A Case Study on Toy Retailers Limited

Group 6
Campomanes, Axl Mie E.
Jardinel, Pia Villan D.
Magtira, Andrei Gabriel G.
Nobela, Rafael D.
Pamela, Salvador A.
Samosino, Alyssa Jane C.
Sinamban, Menniane B.

12 – St. Timothy
I. Situational Analysis

Company

In the Philippines, there is a growing market for toy retailing in the 1990s. Toy Retailers
Limited (TRL) is one of the key players in the imported toy retailing industry. Toy Retailers
Limited was incorporated in June 1997, is a company that manufactures innovative toys,
Infant line, and Juvenile Furniture. They provide various types of high-quality toys for kids for
them to enjoy. It is a commonly known brand, and they also offer high-end products. They
import and deliver products to the Duty-Free Philippines

TRL provides workforce, fixtures, and everything necessary to operate the store. In
1997, TRL entered into an exclusive concession operation agreement with the state-owned
duty-free shop, Duty-free Philippines (DFP). In this agreement, TRL became the sole
supplier of DFP for Toys, Infants Line & Juvenile Furniture, and took over the retail
operations of the Toys, Infants Line & Juvenile Furniture department of the new DFP Fiesta
Mall. As part of the concession agreement, TRL pays DFP 30% off its gross sales. It is the
first time that such a concession arrangement was awarded.

The company has been the exclusive supplier of Duty-Free Philippines. Duty-Free
Philippines merchandise their products to different locations. It caters to both Filipino and
Foreign people. The company provides everything necessary to manage and run the store.
DFP was organized as a part of the government's goal to establish and operate a tax and
duty-free merchandising system in the country. Furthermore, DFP was successful in serving
its purpose and in catering to its target market. DFP is part of the Department of Tourism's
significant programs. It provides over 60% of the government's tourism infrastructure
budget. It is DFP's belief that shopping is an essential component in the promotion of
tourism.

Context
DFP is the market leader of the toy retailing industry, and TRL is DFP's exclusive
supplier for Toys, Infant Lines, and Juvenile furniture due to the concession operation
agreement. The immense competitive price advantage of DFP in the domestic market in the
early '90s has been diminished because of the continuous appreciation of dollar making the
TRL's products more expensive than other domestic toy retailers. Also, the trade
liberalization enabled the domestic retailers to have tariffs on imported toys lowered to 10%-
20%. Several strategies for the price, product, place, and promotion are mentioned in this
case to maintain the company's profitability. The context, in this case is on how the TRL
should manage themselves despite the external factors present in the situation. With an
increasing number of competitors, the task is to know how should TRL place themselves in
the imported toy retailing industry.
Customer

Duty-Free Philippines (DFP) caters to the Filipino and Foreign traveler. The Fiesta Mall,
where Toy Retailers Limited (TRL's) store is located, is geared towards the arriving shopper.
Arrival Shopping may be availed by: (a) Balikbayans – Filipino's who have lived abroad for
more than 12 months or foreigners of Filipino ancestry who have also lived abroad for more
than 12 months. These customers are entitled to tax and duty-free shopping up to US 2,000
dollars. They can bring their entire family to shop with them, and they have the exclusive
privilege to purchase appliances and electronics and (b) International Travelers – Filipinos
who have lived or travelled abroad for less than 12 consecutive months. These customers
are entitled to tax and duty-free shopping of up to US 1,000 dollars. They can bring their
entire family to shop with them.

Competitors           

Aside from Toy Retailer Limited and Duty-Free Philippines, there is also the Toy
Kingdom, one of the largest retailers of toys in the domestic market. They provide lesser-
known brands rather than high-end brands. It is owned by the Shoe Mart of companies and
has various branches. The branches are located in different malls. Brands that are marketed
in the Toy kingdom are Mattel, Bandai, and Disney, Graco, and V-tech. Moreover, there are
also smaller toy retailers in Greenhills, such as Nova Fontana and Henry's on Pasay Road.
They can import small quantities of various toys and sell them at their own retail outlets.
Lastly, the most major department store also offers their toys and infant wears, but they
don't have a strong identity as the others.

 These are the three of ten significant suppliers that each hold an exclusive
distributorship for a product segment. Some of which are:

Distributor Product
Wellrich Barbie Dolls
Keebans Disney Character Toys
LIL Radio Collected cars

 TRL must purchase its merchandise through these local distributors who also act as
agents for these brands.
 The local distributors have aggressive marketing and advertising campaigns
 The liberalization of trade resulted in the reduction of tariffs which is favorable for
domestic retailers
 There are also other similar toy importers/retailers in Greenhills which import small
quantities of assorted toys and sell them at a discounted price at their own retail
outlasts.
 Figure 1. Brand logos of the TRL’s competitors.

