Shearings Holiday Effective Marketing Case Study
Shearings Holiday Effective Marketing
A mass market is a unsegmented market where products with mass appeal are sold e.g baked beans.
Yes I do agree with Shearings decision to move into the mass market for holiday services. The first reason why I agree with their decision is that quite simply they will be appealing to more potential customers although this could cause their previous market of over 55 to not like there service or maybe feel alienated it will appeal to the majority of customers this in theory should cause their sales to increase and that will result in increased profit and they should be able to cope with the sudden increase in customers because they have recently increased the amount of hotels they own this will enable them to appeal to the mass market while maintaining good customer satisfaction which will lead to repeat purchases and a good reputation which is vital when trying to appeal to a mass market.
Another reason why I agree with their decision to move is that at the moment they are not getting as much profit as they forecasted so clearly operating in a Niche market is not working so it makes sense to move into a mass market and increase their sales which will increase their sales providing their costs do not increase by to much when they are expanding to accommodate all these new customers.
It could be argued that it is not a good idea for Shearings to try and appeal to a mass market and move out of the niche market. This is because they were getting a steady profit operating in a niche market so it is a bit of risk moving into a market they are unfamiliar with which could be a huge failure because they are spending lots of money trying to make it work like the £2 million on advertising and the further £35 million they spent on expanding to accommodate the new customers and if it doesn’t work they are left with a huge cash outflow and no where near enough inflows to cover it furthermore trying to appeal to the mass market
A mass market is a unsegmented market where products with mass appeal are sold e.g baked beans.
Yes I do agree with Shearings decision to move into the mass market for holiday services. The first reason why I agree with their decision is that quite simply they will be appealing to more potential customers although this could cause their previous market of over 55 to not like there service or maybe feel alienated it will appeal to the majority of customers this in theory should cause their sales to increase and that will result in increased profit and they should be able to cope with the sudden increase in customers because they have recently increased the amount of hotels they own this will enable them to appeal to the mass market while maintaining good customer satisfaction which will lead to repeat purchases and a good reputation which is vital when trying to appeal to a mass market.
Another reason why I agree with their decision to move is that at the moment they are not getting as much profit as they forecasted so clearly operating in a Niche market is not working so it makes sense to move into a mass market and increase their sales which will increase their sales providing their costs do not increase by to much when they are expanding to accommodate all these new customers.
It could be argued that it is not a good idea for Shearings to try and appeal to a mass market and move out of the niche market. This is because they were getting a steady profit operating in a niche market so it is a bit of risk moving into a market they are unfamiliar with which could be a huge failure because they are spending lots of money trying to make it work like the £2 million on advertising and the further £35 million they spent on expanding to accommodate the new customers and if it doesn’t work they are left with a huge cash outflow and no where near enough inflows to cover it furthermore trying to appeal to the mass market