The prime motive of this report is to build an understanding of how certain organization works in the international market and the strategy they should look for to develop a target audience in a specific country. This report will also focus on the external and internal market environment and also do the target market research so that the organization can promote its brand in the new market. For this report, the chosen organization is Tinka the Label, which deals with jewelry, and they are targeting the Australian market to promote its business.
Tinka the Label is a small-scale brand that comprises 80 employees in their organization. This organization deals with sleek jewelry and targets customers of different sociological backgrounds. The brand’s designs not merely target a specific culture or history, or spirituality, but also their products deal with diversity. Their product does not target a specific demographic; instead, they solely focus on the essence of the women. And the core idea of the brand identity is to promote the uniqueness of every woman in the world.
This part of the study will focus on the external and internal environment analysis to understand the market scenario in the jewelry industry of the country. To enter a new market, every brand has to analyze the factors that influence the market and the operational factors of the organization. Certain factors will be covered in this portion of the report below.
Political:
The country is politically stable, which helps the SMEs promote the country’s business. The liberal policies of the Australian government make it easier for brands to promote in a competitive market, and it also gives scope for a foreign brand to compete in the market. Another factor that can affect the business operation of the organization named Tinka the Label is the impact of Brexit. The government is promoting various exhibitions in Federation Square to promote the small-scale business in Melbourne.
Economic:
The country’s economic growth is stable though the covid-19 harms every brand operating in the industry. The stable economic condition of Australia can positively impact the organization. The current market scenario is tough for a small-scale business to operate in a competitive market scenario (Nyoka 2018). The uncertainty of Covid-19 and changing customer perception can affect the SME brand in the market.
Cultural:
Jewelry is a kind of product that can be considered adornment and comprises rings‚ earrings‚ necklaces‚ brooches‚ and bracelets, and it can be made of different materials, primarily beads‚ gemstones‚ precious metals‚ or shells. The choice of the jewelry materials can address the cultural differences as this product differs from the other types of adornment. The jewelry can be appreciated due to the choice of its material, its property, and the pattern that any brand endorses in the market. The Australian tends to accept the new trends of the jewelry item that has much different from the conventional designs (Cunningham et al. 2019). Due to the impact of Covid-19, there can be potential differences in customers’ buying behavior, and it can also affect the organization.
External and Internal Environment Analysis
The internal factors such as the opportunity and threats analysis are important factors for the small scale organization before entering into a new market scenario.
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Opportunities · The brand is about launching hair accessories products, and this product line extension can give leverage to the brand to promote its business (Sudhana 2018). · Participation in the Gold Coast and Brisbane to capture and promote the brand. · Strong brand presence in the Eastland Shopping Centre. |
Threats · The market is highly competitive and saturated. · Other giant brands provide higher market risks. · The industry is highly fragmented, and the current challenging economic situation can hamper market entry (Wijaya et al. 2019). · Raw materials are scarce in the market, such as gemstones, diamonds, and other materials. |
The above two market analyses will provide Tinka the Label with enough knowledge of the market scope to explore their business in Australia. Erin Browne, the founder of Tinka the Label has thought to expand the business to Gold Coast as it was her birthplace and she has a fair knowledge of the taste and preferences of the customers there. As the jewelry industry of Australia is supposed to grow in the next coming years and the growth of the industry was 4 billion Australian dollars in 2020 (Matricano and Vitagliano 2018). As per industry estimates, it might achieve £360.6 billion by 2026, climbing at an annual pace of 8.5 percent (Tuite 2019). The market competition is expected to grow due to the advancement in technology. The online jewelry industry of Australia is growing and it will continue at a steady pace in the coming year that is the reason behind choosing the country for the brand of Tinka the Label.
Source: Statista
Here the brand will be using the Exploration strategy because it enables the business to go away from the usual fact which they’ve been focused on—to explore different realities and discover fresh opportunities (Sahni and Juhari 2019). It is the source of all innovative ideas. The brand is focusing to explore new product line extensions to meet the needs of the customers in the country.
