Strategic Marketing Plan
Part A: Environmental Analysis and SWOT Analysis
(Due in Wk 2)
Company Description
For the environmental and SWOT analysis, I selected BPI Sports LLC before making a strategic marketing plan. It is based in the United States, Hollywood, Florida.The line of products this company works on is nutritional supplements. It not only develops and formulates but also works on marketing nutritional supplements. Its mission is to deliver the highest quality nutritional supplements for muscle gain and bodybuilding to its consumers, which can optimally help them reach their fitness goals(Directory, 2021). The vision statement is based on the phrase “make a difference.” They have the vision to formulate the best product to inspire and implement changes in the human physique. The company was established in 2010. It operates with 51 to 200 employees.
Environmental Analysis
Competitive Forces
The industry of nutritional supplements, whether it involves mineral/vitamin supplements or protein supplements, is on the rise and incrementing at the rate of 7.1%. This fact has attracted a lot of developers to establish their companies in the market, which has led to an increase in the competition. The main component to survive this completion is to gain the customers’ loyalty. This can only be achieved through time. As people become more comfortable and dependent on a specific nutritional supplement, they tend to stay with the same brand instead of choosing another one. FitFlex Company is the biggest competitor of BPI sports in the nutritional supplement industry. BPI Sports is spending more resources to gain customer loyalty which is a beneficial factor as it provides an edge over FitFlex Company.
Economic Forces
Economic issues have rendered the sales low, which has led to a low-profit margin for BPI sports. This economic issue was due to the factor of quarantine due to the COVID-19 pandemic.
Political Forces
During the year 2016, elections were scheduled. It was predicted that the inflation rate would reach 1.7%(The Election’s Effect on Expected Inflation, n.d.). This increment in inflation caused a rise in the cost of manufacturing. Spending more revenue on manufacturing led to narrow profit margins.
Legal, Regulatory, and Ethical Issues
The food and drug administration (FDA) is a regulatory body that monitors the standards of nutritional supplements. It checks not only the manufacturing process but also the ingredients that are added to the supplements. Any issue, whether it is regulatory or ethical, can lead to serious legal charges.
Technological Forces
The technological issues faced by the company in the past have already been resolved involving the use of advanced formulation machinery in the developmental process. For online fitness programs, relevant technical support has also been established to face the pandemic-related issues.
Social Forces
The social trend of relying on computers to attain good fitness levels during the time of quarantine in the COVID-19 pandemic has increased the involvement of consumers in this company.
Current Target Markets
The target market comprises people who are fitness enthusiasts, obese people, sportsmen, and bodybuilders. The main mode of marketing has shifted to online as it is more accessible to customers.
Review Current Marketing
The current marketing involves marketing sites on social media such as Instagram, Facebook, and Twitter. Only 20% of the total revenue is utilized in the marketing area.
SWOT Analysis
Strengths
The main strength of this company is its customer loyalty due to its high quality of nutritional supplements. It also provides online access to its customers, making it convenient for them.
Weaknesses
Lack of FDA approval certification because less revenue is spent on the research about the supplement. The brand is known on a small scale only.
Opportunities
The development of new products with enhanced features can be made possible by using technological advancements and advertising the new products on different platforms. Policy formulation can also help in the reduction of manufacturing costs.
Threats
Unsatisfied customers and how they spread bad word about the product and the new competitors entering the supplement industry.
Strengths to Opportunities& Converting Weaknesses and Threats
To gain the approval certification from the FDA, some of the revenue should be contributed to the research of the supplements. With the development of new products and FDA certification, the brand image can be improved, and with new marketing sites for promotion, more customers will be attracted to it.
Marketing Objectives
The marketing objective of BPI sports is to develop new products with more efficacy so that with better outcomes, more customers can be attracted, and the loyalty of the previous customers can be improved. It is also projected that with the launch of new productswith low cost, the profit margin will increase by 10%.
References
Directory, D. B. (2021). Bpi Sports, LLC. Retrieved from https://www.dnb.com/business-directory/company-profiles.bpi_sports_llc.274ca90d2bff86a1418e0515649742d1.html
The Election’s Effect on Expected Inflation. (n.d.). Elections Effect Expected Inflation. Retrieved September 20, 2022, from https://www.stlouisfed.org/on-the-economy/2017/january/elections-effect-expected-inflation
