Mktg 2002 : Global Marketing Assessment Answers
Question:
This assessment requires you to develop the remaining sections of a comprehensive international marketing plan for your selected organisation in the new country target market. The final document should include your work from Assessments 1 and 2, revised as necessary, as the first parts of the overall plan.
The aim is to recommend a marketing mix strategy that will enable the organisation to achieve its objectives in the new market. This includes:
- objectives for the first 12 months of your plan;
- strategic recommendations for the 4Ps (or 7Ps), including the extent of standardisation vs. adaptation with respect to domestic or other international marketing plans already in place; and
- plans for managing, measuring and controlling the international marketing effort.
Answer:
Introduction:
The report is prepared to discuss about the global marketing plan for the business organization named 2XU in Australia in the new targeted market of Singapore. The aim of the report is to conduct a marketing mix strategy, which can allow the organization to accomplish its business goals and objectives, furthermore make strategic recommendations for ensuring successful global marketing and international business management with ease and effectiveness. The topic will illustrate about the components of a global competitive marketplace and evaluate the global marketing opportunities to ensure that the best marketing efforts are put forward to achieve the business goals (De Mooij, 2018). The market analysis will be done with the assessment of various frameworks and also by conducting the competitive analysis of 2XU to sustain in the competitive business environment.
2XU Pty. Ltd. is one of the major multinational footwear companies in Australia that has been specialized in the designing, development, production and selling of good quality sporting apparels like cycle, compression clothing, running shoes, general fitness wear and open weather swimming clothes. The products and services are of good qualities, which have fulfilled the needs and requirements of the customers and kept them satisfied as a whole (2xu.com.au, 2018).
Business environment
The tri-athlete named Jamie Hunt launched the organization 2XU, also known as Two Times You due to his passion for sports and healthy lifestyles managed through delivery of performance fabrics. The company has partnered with Australian retail Guru and marketing specialist named Clyde Davenport and Aidan Clarke respectively to manage business operations fruitfully. The apparel and garments delivered by 2XU are considered as effective based on the independent and scientific researches for delivering the best of physiological benefits to the athletes who possess enough skills and abilities. The company has gone beyond what they want to achieve and enabled people to train harder with the help of these clothing accessories and recovered at a faster rate as well (Gillespie & Riddle, 2015). 2XU provides power, weight and flexibility along with durability and comfort while the graduated compression makes it more comfortable for the individuals to wear the sports accessories and carry on with their regular activities with much ease and efficiency. For global marketing and international business management, the objective in the new country target market is to increase the brand awareness for 2XU and draw more clients for increasing the profit level (Burns, Bush & Sinha, 2014).
In order to become successful within the international marketplace, 2XU must identify the niche and own that niche to deliver high performance sports and at the same time, focus on fashion and style. The focus of the company is on the elite sports within the global active wear market and it has been assumed that the project will reach $300 billion in the next few years till 2024. The Company aims to select Singapore target market because it is supported by the increased demands for the high quality and premium sportswear that are fashionable as well as functional (Keegan & Green, 2015). For managing the global business environment, it is important for 2XU to assess the external forces that can affect the business such as the political, economic, social, technological, legal and environmental factors. The Singaporean market conditions are improved with the export trade activities involving the trade of apparels, textiles, clothing, and other industries.
Political
The Government laws, legislations and rules have facilitated the development of e-commerce technology, which can be beneficial for 2XU to manage its online business globally with convenience. Singapore possesses lesser knowledge and skills to implement e-commerce technology for the protection of intellectual rights and management of tax (Alon et al., 2016). The lack of proper rules and regulations to improve the privacy, management of digital signatures and protection of consumers’ rights might create complexities for 2XU to manage global business properly sometimes.
Economic
The GDP growth rate is significant and has even increased during the past few years and few of the aspects associated with it include good rate of savings, higher business export activities, and sufficient skilled and knowledgeable labor along with growth potential. The higher rate of inflation and high price of properties could also affect the business growth and create issues for making the products and services of 2XU available at reasonable prices in Singapore. The economic growth and development ensure more value addition and contributing to the society, which should be possible by managing sustainable measures and fulfilling the corporate social responsibilities properly too (Griffith & Hoppner, 2013). This could increase the consumers’ buying behaviors and influence more customers to buy the products of 2XU while managing global business in Singapore.
