Discuss about Stretch ‘r Wings and its strength
Introduction
Stretch ‘r Wings is a company that has been designed to manufacture medical units to be fitted in
aircrafts and helicopters. The location of the factory is strategically located at the Metro, IL area
near the dock that can be exploited for convenient shipping services and access to the state
university’s engineering programs that will make their products confirm with the FAA, STC and
PMA standards.
Strategic sales plan
- Stretch r Wings intends to achieve a turnover of $599,900 in year five from $26,495 in the
first year. Stretch r Wings Net Profit Margin is expected to reduce to negative -70% in year one
while year two it’s expected to increase to 1.89% and later 19.27% in year three. Year four and
five it’s expected to increase by 22.48% and 30.89% respectively. The Return on Equity is also
expected to increase to 48.64 in year five from negative 71.2% in year 1. The inventory turnover
in year 1 is expected to be 10.91 in year 1 but it’s expected to reduce to 3.15% in year four. The
Company Analysis – Sales Analysis of the Stretch’r Wings 2
Gross Profit margin is expected to average 78% from year 1 to year four while year five it’s
expected to reduce to 38.9%.
Stretch r Wings has targeted specific markets that it intends to exploit in order to meet its goals.
These are the US defense forces and the commercial and private airplanes. (McDonald &
Dunbar, 1998) It has also utilized the Segmentation strategy that involves the classification of the
entire market for a specific service of providing medical kits.
Market segmentation finally leads to the product differentiation particularly from the other
segments or sectors while differentiating it from its rival’s products. Stretch r Wings intends to
use aluminum frames which is very light and strong against the major competitors whose
frames are heavy and cumbersome. They have also been fitted with glide ease stretchers
and above all Stretch r Wing intends to sell its products at a low price. (Kotler, Keller,
Brady, Goodman & Hansen, 2012)
- Their marketing mix is very effective but can be improved by providing the vigor and strength
on which the company’s products can get an upper hand in entire the market.
It needs the skills of a very experienced marketer to successfully launch the new product in the
market. It matters very little how the other brands in the market are performing or how small the
Stretch ‘r Wing products are performing in the market but what really matters is its positioning
and the buying habits of the customers. (Dickson & Ginter, 1987) - The marketing strategies adopted by has all the details from product differentiation,
segmentation and to specific targeting of particular markets and also the competitors involved.
Company Analysis – Sales Analysis of the Stretch’r Wings 3
- The combination of Strategies to form a marketing mix is required to achieve the desired goal.
Positioning products assists in explaining the uniqueness of the products in the market and it
outlines their individual advantages against their rival products operating in the same industry.
For any business communication to be more effective, the client must literally form a rough
picture on his general perception of the product which will automatically influence the price that
someone is willingly and ready to pay the services or products.
References
Dickson, P. R., & Ginter, J. L. (1987) Market Segmentation, Product Differentiation, and
Marketing Strategy. Journal of Marketing, 51
(April), 1-10.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2012) Marketing Management. 2 nd
edition, Essex: Pearson Education Limited.
McDonald, M., & Dunbar, I. (1998) Market Segmentation: How To Do It and How to Profit
From It (Second Ed.). London: Macmillan Press Ltd.
