Paper covers these competencies:
DEVELOPING NEW PRODUCTS TO CAPTURE MARKET
a. As the company has core competency in the beach sunglasses market so they should not venture into other areas from the outset. They can introduce two new products that are suitable for beaches. The products are- wraparound glasses and disposable sunglasses. Wraparound sunglasses are preferred by many customers who go to beaches as they provide better protection from UV rays from all around. Disposable sunglasses can be targeted at the younger population. These glasses will be cheaper and parents can buy them for kids who are not regular visitors to beaches (Pukthuanthong & Roll, 2009).
i. Methods used to determine market requirements
For these purpose three different methods were used to gain knowledge about the Bondi Beach market. They are-
Primary Research- Primary research was conducted through the internet and via a local market study organization to find out about the needs of the beach going crowd. Emails were sent to the thousands to people living in that area and the market research organization asked the crowd in Bondi Beach about their needs about sunglasses.
Secondary Research- Secondary research data was acquired to get information about the market there (Widaman & Little, 2011).
Competitor Analysis- One of the best ways to get information about a market is by analysing thee competitor performance in the market. For this, the sales figures and product lines of the competitors currently active in that region were analysed.
ii. There are various advantages as well as disadvantages of entering a global market. One major advantage that BreakWater will get by going global is brand reputation. While their revenues will also increase because of their increased customer base, the advantage they will get from gaining brand reputation is very important in the long run. At the moment they are active mainly in California beaches. While this is good but they have no brand recognition in the international market. By entering Bondi Beach the organization will start getting international recognition.
BreakWater is not only entering a global market but they are also launching two new product lines. The inherent risks associated with this are-
The organization has no past expertise about the products launched. The new design and concepts can easily backfire and the customers may not like them. To minimize this risk extensive research needs to be conducted about the viability and appeal of the products.
Another risk associated with this is the risk of increased competition. Various companies that are already catering to the needs of Bondi Beach market will give BreakWater tough competition and this might be fatal as they have experience about operating in that area and the local companies have very good idea about the local needs. To minimize this risk BreakWater has to analyse the core competencies of the competition and they have to find the need gap.
a. Information generated by the CRM system can be used in many ways like – track customer feedbacks, tend to customer complaints, based on the feedbacks develop new product ideas by getting information about customer requirements (Ngai & Xiu, 2013).
a. The organization can come to agreement with local cooperative organizations to enter the market. In this way they will have regional trade alliance with their partner for distribution of products.
b. A global supply chain can increase the overhead costs of a product. They need to be competitive in the cost department as they are not a premium brand for sunglasses. Also, the cost of their new disposable sunglasses has to be low as that is the main advantage of such product. For them providing service to the customers can also become complex as they don’t have a proper system for servicing in the new market (Bernard & Grazzi, 2013).
a. Costs associated with developing and launching new products are- planning cost, research cost, design costs, manufacturing cost etc.
b. Customer acceptance of the price is very important for a product. The price cannot be so low that the customers think that there might be quality issues and it also cannot be so high that the customers are not willing to pay for it. The second case is applicable if the product is not premium quality (Yan, 2011).
c. Competitor prices need to be analysed while entering a market. This provides information about the pricing strategy of the product, expected revenues etc.
a. As traditional mass Medias like television advertisement is very costly, BreakWater can chose email advertising as well as newspaper advertising in the Sydney local newspapers. They can use Facebook and Twitter for social media advertising.
i. This mediums are chosen as these are relatively cheap and young as well as middle aged demographics use these mediums.
b. BreakWater can organize various fun activities on the Bondi Beach to attract crowd and they can provide coupons with discounts for their sunglasses in the initial stages.
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