To win the biggest share of a market, every company strives to market its products through four strategies. A company may use an undifferentiating method (targets a mass-market), differentiated marketing, (several segments of the market), focus strategy (a specific segment of customers), and customized marketing (customers with unique needs) (Chand, 2013). Marketing research helps a company identify its target market, location, and what the market needs.
Lee’s Marketing Strategy- Research
Lee needs to identify its customers based on events such as birthdays, weddings, and graduations that may need cakes. Having full information on where to find such people is key. Also, establish the type of cakes his customers will need in terms of flavors.
“We are dedicated to making high quality and sweet tasty Cupcakes for you.”
Strengths and Weaknesses- How to identify
Lee can use his actual financial results. This includes profits and losses. For example, if the profits are more than the losses, then that is a strength. If the losses are more than profits, it is a weakness.
Another strategy is comparing the performance of the cake industry. If other companies are doing well in terms of sales than Lee, Lee will be able to know where to improve.
Opportunities and Weaknesses
Opportunities include more advanced technology for baking, more cake sharing events, and highly experienced employees at Lee. Weaknesses include stiff competition, a weak brand, and a small market share.
Competitors – Indirect & Direct
Lee’s competitors include Molly’s cupcakes, Sprinkles Chicago, Magnolia bakery, and American Girl Place Chicago Café.
Competitive Advantage & Sustainable Competitive Advantage
To gain a competitive advantage, Lee could make the cost of its products as low as possible, make its products exclusive, and identify a specific market with little competition. Sustainable competitive advantage is an asset or ability of a company that keeps it over competitors, and that cannot be duplicated (Faulkenberry, 2019). Lee could identify a unique cake flavor to attract customers.
Target Market Strategy
Lee will appeal to an entire market because anyone can use his products. The Target market includes people who hold events such as birthdays, weddings, children, and youths.
Marketing Objectives & SMART goals
To target the right market, gain a strong brand name, strengthen customer relationships, and improve product quality. One goal of Lee is to target 60% of Chicago’s cake market. Another goal is to have a good customer relationship through CRM platforms.
Market Strategies (all 4) & Market Penetration Strategy for Lee’s
Market penetration is an evaluation of how customers use a product rather than the total estimated market. Market development refers to maintaining the existing market instead of looking for a new one. Product development is the process of designing and conceptualizing a new product into the market while diversification is the application of investments as a risk management strategy. Lee can apply market penetration by evaluating what his customers need and meeting their needs. Through this, he will make more sales.
The size of Lee cakes will range from small to large for customers to choose according to their size needs. Colors will depend on the type of event and the customer’s wishes. For example, a birthday for a girl may need pink and white colors. Packaging will include; boxes, and disposable containers. The distribution will be across the Chicago region and delivered to customers. Pricing and promotion will depend on the size and number of cakes bought. For example, cakes over $10 will have a bonus of a small cake.
I will provide detailed and specific job descriptions to Lee employees. Consequently, they will fulfill their responsibilities for the better performance of the company.
It will be done by checking for changes in how sales campaigns are done. This way I will be able to track changes for sales and see which one works best. Also, talking to customers is crucial in evaluating. They will give responses to what they want and thus identify another opportunity.
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Employing different strategies to market a product/service is vital for any business. This gives the business room to expand in terms of sales and profits. Factors such as prices, unique market and products, and different segments of customers can be considered.
Chand, S. (2013, December 8). Target marketing: four generic target marketing strategies. Your Article Library. https://www.yourarticlelibrary.com/marketing/target-marketing-four-generic-target-marketing-strategies/13400
Faulkenberry, K. (2019, September 25). Sustainable competitive advantages: Definition, Types, & examples. Arbor Asset Allocation Model Portfolio (AAAMP) Value Blog. https://www.arborinvestmentplanner.com/sustainable-competitive-advantages-definition-types-examples/