Pen product life cycle reached its peak and eventually started declining as the company was recognized in the world market, which brought the management led by James Peterson to reinvent the product. However, the CEO team failed to take advantage of the lapse in the market to outline further steps, yet they continued taking advantage of weak dollar and considered the differences between foreign currency exchanges as profits (Schaik, 2002). The use of Parker Pen brand name was important in marketing because it shaped the image of the product. However, in some markets, new brands came into existence, which affected the Parker Pan products. It was very unfortunate for the company to fail to reinvent the brand name. Since the company concentrated on differentiation in markets, Parker Pan missed the chance to reinvent the brand name,
PARKER PEN which led to certain complexities. The product policy of a company embraces all decisions relating to product development, manufacturing and distribution. Product policy always has influence on the selection of the manufacturing site. The product policy also affects the profit position as well as the cash flows into the company. However, in the given case, Parker Pen was affected because of poor product policy adapted by the company. A poor product policy affects the marketing policy of an institution, which results in the revenue increase. However, as the company failed to have a uniform product policy, Parker Pen experienced difficulties in selecting uniform distribution for all channels, physical distribution, pricing policy and promotional policy, which led to the company’s decline. Concerning the target segment, one must emphasize that Parker Pen targeted
almost all market segments, but the company management forgot to introduce products which would cover the market segments with middle and lower income levels, which gave the company’s competitors an opportunity to come up with inexpensive products and take over the market. For any product to succeed in the market, the target segment must be taken into account. Market targeting policy should embrace three basic activities shaping the marketing objectives, setting market targets and developing market mixes, according to Doyle (2006). The aforementioned activities should be reviewed periodically to exploit the existing opportunity for the business success. The company failed in setting its objectives to succeed in international markets, for Parker Pen did not review the market targeting policy. The failure occurred because the managerial of the enterprise did not differentiate the market, i.e., they did not take care of the low-income segment when outlining the strategy for selling expensive pens. The income differential, which was crucial for the company’s revenue rates, was by the Japanese manufacturer who took
over the market. Differentiated market products, as well as market plans and programs, are supposed to be developed for each segment of the company’s business. However, the new team failed to...