Purpose and process of market segmentation The purpose of segmentation is to allow the marketer to be better able to reach the consumer needs and wants which increases the positive responses for the brand. Segmentation is important during the promotion process, this is where the team decided who what and where as well as, age gender and things like buying patterns. Because of this, marketing g segmentation comes before targeting. By dividing the audience, it makes it easier to target exactly who and where to send the devices or what to do with their next model. As Fitbit brand is largely fitness tracking, Fitbit segmentation is easy.
However, BabbaCo’s business model is based on a strong network effect which falls to the winner-take-all industries. Therefore, upon weighing the pros and cons of the recommendations, BabbaCo. may want to consider the short-term strategy as the immediate action to increase repeat sales. They should validate their business model as soon as possible to scale their business to be the market leader through extending product lines and penetrating a widening market.
For that reason, one of the world’s leading retail organisation Zara particularly focus on their organisational resources in order to get the competitive advantage over their competitors. Some of the key organisational resources of Zara are demonstrated below: Market-oriented Strategy However, in the retail industry the competition is very high that is why the customer is considered as a king for them and they have to make them loyal as much as they can for the reason that they will not move to other brands quickly. Moreover, by focussing on customer‘s requirement and likings, reinforced by its operational approaches and Zara shows their assurance towards their precious clients. For that reason the customers of Zara‘s are quite loyal that help them to reach better position in the market (Finney, et al., 2008). Staff-Education It is found that the top officials of Zara are quite keen and focussing on customer service; therefore, the basic requirement to train their employees is one of their topmost importance.
Threats of substitute product - high • Buyers are likely to shift to other products considering the weather conditions. • Low price jeans. • Substitute like formals and trousers Bargaining power of customer – high • The power of buyers is comparatively high considering the fact that they can simply change to other brands. • Converting cost is low. • substitutes Competitive rivalry – high • high chance for customers to shift to substitute brands – ( CK jeans , guess jeans, DKNY jeans and Diesel) • mid – class employees prefers low rated jeans • Low level of product difference will increase competition because of no brand ID.
Metro is the largest wholesale center in Pakistan. It was founded in 2007 and created its 15 wholesale centers within a period of 18 months and metro did their wholesale business merger by July 2012 to start up a long term partnership for both companies. The benefit of this merger was to given financial strength and to combine resources. It is a retailor which mainly focuses on dairy products, fruits and vegetables, bakery, detergents, electronics, grocery, home textile, kid’s world, sweets and chocolates, households and imports. Metro is working with over 2300 employees approximately all over Pakistan.
These tools mostly used for spreading the awarenes of the new products, enhancing the recall of the brand but mostly for increasing the number of sales as the company needs profits to survive in the long term. The report have deeply looked at the communication tools in practice when the creative strategy for the new Cadbury product was set. The paper analysed in what situation it is better to use advertising, PR or direct marketing for the Cadbury brand, therefore the advantages and disadvantages of the tools were found. For example, it has been identified that advertising is one of the useful tool for brand promotion because it is able to reach a wider audience within the shortest possible time frame (Egan, 2007. P 194).
Resource base view can be considered as an economic tool that is used to determine the strategic resources that are available to a firm. These can be created as a competitive advantage later. When considering about the Zara’s product development strategy, one resource base decision is their designing function. The company has organized their designing function in a way that it will contribute a lot to come up with new trends for the organizations. One is that they are highly in alert of the fashion market, trade fairs, magazines etc.
Both these employees have shown their innovative approach at work and more than efficient attitude. As for Humbolt, he suggested the best project for the company by acquisition of Schnapps Brand. While the project investment is under the limits of capital budgeting, it is also enticing in terms of profitability and diversity to approach the varied class of customers. On the other hand, it was Morin who designed the price war and was the lead advocate, is yet another deserving candidate to lead the
It notes that stiff competition can reduce the potential profit of like companies. Firms must determine the strategy that will be utilized to gain and maintain the upper hand in the industry, as it relates to price, marketing, competition and the introduction of new and innovative products into the market. The more a company senses competition the intensity of its strategy may increase as it does not only respond to other firms, but also to the industry as a whole. It is natural for firms to respond to competitive moves made by its rival as it will have an effect albeit positive or negative on the industry. Firms may be forced to supply the demands for cheaper but more reliable products or to create differentiated products to maintain the competitive
Competitive strategy is a suit of methods and action sequence deliberately planned and put into place by companies in the face of market competition. This seems to be a clear way of keeping their market shares, expanding sales and managing the product lines to deliver desired results. The corporate world often needs some sorts of solid strategies considering the trends of the market competition. Beyond the issues of quality and distribution, companies often need to plan ahead and protect their market share in the sale. Particularly, the companies which function in the production and distribution of goods which come in a wide variety of supply in the market where technology becomes a critical driving force and a major concern is the fact that the market seems to depend on the internal and external business factors which may change rapidly as tides move and the market forces come into play.