Product Attractiveness and Competition in the Market Full Of Competitors - Assignment Example

Abstract The core drive for this study is to assess product attractiveness and competition in the market full of competitors. The modern business atmosphere is very competitive and the only means of survival is producing distinguished products. Different business people and organizations People never start businesses to live in them forever. It is therefore a responsibility for business owners to establish an effective exit strategy. A proper exit strategy should be planned for, developed in stages, have a drive and finally an outline of how to achieve the objectives. However, it is significant to understand that various business enterprises adopt different exit strategies based on the product(s) or service(s) they deal in. The paper also focuses developing a suitable tactical marketing mix strategy. The significance of tactical marketing mix on product performance is reflected. This part of the paper exemplifies how the product, its price, placement and promotion techniques influence demand and market share. Additionally, the significance of emerging technologies, such as the internet and media, on marketing is discussed. Generally, the research focuses on the importance of pertinent exit strategy and a tactical marketing mix strategy to a business. At the end of the discussion is a conclusion of all the aspects that have been covered in the study. Market attractiveness and competitive position The sale of a product is largely dependent on consumer taste and preference. Toyota car models, such as Subaru legacy, are in great demand in America and other parts of the world. The car is a choice for many due to its reliability and excellent services. The features of the car are eye-catching and the general outlook is amazing. Subaru legacy is preferred to other cars for its economical fuel consumption, resistance to wear and tear, high speed safety and many other features. However, the car face stiff competition from other luxuries car models from other companies such Honda and Ford. New car models introduced by these rival companies are a threat to the automobile market. As a result, Toyota Company has introduced new and more advanced Subaru legacy models to secure a market share. Exit strategy An exit strategy is basically transition of a company’s ownership, either after achieving the expected objective or to evade failure in future. It is necessary to devise means of recovering invested capital in the event of exiting a business. This can only be made possible by developing an effective exit strategy. According to Hawkey (2002), The type of an exit strategy to be adopted depends on the kind of business undertaken by a company. The best way to make an exit strategy is to initiate a business with the end in mind. Exit strategy goals The goals might include; reaping maximum profits from the exit, to establish a larger company that will deal with more types of product, to merge with a multinational company to enjoy the economies of large scale and to align the four major components for exit, which are plan, stage, drive and achieve, for maximum benefit. The current business venture is to last for the next five years and give room for exist. By the exit period the company should be worth more that 1000000 $ though retained earnings and other tangible assets. Valuation for exit The assets owned by the company should be assessed and expressed in monetary figures to determine the fair value of the venture (Peters, 2009). Consequently, all liabilities should be determined in order to identify the owner’s equity. Determination of owner’s equity should give an insight of how much to expect after transferring ownership. Valuation must be well planned to avoid accounting problem and erroneous decisions. Well structured valuation will enhance smooth transition of ownership without altering major operations of the business. In essence, a plan gives an insight of how the company will prosper if new management takes over. Choice of exit option There exist a variety of exit options such as; initial public offer, mergers, acquisition, sale of business and many others. When determining the exit option to take, several factors should be considered, for instance, benefits after exit, bargaining power of the next owner and the legal framework. The option chosen should offer good returns return, in fact, loss during exit should be avoided at all cost. The reason for exist might influence the choice of exit option , for instance, in case of ill health one might chose family succession to salvage the enterprise from collapsing. The most preferred exit option for profit reasons is selling the enterprise to regain liquid cash. The reason for exit should be revisited and advice should be sought from transaction expert in order to optimize exit options. Sale exit strategy Sale will involve comparing bargaining power for potential buyers and examining the benefits of sale. Determining who to sell the business to is a procedure, not a one day event, and therefore broad research should be conducted to discover the most prospective buyer (Fisher, 2006). The agreed amount of sale might either be paid by cash, stock or a blend of both. Once the business has been sold, the new owner(s) might decide to employee new or retain the existing work force. The exit process terminates once change of business ownership is completed and both parties are satisfied with the transaction. Guidelines for implementation First is to ensure that goal achievement is the main agenda of the enterprise in order to raise the value for sales. In addition, notification of the employees and potential buyers about the exit plan to prepare them for change. Ensuring transparency and accountability in all activities to avoid exit challenges. Essentially, working with a team of experts is important for consequent advice and direction to