JW Anderson Brand Marketing Plan
Executive Summary
This is a marketing plan for the proposed entry by the JW Anderson fast fashion brand into the Chinese market. The section of the Chinese market is based on two dimensions (1) its economic growth potential in the fashion industry, and (2) its geopolitical status and positioning in the Asian market and region. Overall, the brand is pushed by the exiting factors int eh UK market to seek an international market destination. These factors include a saturated fashion industry, and declining growth and expansion rates, among others. Ideally, the analysis denotes that the venture has an available and viable opportunity in venturing into the Chinese market.
In evaluating the market feasibility and the ideal strategy for adoption, it develops an internal and external analysis, respectively. Internally, the review is established through the brand SWOT analysis. Externally, the scan is created through a PEST analysis of the targeted Chinse market. Based on the obtained findings, the report sets out the core objectives. They are (1) establishing a market presence, (2) establishing retail store partnerships, and (3) breaking even to realise profitability in the long run period, respectively. To accomplish these goals, the report recommends the adoption of an indirect market marketing strategy that is operated and run on an online digital-based platform.
Table of Contents
2.0 Situation Analysis. 4
2.1 Internal Analysis: SWOT. 5
2.2 External Analysis: PEST Analysis. 6
3.0 Marketing Objectives and Opportunities. 8
4.1 Use Indirect Market Entry Strategy. 8
4.3 Predicted costs and budgets: 9
1.0 Introduction
The UK fashion industry is among the leading global fashion markets. This is in terms of its market revenues. Overall the last decade, the market has maintained a cumulative annual growth rate (CAGR) of 3%. This is a market growth trajectory that is projected to remain positive into the foreseeable future. However, one aspect to note is that the year on year growth rates has been on a decline. For instance, since 2016, the market has maintained a steady decline in the annual growth rates. It has declined from an estimated 1% in 2016 to below 0.3% as of 2019. This is a shifting market dynamic that makes the industry less desirable and attractive to domestic brands. As such, the existing brands have to evaluate alternative market share generation strategies. Such strategies include internationalisation and targeting new markets. This analysis is a marketing plan for the JW Anderson brand. The marketing plan details the basis, the foundational elements, and the underlying attributes for the internationalisation and expansion of the brand from the current UK domestic market into China. The section of Chin is since the nation has emerged as a reliable and stable emerging market economy in Asia. Thus, through venturing into China, the brand will have access and a gateway pass to other Asian markets within the region.
2.0 Situation Analysis
In the development of strategic marketing plans. It is critical to examine the existing situation. In this regard, as Prajogo (2016) described it, situational analysis in business includes and details both the internal and the external market conditions. Internally, the focus is on the strengths and the resources and capabilities in a venture. Once these are established, they lay the foundational basis through which alternative marketing and operational strategies are recommended. Besides, such an internal analysis allows for the exploration of any existing weakness areas that need to be addressed in the new marketing strategies and plans established. On the other hand, there are the external marketing conditions. These are variables and market situations that the ventures have no control over. Nevertheless, these conditions have a significant and direct influence on the operations and the potential success of any of the entities applied strategies and success potentials. In the examination of JW Anderson brand situational analysis, a focus on both aspects was adopted. These included external analysis through PESTLE and internal analysis through a SWOT analysis model. The findings and the critique of each of the conclusions obtained. The marketing strategies and internationalisation plan are as illustrated in this section. Don't use plagiarised sources.Get your custom essay just from $11/page
2.1 Internal Analysis: SWOT
The fort step was an exploration and an examination of the internal aspects and dimensions at JW Anderson. This Was realised through a SWOT analysis model. This is a model and strategy that investigates on the strengths, weakness, opportunities and threats of the organisational resources, systems, and operations, respectively. The findings are as demonstrated in the table below
| Strength
Influential partnership culture– The organisation has established a trend and market culture of collaboration. Although it lacks its own stores’ outlets, it has established partnerships with reputable stores. This has expanded and increased its market visibility and recognition in the market (JW Anderson, 2019) ICT adoption and use– The brand has established a robust online presence. It is this presence that ensures that the entity has a presence across the UK market and in other international markets. This is a significant strength since the global market and consumer base is gradually shifting towards the use of technology platforms as the leading shopping platforms. T | Weakness
Lack of Own Retail Shops– A critical evaluation of the venture model, as noted, is that it functions through partner stores. This means that the stores are not their own. As such, this raises the risk of failure of the stores. This is since their mission, and vision statement could, at times, not be aligned with that of the brand. Lack of International Physical Presence. Although its online shop has a global market presence, its physical existence is predominantly in the UK and the developed markets. This means that it has failed to maximise on and focus on the emerging markets. This is a market base that has both current and future expansion potential (JW Anderson, 2019).
