Essays on SportUNE - Marketing Case Study

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The paper "SportUNE - Marketing " is a good example of a marketing case study.   Following the strategic marketing plan (part I), this paper outlines the strategic marketing plan (part II) for SportUNE. The plan helps to understand the process of formulating, implementing and measuring marketing strategies and enhance the understanding of the various strategies for new market entries, growth markets, mature and declining markets and for the new economy in sustaining competitive advantage over the product life cycle. The relevance of a Pioneer/Follower Strategy Pioneer or follower strategies are particularly important aspects to mull over when entering a new market.

The newness of entering a market can be broadly classified into six categories as indicated in the diagram below; Newness to the company High New product line   New to the world product Revision or improvement To existing product Addition to the existing product line Cost reduction   Repositioning It is always challenging to introduce a new product to the market. This would require SportUNE to spend heavily amid an uncertain environment and risk of failure. The marketing difficulty involves promoting the product and convincing target clients to adopt it. However, the challenges depend on the newness of the product to the company.

This is where SportUNE would either choose to be a pioneer or a follower (Knuutila, 2003). Porter (1985) notes that pioneers see their advantage as being the first in the market. Pioneers can be respected and they create a name in the market that will spawn word-of-mouth effects. Just the once consumers use the pioneer’ s product, they are likely to pay more for it than for adding new products. Moreover, the pioneer may well conquer the desired market spot. Pioneers are likely to incur fewer production costs than those for followers through the purported experience curve effect that boosts the pioneer’ s cost-benefit and profit prospects.

Research has also shown that order of entry can considerably affect a firm’ s feat in the marketplace; pioneers delight in durable competitive advantages over followers that decode into greater market share as well as profitability. Moreover, pioneering is a preferable strategy given the prevailing changing and competitive business environment. First entrants encounter less struggle among prospective customers, particularly those regarded as early adopters. This is because a pioneer has the capacity to ‘ skim off’ initial adopters.

Also, being a pioneer points to a high grade of consumer mindfulness that leads to product experimental, which, given positive usage or ingestion experience, results in constant repurchase conduct to curtail consumer superficial risk and information expenses. Upon establishing this pattern, consumers possibly will be unwilling to change brands upon late entry of the other brands. Porter (1980) lays emphasis on the barriers to entry that give pioneers integral benefits over probable entrants. Barriers to entry as well pull out the lead time stuck between an organisation’ s head start and the rejoinder by followers.

This lead-time empowers the pioneers to benefit in two ways. At first, at the time when there is no competition, pioneers enjoy monopolistic powers that they may well exercise to achieve greater profits than would be realised in a competitive market and may possibly as well expand the size of the overall market. Two, even after competitors come in, pioneers benefit from a reputable market place and learning curve economics which can sanction it to maintain a leading market share as well as higher margins.


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