Key Decision: Develop a brand strategy to increase fantastik’s sales and maintain its leadership position in the increasingly competitive all-purpose cleaner market.
Problem/Opportunity: fantastik has limited financial resources to promote and develop its brand. Also, other heavy price discounting and new higher-priced cleaning products have threatened fantastik’s market leading position. Thus, fantastik needs to lower its retail price or innovate product categories to attract and maintain customers.
Stakeholders: Johnson family benefit from the profits earned and success of the business. Customers need the strong cleaning function provided by the cleaners. Employees need a stable and safe working environment and expected salaries.
Analysis Internal: fantastik has leading brand equity in industry and strong social responsibility that commit to communities and the environment, thus customers who pursue green lifestyle could be loyal to fantastic. Moreover, fantastik’s retail
...price $3. 9 is relatively high compared with its competitors, thus it may lose customers who are price sensitive.
External: Consumers are moving towards environmentally friendly products, it gives fantastik a good opportunity and competitive advantage to compete with other competitors.
Consumer Analysis: The target market is women aged from 25 to 49 who are responsible for the cleanness at home and has upper household income. They are concerned about quality of life, thus they prefer to purchase product with high quality.
Competitive Analysis: The competitors are other all-purpose cleaners such as Lysol, Easy Off Bam, Mr. Clean, Vim, Hertel and private label. Those competitors offer lower retail price than fantastik and have strong cleaning function. Especially, private label products have the advantage of high margin for retailer and good shelf space.
Decision criteria:
-
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justify;">Maintain competitive market share
Alternatives:
- Develop new form of product and consistent with environmental responsibility.
- Reduce retail price to remain competitive in the market.
- Develop new scent of fantastik. It will cost too much to do market research and test and it’s easy to be copied by competitors.
Decision: fantastik should develop new form of product and be consistent with environmental responsibility to attract more customers and improve household penetration, thus it can extend its product life cycle.
Marketing Strategy: Target women aged from 25 to 49 who are responsible to do the cleanness of home and position high quality and functional benefit of product. Marketing Mix: Produce higher quality and new function product and commit to environment responsibility to earn brand equity from customers, and use higher retail price to indicate its high quality and make profit through high margin in the beginning.
Moreover, company should use personal selling, product show and shelf advertising as promotion strategy. Finally, company can choose convenience stores nearby community as distribution centres in addition to major grocery, drug and mass merchandisers.
Expected Results: fantastik can increase its dollar share by 4% in 2007 and keep its market leading position through implementing the marketing strategy.
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