Executive summary
Organizations are always looking for new ventures and opportunities that can help them succeed in competitive markets. Some of the initiatives that organizations can use to achieve their short, medium, and long-term objectives include diversification of existing products and the introduction of new products into the market. Rochep is a marketing organization that wishes to enter into the business, which deals with smart TVs. As a new organization in the market, Rochep has decided to undertake extensive research to assess the expected short, medium, and long-term objectives. One of the main activities that Rochep plans to undertake is an extensive SWOT analysis.
SWOT analysis had its focus on the identification of the present market conditions, competition, and the expected development of the organization. Some of the recommendations that Rochep should execute include extensive market research and SWOT analysis. Market research and SWOT analysis facilitate Rochep’s understanding of the prevailing market conditions, competition, consumer buying patterns, and their purchasing powers.
Introduction
Market penetration is a common phenomenon in today’s world since many companies offering diverse products emerge on a daily basis. Existing businesses and companies are subject to new developments that characterize the current marketing environment. A good example of an emerging company is Rochep that is planning to penetrate the market in the sale of innovative smart TVs across the United Kingdom. To succeed in the sale of smart TVs, Rochep has to undertake extensive market research and analysis to ascertain its expected productivity, revenue, and expenditure, as well as its short, medium, and long-term objectives. The driving force behind the extensive study of the market research and analysis is because Rochep plans to penetrate an existing market, characterized by high competition from existing firms. Therefore, as the CEO of Rochep, I am preparing a report, which offers direction and clarity on how Rochep can achieve its short, medium, and long-term objectives in the sale of innovative smart TVs.
Market Research
Companies usually undertake market penetration with the intention of promoting new products or increasing their market share. Essentially, Rochep has to do market research to understand how the new business will achieve its short, medium, and long-term objectives. Withey (2013) explains that market penetration involves the introduction of new products or expansion of existing products into an active market either by new or existing firms. Since Rochep is a new firm and wishes to enter into an existing market that deals with the sale of smart TVs, it has to execute a number of strategies, which will help the organization build its reputation in the market. Extensive advertisements, provision of discounts on product prices, and exhibitions are some of the strategies that Rochep can employ to penetrate the competitive market of the United Kingdom. Effective use and application of these strategies enable Rochep to penetrate the market and expand its share of customers.
As a new entrant in the sale of smart TVs, market research is paramount in the success of Rochep has it facilitates the engagement of correct initiatives that increase its publicity. Some of the initiatives that Rochep can employ include advertisement, trade fairs and exhibitions, personal selling, and product promotions. The use of these initiatives increases consumer awareness on Rochep and the products it offers in the market. Furthermore, when Rochep organization uses these initiatives in a creative way, consumer willingness to purchase smart TVs from the organization will increase.
According to Pride and Ferrel (1212), awareness campaigns and product promotions are essential in increasing consumers’ knowledge of a new product or a new organization in an existing market. It is, therefore, imperative for Rochep to ensure that it conducts effective market research that facilitates the use of the right initiatives, which convey factual information to the appropriate segment of consumers.
Market Analysis
Rochep has to undertake extensive analysis of its capacity using strengths, weaknesses, opportunities, and threats (SWOT) before embarking on the production and sale of smart TVs. The SWOT analysis helps Rochep know the expected short, medium, and long-term objectives and the organization’s development. Additionally, the SWOT analysis facilitates planning, which aids Rochep in the quest to achieve its goals.
The SWOT analysis helps firms to project their developments and organize themselves in ways that suit client expectations (Pride & Ferrel 1212). Therefore, Rochep cannot underscore the relevance of the SWOT analysis in its quest to penetrate the existing market and plan its future developments. Some of the strategies that Rochep can use include surveys, observations, and interviews with customer focus groups. These strategies are very instrumental in the organization’s pursuit of expanding its knowledge of customer buying behavior, geographical patterns, and purchasing power. An understanding of SWOT analysis also facilitates the correct placement of smart TVs that Rochep plans to produce and sell in the market.
The main aims of SWOT analysis include identification of the market condition and the major competitors who have a large market share. Apple TV, Toshiba, Vizio, Panasonic, Samsung smart TV, and LG are among the major competitors of Rochep.