Social
The growth in population and distribution of age fluctuates, rather changes, due to which, the cultural trends and social behaviors are also affected, which can further impact on the decision-making process. The consumers’ lifestyles, education level, income and culture are other social factors that influence the consumers’ behaviors. The literacy rate, being astonishingly high in Singapore enables the clients from the market segments to access internet and most of them spend lot of time to buy products from the online website (Posner, Williams & Posner, 2015).
Technological
The B2C industry in Singapore does not possess a proper online payment system, which is safe and the issue is complex with the customers being high on long term orientation and uncertainty avoidance. The absence of online credit card system has further increased the low use and penetration and so 2XU needs to manage the online website properly with implementation of information technology to maintain a safe and secure online payment system for creating convenience for the customers.
Legal
The legal processes include abiding by the laws, rules and regulations implemented by Government of Singapore and ensuring that the export activities are done properly. 2XU should also manage proper licenses and ensure that the establishment of business is done effectively considering no violation of intellectual rights and properties (Kolk, 2014).
Environmental
The environmental factors are to be considered by protecting the environment and ensuring that the business processes during the manufacturing and production does not create any negative environmental impact.
Segmentation, targeting and positioning
Demographic- The market segmentation is done by 2XU for selecting the groups of people who are more interested to the Workout and compression clothing items. One of the most effective methods used to segment the market is by assessing the demographic variables like age, sex, race, income level, educational status and household conditions of people in the Singaporean market (Agudo-Peregrina, Chaparro-Peláez & Hernández-García, 2018). The market segmentation of 2XU targets the male and female athletes and also those people who are concerned about health and fitness and thus the age range is between 15 to 40 years in Singapore. The targeted market based on the demographic variables is the active people who like to remain fit and healthy considering the use of these high-quality active wear and compression clothing.
Behavioral- The purchasing behaviors of clients change from time to time and thus, it is important for 2XU to evaluate their behaviors and focus on behavioral variable such as the people who like the athletic feel and fitness. The Triathlon, workout, compression-based clothing items and apparels offer better technology and good quality fabrics that can make the customers experience a sports or athletic feel after making purchases from 2XU in Singapore (Hamka et al., 2014). The company’s tie up and brand endorsements by sports persons and athletes have further eased targeting the segments consisting of individuals who prefer sports activities.
Psychographic- The mission statement of 2XU is to multiply human performance through sports activities managed easily by using the active and compression wears. The company considers itself as one of the most advanced apparel company and thus the market is segmented according to the lifestyles and behaviors of consumers in Singapore including their social class and behaviors (Haustein, Thorhauge & Cherchi, 2018). The social media campaigns brought by the company along with the choices of their behaviors and expectations are considered while segmenting the market and positioning the products and service wisely in Singapore.
Geographic- The geographical variables are nations, cities and population density, based on which, the market is segmented (Brito et al., 2015). The Singaporean market has been closely monitored and the amount of population who are active in purchases of compression and active wears. The market size has also allowed 2XU to supply sufficient goods in the market for meeting the demands and ensuring accomplishment of business goals and objectives with ease.
Objectives for the first 12 months of global marketing plan
|
Activities |
Objective |
Time frame |
|
Identifying the target market |
To make an entry into the foreign market |
January 1st to Feb 15 |
|
Launch the new product, i.e., the active and compression wears |
To make the products and services available in the global market |
Feb 16 to April 30 |
|
Targeting the customers and making them aware of the products |
To manage promotional activities through advertising, social media marketing and other promotional activities |
May 1 to June 30 |
|
Improve stakeholder relationships |
To gain proper support and enable partnership working to enter the market easily |
July 1 to September 15 |
|
Enhance customer relationships |
To adopt the global culture and provide customers’ services |
Sep 16 to October 31st |
|
Increase market share |
To drive sales performance and generate higher revenue in business |
November 1 to December 31st |
Market analysis
To conduct the market analysis, the objective or purpose of the market study is important, identification of targeted market segments, collecting data and information for market analysis, analysis of information and implementing the analysis outcomes into work. The SWOT analysis should be done for determining the strengths, weaknesses, opportunities and threats faced by the organization (Solomon et al., 2014).
