Marketing Strategies of Newman Apparels-Free-Samples for Students

Question: Discuss about the Strategic Marketing of Newman Apparel situated in Wellington, New Zealand. Answer: Introduction Strategic marketing is used by the organization to make a plan for reaching the customers and to satisfy the needs of the customer while increasing efficiency and viability of the organization. Basically organization create strategic marketing plan in written which will direct the type of program of marketing is to be used for particular situation and implementation of the programs. Strategic marketing also help business in becoming innovative and to know how to cover the market (Freeman, 2010). Newman Apparel is a website of online shopping and established in Wellington, New Zealand and was founded in the year of 2016. The founder of Newman Apparel is Justin Newman. It is solely in the business of selling gym ware at the lowest price and provide best quality products (Newman Apparel. 2017). It offers free delivery of the cloths over New Zealand. It has its business only in New Zealand with single office. It faces huge competition from other shopping websites. Marketing Analysis A marketing analysis is a valuation that permits you to determine how appropriate a specific market is for the business. Marketing analysis is used to evaluate the present market or search new market (Pestle analysis. 2015). The factor of marketing analysis is SWOT analysis in which we identify businesses strength, weaknesses, opportunities and threats (Tech Target. 2017). SWOT Analysis of Newman Apparels Strength OF Newman Apparel Customer segment: People of New Zealand prefer going gym and want themselves to be fit. So, it is a market for the companies providing products related to fitness. Therefore, Newman Apparels have three segments such as people going to the gym regularly, first-timers and people who are health-conscious. The given three segments involve the use of same type of product that is why it is a strength for Newman Apparels and can concentrate on these segment. Prices of the product- Newman Apparels charge less prices for their offerings with qualitative products as compared to its competitors. Even Newman Apparels do not charge any amount for delivery of the products over New Zealand. Newman Apparels is situated in Wellington of New Zealand, therefore it is very convenient for the people live near Wellington to access their services. Weaknesses of Newman Apparels Customer base- Customer base of the Newman Apparels is very less as many customers buy the products only one time and do not come back. To maintain the good relations with the customers is very important for the business to survive. In the case of Newman Apparel it seems to be missing as customer loyalty is also missing and it is a weakness of Newman Apparel. Opportunities of Newman Apparels Increase market share- Newman Apparel deliver their product very easily only in and around Wellington, they should make their process smooth for delivering their product in other places. In addition to this they should start delivering their product internationally to increase their market share. Threats of Newman Apparels Resources- Newman Apparels should hire more staff members as less members cannot handle the work future because of their expansion. They should also implement better technology and should order new computers which will increase the speed of processing. Implication of Blue ocean strategy BOS- Blue ocean strategy is a set of strategic methodologies, tools and principles that provide assistance to the business in generating an increase in value and profit by observing outside the boundaries of outdated competitive strategy. It provide a thought to them who work in the planning of marketing and strategies to look outside the existing demand, recreate the marketplace and make relevant competition (Kim Mauborgne, 2014). Value Innovation, strategy canvas and ERRC grid are known as the key principle and tools of Blue Ocean strategy. Source [https://deams.units.it/sites/deams.units.it/files/VALUE%20INNOVATION.pdf] Value Innovation- Value innovation is the keystone of Blue Ocean strategy. Its main focus is that business should give equal importance to innovation and value. If business will only focus on creating the value of product and services without innovation then the value may increase for the customers but it will not show anything different or will not have a successful position in the market. Innovation only is frequently advanced and technology determined. Generally it fails to encounter the value wants and needs of the customers for which they are ready to pay. It totally avoids them. Innovation for innovations sake. Therefore, it is very important to have an innovation that involve value for the success of the product or business (Lv, 2017) Strategic Canvas- A strategy canvas is both an action and investigative framework for constructing a convincing strategy of Blue Ocean. It captures the present position of the business in the market space. This helps to analyze the investing strategy of the competitors, factors to be considered in the product, service and delivery for the competition and what are the offerings for the customers in the existing market. The horizontal axis represents the series of aspects the business participates or invests in. The vertical axis represents the level of offers that buyer obtains through all these key challenging factors (Tracogna, 2017). The value curve then delivers a graphic illustration of a performance of company across business competition factors. Value Curve- It is a tool used to make a graphical illustration of the market place of the business covered by present assistances in the market. The tool is used to determine gainful and vacant places (Birajdar Mankar, 2017). Steps that are involved in this- Step 1: Define the key aspects of price and performance. Step 2. Plan existing offerings. Step 3. Make value-adding adjustments to match hidden demand to vacant places. ERRC Grid for Newman Apparel- Eliminate, Reduce, Raise, Create Eliminate Reduce Factors of Competitive market Local market strategy Raise Create Product line Advertisement Expand variety of product The ERRC grid is a tool that help new business or any company to recognize the new