Marketing For Small and Medium Enterprises
“Bio-Vert : Individual Assignment”
Bio-Vert is a Canadian leader in green cleaning products manufactured by Savons Prolav of
Quebec, led by a team of brothers and sisters. Its products are based on its respectful vision of
the environment, profitability and efficiency. The demand for Bio-Vert's phosphate-free
detergents has increased dramatically since the proliferation of blue-green algae in Quebec's
waterways in 2007 and subsequent legislation limits the use of phosphate in detergents. Now
that "green" cleaning products are becoming more and more common, Soons Prolav faces the
challenge of adapting and growing in a denser market. This discussion addresses the question
of how Savons Prolav can remain competitive in this challenging segment of the industry
while maintaining its environmental focus. This case shows the pressure exerted by an SME
with high environmental values placed on the market. It includes a portrait of the detergent
industry, organic consumption habits and a fund for the province's socio-environmental
event, which has led to increased demand for organic cleaning products in Quebec.
SWOT Analysis
1. Strengths:
The geographical presence in different regions can be one of the most important
resources of the organization. It determines the size of the company in the target
market and ensures easy access.
The wide product portfolio can allow the organisation to expand the customer
base and offset the losses from one product category with benefits obtained from
the other.
Strong online presence on different social networking sites and efficient social
media management can enhance the effect of positive e-WOM and develop strong
relationships with customers.
Horizontal and / or vertical integration can increase control over the entire value
chain. This leads to better access to raw materials and fast delivery of the product
to the end customer.
Competent and committed human capital can act as a powerful source of
competitive advantage, particularly when business is service oriented in nature.
2. Weakness:
The organisation can draw the criticism from the environmentalists for its poor
waste management practices and inability to integrate sustainability in business
operations.
The company may lose efficiency due to poor inventory management practices.
The shortage or excessive inventory can either result into
The cash shortage or insufficient current assets negatively affect the liquidity
position and harms the overall business performance.
Insufficient budget for the marketing and promotion activities weakens the firms’
ability to expand the customer base and encourage repeat purchase.
Less expenditure on the research and development activities can weaken the
company performance due to poor local/international market knowledge.
The inability to understand customers’ needs and expectations lead to an
ineffective strategic decision-making process. With this weakness, the
organisation may not be able to identify the potential improvement seeking areas
in product/service mix.
3. Opportunities:
The exponential growth in the population, and particularly in the existing or
potential customer segments is a great growth opportunity for the business
organisation.
The changing customer needs, tastes and preferences can act as an opportunity if
the business organisation has good market knowledge.
The development of new technologies to assist the product/service production and
delivery process can be exploited to embed the innovation in business operations.
The advanced technological integration can decrease costs, improve efficiency
and result in the quick introduction of innovative products.
Rise in the customers’ disposable income and increase in the affluent customer
base can be taken as an opportunity to introduce more high-end products.
Reduction in the interest rates makes the fund raising and financing at lower cost
easier for the business organisation.
4. Threat:
The changing regulatory framework and introduction of new stricter regulations
impose a major threat to the Bio Vert Green to What Limit. It makes compliance
with legal standards more complex and challenging for the business organisation.
Inability to comply with changed regulations raises the risk of expensive law suits.
Shortage of skilled labour in the market can make it difficult for the organisation
to attract talent with the right skills set.
The increasing number of direct and/or indirect competitors affects the
organisation's ability to sustain and expand the customer base.
The deteriorating economic conditions affect business performance when they
directly influence the customers' spending patterns and purchasing power.
The rise in inflation increases the cost of production and affects the business
profitability.
