Consumer Behaviour: of Marc Jacobs International - Case Study Example

Consumer Behavior Research Report Executive summary Success of any business in the world today depends on the relationship that exists between it and the customers. This is to mean that holding the interests of the customers at heart is fundamental for the success. This is particularly very important when it comes to the launching of a new product to the market (Italian Trade Commission, 2008). In this report, Marc Jacobs International is an American designing company that deals with fashion for both men women and children. It is in the process of integrating a new product in its operations (Sunglasses). A survey of the potential market which is India and Asian countries reveals the challenges and opportunities that this market presents. Recommendations are therefore indicated on how to make the product more popular in the regions and good marketing strategies. Introduction Marc Jacobs International LCC is an American fashion designs company headed by Marc Jacobs. The company has specialized in designing and sell of various fashion designs. It manufactures and markets apparel, bags and fashion accessories for ladies, gentlemen and children. These products include shoes, handbags, watches, eyewear, perfumes, skirts, trousers, shirts, tops, scarves, hats, and formal and casual dresses. Finished products of this company are marketed under Marc by Marc Jacobs, Stinky Rat, and Little Marc brand names. Marc Jacobs International LLC was founded in 1984 and is headquartered in New York, New York and operates as a subsidiary of LVMH Moet Hennessy Louis Vuitton (Guy, 2002). The company has another major branch in Paris and operates other large in various countries across the world. The agency has set standards for the designer market with far reaching effects on women products such as shoes and jewelry. There has been a recent resolution of introducing other products that would add on the current variety of products that the company has on offer. These products include the sunglasses which targets those who have passion for shades and jerseys with the label of the company (Amy, 2005). In this report, the main focus is on the sunglasses and how the consumers perceive the product. The justification made by the company is that the product has a far much benefit to those who have problems with too much light while at the same type depict a sense of elegance on the side of the person having them. In addition, the report also explores what options the consumers have when it comes to facing the challenges that come with new product (Robertson, 2011). One major aspect that affects consumer behaviors toward sunglass is the price. Many would want to have the value of there money and therefore tend to be attracted to makes that look valuable. This is considered in factors such how well the glasses are fitting to the eye and the rate of protection of ultraviolet light (McQuarrie, 2005). Whereas the bottom line is UV protection research shows that many consumers would always want to put on sunglasses that are much descent no matter the price. Long lasting shades are preferred by most consumers since they wouldn’t to keep on buying the same product time and time again. Many consumers also tend to go by the colour and darkness of the lens since there are some colours that filter out ultraviolet light while others do not filter out (Morton, 2001). In a research that was conducted to examine the marketability of sunglasses that the company intends to introduce to the market, there are various revelations that came out. Since the company plans to sell the product worldwide, the research article selected here is about the optical market in the Indian context. The research defines the state of the world global optical market and issues that consumers of this product have. In the next section, these issues are examined in details. They include the market size, market characteristics, taxes and duties, product characteristic and market rules (McDonald, 2007). In examining the market size of this product, it was revealed that the demand for the product is driven many factors. Among these factors include demographics, fashions, changing healthcare patterns while the process of aging is also increasing the need for eye examination and glasses. Changing lifestyles have necessitated the need for sunglasses not as a fashion but a way of protecting the eyes. There has been need to include polycarbonate lenses and photo chromatic in the design of these sunglasses. United States and Western Europe have been termed as the largest market for sunglasses but it has already been penetrated by other companies. There is need therefore for Marc Jacob to explore other markets so as to increase its market share and also improve its revenue. The proposed market for in this case is the Indian and Asian region since it is yet to be deeply penetrated by other companies. Market characteristics When it comes to influencing the consumer, designers and opticians take a central position in such cases. Companies have engaged research agencies in creating a database of what exactly the potential customers might expect from the new product (Grant, 2006). Asian region is characterized by strong backgrounds for many individuals and therefore would be choosy on the kind of sunglasses to put on. They would therefore opt for better items and not just cheap ones. Since young boys and girls especially in the Indian region want to also to look beautiful, the kind of sunglasses that they would opt for is not the same as those of their counterparts in the Asian region (Jeffery, 2009). The trend of buying may also vary from one region to another with town projected to be more profitable than rural areas. It therefore follows that the business may be well received in towns than in rural areas (Italian Trade Commission, 2008). The region has had other companies that have already entered its market but they are yet to dominate it. Examples of companies that are already in the region include Luxottica and Bautica. Introducing another brand of sunglasses in the region would mean that through marketing be done to sensitize the consumers of the new brand on sale. It is also important to note that these companies already have subsidies and have already been marketed though not that much effective as the report found out. There are also other indigenous companies that are operating in the region and have been there for some time. In addition