How Argyle Changed the Existing Problem into a New Opportunity
Diamonds have always been associated with wealth and glamour. White diamonds are usually “promoted and marketed as a symbol of love” (Farrell-Robert 28). However, brown stones have been neglected thus making them less attractive in the global market. Many retailers have not been stocking brown diamonds because they are less profitable. Argyle embraced a powerful marketing strategy in order to emerge successful. This strategy addressed the existing problem thus making the company successful.
To begin with, Argyle decided to target a new segment using its products. The firm also portrayed its products as the best for many women. This company’s products targeted women above the age of thirty. Such individuals are usually independent and able to cater for their expenses (Sweo and Pate 69). The number of women between the age of 30 and 50 increased thus promoting the company’s business objectives. This approach transformed the problem within less than five years. The market for colored gems grew to over 200 million dollars within the same period. Argyle also reduced costs of production by cutting its gems in India. During the same period, more retailers stocked Argyle’s products thus making the firm profitable.
Characteristics of the Targeted Segment
Different theories can be used to analyze a specific segment. Marketers should identify the most appropriate segments in order to achieve their potentials (Kotler and Armstrong 19). For instance, Argyle identified a specific market segment in order to emerge successful. Porter’s 5 Forces Model is a powerful theory that can be used to analyze the characteristics of the segment targeted by Argyle (Diamond 109). The theory identifies five threats that determine the profitability of a specific segment (Kotler and Keller 72). The targeted segment is attractive because it did not have aggressive competitors. There is also no threat of new entrants (Diamond 121).
The segment does not face numerous threats from similar or substitute products. This is the case because Argyle has focused on colored stones. The fourth force is the bargaining power of the targeted customers. Most of the targeted women have adequate financial resources. This fact explains why such the bargaining power of the buyers is quite low. The segment is also attractive because Argyle is one of the leading producers of diamonds. The company is currently using powerful initiatives in order to cut costs of production (White 67). This approach has made it easier for the firm to achieve its goals. The identified market segment is also very attractive. This theory shows clearly that the above segment will eventually make Argyle more profitable.
Advantages of Choosing the Above Segment
Argyle is currently benefiting from the above market segment. The segment is characterized by wealthy women. This market segment is advantageous and will eventually make Argyle a successful company. This population has enough money to spend. The segment is “also characterized by individuals who are not after love gifts” (Farrell-Robert 89). This fact explains why Argyle’s Champagne and Cognac has become attractive in the American market. Many women above the age of 30 are also independent. This kind of freedom encourages them to indulge in different activities. Such women are also not fascinated by white stones. This segment is also characterized by an increasing number of wealthy women. This development explains why more sales are recorded every year. This discussion explains why Argyle will remain profitable in the future.
Works Cited
Diamond, Stephanie. The Visual Marketing Revolution, New York, NY: Que, 2013. Print.
Farrell-Robert, Janine. Glitter & Greed: The Secret World of the Diamond Cartel, New York, NY: The Disinformation Company, 2012. Print.
Kotler, Phil, and Kevin Keller. Marketing Management, New York, NY: Prentice Hall, 2011. Print.
Kotler, Philip, and Gary Armstrong. Principles of Marketing, Upper-Saddle River, NJ: Prentice Hall, 2009. Print.
Sweo, Robert, and Sandra Pate. International Business: A Practical Approach, New York: CreateSpace Independent Publishing Platform, 2014. Print.
White, Colin. Strategic Management, New York, NY: Palgrave MacMillan, 2014. Print.