E-marketing Plan for Bosideng International Holdings Limited Shanghaibased Online Clothing Company - Case Study Example

E-MARKETING PLAN by Student’s name Code+ course name Professor’s name University name City, State Date Introduction Bosideng International Holdings Limited is a Shanghai‐based online clothing company that has for long dominated the clothing and apparel industry in China. Some of the Bosideng leading product includes blue jeans, dress shirts, men’s casual wear, dresses, ladies casual wear, polo shirts, ties, hoodies among others. Bosideng International Holdings Limited is committed to quality, reliability as well as cost-effectiveness. Through the Bosideng International Holdings Limited expansion program, the company looks forward to expanding its services to other regions. The Southeast Asia region provides the ideal destination for Bosideng International Holdings Limited market due to its location (proximity), a high number of consumers and growing market. The company shall base itself in major cities such as Jakarta, Bangkok, Kuala Lumpar, Singapore and Vietiane. The larger Southeast Asia region has a population of 618 million, who can provide an ideal clientele base for Bosideng International Holdings Limited products (Lasalle, 2013). The report shall study the strategies, that is, SWOT analysis and external forces surrounding investment in the region; including, political and legal forces, economic forces, technological forces and social-cultural forces. 1. Bosideng International Holdings Ltd Situational Analysis Bosideng International Holdings Ltd should carry out a situation analysis in order to determine the varying needs of its clients (Kachru, 2005). Successful strategies usually depend on the company’s strategic capabilities, that is, the ability of a firm’s strategy to fit well in the internal as well as the external environment in which it operates (Collins, et.al. 1999). A) Bosideng International Holdings Ltd External Environment The decision to invest in a foreign country is triggered by the desire for growth and expansion. According to Paul (2008), investors willing to tap a larger market share in a foreign country must carry out a market analysis in order to determine the viability of such an investment. Various forces affect the decision and mode of entry to a given market. The forces can be divided into six categories; competition, political trends, legal and regulatory forces, economic growth and stability, technological advancements, and social-cultural forces (Khalil, El-Nawawi & Holesberger, 2005). i) Competition Bosideng International Holdings Ltd face stiff competition from clothing companies within and outside the Chinese market. Local competitors include local garment manufacturing firms which adhere to the South East Asian culture. The increase in imports from countries such as Australia, Japan and the US is also shrinking the market for Bosideng International Holdings Ltd. As a result, Bosideng is forced to enhance the quality and also manage costs in order to gain a competitive edge in the market. ii) Economic growth and stability The greater Southeast Asia is a key region of the global trading system. The region produces a wide range of products, and it’s ranked among the growing economies in the world. In the recent past, the nations have shown steady economic growth. In 2012, the greater Southeast Asia region attracted more than $111.3 billion in foreign investment. Analysts predict that the dependency ratio in the region will reduce significantly in the near future, and therefore, there will be more resources for investment opportunities. Further, the Association of Southeast Asian Nations (ASEAN) promotes economic growth and expansion through creating a level playing ground for member states, as well as removal of trade barriers in the region. The countries’ resilience to the 2007-2008 financial crisis which took a toll on developing and developed nations alike is clear evidence of the region’s thriving market. With such a strong economic background, Southeast Asia is an incredibly promising investment region that is most likely to create value for money for an investment. iii) Political factors Political factors entail the state laws that have an influence on the running of business organizations. International investors, such as Bosideng International Holdings Ltd face various political challenges. Among the major political challenges that Bosideng International Holdings Ltd could face include government subsidies, quotas and political. Thus, Bosideng International Holdings should conduct a political risk assessment before investing in Southeast Asia. Some of the elements that Bosideng International Holdings should consider before investing in Southeast Asia includes: sovereignty, Acts of Southeast Asia states, intercontinental treaties and Southeast Asia intellectual rights. The great