Approved Marketing Plans for New Products and Services - Term Paper Example

? Business strategy Introduction In order for a business to succeed in any market, it is vital to have a strong business strategy. This ensures that there is a clear articulation of the market performance and behavior. This paper focuses on developing an effective marketing strategy for the Versace Men’s Clothing brand. The company specializes with clothing in several countries. After the establishment of Southern Sudan (the newly founded country in Africa) the company decided to venture in to this emerging economy in order to sell its brand. To begin with, it would be vital for the company to clearly define its mission statement before venturing into the emerging market. This can be achieved through use of strategic analysis, which allows the company to formulate necessary measures that would help it develop and maintain high performance in the market (Collis 1999). In this regard, it would be crucial if the company evaluated factors that would influence its operations in the emerging market. Such evaluations would involve PEST and SWOT analysis. These are crucial in that according to Green and Keegan 2012, in every market, there exists market forces, which dictate operations in the market. In regard to the company in the new market, both internal and external factors need to be assessed comprehensively. For example, it would be vital for the company to know if issues like management or working capital would act as barriers to emerging successful in the new market. Since clothing industry has many players in the market, it would be crucial if the company assessed external forces like environmental and other factors beyond the company’s control (Hill, & Jones 2010). Therefore, such evaluations enable the company to come up with measures to overcome them. SWOT Analysis It is apparent that venturing into a new market calls for strategic planning in order to develop and establish a strong, competitive advantage. However, one of the major factors that determine how to go about the business is the line of business a company is intending to deal with (Hill, & Jones 2010). In this regard, the business is able to analyse the market in relation to services or products intended to be offered in the market. It is, therefore, necessary to analyse factors that would determine the performance of the products offered. Among these factors are strength, weaknesses, opportunities, and threats of the business. Strengths The clothing industry can be argued to be a fascinating business only if business entities analyse the strength of their operations in the emerging market. Some of the factors to consider include the performance of other brands. For example, it would be vital to study how other brands perform in the market. In light with this, evaluation of the strength of other brands would involve assessing the quality, quantity, and customer service (Green & Keegan 2012). For example, this would involve assessing other men clothing brands. One of the strength of Versace is that venturing in Southern Sudan would give it an opening to develop a mutual relationship with customers by a way of offering best quality products (Todeva 2006). The products should also be adequate and steady in order to satisfy the demand of the market. For example, the company may decide to offer a variety of Versace designs, which would cater for needs of every age group in the market (Hill, & Jones 2010). This would be beneficial in such a way that unlike in other brands where they deal with a niche market, Versace will have the advantage of meeting the needs of all men in the market (Bohm 2009). Additionally, Versace may not require a large capital to establish a business in Southern Sudan. Therefore, it would be beneficial for Versace to establish a business in such a market since less capital would be needed. Weaknesses It is apparent that establishing a business in an emerging economy could be tricky in a way. This is arguably true because unlike in an already established economy where the company operates or has experience in, the emerging economy may have unknown trends (Lamont 2002). For example, it would be costly for Versace to carry out research on Southern Sudan before investing in it. Todeva 2006 noted that the company has to understand consumption behavior of the market. In most cases, it is evident that some issues like socio-economic factors of the populace in the emerging market could play an important role in influencing the performance of the market (Green & Keegan 2012). For example, due to low economic status of the people in Southern Sudan, there could be a tendency of men failing to purchase other brands apart from existing cheap brands. Others would opt for second hand clothes, which the company might not be willing to sell. Opportunities Since the company intends to establish itself in Southern Sudan, it is apparent that there are several opportunities in that country (Lamont 2002). For example, Versace may take advantage of the unclouded clothing market to offer top quality Versace mens clothing. Since the company would be operating in a new market, it would have the opportunity of starting with limited capital as it monitors the response of the market. In fact, this act as a factor of reducing operation costs the company (Hill & Jones 2010). On the other hand, since Versace will have carried out a market research, it will have the opportunity to improve on what other brands have failed. This