Collaboration       

The TRL collaborates with DFP Company. The DFP Company accredited the TRL as its
exclusive supplier for its merchandise. The TRL has a concession agreement with DFP
Company. The DFP Company authorized the TRL as its sole supplier for their merchandise.
The deal allows the TRL to import without paying tax provided that the goods imported are
sold only at the DFP stores. And in exchange with the agreement, the TRL pays the DFP
30% of gross sales. The directors of the TRL are very familiar with the duty-free business for
ten years, but they have been handling other lines and have been very familiar with the
characteristics of the duty-free market, but that is the first time that they are handling the
Duty-free market directly.

II. Areas of Consideration

Product

TRL are the retailers of toys, infant lines and Juvenile furniture of DFP. However, the toy
section on DFP carried about 60 different brands and about 2700 different kinds of
merchandise or stock keeping units (SKUs). As an exclusive suppliers of DFP they have
been also purchasing their merchandises from the local distributors such as V-tech
Computer games, Barbie, Peg Perego ride on cars, Fisher Price, Asahi Radio Controlled
cars and so on, the 5 brands has also been consistent in terms of the best-selling brands.
As they are new in retailing industry, they cannot manufacture their own merchandises.

TRL are the retailers of toys, infant lines and Juvenile furniture of DFP. TRL was
requires to absorb all the remaining stocks of DFP which is approximately 12.5 months’
worth of inventories. The product mix is 20% high-end infant products and ride-on and 80%
are items bought at lose outs. However, the toy section on DFP carried about 60 different
brands and about 2700 different kinds of merchandise or stock keeping units (SKUs). As an
exclusive suppliers of DFP they have been also purchasing their merchandises from the
local distributors such as V-tech Computer games, Barbie, Peg Perego ride on cars, Fisher
Price, Asahi Radio Controlled cars and so on, the 5 brands has also been consistent in
terms of the best-selling brands. As they are new in retailing industry, they cannot
manufacture their own merchandises.

Places

TRL took over the retail operations of the toys, infant lines and Juvenile furniture
department at the new DFP Fiesta Mall which is about 200 meters away from the terminal 1
of Ninoy Aquino International Airport (NAIA) and is heavily advertised and fairly accessible
to travelers or customers. Thus, TRL occupies a specific location inside the mall, it has been
a first store whenever one enters the shopping area. However, within the period of time DFP
have been a regular habit for travelers with their new amenities such as the food court,
therefore, balikbayan and international travelers or customers are urge to bring their whole
families.

Figure 2. Duty Free Philippines Building, where TRL supplies their toys.

Price

TRL’s selling price are in dollars, therefore, they are more expensive than the domestic
toy retailers. Moreover, It was stated that DFP had no specific price positioning for their toys.
They just categorized their pricing according to low, medium, high end and mid-range price
point for almost every category of toys and infant products. The Asian currency crisis forced
DFP to continually mark down their prices and go on a continuous sale in an effort to retain
prices at levels lower than the domestic market. TRL cannot match domestic prices without
slashing its profit margins.
Promotion

Since TRL takeover the operations of DFP they has not apply any promotional strategy
that will help differentiate them from DFP. They have been participated in all the sales
promotions of DFP but until now they have not figured out a different image, wherein they
were still known as the toy section at DFP.

However, DFP used a “Peso Power” promotion which means they will accept peso at an
exchanged rate of $1 which is equivalent to P32 then give a 20% discount when the actual
dollar rate increased up to P40. Therefore, TRL adopt their strategy which is giving a
discount as a form of their promotion strategy, since they step in as a current operator of
DFP.

III. Problem Statement

Because of the trade liberalization allowing other toy retail companies to import with a
lower tariff, TRL experience a stronger competition on selling toys in DFP. The company
also struggle in adjusting in the instance of dollar appreciation, since they are selling at a
dollar price making a cost disadvantage. Hence, the TRL's case revolves around the
problem of increasing number of competitors that they cannot cope and the external factor
of continuous dollar appreciation. Specifically, the identified reasons for these are:

1. Despite having other domestic toy retail companies sell their products at a much
lower price and knowing that customers are now more price sensitive due to the
Asian currency crisis, how can they still sell their products and maintain revenues?
2. The TRL now contends with an increasing number of competitors, what particular
strategies fit the company to be able to keep ahead of the competition?

