SarahParris-Yeti

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University of Alabama *

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490

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Marketing

Date

Jun 26, 2024

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docx

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Uploaded by AmbassadorRhinocerosPerson1138

1. Drivers of Change: - Increasing concerns for environmental stability: Consumers are beginning to be concerned about what is happening to the earth. - Consumer demand for portable and easy cooling: Consumers want something they is easy to carry to events but will last for a long period of time. - Advancements in technology and materials. As technology changes, consumers expect products to improve as well. Consumer demand for portable and easy cooling options is the strongest driver of change for most consumers. Key Success Factors - Product Quality: Yeti has a reputation for making sturdy, high-quality equipment, and coolers. Their products are designed to endure harsh environments and hold ice for long periods. - Product Innovation: Investing continuously in product innovation allows Yeti to stand out from the competition. They launch new features, innovations in technology, and styles in response to changing consumer demands and tastes. Because of its dedication to innovation, Yeti can keep one step ahead of its rivals and have a dominant position in the market. - Direct to Consumer Sales Strategy: Customers dealt with company directly. Gross margins were higher because there was no middleman taking part in profit. - Brand Recognition: In the equipment and cooler industries, Yeti has built a solid name as a brand. Numerous Yeti consumers frequently turn into brand ambassadors, endorsing and endorsing the merchandise to others, therefore increasing the brand's reputation. - Customer Loyalty: Their constant dedication to providing dependable and durable products has resulted in a loyal customer base. 2. STRENGTHS - Yeti's competitive advantages and strong resource positions have helped explain its success. These include its well-known brand, reputation for producing high-quality goods, and creative designs that satisfy customer needs. Furthermore, Yeti's effective manufacturing and distribution of its products is made possible by its strong supply chain and distribution network. WEAKNESSES - Yeti's biggest weakness is the high price of its items. Lower-income groups cannot become consumers due to high prices. OPPORTUNITIES - Technological Innovations: Invest in technology that improves their products to give a competitive advantage and reinforce their position as brand. THREATS - Competition: If Yeti does not keep innovating, the industry's increased competition may threaten its market share. These factors will have an effect on Yeti's profitability in the future, depending on how well it can innovate and adjust to shifting market conditions.

Takeaway: In the long run, the business will probably be profitable and able to hold onto its position as the industry leader if it can effectively navigate these difficulties and keep up with customer expectations. 3. The critical components of Yeti's competitive approach in the equipment and cooler market are unique products, superior quality, and well-known brand awareness. In addition to being recognized for producing high-quality, long-lasting goods that satisfy the demands of both professionals and outdoor enthusiasts, the firm is also known for its creative features and material designs that distinguish its products from those of its rivals. Through collaborations with other companies and brands and focused marketing initiatives, Yeti has also established a strong brand reputation. The industry's competitive environment strongly fits Yeti's competitive strategy. The sector is known for its intense rivalry, with several businesses providing comparable goods at various price ranges. Yeti can set itself apart from rivals and draw in customers prepared to spend more on upscale goods by emphasizing product quality and distinctiveness. Furthermore, by focusing strongly on marketing and brand awareness, the firm fosters client loyalty and sets itself apart from competitors in the market. Broad Low-Cost Broad Differentiation Focused Low- Cost Focused Differentiation Best Cost Strategic Target A broad cross-section of the market A broad cross- section of the market A narrow market niche where buyer needs and preferences are distinctively different. A narrow market niche where buyer needs and preferences are distinctively different. A broad or narrow range of value-conscious buyers. Basis of competitive strategy Lower overall costs than competitors Ability to offer buyers something attractively different from competitors’ offerings. Lower overall cost than rivals in serving niche members. Attributes that appeal specifically to niche members. Ability to incorporate upscale features and attributes at lower costs than rivals. Product Line A good basic product with few frills (acceptable quality and limited selection). Many product variations, wide selection; emphasis on differentiating features. Features and attributes tailored to the tastes and requirements of niche members. Features and attributes tailored to the tastes and requirements of niche members. • I tems with appealing attributes and assorted features; better quality, not necessarily best. Production Emphasis A continuous search for cost reduction without sacrificing acceptable quality and essential features Build in whatever differentiating features buyers are willing to pay for; strive for product superiority. A continuous search for cost reduction for products that meet basic needs of niche members. Small-scale production or custom-made products that match the tastes and requirements of niche members Build in appealing features and better quality at lower cost than rivals. Marketing Emphasis Low prices, good value. Try to make a virtue out of product features that lead to low cost. Tout differentiating features. Charge a premium price to cover the extra costs of differentiating features. Communicate attractive features of a budget-priced product offering that fits niche buyers’ expectations. Communicate how product offering does the best job of meeting niche buyers’ expectations. Emphasize delivery of best value for the money.

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