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Marketing Strategy for Re-Matt Inc Scaling the Mattress Recycling Operations
Posted by Addison on Mar-29-2023
Introduction
The report primarily focuses on the marketing strategy of Re-Matt Inc Scaling the Mattress Recycling Operations to give a reader an overview of the growth dynamics of the company. Recently, several strategic issues and managerial problems have been identified in marketing strategy of Re-Matt Inc Scaling the Mattress Recycling Operations that have drawn the attention of the entire management to devise new marketing strategies that can help the company to resolve the problems to continue its expansion and future growth to achieve a competitive edge in the marketplace. This report is written to provide Re-Matt Inc Scaling the Mattress Recycling Operations marketing strategy with the required strategic solutions using multiple frameworks and tools.
External Environmental Analysis
PESTLE Analysis is the most popular strategic tool that is used by many organizations when conducting an external environmental analysis. This framework typically focuses on political, economic, social, technological, legal, and environmental factors that can impact the macro environment of the business (Zalengera, E.Blanchard, & C.Eames, 2014).
Political factors
Political Stability
Re-Matt Inc Scaling the Mattress Recycling Operations operates in a politically stable environment, which means that it provides the company with more friendly and stable business growth opportunities (Christodoulou & Cullinane, 2019). However, since Re-Matt Inc Scaling the Mattress Recycling Operations operates in multiple countries, there are high chances of various political tensions that can cause instability in market growth trends for Re-Matt Inc Scaling the Mattress Recycling Operations. This can limit the company's growth opportunities.
Pressure Groups
Moreover, it is important for Re-Matt Inc Scaling the Mattress Recycling Operations to analyze and monitor the activities of pressure groups. Re-Matt Inc Scaling the Mattress Recycling Operations can create a close collaboration with these groups to achieve long-term goals.
Corruption and Changing Policies
Re-Matt Inc Scaling the Mattress Recycling Operations must keep a close check on the changes in any government policies because they can directly impact the performance of the business. The operations of Re-Matt Inc Scaling the Mattress Recycling Operations are its different countries can become unpredictable if there is a high level of corruption and weak enforcement of the law (Achinas, Horjus, & Achinas, 2019).
Trade and Taxes
The profitability of a company is directly influenced if there are high taxes in a country. Re-Matt Inc Scaling the Mattress Recycling Operations should look into the taxation policies in each country before further expanding its operations (Eierle, Hartlieb, & C. Hay, 2022). Similarly, if there are high trade restrictions, it can get difficult for Re-Matt Inc Scaling the Mattress Recycling Operations to import and export its products, impacting the relationships with trade partners.
Economic factors
GDP, Employment, and Exchange Rates
The long-term growth strategies of Re-Matt Inc Scaling the Mattress Recycling Operations are majorly determined by the GDP growth of the economy. The purchasing power of consumers significantly increases with a high GDP. High unemployment in an economy shows that Re-Matt Inc Scaling the Mattress Recycling Operations can benefit from surplus labor with low-cost wages. Furthermore, Re-Matt Inc Scaling the Mattress Recycling Operations should monitor interest rates as it can affect the borrowing ability. With that being said, if there is a high fluctuation in currency, the profitability of Re-Matt Inc Scaling the Mattress Recycling Operations can also be influenced (Sadeghi, 2020).
Labor Market
It is important for Re-Matt Inc Scaling the Mattress Recycling Operations to make appropriate predictions regarding the labor market conditions in a specific economy (Sadeghi, 2020). This can help the company to hire a more talented workforce that can improve the performance of the company.
Industry lifecycle stage
Re-Matt Inc Scaling the Mattress Recycling Operations should consider expanding its operations in growing economies to benefit from growth opportunities. It can be challenging for Re-Matt Inc Scaling the Mattress Recycling Operations to enter a mature industry at a growing stage (Villamarín & Pinzon, 2017).