Southeast Asia region has a conducive political environment, and this plays a critical role of encouraging international investors such as Bosideng International Holdings Ltd. iv) Social-cultural Trends It is imperative for investors to understand the nation’s culture, language and other social-cultural trends before investing in international markets. In the Southeast region, the language barrier, lack of democracy and overreliance on Islamic faith would pose a major challenge to non-Muslim investors. Common aspect among the Southeast countries is their high population which provides labor supply to businesses. v) Legal and regulatory issues Most countries in the Southeast Asia region are signatories of various global laws and treaties, including the United Nations, World Trade Organization, World Bank, among others, all which plays a major role in international dealings. Nonetheless, the legal framework guiding the process of business registration and operation are flexible; thus, promoting international investment. However, risk of breach in the patent rights such as trademark in Southeast Asia region is a major threat to an international investor. vi) Technological Advancements Southeast Asia region has overwhelmingly embraced information technology and the key role of the social media and internet media which affect organizations. Analysts predict that the total value of information technology services in Thailand, Indonesia, Singapore and Malaysia will surplus $74 billion by 2017 (Yue & Lim, 2002). Technological innovation plays a crucial role with regards to production levels and barriers to entry. Bosideng International Holdings Limited must institutionalize an innovation culture in order to survive. Thus, the company will harness the power of information advancement to meet the varying clients’ needs. Meeting customer’s needs will, in turn, enable Bosideng International Holdings Ltd to earn profits and obtain resources to invest in new products. Delighted customers complete the virtuous cycle of innovation which benefits both the company and the customers. Because organizations exist to create wealth through customers, all their efforts, then, should be geared to meeting the needs of their customers. Researching customer needs is the first step in innovation. By researching customer needs, Bosideng International Holdings Limited shall determine the best way to satisfy clients’ needs. With this regard, Bosideng International Holdings Limited will become a technological leader as far as the clothing industry is concerned. B) Bosideng International Holdings Ltd customer environment The customer environment for Bosideng International Holdings Limited will be largely based on demographic and purchase power variables. The company intends to increase the selling more clothing and accessories, in order to achieve growth. Demography is the study of the human population in accordance to the size, density, distribution and other related statistics. An increase in the Southeast Asia population will result in an increase of Bosideng International holdings Limited. With regard to purchasing power, Bosideng International holdings Limited is affected by a variety of economic forces which cannot be controlled by the company. These economic forces can be divided into demand force and competitive forces (Vitullo-Martin 2002). C) Bosideng International Holdings Ltd internal environment Organizations’ marketing objectives could be continued existence, profit maximization and market dominance (Kong, 2005). Bosideng International Holdings Limited aims at becoming the market leader in the clothing and accessories throughout the Southeast Asia region through value creation, adoption of information technology in creating superior brands, and conducting advertising campaigns. In so doing, the company will take into consideration environmentally, as well as, economic practices. Bosideng International Holdings Limited is a largely endowed organization in terms of resources which include financial, human and assets. However, its most valuable resource is the experience. Bosideng International Holdings Limited was incorporated in 1994, and since then, it has grown in leaps and bounds to become an international brand. For this reason, all the experiences that those who have been in the company have is invaluable and could assist very much in dealing with the threats that may arise. To deal with potential threats and especially the looming financial crisis, Bosideng International Holdings management has resulted to some measures to avoid major downfalls in future. On this end, it has entered into outsourcing and manufacturing agreements. This would come alongside massive downsizing in the company, which would help to cut costs. Reduced costs would give rise to increased profits, or better still the company would be able to break-even. 2) SWOT ANALYSIS Strengths The