EVOLUTION OF A CUTTING EDGE MARKETING STRATEGY FOR VITAFOAM’S INNOVATIVE ‘EARLY DAYS’ PRODUCTS (MANAGEMENT PROJECT TOPICS AND MATERIALS)
ABSTRACT
Firms employ different growth strategies, such as acquisitions and continuous process improvement, as well as product innovation to generate exceptional shareholders’ value. Among all, innovation is less risky and highly sustainable, even guaranteeing a profitable margin, firm and product differentiation, and market leadership status. However, inventing a new product in itself does not complete the innovation process until there is a commercial success and wide use of such a product.
The case company, Vitafoam Nigeria Plc, has evolved new product innovations for a huge target market of infants and children in its environment but has not been able to successfully commercialize them and to take the first mover advantage. Hence, the reasons for the failure were investigated while developing a comprehensive strategy through which it may recoup on its investments in the innovation process that generated its Early Days products, capturing the lion’s share of the market.
The key drivers for ensuring the successful diffusion of Vitafoam’s Early Days products, such as communication through mass media and word of mouth, economic condition, and the marketing mix variables, were isolated and applied to the resulting product, price, place, and promotion strategies recommended for the Company.
Keywords: innovation, diffusion of innovation, marketing strategy, promotion
1 INTRODUCTION
1.1 Background of study
Marketing strategy is defined as an array of principles in business that may be employed by a firm to profitably service its customers (Kotler 2003). In similar vein, Armstrong & Kotler (2003) stated that marketing strategy is evolved to guide a firm towards the effective use of its available resources in servicing the identified needs of its target market(s), profitably, and ahead of its competitor(s).
However, there is a close link between marketing strategy and product innovation. Why, according to Cravens et al. (2000), marketing strategy is made up of four different dimensions, and these are “branding strategy, low-cost strategy, channel strategy, and innovation strategy”, thereby linking marketing strategy with product innovation.
Firms do employ different growth strategies to generate exceptional shareholders’ value. These strategies include acquisitions and continuous process improvement, as well as product innovation. Unlike innovation, mergers, acquisition, and continuous process improvement could be risky, expensive and extremely difficult to sustain, although they may be successful. Therefore, firms must look towards the less risky and the highly sustainable growth option found in innovation to generate their much desired year-on-year organic growth. Innovation may even guarantee profitable margin, firm and product differentiation, and market leadership status.