Social factors
Demographics
Re-Matt Inc Scaling the Mattress Recycling Operations should study the changing patterns of demographics, such as socio-economic variables, the aging population, and trends in migration (Barbara & Cortis, 2017). This can help the company to identify the right segment to target with a high potential for growth opportunities.
Cultural norms
Every country and society has a distinctive culture with different norms and values. It is important for Re-Matt Inc Scaling the Mattress Recycling Operations to study and identify social class stratification.
E-commerce
There has been a significant shift in online shopping. Re-Matt Inc Scaling the Mattress Recycling Operations needs to adopt necessary changes considering the growing use of social media networking sites and mobile phones to increase its revenue and overall profitability (Villamarín & Pinzon, 2017).
Technological factors
Technological innovations
On-going technological innovations should be considered carefully by Re-Matt Inc Scaling the Mattress Recycling Operations so that it can stay ahead of the competitive market. Re-Matt Inc Scaling the Mattress Recycling Operations should continue working on introducing major technological transformations to achieve a competitive advantage (Rastogi & TRIVEDI, 2016).
Social Media Marketing
The collaboration with consumers has been growing rapidly because of the development of communication technologies (Rastogi & TRIVEDI, 2016). Re-Matt Inc Scaling the Mattress Recycling Operations can take it as a great opportunity where can use innovative strategies to expand its customer base.
Environmental factors
Waste Management
Re-Matt Inc Scaling the Mattress Recycling Operations should implement the latest technological tools to minimize environmental pollution. Waste management is now getting popular and has been considered a major business norm (Igliński, Iglińska, & Cichosz, 2016).
Climatic Conditions and Eco-friendly products
Climatic conditions can influence the efficiency of Re-Matt Inc Scaling the Mattress Recycling Operations. The cost of a company's operations can be increased if there are extreme weather conditions. Similarly, there has been an increasing demand for eco-friendly products. Re-Matt Inc Scaling the Mattress Recycling Operations should work towards adopting more sustainable business practices to gain customer trust (Barkauskas, Barkauskienė, & Jasinskas, 2015).
Legal factors
Employee protection laws
It is important for Re-Matt Inc Scaling the Mattress Recycling Operations to follow the health and safety laws for its employees that are issued by the authorities to ensure the safety of its labor.
Consumer laws
Re-Matt Inc Scaling the Mattress Recycling Operations should protect its customer data to ensure their security and privacy concerns. Moreover, it should set the right price with the right product quality (Igliński, Iglińska, & Cichosz, 2016).
Porter's Five Forces
Re-Matt Inc Scaling the Mattress Recycling Operations can use Porter's Five Forces to analyze the competitive landscape of the industry. The strategic planners of Re-Matt Inc Scaling the Mattress Recycling Operations can use this framework to make effective decisions.
Threat of New Entrants
Re-Matt Inc Scaling the Mattress Recycling Operations operates in an industry where it is difficult to achieve economies of scale, making it difficult for new entrants to enter the industry (Yunna & Yisheng, 2014). There is a strong product differentiation with high capital requirements. Moreover, it is difficult to establish a distribution network easily in this industry. Thus, Re-Matt Inc Scaling the Mattress Recycling Operations has a weak threat of new entrants.
Bargaining Power of Suppliers
There are more suppliers in the industry of Re-Matt Inc Scaling the Mattress Recycling Operations. This shows that there is less control over prices. Organizations like Re-Matt Inc Scaling the Mattress Recycling Operations can easily switch to other suppliers because of less differentiation in products. This makes the bargaining power of suppliers a weak force in Re-Matt Inc Scaling the Mattress Recycling Operations's industry (H. Th. Bruijl, 2018).
Bargaining Power of Buyers
The industry in which Re-Matt Inc Scaling the Mattress Recycling Operations operates has many suppliers as companies to buyers. This means that buyers have fewer options and do not have control over prices (H. Th. Bruijl, 2018). The high product differentiation shows that there are few alternative products for buyers, and there is a high switching cost. This makes the bargaining power of buyers a weak force in the industry.
