Phil&teds Marketing Management Memo
Phil&Teds is a New Zealand buggy company. They design buggy’s that are durable and more adventurous that most. Phil&Ted’s buggy’s rely heavily on New Zealand’s “clean & green” image for their marketing; however their products are made in China. 97% of Phil&Teds buggy’s are sold overseas via resellers or internet purchases.
Current Arena and Tier Strategies of Phil&Teds Most Excellent Buggy Company:
Phil&Teds core fundamental of their current arena is their Technology base. They recently have formed alliances with seller firm Mothercare International (Walker, 2009) which has expanded their customer base. This also suits their strategy as they move into the Product Leadership space, using their innovation as an advantage in an upwards strategy.
The Key issue:
The core issues are their proposed blocking strategies and attempts to expand their arena.
Why is this concern?
These proposed strategies of producing a product that can be mass marketed can have grave consequences on their image as a company. Many consumers buy Phil&Ted’s buggies due their durability and quality. Marketing a product via a “Discount chain” can damage this reputation.
So what? How does this affect the company as a whole?
While they have not saturated their current market segments, Phil&Ted have attempted to address an issue of global reach. Mothercare International will give them access to a larger market from an international distributer. How Mothercare represent Phil&Ted’s product will dictate how the product is taken by the larger market (outside Phil&Ted’s current customer base).
At the same time they are continuing their push for product leadership. Using new design techniques, which are copy written and marketed heavily – they envisage becoming the world leader in buggy design. Mothercare must maintain the high standards required by Phil&Teds proposed image. Currently the image of clean and green seems to disguise that manufacturing is in china – if that image were to be tarnished by poor representation, the company would have to rely purely on its products and their durability.
So how can this move forward?
Phil&Ted need to consider how they can manage their upwards strategies (product innovation – and marketing of) in comparison to their blocking strategy (via international distribution networks). The value chain is important – Mothercare can greatly boost Phil&Ted’s image and sales. There needs to be more thought in regards to product differentiation. So certain products are considered top of the range, and others are the “economy – mass market” items.
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Masters of Business Administration, Session 1