to that, the region is characterized by some sort of reluctance especially when it comes to fashion items. Most of Asians and Indian citizens prefer easy to put on spectacles than the complicated sunglasses that Marc Jacobs Company wishes to venture in. it also takes time to therefore convince the whole of this group. In the research article it is indicated that nearly 55% of the consumers in this region might have little interest in the sunglasses and are therefore not likely to buy them. It has also been held historically that it is hard to find sunglasses that fit specifically on the Asian faces. This can be noted by the move taken by Luxottica of Italy whose plans are underway to tweak sunglasses that are specifically meant for the Asian. The main idea behind is that unfitting sunglasses have spurred negative attitude (Italian Trade Commission, 2008). Last but not least, the report indicates that sunglass business can only flourish in an environment where there is some permissiveness. This is the freedom of choice that an individual has to decide on what to buy and not what to in line with pursuing personal happiness. Most inhabitants of this potential market are Hindus and Muslims who have their religious values and practices. The Hindu and Muslim religions have what they stipulate on the kind of dressing that the inhabitants of this region have to adhere to. The sociocultural setting in the region for example dictates the kind of clothing that women should put on. In such an environment, there is a likelihood that consumer’s choices would be limited simply because they want to conform to what the society has stipulated for them. This is one of the challenges that the top management of Marc Jacobs has to bear in mind according to this research. In the subsequent section, the consumer’s response to these issues is examined (Italian Trade Commission, 2008). Consumer’s response In this section, four individuals from the identified potential market region were identified and then interviewed. The main purpose of this interview was to get their response on the issues raised about the potential market and their adoption of new product from Marc Jacob. To begin with, the first major point of concern is whether there is a real potential market for the product in the region. Looking at statics really indicate that there is a market that is yet to be exploited to the maximum. As the respondents put, this can be attributed to the poor marketing strategies that the companies in the region have employed. The kind of luxury or customer oriented kind of marketing that these companies have employed makes sunglasses to be perceived as not being part of the fashion world (Italian Trade Commission, 2008). In addition, these four subjects of the research also agree that there has been no model of sunglasses that is specifically designed to fit the Asian features and many have perceived this as being another form of inequality being expressed in the production of these items. Due to racial and genetic differences, there is a significant difference in the physical make up of People in the Asian region and those in the other parts of the world. Many of individuals in the Asian community have low bridged noses and many of the sunglasses slide down their nose once they put them on. One of them responded by saying that “…so I have always found myself having to push my glasses up back in place throughout the day. Many of the western fashion leaders have therefore been quick and aggressive in entering the Asian market but they have done it blindly that is why the business has not successfully thrived. To add on that, the Asian market has also been reluctant to pick over the sunglasses market because of the notion that the American designers have continuously dominated it (Italian Trade Commission, 2008). This is gotten from the discussion with these four individuals and the trend at which other American products are fairing on the regional market. Culture being another issue in the region, the response gotten from the interview indicate that it a lot of influence on the attitude of customers. Women are particularly the most affected especially where there is a strict code of ethics that govern their mode of dressing. Although this influence is indirect and may hardly be noticed, the impact that it has on sunglass market cannot be neglected. The past few years have seen women in this region drop the traditional culture and adopt the new cultural values that characterize western nations. However, there is still further distinction between women who reside in the rural area and those who inhabit towns when it comes to matters pertaining fashion. Those who inhabit towns have been termed as being a bit permissive and therefore likely to provide a larger market for the product. On the other hand, those who inhabit rural areas are likely to little or no interest since there is no permissiveness and sunglasses are perceived to be for those who are in another social class (Italian Trade Commission, 2008). Socio-cultural and geographical factors have also worked to shape the psychological approach of consumers in this region. Having had a history of trade in ornamental items, the inhabitants of this region have got little interest in most of the modern products that are introduced to the market every now and then. The region has also been characterized as lagging behind in development according to the response received from these for individuals. The impact of these factors although not directly felt by the market, the effects underlying the notions held about such items as sunglasses continue to make their market to dwindle. The explanation given in addition to this is that many socio-cultural values upheld by people in the region that cannot be easily abandoned and since they occupy the same geographical region, the whole market is directly influenced by these socio-cultural believes and practices. However, there are those who have gone a step further by abandoning the practices and are therefore very liberal on matters that appertain to fashion. Having known what the potential market has for the product to be released by the company, the next section examines what kind of implication this might have on the side of the company (Italian Trade Commission, 2008). Implication on the company Conducting a research on the potential market before releasing a product is very important for any company that is seriously in business. The kind of research conducted