Dual Branding Strategy for a Successful new Product Launch in China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Dual Branding Strategy for a Successful new Product Launch in China
Marketers may increase the chance of success for a new product launch by using a sub-brand name and a parent brand name simultaneously. In this article, we report the successful case of using two brand names--dual branding strategy--by practitioners in China for the Minute Maid Orange Pulp juice drink launch. A suggestive sub-brand name helps consumers recall the key benefits and features of the new product. A suggestive parent brand name communicates the benefits of the product category. A dual branding strategy addresses the problem of using only one brand name for a new product launch. After the successful launch of the first new product by a parent brand, marketers are able to launch other new products under other subbrand names in the future to meet different consumer needs. Marketers may use the same parent brand to introduce different products to build scale for the brand, and are able to clearly differentiate the different product offerings under different subbrand names. If a company acquires a brand from another company, a marketer may position the acquired brand as a sub-brand under the parent brand if the marketer has defined the business scope of the parent brand broadly enough and with a suggestive parent brand name.
Swot Analysis of "Dual Branding Strategy for a Successful new Product Launch in China" written by Pong Yuen Lam, Annie Chan, Hannie Gopaoco, Kevin Oh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brand Parent facing as an external strategic factors. Some of the topics covered in Dual Branding Strategy for a Successful new Product Launch in China case study are - Strategic Management Strategies, Product development and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Dual Branding Strategy for a Successful new Product Launch in China casestudy better are - – technology disruption, central banks are concerned over increasing inflation, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google, increasing commodity prices, challanges to central banks by blockchain based private currencies,
increasing transportation and logistics costs, wage bills are increasing, etc
Introduction to SWOT Analysis of Dual Branding Strategy for a Successful new Product Launch in China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dual Branding Strategy for a Successful new Product Launch in China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brand Parent, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brand Parent 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 Dual Branding Strategy for a Successful new Product Launch in China can be done for the following purposes –
1. Strategic planning using facts provided in Dual Branding Strategy for a Successful new Product Launch in China case study
2. Improving business portfolio management of Brand Parent
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Brand Parent
Strengths Dual Branding Strategy for a Successful new Product Launch in China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brand Parent in Dual Branding Strategy for a Successful new Product Launch in China Harvard Business Review case study are -
Training and development
– Brand Parent has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dual Branding Strategy for a Successful new Product Launch in China 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.
Successful track record of launching new products
– Brand Parent has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Brand Parent 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.
Highly skilled collaborators
– Brand Parent has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Dual Branding Strategy for a Successful new Product Launch in China HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Brand Parent is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Pong Yuen Lam, Annie Chan, Hannie Gopaoco, Kevin Oh can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Brand Parent in the sector have low bargaining power. Dual Branding Strategy for a Successful new Product Launch in China has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Brand Parent to manage not only supply disruptions but also source products at highly competitive prices.
Effective Research and Development (R&D)
– Brand Parent 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 Dual Branding Strategy for a Successful new Product Launch in China - 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
– Brand Parent is one of the most innovative firm in sector. Manager in Dual Branding Strategy for a Successful new Product Launch in China Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Brand Parent are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Strong track record of project management
– Brand Parent is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Brand Parent 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 Brand Parent is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Dual Branding Strategy for a Successful new Product Launch in China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Brand Parent digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Brand Parent 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.
Operational resilience
– The operational resilience strategy in the Dual Branding Strategy for a Successful new Product Launch in China Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Weaknesses Dual Branding Strategy for a Successful new Product Launch in China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dual Branding Strategy for a Successful new Product Launch in China are -
Slow to strategic competitive environment developments
– As Dual Branding Strategy for a Successful new Product Launch in China HBR case study mentions - Brand Parent takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Dual Branding Strategy for a Successful new Product Launch in China, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Brand Parent 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Dual Branding Strategy for a Successful new Product Launch in China 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 Brand Parent 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Brand Parent has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Brand Parent products
– To increase the profitability and margins on the products, Brand Parent needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow decision making process
– As mentioned earlier in the report, Brand Parent has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Brand Parent even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Increasing silos among functional specialists
– The organizational structure of Brand Parent is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Brand Parent needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Brand Parent to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Brand Parent 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Dual Branding Strategy for a Successful new Product Launch in China, is just above the industry average. Brand Parent needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Dual Branding Strategy for a Successful new Product Launch in China, in the dynamic environment Brand Parent has struggled to respond to the nimble upstart competition. Brand Parent has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Dual Branding Strategy for a Successful new Product Launch in China | 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 Dual Branding Strategy for a Successful new Product Launch in China are -
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 Brand Parent in the consumer business. Now Brand Parent can target international markets with far fewer capital restrictions requirements than the existing system.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Brand Parent can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Building a culture of innovation
– managers at Brand Parent 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 Strategy & Execution segment.
Creating value in data economy
– The success of analytics program of Brand Parent has opened avenues for new revenue streams for the organization in the industry. This can help Brand Parent to build a more holistic ecosystem as suggested in the Dual Branding Strategy for a Successful new Product Launch in China case study. Brand Parent can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Brand Parent 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, Dual Branding Strategy for a Successful new Product Launch in China, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Brand Parent to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Better consumer reach
– The expansion of the 5G network will help Brand Parent to increase its market reach. Brand Parent will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Brand Parent is facing challenges because of the dominance of functional experts in the organization. Dual Branding Strategy for a Successful new Product Launch in China case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Brand Parent can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Brand Parent can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Learning at scale
– Online learning technologies has now opened space for Brand Parent 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.
Buying journey improvements
– Brand Parent can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dual Branding Strategy for a Successful new Product Launch in China suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Brand Parent can develop new processes and procedures in Strategy & Execution 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.
Leveraging digital technologies
– Brand Parent can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Dual Branding Strategy for a Successful new Product Launch in China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dual Branding Strategy for a Successful new Product Launch in China are -
Technology acceleration in Forth Industrial Revolution
– Brand Parent has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Brand Parent needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Environmental challenges
– Brand Parent 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. Brand Parent can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Brand Parent in the Strategy & Execution industry. The Strategy & Execution 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Brand Parent can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Dual Branding Strategy for a Successful new Product Launch in China .
Increasing wage structure of Brand Parent
– 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 Brand Parent.
Shortening product life cycle
– it is one of the major threat that Brand Parent is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Brand Parent needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Brand Parent business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Dual Branding Strategy for a Successful new Product Launch in China, Brand Parent may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Stagnating economy with rate increase
– Brand Parent can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Brand Parent 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.
Weighted SWOT Analysis of Dual Branding Strategy for a Successful new Product Launch in China 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 Dual Branding Strategy for a Successful new Product Launch in China 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 Dual Branding Strategy for a Successful new Product Launch in China 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 Dual Branding Strategy for a Successful new Product Launch in China 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 Dual Branding Strategy for a Successful new Product Launch in China 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 Brand Parent needs to make to build a sustainable competitive advantage.