Assessment Task 1

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Identify and evaluate marketing opportunities

Dhaval Patel
CIT193801
21st March 2016
Nina Allen
Thursday 12:00 to 2:00

SWOT Analysis

SWOT stands for Strength, Weakness, Opportunities and Threats. The SWOT
analysis helps to identify and assign all importance factors that could be
positively and negatively impact on business. The strength and weakness are
based on companys internal environment, whereas, the opportunities and
threat refers external environment. The company cannot control external
environment. The SWOT analysis in marketing will help you to decide which
marketing strategy you should use for the best outcome. The strategy will help
you to capitalize available the opportunities with the use of the strengths and
avoid the threats and minimise the weaknesses.

SWOT Matrix
Strengths
Internal
Environment

Opportunities
Internal
Environment

Weaknesses
External
Environment

Threats
External
Environment

For Example, A small consultancy adopt new technology might be a business

opportunity. Through the SWOT analysis, the consultancy may decide specialize
in rapid response , good value services to local business and keep up to date
with changes in technology where possible. As a result, adoption of new
technology (opportunity) will positive impact on business and will help to design
and develop marketing strategy. Once the opportunity identified, the company
can use strengths to achieve best outcomes with minimise weaknesses and
avoid possible threats.

Benefits and limitations of SWOT analysis:

The main benefit of using SWOT analysis is that it is time and cost consuming.
Moreover, you will need not consult any external business adviser, as the
company can know internal environment than other people. You can use SWOT
analysis to simplify any elaborate situation.
On other hand, there are some limitations such as you should keep in mind that
it is only one stage of the business planning process. For complex issues, you will
usually need to conduct more in-depth research and analysis to make decisions.
(E learn Session 2 SWOT analysis pdf)

Summary
SWOT analysis is a simple but useful framework for analysing your organizations
strengths and weakness, opportunities and threats. It helps you focus on your
strengths, minimize threats and take the greatest possible advantage of the
available opportunities in the market.

PESTEL analysis

PESTEL model represents various complex aspects of external factors. PESTEL

stands for:

Political
Economic
Social
Technological
Legal
Environment

PESTEL model allows you to design marketing strategy with the help to identify
above mention external factors.

Politics
As governments intervene in the economy, businesses are bound to be affected.
Indeed, employment policies, tax laws, trade restrictions can impact your
business directly and indirectly, along with political stability and how foreign
markets operate.
Economic
Economic factors such as interest rates, exchanges rates, inflation, and
disposable incomes influence how you will manage your business at present and
in the long run.
Social
This has to do with the beliefs and culture of the society you are operating in.
Population trends, dietary considerations, ethics and media, and spend habits are
some of the factors that come under social considerations that you need to
observe in your business activity.
Technological

Businesses also have to deal with production, distribution, and communication

changes imposed by new technology in order to stay competitive economic
environment.

For Example, a small consultancy based on developing area, where local

government focus more. Local banks provide low interest loan and attracting
new companies. In addition, competitor consulting companies are not adopt new
technology for marketing, In this scenario, there is opportunity for the company
that it can use new method for marketing and there are some opportunities like,
collaboration with new company, loan available with low interest loan.
This opportunity will help the business to develop strategy with considering
external factors. With PESTEL analysis, the company can change strategy
according to external factors.

Benefits

It helps to reduce impact and effect of potential threats to the

organisation.
Provide a mechanism that enable to the organisation to indentify available
opportunities

Limitations

It is very complex and costly process.

The company has to knowledge about external factors.

Summary
The PESTLE analysis provides information relates external fectors and their effect
on the organisation. It provides its users with factors that need to be well
researched and brainstormed.

BCG Matrix
Boston Consulting Group (BCG) Matrix is a four celled matrix developed by
BCG, USA. It provides a graphic representation for an organization to
examine different businesses in its portfolio on the basis of their related
market share and industry growth rates. BCG matrix has four cells, with
the horizontal axis representing relative market share and the vertical axis
denoting market growth rate.

Stars- Stars represent business units having large market share in a fast
growing industry. They may generate cash but because of fast growing
market, stars require huge investments to maintain their lead.
Cash Cows- Cash Cows represents business units having a large market
share in a mature, slow growing industry. Cash cows require little

investment and generate cash that can be utilized for investment in other
business units.
Question Marks- Question marks represent business units having low
relative market share and located in a high growth industry. They require
huge amount of cash to maintain or gain market share. Question marks
are generally new goods and services which have a good commercial
prospective.
Dogs- Dogs represent businesses having weak market shares in lowgrowth markets. They neither generate cash nor require huge amount of
cash. Due to low market share, these business units face cost
disadvantages. These business firms have weak market share because of
high costs, poor quality, ineffective marketing, etc.
For Example, Nestle produces more than 800 brands all over the world
form bottle water to pet food. The company announced plans to sell off
under-performing brands which were consistently showing poor sales. It
we consider some of the brands and use BCG model to analysis it.
Question Marks Here, the question marks have a low market share
within a high growth market.
Stars These brands have a high share in a high growth market. Nestls
varied mineral water is in this quadrant.
Dogs An example of this is a lean cuisine unit and weight loss
management brands which did not take off outside the US. A sports
performance and nutrition brand called Power Bar is also confirmed to be
divested by the company most likely due to poor sales in a saturated
market.
Cash Cows These brands are important because of their cash
generating potential. This means that they have a higher market share in
a slow-growth industry. For instance, verities of chocolates
With the use of BCG model, Nestle can identify some of brands to sell then
and brands which has higher return with low investment. Based on BCG
model, the company can make marketing strategy for specific brands and
can generate more revenue and profit based on it.

Benefit
BCG-Matrix is applicable to large companies that seek volume and
experience effects. It is simple and easy to understand. BCG model
provides a base for management to decide and prepare for future actions.

Limitation

On other hand, it neglects the effects of synergies between business units.

The problem of getting data on the market share and market growth. The
model uses only two dimensions market share and growth rate. The BCG
model neglects small competitors that have fast growing market shares.

Summery
It provides framework for allocating resources among different unites and
allow comparison if one with other businesses. The BCG model helps to
identify most revenues generate brand and company can make strategic
planning based on that.

Reference:
Learn Session 2 SWOT analysis pdf.
http://www.businessdictionary.com/article/632/using-swot-analysis-to-develop-amarketing-strategy
http://pestleanalysis.com/swot-analysis-in-marketing/
http://www.mplans.com/articles/how-to-perform-a-swot-analysis/
http://www.marketingteacher.com/swot-analysis/
http://www.businessnewsdaily.com/5693-bcg-matrix.html
http://www.smartinsights.com/marketing-planning/marketing-models/use-bcgmatrix/
http://www.netmba.com/strategy/matrix/bcg/
http://www.valuebasedmanagement.net/methods_bcgmatrix.html