Wayfair Company
For Wayfair Company to change in their organization, to limit the amount of furniture they have and start selling used furniture for cheaper price to decrease the extra inventory, one significant strategy that they can apply is marketing mix strategy. Marketing Mix strategy incorporates both cost leadership and product differentiation since it describes a set of controllable, as well as tactical marketing tools that a firm applies to produce a wanted response from its target market (Solimun, & Fernandes, 2018). Cost leadership defines a strategy whereby a firm forms the most competitively priced produce on the market; this means that, it is the cheapest. On the other hand product differentiation strategy describes whereby, a company generally markets similar products with little variations that are implemented by customers when making a choice. In applying Marketing Mix Strategy (product; price; place; promotion), Wayfair Company would be able to determine the price of its used furniture majorly through cost leadership by introducing allowances and discounts on the products.
The introduction of allowances and discounts will attract more customers will enable the company to acquire market share which will in turn promote high profits for the used furniture products as a result of establishing competitive advantage. Marketing mix strategy would also function effectively for Wayfair Company through product differentiation since because, the company will shift its focus to used furniture to make it more attractive to its clients by adding little features to them. Additionally, Wayfair’s ability to apply marketing mix strategies would incorporate or allow it to simultaneously acquire cost leadership and differentiation hence creating premium prices, and lowering costs (Williams, & Williams, 2017). Both cost leadership and product differentiation will allow the company to apply marketing mix strategy to frequently promote the used furniture, as well as ensure effective deliveries and maintain a robust connection with suppliers thus cutting costs and earning more profits.