Sole Rebels is an Ethiopian organization dealing with the manufacture of shoes and sandals from recycled truck tires essential for ethical consumers in the Western nation. The firm is based in an environment that grapples with environmental issues facing difficulties in the production of food due to drought. Hence, the firm exists to be part of the community aiming at reducing poverty through the employment of individuals thereby reducing the hunger levels due to economic sustainability for the locals. The organization was found by Bethlehem Tilahun Alemu operating under the belief that locally informed and community-based solutions to poverty alleviation approaches are the most effective avenues. Thus, the firm produces ethically while using recycled materials thereby remaining ethical and sustainable in production. Besides, the business operates under the inspiration of trade is better than aid thus projecting itself well to the market. The paper discusses several marketing issues surrounding the business and its operations.
Sustainability is essential in driving success through proper management of an organization’s financial, social, and environmental risks. SoleRebel has become successful owing to its policy of focusing on sustainable production right from the source to the finished products. The shoes and sandals produced by the firm are hand-crafted with the sole of the shoes coming from recycled tires and natural fibers that remain friendly to the environment (Noe, Hollenbeck, Gerhart and Wright, 2006).
Besides, the packaging is made from recycled shipping cartons with the shoes being wrapped in reusable cotton bags. The internal emphasis on sustainability emanates from the ethical production using raw materials that reduce the challenges of waste disposed of the tires which are translated into proper use. The tires that would have otherwise filled the environment are put into proper use towards societal benefit (Docherty, Forslin, and Shani, 2002). The trait assists the firm in maintaining a competitive market position due to the nature of focus on the environmental issues considered. Businesses that remain ethical in their production processes have a high affinity of gaining favor from the government and the market.
According to Wheeler (2013), sustainable production is part of social responsibility which is essential towards gaining a considerable reputation and performance. Goods made from ethical practices and sourcing obtain a significant market share in an environment sensitive to the environmental concerns. The firm gets its market from the overseas consumers who remain sensitive to products that do not meet sustainable standards. Therefore, the firm is better placed to thrive in the market due to its ethical production. The use of locally available resources improves the environment and would gain favor for a firm insisting on ethical production.
On the other hand, the government would promote such a business to the outside market and grant it discounts and waivers on the importation costs due to the great reputation as a firm concerned with ethical production (Epstein and Buhovac, 2014). As opposed to other shoe factories using materials that degrade the environment, the firm decides to remain responsible through the use of materials that would have otherwise harm the environment by putting them to responsible use. The market for shoes remains broad but sensitive to the production that seems unique and more so concerned with the organization production procedures. Therefore, the firm is better placed to succeed in its marketing efforts and retaining a considerable market share in the competitive market.
A Greater competitive advantage exists in increasing the level of sustainability to the environment. Remaining sensitive to the environment is a marketing concept that leads to growth in business. The act promotes a healthy engagement with the government as well as the community living within the production environment (Unsworth, Dmitrieva and Adriasola, 2013). First, the firm should engage in corporate social responsibilities dealing with the protection of the environment. Activities such as advocacy for the use of recycled materials, cleaning activities, and planting of trees adaptive to the climate are for improved production. After such an activity, it is essential for the firm to publish its operations to the consumers to increase and provide evidence on their level of commitment to sustainability.
At the same time, as a firm engaged in a market that is sensitive to global warming concerns, it is strategic for the market in its packaging to describe the choice of material towards environmental considerations. Furthermore, the firm has a social media page and the website through which clients access information on the operations of the firm. In its advertisement, it is essential to inform the consumers on its sustainable production standards and the way in which it adheres to the production standards required by eco-friendly firms.
Consequently, it can use the avenues to publish its social activities towards building its brand image essential to grasping the sensitive market focusing on the green economy. It is important for the firm to uphold ethical production towards reducing its global footprint (Longoni, Golini and Cagliano, 2014). Consumers sensitive to environmental and ethical products tend to carry out a background study which reveals the process of production. Consequently, such firms gain a good rating due to the sustainable production standards it considers in the production.
Market segmenting is an important aspect of business where the creation of products is done according to the target market. The brand positioning statement for the firm shall be “For the eco-friendly clients, SoleRebels is the ultimate option for the shoe products sustainable to the population.” The Australian market presents a broad consumer base which needs to be utilized towards productivity. Besides, the market remains highly sensitive to environment thus giving the firm a considerable opportunity to meet its demand obligations and increase the revenue stream (Schlegelmilch, 2016). There are distinct segments that the business can select towards achieving a substantial market share.
