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Market research is one of the vital components adopted by companies to understand the needs, beliefs and desires of the customers. Primary and secondary are the major types of research that includes market information, market segmentation, market trends, SWOT analysis and other tools that help to gain an insight of the market conditions (Elliott, Thiele and Waller, 2014).
Tesla is an American based automobile company that has very well positioned itself through its planned and extensive market research (Tesla, 2017). The company performed a strategic market research by using different tools such as PESTEL analysis, surveys and questionnaires and other methods to gather information from the market. Tesla used PESTEL analysis to assess the political, economic, social, legal, environmental and technological factors of the market to construe that the governments are promoting the production of environmental cars because of rising prices of fuel. The customers, on the other hand, have also begun to prefer the cars that protect the environment and do not pollute it due to which there was a demand for electric cars in the market (Forbes, 2016). Further, Tesla also conducted interviews with groups of moms and women of different ages to take their opinion about electric cars (Forbes, 2016).
Thus, from the research, the company developed its marketing strategies and launched the product Model X especially for women (Forbes, 2016). The model was designed by considering the core selling points including safety, large space for kids and a third row. The engineers of the company incorporated all of this into the car design and manufacturing process. Another feature that was inferred from the research was that the female generally prefer to have a beautiful car along with ease for their children (Forbes, 2016).
Thus, the company strategically used market research data to develop an effective product for the female.
Competition in a market arises when there are several players offering similar product or services to a large number of consumers. The players compete with each other in order to acquire a larger market share of the market and increase their sales revenue (Economics Online, 2017). The players could compete on the basis of prices, marketing, strategies and attributes of products to attract a greater share of target audience (Lin, 2016).
Coca Cola is one of the largest producers of cold drinks with its huge network of sales and distribution around the world. The company has established its unique brand identity through its quality products and strong global recognition. Coca cola has its huge fan following that is a result of its customer loyalty (Lin, 2016). The main competitor of Coca Cola is Pepsi that is a thorn in the flesh for the company. Coca cola would have become the leading soft drink company around the world without Pepsi.
The presence of Pepsi has brought significant changes in the marketing strategies of Coca Cola company. When Pepsi reduced its prices in the market of Australia, Coca cola also reduced the prices in order to maintain its position in the supermarket’s shelf. Coca cola has to incur a huge loss in order to carry out this campaign and retain its market position (Lin, 2016). The advertisements launched by Pepsi also influence the marketing strategies of Coca cola (Lin, 2016). Coca cola responds with complete maturity to the ads of the Pepsi in order to retain its position in the minds of the consumers. Thus, Coca Cola has to invest a huge amount of money to compete with Pepsi through huge advertising and marketing strategies. Coca cola has increased its advertising budget amount in order to stay in competition with the Pepsi (Lin, 2016).
PESTEL analysis helps to determine the political, economic, social, technological, environmental and legal aspects of a country that would facilitate the growth of the product and the company. Samsung introduced its latest product Galaxy S8 after an extensive PESTEL analysis of the market in order to acquire maximum returns from the market.
Political Factors
The political factors include stable political conditions, country relations and the support of government. Overall Samsung has received favorable response from the market of US, Australia, Europe and developing nations of Asia (Walters, 2017). The company faced some issues due to volatility of Latin American countries that affect the operations of the company.
Economic Factors
Samsung Galaxy S8 has captured the market in a short span of time in the developing nations but faced some issues in developed nations due to low purchasing power of the customers. Korea’s strong currency also affected the revenue of the product.
Social Factors
The market has witnessed rising popularity of electronic and mobile devices among the consumers because of changing and emerging technology. The main challenge that the company faces is the frequent changes in the demands of the consumers. Samsung has very well tailored its product to suit the needs of almost every consumer around the world (Walters, 2017).
Technological Factors
Samsung is one of the most innovative companies that stays ahead of its competitors and makes optimum use of technology to offer the latest products to the customers. Samsung has produced amazing software and applications by effectively blending the market demand and technology in a single product Galaxy S8 (Walters, 2017).
Legal Factors
Samsung has to face numerous issues regarding Copyrights and patents. The company also faced challenges regarding wireless communication regulations and had to adhere to the laws and regulations pertaining to electronic device safety around the globe.
