Marketing questions 2

SWOT analysis template Team: T Date: 05/25/2016. Creator: Group 4 E-Mail: [email protected]

Strengths Weaknesses 1. Top selling brand in retails for

TONE. ($79 Million) 2. Highest Stock Price Index. 3. Leading in specialty stores for

TONE (20%) compare to competitors.

4. No holding cost for TONE. All 140,000 units sold. Highest purchasing intent from High earners for TONE.

5. Total market share in terms of dollar percentage of the company has increased from 26% to 28%.

6. Brands awareness relatively low (TONE 52% & TOPS 49%) compared to competitors.

7. Low sales for TOPS. 8. Inventory build-up for TOPS

increase from 22,000 to 33,000. 9. Physical characteristics for

TOPS are low except for the power.

10. Equal resource allocation of 5.24 million for unequal brands in terms of advertising and commercial team.

Opportunities Threats 11. Chance to become the leaders in

the purchase intent for TONE, which is currently 1% less than the leader MOST.

12. Introduce Vodite products in future market.

13. GNP growing at 3% every year. 14. Market growth rate is expected

to increase by 16.3%. 15. Opportunity to lead market

shares by channel in online stores for TONE. Currently it is only 2% behind the leaders.

16. Growth rate for explorers for TOPS is on the decline by 2.2% for the upcoming period.

17. LOOP as a direct threat to TONE in industry retail sales.

18. MOST as a threat in total market share (% units) and purchase intention of consumers.

19. Price sensitivity of the market as TONE is $510 and TOPS $395.

Action plan Strengths 1. Monitor consumer’s purchase intentions for any change in the environment. 2. Maintain and increase market share by developing product and advertising.

3. The market share in terms consumer interaction for TONE is the highest for us in the speciality stores and only seconded by LOOP. Preference will be given to targeting specialty stores because they have higher interaction with consumers. 4. Since there is no inventory cost for TONES there is no holding cost and since the market size is going to increase from 981000 to 1141000. 5. The growth of the firm in dollar percentage has grown by 2% Weaknesses 6. Brand awareness for both the Sonite products is relatively low and re only 52% for TONE and 49% for the TOPS. Hence increasing the brand awareness through advertising will be crucial for TONE, which is for now 1920 for advertising media. 7. Despite having a 49% awareness TOPS which is almost equal TONE, its sales are only 69,000 units. Hence we plan to do more research and development in terms of reducing the base cost which is 44%, which is highest in the industry and putting more importance in the battery life and features. Since the market segment of the explorers is expected to decrease, we need to reposition this product into another segment. 8. Since period 0 and by the end of period 1 the inventory has increased from 22,000 to 33,000 units. So the production has to be brought down a little bit and the inventory has to be used. Also since the sales need to be increased there has to be more expenditure 9. Increase the other physical attributes of the TOPS such as features and battery power, which are currently 35(the lowest in the industry) and 10. 10. Allocation of more resources TONE in terms of advertising media and allocate more on Advertising research for TOPS. Opportunities 11. Invest more into advertising research and advertising media. 12. As of now there are no products in the Vodite market, hence investing in the research and development of the Vodite products will be an opportunity for the future. 13. Since the GNP is growing at 3% there is a scope of increasing the price more than 2% for the high end users for the TONE. 14. As the market grows by 16.3% the growth in the production has also to be increased by 16.9%. 15. Increase the number of commercial team allocated for online stores from 8. Threats 16. Divest into shoppers and savers slowly by concentrating on the features desired by those segments. 17. Increase brand awareness and target more on speciality stores and mass merchandisers. Also monitor any consumer preferences in the environment. 18. The production needs to be increased to close the gap of that 1% total market share percentage. 19. The market is price sensitive however for TONE the target market is high earners, but for TOPS decreasing the base price from 176 to a lower value and provide more characteristics in other areas such as battery and features.