CASE 2 Samuel Appiah

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School

Clayton State University *

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Course

6100

Subject

Marketing

Date

Apr 3, 2024

Type

docx

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Uploaded by samieffff

SWOT Analysis for Johnson Design Strengths: 1. Innovative Product: Johnson Design has developed an innovative product, the "Dry Wall Fix," which fills a significant gap in the drywall repair market. 2. Patents: The company holds patents for its drywall repair clips, providing protection from competitors. 3. Positive Customer Feedback: The product has received positive feedback from contractors and Handyman Journal subscribers, with a 97% approval rating. 4. Cost-Efficient Production: Manufacturing in China has enabled cost-effective production of the clips. 5. Distribution Channels: The company has successfully secured distribution through Orgill, Inc., and gained recognition through awards and media exposure. Based on the strength analysis, Johnson Design has an innovative product with positive feedback and patent protection. They have established distribution channels and a cost-effective production process. Weaknesses: 1. Initial Production Challenges: Johnson Design faced difficulties in the initial production of the clips, leading to financial losses. 2. Limited Marketing Budget: The company lacks a substantial budget for marketing and advertising, limiting its reach to potential customers. 3. Failed QVC Venture: The QVC partnership did not yield the expected results, resulting in a significant financial loss. 4. Dependence on Distributors: Relying on distributors like Orgill Inc. may limit control over sales and market penetration. 5. Competitive Market: The market for DIY and professional home repair products is highly competitive. Based on the weakness analysis The company faced production challenges, limited marketing resources, and unsuccessful ventures with QVC. They are also dependent on distributors. Opportunities: 1. Expansion of Product Line: Johnson Design could consider expanding its product line to include complementary products, creating a comprehensive drywall repair kit. 2. Targeted Marketing: The company could explore targeted marketing strategies, such as online advertising and social media, to reach a wider audience.

3. Partnerships with Retail Giants: Pursuing partnerships with major home improvement retailers like The Home Depot or Lowes could significantly increase distribution and sales. 4. Educational Content: Providing educational content, such as online tutorials or guides on how to use the "Dry Wall Fix" could enhance product visibility and trust. 5. Export Markets: Exploring international markets could open up new avenues for growth. Based on the opportunities analysis there are opportunities to expand the product line, pursue partnerships with major retailers, explore international markets, and invest in targeted marketing and education. Threats: 1. Competitor Innovation: Competitors may develop similar drywall repair solutions or workarounds that could diminish the uniqueness of the "Dry Wall Fix." 2. Economic Downturn: Economic downturns can impact consumer spending on home improvement and repair products. 3. Regulatory Changes: Changes in regulations related to home repair materials or practices could affect product compliance. 4. Supply Chain Disruptions: Disruptions in the supply chain, such as trade disputes or logistics issues, could impact manufacturing and delivery. 5. Market Saturation: The market may become saturated with similar drywall repair products, making it challenging to stand out. Competition, economic fluctuations, regulatory changes, supply chain disruptions, and market saturation pose potential threats to the company's success. Based on the information provided, can you tell me how much Johnson Design has invested in the "Dry Wall Fix" product thus far? Are the expenses you listed the only costs incurred by Johnson Design and Steve Johnson for the product? If there are other expenses not listed here, please provide more details. According to the case, Johnson Design has invested a total of $20,000 into machining for clip production (which failed), $16,000 into a bagging machine for packaging (which also failed), $35,000 for the initial order of "Dry Wall Fix" clips from China, and $150 per month for inventory storage. Additionally, there were costs associated with attending trade shows like Orgill and QVC, as well as costs for creating and packaging the QVC drywall repair kits.

It's worth noting, however, that these expenses may not be all-inclusive. There could have been additional costs, such as marketing or legal fees, that were not explicitly mentioned in the case. As a result, the actual total investment in the product is likely higher than what we know currently. What strategic alternatives did Steve Johnson have after inventing the "Dry Wall Fix"? Strategic Alternatives for Steve Johnson:  Continue pursuing partnerships with large companies (e.g., Home Depot, Lowe's) for distribution.  Explore online sales channels and e-commerce platforms.  Target a niche market within the construction industry (e.g., drywall contractors).  Invest in marketing and advertising to increase product visibility.  Consider alternative packaging options preferred by contractors.  Seek additional funding or investment to support marketing efforts and expansion. Based on your SWOT Analysis, what do you believe was the best strategic option for Steve after inventing the 'Dry Wall Fix"? After conducting a thorough SWOT analysis, it appears that the most viable strategic options for Steve Johnson following the invention of his 'Dry Wall Fix' are as follows:  Continuing to form partnerships with major companies, especially those with significant distribution networks in the home improvement industry.  Exploring online sales channels to expand his reach to a broader audience.  Focusing on marketing efforts to enhance awareness and drive demand for the product.  Evaluating the possibility of diversifying the product line or expanding into related repair and home improvement products as a means of increasing revenue streams. Do you think that Steve made any mistakes in researching the market and/or marketing his product? Market research and marketing can be tricky, and there are several potential mistakes that companies can make. These are some of the things I think Steve made mistakes with;  Overestimating the initial success of a product based on early awards and recognition. It's important to remember that early excitement doesn't always translate into sustained success.  Focusing too heavily on trade shows without a clear distribution strategy. While trade shows can be a great way to generate interest in a product, they won't be effective if there isn't a clear plan for getting the product into the hands of consumers.

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 Not exploring alternative packaging options for contractors sooner. Contractors have unique needs when it comes to packaging, and failing to consider these needs early on can lead to missed opportunities.  Failing to secure a larger order or commitment from QVC before investing in the production of drywall repair kits. It's important to have a solid plan in place before investing heavily in production.  Not adequately pursuing opportunities for partnerships with major retailers like Home Depot and Lowe's. These partnerships can be invaluable for getting a product in front of a large audience.  Underestimating the challenges of breaking into the contractor market and targeting the right audience. This can be a difficult market to crack, and it's important to do thorough research and target the right audience to be successful.

CASE 2 Samuel Appiah

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