The primary purpose of the paper is to evaluate a business plan of the contemporary apparel brand that is going to start their business in the market of Australia. For determining these business plan, a situation analysis by strengths, weakness, opportunities, and threats are provided that will help the firm to do better in their business to grab the customers attention towards their brand. Furthermore, the paper will also objectives as well as STP analysis of the firm in concerning the current market trend. In other words, the marketing mix strategy in concerning 7P’s and implementation strategy will also discuss in this context. Moreover, the paper will also provide the evaluation metrics and control of this brand over their business and also on their consumer base respectively.
|
Strengths |
Weakness |
|
· Clothes are considered to be of high importance and collectors’ items · Stylish and contemporary types of all apparel, as well as accessories, are displayed by the firm · The fashion designers have left their imprints on every item of their apparel products · A brand has enhanced their values in the market with their innovation of formal dresses for women especially · The inspiration for both the store and online services make the brand a vintage feel which thereby makes it popular in the elite class · Presence of a diversified set of apparel products |
· High prices of the apparel products and limited brand recall · Limited company resources as well as brand visibility all over the nation as compared to the other popular apparel brand · Low market share in comparison to the other apparel brands in the market |
|
Opportunities |
Threats |
|
· Online e-commerce market and offline store both help the firm to gain a large amount of importance · Innovations of both products and quality · Expansion of their business in the emerging market · The new group of designers is always designing clothes according to the customers’ needs and also with the changing fashion · Takeover and acquisition with other apparel companies in the market |
· Huge competition from other apparel brands · Customers’ taste regarding clothes are changed enormously with time · Exchange rate fluctuations and economic slowdown affects the brand growth · External changes like government norms, taxes, politics and so on |
It is seen that this apparel made from this brand are both stylish and formal products. Along with that they also manufacture matching accessories with dresses for the women. The fashion designers made innovative products and placed their imprints on every product and this will increase the brand growth in the market (Nurcahyo, Akbar, and Gabriel, 2018). In other words, they introduce both online market and offline store which will help them to gain a high amount of importance from the customers. Also, their main products are to manufacture formal dresses for women which will create huge significance of this brand in the market. Besides this, they continuously innovated their products as per the customers’ demands, but sometimes they failed to manufacture clothes according to the market trend. It is noticed that the products price are high which will limit their brand recall in coming days and also it will decrease their market share in comparison to the other apparel brands in the market (Hasan, 2016). In other words, huge competition, economic slowdown as well as exchange rate fluctuations affected their business growth in the market. To overcome this weakness and threats the company has to innovate new strategy that will help them to overcome these types of issue in coming days.
The main objectives of this contemporary apparel brand in Australia are as follows:
The Australian people especially the women are mainly concentrated to purchase fashion as well as formal products and thereby it will help this contemporary apparel brand to enhance their customer base in the market. The various types of market segments used by this contemporary apparel brand are as follows:
Gender-related segments: The contemporary apparel brand mainly manufactures women attire along with the accessories needed for the particular attire. Their clothing or apparel includes both designer and formal attire for the women in this country (Cortez, Tu, Van Anh, Ng, and Vegafria, 2014). The apparel items in both offline store and online e-commerce market are usually manufactured according to different seasons.
Age-related segments: Age is considered an important segment for the clothing business, and it helps the firm to determine their buying audiences. It is noticed that in Australia women in the ages between 24-55 years spend about 35 billion in clothes every year (Wu, and Tso, 2018). Therefore, this contemporary apparel brand makes products by these age range of women.
Geographic segments: Both the retailers and marketers know about in which way and in which location they will sell the product that provides the benefits in their business growth. For this reason, the firm selected those market where they noticed the women attraction over fashion, and formal dresses are more in comparison to others (Gunasekara, and Gomez, 2018). In other words, they have also introduced the online e-commerce market so that they can easily attract huge numbers of customers towards their brand.
Behavior-related segments: According to the current trend, women’s choices in apparel mainly based on their behavior and thus keeping this on a mind, contemporary apparel brand makes a product as per the market needs (Oh, Han, Nah, and Kwon, 2016). For every fashion item, different looks are provided by this company which thereby satisfy the demands of women according to their behavior style.
Lifestyle segmentation: Lifestyle represents another market segment of this firm that represents apparel products according to the lifestyle of every woman (Kunkel, Funk, and Lock, 2017). Keeping this in mind the firm presents products starting from low range to high range, and with this strategy, they will grab the more significant number of customer attention towards their brand.
The contemporary apparel brand company mainly focuses on selling their products on two distinct group of women, and they are:
Women ages range in between 17-25 years: It is noticed that in the current trend mainly the youth drives the market and thus this contemporary apparel brand chose this age range group as the target market (Eastman, 2017). In the present day, youth have less amount of money in comparison to the older one and keeping this in mind the firm manufactures apparel product at low cost in comparison to the price of older one’s apparel products. In other words, they manufacture accessories matching to every apparel which is also at low rates compared to the other age group.
