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Effect of brand on consumer behavior
Effect of brand on consumer behavior
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SWATCH
A plateau in sales coupled with increasing competition in the watch industry has forced Swatch’s hand to restructure the company’s current business strategy in order for its future success. This new perspective of the current and future global markets has led to the conclusion that a plan in necessary to break stagnate growth and increase profit. Swatch are not trying to cut manufacturing costs. Swatch are not attempting to emerge in new market; they are not globalising but are focusing on very competitive markets with plateaued growth. To solve this Swatch must use a two stage plan. First, Swatch must cut cost of production via global sourcing to India. Second, Swatch must enter a Joint venture with Titan and expand their trade through
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For manufacturing purposes but also distribution. Titan has built one of the largest watch factories in India and is looking for a partner to add value to their products for export to America. A joint venture with Titian allows Swatch to use their existing production facilities, methods and knowledge of working in India to learn how to further keep our costs down. Not having to construct our own plant from the ground up allows us to benefit from greater global sourcing activities. A successful production line that already produces watches is a priceless asset that also promotes higher quality because the line workers are familiar with the product. An immediate sourcing strategy would incorporate the already existing manufacturing facilities of Titian for the purpose of Swatch’s production. Second, we can use Titians infrastructure to advance our sales in India by opening more channels of distribution. Titian acts as an import trader for swatch, as they have market connections and a knowledge of their domestic market. Following in the footsteps of other industry powerhouses that have entered the market in India. It is essential for Swatch to have cooperation with key local partners in India for their high-quality product to make it into the hands of Indians easier and faster than our …show more content…
Swatch needs to identify that there are new emerging markets available with short-term and long-term benefits to a first mover with a high-quality product. India, with its vast population and emerging watch market is the perfect place to target. While cutting manufacturing costs, they are still able to sell in a high price bracket. This is a pushing factor for Swatch as there are no innovations in competitors products that could ever compete with Swatch’s Swiss quality, thus swatch must bring their product to the consumers. Swatch’s entry strategy uses Titians infrastructure in a localised market that allows quick and effected market connections for Swatch. Titians channels of distribution not only can allow for our product to get into the hands of the consumer but it also allows us to get readily information about our consumers purchasing habits. Swatch also gains timely hands on experience by entering the Indian market with a joint venture instead of trying to compete with Timex in their domestic market without the aid of Titian. It is important for Swatch to maintain its standard product across borders. Based on the market’s belief that our product is of a higher quality then any competitors in the Indian market, our product must be of consistent quality. Our main selling point is that we are of the highest watch quality of watch where ever you
Furthermore, Under Armour’s goal is to expand their wearable watches and bracelets into built-in sensors that go into the clothing they create. This product will allow consumers to be accessory free and still will be able to track their activity levels. This innovative idea will surely bring in consumers, and provide Under Armour with the push they need to directly compete
It is found that there was not a common approach utilized in managing company’s lineup of sporting goods prior to restructuring started in 2005. Although Adidas has diversified in the sporting industry, the company still failed to realize resources fit within the business segments. Furthermore, there are integration problems between Adidas athletic footwear business unit with Salomon’s business units. As the business segments are too diverse, different raw materials and labors as well as processes are required to develop products that did not allow company to capitalize on any value chain. In serving different needs throughout the diversification, the three business segments made with different product mix has faced problems to cross promote the merchandise. In addition, through the varied demands of each business segment, there are no economie...
Weave Tech has several strategic challenges and opportunities since the purchase of the once then called Johnson-ware apparel in 2007. Since the organization has had the challenge of rebranding themselves to attract a new customer base which is also an opportunity to grow the organization. Weave Tech has to reposition the organization to be successful throughout the changes. Another strategic challenge the organization is undergoing is reorganizing and attracting a new management team which causes for cuts and layoffs. These cuts and layoffs can drastically effect the morale of other employees and ultimately production. Over the next 3 years Weave Tech goal will be to strategically handle these challenges and opportunities while
Dansk Designs Ltd., founded in 1955, is a company that markets stainless steel flatware. The firm traditionally followed a strategy of differentiation. They produce high quality products for the “top of the table”. Their goal was to reach a small market segment, which consisted of upper class, prestigious customers. Dansk Designs wanted to sell the concept of the Dansk brand, and believed their consumers would purchase the Dansk products because of the prominent brand name and because the products were the very best in taste and quality. Ted Nierenberg, the founder of Dansk Designs has recently decided that he wants to keep Dansk growing at 15% to 20% per year. Nierenberg feels as if his current product line will not provide sufficient growth to meet his objectives, and believes it is in the company’s best interest to introduce a new line of house ware products called Dansk Gourmet Designs Ltd. Nierenberg believes they should market this new line to a much wider group of consumers at competitive prices. However, I believe that although expanding into a new market with a new product line will increase short-term revenues, in the long run it will be detrimental because the new line will dilute the brand identity of Dansk Designs. If Nierenberg wants to grow every year 15% to 20%, I believe he should consider ways to lower costs instead of increasing volume and revenues.
Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zara’s current business model.
Therefore, the organization should take a strategic growth-oriented and reverse type combine. On the one hand, the use of outsourcing and vendor competition to reduce costs in order to compensate for management and manufacturing inefficiencies, pay attention to controlling costs; On the other hand, combined with the advantages of their own technology, innovation, branding and marketing and other aspects of the product 's high school three grades are low pile of competitive products, consumer electronics growth to seize the opportunity to obtain efficient growth performance, and further expand market
After a 4 P analysis of the company one found that it found itself in a luxury market where product quality and constant innovation are key points for the success. That is why the production process and its design can take even months. Product line is extensive however it is only conformed of high priced products. Price in this case is a guarantee of the quality present in the product. Moreover, high pricing represent an element of differentiation that the customer appreciates. However this is not a setback, LVMH has managed to have world wide presence and success. To accomplish it its selective retailing division is of high importance. Nevertheless, promotion posses the major challenge since its through this that the image of the product its transmitted that is why the company poses a major part of its budget in this section. It is Important to note that the percentage allocated is higher than those of most competitors.
The organization has had to ensure that it has retail stores in many countries globally and website options in more than 100 countries. The company further enhances access of online stores in more than 37 countries which is accessible all the time and people are able to access the services regardless of their location. Globalization further affects the organization in the sense of international market management which requires it to engage in strictly global decision making. The organization’s production networks have been geared to enhancing global competition (Lüsted, 2012) .The Company is further good when it comes to seizing the opportunities available in global market. For the organization to find efficient as well as cheap means of production, it has to bargain hard so as to allow its contractors to have low profits. This mostly is consequential to the suppliers cutting corners with the use of cheap
The Apple watch and the Android watch are two of the most popular smartwatches available for consumers today. They were both released in the 21st century and are mostly designed as a companion to your smartphone. These smartwatches provide many different features to its customers. Some of these features include the ability to track your fitness and health goals, alerting you of incoming calls or messages, connecting the internet and providing directions and GPS coordinates. By offering such features its main appeal to consumers is that is saves them time. These smartphones are also both considered waterproof. Although, these smartwatches seem very similar, they also have many differences that appeal to people and make purchasing one a
Currently, we are operating through 20+ stores across cities in India. In addition to our offline retail business, we have our very online portal -www.theprimewatches.com. Our online platform has beenoperationalfor almost two years ago, mostly as a tool of marketing for luxury watches online when no other retailer in India had a strong web presence.No competitor has such a large number of stores and a website that attracts over 5000 people every day.
...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.
Founded by the Benetton family in the 1960s, Benetton is one of the largest garment retailers, with stores which bear its name located in almost all parts of the world.. It could be interesting to analyse the technical development of such an important company going through the different theories of technology.
As a leader and figurehead of the company, he created restructuring plans and methods for ST Engineering to ride on new technology, innovation and capabilities for growth thus transforming it into a capability-driven enterprise that propelled the group to be the crème de la crème in its industry. His discernment for establishing globalisation as a key strategy to bring about sustainable growth proved to be very beneficial for the company as it allowed the group to penetrate into new markets to forge greater alliances and partnerships that leveraged on the external competitive strengths and capabilities.
We also make our product very nice and affordable and offer services that are currently unique, such as our return product service, where a customer purchase a sportswear and he doesn’t like it he could return it back at any time without any additional charges, most sports companies don’t give that kind of offer, so I think an individual will know that our company is unique because of the services we render. The total potential global market are made up of more than 7billion people because consumers groups are different like in age, level of income and also taste, Wear and Tear is going to be based on demographic segmentation has to we are targeting people within the ages of 18-40
Despite the facts that many of the most powerful markets on the planet operate within the capitalistic principle of free trade. Despite the fact that Western Europe is now border-free within its bounds and uses the same common currency. And despite the fact that the USSR s Iron Curtain has fallen more than a decade ago, the people of this world have never expressed their need to belong to a national identity as much as they do today. In response to international organized terrorism, mass media and political pressure, the average consumer today is looking for security, truth, and for a product tailored to his need. A product that reflects the international society we live in today but also carries the cultural identity of the consumer buying it. Or at least carries one that can be compatible with it.