SoFair: Marketing and Branding - Case Study Example

SoFair: Marketing and Branding Name Course Name and Code Instructor’s Name Date Table of Contents Table of Contents 2 Introduction 2 Strategic Theories and Models 3 Game theory 3 Signalling theory 3 Innovation theory 4 Market Orientation 5 Marketing Mix 5 Key Segments and Targeting 6 SMART Objectives 7 Ideas for Implementation and Measurement 7 Objective 1: Create Online Promotional Plan 7 Objective 2: Increase Sales 8 Objective 3: Sale more than 100 products of each type monthly 9 Objective 4: Logistics 10 Conclusion 10 References 12 Introduction Organisations and business have potentials and opportunities to increase sales and this can be achieved through utilisation of strategic and marketing theories in ensuring more consumers appreciate the products. SoFair is an example of an organisation that has potential to increase its market share and also sales. The problem with SoFair is the lack of promotional strategy and logistics. The organisation should introduce strategies to ensure consumers have knowledge regarding the product and also to increase sales. The aim of this report is to analyse some strategic theories and models that illustrates position of SoFair, formulates and implements some objectives that will see the organisational become more profitable. Strategic Theories and Models Game theory Game theory can be defined as the study of decision making in an environment that has intelligent and rational individuals based on a situation of conflict and cooperation. The theory presents a situation where one action results in a different action (Baker and Saren, 2010). For example, in the case of SoFair, the company aims to sell bags obtained from Indian women and to sell them in Southampton. There are two scenarios that might occur which are to help the women from India and also to be able to sell these bags while ensuring competitors are also addressed. The aim of SoFair is to assist but the strategy employed should be viable and the products are of better quality to their competitors to be able to sell more products (Ludicke, 2006). Therefore, the theory wants a situation where cooperation yields better benefit compared to conflict. If the Indian women collaborate effectively with SoFair, it translates in benefits to both organisations based on their aims (Palmer, 2012). Signalling theory Signalling theory is important in describing the behaviour of two parties that may access information that is different (Gupta, 2009). SoFair and Indian women can be taken as the two parties that have access to different information. SoFair Company has information of the importance of the bags made by the Indian women and also they can access the market (Blythe and Zimmerman, 2005). On the other hand, the Indian women have information on the bags and they can guarantee that they can produce bags of a higher quality compared to competitors (Bush and Hunt, 2011). The aim of SoFair is to assist the Indian women; therefore, SoFair will signal the Indian women and present their proposal and obtain the feedback from the Indian women. Conversely, the Indian women produce the bags and signals SoFair and informing the bags are ready for shipment (Haberer, 2010). Hence, the two parties signal each other towards fulfilling their different aims and objectives. Innovation theory Organisations should be innovative to deal with uncertainty and disequilibrium. Organisations such as SoFair should be innovative in their services and processes to ensure they become competitive (Baran and Davis, 2011). SoFair should discover new markets and be innovative in all processes to ensure the products are appreciated by the consumers (Gennard and Judge, 2005). For SoFair, it should look for new markets and also assist the producers in producing products that can be appreciated by more than the current consumers (Wang, 2010). In addition, SoFair should formulate and implement a strategy that will ensure the products are received at a shorter period not as before e.g. between 6-8 weeks. SoFair should work on logistics and deliver the products within the shortest time. Market Orientation The theory is based on reacting to what customers want. The decisions taken by an organisation should be based on customer’s information in terms of their wants and needs, rather than what the organisations assumes the customer wants (Enz, 2009). Market orientation approach is important because the organisation knows in advance want the consumers wants and should be done to ensure the production process is beneficial. SoFair organisation should understand the requirements of the customer and their preferences before deciding on what type of bags should be supplied. Marketing Mix This is a tool that is utilised mostly by marketing professionals (Richter, 2012). The marketing mix brings into consideration four marketing components, which include product, price, place and promotion. Product- this is the item that satisfies the customer wants and needs. These are the actual bags that are produced by the Indian women. The bags are 100% cotton. Place – this is the location in which a product can be accessed. In the case of SoFair, there is no specific location in which the products are based since they wait until they receive information on customer demand so that they may supply. Promotion – these are all the strategies that can be utilised by a marketer to provide information to consumers and other parties regarding the product. Promotion has not been done by SoFair and thus the product is not known by many consumers. Price – this is the amount that a customer has to pay to access the product. The SoFair products are very expensive and fewer people can purchase the product. Key Segments and Targeting Targeting is important for any product or service to be purchase in huge volumes. Targeting allows consumers to select consumers based on various traits that may include psychographics, demographics, and behavioural characteristics (Gitman and McDaniel, 2008). When a target market has been identified, the next step is segmenting the target market. Market segmentation allows an organisation to divide a target market into consumers’ subsets that have similar needs or desires. In the case of SoFair, the target markets are delegates and people attending seminars. SoFair should diversify and introduce other segments/targets to ensure they improve on their market share. From the analysis, it is evident that the bags are expensive and takes longer periods to be delivered and also their preferences to delegates/seminar consumers. SoFair should incorporate other consumers and also modification of the products to be appreciated by more consumers (Hunt, 2010). The products should introduce a brand for college students since the entire idea and people dealing with the products are students. The volunteers and interns from the university can market the products to the students and the products should be a taste for ladies and another for gentlemen (Hackley, 2010). Generally, there should be four products for university female students, university male students, delegates/seminar bags, and shopping bags. These products will make the organisation to have a variety of products that can appeal to numerous target groups and segments. SMART Objectives The objectives to increase the number of sales and market