These competitors are global providers of smart TVs and have the highest level of publicity and loyalty from clients of smart TVs in the United Kingdom and globally. Therefore, Rochep can use the weaknesses of these smart TV companies to penetrate the market and gain a market share. Withey (2013) highlights that competition is one of the major challenges that modern business experience. Some of the penetration strategies Rochep can use so that it produces smart TVs that will win consumer trust and loyalty include producing smart TVs, which have touch screens, quality voice, and clear images. In addition, the smart Tvs of Rochep should be user friendly, easy to navigate, and custom-built to suit diverse demographic needs
Discussion of SWOT Analysis
Strengths
Some of the initiatives that Rochep can apply as its strengths include the creation of a website. Through the website, Rochep will advertise its products to the target buyers online and persuade them to purchase its products. Moreover, Rochep needs to ensure that the website contains correct information concerning the smart TVs that the company offers to clients, as well as some of the core features that make its products stand out in competitive markets.
The website must have the capacity of educating the consumers on the uniqueness of Rochep’s smart TVs and the reasons why clients in the United Kingdom and around the world must purchase the smart TVs. Marketing is a process, which involves conversion of consumer opinions and suggestions into products (Pride & Ferrel 1212). Therefore, Rochep should listen to customer opinions, suggestions, and proposals and convert them into products that match buyer expectations.
To increase its appeal in the smart TV market, Rochep must enhance the quality of its products and make them unique from what the competitors offer to buyers, especially the ones in the United Kingdom. Quality audio and clear images of the smart TVs are some of the areas that Rochep need to focus so that it produces TVs, which greatly appeal to the target consumers. Furthermore, Rochep should make sure that it employs the right media of communication so that the level of awareness of the target clients increases.
Effective awareness campaigns and advertisements performed by the correct media of communication helps in expanding the amount of knowledge in the minds of target clients concerning the TVs that Rochep offers in the markets. Pahl and Richter (2009) note that new organizations can use promotions and awareness campaigns to increase the level of awareness among the target consumers, and consequently enhance their willingness to purchase products of interests. Hence, the use of the right communication media builds a good reputation for Rochep organization.
Weaknesses
The weakness that Rochep is bound to experience includes issues concerning the design of the smart TVs. Since most of the buyers like smart TVs that can connect to the internet, the craze for internet accessibility increases the chances of hacking into the hard drive of the smart TV. Furthermore, the need to have an internal webcam in the TVs has led to increased levels of insecurity since the TVs become vulnerable to hackers. These hackers can hack into the TV’s drive and tamper with the internal settings of the product thus interfering with its normal operations. Additionally, installation of built in camera that should be one the features that makes Rochep’s smart TVs unique increases the chances of hacking and controlling of the microphones and built-in camera.
Since a website is a very important site that the public can use in learning about Rochep’s products and their uniqueness, it has a weakness because some of the Internet users use the site to share non-constructive information. In addition, some competitors can use the information on the website to develop more advanced products than the smart TVs. The leakage of information on the websites is a weakness, as it challenges Rochep’s operations and its quest to penetrate, retain, and sustain the market share. According to Kimmel (2012), there is a rising need by consumers that business organization creates pages on social sites like Facebook and Twitter to improve its reputation and understand consumer requirements. However, the social sites increase vulnerability of Rochep to defamation from competing companies, which resort to unethical and dirty tricks of advertising and expanding their market share. Hence, the use of social sites increases vulnerability of Rochep to abuse, and thus a significant weakness.
Opportunities
Rochep expects that some of its opportunities include promotions and awareness campaigns that other companies like LG, Toshiba, and Samsung undertook in the recent past. These campaigns and promotions have increased the demand for smart TVs, and therefore, the emergence of a smart TV organization such as Rochep helps cater for the increasing market of products. Additionally, since many consumers are more informed regarding the properties of products, many of them prefer purchasing expensive products, which have high quality as opposed to uniformed consumers who purchase cheap products (Gronroos 2007). The amplified number of buyers who are in need of smart TVs implies that Rochep will have an easy entry into the smart TV market. Therefore, the growing level of awareness that transpired from extensive advertisements and campaigns led to an increase in the demand for smart TVs, a factor that translates into increased market for Rochep’s smart TVs.
Over the recent past, the revenues earned by many employees who work for various companies in the United Kingdom have risen. The rising levels of revenue imply that more individuals than before will have money to purchase smart TVs from Rochep and other companies selling smart TVs. Consequently, the level of consumers in need of smart TVs rises, and therefore, the demand grows. The growing number of smart TV consumer and the amplified demand is a very important element that Rochep can use as an opportunity to develop and meet its goals and objectives. Pahl and Richter (2009) advise organizations to work on delivery of products that meet consumer expectations as it increases their market share and revenues. These smart TVs will enable consumers of smart TVs from Rochep to enjoy the latest technology using their product and in turn become loyal to the organization.
