Environmental Analysis- Marketing Strategy
Hein and Mann Environmental Analysis
Problems, Key factors and Opportunities | Weight(50)Rank | Impact(10) | Rank(5) | Top executives and professionals leaving South Africa | 18 | 6 | 2 | Slow service delivery | 32 | 8 | 4 | The cost of raw material has increased | 28 | 7 | 4 | The economy segment declined | 24 | 8 | 3 | Customer Relationship Management | 28 | 7 | 4 | The large middle section segment exposure to marketing campaigns | 18 | 6 | 3 | Emerging of export business and expanding product range in UK | 32 | 8 | 4 |
From the table above it is evident that the decline of the economy segment has had little impact on Hein and Mann because their main target market entails exclusive and export markets. The score of 18 shows that there has been a huge impact of the competitor marketing campaigns to increase awareness on middle section segment of Hein and Mann, hence there have limited target market and are not able to reach a wider potential target market.The weight of 18 has a negative impact on Hein and Mann as there are losing their main target customers who purchase exclusive furniture, such as executives and professionals who are being retrenched and leaving South Africa. The score of 32% shows that Hein and Mann have shown growth in export business and expansion of their product range in the UK would competitive advantage in the market. Slow service delivery score 32 which means that Hein and Mann has faced low turnover of customers as most of them are considering using other suppliers who deliver on time promised and offer discounts. The score of 28 shows, that customer relationship with customers is important. However Hein and Mann do not show empathy towards customers. This in turn results in low turnover of customers.
2. Industry analysis of Hein and Mann
Threat of new entrants
There are many barriers that include high entry costs, in this case new entries in the furniture business would not succeed because heavy investment is
Problems, Key factors and Opportunities | Weight(50)Rank | Impact(10) | Rank(5) | Top executives and professionals leaving South Africa | 18 | 6 | 2 | Slow service delivery | 32 | 8 | 4 | The cost of raw material has increased | 28 | 7 | 4 | The economy segment declined | 24 | 8 | 3 | Customer Relationship Management | 28 | 7 | 4 | The large middle section segment exposure to marketing campaigns | 18 | 6 | 3 | Emerging of export business and expanding product range in UK | 32 | 8 | 4 |
From the table above it is evident that the decline of the economy segment has had little impact on Hein and Mann because their main target market entails exclusive and export markets. The score of 18 shows that there has been a huge impact of the competitor marketing campaigns to increase awareness on middle section segment of Hein and Mann, hence there have limited target market and are not able to reach a wider potential target market.The weight of 18 has a negative impact on Hein and Mann as there are losing their main target customers who purchase exclusive furniture, such as executives and professionals who are being retrenched and leaving South Africa. The score of 32% shows that Hein and Mann have shown growth in export business and expansion of their product range in the UK would competitive advantage in the market. Slow service delivery score 32 which means that Hein and Mann has faced low turnover of customers as most of them are considering using other suppliers who deliver on time promised and offer discounts. The score of 28 shows, that customer relationship with customers is important. However Hein and Mann do not show empathy towards customers. This in turn results in low turnover of customers.
2. Industry analysis of Hein and Mann
Threat of new entrants
There are many barriers that include high entry costs, in this case new entries in the furniture business would not succeed because heavy investment is
References: Grönroos, C. (2010) "Defining Marketing: A Market-Oriented Approach". European Journal of Marketing, 23(1), 52 - 60 Modi, P.B., & Mishra, D.(2010)Conceptualising market orientation in non-profit organisations: definition, performance, and preliminary construction of a scale. Journal of Marketing Management, 26(5),17-35 Wang, C.G., & Ahmed, K.(2009). Knowledge management orientation, market orientation and firm performance: an integration and empirical examination. Journal of Strategic Marketing, 17(2), 99-120.