This particular study promotes the positive impact of fair trading and green market segmentation for the betterment of developing countries. By evaluating an effective case study on soleRebels this particular study has focused to highlight on how a recycling business process is highly effective for keeping up the environmental factors of a particular community as well as social development. The overarching term fair trading is a social movement that primarily aims to help the producers of developing countries for a better trading condition. The primary principles of fair trade organizations include creating opportunities for the economically disadvantaged producers in order to reduce the rate of poverty, helplessness and social disadvantages. As a result, the producers can get a scope in transparency in accountability. People who were suffering from un-employability get the scope to be associated with a particular business organization.
It is one of the most effective ways of social development. As per the business ethics of fair trade organization, the business experts never intend to maintain any kind of discrimination within the organization. As a result, people belonging to different geographical areas and cultural attitudes get equal scope to show their talents. This specific study has provided detailed overview on how soleRebels has maintained their green marketing segmentation strategy by following the principles of trade fair. While conducting the entire business process the organization has faced innumerable difficulties in running the entire business wings successfully in the market. The study has highlighted the problems and proposed solutions based on which the organization can overcome the challenges by implementing strategies and policies. Some of the relevant recommendations based on the business problems have also been presented in this specific study.
Established their entire process of business in the year 2004 soleRebels has primarily become recognizable as one of the most familiar footwear brands for developing recycling products. Producing eco-friendly shoes and sandals from the tires of truck is the business policy. In order to maintain ethics, beliefs and values within the business process soleRebels has decided to provide recycling products to the customers based on which the customers from the Western World can be helped in social development (Hutt and Speh 2012). This particular organization is situated in Ethiopia where a large number of people have to suffer from food insecurity, poverty, lack of economic strength and so on. Around 45 employees are primary associated within the business process of soleRebels.
In order to maintain a community relation this specific organization has decided to appoint employees from their own community. This particular policy can be considered as the part of corporate social responsibility. In order to help the producers this particular business process has been circulated to 200 local suppliers as well. After evaluating the case study of soleRebels it has been observed that implementation of green market segmentation strategy is not sufficient enough to enhance the entire business process (Kumar and Chandrakar 2012). Therefore, soleRebels fails to expand their business wings widely beyond going the regional market. In this kind of situation this particular study would help in evaluating some of the effective measures on how business problems of soleRebels can be overcome.
While conducting the entire case study some of the major business problems have been identified due to which soleRebels fails to run their wings successfully in the market. Lee and Lam (2012) stated that providing quality products and service process is not the only condition of this particular business organization. In order to gain the image and reputation from the customers, business experts would have to form some of the major strategies and policies (Kotler et al. 2012). Bethlehem Tilahun Alemu being the founder of this specific business organization has identified some of the major problems within the organization while running the business process.
Problem 1: Lack of internal workforce strength to control the business process systematically:
In order to create a greater competitive advantage the business organization like soleRebels has to focus on maintaining an effective balance on internal business infrastructure. Rosenbloom (2012) stated that the internal business infrastructure includes human resources, physical equipments, technological devices, financial resources and so on. soleRebels is possessed with only 45 employees to control the entire business process (Høgevold and Svensson 2012). Therefore, the business executives are not sufficient enough to fulfill the needs and demands of the customers. In order to maintain an effective service quality the business experts have to appoint sufficient number of employees in the customer service department in order to maintain a balance between customers supply and demand. On the other hand, it has also been observed that soleRebels is having poor financial strength based on which the company can invest money for number business purpose (Chen et al. 2012). The growth of sales volume of this specific organization is not very high. Therefore, the managers have to face difficulties to invest money for the purpose of promotional activities, enhancing business resources, workforce strength and so on.
