You are the marketing manager for (fictitious) ACME Sporting Goods. ACME special

Question

You are the marketing manager for (fictitious) ACME Sporting Goods. ACME specializes in winter sports, such as snowshoeing, cross-country skiing, and downhill skiing. ACME is considering entering the market for snowboards. It faces competitors Brand A, Brand B, Brand C, and Brand D. Each is an established manufacturer of snowboards. You study secondary research and conduct primary research to find that the top two criteria consumers consider when purchasing snowboards (within a certain size and price range) are shape and flex. Shape refers to the profile of the board when viewed from the top, and can vary from directional (ride in one direction only; designed for fast downhill runs; rated as 1 out of 5) and twin (ride in either direction; designed for park or pipe riding; rated as 5 out of 5). Flex refers to the degree to which the snowboard deflects under load, and can vary from soft flex (rated as 1 out of 5) to stiff flex (rated as 5 out of 5).

You can conduct a survey comparing the perceptions of snowboards of those of your competitors and your proposed new product. The table below shows the results.

For your convenience, a blank perceptual map graphic is shown below. Note that the map is split into four (4) quadrants--lower left, lower right, upper left, and upper right.

In which quadrant can the perception for ACME's board be found?

A.Lower left B.Lower right C.Upper left D.Upper right

In which quadrant can the perception for Brand A's board be found?

A.Lower left B.Lower right C.Upper left D.Upper right

Which quadrant contains two of ACME's competitors?

A.Lower left B.Lower right C.Upper left D.Upper right

Which company offers a snowboard perceived to be the closest to that of ACME?

A.Brand A B.Brand B C.Brand C D.Brand D

You learn that Brand D decides to exit the market for snowboards, changing the competitive landscape. Given the new perceptual map this creates, what should you do?

A.Immediately change your board design to match that of the board formerly made by Brand D

B.Conduct research into the feasibility of launching a new board in Brand D's former quadrant

C.Give up; No money can be made in snowboard manufacturing and marketing

D.Purchase the molds and other equipment from Brand D as soon as possible

Snowboard Comparison Chart Brand Shape Flex ACME 3/5 2/5 Brand A 4/5 4/5 Brand B 1/5 5/5 Brand C 3/5 4/5 Brand D 1/5 1/5

Explanation / Answer

- Perception of ACME is found in B. Lower Right

- Perception of Brand A is found in D. Upper Right

- D. Upper right contains 2 of the ACME's competitors that is Brand A and Brand C.

- C. Brand C percieved to be closest to that of ACME

- Brand D is in Lower Left corner, with shape rating 1/5 and flex rating 1/5. Which means that it is catering to the new entrants and low cost consumers.ACME is better in both the parametrs that is shape and flex. They can eaily tap the market that D has captured as they can produce the lower rated products.

Thus option B . Conduct research into the feasibility of launching a new board in Brand D's former quadrant.

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