IV. SWOT Analysis

Table 1: Comprehensive SWOT analysis of Toy Retailer Limited

Opportunities Threats
O1: The liberalization of trade T1: There is a sudden
resulted in the reduction change of environment
on tariffs, so the TRL will in liberalizing trade
pay a lesser amount of enabling other
import tax. Hence, they distributors and suppliers
can use the extra money to enter DFP easily.
for other expenses. Thus, there is an
O2: The TRL has the option increase number of
of developing their store competitors in the
into a destination store industry.
which will be identified T2: Economic crises of the
by its own name and not devaluation of peso
just a shop under DFP. causing the prices to be
O3: The TRL has the option higher than the domestic
of developing their own prices causing the sales
 strategy in terms of sales
promotion.
O4: Toy Retail Limited
supplies toys to a firm
that caters Filipino and
Foreign resulting to a
wider market.
Strength-Opportunity
Strategies
S1S4O3:
Given the opportunity of
developing their own
strategy, the TRL can utilize
marketing strategies that
would suit wide and faster
market and location if the
Strengths
store such as market
S1: The Company to which
development, forward
the TRL supplies to
integration, related and
(DFP) has a fact growth
unrelated diversification etc.
of market. Meaning, they
S4O3:
have a lot of customers.
It is an advantage for the
S2: The location of TRL is
TRL for having directors that
accessible to travelers.
is familiar of the Duty Free
S3: TRL provides their own
Market in formulating their
manpower, fixtures and
own strategies to promote
everything necessary to
their brand.
run the store.
S2O2:
S4: The directors of the TRL
The location and market of
are very familiar with the
the TRL is very much an
characteristics of the
advantage for them to
Duty Free market.
establish their own name
under DFP.
S3O1:
With the change of regulation
resulting to the reduction of
tariffs, it will support the
TRL’s manpower and
fixtures.
Weaknesses Weakness-Opportunities
W1: The TRL cannot march Strategies
their domestic prices W1W3O4:
without slashing their The TRL can combat their
profit margins. weaknesses in terms of
W2: The TRL has not slashing their profit margins
embarked on any to align their domestic prices
promotion strategy that and a more expensive
will differentiate from products compared to other
to rapidly decline.
Strength-Threats Strategies
S1S2T1:
Despite the sudden change
such as the trade
liberalization and increasing
of competitors, the company
will be able to overcome this
using their independent
manpower and fixtures and
also having directors that are
familiar with the Duty Free
market. The company can
easily use their assets
(human resource & other
tangible assets) to adjust
from the crises especially that
they have done research to
their distributors and utilize
strategies like product
differentiation to compete
with the other toy retailer
S3S4T2:
The TRL can conveniently
solve or ease the damage
from the economic crisis of
the devaluation of peso,
because they have a wide
and fast-growing market and
a location that is accessible
to the travelers. Even if they
have higher prices compared
to domestic prices because
of these strengths to still sell
a lot in the market through
market penetration.
Weakness-Threats
Strategies
W1W3T2:
The devaluation of peso
caused them to lower their
prices (to match with the
domestic prices) and
negatively after their profit
margins and sales. These
 domestic toy retailers through
maximizing their wider
can all be prevented or can
market considering they cater
be less damaging if they can
Filipino and Foreign
focus on increasing or
travelers. As long as their
maintaining the sales despite
products preferable by the
cutting the prices such as
market, the cost of their
DFP. It is still known as increasing the production and
products does not really
the toy section of the intensive marketing efforts.
matter for customers.
DFP. W2T2:
W2O1O2:
W3: Selling prices of the TRL Having more competitors in
Using the company’s extra
at DFP are in dollars, DFP and the weakness or
money from the tariff
therefore, their product not embarking a strategy to
reduction and the opportunity
has been more promote their products are
of the developing store that
expensive than the other very disadvantageous to the
can be differentiated and
domestic toy retailers. company to solve this, the
utilize own strategies will
TRL shall company to solve
definitely conquer their
this, the TRL shall focus
weakness of being known as
more on differentiation to
the toy section of the DFP.
achieve features and
They can explore to different
attributes that can compete
promotional activities like
with other retailers.
market penetration and
product development.

