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SC will have to face different regulations and political regimes – some stable and supportive of business others less stable and less pro business due to expansion in USA, South-east Asia, and Baltic states. 3. Adjustment to government taxation and trading policies in different countries of operation Economic: 1. Economic recession may reduce spending on up market baby products and increase the demand for second hand baby equipment. 2. Greater global competition is creating the need for differentiated products and offers opportunity to increase market share for Silver Cross’ highly varied and differentiated products. 3. Steady growth in baby transport and nursery equipment market since 2003 and predicted growth has helped Silver Cross to exploit this opportunity by expanding its distribution network and product range. 4. Estimated value of baby product market in UK is £1 billion which is the main market of operation for Silver Cross and is predicted to rise. 5. High income elasticity of demand for premium baby products. 6. High consumer confidence – spending on expensive and high quality baby products.
7. Increasing fuel prices will drive up distribution cost for Silver Cross in UK & worldwide. 8. Exchange rates fluctuations will impact trading and transactions costs and make it difficult to forecast revenue for Silver Cross in overseas market. 9. Silver Cross needs to consider export tariff for each export market. Socio - Cultural: 1. Late parenthood & reduction in average family size in UK since 1950. 2. Increase in no. of multiple births due to clinical birth treatments as a consequence of late parenthood. 3. Increasing proportion of childless females. 4. Increasing style and fashion consciousness in the population. 5. Older, affluent, well-informed and style conscious parents spend considerably on differentiated and stylish baby products. 6. Two-earner households – higher disposable income and higher consumer spending on baby products. 7. Guilt spending by parents due to insufficient family time with children. 8. Frequent use of car and other forms of transport like buses, metro rails, air flights etc.
15. 5. of babies less than two years of age. and recycling. 14. regulation and conformance to standards with regards to impact on environment such as UK Environment Protection Act and ISO 14000 certification. 2. Greater emphasis on safety and quality standards. waste disposal. Enhancements in baby transport safety standards. offers new and alternative promotion & communication opportunities through integrated marketing campaign & helps in getting customer feedback. 6. Silver Cross owner William Wilson has over 30 patents registered to his name. Increased access of consumers to broadband due to low cost and greater availability. Rise of internet & online social media – increases brand visibility and awareness. Increased consumer mobility for work & leisure activities has fueled the demand for baby travel systems and other multi-purpose products. and social networking platforms about their needs. Greater legislation. Impact of style conscious market on design and manufacture of baby products. Technological: 1. emission & discharge. Technological innovation has enhanced the development of multipurpose products in baby transport accessories and home care sectors. and EFTPOS due to advancement in technology. Consumers are becoming tech savvy and there is growing communication between them through blogs.9. Use of IT based logistics systems for efficient delivery to wide distribution networks – 200 retail outlets in UK & 260 Babies ‘R’ Us stores in US alone along with other countries of operation. 7. EDI. provides product information to customers. Migration towards online retailing. 10. 8. Greater awareness of an emphasis on philanthropic endeavours by both organizations and consumers. Legal: 1. . Population is becoming more style conscious. Baby boom in UK – increasing no. Mining & warehousing of data from online content and other sources & increasing use of Marketing Information System (MKIS). 4. Environmental: 1. 2. forums. Greater environmental concerns over production and manufacturing processes such as energy consumption. Silver Cross is a privately-owned company and therefore has limited liability. 3. 11. 12. product information & reviews. 2. Use of highly mechanized and state-of-art machinery to automate the production process. 13. experiences. 16. Greater celebrity following due to media coverage – celebrity endorsements for baby products.
. 7. 5. 6. environmental standards etc. innovative. In-house designers and product development specialists formulate specialized. Increased regulation of advertising – especially when aimed at children – in developed countries like Advertising Standards Authority (ASA) in UK. Significant investment in thinking and modernized new development. aspirational and stylized brand image – appeals to stylish. modern and broad segment of parents in UK & worldwide. website. Operation in EU countries require conformance to EU legislations on trade practices. 9. Silver Cross is lagging behind other baby and nursery brands in social media space. 6. 4. forwardproduct Weaknesses 1. high quality. safe. PR activities and digital media. Presence in selected markets. innovative and easy to use designs that is favored by parents 4. 7. In spite of being present in many countries Silver Cross still gets 80% of its revenue from UK alone and very less from other countries. yet to expand globally hence cannot take the advantage of global reputation. monopoly position. Effective marketing communications print and online advertising campaigns. 4. 3. 5. 8. SWOT ANALYSIS Strengths 1. 2. Popularity of brand with the celebrities and word of mouth endorsement alongside controlled official celebrity endorsement gets Silver Cross positive PR and marketing coverage without being labeled as unobtainable. Contemporary. Increased emphasis on safety in baby transport market as a result of increased emphasis on health and safety legislation in developed countries. 2. Online retailing – suffers from lack of specialized website services that offer new & current parents expertise and help in making online buying decision. Dedicated marketing budget – 10 to15% of annual revenue. contemporary and efficiently designed products with a heritage background. Strong Brand Equity – stylish. Lack of own specialist retail stores – reliance on distributors for representing the brand. Low market share in nursery furniture and equipment markets. fresh. customer service. customer feedback. marketing & promotional support. 5.3. Lifestyle range of Silver Cross’ contemporary baby product – launched in 2003 and has won many awards ever since. Heritage background and endorsement from British royal family lends exclusivity to the brand & also appeals to international customer base. Conformance with legislation and regulation of different countries of operation. pointof-sale promotions. Trailing in brand share for premium prams. 6. participation in trade and consumer events. 3.
