Marketing Strategies and Customer Analysis

The assignment explores various marketing strategies employed by organizations to gain a competitive edge. It delves into customer analysis, emphasizing the importance of understanding buyer behavior and preferences. The analysis covers different types of buyers, the influence of external factors like technology and economics on purchasing power, and the need for businesses to adapt their products and services to changing market demands. The assignment also examines how companies can leverage economies of scale by targeting multiple quality-based segments within a market.

Case Study
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Answer 1
According to information given in the first paragraph of page number one on the case
study, Aura has basic aim to create goodwill in the marketplace by expanding business on large
scale. Company basically focuses upon targeting middle class people and offering them good
quality of products and services in the marketplace. However, name of the corporation was set
like it sounds as foreign company so as to create psychological impact among buyers.
Furthermore, Aura's strategy was to be the representative of MENA region (Middle East and
North Africa) to cater need of domestic market which is driven by sizeable young population. It
was done in accordance with research and development activities through which business can
easily create its competitive edge in the marketplace. Apart from this, management of business
analyzed other strategies adopted by competitors and accordingly modify the existing one for
attracting more and more buyers. Hence, its strategy statement is to “to create value for money
by offering distinctive product for business and consumers”.
Answer 2
According to the information given on page number two under heading global market
Initially Aura used to sell home furnishing items in the market by targeting to young buyers and
then gradually it started to analyze the strategies adopted by competitors like IKEA and Pottery
Barn so as to product Western-style furniture. However, basic focus was on giving brand
distinctive style to end users. The product range covered full line of home fashion such as dining,
living, tableware and home accessories as well as bedroom etc. At this juncture, company tends
to focus upon offering new products frequently but then it started to adopted strategy like Zara.
Currently company focuses upon building good image of the business by focusing upon online
marketing. It facilitates to increase customer base as by October 2014 here were 56337 followers
was there in Instagram and 2237 like on Facebook page. Not only this, but presently corporation
also started business to business operation for increasing customer base and increase overall rate
of return.
Answer 3
As per the information given on page number 6 under heading marketing efforts The
Aura's status position supports the strategic statement to a great extent as it focuses upon offering
high quality product with continuous modification in its existing services. It facilitates to meet
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expectation of young buyers because brand distinction is visible. Furthermore, presently Aura is
targeting to hotels, wedding planers and other related business through which its overall rate of
return can be increased and competitive edge of the business can be generated. Furthermore, the
selected strategy facilitates business to go in the upward direction by taking into account research
and development activities. It leads to deliver good quality of services to large number of young
buyers and ensure profitable expansion of the Aura. Though, business is moving in the other
direction as well because thinking to target high end customers also in order to product luxurious
products.
Answer 4
As per the information given on page number 6 under heading marketing efforts Aura's
CEO should focus upon research and development activities through which customers can
provide their positive or negative feedback. It will be effective to focus upon lacking areas of
business. Furthermore, business environment should be analyzed properly so as to ensure
optimum utilization of limited resources effectively in order to create goodwill of the business in
the marketplace. In addition to this, corporation can access to cost effective sources of finance
for the purpose of expanding business in the marketplace with increased rate of return. However,
skilled and competent workforce should be hired who can effectively contribute towards
achieving long as well as short term objectives of the business. In such manner, it becomes
feasible for Aura to accept any sudden changes and ensure consistent rate of return.
Answer 5
According to data given on page number 6 under heading Aura’s competition, generally
low status competitors do not move up market because of higher risk. Though, they understand
that there will be high margin but shift in their focus might affect existing profitability of the
business. However, organizations with sound research and development can easily move to up-
market with good prediction in the current market. It aids to increase their attention towards
more than two markets and accordingly customer can be increased. It can be critically evaluated
that in case Aura move towards to high end buyers then existing buyers might get affected. This
happens because company will shift its entire focus upon attracting high end buyers where poor
outcome will have greater impact on its overall profitability. It shows that, low status competitors
generally face higher risk in moving up-market.
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Answer 6
As per the information given on page no. 5, it has been analyzed that generally high-
status competitors with their cost advantages do not scoop the market. This is because they need
to focus upon different aspects such as advertisement, retention of consumers and expansion of
business. Here, they cannot survive in the marketplace without putting efforts. Furthermore,
business adopt effect strategies in order to increase customers but higher competition in the
marketplace affect their operation to a great extent. Owing to this, it becomes crucial to be ready
for accepting potential changes taking place and accordingly marketing strategies and other
related aspects are modified. In addition to this, common issue related to high cost of production
tends to reduce rate of return. It is because different internal and external factors such as
political, technological and economical changes also affect their overall business activities to a
great extent.
Answer 7
An example of retail sector can be taken under which large number of competitors are
available in the marketplace for catering need of different types of buyers. Here, business need to
focus upon external factors such as technological, political and economical as well as other
related aspects and accordingly they need to implement those potential changes. It proves to be
effective for them to be in the market with increased rate of return. It can be critically evaluated,
that adverse changes in the marketplace affect purchasing power of buyers and in turn sales
turnover is reduced. On the other hand, hospitality sector can also be taken under which
changing preferences of buyers has direct impact on manufacturing of vehicles. For this purpose,
sector need to incorporate those changes and accordingly product is provided to them.
Answer 8
According to the information given on page no. 8, it is analyzed that an organization can
compete multiple quality based segments of a market to take advantage of economies of scale. It
is because company will try to focus on that particular market whereby customers can be
increased, However, in case customers are increasing for particular products and services then it
becomes easy to reduce the cost of production. At the same time, business will get economies of
scale by producing more products and services at a time and selling of the same on right time. It
would be effective to determine long run growth of business with increased rate of return. Apart
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from this, corporation can be able to focus upon specific requirement of customers in order to
create their goodwill in the marketplace. Moreover, business also focus upon inclusion of skilled
and competent workforce so they can put efforts to increase sales turnover effectively. Therefore,
multiple quality based segments are considered in order to get economies of scale.
Answer 9
According to the information given in case study on page number 3 under section
millennial customers, Aura uses effective social media strategy in order to attract more buyers.
However, it can also approach customers on its profession site in order to get their feedback
effective and get their issues resolved on right time. Here, Aura can target young customers by
developing application on mobile phone. It give easy access for buyers to view different products
and services offered by corporation. It leads to create good image of the business because
customers will directly approach via developed application and in turn sales turnover can be
increased. In addition to this, special offers can be provided by using social media whereby it
becomes effectively to retain them for longer time span. Apart from this, attractive content
should be prepared and Facebook can be designed to share the success story of company among
large number of stakeholders.
CONCLUSION
The aforementioned report concludes that marketing strategies are helpful for business to
create competitive edge in the marketplace. However, businesses focuses upon catering need of
buyers by taking into account economies of scale and cope up with changing scenario. It can also
be concluded that low-status competitors do not move up market because of high risk and
insecurity.
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