Marketing Strategy For Footwear Business In United Kingdom

Country Screening and Product Entry Strategy

This analysis tends to discuss the business objective in relation to the product, country screening in different countries. Further, the report will also discuss the marketing segmentation, targeting and positioning strategy associated with the business as well as will discuss the marketing objectives associated with the business. Further, the product entry strategy associated with the business will be also evaluated in order to understand how the company will create value for its customers. Further, a detailed marketing mix will be discussed as well as the discussion about the promotional element cost will be provided.

This business intends to expand its products as well as operations in the market and understand the current segmentation within the market to understand the market needs. Further, the business will try to achieve €50,000 in gross sales (€15,000 in net revenue) in the first year of operation. The business will try to provide its shoe product facilities at an attractive discount all over United Kingdom over time timeframe of the next 5 years (Kong, Antwi?Adjei and Bawuah 2020). The business also aims to attract most of the businesses across UK and tries to aid the clients with their effective products and services.

The business will have to conduct a country screening process allowing it to comprehend that which country it needs to select to expand its operations. This will also allow the business to comprehend the current requirement of shoe products as well as will assist the business to provide its products and services to the targeted customers.

In Egypt, it is evident that there are various established companies which offers shoes and wearables. It is also evident that in the country, the growth it slow and still in process.

Requirement of stylized shoe product in Ghana is very low since the country is less economically developed hence the business cannot consider Ghana to produce its services. Further, it has been also evident that the per capita GDP of the country below the global average (Rosa, Sukoharsono and Saraswati 2019). The requirements for establishing the business within Ghana is very lengthy and it will take significant amount of time and effort for the business to improve its operations within the country.

In Korea, it has been evident the demand for shoes remain low and personal spending has been significantly reduced in the recent timeframe. Hence, Korea will also not be a good place for the business to expand its operations.

In Mexico, it has been evident that there is a significant amount of reduction in footwear demand and customers are look to purchase shoe wear from renowned brand. The sector of the country is struggling due to sluggish growth of the financial sector.

In United Kingdom, there has been a recent increase of demand for footwear as well as other apparels. It has been also apparent that there are various businesses providing quality shoes to its customers (Mabwe and Jaffar 2022).

Based on the above country screening, it can be noted that John Henric should begin its footwear business in United since the country has significant amount of opportunity for further growth.

Market Segmentation

Geographically, the market is segmented in United Kingdom. The business segments its market in two divisions. In the first division, it will provide medium ranged shoe products to the mid to high range customers. The other segment will target to provide footwears to the customers in low prices. Segmentation of the market will allow the business to understand its areas of operations as well as will allow them to improve its financial situation in future timeframe (Dolnicar, Grün and Leisch 2018). With the segmentation, the business will be able to understand which segments they will have to exclude as well as will reduce the costs of resources of the business significantly. It will also allow the business to address the need of clients more efficiently in no time.

The business targets the low, medium and high segments of customers with its shoe products. Targeting the market segments will allow the business to understand the requirements of the quality shoes at the right time and address them accordingly. The business will follow multi segment coverage, also known as selective specialization to react the targeted users and spread the risks across the financial instruments. The business, however will need total marketing effort which will ensure that the business is focusing on the clients efficiently as well as will also ensure that the business understands the need of the customers efficiently. The business will concentrate on marketing of a single quality shoe product across different segments thereby allowing more feasible operations for the business. However, it is noteworthy to mention that focusing on one set of products in United Kingdom will increase risks of the business in future timeframe.

Before positioning, the business will have to take into account of different factors; how the customers perceive the product, how the brand position is perceived, and the personality of the brand. With the help of perceptual mapping, the business will be able to understand the set of attributes it will adhere to in order to evaluate the product class in different segments. Further, the gap within the new market (United Kingdom). Providing shoes at a low price will position the business at a greater position however it can affect the financial associated with the business significantly. The business will have to offer maximum privileges to the businesses which will ensure that that it has positioned itself well into the new market (United Kingdom).

