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MKT500197VA016-1188-001 - MARKETING MANAGEMENT
Assignment 1 – Part A: Your Marketing Plan (200 pts) Dexter Johnson on Sat, Oct 20 2018, 11:02 PM
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Week 3 MKT MarketingPlan Assignment (3).docx
Running head: PART A: 1 MARKETING PLAN YOUR COMPANY NAME 1
11
PART A: MARKETING PLAN 10
Part A: 1 ROYAL APPARELS MARKETING PLAN DEXTER JOHNSON MKT500
MARKETING MANAGEMENT STRAYER UNIVERSITY DR. Victoria Hailey October 17,
2018
Introduction Royal Clothing Company was founded in 2010 by entrepreneurs Paul Scott and Allen
Biscott. Scott has a master’s degree in marketing and over 10 years as a marketing executive, having
worked for various leading textile companies in the United States and Canada. Biscott is an aspiring
entrepreneur with a master’s degree in business administration and 5 years working experience in
the textile industry. 2 SCOTT AND BISCOTT DECIDED TO DEVELOP AS WELL AS
MARKET A LINE OF WOMEN AND MEN CLOTHING WITH UNIQUE AND
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UNIVERSAL APPEAL TO THE OUTDOOR ENTHUSIASTS. 3 THE ORGANIZATION’S
ORIGINAL FLEECE JACKETS, COTTON T-SHIRTS AS WELL AS BASEBALL CAPS
BEAR LOGOS OF VARIOUS SPORTING ACTIVITIES LIKE KAYAKING, BICYCLING,
HORSEBACK, SURFING, MOUNTAIN CLIMBING PLUS SKATING. 4 MOREOVER,
EVERY ITEM HAS THE ORGANIZATION’S SLOGAN, “LET’S PLAY OUTSIDE.” THE
COMPANY SELLS BOTH MEN’S AND WOMEN’S CLOTHING, IN THE COOLEST
COLORS AND NAMES LIKE SUNRISE PINK, TWILIGHT PURPLE, CACTUS GREEN,
MOUNTAINTOP WHITE, RIVER ROCK GRAY, DESERT ROSE, OCEAN BLUE PLUS
SUNSET RED. Currently, there are many small retail outlets specializing in outdoor clothing
carrying out the company’s attire. Most of the retail stores are located in New Jersey, New York and
California.
3 MISSION STATEMENT ROYAL CLOTHING COMPANY’S MISSION IS TO BE
LEADING MANUFACTURER AND MARKETER OF CASUAL CLOTHING CUSTOMERS
WHO LOVE OUTDOOR ACTIVITIES. The company wants to inspire people to enjoy outdoor
activities with friends and family members. Moreover, the company strives at designing programs
that preserve the natural environment.
Goals This section indicates highlights Royal Clothing Company’s short-term goals, especially for
the next 1 year and long-term goals for the next 5 years Short Term · To increase the company’s
market share by 10 percent in the next 1 year This will be demonstrated by measured by tracking
down the number of new users on the company’s website and social media platforms · To increase
the company’s revenue by 15 percent in the next 1 year This will be demonstrated by an increase in
the company’s product adoption and retention rate relative to the market trends Long Term · To
increase the company’s production lines by 10 percent in the best 5 years This will be measured by
the new product adoption rates and customer engagement · To increase the company’s profitability
by 25 percent in the next 5 years This will be measured by an increase in the company’s profit
margins relative to the industry’s performance Environmental Analysis Several environmental
trends are likely to affect the apparel industry. Global warming and climatic changes are likely to
affect the clothing industry in the future. Catastrophic events such as droughts, floods and other
unforeseeable events can harm cotton farming and maintenance of production facilities. Therefore,
it is important for Royal Company to be aware of the impacts of Hurricanes and Tornados on the
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company’s operations. Pookulangara and Shepherd (2013) assert that customers are more
concerned environmental pollution and, as such, companies must reduce carbon footprints as well
as incorporate environmental practices in their supply chain systems. Deri (2013) indicates that in
addition to consuming a lot of water and energy, textile industry processes toxic chemicals plus
fertilizers that generate volatile emissions to remain low cost. These are some of the factors that
Royal Company will strive to eliminate to become an environmentally friendly organization.
