Identify and evaluate marketing opportunities Part 1: Research and identify possible marketing opportunities: Introduction: T-House is one the Australian owned T-shirt Company located in Melbourne area established in 2009. With over 20 branches around city and suburb area of Melbourne, products of T-house are targeting massive group of customer. T-house products lines are including clothing and accessories. However, the company is now planning to increase number of branches in Melbourne to number of 40 branches.
T-House average sales volume of each branch is around $20,000 per month in 2015. T-house is also allowing customer to order their products online through company’s website and collect at the branch near customer living area. Review of T-House company’s Marketing Plan: As T-House’s products are clothing and accessories, company is considered themselves in group of fashion products and targeting at customer age between 15-40 years old of both male and female. T-house now is more focusing on online advertising which is able to access to their target customer anywhere anytime.
On website T-house will promote and offer their new products and discount for customer who is following the site. T-house also plans to increase their annual profit by double the number of branches in Melbourne area which their products are already recognized. T-House company’s products on market trends and developments: T-house’s products on market trends and developments – T-house’s products are related to year weather season such as winter fashion and summer fashion.
Price for products will be competitive as now customers are willing to spend small money on clothing but more often. The product developments will be after company has collected a annual sales from each branch and analyze. The marketing team will take responsibility for that. – T-House company’s new and emerging markets: T-house’s markets – T-house has a plan to expand around Melbourne area to be well-known among group of target customer. Also, product line expansion is considering to meet the new target which is baby clothing. – However, last year, 2014, T-house’s accessory’s sales volume has increase for 40% and predicted of 10% more in this year.
T-House company’s competitors: As a clothing company, T-house’s competitors can be any famous brands of clothing for example, sport wear (Nike and Adidas) as well as a fashion clothes in shopping stores. More, these day online stores are also effecting in price and market share. Online stores today is about 15% of total market share. Other relevant factors: The other factors that are affecting clothing market can be – Personal style -sometimes a group of people called fashion leaders have a major effect to clothing trends – Factory supplies -a supplier effect to the cost of products
Three potential marketing opportunities: I exporting I online business opportunities strategic alliances Assess marketing opportunities: Marketing opportunities Impact on sales Impact on profitability Impact on growth Impact on market share Marketing opportunity 1: exporting Exporting is to sell your products oversea and of course exporting will help increasing in total sales volume of 50% From the increasing sales volume of 50%, T-house profit is following the positive impact of 15% increase.
The growth of business is slightly increasing through years; from 2015 to 2016 it is 15% of business growth rate. T-house’s market share in clothing business is only 5% of the total market. After T-house start exporting the market share increase by 2% Marketing opportunity 2: online business opportunities T-house loses their sales volumes to retail competitors who sell clothes on internet, there are more sellers and cheaper than market price somehow. The consequences of online business obviously impact The profit of T-house. On internet, it is possible to find the same product but cheaper price.
When clothing market growth rate increase, the number of online seller increases as well. And for business plan to increase number of store will be changed to do online store following the trends Market share for online store is now rapidly increased through years. Every business owners run into the competition to gain market share or a new type of customer. Marketing opportunity 3: strategic alliances A group of business will make an agreement among them and to find the way to share their in-hand customers that means one customer of a business can be a customer of another business.
And this will help the whole group of alliance to increase their sales The effective of strategic alliances is to help each other to convince their customer to increase frequency of purchasing activity and that leads to increasing of profit of the allied businesses. From research, the businesses that joined have an opportunity to growth faster. To reason is each business member will introduce another business member’s product to their customer. Change in market share is depending on the result of joining alliance. Meeting Minutes of Marketing Opportunities
Meeting time: 19/12/16 Meeting location: 123 Holy Street, North Heaven, Melbourne Participants: Jim, Jame, Joe, John, Jade, Jack Apologies: Janelle, Jose Meeting items discussed: 1. A description of sources of information that you reviewed to assist in identifying marketing opportunities: I advertising sales representatives: From advertising sales representatives, this will be the main source of information for T-house as business is planning to increase number of branch around Melbourne area. The sales representatives will be including the sales team of each branch and staff in each branch as well.
