Crafting a Winning Product Plan

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Marketing Strategy

Marketing is a critical management function because it works to improve the performance of the firm in the marketplace (Constantinides 408). The company has developed marketing strategies that aim to give it a competitive advantage and increase its profitability.

Product Strategy

The product strategy employed in the Latin American market takes into consideration consumer needs and preferences. The company has designed products to cater to its identified target markets to adequately meet their needs and improve consumer perception regarding product value. For instance, developing products that cater to health-conscious customers helps to meet the needs of consumers in this market. The approach taken is customer-oriented to enhance consumer loyalty and gain a competitive edge.

Distribution Strategy

The distribution strategy used is based on consumer buying habits. For instance, the web/home distribution channel focuses on consumers that prefer online shopping. Changing lifestyles have driven most consumers to resort to online shopping because it is convenient (Finne and Grönroos 180). The company has also used a distribution strategy that considers the nature of products to be distributed. The products are not highly perishable. They can, therefore, be distributed to consumers through intermediaries. However, a focus on quality and the importance of ensuring that the image of the company is safeguarded means that the company’s products can only be found in specific outlets.

Advertising Strategy

The advertising strategy has been developed to appeal to consumers in different target markets. Consumers in a specific market segment have unique characteristics that influence their buying behavior (Kotler and Armstrong 34). Various marketing campaigns have, therefore, been designed to appeal to the needs of each target market.

Pricing Strategy

The company has also used a pricing strategy influenced by consumer demographics. A low-cost strategy has been used to appeal to consumers that are sensitive to prices. However, high-pricing has been used to appeal to the needs of consumers motivated to purchase products based on quality. The different pricing strategies, therefore, cater to the needs of different target markets.

Results from Operations

Despite the marketing efforts of the company, it has not been profitable. The cumulative net regional contribution is negative as shown in figure 1. The graph indicates that the company has been recording increasing losses instead of profits during the course of its operations. However, the unit sales of the company have been growing gradually. It has also seen its cumulative return on marketing rise. The losses may be the result of high operating costs. A company can record an increase in sales revenue but still realize losses when its operating costs are high (Barbot, Costa and Sochirca 271). Enhancing operational efficiency can reduce the cost of doing business and improve the profitability of the firm.

An increase in the cumulative return on marketing as shown in the graph is an indication that the marketing strategy employed by the company is effective. However, the graph has leveled off, and this indicates that there is a need to redesign the strategy to take into account changing market dynamics. Stagnated brand equity growth further supports the need to redesign marketing strategies. The firm should seek to enhance the value of its brand through effective marketing.

Figure 1. Cumulative Performance

The company has the lowest market share. This may be the direct result of exogenous factors such as competitors taking up its market share. The lack of effective marketing strategies has also impacted negatively on the company’s market share.

Conclusion

In conclusion, the report reveals that the firm should redesign its marketing strategies to reflect conditions in the business environment in order to increase its market share. The company should also aim to enhance operational efficiency to improve its bottom line and achieve its profit goals.

Works Cited

Barbot, Cristina, Álvaro Costa, and Elena Sochirca. "Airlines performance in the new market context: A comparative productivity and efficiency analysis." Journal of Air Transport Management 14.5 (2008): 270-274.

Constantinides, Efthymios. "The marketing mix revisited: towards the 21st century marketing." Journal of marketing management 22.3-4 (2006): 407-438.

Finne, Åke, and Christian Grönroos. "Rethinking marketing communication: From integrated marketing communication to relationship communication." Journal of Marketing Communications 15.2-3 (2009): 179-195.

Kotler, Philip, and Gary Armstrong. Principles of marketing. Pearson education, 2010.

September 18, 2023
Category:

Business

Subcategory:

Corporations Marketing

Subject area:

Company Marketing Strategy

Number of pages

3

Number of words

700

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31

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