Competitive Analysis According to Boone and Kurtz (2013) the outdoor retail industry sells nearly 5
billion United States dollars yearly ranging from clothing to sporting equipment. The market has
many players with L.L. 3 BEAN, TIMBERLAND, CABELLO’S, PATAGONIA, REI AS
WELL AS BAS PRO SHOPS AS SOME OF THE MOST RECOGNIZABLE FIRMS
OFFERING OUTDOOR CLOTHING PRODUCTS. 4 SMALLER BUSINESSES LIKE
RAGGED MOUNTAIN, WHICH SPECIALIZES IN FLEECE CLOTHING FOR HIKERS
AND TITLE IX, WHICH SPECIALIZES IN ATHLETIC CLOTHING FOR WOMEN, ALSO
CONTROL A SIZEABLE MARKET SHARE. The outlook for Royal Clothing looks positive
because of various reasons. 1 FIRST, THE CONSUMERS ARE PARTICIPATING AND
INVESTING IN RECREATIONAL ACTIVITIES NEAR THEIR HOME AREAS. 4
SECOND, CONSUMERS ARE SEARCHING FOR SUITABLE WAYS TO SPEND AND
ENJOY THEIR LEISURE TIME WITH FAMILY MEMBERS PLUS FRIENDS WITHOUT
OVERSPENDING. 1 MOREOVER, MANY CONSUMERS ARE GAINING
CONFIDENCE IN THE COUNTRY’S ECONOMIC SITUATION AND ARE ABLE AS
WELL AS WILLING TO SPEND MORE.
5 WHILE MANY OF THE COMPANIES ARE CONSIDERED AS COMPETITORS,
NONE OF THEM OFFERS TRENDY AND PRACTICAL PRODUCTS PRODUCED BY
ROYAL CLOTHING- AND NONE CARRIES CUSTOMIZED LOGOS PLUS SLOGANS
THAT ROYAL CLOTHING PLANS TO INTRODUCE IN THE NEAR FUTURE. Also, many
of the competitors offer performance apparels produced from high tech manufactured fabrics.
Apart from fleece clothing, Royal Clothing products are manufactured from the highest quality
cotton which makes them conducive for hiking activities.
Economic Analysis There are various economic factors affecting firms in the apparel industry today
and are more likely to have massive impact in the future. One of these factors is the disposable
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income of American households, which implies that consumers are left with some money to buy
outdoor clothing. However, a decrease in employment rates due to economic downturns may
negatively affect the industry because less people are more likely to spend their money on outdoor
clothing and equipment. This may affect retail outlets’ strategies because their average spending
per customer continues to rise while the total number of customers is declining.
Even so, the global economy including that of the United States has strengthened and the European
Commission indicates that the fashion industry has continued to grow at 10 percent since 2011
(OECD, 2013). 6 REMY ET AL. (2013) even expect that the global apparel market, particularly,
for women to increase by 50 percent up to 2025. This is driven by the massive growth of emerging
markets, which will account for 50 percent of the world’s gross domestic product growth by 2025.
For this reason, mature as well as emerging markets are all important and the internationalization
of the apparel brands provides even a bigger opportunity.
Political and Legal Analysis From the political perspective, the United States is a politically stable
country which is good for business operations. Even so, companies must oblige by some legal
environment including employment laws, tax guidelines, safety regulations and trade regulations.
