Marketing Orange Company

MARKETING 7

Marketing:Orange Company

  1. Background Information

The Orange Company was established in 2010 and is made up of fourmembers. The company operates in European and Asian markets. Thedemand in Europe has been consistent and hence attractive forbusiness operations. The product portfolio for the client comprisesof three designs, the classic design (Elegant), Sport (I-Fit) andAvant Garde (Sakura). The table below presents the features of theproduct portfolio.

Design

Compactness

Battery Life

Unit Cost (€)

Warranty Cost(€)

Capability Usage (%)

Elegant

Classic

60

100

192.6

5

60

I-Fit

Sport

86

110

212.2

6

81

Sakura

Avant garde

100

110

220.3

6

81

  1. Objectives

Long Term Objectives

  1. To increase the profits margins by 25 percent by the end of Round 2

  2. To breakeven by the end of the second round

Short-Term Objectives

  1. To decrease the level of total liabilities and equity

  2. To enhance the investment in R&ampD

  3. Increase the level of advertisement in Europe

SWOT Analysis

The strengths for the two roundsare the same. These are as shown below

Strengths

  • The biggest strength of the company is the brand name. Many clients opt to go for Orange brands mainly because of reliability, creativity and durability.

  • The four personnel in the Orange Company are highly qualified with vast experience in smartphone marketing

  • When compared to the phones from other competitors like 4Phone, Red and Blue, the resale value in Orange is much higher.

  • Most of the products are easy to use

  • The product portfolio is admirable ensuring delivery to different customer preferences

  • Orange company offers product available at all price ranges. This ensures that different clients can access the products based on their purchasing capabilities.

Weaknesses

Round 1

  • The product sales returns are very poor when compared to other companies like red

  • The variable costs are considerably low than for the other companies

  • The profits margins in Orange Company are significantly low than for all the other competitors

Round 2

  • The total liabilities are considerably high relative to the gross profits

  • Some products like Sakura are highly priced, hence very low sales compared to Elegant.

  • The level of competition is considerably higher and this implies reduction in the sales volume.

  • Technology wise, the compactness and battery life for the Orange brands are considerably lower than that for other companies for the new round than for the last round.

  • The sales distribution in Asia for the classic design is very low compared to the Avant garde

  • Product awareness in Europe in very low compared to other companies like Grey

Opportunities

Round 1

  • The Asian Market seems to be growing at a high rate, especially in their demand for Avant garde designs.

  • There is an opportunity in the High-End households for Elegant and I-Fit in Europe. These households are currently giving the highest returns

  • There is opportunity in Household segment in Asia for the Elegant and Sakura designs. These have the highest returns when compared to Intentions, High-end households, High-end companies and companies segments.

  • There is an opportunity for I-fit designs in European markets, especially in high-end companies segment.

Round 2

  • The increased investment in R&ampD will enhance the design of the products and consequently increase the sales

  • There is need for increased distribution of Elegant Brand in Europe

  • The increase in department stores in Asia will ensure increased delivery of the products to the clients

Threats

The threats tends to affect the products in the same way, both inRound 1 and Round 2.

  • Tough competition from other companies offering similar products like Grey. This implies that it will be hard for Orange to maintain and expand in terms of market share

  • The low-cost threats from the competitors have high likelihood of reducing the customer base

  • The increased phone designs will tend to outdo Orange in Market due to the fact that Orange is currently offering only three designs Classic, Sport and Avant garde

Therefore, from the SWOT analysis carried out, it is evident thatOrange Company is going through tough times in the market because ofthe different factors. Competition has been one of the major factorsthat is resulting to reduction in market share, reduced gross profitsmargins and operating profits. Nevertheless, other factors that havebeen identified which are derailing the company include high levelliabilities and equity as well as insufficient investment inadvertisement. This has resulted to low market presence of somebrands in various customer client.

Nevertheless, the company is aware of all this factors and measureshave been put into place to enhance product promotions in differentcustomer segments based on their preferences and purchasing power.Also, the Orange Company has invested heavily on R&ampD to ensurethat the designs produced are of high technological features and canbe offered at realistic prices.

It is therefore anticipated that when all measures are put intoplace, Orange Company will be able to achieve significant sales bybeginning of the third round which will see its breaking-even point.Through increased advertisement and elaborate R&ampD, the companywill be in a position to achieve a 25 percent increase in profitmargins and increased market share.

Bottomof Form

Reference

International Business Cesim Global Challenge Simulation AccessCard Connect Plus (2012). Irwin Professional Pub.