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Concepts of market segmentation
Explain segmentation with respect to marketing management
Marketing analysis and strategy
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Marketing In this day and age is vital for a company to perform at its possible best. Marketing’s main focus is to give great satisfaction to a customer. There are many aspect of marketing, these aspects give marketer’s the tools to help strive for the best possible success they can achieve. They hope that they can create exposure for their brand, product or service. Benetton is clothing company founded in 1965. In the space of 50 years they grown to be a global brand with 10,000 employees working in 120 countries through 6,000 stores. Since opening business in 1965 Benetton has marketed very loud and brash and has gone against the normality of marketing and has made its own sense of marketing, challenging people views and affecting them and …show more content…
The Boston matrix can be tailored to Benetton to demonstrate how Market share can be gained by investment in marketing, Market share gains will always generate cash surpluses in the company, Cash surpluses will be generated when the product is in the maturity stage of the life cycle, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise can could help Benetton be more successful in creating a better market share and growth. Benetton can use Introduction Stage to launch a new product which will help to create a stable product. The growth stage will help them see if the company is making money from the product and if it’s sustainable. The maturity stage is when the product is stable and the aim for the manufacturer is now to maintain the market share they have built up this will mean that Benton can actually see how their product keeps on selling. The Decline Stage will show Benetton eventual when the market for a product will start to shrink. This shrinkage could show up to Benetton as normally the market can be …show more content…
The Boston matrix is used to categorise the products into one of four different areas based on market share and market growth. The Boston matrix is constructed to make a series of key assumptions, how Market share can be gained by investment in marketing, gains in the market share will always generate cash, when the product starts to mature that’s when the cash starts to flow, The best opportunity to build a dominant market position is during the growth phase. The 4 categorise help business to help give it a balance, so that it is successful. (Riley, 2016) Stars are high growth products competing in markets where they are strong compared with the competition. Stars will become Cash cows as they are low-growth products with a high market share. Then they are mature, successful products with relatively little need for investment. These products then need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars. Question marks are products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. The dogs are products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing
A 5 year strategic plan for Mensa Inc. should be dynamic and focus on ensuring that the present situation where in multiple sectors and businesses are involved. Re investing and formulating a stronger BCG matrix with divestiture from loss making units becomes extremely essential. The BCG matrix is a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix.
In this essay I will look at the strengths and weaknesses of using the Boston Matrix to help make decisions in business. I will first briefly explain the Boston Matrix and then analyse its effectiveness as an aid to making a marketing strategy.
Market penetration is where the company is the market leader and has the most share of the market. They do this by pushing their existing products into the existing markets. Product development is where they develop new products or modify existing products and put them into existing markets for example, coca cola has coca cola cherry, life, diet and zero. Market development is where they put existing products into new markets in the hope that they will sell, this could be in markets abroad or just different regions. Diversification is where a company will make new products and put them into new markets, this is a massive risk as the company have no idea of the product or of the market it is going into, this is good because it stops the company from being stuck in one market e.g. virgin they have virgin trains, Atlantic, broadband etc.
Expansion in product line: diversifying its product line will open a new set of opportunities while at the same time it can differentiate itself from the competitors.
The purpose of this case analysis is to provide a framework for making strategic marketing decisions by: 1) documenting the internal and external environment, 2) understanding the strengths, weaknesses, opportunities and threats, 3) identifying the opportunity, 4) developing and evaluating alternatives, and 5) make a recommendation based on organizational strengths.
Since its inception in 1949, adidas have been a leader in innovation; which is also their main competitive advantage in the market place. Along with innovation, the company differentiates itself in the market place with its strong brand equity, supported by a strong global marketing and advertising program.
It is a management tool that serves four distinct purposes (McDonald 2003; Kotler 2003; Cipher 2006): it can be used to classify product portfolio in four business types based on four graphic labels including Stars, Cash Cows, Question Marks and Dogs; it can be used to determine what priorities should be given in the product portfolio of a company; to classify an organisation’s product portfolio according to their cash usage and generation; and offers management available strategies to tackle various product lines. Consider companies like Apple Computer, General Electric, Unilever, Siemens, Centrica and many more, engaging in diversified product lines. The BCG model therefore becomes an invaluable analytical tool to evaluate an organisation’s diversified product lines as later seen in the ensuing sections.
“The Ansoff Matrix (appendix C) shows four different growth strategies that result by combining existing or new products with existing or new markets: market penetration, market development, product development,and diversification” (Fadaei, 2014).
PepsiCo: The history of a successful business empire PepsiCo is a worldwide corporation that mainly produces refreshments and focuses on the food market. According to PepsiCo “Pepsi was introduced as ‘Brad's Drink’ in New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who made it at his drugstore where the drink was sold. It was renamed Pepsi Cola in 1898” (par. 1). The adage of the adage. Pepsi is one of the favorite companies of American Citizens because it has merged with other products, it is one of the most profitable organizations in America, and their products are popular amongst the American population.
Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sec...
In the past decade companies are starting to see their brand assets, and with this branding has taken on a greater significance. So today brands are more than just marketing slogans and logos. All businesses are building their brands through certain actions and in their actual presence they find a 'position' in the mind of consumer and prospects. This is based on experience and exposure of the brand in the competitive marketplace. There are certain advantages to take into account in a Brand Strategy;
The Company's manufacturing processes utilize modern technology and automatization to reduce costs and accelerate its execution. In addition the "contractor system" allows Benetton to keep its production costs significantly below some of its competitors because the small supply companies have lower costs themselves. Secondly, Benetton is able to allay the effects of the demand fluctuations: in fact the Company can adjust its supply chain, absorbing so all the changes without feeling the full effect.
During this stage, sales growth has started to slow down, and the product has already reached widespread acceptance in the market, in relative terms. Ultimately, during this stage, sales will peak. The company will want to prolong this phase so as to avoid decline, and this desire leads to new innovation and features in order to continue to compete with the competition which, by now, has become very established, advanced and fierce. Competitors ‘products will begin to cut deeply into the company’s market position and market share. However, despite this, sales continue to grow in the early part of the maturity phase. But, these sales will peak and ultimately
The main reason attracted customer to consume in modern society is not just the value exchange but also an act of production of expression. Consumption becomes a” phenomenological in spirit and regards consumption as a primarily subjective state of consciousness with a variety of symbolic meanings, hedonic responses, and aesthetic criteria”. (Holbrook and Hirschman, 1982). The first part of this paper will analyze the different definitions of consumption, especially focus on experiential consumption. The other part will show how the Benetton Group architect and develop their brand portfolio through experiential marketing theory.
Ben Cohen and Jerry Greenfield founded Ben & Jerry's Homemade Ice Cream in 1978. Over the years, Ben & Jerry's evolved into a socially-oriented, independent-minded industry leader in the super-premium ice cream market. The company has had a history of donating 7.5% of its pre-tax earnings to societal and community causes. Ben and Jerry further extended their generosity by offering 75,000 shares at $10.50 per share exclusively to Vermont residents, so that they may help those who first supported the company; Ben and Jerry's wanted residents to profit from their venture as well. In addition, steady growth and a widely recognized brand name helped Ben and Jerry's obtain 45 percent of the premium ice-cream market, yet the company stock price remained stagnant at $21 a share for several years.