The Beauty of Sorbet Case Study Solution
The alternative would bring various advantages to company such as it would lead to a high-profit margin through targeting new customer base, it would allow the company to enlarge the customer base and increase sales volume, the visibility of the brand of the company would increases, the company would be able to establish the local relationship, promote increased sales level, strengths financial and non-financial performance and develop customer loyalty and the sales would increase due to the more brand exposure.
In contrast, the foreign regulations and law can hinder the company to enter into the market, the economic and political instability can severally affect the business potential and the company would heavily spend its time, strength and money to branding or advertising
Alternative 02: Diversification
Another option that the company could opt for is to diversify its product or service, it could lead to extraordinary risks and rewards. It would lead to increased profit margin and growth in business operations and it would allow the company to gain the long term financial goals whereas lowering risks.
In contradiction to advantages, the cost of launching new or improved products would lower the profit and it would be costly to acquire any information or knowledge smoothly run the business operations in new market.
Alternative 03: Offer new or improved products in the existing market
Sorbet brand could look at offering new or improved products or services to invigorate an existing market. It would allow the company to drive the higher value proposition, it would entice the customers to try new and improved products or services at Beauty of Sorbet and it would allow the company to win business from market competitors and threatens them by offering exceptional quality services
There is a possibility of failure of the new or improved product in the market, the company could be threatened from the product cannibalization and the improvement in the existing product might not satisfy the customer in accordance with their preferences and desires.
Fishben Multi attribute model
| Attributes | Alternative 01 | Alternative 02 | Alternative 03 | Importance weightage |
| Brand recognition | 9 | 8 | 8 | 35% |
| Higher market share | 10 | 7 | 7 | 20% |
| Increased brand visibility | 8 | 6 | 6 | 15% |
| Long term financial goals | 10 | 8 | 8 | 10% |
| Higher value proposition | 9 | 8.5 | 8.5 | 10% |
| Win business from market competitors | 10 | 7.5 | 7.5 | 10% |
| Total score | 9.3 | 7.5 | 7.5 | 100% |
Analysis of alternatives based on the challenges faced by the organization in terms of managing the high quality services and rapid growth of the organization in consideration with the growth opportunities were evaluated using Fishben Multi attribute model.Different attributes are given the weightage with respect to the expectancy of their potential to benefit the organization, for which alternative stand out among all the three. Due to the core strengths of the organization, expansion in the new market segment will allow Sorbet to come up with new demands and needs of the customers based on their preferences with measures to bring reduction in cost to be approachable to different market segments with the fact that customers prefer low price and high quality products.
Recommendation
In consideration of the evaluation of the multiple alternatives, it is advised that the Sorbet should focus on investment on its R&D to reduce the cost of its products but with maintenance if quality to diversify its market reach from premium to the other. It is because it has already gained huge popularity and seized the market share in the existing market. In doing so, Sorbet would be able to generate high-profit returns and to enlarge the customer base. It would also allow it to improve its brand identity and brand exposure. The market development would lead to a competitive advantage over the market rivals with continuous monitoring of its operational and manufacturing services.
Implementation
To implement this, the company should define its target market and go with extensive market research which includes population trends, their spending pattern, strength and number of market competitors, trends in the salon industry. Additionally, the company should project the market share when expanding a similar business model in the new market. It could also use the CAGE distance framework and conduct PEST analysis to identify threats and opportunities in the market. It should also use the marketing mix in order to understand how to re position the brand in the market. Furthermore, it should use different channels of sales such as direct and online sales. In doing so, the company would be successful in improving its brand recognition and maximize market share. The key steps for the implementation of suggested alternative will primarily include:
- Analysis of core competencies
- Determination of quality operations.
- Investment on R&D to make cost-effective products
- Maintenance of quality procedures
- Offer low price and high quality product
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