With regards to employment laws, the federal laws specify working hours per week as 40 hours and
the minimum wage per hour as 9.19 dollars. Also, the employment law forbids discrimination of
workers on the basis of race, color, religious affiliation, political affiliation, age, sex and physical
disability. The safety laws require employers to provide employees with safe working environment
including provision of protective clothing if working in dangerous areas. All companies must also
pay the applicable federal corporate taxes and state taxes based on the net income (Powell &
DiMaggio, 2012).
Technological Analysis Nenni, Giustiniano and Pirolo (2013) find that the clothing industry is
always subject to technological changes, which influence the way companies produce, supply and
deliver apparel products to the consumers. The emergence of the Internet plus the improvement in
information communication technologies has not only facilitated, but also accelerated information
flow of the latest trends as well as brands from consumers to producers. This has enabled
businesses to respond very fast to the market impulses. In turn, Rinnebach and Ritcher (2014)
assert that technological advancements have increased consumer demand for the latest trends as
the media continues to update people about the latest trends. 6 BESIDES, THE INCREASE IN
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MULTICHANNEL CUSTOMERS HAS OPENED UP LOW COST MARKETING OPTIONS
FOR PRODUCERS AND RETAILERS THROUGH CORPORATE WEBSITE AND
SOCIAL MEDIA PLATFORMS (RINNEBACH & RITCHER, 2014).
Socio-cultural Forces Analysis The apparel industry is, inarguably, one of the industries affected
socio-cultural trends. For instance, the Organisation for Economic Co-operation and Development
(2013) indicates that the world population, including the United States has been aging for the last
decade and this may result in threat for firms that mainly focus on production and marketing of
teenage apparel products because of the shrinking market segment. In addition, Chaturvedi et al.
(2013) point out that there is an increasing demand for convenient shopping experience,
particularly during this period when individuals are more career-seeking with less time left for
leisure and shopping activities. This may adversely affect the industry’s sales potential. The other
social trend is that many customers are more concerned about their health as evidenced by the
increase in household and individual health expenses over the past 10 years (OECD, 2011). This
may lead to customer interest in the materials a company uses to produce clothing, their origin as
well as processing methods.
SWOT and Needs Analysis Royal Clothing Company’s market environment presents opportunities
and some challenges the organization believes it can successfully handle. 2 TABLE 1
ILLUSTRATES ROYAL CLOTHING’S SWOT ANALYSIS AS CARRIED OUT BY THE
OWNERS TO DETERMINE ITS STRENGTHS, WEAKNESSES, OPPORTUNITIES AND
THREATS.
Table 1 SWOT Analysis Strengths · Dedicated and experienced founders · Strong financial position ·
Effective distribution network Weaknesses · Lose the scope of the business · Few customers aware
of Royal Company · Reliance on single manufacturer
Opportunities · Potential to cross sell · Unexplored marketing opportunities · Ability to increase
online sales Threats · Intense rivalry from big companies · Stagnant sales for the past years ·
Deteriorating relationship with retailers
Note: 1 STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS FOR
ROYAL CLOTHING COMPANY.
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Strengths Royal Clothing Company’s founders are not only dedicated, but also understand the
target market needs and the product. Second, the company boasts of a strong financial position
with limited debts which is good for business growth. Moreover, the company has a strong
distribution network in several markets for quick product and service delivery.
Weaknesses Royal Company’s founders may lose focus on the potential scope of the business and
this may negatively affect product quality. Also, a limited number of people are aware about the
company and its products and this may affect the company’s sales potential and profitability.
Finally, the business relies on a single manufacturer which may limit the company’s production
capacity as it seeks to expand its operations.
Opportunities The company can cross sell some of the existing product to the existing loyal
customers. Second, there are untapped areas in the market like production of customized clothing
and product items. Finally, the company can increase its online sales via social media platforms and
the company’s website.
Threats Large competitors like Timberland and REI still control a bigger market share and have the
financial muscle to introduce new product line. Clothing sales across the nation have remained
stagnant for the past few years and this may affect the company’s profitability. The company’s
relationship with retailers may deteriorate due to intense internal rivalry in the form of online sales.
