Situation or SWOT Analysis

"Managing the marketing function begins with a complete analysis of the company’s situation. The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, positive situational factors that may help the company to serve its customers and achieve its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance. Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. And threats are unfavorable external factors or trends that may present challenges to performance." (Marketing: An Introduction, Armstrong/Kotler - pg. 54)

The biggest overall strengths of a product really come down to two things: quality and cost. If you have a product that sells itself based on the enrichment of flavor, the provided level of service, and a low price, then you are already ahead of the game. "Strengths include internal capabilities, resources, positive situational factors that may help the company to serve its customers and achieve its objectives." (Marketing: An Introduction, Armstrong/Kotler - pg. 55) An obstacle difficult for any product to overcome is its target market: who are you catering to? Will people other than your target audience like this product? In some instances, all you need is your target market, but this can often times limit your product and is the biggest weakness of Candy Striper vodka. Opportunities to grow would not only be to expand the target market, but also to make Candy Striper a product that is used during any time of year, rather than just the holiday season (such as eggnog, or pumpkin pie - why wait?) "Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage." (Marketing: An Introduction, Armstrong/Kotler - pg. 55) Without a doubt the largest threat to any new product is existing competition: why should your target market buy your brand over the other brand, the name that was around before yours? Exemplify the product's benefits, in addition to its features, and you can overcome this threat.

"SWOT Analysis is an overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T)." (Marketing: An Introduction, Armstrong/Kotler - pg. 54-55)