Brooke and Ridge
Chester Cao
Executive Summary
The purpose of this report is to outline the business lifecycle of “Brooke and Ridge” and to provide recommendations to combat the issue of falling business sales experienced by “Brooke and Ridge” after a steady 10 years of service. After the development of a good reputation for quality goods such as well-stitched, durable swimwear and beachwear, increased competition and pressure from low-cost imports as well as the business’s failure to adapt to changing consumer preferences, has resulted in a loss in sales for Brooke and Ridge. Strategies for the business to enter the post-maturity renewal stage include:
1. Cost cutting improving the business’s competitive position
2. Implementation of new products
3. New advertising strategies in new market areas (new market niches)
1. Establishment
1.1 Definitive Characteristics
Sales - Beings slow, possibly erratic
Profit - Begins slow, occasional losses
Costs - Very high fixed costs (Equipment, raw materials and insurance)
Customers - Developing (Need for positive relationships)
Management - Informal (Usually by one or two)
Figure 1
1.2 Goal
The primary goal of the establishment stage is to maintain and operate within a fast market to secure strong foundations for future business growth.
1.3 Challenges
The primary concern for a business such as Brooke and Ridge in the early establishment stage is undercapitalisation with erratic, inconsistent cash flow shortages. This negatively impacts a business hindering its ability for development as well as its performance in a competitive market. In addition, financial aid is often not provided by large financial institutions as a result of their cautious nature towards new businesses. With ...
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... into the market can inspire new interest amongst potential customers.
New advertising strategies in new market areas (new market niches)
Advertising differently in untouched market areas can prove advantageous with the possibility for previously unknown interest groups.
Conclusion
In conclusion, Brooke and Ridge, which has been identified as to be in the “post maturity” phase, will require the implementation of various strategies to combat the contemporary challenges of increased competition, low-cost imports and changing consumer preferences. It would be recommended that the strategy of “cost cutting” be implemented initially providing Brooke and Ridge with financial scope and lower management loads in preparation for change. It would then be wise to create new products and advertise in new markets as to revitalise company outlook and refresh product range.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
For example, consumers identified as sports enthusiasts would be targeted with ads designed specifically for them, with unique URLs like “LIVEFORCLOSEENCOUNTERS.COM,” which invite them to a microsite created by Virginia Beach informing them of the city’s annual soccer tournament or marathon. (Spiller, 2012, 90)
Brush, C. G., Kolvereid, L. L., & Widding, O. (2002). The life cycle of new ventures: Emergence, newness and growth. Boston, MA: Edward Elgar Publishing.
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National advertisement has more influence on consumer’s perception about the product instead of local advertisement.
Studying Banking and Finance at University of St.Gallen will help me further increase my proficiency in corporate finance and financial markets. The in-depth research of specific topics, as well as a comprehensive curriculum, is a possibility for me to focus on my topic of interest – the mechanisms and institutions involved in providing venture capital and identifying angel investors as means to encourage innovation.... ... middle of paper ... ...