Huddesfill (“the company”) is a UK based company engaged in the business of producing full range of sport shoes, such as basketball, soccer, badminton and tennis etc., which is the third largest market player in UK. The aim of this proposal is to identify the suitable marketing strategies for the business growth of Huddesfill in UK. 2.0Objective
Being the third largest sport shoes producer in UK, Huddesfill’s market share in UK was about 8% in 2005, so that, the objective of the marketing strategies is to increase the company’s market share in UK by 10% in order to catch up the market leader – Cantermony, which market share in UK was about 15% in 2005. 3.0 Target Audiences
The target audiences of Huddesfill can be divided into segments according to lifestyle and user status. Lifestyle segmentation is based upon the characteristics of psychological, so that, the target audiences of this segment are the people who are interested in sport. For the user status segmentation, the target audiences included non-users, ex-users, potential users, first-time users and regular users of Huddesfill’s products.
4.0 Marketing Strategies To Be Used
Marketing strategy indicating the specific target markets and the types of competitive advantages that are to be developed and exploited (Dibb wt al., 2001, p.656). It is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. It provides a framework to meet organization needs and customer wants in an integrative and innovative way.
Growth strategies – the Ansoff matrix will be used by Huddesfill since the objective is to increase their market share. The linkages between both products and markets were provided by the Ansoff matrix and it allows the company to consider ways to grow the business via existing and/or new products, in existing and/or new markets. The matrix consist four strategies: Market Penetration, Product Development, Market Development and Diversification.
Within the aforesaid four strategies, market penetration (existing markets, existing products) will be used by Huddesfill in the short run since it is the least risky way for a company to grow. In addition, product development (existing markets, new products) will be a crucial business development strategy for the company to stay competitive in the long run. 4.1 Market Penetration
Market penetration strategy is used to increase sales of existing products in existing markets. This strategy focus on persuading existing customers to use more of Huddesfill’s products and it can be achieved by gaining competitor’s customers (part of their market share) and/or attracting non-user to buy the company’s products.
Under this strategy, Huddesfill will used to demonstrate a high level of competitive force since the company will need to be price-competitive, promotionally competitive and execute a hard-hitting advertising campaign. 4.2 Product Development
Product development is an alternative growth strategy for Huddesfill. The company with a market for its current products might engage in a strategy of developing new products catering to the same market. Under this strategy, Huddesfill not only can gain new customers for their products if it creates new products for the existing market, but also attract existing customers in existing markets to new products.
This strategy plays an important role in attracting new customers, developing new markets and providing new opportunities, but the level of investment required is the main problem of product development. As a growth objective, the greatest strain on resources will be provided by this strategy.
In order to provide confidence in the marketplace, Huddesfill need to make use of their brand name and the heart of success of this strategy will rely on the good quality product together with high service levels and...