RedBalloon is a company based in Australia and is concerned with changing the manner in which people give gifts. The company also ensures that it enhances people’s feelings about receiving gifts. This means that they work hard to ensure that they change consumers’ perception about presents. RedBalloon works with all stakeholders in the society to ensure that people change their perception towards presents and gifts. For instance, they work with corporate bodies in running reward and recognition programs within their organisations. These programs are run by employers as a way of motivating their employees in order to promote productivity in their organisations.
RedBalloon was founded in 2001 by a former corporate marketer known as Naomi Simson. She started the business from her home with a second hand computer and due to her perfect management skills the company has grown tremendously (Ireland, Hoskisson and Hitt 2009, p. 76). Naomi Simson had to quit her corporate marketing career to develop her own business. Since 2001, the company has attracted a vast number of awards for its fast growth. In fact, the RedBalloon is among the fastest growing and most successful online business in Australia and New Zealand.
Assessment of RedBalloon’s current strategy
RedBalloon has seen a remarkable growth and success rate, and this means that the company has effective strategies. For any organisation to be successful, its managers must put in place effective marketing strategies. In fact, this company has a perfect management team charged with ensuring that all plans are implemented to the letter hence making it possible for them to achieve sustained growth.
RedBalloon has a strategy of reaching hearts of their customers before selling their products to them. The company achieves this by carrying out researches on customers’ behaviors and beliefs before arriving at a point of introducing their products. The company ensures that they understand clients’ passion in order to customize their products to meet customer needs. This strategy has helped the organization to attain high growth rates since they work hand in hand with their customers. In fact, their goal is to uplift lives of their clients alongside building their business.
Social campaigns are one of the main strategies used by RedBalloon Company in achieving its goals. This is where the company uses marketing principles to influence clients’ behavior towards consumer goods (Ireland, Hoskisson and Hitt 2009, p. 76). In fact, the campaign is aimed at helping the client more than the company. In return, customers build trust in the company hence contributing to the organisation’s customer equity. Customer equity is vital for companies since it influences consumption of company’s goods and services hence increasing its profitability.
Another strategy that is used by the company is behavior change strategy. This is where the organisation struggles to make sure that its growth rate is sustained through behavior shift. Sustainable growth rate can only be achieved if the company cautions its business against competitors. By influencing behavior change, the company makes sure that consumer behavior is inclined toward consumption of the company’s products. Consumer behavior shift is achieved by helping clients to start a campaign that convinces target groups either to start, maintain or stop specific behaviors (De Wit and Meyer 2010, p. 98). Once this is achieved, the company achieves sustainability as competitors will not influence reversal of the behaviors easily. RedBalloon has been successful in implementing this strategy mainly because it deals with products involving everyone in the society. In addition, it is in their mission to influence people’s behavior by ensuring that it changes their perception towards gifts and presents. Therefore, this strategy works exceedingly well with the company and assures its management of sustained competitive advantage. This is achievable since most of its strategies cannot be imitated by its competitors.
The company has a strategy of involving their clients in strategic planning. This is done through empowering clients who are interested in causing a sustained impact. This makes customers prefer seeking RedBalloon services because they rest assured of maximum support until they realize their set goals. This strategy is remarkably effective as clients develop faith in the company hence contributing to organisation’s reputation.
RedBalloon uses internet as a medium of communicating with its suppliers and customers. This medium gave the company an advantage over other players who used offline means. RedBalloon has been able to monitor price changes in the market in time hence strategizing on how to adjust their prices for their products and services (Wheelen and Hunger 2006, p. 56). These strategies ended up helping the company to attain sustained competitive advantage, which in turn translated to continuous growth. RedBalloon’s manager believes that businesses are enhanced by relationships. This ideology has motivated her to ensure that RedBalloon does everything within her reach to promote relationships with their clients.
The company empowers staff in order to achieve its organisational goals. Motivated workers focus on company objectives hence making it easy for the organisation to realize their set goals. In fact, this strategy is vital for maximum productivity leading to achievement of competitive advantage (De Wit and Meyer 2010, p. 98). Many companies fail to achieve their objectives because they lack proper strategies aimed at motivating their employees. The manager of RedBalloon maintains close contact with her employees to make sure that they discuss any issue arising from the business.
De Wit, B & Meyer, and R 2010, Strategy synthesis: resolving strategy paradoxes to create competitive advantage, 3rd edn, Thomson, London.
Ireland, R. D., Hoskisson, R. E. & Hitt, M. A. 2009. Strategic Management Competitiveness & Globalization 9th ed. Nelson Education Ltd, Canada.
Wheelen, T. L. & Hunger, J. D. 2006. Concept in Strategic Management and Business Policy 10th ed. Prentice Hall, United State of America.