Free Sample: Identifying Target Markets paper example for writing essay

Identifying Target Markets - Essay Example

To achieve these goals, whether in the long term or short term, Inter-Leisure Pty Ltd must focus entirely on the needs of the consumer. We must give the consumer what he or she needs. The company has a simple but logical approach, to create the best and most functional items available. The company needs to rebuild on its deep roots in the history of demanding outdoor lifestyle. Inter-Leisure should focus on specializing in the field of active outdoor lifestyle products, mainly in relation to surfing. This change of image can be justified with the large amount of money that has been invested into the development of a technologically advanced wetsuit.

The company in changing its image will concentrate on the development of a clothing collection, wetsuits and accessories that are surf-related. In satisfying the needs of the surfer we must endeavour to create ‘performance inspired’ products. This can be achieved in numerous ways. The company can sponsor current surfers that can not only endorse products, but can make educated suggestions to improvement or development of products.

For this, smaller specialized brands with the surfer largely in control can be installed. In this method, we can identify our product’s weaknesses or develop concept products, so that we are striving to meet the needs of our consumer, the surfer. To re-establish Inter-Leisure’s reputation, sponsorship will play a vital role. A strong affiliation with our sponsored surfers can create public knowledge, then public acknowledgement for the company. The selection of sponsored surfers is thus crucial to the company’s identity, thus the instalment of ‘champion’ surfers from both genders will help Inter-Leisure establish itself as a ‘champion’ brand.

The move to cater both genders is important in the domestic and global scene of active outdoor lifestyle having an affiliation to both genders. Whilst other competitors in the market sector choose to create an image of suiting only the needs of men, Inter-Leisure wishes to be seen as a bilingual entity. To orchestrate this successfully, the introduction of gender specialized smaller brands will be implemented.

In the pursuit of re-building Inter-Leisure’s share of the market sector, the company will resort to marketing strategies, to be mentioned later, but it is hoped the company’s new image of specialized products in an active outdoor lifestyle can determine its ultimate financial success. The goal of growing internationally must be only secondary, as the domestic market will be the initial building block of success that Inter-Leisure plans to develop.

Situation Analysis

The market sector regarding active outdoor lifestyle related products contains seven main competitors, including, the market dominating Quicksilver, followed by Rip Curl, Billabong, Rusty, Inter-Leisure, O’Neill and Reef. Inter Leisure with its new change of image and thus success, is hoping for a massive twenty percent increase in the next ten to fifteen years. Our main objective is to attack companies Rip Curl, Rusty and Billabong that have a larger but within distance market share advantage. Inter-Leisure has selected these companies primarily on the basis of weaknesses and insufficiencies within them.

As for the other companies they are seen to be either in a position too strong or ineffective. Quicksilver is deemed way ahead of its competitors for the time being, thus a serious assault by Inter-Leisure would be ill-advised as the company would be unable to sustain itself financially in creating an explicit, public battle with Quicksilver. Reef and O’Neill are seen too inferior to reckon with. Taking over their market share once Inter-Leisure has grown is an option, though great expenditure would be required to make positive reforms on these weaker entities. These companies like the previous Inter-Leisure were too focused on the male gender, and had a substantial smaller target market to generate profit than its other opposition.

Below is only a projected and ‘best case’ prophecy of the company’s future. This projected growth can be attributed to the instalment of a new successful image and company infrastructure at Inter-Leisure. If the company is to meet its potential growth increase figure it could then consider a serious attempt at penetrating Quicksilver’s large market share percentage. Whether this is the form of purchasing weaker companies, and then attempting major refurbishment within them, or entering ‘price wars’ to penetrate profits of Quicksilver, remains to be seen.

SWOT Analysis Strengths: Inter-Leisure’s new found strengths will come in the form of a new and improved character/image to the public. Our company will concentrate purely on the needs of the consumer, that being the surfer. To help accomplish this Inter-Leisure will seek the aid of pro-surfers with insight, to help in the pursuit of the satisfying the surfer’s needs and wants. These ‘champion’ surfers will also aid in the identity of the company, as Inter-Leisure hopes to build on a strong affiliation between itself and its sponsored surfers.

Inter-Leisure caters for both genders, with two specialized crews (companies) to focus on each gender’s needs and wants as surfers. The specialization trait of Inter-Leisure can expand its target market, as it can accommodate for several, vast kinds of consumers. The change of image may spark curiosity among targeted consumers, therefore apparent interest may aid in the initial success of the new Inter-Leisure.

Weaknesses: Inter-Leisure’s estimated growth will take considerable time, as the company deals with the change of image. Extinguishing away the company’s old, known reputation of being a weaker competitor will be a long and exhausting process. Sales have fallen, with this comes the loss of customers. The challenge is to win back these consumers and take others away from opposition. These moves for internal reform will be costly, thus the company will rely on a booming opening to help puncture the large debt.

Opportunities: Should Inter-Leisure become a successful entity and improve its position within the market sector, the chance to expand may present itself. This may be in the form of purchasing lower placed competitors and taking their market share. The idea to grow internationally may be a viable option, once again if the company increases to a financially fit state and has a reasonable domestic market share.

Threats: Main opposition will come in the form of Quicksilver, Billabong, Rip Curl, Reef, O’Neill and Rusty. Pending on internal success, certain competitors will become more apparent threats than others. Once the reformation of Inter-Leisure is complete, it is likely that other opposition may attempt such operations. The company must be ready for the repercussions of its total internal changes.