Environmental Factors
Samsung has always considered the laws and regulations of the environment and has deployed processes that do not pollute the environment.
SWOT analysis is used by the companies to determine their strengths, weaknesses, opportunities and threats to develop a marketing plan (Lamb, Hair and McDaniel, 2008). Woolworths is one of the Australian retail based firm that consistently enhance its strategies in order to retain its market position.
Strengths
Woolworths occupies the largest market share of Australia and is the pioneer firm to introduce the concept of retail chain (Greenblat, 2017). The retail chain has established its brand name and unique identity through its quality products and services.
Weaknesses
Woolworths is one of the oldest retail companies but does not have a global presence when compared to its competitors. The retail chain also has not been successfully able to develop a sustainable unique selling proposition that questions its credibility and market positioning (Berry, 2016). The company delayed to enter online market due to which it has to face tough competition.
Opportunities
Woolworths could expand its business by exploring new markets and establish its global presence. It could deploy franchise model and joint venture strategy in the beginning in order to penetrate deeper in the market.
Threats
The cost of food material and other products has witnessed an increase that could affect the profitability of the firm. The ongoing recession has also influenced the activities of the organization. There is an intense pressure in the market from Aldi and Coles that is again affecting the market share of the company (Berry, 2016).
From the SWOT analysis, the company has explored its opportunities by entering the international market of UK through marketing mix element.
Product: Woolworths introduced its quality services that ensure freshness of food and high product quality (The Conversation, 2017).
Price: Woolworths has deployed economical pricing strategy in order to capture the market (The Conversation, 2017).
Promotion: Woolworths offered discount offers to attract large number of audience.
Place: Woolworths opened its stores in the main market area in order to attract the audience.
Segmentation is the process of dividing the entire market into smaller segments to determine segment for the company (Lamb, Hair and McDaniel, 2008). Segmentation could be done on the basis of demographics, geography, lifestyle and psychology of the customers. The different segments could include youngsters, executives, professionals, adults, female, housewives, unemployed and college students (Elliott, Thiele and Waller, 2014). After segmenting, a particular group of people called target market is targeted by the industry through strategic marketing and advertising. Positioning is influencing the minds of consumers through effective marketing strategies (Elliott, Thiele and Waller, 2014). Retail industry is one of the largest industries of Australia that targets a large group of segment. Around 70%-90% of the consumers prefer to shop their groceries and other household material from the retail chains because of the availability of a wide range of products (Greenblat, 2017). The target customers of retail industry include housewives, females, adults and middle aged people. The customers are attracted towards the retail chains because of low priced products and quality services (Greenblat, 2017). Thus, the retail industry has very well identified its target group from which it can increase its sales revenue and profitability.
Further, the strategic positioning involves offering low priced product along with quality services, discounts and special offers during festive season also excite the customers to shop from retail stores. The customers are also promised fresh food products and customized services such as home delivery, app based shopping and other unique services (Greenblat, 2017). The consumers feel elated and experience a unique shopping experience with the retail stores that compels them to shop for next time and become a loyal customer. Thus, the industry has strategically positioned itself as a low cost brand that offers quality services along with a unique experience to its consumers.
Brand management is one of the most crucial elements of marketing that has occupied the top most concern for the leaders of the companies. A brand has to consistently evolve itself in order maintain its sustainability by meeting the customer demands.
Apple is one of the examples of successful brand management around the world. The brand has very well utilized and internalized the concept of perceived value due to which the consumers always assess the benefits of its products of much higher value as compared to their prices. The brand has built itself by connecting with the consumers through their emotions that they experience while using the Apple’s products (Bajarin, 2016). The customers never forget a brand with which they have had a great experience and Apple has very well internalize this process through its highly innovative and technologically advanced products. Another major reason for Apple’s success is its risk taking ability and targeting the emerging market through which it became a pioneer and leader in the electronics market (Scheidies, 2017).
Nokia is a Finnish multinational corporation that demonstrates the example of failed brand. Nokia might have evolved as successful brand but failed miserably because of its ineffective marketing strategies. The major reason for Nokia’a failure was Nokia did not deploy appropriate marketing strategies and projected itself more like an engineering company in the market (Huy, 2016). The company could not touch the chord of the consumers through its products and services. The company was rather more focused to build hardware devices instead of satisfying the needs of the consumers. Nokia always underestimated the significance of software in a mobile set due to which it was unable to adapt itself with the transitioning business environment (Surowiecki, 2016). Nokia never adapted the latest operating system and insisted on its hardware design. Another blunder of Nokia was its inability to analyze its competition that it faced from Apple and Samsung.
