Marketing Problem Overview
The value of marketing depends greatly on the type of consumer base and the nature of the product. (Brown, 1993) In order to understand the current marketing needs of Global Gadgets Imports, it is important for us to characterize their previous marketing strategies. Before 1995, Global Gadgets relied on a network of distributors and other middlemen to cater to general retail. This would mean that it was up to these stores to come up with their own marketing strategies for GGI products. The upside of this is that Global Gadgets did not have to shoulder any of the marketing cost. The downside is that since they did not make any marketing efforts on the retail level, they were not able to distinctly identify themselves with their product. More likely, the consumer base that was created by the retail stores they collaborated with identified the products according to their different marketing protocols. This led to the lukewarm performance of Global Gadgets’ own retail outlets in 1995. Marketing in terms of home décor and gift items are essential to the success of the company since the primary consumers of these items often look for a kind of novelty in decorative items. On the first level, homeowners who take serious time to actually look for decorative materials for their home often think about certain themes that should relate their general room arrangement to the things they buy to decorate the interior. The same goes for house wares and this is especially important for big time consumers like hotels or offices that need a good level of decorative consistency.
Expanding to house wares
With the addition of house wares to its product line, Global Gadgets also has to incorporate the addition to its existing products. It is not enough to merely add the products to
the inventory and offer them to consumers immediately; GGI has to consider how to meld the idea of selling house wares with that of selling decorative gift items. A good way would be to introduce all the products under one major banner and then subdivide them into utility and decorative. A major banner like “Interior design items” subdivided into “General utility” for household wares and “Specialized decorative” for decorative items would do. This should also reflect in the new catalogs. Aside from adding sophistication to the new combined product line, it also makes it more convenient for consumers to characterize their orders according to their need.
Repackaging items that are not successful in the market is a good way of jumpstarting consumer interest. The current “plain brown paper” package doesn’t have to be overhauled entirely. In fact, brown paper packaging can be both cheap and stylish. A well though of company advertising line like “lifetime satisfaction” or a captivating logo can be added to the plain brown paper. This would require a much more minimal cost than having to use glossy boxes, ribbons, or any other new material in repackaging, plus it also gives the product a simple but classy touch. This would also minimize repackaging cost so much that the additional market that this would bring would certainly be worth the marketing expense.
New retail branches
Finally, the opening of new retail branches and overhauling of old ones with the incorporation of the new catalog scheme and repackages products is the final touch in reviving Global Gadgets Inc. Retail branches need not carry the corporation name as the major advertisement banner if a better suited name can be thought of that speaks about novel home improvement items. The focus should be in getting consumers to notice something new that would spur their curiosity to enter the store and look at the items available. It is also important that retail stores be consistent in their external and internal decorations, in order to build a consumer base that identifies with Global Gadgets products wherever they may be.
Brown, Stephen (1993), Postmodern Marketing. European Journal of Marketing Vol. 27 No. 4, pp. 19-34