Clothing Company: Revolver Clothing Company - Term Paper Example

Assessment of Marketing Table of Content Task1 3 Task1 3 Task1.2 4 Task1.3 5 Task2 5 Task2 5 Task2.2 6 Task2.3 7 Task2.4 7 Task3 7 Reference 11 Task1 Task1.1 Revolver Clothing Company is a clothing company which is located in Brisbane, Australia. This is trading company which operates in the clothing industry and offers a wide variety of clothing to its customers. The company mainly offers casual as well as formal dresses to men and women both. The mission of the company is to satisfy its potential customers by wide range of clothing. The company was established in 1979 in Brisbane Jeans and clothing Company which used sell only men and women jeans but now it offers both casual and formal dresses to its customers (Revolver Clothing Co., 2012). To analyse the current customers and their needs a detailed analysis of analysis of its customers segment needs to be done. Geographical segment: the company provides different price ranges products to target the customers of different income level. It has regular priced products for the people of middle income level and also offers premium branded products for the higher class who only want the quality and the brand name and do not hesitate for price. For social class, all demographic social categories of customers are targeted by the company. It generally offers branded clothes, so, the customers are generally educated and earning people. The customers segment of this company includes working people like employees and small business people. Psychographic segment: the lifestyle of the target customers are generally western culture and people follow the new fashion trend to choose dresses for both casual and formals. Their interest is to get quality and also brand name in standard price. Behavioural segment: Most of the customers are frequent buyers of casual dresses. They follow the new and popular trend. The target customers generally shop from high streets garment shops which offers variety products of different brands. They do not generally buy from the company showroom of a particular brand. As these customers are frequent buyers so they do not purchase at one time shopping. Task1.2 The company can diversify into a neighbour market i.e. Melbourne which is second popular city in Australia. To find out the external factors e.g. opportunities and threats related to this market, the external factors need to be analysed. The external environment of a new market includes political or legal, economic, social or cultural and technological environment. Political: The political environment of this city is influential for a retail business like clothing. Some political issues or the legal restrictions are there to use the natural resources like water that is not related to this business. Economic: the city has highly diversified economy. This city has strengths in its basic domain industry like finance, education, research, IT, manufacturing tourism etc. So, there is a lot of opportunity given for the other industry like clothing business as still the city has demand of more clothing retail outlets according to the people’s demand. Social or cultural: Melbourne is city of diversified international culture as there are many foreigners in this city over t5he years. Social diversification of the people of this city leads to a huge demand in the fashion and apparels for both men and women. This factors leads become another opportunity for this business. Technological: For a retail clothing business, there not much high technology advancement as for dresses people like come to shop to chose best product of their choice. The city offers substantial use of technology to operate a retail garment business or retail outlet in the city. Task1.3 The company needs little product development in the sense of adding more categories of dresses like the designed or customised dresses. As, this city is of variety cultural people from around the world, so, their choice especially dresses would be different. Some new products they can offer like winter collections, sports dresses, men’s and women’s accessories, kids casuals, festive special etc. All these five new product ranges the company can offer to its new customer in the new city apart from the casual and formal dresses. These wide rangers of offerings can cover the demand of people all demographic segment. Task2 Task2.1 To analyse the future goals and capabilities of the company in the new market, internal factors of the firm need to analyse like the strength and weaknesses of the company. Strengths: The company has a long term experience in this industry and can also forecast the future trend of the market and according to this it can sell the current stocks so that the product not enter into death stage of product lifecycle. It already has generated a huge client base and become expert how to satisfy mew customers in its existing market. So in the new market the company might be using its current strategies of generating new customers’ base. Though the location is different but the basic needs of the customers are similar. Weaknesses: The Company presently sells products of some specific and popular brands. There might many competitors in the new market who already offers similar brands in single shop. So, the company needs to offer some unique design but regular priced products to the new customers so that they can get new designed products as well as common branded products. Task2.2 Sl. no. Rating criteria A B C D 1 Market Size 2 4 6 9 2 Growth potential 3 5 6 7 3 Level of usefulness to customers 3 4 7 8 4 Affordability to customers 4 6 8 9 5 Level of competition 3 5 6 8 6 Quality and image 2 5 6 9 7 Cost of Entry and Exit 3 4 6 8 8 Amount of promotion needed 2 5 6 8 9 Ease of distribution and delivery 3 5 6 7 10 Cost and extent promotion / service production changes needed 4 5 6 8 Task2.3 By analysing the current market and the extent of competition