Critical Analysis: Handbags and Wallets

Question 1:
Conduct a critical analysis of the mini-case.

CRITICAL ANALYSIS OF THE CASE

CRITICAL ANALYSIS OF THE CASE
• The product mix of the company is Handbags and Wallets.
• These company operates within a dynamic and ever-changing environment as it produces fashionable products.

CRITICAL ANALYSIS OF THE CASE
Buying situations for Handbags and Wallets:
Limited Problem Solving
Impulse Buying

CRITICAL ANALYSIS OF THE CASE
SWOT ANALYSIS

CRITICAL ANALYSIS OF THE CASE
Strengths
• Extremely popular / High reputation
• Already has an established customer base and market share
• On growth stage on the Product Life Cycle
• Tania’s skills and inner instinct for fashion and trends; she is a talent oriented person
• Droning on differentiation, segmentation and positioning
• If able to compete with other companies, it will acquire a greater market share

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Weaknesses
• It is a small company; it might struggle to survive
• Tania is uninspired and could therefore lead to her demotivation
• Lack of marketing knowledge from Tania
• Unwillingness to learn further – “Innovate or evaporate”
• The handbags and wallets are popular among existing customers but it is not focused on customer needs and requirements of customers. CRITICAL ANALYSIS OF THE CASE
Opportunities
• Year-on-year industry growth
• There is scope for market development; market penetration
• Scope for customerisation
• Technological advances

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Threats
• Fashion industry is competitive and dynamic; it is a forever changing environment, therefore, the company needs to adapt itself or perish.
• Counterfeit products can also affect the sales of handbags and wallets wallets
• Growing influence of lobbyists (PETA, WWF)

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• Carry out a market research

CRITICAL ANALYSIS OF THE CASE
• Tania should grasp the marketing concepts to understand customer needs so as