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A popular Australian guitar manufacturer is about to enter the US market using a standardised marketing strategy - HSC - SSCE Business Studies - Question 22 - 2020 - Paper 1
Question 22
A popular Australian guitar manufacturer is about to enter the US market using a standardised marketing strategy. (a) Clarify the purpose of a SWOT analysis for thi... show full transcript
Worked Solution & Example Answer:A popular Australian guitar manufacturer is about to enter the US market using a standardised marketing strategy - HSC - SSCE Business Studies - Question 22 - 2020 - Paper 1
Step 1
Clarify the purpose of a SWOT analysis for this business.
Answer
The purpose of a SWOT analysis for this Australian guitar manufacturer is to assess its current market position before entering the US market. By identifying internal strengths and weaknesses as well as external opportunities and threats, the business can develop informed marketing strategies.
In detail, internal strengths may include brand reputation and quality craftsmanship, while weaknesses could relate to limited brand awareness in the US. Externally, opportunities could arise from the growing popularity of musical instruments and potential threats may stem from existing competition.
Completing a SWOT analysis serves as a foundational step in strategic planning, enabling the business to align its marketing objectives effectively.
Step 2
Recommend a pricing method this business could adopt for the US market.
Answer
For the US market, the guitar manufacturer could adopt a value-based pricing strategy. This method focuses on setting prices based on the perceived value of the product to the customer, rather than solely on production costs.
By conducting market research, the company can determine how much customers are willing to pay for its high-quality guitars. This approach allows the manufacturer to compete effectively by aligning its pricing with customer expectations and product benefits, potentially differentiating itself from competitors.
Furthermore, continuous feedback from customers can help refine this pricing strategy to ensure it remains competitive and relevant in the market.