3. superior quality. 15. 12. Threats 1. 3. 13. Efficient and pro-active customer service assist customers in making buying decisions. 17. Marks & Spencer.10. Well informed and fashion conscious parents – demand for better-designed. 11. Well-thought-of. Transparent business conduct and direct customer interaction – strong & honest customer relationship. 18. 2. Increased consumer mobility – high demand for mobile. Presence on the internet – user friendly corporate website resonate the brand image. 16. 4. online club – Your Silver Cross’ and forum helps parents share their baby product needs and product reviews. safe and durable . Prestige pricing for the handmade heritage collection gives the brand an authentic and aspirational appeal whereas competitively priced models bring in major percentage of revenue. 14. Baby boom in UK. Competition in nursery equipments from global retailers like IKEA. better looking. Involvement in effective and transparent CSR activities – supporting ‘The Meningitis Trust’ Opportunities 1. stylized and safe products. Older affluent parents with dual earnings – more spending per child due to higher disposable income & spending less time with the children. Mothercare and specialist retailers like Mamas & Papas. Multiple product lines – diversification into multiple product areas insulates from the vulnerability of falling out of fashion trends. Competition from Babies ‘R’ Us through its unique product range and retail outlets having logical sequencing of baby essentials sections and in-store experts to advice incoming parents. Movement in to modern product areas with key focus on fashion – attracts modern parents for whom fashion plays a key role in choosing baby transport & other products. Specific targeting & profiling of customers – data collected from online consumer registration. lightweight. carefully timed and appropriately channeled promotional campaigns based on the brand image. and acquire relevant product information. Highly fragmented market – high competition 2.
Foray into social media like specially designed ‘Days Out’ site for parents. Competition from many small. High main media advertising expenditure from competitors like Chicco. proportion of childless 11. Social media though brings lot of advantages to the brand but at the same time can quickly dispense any negative publicity about the same. 8. 6. 9. Plans to use ‘Days Out’ site for targeted email marketing to its registered users. Predicted high growth of baby transport market from 2% to 2. 7.4% per year from 2008 to 2012. 7. presence on Facebook helps parents to interact. 13. . Economic recession – reduced disposable income and job insecurity will result in decline in demand for up market baby products and increase the demand for second hand baby products. niche manufacturers with online retail capability. as per market research. 9. share ideas & product reviews. increase brand awareness and deliver the brand message effectively to existing and potential customers. ASDA & Sainsbury) in UK. 6. Increasing consumer interest in CSR credentials of organizations – Silver Cross can involve in variety of CSR activities apart from supporting ‘The Meningitis Trust’ which can boost its image on all aspects of its business.baby travel systems. Competition from mass market products with research indicating that supermarkets are being increasingly common place to buy baby products. Digital media platform provide opportunity to Silver Cross to build brand strength. 4. 8. 12. reviews. usage experience. Predicted rise in retail sales of nursery products from £133 million in 2008 to £149 million in 2012 – a profitable area for Silver Cross to focus its marketing activities. 11. in premium pram 5. 5. 10. 12. Own-name in-store nursery equipments marketed by giant supermarket chains (Tesco. Mamas & Papas in last few years. 10. and get appropriate information regarding their baby product needs from each other & with Silver Cross. comparisons and updates 13. Overall high growth of baby product market predicted by Mintel to touch £753m by 2013. Collaboration with Babies ‘R’ Us to expand in US market as well as expansion plans in Europe and Asia-Pacific. Increasing woman. Increasing preference of parents for second-hand well maintained baby equipments. Competition segment. Integrated marketing campaign provide customers with product information. Declining trend in number of children per family in UK from 1950 onwards.
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