The firm will have to focus on establishing and optimizing its websites which will allow newly established and large-scale organizations to access to the product efficiently. The business can enhance its product reach with the help of advertising and marketing tools. In order to understand whether the customers are satisfied or not, the business will have to monitor its online sales from different websites and articles. With the help of social media campaign, the business will be able to attract its probable customers. In this case, the business can use different types of platforms such as facebook, Instagram as well as twitter (Winkler etal 2022).

Targeting and Positioning Strategy

The use of search engine optimization will allow the firm to attract most of its customers and will also assist the business to show as a top result in search of keywords. For instance, if a business searches for “low cost premium shoes”, the name of the company will be shown towards the client. The business will intend to attract its customers with the help of email marketing which will allow it to attract more customers towards the business. John Henric will aim to use marketing strategies such as customer satisfaction programs and social media contents which will allow it to attract customers towards the business.

For John Henric to succeed, it will require successful planning before the entrance to the United Kingdom market. It is undeniable that the worldwide market has become an extremely competitive atmosphere that necessitates the application of appropriate skills and expertise if a company want to get a significant market share and enter further into the industry. An appropriate and effective client for the company’s services and goods is sought or sought at this point. This might be due to a saturated domestic market or the firm’s belief that its products are strong enough to enter broader markets. This allows the company to join rapidly rising areas or major markets such as the United Kingdom. The corporation can also use efficient seeking to indicate that their goal is to join a market or nation where they can achieve efficiency in a variety of ways, such as through infrastructural impacts (Wu etal 2022). Efficiency is another feature that may be attained owing to the fact that a certain sector has gathered in one location with the goal of constructing helpful infrastructure, such as Silicon Valley.

Licensing companies are known to use overseas joint ventures as a market entrance strategy. The main distinction is that in a joint venture, the international corporation has a stake in the foreign company as well as a managerial voice. As a result, a partnership is formed between the home nation and the host business, which usually leads in the foundation of a third firm. This partnership benefits the foreign company since it gives them better operational control and access to local market expertise.

With the help of licensing, the firm will be able to expand its operations in UK efficiently since the local business that was already situated in UK will have a greater customer reach and it will assist the business to understand the how the clients or small scale businesses will react to the changes in the operations of the company. with the help of licensing strategy, the firm will be able to benefit from the situation since it will require lesser amount of money for the business as compared to create new business (Le etal 2022). The firm, with the help of licensing strategy will be also able to reduce its risks related to the business operations with licensing however, the selling and service costs can be never reduced with licensing. The entrance to the new market will be also easier for the business with the help of the licensing strategy.

Marketing Mix

The marketing mix of the business are given below following which the value creation strategy of the business will be denoted

Product remains one of the key component of the marketing mix that comprises of decisions as well as actions related to the sales object of the firm. The sales object associated with the business is low priced premium footwear. As long as the product is meeting demands and requirements of the customers, the business will not have any difficulties in improving the operations of the business in United Kingdom. The ranges of product for the company are primarily dependent on the current demand for the product in the market and the firm can offer the product as per the demand of the existing customer (Osborne, Nasi and Powell 2021).

Being one of the most significant element of the marketing mix, place decides the price of the product at a certain location. Without proper estimation of the sales, the firm will not be able to generate positive returns for their business. The firm will need to set the price of its footwear products low so that it can offer the same towards most customers and it will also improve the customer attraction towards the company. Further, it has been also evident that the keeping the profit level just above the cost will allow the firm to achieve its targeted net profit as well as will also allow it to achieve significant goals which are crucial for the organization to improve its operations.

Towards the business success, promotion remains of the key component without which the business will not be able to reach towards its targeted clients. Different promotional activities will be required to be put into place in order to improve effectively. The promotional activity of the business will comprise of Endorsement, social Media campaign, licensing, coupons, point of Sale, John Henric Magazine Ad, sponsorship TV Documentary, John Henric’s Vlog Endorsement as well as different types of promotional event.

It is very essential for John Henric to select and choose its place in which the footwears will be provided to the small, medium and large-scale companies. The company has been found to expand its reach in UK market and it has been evident that in UK, the demand for both personal and low-priced footwear product. The sales channel associated with the business, its assortments, outlets as well as logistics will be also comprised within the location.

