Impact Of Customers And Competitors On Your Decisions
Introduction-Impact Of Customers And Competitors On Your Decisions
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Effective business strategy is an important factor that enhances the sustainability of a company for long term aspects by proper analysis of their customer and competitors. This report is based on the impact of customers and competitors over the decision of the company, Target by analysis of different simulations related to the financial condition and productivity of the company. Moreover, this report also focused on the changes in the market that directly affect the company and its decision regarding success. In this report our chosen brand is TOPS & TONE.
Question 1: Details about customer
Brand awareness helps to drive the attention of customers by launching innovative products that create differences among other competitors and help to increase their sales and revenue. According to sources it can be seen that different types of customers are engaged in the business of target (Dellaert, 2019). They are explorers, shoppers, Profs, high earners and savers. The below chart represents information about the different customer segments that are engaged with different brands of Romeo present in the current market. In this report TOPS & TONES are the chosen company. During period 3, TOPS mainly focused over their 45% professional and 40% high earners customers. Due to appropriate expectations, companies have the ability to focus over their design and display to fulfil their requirement to enhance their sustainability in the market. On the other hand, TONES mainly focused on their shoppers and savers who do not have high demand related to their products and quality. These customers mainly prefer low cost material. TONES maintain minimum standards in their products to make them cheap and affordable for savers and shoppers. Most is a brand that mainly focuses on enhancing their customers' attention towards them and maintaining their brand awareness. According to Lock, Loop and Love, their rate of explorers are 65%, 68%, 50% respectively and shoppers are 59%, 51%, and 22% respectively which is lower than Most. Due to the innovative feature of Loop, they have a high rate of high earners segment of customers in their brands for their appropriate strategies regarding their customer's management which is an important factor for establishing a brand in a competitive market (Stratxsimulations.com, 2021).
Figure 1: Customer's Brand Awareness
(Source: Stratxsimulations.com, 2021)
According to period 0, it has been seen that TOPS and TONE have a lower rate of explorers that directly affect their rate of shopper which was relatively lower than period 8. Moreover, Loop provides low maintenance related to their customers by providing proper brand awareness towards their customers and failed to maintain their rate of Profs and high earners which decreased from 71% to 66%. Furthermore, due to providing innovative products related to their sonites it affects the cost of the products that increase their rate of explorer and shoppers from 60% to 68% and 50% to 51%. During Period 0, it can be seen that Move maintained the first position with 58% overall brand awareness with 60% explorer, 50% shoppers, 71% profs, 76% high earners and 46% savers that are relatively lower than the most in period 8. It can be said that customer segmentation is an important factor that enhances the market of business by maintaining proper branding strategies to increase the rate of exploration. Explorer will help to spread every detail about brands that help the shoppers to understand the innovative products of the company (Shahid et al, 2107). In Period 0, TOPS is a firm of life that provide 53% of explorer, 65% of shoppers and 49% of high earners which is relatively lower than the TONES that is 60% explorers, 50 % shoppers, 71% profs, 76% high earners and 46% savers. Due to appropriate branding and customer engagement approaches it helps to enhance the rate of explorer for loop that increase their higher engagement of earners with their brand rather than other competitors of the market.
Figure 2: Consumer segment size
(Source: Stratxsimulations.com, 2021)
In period 8, it can be seen from the above figure, rate of saver has increased related to period 0, and rate of explorer has reduced in extreme due to improper management of customers regarding period 0. The rate of shoppers has increased from 19% to 31% but the rate of high earners and Profs has decreased from 12% to 10% and 17% to 14% respectively (Cao et al, 2109).
Question 2: Details about competitors
Competitors are important factors that help to understand the gaps of a company by analysing the market and rate of consumers to others. This helps to provide innovative strategies related to branding and customer attraction towards their company by the implementation of new strategies to reduce the gaps. Moreover, competitors help to understand the implementation of innovation in products to drive the customers. Communication is another important factor that helps to convenience customers towards a particular brand to enhance their economic conditions. In this report, there are various brands like, Most, Move, Rock and Soft of Lock, Loop and love that are present in the market in period 2, it can be seen that TONE provides communication to enhance their economy by providing proper information related to enhancing their economy (Munawar, 2018). This is a poor quality of approach they provide towards their customers that directly affect their various segments of customers related to other competitors.
