The mouse pads, apparels and more recently they just

The role of marketing plays an important part in the success of a business, being a huge factor in the success of a product. Even with the best product out in the market, without marketing, sales will flounder tremendously because consumers have no exposure to the product and brand. Different business are trying to develop and adopt various marketing strategy to constantly stay on the competitive edge.The main objective of this report are to discuss a company’s current marketing strategies to conduct a market analysis, and offer various recommendations for the future of the company.2.Razer Inc.Razer is the world’s number one brand for gaming peripherals first started in 2005 and a pioneer in the multi-billion dollar gaming peripherals industry. Since it’s founding they have created the world’s first gaming mice and keyboards and expanded their repertoire to gaming laptops and systems. Their marketing strategy plays a vital role in giving consumers exposure to their products which led to their success today. The foundation of marketing also starts with consumer’s needs and demands(Bahman saeidi pour, Kamran nazari & Mostafa emami, 2012).2.1 ProductRazer initially started off with gaming peripherals but now offers a wide range of gaming system and products. Razer product mix includes; mouse, keyboards and keypads, audio, controllers, system, mouse pads, apparels and more recently they just launched a gaming smart phone. The mouse and headphones are the most popular products from Razer. In addition, product of Razer also includes different type of peripherals customized for different genre of games that allow gamers to gain an competitive edge in their respective game to further enhance their gaming experience and cater to their individual needs, this element of the marketing mix allow Razer to target different market segments and further their expand their products mix. Products of Razer usually consist of vibrant color lightings emiting from the peripherals that are customizable throught the user interface to suit their consumer’s style, more commonly at their triple-headed snake logo, this feature create a brand for Razer which gives customers a higher level of recognition and differentiating themselves from other competitors. To satisfy the everlasting needs and demands of the consumers and keep up with the competitors, Razer have to constantly launch new products to be on the competitive edge, once a new product is introduced into the market it will enter a stage of sequence known as product life cycle which goes into introduction,growth,maturity and eventually decline, whereby the newer products enter the stage of introduction to progressing to growth, the older products of the same product line will drop from maturity to decline causing the product to be obsolete.2.2 PriceRazer utilise a high premium pricing model in their pricing strategy, this strategy ignores the prices of the competitors and consumer demand conditions, because they maximise their investment in research and development to develop the best product for their consumers and they believe product innovation will increase demand and also by maintaining their quality control. While some casual gamers may opt for a much cheaper alternative of budget peripherals, most hardcore fans and expert gamers will still continue to purchase Razer products regardless of pricing.2.3 PlaceRazer manufacture their own products in the US and get most of the sales from their online store due to the rise of ecommerce nowadays, they also have a few retail stores around the world e.g Manila, Bangkok, Taipei and America. Razer also engage in distributing chanels and distribute their products to distributors, wholesalers and resellers in different countries in order to reach out to more consumers around the globe, catering to the demands with much lesser effort on their part.2.4 PromotionRazer’s tagline has always been ‘For gamers, by gamers’ this emphasize that they are part of the gaming community that produces gaming products out of passion for the gaming industry unlike other manufacturer that focus on sales, this instil a message in the consumer’s mind that they are not profit driven even though their product price is at the high only due to the research and development efforts put into the product, this create a personal relationship with the consumers which increases their loyalty to the brand..They also raise awareness by being actively on social media platforms e.g twitter and facebook and on tv commercials. Razer focus most of it’s attention on promotion since it’s founding by sponsoring game events like eSports competition and trade shows to reach out to its intended target audiences and to create a perception that the competitive gamers the consumers aspire to be are using Razer products in their games at competition and also sponsoring eSports competitors products for their own uses, this further inspire the consumer to purchase their products. Razer store also offer discount on special occasion either for fan service as recognition of loyalty or on festive seasons to promote their products. The overall goal of promotion is to disseminate information, encourage the purchase and affects the purchase decision process(Margarita išorait?, 2016).2.5 Strengths and weaknessesBased on the 4Ps, marketing strategy of Razer we can evaluate the following strength and weakness of the internal forces influencing the organization in the table belowStrengthsS1)A wide range of products to choose from that cater to different individual needs. E.g mice,keyboards,audioS2)Resources to develop innovative products.S3)Most products are sold through Razer store, distributors, wholesalers and reselers. Lessen Razer’s effort and retail spaceS4)Brand equity. Sponsoring events and being part of the gaming community create a good reputation for the brand.WeaknessesW1)Consumer outside of the gaming community have no use for the product’s extra features specifically for gaming.W2) Too little retail storesW3)Too little advertising done outside of the gaming community.3.PESTEL analysisThe PESTEL analysis is more commonly used for considering the approach for a business’s external environment. PESTEL is an abbreviation which stands for Political, Economic, Social, Technology, Environmental and Legal. These factors are essential when defining the opportunities and threats of the company in the marketplace for the growth of the company, the underlying thinking of the PESTEL evaluation is that the organisation has to react to changes in (Abhishek gupta, 2013). The following are some considerations that should be taken into account in a PESTEL analysis for Razer Inc.3.1 PoliticalThe political factor is associated with