Reading Matching
Look at the statements below and the advice of four market analysts about a company's future strategy on the opposite page. Which analyst's advice (A,B, C or D) does each statement (1-8) refer to?
1. The kind of promotion Dexter has relied on so far is unlikely to influence its new target customers.
2. Although Dexter can probably extend its range, finding enough capital will be difficult.3. Dexter needs to think carefully about the brand image of its products.
4. Supplying niche retailers could give Dexter access to a new group of customers.5. Dexter should consider working with a company experienced in advertising on a large
scale.
6. Increasing the margin on the current range is an area Dexter should concentrate on.
7. Dexter's approach to doing business has enabled it to compete with larger companies.
8. It is necessary to solve the problem of low profitability.
What next for Dexter?
Dexter new shaving cream is a hit in the UK. The company's next challenges are to launch out into new products and to succeed in America. Four top analysts give their advice.
A. Joe Hutchinson
For Dexter, the hardest part is yet to come. Many British companies fail in the U.S. and Dexter is, unsurprisingly, finding it tough. And what's the sense in seeking cash for expansion into new product areas while having to support a loss-making American operation? There are more important things to do with the money, for example dealing with the company's low profitability a 2% return on sales. It might well be time to look at a few
cost headings.
B. Dan Valero
Breaking out of the shaving cream market should not be impossible for Dexter, but raising the money to launch the products is the real challenge. Dexter might seek a partner with the promotional skills needed for mass marketing, or focus on product development and franchising. They ought to consider whether they should continue to attack the American market, and, if so, they should seek a local partner. If control is a priority, the European
market may be worth a look instead.C. James Sunderland
Dexter's entrepreneurship, which has helped it get a share of a market previously dominated by two players, will be the key to further growth. The American market is particularly challenging, but a possible strategy is to target distributors to American retailers or a British-based subsidiary of an American parent. Another approach may be to form alliances with like-minded cult fashion or sports outlets and attract a slice of the US market open to trying new products.
D. Melanie Laconte
Dexter intends to increase its market share, and one way of doing this is to introduce new products, perhaps aimed at women, into its existing range. However, its managers must be aware that the women's grooming market is crowded, and that to extend here they must remain loyal to the values of their existing range while still proving attractive to the new sector. They need to take a hard look at how to generate demand; so far it's worked well through word of mouth but the average American buyer expects a huge advertising
campaign.
Letter (A, B, ACD....)
Remove Solution
Number(1,2,3...)
Add Solution
