Marketing Strategy of Levis and Bench - Coursework Example

of the Table of Contents Introduction ………………………………………………………………..3 Levis: Channelling with SWOT & PEST analyses ……………………….3 Bench: Channelling with SWOT & PEST analyses ………………………5 Marketing Mix: Physical and Channel Marketing ………………………..7 Key areas for competitive leveraging ……………………………………..7 Conclusion ………………………………………………………………..10 Introduction The dynamic and rapid changes in the market paved the way for innovative and creative means of marketing and selling products in a fierce competition with rival companies amid dwindling number of clients and financial odds of most customers (Bain & Company, 2013, p. 1). Corporations, in using this strategy would opt to use channel segmentation as basis to improve partnership with other retailers to optimize performance with over 200 thousand partners and realized an increased return of investment triple as to the targeted 100% of marketing investment (Bain & Company, 2013, p. 1). Thus, other retailing industries, like those in fashion and accessories sales with prominent brands also adopted the standard format of segmenting customer thru channels to make the products congruent to market needs (Bain & Company, 2013, p. 1). Some of them targeted smaller retail stores in urban settings or by adopting strategies of channelling by using franchises and by attracting more local investors in within the preferred markets. This tis the case of Levis in US and the Bench in the Philippines Levis: Channelling with SWOT & PEST analyses Levi Strauss & Co. is one of the fashion companies that is working hard to leverage in the production and marketing of their products. While its quality and historic feat in the world of jeans gained prominence in the world, but the development of new jeans brand and fashion has also somewhat put the product at the margin recently (Bergh, 2012, p. 4). The financial crisis in the market also motivates customers to prefer other products that are priced cheaper but are of somewhat similar quality. Like other companies, Levis are also present in many geographic location using malls, franchises and market channels in selling their products (Bergh, 2012, p. 4). The underperformance was felt notwithstanding the fact the company is present in the information superhighway although, for some reasons, they have reduced the number of advertisements in television for product promotion. At a global scale, the company remained able to gather $4.6 billion as net revenue, which is unfortunately demonstrating a decrease of sales in 2012 (Bergh, 2012, p. 4). This encourage Levis to open a research center in San Francisco to map and improve their understanding of their customers’ needs and to fid innovative means in bringing the products to the market in the name of its distinction, class and craftsmanship (Bergh, 2012, p. 4). Of course, these innovations are targeted to attain sustainability of the company and the products’ existence in the global market to attain an expanded or balanced portfolio (Bergh, 2012, p. 4). Aside from these the company strategize their presence in the market as well as planned at emphasizing cost efficiency to drive the supply chain at the products’ competitive advantage (Bergh, 2012, p. 4). To attain the status as the best performing company, the management felt the need to focus on analysing and understanding customers and market behaviours, promote accountability to employees and its supply chain via robust talent management system (Bergh, 2012, p. 4). The company is therefore not just interested in meeting customers’ needs via online stores but is also apt at dealing personal-based customer in varied part of the regions through its 17,000 employees around the world (Bergh, 2012, p. 4). For them, channelling the marketing of the products need not be relied on innovative means but also of scaling up the performance of their subsidiaries in varied geographic location as well as their human resources who are the direct ambassador of their products in the market (Bergh, 2012, p. 4). These, for the company, will drive sustainable, profitable financial health while investing or relying on the quality of their brands and capacities in leveraging the market. Anent to their corporate distinction, the company is also adopting public policy for environmental care, women rights, and social services under its foundation and thru their leadership (Bergh, 2012, p. 4). Bench: Channelling with SWOT & PEST analyses Bench in the Philippines, a brand of Suyen Corporation, endeavour to become the recognized brand of clothing’s also struggled in coping its sales and marketing amid string competition of products in the market and of diversification trends (Bench, 2013, p. 1). The company started in 1987 selling t-shirts and scaled up its prominence in the market by maximizing television product endorsers, use of billboards, ramp in runways, and sponsoring tv programs or artists (Bench, 2013, p. 1). Because of its fast social acceptability in the market, selling was done most in malls and franchise stores, and to some its market channels or partners in the clothing and fashion industry (Bench, 2013, p. 1). Like other products, Bench is also expanding its market base from Philippines to other outlets such as United States, the Middle East, and China—and have used extensive research and partnership with offshore clients to make its product congruent to the needs of customers in accordance to their demographic location, their age, gender, and socioeconomic status (Bench, 2013, p. 1). With fluctuating condition in the market, Bench also grapple with issues and concerns on leveraging by understanding the behaviours of their customers’ versatility, diversity, creativity and entrepreneurial methods (Bench, 2013, p. 1). Further, like other companies, Bench is also influenced by the political and economic conditions of the country but its corporate adaptability was perceived to be their way of coping up with its goals and of developing trends (Bench, 2013, p. 1). These days, the company has 919 stores in the Philippines, 64 stores in China, 17 in Middle East and 3 stores in United States (Bench, 2013, p. 1). Being present offshore, the company also is threatened by forex rate fluctuations and of global issues on climate change (Bench, 2013, p. 1). Being a company that also rely on textile in the production of their products, their commitments must also require that they need to be involved in the drive of green advocacy (Bench, 2013, p. 1). Moreover, while significant presence of the product is present in malls, the company maintained its presence in the website and also used social networks to promote its products (Bench, 2013, p. 1). Marketing Mix: Physical and Channel Marketing Channel segmentation is dependent on the principles of customer segmentation by making them as partners or branches in business operations to deal with customers that are geographically located from the main