Marketing principles and applications

Marketing Report: Preliminary Overview

On a positive note, the company's current focus on small appliances targeted to consumers meshes well with the current rise in interest in cooking. Lifestyle channels such as the Food Network, shows like "Top Chef" and the popularity of magazines like Martha Stewart Living, Rachel Ray, and Cook's Illustrated and their website counterparts all show an expanded interest in using high-quality cooking appliances in home kitchens. The currently softening economy may seem to bode ill for high-end luxury merchandise, but it also may mean that consumers are likely to be eating out less often, and that even wealthier consumers may have a greater interest in staying home and cooking. The rise in popularity of warehouse stores like Costco and Sam's Club may bring a similar rise in the demand for refrigerators, in the company's larger appliance division.

First of all, more detailed analysis is needed to see if indeed the company's reputation for higher-end appliances are what draw people to buy its products, and are the top sellers. Then, a typical profile of the user of the company's products in general, and of specific products produced in its different lines should be created. Branding and creating a unique niche remains critical at this juncture of the company's development, even though it is not a new company. Its brand concept is continuing to evolve.

One possibility is to see if the company products can garner placement in cooking shows that target the company's main audience. If viewers see, for example, the company's food processer used on a challenge on "Top Chef," they are more likely to buy that food processer to recreate the recipe at home, or simply to consider the item they need a new one. Getting a celebrity spokesperson that embodies the brand would be a natural outgrowth of such appearances. A spokesperson can enable consumers to put a face to a brand name, and encourage product loyalty in a variety of product arenas, not simply one.

However, to gain such a niche, the company must substantively overhaul both the technology and design of all of its core products, and eliminate the outdated products that expend unnecessary revenue in production and dilute the value of the brand. A visually interesting and television-friendly product is necessary, to catch the eye of the consumer and to justify the added cost of the product, since the company is not marketing a 'value' brand. Given that higher-end consumers usually want the most technically sophisticated and visually arresting products to justify the premium they are paying, it is critical that the company regain its status as a cutting-edge company. It must begin to generate positive 'buzz' about the products, through word-of-mouth, and placement on television programs, magazines, and other venues.

It is also possible that product placement in lifestyle magazines for its profitable laundry machines, after these products likewise get a design and technical overhaul, might be an area to explore.. Again, more detailed metrics about the core users of these products would be advised, to see if there is a real demand for high-end durable goods in this area. Since people are less apt to be attracted by excess gadgetry in the market of clothes washers and dryer, and fewer people own more than one laundry machine than own a wide array of kitchen gadgets, remaining in the high-end market sphere for this product line, barring some substantial new R&D development may be questionable.

To find out what is the newest and best product lines, increasing the company's sales presence at trade shows might be a good idea. Improving its reputation at trade shows would increase retailer's interest in the product, and encourage major vendors to showcase the product more prominently in their store displays and promotions. Expanding the range of stores might be a good idea since the product line is so deep, but there is also the possibility of establishing a special relationship with a particular store whose brand seems uniquely suited to the image of the company. Since image-building is so important, rather than having independent salespeople, it would be advised that a core contingent of salespeople who are loyal to the company, have a singular image and message, and are not independent, and thus mostly personally driven for commissions, be employed.