Our product is built around satisfying the need and demand of a specific target audience that requires conducting focus groups and surveys of potential customers and a thorough examination of our competition. Our strength includes our competitive price, perceived value, customer service, unique features and quality, online and retail store availability. We have created strength by allocating our budget strongly towards advertising and research and development effectively across all brands resulting in the biggest sales volumes at the lowest prices.
Lioness is ranked number one in:
• Share Price Index: 2315
• Volume Market Share: LOCK: 29.1%, LOOP: 12.7%, LONG: 5.9%
• Value Market Share: LOCK: 17.5%, LOOP: 18.5%, LONG: 5.0%
• Net Contribution: 61,287
Increased brand awareness across all brands (LOOP, LOCK, and LONG) and maintained high brand awareness with both LOOP and LOCK:
• LOOP is targeted towards high earners and 84% of high earners are aware of LOOP. The average brand awareness of LOOP is 57% and is ranked #4 in brand awareness across the industry.
• LOCK is targeted towards savers and 76% of savers are aware of LOCK. The average brand awareness of LOCK is 59% and is ranked #1 in brand awareness across the industry and towards the savers segment. LOCK's market share increased by 140% since first launched making it the top selling brand in the entire Sonite industry.
• LONG is targeted towards shoppers and 28% of shoppers are aware of LONG. The average brand awareness of LONG is 16%.
Increased budget to 21.6 million dollars and is the highest budget in the industry
There have been obstacles as far as forecasting our production plan for producing our brands, resulting in potential losses and increasing production units in inventory. Lioness does not possess the desired resources to efficiently set a proper production plan for our brands. The company has also faced challenges in allocating advertising budget accordingly across all brands. Moreover, there is a lack of resources to develop other markets and segments due to increased advertising costs.
The production plan set for LOCK is too low (350k units). 420k units were produced and 68k units of potential sales have been lost.
The production plan set for LOOP is too high (300k units). 240k units were produced and our inventory now has 57k units. Advertising on LOOP is high, however it could create a barrier to enter for new competitors.
The production plan set for LONG is too high (328k units). 262k units were produced and our inventory is now at 177k units and only 28% of shoppers are aware of LONG.
Typically, early adopters and influencers like to be the first to try the hottest new thing, influencing the masses who follow the lead of these groups with regards to their experience with a new product. This allows us to set our prices higher for a short period if competition is not an issue. If overhead costs are lower than a mature competitor, we might be able to price ourselves more competitively. In addition, we can take advantage of maximizing revenue by launching new products through advertising aggressively on our lower producing brand (LONG) and towards our new products.
Branch out to new markets (Vodites) and launch new products:
• Gaining maximum market share amongst Sonite market will increase profitability and sustain revenue.
• New trends in consumer behavior can create opportunities Lioness to establish new revenue streams and diversify into new product categories as well.
• The market development will lead to dilution of competitors' advantage and enable Lioness to increase its keenness compared to other competition.
Lower inflation rate:
• The low inflation rate emits more stability into the market, enabling credit at lower interest rate to the customers of Lioness.
Corporate social responsibility:
• By implementing corporate social responsibility, it will enable enhancement towards the overall brand image of Lioness.
One of the biggest threats we face is our competition is changing the playing field after we launch. Amongst our biggest competitors are MOST, SOFT, and TONE. It is important to have backup plans for pricing, promotion and distribution channels in order to efficiently respond to competitor changes. Before launching our entire marketing and distribution campaigns, it is necessary to launch a selected amount of test markets to see how competitors respond.
LOCK's brand awareness level is 59% and closely following is their competitors, MOST at 58% and SOFT at 57%.
LOOP's brand awareness level is 57% and their competitors, TONE is at 45% and SOSWAG at 15%.
The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.
• Stable profitability has increased the number of competitors in the industry which has put downward pressure on not only profitability, but also on overall sales.
Quicker changes in customer ideal values:
• Political effects, legislative effects, environmental effects, economic crisis, change in lifestyle, introduction of local products, increase in production and labor cost, chances of price war.
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