strengths of Bosideng International Holdings Limited include the following; Bosideng International Holdings Limited has an upper hand in that its premium brands (clothing and apparel) are recognized worldwide (Pahl & Richter, 2009). The company, therefore, will not use huge resources to advertise its clothing brands in the Southeast Asia market. The company will in turn use the retailers and consumers to advertise and promote the brands. In recent years, the company has developed a strategy aimed at maintaining a narrow product line. This has enabled the company to position itself well in the clothing industry. The company shall, therefore, use this knowledge to gain a large market share in Southeast Asia. The corporate strengths in combination with the rigorous industry analysis will enable Bosideng International Holdings Limited Ltd to succeed in the foreign market. A) Weaknesses With regards to Bosideng International Holdings Limited, the following is the inadequacies that can deter it from realizing its objectives in the Southeast Asia region; The resources that are meant for advertising are usually smaller than that of the rivalry firms. For instance, Metersbonwe Group spends more in advertising and promoting their products. Therefore, Bosideng International Holdings Limited Ltd will not enjoy a large market share if it does not allocate huge amounts on advertising (Griffin, 2011). Another weakness that can hinder Bosideng International Holdings Limited Ltd from achieving its marketing goals in Southeast Asia region is the stiff competition in the apparel industry. The rivalry among clothing manufacturing firms in Southeast Asia is stronger. More clothing companies have launched new strategies in order to gain large market share. Thus, customers will switch to rivals products if Bosideng International Holdings Limited Ltd does not produce market responsive clothing products. B) Opportunities The following are the main prospects of Bosideng International Holdings Limited Ltd; The number of young-wealthy individuals in Southeast Asia is increasing on a daily basis. According to researchers, the young and wealthy people loves fashion and, are therefore, the greatest purchasers of clothing. Thus, this provides an opportunity for Bosideng International Holdings Limited Ltd to exploit. Bosideng International Holdings Limited Ltd has plans to expand its market share by investing in Southeast Asia. With this regard, Bosideng International Holdings Limited Ltd will be able to enhance its competitiveness in the Southeast Asia market by concentrating on market niches that the rival firms overlook. C) Threats Rival firms conducts massive adverting campaigns, and this can prevent Bosideng International Holdings Limited Ltd from attaining its goals in the Southeast Asia market. The other threat it faces is Bosideng International Holdings Ltd financial constraints. In order to curve a niche in the Southeast Asia market, the Bosideng International Holdings Ltd has to spend considerable amount of money. The SWOT Matrix Strengths: • its premium brand is recognized in the industry •a narrow product line Opportunities: • international investments • An increase in the Southeast Asia population and hence a ready market Weaknesses: •stiff competition •lack of resources Threats: • Massive adverting campaigns by the competitors • Financial constraints D) Matching, converting, minimizing and avoiding strategies Bosideng International Holdings Limited Ltd should come up with the strategy of cutting costs further than the already implemented strategy of downsizing and outsourcing. The adopted strategy should be able to give the company more profits by increasing sales or reducing operation costs. Disposing of some businesses would be a favorable strategy for Bosideng International Holdings Limited Ltd. On the international front, the airline could look into the possibility of setting up more permanent mergers. This would assist the company to command a large market share as it also takes advantage of the market share belonging to its partners. This promotes its chances of survival in the financial crisis because of shared risk with partners. In addition, the company should consider the robustness for its products. 