Sunday, November 3, 2019

Marketing Essay Example | Topics and Well Written Essays - 500 words - 14

Marketing - Essay Example Approximately 25% are sold through salons and the remainder through major retailers. Manufactures can open a chain of salons, which utilize and market their line exclusively, and the consumers are not a focused group. Barriers To Entry: There are few barriers to entry or exit for this product. An initial approval by the FDA is easily accomplished by using pre-approved materials in approved quantities. Exit from the market is not hindered, as assets would be reusable on another product line. Threat of Substitutes: The product may be threatened by a fashion move away from straight hair. This is partially facilitated in a recessed economy as less money is spent on hair care products and the consumer is likely to accept curly hair. Rivalry: There is an intense rivalry in the hair care sector. There are a large number of suppliers selling in a slow growth sector. Most of the products are very similar and are set off only by brand recognition. Customers are free to choose among many brands and the limited market for hair straighteners is not conducive to long term concentrated ad campaigns. There are also low risks involved with abandoning a product line. Production lines and equipment are generic to many products. Strengths: The major strength is that the product works in a matter of minutes, which is faster than our competitors. We also have an approved product and the experience to take it to market. At scale, it can be produced it at a competitive price. Weaknesses: Our major weakness is a lack of brand recognition. This will make it difficult to penetrate the lucrative salon market. We are also faced with a situation that makes it necessary to ramp up sales quickly while having limited advertising opportunities. Exploiting the speed of the product may create an attraction for salons and customers. Opportunities: There is the opportunity to exploit the unique speed at which the product works. This could develop

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