in the new market, it can be summarizing that the company get huger opportunity in terms of potential client base, supply and other external factors related to the business. There are many businesses like this in the new market but the demand is more than the offerings of the existing companies. The people demand new collections rather repeat purchase of similar designed dresses. Task2.4 Aft5er analysing a detail analysis of the new market and the clothing industry it can be summarise that the company will face numbers of opportunity in terms of potential client and supply as well as other external factors that influence a business in a new market. So the company start at its business operation in the selected new market to diversify its business. Task3 Costs and benefits: Costs is one of the important parameter of expense. Generally there is two type of cost. One is production related cost and another is purchase related cost. Benefit refers to refers to qualitative or quantitative gain. Profit comes under quantitative gain which is related to the producers or sellers and qualitative gain is related to consumers who are generally benefited by the product or services. Opportunities and threats: Opportunity is one of the most important external factors of a company. It refers to some specific areas or factors of external business environment like market related or industry related or any other where the firm can improve itself by using its strength. Threat is another external factor or areas of a business where firm or a business face difficulties in terms business operation. By strengthening specific strength related to threats a firm can transform its threats to its opportunity. Advantages and disadvantages over potential competitors: Advantages of potential competitors are generally qualitative advantage the firms gain from the competition among the firms. It enhances the innovation in terms of product development as well as the quality. There are also disadvantages of potential competitors like the price war. Potential competitors come into price war regarding a particular type of product or services which adversely affects both the competitors’ business. Sales forecast: Sales forecast is one of the important strategy of marketing that many companies follow to forecast the possible sales of a product or services or the gross sales of a company for next three to five years. Sales forecast has been done by considering many internal or external factors related to a business like market growth, product life cycle etc. Return on investment potential: Return on investment potential refers to company’s potential to generate return on the investment by the shareholders of the company. The investors always want higher return on investment potential of company where they invest. It is financial characteristics of a firm that determines the efficiency or the potential of the firm. Production capacity and equipment: These two terms is generally related to production companies. Production capacity is the main performance characteristics of a production company that determine how much the company can produced at given period of time. It is an important factors producer to become supplier of a large trader. Equipment is the instruments or the machineries Product modification, brand name, packaging, and design, features: Product modification is redesign or modification of a product or services’ features that provide some extra benefit than the earlier product or services. Brand name is the name of a particular brand by which all the products are recognized by the customers. It also represents the quality and value of the particular brand. Packaging is the innovative steps of a production process which shows the features, benefits, price etc of a product. It is also responsible for maintaining the quality of a ready to sell product i.e. at the time period of distribution from the producer to the end consumer. Design refers to both product and the packaging design as both of these factors influence the demand of a product. Features of a particular product are the benefits from a particular product the consumers can get. Pricing strategies: Pricing strategy is one of the important strategies of marketing through which the companies determine price of a product or service. Pricing is most important strategy of marketing mix which is developed by other internal and external factors like cost of production, competition, demand etc. Promotional Mix – advertising message, media, sales promotions brochure, publicity, and websites: Promotional mix is an effective promotional process through which many promotional medium are used to promote a particular product or services. In this strategies the different promotional medium are analyzed to choose some of these for a particular product or services in a cost effective way. Distribution channels: Distribution channels are the medium or instruments of the distribution process like distribution via franchisee, retailers, direct sales etc. These channels help to make available a product to the end consumers’ doorsteps. Developing efficient distribution channels for a product sometimes influence the sales of that product. Service requirements and support: Service and support are the key important benefits that the companies provide to its customers for sold products. Now a day’s people buy durables products by comparing these factors. So, these factors also influence the purchase decisions of the potential consumers. Budget requirement: Budget is estimation of cost for a particular activity or strategy implementation program. Budget is required to effectively develop so that the cost of overall project can be estimated which determines the required investment and also the possible return from the investment. Reference Revolver Clothing Co., 2012. About Revolver Clothing Co. [Online]. Available at: http://www.revolverclothing.com.au/. [Accessed on June 11, 2012]. Read More