Marketing Strategy
Essay Preview: Marketing Strategy
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Marketing Strategy:Our company’s objectives are: 1) to get more market shares in Sonite market by delivering our value to segments we are targeting. Rope is targeted for the Shoppers, while Root is for the High Earners. 2) to dominate the Vodite market as we are now the monopolist but we don’t expect this situation for too long. We expect other firms to enter the Vodite market and steal some market share in the following periods. 3) Targeting new segments in Sonite market and deliver what they expect exactly.In period 4, rather than putting all the money for advertising all of our products, we will focus on R&D projects for our existing Sonite products (SOLO and SOFT) to get closer to what customers expect in terms of specifications, as well as prices. As a result, our new R&D projects on SOLO and SOFT will be ready to use next period.That doesn’t mean we are forgetting advertising. We will consider 50% of the budget on advertising to raise awareness of our existing products in both Sonite and Vodite market. We don’t expect any increase in profit from Sonite market but we expect a good increase from Vodite market. We aim to raise our profit by 28% for this period compared with period 3, increase market awareness of our products for this period by advertising, and maintain our market share in Sonite market. According to the commercial status, our company has already put huge money on building commercial team at last 2 periods, and our commercial team’s size is larger than any other competitors, and its really fit for our brand position now, so we will probably not keep investing  more money on our commercial team at period 4. However, all the strategic plan is based on our competitors’ status now, and we will keep improving and adjusting our products position until our competitors make change or market has changed.
On the other hand, we will keep our eyes on the Vodite market, and we will change our target  from innovators to followers because the growth rate and the whole population was increasing at next five periods, the data shows us the followers will have almost a septuple population volume more than other two, thus we will make a corresponding adjustment to adapt marketing changed.According to the inventory record, we have left 1/10 products from solo and 1/11products from soft at period 3, but after we put huge money on the advertising and R&D part, the volume of sales should be increased, and we will not decrease producing volume on each product. Otherwise, following Vodite market forecast, we are going to produce more Vodite products to fit for demand from the Vodite market.  In addition, we will pay some attention on any other new entrants, because the new entrants typically erode incumbent market share, and high industry profitability attracts new entrants into this market. When the profit pool has migration, we will definitely change our industry forces, and we will very carefully face on industry life-cycle shifts, and keep updating our project to fit for our segments.   In period 5, our goal is to gain a good proportion of the market share since SOLO and SOFT are now developed and have new editions. We will heavily advertise them to attract more Savers for SOFT and more Shoppers for SOLO. We also expect other companies to enter Vodite market. Therefore, we will consider a R&D project for SEA to target Adopters and Followers. We are now strong in the Vodite market but we need to be stronger. To do that, we need to match customer needs and then raise consumers’ awareness of our product. Our objective is to be a star in this market.