To gain as much as information from actual customers who have purchased in store. Information can be feedback or complaints, question from customer, best selling products or customer gestures. I existing research data: A sales team of 5 persons will be assigned to work together with office administrator to collect the previous research data and analyze to present in conference. The data that will be used for example are sales record (monthly and annually) of every product, previous issues research, customer feedback and recommendations.
However, existing data to be used have to be approved by marketing and financial manager of T-house. I industry sources: Another team will be set up to search for necessary external information. A research has to be conducted to collect information of clothing industry such as competitor’s information, business trends, industry association or the alliance of business. The government section also provides the rules, law and regulation of this business industry to every business to respectfully follow.
Also, a specific website about business owner who is doing import and export that is giving information and direction of doing business oversea. 2. A description of three possible marketing opportunities that the business could pursue, including your initial assessment of how each of the opportunities identified will impact on the business: Marketing opportunities Assessment of marketing opportunities Marketing opportunity 1: exporting Exporting is to sell your products oversea and of course exporting will help increasing in total sales volume.
From the increasing sales volume of 50%, Thouse profit is following the positive impact of 15% increase. The growth of business is slightly increasing through years; from 2015 to 2016 it is 15% of business growth rate. Marketing opportunity 2: online business opportunities T-house loses their sales volumes to retail competitors who sell clothes on internet, there are more sellers and cheaper than market price somehow. The consequences of online business obviously impact The profit of T-house. On internet, it is possible to find the same product but cheaper price.
Market share for online store is now rapidly increased through years. Every business owners run into the competition to gain market share or a new type of customer. Marketing opportunity 3: strategic alliances Business will make an agreement among them and to find the way to share their in-hand customers. The effective of strategic alliances is to help each other to convince their customer to increase frequency of purchasing activity and that leads to increasing of profit of the allied businesses. Change in market share is depending on the result of joining alliance.
3. Reasons why the business should pursue the opportunities you have identified: 1 available technology: There are opportunities for business to use available technology in order to create the most benefits to their own. The effective of business activity is evaluated from the result or the other word “profit”. And now online marketing is the most popular strategy for every business. On internet there are uncountable source of information and the biggest access to customer. Also, the business can use technology in production activity such as machines, tools, equipment and transportation.
The use of available technology effectiveness will be the strength and advantage to business. I financial stability: When considering of the opportunities that T-House will be receiving from their marketing activities, it is magnificent that Thouse’s financial status will remain or stronger. The project of start exporting products will create amount of demand from oversea. Therefore, T-house has made another way of income. And with the group of allied business, T-house has been supported by the group in several ways of marketing.
However, income from another marketing plan of online business which has been made will be supporting T-house’s financial status from any unexpected lost. I resource availability, sustainability and management: In order to determine whether the selected marketing opportunities should or should not be doing, businesses has to first evaluate themselves from inside and outside if they are capable of running and completing the plan. The benefits that business will receive from the allied group can be the coworking of management team or helping each other with supplies and people.
Part 2: Report on marketing opportunities 1. For each of the marketing opportunities that you have identified, you must report on: a) Alignment with the business’ objectives and goals objectives and goals as described in the Marketing Plan? Marketing opportunities Alignment with the business’ objectives and goals Marketing opportunity 1: exporting Help achieving organizational goals of • Expanding business brand to oversea. It’s an opportunity to explore the oversea market and to gain the new group of target market.
Increase business reputation When your business’s products are exported oversea, that means your products quality is accepted and standardized. • Customer awareness and increase of brand value. The more customer is the more people aware of your business existing and that will create customer awareness and value to your products. Marketing opportunity 2: online business opportunities Help achieving organizational objectives by increase the channel of selling your products. Although some businesses are not interested in online marketing but online marketing is cheap and easy and there is no reason to reject online marketing.
Online business will allow business owner to access to their customers and potential customers on the other side of the world. Marketing opportunity 3: strategic alliances Help achieving organizational profits by joining with the others business who have the common goal, group of customer or benefits. With group of business working together, the target group of customer is bigger and wider which means each business member is able to advertise their products and sell and that create more profits and benefits.