Marketing questions
yeo1992226
swot_5.docx
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Team: R |
Date: 08/06/2016 |
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Creator: Team R |
E-Mail: |
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Strengths |
Weaknesses |
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1. ROCK is still the leading revenue generator in the market with the highest retail sales at $107 million and has the highest market of 62.9% in Professionals consumer segment. 2. ROCK has the highest brand awareness (66%) in the Professionals segment in period 4 due to strong advertising and the increasing number of commercial team in the preferred shopping channel (specialty stores) for the Professionals. 3. ROLL’s market share has drastically increased from 14% to 39.5% in the explorer’s consumer segment making ROLL a dominant leader in this segment. 4. Persistent rise in SPI due to increased market share, revenue and increased cumulative net contribution. |
5. ROSE yet underperforms even after large investments in R&D to obtain ideal physical characteristics. 6. REACH has more COGS than the revenue that means the product is being sold at a loss of $44 per unit leading to the brand contribution of -$7M. 7. ROLL’s cost of goods sold is $5 more than the average selling price, thus despite of gaining the Explorers market segment, the brand contribution is -$4M. 8. Purchase intention has reduced for ROCK as compared to last period due to poor message quality. |
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Opportunities |
Threats |
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9. 17.3% increase in the savers market segment is predicted for Period 5, which will complement our new Sonite product ROPE for the savers segment. 10. Total dominance of ROLL in Explorers market segment with increased advertising by 30% leading to 14% expected market share capture. 11. Total acquisition of professionals consumer segment with successful ROCK brand and increases advertising and commercial team size. 12. Better understanding of Perceptual objectives will help in clear and effective message quality for all our products, thus increasing the purchase intentions. |
13. Possible pull back of ROSE due to sustained underperformance might affect SPI negatively. 14. MOST still dominates the savers market segment with an impressive market share of 47.5% which is a huge competition for the upcoming product ROPE. 15. Rising purchase intention of SOLID from 18 to 30% can be a threat to the dominance and acquisition of the cash-cow ROCK.
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Action plan
Strengths
1. Maintain advertising strategy, commercial team size and increase production for ROCK by 20%.
2. Continue with advertising strategy to continue to maintain highest market share in the professional segment.
3. Maintain the Explorers market segment dominance with 20% increase in advertising and 10% increase in the production of ROLL.
4. Aiming at achieving an SPI of more than 2000 by maintaining dominance in professionals and explorers and possible market share capture in other market segments.
Weaknesses
5. Under-performance of ROSE will either be improved with further R&D or by pulling out ROSE and successfully placing ROPE designed for the same segment.
6. Per unit loss will be dealt by decreasing the base cost price of REACH and also increasing the average selling price.
7. Per unit loss will be dealt by decreasing the base cost price of ROLL and also increasing the average selling price, thus leading to positive brand contribution and further increasing SPI.
8. Improving the communications dimensions so as to achieve excellent message quality for ROCK, thus increasing the purchase intention.
Opportunities
9. Launch new Sonite product for the savers market segment with ideal features to meet their specific needs and place with high message quality.
10. Increase the advertising budget by 30% to gain 14% more market share of Explorers market segment.
11. Further increase in advertising budget and commercial team size to gain more market share and total dominance.
12. Improved placing of communication dimensions will help in improved message quality, thus higher purchase intention.
Threats
13. Launch of new Sonite product in savers segment will look at overcoming the effects of pull back of ROSE.
14. Placing of new Sonite product in savers segment with aggressive advertising and excellent message quality so as to gain substantial market share in savers segment.
15. Improved message quality along with increased advertising budget and commercial team size should maintain the dominance in Professionals market segment.