Conclusion In conclusion, Royal Clothing Company intends to increase its market share and
revenue by 10 percent and 15 percent respectively in the next 1 year. In the long term, the company
wants to increase its production line by 10 percent and profitability by 25 percent in the next 5
years. The company relies on its strengths particularly financial wellbeing and strong distribution
network to realize its short-term goals and objectives. Also, the economic environment and
technological environment provide a ray of hope toward realization of the company’s goals. In
particular, the economic environment analysis indicates that apparel market, particularly, for
women is likely to increase by 50 percent up to 2025.
References Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Boston, MA: Cengage
learning.
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Chaturvedi, N., Martich, M., Ruwadi, B. & Ulker, N. (2013). The future of retail supply chains. In
operations as a competitive advantage in retail, (p. 59-67). Retrieved from
http://www.mckinsey.com/client_service/retail/latest_thinking Déri, E. (2013). Challenges of
environmental and social responsibility in the fashion industry. Retrieved from. http://www.diva-
portal.org/smash/record.jsf?pid=diva2:630384 Nenni, M. 6 E., GIUSTINIANO, L., &
PIROLO, L. (2013). 6 DEMAND FORECASTING IN THE FASHION INDUSTRY: A
review. 6 INTERNATIONAL JOURNAL OF ENGINEERING BUSINESS
MANAGEMENT, 5(37), 1-6.
7 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT. (2011).
Health: 6 SPENDING CONTINUES TO OUTPACE ECONOMIC GROWTH IN MOST
OECD COUNTRIES. 8 RETRIEVED FROM
HTTP://WWW.OECD.ORG/NEWSROOM/HEALTHSPENDINGCONTINUESTOOUTPA
CEECONOMICGROWTHINMOS TOECDCOUNTRIES.HTM ORGANISATION FOR
ECONOMIC CO-OPERATION AND DEVELOPMENT. (2013). 6 OECD FACTBOOK
2013: ECONOMIC, ENVIRONMENTAL AND SOCIAL STATISTICS: ELDERLY
POPULATION BY REGION. RETRIEVED FROM HTTP://WWW.OECD-
ILIBRARY.ORG/SITES/FACTBOOK-2013- EN/01/01/05/INDEX.HTML?
ITEMID=/CONTENT/CHAPTER/FACTBOOK-2013-5-EN POOKULANGARA, S., &
SHEPHARD, A. (2013). 6 SLOW FASHION MOVEMENT: UNDERSTANDING
CONSUMER PERCEPTIONS - AN EXPLORATORY STUDY. JOURNAL OF RETAILING
AND CONSUMER SERVICES, 20(2), 200-206.
Powell, W. W., & DiMaggio, P. J. (Eds.). (2012). The new institutionalism in organizational
analysis. Chicago, IL: University of Chicago Press.
Remy, N., Schmidt, J., Werner, C. & Lu, M. (2013). Unleashing fashion. Growth city by city.
McKinsey & Company.