Elliott, G., Thiele, S.R., and Waller, D. (2014). Marketing. Australia: John Wiley & Sons.
Forbes. (2016). Tesla's Unique Position In The Car Market Is One Of Its Biggest Strengths. Forbes. Available at: https://www.forbes.com/sites/greatspeculations/2015/07/02/teslas-unique-position-in-the-car-market-is-one-of-its-biggest-strengths/#427a537e3ad7 [Accessed Online 4 May 2017].
Greenblat, E. (2017). Woolworths’ performance faces market scrutiny. The Australian. Available at: https://www.theaustralian.com.au/business/companies/woolworths-performance-faces-market-scrutiny/news-story/a642bd3a7ca2ed4344fc71a2f719d788 [Accessed Online 4 May 2017].Huy, Q. (2016). Who Killed Nokia? Nokia Did. Insead Knowledge. Available at: https://knowledge.insead.edu/strategy/who-killed-nokia-nokia-did-4268 [Accessed Online 4 May 2017].
Lamb, C.W., Hair, J.F., and McDaniel, C. (2008). Essential of Marketing. Cengage Learning.
Lin, H. (2016).Coca-cola vs. Pepsi: The Economics behind Coke’s Dominance. Essa. Available at: https://economicstudents.com/2012/10/coca-cola-vs-pepsi-the-economics-behind-cokes-dominance/ [Accessed Online 4 May 2017].Surowiecki, J. (2016). Where Nokia Went Wrong. New Yorker. Available at: https://www.newyorker.com/business/currency/where-nokia-went-wrong [Accessed Online 4 May 2017].
Tesla. (2017). Performance and safety refined. Tesla. Available at: https://www.tesla.com/en_AU/models [Accessed Online 4 May 2017].Market research is one of the vital components adopted by companies to understand the needs, beliefs and desires of the customers. Primary and secondary are the major types of research that includes market information, market segmentation, market trends, SWOT analysis and other tools that help to gain an insight of the market conditions (Elliott, Thiele and Waller, 2014).
Tesla is an American based automobile company that has very well positioned itself through its planned and extensive market research (Tesla, 2017). The company performed a strategic market research by using different tools such as PESTEL analysis, surveys and questionnaires and other methods to gather information from the market. Tesla used PESTEL analysis to assess the political, economic, social, legal, environmental and technological factors of the market to construe that the governments are promoting the production of environmental cars because of rising prices of fuel. The customers, on the other hand, have also begun to prefer the cars that protect the environment and do not pollute it due to which there was a demand for electric cars in the market (Forbes, 2016). Further, Tesla also conducted interviews with groups of moms and women of different ages to take their opinion about electric cars (Forbes, 2016).
Thus, from the research, the company developed its marketing strategies and launched the product Model X especially for women (Forbes, 2016). The model was designed by considering the core selling points including safety, large space for kids and a third row. The engineers of the company incorporated all of this into the car design and manufacturing process. Another feature that was inferred from the research was that the female generally prefer to have a beautiful car along with ease for their children (Forbes, 2016).
Thus, the company strategically used market research data to develop an effective product for the female.
Competition in a market arises when there are several players offering similar product or services to a large number of consumers. The players compete with each other in order to acquire a larger market share of the market and increase their sales revenue (Economics Online, 2017). The players could compete on the basis of prices, marketing, strategies and attributes of products to attract a greater share of target audience (Lin, 2016).
Coca Cola is one of the largest producers of cold drinks with its huge network of sales and distribution around the world. The company has established its unique brand identity through its quality products and strong global recognition. Coca cola has its huge fan following that is a result of its customer loyalty (Lin, 2016). The main competitor of Coca Cola is Pepsi that is a thorn in the flesh for the company. Coca cola would have become the leading soft drink company around the world without Pepsi.
