A SWOT analysis is an important process in the evaluation of a situation. The assessment of an organization’s strength, weakness, available opportunities and threats using SWOT analysis is a significant simple process that accords a strong comprehension of the potential and vital matters impacting an undertaking. The main purpose of the SWOT analysis is to note and allocate every major aspect, positive and negative to the four sections. Consequently, the business or company is able to have a clear look into its operations. The analysis is necessary in the advancement and confirmation of a business’ objectives and its marketing approach (Aaker, 2005; Hill, Terry and Roy, 1997). This SWOT analysis will be applied in the case of Jefferson Shoe Company based in Australia which deals in the manufacture of shoes. It will assist the company to act accordingly to the varied aspects assessed.

1.1. Strengths

The strengths define the positive features, perceptible and imperceptible, internal to a business. They are in the control of the business. These aspects add value or accord competitive advantage to the company. The strengths are based on the people, business and its other resources.

The Jefferson Ladies Shoes Company has a strong marketing basis. The company has a big retailer basis making it able to sell several shoes to a large number of customers. In Perth metro, the shoe retailers include Betts which has 23 stores, Spend-Less with 21 stores, Williams with 12 stores and Paul Carroll with 6 stores. This is in addition to smaller chains and self-regulating specialty stores as well as the Myers and David Jones stores that sell several ladies footwear. These specialty shoe stores are highly receptive to innovative goods which separate them from the bigger stores and offer them a fore start.

The company has a long history where it has grown from a small company to a well-established company. It has hence a wide range of skills and experience in the manufacture and selling of footwear. These shoes are attributed to have a hard rubber on the sole in addition to a shock absorbing sole on the inside. The Jefferson has since become a major choice for most clients; amongst the retailers, the brand is greatly recommended and wallows in client promotion. It has hence acquired a growing sales size with 60 percent of the clients being male. Additionally, this company has a strong base where even with the poor quality of shoes and a wide range of incidents, the company still has the clients back to buy as they never are out of fashion.

1.2. Weaknesses

The weaknesses in a business are aspects that in the control of a business, though hinders one from acquiring or keeping competitive level. It focuses on the areas that need improvement. Most companies have varied weakness so does the Jefferson Shoe Company.

The Jefferson Shoe Company has however been attributed to having a number of issues regarding the quality of the shoes it makes. The shoes made at the Jefferson Shoe Company are weak at relatively short periods. In the case of Mary, a client, bought very expensive shoes at $250 had its color getting off and its components loosening. Additionally, this wear and tear of the shoes is not reparable hence disposed. Joan on the other hand, got her shoes knocked by a trolley rendering them not wearable again. Jane wearing a high-heel for just 10 hours got blisters from shoes that were not well lined. The shoes that had the lining were too expensive for her.

These issues are numerous all over the country by several clients. These incidents call into question the quality and reliability of the manufacturing company. Clients continue to use a lot of money to purchase these shoes yet do not get value for their money. This calls to question the level of customer satisfaction.

1.3. Opportunity

The opportunities of a company evaluate the outside attractiveness that shows the motive of a company’s presence and development. They are externally connected to the business (Valentin, 2001). The opportunities show the one is able to acquire by applying the marketing technique. It may be the result of a number of factors in growth, and lifestyle change among other things. An excellent opportunity is presented by the classic high-heel shoe for the company and clients.

The Jefferson Shoe Company has designers that are undertaking advancement of high quality shoes for the ladies. The shoes will make of polycarbonate that would be placed at the tip as well as the back of the shoes giving it a unique appearance and protection; the shoes will have added durability due to hard rubber for sole and patent for the company, shock absorbers are applied inside the sole for comfort and there are a soft leather lining to provide comfort.

The coming high heels would be of varied colors to meet the taste of the client as well as replaceable caps and heel. The protectors will be affordable to the clients, going for $10 which after the replacement the shoes will appear new. As another option, the shoes may be manufactured in contract in the same form and attributes by a known company in China at a price of $30.

1.4. Threats

A threat offers a challenge through offering a negative tendency that leads to the decline of income. Competition is a constant threat in most companies; price is another and a transformation in the tendency of the client (Valentin, 2001). With the assessment of the threats, the company is able to react well to neutralize of at least alleviate some of the threats.

The Jefferson Shoe Company has been experiencing a number of incidents with regard to the quality of the shoes it manufactures. Even with these cases being reported, the clients still go back to the same shops to purchase other shoes. This presents a great opportunity for another company to come up and capitalize on the weakness made by Jefferson Shoe Company. Additionally, this would offer competition to the company as well as another option for the clients to buy from.

The emerging will focus on producing strong and quality shoes as well as affordable price for the clients. This may throw Jefferson Shoe Company out of the top spot as being the most selling shoe company in Australia.