opportunities in the market, services or product or a model of business to distinguish it from the competition. It assists in classifying the elements on which a company work on to stand out in the market (Alamoudi Alandijany, 2017). Eliminate- The factors must be eliminated those are not adding value besides the company has worked on lot on it to compete (Kim, 2016). Newman Apparels is not so much famous in the market as it has started operating in 2016 year. Thus, it faces huge competition from the shopping websites that already exist in the market. Therefore, Newman Apparel should focus on eliminating those factors that arise in the competitive market. Reduce- Factors that involve huge cost for maintaining them and are just giving little profit to the business must be reduced (Gander, 2017). Local market strategies must be reduced by the Newman Apparel if it is not increasing their market and finally the business profit will not increase. Raise- The factors that can add value to the existing customers should be raised in the business (Egypt Innovate. 2015). Newman Apparel should not only focus on gym wears they can sell other type of wear or can add a footwear option. Create- New factors should be created that were not added before and can add value and can attract the customers (Ng, Lau Ismail, 2014). Newman Apparel should do attractive advertisement to attract customers and to make their business famous. Along with this they should expand their product line and can provide variety of products. Marketing and Company resources for the value innovation Company Resources- Financial resources and human resources are included in companys resources. For utilizing the opportunity of the business, it is very essential to manage the resources of the company (Chuang Lin, 2017). In the matter of Newman Apparels, business should manage the human and financial resources properly. They should focus on providing quality of gym product so that health conscious people can be attracted for this they need an idea that is innovative for improving the feature of their product. This can be achieved by properly managing the financial and human resources. Thus, strong human resource is needed for promoting the product through social media. Marketing Resources Resources of marketing are energy, expertise, money and time. These four resources are very important for business to bring the product into the market by using the opportunities (Sok, Miles, 2016). In the matter of Newman Apparels, to grasp the international market opportunities they need lot of money to invest. Thus, money is said to be the major element for the business to hire the expertise and workforce. Though, Newman Apparel is an online based shopping website therefore, they need expertise staff with technical and non-technical skills for marketing their product. For creating attractive advertisement and promoting the product to increase the number of customers business need talented marketing executives. Technical experts should be involved and operate the whole online marketing. Another important element of marketing is Time. For increasing the market share of the business in the international market Newman Apparel have to give more time to its business plan and its development. On the other side, business should give more time in the research of market for understanding the different market needs. If Newman Apparel want to expand their business in the international market they require an effective marketing plan, which will time more time. Energy means the ability of a business to convey their marketing operation. Positioning Strategy for Newman Apparel Newman Apparel should start delivering their products outside New Zealand so that other people can also know about their business and can get famous. Besides this, Newman Apparel have small office in Wellington in its Upper Hutt, they should focus on extending their business as well as their offices in other countries. Other than this, Newman Apparel faces huge competition from the shopping websites already existing in the market with variety of products online. Thus, to surviving in the competitive market they should offer variety of products instead on selling only gym wear. Further, for the development of the business and to make business famous with increasing its profit they need to make attractive advertisements. Marketing Mix The marketing mix known as the set of tactics, strategies and actions used by a business for promoting its product in the market. The Marketing mix involve 4Ps i.e. Product, Price, Place and Promotion (The Economic Times. 2017). Product- Product is the item sold by the business (Patil Bach, 2017). Newman Apparel should provide good quality of wears they are selling and that should deliver minimum level of performance. If it will not be done then the other strong efforts will not make any sense. Price- Price is the amount which is decided for a product while placing it for sale in the market or website. It is depend on the production cost, ability of the customer to pay, demand and supply of the product. Newman Apparel provide their gym wear at low cost that makes their clothes affordable of all the customers with best quality. Place- Place means the point where business sell its products. The main aim of place strategy is to catch the attention of the customers and make easy for the customer to come and buy it (Fan, Lau Zhao, 2015). Newman Apparel sell their products online as it is online based shopping website. Thus, it makes easy for the customer to buy as in todays scenario most of the public is technology centric and feel comfortable in online shopping. Further, Newman Apparel should deliver their product outside the boundary of New Zealand. Promotion- Promotion involve all the activities that are important for placing the product in the market and known to the user (Huang Sarigll, (2014). Newman Apparel should promote their product with attractive advertisement to make their business famous and to increase their profit and customer base. Strategic Marketing implementation and control Implementation In the process of strategic marketing implementation phase business should concentrate and make sure that the use of all the business resources such as human, capital and marketing should be efficient. Assortment