Problem 2: Lack of effective marketing strategy for drawing the attention of customers from different geographical boundaries
Chikweche and Fletcher (2012) commented that providing superior quality of services is not the not the primary vision of a business organization. In order to deal with the customers in different geographical markets the organizational managers should maintain promotional activities as well as strategies. Before designing a product the business expert has to segregate the target customers first. At the same time, marketing managers have to invest sufficient number of money for maintaining the promotional activities (Lindahl, Sundin and Sakao 2014). As a result, people belonging to different locations can be aware of the products and service processes. This particular business organization has never concentrated to those specific areas of promotional activities. As a result, the numbers of target customers are limited in range. In this kind of situation the business executives are facing innumerable difficulties in running the entire business process smoothly in the market of Ethiopia.
Problem 3: Lack of efficient employees at the workplace:
Ethiopia being an under developed area is possessed with few number of literacy rate. People belonging to this area do not have sufficient qualification for being the part of a business organization. Glanz, Bader and Iyer (2012) stated that soleRebels by implementing fair trade principles tend to appoint those employees who are within the community. Naturally soleRebels fails to recruit skillful and competent employees within their business process (Kostecki 2013). In this kind of situation, the business experts have to face innumerable difficulties in keeping a control over the entire business process. Large number of barriers is getting raised within the organization. Employees are facing communication barrier, cultural barriers, linguistic barriers, religious barriers, psychological barriers and so on. As a result, customers feel hesitation while interacting with the business experts of soleRebels.
Based on the identified problems some of the necessary steps should be taken based on which the organization would be able to overcome the major crisis and difficulties that they have faced at the time of providing customer service. The solutions that can be proposed are as follows:
Market segmentation:
Leonidou, Katsikeas and Morgan (2013) stated that market segmentation strategy is highly effective in order to segregate the market as per the target group. soleRebels primarily should focus on segmenting the market structure as per geographic demographic and psychographic ways.
Geographic:
Based on the geographical boundaries the customers are selected on behalf of marketing executives. Apart from the regional market of Ethiopia this particular organization can select more geographical locations of the Africa as well. The locations include Somalia, South Sudan, Eritrea, Djibouti and so many. Arseculeratne and Yazdanifard (2014) opined that after involving the customers of these specific geographical locations the organization would be successfully able to enhance the number of target customers.
Demographic:
As per the demographic market segmentation customers have been selected as per gender, age group and income status. As per the principle of trade fair this particular organization implements low cost strategy. The price range of the products available in the store of soleRebels is very much affordable for those customers who are having limited status of income. Millar, Mayer and Baloglu (2012) commented that the customers do not have to face difficulties in purchasing the products as well services of this organization. As already mentioned Ethiopia is possessed with poor level of population where the inhabitants have to suffer in extreme level of food insecurity. In this kind of situation, brand value strategy would not be very much effective for soleRebels. However, people from 20 to 50 group of age have been considered as the target group. In order to represent the principles of fair trade soleRebels has never showed any kind of gender biasness towards the business process. Both the male and female customers are treated with equal respect and dignity (Liu, Kasturiratne and Moize 2012). In this kind of situation, the customers be it male or female do not have to face any kind of barriers for using the products and service of soleRebels.
Psychographic:
Singh (2012) opined that psychographic market segmentation believes that customers of different geographical markets, cultural attitudes and beliefs can be given equal priority. Therefore, the product managers while designing the products do not concentrate in fulfilling the needs and demands of any specific religion (Mishra and Sharma 2014). The products are out looked in such a way that people belonging to different values and beliefs can use the products and services of soleRebels.
Target:
After conducting effective market segmentation strategy it can be concluded that people from different geographical locations can be attracted by implementing effective promotional strategy (Shen, Wang and Shum 2012). Customers of various psychological backgrounds can be targeted from different age group. The marketing managers like to provide equal priority to both the male and female customers.