Figure 3: Market size by customer segments
(Source: Stratxsimulations.com, 2021)
Considering potential of these two consumer segments, the firm, TARGET has set its focus on these categories. Strategies of this firm may need to be altered considering its competitors’ high retail sales in this sonite market. The figure presented below displays retail sales of brands, where TOPS stands at a high position with sales of $121,898 followed by MOST with sales of $116,470, having value shares of 15.5% and 14.9% respectively.
In addition, TOPS does not provide any information to enhance their communication with customers that directly affect their shoppers and savers. In period 4, TONES changed their strategies to provide information related to their products by proper analysis features and display of their products that provide excellent information to their customers and enhance their productivity. In period 3 it can be seen that due to improper management related to customer segmentation and pricing strategy it directly affects the business profit. (Santoso, 2019).
Figure 3: Communication dimension and message quality
(Source: Stratxsimulations.com, 2021)
Figure 4: Commercial Team size
(Source: Stratxsimulations.com, 2021)
To enhance the branding strategies most of the brands use various speciality stores and online facilities to drive their customer's interest by Mass merch and through social media. The above data represents the different mediums that are used by various competitors of TOPS and TONE to enhance their market by engaging proper customers towards their brands (Ghafran and O'Sullivan, 2017).
Question 3: Financial condition of the company
“The Boston Consulting Group (BCG)” growth-share matrix is a tool that provides information related to the product and service of the company and helps the company make proper decisions related to their betterment aspects. Moreover, it helps to provide necessary information related to resources to implement new strategies to enhance the productivity of a company. This matrix has four factors that help to separate the companies according to their rate of production and revenue collection. The dogs refer to the company with low productivity and revenue growth; the cash cow refers to the companies with a low rate of growth but a relatively large market for their products (Ali et al, 2017). Star refers to the companies with a high rate of growth and investment towards business and can collect a high amount of revenue from their products and question refers to the business with a high growth rate with low expansion in the market.
In period 5, it can be seen that the value share of TOPS was 17.7% and retail sales were 125, 413 which is relatively high according to period 8 where their value share increased by 15.5% and retail sales became 121,898. Value share of TONE was 9.3% and retail share was 65, 558 which is relatively high regarding period 8 where value share increased by 10.7% and retail sales were 83,110.
It can be said that TOPS belongs to the star companies related to BCG growth matrix factors due to their high rate of growth and investment towards business that helps to sustain their brand for a long time in a competitive market and that help high amount of value shares and retail sales related to period 8. Moreover, TONES belongs to the dog factors due to their desired rate of revenue growth related to their competitive market. Furthermore, TOPS mainly focused over professional and high earner group that help enhancement of growth rate with time and changes in their retail sales along with the period from 5 to 8 (Stratxsimulations.com, 2021).
The above figure shows that with application of strategies, revenue of TOPS and TONES witness an increase of 58.7% and 41.3% respectively. Hence, these are not quite a bad situation, from where a little strategic push can ensure their sustainability in competitive simulation.
It can be said from the Financial report of the company that their revenue collection collectively increased by each period. It can be seen that in period 4 the rate of revenue growth was 61,941 which increased by 136,571 in periods 8. Their goods sold cost decreased by -40,210 from previous simulation. Cost related to marketing increased by 96,360 related to period 4 which is 29,394. It can be seen that their cost of the advertisement has decreased by -9,761 that affects their productivity and revenue growth related to previous years. Moreover, brands of companies also enhance the growth of revenue by enhancing their productivity through proper advertisement to drive the attention of customers towards their company.
The above chart exhibits SPI of “T”, which is the company. It depicts that after the first two periods, a decline is noticed in period 2 with 978.04, while after a significant surge in period 3, a gradual loss is observed in period 4. Hence, with proper analysis during this period, a continuous improvement from period 5 to 8 is ensured in market.
Question 4: Production of company
Ansoff’s matrix is a strategy based on the products and market of a company that provides information about the current position of the company. This matrix has four strategies that are “market penetration”, “market development”, “product development”, and “diversification”. These four strategies provide proper strategies to enhance productivity of a company by analysing their strengths and weaknesses. These four matrices help to provide better business strategies to the company to enhance their revenue growth by understanding their strength and weakness to prevent the threats and challenges that can affect their business.