V. Alternative Courses of Action

Ms. Maggie Agustin, the TRL Merchandising and Marketing Manager, have already
primarily identified strategies to use in terms of product, price, promotion, and place. But
with the fore mentioned problem statements, it all boils down on how the company should
manage competition in the industry. Thus, below are the Alternative Courses of Actions
(ACA) and its advantages and disadvantages:

ACA 1: Undergo horizontal integration to reduce competition in the industry.

Pros:
 Horizontal integration widens customer base. TRL and the other company may
differ in target markets. Hence, the new organization now has access to a larger
base of customers by merging the two companies into one.
 Horizontal integration increase market share or market power. When the TRL
and other companies merge, they also combine their respective resources such
as product base, technology, and services that are available on each company.
With more products under one name, the company can increase its position
among consumers.
 Since there is a wider customer base, revenues will increase compared to their
sales when the two companies are operating individually.
  Cost advantage in the sense of having a larger market resulting to increased
number of products produced by the company and eventually lower cost per
units.
Cons:
 This strategy might seem a predatory act for the regulatory authorities, because
the parent company can take too much advantage through increasing product
prices.
 If the two companies do not cooperate well, there will be clashes of management
style and culture, and wider problems integrating businesses that operate in very
different ways.

ACA 2: Determine niche market and ensure that this market’s needs and wants is
addressed.

Pros:
 Determining the niche market allows the company to build their brand loyalty,
because items in niche market are difficult to find in general market and provide
the customers’ critical need.
 Since niche marketing is about taking the company’s products to people who
have an interest in receiving them, it is an opportunity for the TRL to redefine the
business that lead to new product and service developments. The focus
advantage will help the company concentrate on new products, innovations and
ideas in the market.
 There will be less marketing efforts to be done because the products are set for a
specific market segment. Less marketing efforts will save a percentage in the
allocation.
 Having a niche market will improve visibility in the market. Thus, it will help the
company establish their own brand image and not just simply a toy section in the
DFP
Cons:
 Smaller market size makes it difficult for the company to expect a larger profit
margin in the market. Thus, there will be limited growth if there is only a small
group of customers that buy the company’s products.
 It will be a problem if the company’s target customers will be other competitor’s
target customers. Intensive knowledge about the competitors is required.

ACA 3: Develop Unique Selling Point (USP) and differentiate the company from other toy
retail companies.

Pros:
 USP makes the company’s differentiation efforts clear to prospect and compels
then to give the brand a strong consideration.
  A significant USP such as establishing unique features, quality materials, better
style, elite service and brand reputation will create a greater potential revenue
advantage.
 An appealing differentiation will result to loyal customers. Buyers are most likely
to return and repeat purchases because of a great deal for the product and price.
 It is easy for the company to promote and advertise the product when the value
of the product is evident. Sales representatives convey the value easily because
they recognize it themselves.
Cons:
 There is a reduced flexibility in the products once the USP is already established.
External factors like technological and cultural change can give the company’s
USP a short exposure in the market.
 Claiming the product as unique while the consumers don’t will not entice
customers. Intensive market research is required to highlight differences in
product features, pricing, production practices, discounts, company culture,
speed and reliability. USP is useless if it does not seem unique in the market.

VII. Conclusion

There are many aspects that resulted this problem to occur. Hence, there also several
ways on how to approach this problem effectively to aid the impact of the problem and
improve the sales and operations of the TRL. All the Alternative Courses of Action (ACA)
mentioned above are the various ways to solve the problem mainly on the increasing
number of competitors in DFP. Each ACA has its own advantages that will be helpful to the
company and disadvantages if the strategy is not implemented well. Upon weighing the pros
and cons of each ACA, we have concluded that ACA 2 is more relevant to the case of this
study. ACA 2 highlights the identifying of a niche market and ensuring that this market’s
needs and wants is addressed.

Instead of marketing to everyone who could benefit from the products, niche marketing
is a strategy that concentrates on a unique target market. This strategy focuses exclusively
on one group or demographic of potential customers who would most benefit from the
offerings. This a strategy that fit for the competition in DFP because it allows the TRL to
differentiate themselves, appearing as a unique authority, and resonate more deeply with a
distinct set of customers, rather than blending in with many other brands in the market.
Niche marketing makes the brand stand out, seem valuable, builds a stronger connection to
the ideal set of customers and reach growth potential.

