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Product Analysis

ProductAnalysis

ProductAnalysis

Student’sAddress

DearSir/Madam

Iam writingto youto drawyour attentionto theprospectsof diversifyingour businessstrategiesandenteringnewglobal marketthat willincreaseout retailbusiness’scompetitiveedgeandincreaseour profitmargins.Arthur Galan (AG) brandhas beenperformingexceptionallywellin thedomesticmarketandthere are numerousglobal marketswhereitwould becomea hugesuccess.

Themen’s wear lin,especiallythepaisley shirts,isour popularandmostsuccessfulbrandin theAustralian market.Over theyears,theclothingindustryin Australia has beencrowdedby smallretailers whoare targetinga specificniche.Asa consequencethoughwehavemaintaineda sizable proportionof themarket,thesenewventurecontinueto threatenour existence.Theimprovingeconomiesin Africa are creatinga fastgrowingmiddleclassthat would serveas an excellentmarketto our AG brand.

Itis under thispretextthatI callupon your considerationon enteringmarketsin East Africa and South African region. Thankyoufortakingtimeto readmy letterandI hopeitwillkindleyour interestI this promising market.Yours SincerelyStudent’sName

ExecutiveSummary

Theapparelindustryis one of thegrowingindustriesin East andSouth Africa andAG Retail business standsto reapalotofreturnsby enteringin thesetwo regions.Additionally, thisregionis undergoingthrough a periodof gradualeconomicdevelopmentandconsequently theclassof middleincomeearners has beengrowingeveryyear.AGretail business would reapimmensebenefitsby investingin thisareato offerwomenandmen’swearforthemiddleagedworkingclassin this area.Theimplementation of thisplanwould be carriedin two phases,preparingformanufacturingandmarketingandsellingtheAG brand.

Mostof thecountriesin Africa especiallyEastern partare embracingdigital technology, andconsequently computerliteracyandtechnological knowhow isimrpving.Onlinepresencemay serveas a strategicplanto catchtheattentionof theworkingclassandtheyouthwhoforman importantdemographic segmentfortheAG brand.Nonethelessprint media marketing is still very effective in this region and AGretailbusinessshallusea combination of online ad print marketingto target theworkingclass,thekeyaspectsarepromotionofthe brand,improvecustomerloyaltyandstimulatesalesin thenewmarket.

ProductAnalysis

AGbrandfallsunder smartformalsegmentin thereadywearmarketanditperformancein theAustralian retailclothingindustryhas beenaverageowingto thelargenumberof otherpopularbrandsthat aimat a specificniche.In East andSouth Africa celebrityendorsementmay goa longwayin increasingconsumerawarenessof thebrandin themarket(Godfrey,2013). In Australia AG retail business has primarilyembarkedon printmediaadvertisementto promoteits brand.Itwill,therefore, beparamountthattheretailbusinessbuildsconduciverelationswith keydistributorsin theregion(Woolnough, 2013).

Towagea successfulmarketingplanin thisnewmarketAG retailstoreneedto employthree modelsthat willmaximize returnsanddeveloplongtermbrandloyalty.Thethree toolsare exemplified below:Brandpositioning.AG brandmay haveperformedwellin theAustralian market,butentryinthe newmarket,inEast andSouth Africa may presenttechnicalbottlenecks that may callforbrandpositioning. Theretailbusinesswillneedto promoteits brandin a saturatedmarket,thiswillmeanthatconsumershaveto identifya uniquefeaturein thebrandto captivitytheir attention.Celebrityendorsementmay promotebrandawarenessbuttheretailbusinesswillfinditparamountto creatinga backgroundfrom which to performitadvertising.Evidentlytheretailbusinesswould finditimportantto seektheassistanceof localagentsin variouscountriesin East andSouth Africa whounderstandmarketmechanismbetter.

Thesecondtoolis brandvaluechainanditsignifiesthemechanismthrough which theproductreachesthecustomer.Online salemay playa hugerolein eliminatingthisbottleneck, butin online marketingandsalesin Africa stilllags behind otherareassuchas Australia. Theretailbusinesswillalsofinditworthwhileto openmanufacturingfirm in one of thecourtiersin East Africa andanotherin South Africa from whereitcan distributeto othermarketsin theseregions.Shipmentof rawmaterialmay posea hugecostconstraint,butAG butthevolumeof themarketcan offsetthecost.

