Case Study Description of Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning
The Joyoung brand was launched in 1994 when a group of recent college graduates invented the world's first automatic hot soymilk-maker home appliance. After some ups and downs, the Joyoung manufacturer founded the Shandong Joyoung Electric Appliances Co., Ltd. in 2002. It was further reorganized to the current Joyoung Company Limited in September 2007. Joyoung's sales grew rapidly from RMB 6 million in 1994 to 120 million in 1999, and this trend has continued into the new century. By the first quarter in 2006, the signature product of Joyoung-the soymilk makers-alone have already surpassed the sales by Philips Home Appliances in the Chinese market. Contrary to its current success, however, Joyoung Soymilk Maker's launch did not go smoothly. When the first model of the automatic soymilk maker was introducted in 1994, people had no idea what this new creature was supposed to do. The first 2,000 units of Joyoung products remaintroducedined stacked in storage for months. Joyoung then decided to conduct some marketing research. Joyoung's repositioning strategies and new product developments based on their marketing research have been evidently successful, and they have defined a new product category in China and in the world. a?? Teach students how to use cross-tabs and other marketing research tools to identify segmentation descriptors; a?? Teach students how to analyze data and interpret results; a?? Teach students how these research results could guide new product development and positioning strategies in order to effectively target relevant customer segments.
Swot Analysis of "Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning" written by Yi Qian includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Joyoung Soymilk facing as an external strategic factors. Some of the topics covered in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning case study are - Strategic Management Strategies, Entrepreneurship, Market research and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning casestudy better are - – talent flight as more people leaving formal jobs, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , central banks are concerned over increasing inflation, challanges to central banks by blockchain based private currencies,
increasing commodity prices, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Joyoung Soymilk, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Joyoung Soymilk operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning can be done for the following purposes –
1. Strategic planning using facts provided in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning case study
2. Improving business portfolio management of Joyoung Soymilk
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Joyoung Soymilk
Strengths Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Joyoung Soymilk in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning Harvard Business Review case study are -
Successful track record of launching new products
– Joyoung Soymilk has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Joyoung Soymilk has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to recruit top talent
– Joyoung Soymilk is one of the leading recruiters in the industry. Managers in the Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Training and development
– Joyoung Soymilk has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Joyoung Soymilk in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Joyoung Soymilk has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Joyoung Soymilk is one of the most innovative firm in sector. Manager in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Joyoung Soymilk is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Joyoung Soymilk is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Joyoung Soymilk has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning firm has clearly differentiated products in the market place. This has enabled Joyoung Soymilk to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Joyoung Soymilk to invest into research and development (R&D) and innovation.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Joyoung Soymilk digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Joyoung Soymilk has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Joyoung Soymilk has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Joyoung Soymilk to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Joyoung Soymilk
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Joyoung Soymilk does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning are -
High operating costs
– Compare to the competitors, firm in the HBR case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Joyoung Soymilk 's lucrative customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Joyoung Soymilk supply chain. Even after few cautionary changes mentioned in the HBR case study - Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Joyoung Soymilk vulnerable to further global disruptions in South East Asia.
Workers concerns about automation
– As automation is fast increasing in the segment, Joyoung Soymilk needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning, it seems that the employees of Joyoung Soymilk don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Lack of clear differentiation of Joyoung Soymilk products
– To increase the profitability and margins on the products, Joyoung Soymilk needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Joyoung Soymilk has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Joyoung Soymilk has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Joyoung Soymilk has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Aligning sales with marketing
– It come across in the case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning can leverage the sales team experience to cultivate customer relationships as Joyoung Soymilk is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Joyoung Soymilk, firm in the HBR case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning, in the dynamic environment Joyoung Soymilk has struggled to respond to the nimble upstart competition. Joyoung Soymilk has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning are -
Manufacturing automation
– Joyoung Soymilk can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Loyalty marketing
– Joyoung Soymilk has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Joyoung Soymilk in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Joyoung Soymilk can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Joyoung Soymilk can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Joyoung Soymilk in the consumer business. Now Joyoung Soymilk can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Joyoung Soymilk can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Joyoung Soymilk can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Joyoung Soymilk has opened avenues for new revenue streams for the organization in the industry. This can help Joyoung Soymilk to build a more holistic ecosystem as suggested in the Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning case study. Joyoung Soymilk can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Joyoung Soymilk can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Joyoung Soymilk can use these opportunities to build new business models that can help the communities that Joyoung Soymilk operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Learning at scale
– Online learning technologies has now opened space for Joyoung Soymilk to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Building a culture of innovation
– managers at Joyoung Soymilk can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Threats Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Joyoung Soymilk needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Joyoung Soymilk with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Joyoung Soymilk in the Sales & Marketing sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Joyoung Soymilk high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Consumer confidence and its impact on Joyoung Soymilk demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Joyoung Soymilk in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Joyoung Soymilk is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Joyoung Soymilk
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Joyoung Soymilk.
Regulatory challenges
– Joyoung Soymilk needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Joyoung Soymilk can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Joyoung Soymilk.
Environmental challenges
– Joyoung Soymilk needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Joyoung Soymilk can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Weighted SWOT Analysis of Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Joyoung Soymilk needs to make to build a sustainable competitive advantage.
