Situation Analysis of Janes Tattoo Company - Case Study Example

Marketing: Situation Analysis Name Instructor Course Date Executive Summary The movement from Bondi to Canberra might scare away tattoo clients and therefore there is need for development of a marketing plan. The marketing plan will enable Jane Pinch to capture potential clients and build good reputation for the company as well as provision of the best tattoo services. Capitalizing on the huge number of people and amount of cash spent annually for tattoos, the company will attract a sizable fraction of the population in the region. The challenge is on creation of a robust and commanding first mover advantage in the industry in this region. The plan emphasizes on practices that are relevant in extension of the tattooing standards. The marketing strategies plan is enhanced television adverts, fashion runaway, talented artists and chain of stores. Introduction The entry of Jane’s Tattoo Company into the market provides the expertise with the opportunity to utilize the intellectual and industrious knowhow in taking the industry into another level. The industry overview, market analysis, customer analysis and the competitor’s analysis in the company are illustrated. In addition, there is proper analysis of strengths, weaknesses, opportunities and threats analysis from the external environment influencing the profitability and functionability of the company are illustrated. Market segmentation analysis and the strategies of the entry to the market involves the consideration of the market size, purchasing power and the potential market available and future prospective of expansion. Company overview Jane Pinch Tattoo Company is owned by Jane, an artist committed in ensuring the best quality of tattoo to the population. The company is situated in Canberra in Australia southeast coast surrounded by relevant landmarks such Australian War Museum, parliament, National gallery and lakeshore. Jane is a renowned tattoo artist ad with the help of other experts in the industry will build a reputable company. The company enjoys the service of thirty artists in various departments and knowledgeable in various areas. The company aims at achieving 10% and recording 5% profit increase after three years. The security of the right of ownership and valid licensing from the government and the improvising of the locally available material will assist in product of cheap and affordable products and services. The strategy will help in providing what the clients need and value addition to achieve competitive edge. Industry overview Types of products include the custom tattoos, tattoo fonts, tattoo designs, tattoo translators, piercing and make-up for the people from all walks in life. The target clients are the people different age brackets depending on the need of the client. The tattoos will include the permanent inked on the skin as well as temporary and informed advice for clients to avoid regrets in future. The location of the company exposes it to variety of potential clients a good indicator of company growth. Business Environment Political Environment Through the legal advisory taskforce, the company identified the importance of remitting the taxies to the authority in order to have a smooth running in the marketing of the tattoo, services and products[Fer14]. This is with compliance to the legal and political issues that influence the performance and existence of the venture. The company has secured registered copyright that protects the products from duplication and exploitation from other firms willing to enter into the venture. Socio-cultural Environment The social features that are of important in the success of the company are the unraveling of the information about the stagnation of the similar styles, size and designs of tattoos over a period. People in the society are going for the tattoos that are appealing especially when presented in the face of the world by the person wearing them[Kot121]. This has a lot in helping the company analyze and predict the trend in the social set up and the preference of the customers in order to achieve high sales and profit margins. The company is in line with the growing urge of the customers to look the same in the society as well as the desire to stand out as unique and different from the rest in the society. The company is committed into meeting the expectations of the society while maintaining the profitability of the company. Technological Environment Technological advancement in the earlier perceived remote areas creates an opportunity for the company to alter the frequency and composition of the entire population at large. The company with partnership with technologic expertise is in the race to create interactive channels online to reach more people in the market and in turn create awareness about the existence of all size, shape and designs from the Tattoo Company. Legal Environment The company will acquire patent security for the business idea and products from other players in the industry[Kaz11]. The property right for the company will be secured through the registration of trademarks for the various future and present ideas. For the online market, the company acquired copyright policy for smooth running of the marketing practices. Economic trend The changing and integrating cultures in the globalized market provide the economic improvement with increased purchasing power due to the interest to identify with the rest of the world[Pub10]. Besides, the company has unfolded the existence of the unimagined market in the remote areas with the technological advancement proposed by the government in marking the nation a 24 hours economy. In the location where the company situated the sales is boosted by the fact that the customers are aware of the products and are satisfied with the design. Competitive Analysis The company aims at maintaining the formality in the profitability scales and increases the advertising space on the brand and design to create a competitive edge. Furthermore, the company is dedicated to see to it that there is decrease in the costs of production, distribution and therefore low pricing. Budget The 70% of the start-up finance