impact on business based on decisions taken by governments and politicians. A gaming manufacturer company like Razer has no political influences that affect the company operations.3.2 EconomicThe economic factor is more concerned with the financial matters of the company, several factors that contribute to a decline of the economy may affect the buying behaviour of consumers, especially since Razer’s product is on the expensive end, thus decreasing the sales.3.3 SocialThe social factor plays a vital part in recognition of the Razer brand in the gaming community, by being actively engaging with them through social media platforms and sponsoring gaming events.3.4 TechnologyTechnology is improving vastly in the current age, this factor is important for a gaming company like Razer which have to come out new products to be on the competitive edge as older products will become obsolete.3.5 EnvironmentalThe environmental factors are contributed by natural disaster which have no impact on Razer operations.3.6 LegalCopyright infringement is a common issue in gaming companies including Razer, as products are often associated with famous games and trademarks. 4.Porter’s 5 ForcesThe five forces of Michael Porter is commonly used as an analysis to help businesses identify it’s strength and weakness in the industry, Porter’s Five Forces model is intentionally recognized as the foundation for a thorough competitive analysis (Beckham,2017). This framework helps a business determine it’s decision making in their business process by evaluating the following forces which are industry rivalry, threat of new entrants, threat of substitutes, bargaining power of consumers and suppliers.4.1 Industry rivalryDespite being the leading brand and a pioneer for gaming peripherals, other manufacturer gaming companies like logitech and steel series are looking to capitalize on the multi million dollar industry which is expanding rapidly due to the rise of the popularity of eSports in recent years. However, due to the unwavering support of Razer’s consumers they are still able to capture the majority of the market but they can not afford to be complacent, as consumer of the gaming community tends to seek for innovation and reliability in their products.4.2 Threat of new entrantsRazer will not have to worry about the threat of new entrants into the gaming peripherals industry as they already established themselves as a quality brand and is one of the top mega powers of the industry. Entering the industry is also risky as it requires huge capital with the production and less return because consumers have already established trust in the popular brands.4.3 Threat of substitutes The threat of substitutes for Razer is low because other there are only a few manufacturers in the market and their products may be of lower performance and quality.4.4 Bargaining power of consumersHaving established themselves as a quality brand over the years and the amount of money invested into their product, Razer maintained their high pricing while consumers will still continue to purchase from them because other manufacturer may have a sub par product.4.5 Bargaining power of suppliersThe bargaining power of suppliers are low because distribution channel for Razer are very diversified, this create competition among the suppliers instead, in order to cater to Razer huge volume of supplies demand.Porter’s 5 Forces example: Razer Inc.                               Threat Level1)Industry RivalryHIGHMODERATELOW2)Threat of new entrantsHIGHMODERATELOW3)Threat of substitutesHIGHMODERATELOW4)Bargaining power of consumersHIGHMODERATELOW5)Bargaining power of suppliersHIGHMODERATELOW5.Formation of SWOTThe following table is a formation of SWOT based on the information gathered in this report.StrengthsS1)A wide range of products to choose from that cater to different individual needs. E.g mice,keyboards,audioS2)Resources to develop innovative products.S3)Brand equity=Sponsoring events and being part of the gaming community create a good reputation for the brand.WeaknessW1)Consumer outside of the gaming community have no use for the product’s extra features specifically for gaming.W2)Too little retail storesW3)Too little advertising done outside of the gaming community.OpportunitiesO1)Porter’s five forces= All threat levels are lowO2)Technology=Does not lack the resources to improve their productsO3)Social=An already established brandThreatsT1)Economic=Recession, lower income of consumersT2)May not be accepted by general consumers6.TOWS analysis into actionBy using the SWOT analysis based on the table above we can establish a TOWS and use strength to maximize opportunities, minimize threats, minimize weakness by taking advantage of opportunities and minimize weakness by avoiding threats to achieve balance and operational efficiency. Organizations accomplish this balance by evaluating new programs and services with the intent of maximizing organizational performance (Jeffrey p harrison, 2010).Maxi-Maxi strategy uses strength to maximize opportunities, in this case using S3+O3 to utilising the already large fan base that razer has to further establish the Razer brand by sponsoring more gaming events and razer trade fair to give recognition to their fans by offering discounts in their products along with free goodies to achieve a greater following and loyalty from their fans.Maxi-Mini strategy uses strength to minimize threats, S2+T1. Razer may opt for a budget line of gaming peripherals to target consumers when the economic decline, this can also give consumers the option to purchase product alternatively on a budget.Mini-Maxi strategy minimize weakness by taking advantage of opportunities, W2+01. Razer are able to use it’s advantage of the low threat levels of porter’s five forces to open new retail stores at different countries in their major city.Mini-Mini strategy minimize weakness and avoid threats, W1+T2. Razer may create a product line to cater to customers outside of the gaming community and concentrate more on their advertising strategy, this give them the opportunity to further expand their brand awareness to the non gaming consumers. A company’s business plan consist of major factors affecting the 4ps of marketing. Through analysis marketers gain a better understanding of the current and future of the market in order to adapt and make decision in their marketing plan so as to satisfy consumers’ requirements profitably. A SWOT analysis gave the company a close up view of it’s position, their strengths,weakness,opportunities and threats, this allow amendments to their marketing plan to resolve the issue which in another words TOWS analysis, to complement the each areas of the internal and the external factors of the company to achieve the best results.