Men's Shaving Gel, Beer, Shampoo, Shredded/Grated Cheese, Refrigerated Orange Juice, Men's Razor-Blades, Women's Razor-Blades, Toothpaste, Canned Soup, Coffee, Potato Chips, and Alkaline AA Battery are among the twelve studies that have attempted to analyse the competitive profile of US consumer markets.
Porter associates a large market share with a cost leadership strategy, which
is based on competing on a lower price than the competitors. Customer
perception of quality, rather than low cost, should be the foundation of
competitive strategy, since it is considerably more important to long-term
competitive position and profitability than any other element. As a result, a
superior alternative is to provide greater quality in comparison to the
competition.
In most consumer markets, a company seeking market share leadership should
target the middle class by competing in the mid-price segment and providing
quality that is superior to that of the competition: at a slightly higher price
to convey a sense of quality and to ensure that the strategy is profitable and
long-term sustainable.
Quality, on the other hand, is a tough term for most people to grasp. As a
result, people frequently utilise relative price and a brand's reputation as
indicators of quality.
In 2008, the overall sales of men's gel in the United States were $ 131 million. We discovered that the 7-oz Gel was the most popular size, with $116 million in sales in 2008. As a result, we've concentrated our investigation on this bundle.
We evaluated two hypotheses using
Hierarchical Cluster Analysis: (1) that the market leader is likely to compete
in the mid-price group, and (2) that its unit price is likely to be greater
than the nearest competitor.
For 2008 and 2007, the results supported both Hypothesis I and II. The
mid-price segment included both the market leader Edge and the runner-up
Gillette Series. Furthermore, the unit price of Edge was higher than that of
Gillette Series, as we have hypothesised.
We found that relative price was a strategic variable, as hypothesised.
We also discovered five strategic groups in the industry.Author (S) Details
Y. Datta
College of Business, Northern KY University, Highland Heights, KY 41099, USA.
View Book :- https://stm.bookpi.org/IEAM-V12/article/view/2075
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