Pauline’s Pierogi Pleasures Case Study
As it has been defined in the case study, Bob is searching expansion for his business venture through approval of a loan and the adoption of a viable marketing plan. Main targets are stated to be raising consumer awareness and interest in the pierogi sector in the South-eastern United States. For that end, the entrepreneur yet lacks analysis in such important branches of marketing as environmental scanning and SWOT analysis.
First, it is worth defining major macro-environmental variables, which Bob should track in the future. One of them is the number of competitors present in the market. Such knowledge will allow better planning of the scope and timing of the future market interventions. Second is the current presence and dynamics of appearance of supplements in the market. In case of the frozen offerings of the company it may be companies producing frozen ravioli or other similar semi-finished products. Third macro environmental variable is the growth of the pierogi sector overall. This latter factor will help the considered enterprise to define, what increase in economy of scale they can expect in the nearest future given the market tendencies.
Considering the existent threats, Bob’s company should be aware of the increasing competition in the sector. New companies are coming, and those which exist so far have a more customer-loyal pricing strategy, while Bob’s decision to incorporate value pricing is based on his subjective opinion, not supported by appropriate research. One more potential threat covered in the case study is that people in the area are not familiar with pierogi as a type of product offering. This lack of familiarity makes a company underperform in terms of sales, compared to its full potential. Third threat is the yet non-tackled niche of organic products.
This is especially important given that US citizens are becoming increasingly concerned with adhering to the healthy way of life principles and therefore give their preference to organic types of products. These trends are revealed in a number of academic papers, including Bazavada and Pauwels (2013), or van Herpen et al. (2012).As for the opportunities, one of them lies in the sphere of expanding the product mix offering. As it is often done in the classical economic strategy, it may be worth considering the dimension of complementary goods, in addition to starting organic production and increasing the variety of fillings. Another opportunity is novel distribution channels, for instance, online shop which would enable online ordering of pierogies with subsequent delivery to customers.
Third opportunity is the technological advances, which have given a tangible boost to the food sector in the recent decade.In order to address the threat that people in the area have low familiarity with the product, Pauline’s Pierogi Pleasures can establish a series of cookery master classes, either conducted for free as a pure advertising campaign, or as a separate dimension of business activity. In the latter case, such interventions are characterized by relatively low costs which result in a high profit margin.
Strategic action …