Rinnebach, P., & Richter, S. N. (2014). 6 REDEFINING FASHION BUSINESS MODELS:
TODAY’S CHALLENGES, TOMORROW’S COMPETITIVE EDGE. RETRIEVED FROM
HTTP://WWW.KURTSALMON.COM/UPLOADS/WP%202014_02_BUSINESS%20OP
ERATING%20MODE L_FINAL.PDF
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Citations (8/8)
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MARKETING PLAN YOUR COMPANY NAME 1
Source - Another student's paper MARKETING PLAN YOUR COMPANY NAME 1
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ROYAL APPARELS MARKETING PLAN DEXTER JOHNSON MKT500 MARKETING MANAGEMENT STRAYER UNIVERSITY DR
Source - Another student's paper Marketing Plan Mohammad Javaid MKT500 Marketing Management Strayer University Dr
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FIRST, THE CONSUMERS ARE PARTICIPATING AND INVESTING IN RECREATIONAL ACTIVITIES NEAR THEIR HOME AREAS
First, consumers are participating in and investing in recreational activities that are near to their homes
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MOREOVER, MANY CONSUMERS ARE GAINING CONFIDENCE IN THE COUNTRY’S ECONOMIC SITUATION AND ARE ABLE AS WELL AS WILLING TO SPEND MORE
Source - Another student's paper Third, consumers are gaining more confidence in the economy and are willing and able to spend more
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STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS FOR ROYAL CLOTHING COMPANY
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SCOTT AND BISCOTT DECIDED TO DEVELOP AS WELL AS MARKET A LINE OF WOMEN AND MEN CLOTHING WITH UNIQUE AND UNIVERSAL APPEAL TO THE OUTDOOR ENTHUSIASTS
Source - Another student's paper Manzur and Sabbir, who have been friends since college, decided to develop and market a line of clothing with a unique—yet universal—appeal to outdoor enthusiasts
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TABLE 1 ILLUSTRATES ROYAL CLOTHING’S SWOT ANALYSIS AS CARRIED OUT BY THE OWNERS TO DETERMINE ITS STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Source - Another student's paper Table A illustrates a SWOT analysis of the company conducted by marketers to highlight Best Quality Clothing’s strengths, weaknesses, opportunities, and threats
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THE ORGANIZATION’S ORIGINAL FLEECE JACKETS, COTTON T-SHIRTS AS WELL AS BASEBALL CAPS BEAR LOGOS OF VARIOUS SPORTING ACTIVITIES LIKE KAYAKING, BICYCLING, HORSEBACK, SURFING, MOUNTAIN CLIMBING PLUS SKATING
Source - Another student's paper The company’s original cotton T-shirts, baseball caps, and fleece jackets and vests bear logos of different sports—such as kayaking, mountain climbing, bicycling, skating, surfing, and horseback riding
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MISSION STATEMENT ROYAL CLOTHING COMPANY’S MISSION IS TO BE LEADING MANUFACTURER AND MARKETER OF CASUAL CLOTHING CUSTOMERS WHO LOVE OUTDOOR ACTIVITIES
Source - Another student's paper Mission Statement Javaid Clothing Inc’s mission is to be the leading producer and marketer of personalized, casual clothing for consumers who love the outdoors
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BEAN, TIMBERLAND, CABELLO’S, PATAGONIA, REI AS WELL AS BAS PRO SHOPS AS SOME OF THE MOST RECOGNIZABLE FIRMS OFFERING OUTDOOR CLOTHING PRODUCTS
Source - Another student's paper Bean, REI, Timberland, Bass Pro Shops, Cabello’s, and Patagonia are among the most recognizable companies that offer these products
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MOREOVER, EVERY ITEM HAS THE ORGANIZATION’S SLOGAN, “LET’S PLAY OUTSIDE.” THE COMPANY SELLS BOTH MEN’S AND WOMEN’S CLOTHING, IN THE COOLEST COLORS AND NAMES LIKE SUNRISE PINK, TWILIGHT PURPLE, CACTUS
Source - Another student's paper “Go Play Outside.” Blue Sky sells clothing for both men and women, in the hottest colors with the coolest names —such as sunrise pink, sunset red, twilight purple, desert rose, cactus green, ocean blue, mountaintop white, and river rock gray
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GREEN, MOUNTAINTOP WHITE, RIVER ROCK GRAY, DESERT ROSE, OCEAN BLUE PLUS SUNSET RED
