Promotion Strategy for SENZ Company - Research Paper Example

PROMOTION STRATEGY FOR SENZ Introduction SENZ is a company that deals with manufacturing of umbrellas. The company was set up a year in the year 2004 by Gerin Hoogerdoorn, Hess and Gerald Kool. The idea of umbrella making started with Hoogerdoorn a freelancer in the Delft University of Technology but had no idea on how to operate it. After looking for more information on the business running, he met Hess who is a graduate in business administrations and together with Kool who is the company’s chief operations officer. The business has since continued to change with many companies that base on umbrella making popping up meaning competition is getting stripper every day. Therefore to increase the market share of the SENZ in the market scene, strategies ought to be laid to ensure that business continues to grow and attract more customers. SENZ company had planned to bring a great revolution in the market seen by coming up with the new design of umbrellas that are going to be efficient in diverse climates. Those working in the design and marketing sectors of SENZ believed that the product would be easy to explain to the public and hence would perform better. They based their claim on the current condition of umbrellas; most umbrellas tend to turn inside out during heavy winds. So, the company relied mainly on this uniqueness and design factor as a major pull for increasing market share (MCLEISH, 2010). The retail price for the high-end umbrellas was around$12 accounting for about 25% of the market share. According the initial studies on the consumer test, it was noted that many consumers considered the durability, brand, the ease of use and color of umbrellas. The operating margins or these umbrellas were about 40-60% of the retail price and around 40% distribution sale for the distributors. SENZ Company decided to venture into the high-end umbrella segment of the market aiming to retail it product at a price of about $ 50 (VAT included) for the original SENZ and about $40 for the mini umbrellas. Theses relatively high price were aimed at positioning the SENZ umbrellas as unique and high-quality products. They were also intended to cover up the production costs which would much higher than the standard umbrellas attributed to the umbrella design. The target for all this was to enable the company to penetrate the market and work with the top brands by taking the advantage of its first mover advantage. The founders also wanted to have more capital that they would invest in the research to continue advancing the company products to the required standards to changes in the technology field. Although this attracted customers; it did not cause the number that the company expected which, as a result, calls for a comprehensive study and analysis of the market structure. Taking this step would be vital as it is going to identify all the strategies it ought to embrace to help reposition itself in the market (KOTLER, & SCHEFF, 2012). Promotion is on the key things that require a careful layout since it entails to one or two way communication with the consumer. The process consists of primarily advertising and sale promotion is of the major ways that a firm can communicate to its consumers through offers. The decision on the best way to communicate in the market scene involves making key decision ns on the customers, how to contact and what kind of massage ought to relay to them. This process requires several stages to make sure that it is effective. First the company ought to divide the market scene in groups distinctively a process known as segmentation. The intention for this step is to measure the success of any information messages by identifying clients. SENZ ought to identify its potential customers, identify how they differ. For this, however, to be effective, the company ought to engage in extensive market research. The research ought to gather the information about the consumer media behaviors, their priorities, how much income they earn. It should also identify their purchasing habits and probably living conditions and standards. This information can be obtained by commissioning an agency to carry out the research in the field, examining sale patterns and interactions from the social media platforms (GELDER, & WOODCOCK, 2003). After gathering all the requisite information about the consumer and the general market, SENZ ought to decide on the best techniques of communications to with the best subdivisions of the market to ensure the best probable reaction rate. The methods used here are supposed to be related to the objectives of the marketing strategies; to create awareness of new SENZ umbrellas and attract business away from our competitors. The company can also embrace the social media platforms such as the Facebook, twitter and Google+ to improve its product. This provides a more relaxed environment t and cheap compared to most of the other mode of promotions. The process also serves to connecting with the world customers and serves to get perceptions directly from them at personal level. Venturing into this kind of design is going to facilitate interactions between the SENZ customers to ensure no divide between the company and the clients. Possessing a website is a now an essential ingredient to the marketing mix approach of the organization. Customers can attain instant information on products or services to help them in their critical purchase judgment (KOTLER& SCHEFF, 2006). One of the major things that this company ought to focus is sponsoring big events such as sports, and other recreational activities. Other targeting move that SENZ Company ought to incorporate is giving branded promotional gifts. This is more efficient promotional move compared to giving cards and other items. They are gifts a company can give to consumers for the purpose of ensuring an all-time sight to customers rather than things that can be kept in drawers. The company should also engage in promoting its products via support. This is going to make its customers feel part of it. It comprises of developing optimistic relationships with the organization media public. The art of decent public associations is not only to gain promising promotional within the media, but it is also embroils being able to handle efficaciously negative responsiveness (GELDER& WOODCOCK, 2003). The knowledge can be carryout by use of various techniques such as contests. It is obvious that people like to win a price. The idea here it to improve and put SENZ umbrellas in front of the general public rather than make through selling campaigns. The company ought to focus on sponsoring such contests to bring more attention to umbrella without its overtness. This is where the company is going to pay an organization to use our brand or logo. This organization usually has a high profile so that you know that the SENZ brand will be seen by large spectators. Most common use of sponsorship is with sporting events. For instance, the 2012 Olympics being held in London is being subsidized by a number of organizations such as McDonalds and Coca-Cola as the event will interest a worldwide audience that will run into hundreds of millions (MCLEISH, 2011) Work Cited GELDER, D., & WOODCOCK, P. (2003). Marketing and promotional strategy. Cheltenham, Nelson Thornes. KOTLER, P., & SCHEFF, J. (2006). Standing room only: strategies for marketing the performing arts. Boston, Mass, Harvard Business School Press. KOTLER, P., & SCHEFF, J. (2012). Standing room only: strategies for marketing. Boston, Mass, Harvard Business School Press. LONGENECKER, J. G. (2006). Small business management: an entrepreneurial emphasis. Mason (OH), Thomson/South-Western. MCLEISH, B. (2010). Successful marketing strategies for organizations winning in the age of the elusive donor. Hoboken, N.J., Wiley. MCLEISH, B. (2011). Successful marketing strategies for nonprofit organizations winning in the age of the elusive donor. Hoboken, N.J., Wiley. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=624569. ROGERS, S. C. (2001). Marketing strategies, tactics, and techniques: a handbook for practitioners. Westport, Conn, Quorum Books. Read More