primarily will be obtained from the principal agent of the company, 30% borrowing from moneylenders that will include the launching fund. The company aimed at reaching more tattoo clients in the region through reinvesting the profit as a strategy in the marketing of the products. The start-up fund for the expenses is estimated to amount to about $9,300 while the asset start-up fund amounts to $ 17,400. Products and Brand The Company is dedicated to meeting the demands of the customers and ensuring that there is additional of essential features in the values of the products to make them appealing to the customers[And14]. Value addition and differentiation as well as the finest design will propel the company into the achievement of the competitive advantage over the other firms. The adverts and online marketing strategies for the products will enhance the reaching of the largest market share. Customer Analysis The company has developed mechanisms to keep the steadily increasing customers in the truck while capturing and identifying the new prospective market[Sim10]. In this context, the company concentrates on the fact that the centered at the preference and taste and the quality and durability of the products. The changing technological advancement can help the company into reaching out for the clients through the social media and other platforms. The company eyes the able technology for e marketing and the market is promising that there is a good prospective of increase of the online customers. Partnership with technological firms will help close the geographical distance and therefore reach all demographic populations. The large portion of the customers is located in the colleges and the outskirt of the city. Market segmentation Single market approach is the best for the tattoo company though other outlet stores will be established will be under the large target market[Gil10]. The information about the potential customers will be collected in the bid to strengthen the diversity of the products and the wider market securing procedures. The target market of the tattoo products and services are the youths and adults in the age bracket of ranging from 18-40. The identification of the market has been facilitated by the demographic information about the population of the target area. The company strived to provide products at price affordable to the customers while maintaining the quality to achieve competitive advantage over the worthy competitors in the town and in the global market. The purchase history, lifestyle and political stability ensure the success of the business given the location is strategically located[McD10]. The fact remain the venture is characterized with entry barriers and there existence of a larger competitors. However, despite the competition in the market the company managed to grow in the annual analysis reported within the first year. The company has made consultations with the outlets in across the market in making the distribution of the products affordable and easier as well as faster. Positioning and Growth The products are positioned in the most attractive mode in the bid to capture the attention of the customers providing the best attributes for the creation of competitive edge[Vas12]. The improvement of the products and the injection of new products after a period to win the loyalty and customer satisfaction help to accumulate and maintain customers. The company aims at conducting regular research on the current and future trend in the market. Market mix 4Ps Jane Tattoo Company Competitors Product Puts effort to study new products and ready to inject new designs Compete in designing unique products Price Research on factors influencing prices such as the income, political environment Waits for the best season to make sales Promotion Promotion using the proper channel of customer communication including trade fairs, public promotion and adverts Depends on the customers awareness Place Convenient location of stores for easy distribution and dissemination of services and proper ways of finding products More stores offering stiff competition Competitors Analysis There are a huge number of tattoo companies in the region offering a competitive environment. However, Jane Company is committed into employment of the skilled labor force and experts to produce unique brands, products and services. The name of the products and the security from copyright will enable the company to beat others in the building of loyal customers. S.W.O.T Analysis The company is in the position of realizing the profit margin within the designated timeline. However, it is important to highlight the successes made by the company in the year within which the analysis of the strengths and the weaknesses help in brainstorming in the bid to provide a long-lasting solution regarding the improvement and the sustenance of domination in the market[Wei16]. Below is the description of the strengths and the weaknesses, threats as well as the opportunities present for the company. S.W.O.T Analysis Strengths The company enjoys wide range of strengths from the expertise on flexibility in making custom tattoos, unique products, injection of new products and value addition on brands. In addition, the company capitalizes on the ability to open outlets across the region. Weaknesses Stiff competition from the emerging market in the local and international scenes, technological advancement delays the mass production and marketing, globalization include the weakness influencing the functionability of the company. Opportunities There are various opportunities to be exploited by the company ranging from the injection of new and unique designs of tattoos, well laid promotion strategies, and market globalization. Threats Threats include the competition, the shrinking of the market share, duplication of the products and a few financial institutions. References Fer14: , (Ferrell & Ferrell, 2014), Kot121: , (Kothari, 2012), Kaz11: , (Kazmi, 2011), Pub10: , (Publishing & Turner, 2010), And14: , (Anderson, 2014), Sim10: , (Simkin & Dibb, 2010), Gil10: , (Gilbert, 2010), McD10: , (McDaniel, Hair, & Lamb, 2010), Vas12: , (Vashisht, 2012), Wei16: , (Weinstein & Winston, 2016), Read More