•What are our existing cost and profit structure and points of differentiation? The existing cost of Firm Malibu is high due to high promotion and advertisement expenditures for its new brands. It includes a huge amount that is to be spent on advertising and promotion of the new brand. The market research analysis reveals that the company needs to spend around $ 4,300,000 initially on advertising the product in the market. The profit structure of the company is to earn revenues of $ 47,659,000 in the third period. The point of differentiation is that Firm Malibu requires spending up to 50 percent amount in the first period and 40 percent in the second period on advertising and promotion. Furthermore, market segmentation shows that it will spend $ 1,762,000 on commercial team and $ 451,000 on market studies in all periods (Ferrell & Hartline, 2012).
•How well is our portfolio positioned for the future?
The portfolio for the future is well positioned as all the planning is done to execute the task of promoting its brands “MOST” and “MOVE”. The company will target 1,500-2,500 platforms for introducing its product. Substantial targeted customers would be shoppers who will distribute the product directly to the final consumers. Firm Malibu will spread the product in the market by contracting with distributors and shoppers during the first period. The inventory management of the company is well designed to fulfill the demand of the product in the market. The company has a variety of resources that can be utilized to counter critical situation in the future. The products have the potential to capture large size market as indicated by the research and development team. Firm Malibu will be profitable after the successful distribution of the products in the market (Ropot, 2013).
References
Ferrell, O. C., & Hartline, M. (2012). Marketing Strategy. Mason: Cengage Learning.
Ropot, J. (2013). Nokia's Marketing Strategy- Analysis and Recommondations. Munchen: Grin Verlag.
