According Audit finding it is apparent that Singer has few issues with internally and externally. In terms of inner issues Singer's current strategy is been a crisis which brings about acquire very poor growth in 12 months 2010. Strategy evaluation will be beneficial to identify factors such as has the company produced or not? Is the revenue rate good or bad? How significant is your competition? Following portions will explain how Singer strategy should be improved to deliver competitive, impressive and customer concentrated value proposition.
Singer top management performs an important role in a formal planning process which gives birth to a strategy. The most notable management is associated with the senior management of an company while strategies are designed. The tactical planning process will involve four steps which were pointed out as below:
Source: Annual Article, 2010
Assumption: How the marketing strategy should be improved discussed only considering Audio & Video portion of Singer to provide a precise answer and due to the word count insurance policy.
The strategy of Singer is based on the Market Show and Cost Innovator marketing strategy. Currently Singer is the market leader in this consumer electronic industry in conditions of sales and income. Vocalist products have been advertised to the consumers who are able to be categorized under upper middle class to lower class sections by proceeding pursuing sub marketing strategies.
Outline of the Singer's current marketing strategy and its own issues identified have been described in the strategic audit and overview of the audit (Refer 2. 3) respectively. Pursuing will be the other issues which were discovered in their current issues which have been identified.
Marketing Communication: A substantial amount has been put in for communications however when set alongside the costs contrary to the returns, the achievements are unsatisfactory. Singer hasn't grasped and miscalculated the and new emergent marketing practices which were not within marketing blend. (e. g, Role of interpersonal advertising, viral marketing, etc). The super star (A Singer) they used for advertising didn't have charisma to mention the message since his behavior was controversial in several times.
Strategy Planning: Marketing emergent strategies never have been designed and considered by Vocalist and hence the corporation needs to anticipate the future environment changes when develop their marketing programs. Event of such a situation is dangerous thus fluctuations of marketplaces, new rules, guidelines and standards have to upset their prices and usual work. Strategy making process has been top down strategy where they have got skills and understanding of lower level employees which could have been better.
Erroneous Setting: Vocalist is been focusing on across all concentrate on segment alternatively than targeting area of interest segments where they are trying to put themselves as a price leader. But this distracts the attention of high end consumers given that they recognized it as a budget product where lacks quality and value. Although they sell budget Performer has been tried to position themselves as high quality suppliers which is not presumed by many consumers credited to regular quality issues in the electronic products and compared to superior qualities like durability, robustness, performance, cutting edge technology of the products from global players.
According to the Audit findings it's been determined there are few issues which diminish their current value proposition where Vocalist hasn't been able to distinguish their products of their competitors. With the evaluation of the existing online marketing strategy, it's identified that there are few gaps in today's online marketing strategy which need to be fulfilled in order to perform suggestions that are created for his or her current value proposition. To bring a more customer focused, impressive and competitive value proposition amendments should be carried out to their current online marketing strategy and sub strategies. Based on the following framework Performer should think about three factors mainly when expanding the strategy.
(Sims and Smith, 2003)
Singer must explain their basis (corporate and business main purpose) to boost their value proposition. As per the value chain analysis Singer has been suffering from few cost problems given that they sold their goods at lower price with the purpose of becoming the price and market head in the industry.
Source: Ansoff Matrix, 1980
Figure 4: Singer's Competitive StrategySinger must have to follow differentiation strategy for their Sound & Training video as a remedy for their cost issues. Differentiation occupies making Performer products or services different and more attractive from their opponents. You will find three main reasons for proposing this strategy as follow:
Almost everyone providing similar kind of products where low priced products are via gray markets. So it's not profitable if singer tries to stay as the cost head furthermore.
The value added by the uniqueness of the merchandise may allow the firm to demand a premium price for this. Additionally firm can get that the higher price will more than cover the extra costs incurred in offering the unique product.
It will reduce the bad image and notion in top end consumers brain and promote their products over large players like Sony, Samsung.
