Customers of Grandys, Tokyo Red Product - Research Paper Example

Report Contents Task one 3 Target market 3 Targeting strategy 3 Re-positioning 4 Strategic techniques 5 Task Two 7 Marketing mix 7 Recommendations 9 References 11 Task one Target market Gandys appeals to men, wom+en, and youth of the society. The company sales very trendy casual foot wares. Young men, women, school goers and collage goers are the main target market for Gandys. The organization with its trendy and stylish casual foot wares targets young people of the society. Prices of their products are very low. With low priced products Gandys targets low income people of the society. Young people living in small towns or suburban areas are target customers for the company. Gandys target markets are predominantly young trendy people always looking for trendy and stylish products. The company targets young fun loving men and women. It also focuses towards people who love to travel. Gandys has very young target market. Customers of Grandys are generally very simple and believe in hanging around here and there. The organization has very modern target market. Customers of Grandys want comfortable and stylish products from the company. Young informal people are main targets for the company. People who believe in low cost, stylish products generally associate themselves with the brand. Targeting strategy In 2013 Gandys did celebrity endorsement for their Tokyo Red product. Richard Branson founder of Virgin Atlantic and other staffs of the airline celebrated International Flip Flop day. All of them were wearing Tokyo Red. After this endorsement the product name was changed and new name of the product became Necker Red. The targeting strategy was very successful. Richard Branson is a very different business man. He is very much charismatic and informal in nature. Characteristics of the celebrity were very much suitable with the brand images of the company. People around the world have high respect for Richard Branson. Grandys intentionally selected him to influence large number of informal youth. Some customers do not like red colour. But celebrity like Richard Branson can easily break that mental barrier of customers. Over all the strategy was very successful and after that sale of the product increased a lot. The success of the strategy was very vast. Other products of the company also took benefit out of this celebrity endorsement strategy. Re-positioning Gandys Peacock Blue product can be repositioned with the help of a strategic collaboration with Serge Denimes. It is a London based fashion brand. It has very urban image in the market. Designs of the company are very creative and stylish. It will be a good combination of both creative rope style and urban design. It will create a refined image in the mind of urban customers. Customers will get all the product related information from both companies’ websites. Both Gandys and Serge Denimes are having very good reputation in the market. Gandys will use that reputation and expertise for re-positioning its Peacock Blue. It will attract young urban people significantly. Customers will be more excited about the product. People will feel that they are getting two dimensional advantages out of a single product. This collaboration will certainly change the image of the particular product. It will attract more and more customers towards the product. It is a very successful re-positioning strategy for the organization. It will help the organization to re-position the product as a true urban product (Ries, 2003). Strategic techniques BCG matrix (Source: OaShaughnessy, 1995) This matrix will help the organization to understand performance of its different products in terms of market growth and market share. The first dimension of the matrix is stars. Product belongs to this dimension has both high market share and high market growth. Original products are star products for the company. Products of Original product line generate large cash for the organization. It has high market share and high market growth rate. Original products are large cash making stars product for Gandys. Second dimension of the matrix is cash cow. Products belong to this dimension are having low market growth rates and high market shares. Printz products are cash cow for the company. These products give return from assets. Their rates of returns are greater than market growth. These products generate more cash for the organization than they use. Third dimension is Dogs. Product of this dimension has low market share and low market growth. Glitters products are suitable for this dimension. These products neither generate cash for the company nor consume cash of Gandys. Investments involved with this product line have very little potential. Question marks are the fourth and the final dimension of the matrix. Products from this dimension has low market share but high market growth rate. Serge 4 Gandys products are these kinds of products. These products are growing in a very fast pace. Products of this category are consuming huge cash. Low market share is the reason for which these products are not generating enough cash. These products are having very high potentials and can become stars for Gandys in future. Ansoff’s growth matrix (Source: Fitzroy and Herbert, 2007) The organization can go for market penetration technique with their existing products and markets. Lowest risk is there. The company can go for market development strategy also. Here Gandys will develop new market for its existing products. Medium risk is involved with this strategy. The organization can go for new product development. Here the company will introduce their new products into existing markets. Level of risk is medium. At last the organization can go for risky diversification strategy. Here both markets and products will be new for