The primary goal of this paper is to determine potential reasons for the lower net revenue than it is projected and propose effective marketing strategies to resolve these problems. When observing the introduced case, it was apparent that net revenues were lower than it was expected. In general, there are several trends that can describe the situation in North America, Europe-Africa, Asia-Pacific, and Latin America. In the first place, low income was associated with an intensified rivalry of competitors with 8% market share each. Apart from the well-established loyal consumer base, the leaders of the industry had a strong reputation with 3.9/5 at a price to quality ratio while the case company had only 3.1/5. It remains apparent that brand image was one of the most defining factors for the company’s success, and an extended number of rival firms limited the operations in the market.
Nonetheless, when comparing the performance of the case enterprise with the rivals, there are some major differences in strategic decision-making. For example, the company decreased its spending on retailer recruitment while the competitors highly relied on this method. This aspect restricted the company’s marketing channels while having a negative impact on its revenue. In turn, the enterprise selected to offer high discounts to online retailers (27%), and the competitors had a tendency to have 16.2% on average. It was viewed as an additional state of expenditure that had an adverse impact on net profit. Alternatively, the company employed a cost-leadership approach when operating in different geographical locations, and it required the firm to have a price (only $1320) lower than the average one. This initiative had a crucial impact on the company’s revenues, as profit per unit was less than expected. A combination of these factors, along with the lack of worldwide recognition, had a negative effect on the organizational financial performance by increasing operational costs.
The financial projections clearly show that the company vehemently invested in SEO and website development. Nonetheless, the primary cause of its low recognition is the insufficient use of these instruments. In the first place, the company has to reestablish its policy with retailers and find the businesses that will be eager to enter into contracts for a lower discount. Focusing on B2B (Business-to-Business) advertising can be discovered as one of the solutions, as with the help of content marketing, the company can attract more retailers and reduce one of the states of expenditure. At the same time, the enterprise cannot underestimate the importance of B2C segment (Business-to-Consumer) and not only take advantage of SEO (search engine optimization) but also consider other instruments such as social media marketing. Posting different videos and interactive games on the official website can increase the number of visits, positively affect recognition, and cause an upward shift in sales. Overall, to optimize its existent marketing strategies, the company has to focus on increasing advertising of the most popular product models, as it will reduce costs and enhance a current price to quality ratio.
In the end, it was revealed that sometimes, it is beneficial to review the performance of the competitors and underline the significance of industrial benchmarks. At the same time, heavily investing in advertising does not guarantee effective marketing campaigns and outstanding financial performance. The issues such as underestimating the strength of the competitors can be discovered as one of the major drivers that led to the loss of the revenues. Consequently, the critical solutions are focusing on several products, establishing trusting relationships with retailers, and relying on various trends such as social media marketing, as they can help the company optimize its revenues and enhance its corporate image.