Marketing and Management Strategies for Lee Valley Tools

This presentation discusses the strengths, weaknesses, opportunities, and threats of Lee Valley Tools and proposes strategies for cost leadership, product differentiation, and customer relationship management. It also covers segmentation, targeting, and positioning strategies, as well as a proposed CSR strategy. The marketing mix strategies for the proposed rotary sharpening tool include product, price, promotion, and place. References are provided for further reading.

Marketing and
management

Introduction
 It is becoming important for the organizations to
initiate distinctive to stay ahead in the market.
 Lee Valley Tools are one of the leading tool
manufacturers in Canada.
 They specialize in domestic gardening tools and
woodworking tools.
 Lee Valley Tools were set up in 1978 in Ontario,
Canada by Leonard Lee

Cont.
 Currently they mainly cater to the domestic
consumers.
 It is proposed to manufacture rotary sharpening
tool.
 This will help them to cater to different
customers segments.

Determination of the
internal environment
 Strengths
 Lee Valley Tools are having expertise in
selling and marketing tools.
 Lee Valley Tools are having favorable
marketing penetration in Canadian market.

Cont.
 Weaknesses
 Presence of number of global brands.
 Lee Valley Tools are not having expertise in
manufacturing sharpening tools.
 They are more oriented to Canadian market
that will restrict their market potentiality.

Cont.
 Opportunities
 Entering in the global market especially in
developing market.
 Development of economy.

Cont.
 Threats
 Economic recession
 Introduction of more sophisticated and
sustainable products.

Sources of competitive
advantages
 Cost leadership
 Cost leadership will be followed in order to stay
ahead in the competition in terms of the price.
 Cost leadership will be maintained by initiating
lean manufacturing.

Cont.
 Product differentiation
 Product differentiation will help Lee Valley
Tools to offer distinctive product to the
customers.
 Lee Valley Tools should come up with more
portable sharpening tools for domestic usage.

Consumer buying
decision
 If the buyers are having the requirement of
having personal sharpening tools, then only they
are going to buy from Lee Valley Tools.
 Should initiate more of external search by
means of promotion and advertisements to
provide customers with information.
 The point of difference will determine the
preference pattern of the customers for the
tractors of Lee Valley Tools during the
evaluation.

Cont.
 Lee Valley Tools should always update their new
products in order to meet the changing demand
of the customers.
 It is important for Lee Valley Tools to offer
effective after sales service to the customers to
have positive post purchase behavior of them.

Segmentation strategy
 Lee Valley Tools will follow the mass market
segmentation strategy.
 In terms of geographic segmentation, Tier I
cities in Canada will be targeted at the very
first stage.
 In terms of demographic segmentation, age
group between 30 to 65 will be targeted.

Targeting strategy
 Lee Valley Tools will initiate cost leadership and
differentiation strategy in order to cater to the
target segments.
 The first phase of the targeting strategy will be
gathering feedback from the segmented set of
customers in order to identify their preference
and requirement patterns.

Positioning strategy
 Lee Valley Tools are having positive brand
value and image in the market in their
current operating areas.
 Lee Valley Tools should have affordable
image rather than having premium image.
 The major objective will be to increase the
value for the customers.

Proposed CSR strategy
 Lee Valley Tools should be more domestic
customer oriented.
 Lee Valley Tools should initiate training
schools for the customers in order to aware
the customers regarding the best way of
using sharpening tools.

Customer relationship
management
 Point of sale and kiosk will be extensively used in
order to gain customer data.
 Kiosk and physical point of sale will help to
gather the date directly from the customers.
 Customer loyalty program will be initiated
according to the customer data.
 Further product development will be initiated
based on the feedback gathered from the
customers.

Marketing mix strategies
 Product
 Proposed product is specialty product
 Core element of the product is to assist in
sharpening.
 Actual product is the tool being provided.

Cont.
 Price
 Sales oriented pricing strategy
 Market penetration pricing
 Factors that can influence the price are cost
of production, economic condition of market
and demand of the product.

Cont.
 Promotion
 Advertising, public relation and sales promotion.
 Advertising will help in reaching out to
maximum number of customers.
 Public relation will help to cater and
communicate with the rural market effectively.

Cont.
 Place
 Retail channels will be used to cater to the end
customers.
 More focus will be given on brick and mortar stores.
 Wide range of tools will be showcased in the stores.

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