the company. It is the most risky strategy. Task Two Marketing mix Product Gandys has many product ranges for men, women and youth. Name of those product lines are Liberty, Serge 4 Gandys, studs, Glitters, Printz and Original. On the basis of colours and design those products are having different names. All products are available in six different sizes. In the Studs product line there are six different products. In the Serge 4 Gandys product line there are five different products. In Printz product line numbers of products are 12. In Original product line numbers of products are 14. In Glitters there are 2 different products. Liberty product line is having only one product. Product range of the company is very vast. Products are available in different colours. The organization has total 40 products. These 40products are divided into six different product lines. Place Place is a very important part of Gandys marketing mix. The organization has chosen urban areas and different cities for their products. Products of the company are designed on the basis of urban customer’s choice. Generally urban people are very trendy in nature so the Gandys has chosen different cities and towns as places for their marketing mix. The organization has launched their products intentionally to different cities and towns because it will increase the chances of selling more and more products into urban markets. The organization has huge young and stylish urban customer base. Keeping that customer base in mind the organization always has chosen urban areas in compare to rural or countryside. The organization offers worldwide shipping. Place plays an important role for any marketing mix. Here the company has placed their all products very professionally. Products of the organization are very attractive for young and fast people. Urban life is very fast. So the organization has suitably placed their products in to different urban markets. Gandys targeted customers are city based so the organization has placed their different products into different towns and urban areas. Price Price is also a very important part of any marketing mix. In case of Gandys it is same. Pricing strategy of the organization is very simple and well within the reach of common people. Highest price range is 30-40 pounds. Medium price range is 20-30 pounds. Lowest price range is 10-20 pounds. Pricing strategy of the company is very suitable with its targeted customers. It is very difficult for students and young people to spent lots of money. Gandys has recognised this matter very well and created such pricing strategy for their products. This pricing strategy will attract lots of students and young men and women. Profit margin may be low but number of sales will be high. It will give the organization economy of scale. Young and trendy customers always prefer stylish products in exchange of low prices. The organization has designed their pricing strategy according to that. Pricing strategy of the company is very suitable and compatible with its customer base. Promotion Promotion is also a very important part of any marketing mix. Gandys has managed this part very well. Gandys has come up with celebrity endorsement where Richard Branson has promoted company’s product. It has created great image for the organization in the mind of young informal customers. Endorsement done by Richard Branson has made the brand more famous among young people and students. The organization has promoted itself with the help of different corporate social responsibilities (Chris, 2009). The company has donated significantly for orphans. Gandys has come up with new concept of brand ambassadors where common people are playing the role of company’s brand ambassadors. The organization has used different social networking sites for their product promotion purposes. Young people are very familiar with different social networking sites. Promotion through different social networking sites is also a very important promotional strategy for the company. Large number of young people will be attracted with this strategy. It will take very less time for the organization to reach towards its customers. The organization has featured in different national news papers, news channels, T.V. shows and magazines. Over all promotional strategy is very suitable and effective for the company (Douglas and Hubert, 2010). Recommendations Modern business is ever changing. Change is the only constant thing in the world. It is good for the company to change according to the situation. The organization has to be more and more pro active in nature. It must review its each and every strategy after regular interval of time. The organization must be very creative and innovative for the achievement of sustainable market growth. There is no short cut for the company. At the same time organization must be very much aware with all social aspects and legalities. It is very important for Gandys to be ahead of all competitions. The organization can go for different new developing markets in the world. The organization must stick to its basics. Huge potential markets are there in India and China. Gandys can invest more in research and developments. The company has to come up with more innovative promotional activities. References Chris, A. M. 2009. Corporate Social Responsibility: A Case Study Approach (Google eBook). London: Edward Elgar Publishing. Douglas, B. and Hubert, G. 2010. Market Response and Marketing Mix Models: Trends and Research Opportunities. New York: Now Publishers Inc. Fitzroy, P. and Herbert, J. M. 2007. Strategic Management: Creating Value in a Turbulent World. New York: John Wiley & Sons. OaShaughnessy, J. 1995. Competitive Marketing: A Strategic Approach. New York: Routledge. Ries, A. 2003. Positioning: The Battle For Your Mind. New Delhi: Tata McGraw-Hill Education. Read More