Critical Analysis of a Start-up Business
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Critical Analysis of a Start-up Business
Zenyum is a start-up company aiming to give individuals their confident smiles back. The company provides 3D-printed invisible braces to their clients. One factor that has contributed to the growth of the company to reach where it is today is its investment in research. Zenyum is devoted to continuous research to better its products and understand its existing and potential customers. Research is a key factor that contributes to a company’s success and survival (Lucid, 2022). Hence, it continuously engages in research to improve its products and services and gain insight into the needs of its target market. Also, the company researches its competitors to determine their strengths and weaknesses to fill gaps left by the competitors.
Additionally, Zenyum participates in many networking events to increase brand visibility. This has helped the company to attract new clients and grow the business. Networking is one of the best strategies to increase brand awareness (Forbes, 2018). The more a brand interacts with other brands through networking events, the more people begin to know about it and what it offers. Zenyum has become accustomed to sending representatives to events to get the word out about the business to attract more customers. As a start-up, Zenyum has taken advantage of the networking events available to make its brand known and meet potential clients.
Also, Zenyum has gotten to where it is today through strategic partnerships. Strategic partnerships are important for the growth of a business (Mitev, 2018). Since the company is in the healthcare industry, it has formed alliances with various healthcare organizations, entrepreneurs, and local orthodontists. These partnerships have provided the company with a broader network of customers. As the customer base increases, the company makes more sales leading to increased revenues. Hence, strategic partnerships have been instrumental in the growth of Zenyum.
Moreover, Zenyum has focused on customer retention. The company believes that it is more challenging to get a new customer than it is to keep an existing one. Hence, the company has worked hard to increase customer retention by giving its clients unforgettable shopping experiences and prioritizing customer service. The company provides exceptional customer service by addressing customer concerns and keeping its promises to customers. This has helped the company build customer loyalty, leading to customer retention and gaining new clients through referrals from loyal clients.
The major challenge limited marketing resources have presented Zenyum with is inadequate marketing methods. For a company to effectively market its products, it must have adequate resources. Marketing is an expensive endeavor; without sufficient resources, a company may not achieve its marketing goals (Godin, 2019). For Zenyum, limited resources have resulted in inadequate investment in marketing, leading to low brand awareness and reduced sales. Since the company does not have enough resources for marketing, it has been unable to use major marketing methods such as electronic advertising, sales promotion, and media advertising. The company mainly relies on word of mouth from loyal customers and email marketing to attract customers. Unlike media and electronic advertising, word of mouth and email marketing do not reach many people. Hence, due to limited marketing resources, Zenyum is constrained to only a small number of customers.
Another challenge presented by limited marketing resources is inconsistency in messages. Because Zenyum has limited marketing resources, it has been forced to stretch those resources so thin that each client segment is only touched a few times. Instead of having one consistent message running throughout a specific period for each target segment, the message has been reduced to a once-in-a-while trend which is ineffective. The message does not serve the intended purpose since customers need to hear a message consistently for it to stick in their minds. This way, when they are in need of products that you produce, they will remember the message and purchase from your company. Hence, Zenyum has lost out on potential customers due to inconsistent messages.
Furthermore, Zenyum faces increased competition due to limited marketing resources. Unlike Zenyum, other companies producing similar products and having sufficient resources can market their products widely and maintain a consistent message. This has increased their market share and given them a competitive advantage over Zenyum. As Zenyum lags in marketing, its competitors continue to advance and attract a wider customer base. Therefore, Zenyum is losing out on revenue it would have otherwise collected if it had adequate resources to invest in heavy marketing.
Even with limited marketing resources, the company must do what it can with the few resources. The first action Zenyum can take to focus on one marketing method that is likely to produce the best results. The company must look at its target market and identify which marketing strategy would reach most of its target market (Ferrell et al., 2021). Once the method has been identified, say, social media marketing, the company will research social media marketing and determine how to go about it to reach its customers. By focusing on one effective strategy, the company will reach more people and avoid wasting resources.
The second action Zenyum must take is to go deeper with its messages instead of wider. This means focusing on one segment at a time and the messaging tactics it can execute without much difficulty. By so doing, the company will be able to deliver a consistent message to the same segment throughout a specified period. Once the timeline for one segment has ended, the company can then focus on messaging the next segment. Hence, every segment gets a consistent message that helps them remember the company’s products.
The third action Zenyum can take is to improve its customer experience and service even more. This will make customers feel valued such that they will remain loyal to the brand and even advertise it to their friends. This way, Zenyum can stand against competition even with limited marketing resources.
References
Ferrell, O. C., Hartline, M., & Hochstein, B. W. (2021). Marketing strategy. Cengage Learning.
Forbes. (2018, July 20). Networking done right: Seven tips to help you build brand awareness. Retrieved from https://www.forbes.com/sites/theyec/2018/07/20/networking-done-right-seven-tips-to-help-you-build-brand-awareness/?sh=36843ec07d30
Godin, S. (2019). This is marketing. Paidos.
Lucid. (2022, January 19). Why market research is important. (2022, January 19). Retrieved from https://luc.id/knowledgehub/why-market-research-is-important/
Mitev, B. (2018). Strategic partnerships in business: critical success factors. Izvestia Journal of the Union of Scientists-Varna. Economic Sciences Series, 7(3), 203-211.