Managing Customer Experience for Profit - Case Study Example

Market Opportunity Analysis-Michael Kors Name: Institution: Date: Table of Contents Table of Contents 2 1.0 Concept 3 2.0 Opportunity 4 2.1 Middle Class Rise 4 2.2 Lifestyle Shift 4 2.3 Environmental Concerns of other Weight loss products 5 3.0 Products and Services Offering 6 3.1 Products 6 3.2 Service Offerings 6 4.0 Customers 7 5.0 Competition 9 5.1 Little Joe 9 5.2 David Jones 10 6.0 Entry Barriers 10 6.1 Capital Investment 10 6.2 Consumers Attitudes 11 7.0 Assumptions 12 7.1 Continued Market Growth Rates 12 7.2 Constant Consumers Purchase Trends 13 References 14 1.0 Concept The proposed business opportunity expansion for the Michael Kors is the supply and selling of clothes and other wear accessories in the Australian market through manufacturing of clothes with the ability to stimulate fat deposits burning increasing fitness as a lifestyle changer. In this case, the business concept aims and targets at establishing a market base on the Australian clothes industry with the rising health needs in the society. In order to apply and achieve this strategic objective, the proposed venture will apply both the B2B and B2C business operational models. On one hand, the B2B (business to business) model will be applied in the establishment of relationships with the key industry distributors in the local Australian market. As such, the venture will seek to establish relationships with diversified distributors to ensure that the required supply products are acquired on time and in the right quality and quantity. On the other hand, a B2C (Business to Consumers) operational model will be based on the concept and need to establish consumer loyalty and satisfaction. In this regard, with the growing competition in the Australian and international clothes industry the retailer will seek to establish and retain its consumers through the B2C model application, thus serving as its main competitive business edge. With respect to revenue generation, it is expected that the venture will acquire revenues from two key steams. The first stream will be through sales of the supplied clothes and wear products to the consumer base. As such, once the consumers purchase the supplied products, the venture will generate income and profits. In addition, the venture will hire and contract key clothing’s such as wedding gowns on a temporary basis thus increasing its overall market revenue generation opportunities. 2.0 Opportunity 2.1 Middle Class Rise The global market is gradually but steadily changing over the years. In this regard, this has been as a result of changing market economic factors that necessitate organisations changes to fit in and blend with the changes. One of the changing market macro-economic factors in the Australian market were the economic factor change. However, with the changing economic levels and increased economic activity involvement, the Australian market is exposed to increasing lifestyle diseases. As such, this has developed an opportunity and need for respective orgnisations and manufacturers to develop a cloth line that supplements the dieting needs to reduce health needs in the market. Therefore, the development of the proposed weight loss and fat reduction clothing, whose contact with the body skin, stimulates, burning of calories, will face an increased market base. As such, statistics indicate that the Australian economic development is on the rise as well as illustrating a growing and increasing per capita and disposable income values. Butlin (2013) stated that the rise of an increased middle level society has enabled them purchase and buy products of the middle and high prices values. Therefore, the proposed products will acquire an increased consumer base willing to regulate their body weight. 2.2 Lifestyle Shift Globalization and technology developments have revolutionized and changed the face of the global market. Traditionally, organisations served their domestic markets while consumers were restricted and constrained of movements from one geographic location to the other. However, with increased globalization and technology developments, the movement of both people and products has been tremendously improved. Traditionally, the Australian society had minimal concern for weight and life related diseases in the market, a concern perceived to be a reserve of the Western nations. However, increased cultural integration has changed this perceptive. In this regard, the Australian society lifestyle has changed over the years with increasing globalizations. For instance, while as the society relied on the traditional Australian foods, the system has changed in the present societal set up. In this case, the market has experienced increased fast food joints, a reduced physical exercise orientation as well as the use of genetically modified foods. Consequently, the changing national culture as a result of cultural integration, overweight, obesity, high blood pressure among other weight related challenges has increased not only to the Australian society, but also among the foreigners. In this regard, the proposed weight loss product will seek to serve and remedy this challenge and will acquire its market from across the domestic market as well as among present and visiting foreigners. 2.3 Environmental Concerns of other Weight loss products One of the strategic change in the Australian clothes industry is the concept of environmental concern as a result of cultural integration. Although traditionally a majority of the Australian society members had minimal concern on environmental implications. However, the changing landscape has resulted to a growing concern on activities on the environment. In this case, key among the concerns on the environmental is the effects of the adopted weight loss medications in the market. In this case, concerns have been raised that the used weight loss products production and disposal processes affect and negatively implicate on the environment. Therefore, the proposed weight loss clothing, which applies and relies on no direct rise of chemicals, serves as a viable weight loss alternative to the Australian market. As such, based on this concept, the proposed weight loss product will acquire an increased and sustainable market opportunity. 3.0 Products and Services Offering 3.1 Products The proposed clothes have a classic and unique product proposition in the market. In this case, the proposed new clothes line, intended for introduction into the Australian market will serve the market through a range of approaches. On one hand, the clothes will be fitted calories burning stimulation weight loss. In this case, the products will stimulate wearer’s physical fitness. Thus, the products will have the ability to stimulate the synthesizing and burning of excess body fat stored beneath the skin stimulating increased metabolic reactions in a bid to burn excess body fats, especially common among the market high profile society embers due to their adopted lifestyles and dieting practices. 