A Company's Need to Focus on the Product for Generating Profit - Report Example

Business Product Report Table of Contents Table of Contents 2 Stone Shelf 3 SWOT Analysis 4 Strengths 4 Weaknesses 5 Opportunities 5 Threats 6 4 P’s of Marketing 6 Price 7 Product 7 Promotion 8 Place 8 Recommendations 8 Conclusion 9 Business Product Report Stone Shelf The idea chosen for the proposed product is taken from the artwork by Susan Hiller and her collection From the Freud Museum 1991–6. I went to the Tate Modern with my group but I did not find the art of my interest. It is the reason that I selected the art from the web. Stone Shelf is a product that contains six types of stones in it. It includes Amethyst, Citrine, Turquoise, Blue Topaz, Peridot, and Jade. Different colors, sizes, and shapes will attract art lovers to the Stone Shelf. The stone will be placed on a shelf in different boxes so that the beauty of every stone is represented separately. Stone Shelf will be small in size presenting only six selected stones. Each type of stone will have its attractive look. Different colorful stones will touch the heart of observers. The colors of stone especially purple are the symbol of natural beauty. The stones will be collected from different parts of the world, and the purpose is to present them as an art to the art lovers. These stones are precious due to their uniqueness that could not be found everywhere in the world (Collings, 2009). The purpose to set them on a shelf is to express the thoughts that all the beauty is gathered on one shelf. The front part of the shelf will be of transparent tempered glass. The border will be full of embroidery in black color. The back of the shelf will be covered with timber wood looks like a frame. The stones will place on the shelf in two rows and three columns. The size in between the stones will be limited, and the border of white color will fill the gap. SWOT Analysis SWOT Analysis refers to the planning method or procedure that includes evaluation of strengths, weaknesses, opportunities and threats related to the project or a particular venture (Böhm, 2009). The product needs analysis to determine the reliability of the product for the company. The following is the matrix of SWOT analysis of the product that contains all these elements of the analysis with their description. Strengths There are several strengths of the product as it is related to the artwork. The main strength is that it will attract art lovers. More people will be attracted towards the Tate Modern. The visitors will come from all over the world to see the art. Strengths include the uniqueness of the product. Unique stones will enable more people to visit the art gallery. These stones are gathered from different parts of the world that separate it from other types of stones. The categories, colors, and shapes of these stones are exceptional (Giusti, 2006). The beauty of nature will attract the customers of the company to observe the art related product that could not be seen everywhere normally. The product is rare because the concept is different from the gift items. The product is not common at every shop as it contains semi-precious items. The product will prove to the high-profit generator as the stones are precious that are placed in it. Weaknesses The product is very expensive. It could not be sold to different customers. Only high-income customers could be targeted as the price of the product is high due to its uniqueness and beauty. People will only visit to observe the art, but the product will be sold to a person who can afford to buy it. The cost of the product is too high as it consists of expensive stones that are costly and purchase from the international market. There are other costs that will be included in bringing the stones to the place where it is transferred into shelves. Transportation and other charges for importing the stones will be high. Duties and taxes are other expenditures that would be paid by the company. Opportunities The product has the opportunity to earn super-normal profit because the product is expensive. The product is art related so it will drive high profits for the company. The company could receive the high amount through auction for the product as it is not an ordinary product. The amount will be in millions, and much revenue could be generated from it. The product will increase the credibility of Tate in the international market. Howeever, competition will increase in the international market. The competition will not be related to the low price, but the quality and uniqueness will increase the future growth of the business (Prahalad & Ramaswamy, 2013). Threats The product will take a long time to sell because it is a precious product (Pan, 2008). It will take few months to sell out as it includes some paperwork that will transfer the ownership of the product. Time will also be required for the promotion of the product as it is not an ordinary product that could be received many customers. The product will also utilize more resources that could be used for different purposes. The product will require special security with an attractive location for placing the product. The advertisement