Threat of Substitute Products and Services
Re-Matt Inc Scaling the Mattress Recycling Operations operates in an industry that offers very few substitutes to its customers. The substitutes that are available are expensive because of their high quality (Zhao, Zuo, & Wu, 2016). However, companies like Re-Matt Inc Scaling the Mattress Recycling Operations sell their products at a lower prices. This clearly shows that buyers may feel reluctant when switching to other substitutes.
Rivalry Among Existing Firms
Re-Matt Inc Scaling the Mattress Recycling Operations operates in a less competitive industry. The already established companies have a large market share, meaning that any move by the existing companies will be noticed. Moreover, Re-Matt Inc Scaling the Mattress Recycling Operations has to take several competitive actions to become a market leader, as the industry is likely to grow rapidly in the coming years (Aithal, 2020).
SWOT Analysis
Re-Matt Inc Scaling the Mattress Recycling Operations can make use of SWOT analysis to effectively analyze the company's internal strengths, weaknesses, external opportunities, and threats.
Strengths
Strong distribution network
Re-Matt Inc Scaling the Mattress Recycling Operations operates in various countries and has multiple outlets that help the company to deliver its products quickly to its customers. This shows that Re-Matt Inc Scaling the Mattress Recycling Operations has a strong distribution network (Benzaghta, Elwalda, & Mousa, 2021).
Financial position
Re-Matt Inc Scaling the Mattress Recycling Operations has established itself as a strong financial company over the past few years. It has generated enough profits that can be used to finance any future expenditure (Basset & Mohamed, 2018).
Automation
Re-Matt Inc Scaling the Mattress Recycling Operations has adopted the latest and innovative technology in its business operations, which has allowed the company to reduce its production costs (Benzaghta, Elwalda, & Mousa, 2021).
Social media presence
Re-Matt Inc Scaling the Mattress Recycling Operations has been successful in establishing itself as a strong brand on social media platforms that, includes Facebook, Twitter, and Instagram. This increases customer engagement (Basset & Mohamed, 2018).
Weaknesses
High rent costs
Re-Matt Inc Scaling the Mattress Recycling Operations has its manufacturing plants on rented properties. This increases the company's overall costs, and a significant portion of Re-Matt Inc Scaling the Mattress Recycling Operations's profits go into paying the rent (Comino & Ferretti, 2016).
Research and Development
Re-Matt Inc Scaling the Mattress Recycling Operations has not been able to conduct effective and in-depth market research regarding new markets and products (Comino & Ferretti, 2016). Customer trends are always evolving, and it is important for Re-Matt Inc Scaling the Mattress Recycling Operations to take immediate action in conducting its research.
Centralized Power
There has been a centralized decision-making process in Re-Matt Inc Scaling the Mattress Recycling Operations. This means that employees have to consult their managers before taking any decision themselves. This slow down the decision-making process. and employees feel demotivated. Thus, impacting the operations of Re-Matt Inc Scaling the Mattress Recycling Operations (Comino & Ferretti, 2016).
Opportunities
Presence of Internet
Re-Matt Inc Scaling the Mattress Recycling Operations has a great opportunity of expanding its business by using the internet. Since there has been a growing trend in online shopping Re-Matt Inc Scaling the Mattress Recycling Operations can boost its sales by expanding its online stores (Yan, Xia, & X.H.Bao, 2015). Additionally, social media platforms can be updated constantly to engage customers with all the new products introduced by Re-Matt Inc Scaling the Mattress Recycling Operations.
Technological Innovations
Technology is constantly evolving, and Re-Matt Inc Scaling the Mattress Recycling Operations can benefit from it by implementing the technology in its various departments. Manufacturing process can be completed automated, which can eventually help Re-Matt Inc Scaling the Mattress Recycling Operations to reduce its costs (Taghavifard, Mahdiraji, & Alibakhshi, 2018).
