The Auckland-based clothing corporation; Excelsior Clothing which has been selling ranges of clothes to retailers and companies is on its way of introducing online shopping for their merchandise. They plan on selling unique products including special apparel to those sold by their retailers as not to offend them. They have specific products for specific markets, for example, their retail lines meant for fashionable middle to high-income earners, company apparel with inscribed company logo specially designed for each customer vended to medium to big corporations and also a few retailers. The corporation identified the massive influx of international visitors into New Zealand. These visitors seek to walk or tramp on either of New Zealand’s visitors’ destinations thus has decided to implement an online shopping venture called “Great Walking Apparel”.This paper centers itself on this particular product division for Excelsior Clothing and in so doing develops two objectives that should be achieved in the next 6 months. This is a pertinent part of the company since it will set it along with other competitors as well as signify a great deal of income for them. Owing to the fact that alpines excursions require apt clothing, these international customers will be willing to buy Excelsior Clothing’s merchandise will be very profitable. International tourists in New Zealand can be categorized as belonging to the customer segment of high-quality and fashionable clothes clients. In order to accurately measure the marketing and sales objectives of Excelsior Clothing, a measurement system is developed which helps in determining how much has been attained on the profit index.
The Auckland-based clothing corporation; Excelsior Clothing which has been selling ranges of clothes to retailers and companies is on its way of introducing online shopping for their merchandise. They plan on selling unique products including special apparel to those sold by their retailers as not to offend them. They have specific products for specific markets, for example, their retail lines meant for fashionable middle to high-income earners, company apparel with inscribed company logo specially designed for each customer vended to medium to big corporations and also a few retailers. On its consideration of introduction of online shopping, Excelsior Clothing researched on lines that could complement their current offers. The corporation identified the massive influx of international visitors into New Zealand. These visitors seek to walk or tramp on either of New Zealand’s visitors’ destinations (“Tourism,” n.d.). This paper is a report to Management Committee of Excelsior Clothing on situational analysis of this new venture and discusses the choice of the division of merchandise the company needs to deal in including a schedule for objectives for the division.
The international visitors to New Zealand arrive devoid of the requisite safe clothes for the alpine outdoors. This presents an opportunity for online selling for Excelsior Clothing for these tramping visitors since these visitors’ excursion planning such as bookings and researching is done online. Therefore, Excelsior Clothing’s advertisements should be conjoined with those of New Zealand’s tourism sites and the use of specific keywords on search engines to meet the eyes of the inbound visitors (“Tourism,” n.d.). In order to outstand itself from other tours and travel clothing companies within New Zealand which include Kathmandu, Bivouac, as well as MacPac, Excelsior Clothing plans to create brands which are both fashionable and apt for alpine adventure. Excelsior will achieve that by making merino and alpaca-fiber made clothes. This objective was decided on given the high potential of inbound travelers to Australia; this portends high returns for Excelsior Clothing.
The Merino and alpaca-fiber based clothes will be vended under the brand name “Great Walking Apparel”. The sales strategy that has been undertaken is to make them contractually either in China, Malaysia, or the Philippines while a few clothing will be made in Fiji. Ordering should be made 6 months prior to their requirement time and the delivery of the goods is done monthly, but 3 months before the due dates. The pricing negotiations per order are done in form of the US dollars. The payments are arranged in such a way that deposit for an order is half, and the rest paid over 3 months of delivery. Excelsior aims at a total profit of 25 percent of sales excluding base-price and sales-cost (An Emerging Market, 2013). In addition, its policy omits a possibility of making a loss. Despite its robust and profitable decade of business, Excelsior adheres to cash flow never endangering its credit agreement with its bank.
1.2 Target Market
Excelsior Clothing’s target market is inbound international tourists to New Zealand’s tracking and tramping destinations and this call for high-quality and fashionable adventure and tour apparel which is under the umbrella of “Great Walking Apparel”. Owing to the fact that alpines excursions require apt clothing, these international customers will be willing to buy Excelsior Clothing’s merchandise will be very profitable. International tourists in New Zealand can be categorized as belonging to the customer segment of high-quality and fashionable clothes clients since they have high-income and would be willing to pay for expensive kind of clothing to meet their alpine outdoor requirement as well as appear fashionable, and may not only buy for their stay but also buy some to take to their countries (“International brands into NZ,” n.d.). Given the fact that international Tourists make bookings and conduct their researches online, Excelsior Clothing’s online shopping venture in conjunction with tourist sites will not only become a major selling point but also earn the firm a competitive advantage (Adams, n.d.)
1.3 Positioning Strategy
The target market is international visitors perceived to be high-income earners. They need good quality apparels which are both fashionable and appropriate for alpine outdoors. There are other companies which would compete with Excelsior Clothing in the “Great Walking Apparel” which include MacPac, Bivouac, as well as Kathmandu since they offer closely similar products as those of Excelsior. The competitors have a rich history of technological advancement in clothing designs, sales, and delivery teams. This portends a high market competition because of similar products, design, and prices (Zenk, n.d.). The competitors also do online adverts, strategize on price cuts, and produces new merchandise (An Emerging Market, 2013). In order to position itself among the top companies, Excelsior needs to employ the following positioning strategy; use the high-quality fabric of merino and alpaca-fiber wools in making its adventure and fashionable apparel.
The other positioning strategies Excelsior Clothing needs to use include; contract international manufacturers, as well as embed their advertisements on the tourist sites to attract many customers. Since Excelsior Clothing has a good past reputation of profitability, it also stands a good shot in earning the trust of many international visitors who would base their researches online. Auckland is one of New Zealand’s growing cities and a major tourist destination in the country lead by Chinese visitors who are said to buy merchandises that they will take to their country, thus having established its store there; it has a competitive advantage over its competitors (“International brands into NZ,” n.d.). Online shopping venture can be augmented by the recent technological advancements. The products should be innovative to meet the needs of the international visitors as well as raise their curiosity (Zenk, 2017).
