(Alivan Watch & Accessories Company)
Strayer University
Dr NAME
Marketing 500
Alivan Watch & Accessories Company
Branding strategy
A good branding strategy will be necessary for Alivan Watch & Accessories Company to assist in the development of a triumphant brand to achieve specific goals. The ground rules that were used by companies in the past have been evolving. Thought leadership, content marketing, demographic changes, and social media are some of the factors that are challenging company brands. Thus, forming together with sustaining clientele trust as well as loyalty and confidence have become harder than ever before. Firstly, the branding strategy to be used by the company is to see consumer engagement that other competitors in the market segment do not see. This is simply not doing what other businesses in the market are doing through being more creative about how the company’s brand will engage with customers. Use of drip target one of the tactics to be employed by the firm. The tactic will be relative to the brand maturity and commitment experience that the company wants to create with its target market, which are persons aged between 18-35 years. Customers want variety and like surprises, which will be best done using drip system tactic. This will also reduce chances of predictability of the company amongst its competitors. Predictability will be avoided by mixing up various watch designs made by the company, as every brand is equally vulnerable.
The company’s brand will be given a refresh each year as customers reevaluate their needs often. Therefore, instead of being reactive to target segment needs, the company will be on the front end and assist in guiding clients as they reinvent themselves. Ativan Watch & Accessories Company has to be to be on the frontline towards managing consumer engagement strategy. Secondly, the company will establish an easily relatable identity. The brands will not complicate their UVP, which is a unique value proposition to capture consumer attention. In an effort to reinvent as well as renew, the company has to try as much as possible not to complicate its products to avoid frustrating customers. The identity of the brand is critical when it advances, and its proposition value strengthens in line with the transforming lifestyle demands of the target segment (Llopis, 2014). The company will primarily use house of brands as its branding strategy. The purpose of using is that the company needs to create an identity for its watches, bracelets, and necklaces. Alivan Watch & Accessories Company slogan is to redefine time and jewelry that is why it has ventures into manufacture of watches, necklaces, and bracelets. Therefore, the branding strategy will be centered on the slogan of the company to ensure if any individual within the target market thinks about getting a bracelet, watch, or necklace, he, or she will go for merchandise made by Alivan Watch & Accessories Company.
Distribution strategy
Pricing strategy
Pricing is one of the most crucial elements of the marketing mix. Price is the only element of the marketing mix that generates a turnover for a firm. Hence, Alivan Watch & Accessories Company has to come up with effective pricing strategies. The pricing strategies for the company will take into account competition, the objectives of the company, target group, and willingness to pay, proposed positioning strategies, fixed costs, and variable costs. Alivan Watch & Accessories Company will use penetration-pricing strategy. The products made by the company will initially be sold at low prices in order to reach a wider proportion of the market as well as initiate word of mouth (Griffin, 2016). The strategy will work based on the expectation that consumers will switch to the newly introduced product due to low prices charged. Penetration pricing will assist the company in enlarging its market share together with exploiting economies of experience or scale. Use of low prices will draw consumer attention and counter competition already in the market. To ensure that the pricing strategy is successful, it will embark on mass-production of quality products to lower costs incurred in producing a single unit. Low prices will lead to the creation of positive branding among the initial clienteles who will share their opinion on the product with other potential buyers. Increasing market share that will result due to the use of the pricing strategy will lead to high sales volume and thus, lowering costs of production. Lastly, consumers who buy products at low prices are bound to purchase a regular or a high priced product made by the company. The product prices will be increased systematically after the company has captured its aimed market share.
Distribution Strategy
Distribution strategy is important to every business as it helps in expanding its reach and growing revenue. Alivan Watch & Accessories Company is an example of business to consumer, which means it will sell its products via multiple channels to reach as many consumers are possible. The products will be manufactured in Singapore by staff employed by the company. The multiple channels that will be used by the company will be inclusive of wholesalers, distributors, internet, sales team; value added resellers, dealers, retailers, sales agents, and the company’s representatives. The reason why all these distribution channels will be used it is to ensure that products made by the company are available in every part of Singapore. Various high head wholesalers, dealers, retailers, and sales agents are available across the country who will assist in distribution and sale of the company’s merchandise. All the channels should be dealing with sale of watches, bracelets, or necklaces. However, the use of nay distribution strategy will be based on an evaluation on how end consumers need to buy. Products ordered online will come from the company. After the company has gained its aimed market share, all the distribution channels will be reviewed based on their performance and those with low revenues will not be allowed to carry on selling Alivan Watch & Accessories Company products. The closed stores will be replaced with company outlets to assist in positioning products made as high end and quality merchandises.