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Marketing Mix Element |
Your business: Tinka the Label |
Competitor 1: Natalie Marie Jewellery |
Competitor 2: Amber Sceats |
Competitor 3: Christie Nicolaides |
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Product |
Core Benefits: Providing customers with innovative designs of jewelry purely based on the women’s essence. Actual Product: Sleek jewelry designed for daily use purposes that can be worn by any age group. Augmented Product: Company is coming up with designer hair accessories that will be unique in design. |
Core Benefits: This brand mainly deals with wedding jewelry. Actual Product: This brand is mainly providing the customers with diamond and gold jewelry for wedding purposes or any special occasion (Stoehrer 2020). Augmented Product: This brand is also providing handmade designer jewelry and jewelry with gemstones. |
Core Benefits: Mainly dealing with unique Australian designer jewelry with timeless elegance combined with adaptability. Actual Product: Handcrafted necklace, rings, bracelets, and other ornaments. Augmented Product: Also dealing with designer dress and clothing besides dealing with jewelry. |
Core Benefits: The brand is dealing with products of different categories starting from sleek designs to heavy designs such as well and also traditional gold jewelry. Actual Product: The actual product is Unique, handcrafted gold and silver plated jewelry Augmented Product: They are having bridal jewelry packages with other subcategory products. |
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Promotion |
This brand mainly promotes its product on social media pages such as Facebook and Instagram and they are also doing marketing promotion through Pinterest. |
This brand is having a design studio in Sydney and also promotes the brand through its website. |
The company is promoting the brand name with the association with Ubuy Oman. |
Australian Vogue, Harper’s Bazaar, Marie Claire, InStyle, Elle, Grazia, and Cosmopolitan have all covered the brand. |
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Price |
Price is depending on the types of the products though it is reasonable such as starting range of earrings is A$30.00 |
Price is comparatively high yet they are having low-cost vintage finger rings. |
Though the price is quite high yet they give an extra promotional offer frequently. |
The price of the products depends on the product range, for example, the regular price for Lola earrings is $319.00 AUD and the sale price is $149.00 AUD |
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Place |
The brand is target the market of Gold Coast and customers can avail of their product from anywhere in Australia. |
This brand is mainly present all over Sydney, Australia. |
This brand is mainly present all over Sydney, Australia. |
They are mainly present in Brisbane city, Australia. |
Tinka the Label needs to identify the target market for their business in the country and for doing that they need to build on the four strategies for target market analysis these four factors are Demographic, psychographic, behavioral, and geographic segmentation and that have been presented in the chart below:
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Segment |
Description |
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Demographic Segmentation |
Age: Women of age group starting from above 25. Gender: Female Income: Customers belong to upper-middle-class and upper-class families. Ethnic Background: Suitable for all background customers who have a love for sleek jewelry (Shariff, Ahmad and Shabbir 2020). |
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Geographic Segmentation |
Customers groups within Australia and specifically Gold Coast |
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Psychographic Segmentation |
Customer Belief: Working women who are keen to purchase sleek yet stylish and trendy jewelry for daily purposes. |
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Behavioral Segmentation |
Purchase Type: Customers who are very much active on social media sites and have a quench for everyday sleek design jewelry (De Villiers, Tipgomut and Franklin 2020). |
Conclusion
Thus, from the above discussion, it can be said the brand can move forward with its brand and also innovate new products for gaining the attraction of the potential buyers in the country. The main theme of the brand is to promote women and also respect their empowerment and with this brand ethics, they want to enter the market in the country to build the brand identity in the saturated market scenario. Thus, it can be concluded that this analysis report will be helpful for the brand to identify the potentiality of the current market in Australia.
References
Cunningham, S., McCutcheon, M., Hearn, G., Ryan, M.D. and Collis, C., 2019. Australian cultural and creative activity: a population and hotspot analysis: Cairns.
De Villiers, R., Tipgomut, P. and Franklin, A., 2020. International market segmentation across consumption and communication categories: Identity, demographics, and consumer decisions and online habits.
Matricano, D. and Vitagliano, G., 2018. International marketing strategies in the jewellery industry: are they standardised, adapted or both?. International Journal of Marketing Studies, 10(1), pp.1-10.
Nyoka, N., 2018. An assessment of problems encountered by export oriented Small to Medium Enterprises (SMES) operating in the jewellery industry in Zimbabwe.
Sahni, J. and Juhari, A.S., 2019. Corporate diversification: A fundamental exploration of general business environments, industry environments and firm characteristics. Academy of Strategic Management Journal, 18(2), pp.1-13.
Shariff, M.N.M., Ahmad, N.R. and Shabbir, M.S., 2020. Moderating effect of access to finance of the gem and jewelry industry. Utopía y praxis latinoamericana: revista internacional de filosofía iberoamericana y teoría social, (2), pp.264-279.
Stoehrer, E., 2020. The Evolution of Vintage Jewellery on the Hollywood Red Carpet, 1995–2005. The Journal of Dress History, p.88.
Sudhana, P., 2018. Determining New Export Goals And Competitive Strategies For The Jewelry Industry In East Java In A Global Value Chain Perspective. East Java Economic Journal, 2(1), Pp.61-74.
Tuite, A., 2019. What is independent fashion? An Australian perspective. Fashion Practice, 11(1), pp.5-25.
Wijaya, I.M., Martiningsih, I.G.A.G.E., Sudiana, A.K. And Wiswasta, I.G.N.A., 2019. Community Empowerment Strategy In Development Of Traditional Object Based On Customs In Taro Gianyar Village. International Journal Of Sustainability, Education, And Global Creative Economic (Ijsegce), 2(3), Pp.319-329.
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