The presence of Pepsi has brought significant changes in the marketing strategies of Coca Cola company. When Pepsi reduced its prices in the market of Australia, Coca cola also reduced the prices in order to maintain its position in the supermarket’s shelf. Coca cola has to incur a huge loss in order to carry out this campaign and retain its market position (Lin, 2016). The advertisements launched by Pepsi also influence the marketing strategies of Coca cola (Lin, 2016). Coca cola responds with complete maturity to the ads of the Pepsi in order to retain its position in the minds of the consumers. Thus, Coca Cola has to invest a huge amount of money to compete with Pepsi through huge advertising and marketing strategies. Coca cola has increased its advertising budget amount in order to stay in competition with the Pepsi (Lin, 2016).
PESTEL analysis helps to determine the political, economic, social, technological, environmental and legal aspects of a country that would facilitate the growth of the product and the company. Samsung introduced its latest product Galaxy S8 after an extensive PESTEL analysis of the market in order to acquire maximum returns from the market.
Political Factors
The political factors include stable political conditions, country relations and the support of government. Overall Samsung has received favorable response from the market of US, Australia, Europe and developing nations of Asia (Walters, 2017). The company faced some issues due to volatility of Latin American countries that affect the operations of the company.
Economic Factors
Samsung Galaxy S8 has captured the market in a short span of time in the developing nations but faced some issues in developed nations due to low purchasing power of the customers. Korea’s strong currency also affected the revenue of the product.
Social Factors
The market has witnessed rising popularity of electronic and mobile devices among the consumers because of changing and emerging technology. The main challenge that the company faces is the frequent changes in the demands of the consumers. Samsung has very well tailored its product to suit the needs of almost every consumer around the world (Walters, 2017).
Technological Factors
Samsung is one of the most innovative companies that stays ahead of its competitors and makes optimum use of technology to offer the latest products to the customers. Samsung has produced amazing software and applications by effectively blending the market demand and technology in a single product Galaxy S8 (Walters, 2017).
Legal Factors
Samsung has to face numerous issues regarding Copyrights and patents. The company also faced challenges regarding wireless communication regulations and had to adhere to the laws and regulations pertaining to electronic device safety around the globe.
Environmental Factors
Samsung has always considered the laws and regulations of the environment and has deployed processes that do not pollute the environment.
SWOT analysis is used by the companies to determine their strengths, weaknesses, opportunities and threats to develop a marketing plan (Lamb, Hair and McDaniel, 2008). Woolworths is one of the Australian retail based firm that consistently enhance its strategies in order to retain its market position.
Strengths
Woolworths occupies the largest market share of Australia and is the pioneer firm to introduce the concept of retail chain (Greenblat, 2017). The retail chain has established its brand name and unique identity through its quality products and services.
Weaknesses
Woolworths is one of the oldest retail companies but does not have a global presence when compared to its competitors. The retail chain also has not been successfully able to develop a sustainable unique selling proposition that questions its credibility and market positioning (Berry, 2016). The company delayed to enter online market due to which it has to face tough competition.
Opportunities
Woolworths could expand its business by exploring new markets and establish its global presence. It could deploy franchise model and joint venture strategy in the beginning in order to penetrate deeper in the market.
Threats
The cost of food material and other products has witnessed an increase that could affect the profitability of the firm. The ongoing recession has also influenced the activities of the organization. There is an intense pressure in the market from Aldi and Coles that is again affecting the market share of the company (Berry, 2016).
From the SWOT analysis, the company has explored its opportunities by entering the international market of UK through marketing mix element.
Product: Woolworths introduced its quality services that ensure freshness of food and high product quality (The Conversation, 2017).
Price: Woolworths has deployed economical pricing strategy in order to capture the market (The Conversation, 2017).
Promotion: Woolworths offered discount offers to attract large number of audience.
Place: Woolworths opened its stores in the main market area in order to attract the audience.
