The New Business Line of Burberry Brand - Case Study Example

New Business Proposal: Market analysis By 28th February Executive summary We are considering to venture into the new line of business soon as the company’s outline of growth strategy. We know the advantage of having numerous ranks of operation in a business. The different lines will help us to continue making profit when our usual line of specialization fails. In this regard, our company have pointed out the sales of the Burberry shoes. Burberry shoes are quality shoes that are produced for both ladies and gentlemen. The company produces shoes for every aspect of use from sports shoes to those that are used in office. We are considering to produce and introduce a new brand of official shoe for both men and women. As the product continues to attract the market, it is good for us to venture into this business and grow as a company. We are hence completing a business sector investigation of the item. The business sector examination will help us in discovering a decent section point to the business sector. Vision Statement Our expectations are to become a global distributor of various shoe brands worldwide. We diligently work with the marketing of high-quality product because we want to be recognized for quality. We expect to have a contract with various high consumption consumers like company executives that we can continually distribute to them the product. Our vision is, therefore, to become the world’s leading quality shoes distributors if a foreseeable future. Market analysis We need to understand the share that the Burberry shoes have and the trend the shoes are operating. This will help us to estimate the value of the initial investment a possible time that our capital will be recovered. 1. Market size The size of the market for any given product is essential as it gives the volumes of potential customers within an area. Burberry shoes account for various models that attract different levels of customers. Nike air shoes are currently the best selling brand of the Burberry accounting for 33% of the market share. When venturing into the market, we will automatically use the Nike shoes brand in marketing our new product (Chevalier & Mazzalovo, 2003). The market is favorable due to the high level of sports in the country and most of the fans usually like to be identified with the players. So, as the clubs consume a certain portion, the fans consumes too thus widening the market. 2. Market Trends Market trend refers to the increase or decrease of the sales of a commodity in a given period. Considering the Burberry shoes, there have been some upward and downward trends that come in a given season of the year. The trend is witnessed on all the brands of the firm as most of our consumers have different tastes. The consumers, most of them being youth, usually have influences on one another and the consider doing a lot of shopping in the festive seasons (Hui, 2015). Therefore, there is a lot of shoes demand during the holiday season and a decline in the summer. 3. Market growth rate The growth of a market for a given product is essential for continuous production. The growth rate is determined by the number of the commodity sold at a particular season compared to those sold in the previous season. If the previous number is lower than the current season, we will have a positive growth rate and the vise verse is true. The development of a business is determined the expansion of the market locally and abroad (Hemann & Burbary, 2013). The Burberry shoes have witnessed a positive growth of the shoes products, a possibility that have been necessitated by the opening of international market in Russia. Russia is considered to be one of the fasted growing nation in terms of economic performance and the demand for shoes have gone high. The Burberry shoe company have been forced to open up a production branch in the country to cater for the rising demand. Therefore, venturing into the distribution will be a good intention for our company as the market is plenty. 4. Market Opportunity There is a great opportunity for us to enter the market in distributing the Burberry shoes. The interest for the item is still high in the nation and abroad. Our intention will be to investigate the market platform in other countries in Asia, Africa and South America continents. The firm may have not entered into these regions, and therefore we can begin to tap the market. Given our target price tags for the shoes, we will make a good deal out of that (Hui, 2015). Secondly, we will consult with the firm to help us in market research in the said continents as they will benefit from the discovery. In this way, there is an awesome open door in the business. 5. Market Benefit. Market profitability is the core reason we are entering into the business. The benefit we make will empower us to continue operating in the market. Our set prices for men and women shoes are slightly higher in the new brand (Chevalier & Mazzalovo, 2008). Since the Burberry stores are popular in the market, we will stock our shoes where people can buy directly or electronically by online shopping (Hemann & Burbary, 2013). The SWOT examination. In every business operation, there is some environmental consideration that need to be closely checked before setting out. Strength: our strength as a firm is that we already have the ground established via the sale of our quality shoes, both locally and internationally. Our intention to offer another brand will thus be highly welcome by our consumers Weakness: the weakness of our introduction of the new brand is that we do not have an assurance of whether our product will attract a lot of customers due to the increased prices. Opportunity: the intrusion of the Russian market is an added opportunity to our plan for the new brand of shoes to our already existing customers Threats: there are many shoe making companies that are growing very fast. Their low cost of production is a threat to our business as some of the customers do not consider the quality of the shoes but the price. We hope that our new brand of shoes will do well in the market. Our world-class consideration to the new official shoes is a good news for workers and executive worldwide. We are looking forward to satisfying the needs of our customers and building a formidable relationship. References Chevalier, M. & Mazzalovo, G., 2003. Pro Logo: Brands as a Factor of Progress. New York: Palgrave Macmillan. Chevalier, M. & Mazzalovo, G., 2008. Luxury Brand Management: A World of Privilege. New York: John Wiley & Sons. Hemann, C. & Burbary, K., 2013. Digital Marketing Analytics: Making Sense of Consumer Data in a Digital World. London: Que Publishing. Hui, S., 2015. The World Link: Burberry hosts starry show at London Fashion Week. [Online] Available at: http://theworldlink.com/entertainment/other/burberry-hosts-starry-show-at-london-fashion-week/article_f3f4cb41-c022-51d0-b6a3-e459a8189036.html [Accessed 27 February 2015]. Read More