Value creation within the business framework will occur when the firm, will use its works as well as resources to create value when it is provided to the customers. On the other hand, the business will be able to generate profit and improve the current state of the company with the help of value creation. The business will be able to only succeed once it creates value for its clients as well as its employees. The firm can its products which is of low cost and generates higher amount of profit for the business however if it does not generate sufficient, it will not be able to contribute towards value creation of the organization (Eti 2020). The firm will be able to achieve its goals and objectives if it does not rely on co ordinating with the employees. Further, it is also essential to remember that the business will have to understand the position of its competitors and their product offering which will allow it to improve its overall situation significantly as well as will also allow it to recognize the need of current market.

Online Marketing: Social Media and SEO

The existing risks related to the organization is required to be understood during the value creation stage which will allow the firm to comprehend the risks associated with the financials of the business. Without understanding the key risks associated with the business operations, it will not be possible for the company to forecast its future situations.

Within the shoes industry, it is essential to understand that the sector in UK will affect the market to book ratio of the company. The increase in risk can significantly affect the mismatched shoe products. Further, the leverage within the organization will expose the firm towards fluctuations.  Aside from that, the firms off balance sheet holdings as well as balance sheet items can become well exposed to external market fluctuations (Das, Nayyar and Singh 2019). Furthermore, the manner in which contemporary banks operate in financial markets results in a general reliance on external variables such as the business cycle and trends in finance, capital, or real estate markets, which manifests itself via variations in John Henric’s credit losses.

The financial crisis related to the business in United Kingdom can become one of the most prominent issues which the firm will have to address in order to improve its shareholders value as well as lead to sustainable development.  The sustainability of the business will be largely dependent on the economic, social as well as environmental implications in relation to the success of the business (Arefjevs etal 2020). Further, it has been also evident that without adhering to the sustainable approach, the business will not be able to act with integrity as well as will not be able to improve the economic situation as well profitability of the business.  

The costs related to the promotion of the company are given below which will allow in understanding of the total cost associated with the operations of the company.

From the above, it is evident that the firm will require £85,000 in order to promote its products and services efficiently in the market. The following section will discuss the contribution cost of the company as well as will denote the net profit of the firm after its marketing and production cost.

From the above, the contribution of 15% will produce £29,046 net profit for the business. Consequently, it is evident that the firm will not have enough opportunity to improve its financial situation in the new market.

References

Arefjevs, I., Spilbergs, A., Natrins, A., Verdenhofs, A., Mavlutova, I. and Volkova, T., 2020. Financial sector evolution and competencies development in the context of information and communication technologies. Research for rural development, 35.

Das, S., Nayyar, A. and Singh, I., 2019. An assessment of forerunners for customer loyalty in the selected financial sector by SEM approach toward their effect on business. Data Technologies and Applications.

Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.

Eti, I.A., 2020. Theoretical Inspection And Rethink of Marketing Mix. Available at SSRN 3685642.

Kong, Y., Antwi?Adjei, A. and Bawuah, J., 2020. A systematic review of the business case for corporate social responsibility and firm performance. Corporate Social Responsibility and Environmental Management, 27(2), pp.444-454.

Le, C., Ševi?, A., G Tzeremes, P. and Ngo, T., 2022. Bank efficiency in Vietnam: Do scale expansion strategies and non?performing loans matter?. International Journal of Finance & Economics, 27(1), pp.822-843.

Mabwe, K. and Jaffar, K., 2022. UK Government controls and loan-to-deposit ratio. Journal of Financial Regulation and Compliance.

Osborne, S.P., Nasi, G. and Powell, M., 2021. Beyond co?production: value creation and public services. Public Administration, 99(4), pp.641-657.

Rosa, M.C.W., Sukoharsono, E.G. and Saraswati, E., 2019. The role of venture capital on start-up business development in Indonesia. Muhammadiyah University Yogyakarta.

Winkler, M.R., Lenk, K., Erickson, D.J. and Laska, M.N., 2022. Retailer marketing strategies and customer purchasing of sweetened beverages in convenience stores. Journal of the Academy of Nutrition and Dietetics.

Wu, X., Zha, Y., Li, L. and Yu, Y., 2022. Market entry strategy in the presence of market spillovers and efficiency differentiation. Naval Research Logistics (NRL).

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order