3.2 Service Offerings The products, service offering will be based on the additional approach adopted by the organization to market and ensure consumer satisfaction. On one hand, upon purchasing the product, consumers will be offered with a complete manual on weight loss. As such, the manual will comprise a fitness analysis and benefits of the respective individuals in the market. Therefore, individuals purchasing the product will acquire free advice and directions on the best and ideal weight loss practices in the future. Moreover, as a marketing tool for the product and as a service offering to the consumers, the respective retail outlet representatives will advice the buyers on the ideal ways and instances in which to apply and use the products, such as the recommended times to wear the weight loss clothes in a week as well as the ideal weight loss clothes type based on the consumers weight. Moreover, for those under the clothes stipulated weight, the clothes will have no effect on their weight thus reducing the risk of underweight or excessive weight loss among the consumers. As such, based on the above analysis, it is apparent that the proposed weight loss clothes, the consumers will have a wide range of additional products services offerings. The product offering competitive base will rely and be based on the uniqueness of the offered services as the product offers an new innovate health feature to its clothing role. In this regard, besides the fashion label and clothing purpose, the proposed product will offer an additional service for weight loss a virtue absent in other clothing products. Therefore, the double benefits gained from the proposed products base is expected to serve as its key competitive edge. 4.0 Customers The proposed product targets the rising middle and upper class Australian society members faced by the risk of overweight and obesity challenges. In particular, the product targets those with health challenges such as physical disability and health challenges to an extent that they cannot participate in the widely advocated for active exercise and sporting activities as a measure to loose and manage their weight. A market survey evaluation establishes that this consumer group has been widely neglected and only exposed to weight loss pills that at times have side effects on their health. Since the recognition of overweight cases as a major economic and social challenge in the Australian market, numerous government and private sector campaigns have challenged the society to live and lead an active life like walking to the office, and jogging among others, However, the society has overlooked the plight of the handicapped and health challenged individuals and how they can also lose weight. In this regard, the proposed product seeks to counter this market challenge by serving this consumer base with a viable alternative and product through which to lose weight through their inactive involvement with minimal or no direct exercise inclusion. As this market evaluation plan clearly outlines the overall Australian society in the market is gradually changing and evolving. In this case, the overall economy is gradually developing and changing in the market (Barnes, Blake & Pinder, 2009). As such, rising economic growth rates in the market will expand and increase into the forecasted future to allow for strategic middle and upper classes increment. Therefore, the market continued growth and concern for a lifestyle change and health challenges will in turn demonstrate and illustrate increasing disposable incomes in the society thus increasing the potential consumer base and demand for the proposed products both in the present and into the future. In this case, the growth trends analysis and an evaluation of the proposed venture report establish that the system will in the long run establish a growing and increasing market share. As such, the venture projects that it will attain a minimum 30% of the high end clothing Australian industry market share in the next 5 years, a value arrived at based on the variety and online platform merits in the system and the unique fitness clothes developed for both the official. Finally, an evaluation of the overall market conditions in the market is based on the existing market situation reveals that the system has the potential to acquire an estimated 20% profit margin based on the merits of establishing a unique products base. 5.0 Competition 5.1 Little Joe Despite its forecasted success in the Australian market, the proposed venture faces a wide range of competitors in the clothes industry. One of the key competitors in the market includes the Little Joe Company. In this regard, the company is directly involved in the production of children’s wear in the market. As such, the venture produces a variety of children products especially focusing on comfort and sporting clothes as a measure to boast consumer exercise culture as a weight management approach among children placing it at an advantage in the development and manufacturing of the children clothes with an advocacy for an active weight management life rather than a passive one as advocated by the proposed venture products (“little Joe”, 2014). Although the venture has its merit in the advocacy for an active life, the proposed product is cognizant of the fact that some of the children face health challenges such as physical disabilities or other health challenges that bar them from participating in active exercise as a weight management approach. Therefore, the Little Joe products lack an innovative approach for this consumer group. On the contrary, the proposed product mainly targets this children group that is unable to participate in active weight management activities. Therefore, this offers the proposed product an added market advantage in the Children market base over its competitor Little Joe. 5.2 David Jones A second market competitor to the proposed venture is David Jones. In its regard, the organization has in the overall applied and encroached the Australian clothes industry. In this case, the organization supplies various market brands to the consumer base under a variety provision for both the local and international brands. Therefore, its already established market base and reputation offer the organization an added market advantage over the proposed market base. However, the organization has a widely diversified products base. In this respect, the overall market base is on low, middle and high end clothing products. Thus, the consumer supply base is wide. In this respect, the venture will be at an advantage due to its focus on the existing market challenges and a specific focus on the high end clothes consumers. Therefore, by forming a niche in the high end markets base in the Australian market, the proposed venture will mitigate and overcome the existing retail industry suppliers. As such, this competitor’s analysis establishes that although the ideal is noble and adopting a unique market focus approach, it has a wide range of competitors as discussed above. Hence, the evaluation process adopts a system in which the organization high end market concentration offers it a competitive edge in the market base (“David Jones”, 2014). 