2. Objectives and Strategy

2.1. Marketing/Financial Objectives

The marketing objective for the Jefferson Shoe Company is to develop in a wide number of places and become independent. Additionally, the company looks to acquire the relevant skills so as to manufacture and sell several shoes to its wide base of clients. The manufacture of the footwear aims to meet the satisfaction of the clients by providing them with shoes that are beautiful in appearance, stylish, long lasting, comfortable and replaceable (Porter, 1996). Additionally, the shoes ought to be friendly to the pockets of the clients.

Perth metro has a wide range of retailers with several stores; Betts, Spend-Less, Williams and Paul Carroll. This is in addition to several smaller chain and independent specialty stores. Hence Jefferson Shoe aims to create innovative products that would contrast them from the bigger stores and offer them a starting ground. This is prior to the full acquisition of innovation and a fall in the prices.

These stores are engaged in trading for the whole week. The retail interval for the mark-up for the cost of these stores vary from 25 percent to 100 percent, though the mean selling for the lady foot wear is to be marked-up by 40 percent.

The marketing objective that is to be applied by the Jefferson Shoe Company focuses on offering reliability and satisfaction to the customer. The objectives for the company have been based on the incidents that have taken place and desire to maintain customer satisfaction as well as create innovation

2.2. Strategy Statement

For acquisition of the marketing and financial objectives to be acquired, the Jefferson Shoe Company aims to apply a molded polycarbonate that would offer added protection for the tip and heel. This is in regard to the high number of incidents that took were reported by the customers. The caps used at the toe will extend 2 cm giving the shoe a beautiful look which is stylish. With regard to durability, the sole of the manufactured shoes will use hard rubber. The shoes will hence be in a position to last much longer. Additionally, shock absorber will be applied for the inner part of the sole adding comfort and protection to the skin. Similarly, a smooth leather lining is applied for the same reason. Though expensive, the leather lining will be vital in ensuring client safety. Ultimately, so as to do away with the fact that after the shoes getting spoilt and have to being thrown away, the company is able to offer affordable replacement for the caps and heels making them appear new. With the ability to reach large number customers, the company spreads its base to several places in the whole country by opening stores.

3. Marketing Mix Strategy

The introduction of a product into the market and meeting the satisfaction of the customers in the first step is not adequate. Sustaining the market share with emerging competition is vital for profit for a company. With consideration that clients have a limited concentration period, it involves little time for a competitor to acquire and manage the same product, hence getting the clients. Hence, an organization has not the smallest available time to be relaxed. In the prevailing market situation, one has to add onto the present sales rates. As an alternative one has to assess the product life tendency and the market mix approach and create methods that will lure clients.

The marketing integrates products, price, place and promotional method. They have varied implication on the life of a product. In the case of Jefferson Shoe Company, the 12 months period will be applied to evaluate the life of the classic high-heels.

3.1. Product Design & Development

The product in the marketing mix is the most vital tool for a company. A poor product will not work even if the other marketing mix products are well operative (WSP, n.d.). Consequently, marketing research done by a company has to acquire information if the clients require this product and at that point acquire a product that is more improved.

In the Jefferson Shoe Company, the shoes that were manufactured were of very poor; they shoes lack durability, expensive, not replaceable, and poor lining, which was in general less reliable to the clients. The company has however developed extensive high quality classic high-heels which solved all of these aspects of the product. The product in an attempt to solve durability developed shoes made out of polycarbonate heel and toe cap protector which accorded protection from scrapes nicks and other forms of damages. Similarly, the outer sole were made out of hard rubber while the other inner sole was made out of soft leather lining. As for the irreplaceability of the shoes when spoilt, the shoes would be replaced at a cheaper cost. Consequently, the company is able to contract the shoes to another company of excellent rating.

3.2. Place (Distribution)

This marketing strategy looks out for distributing manufactured products to the clients. This takes into consideration the transportation and storage until the client acquires the products. The company has to make available the products to the clients at the correct place and time with application of relevant distribution models (Tutor2u, 2012). The form of distribution framework acquired is reliant on the reliability of the company, retailers or clients. This process of distribution has to be fast.

The Jefferson Shoe Company is involved in the manufacture of shoes to several outlets who then sell to retailers. The number of available outlets is 50 which then sell to the clients. The new range of classic high-heels with the improved features is delivered to varied stores at an affordable price. When the shoes are made in the Australian Company with its added capacity charged at $50, there is inclusive delivery to the varied stores. The production in the company is approximated at 2000 annually. Additionally, with an alternative manufacturing company in China of excellent background, the cost is at $30 including transport. The production by the contracted company is estimated at 3000 annually.

The assumption made concerning the delivery is that the company has its own vehicles that it uses to distribute the manufactured shoes. Similarly, the contracted company in China has its own form of transport. The delivery means are fast and regularly make sure that the stores are filled to capacity matching with the needs of the customers. This takes into consideration that the classic high-heel shoes are never out of fashion.

