International Marketing: Project Abayas Design - Term Paper Example

Introduction After a careful analysis of China’s macro environment, studying the consumer market and identifying potential competitors, development for a strategy to enter the market is necessary. This strategy will also be necessary in order to launch the product to the international market. Abayas design is a company that produces classic traditional and religious clothing. It is located in Dubai and produces a variety of products including kaftans, Muslim clothing, hijabs, jibabs, niqab, abayas of different kinds, maxi dresses and many other designs. Most religions require one to wear an over garment that covers most of the body parts. Abaya the name, originated from the Arabian Peninsula meaning, cover the whole body (Tarrant &Marjorie 301). Abaya does not produce casual wear it is strictly religious and traditional in its productions and has stores in Pakistan, Turkey, Arabia and many other countries worldwide(Tarrant &Marjorie 311). China revolves around its tradition, culture, and beliefs on a daily basis. Religious and traditional clothing in china is an important part of their lives since it gives individuals personal identity. Abayas will definitely succeed in producing these different types of religious clothing to China since it is a daily part of their lives. However, two factors require careful analysis in order to enter the market and launch the product with a successful accomplishment. These two key factors are targeting market, positioning in market and the marketing mix of the company. This report will expand on the factors that will determine the success in launching and penetration to the market. Target and Market Positioning Traditional and religious clothing will target a wide range of individuals in china. There are several traditional clothing in China does not vary with age group, all the individual practice their religion and traditions and are committed to them including children and old people. There are several ethnic groups with different preferences in their traditional and religious clothing. The hun, Manchu, zhuang and hui are among the largest ethnic communities in China. The best way to target all of these ethnic groups is to subdivide the whole into segments. This will make it possible to treat each market uniquely with its own needs and marketing mix (Madura 89). During the division of the market into segments, it is necessary to note characteristics of each segment in order to realize the potential segments. In the case of China, these different ethnic groups can create the segments. Select the potential segments according to organizations ability to serve the customers to full satisfaction and at the same time maximize on their profits. Since products in each segment are homogeneous, picking out the potential segments will be easier. The largest ethnic community has more potential for higher demands and thus maximized profits; this will be the potential segment during market penetration (Madura 89). Having a positioning strategy will aid in providing the selected market with what they desire the most for instance stylish dinner designs though traditional for Manchu ladies. China is holds its tradition as most important in daily life but it is also a modern society. This means young consumers preferably between 15 years and 45 years will want something traditional but modern. Since China’s largest population ranges from the age of 15 years to 60 years, Amaya designs is assured of a market with numerous young people. This is also an opportunity since Amayas clothing designs stylish, classy, and modern traditional wear. This way positioning will be easier for the company. However, the internal producers may cause stiff competition since they understand the market better. China holds a very competitive economy that poses dangers such as imitation. Since Amayas clothing is unique and original it will be on a better level to position the new products and deal with the limitation competition. A positioning strategy together with analysis of the market situation can help in smooth positioning of the new product. An effective positioning strategy will involve the brand owning a significant and differentiated idea in the mind of the target segment and development of more leads. China’s religious and traditional clothing is not a complex subject, Amaya designs can use this to their advantage and develop more ways to ensure customer is satisfied and wants more (Madura 93). Marketing mix The marketing mix involves the decisions a company makes in order to introduce a product into the market. Marketing mix is necessary for launching of a new product, ignoring will only mean the product will fail in the new market. The best way to make these choices and the most commonly used in the marketing mix is the 4p’s, right product, right place , right price, and right promotion (Madura 90). These four p’s are the main components of the marketing mix. In order to for a company to create the right marketing mix, meeting the following conditions is a necessary initiative. The new products must have the precise features required, for instance the traditional clothing should well designed if buttons are supposed to be on the right they should not be on the left. Another condition is the price, for the new product to have numerous profits, the price must be right for more customers to buy the product in plenty. Lastly, the other condition is successful promotion of the product to the target group. The target group should be aware of the existing product them to buy it. Below is the detailed explanation of how the 4p’s operate for the smooth launching of the new product in international market penetration. i. Product decisions Amayas traditional and religious clothing has several attributes, which include the differentiated products, they are original, unique, stylish with a sense of class and are modern. Amayas designs are usually unique and original the company comes up with different styles every now and then but still preserves the culture in the clothing. Tradition in China is the core of their everyday life and revolves around their values. However, the society in China is also modern given the state of development in their country. Therefore, it is a great attribute that Amayas design can for instance produce stylish Manchu clothing but still preserve the essence of tradition in it. This way the modern Manchu man can wear a stylish cloth but still be traditional. Another major attribute to the Amayas design is that its mission is not behavioral or social (Lu 199). Most of the companies that fail in China are the ones that are insensitive to their culture. For example, eBay failed in China due to assuming that the American consumer was similar to the consumer in China. Eventually it ignored their culture and tradtion, and ended up failing. Amayas design is a more traditional business; it will focus on the china’s culture and since china likes to preserve its tradition Amayas designs will easily succeed since they are on the right track. The Amaya traditional and religious clothing comes in all sizes this way they can provide from the children to the old people. This way the whole generation can be consumers of the quality brands of Amaya Designs. This is great because the wide range of products will mean an increased customer base, the quality products will mean consumers are satisfied and for Amaya designs, the sales bar will be higher with maximized profits (Lu 199). Amaya designs can use an expansion strategy to supply for the high demands. The company can use the following tactics for the expansion strategy. Increasing sales and products over a large area through improved marketing techniques is one tactic. It requires a market that already has a relationship with the company. This way they may customers