for a possible sunglass market in India and Asian region provides Marc Jacob with sufficient information on what to expect when they release the product. From the findings of the research, it is clear that the market has already been invaded by other companies but no single one dominates the area. This can be a good ground for laying strategies on how to make the sale of the product more effective in the region. It is also clear that other companies have not exploited all the opportunities in the region especially to do with Asian fitting sunglasses. This presents a good chance for the company to try and come up with sunglasses specifically for this market (Italian Trade Commission, 2008). In addition to that, the company has to conduct another thorough study on the cultural diversity and social values that are upheld by people in this region. This is because the research indicates that the region upholds a very strong code of conduct that has its foundation in religious beliefs and practices. This directly affects the business environment in the region and minus a clear understanding of the consumer’s needs; the company is bound to fail in its endeavors. The opportunity that this region provides is therefore large but has to be handled with a lot of care and needs good planning. Marc Jacobs’s decision to introduce this product on its list of products can only thrive well in this region if at all they plan well on how to reach the local community and market the product well. This is one of the few markets that present the company with an opportunity to jumpstart its business in sunglasses considering that the other markets are already flooded. It is therefore appropriate for the company to go on with the business (Italian Trade Commission, 2008). Recommendations For the success of Marc Jacobs in the sunglass market especially in the region discussed, the following recommendations are thought to be the best practices can catapult their efforts. These include what needs to be done within the company and the region so as to synchronize the two and ensure a smooth business. 1. The company should integrate the sale of sunglasses with other fashion designs. This would make sure that as they partake in the sale of the products that they have designing, the new product is also sold on a parallel market plan. This would ensure that as much as they are introducing the new product into the market, the normal channel that is used by other products is also being utilized. By so doing, the company the company would be streamlining its operations since sunglasses alone cannot be sold to the market solely. 2. There is also need to conduct further research on what is the actual interest of the consumers in this region. This has to do with the color and make of the sunglasses. Since many consumers tend to prefer one kind of product to the other on the basis of many factors, finding a way of harmonizing all these preferences before releasing the product to the market. In fact, the best way is conducting a survey by use of sample products before the actual launch of the product. 3. The company should also consider releasing sunglasses that are compatible with Asian features. This would eliminate the notion held by many of the regions inhabitants that these products discriminate against them. Doing so also widens the targeted market by including those that had been left outside. In addition Marc Jacob Company would be competing with other companies in the region and therefore this serves to put them at a better place to make a lot of profit. 4. The company should embark on a serious marketing campaign after introducing the product to the market. The follow up process might assist in ensuring that the product picks up very first once released on the market. With promotions and other activities consumers are likely to be moved by the new wave of product that hits the market (Debonis, Balinski, & Allen, 2006). 5. There should also be serious investment in the business so as to ensure that there is a strong foundation laid. With a strong foundation, the new product is likely to survive all the negative factors that might characterize the market. The company should ensure that there is constant supply of the product to the market. This is meant to ensure that there is a steady chain of supply to the new market for consistency purposes. In summary, Marc Jacobs’s international decision to venture in the sunglass market is possible and quite workable. This is because the target market is open to the company and only requires good strategies especially in marketing (Guy, 2002). As a result of a research that was conducted on the potential market, there are a number of issues that the company needs to handle before venturing into the market. They range from ethical consideration have the actual needs of the consumers in the region. The report also indicates the Asian and Indian region is the only market that is yet to be fully penetrated by sunglass designing companies and none of them has assumed the position of dominance. The company has therefore a task ahead of it to conduct a thorough market research and come up with policies that would be effective when they are implemented. If all this is done, then a great opportunity presents itself for the company to conquer the sunglass market in the region. References Italian Trade Commission. 2008. The Optical Industry in India. Market Research. Italia. Amy, L. (2005, August 21). Lost and Found. New York Magazine (online). Available from http://nymag.com/nymetro/shopping/fashion/fall2005/12544/ (Accessed 3/5/2011). Guy, T. (2002, May 28). Familiar, but Not: Marc Jacobs and the Borrower's Art. The New York Times (online). Available from http://www.nytimes.com/2002/05/28/nyregion/familiar-but-not-marc-jacobs-and-the-borrower-s-art.html (Accessed 3/5/2011). Morton, C. (2001, June 1). Fashion flashback. (Style Scrapbook). (what fashion designers wanted to be as children). Harper's Bazaar (online). Available from http://www.highbeam.com/doc/1G1-83699187.html (Accessed 3/05/2011). McQuarrie, E. 2005. The market research toolbox: a concise guide for beginners (2nd ed). California: SAGE McDonald, M. 2007. Marketing Plans (6th ed.). Oxford: Butterworth-Heinemann Robertson, P. J. 2011. Knowledge Transfer and Technology Diffusion. Cheltenham: Edward Elgar Publishing. Grant, T. 2006. International directory of company histories. Michigan: St James press Jeffery, M. 2009. 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