will be made on the product particularly. The auction will be conducted for selling the product. All the resources allocated to the particular product is a big threat to the business as it has several other products to sell. 4 P’s of Marketing It is a term that is used in marketing by marketers. It is useful for determining the product that is to be introduced or launched by the company (Habiyaremye & Miller, 2013). There are four elements of the model that are mentioned below: Price Price is the estimated or set price of the product that is to sell in the market (Dogra, 2010). The expected selling price of the product will be starting from $10 million. Further price will be determined through bidding. Payment conditions will be decided later through an agreement with the buyer of the product. Product The product is related to the information and description of the product that is ready to sell (Gummesson, 2012). The product is Stone Shelf that consists of Amethyst, Citrine, Turquoise, Blue Topaz, Peridot, and Jade stones that will import from different countries. The product will be placed on an exhibition to attract art lovers. The product is different and unique because it contains precious stones in it. The packaging of the shelf with tempered glass and high-quality wood on the backside will express the beauty. Colorful stones will touch the heart of the observers. Its association with Tate is the proof of the high quality that will present for exhibition. Promotion The promotion is necessary for the product as it is the product that needs promotion and marketing (Nijssen & Frambach, 2001). Electronic media is helpful in promoting unique products. Advertisement on television and website are the means of the modern era. The promotion will be done on electronic media as it is available for exhibition and sale. The advertisement will give awareness to the public those need to see this type of unique products. The buyers of the product will be targeted by messages and calls for inviting them to the exhibition. The high cost will be incurred on advertisement for selling the product to interested and potential buyers. Place Place refers to the location and placement of the product (Moore & Pareek, 2006). The product will place in an exhibition of art. The product will be on the right side of the entrance to enable the observers of art to attract toward it. The directions will mention at the entrance of the gate that the product is placed on the right side. Decorations will be made around the place of the product that is to be highlighted for the viewers. Recommendations The company has to avail opportunities by reducing threats of the product. The product should be sold at a high price without delay so that the revenue could generate from it in a short period. It is possible only when the product will be included in the art exhibition, and the bidding will increase the price of the unique product. The company has to recover the cost of the product, and it has to set the high price for the precious product. The electronic advertisement must be done for the product before it is placed in an exhibition. Conclusion The company has to focus on the product as it is crucial for generating profit. The product will generate high revenues for the company on the basis of its uniqueness. There are other products that are important but this product will prove to be useful in boosting the profits for the company. SWOT analysis of the product indicates that there are more strengths and opportunities as compared to weaknesses and threats. The company has to focus on opportunities that will reduce threats. The price of the product could be charged high because of its differentiation with others. The company has to make effective promotions give awareness to the targeted customers and allow them to visit the exhibition. The product has potential to compete in the market, and the credibility will improve from its introduction. The report has proved that the product will be beneficial for the company in long term. The company could change its product weaknesses into opportunities through effective strategies as mentioned in the report. List of References Böhm, A., 2009. The SWOT Analysis. Munich: GRN Verlag. Collings, M.R., 2009. Gemlore: An Introduction to Precious and Semi-Precious Stones [Second Edition]. Maryland: Wildside Press LLC. Dogra, B., 2010. Rural Marketing. New York: McGraw-Hill Education. Giusti, A.M., 2006. Pietre Dure: The Art of Semiprecious Stonework. Los Angeles: Getty Publications. Gummesson, E., 2012. Total Relationship Marketing. London: Routledge. Habiyaremye, J.D. & Miller, J., 2013. Market Segmentation and 4 Ps. Munich: GRIN Verlag. Moore, K. & Pareek, N., 2006. Marketing: The Basics. London: Taylor & Francis. Nijssen, E.J. & Frambach, R.T., 2001. Creating Customer Value Through Strategic Marketing Planning: A Management Approach. Berlin: Springer Science & Business Media. Pan, A., 2008. China Gem and Jewelry Market Overview: Selling Jewelry in China. Beijing: Zeefer Consulting. Prahalad, C.K. & Ramaswamy, V., 2013. The Future of Competition: Co-Creating Unique Value With Customers. Harvard: Harvard Business Press. Read More