of the strategy has an important influence on the preceding working of the company, since its administrative structure need to be flexible to strategy. Effectiveness of the Strategic marketing is mostly depends on the executive leadership level of involvement in the marketing task implementation (West, Ford Ibrahim, 2015). Behavior, attitude and skills of the staff are the factors considered very important for the implementation of the strategic marketing. Factors on which quality of management depends are- Involvement of the top management in the process of planning. It is important for the business for smooth functioning of the business and for its success. It is very important to have a good coordination between the different units of the business or organization. The flow of communication must be smooth and information should transfer vertical and horizontal way. The selection of the personnel in the business should be done properly as they are the resource of the business. Besides this, training and evaluation process of the staff should be effective. Resources of the organization such as methods of management, building of the business, IT system must be managed properly. The incentive plans of the business must be attractive that can motivate the employees of the business to work hard and give their best in achieving the objectives of the business. The relation between the different units of the business should be effective which that are part of the organizational structure. Control Control is another important aspect of the process of Strategic Marketing. The important points of the control phase are- Indicators value- Value indicators must be set properly as they observe and measure the performance of the business and even control its performance. For example- Stock rotation, market share and sales volume. Tolerance range- The control phase also depends on defining the tolerance ranges from scheduled standards. Measurement- Value indicators such as stock rotation, market share and sales volume must be measured. Comparison- Comparison of scheduled standards, to define deviations and provide clarification of their roots. Eliminate the deviations- Preparation of applications to remove the identified deviations or modification of values of indicators. Conclusion This report is based on the strategic marketing plan of Newman Apparels of New Zealand. It is an online based shopping website that sells only gym wears. Strategic marketing is created for reaching the customers and to increase the market share of the business. Marketing analysis has been done to identify the Strength, weaknesses, opportunities and threat of the Newman Apparel. Further, Blue Ocean Strategy and its tools such as value innovation, strategic canvas and ERRC grid is explained in this report as it provide assistance to business and will help Newman Apparel to increase their business. Marketing and company resources will help Newman Apparel for its success. In addition to this, marketing mix shows that Newman Apparel should focus on promoting their products and increasing the market share by delivering their product outside New Zealand. Therefore, Implementation and control of strategic marketing should involve the participation of all the unit of the business as it will l ead to the development of the Newman Apparel business. References Alamoudi, R. H., Alandijany, B. A. (2017). Developing a Framework for Entrepreneurs to Transform Their Ideas into Businesses: A Case Study in the Food Sector. American Journal of Industrial and Business Management, 7(04), 444. Birajdar, G. K., Mankar, V. H. (2017). Blind image forensics using reciprocal singular value curve based local statistical features. Multimedia Tools and Applications, 1-23. Chuang, S. H., Lin, H. N. (2017). Performance implications of information-value offering in e-service systems: Examining the resource-based perspective and innovation strategy. The Journal of Strategic Information Systems, 26(1), 22-38. Egypt Innovate. (2015). ERRC GRID - BLUE OCEAN STRATEGY. Retrieved from: https://egyptinnovate.com/en/%D8%A3%D8%AF%D9%88%D8%A7%D8%AA-%D8%A7%D9%84%D8%A7%D8%A8%D8%AA%D9%83%D8%A7%D8%B1/errc-grid-blue-ocean-strategy Fan, S., Lau, R. Y., Zhao, J. L. (2015). Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), 28-32. Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge university press. Gander, J. (2017). Strategic analysis: a creative and cultural industries perspective. Taylor Francis. Huang, R., Sarigll, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors, (pp. 113-132). Springer New York. Kim, M. S. (2016). A Techno-Economic Analysis with Blue Ocean Strategy for New Technology: Case of an RFID System. Journal of Emerging Issues in Economics, Finance and Banking, 5(2). 1912-1921. Kim, W. C., Mauborgne, R. A. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard business review Press. Lv, Y. (2017). The Business Model Study on Red Collar Group: Based on the Perspective of Blue Ocean Strategy. Chinese Studies, 6(02), 123. Newman Apparel. (2017). Shop our classic collection. Retrieved from: https://newmanapparel.net/ Ng, A. H. H., Lau, D. H. C., Ismail, W. K. W. (2014). Adoption of focus group and policy Delphi to blue ocean strategy: a proposed conceptual model. International Journal of Management and Enterprise Development, 13(2), 130-146. Patil, D. D., Bach, C. (2017). Marketing-Mix For Strategy Building. Marketing, 4(4). Pestle analysis. (2015). What is Marketing Analysis? Retrieved from: https://pestleanalysis.com/what-is-marketing-analysis/ Sok, P., O'Cass, A., Miles, M. P. (2016). The performance advantages for SMEs of product innovation and marketing resourcecapability complementarity in emerging economies. Journal of Small Business Management, 54(3), 805-826. Tech Target. (2017). SWOT analysis. Retrieved from: https://searchcio.techtarget.com/definition/SWOT-analysis-strengths-weaknesses-opportunities-and-threats-analysis The Economic Times. (2017). Definition of Marketing Mix. Retrieved from: https://economictimes.indiatimes.com/definition/marketing-mix Tracogna, A. (2017). Value Innovation and Blue Oceans. Retrieved from: https://deams.units.it/sites/deams.units.it/files/VALUE%20INNOVATION.pdf West, D. C., Ford, J., Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press, USA.