|
| Opportunities Globalisation –One of the strategic shifts and changes in the market is globalisation. In this case, there is a growing liberalisation of international markets. Thus, the brand can internalise to any market, including China with ease. This is bound to enhance and increase investment opportunities. E-shopping Culture- A second variable and opportunity in the market is the rise of e-shopping. This has emerged as a new alternative shopping platform for the traditional approach. As such, this means that more customers are bound to shift to online shopping into the foreseeable future. Consequently, this is expected to rise and expand the potential online market share. Thus, the JW Andersson brand can leverage its ICT systems to the changing consumer purchase patterns for long term gains (JW Anderson, 2019).
| Threats Slow UK market Growth rates– One of the challenges facing the venture is its market conditions. In the UK, although maintaining a positive outlook in the industry, the industry growth trends are on the decline. This is a market threat that is bound to decrease the overall market profitability for the brand in the foreseeable future. Global Competition- The rise of globalisation has equally led to a high rate and index in globalisation. This is due to the entry of both domestic and internal brands into the UK fashion industry. This is projected to rise into the foreseeable future. A failure by the brand to internationalise into other new markets, such as the proposed Chinese market, exposes it to a high level of competition. The UK market is almost at saturation, making the competition rates significantly high. |
2.2 External Analysis: PEST Analysis
Once the internal market conditions have been established, the next strategic step is an exploration and an evaluation of the external market condition. Shtal, Buriak, Amirbekuly, Ukubassova, Kaskin and Toiboldinova (2018) argued that one of the core antecedents of marketing strategies success is the alignment of the strategies with the market needs. This allows for the realisation and the establishment of a strategy-market fit. This is a fit that will enable both an easy application process and the enhancement of the ultimate value and success for such strategies. In the external market conditions, the analysis applied the PEST analysis model. This is a strategic analysis model that evaluates and investigates the exiting external market conditions. In its core, the study below is a critical examination, comparison and contrast of the tow markets. These are the host market, the UK and the international target market, China. The analysis focus is to demonstrate any similarities in the external market conditions that would allow for the replication of strategies and processes in the market. Additionally, the analysis shows the differing external market conditions between China and the UK. This lays the groundwork for the recommendation of different internationalisation strategies by the JW Anderson brand.
