Once a company has an established flow of customer and is at the top of its growth curve

Company case

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Company case

1-Executive Summary:

Once a company has an established flow of customer and is at the top of its growth curve, they have to establish ways by which it can keep the leading position without burning out. One such company is pink, the company has had a successful operation since its inception, increased brand, and product line, maintained its customer base and has increased its geographical operations. However, what are the plans of the company with its new product line, pink, how, where and what are the prospects. The company sums all these is one sentence:” the Victoria brand is the power of the business” the company is having a field day with its marketing strategies, new products, teen,market, then there arises s scenario in which the company is accused of exploiting the seventh and tenth graders(teen and preteens)

2-Background & Statement of the

The use of teen pictures to market new products is attracting many attentions from marketing specialist, scholars as well as legal quarters. There are considerable dangers associated with the use of this marketing strategy, considering the fact that the company may lose its current customer base on market share just because of one wrong step. Corporate backlash may interfere with the company current positive projection and market capitalization. Gateway marketing strategy is also becoming a legal issue as there is a battle on the use of lingerie and teen to market entry level products.Problems Issues:

The problems include:

Leveling of market for the products mix

Increased regulation on the use of teens to market the company’s products

Increased competition from new market entrants

The use of childlike imagery to draw the interest of youth to their products

Sub problem

Sale to the young hip and fashionable customers is likely to be affected. Victoria secret pink, may not last long in the market if the current corporate backlash continues. While the current young, hip and fashionable market shares extremely attractive by all standards, it is likely to fall based on this. The only strategy the company can use is to move to a newer market that offers opportunities for growth while maintaining the current market but with modified business model. The company is also likely to experience improved Sales volume based on their 5 year projection; however, these are only achievable new business model.

3-SWOT

Strenthgs

The company has an established clothes line and presence in a number of markets and towns. One such place is the New York market. The company is also having an exceptionally stable capital base that it can use to operationalise its market sprees in other territories, for example, the company profitability index and is projected to make more than $10billion in five years time. The company also has a perfect market niche, which it can exploit to its advantage based on experience with the same customers. However, the newer products are also promising with the pink brand racking almost $900 on the first fiscal period.

Weaknesses

One of the main weaknesses the company has is the inability to produce new brands within a short time. The company has not diversified its products line in many years and is slow at diversifying. This also posits as a risk to the company. If the company can use its market, presence to influence the market position and roll out new product.

Threats

The company is at a terribly significant threat its current situation. There are many impending low suits, corporate fights, backlash based on its chosen marketing strategy. The use of teens to market its tweens is attracting many legal issues like the law suits for marketing tom the teen and preteens especially those eight graders. Other threats that the company is exposed to include the fact that the older market is leveling off, and the company has to be constantly in search of newer way of engaging these segments while and acquiring new customers. The retails segments are also likely to get competitive based on the industry attractiveness and market structure that allow free entry and exit into the market

Opportunities

The company has many opportunities from its new and old brands in the market. For example, the market segment for Teens products is quite large and unexploded. . The number of teenagers in the US is exceptionally high and increasing, these teens are wanted to spend more than $179billion, per annum. On the other hand, more than 60% of this population has jobs and money to spend. However, the amount of money spends on ten by parents and relatives are enormous. This money is spent on electronic, undergarments, pajama, toiletries as well as clothes. It is also beneficial to no6e that the company is also looking for growth, so the exploitation of this market segment offers the best opportunity form the company in its search from growth.

There is an extremely steep change in the status quo, as the clothes that were once worn indoor are becoming outdoor and casual, clothes like pajama, which the company deals in, is quickly becoming a casual wear and people are embracing it. Fashion has also changed, and the lounge wear is becoming more common with modern women. This also proposes a better market for the products of pinks

4-Analysis of Alternatives:

The main alternative that the company has is, to look determine a perfect balance of resources and revenue and use it to exploit the teen market before its get over competitive, introduce newel products and customer loyalty schemes to keep its current customer base. The company can also design a business model that it can implement in the new market that will provide both growth and profitability.

5-Recommendation(s):

Developing new business model targeting the youth past the teen, and preteen who are likely to make their own decision and not attract a lot of legal attention. Though this model is for the customer above 18 years, it will also attract the teen and the preteen as the model will appeal to both segments.

6-Implementation:

A perfect mix of marketing strategies and product placement promises a number of good than selling to the old customer, soon the company will have exhausted the market segment and the current target market and seek other markets, however, is the company ready to leverage its current buyer perception a loyalty to its advantage. The company has many opportunities in newer territories where backlash is not common and the market is in need of new product experience. The company can also leverage its positive image to drive sales and profits in new markets.