Opportunities and Threats of Magnesium Fused Ultra-strong Wine Glasses - Essay Example

?When one seeks to integrate a new product within the market, one of the first steps that should be taken is a simple analysis of some of the reasonsfor why the product has been chosen, why it is relevant, what helps to differentiate it from a mountain of competition, what level of complexity it entails, and ultimately why people would buy it. In such a way, the following section will attempt to perform something of a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) with regards to the product which has been selected for analysis; i.e. magnesium fused ultra-strong wine glasses. 1. SWOT Analysis Firstly, with regards to why this product has been chosen, it has come to the attention of the stakeholders for this group that there exists a very large submarket for goods within the wine community. As a function of the fact that this community consumes goods based upon utility, function, and the level to which glasses and other tools of the trade can increase the overall experience as well as the taste of the wine. Accordingly, the product is relevant due to the fact that it fills a particular need for resilient wine glasses that are neither exorbitantly expensive no so cheap that they can be considered as little more than a novelty item to be disposed of or shelved away. Naturally, with regards to how the product itself is differentiating, this is of course denoted by the product name and description. Whereas there exist many fine examples of extremely expensive wine glasses on the market, there exist relatively few offerings that both serve to integrate consumer needs with the utility of a wine glass that is not highly fragile. In the past, cheap wine glasses had sacrificed form and function for their resilience; utilizing thick glass or crystal in order to prevent breakage; however, due to the new magnesium fusion process whereby the glass is blown, much thinner crystal is able to be used. In such a way, the glasses have the feel of the much more expensive crystal wine glasses, are able to exhibit the same benefits and/or weight, and are several times more resistant to breakage. Naturally, with regards to the simplicity of the product, it is difficult to get much simpler than a glass that displays a high resistance to breakage. Although it may be seen as something of a luxury good, due to the price range, the product itself is basic and simple as a function of what it is intended to do and the overall demand that exists within the market for a product that can integrate with such a need. In such a way, the glasses themselves fall adequately between the more expensive examples of fine wine glass crystal that sells for many times more than the going price for these break-resistant offerings. Furthermore, it is the understanding of the analysis that has been performed that the consumer rational to spend a bit more money on the break-resistant wine glasses will be affected by the added value that will be integrated due to the fact that having break-resistant wine glasses will necessarily reduce the overall amount of money spent over time due to the fact that such a high percentage of wine glasses of lower and higher prices tend to break. Furthermore, yet another added value that will help to integrate the product with the consumer is the fact that these glasses are also dishwasher safe. One of the greatest annoyances for individuals that drink a lot of wine is the fact that the best crystal wine glasses are never intended to go in the dish washer and take the high heat and temperatures therein. Naturally, a SWOT analysis would begin by stating that the strength of the product is the fact that it fills a particular need within the customer base that is currently under-represented. This is accomplished due to the fact that these wine glasses are substantially more resilient than those other products that have been billed as break-resistant in the past. Similarly, the greatest weakness that is exhibited is the fact that very little is known or understood with relation to this product by the consumer; representing a situation that no matter how phenomenal the product might be, the likelihood that the consumer will buy such a good is all but nonexistent. A further weakness is with regards to the overall cost of these glasses, at $70.00, this represents a steep investment on the part of the consumer. It can be argued that this investment is not as high as one might originally assume due to the fact that 8 wineglasses can be purchased; thereby reducing the overall cost to less than $10.00 per glass. Yet, the fact of the matter is that few individuals will want to purchase 8 wineglasses at a time; rather, 4 would seem to be a logical max for the overall amount of wineglasses that the average consumer would wish to purchase. Accordingly, the opportunity for growth and development of the product is obviously a function of how well these products integrate with the consumer base and can begin gaining traction within the marketplace. As with any product, the greatest threat comes from the fact that the design of the product as well as the technology that makes this design possible is readily duplicated. In such a way, other products can easily challenge whatever degree of success that might eventually be realized. Likewise, a secondary threat comes from the fact that the product stands a chance of not gaining a degree of traction due to the fact that cheaper alternatives exist. Ultimately, the consumer culture within the United States at the given point in time continues to prize disposable goods over those goods intended to last for a very long period of time. In such a way, even though cheaper wine glasses cannot and should not be considered as disposable, the fact of the matter is that many individuals will simply purchase the cheaper alternative and as they break they will replace them with more cheaper alternatives. 2. Explain our Product Positioning With regards to the product positioning, it should be understood by the reader that this particular product falls not within the high or low end ranges. Whereas the product itself would seem over-priced within an establishment such as Wal-Mart or perhaps even Target, it would nonetheless seem right at home in a place such as Bed Bath and Beyond or perhaps even Pier 1 Imports. This represents a curious dilemma with regards to seeking to import and sell the good. For the retailer, the importer, the issue becomes not who would ultimately buy this product but who would be able to stock and market it to the end consumer. If the importing entity is seeking to act as something of a middle man, seeking to determine the ultimate target retailers prior to setting out upon any further level of analysis is vital. Similarly, with regards to the specific benefits that the target market is looking for, it should be noted that the utility that is offered by the product speaks well to the needs of the consumer and the realities of the wine market. Firstly, due to the fact that almost all fine crystal wine glasses are not intended to be used within a dishwasher, the product offers a high level of utility to the consumer with regards to seeking to speak to specific and unsatisfied needs within the market. Naturally, as with any consumer good or service, the ultimate concern that the target market will integrate with is cost to value analysis. Although the cost of this good is necessarily a bit higher than would be liked with regards to integrating a favorable position within the market, it is the hope of this analysis that the ancillary benefits that the product is able to offer will more than help to offset this differential in priorities that is likely to be exhibited. Naturally, one of the most effective means whereby the good will be able to integrate a position within the market is with regards to the benefits that the product is able to offer that others cannot. As has been stated, this refers most specifically with regards to the ability of the wine glasses to withstand a significant degree of shock while at the same time resisting breakage. Furthermore, as a result of these wine glasses being able to be dishwasher safe, the consumer is offered the additional benefit, as compared to other wine glass manufacturers and offerings, of being able to place this directly into the dishwasher without having to worry about to what degree such a process will ruin the crystal. As such, the convenience factor of the product adds a great deal of added value and helps to offer a clear distinction over the competition. Similarly, it is the hope of this analysis that the convenience factor, combined with the novelty that the product helps to bring to the market, will help to carve out a product position that will give the product strength to withstand the difficult and unpredictable swings of consumer tastes and wants. A further way that it might be possible to provide a degree of benefit to the consumer that the competition is unable to is to emphasize the “green” nature of purchasing wine glasses that will stand the test of time and ultimately not end up in a landfill. Furthermore, due to the fact that a lead free process of crystallization is utilized, the packaging and advertising can seek to draw a distinction to this as compared to the other products that exist within the current market. Finally, it has been the understanding of this analysis that it is vitally important to come up with a catching slogan which can be used to integrate the consumer with the product in a brief few sentences while at the same time not sounding trite or technical. As such, the following has been determined to be an adequate explanation of the utility that the product offers as well as a marketing line that can be used as a means of integrating the product with the consumer on a number of different advertising levels: “These fusion blown magnesium wine glasses represent the most cutting edge application of technology with regards to providing the most break-resistant wine glasses that exist. Utilizing a lead free process of crystallization, these wine glasses are dishwasher safe and provide the user with year upon year of enjoyment while still holding their own against wine glasses twice the cost.” Work Consulted "Fusion Classic Cabernet Bonus Pack (Set of 6 + 2 Free)." Wine Enthusiast. N.p., n.d. Web. 16 Apr. 2013. Read More