Globalization
The continuous increase in globalization has allowed Re-Matt Inc Scaling the Mattress Recycling Operations to expand its business operations across borders. It has the opportunity of entering new markets (Yan, Xia, & X.H.Bao, 2015).
Threats
New Entrants
Recently, many companies are entering the industry in which Re-Matt Inc Scaling the Mattress Recycling Operations operates. This means that there are chances of increased competition. This poses a threat to Re-Matt Inc Scaling the Mattress Recycling Operations as it has to put more effort into gaining market share (Taghavifard, Mahdiraji, & Alibakhshi, 2018).
Fluctuations in exchange rates
The exchange rates are highly subjected to fluctuations that negatively impact the sales of Re-Matt Inc Scaling the Mattress Recycling Operations. Re-Matt Inc Scaling the Mattress Recycling Operations needs to study the changing fluctuations to keep up with its profitability (Vlados & Chatzinikolaou, 2019).
Consumer trends
The consumer trends are constantly changing, that causes changes in their demands. This puts pressure on companies like Re-Matt Inc Scaling the Mattress Recycling Operations, who have to continuously meet their consumer demands. Moreover, there is a significant threat from substitute products because consumers tend to switch to these companies (Vlados & Chatzinikolaou, 2019).
Marketing Mix
Product
Re-Matt Inc Scaling the Mattress Recycling Operations operates in a wider range of products. Each of the products has its further product lines that are sold under the Re-Matt Inc Scaling the Mattress Recycling Operations. This means that customers can benefit from a large variety of products. Re-Matt Inc Scaling the Mattress Recycling Operations sells highly differentiated products with higher quality that, gives it a competitive edge (Khan, 2014).
Price
Re-Matt Inc Scaling the Mattress Recycling Operations follows a competitive pricing strategy. The company also takes into account all its costs before setting its prices (Londhe, 2014). Currently, Re-Matt Inc Scaling the Mattress Recycling Operations is using a product bundle pricing strategy where customers get bundled products at lower prices.
Place
Re-Matt Inc Scaling the Mattress Recycling Operations has adopted various distribution channels to reach its customers. The company sells its products through its website directly (Thabit & Raewf, 2018). Apart from this, it also distributes its products to wholesalers, who then further sell it to small retailers. Re-Matt Inc Scaling the Mattress Recycling Operations has its own retail stores where it sells its products directly to consumers.
Promotion
Re-Matt Inc Scaling the Mattress Recycling Operations uses traditional and modern promotional techniques. TV ads are used to reach a larger audience. Re-Matt Inc Scaling the Mattress Recycling Operations also advertises on social media sites such as Facebook, Instagram, and Twitter. Events are sponsored by the company. Moreover, Re-Matt Inc Scaling the Mattress Recycling Operations participates in several exhibitions (Londhe, 2014).
VRIO Analysis
Valuable
Re-Matt Inc Scaling the Mattress Recycling Operations engages in corporate social responsibility activities. This has allowed the company to establish a strong brand image. Since, Re-Matt Inc Scaling the Mattress Recycling Operations has a well-established distribution network, the products are reached to consumers in a timely manner. Re-Matt Inc Scaling the Mattress Recycling Operations has been able to introduce innovation in its various departments, which has lowered its costs (Ariyani & Daryanto, 2018).
Rare
Re-Matt Inc Scaling the Mattress Recycling Operations operates in multiple countries. This means that its global presence is a rare factor. It works towards an organizational culture that encourages teamwork, and creativity among employees (Ariyani & Daryanto, 2018). Re-Matt Inc Scaling the Mattress Recycling Operations is also able to adapt to different societies, and cultures due to its exposure to various locations.
Inimitable
The products produced by Re-Matt Inc Scaling the Mattress Recycling Operations are of a high quality. Customers make repetitive purchases, and thus it is an inimitable source. (Miethlich & G. Oldenburg, 2019). Re-Matt Inc Scaling the Mattress Recycling Operations has a significant placement of its stores that gives an easy access to its customers. Additionally, the company has been using a competitive pricing strategy because it has been able to achieve economies of scale, thus lower production costs.
