Kameda Seika case Analysis Case Solution
Plan to increase the Sales
The first and foremost thing that can help the company in increasing its sales and profitability in the US market is to meet the consumers’ demand, increase the market share, put efforts in the products’ promotional strategies, work on the availability of suppliers and keeping close eye on the competitors’ analysis. Let’s discuss these one by one:
Kameda’s promotional budget was very low and it was not doing any efforts to increase its product awareness. The firm does not have any separate marketing department nor does it have any marketing team to handle its marketing related issues. The consumers had misconceptions regarding the products which kameda was offering. The promotional activities are the mode of communication between the consumers and the firm. The firm needs to invest in its promotional strategies to communicate the health benefits of the products offered by the firm. Though, the company has few options execute this plan at a lower cost in low cost through social media advertisement. The social media advertisement is a very low cost strategy.
The young generation follows the social trends and social media, and the promotions through social media can provide better results than the print media and digital media. The advantages of social media marketing are low cost incurrence and the provision of multiple options for the firm’s marketing. The social media promotional activities provide better and quick results in the promotional activities. The returns of social media marketing are higher and the time frame is short. Kameda Seika could use its market research in the first couple of weeks to see the efficiencies of using this alternative method in order to obtain more demand. Customers from social media marketing tend to be more loyal, following which the reputation of the brand could also increase.Whereas if we talk about the disadvantages the social media marketing, it consumes long time and requires continuous check and balance to maintain the promotional activities. Social media is an open platform that can result in the negative marketing sometimes, because of the consumer’s negative reviews.
The company also has the option of advertisement through the product placement. This promotional option can provide an opportunity to kamedain bringing its brand at the same level of its competitors’ brands. The product placement among the big brands can increase the chances of the product of being picked from the store’s selves by the customer, which will reduce the competition to some extent. This placement will grab the consumer’s attention and it will make also build a positive brand image. Whereas, the disadvantage of this strategy is that it is costly for the firm, but the returns are worth making the investment in this strategy.
The competitors Analysis
The firm needs to focus on its competitors.The firm is competing in the market and is willing to keep updates regarding what its consumers are doing. The competitor’s analysis will help the firm in analyzing the sales of the particular product and how the consumers react to the particular product or services. These analysis help the firm in analyzing the strength of the competitors and the product placement. So, these are some of the factors that could have an impact on your company’s sales. If you take care of them, your business will be on the right track to achieve success.
The Market Share and Availability of suppliers
It is very important to maintain good relationship between the suppliers. The availability of consumables, components and raw materials can affect the products’ sales. If the product’s quality is best and has reasonable prices; it will surely attract the consumers more than usual.
The competitors and other Japanese firms in the US market were successful due to their low price strategy, but Kameda was unable to follow this strategy due to its high manufacturing cost, raw material cost and retailing cost. The firm has to invest in manufacturing and distribution plans in order to reduce the cost of its products and to lower the prices to compete with its competitors.
In order to remain successful and competitive; the company should focus on the health issues faced by its customers. It is important for the company to understand the customer’s demands. Kameda should produce glutton free and oats based products, which could fulfill the customers’ needs,considering their health issues as a major concern. The company should promote its products on social media by implementing the strategy of marketing its products through social media marketing. The company can also approach those influencers who have significant amount of followers to promote its products on their social media handles, through which the company’s products can get more recognition and can also expand its customer-segment, which will ultimately increase Kameda’s sales. The management should adopt these options within the limited time which the company is left with…………………..
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