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Splash Corporation

Better Essays

“Splash Corporation (A): Competing with the Big Brands”
Problem:
Splash Corporation (Splash) is a leading producer of skin care and hair care products in the Philippines. Founded in 1985, Splash was now the country’s leading domestic producer of personal care products and was billed as “the next Unilever” by BizNews Asia magazine (page 5). However, competing with the top corporations in the world was no easy task, especially when these companies were producing low-cost alternative products. Splash knew that there was no way they could compete in a price war with their much larger competitors, so they had to compete on value if they wanted to remain a top company in the industry. At this point in 2006, the company is considering what …show more content…

Technological: Although the Splash Research Institute has done extremely well over the last twenty years in meeting consumer needs, the company needs to always have a first mover’s advantage so that customers can become loyal to their brand. It is also important to recognize Splash’s current shortcomings. Splash’s small advertising budget makes it difficult to compete on promotions with the large multinational corporations, regardless of the fact that their constant innovation is a major strength of their company.
Alternatives:
The Splash Corporation should currently follow a market penetration strategy. It is not a good idea for Splash to enter foreign markets just yet, because one of its strengths is that it is a domestic company providing products for their people. Thus, the Splash Corporation needs to find other ways to attracting non-users of your product or convincing current clients to use more of their products. Accordingly, the alternatives that Splash Corporation has revolve around different target market strategies.
The first alternative that Splash has is to follow a Full Market Coverage strategy, where the firm attempts to serve the entire market. This however is probably not a good idea for Splash because the company will dive into everything without doing the proper research. Their competitors will

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