6.0 Entry Barriers 6.1 Capital Investment The evaluation process of venturing into the Australian market by the proposed Michael Koros venture in the market. As such, the overall market base analysis establishes that the existence of already established clothing brands in the market. In this case, venturing into the Australian market will require the brand to invest a high capital base in the market. Therefore, as Belout, Dolan and Saba (2001) stated, through this analytical base, it will require the venture to conduct expensive market surveys and promotional needs. On one hand, the organization will be required to conduct extensive research and reviews in which the market needs and conduct is evaluated. As such, this would include an evaluation of the attitudes and perception in the market base. Moreover, it will involve an evaluation of the unique strategic approaches and needs into which to focus on the overall preferences that are unique in the Australian market base. Through the establishment of such evaluations and market surveys although imperative and relevant in establishing a market success base, requires high capital investment. Moreover, in order to counter the existing market base on fashion trends in the Australian market, the venture will require increased promotional needs in the market an approach that increases the cost of venturing in the market. As such, this would increase overall market entry costs serving as an entry barrier. 6.2 Consumers Attitudes In this case, the evaluation of the proposed entry into the Australian market as proposed will be based on the consumers’ attitudes. Although the Australian clothes and fashion industry operates under a free market approach, its consumer attitudes in the market are varied. In this case, most of the consumers in the market have the alternative and approach through which they prefer local products and fashions over the international market fashion products. In this respect, the consumer base is naturally resistant to external fashion brands due to a lack of enough market knowledge on how the fitness products are based. However, in order to overcome the challenge, the organization has alternative expansion approaches to adopt including joint ventures. In this case, a joint venture could be based with the existing local market fashion and clothes distributers. In this respect, such an alliance would enable the organization reduce its perceived resistance as well as increase its market influence and brand image promotion. In addition, an alternative approach to overcome the barrier is off shoring production services to the Australian market. In this respect, it should manufacture and produce unique Australian based products from the off shored base. As such, this would increase the local based fashion aspect and thus increase the brands acceptance in the market. Indeed, the adopted approach would be similar to the other markets approach applied by the organization such as in New York and Tokyo markets that are run on a subsidiary of independent manufacturers and distributors to enjoy the local market aspects. 7.0 Assumptions In the development and expansion of the proposed venture expansion and entry into the Australian market, the venture and this market analysis plan has applied and developed a series of assumption whose nature and situation must remain static to allow for the market success and execution as stipulated in the analysis. 7.1 Continued Market Growth Rates In its analysis, the plan has developed an assumption that in the review that the Australian market growth will project into the future. In this case, the organization market establishment is based on the analysis and review of a growing and increasing middle class and top class in the market. As such, the organizational venture targets the high end consumers. In this case, the evaluation and proposed venture success and developed strategies are based on the key concept of retained and sustained economic growth in the market. Therefore, based on this analysis, in the vent that a financial crisis or economic growth rates change, the proposed execution strategy will be at risk in the market. Therefore, the analysis holds that the proposed future market growth forecasts in the Australian market will hold into the future without fail. 7.2 Constant Consumers Purchase Trends An additional assumption developed in the market opportunity analysis for the venture is on the consumers purchasing trends in the market. In this case, the evaluation is based on the concept of rational purchasing trends exhibited in the Australian market consumer base. As Taylor (2013) stated, in their purchasing trends, the Australian market is considered a rational consumer base that has minimal impulse buying but an increased rate for planned purchasing. Therefore, the Market opportunity analysis developed is based on the concept that rational middle class and top class society members in the Australian market will prefer international high end clothing industry products in the market. In this regard, the analysis and success of the proposed report is based on the review that the consumer perception and trends remain static into the foreseeable future. In this case, the proposed organizational venture in the market is expected to increase its influence and thus expand into the lower earnings level with increasing concern for alternative fitness achievement alternatives. References Barnes, C., Blake, H., & Pinder, D. (2009). Creating & delivering your value proposition: Managing customer experience for profit. London: Kogan Page. Belout, A., Dolan, S. L., & Saba, T. (2001). Trends and emerging practices in human resource management - the Canadian scene. International Journal of Manpower, 22(3), 207-215 Butlin, N. G. (2013). Investment in Australian economic development, 1861-1900. Cambridge University Press. David Jones, (2014). Company Overview. Retrieved form < http://shop.davidjones.com.au/djs/en/davidjones > Little Joe, (2014). About Us. Retrieved from < http://littlejoeny.com/pages/shop > Michael Kors, (2014). Our Products. Retrieved from < http://www.michaelkors.com/_/N-282b> Taylor, G. (2013). Give your marketing a digital edge. S.l.: Global & Digital. Yao, S., & Wang, P., (2014). China's outward foreign direct investments and Impact on the world economy, Palgrave Publishers, Basingstoke. Read More