OXO Marketing SWOT analysis. Conduct a very brief SWOT analysis of the internal and external environments affecting the kitchen gadget industry. Be sure to summarize your findings. There is a SWOT worksheet in the Marketing Toolbox under How to Prepare a Case Analysis that you might find helpful.

The kitchen gadget industry continues to experience slow growth relative to the higher growth markets of intelligent home electronics and automated kitchen appliances. With a relatively low growth rate of 5% or less annually in sales, the kitchen gadget industry continues to rely on the ingenuity and innovation of new products (Swisher, et.al.). As a result the market for gadgets tends to become commod8ity-like where pricing and availability becomes the two most common approaches to differentiating products as they rapidly mature over time (Consumer Reports, 36, 37). Manufacturers serving this market rely on a steady stream of new product innovation to continually grow their sales as a result. With these factors in mind here is a brief SWOT analysis of the internal and external environments affecting the kitchen gadget industry.

Strengths of the industry include an exceptionally strong focus on research and development in many manufacturers (Swisher, et.al.) in addition to a steady stream of start-ups that bring new innovative products to market (Jana, Walters, 71). Distribution channels are well established and the gadget industry has seen success using e-commerce globally as a means to scale selling and reduce operating costs as well. A third strength of the industry is how well defined the approaches to pricing are within the existing and emerging distribution channels, The approaches used to incent and reward channel partners is fairly well established. Weaknesses include a very high dependence on innovation and the ability to cost-reduce them over time. Over time gadgets become inelastic from a price elasticity standpoint and therefore lead to severe price cuts to gain distribution. Another weakness is quality when manufactures are more often more focused on price and not quality (Consumer Reports, 37).

Dispute these strengths and weaknesses of the industry, there are significant opportunities for expand global sales by further expanding distribution agreements throughout Asian nations, and also creating a more effective e-commerce strategy for sections of Europe not accustomed to buying online today. One of the most significant market opportunities is India, which has yet to be addressed by anyone in this market area. The threats to this industry include the tight government regulations in emerging markets, many of which are in Asia. There are also trading regulations and constraints in selling into India that also need to be addressed.

2. OXO target market. Who are OXO's most profitable customers? Describe them as specifically as you can. Might want to refer to Chapter 7 for the segmentation criteria. How does this compare with the kitchen gadget markets described in the research?

OXO's most profitable customers are across the age spectrum, and are best defined as those who cook and prepare meals at home more than they go out. OXO has targeted the Baby Boomer market and senior citizens, yet they have been so effective with their marketing strategies, they are attracting consumers across a wide socioeconomic range. The study by Bruner and Kumar (336) shows that the most valued attribute by customers of gadgets is technology innovativeness. The study also found that the typical customers have a higher-than-average per capita income and also tended to be more educated (Bruner, Kumar, 336, 337), OXO has been successful with their families of products because they are focusing on a blend of technology innovation with exceptio9nal ease of use, which together deliver an exceptionally positive customer experience from a kitchen gadget (Jana, Walters, 71). OXO's focus on their target markets is also supported by continually new product development efforts that concentrate on anticipating the needs of customers. OXO is also doing exceptionally well in the dual income, no kids (DINC) segments of the market, as these couples often have a higher than average income and entertain more than their counterparts. The focus on DINC couples who entertain and value technology innovation in the products is evident in how OXO is defining the product strategy today and into the future.

3. OXO value proposition. What value proposition does OXO provide to these customers? Is this value proposition different/same as competitive offerings? How so?

OXO's value proposition is to providing innovative consumer products that make everyday living easier. This is well defined as it encompasses the entertainment and lifestyle needs of DINC couples while also...

What's refreshing about this value proposition is that it concentrates on the value and experience that the products deliver "make everyday living easier" rather than talking about how great the products themselves. This is in major contrast to its competitors, many of which who compare purely technical specifications and the functional aspects of the product. OXO is successful in large part because it is speaking to customers about benefits first, not just talking about features. This approach also ensures it stays relevant across the entire spectrum of market segments it is attempting to serve with its product strategy.
4. OXO product mix. How has OXO developed their product line to be different from competing kitchen gadget manufacturers? Describe the OXO products in terms of the three levels of product discussed in Chapter 8. Can you make any product strategy recommendations? Describe them in terms of value to the customer.

OXO's product strategy has centered more on creating a unique, memorable and highly valued user experience first. As the text states in chapter 8 there are three levels of product that must be addressed for any long-term product strategy to succeed over time. The first is the core customer value. OXO is concentrating on ease of use and a heavy reliance on pliable, easily used utensils and gadgets that make food preparation enjoyable. The core customer value that OXO is concentrating on is the experience first, supported by innovation and ingenuity in product design (Bruner, Kumar, 323, 324).

OXO's core focus on the needs of customers and their heavy emphasis on needs-based market segmentation is a powerful catalyst for the innovation they are able to achieve as well. One of the most effective approaches to gaining greater innovation in any product strategy is to center on the unmet, urgent needs of customers and design with empathy in mind first. This can be inferred from the aggregate data from the Bruner and Kumar study (et.al.) that shows how empathetic designs and needs-based innovation are very effective at driving new product development. The videos shown from our test and the insights gained into the company show that the focus on empathy is what guides the products overall, and that mindset continues to be very successful for the company. This strong focus on empathy is not nearly as present in competitors, who often are focused purely on the functional definition of products and their utilitarian not experiential, value.

OXO continues concentrating on customers from an empathetic standpoint into the next layer of the model shown in the text on page 228. Differentiating on the materials used and the tactile nature of the design successfully differentiates this company and its products from its many global competitors (Consumer Reports, 38, 39). The combining of product quality and ergonomics is also unique, and what's most effective is how well the company controls costs and keeps their unique products affordable. Using needs-based segmentation that relies on an empathetic approach to new product development based on customers' unique challenges continues to be a fertile strategy for new ideas (Jana, Walters, 71). Today the company has eleven different product lines including beverages, cooking & baking, cookware, food storage products, storage & organization, gardening, baby and toddler, sets, replacement parts and refills. The product mix is designed to take the entire company's line of items for sale and create an augmented experience or customers, also mentioned on page 228 of the book. For many companies the augmented product forms the most successful revenue stream of all. Including after-sale service, warranty, product support and delivery & credit within the augment product strategies for all product lines can also lead to significant upsell and cross-sell potential to the existing base of customers as well. Orchestrating all of these potential revenue strategies as part of the marketing strategies take a strong focus on how well each product line is orchestrated across the broad spectrum of needs met. This is why OXO is very successful from a long-term customer value standpoint. They have designed in an empathetic approach to meeting their customers' needs without resorting to strategies that seek to just get more sales without delivering more value. OXO progresses across all three levels of the product as defined in the book by unifying them all with a strong focus on innovation driven by customer empathy and galvanized around optimizing lifetime customer value. The product strategy then becomes an ecosystem to better serve customers while also attaining a stable revenue stream over time.

5. OXO distribution strategy. Does OXO follow an…