Positioning:
In order to position the brand in the market of various locations around Africa soleRebels should use the media tools based on which the business process would reach the doorstep of customers. Rosenbloom (2012) opined that in order to position the brand the marketing executives have focused to use both offline as well as online promotional tools. Banners, hoardings and electronic media and print media are the vehicles with the help of which the business experts can directly impress the regional customers (Baker 2014). On the other hand, social media tools would be effective for the customers of other geographical locations who cannot directly communicate with the marketing executives of this particular business organization.
Figure: STP analysis
(Source: Millar, Mayer and Baloglu 2012)
Marketing mix strategy is the process of promotional activities based on which the products and service can be promoted with the help of media vehicles. The 4 Ps of marketing strategies are as follows:
Product:
Eco-friendly Shoes, hand craft sandals are the necessary products that have been recycled form the tires of trucks. As per the principle of trade fair, soleRebels does not intend to manufacture those products that are very much environment friendly (Brettel, Strese and Flatten 2012). However, in order to draw the attention of customers soleRebels has decided to deign colorful products to draw the attention of young customers.
Place:
Helm and Gritsch (2014) opined that Ethiopia among African countries is under developing where people have to suffer for the lack of food, proper education and life style. In such a place the marketing managers have to face innumerable difficulties in promoting the products to the target customers (Holliman and Rowley 2014). Therefore, people belonging to other geographical boundaries do not show their interest for using the products and service process of soleRebels. However, soleRebels should spread the entire business process in beyond going the market of Ethiopia for gaining brand identity and brand image.
Price:
Turnbull and Valla (2013) stated that the marketing managers have fixed the price of soleRebels products in such a way that customers from low income status can easily afford the products. Brand value strategy is not very much effective for the target customers of soleRebels. In order to sell the brand the marketing managers have to reduce the product cost. Otherwise people belonging to Ethiopia would not be able to purchase the products and service process of soleRebels.
Promotion:
Business promotion is highly effective for drawing the attention of customers from different locations of Africa. Due to the low budget in promotional activities the business experts intend to focus on offline media channels for promoting the business. The offline media channels include television, radio, hoarding and banners (Mihali?, Žabkar and Cvelbar 2012). At the same time, marketing managers have invested minimum cost behind social media promotion as well for spreading the entire business process in the market of Africa.
Figure: Marketing mix strategy
(Source: Borland and Lindgreen 2013)
In order to become a major threat for the organization like Oxfam this specific organization has maintained an effective market survey in order to know the competitor’s market strategy and policy. Armstrong et al. (2012) stated that it has been observed that Oxfam has already established their business process in the market of Africa. This particular organization has implemented brand value strategy with the help of which the sales executives can draw the attention of premium customers (Buckley, Burton and Mirza 2016). However, in order to compete with the brand value of Oxfam, soleRebels has decided to implement low cost strategy to enhance the number of target customers. As per the economic status of Ethiopia customers would be afford the price only when the service providers would give them in a low price. On the other hand, the business managers of soleRebels are very much flexible to treat every gender within the business organization equally (Borland and Lindgreen 2013). Therefore, employees are selected as per the skill and level of competency rather than their gender biasness.
After evaluating the case study problems and proposed solutions regarding the business process of soleRebels some of the major recommendations can be provided:
Conclusion:
The entire study has provided in-depth analysis about the principles of fair trade organization and their method of green marketing strategy. An in-depth case study has been conducted on the business strategy and policy of soleRebels. Throughout the entire case study it has been observed that soleRebels has faced innumerable barriers in running the entire business process successfully in the market. In this kind of situation some of the proposed solutions have been provided to the business organization based on which the business experts can keep a constant control over the entire process of business.
In this specific study the business experts of soleRebels have decided to maintain gender equity at the workplace. As a result, both the male and female employees get equal priority and response from the business organization. Due to the establishment of business in an under developing country this particular organization has faced difficulties in setting their price range strategies. However, the principles of fair trading organizations are different from the business ethics of other organizations. Making a balance between profit and loss is not the sole aim of this specific organization. A specific fair training organization has to set a goal in developing the community as well by providing them employability scope.
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