Marketing questions 2

SWOT analysis template Team: TEAM 4 Date:1ST JUNE,2016 Creator: TEAM 4 E-Mail:

Strengths Weaknesses 1. Brand awareness for TONES

increased from 77% to 80% and that of TOPS increased from 51% to 56%

2. TONES(high earners) and TOPS( shoppers) are designed to meet specific target segments

3. Excellent communication dimensions and message quality used in brand communication in advertising for our modified products

4. Market share for TONES(high earners) increased from 40% to 60%

5. Increase in revenue for TONES from 455,724 to $61,011 and for TOPS revenue increased from $14,483 to $17,725

6. Commercial team allocation for TONES and TOPS do not reflect the shopping habits of the target segments (high earners and shoppers segments). Example is the specialty stores should have 43 people for TONES but we allocated 32 and for TOPS ,specialty stores required 25 and we allocated 20 people

7. There is no inventory for both products at the moment which means we run out of products and opportunity was given to competitors to make sales.

8. Distribution coverage for mass merchandising is low for TOPS (3%) compared to SOLO (15%) our competitor.

9. In period 2, TONE ($87m) was the leading retail brand but in period 3, ROCK ($96m) has overtaken this brand although TONES increased to$94m.

10. We did not produce enough units of TOPS and this affected our sales.

Opportunities Threats

11. The purchase intentions for TONES increased from 1.2% to 53.2% in the high earners segment and for TOPS it increased from 6.4% to 7.2% in the shoppers segment

12. Launch into the Vodite market as there is great growth opportunity of 828.4% in the next 5 years.

13. The target segment for TOPS(shoppers) increased from 28.7% to 35.2% for next period

14. Our vodite product is tailored for followers as this segment’s

16. Our biggest competitor in the shoppers segment for TOPS (56%) is SOLO (76%) and MOVE (73%)

17. Our biggest competitor for TONES (60.7%) in the high earners segment is LOOPS (24.9%)

18. We have lost the first mover advantage because SEGA and MEET have already entered the vodite market 19. Reduction in the price of our main competitor’s brand LOOPS ($520 to 500) is a major threat.

growth is 132% in 5 years. 15. Less intense competition in the

high earners segment for the TONES product.

20. Inventory disposal loss is a threat to the finances of the firm.

Action plan Strengths 1. More resources will be allocated to advertisement to at least maintain the brand awareness 2. Segment needs will be analysed and brands modified to meet target markets for each product 3. Advertising research for modified products will concentrate on the physical characteristics that appeal to the target segments. 4. Consistent monitoring of changing consumer preferences will help modify products to meet their needs. 5. Increase production and marketing mix to enhance sales and revenue generation. Weaknesses 6. Commercial team allocation will reflect the shopping habits of the target segments. 7. Production plan will include substantial mark up for inventory. 8. Resource allocation will be based on distribution channel coverage for the target segments. 9. Proper resource allocation to reflect shopping habits of high earners is our focus. 10. Increased production for TOPS in the next period. Opportunities 11. Invest in proper resource allocation and harness the major advantages our brands have over our competitors. 12. Looking at the vodite market, we will launch any time soon to ripe the growth benefits after conducting research studies. 13. Concentrate resource allocation in advertising for TOPS. 14. Launch a vodite product that will be tailored for the followers segment. 15. Continue to advertise and monitor changing consumer preferences for the target market. Threats 16. Increase advertisement and modify TOPS if it necessary 17. Increase or maintain the advertisement of TONES since the closest competitor is not too 18. We have the opportunity to learn from their mistakes and produce better quality and advanced products. 19. Price matching is our action in the next period 20. Obsolete inventory was sold to a trading company therefore we will make sure our production plan will not lead to losses in the future.