Market changes lead altering strategies for many of the companies. In this case, Nuview’s biggest change will be in the market. New entry will be in the market in one year.
The competitive product will be production of a known manufacturer which is a big thread for Nuview because consumers will trust their product rather than Nuview which has entered the market only a year ago. This can be also competitor’s first launch of the coloring tablets but they already have a group of existing loyal customer.On the other hand, if one manufacturer is launching these tablets, it means that the other manufacturers will be in coloring business pretty soon. With the new competitive product that will enter the market Nuview has to improve its positioning and sales within one year to have a good market share.
Moreover, they should come up with a plan for their manufacturing issues since they suffer from product returns, they need to have a better plan with their retailers.If they can solve their inventory problems, they can be able to balance their operational costs. They should decide on the output range based on actual sales or marketing research results. Another way to handle inventory problems is having more sales via Internet.
Because their company surveys showed that %95 of their potential customers prefer online purchase while their internet sales are only at %10. One way to do that having discounts on online sales. People should see a benefit from buying online.Competitive product will be a free sample, brand switching could take place easily, also the tablets can have additional benefits that induce customer’s preference to avoid that Nuview has to have loyal customer’s that are purchasing the product every 3 months time.
They need to make a deeper segmentation and targeting so that they can easily identify and describe their end-users. Identification of the potential customer’s also leads to have a better understanding of the demand and in the end they do not end up with backlogs.Nuview can also have a strategy about their color options. With a market research they should decide on which color to be focused or which color should be dropped from the production.
In conclusion, Nuview has a good potential as they are the first entrant to the market but with strong potential competitors their market share can drop rapidly. They should increase internet sales, deal with their inventory problems and have better segmentation. They should follow market trends and their potential customers closely.