Organization
Re-Matt Inc Scaling the Mattress Recycling Operations, over the years, has successfully gained a financial strength. Re-Matt Inc Scaling the Mattress Recycling Operations can make use of these finances to invest in major acquisitions that give it more growth opportunities. The advancements in technology have allowed Re-Matt Inc Scaling the Mattress Recycling Operations to manage its operations more effectively. Distribution channels are another resource for Re-Matt Inc Scaling the Mattress Recycling Operations. The supply chain is very efficient, resulting in more revenue (Miethlich & G. Oldenburg, 2019).
Value Chain Analysis
Primary Activities
Re-Matt Inc Scaling the Mattress Recycling Operations is involved in primary activities such as the production of goods and then selling them to the target audience.
Inbound Logistics
Re-Matt Inc Scaling the Mattress Recycling Operations should ensure to have a strong relationship with its suppliers to avoid any inconvenience in receiving, storing, and distributing the product. This will help Re-Matt Inc Scaling the Mattress Recycling Operations to have a more effective transformation of a product (Ariwibowo & Saputro, 2021).
Operations
Operations involves manufacturing as well as services. Re-Matt Inc Scaling the Mattress Recycling Operations should conduct an in-depth analysis of its operational activities to remain ahead of its competitors (M.El-Sayed, W.Dickson, & O.El-Naggar, 2015). This will increase the productivity of the company, and more profits can be generated.
Outbound Logistics
It is important for Re-Matt Inc Scaling the Mattress Recycling Operations to analyze, and optimize its outbound logistics so that it is able to achieve the long-term corporate goals. Managing outbound activities properly reduces the chance of late deliveries (M.El-Sayed, W.Dickson, & O.El-Naggar, 2015).
Marketing and Sales
Re-Matt Inc Scaling the Mattress Recycling Operations should use various marketing and sales techniques to differentiate its products from its competitors. Re-Matt Inc Scaling the Mattress Recycling Operations can adopt marketing and sales activities such as promotional activities, advertising, and building strong relationships with suppliers and customers (Ariwibowo & Saputro, 2021).
Services
In terms of services, Re-Matt Inc Scaling the Mattress Recycling Operations must ensure that it provides its customers with the pre-sale and post-sale services (Jaligot, C.Wilson, & R.Cheeseman, 2016). The post-sale service typically falls into the promotional activities of a company. Re-Matt Inc Scaling the Mattress Recycling Operations can thus develop its customer loyalty.
Secondary Activities
Firm infrastructure
A strong infrastructure of a firm can enable Re-Matt Inc Scaling the Mattress Recycling Operations to optimize the entire value chain of the company. Moreover, by controlling the infrastructure activities, Re-Matt Inc Scaling the Mattress Recycling Operations can be in a better position to get a strong foothold in the competitive marketplace (Darmawan & Wiguna, 2014).
Human Resource Management
Re-Matt Inc Scaling the Mattress Recycling Operations should place its major focus on analyzing the different aspects of HR, such as recruitment, selection, training, and performance evaluation of employees (Darmawan & Wiguna, 2014). Re-Matt Inc Scaling the Mattress Recycling Operations can reduce its costs by identifying and analyzing the costs associated with hiring and training.
Procurement
Procurement is an important element in the Re-Matt Inc Scaling the Mattress Recycling Operations's value chain. It is important for the company to assess its overall procurement activities so that the inbound, outbound, and operational activities can be optimized (Kumar & P. V., 2016).
Ansoff's Matrix
Re-Matt Inc Scaling the Mattress Recycling Operations can implement Ansoff's Matrix to make decisions regarding its business growth. This framework includes four different strategic choices that can be selected by Re-Matt Inc Scaling the Mattress Recycling Operations.