business operation centers (Bain & Company, 2013, p. 1). They also target sophisticated customer base that are interested on products and devices but have no sufficient time market these as they spend most of their days in the sub-urb area (Bain & Company, 2013, p. 1). These may need advanced training materials and collaterals especially for sophisticated products and when companies desire an upscale reward to attain data sales target outcome. Other dealers may require different customized strategies depending on what they seek to accomplish and complete within a certain period (Bain & Company, 2013, p. 1). Key areas for competitive leveraging Experts posit that channelling strategies can improve business enterprise, just like what happened to Levis and with Bench, specifically in the application the following areas: a. Lead Management – improve the matching leads with channels that could serve effectively and efficiently as well as made the cost acquisition minimized while conversion rates are maximized (Forte Consultancy Group, 2013, p. 1); b. Product Management – the channels can be optimized based on geographic location needs and capabilities; decrease cost of stock and logistics to help improve the companies’ revenue (Forte Consultancy Group, 2013, p. 1); c. Price Management – development of local price differentiation using market channels (Forte Consultancy Group, 2013, p. 1); d. Promotion Management – improving the local promotion of the product and encouraging users to be the product endorsers in their respective communities. Hence, localized promotion is an opportunity for marketing and on improving customer portfolio (Forte Consultancy Group, 2013, p. 1). e. Operational Efficiency – limits the waste of resources and time that could impact to performances and sales thus, the company use channelling to address the specific needs of the customers in certain locality and provide them with appropriate training and seminars on customer-based management (Forte Consultancy Group, 2013, p. 1); f. Performance Management – channelling strategy may improve the sales and performance of the companies but these can only be determined in an evaluation and monitoring activities (Forte Consultancy Group, 2013, p. 1). The customer segmentation processes can be done using market micro segmentation; customer micro segmentation, capabilities micro segmentation, operations micro segmentation, and performance micro segmentation (Forte Consultancy Group, 2013, p. 1). The analysis and research the cited companies made helped improved the availability and accuracy of right information to match it with products, designs, partners’ capacity, and to determine the use of web-based portals in marketing and promoting products (Forte Consultancy Group, 2013, p. 1). Partners must likewise be profiled and the varied channels separately to attain strategic and tactical purposes (Forte Consultancy Group, 2013, p. 1). Also crucial in their data base management is to match the nature of the customers by understanding their fundamental features and their behaviours-- whether they are sophisticated, tech savvy, traditional, price conscious, convenient seeker, or are in mass (Forte Consultancy Group, 2013, p. 1). The companies cited have their own respective marketing mix and niche. They do not only rely on virtual marketing but more so in the personal and walk-in shoppers who wanted to have a first-hand experience of their products (SiriusDecisions, 2013, p. 1). Business experts posit that there are great experiences to exploit in partnership but this must be coupled with physical presence of their outlets and retail stores to drive customers to avail first-hand services (SiriusDecisions, 2013, p. 1). They may have their respective channelling strategies but all these require research, bench-mark targeting, analytic models, and leadership that are founded on corporate management and performance development (SiriusDecisions, 2013, p. 1). Both companies have not demonstrated in black-and-white the kind of channelling strategies adopted by them but certainly, these are practiced as part of their marketing strategies (SiriusDecisions, 2013, p. 1). Maybe they have not eloquently expressed this in their reports but certainly the managers understand that channel management is part operational business intelligence that can recreate marketing and management to meet the benchmark and performance measures based on critical models and metrics (SiriusDecisions, 2013, p. 1). Conclusion Channel marketing improved the best practices of organizations and in recreating strategies to attain the desired incentives, got leadership in distribution, and in tracking of market behaviours or trends (SiriusDecisions, 2013, p. 1). It also helped generate the latest market developments on supply chain management for competitive leveraging (SiriusDecisions, 2013, p. 1). If these companies intend to vigorously compete with the rest of the fashion-based companies, then maybe, they must develop area teams to help market products but the market officer needs to be wary too of the foundational critical issues that are present in channel planning agenda; develop standard criteria in recruiting partners for maximum impact, structures, agreements, and success. They must have audit processes; create demands on the products by using market development funds and coop funds to drive opportunities; understand that the channel must have primary partner in positioning and selling of products and services; and optimize the use of technology in channel management of vendors, including the process of harnessing the partner relationship management to drive performance (SiriusDecisions, 2013, p. 1; Borg, 2002, p. 1). Of course the physical aspect of marketing the products must also be retained. Full reliance on web-based marketing cannot guarantee fullness of return of investments as there were varied issues too in internet – based marketing, including the use of other sites and third-party e-sites as conduit for payments and exchange. Other than that, customers still like to fit clothing to ascertain that these befit their body structures truly and so they would have first-hand grasp of the product supposed comfortability. References Bergh, C. (2012). Levis Annual Report 2012, US: Levistrauss.com, pp. 1-122. Bench (2013). Company Information, Philippines: bench.com, p. 1. Borg, S. (2002). Channel Management Strategies: Digital Partnering: An overview, Thought Leadership Summit on Digital Strategies, US: Cisco Systems, pp. 1-16. Bain & Company, (2013). Is complexity killing your sales model?US:Bain.com, p. 1. Forte Consultancy Group (2013). Effective Channel Management Strategies--- Segmenting the Channels, US: ForteConsultancy.wordpress.com, p. 1. Retrieved: http://forteconsultancy.wordpress.com/2013/02/14/effective-channel-management-strategies-segmenting-the-channels/ SiriusDecisions (2013). Channel Management Strategies, US: siriusdecision.com, p. 1. Read More