enhance smooth exit process. Tactical Marketing Mix Strategy Tactical marketing mix strategy is basically a combination of marketing tactics that can be applied to develop a firm’s marketing strategies. Marketing mix is a set of planned trading tools that a business entity uses to produce desired results to the target market. It entails everything that a business enterprise can do to raise the demand for its product. Company objectives The objectives may include; achieving 50% awareness among the American population in a span of five years, establishment of a 30% world market share in the next three years, to realize a sales target of $1000000 in the current financial year and lastly to manage annual growth rate of 7%. In order to achieve these goals the company must ensure smooth coordination of the four major elements of marketing which are; product, price, promotion methodology, place of sale and the quality of service offered to customers. Product The nature and quality of a product influence consumer perception and choice. Consequently, market competition is largely dependent on quality and therefore, the only way to survive in a competitive market is by offering unique and reliable brands of a product. The choice of a quality and attractive product brand to offer to the market can only be made possible by extensive market research. Proper market research will help identify the most preferred models by the target market. For a product to remain attractive, adequate maintenance and safety measures must be established to ensure quality of the product is not tempered with. Additionally, the company should avail the product to consumers at convenient destinations. The major goal is to command a vast market and earn high profits. In essence, the product must be of high quality to appeal to more customers. Price Price is a major determinant of the sales to be made and therefore must reflected when structuring the market for a product. Therefore, it is important to concentrate on building a positive image of the product, for instance through branding to make the product unique. Branding build confidence to potential customers and raise their demand to for the product. Charging fair price for a product is imperative to enhance intact relationship with customers and maximization of profits. The price charged to a product sends diverse signals to the customers. Some customers prefer high prices due to demand for prestige and financial strength. Therefore, it is important to research the nature of customers in the market before deciding the price to offer. To win customers and maintain competitive advantage, a company’ may consider giving discounts and after sale services such free delivery. Promotion Promotion is intended to pass message about the product to potential customers. Proper use of technology, for example, the internet and media as means of conveying information is a major boost in product promotion. In order to reach a wide audience media and online advertisement are the best option. Additionally, personal selling should be encouraged to ensure local market is not lost and to compete favorably with rival companies selling similar product. Consequently, sales promotion through such means as coupons and contests should be conducted to win customers trust and boost sales. Product promotion is an important exercise which does not only aid in introducing a new product to the market but also reminding customers that a product still exists. Place Dahlén & Lange (2008) argue that place play a vital role in marketing and therefore it must be focused on when structuring the market for a product. Effective use of the internet services such as e-commerce should be encouraged to bring the product at customer’s convenience. The internet allows potential customers to inspect and compare the various products offered by different marketers without having to travel. In fact, the internet has made the world a global village and eased the marketing process since it is possible to transact business with anyone from any part of the world. Place of production, distribution and sale of a product affects the final returns from the product. In essence, the product must always be accessible to the customer for smooth sale. Additionally, arrangement for transportation of ordered products to convenient customer destination should be encouraged. In order to trade effectively, an efficient supply chain should be established and well managed. Supply chain management is a crucial tool for ensuring efficient networking of supplies and timely receipt of products by the clients within and outside the country. Conclusion Entrepreneurs should always have an exit plan when starting a business. The exit process should be conducted with a lot of caution to avoid losses and inconvenience. Tactical marketing mix strategy facilitates proper performance of a product in the market. The type of marketing strategies adopted by a business entity affects all the activities it is involved in. In order to enhance effective marketing, it is important to use the right combination of marketing techniques. Therefore, research about the market, customers and nature of the product must be carried out competent marketing. References: Dahlén, M. & Lange, F. (2008). Marketing communications. Hoboken, N.J.: Wiley; Chichester: John Wiley [distributor]. Fisher, P., Pride, M. & Miller, E. (2005). Blueprint for your library marketing plan: a guide to help you survive and thrive. Chicago: American Library Association. Fisher, S. (2006). The real estate investor's handbook: the complete guide for the individual investor. Ocala, Fla: Atlantic Pub. Group. Hawkey, J. (2002). Exit strategy planning: Grooming your business for sale or succession. Aldershot: Gower Pub. Peters, B. (2009).Early exits: exit strategies for entrepreneurs and angel investors (but maybe not venture capitalists). [Coquitlam. B.C.] : MeteorBytes. Read More