Niche marketing is beneficial for having a small customer base. When the TRL is
engaging with fewer people, they can focus on the quality of those engagements and on
nurturing customer relationships. The company can also accommodate special requests,
offer custom services, and get to know your customers on a more individual level. This
strategy establishes brand loyalty. Further, it requires more concentrated practice in one
area, so it can really fine-tune your expertise in a shorter time period. If TRL does a lot of
things but is good at one specific thing, it will make them stand out and even become known
for that specific thing. For example, TRL can specialize in travel-friendly or luggage-friendly
toys, artsy toys, children with special needs, etc. Niche marketing is a cost-effective benefit
when it comes to audience segmentation. TRL can also operate more seamlessly and give
undivided attention to this one area. Generally, it will make it easier for the company to
reach to its customers, offer their products and eventually create revenues.

On the other hand, niche marketing is disadvantageous to small entities. In this case, it
is not a problem of the TRL because they have established their business even before and
is continuously growing. One of the disadvantages mentioned was the limited growth as
there are only a few customers that purchase the products. This disadvantage might be a
problem in starting the implementation, but it would grow in the long run especially that
brand loyalty and customer relationships are fostered.

In the end, competition is healthy in the industry as it encourages each company to

strive harder. However, implementing strategies to reduce competition is not entirely a bad
move. The fewer competitors TRL has, the less TRL must worry about monitoring prices and
keeping updated on what they’re up to. Weighing the niche marketing strategy's pros and
cons, the pros are highly anticipated, and the cons are merely present. Therefore, the group
decided that among other strategies that can aid the company to beat the competition,
identifying a niche market works better.

Niche marketing is beneficial for having a small customer base. When the TRL is
engaging with fewer people, they can focus on the quality of those engagements and on
nurturing customer relationships. The company can also accommodate special requests,
offer custom services, and get to know your customers on a more individual level. This
strategy establishes brand loyalty. This strategy will help the TRL establish their own brand
image, making them known as a toy retailing company and not just a mere section in DFP.
Further, it requires more concentrated practice in one area, so it can really fine-tune your
expertise in a shorter time period. If TRL does a lot of things but is good at one specific
thing, it will make them stand out and even become known for that specific thing. For
example, TRL can specialize in travel-friendly or luggage-friendly toys, artsy toys, children
with special needs, etc. Niche marketing is a cost-effective benefit when it comes to
audience segmentation. TRL can also operate more seamlessly and give undivided
attention to this one area. Generally, it will make it easier for the company to reach to its
customers, offer their products and eventually create revenues.

VIII. Recommendation

Implementing a marketing strategy follows a concrete system. Certainly, using ACA 2 or

the identification of the niche market and ensuring that this market’s needs and wants is
addressed undergoes a due process and stages to ensure that the niche market chosen will
create potential revenues. Following the process will help the company focus its marketing
efforts and resources on reaching the most valuable audiences and achieving business
goals. This strategy is true to manufacturers like TRL who supplies toys to DFP where there
are multiple market segments are present. Niche marketing will help the TRL withstand
competition in the current situation of the DFP, where other domestic toy retail companies
also sell close to similar products. Hence, the proponents of this study recommend the
following system composed of general and specific steps by Smale (2016).

First step: Identify the company’s interest and passion.

Evaluating the firm’s interest and passion does not only mean this market is
something that seems interesting. It must be sustainable for the company and it is
something that they wanted to serve in the long run. The prospects for the niche market
must be familiar to the people of the company so that it will boost productivity. This step
allows the company to see on what area of product development are suitable for their
convenience and potential revenues. The research and development team of the TRL
shall meet and discuss the possible niche markets that the TRL will be exploring soon.

In the context of toy retail companies, they can assess if they are innovative and
creative in (a) learning tool toys that enables the children to learn while playing, (b)
travel-friendly or luggage-friendly toys that is good for travelling through not occupying
much space in the luggage bag or balikbayan boxes, (c) artsy toys for children who are
creative and loves to do art, (d) children with special needs addressing these kids that
are still able to play and have fun despite their disabilities, (e) mobile toys that are full of
technological capacity, (f) organizations or charity work that the TRL is affiliated to, and
so much more. There are many segments that the company can explore, however, they
must find something that they are passionate about and generating ideas will not be a
problem for them.

Second step: Identify the problem that the company can solve.

With the multiple niche market prospects that the first step provided, the second step
shall narrow these suggestions. The company shall create an online survey answering
what they want to see in the TRL store in DFP. To create a profitable business, the
company first need to find problems the target customers are experiencing, then
determine whether the company can actually solve them by the niche market prospect.
The selected niche market must solve a problem experienced by the customers that is
not addressed or overlooked by any toy retail companies. This step allows the company
to ensure that they are going to receive revenues because they are solving specific
problems that other competitors cannot.