Classification of competitors
The top five watch manufacturers that Alivan Watch & Accessories Company will be competing against include All Bravo Trading, Ancient Watch Centre, Lim Joe Chiang, Prestige Time, and Dickson Watch and Jewelry Company (Directory, 2016). These companies are intra competitors.
Strengths
All Bravo Trading
Excellent branding strategies and advertising strategies enabling it capture the largest market share in the country.
The company has sub-brands such as Pathfinder which target different market segment and are marketed and promoted accordingly.
Its products are considered of excellent quality having a value for money.
Ancient Watch Centre
Sponsors sports events taking place in Singapore, which has helped it increase its brand awareness among potential buyers.
The brand of the company is protected under various trademarks that are registered in all the countries it operates.
Strong advertising and marketing strategies.
Lim Joe Chiang
Mass appeal to its target group
Strong capital base that has enabled it globalize it operations within a short duration.
Weaknesses
All Bravo Trading
The company has succumbed to counterfeiting effects in several occasions. Fake watches are low in quality yet sold at equal prices as the original ones. If a consumer purchases a counterfeit watch due to its durability length, his or her utility will reduce leading to a negative word of mouth, which affects a company’s brand image in the market.
Limited presence globally despite producing quality watches
Ancient Watch Centre
Stiff competition from other top five companies dealing with watches, bracelets, and necklace products.
Difficulty in reposition with shifting demands of the its target market.
When compared to other brands recognized globally, the company has a limited global presence.
Lim Joe Chiang
The company has positioned itself as a producer of high quality and high priced watches. Hence, the watches produced are expensive for those earning low income or middle income, as their merchandises are luxurious and highly priced.
Perceived more of a watch brand than a bracelet or necklace brand.
Use of phones to keep track of time as affected the demand of watches made by the company.
Differentiation strategy
The differentiation strategy used will be focused on gaining competitive advantage through product leadership in the market when compared to the closest competitor. A smart differentiation strategy will assist the company’s brand to become successful in the market. Alivan Watch & Accessories Company will use product-based differentiation strategy which is involves making use of the characteristics of watches, necklaces, or bracelet to successfully differentiate from those made by competitors. Brands are built on products, and if a company does not engage in service provision, it means that in the early stages of brand construction process where the company has not made emotional connections with consumer such as in the case of Alivan Watch & Accessories Company, product-based differentiation is the best strategy to use. As the company is focusing on watch innovations, the strategy will be a success (Kumar, 2014). The company will invest funds of research, designing, and development of trendy watches that have new features as well as continue improvement of its products.
Some of the methods that will be used to create differentiation product feature, the process of manufacturing, performance, and design. Firstly, watches made will have various features such as leather belts, stainless steel, and un-scratch able glass among others. The brand manager of the company will often evaluate the cost and benefit ratio to make a versed decision to include a feature in a product and take advantage of it as an element of differentiation. The features to be pursued have to be lower than the premium to be charged. Secondly, the process of manufacturing and assembling the watch part will be used in the differentiation strategy. The process will be a good way to set the company’s brand apart from the competition. The secret materials used to make the watches, necklaces and bracelets, as well as the proprietary technology, definitely make a difference when it comes to appearance. This presents an opportunity that can be used to differentiate company brands apart from the competition (Lamb, Ferrell, & Pride, 2011). Thirdly, performance is another aspect that will be used. Alivan Watch & Accessories Company aims at redefining time meaning that it will embark on manufacturing watches of high performance increasing clientele satisfaction. The performance will be fostered through decent product assembly to avoid chances of breakdown before five years are over. In addition, through embarking on the production of battery-free watches, it shows that its high-end watches can be used for decades. The slogan of the company will be “redefining time.” lastly; designing unique and attractive merchandises will be an efficient and vital way to product differentiation. The company will pursue this strategy through reflecting it in the entire company’s assortments.
