Strategy Case Critique - Essay Example

He takes into account urbanization, leisure, competition, discretionary income, travel, styles, tastes, automobiles, informality, and convenience have led to the emphasis on product form, readiness, packaging, combination, and selection convenience. The case study identifies expected outcomes and impact which helps managers to implement and introduce a new product. I like the selection of the geographical area and the two-phase model of entry. It is evident that before adding a product, however, a company should establish various criteria concerning the size of the available market, the rate of return on investment, the net profit, the patentability of the item, the congruency with current corporate situations, and the impact on the sales organization. Market segmentation often results from substantial growth. The only weaknesses are a lack of attention to competition and possible problems caused by market rivalry. Also, the market segmentation involved only age differentiation (20-40, verses 40-60, or hybrid) but does not take into account possible gender differences (males and females) in product perception and satisfaction.

If I was working for the Board of the Company I would implement this plan because it proposes great opportunities to expand the business but does not require immediate investments in market development. I would implement recommendations but provide additional research on competition and gender differences in product perception. By cultivating specific market segments, companies seek to make use of a greater opportunity to maximize customer satisfaction. This maximization, in turn, results in the development of a more secure market position and posture. As products are designed to serve the needs of individual customers, they assume a special character and increase their distinctiveness. The closer the product is to the point of customer purchase, the more differentiated it becomes, and the less flexibility is available to the manufacturer. For some products, the demand of an individual customer may be unique, and the product takes on rigidity (Drejer, 20).

The only change is to concentrate on one age group (40-60 years old). This is a traditional age group for this product so it would be easy to reach this target audience and increase sales. The age group 20-40 years old can be added in a year. After markets are developed on some general basis, they reach the point where additional effort tends to yield diminishing returns, and attention is given to specific market segments that become large enough to be attractive. Advertising and personal selling may be used as complementary or supplementary market-communications activities. Their respective roles depend on company products, customers, and markets. Often they are used in a complementary manner, with advertising paving the way for personal-selling activities. In other situations, such as in making industrial sales, personal selling is usually the most important component, while advertising may be a supplementary activity that helps create awareness. In either case, both should be coordinated by marketing managers. Salesmen should be aware of advertising plans and programs, and advertising campaigns should be developed within the boundaries of sales tasks, both of which should be viewed as mutually supporting functions.