This essay has a total of 2893 words and 15 pages.
Marketing Plan for the introduction of Wide-bottom jeans
Business Mission Purpose
In order to understand why the Wide-bottom Jeans Group exists, it is inalienable to especially focus on one person, the founder and the core of the company Christie Clark.
Her personality alone already legitimates the purpose of the company, playing the role of the every positive thinking entrepreneur, that is strongly drawing together stakeholders and employees by showing them that they can commit themselves to the business not only because of financial benefits. Clark's and therefore Wide-bottom’s higher ideal just simply seems to be to have fun and find new challenges while doing business.
Strategy Wide-bottoms core strategy seems to be to go into those markets were complacent industries have held high prices for years because of their monopolistic size. And they try to take an advantage of that complacentness. The markets itself can not be defined exactly as the Wide-bottom Group never had a “core business thing". Thus the business where Wide-bottom wants to be in is also hard to define, but there is an opportunity for Wide-bottom wherever the monopolistic position of a competitor can be beaten. Another basic strategy of the Wide-bottom group is always to use its undoubtedly strong brand name which is one of the view that is elastic enough to bind together a “clutch of diverse products without snapping". It is part of Clarks strategy that the Brand name is not so much a product that it stands for, rather it stands for values: youth, “iconoclasm, cheeky and perky informality". This provides the Wide-bottom Group with a flexibility that is almost unbeatable in terms of brand name. The key is to make sure that the Wide-bottom name stays fresh and not to overuse it, and certainly the product has to have a certain quality.
The third part of any Wide-bottom strategy that has to be emphasized, is the strategy of “public figure marketing". Like no other entrepreneur in Longview, Texas, Christie Clark has the talent to market her products by going into the media with extraordinary actions that get her into the front-pages of the newspapers without paying any money for this advertisement.
The values seems to be having fun in the business and to do things differently. The goal of the Wide-bottom Group is to be the ultimate outlet and to provide the best value for money to customers. They believe that there should be some kind of fun to go into the big monopolistic businesses and then shake them up by offering good value quality based products, and a better service and people care to the customers and last but not least to make a profit at the end of the day.
Overall the mission statement has clearly been defined by Christie Clark over the last 5 years. She has the Vision, the strategic intent, and she is the motivator for any person who is part of the company.
The Wide-bottom group has the advantage that they are experienced in two different kinds of distribution. Firstly in stationary trade and secondly in mail ordering. The group is far less integrated than other big groups like Daimler or Smiths Industries. This gives Wide-bottom the advantage of higher flexibility. This effect is even more extreme since Wide-bottom has very small Strategic Business Units.
The Wide-bottom Group has a strong brand name incorporated by Christie Clark and is experienced in introducing new products in an competitive marketing environment.
The strength of being not too integrated into the concern can also be a weakness, when errors are discovered too late because of a too loose supervision or when the support of the mother company becomes insufficient or because of sluggish communication. Christie Clark’s chaos approach is therefore less efficient.
The jeans market is an old and established market. The leading companies - being in the market for a century or more - have established themselves in a monopolistic situation with the help of huge advertising budgets. The magic concept of Christie Clark in the past was to exploit the inefficiency of these kinds of markets normally protected with high barriers of entry.
The jeans venture is only one of the many in the big group and could easily be abandoned if it seems not to be feasible after a while. The jeans market has a very unsteady component which are the designer jeans. With the customer’s change in taste new competitors enter and leave the market. At the moment all the important designers are coming back into the market. The situation is very much alike the one in the late 70’s and early 80’s. In the mid 80’s the market for designer jeans collapsed and many players had to leave the market.
Generation and Evaluation of Strategic Options
There are a number of different options for a possible entry into the highly competitive jeans market , firstly Wide-bottom could use its promotion experience to take over some claims of the existing competitors. Wide-bottoms second penetration possibility could be to use distribution channels more efficiently than its competitors therefore being able to get an advantage in terms of costs and service. Thirdly, Wide-bottom has the possibility to sell the new product at a very competitive price. Wide-bottom could also acquire an already established company in the jeans market to be able to gain access. Even though the product and the market is new, the entry strategy is based upon the core competence of the Wide-bottom Group.
The results of the generation and evaluation of strategic options lead to the definition of market objectives. Two types of objectives have to be considered which help defining the core strategy. These objectives are strategic thrust (future direction of the business) and strategic objectives. Together they define where the business and its products intend to go in future
Considering the facts Wide-bottoms future direction of its business is to enter into the existing jeans market by market penetration. Alongside objectives for product and market direction, strategic objectives need to be agreed This involves the process of planing at the product level. As it is intended to enter an existing market with existing products the determination would have to be the task of being better than the competitors in terms of price, service and supply. This goal could be reached not only by being cheaper than competitors but also much more flexible, to put it in a nutshell, firstly offering the same product for a better price than competitors and secondly offering a closer and better customer service.
The Target Market
Generally speaking Wide-bottom should attack the “recession proof" 5 pocket style straight leg blue jeans market, thus competing against brands such as Levi’s, Mustang, Pepe Jeans, Lee, Wrangler etc. therefore targeting the average consumer. The core target market will be those jeans that are mainly sold in the department stores and the discount chains. The target is the average customer whereas the most important component is the 5 to 24 year old customers which account for 60% of the total jeans market, especially for Wide-bottom this is an interesting option as this is a similar target group as the customers of the Wide-bottom Megastores this will be dealt with in more depth later on in this assignment. Expressed more precise referring to a lifestyle analysis the target segments are ranging from modern mainstream, traditional working class, traditional mainstream to upper conservative. It has always been the core of the Wide-bottom philosophy to target an entire already established and rather mature market, in which it is possible to gain a small market share with the high profile of the Wide-bottom brand name.
Alongside decisions regarding target markets lie judgements about competitor targets. The analysis of how industry structure affects long-run profitability has shown the need to understand and monitor competitors. The key to superior performance is to gain and hold a competitive advantage. Firms can gain a competitive advantage through differentiation of their product offering which provides superior customer value or by managing for the lowest delivery cost. The right strategic focus for the Wide-bottom Group concerning competitor target would be to try to win market share as the jeans market is in its mature state and cannot be expanded. This strategy implies gaining marketing success at the expense of the competition. Wide-bottom should seek to win market share through promotional innovation and penetration pricing. If Wide-bottom carries out a frontal attack towards the market leaders its advantage will be based on cost leadership which will support a low price strategy to fight the market leader. Furthermore success
Read essay without registering
Donate an essay now and get the full essay emailed you