market segementation
...s the product matures. It is difficult to maintain differentiation. You build a unique product position in order to justify a slight premium. For example, Volvo is recognized as a safe vehicle. It is one up in a very competitive market with very little differentiation. 2. Please do a SWOT analysis of the Sorzal Distributors Company. Describe what you would do to beat your competitors. Which strategy would you use? 3. Please do problem number 4, Chapter 2 [in your book pg. 47] and briefly describe why each step is important. What it reveals that you can use for your strategy. 4. Please describe segmentation and how you would use it to improve the market position of any company. Is it useful? Why? Name a few types of segmentation strategies. Market segmentation is the breaking down or building up of potential buyers into groups. These groups are typically termed market segments. Each segment is to possess some sort of similar characteristic relating to its purchasing or consumption behavior, which is reflected in its responsiveness to marketing programs. I would use market segmentation to improve the market position of Elizabeth Arden. For example, the company sells its products in prestige, mid-tier, mass, and other goods (Ross, Marshalls, Navarro) markets. The company is making the products available for everyone to buy, which is great, but if the brand Elizabeth Arden wants to remain a prestigious one, they need to rethink their strategy and consumer base. Eventually, the prestige department stores will not carry Elizabeth Arden products because they are not exclusive to anyone. Why would they carry an EA product when you can go to CVS or Wal-greens and get it there at a less price? This is where market segmentation becomes useful. It is useful for many reasons. It helps in the design of marketing programs that are most effective for reaching homogenous groups of consumers. It improves the allocation of marketing resources and identifies the opportunities for new product development. A segmentation strategy would be mass customization – tailoring products and services to the tastes and preference of individual buyers in high volumes and at a relatively low cost. It combines the efficiencies of mass production and the effectiveness of designing offerings to a single buyer’s needs and wants. 5. Describe in detail branding strategies, the different elements involved in creating a brand strategy, and what the clear benefits are of branding for optimal positioning. Line extension strategy is the most frequently employed growth strategy. Line extensions occur when an organization introduces additional offerings with the same brand in a product class that it currently serves. New flavors, forms, colors, different ingredients or features, and package sizes are examples. Line extensions respond to customers’ desire for variety. They can also eliminate gaps in a product line that might be filled by competitive offerings or to neutralize competitive inroads. This strategy also lowers advertising and promotion costs because the same brand is used on all items. Brand extension strategy is t...