Background of the Company
The purpose of the report is to understand the marketing fundamentals that companies need to apply so that they can maintain its advantage in the market. The report focuses on the marketing fundamentals adopted by Panasonic so that it can promote the new and innovative smart mirror in the market. The report conducts a situational analysis of the market and indentifies the target market of Panasonic so that the product can be launched. The effective use marketing mix along with the marketing metrics is analysed in the report. Furthermore, a SWOT analysis is conducted that highlights the marketing environment of the country of operation.
Panasonic is a Japanese multinational electronic company that is headquartered in Osaka, Japan. The company was established in 1918 and is well known for the production of light bulbs, television sets and home appliances. Panasonic is one of the most famous companies in the world and is a leader in manufacturing electronic products. It major competitors include Sony, Hitachi and Toshiba (Panasonic.com, 2018). The product that is in focus is the smart mirror that is manufactured by the company. The mirror provides an opportunity for people to find out the flaws they have with their faces and make recommendations to improve it. It is particularly useful while applying makeup on the faces.
The political condition of Australia is such that it provides opportunities for the growth of innovative products. According to Kanagal (2015), the economic factor of the country can be a threatening factor as the market fluctuation in the country is high and is often subject to economic crisis. However, the society is well advanced and the introduction of new technologies such as smart mirror can receive positive response from the people of the country. The legality of the business can be defined based on the sustainability it maintains for protecting the environment so that manufacturing of the product does not cause harmful wastes.
The major direct competitors of Panasonic are Sony, Toshiba, Cannon and Hitachi. These companies are the leaders in the manufacturing of electronic products and can provide tough competition to Panasonic.
|
Key Industry Success Factor |
Priority given by Panasonic (1=low priority,4=high priority) |
Competitor rating of Sony |
Competitor rating of Cannon |
Competitor rating of Hitachi |
Competitor rating of Toshiba |
|
Promotion process |
3 |
4 |
5 |
2 |
4 |
|
Customer satisfaction |
2 |
5 |
1 |
2 |
4 |
|
Economies of scale |
3 |
2 |
1 |
2 |
3 |
|
Innovation of products |
4 |
1 |
2 |
4 |
4 |
Table 1: Competitor analysis
(Source: Created by author)
The consumer analysis of Panasonic can be done by identifying the people interested in the beauty and fashion. The target market can be the people involved in the fashion industry or are indulged in theatres. The consumer behaviour that can be expected from this particular innovation strategy is that the consumers may be intrigued to analyse the flaws and allow the technology to make rectifications in the flaws. The customers can be involved in the decision-making process of the company by providing them feedback forms so that after the promotion of the smart mirror via social media, the customers can understand the important aspects that are related with the product Akgün, Keskin & Ayar, 2014).
Situation Analysis
The SWOT analysis helps in understanding the capability of a company. However, in this case, the SWOT is analysed based on the market in which Panasonic operates.
|
Strengths · The Australian marketing environment is supported by the Government · Every business is provided with able support for success · The marketing environment welcomes any new and innovate business ideas |
Weakness · Unstable economic condition prevails in the country · The economic condition provide the market with depression · Binding of the legal factors necessary for business can be strict |
|
Opportunity · Opportunity to build the market and promote the innovative process · Expansion into New Zealand · Ensure steady growth |
Threat · Presence of local competitors · The leniency from the Government provides opportunities for entry of new markets · Monetary instability may be seen in the markets |
Table 2: SWOT analysis
(Source: Created by author)
The targeting strategy that is adopted by Panasonic is to promote the smart mirror among the high-income group people that have an affinity to remain fashionable. The profile of the target market of the company is the people involved in acting and like to party frequently. The high-level income group can provide Panasonic with an opportunity to increase its revenue and ensure that the promotion of the smart mirror is done in an effective manner. Hence, it can be said that the target market and the strategy adopted for maintaining the success of Panasonic is based on the feedback of the customers.
The positioning strategy that Panasonic need adopt is that it needs to analyse the competitors. The position of the competitors can be analysed by identifying the products and the manner in which Panasonic can improve itself in the market. As stated by Armstrong et al. (2015) the positioning strategy needs to be based on the strengths of the competitors and the strengths that a particular company possess. In this manner, it can be said that the positioning statement of Panasonic can be at top of the chain if the company can identify its target market and reduce the price of the smart mirror.
It can be said that Panasonic need to ensure that the brand is recognised in the market and that it can provide satisfaction to the customers with the new product. The application of the smart mirror can help in the growth of technology in the society and can provide the Australian community with an opportunity to adapt with the modern world. The price of the product can be reduced so that the company can target middle level customers and provide opportunities for improving its competitiveness in the market. Hence, the branding strategy of Panasonic can be considered as one of the most effective strategy in the market.
The three level of product that can be available in the market includes the core, augmented and actual product (Davcik & Sharma, 2016). In the case of Panasonic, the core product is the smart mirror as it can be used to attract the customers towards the product. The augmented product is the additional service that is provided. For example, in this case the after sales service of the company can be considered as the augmented product. At the same time, the actual product includes the brand name. Panasonic is a famous brand all over the world and it can help in building trust among the people about the product.
SWOT Analysis
The classification of the smart mirror can be done based on the durability and tangibility. The durability of the smart mirror needs to be established so that it can be famous among the people. As stated by Dadzie et al. (2017) the durability of the product needs to be taken into account so that it does not become fragile after a few uses. In this case, electronic matters can fall into the category of waste material if it is underutilized or over utilised.
