Strategic marketing 2 Essay Example | Topics and Well Written Essays - 1750 words

Strategic marketing 2 - Essay Example Presently the company operates with 40 staffs. The company started competing with branded glass manufacturers from early 1990s and cemented their position as premier glass manufacturers in Singapore, Malaysia and Hong Kong. Sales growth for the company slowed down during the period of 2003 due to external factors. In the initial years Henrik Skagen used two types of marketing strategy to increase sales revenue. Henrik Skagen used trade shows to promote glass product and increase brand equity among customers. Internal sales force was used to explore retail channel sales. New generation of Skagen family have changed the traditional product strategy of the company in order to fillip the growth of the company. Sandra and Lars Skagenby extended product portfolio by including items such as reading sun-glasses, non-prescription reading glasses, sports goggles and glass cases. Marketing Overview Product Reading sun-glasses, Non-prescription reading glasses, Sports goggles and Glass cases. Th e company uses Nordic style of strong lines and bold colours in their offering. Price Retail price of reading glasses is between $35-$85 while retailer sells a pair of sunglasses at $35-$140 Place The company sells their product through distribution channel complemented with accessory shops, department stores and sports outlets Promotion The company uses trade shows and in store sales promotion to create awareness among customers Target Market Seventy percent of sales are contributed by consumers over the age group of 40 while sports products are targeted for young people Target Country Singapore (company owned retail shops), Malaysia & Hong Kong (franchise business model) Marketing Challenge The company wants to expand their business in South Asian Market and Vietnam has been selected for their future business expansion Financial Overview Sales Revenue (2011) $58.6m Operating Profit $5m Sales Revenue (Country & Product category wise) Singapore Malaysia Hong Kong Sunglasses $7.7m $1 2.4m $5.1m Spectacles $5.3m $11.7m $6.7m External Analysis Bright Eyes needs to conduct macro environment audit such as PESTLE of the country in order to explore business opportunities of the country (Elearn, 2012, p. 75). PESTLE PESTLE analysis helps companies to get a picture in terms of macro environmental perspective (Henry, 2008, pp. 51-56). Political CPV or Communist Party of Vietnam has recently changed their industrial policy and has taken progressive approach for industrial development. The government is also supporting foreign players to invest in the country hence Bright Eyes will get support from government to expand their business. Country trend suggests that CPV has not faced any major threat from opposition party in recent times hence from the view point of political stability the country is going strong. Economic The country is suffering from high inflation rate hence overall GDP growth is slow for Vietnam (Tucker, 2010, pp. 194-195). Foreign players are investing in developing industrial park in the country. Vietnam has attracted foreign players to invest $271m in industrial projects last year. Government has sanctioned nine FDI projects worth of $112bn for next three years (Pham, 2004, pp. 69-97). Economic situation of the country is positive for companies like