In the perspective of TRL, their research team can look into what specific problem
they want to address using their products. They can opt to aiming fun-filled learning
experience through their learning tool toys, aiming multiple bring-home toys or
pasalubong that will fit a traveller’s bag through the travel-friendly or luggage-friendly
toys, aiming to provide toys for children to unleash their creativity through their artsy
toys, aiming to give joy to the disabled children through toys that can be used by children
with special needs, aiming to produce items for children who loves to go around through
mobile toys, aiming to provide toys that align their partnered organizations or business,
etc. Surely, there are many problems that a niche market can solve, the company just
have to match their capability of producing these toys to the customers’ needs and
wants.

Third step: Research the company’s competitors.

Undoubtedly, every business is required to know their competitors, but in the context
of finding the right niche market, gathering information about the company’s competitors
will help the company to choose which niche market are they going to stand out in the
industry. It also allows the company to select a niche market that is not selected by the
competitors in the area. Choosing a niche market that is not chosen by the competitors
will help the research and development team to search for a unique offer. It is essential
for the company to know its competitors in order for them to communicate with their
target audience, distinguish the business from the competitors, improve the current
processes, and overcome challenges in the market. Importantly, the more the company
know about the competitor’s positioning, the more that they can differentiate their
company from it.

The identified competitor of the TRL are Toy Kingdom and other domestic toy
retailers. In this case’s setting, the TRL must understand their competitors’ pricing and
discount schemes to help determine what price would also be right for them, strengths
such as customer service that best serve the customers to innovate a similar or a much
better offer and weaknesses or gaps in the industry to provide opportunities for them to
fill. They can basically get these details from the word-of-mouth of their customers, press
reports, advertising channels, exhibits and fairs, websites, annual reports for big
companies, etc. These insights that the TRL can gather from researching about their
competitors will help them improve their own marketing strategies and truly stand out to
the target audience.

Fourth step: Determine the profitability of the niche market.

Choosing a niche entails being knowledgeable of what your chosen niche is all
about. Maybe there still several prospects not narrowed down in your list down, but the
company likely found a few ideas that is potential for the success of the firm. At this
point, it's important to get an idea of how much money or revenue your chosen niche can
make. Of course, every company would want to make their strategy fruitful of profits,
which makes this step crucial for them to be able to know if it is profitable or not. In this
step, the company must follow a process in finding a profitable niche.

TRL, in this phase, would not have a hard time in sweeping great profits if they are
passionate enough of their niche. The TRL can check the niche market value that will
 help the firm in the decision-making process of whether to go for it or not. The entity
should also look into the past and present trends in the market to analyse the stability of
the niche. TRL must find ample products to promote and sell. Product ideas must be
brainstormed well considering the niche and the sub-niches. For example, if the TRL opt
for the creative toys for children niche, the sub-niches include creating stuffs or do-it-
yourself kits, drawing and coloring materials, experimenting kits, etc. More so, the TRL
can check the audience’s will to pay through reviews. The company can get this
response from the product evaluations. The company should also check their willingness
and capacity to invest in the promotion of their products for the niche market. The TRL
could also determine if the niche is profitable if there is a strong affinity or association of
the target audience.

Fifth step: Test the idea.

The previous steps have taught all the necessary information to choose the right
niche, and the next thing to do is to test this idea. Testing the idea of having a certain
niche market would inculcate the company if it reached the marketing strategy
objectives. It must increase revenues and stand unique among other competitors.
Otherwise, the strategy is ineffective. This step is vital because it involves customers in
the development process making them feel more invested in the product and extended
to the company. Feedback from customers can provide invaluable input to the
development process and research provides important knowledge on consumer
behaviour.

In this case, the TRL should first conduct a small-scale launch or other customer
research in a test market. The intent of this type of test marketing is to assess how
products will be received on a wider scale within the niche market. Test marketing helps
ensure your product and marketing strategy are sound, and it can also provide TRL with
valuable information on customer feedbacks, marketing mediums, and distribution
issues. With the results from your test market in hand, the company can then move
forward with full product series launch designed for the niche market with confidence, or
if necessary, refine the marketing strategy. There might be instances that the chosen
niche market may not be as effective as expected, but it does not mean the TRL should
go back to zero and choose another niche market. The company shall then plan and
create backup plans such as major and minor adjustments in the strategy. In this way,
the TRL is able to systematically re-evaluate the niche market options and its processes.

Other References:
(2017). How To Differentiate Your Company. Retrieve from
https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp
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