This report aims to provide recommendations to address the predicament arise from the various brand and cooperate names under Shanghai Golden Wheel Fortune 100 Group, coupled with a thorough analysis explaining the rationales behind the recommendations.
As a merger between five bike manufacturers, Shanghai Golden Wheel Fortune 100 Group currently has five different brand names for its products, including Flying Duck, White Horse, Phoenix, Fast Flight, and First Eagle. There is, however, a growing concern of advertising and marketing problems stemming from the company’s excessive brand names and ill-developed corporate name.
The report will first provide the conclusions, followed by the recommendations and findings.
2. Conclusions
With respect to our finding below, we drew the following conclusion regarding the company’s usage of our brand and cooperate names:
2.1 Excessive amount of brands would lead to an unfocused product variety.
2.2 Brands with production sites in unfavourable countries along with poor bike performance would damage the company’s reputation
2.3 Poorly named brands would fail to match customers’ values
3. Recommendations
In response to the potential looming problems posed by the division of a host of brand names, the managerial team recommend the following:
3.1 The company should reduce the number of brand names, remain using Phoenix, Fast Flight and
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Findings
A wide-ranged yet unfocused product variety would deter customers from choosing our brands. Through establishing a selection of brands, the company could indeed allow variations between products. Nonetheless, assorted brands possess strong similarities in facets ranging from brand values to actual unities, result in an undifferentiated product variety. This may sometimes negatively affect the perceptions of customers when choosing between brands , creating daunting impacts to the company. We therefore recommend a smaller but focused product variety by forcing a drop in brand
Starting from a company of less than 75 workers and owning less than 20,000 SCU for production, research, quality assurance and conduct warranty work Off The Chain Bikes has doubled the plant capacity and hearing doubling the workforce within two short years. The company is successful by targeting and capturing lucrative market shares by heavily investing in the desired technical specs and design styles of one of the most influential Racing bikes. Our keen ability to thoroughly research market demands, predicting competitive strategies between the four market majority shareholders by reviewing and interpreting the marketing reports and our aggressive design and development plans have significantly increased our market share and increase shareholder value. Our core competencies and strategic goals will be realized by carefully following our established plans and aggressively price our bikes to increase total market share.
The company has recently decided to expand its product line to include a product that is a deviation from our traditional offerings. The expansion presents two potential outcomes. Outcome one has a potential for profit, incremental growth, and additional market share for the company. Outcome two has a potential for financial loss, reputation or brand damage and reduced market share.
ReferencesMarion, A. M., & Cengage, G. (2006). "Product Mix" Encyclopedia of Business and Finance. Ed. Retrieved 31 Jan, 2009 from http://www.enotes.com/business-finance-encyclopedia/product-mixQuickMBA.com (2007) "Marketing Research" Retrieved February 2, 2009from http://www.quickmba.comThe Home Depot. (2009). Retrieved January 31, 2009 from http://homedepot.comThe Home Depot, Inc. (2009). "The Home Depot Values". Retrieved 31 January, 2009 from http://corporate.homedepot.com
The purpose of this study is to explore three companies by focusing on how the brands have been performing as well as what the customers and other stakeholders are saying about the different brands. This study will also summarize the strategic issues that the companies and those they are likely to experience in future.
However, this strategy also has some disadvantages that may hurt the company’s development: The first is the fierce competition between these brands. And it is important to note that using this strategy means facing higher risks. Cost control is another big problem. Obviously, the more brands there are to manage, the higher the costs. For this reason, many prudent companies prefer brand extension over multi-brand management.
Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.
Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as well as taking sales from competitors.
The trademarks that are used are without any consent, and the publication of the trademark is without permission or backing by the trademark owner. All trademarks and brands within this book are for clarifying purposes only and are the owned by the owners themselves, not affiliated with this document.
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