Vivah Jewelry: Location Strategy Case Study Solution
Multiple Products
Vivah’s rival companies are making multiple products such as, Rietman’s products are dresses and shoes etc, while Vivah’s products are limited to necklaces, bracelets and other wearable jewelries.Customers prefer those companies where they can buy multiple things at one spot, which is another disadvantage of having rival companies in competition.
Reducing Disadvantages
Solution of penetration strategy is when a company earns a name for itself in the market and people start trusting on their products, they can move to skimming pricing strategy from penetration strategy, because once you are successful in gaining the customers’ trust then customer will pay more for your product. Same strategy can be seen in the selling of Apple’s products, as its customers do not care about price and they have faith and trust on the Apple company, which leads them to pay more for its products.
Vivah should start making more similar products because, if it wants to have Rietman’s customer sit should provide more products for its customers so that Reitman’s customers could get attracted towards Vivah. For example, if a to-be-bride comes for shopping then Vivah offer her the complete bridal jewelry package.
An effective business planning for the future, plays a vital role in expanding a business with maintaining its quality at affordable prices. It can help the business to attract new customers from different markets. While planning for the future, it is important that the company pursues to maintain its quality as well as its customers’ satisfaction. Vivah jewelers is although performing exceptionally good in Canada, but the company is considering to open new concepts on Cruises and in the US malls, despite of the fact that the US market is more competitive than Canadian.
Besides these potential markets, Vivah could open its outlet at various places within the local boundaries and in various countries outside the local boundaries. The details regarding the potential sites within the boundaries as well as their exteriors are provided below:
Local Geographical Sites
Restaurants
One of the major potential sites for Vivah is restaurants. Vivah should consider restaurants for their new outlets, because people spend quality time there along with family and friends. Therefore, it could be a good opportunity if Vivah considers restaurants for new sites.
Parlors
Another potential site for the stores includes the sites adjacent to parlors. Parlors are the places where women often go for makeup and as women are the main target segment for the company, Vivah should open its few small outlets near multinational beauty salons, which would tempt women to buy jewelries from these outlets and the company would attract a large customer traffic towards its outlets.
Cinemas
Another critical site could be the Cinema halls. People spend their leisure time in Cinemas to get amusement in their hectic life. Cinemas entice the audience, so, if Vivah opens up a few outlets in cinemas, it would be beneficial for them.
Online Stores
Vivah should start offering E-business and free delivery services to the customers. Online shopping is in boost nowadays. Moreover, as customers do not want to waste their time in travelling, they prefer online shopping as online shopping is more comfortable and one can get multiple choices just a click away.
Global Geographical Sites
After its success in the Canadian market, the other potential markets than US, include the Asian market with a number of factors that could led Vivah to be successful and to achieve its targeted growth. The Asian markets have the high tendencies to be proven the potential markets for the firm, on the basis of the points given below:
Large Customer Traffic
Asia is the most populous continent of the world, having approximately 59.7% of the world’s population residing in the Asian regions. World’s top two populous countries are located in Asian continent i.e. China at number one, which is followed by India. Pakistan and Bangladesh are also in the top ten most populated countries’ list. Due to the high population in Asia, the company could get a higher customer traffic if it operates in the Asian markets.
Cheap Labor
Along with it, the Asian markets have high unemployment rates and a high availability of cheap labors when compared to the European or North American markets, which could lead to the reduction in the potential labor costs and increase the profitability of the business.
Economic Policies
Asian countries are highly welcoming to FDI with flexible and lenient economic policies due to their weak economies. The favorable economic conditions for foreign brands like Vivah, make it easier for Vivah to expand into these countries………..
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