Assignment 1: Marketing Presentation

Preliminary International Marketing Report: Brand Promotion

BUS433 | International Marketing

Marquita Watkins

Argosy University – Online

August 8, 2018

Introduction

I am currently the consultant for Trukfit Clothing Enterprises who are responsible for the distribution of specialized/work-based clothing to various markets. The company itself specializes in manufacturing clothes suited for a particular profession or task. For instance, the company supplies to factory workers who are in need of specialized overalls and boots, additionally, the company also construction clothes to construction workers and so forth. The company is currently contemplating the possibility of expanding to the U.S market. As the consultant, I need to undergo intense research on the factors that need to be wholly considered when expanding into a foreign market. Proper analysis of the factors in question will be crucial if the company is to successfully penetrate the market. Failure is by all means, not an option.

Relevant and Applicable Theories

Thorough research into the market has revealed that the company needs to take into consideration some prominent marketing concepts, which are crucial for success. The following is a compilation of some of the most important marketing concepts that need to be taken into great consideration.

Market segmentation, as the term suggests, refers to the complete specialization of market demand based on the different tastes and requirements sported by specified individuals (Heakal, 2017). For instance, as per the clothing market, there are some groups who prefer sporting attire and clothes while there is a group, which prefers official wear in the likes of suits, ties and such. In such a scenario, the individual market is segmented into two groups, those that prefer sporting clothes and those, which prefer official wear. Additionally, it is important to note that overlapping across different segments often happens. For example, a person might prefer both sports clothes and official wear. In some scenarios, overlapping is not common or is even unheard of, for instance, men, in most cases, do not prefer women’s clothing. In light of the above, segmentation is often based on a number of factors including, income, age, sex, occupation, social styles and even lifestyles to some extent (Heakal, 2017). Overall consumer behavior is the main indicator of segmentation within a particular market. For Trukfit to be able to expand into the U.S market, it needs to learn about the consumer behavior that is present at the region. The company needs to know the overall tastes and preferences of workers and organizations within the region.

Segmentation will help the organization to identify the target segments. The above activities will help in marketing products to that specified segment of consumers. For instance, the company cannot market their products to homes and settlements since there is likely to be a net less demand for the products there. Additionally, learning segmentation is important since it helps the organization develop resource capabilities and in the design of value for consumers and stakeholders (Burgess, 2010). In light of the above, developing marketing segments is an important task since it prevents wastage of resources, which is done when goods are marketed to the wrong segments of consumers. One should hence be fully aware of consumer needs and wants during marketing hence segmentation is an overall important task.

Prior to identifying the target market, or the segment which the goods will be wholly marketed to, the next and most important step is to establish the marketing strategies which will be used to market the goods to the target segment. The strategies used usually follow a single marketing mix. Examples of marketing strategies include the Concentrated Global Marketing Plan, which involves targeting a specified niche in the market. It basically involves thorough specialization and manufacture of goods exclusively for a specified group in the market. Trukfit, as a company, may wholly benefit from such a strategy since they target the factory worker niche of the market (Burgess, 2010). The efforts made should be thoroughly directed to large prominent organizations and factories where factory-based processing/manufacturing are thoroughly done on a day-to-day basis. Such a strategy is crucial for the preservation of organization resources while at the same time getting a significant number of gains.

Standardized marketing strategy involves targeting many niches and marketing segments at once. The overall benefit of using the standardized marketing strategy is that awareness is spread to a large group of individuals within a significantly short amount of time. Such a marketing strategy will, however, prove to be not useful as per Truckfit standards. The organization is wholly focused on manufacturing goods for a highly specialized consumer segment; it would not make sense to target individuals who are not in need of the product they are selling. If Trukfit had been a general clothes shop, using the Standardized Marketing Strategy would actually make more sense.

Competition is also a very important theoretical element, which one needs to take into full account. Competition is present when there is the existence of a supplier who deals with similar goods offered by the company (Fan et al., 2015). In Trukfit’s case, the competition will primarily consist of organizations, which manufacture and distribute industrial garments and accessories. Competition is more severe if the existing company currently holds a larger share of the existing market and it has already established itself as the recognized brand image all around.

The reason as to why competition exists between two or more manufacturers is the fact that they all strive to appeal to the same segment of consumers. Since the primary goal of various businesses is to increase profit while minimizing expenditure, they need to sell goods to the largest number of consumers possible. In a scenario where two or more manufacturers strive to achieve the primary goal for their business, competition is bound to occur (Fan et al., 2015). In such cases, the manufactures should strive to be more appealing to the consumers and deliver the best services and thus become the more preferred brand compared to their competitors. Competition with a company with over 80% market share is often futile and leads to wastage of resources. To put the above idea into perspective, imagine a newly formed soft drink company attempting to compete with Coca-Cola or Pepsi. It is often unwise to compete with monopolistic brands. Instead, one should strive to form partnerships with such brands and therefore make use of their resources to further expand the business in question.