|
Strengths · Strong brand name and image · Extensive market positioning and market segmentation strategies · Higher revenue generation · More customers and larger customer base · Global expansion in Singapore, China, and other countries. |
Weaknesses · Lack of proper B2C structure · Lack of variety in products and services · Innovation is not done much due to which, the products remain similar (Kasemsap, 2018) · Fluctuations in rates of interest and taxes often create difficulty ins setting the right prices and manage expansion globally |
|
Opportunities · The global business expansion in Singapore could help in creating a large custom base and enhance the profit level. · More scopes for succeeding globally and position the products properly in different market segments (Kasemsap, 2016). · Formation of a safe and secure online payment system and manage online transactions easily too.
|
Threats · Lack of safety and security in making payments · Threats of competitors like Reebok, Nike, Adidas, and other such brands. |
Marketing mix strategy
The strategic recommendations are to be made based on the marketing mix strategy done for identifying the products, prices, place and promotions done by the company.
Product
The products are active wear, sportswear, compression shorts, cycle jersey, crew neck tee, jackets and other sports clothing and accessories too. The products and services are mainly targeted to the market segments in China to ensure that they can improve their performance and abilities through the management of athletic sportswear brand and gain higher satisfaction level too (Zimmerman & Blythe, 2013). The wide range of products in this marketing mix strategy also includes apparel and accessories.
Price
Though the company aims to start global business properly, it is important to keep the prices of products consistent for ensuring that the targeted market segments are influenced and consumers are attracted in larger numbers. The market conditions are assessed to understand what prices should be set for influencing the consumer buying behaviors, furthermore create awareness among the customers. The targeted customers of 2XU are the middle class and upper-class segments of the society who have a high disposable income as well as the youngsters who are conscious about their health and fitness (Czinkota & Ronkainen, 2013). Since 2XU is trying to enter the market for the very first time, the products are priced attractively so that there is an increased level of footfalls in the store and generate higher business revenue.
Place
Being one of the major sportswear companies in Australia, the company has aimed to enter the new market segments in China by finding the right places from where the customers can access those. The company should start from the retail stores and then distribute the products in the different market segments of China with the backing of another private equity firm for targeting the premium market segments conveniently. The places include the channels for distribution such as the retail stores, online stores, whole sellers and direct sales too (Armstrong et al., 2015). The online distribution channel is another effective channel for distributing he products and make it available for the customers for ease access.
Promotions
The promotions include advertisements on televisions, newspapers, website ads and online promotions through the involvement of social media channels like Facebook, Instagram, Twitter and other such social media channels. The aggressive marketing is followed by celebrity endorsements such as Le Brown James, Kanye West and others, which have also enhanced the brand image and visibility. The improvement of brand identity along with the promotions of brand motto and tagline along with additional discounts and offers provided for the products and posted on the online website, could grab the attention of customers easily within the foreign market segments and raise their interest level to make purchases from 2XU, Australia (Lovelock & Patterson, 2015).
Competitive analysis
The competitors mainly act as threats to the company, due to which, the sales could deteriorate and thus it is essential for 2XU to select the right market entry options and implement the right international marketing strategy too. Few of the competitors could be Adidas, Reebok, Nike and other such companies. Though there are other competitors as well, still to become successful in the global marketplace, 2XU needs to evaluate their strengths and weaknesses related to the products and services as well (Su & Tong, 2015). Their weaknesses should be turned into strengths, which could further assist in ensuring that the business stays ahead of the competitors within the marketplace of Singapore.