will let them know when they stray. After supplying the product for a while and realizing the successfulness of the product, introducing a new product will be tactical in the expansion strategy. Amaya designs can introduce cultural toys, which is a benefit because China uses numerous cultural toys. Developing a new market segment is also a strategic expansion, Amayas designs can develop a segment that requires the cultural toys this way it will fulfill the expansion strategy. Starting a chain is another strategy for expansion; this will require the need to understand what made the product successful. If it was the staff, dividing them to the new chains will be necessary. These tactics will help realize success in the expansion strategy. However, a product adaptation strategy is necessary (Ritcher 200). Product adaptation depends on how well the consumers of your market receive the products. It means producing a product that meets the international needs of these customers and at the same time, the product has to suit local markets. To succeed in product adaptation the company needs to define their core product that does not change from market to market. This way adapting the product to the intended product will be easy. Amayas design can first begin with adapting the traditional clothing to the different segments before introducing anything new. Once the adaptation process is through alterations can follow on the product depending on the customers’ interests. Adaptation will help realize what the company can remove or add in order to improve the product. For this to be successful, the company will need a product innovation strategy ( Ritcher 210). This innovation strategy requires technology, a new product and policies to enter new markets, increase profits, increase customer base and modify existing competition. Product innovation is a key aid in a competitive market such as China. Amayas design can add more features to its products in order to attract more customers in this process the company can advance a new product with attractive qualities. Given that China is highly developing in technology, the product innovation process will not be difficult. ii. Pricing Pricing involves the amount consumer has to pay in order to purchase a product. Before pricing a product, the company should be able to understand some key related issues to pricing which include, value to customer. Before putting, a price tag on the products one should understand what value the product has to the customer. Amayas designs are traditional and religious clothing, which are very valuable to Chinas culture. Price points for the area of trading is a necessary consideration since China has a stable income per annum it means the people can purchase different goods easily (Lu 201). Having incentives such as discounts is a great way to lessen the competition. Also having slightly lower prices will increase the customer base. In China competition is stiff having a high price will only men fewer customers this is one negative factor that will influence pricing. Incentives and lower prices can be a great way to penetrate the market. Imitation is at a higher percentage in china and the products offered are cheaper and can reduce the customer base ( Ritcher 204). iii. Channels of distribution The main aim of channel distribution is to get the product to customer at the right time, place and with the right price. International business will mean exporting products and there are two methods direct and indirect distribution. Indirect distribution is when the supplier ships the products to the buyer while in direct exporting the supplier deals directly with the purchaser. Direct distribution has fewer risks in comparison to indirect distribution. The benefits accrued are more control over the export, more profits, and a closer relationship to the customer. The product can begin from the company Amaya to wholesalers who will in turn distribute to the retailers who can finally distribute to the consumers (Ritcher 204). iv. Promotion China has advanced technology with most of the people using mobile phones, tablets, and laptops. Using a website to promote product will be a great idea since these days people mostly spend their time on internet. A commercial on TV is another great way to promote the new product. In moments such news breaks a commercial will capture the attention of a wide range of people. The concept of multi medium promotion is beneficial since those who cannot afford internet may be able to know about the product through the papers. Multi medium promotion puts in consideration a wide range of people since not everyone uses one medium to get information (Ritcher 205). The core message in a promotional content is very important. The key message that Abayas designs is communicating, is the importance of tradition and religion and most of all how it is essential to keep the culture alive. This message is sensitive to China’s culture the first reaction from the people will be positive. This gives the company an upper hand in marketing the new product. A promotional budget is necessary to be successful in implementing the promotion for the product. The following steps will simplify the advertisement budget first year. First, the company will budget with a range of 10% to 15% of the totals for the next year’s projected sales. The company’s projected sales are $1000, 000 thus cost of exposure on the lower end will be multiplied by 10% and and on the higher side with 15%. The lowest cost of exposure will be $100,000 while the highest will be $ 120,000. The second step will be multiplying above figures with the average mark up which is 92% for the company. The adjusted cost of exposure on the lower end will be, $ 92,000 and on the higher side will be $110400. Finally, deduction of absorption fee, which will be $36000 this way the promotion budget, will be $56000 on the lower end and $74000 higher side. Conclusion Abayas traditional and religious clothing is a possible success to china since it more culturally driven. China always has an important hold to their cultures, traditions, religion, and beliefs (Lu 89). The fact that Abayas design is considering the traditions of china is a plus to the possibility of their success. Abayas traditional and religious clothing will possibly succeed since it is providing an essential product to the society. China value their traditions, religion, and so do what clothing comes with them and this means that the people will buy the products since they value their tradition. The people dress in these clothing on a daily basis and not only on occasions and this means that there will be a great demand for the product. The message that the product communicates is also positive toward their culture. Embracing culture is what the product speaks and that is what China is about generally. The product is generally a good idea and with all the great opportunities. China is also a good idea for a destination for the foreign product since it is politically and economically stable (Lu 229). This promises the product a success in the international business. This is a great idea given that the product is offering the destined country, China a product that the people value desire and respect. Work cited Lu, Pierre X. Elite China: Luxury Consumer Behavior in China. Hoboken, N.J: Wiley, 2013. Internet resource. Madura, Jeff. Introduction to Business. Mason, OH: Thompson/South-Western, 2007. Print. Richter, Tobias. International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from Berlin: Logos, 2012. Print. Tarrant, Shira, and Marjorie Jolles. Fashion Talks: Undressing the Power of Style. Albany: State University of New York Press, 2012. Internet resource.World- Markets. Yang, Fenggang, and Joseph B. Tamney. Confucianism and Spiritual Traditions in Modern China and Beyond. Leiden: Brill, 2012. Print. Read More