Segmentation is the process of dividing the entire market into smaller segments to determine segment for the company (Lamb, Hair and McDaniel, 2008). Segmentation could be done on the basis of demographics, geography, lifestyle and psychology of the customers. The different segments could include youngsters, executives, professionals, adults, female, housewives, unemployed and college students (Elliott, Thiele and Waller, 2014). After segmenting, a particular group of people called target market is targeted by the industry through strategic marketing and advertising. Positioning is influencing the minds of consumers through effective marketing strategies (Elliott, Thiele and Waller, 2014). Retail industry is one of the largest industries of Australia that targets a large group of segment. Around 70%-90% of the consumers prefer to shop their groceries and other household material from the retail chains because of the availability of a wide range of products (Greenblat, 2017). The target customers of retail industry include housewives, females, adults and middle aged people. The customers are attracted towards the retail chains because of low priced products and quality services (Greenblat, 2017). Thus, the retail industry has very well identified its target group from which it can increase its sales revenue and profitability.
Further, the strategic positioning involves offering low priced product along with quality services, discounts and special offers during festive season also excite the customers to shop from retail stores. The customers are also promised fresh food products and customized services such as home delivery, app based shopping and other unique services (Greenblat, 2017). The consumers feel elated and experience a unique shopping experience with the retail stores that compels them to shop for next time and become a loyal customer. Thus, the industry has strategically positioned itself as a low cost brand that offers quality services along with a unique experience to its consumers.
Brand management is one of the most crucial elements of marketing that has occupied the top most concern for the leaders of the companies. A brand has to consistently evolve itself in order maintain its sustainability by meeting the customer demands.
Apple is one of the examples of successful brand management around the world. The brand has very well utilized and internalized the concept of perceived value due to which the consumers always assess the benefits of its products of much higher value as compared to their prices. The brand has built itself by connecting with the consumers through their emotions that they experience while using the Apple’s products (Bajarin, 2016). The customers never forget a brand with which they have had a great experience and Apple has very well internalize this process through its highly innovative and technologically advanced products. Another major reason for Apple’s success is its risk taking ability and targeting the emerging market through which it became a pioneer and leader in the electronics market (Scheidies, 2017).
Nokia is a Finnish multinational corporation that demonstrates the example of failed brand. Nokia might have evolved as successful brand but failed miserably because of its ineffective marketing strategies. The major reason for Nokia’a failure was Nokia did not deploy appropriate marketing strategies and projected itself more like an engineering company in the market (Huy, 2016). The company could not touch the chord of the consumers through its products and services. The company was rather more focused to build hardware devices instead of satisfying the needs of the consumers. Nokia always underestimated the significance of software in a mobile set due to which it was unable to adapt itself with the transitioning business environment (Surowiecki, 2016). Nokia never adapted the latest operating system and insisted on its hardware design. Another blunder of Nokia was its inability to analyze its competition that it faced from Apple and Samsung.
Elliott, G., Thiele, S.R., and Waller, D. (2014). Marketing. Australia: John Wiley & Sons.
Forbes. (2016). Tesla's Unique Position In The Car Market Is One Of Its Biggest Strengths. Forbes. Available at: https://www.forbes.com/sites/greatspeculations/2015/07/02/teslas-unique-position-in-the-car-market-is-one-of-its-biggest-strengths/#427a537e3ad7 [Accessed Online 4 May 2017].
Greenblat, E. (2017). Woolworths’ performance faces market scrutiny. The Australian. Available at: https://www.theaustralian.com.au/business/companies/woolworths-performance-faces-market-scrutiny/news-story/a642bd3a7ca2ed4344fc71a2f719d788 [Accessed Online 4 May 2017].Huy, Q. (2016). Who Killed Nokia? Nokia Did. Insead Knowledge. Available at: https://knowledge.insead.edu/strategy/who-killed-nokia-nokia-did-4268 [Accessed Online 4 May 2017].
Lamb, C.W., Hair, J.F., and McDaniel, C. (2008). Essential of Marketing. Cengage Learning.
Lin, H. (2016).Coca-cola vs. Pepsi: The Economics behind Coke’s Dominance. Essa. Available at: https://economicstudents.com/2012/10/coca-cola-vs-pepsi-the-economics-behind-cokes-dominance/ [Accessed Online 4 May 2017].Surowiecki, J. (2016). Where Nokia Went Wrong. New Yorker. Available at: https://www.newyorker.com/business/currency/where-nokia-went-wrong [Accessed Online 4 May 2017].
Tesla. (2017). Performance and safety refined. Tesla. Available at: https://www.tesla.com/en_AU/models [Accessed Online 4 May 2017].To export a reference to this article please select a referencing stye below:
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