Panasonic is a vast company and the reputation it has in the market can provide it with an opportunity to expand. Therefore, the product mix can be made based on the number of units of the product that Panasonic can sell in the market. The width, line and depth of the product can be based on the requirements of the customers. For example, if customers want the smart mirror to be fit in the dressing room, then the mirror will be made with large dimensions so that it can fit in the room.
Relevant pricing strategies
The pricing strategy that can be adopted by Panasonic is the bundle pricing. According to Fan, Lau & Zhao (2015), the bundle pricing can help Panasonic to provide the customers with the smart mirror as well as relevant beauty products. This can provide opportunities for Panasonic to collaborate with shops that deal with beauty products. The bundle pricing can provide Panasonic with an opportunity to lower the price of the smart mirror and gain the trust of the customers in purchasing the product. Hence, it can be said as an effective pricing strategy for Panasonic.
Marketing/distribution channel strategy
The marketing or distribution strategy that Panasonic can adopt is the direct marketing. This is mainly because Panasonic is the sole manufacturer of the product and the direct marketing can help the company to gain more profit in the market (Aghazadeh, 2015). Direct marketing can also help to interact with the customers and provide proper after sales services if required. Hence, this can provide Panasonic with an opportunity to directly serve the customers and gain feedback necessary for the improvement of the product.
Distribution coverage strategy
The distribution coverage strategy that can be adopted by Panasonic is the exclusive distribution strategy. As pointed out by Babin and Zikmund (2015) the adoption of this particular strategy can provide company with an opportunity to provide limited number of sales. The adoption of this strategy can help Panasonic to provide the smart mirror to a limited target market. For example, the company can provide the smart mirror as an exclusive deal to celebrities so that the product can be tested in the market by using the feedback of people involved in the professional makeup market.
Target Market, Positioning, and Branding Analysis
Advertising can be considered as the oldest form of promotional strategy that is used by companies. In this case, Panasonic can use the advertisement promotional strategy so that it can reach mass customers. The advertisement can be displayed via television. One of the critical strategies that Panasonic can adopt is the implication of celebrities to endorse the product. The fact that the company targets such group of people makes it fitting for celebrities to be involved in the advertisement of the smart mirror.
According to Fine (2017), personal selling can involve meeting the customers face-to-face. This implies that the managers of Panasonic can meet with the target market in person so that they can promote the usefulness of the smart mirror. This can provide opportunities for more interaction with the customers and opportunities to get immediate feedback about the product can be obtained. At the same time, a deal can be made with the target market for endorsing the product in the future.
The sales promotion method is mostly targeted towards the retailers and wholesalers. It is important to understand that the sales promotion can involve a third party that may cause certain discomfort particularly while attaining profit for a company (Fan, Lau & Zhao, 2015). In the case of Panasonic the company may not want to indulge in this type of promotion as the smart mirror is not intended for the local people, at least not at the initial stage. Hence, Panasonic may not use this particular technique in order to attain more profit for the company. Therefore, the sales promotion is not an appropriate promotional strategy particularly given the fact that the target market is the celebrities and high-level income group.
This includes maintaining a professional image in public. Panasonic can implement this particular promotional strategy so that it can maintain relationship with the people and can provide a proper demonstration of the smart mirror. This strategy can be particularly advantageous for Panasonic as the relationship between the company and the customers can improve. Hence, the public relations provide a direct relationship with the advertising strategy particularly given the fact that celebrities may be recruited to promote the features of the smart mirror.
As mentioned earlier, direct marketing can be used to establish a positive relationship between a company and the customers. In the case of Panasonic, the direct marketing can help the company to establish a positive relationship with its target market. Direct marketing can help in gaining more profit and Panasonic can make necessary changes with the feedback received from the customers. However, Panasonic need to sell the smart mirror from a convenient place so that transportation or risk of any type is minimised while shifting the smart mirror from one location to another.
Marketing Mix
The digital promotional strategy involves the using television or mobile phones. As stated by Bharadwaj (2015) the digital marketing strategy involves the application of modern day tools such as social media. This can be considered as an important promotional strategy for Panasonic as the company can indulge in providing free lessons about the application of the smart mirror and the manner in which it can be used by the market. The digital marketing can be considered as the most efficient way of reaching the customers as most of the people use social media application for the purchase of electronic products. Online promotion and sale of the products can help in increasing the reputation of the company.
Other form of promotional strategy includes the traditional use of newspapers. Newspapers can be considered as form of advertisement of the smart mirror that can be adopted by Panasonic (Panasonic.com, 2018). This can help in the reduction of costs, as a limited amount of money is required for applying for an advertisement in a newspaper. Panasonic can also impose the application of email as a promotional strategy. The company can provide email to the customers that had purchased other products them at an earlier date. At the same time telephonic calls to the agents of the celebrities or to the high-salary earners can be made for the promotion of the smart mirror.
The marketing metrics evaluation tools that can be used by Panasonic include the calculation of the market share after the promotion of the smart mirror. It has been seen that the market share may increase, as the product is innovative and target the high-income level customers. Hence, Panasonic can out-compete its competitors in the manufacturing of electronic devices in the industry. At the same time, estimating the satisfaction level of the customer can also be adopted as marketing metrics for Panasonic.
Conclusion
Therefore, it can be concluded that Panasonic can gain success with the promotion of the smart mirror in the Australian market. The support of the Government and the society along with the proper use of promotional tools can help the company to gain a competitive advantage in the market. The effective manner in which the marketing mix elements are used highlights the experience and the need for success of the company. The competitor analysis and the SWOT analysis show the capabilities that Panasonic has the advantages it may have in the market of Australia.
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