3.3. Promotion Plan

This marketing mix plan means a company’s communication with the client. For a company that creates goods and offers services, the aspects have to be publicized to the clients who want it and will purchase it frequently. The promotion incorporates a number of techniques applied and develops awareness (Lamb, Hair, & McDanie, 2011). At the start of the promotional plan, the cost is normally high. However, as the product acquires market share, the charges end up declining. In the future when the product starts to drop, the advertising is increased using a number of marketing methods.

The Jefferson Shoe Company is a brand name that has acquired a reputation for its attributes as being comfortable, stylish, and long-lasting shoe being manufactured. The shoes manufactured at Jefferson are meant for “power” walking, safe events and accommodates 35 year old people and above. The shoes are first choice among several clients.

The company has since developed since its development to incorporate a large number of men; 60% precisely. With the wide range of stores to sell its products to and its name being specialty brand, the company has applied little promotional techniques. The Jefferson Shoe Company uses consumer advertising to make the selling of its products take place. The company relies on its customers that have shopped in its stores to spread the information on its quality products and excellent service to other potential customers. The standard trade promotion is applied by the company in the event it experiences low volume, high margin transaction. The product is well recommended by the retailers that are provided the products.

3.4. Pricing Strategy

Pricing defines the cost that a client has to pay so as to acquire a product or a service. It is a notion that prices have a lot to do with luring several clients hence resulting to a high number of sales. This is however not the case. Prior to setting the price, the company has to take into consideration the price of the same products which are sold in the market. Additionally, with regard to the aspects offered by the product they will need to increase or decrease the price (Slideshare, 2010). Similarly, price control mechanisms are required. Here the company has to take into consideration aspects like the physical location, period of special sales, and the chain of distribution among others.

The classic high-heels are sold at $40 to over $500 with the mid-price being $80 and $120. The independent specialty stores are acceptable to innovative products which sell their products at high prices. This takes into consideration that they are the only shoe store selling the innovative products. However, when the shoe stores’ innovation becomes mainstream, the prices drop. The stores in Perth operate everyday with the markup cost for stores ranging from 25 percent to 100 percent, though for the ladies selling price being 40 percent.

The Jefferson Company has two sales representatives that manage the price of the shoes. These assumption has it that the two work in cohesion with one another to simplify the selling operation among other duties.

The shoes manufactured at the Sydney factory cost $50 integrating the charges of delivery. The production for the company annually is 2000. This cost is quite affordable to the normal customers. Contrastingly, when the manufacturing of the shoes is contracted to reliable Chinese Company with the same standard and attributes, the cost of the shoes is higher; $30, with the annual production being 3000.

4. Projected Income Statement

A projected Income Statement displays the revenue acquired and losses experienced by a business. The difference is used to tell the position of the business in regard to if it is making profit or it is at a loss. The table below gives the projected income of the Jefferson Shoe Company:

The Jefferson Shoe Company Projected Income Statement Template For the year ending December 31, 2011 Sales revenues From: Sydney Factory 100,000 From: A Chinese Factory 90,000 Replacement of Shoes in Sydney 10,000 Replacement of Shoes in China 15,000 Total sales revenues 215,000 Gross profit 215,000 Operating expenses Sales Representative & Travel 40,000 Sales office overheads 30,000 Salary- 100 workers @$100 120,000 Total operating expenses 190,000 Income from operations 25,000 Corporate income tax 10,000 Net income 15,000

NB: Assumption is used in the number of workers and corporate income tax

References

Aaker, David A., (2005). Strategic Market Management, Wiley & Sons, Inc., New York.

Hill, Terry and Roy Westbrook, (1997).“SWOT Analysis: It’s Time for a Product Recall,” Long Range Planning, Vol. 30, February, pp. 46-52.

Lamb, C. W., Hair, J. F., & McDanie, C. (2011). Essentials of Marketing. Mason: Cengage Learning.

Porter, Michael E., (1996).“What Is Strategy,” Harvard Business Review, Vol. 74, Nov-Dec, pp. 61-78.

Slideshare (2010). Global Marketing Mix Strategy. Retrieved from: http://www.slideshare.net/sk_prince/marketing-strategy-final

Tutor2u, (2012). Marketing – The Marketing Mix. Retrieved from: http://tutor2u.net/business/gcse/marketing_strategy_marketing_mix.htm

Valentin, E. K., (2001). “SWOT Analysis from a Resource-Based View,” Journal of Marketing Theory and Practice, Vol. 9, spring, pp. 54-68.

WSP (n.d). Marketing Mix: Product. Retrieved from: https://www.wsp.org/wsp/sites/wsp.org/files/userfiles/WSP-SMToolKit-Product.pdf

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