Slanket Case Study: Marketing Analysis

Summary

Slanket has been operating business since January 2006 and has been experiencing steady growth in revenues since its conception. However the entrance of competitors has prevented Slanket from realizing forecasted revenues. At present, the most important goal for Slanket is to increase global revenues and the main impediment to achieving this goal is low consumer awareness of the Slanket.

The best solution for achieving the above goal therefore is to pursue Direct Response Television marketing and promotion to potential customers.

Problem Analysis

Slanket plans on expanding the business through diversifying and developing new products for consumers. The most important goal is therefore to increase revenues which will allow for Slanket to grow by supporting offshoot products and line extensions.

Low consumer awareness is the key impediment because blankets with sleeves are in high demand; however, majority of consumers are not aware of the Slanket brand. Therefore once consumer awareness is increased, sales revenue should also increase.

Solution Analysis

Outline

We can consider the following alternative strategies as possible solutions:

• Aggressive online marketing (Existing Market) - The use of online marketing including traffic direction to the Slanket website will increase the number of persons that visit the website. This will also provide free advertising through search engines regardless if is a sale is finalized. This solution should increase revenues through substantial market growth; targeting a wide range of internet users.

• Direct Response Television (New Market) - Using the Direct Response Television strategy, Slanket will be able to access a large new audience and provide the Slanket brand with exposure to a different set of consumers. The response to DRTV has been high which should increase purchase frequency and market share therefore increasing revenue. However, the Direct Response Television Strategy usually includes some hidden charges that consumers may find unethical. Consumers that have paid hidden costs before may be hesitant to repeat purchase.

• Radio Advertising- The use of Radio advertising is a possible solution to increasing company revenues. It is easy to implement and will reach persons who are not computer literate which may be include a large audience previously untapped. However Response rates to radio advertisements are low and may not improve revenue as expected.