Thethirdandfinaltoolis thebrandresonance.Thisexplainstheactivitiesthattheretailbusinesswillundertaketo activateconsumerloyaltyandimprovethe relationshipwith customers.Evenwith thecrucialchangesin mediaconsumptionin mostpartsof theworldprintmediaremainsone of themosteffectiveadvertisingavenuesforbothsmallandlargeenterprises. MostnotableAg brandhas beenperformingwellin Australia dueto its creativeadvertisingin magazinesandnewspapers.Asurveyseekingto identifythemosttrustedadvertisingmediarevealedthat,about 63% of consumersattachalotofimportanceon newspapersandmagazines,41% on televisionand25% on online advertising(Technical Research Centre, 2013). Eventhemediathat are referredto as traditionalsuchas catalogues andmailsperformedbetterthan online advertising.Evidentlyprintmediahas greaterinfluencein shapingthedecisionof thecustomerandAg retailbusinessshould employengagein massiveprintmediaadvertisingto promoteAg brandin anewmarket,inEast andSouth Africa.Printmediawould enableAg retailbusinessto increaseits visibilityin thenewfoundmarket.

Strengths

AGhas managedto growits revenueby 10 percent in thelasttow yearsAgbrandmaindemographic is themiddleworkingclassmalesover 30 years,a marketsegmentthat is partiallyunderservedTheretailbusinesshas nodebtTheretailbusiness’sreturnon equityhas beenimprovingTheretailbusinessis brandcentric meaningitis not limitedto a specificgroupof customersAGcreatesandproducesallof his clothesin-house at his ownmanufacturingfacilityin Melbourne. Throughout thisprocess,Arthurhas completecontrolover qualityandfabricselection,allowinghim to movequicklyandfluently in designdirection,trendanalysisandimplementation of impulseideas.

Weaknesses

AGbrandhas numerouscompetitors,especiallysmallretailstoresin Melbourne AustraliaLackof clearfocuson which brandto promote,AG dealswith bothmenswear andwomenwearleadingto lackof brandrecognitionNoglobal presence.Onlysituatedin bigcitiesin Australia, with littlepenetrationin ruralareas

Opportunities

AGcan turntheweaknessof lackof global exposureinto strengthby expandinginto East andSouth Africa. There is a widemarketin thesetwo regionsowingto theincreasingnumberof middleincomeearners.AG can startmassiveadvertisementon theinternet to promoteonline sales.Theretailbusinesshas beenadvertisingon printmedia,andits entryin theelectronicmedia(television)could offerimprovemarketshareandbrandawarenessLowmanufacturingcoststhrough useof cheaplaborin thenewmarket,inEast andSouth Africa.

Threats

AGbrandtargets middle-ageddemographic segmentandmay completelymissan entiregenerationof customersas youngwomenandmentransitionto grown-upattire.

LongtermMarketing

InthelongtermAG Retail business should reviewtheimpactof online marketingsince thisis theformof marketingof thefuture.Technology has revolutionizedbusinessandanyfirm that ignoresitdoesitat their ownperil.Print and online marketing should form the basis of the business’smarketing strategy.

Conclusion

Thekeyto successfulbrandpromotionandmarketingin a newmarketis derivingstrategiesto increasecustomerengagement.Theretailbusinessshould seekto drawtheattentionof theprospectivecustomersthrough attention-grabbing content. Printmediaprovidesa hostof substancesthatplaya hugepartin generating engagementbetween theadvertisedbrandandcustomers.

References

BanhamJ. (2013)Melbourne Girl. Fashion: Arthur Galan’s 15yr Anniversary. Retrievedfromhttp://www.melbournegirl.com.au/2013/04/03/arthur-galans-15-year-anniversary/ShaneGodfrey(2013) Prospects for an African clothing industry? Retrieved from:http://www.just-style.com/comment/prospects-for-an-african-clothing-industry_id118021.aspx

VTTTechnical Research Centre (2013, Advertisingin Print Media Most Trusted. Retrieved from

http://www.printpower.eu/en/news/p/detail/consumers-trust-advertising-in-print-media-more-than-other-media

Woolnough,D.(2013).TheAustralian. Brand Watch:Arthur Galan.Retrieved on 6 Aprilfrom:http://www.theaustralian.com.au/executive-living/fashion/brand-watch-arthur-galan/story-e6frg8k6-1226597576179