Executive Summary
This report has found that Cow How has various strengths such as superior taste and positive customer perception, which it can rely on to ensure its products’ success. However, the company is targeting the wrong audience, which may waste resources on unproductive promotion activities. Therefore, this study recommends that Cow Wow change its target market and focus on high school and college students to maximize its profits.
Statement of Immediate Problem
Cow Wow is facing the problem of targeting the right customer. This problem has been caused by unexpected publicity in the media outlets that made Cow Wow products originally made for children to be highly purchased by high school and college students. This implies that Cow Wow may be targeting the wrong customer segment and therefore wants to rethink its strategy and target market. By focusing on the right target market, Cow Wow will be able to channel its funds, promotions, and products to the right customer segment.
SWOT Analysis
Strengths
One of the strengths of Cow Wow Cereal Milk is its superior taste. This product has been carefully made to give it a unique taste from other cereal milk. TV host Jimmy Kimmel described Cow Wow’s superior taste as a product that tastes like heaven.
The other strength of Cow Wow is positive customer perception. Cow Wow has a positive customer perception and was even labeled the lead fun item in Cosmopolitan magazine 2013 (Grossmannnov, 2014). The positive customer perception has made the product attract many college and high school, customers.
Cow Wow boasts of knowledge and skills to make unique flavors. Unlike the competitors who rely on vanilla, strawberry, and chocolate flavors, Cow Wow has personalized flavors. The use of unique flavors makes their product taste stand out in the market.
Weaknesses
Cow Wow was experiencing a lack of enough funds to ensure that their products were competitive in the market. That is why they could not give discounts, making them face still pricing competition from their competitors. With adequate funds, Cow Wow may have competitive pricing strategies in the market.
Cow Wow has been unable to segment and target its market appropriately. Cow Wow was a product made for children; however, most consumers are high school and college students. This shows that Cow Wow is still targeting the wrong market segment.
Cow Wow is facing an inadequate supply chain. Despite the high demand for Cow Wow products by the consumers in high school and college, the products are not yet available countrywide. Cow Wow should seek to enlarge its supply chain by signing deals with big retailers such as Walmart.
Opportunities
Cow Wow’s main opportunity is to move from the children’s market segment and focus on high school and college students for their product. This is based on the sales and the consumption of their products. Changing the target market may improve the sales of the product.
Cow Wow has the opportunity to capitalize on the positive publicity provided by the media. This can be done by increasing the production of their products and availing them to the market. With the influence of media personalities and entertainment magazines, the company should take this opportunity to sell its products to the larger market.
Cow Wow can add more flavors to expand their market segment. Cow Wow can use the skills and expertise to make more flavors and increase its brand portfolio. Since consumers have shown interest in the new flavors, this would be an opportunity worth grabbing.
Threats
The main threat is competition from other dominant players in the market. Since they are more established and have more access to capital, they can effectively compete with Cow Wow by offering discounts and lower prices. Cow Wow should seek strategies to address the competition.
The other threat is a trend change in consumer habits. Cow Wow is mainly taken as a trendy product; therefore, it might be vulnerable to changing consumer trends. Once the trend is over, it may experience a big backlash in the market whereby nobody wants to be associated with an old-fashioned product.
Cow Wow faces the threat of losing its customers if it switches the target market. Most Cow Wow customers may love the brand due to its current packaging and size. However, changing the product may alter the consumers’ perspective on its originality, making them lose a large market share.
Marketing Mix
Product
Cow Wow is a product that satisfies a unique customer need in the market. It has special flavors that make it have a different taste than competitor products. This enables it to fulfill customer needs.
Price
Cow Wow has not yet adopted a good pricing strategy for its products. Compared to competitor prices, Cow Wow products are expensive. It is important to adopt a competitive pricing strategy.
Place
Cow How has not yet had an optimal display for its products. It is important for Cow Wow products to be placed in places convenient to the target market. Therefore, it is important to sign more contracts with learning institutions to add Cow Wow into their stores.
Promotion
Cow Wow has done excellent in the promotion of its products. Additionally, it has received significant backup from the media in promoting its products. This shows that the consumers are widely aware of the product.
Action Plan
Cow Wow should change its target market ad focus on consumers who need its products more, including high school and college students. This should be done by the management changing the size and authorizing repackaging of Cow Wow to fit the needs of high school and college students. This move is crucial because a business needs to focus on the right customer segment and give them the right product for it to flourish. In case the plan does not work, Cow Wow can go back to producing the product for children as done before.
References
Grossmannnov, J. (2014). A sweet breakfast memory that connects with the wrong market. New York Times.