1.4 Financials in unit sales
Given the 25 percent target profit in a period of 6 months, then it points at approximately 5% each month for “Great Walking Apparel” to be a feasible venture. The pricing band is uniquely identified for each of the “Great Walking Apparel” in accordance with the market requirements and the competitors’ prices around the normalized price. This is done with respect to factors which include quality and design of the apparel as well as the expectations of the customers (“Forecast and plan your sales,” n.d.). Thus for the “Great Walking Apparel” to be viable, basing on the competitive landscape as well as the quality, the minimum number of unit sales would have to be around the limits of $10 million.
1.5 Program Schedule
|Advertisements||Newspapers, radio, television, magazines, online, and other platforms to make Excelsior Clothing products known||First Month||Sixth Month||$1500.00|
|Direct Marketing||Involves distribution of letters, mails, fliers, and other forms to clients who have shown interest in NZ tourism sites||First||Sixth||$1000.00|
|Publicity||Word of mouth, media statements, dialogs on the Great Walking Apparel||First||Third||$500.00|
|Short-haul Sales Promotion||Putting incentives such as competitions, contests or special sales on the Great Walking Apparel||First||Sixth||$2000.00|
Based on the current New Zealand Promotional costs retrieved from http://apraamcos.co.nz/media/3561/nz_pmratecard2014_final.pdf
1.6 Budget Summary (Estimates of Results)
|Month||Product||Gross Sales ($)||Cost of Sales||Contribution|
|4||Hat and gloves||$50||$46||$4|
Based on competitors’ current prices (“Kathmandu,” n.d.).
1.7 Measurement and Control System
In order to accurately measure the marketing and sales objectives of Excelsior Clothing, a measurement system is developed which helps in determining how much has been attained on the profit index. The number of customers accessing the online products at Great Walking Apparel is measured by looking at the feedback and those who engage the marketing team and actually end up purchasing those products. This is to give the general outlook and expectations of the sale values within the next few months (Abraham & Lodish, n.d.). The number of sales as compared with New Zealand’s Tourism Ministry record of inbound visitors into the country’s famous walking and tramping destinations so as to keep in line the profitable months of the year. The senior management of the Excelsior Clothing will receive this critical information (Dawar & Bagga, 2015). This will be measured quarterly of a year so that the standpoint of Excelsior Clothing on the market is determined and the apt steps are taken to keep in tandem with the needs of the market.
The implementation of the control system involves calculation of the total monthly sales as well as making a comparison with rivals as Kathmandu and MacPac and if the results show that the sales are at par, slight changes are made to be atop the competition. Corrective measures, however, will be undertaken quarterly if the applied strategies employed in marketing does not yield different positive results. The reason for setting the limit to be quarterly is that any strategy may not work immediately but given time could prove to be a profitable venture given the dynamic nature of the system (Gallo, 2017). The information will be presented in form of proposal spreadsheets to each of the promotional actors as well as top executive of Excelsior Clothing since the decision-making lies entirely on their hands.
In conclusion, this market plan for “Great Walking Apparel” is a great idea that if implemented could portend high income for the company. Since New Zealand and the entire Pacific region in the recent past has proved to be a good business environment evidenced by the constant corporate profitable results as well as increased GDP (Anuja Nadkarni.,2018). With its unique positioning based on quality material used which stand out from those of the competitors, new ways of promoting their products, as well as jointly making adverts with tourism sites as well as magazines and newspapers, the senior management of Excelsior Clothing can be sure to leverage a competitive advantage in its market and obtain optimal profits (“Measure performance and set targets,” n.d.).
2. Reflection based on Kolb (1984)
From the experiences from these lessons, I have arguably gotten to understand how the New Zealand market looks. I have gained enough insights into the marketing techniques that would benefit an organization given an opportunity to work in one. As I reflect upon all the learning outcomes that I have achieved, I can now deliberate on issues that seek to increase sales for any organization. In fact, I have realized that it is possible to even set up ones’ own corporation that is set in the New Zealand’s market (Assignment Worksheet, p. 10). I believe that with more exposure and continued practice of the marketing concepts that can be found within the lessons learned will prove worthy as it will constantly remind me of how to best achieve a certain business goal.
The learned lessons can be interpreted and incorporated not only in a venture within New Zealand but any other business place in any location since a proper understanding of the market is one of the acquired knowledge from the lessons. Therefore, the concepts can be used to achieve meaningful positive business results in the real business environment, and also come up with certain explanations on the nature of the business environment. Once such explanations of a certain market behavior have been developed, it can be tested from facts within the market which will further either be evidence for our explanations or again require us to re-learn certain aspects so as to fully understand. I have also learned the importance of planning any venture before starting since a plan is the epicenter of any undertaking in business (Assignment Worksheet, p. 10).
2.1 Reflection based on Gibbs (1998)
The class environments throughout the lessons listening to the lecturers, other students, as well as sedulously reading books relating to the lessons, the topic proved intriguing. Though initially, marketing control seemed a hard task to comprehend, frequent discourses in the class environment ensured an easy learning experience. In the marketing, I have now understood that both customers, as well as workers, are key contributors of the success of an organization and that since the market is a dynamic environment, services or products need analysis and improvement of features from time to time. In future, once I delve into the market, the frequent mistakes that marred my understanding of the lessons will be avoided by having an inquisitive mind and keeping abreast with the market when required (Assignment Worksheet, p. 11).