Women ages range in between 26-55 years: This age range is considered as the core group for selling this apparel product in Australia. Hence this age group is also selected for the second target market for this apparel brand (Riana, 2017). It is seen that attracting the women of this age group is quite harder in comparison to the youth and thus the firm introduces innovated promotion strategy and manufacture products according to their needs so that they can easily grab the attention of this age group people.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|||
|
Potential consumers |
Growth |
CAGR |
|||||
|
Women ages 17-25 |
20% |
600,000 |
720,000 |
864,000 |
103,6800 |
124,4160 |
20.00% |
|
Women ages 26-55 |
15% |
500,000 |
575,000 |
661,250 |
760,437 |
874,503 |
15% |
|
Others |
0% |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total |
17.85 % |
1,100,000 |
1,295,000 |
1,525,250 |
1,797,237 |
2,118,663 |
17.85% |
Table 1: Marketing Analysis of the contemporary apparel brand
Every apparel brand enhances their business growth with a careful positioning strategy because it is noted that positioning is considered as the dynamic approach that provides an idea about the consumer behavior, ever-changing market needs and content consumption (Wang, Pelton, and Hsu, 2018). To enhance their business growth the firm use positioning strategy that provides the overlook of another apparel brand in the market. By knowing the range of products, diversity, price, and quality of each products of other apparel brand in the market the firm can easily make their innovative products which can quickly help the consumer to distinguish their product in comparison to the other firms in the market (Kozlowski, Searcy, and Bardecki, 2015).
The marketing mix of this contemporary apparel brand are as follows:
Contemporary apparel brand is considered as the classy brand because its products are mainly made for upper and middle-class people only. The firm possesses high standard finished contemporary products that are eye-catching and possess the great design that cab attracts a large number of consumers (Touchette, Schanski, and Lee, 2015). The apparels are made with best quality materials, and each apparel has the different design that resembles different context. The products are fashionable that contain both sophisticated chic evening wear and elegant day wear respectively. The dresses add value to the firm’s reputation because every dress possesses a classy look and possess a color combination of sophisticated colors like neutrals, pastels, black, and greys. In others words, they made sparkling and beautiful jewelry and offered it with every dress to enhance their look. Besides this, the major product of this apparel brand is the formal dress for working women, and this apparel will attract the huge number of women towards their brand because most of the women in Australia are fond of wearing the formal dress in their work.
The price of each product of this apparel brand depends mainly on the quality and design of each product. The contemporary apparel brand does not compromise with their quality of each product and thus the products are mostly of a high price. In other words, the firm mainly manufactures apparel of high quality, and along with it, they make designer jewelry matching to each apparel (Su, and Tong, 2015). Hence it takes a long time to manufacture the product along with matching jewelry and thus their price is quite high in comparison to the other apparel brands in Australia. Besides this, skilled individuals who are expert in design and textiles are mainly involved in making the apparel, and thus the cost of each product with jewelry become high. Hence, the high price of each product though failed to attract a large number of customers in the beginning, but their strategy of providing matching jewelry with each product will enhance their customer base in coming days.
The contemporary apparel brand possesses both types of market facility for their customers, and hence they introduce both online e-commerce market and offline store in the Australian market. The offline stores of this firm are mainly located in the special affluent areas so that every customer can easily purchase their innovative products. The offline stores mainly present in Sydney, Melbourne, Brisbane, Perth, Adelaide of Australia and these are present mainly in the airport and malls of every location discussed in this context (Kumar, Kumar, and Narayana, 2016). In other words, the stores are present in airports and malls because most high-class people will purchase the product from this area so this can attract a large customer base towards their products. Besides this, the online e-commerce market offered every products and service to all over the people of Australia. Hence it can be said that with this innovative strategy of making both offline and online store will easily help the firm to enhance their business growth in the Australian market.
As the apparel offered by the firm is of premium quality and high prices so the brand made an innovative promotional strategy that can easily attract the huge number of customers towards their brand. One of the promotion strategies of the firm is that they will advertise their products not only through social media or television but also in the fashion magazines of Australia (Valaei, and Nikhashemi, 2017). This promotional strategy will thus help the firm to enhance their customer base in the market which thereby helps them to increase their business growth as well as market share respectively. In other words, they will also make the campaign to make aware of the people about their products and services and in this campaign they provide lucky draw item where one of the apparel will be sold at lowest prices. Hence this promotional strategy will thus help the firm to enhance both their market share and business growth respectively.
Packaging is the main content of the product and services that offered by this contemporary apparel brand. Thus the packaging made by this company are highly attractive as it provides an eye and prospect of the firm over their customers. The firm manufactures both fashionable and formal products for their customers, so they made different packing in both these types of products (Erdil, 2015). In the case of the formal product, the firm will provide a plain packaging where some formal contents are written. On the other hand, in case of a designer or fashionable products the packaging are different because in this product packaging they will provide various designer apparel images that can easily grab the customers attention towards the packaging as well as the products too (Guèvremont, and Grohmann, 2018). Hence it can be said that this packaging strategy will help the firm to attract their customers towards their brand.