share for SoFair products are: To increase number of sales by 50% compared to the average of previous three months Introduce three products that should sell 100 products of each kind within the next months Create online promotional plan in which it is estimated more than 500 consumers visit the page monthly Work on logistics ensuring the consumers receive the products within the shortest time (time period provided by the customers) for specially requested product and instant sale for other products since a shop will be opened within the university Ideas for Implementation and Measurement Objective 1: Create Online Promotional Plan SoFair have never carried out any promotional plan before minimal resources is usually allocated to the promotional department. SoFair should understand promotional is an important requirement that makes consumers to know the existence of certain product and the benefit of the product (Hill and Jones, 2009). Numerous methods exist that can be utilised for marketing but the appropriate method for this products is online marketing (Codita, 2010). The benefit associated to online marketing is cheaper and it is easier compared to other methods. Moreover, online marketing can be done by individuals who do not have enough experience in marketing. SoFair should create an online website that allows marketing for the product and also to create accounts in social media that redirects the customer to SoFair main website (Belk, 2007). The website would contain the four products, indicating the images of the products and the applicability of the product. Moreover, the price will be placed and uses of the product can also be displayed (Tehrani, 2008). Two social media accounts: Facebook and Twitter will be utilised in doing sales. The marketers utilising social media should maximum on university’s students and illustrates that the business is based on initiative taken by some teachers and students of the university. In addition, information should be posted informing the consumers’ origin of the idea and the producers of the products (Osterman, 2007). The consumers who will access the social media will be asked to comment on the product and to state whether they like the product or where improvements should be done. The social media will have a web link that redirects the consumers to the SoFair website where statistics will be collected. The website will have an online method in which the number of consumers access the site will be recorded and also it can determine the origin of the access. The origin of access is important to determine where consumers have been searching for information for the product. The aim of the project is to ensure that more than 500 people can access the website Objective 2: Increase Sales Sales are an important component that is normally utilised in measuring how the business performs. Sales also are based on whether consumers have enough information on the products. Consumers accessing information can be achieved through doing promotion and this would be achieved through maximising on promotion. Originally, only one product – delegates/seminar bags were been sold and it usually took long to be delivered. The products are now four and it is easier to market four products and a bigger market share can be accessed. Based on information obtained for the past three months, the sales of a single month should increase by 50% of these months. The sales is easy to achieve because of promotion commissioned compared to other months were promotion was not done. Objective 3: Sale more than 100 products of each type monthly Introduction of three more products will make a total of four products that SoFair will sell. Originally, there was only one product that was designed for delegates/seminars and presence of more products plus promotion will contribute to more sells. The aim of promotion and sales section is to ensure not less than 400 products are sold monthly. These sells will ensure that the promotional cost and shop bill is met and also more revenues of the product will be generated. Records will be kept to ensure that other objectives based on this requirement are achieved. For example, if on the month of March, 400 products are sold, it means that and according to other objectives in the month of April more than 600 products should have been sold. The month of April will require additional products in the market and thus the Indian women should increase their products to meet the market requirements. These women should be informed that the more products they produce yields more profits. The Indian women should be informed price of the products determines the sales and consumer segment that can purchase them. The university students usually have less disposal income meaning the products should be cheaper (Kemmer and Boden, 2012). The cost of production should be decreased and also more products should be produced to champion economies of scale. Objective 4: Logistics According to available information, delivery of the products takes between 6-8 weeks. The procedure of production is that request from customers is received and the request is then send to the producers to produce the product. After information and consumer behaviour have been received from promotional strategy, certain number of products should be available within Southampton for those consumers who wants the products within a shorter time. Products that have not been branded should be transported to Southampton whereby branding can be done based on consumer requirements. This means that SoFair should invest in branding equipments and tools. Branding done near the consumers is important because the customer can be updated on their products’ process. Moreover, the customer can see the product and request for corrections (Murray, Poole and Jones, 2006). This approach will reduce the cost of products received from India because the cost of branding will not have been included. Pre-supply of the bags reduces inconveniences to the consumers and thus the image of SoFair can be positive. Moreover, a satisfied customer can sell the organisations brand through word of mouth and hence increase in sales. Conclusion SoFair products have a potential but the problem is lack of promotional and production procedures. Utilising numerous strategic and marketing theories illustrates that SoFair is in better position to ensure the organisation becomes more profitable. Lack of appropriate promotional strategies has contributed to lack of consumer awareness of the product leading to fewer sales. Moreover, SoFair should work on logistics to ensure the products are supplied to the consumers within the shortest time. In addition, SoFair should increase sales by 50%, introduce three more products, make sales of more than 400 products monthly, and more than 500 customers should access SoFair website. References Baker, M., and Saren, M. 2010. Marketing Theory: A Student Text, 2nd Ed. London: Sage Baran, S., and Davis, D. 2011. Mass Communication Theory: Foundations, Ferment and Future, 6th Ed. London: Cengage Learning Belk, R. 2007. Handbook of Qualitative Research Methods in Marketing. London: Edward Elgar Publishing Blythe, J., and Zimmerman, A. 2005. 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Brand New China: Advertising, Media, and Commercial Culture. Harvard: Harvard University Press Read More