3) E-Marketing Strategic Planning A) Segmentation In order to succeed, every business must answer the question ‘Who are our customers and how will we appeal to them’. The main advantage of market segmentation is that, it enables the marketer to have better control over the market. Fleisher & Bensoussan (2007) argued that, segmentation gives the marketer the opportunity of being able to satisfy the varying needs of buyers. The secondary role of segmentation is to make it possible for the seller to know the response and reaction in each segment. With the segmentation, it is possible to compare the performance of two or more segments, and in turn, identify the segment that requires more attention than the other (Kotler 2004). Bosideng International Holdings Limited Ltd deal with the production of children and women casual wear. Bosideng International Holdings Limited Ltd understands that women and children spend a considerable amount of their income purchasing clothes. Bosideng International Holdings Limited Ltd also stocks few male clothes. According to the company, male clothes are expensive, and therefore, stocking a few male clothes can be gainful to the firm. B) Targeting Bosideng International Holdings Limited understands that different age groups have diverse needs and interests. As such, the company will classify its target market into three that is, young people, adults and industrial market segments. Bosideng International Holdings Limited will develop new brands to appeal to young people between the age of 14 and 29. According to Foxall (2002), young individual provides the greatest opportunity for markets because of their explorative nature, influence and minimal resistance to new products. Notably, the youth has a strong association with fashion styles, and wooing them will enhance the company’s competitiveness in the market. The fashion cognizant young individuals are usually early adaptors, and buy clothing and accessories regularly. Therefore, the company intends at strengthening the brand image through promotion. To tap this market, the company has adequate plans of utilizing TV and the social media, as the strategic advertising tools. Adults also provide a wider audience because of their immense purchasing powers. Unlike young transitional individuals, adults have additional buying power and influence to other adults. In addition, this market segment influences the family purchasing decisions. As such, they are expected to provide the basic needs including clothing. The industrial segment is composed of manufacturing firms. Southeast Asia industrial protective clothing is growing at a higher rate because of the region’s high economic growth prospects. This growth has also been boosted by the frequent revisions in industry standards. The industrial protective clothing segment purchases protective clothing at large scale, and therefore; it would be ideal to increase production to satisfy the clients’ demands. Bosideng International Holdings Limited will ensure a constant supply of quality and trendy protective clothing. C) Differentiation Recent studies indicate that clients normally purchase clothing and apparel products based on their availability as well as attractiveness of the clothes. Therefore, the size and color are differentiating factors for clothing and apparel products in the market. D) Positioning Market can be realized through branding of the products, campaigns and promotions. Bosideng International Holdings Limited should also consider consistency in the design of its products (McKinley, 2002). 4) E-Marketing goals and objectives i) To be achieve a competitive edge in clothing industry in Southeast Asia; ii) To be the leader in quality, health, safety and environment in Southeast Asia clothing industry. iii) To maintain a steady supply of clothing all through the year. 5) E-Marketing strategies In marketing its goods, Bosideng International Holdings Limited will employ various strategies to make sure many customers have access to them. One of the ways will be to market these goods directly as a company. Secondly, Bosideng International Holdings Limited hopes to sell the clothes to retailers at a wholesale price who will then sell it to their customers. The other method the company hopes to employ is through distributors and agents. These will be useful because they will only be selling what the company has supplied to them. In case the stock decreases, they will be required to place orders to the head office that is based in Shanghai. The company will also have its website where clients can log into and access the various products Bosideng International Holdings Limited is offering. There will also be a platform where clients can place an order and pay for the goods online. The company will then make an initiative of delivering these goods to the customers throughout Southeast Asia. In marketing the products, Bosideng International Holdings Limited will observe the following guidelines in order to have a stake in the market:- I. Product Bosideng International Holdings Limited shall sell various types of clothing ranging from blue jeans, dress shirts, men’s casual wear, dresses, ladies casual wear, polo shirts, ties and hoodies. The company will strive to offer unique clothing products to the Southeast Asia clients so that it can maintain them while attracting new ones. II. Pricing It is expected that the quality of the products will not be compromised with the reduced prices. Bosideng International Holdings Limited will at all times try and keep with the economic