Company’s intention
Following the company’s slogan which is “Redefining time,” and its mission which is to strive endlessly towards providing products with highest standards in the market, modern design, together with a prompt response to company’s valued customers, it is clear that the company wants to be a leader in the industry and not a follower. The company aims at expanding its operations to other countries meaning that if it has to do so, it has first to compete fully and be the leader in watch industry in Singapore. The target market nowadays goes with class. Therefore, this means that Alivan Watch & Accessories Company intends to be a leader and not a follower. In addition, the distribution, pricing, differentiation, and branding strategies to be used can further show that the company intends to be the leader in the industry. The distribution strategy aims at ensuring everyone within Singapore access products made by the company quickly. Pricing strategies used which is a penetration one is meant to attract as many customers as possible so that the company can have the largest market share when compared to its competitors. The differentiation and branding strategies are carefully tailored and their primary purpose is to make sure that Alivan Watch & Accessories Company products are unique eliminating chances of a customer confusion (Muthaly, Lamb, Pride, Zikmund, & Iacobucci, 2011). Through proper application of all these strategies, the company will emerge as a leader and not a follower within the industry it will be operating.
Media tools
The two critical social media that will be used by the company to undertake promotions and advertisements on its products are Facebook and Twitter. These two social media platforms are popular across the globe, and almost everyone in the targeted market segment has them installed on their mobile phones. Customers will have the chance of liking and following Alivan Watch & Accessories Company’s pages where they can access all the relevant information regarding the products made by the company. The information given in these platforms will run from features, size, weight, nearest place that the product can be bought among others. The two will be used as a channel for marketing new products launched by the company. The company will work these two platforms through ensuring consistency to build its brand recognition within the target segment (Arruda, 2013). Marketing will be carried extensively in the two to create a stronger relationship through regular and branded interactions to make sure that message is conveyed and comprehended by the target market. The company will also make use of the mass media especially magazines and television commercials to increase its brand awareness.
Integrated marketing communications
The company will make use of integrated marketing communications that will assist it to focus on brand building through delivering and designing promotional messages that unified as well as product use experiences. Both traditional and modern marketing strategies will be applied to ensure that communication of consistent message for products made by the company is optimized. The company will use direct response, public relations, sales promotion, and general advertising all in combination to foster clarity, consistency together with maximum impact of its communications. Therefore, the company will use both the 4Ps and 4Cs of marketing. Use of social media is another too that can be used to reach a well-integrated marketing communication. The social media will be used as it represents more opportunities that can be used to leverage integrated marketing strategy for increasing preference and awareness for the products made by the company. Use of social media tools broaden the reach while cutting down costs incurred to communicate with target market masses. The company marketers also will have to think outside the box to ensure they come up with successful creative efforts to attract potential markets. Some of the non-media methods that will be used to ensure integration of message include use of vehicle wraps, floor clings, street painting, and bill boards. Use of these techniques will increase awareness of the products made by the company. As a result, many consumers will be compelled to try Alivan Watch & Accessories Company merchandise.
References
Arruda, W. (2013). Three Elements of an Effective Social Media Strategy. Forbes.com. Retrieved 12 May 2016, from http://www.forbes.com/sites/williamarruda/2013/08/27/three-elements-of-an-effective-social-media-strategy/#57a8b0537543
Griffin, D. (2016). Penetration Pricing Strategy. Smallbusiness.chron.com. Retrieved 11 May 2016, from http://smallbusiness.chron.com/penetration-pricing-strategy-2723.html
Kumar, V. (2014). My Plans for Journal of Marketing: An Editor in Chief's Perspective. Journal of Marketing, 78(4), 1-3. http://dx.doi.org/10.1509/jm.78.4.1
Lamb, C., Ferrell, O., & Pride, W. (2011). Marketing cases. Boston: Houghton Mifflin Co.
Llopis, G. (2014). Forbes Welcome. Forbes.com. Retrieved 11 May 2016, from http://www.forbes.com/sites/glennllopis/2014/03/10/6-brand-strategies-that-most-cmos-fail-to-execute/#15dac1507611
Muthaly, S., Lamb, C., Pride, W., Zikmund, W., & Iacobucci, D. (2011). Marketing for decision makers. South Melbourne: Cengage Learning.