It mainly describes the source that runs the businesses which contain both company employees and shareholders respectively. For maintaining good employees in operation and a functional team, the firm is going to choose only the workers those who possess some knowledge regarding the apparel industry (Islam, and Rahman, 2016). In other words, they will provide an educated and well-known manager for every department of the firm so that no difficulty will occur in between the employees. Besides this, in the case of the online market, they will choose some member as their prime customers, and it will be selected by their products are chosen and purchasing ability respectively. Hence by using this strategy, they can quickly reduce their expenditures cost and enhance their profits in their business.
The physical evidence is considered as the visual aspect of the products and services that offered by the company to their consumers. Every customer will need proof of purchasing some products from a company, and thus this contemporary apparel brand will provide physical evidence of their product purchase, and they provide the transaction report of every product that has been purchased by the customers (Jensen, Wakefield, Cobbs, and Turner, 2016). This strategy will thus help the firm to make a strong customer base in the Australian market.
The contemporary apparel brand only manufactures products of women and for enhances their business growth they implement the following strategy and action plan respectively.
To maintain the competitive edge the firm contemporary apparel brand mainly focus on the process rather than products. It is seen that they manufacture high quality as well as designer products for their customers but to maintain their competitive advantage they concentrate mainly on the packaging of their products (Reinders, and Bartels, 2017). The action plan of this firm in concerning to maintain a high competitive growth is that they mainly concentrate on making matching jewelry for every apparel products of their brand.
To maintain a high customer base the marketing strategy of this firm is quite simple as consider to the other apparel brand in the market. After launching the products for the first few months, they offer 10% off in all of their products and jewelry under 100 dollars while they also provide 12% off on all purchases of above 100 dollars (Eastman et al., 2016). In other words, this marketing strategy will be followed for three more times for the first year generally at the time of seasonal changes.
For the first few months, they reduce the price of their apparel products so that it enhances the consumer attraction towards their brand. In other words, this strategy will provide the positive impact on their sales profit, and it will also absorb some initial costs of the discount amount that has been provided by the firm in the first three months of their opening date (Muthukumarana, Karunathilake, Punchihewa, Manthilake, and Hewage, 2018).
To enhance the sales of their products as well as services the firm makes a campaign by their products for their core group customers. The firm mainly on the tagline and also on the advertisement and use both of them on their customer groups so that they can easily understand the benefits of using their products rather than products of other apparel brands. By using this strategy, the firm can quickly enhance their sales, and hence it will increase their profit too.
From the financial statement as provided by the firm manager for the first year, it is noticed that their sales rate will increase from the first year. In the beginning, it becomes to slow down, but with time it can quickly enhance their consumer base in the market through both online and offline mode respectively (Zhang, Sun, and Hu, 2016). It is noted that by maintaining all these strategies, the firm easily enhances their sales rate by 38% between the first and second year.
The action plan that has been taken by the firm by all these strategies are as follows:
The evaluation step of this business plan mainly focusses on analyzing both the qualitative as well as quantitative metrics in association with the implementation strategy and action plan respectively. The evaluation metrics of this contemporary apparel brand is quantifiable in concerning to their implementation strategy and action plan. It is quantifiable because the sales lead obtained provides that their sales rate will increase by 38% between the first and the second year (Shim, Forsythe, and Kwon, 2015). In other words, it also provides the marketing strategy, pricing strategy, as well as sales strategy in concerning the implementation strategy and all of them, are considered to be the quantitative metrics. Besides this, evaluating the business plan also means looking at the data and makes a result by these data to show the growth of the firm as well as to identifies whether it fulfill their objectives or not (Park, and Kim, 2016). Thus by the data provided by the firm the contemporary apparel brand, it is clear that the firm is enabled to succeed in reaching their objectives without facing any sorts of difficulty. Also, control is considered an essential aspect of this evaluation phase. Controls mainly established during the innovation of this business plan which suggests that which path should be followed by the firm in achieving their goals. Hence it is noted that for achieving goals the firm uses various implementation strategy that can quickly grab the customer attraction towards their firm (Beckman, and Traynor, 2018). In other controls also determines by the market share as well as marketing budget of the firm and by the data it is clear that the controls of this apparel brand towards their business is quite good and using the implementation strategy they can quickly enhance their customer base in the market.
Conclusion
The paper concluded that the contemporary apparel brand that is going to start their business in the Australian market possess various strengths and opportunities but some threats and weakness of this firm are also present which they have to overcome it in future. It is noted that the main objectives of the firm are to be one of the leading brands that provide apparel with matching jewelry to their customers. Also, they made an innovative market mix strategy in concerning 7P’s, and this strategy will help to enhance both their business growth and market share respectively. Besides this, implementation strategy and evaluation metrics and controls show that by using their innovative strategy they can quickly grab the significant number of customer attention towards their brand.
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