The segment refers to the personality and emotions based on behavior, purchase choices, lifestyle, and risk aversion traits whenever sourcing for products in the market. The information is obtained from interviews and product surveys as well as product research. The Australian market is composed of individuals keen on the products they purchase which have to follow ethical production and focus on risk aversion (Bickhoff, Hollensen and Opresnik, 2014). In this respect, the shoes and sandals produced by the firm qualify for the segment which focuses on environmentally friendly products manufactured in an ethical manner and ethical material source.
The population remains deceptive of products that cause harm to the environment. For instance, the population supports products that adhere to the required standards such as electronics with the best energy ratings. In the same manner, the products which have a high sustainability and durability ratios gains favor with them thus presenting the opportunity to the organization (Hollensen, 2015). Before purchase, individuals may choose to view customer ratings and comments on the website and social media page and discover the ethical production and sustainability standards.
Consequently, the organization fits within the requirements thus leading to increased market for its products. Risk aversion is another aspect of concern to the Australian market. The consumers remain keen to avoid products that harm the environment. The products are made to last long, longer than what another offer to the market. Thus, their rate of adverse effects to the environment remains limited thereby giving it a competitive edge over the rest (Keegan and Green, 2015).
The population is composed of individuals with a high rate of value which informs them of the need to buy products that go towards assisting others in the society. In this respect, the family values maintained in the production where families and the less privileged benefit from the production lead to a proper market response for the business (Pyo 2015). Besides, the region is concerned with assisting projects that contribute to the wholesome development of individuals in the society. Therefore, noticing products that go towards creating change to the poverty and food-security challenged nation gains wide acceptability leading to improved sales margin (Dibb 2017). In this case, the firm shall target environmental organizations in the area to promote the products of the company as well as act as an entry mode to the diverse market.
The concept refers to the market selection based on the demographical considerations such as age, education, ethnicity, marital status, gender, and the income level of a group of individuals. The vast range of people in the several categories within the organization gives the firm a considerable number of individuals for its market (Lopes, 2015). First, age is a diverse means through which the company can target for its business. The company makes products for all ages and can customize the creations to fit the requirements of the diverse age. Different ages fall in love with a particular color during purchases. For instance, the youthful individuals can be offered the colorful shoes and sandals with the older generation receiving the not so bright ones. Besides, the message inscribed in the sandals can differ according to the age with the diverse ones having messages specified for each generation of buyers (Andaleeb, 2016).
On the other hand, gender is a special factor to consider in both the production of sandals and that of the shoes. The two commodities can be created to suit the diverse needs and design for both genders which can be easily identified quickly. Besides, the shoes can be modified to suit the different weather patterns of the nation with the light ones for the shiny weather while the heavy and closed ones for the cold seasons such as winter. While male individuals may prefer the closed type of shoes, ladies may opt the light and open shoes that meet their diverse needs and lifestyle. Therefore, the ability to produce shoes and sandals for both genders gives capacity and opportunity for growth and development to the firm in the country.
Income levels differ in the nation with each earning brackets having a certain price affixed in their marketing niche. The different income potential gives the firm the opportunity to design and create shoes for each of the various costs that can be met satisfactorily (Lopes, 2015). The alteration in prices can be done to suit the diverse income levels thus driving at a high rate of productivity for the firm. Like any other product, pricing must differ to meet the different needs and potential to afford across the income levels.
Occupation is another opportunity presenting itself in the Australian market. Diverse occupations call for specific designs and types of shoes. Individuals working in the industry tend to deserve strong shoes that suit the tough environment. On the other hand, others can be made for the management professionals that do not have to be complicated. As a result, the diverse occupation individuals can benefit from the eco-friendly products which serve as its core marketing tool (Lopes, 2015). The existence of the various occupations provides opportunities for the company to produce different designs and features for the shoes and the sandals befitting the needs of an occupation.
Marital status does not affect the type of shoes to be worn by the individuals. The shoes can be worn regardless of the marital status thus providing one design that suits all irrespective of the status. The fact that the differences do not affect the product justifies the presence of a real market for the commodities. Religion and the education status equally fail to influence the type of shoes to be work. In a similar respect, they present a stable market for the commodity that suits the diverse categories therein.
The last category relates to the social class. The population is existent of the diverse social class ranging from the upper, middle, to the lower class individuals. The three category present a market for the products which have different pricing strategies to meet the demands and purchasing power of the three social classes. Therefore, the existing demographic levels in the Australian society present a well-placed market for the commodities which acts as a promising zone given a good entry strategy (Lopes, 2015). It is important for the firm to use the ethical and sustainable appeal for the product to convince the diverse market towards adopting its products in the large market. The Australian market is diverse, thus giving a huge market potential for the company to thrive.
