The article looks at different ways buyers can carve their market share in a given economy to maximize their profits. Thus, various industries across the globe study consumers and keep track of their varying tastes and preferences. Thus, most industries have to be innovative in order to find a market strategy that captures most consumers needs to fulfill them. Given the improved technological measures, marketers can easily capture consumer needs through the internet and also can speculate future profits and losses of the company. This means that a company can alter their marketing strategy through keenly observing and tracking the consumers because of the varying changes in tastes and preferences. It is crucial to note that segmentation has become an integral part in the economy because marketers can be sure of the customers’ needs rather than relying on utter speculation (Cadogan, 2011, p.152). Mistine Company has used market segmentation as a way of occupying a high market share. This paper will look at marketing strategies used by Mistine for continued domination in the market by conducting a SWOT analysis.
Mistine is a cosmetic industry and has carved more that 50% of Thailand market share in cosmetics. This means that Mistine is in a leading position and accrues a lot of profit from the sale of their products (Cadogan, 2011, p.541). It is crucial to note that Mistine would like to maintain the number one position in the market through satisfying the consumers’ needs and wants. One of the ways that Mistine has created dominance in the corporate market is through branding. Branding is an integral part in marketing strategies because consumers can easily link their needs to that of the company through its brands. Thus, Mistine has dominated Thai’s cosmetic market by owning about 70% market share. Though the company has excelled in terms of profitability, it has some weaknesses, threat and objective (Cadogan, 2011, p.542). The following table is a SWOT analysis for Mistine Company.
One of the ways strongest focal point of Mistine is that it has partnered with advertising agencies as a way of marketing its products. For example, the company has used mass media marketing strategy to market its products and also participating in the film industry (Cadogan , 2011, p.543). This means that most of its products have been worn by celebrities who can simply wear and market their products at the same time. It is crucial to note that though Mistine has participated in the film market, it ensures that its products are sold at an affordable price for the general public. Mistine has also integrated technology as a way of selling their products by targeting the youth. Given that we live in a digital era, the industry has switched to digital sales to form ties with the younger generation and also tapping new long-term consumers that is good for business.
Though Mistine has increased its sales through innovative technology and advertising, the company has to budget a lot of money for mass media advertising. This means that the company expects high returns from their products and in order to get that, they have to make an advertising that will capture attention of the people. This form of challenge is felt by the marketing team and the financial team. As a result of high expectations, Mistine has to give its consumers nice products that meet their needs.
Given the huge presence of Mistine in Thailand, the company should seek international growth by setting up stores that sell their branded jewelry. This will help the company in increasing the sales returns and doubling the economies of scale (Cadogan , 2011, p.544). Given that U*Star is a dominant competitor in the market with diversity products; it is a threat to the well-being of the company. This means that Mistine should venture in new markets so that they can retain their market share. For example, the company should consider integrating direct sales to boost their sales. Given that some consumers are loyal to Mistine products, statistics shows that sales would increase by 24% (Cadogan, 2011, p.545). Thus, Mistine can be both dominant in Thailand and also increase their sales by opening stores globally.
VALS is a segmentation tool used by marketers to forecast their sales or capture a new market share. It characterizes demographics by evaluating consumer behavior. This means that it can speculate some of the consumer wants (Cadogan, 2011, 540). This type of market strategy has been used by Mistine in ensuring that it remains a dominant company in Thailand. Through this form of market segmentation, the company has captured a new market, teenagers, by using the internet to sell most of their products.
References
Cadogan, John W.. Marketing Strategy. 2008. Reprint. Mason, OH: South-Western Cengage, 2011. Print.
