Case Analysis
I Problem Rowen is no longer manufacturing products that are popular with their target market. Rowen is not adhering to the marketing concept. This is due to the lack of sufficient market research.
II Situation Analysis
A. Uncontrollable environment
• Metal frames are becoming more popular than plastic frames
• The economy if doing poorly and people don’t have much money to spend
• Competitors are using the new metal frames meeting consumer demand
B. Controllable environment
• Limited distribution area
• Heavily weighted on a single product line
• Corporation decided not to switch to metal fabrications
• Rowen relies heavily on their marketing intermediaries
III Feasible Alternative and evaluation
1. Expand target markets to women and children
Pros:
• Larger target market
• Better odds that a profit will be reached
• The metal frames more susceptible damaged and children are rough on glasses so more parents will want their plastic frames
Cons:
• Different advertising would be required
• More money into different designs
• Possible character licensing fees
2. Switch to sunglasses
Pros:
• Be able to use same machinery
• Huge increase in market
• Very few people use metal sunglasses making the market easier to compete with
Cons:
• Would have to either produce the lenses or subcontract them out
• Would need to find different distributors for the new product
3. Conduct more Market Research
Pros:
• Know what the clients who use our product would like to see more of
• Know what the clients who no longer use our products would need to go back to our product
• Have a better idea on what the market is looking for in general
Cons:
• Market research cost can be high
• Market research is not always accurate
• Could be time consuming
4. Do nothing
Pros:
• Cost would be very low
Cons:
• Market may not change to want the plastic frames and business could have to