The revenue generation for the competitors is dependent on the share of footwear market, which can be a major weakness. 2XU could overcome this barrier and introduce not only the footwear but also the active wear and other sports apparel to meet the varied needs of clients in different market segments. The excessive commercialization has made these products categorized alongside the regional players, which might also be a good thing for 2XU to bring something new and innovation for meeting the demands and expectations of customers and keep them satisfied (Afuberoh & Emmanuel, 2014). Moreover, the similar kinds of products provided by the competitors are bit costly when compared to 2XU, in spite of the quality and other features. Because of 2XU;’s low manufacturing and production cost along with high profit margin of sales, the company could implement the cost leadership strategy to reduce the costs of operations and ensure exploiting the production scale and focus on economies to deliver the standardized products along with superior customer service (van der Kamp, Lorentzen & Mattingly, 2017). This would create convenience for 2XU to sustain in the foreign competitive marketplace and establish a competitive advantage over its rivalries in business too.
Global marketing strategies
There are effective global marketing strategies that could be followed by 2XU to enter the new market in Singapore such as direct exporting, licensing, franchising, partnership working and purchasing an existing organization too. The direct exporting should allow the business to sell the products directly into the market and manage the resources properly by working closely with various agents and distributors in Singapore. The licensing could be another effective global marketing strategy while the franchising could enable the businesses organization named 2XU to transfer the business models into the markets and ensure creating a strong brand image and exposure for surviving in the competitive global marketplace. The partnership working could be another effective global marketing strategy that could be implemented by the organization to enter the foreign markets and create a strategic alliance for the manufacturing and production processes (Rahulan et al., 2015). This would allow the company to adopt the culture of the new country target market and manage acquisition of local market knowledge, skills and contacts to select the customers wisely and attract them for generating higher level of profit with ease and effectiveness (Manshahia & Das, 2014). Before developing plans for individual markets, a person must analyze the environment of the market which includes, competitors, industry, government actions among several other factors (Lim, Kim & Cheong, 2016). A person should also set detailed marketing objectives that includes factors like target market share, target sales, introduction of a new product, distribution goals, export, marketing goals of research, international plans of marketing, marketing personnel for hiring, training and motivation.
One of the most effective global marketing efforts could be the partnering with Singapore Athletic Association to manage the sponsorship deals with the importer of sports apparel and deliver the highest quality performance compression shorts and body clothing items. The direct selling should also be effective considering the fact that 2XU must focus on setting up stores in Singapore and manage proper availability of sports goods, clothing and accessories required to meet the expectations of customers and make them experience a healthy lifestyle along with fitness and revitalized energy to carry out work activities (2xu.com.au, 2018).
Measuring the marketing efforts
The measurement of marketing efforts is based on the revenue generated, sales achieved by making the products available in the new market segment in Singapore. The measurement of marketing efforts is done by analyzing different sales channel wise, product wise and customer wise considering the annual sales objectives (Feng, Morgan & Rego, 2015). The analysis of market share and market expense to sales along with analysis of financial aspects and stakeholders; attitudes are other ways or approaches to measure the efficiency of marketing efforts put by 2XU in Australia. The controlling of marketing efforts is done with the control of profitability, efficiency control and by strategic control.
Recommendations:
- It is recommended to segment the market properly for making the products and services available for the customers easily
- The brand positioning should be considered while making a market entry into the global marketplace and drive the profit level
- Managing sustainable measures and fulfilling the corporate social responsibilities is recommended as well for creating a positive mindset among the customers regarding the brand
- It is also recommended for 2XU to analyze the strengths and weaknesses of competitors and then implement the right marketing strategy globally
- Adoption of the local culture within the foreign marketplace is recommended as well
- The social media campaigns are recommended for creating more brand awareness and attract more customers for increasing the revenue generation capability
Conclusion:
For global marketing and international business management, the objective in the new country target market was to increase the brand awareness for 2XU and draw more clients to increase the sales and profit level. This should be possible through new product awareness that could meet the demands of clients in the foreign market and at the same time, create location awareness by setting up in the right places for easy accessibility by the customers. The global marketing strategy considered as beneficial for 2XU in Australia to create a market entry into Singapore could be the partnership working and direct selling as well. Considering the various market conditions, it could be understood that the company should assess the strengths and weaknesses of competitors and at the same time, conduct market analysis and implement the right global marketing strategies to sustain in the competitive business environment.
References:
2xu.com.au. (2018). Retrieved from https://www.2xu.com/au
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