Marketing questions 2

SWOT analysis

Team: TEAM 4 Date: JUNE 3, 2016 Creator: TEAM 4 E-Mail:

Strengths Weaknesses

1. TERM our vodite brand is designed to meet the followers segment of the market

2. Commercial team allocation for our brands TOPS and TONES were based on the shopping habits of their specific target markets which are shoppers and high earners respectively.

3. First mover advantage in follower segment of the vodite market.

4. Advertising expenditure for TERM’s (1560) target segment is more in comparison to our competitor MEET (1150) expenditure which means we are all out and aggressive.

5. Reasonable quantity of inventory for our brand TOPS.

6. Brand awareness for TONES decreased from 80% to21.3% in the high earners segment and for TOPS it decreased from 56% to 6.4% in the shoppers segment

7. Poor communication dimensions and message quality used in brand communication and advertising for TOPS and TONES

8. Huge volume of inventory for TONES(113,000units)

9.High dependence for revenues on one brand, TONES so risk could not be mitigated 10. Price for our vodite brand TERM (360) was not high enough to generate enough revenue to cover our overall costs. Our revenue was $4,397 and our net contribution was $-6,587.

Opportunities Threats

11. Our vodite brand TERM’s target market is growing from 157.5% to 234.8% which is great opportunity since no other brand targets this market

12. No product specifically designed to meet the expectation of the Explorer segment by any company so this is a great opportunity.

13. Purchase intentions for TERM (64.6%) is better in comparison to our keen competitor LEAN (19.3%) in the followers segment.

14. TERM has the first mover advantage for the followers segment of the vodite market because all the other brands do not specifically meet the demands of this segment

15. Commercial team allocation for TERM based on the shopping habits of the followers segment of the vodite market.

16. MEET (49%) is our direct competitor

in the vodite market for our brand TERM (30%) with respect to brand awareness.

17. LOOP (42.9%) and SONIC (26.2%) are the main threats for our brand TONES (21.3%) in the high earners segment with respect to brand awareness.

18. SOLO (21.4%) and LONG (31.0%) are the main threats to our brand TOPS (6.4%) in the shoppers segment with respect to brand awareness.

19. Purchase intentions for TONES decreased from 53.2% to 21.3% in the high earners segment and for TOPS it decreased from 7.1%to to 6.4% in the shoppers segment

20. Overall advertising expenditure for our vodite brand TERM (2220) is less in comparison to our competitors especially MEET (4940).

Action plan Strengths 1. Make sure to monitor changing consumer preferences and design our brand to meet the expectations of the target segment. 2. Commercial teams will be allocated always based on the shopping habits of our target segment. 3. We will invest more in R& D to ensure our target segment preferences are met. 4. Advertising more to endure brand awareness of 70% in the f followers segment 5. Our production plan will always ensure a reasonable quantity of inventory is available on hand. Weaknesses 6. Invest more in advertisement and advertising research to promote brand awareness because there are numerous brands on the market. 7. Excellent communication dimensions and message quality will be our focus in our next period’s advertisement. 8. Production will be decreased in the next period to enhance reduction in the huge volumes of inventory. 9. Diversification in the Sonite market to mitigate risk and huge losses in the near future. 10. Pricing will take into consideration the costs incurred during production to mitigate losses. Opportunities 11. Ensure that we monitor changing consumer preferences and modifying products to suit these preferences accordingly 12. Design and introduce a product to meet the needs of the Explorers segment of the Sonite market. 13. Invest in advertisement and R& D to ensure brands meet customer expectations 14. Monitor and modify the product to meet the followers segment which is our target segment 15. Commercial team allocation will be based on the shopping habits of the target market Threats 16. Increase advertisement and modify brands to suit target segment preferences. 17. Increase advertising expenditure to create high brand awareness 18. Invest in advertisement and R& D. 19. Aggressive advertisement emphasizing the excellent qualities f our brand that meets the needs of the target market 20. Increase advertising expenditure for TERM because the segment is growing rapidly