The category refers to the nature, design, and colors of the product up for sale to the new and existing markets. The founder has a vast knowledge coupled with the efforts of brand devotees which assist in meeting the diverse needs of people in the environment. Besides, the tough nature of the shoes determines its durability which serves as a marketing tool for the product to the competitive market (Huang and Sarigöllü 2014). The recycled tires are tough enough to last for a while thus giving the promise of a long-term service to the individuals reducing wastes in the environment. The sandals are designed for both indoor and soft outdoor activities which increase the market for the commodities. The packaging for the products is eco-friendly thus gaining a broad acceptance to the population (Leonidou, Katsikeas, and Morgan 2013).
Despite the existence of a well-crafted product, the firm can increase the designing of the goods to meet the diverse needs and preferences of the Australian market being a different zone. In so doing, it is necessary for the firm to conduct a survey to determine the issues involved in the alterations and cultural needs of the community. Shaping the design of the shoes according to the present and future needs of the environment is essential towards satisfying the need for the diverse market (Hanssens, Pauwels, Srinivasan, Vanhuele, and Yildirim, 2014). Besides, it has to produce different brands that conform to the tastes of the new environment. Here, it can utilize the existing brand ambassadors to advice on the best selling types of shoes recommended for different occupations.
The firm places flexible prices for its commodities ranging from $35 to $95 which manage t capture the diverse income levels of individuals. The prices for the products have to be adjusted further to meet the needs of the diverse social class and revenue levels of individuals. Realigning the product prices according to the different needs assists in ensuring a high entry level for the products (Helm and Gritsch 2014). Besides, the prices can be contained through the bundling strategy where the shoes sold can be bundled with the sandals to increase their sales in the diverse markets. For instance, a commodity that is slightly expensive for a market can be accepted if bundled with sandals due to the two needs they meet on a specific buyer (Goi, 2015). Thus, the strategy is efficient in advising on the prices to be used.
On the other hand, allowing for flexible terms of purchase of the commodity to the local wholesalers determines the ability of the products to perform in the market. Permitting flexible credit terms for the commodity seems viable to a new market where product accessibility and acceptance remains in the test. The firm, instead of selling the goods directly can select a specified shoe shop to promote and sell the shoes on her behalf thus providing a ready market for the products (Rahmani, Emamisaleh, and Yadegari 2015). After determining the rate of marketability, the firm can venture in direct sales by establishing shops in the region. Therefore, pricing is a significant factor to the entry of the new area given the competition in the shoe industry.
The case study presents evidence that most of the market for the commodity exists in the overseas region. The firm uses its website and online footwear retailers as well as company-owned outlets. As such, the company exports the shoes and sandals in well-packed boxes. Due to the expectations of the wider market, the firm needs to create a technology-enabled inventory system to keep up to date the production to avail the shoes in the required standards and time (Strauss, 2016). The aspect enables a steady supply and reliability of the products in the market. The products have to be ready as per the demand to the nation’s purchasing the products.
Moreover, there is a need to increase the distribution channels to accommodate the vast demand in the present and expansive markets. The firm must select the cheapest but reliable distribution partner for its commodities to match the timely supply standards essential in the market environment. A proper communication standard must exist to link the market with the producers of the product to allow for easy connection during the distribution stage (Barrett and Weinstein 2015). Such a link would allow for a timely replenishment of the commodities in the market. Proper placement of products is essential to the growth and demand status of the overseas market.
The firm focuses on the digital media for its advertisement ventures as opposed to the traditional media. It utilizes the website and the social media sites where it popularizes its products to market. According to Posner (2015), the avenue remains strategic towards achieving benefits for the organization. Besides, the founder uses her position and worldwide recognition and winner of several eco-friendly production awards to promote the brand name. However, there is a need to increase marketing efforts through road shows partnering with eco-friendly organizations to create awareness and market for the products (Helm and Gritsch 2014). A sales team as to be enacted to promote products in the diverse overseas market with product promotions carried out across the destinations for brand awareness creation (Baker 2014). Participation in social responsibilities in the different markets would be essential towards grasping the new market with the commodities.
Conclusion
SoleRebels is an eco-friendly firm that is better placed to succeed in the market given its sustainable production standards. Besides, the good state of the working environment with motivated staff increases their productivity rate and retention among the employees. Eventually, it leads to low costs in operation turning around the steady revenue stream. The presence on the social media and other online sites allows for a good brand promotion and sales records given the power of internet marketing. The proper placement, promotion, pricing, and product design recommended are essential towards giving the commodity an upper hand in the market that remains sensitive to ethical production. SoleRebels is bound to thrive in the market leading to constant growth.
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