According to this report, by analysing the different portfolios of the brands it can be seen that TONE and TOPS have a maintained portfolio that is a strength for them to enhance their revenue growth. According to marketing strategies of TONE, it can be seen that they provide low price products to the customers related to tops that work as their strength because customers mainly prefer low cost products to relatively high cost products that are provided by TOPS. Moreover, TONE invests a high amount related to TOPS in their marketing and advertising field to provide better information to the customers to enhance to drive the attention of customers towards them. Due to high expenditure related to the advertisement media of TONE. It became a strength for TONE and due to lack of investment over the advertisement it directly affected the business prospect of TOPS. According to the segmentation of customers, TONE provides 5% to their Explorers, 30% to their shoppers, 5% to their high earners and 60% to their saver and according to TOPS, their explorers are 5%, shoppers are 10%, Profs are 45% and high earners are 40%. Due to fewer prices of products it can be seen that the percentage of savers is quite high for TONE related to TOPS and for quality products Profs mainly preferred products of TOPS. Most of the customers that belong to the high earners and proof them mainly preferred quality products and the products with high price. This is a strength for TOPS to provide quality products with high prices to enhance the attention of high earners and Profs towards their brand. Moreover, TONE mainly focused over their innovative features that make them a position of 7 in market and TOPS focused over their battery of products that also stand in position of 7. TONE focused over their Display and TOPS focused over their Design (Stratxsimulations.com, 2021). These all factors are important and play a role as strength of relative brands and provide a high level of revenue growth for the company. Furthermore, to enhance the marketing and advertising to drive the attention of customers, TONE provides 55 specialty stores but TOPS provides a relatively large number of specialty stores to provide better services for products. TOPS provides 180 stores. In addition, TONE provides a relatively higher number of Mass merch that is 120 than TOPS, which is 70 to enhance the attention of customers for their products. Moreover, TONE provides a relatively low number of online stores in the market that is 55 and TOPS provides a relatively high amount that is 70% of online stores to attract their customers (Stratxsimulations.com, 2021).
According to above physical properties of products from the brand TOPS and TONE provide appropriate data regarding their features and their cost they have invested to provide innovative features to their customers to drag their attention and enhance their revenues growth. This data shows that for features of products TONE invest 18$ and TOPS invest 13$. For their design, battery, Display and power TONE invest 3$, 75$, 25$, 12$ respectively. According to TOPS, they invest 8$ fie design, 40$ for their display and 75$ for power. This data will show the strength and weakness of these two brands that help them to draw the attention of their customers and enhance their sustainability in a competitive market (Stratxsimulations.com, 2021).
Question 5: Market condition
Market analysis is an important factor that helps to understand the differences among other brands as well as it helps to provide information related to the competitors and their strategies to drive their customers' attention towards their brands. According to the company target, they have different brands in the market which contributes a high amount of revenue to their enhancement and expansion purpose of business. Competitions among brands help to get information about various challenges and strategies they implement for their betterment aspect.
Production- these brands enhance their strategies by providing new implementation in their products related to their features, design and battery etc. this features help to provide better quality product in the market and help to sustain a company for a long time in competitive market.
This above report shows data about the different features of various companies that contribute the revenue from their laughing year. According to data it can be seen that love laughed in the period 5 but they provide high featured products related to their design, battery, Display and power to produce innovative products for their customers by investigating high amounts over their production.
Pricing -Their base cost is 190$. TONE launched in period 0 and maintained their progress by providing proper products by investing a proper amount of cost over their products and their base cost is 88$ that is relatively lower than TOPS who contributes 201$ as their base cost is 38%that is relatively high from the other brands in this competitive market.
Pricing range for TONE remained at $245 till period 6 to retain cost leadership in the competitive sonite market. Nevertheless, since it has reduced its production costs, $250 is considered in accordance with competitors, such as MOST and ROCK.
TOPS has maintained cost leadership throughout periods from 1 to 8, as it has retained its price to $515 in period 8 as compared to competitors, such as ROLL and LOVE having $525 and $560 respectively.
Promotion - TONE and TOPS provide proper customer engagement through their proper communication related to their business.
Place - to enhance the customers from others segment company decided to take steps related to provide better products and information related to features of products.
Conclusion
Effective business strategies are important for the company to enhance their production by providing proper satisfaction to their customers and producing innovative features that help them to sustain in a competitive market for the long term. In this report, there are various brands that contribute their different rate of percentage related to their consumer segmentation, marketing strategies, proper analysis of competitors that help them to provide high amounts of revenue to the company and that help the company to sustainability for a long period of time. Moreover, this report provides a proper description related to the questions that arise in the analysis process of the company and their brands to understand their strengths and weaknesses to get proper strategies to reduce their impact on customers and competitors over the decision process of company.
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