cool and dry. Today the brand has not only made innovation a goal but also a way of life (Delano, 2017). The latest innovative invention of the company is the ColdGear which is an insulation system designed to provide warmth without bulk to athletes. Under Armour hopes to become a leader in sportswear wear manufacturing and footwear by 2020. However, things don’t always turn out as expected, following a turn of events the company has suffered a major drawback following a controversy created by the CEO and founder when he supported president Donald Trump and them withdrew his support.  It is tough to keep the image of the brand intact on every front in the digital world. Under Armour is trying its best to uphold its reputation as a leader in the sportswear market and a negative external factor would easily send the reputation of the brand tumbling down.      

Companies in the sports apparel market are looking for various ways to improve their products and marketing tactics. Companies are seeking ways they can differentiate their products from those of other manufactures. Under Armour is under pressures to diversify its products and expand to reach new sports. One of the main drivers will be technology and connected apparel. Under Armour is already a leader and has cemented its place in the production of connected apparel and the company should be focusing on this mainly. New technology at the company’s displays will act as the drive for growth and mostly in influencing the 18 to 25 years old segment (Dembosz, 2017). Price is one of another components of the marketing mix. Under Armour is looking forward to pushing its products over a wide array of price points. This gives the company a chance to amp its selling price in innovative apparel products that include ColdGear, Infrared, Storm and Charged cotton lines. To enhance the customer satisfaction of brand’s customers seeking value the company went ahead and launched MagZip in 2016 which has helped the company gain back much of its market shares from Nike and Adidas (Delano, 2017). When all factors are put in consideration Under Armour apparel are overpriced compared to the apparel of its direct competitors.

Promotion is another component of the marketing mix, for the company’s marketing plan to go through a promotion strategy has to be in place.  An increasing number of people today spend much time on their mobile phones, Under Armour seeks to improve its mobile shopping experience. The company believes that this will be profitable in the long run. The company recently introduced a new Under Armour shop app that allows shoppers to look for products through its “connected Fitness” platform.  The platform over time has gained over 175 million registered users and continues to grow rapidly everyday (Delano, 2017). The company is more than certain that online and mobile commerce initiatives are key revenue and growth drivers. Another promotion strategy will involve the brand partnering with major retail distributors. This will ensure a wider availability of products and expand the company’s consumer base.   

Place is the last component of the marketing Ps and for the marketing plan to be effective it must consider this component. China has just begun to be a revenue driver for the company. The company has high expectations to grab the largest market share of sportswear and open a billion-dollar opportunity. The brand is looking forward to build a strong presence in the Chinese market as a long-term investment that will improve the revenue (Delano, 2017). To Evaluate the success of the marketing plan it is important to appraise three metrics namely; sales growth, international expansion and profitability.  The Growth pace of Under Armour is slowing down, the marketing plans is devised to boost this growth (Maese et al., 2019).  The purpose of the marketing plan is to enhance the growth rate of the brand and its product thus watching the sales growth will help in evaluating the effectiveness and efficiency of the marketing plan.

International expansions are another metrics to watch for when evaluating the success of the marketing plan.  Currently the company is focused on establishing a foothold in the international market and gaining revenue outside the US (Delano, 2017). The success of the marketing plan will enable the brand to expand into the international market.  The main reason of devising a marketing plan is to increase the profitability of a business, therefore another metric to be watched when evaluating the success of the business plan is the overall profitability of the brand. The profitability of the brand is relatively low and a rise in the profitability of the business will assure of the success of the marketing plan.

Under Armour aims to enter the international market, the company is set against a social cultural background and its customers are of different cultural orientation. The United States, Canadian, European and Asian market consist of highly different cultures, the company must strive to satisfy these cultures in its line of sportswear. The company should also ensure that its products are not highly priced while ensuring quality (Keshkar, et al., 2018). With the company extending to market its products beyond the United States and to increase its revenue in this culturally diverse market the company has to ensure that its products are culturally sensitive and can be used across these global markets.

 In conclusion Under Armour is a sportswear manufacturing giant that seeks to remain at the top in the industry despite the high competition form already established competitors such as Nike and Adidas. To remain at the top Under Armour has to devise and fund a new marketing plan that will help it cement its place in the international market and gain a larger market share. The company should aim at giving sponsorships and endorsement to athletes and differentiate its products from the products of its competitors as well as reduce the high prices it charges for its products.  The growth of this sportswear manufacturing giant is slowing down. To increase the revenue and profitability the company should consider extending its presence in the international market.

 

 

 

 

 

References

Business Strategy Hub, (n.d). Under Armour SWOT Analysis 2019 | SWOT analysis of Under     Armour. Retrieved from; https://bstrategyhub.com/swot-analysis-of-under-armour-2019-     under-armour-swot-analysis/

Delano, (2017). How Under Armour can grow to $7.5B by 2018 (Full Report). Retrieved from;             https://medium.com/@delano.b.98/how-under-armour-can-grow-to-7-5b-by-2018-full-      report-b44f17cb507b

Dembosz A., (2017). Market Segmentation – Under Armour. Retrieved from;             https://ashleydembosz.wordpress.com/2017/09/18/market-segmentation-under-armour/

James, C. R., & Whitney, K. (2018). Under Armour: repositioning for the global stage. The          CASE Journal, 14(2), 164-193.

Keshkar, S., Lawrence, I., Dodds, M., Morris, E., Mahoney, T., Heisey, K., ... & Faruq, A.           (2018). The Role of Culture in Sports Sponsorship: an Update. Annals of Applied Sport           Science, 7(1).

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