among other things may include issues like pricing, quality, quantity, and service delivery (Hill & Jones 2010). Most organisations incorporate these factors during their initial faces in a market, but fail to develop and maintain some of them. For example, after companies establish themselves in a given market, they tend to adjust some factors like prices and reduce workforce in order to maximise profits (Lamont 2002). This ends up losing business. In this regard, if Versace in Southern Sudan develops and maintain its initial strategies, it is highly likely that it would survive and become successful in the market (Bohm 2009). If, for example, the company decides to maintain sufficient work force, this implies that there would be efficient service delivery. Threats Venturing in a new market could have a lot of challenges. Some of them are actually threats to the company (Green & Keegan 2012). For example, if the company ventures into the market without a thorough study of the market, there could be a possibility that it would fall victim to some of the disadvantages of venturing in such a market. A precise example of such a scenario would be that an emerging economy could not be that promising. People in that market could have a slow switch to new and probably expensive products (Sigismund, et al 2009). This means that the company may realise that its brands are moving slowly in the market, which translates to low returns (Collis 1999). Another major threat could be the existence of other companies in the market offering supplementing brands. Some markets contain a culture of people who are not rational in consumption. This could mean that customers who had already created a loyalty to supplement brands would not switch easily to the new brand (Lamont 2002). On the other hand, due to competition, Versace may decide to sell its brand at lower prices thus leading to low profits. This has dire consequences, which could even lead to closure of the company (Warren 2002). This also applies to issues like distribution channels of the Versace’s products, especially if it imports or transports its products from a distant location. This would lead to high costs of operations, which could have adverse effects on the company’s returns (Green & Keegan 2012). Political interference is also argued to be a big threat to businesses in new markets (Collis 1999). This could involve issues like taxation laws of foreign companies, labour laws and other legislations regarding operations of companies in that particular market (Sigismund, et al 2009). PEST Analysis Venturing in a new market for Versace Men Clothing is likely to be tricky especially is Southern Sudan. In this particular case, this clothing industry is looking for a market for its clothing line in Men wear being established in a country that is the newest in gaining independence and part of East Africa. Several factors must, therefore, be considered to ensure that the clothing industry begins in a special and influential way. Therefore, there is a dire need to efficiently use the PEST (Political, Economic, Social /Cultural and Technological) factors to work out the marketing strategy. This PEST analysis basically describes a framework of factors that are used to scrutinizing apparatus of strategic management of companies or industries. Political environment Henry 2008 argued that the political environment entails all political factors that have an impact on the capability to place Versace Men Clothing in this meticulous part that nears the capital city of Southern Sudan. These indicate the degree that the Southern Sudan government is involved in its economy. One important political factor is the stability of a country. In this particular case, it is of importance to note that a new business requires a stable political environment in order to flourish Most political environments are stable where there is minimum trade restrictions and intervention of the government especially when it comes to private companies or sectors (Reuer 2004). It is significance to ensure that the set political environment for this brand is free from aggravation from the government and the trade restrictions are of favour. Moreover, the tax policies should be favorable with reasonable tariffs to ensure that Versace Men Clothing is able to import materials from processing countries plus export the end products in a favorable marketing ground. According to Hill & Jones 2009, patent laws and copyrights should be legislated to ensure that the ownership of the cloth line is safeguarded together with intellectual property and others who might be participants in the industry. This ensures that Versace Men Clothing has the political support that is needed to keep it on top in the competitive world. Economic environment The economic environment entails all the economic variables such as interest rates, inflation rates, exchange rates and others that tend to influence the operation and profits of companies in the economy (Ungson & Wong 2007). Good examples include the business cycle stage, the disposable income of consumers and the exchange rates in the market. In this particular case, Versace Men Clothing should be able to work around the economic clock by ensuring that there is sufficient capital for the processing of clothes as well as maintaining the flow of products in the market. In addition, this brand should be in a position to build up enough capital to employ enough people who will be able to meet the needs of Southern Sudan bearing