Source: Ansoff Matrix, 1957
Figure 5: Singer's Progress StrategyAudit finding shows a very gradual growth has been achieved in terms of sales and earnings in the Music & Video category. If Vocalist needs to enhance their value proposition and bring out more innovativeness and customer focused with their value proposition they need to pursue other options of progress strategies such as market development or new product development. Since they have a wide product profile (Refer Appendix II) Vocalist cannot stay into one expansion strategy. Presently penetration strategy is on the procedure and adaptation of new product development strategy gives following benefits where it complements with proposed common strategy because the differentiation always opt for innovation.
As per the audit finding Performer is being concentrating on all consumers without concentrating on a specific portion As a remedy for a new focus on consumer platform has been suggested where it's mostly worried regarding their lifestyles, who fall under higher/middle in their sociable category and income level. The age and behaviours of the consumers can be some few other crucial factors. Following will be the segments Singer should absorb catch the attention of consumers, as the sub segments also reveal common characteristic when buying Audio & video tutorial products.
According to Audit finding Performer has an enormous concern about the position of the products in market scheduled to quality issues and bad customer support. According to the selected differentiation and new product development technique for their Audio tracks & Training video products Singer positioning strategy should be positioned their product as a superior quality convenience product.
This will increase their customer focus towards their consumers giving more convenience and quality products at fair prices. Singer can articulate their product or company characteristics such as quality, technology, availability (enable consumers to buy products through the web site at any give time without accessing showrooms) of the products and company stableness and image of the company.
According to Philip Kotler 9 price-quality strategies Vocalist should select QUALITY VALUE section which s known as market established prices. Prices can be arranged after accurate analysis of the marketplace and consumer requirements. According to there new value proposition to mention market led characteristics this costing method will be very appropriate.
Source: Kotler 9 price-Quality Strategies
Singer advertisement budgets are sufficient but Performer has to select proper mediums to market their products. Singer can use rising mediums such as mobile marketing, email marketing and social advertising other than traditional mediums for Performer to market their new product and services.
A well known super superstar like Lasith Malina (Famous Cricketer) who have a good charisma within the united states may be used to promote their corporate and business brand where people will start consider him and change their perceptions and result in buying products.
Even though there will deal with advancement and differentiation Vocalist has to revise their market access strategy from "Laggard Access" to "First-In" strategy. Singer is being always an imitator in technological advancements (e. g. , overdue benefits of LED 3D TV)
Singer has to revitalize their strategy making process where they must have a bottom level up strategy since most of the successful and impressive companies pursuing particular approach. This process will enable Singer management to find innovative and contemporary ideas that can be included in their marketing activities. Singer should have an activity to respond rising situation by pursuing an growing strategy making process rather than deliberate strategy making process
Source: Designed from H. Mintzberg and A. McGugh, Administrative ScienceQuarterly, 1985.
These suggested strategies increase customer trust, satisfaction and devotion scheduled to quality and reliable products since it'll match their exact need/need. Repositioning their products as a convenience product by much better customer service, distribution, communication will create a close romance, image and degree of the customer emphasis.
Introduction of new products and services will improve their competitiveness and value proposition when you are categorised as ground breaking high-tech company. (e. g, 3M)
Differentiation with their products in conditions of quality, price, features, and services will permit Singer to deliver a far more competitive value proposition. First-In market access strategy will add more demand to become very competitive in the market.
Following diagram will demonstrate broadly how this new online marketing strategy will increase the stakeholder value in conditions of customers, shareholders, suppliers and customers
By following above mentioned supportive strategies will help to enhance the overall online marketing strategy which will be competent to deliver impressive, competitive and customer targeted value proposition. To follow an innovative and differentiation online marketing strategy Singer must rethink about how they are going to do these amendments because inner development, external development or some jv would require. Development of a strategy will not give proper results as company expected. Monitoring and controlling should be there to judge their strategies and check the association with corporate goals and objectives. How Vocalist should execute those strategies with a control will be described in future chapters.