MARKETING ANALYSIS

MARKETINGANALYSIS

Nameof Student

InstitutionAffiliation

Marketing

Theproducers of the sleeveless blanket known as Slanket had this dreamfrom their early days of campus. Since the inception of the idea,this product has faced different sets of challenges. Therefore, thepaper explores the strengths, weaknesses, opportunities and threatsexisting in the business that Gary Clegg developed and how hesurvived the competition from the producers of the competing productsand the porter’s five forces that drove his business.

Strengths

  • The Slanket business showed a potential of surviving the competition after the owners realized that they are still gaining profits despite stiff competition. This level was made possible due to their past reputation. For instance, Clegg’s idea of writing a thank message on every Slanket made consumers have that feeling of being appreciated.

  • Gary Clegg established the selling relationship with Skymall, a televised home-shopping network, and QVC. These giants enabled him to reach a larger number of potential customers.

  • According to people’s ratings in online shopping sites, Slankets were a better product as compared to snuggies. The major factor, in this case, was because of its durability.

Weaknesses

  • The business still doesn`t have an online platform where it can hear from the whole organization. Furthermore, the owners are not risking takers to invest in approaches they do not believe can work.

  • The price of the Slanket was relatively higher than those of the competitors. Therefore, most people opted for the Snuggies which was cheap and affordable.

Opportunities

  • Clegg saw a business opportunity after finding challenges with a real blanket back in college. He, therefore, thought that people in the same situation could be comfortable putting on a blanket with sleeves.

  • The initiative must be in such a way that it goes hand in hand with the current demand of consumers. Gary Clegg had the best opportunity to make a comeback. The findings in the report show that the competitors lacked innovation. Therefore with this concept, they could make more efficient products and improve on the existing ones

Threats

  • The launch of Snuggie itself was a threat to Slankets’ sales. Snuggie gained fame because of its relatively lower price as compared to Slankets. It posed a threat because, with less amount of money, one could afford more units that he or she could have opted for Slankets.

  • The competitors used of more sophisticated ways of product promotion. This was also a significant threat to the popularity of Slankets. For instance, use of college students and celebrity endorsements passed a message that snuggies was meant for this generation.

Porter’sfive forces

Supplierpower

  • Clegg managed logistics from Denver, Colorado while design partners were in Portland and Maine under Gary`s management.

  • There was a company in North Carolina that managed Slanket’s operations and contracting with the Chinese manufacturers.

  • Another third party firm in California was responsible for warehousing and fulfillment.

Buyerpower

  • Consumers of the product are the only ones who know what they like and want from the product. Hence, Slankets still generated income despite massive campaigns and tight completion from the rivals.

Competitiverivalry

  • Key factors in the competitive rivalry were the quality and pricing of the Slankets.

  • Furthermore, promotional campaigns also helped Slanket producers to gain a good reputation and popularity on the market.

Threatof new entry

  • Finding a challenge to patent the idea meant that the industry would have so many players who will enter into price wars. Clegg, therefore, had to find ways of remaining competitive, such as using QVC.

Threatof substitutes

  • The major threat of Slankets was Snuggies, which were not exactly similar to clegg’s initial idea. Therefore Slanket business is prone to competition from more affordable products that can perform similar functions. However, Slanket manages the competition using innovation and uniqueness.

Reference

Deighton,J&amp Kornfeld L. (2010).Slanket: Responding to Snuggie’s Marketentry. HBS

No.9510034. Boston, MA: Harvard Business School Publishing