in mind that such a company has not existed in this country. Besides, Henry 2008 argues that capital from an industry‘s edge, is crucial in determining the capital that is present on the market and also determining the kind of economic activities of potential customers that allows them to be in positions of purchasing the products that the industry produces without necessarily having to strain economically. It is indispensable to note that the economic environment especially in the new market must be made standard and consistence to ensure that the new found customers respond aggressively towards the products. The prices should tally with the purchasing power of the customers (Sadler & Craig 2003). Social and Cultural Environment The environment incorporates social, cultural and environmental factors that affect industries and companies. First, the social factors include population growth, age distribution, health consciousness and career attitudes among others. They explain the growth rate in the world with the current researches showing that youth are the majority of the population. The level of literacy is high with most of the countries having compulsory education laws (Wong, 2010). This has led to high demand in software application among other social factors. Moreover, trends in social factors tend to have an effect on the demands for a company’s products and the way in which it operates. Versace Men Clothing should bear in mind that majority of the potential customers are highly likely to be youth who are very fashionable and updated hence threatening the cost of labour that is needed in the clothline. According to Hill and Jones, 2009, the cultural factor that dictated the cultural ways of life of different people all over the world should also work as a point to ensure that this new industry is able to understand and incorporate the social aspect of the people surrounding it. That in essence is known as working with what people can prefer hence making it easier to penetrate the market. The environmental factors entail ecological and environmental aspects like weather, climate and changes in climate which dictated that industries and companies work in an environment that is conducive (Henry, 2008). The impact of these changes can be seen to affect the way in which companies operate in offering their products especially when it comes to creating a new market. Essentially, the environmental laws require that companies recycle most of the waste products and reduce carbon emission in a professional way putting in consideration the surroundings and people. Versace Men Clothing is not an exception in the environmental issues hence it must ensure that it identifies a point where it can dispose its waste products and carbon emissions without necessarily having to interfere with the environment. Proper disposal of waste products by companies ensures that the environment is well maintained. Technological environment Technology is the way in which most of the processing occurs. With the recent advancements in technology, it is obvious that manufacturing and processing among other technological changes have been witnessed all over the world (Ungson & Wong, 2007). Versace Men Clothing should ensure that it has the highest range of technology in processing its products. New designs and manufacturing machines are guaranteed to produce clothes that are of high quality as well as fashionable putting into consideration the market present or the potential customers populated by youth. This factor ensures that there is technological incentives and may lead to influencing outsourcing decisions and inception of new innovations. Conclusion Evaluation of the strength of other companies’ clothing products would help Versace Men Clothing decide on areas to advance in order to surpass the existing companies. An emerging economy may not require a large capital to establish a business, and this can be beneficial for the company to establish a business in such a market since less capital would be needed. It could prove costly if the brand doesn't carry out research on the emerging trend before investing in it. It could lack in-depth knowledge of the way the new market behaves. In addition, it may have an opportunity of taking advantage of the unclouded clothing market like in this case of Southern Sudan to offer top quality men’s wear. A major threat could be the invasion of other companies in the market that would intend to offer similar products. Due to competition, the company may decide to sell its products at lower prices thus leading to low profits. The PEST analysis plays a crucial role in any new market for a company as it gives all round information concerning the issues that are at hand and need to be addressed before embarking on starting on a new business. All these factors sum up to a well prepared strategic business development. Bibliography: Bohm, A., 2009. The SWOT Analysis. Munchen GRIN Verlag. Collis, J. D et al., 1999. Harvard business review on corporate strategy Boston, MA: Harvard Business School Press. Green, M & Keegan, W., 2012. Global marketing. New York: Prentice Hall. Henry, A., 2008. Understanding strategic management. Oxford: Oxford University Press. Hill, C and Jones, G., 2009. Strategic management theory: an integrated approach. Boston: Houghton Mifflin. Hill, W. L and Jones, R. G., 2010. Strategic management theory: an integrated approach Boston, MA: Houghton Mifflin. Lamont, D., 2002. 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