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SMALLER BUSINESSES LIKE RAGGED MOUNTAIN, WHICH SPECIALIZES IN FLEECE CLOTHING FOR HIKERS AND TITLE IX, WHICH SPECIALIZES IN ATHLETIC CLOTHING FOR WOMEN, ALSO CONTROL A SIZEABLE MARKET SHARE
Source - Another student's paper Smaller competitors such as Title IX, which offers athletic clothing for women, and Ragged Mountain, which sells fleece clothing for skiers and hikers, also grab some of the market
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SECOND, CONSUMERS ARE SEARCHING FOR SUITABLE WAYS TO SPEND AND ENJOY THEIR LEISURE TIME WITH FAMILY MEMBERS PLUS FRIENDS WITHOUT OVERSPENDING
Source - Another student's paper Second, consumers are looking for ways to enjoy their leisure time with friends and family without overspending
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WHILE MANY OF THE COMPANIES ARE CONSIDERED AS COMPETITORS, NONE OF THEM OFFERS TRENDY AND PRACTICAL PRODUCTS PRODUCED BY ROYAL CLOTHING- AND NONE CARRIES CUSTOMIZED LOGOS PLUS SLOGANS THAT ROYAL CLOTHING PLANS TO INTRODUCE IN THE NEAR FUTURE
Source - Another student's paper While all of the companies listed earlier can be considered competitors, none offers the kind of trendy, yet practical products provided by Starbucks—and none carries the customized logos and slogans that Starbucks pans to offer in the near future
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Source - Another student's paper gases (Remy et al., 2016)
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REMY ET AL
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BESIDES, THE INCREASE IN MULTICHANNEL CUSTOMERS HAS OPENED UP LOW COST MARKETING OPTIONS FOR PRODUCERS AND RETAILERS THROUGH CORPORATE WEBSITE AND SOCIAL MEDIA PLATFORMS (RINNEBACH & RITCHER, 2014)
Source - Another student's paper 2014) has opened up low-cost advertising and marketing options for retailers through social media
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E., GIUSTINIANO, L., & PIROLO, L
Source - Another student's paper E., Giustiniano, L., & Pirolo, L
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DEMAND FORECASTING IN THE FASHION INDUSTRY
Source - Another student's paper Demand forecasting in the fashion industry
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INTERNATIONAL JOURNAL OF ENGINEERING BUSINESS MANAGEMENT, 5(37), 1-6
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SPENDING CONTINUES TO OUTPACE ECONOMIC GROWTH IN MOST OECD COUNTRIES
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OECD FACTBOOK 2013
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ECONOMIC, ENVIRONMENTAL AND SOCIAL STATISTICS
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ELDERLY POPULATION BY REGION
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RETRIEVED FROM HTTP://WWW.OECD- ILIBRARY.ORG/SITES/FACTBOOK-2013- EN/01/01/05/INDEX.HTML? ITEMID=/CONTENT/CHAPTER/FACTBOOK-2013-5-EN POOKULANGARA, S., & SHEPHARD, A
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SLOW FASHION MOVEMENT
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UNDERSTANDING CONSUMER PERCEPTIONS - AN EXPLORATORY STUDY
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JOURNAL OF RETAILING AND CONSUMER SERVICES, 20(2), 200-206
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REDEFINING FASHION BUSINESS MODELS
Source - Another student's paper Redefining Fashion Business Models
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TODAY’S CHALLENGES, TOMORROW’S COMPETITIVE EDGE
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RETRIEVED FROM HTTP://WWW.KURTSALMON.COM/UPLOADS/WP%20 2014_02_BUSINESS%20OPERATING%20MODE L_FINAL.PDF
Source - Another student's paper Retrieved from http://www.kurtsalmon.com/uploads/WP%202014_02_Bu si
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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
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Suspected Entry: 68% match
Uploaded - Week 3 MKT MarketingPlan Assignment (3).docx
RETRIEVED FROM HTTP://WWW.OECD.ORG/NEWSROOM/HEALTHSPEN DINGCONTINUESTOOUTPACEECONOMICGROWTHI NMOS TOECDCOUNTRIES.HTM ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
Source - Another student's paper Retrieved from http://www.internetworldstats.com/asia/tp.htm Organisation for Economic Co-Operation and Development