Threats
Some of the major threats that Rochep organization expects to encounter in the production and sale of smart TVs include the reluctance of potential consumers to purchase the products due to the price. Most of the customers may feel that the smart TVs are expensive compared to their current TVs so they are unwilling to purchase the products. Rochep expects that as one of the major threats since it concerns the purchasing power of the target consumers. In producing smart TVs, Rochep will incur higher expenses, unlike when producing the normal TVs. Pahl and Richter (2009) argue that the higher costs incurred in production of a product implies that the overall cost of the subject product will be relatively higher than related products. This poses a threat as many clients develop a negative attitude towards the product and think that Rochep and other companies selling smart TVs are exploiting them.
Competition is another threat that Rochep expects to encounter in the process of penetrating the market and achieving its short, medium, and long-term goals. Companies like LG, Toshiba, Samsung, and Panasonic are among the major competitors that Rochep has identified both in the United Kingdom and globally. The fact that these competitors are popular and established makes them to enjoy the highest market share and create a difficulty for new firms such as Rochep to penetrate the market and gain a considerable market share. Competition increases the amount of money that organizations incur in introduction of new products and in persuading consumers to purchase their products (Kimmel 2012).
Another threat regards the satisfaction that potential consumers of smart TVs derive from their current TVs. This satisfaction leads to a state of reluctance where potential clients are unwilling to dispose their current TVs for new and more advanced smart TVs
Conclusion
Market penetration requires an in-depth understanding of factors such as the market forces, consumer behaviour, purchasing power, and buying patterns. As a new organization that plans to enter the smart TV market, Rochep has to undertake an extensive market research and the SWOT analysis so that it can identify the current market conditions, understand expected development, and note the existing competition in the market. LG, Toshiba, Samsung, and Panasonic are some of the competitors that Rochep identifies as its main competitors in the United Kingdom. These competitors enjoy a relatively higher market share and are popular to consumers globally. It is imperative to understand that market research and the SWOT analysis are very instrumental in market penetration of Rochep and its corresponding success. Rochep can use the provision of the analysis in its quest to achieve its goals and objectives successfully.
Recommendations
Some of the recommendations that Rochep needs to implement for its successful penetration into the competitive market of the United Kingdom include an extensive market research and consumer survey. Market research and consumer survey enable Rochep to identify its customers and understand their purchasing power and behaviour so that it can price its smart TVs within the purchasing power of the potential consumers. Furthermore, market research enables Rochep to know its competitors and their products. In performing market research, Rochep should use tools such as questionnaires, interviews, and direct correspondence with consumer focus groups.
Using these tools will enable Rochep be in a position of understanding what buyers expect from smart TV companies and thus convert these needs into finished products. Therefore, it is important that Rochep should undertake a serious and in-depth market research.
The use of SWOT analysis is another important recommendation that Rochep should undertake so that it can ascertain its short, medium, and long-term objectives. Through the SWOT analysis, Rochep will know its strengths, weaknesses, opportunities, and threats and places itself strategically in the correct market segment. Furthermore, a good application of the SWOT analysis facilitates appropriate distribution of Rochep’s smart TVs to the right segment of potential consumers, since the organisation will identify its target clients and their respective locations. Moreover, the SWOT analysis helps Rochep to undertake its pricing, design, placement, sales, and marketing strategies in a manner that suits the target consumers.
As a result, Rochep will enjoy easy market penetration and quickly expand its market share. Expansion of market share occurs due to Rochep’s strategy of good pricing, product design, effective marketing and awareness campaigns, as well as its understanding of what competitors offer, a factor facilitated by SWOT analysis.
References
Gronroos, C 2007, Service Management and Marketing Customer in Service Competition, Wiley & Sons Publishers, New York. Web.
Kimmel, A 2012, Psychological foundations of marketing, Routledge, New York. Web.
Pahl, N, & Richter, A 2009, SWOT Analysis: Idea, Methodology and a Practical Approach, Books on Demand, Stoughton. Web.
Pride, W, & Ferrel, O 1212, Foundations of Marketing, Cancage Learning, New York. Web.
Withey, F 2013, CIM Coursebook 03/04 Marketing Fundamentals, Routledge, London. Web.