Company Introduction, Market Segmentation, and Product Positioning - Assignment Example

? Marketing Plan “UW” Clothing Company – Marketing Plan Company Background UW is a clothing brand which is aimed at catering clothing demands of kids in the UK. The company has been in business since past five years and has opened up its retail outlets in London and Birmingham. UW in this short period of time has become a popular clothing brand and its designs and varieties are admired by a large number of customers in the cities in which it operates. Although the business has been successful in this period of operations and there are satisfactory levels of profits earned by the company, but increase in competition and increased focus of competitors towards market segmentation has resulted in a tough competitive environment for the company to operate. Additionally, recent financial crisis has also affected company’s revenue trends and has raised concern in management to focus on foreign markets and explore regions which have potential demand for its products. The management of the company is now planning to target a foreign market for its products, where the company can expand its products’ line and generate more revenues. In this regard, the management of the company believe that UAE is the most appropriate target foreign market while considering the nature of company’s business. Mission Statement UW’s mission statement is to “become a favorite clothing brand of kids both in UK and internationally”. Target Foreign Market for Company’s Product The company has planned to target kids clothing market in the United Arab Emirates (UAE). The rationale for doing so is that there has been a phenomenal increase recorded in the demand and consumption of kids clothing. Moreover, kids clothing brands which have already entered UAE’s market have earned their place in the market. As noted by the brand manager of a local kids clothing brand in the UAE, “parents want to see their children dressed well, and even the children are becoming very brand-conscious. It's a big market for the fashion houses” (Jones, 2012). Similarly, Sana Toukan who is an analyst from the market research company named Euromonitor says, “Buying children's designer clothing is most common within the local community and the Arab expatriates who are happy to splash out on their children when they can afford it” (Jones, 2012). Following are the key factors favoring UAE as a target market for UW’s brand: Kids clothing brands market has experienced a growth of 16 % in the United Arab Emirates during the year 2010 (Jones, 2012). According to Liwa Trading, kids clothing brands, who are popular in other parts of the world, are expressing their wish to enter UAE’s market (Jones, 2012). Kids in the UAE have an increasing concern of what they wear and have developed a fashion sense (Jones, 2012). In 2011, there were about $ 1 billion spent by people living in the UAE on children clothing and footwear brands, thus implying how strong demand and consumption is for kids clothing products (Jones, 2012). There is a wide range of prices of clothing available in the UAE’s store, i.e. prices of clothing products are ranged between Dh 250 and Dh 2,500, and as a result UW can set its target price for products relatively easily (Jones, 2012). Potential Audience for a Marketing Plan The potential audiences of a marketing plan can be both internal and external stakeholders of a business. These stakeholders include management, departmental staff, investors, regulatory authorities, analysts, customers and others. The needs of this wide audience for a marketing plan may vary from person to person. It is actually the perceptions they have which in turn shape their needs. People listen what they want to listen, and the same goes for marketing plan. Information contained in a marketing plan may be of high value and interest for management, but at the same time it may be regarded as useless or even unworthy to be looked at by others. Therefore, a perfect marketing plan caters the information needs of all members of the potential audience and serves their individual needs in a manner suitable for all (Kennedy, 2011). Identification of Market Segment Since parents are spending more and more in UAE on kids clothing products and the price range for clothing products for kids varies from Dh 250 to Dh 2,500 (Jones, 2012), therefore UW can do market segmentation on the basis of price of its products. During the recent financial crisis, the working and middle class in UAE faced major jolts in financial terms, rendering their financial position brittle. These changes in financial condition of a huge working class residing in the UAE have made them price elastic towards products without which they can survive. Clothing brands and designer clothes are amongst those items which are perceived as unnecessary by them in a period of worsening financial condition (Vora, 2009). Keeping these conditions and circumstances in view, UW can shuffle the prices of its products through applying the principle of price discrimination. In this regard, the company can consider pricing its products within and even lower than the price range mentioned earlier, in which clothing items for kids are already available in the market, i.e. Dh 250 to Dh 2,500. Target Market Obviously, target market in the UAE will be kids as UW has been engaged in kids’ products. However, the company will specifically target kids who are below the age of 3 years. This will in turn allow the company to increase its penetration in the market. The decision to target kids below the age of 3 years is based on the reason that UW has not been able to offer much for children in this age group and by targeting this age group of kids, UW will be able to expand its existing lines of products. Moreover, the company will also target those customers who do not possess financial strength to afford branded and designer clothes for their kids. SWOT Analysis of the Company In order to present internal and external analysis of the company’s position and strength, following is a SWOT analysis which entails internal (strengths and weaknesses) and external (opportunities and threats) analysis. Strengths Weaknesses The major strength of the company lies in its versatile collection of clothing styles for kids. Another strength of UW brand is that its products have reasonable price as compared to other popular clothing brands. UW’s brand goodwill is tremendous in the UK and it is therefore expected that the company will be able to maintain the same in new foreign market and will also be able to have a competitive edge over other competitors. The major weakness faced by UW is that its product line does not feature clothing items for children of all age groups. In fact there are no products for toddlers and kids of age below 3 years. The fact that the company has never operated outside UK, the country of its origin, may act as a disadvantage during the initial stages of market entry. This is because that the company has not experienced market dynamics and regulatory and governmental frameworks in its tenure of operations. Opportunities Threats Keeping in view attractive growth forecasts of children’s clothing market; there is a huge opportunity for the company to make an impact in UAE’s kids clothing market (Jones, 2012). Since there is huge market for clothing and footwear both (Jones, 2012), UW can capitalize on it and launch footwear for children too. Increase in growth (Jones, 2012), which is also listed as an opportunity for the company, can pose a significant threat in the form of competition due to large number of kids clothing brands entering in the UAE market. Owing to the recent political unrest in the Middle East, there is a threat that economic development of region may become halted in both short and long term (Yousef, 2011). Market Position of Company’s Product Since UW is planning to enter UAE market for the first time, it is therefore necessary that the focus shall be on market development. Keeping in view the Ansoff’s Matrix, it can be observed that UW is placed in third box, which is market development. This placement of UW in Ansoff’s Matrix is based on the fact that the market for the company, i.e. UAE is new, but its product are same which it manufactures and sell in the UK. Therefore, these circumstances define the current market position of the company’s products. Product Market Established New New Extend product into new market Diversify into new product for new market Established Aim to increase market share Develop new products to meet the needs of existing market better Ansoff’s Matrix Source: (Lester, 2009) Therefore in order to develop market for its products, UW will look forward at targeting those customers who do not form the customer base for children wear. In this regard, the company will introduce low priced clothing products for children which are affordable by such potential customers, who are still not targeted by the competitors of UW. Reference List Jones, R. (2012, May 1). Childrens' brands the height of UAE fashion. The National . Kennedy, D. S. (2011). The Ultimate Marketing Plan: Target Your Audience! Avon: Adams Business. Lester, A. (2009). Growth Management: Two Hats are Better than One. London: Palgrave Macmillan. Vora, N. (2009). The Precarious Existence of Dubai's Indian Middle Class. Middle East Report , 252, 18-21. Yousef, D. K. (2011, May 30). Unrest biggest threat to business. Gulf News . Read More