This report outlines an analysis of the current and future state of CocoNara Companyafter losing a considerable amount of customer base due to quality issues. Methods of analysis include environmental scan, SWOT analysis,data collection, marketing strategies and the promotion strategies required.
CocoNara is commonly used by teenagers as well as young adults for friendship and social bonding. However, this product needs acompetitive marketing strategy targeting university students and offer products that are in sync with the needs of this market group. Being in a highly competitive industry, the company has sought to use technology to provide an online portal to reach its consumers and for packaging.
An assessment of the economic situation indicates that economic recession has greatly reduced customer spending and increased inflation and unemployment. Politically and legally, hookah has not been subjected to the same regulatory mechanisms as the conventional tobacco industry. However, this industry may be subjected to increased taxes due to the increased health risks. Cultural and societal factors such as the general perception that hookah is less dangerous thancigarette has made it very popular. Moreover, entry of people as young as eighteen years old to hookah lounges and the social stigma attached to cigarette smoking has led to its popularity.
Among its strengths is the fact that the company founders are conversant with the necessary entrepreneurial skills, have adequate employees, a highly recognizable brandname and logo, has a quality manager, produces of eco-friendly charcoal and has an attractive packaging.Its weaknesses include poor popularity in some continents, lack of simple measures to differentiate original from counterfeit products as well as recent quality complaint. Its opportunities include; increased number of consumers, shift to digitisation plus minimal government regulation.However, the company is confronted withthreats such as; strong competitorsand reduced consumption of tobacco products due to the health risks associated.
Data collected from a number of consumers from different demographical categories indicatesthat evaluation of the product before March 2nd 2014 was positive but later changed when customers complained of the product’s quality. However, customer contrast review between Coconara and Exotica shows that Coconara won.
Coconara’s major customers are students and young adults either in Middle East and America of either gender.It is frequently used by alcoholics and smokers which means that its potential customers are those found in bars, lounges, cafes and restaurants. Inaddition, the fact that Coconaraproduces cheap eco- friendly products has increased the company’s brand image. However, Coconarashould provide their products in larger packages so as to meet other customer needs but retain its price.
A promotion strategy involves a number of promotional tools such as public relations, sales promotion and personal selling and advertising. Advertising would involve using an online Ad promotion and improving searches. Public relation will involve admitting previous faults about the quality of the product, committing the company to high quality products and communication with customers, suppliers, government officials, employees and the community at large. For sales promotion, provision of free samples, sending retailer and electronic coupons, daily updates about the product and encouraging retailers to introduce the new products in regular bars and clubs will come in handy. In conclusion, personal selling will involve training distributors and retailers on how to present the product to new customers to increase sales.