trends of the day. This will make sure the consumers who are the main drivers of the business are not exploited by any means. Bosideng International Holdings Limited will also communicate this with the customers to make sure they are aware of the existing prices. This will not only build their confidence in the company, but also create a long term relationship with them (Lacobucci, 2001). III. Distribution Bosideng International Holdings Limited will develop a website that will form the main distribution channel. The website will also provide a platform where customers can place an order and pay for their products. This will reduce instances of carrying bulk cash to purchase goods. According to Koslowki (2004), in the contemporary world, e commerce is fast gaining momentum and more people have found it to be a reliable mode of making transactions. He has observed that financial institutions have played a critical role in making e commerce a success. Therefore, the company will try and encourage the use of e commerce to make payment from customers easier and secure. IV. Marketing communication In the face of globalization, organizations have moved to integrate their marketing actions with the public, popularly known as Integrated Marketing Communications (IMC) (Baker & Angelopulo, 2005). In order to achieve a synergistic communications strategy, firms throughout the world have integrated their traditional marketing communications aspects such as sales promotion and advertising with new marketing channels. Bosideng International Holdings Limited has adopted various relationship marketing concepts in order to enhance customer loyalty, as well as retention. For instance, the company has a web site that enables it to reach a wider clients’ base. The New Digital era has enabled people to be more creative thus resulting to a growth in client traffic, as well as new business partnerships. Research shows that the adoption of internet technologies has the ability to enhance marketing practices (Pattanayak, 2005). V. Relationship management In today’s highly competitive business world, organizations have understood the importance of satisfying their customers as customer retention ensures constant demand for goods and services (Ferrell & Pride, 2014). On its part, Bosideng International Holdings Limited shall conduct a research on customer preferences and behavior, and enhance the clothing and apparel products in search of a competitive edge (Shane, 2008). Conclusion The proposed Bosideng International Holdings Limited’ E-marketing plan has been subjected to the most thorough analysis, and it can be said that Bosideng International Holdings Ltd can thrive in Southeast Asia. From the above analysis, it is obvious that Bosideng International Holdings Ltd will attain and maintain a competitive edge in the Southeast Asia. References Baker, R, & Angelopulo, G.C. 2005. Integrated Organisational Communication. South Africa: Juta and Company Ltd. Collins, D. J, et.al. 1999. Harvard Business Review on Corporate Strategy. Harvard: Harvard Business Press. Ferrell, O.C & Pride, W. 2014. Foundations of Marketing. London: Cengage Learning. Fleisher, C. & Bensoussan, B. 2007. Business and Competitive Analysis Methods: Effective Application of New and Classic Methods. New Jersey: FT Press. Foxall, G.R. 2002. Consumer Behaviour Analysis: The behavioural basis of consumer choice, Volume 1. London: Taylor & Francis. Griffin, R. 2011. Fundamentals of Management.Ed: 6. London: Cengage Learning. Kachru, U. 2005. Strategic management: Concepts and Cases. India: New Delhi. Khalil T. M, El-Nawawi, M & Holesberger, M 2005. Global Strategy: Creating and Sustaining Advantage across Borders: Creating and Sustaining Advantage across Borders. Oxford: Oxford University Press. Kong, C. (2005).Relationship marketing in a Globalised World: Are You Ready? Kuala Lumpur: Utusan Publications. Koslowki, P 2004. Business Ethics and the Electronic Economy. Berlin: Springer. Kotler, P. 2004. Marketing Management (11 Ed.). New Delhi: Pearson Education Inco. Lacobucci, D. 2001. Kellogg on Marketing. New York: John Wiley & Sons. Lasalle, L.L. 2013. Southeast Asia’s Rising Logistics Market: Discovering the growing wealth of ASEAN economies. McKinley, M. 2002. Marketing Alignment: Breakthrough Strategies for Growth and Profitability. Massachusetts: Wheatmark, Inc., Pahl, N & Richter, A. 2009. SWOT Analysis. Munich: GRIN Verlag. Pattanayak, B. (2005). Human Resource Management. Ed: 3.New Delhi: PHI Learning Pvt. Ltd. Paul, J 2008. International Business. New Delhi: PHI Learning Pvt. Ltd. Shane, S. 2008.The Handbook of Technology and Innovation Management. Hoboken: John Wiley & Sons. Vitullo-Martin, J. 2002. The Global Marketing Environment. The Wall Street Journal, 7-9. Yue, C. S & Lim, J.J 2002. Information Technology in Asia: New Development. Singapore: Institute of Southeast Asian Studies. Read More