Stakeholders should try as much as possible to eliminate the existence of perfect competition within the region. They should strive to ensure that their goods are not always a replica of the existing products, but a far more superior version. The problem with investing in the United States is the fact that a large number of their industries are already established and they currently hold a significant amount of the market value (Fan et al., 2015). By convention, this problem is existent when one intends to invest in an already existent first world country. Engaging in acts such as brand marketing and awareness can do wonders in marketing. After the population has been made aware of the goods and services offered, the next phase is to deliver products that actually cater to a large number of their needs. Such acts require a large degree of capital investment but it is worth it in the end.

The final theoretical element, which is crucial if the company intends to expand to foreign markets, is the product design and packaging elements. The company should be able to design and package the product in a manner that will be appealing to the targeted segment. The product packaging and design should be unique in a manner that does not draw attention to the already existing brands in the market. The packaging and labeling should promise quality to the consumer and the company should go on to deliver on that promise by supplying quality goods to the consumers. Labeling very crucial since it often corresponds to the brand image of the organization (Fan et al., 2015). Goods should be appropriately labeled based on prevailing circumstances since it is also an advertising feature to some extent. Conclusively, the packaging and product design add to the tangibility and attractiveness of the products hence they should be taken into account. They strengthen the overall brand image and serve to attract customers.

Other important elements, which need to be considered, include competition between the already existing suppliers, the need of the product in the already targeted market and finally the different types of competition that are already existent in the overall market.

Relevant Components of Trade between Home Country and the U.S

Companies that intend to expand into foreign borders need to be thoroughly aware of the laws that govern the trade regulations of the land. In such a scenario, a PESTLE analysis is very crucial since it provides a rough overview of important Political, Economical and Social elements that form part of the target country’s business environment (Fan et al., 2015). The laws, in general, may be conducive for business expansion into the region or they may be generally unconducive. Generally, unconducive reasons, which may hinder expansion into the target country, include high revenue tax, which is a portion of income paid to the country’s government in order to facilitate business activities. The regulations may also move on to affect the means through which goods are generally advertised to the public. Some countries offer exceedingly strict policies, which restrict the use of certain terms or even featuring copyright material in advertisements.

In order for one to fully adjust to the market, which is being expanded to, one needs to take into through account, a number of factors which pertain to the trade regulations of the target country. Trade agreements are crucial for proper expansion since it displays the terms and conditions between the two countries which need to trade (Keegan & Green, 2015). Trade agreements are generally implemented for the sole purpose of regulating, the trade of goods and services and the general flow of goods across various platforms. Prominent American bodies, which are in charge of regulating trade between various bodies, include the General Agreement on Tariffs and Trade (GATT) and the North America Free Trade Agreement (NAFTA). The GATT ensures a multilateral trade agreement, which promotes nondiscrimination and multilateral trade across various platforms. In order for one to trade within the United States, he or she needs to register with both of the two bodies, which will, in turn, carry out an audit test on the company and test the goods themselves to verify authenticity (Keegan & Green, 2015). Once the organization has been fully authenticated, it needs to agree with the trading terms offered by the United States before trading and expansion can actually commence. It is important to note that the above explanation is only a summary of the process. The entire intricate process usually involves a series of steps and it takes a significant amount of time to compete.

The United States is characterized by a western cultural background, which, in general, hosts a large number of different cultures races and ethnic societies. The United States is a mixture of numerous cultures hence the customer segmentation is harder to specialize (Law, 2016). Regulations that govern trade in the region mainly cover aspects such as import tariffs, trade barriers (The restriction as to which type of goods are allowed to enter into the states and which are not.), documentation, export controls and many others are present in order to restrict unfair trade practices. For a country to expand into the United States, they need to agree with the policies listed above. It is important to note that the policies greatly encourage foreign trade within the country hence the United States is a hot investment option (Law, 2016). The only reason as to why people may refrain from investing in it, as a country is the fact that it is already at the brink of development hence there are a variety of industries that produce local products from the country. Places that are developing or that are currently under development form the best development options. They include third world countries and such.

To summarize, investment into the region requires agreement to the state laws and regulations governing the distribution of goods and services within the country and pass through the international trade bodies, which will assess the overall authenticity of the company and move on to process documents that are needed for proper expansion.

Rational

There is a specified rational in the company’s decision to choose to expand into the United States. The market, as already described above, is large and very conducive to external traders who wish to wholly invest in the country. Prior to penetrating and making their way to the U.S market, prominent investors have found it to be wiser to actually maintain shares and relations within the market (Heakal, 2017). Further research has indicated that companies are able to pinnacles of commercial success if they present a strong product that speaks for itself and generally outshines the competition by a large number of factors. Additionally, investors also thrive in the United States when they develop a comprehensive marketing strategy and finally enact a strong distribution and sales network all throughout the region. In general, investors should always ensure they have the upper hand while investing in an already established market such as the United States.