Market Penetration
Production capacity
Re-Matt Inc Scaling the Mattress Recycling Operations can increase its overall production capacity. This will allow the company to reach more wider audience in an existing market. Re-Matt Inc Scaling the Mattress Recycling Operations can also benefit from the reduced costs by expanding its production capacity. Thus, Re-Matt Inc Scaling the Mattress Recycling Operations can attract more customers using competitive pricing (Madsen, 2017).
Marketing Investment
Re-Matt Inc Scaling the Mattress Recycling Operations can penetrate the market by investing more in marketing and sales activities. This will help the company to engage with its customer more effectively, leading to more potential customers (Dawes, 2020).
Distribution Channels
Innovative and unique distribution channels can be explored by Re-Matt Inc Scaling the Mattress Recycling Operations. This will enable the company to reach new segments and groups of customers (Dawes, 2020). In addition to this, Re-Matt Inc Scaling the Mattress Recycling Operations can penetrate the market by improving its supply chain, giving more accessibility to customers.
Joint Ventures/Acquisitions
Re-Matt Inc Scaling the Mattress Recycling Operations can enter into joint ventures or can take over other leading companies of the market. This will give Re-Matt Inc Scaling the Mattress Recycling Operations more market share.
Market Development
Research & Development
Re-Matt Inc Scaling the Mattress Recycling Operations should keep on investing in its R&D department, so it is able to identify the changing trends of the market. This will help Re-Matt Inc Scaling the Mattress Recycling Operations to target the right market at the right time (Mukangai & Murigi, 2021).
Expanding Regionally
Re-Matt Inc Scaling the Mattress Recycling Operations can enter in a new market by expanding its operations regionally. This includes considering different cities of the country. Re-Matt Inc Scaling the Mattress Recycling Operations must consider any cultural differences when entering a new market (Mukangai & Murigi, 2021).
New Segments
New segments of the current market can be explored (Mukangai & Murigi, 2021). Re-Matt Inc Scaling the Mattress Recycling Operations can add new features and product uses to its existing products that satisfies the needs of a different customer segment.
Product Development
Modifications
Re-Matt Inc Scaling the Mattress Recycling Operations can modify the existing product by improving its features to enhance the product offerings.
Launching additional products
Re-Matt Inc Scaling the Mattress Recycling Operations should invest in its R&D department so it can come up with new and innovative products that attracts and fulfill the needs of the target audience. This will boost the sales of Re-Matt Inc Scaling the Mattress Recycling Operations and will increase profitability (Khajezadeh, Niasar, & Asli, 2019).
Diversification
Vertical Integration
Re-Matt Inc Scaling the Mattress Recycling Operations can consider vertical integration. This will allow Re-Matt Inc Scaling the Mattress Recycling Operations to develop and launch new products that are similar to its existing product category (Khajezadeh, Niasar, & Asli, 2019).
Horizontal Integration
Re-Matt Inc Scaling the Mattress Recycling Operations can diversify its business operation using horizontal integration. This means that the new products and services of Re-Matt Inc Scaling the Mattress Recycling Operations will not be related to its current products (Dhir & Dhir, 2015).
A new business diversification
Entering into a completely new business can be considered by Re-Matt Inc Scaling the Mattress Recycling Operations. The organization can work towards starting a new business that can give a company more growth prospects in the future (Dhir & Dhir, 2015). Re-Matt Inc Scaling the Mattress Recycling Operations can conglomerate with the help of mergers and acquisitions.
Conclusion
To conclude, it could be said that Re-Matt Inc Scaling the Mattress Recycling Operations can resolve its current managerial and strategic problems by focusing on its existing products. The company can adopt more attractive marketing strategies that can help Re-Matt Inc Scaling the Mattress Recycling Operations to boost its revenue and profitability. It is recommended to focus on maintaining strong supplier relationships. Moreover, it is also advised to focus on more innovative products so Re-Matt Inc Scaling the Mattress Recycling Operations can remain competitive in the market.
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