The retail industry is flooded with products and services, all vying for market share and revenue. In order to succeed, the different firms must carefully understand and analyze the market they are in. They must ask questions about their rivals and the structure of the industry, as well as make decisions regarding pricing and non-pricing strategies. FranklinCovey is a firm that sells planning systems for mostly business professionals, in the market of planners/organizers. They compete with other well-known brands such as At-a-Glance and DayRunner, yet there are characteristics that set them apart. During my observation of this firm, I came across distinctive elements of the industry and its overall structure, and made note of their various pricing and non-pricing strategies.
[...] http://www.forio.com/pcpricesim.htm Market share is achieved with the ‘prospector strategy', gaining share with new product development. At FranklinCovey, I noticed a new line of products for the Spring. They come out with new binders and bags in colors of the season, allowing variety and innovation of design for the consumer. FranklinCovey is, from what I observed, an analyzer. Meaning, they look at the market and expand into existing markets by making improvements on their existing products and providing a balanced portfolio. [...]
[...] These features set this firm apart from the typical structure of the industry. Alongside the pricing strategies are non-pricing approaches. Rerffering back to the “competitive landscape”, these non-pricing elements are heavily influenced by the motivation of the customers to shop at FranklinCovey, as opposed to the competitors. They pride themselves on service. The store is small, providing an intimate atmoshpere. Displays include samples of all products offered, in all sizes. This allows the customer to ask questions and make informed decions about their purchases, versus the colder, less informative Staples where all the pages are either wrapped or tossed hap-hazardly into a display. [...]
[...] There is a small group of firms that control the market, paying attention to the pricing and attempting to set similar prices. More specifially, I would classify them as participating in monopolistic competition. The competing products are similar, but not necessarily susbstitutable. Entry into the firm is not easy, as there are established brands that have a hold on the market. Cheap imitations are just that, cheap. FranklinCovey relies on product and brand recognition, and so do its competitors. Yet each product offers a certain type of planning system, and none of them offering the exact same set-up. [...]
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