First of all, a brief history of the company will be stated. In order to understand and assess the current situation at BioMedical Research Company, it is crucial to examine the macro and micro environment of the company. Through examining the macro environment, PEST analysis will be conducted. Afterwards, Porter`s 5 Forces Model and SWOT analysis will be carried out through probing for industry analysis and internal analysis of the company respectively. Lastly, Slendertone`s marketing strategies will be situated.
Slendertone is one of the brands of BMR Company, alongside with NeuroTech, which has been purchased by Kevin McDonnell in 1990, without tallying the consequences of getting into a business that he is not familiar of. Slendertone case can be summarized as their process of rising, declining, restructuring and repositioning. The company`s life can be divided into two sections: Before and after Brain O`Donohoe, who is the managing director of Slendertone. Before O`Donohoe, McDonnell sustained original product range and prolonged selling activities through distributors. Partnership with the distributors mutually benefited and gave BMR the opportunity to centre their concentration on developing improved products. From marketing perspective, O`Donohoe era was completely different. McDonnell preferred direct marketing whereas managing director thought it was a completely bad idea and took the brand into a completely different position, which will be explained in marketing strategies part.
The Political Environment: Political environment analysis is very crucial for companies because this phase enables them to spot possible legal and regulatory changes within the industry and it also enables the companies to adapt or change the legislations. For the Slendertone case, only political obstacle is the restrictions for direct marketing tools, such as infomercials. That kind of advertising is prohibited in some countries. In the case, Germany is given as an example.
The Economic Environment: Companies also need to be well aware of what is going on throughout both in national and global economy, especially where they run and trade. Despite there were no specific clues for economic situation, we can understand that people that are interested in the product could have purchased it. Thus, it can be referred that purchasing power was not low.
The Socio-Cultural Environment: Social and Cultural impact differs from country to country. The companies need to alter their products or services according to lifestyle changes. While O`Donohoe was repositioned Slendertone, he emphasized on getting away from the `gadget-freaks` and he also represented the brand to male use because he saw that male population as well as the female population, would like to have a shaped body.
The Technological Environment: Slendertone is a technological product. Both McDonnell and O`Donohoe emphasized on technological improvements.. The competitors tried to degrade Slendertone as they were using old technology and accordingly new management team responded by introducing innovative touch-screen design.