Memo 3 Market Initiative & Action Plan (MKTG 475)

Memo 3 Market Initiative & Action Plan (MKTG 475) - TO:...

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TO: Russ Merz, Firm A CEO CC: FROM: RE: October 23, 2011 There are five market segments within the SONITE industry, three of which our firm has developed a specific product or brand for that segment. Firm A has the SAKE brand that targets the Hi- Earners; however, Professionals seem to prefer and purchase this brand too. We have the SAFE brand, which targets the Buffs segment. Then we also have the SABY brand, which was recently developed specifically for the Others segment. For this memo, we will focus on the SABY brand that targets the Others segment. Fortunately for Firm A, developing the SABY brand for the Others segment looks to be most profitable. SABY has been on the market for two periods and each period it has grown. From utilizing our market research we were able to develop a brand that the Others segment desires; therefore, SABY started in a very high competitive position with a very high market attractiveness! The initiatives for Firm A, in regards to our SABY band, are to invest in the brand in order to protect our position and to maximize our potential growth in this market segment. Below you will find a bulleted list describing each initiative and their importance: Increase Advertising for the SABY Brand. SABY is a new brand within the SONITE market and it is developed specifically for the Others target segment; therefore, we need to generate awareness in both the SONITE market and the Others target segment about the fact that the SABY brand exists. Not only that the brand exists, but that it was developed specifically for the Others segment, who demanded non-expensive, low performance, products with average convenience. It is important for Firm A to increase our advertising for the SABY brand because it will generate awareness, which will then lead to purchase intentions. Currently, our brand awareness for SABY is 24.1% and our purchase intentions are 20.4%. Most of our customers who are aware of the SABY brand intend on buying the brand! Once we increase our purchase intentions this will lead to an increase in unit sales; therefore, increasing our revenues and gaining more market share against our competitors within the Others segment. Increase Sales Force. When we launched the SABY brand, Firm A was unsure of how well the brand will take. We estimated on how many sales representatives to incorporate within each distribution channel – specialty stores, department stores, and mass merchandise stores. Firm A added sales representatives when the SABY brand was launched, but did not
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This note was uploaded on 01/29/2012 for the course MKTG 475 taught by Professor Russmerz during the Fall '11 term at Eastern Michigan University.

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Memo 3 Market Initiative & Action Plan (MKTG 475) - TO:...

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