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A popular Australian guitar manufacturer is about to enter the US market using a standardised marketing strategy - HSC - SSCE Business Studies - Question 22 - 2020 - Paper 1
Question 22
A popular Australian guitar manufacturer is about to enter the US market using a standardised marketing strategy. (a) Clarify the purpose of a SWOT analysis for thi... show full transcript
Worked Solution & Example Answer:A popular Australian guitar manufacturer is about to enter the US market using a standardised marketing strategy - HSC - SSCE Business Studies - Question 22 - 2020 - Paper 1
Step 1
Clarify the purpose of a SWOT analysis for this business.
Answer
The purpose of a SWOT analysis for the guitar manufacturer is to evaluate its internal strengths and weaknesses as well as external opportunities and threats. This strategic tool helps the business to:
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Understand its Position: By identifying strengths and weaknesses, the company can better understand its current market position relative to competitors.
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Identify Opportunities: The analysis points out potential market opportunities in the US, allowing the business to leverage its strengths effectively.
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Mitigate Threats: Recognizing potential challenges and threats enables the company to develop strategies to counteract these risks in the US market.
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Guide Strategic Planning: Ultimately, the insights gained from a SWOT analysis are crucial in formulating marketing objectives and strategies aligned with its capabilities and market conditions.
Step 2
Recommend a pricing method this business could adopt for the US market.
Answer
For entering the US market, the guitar manufacturer could adopt a premium pricing strategy. This method aligns with the quality perception of their product and targets consumers who prioritize high-quality musical instruments. The suggested approach includes:
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Market Positioning: Emphasizing the craftsmanship and uniqueness of the guitars justifies a higher price point.
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Value Communication: Communicating the value through branding, marketing efforts, and customer experiences highlights the quality, enhancing consumer willingness to pay.
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Competitive Analysis: Conducting a thorough analysis of competitors will help set a competitive yet profitable price, ensuring the brand stands out while still being attractive to target customers.