Customer base brand equity pyramid and the Brand building blocks
These models will help the company in understanding deeply about their target market and help it in establishing an appropriate product portfolio and expansion strategy according to the needs of the market. The company should conduct an extensive research study regarding the target market and the brand awareness of its products among them. For this purpose Moods of Norway should arrange different surveys and public seminars to evaluate the overall responses of the customers regarding its products and the popularity of their brand on them. The company should also evaluate that how much the company’s existing product portfolio meets the individual needs of the customers and how it respond to the collective societal and psychological needs of the target market. After evaluating the responses of the customers regarding the performance and quality of the company’s products towards the needs of the customers, the company will understand what type of products should be developed to build customer loyalty and a strong brand image in the new markets. With the help of this model the company will be capable of effectively expanding its product portfolio and geographical expansion to the global markets (Jackson & Nelson, 2004). However, it should also conduct an in-depth analysis of the different competitive forces of the market as well because it has to deal with a number of competitors and other stakeholders as well. After evaluating the market size and its different faces, i.e. the buyer behavior, suppliers' behavior, the threat of the new entrance, threat of substitute products and the industry rivalry, the company will become capable of developing a long term marketing strategy and helps the executives in achieving creative excellence.
Recommendation
On the basis of the above analysis and discussion it has been recommended that the company should make its geographical expansion and extension in product portfolios through the following two marketing plans.
- Instead of getting an entry into multiple markets, the company should first make an entry into the US market and check the responses of the customers towards their brand and product portfolios. They should also analyze the behavior of different market forces and evaluate the specific needs and expectations of the customers from the Moods of Norway brand. In this step the company should also make segmentations of the customers and focus upon their demography to understand their individual expectations. This means that the company should adopt a product differentiation strategy to get entry into the market and instead of making tradeoff it should try to integrate the native brand image of its existing product portfolios into the new one and increase awareness and psychological appeal of the customers through different seminars and fashion shows (Kim & Mauborgne, 2005).
The second marketing strategy that should be adopted by the company for its investment in the development of new product portfolios and entry into the global market should be based upon a mix of product differentiation and cost leadership strategies. In this marketing plan the company should make its entry into multiple markets and segments simultaneously. Although, this will require high amount of resources for the market research and development of new products, but getting entry into multiple markets will give a chance to the company to launch its products globally at once, which will help them in achieving a high brand image in a very short time (Ton, n.d.). In this strategy the company will have to adjust the prices of its products according to the market size and the customer pockets. For this purpose the Moods of Norway should use the pre-established network of retail stores and supercenters, i.e. The Wall Mart, Metro, etc.… because it will help them to easily reach a large number of customers easily...............................
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