In terms of positioning, Truckfit has a variety of different products, which satisfy different roles all around the manufacturing plant. The attire offered by the company may also appeal to casual garden workers, masons and so forth. As already described above, the most important theoretical aspect, which will be considered while penetrating the market, will be the means through which the goods will be marketed to consumers. Individuals need to be aware that Trukfit’s goods are available in the market and they need to learn the various means, which they may get access to them. Additionally, the consumers need to know Trukfit’s products are better than the already existing competition’s products. In light of the above, the company needs a solid marketing mix, which will help them achieve awareness. Popular awareness forums in the likes of Facebook, Twitter, and other popular social media platforms should be extensively used to ensure proper awareness. Most marketing initiatives should, however, be focused solely on the target segmentation of factory workers and manufacturing/processing organizations. Selling unique and forms of the factory clothing will allow the organization to have a unique signature and thus will be wholly preferred compared to other organizations (Burgess, 2010).

Developing a Brand Strategy

Developing a brand strategy is crucial since it will help the company in the establishment of products within the United States. Branding, as already described above is very crucial since the brand is more often than not, a depiction of the company’s image. Strategies, which may be used to ensure the brand brings out an overall positive company image, include attitude branding, multigrading, nation branding and introducing brand extensions. Attitude branding can drive on the idea that the consumer is a human being and he or she deserves to be treated like one. The consumer will hence be able to perceive the idea that the organization exists only to satisfy human needs. Additionally, brand extension will also market the various industrious implements, which the organization offers such as gas masks, fire extinguishers and so forth. It is important to note that the main emphasis will be laid on the factory worker clothes and accessories.

In most scenarios, it is important to note that already existing competition can be effectively overcome by establishing a proper brand image of the good or service in question. Truckfit will, therefore, focus on building a strong brand image and appealing to the consumers in their newly founded market (Burgess, 2010). Additionally, marketing should be wholly concentrated on the target segmentation since the goods offered target specified groups of people more than others. Conclusively, proper marketing and the establishment of an increasingly strong brand image is crucial toward the success of Trukfit. In light of the above, such tasks will be paramount as per the establishment process.

Proper penetration into the market requires Trukfit to first take its time to evaluate the prevailing market conditions. It is important to note that in some scenarios, the thorough evaluation may actually reveal that it is not conducive to expand into the United States Market, in light of this; a more suitable expansion option may be sought after. The United States will then be considered for expansion once the organization has grown large enough to overcome the constraints offered by the U. S market. Based on the research undertaken, the United States Market is very conducive for new and foreign businesses. The regulations and policies ensure that the businesses are able to grow within the region. Additionally, they also encourage further investment by already existing investors. The United States market is hence a good place to invest in, although it has its fair share of downfalls. For instance, there are a large number of already existent industries hence investment may lead to an intense amount of competition all throughout.

Conclusion

The businesses that established in the United States some time ago hold a large portion of the market share within the region and hence trying to compete with them may prove in vain in the end. The company hence needs to investigate the factory garment distribution industry very thoroughly in order to actually ascertain whether it would be worthwhile to invest in it (Burgess, 2010). As already described above, the research may actually reveal that there are more plausible options for investment such as Canada which borders the United States at the north and even the currently developing countries that are found in Southern America.

References

Burgess, M. (1996). Rebuilding downtrodden job market and madhouse society. Commack, N.Y: Kroshka Books.

Fan, S., Lau, R. Y., & Zhao, J. L. (2015). Demystifying big data analytics for business intelligence through the lens of the marketing mix. Big Data Research, 2(1), 28-32.

Hamzah, Stefani B., and J. E. Sutanto. "The Role of Marketing Mix (7P) for Consumer Buying Decision Pastry Cake in Malang City." (2016).

Heakal, R. (2017). Economic basics: Monopolies, oligopolies, and perfect competition. Retrieved from http://www.investopedia.com/university/economics/economics6.asp?ad=dirN&qo=investopediaSiteSearch&qsrc=0&o=40186

Keegan, W.J. & Green, M.C. (2015). Global marketing (8th ed.). New York, NY: Pearson Education, Inc. Retrieved from https://digitalbookshelf.argosy.edu/#/books/9781323318447/outline/14!/4/2/20/2/2@0:30.9

Law, J. (2016). A dictionary of business and management. Oxford: Oxford University Press.

Pride, W., Hughes, R. & Kapoor, J. (2014). Business. Mason, OH: South-Western Cengage Learning.