| PEST Variable | Discussion |
| Political Factors | An evaluation of the existing political systems indicates a high rate and index of similarity between China and the UK. In both nations, the governments are led by democratically elected governments. In this case, the democratic institutions, through a majority party rule, allow for stability. This means that the existing political stability and goodwill in the UK is replicated in the Chinese market. Nevertheless, while as the government inclusion and the role is minimal in the UK, the Chinese government is highly involved in economic activities. This is mainly with foreign enterprises to ensure that the domestic players in the market are safeguarded and protected. Besides, China has established economic and political ties in the region. This is including its traditional trade rival Japan, with whom the nation has found a new blueprint plan for trade collaborations and partnerships. This is a critical political base ad dimension that makes China a preferred gateway into other Asian markets (Joseph, 2018). |
| Economic Factors | Economically, a similar index between the UK and China is the positive trajectory in economic growth and expansion. Nevertheless, the differences emerge in the rate of growth and future forecasts. While as in the UK the economic growth is significantly low at 1.2%, it reached a 6.8% GDP growth rate as of 2019 in China. The Chinse market as an emerging market is at its growth stage. This is unlike the UK market that is currently at its late growth stage, heading to a market maturity stage. Thus, this means that the market has a higher market index potential in the foreseeable future. This makes the market a feasible market and internationalisation destination for the JW Anderson brand. The existing economic conditions in China as compared to other regional markets in Asia makes it an ideal destination and a preferred gateway into the different local markets (Babones, 2018). |
| Socio-cultural Factors | In both markets, the analysis indicated that there are a close connection and link in the rising number of the younger generations in the Chinese market. This is since the Chinese market population growth rate has significantly increased. This raises the market profile in terms of the potential customer base in China. Additionally, the Chinse market has a higher and rising culture integration index. As such, this means that the market has a higher rate and potential for international fashion brands. This is as the market gradually shifts and changes from the traditional Chinese context to the modernised China society that has the demand for a global product (Shen, Choi and Lo, 2016). |
| Technology Factors | Technologically, China is drastically advancing. This is demonstrated by its international technology brands such as Huawei that is an established ICT solution and infrastructure provider. In China, both ICT infrastructure and skills have increased significantly. This means that the market is highly receptive and accommodative of the adoption and the use of innovative technology products and strategies. This is a market fit for the JW Anderson brand. The brand has predominantly established its influence and scope within the use of ICT and related systems both in its place and promotional dimensions. This is a trend that is compatible with the Chinse market needs and expectations (Chatterji, 2016). |
3.0 Marketing Objectives and Opportunities
A critical examination of the above findings on the SWOT and PEST analysis demonstrates that there are core opportunities in the market. These are opportunities that the venture should both explore internally and externally.
Externally, the existing market opportunities in China are
- The growing market customer base and fashion awareness increase the industry potential for the JW Anderson brand.
- Rise in ICT systems reliance in the market creating an opportunity for the JW Anderson brand to use its existing opportunities and strengths in ICT
- Chinas influential collaborative culture is essential and supportive of the JW Anderson partnerships development potential.
Internally, the JW Anderson brand has the following opportunities arising from the SWOT analysis
- Strong partnerships culture, allowing its ease of establishing new cultures and collaborations in the Chinese market. This aligns with the Chinese market culture.
- A strong financial base. With its revenues base currently, it has the opportunity to employ alternative capita intensive strategies in venturing and spreading in the Chinese market.
Based on the current external and internal market opportunities, the proposed marketing plan objectives are as illustrated below.
- To venture in and enter the Chinese market (Establish a strong physical and online presence in the market). This is within the first three years of the marketing plan actualisation
- To establish partnerships in the market. The entity will target the realisation of over five partnerships within three years of expertise.
- To establish a breakeven of investments in the market. The marketing plan seeks to realise a breakeven within three years of venturing into the market.
4.0 Recommendations
Based on the established opportunities and set out objectives, the report applies the following strategic recommendations.
4.1 Use Indirect Market Entry Strategy
A core finding in the analysis indicates that the Chines market, although expanding its FDI acceptance scope, remains predominantly in favour of the domestic market players. Therefore, this analysis argues that the best approach and strategy in the market for JW Anderson is to rely on using the local players (Kotabe and Kothari, 2016). In its traditional approach, the industry has been focused on establishing and using partnerships. Its success model so far has been through promoting its partners’ stores as the brand representatives in the market. This is a trend that has been supported by the increasing use of collaboration cultures. Ideally, this is a collaborative culture that would be ideal in the. In discussing the market, Yang, Zhao, Yeung and Liu (2016) argued that due to its high collectiveness index, the Chinese market and society values relationships and partnerships. Thus, it implies that the brand will have an opportunity to establishing successful relationships and friendships with domestic retail stores. The adoption of this market entry strategy will be strategic in ensuring that the brand overcomes the risks of barriers and tariffs imposed by the government on foreign brands. Through collaboration with domestic players, it will increase its local ownership perception. As such, this will help it navigate through government taxation and regulation on controlling any foreign brands into the market.
4.2 Focus on ICT systems
In achieving the set-out goals, the strategic focus of the brand should be in technology use. An internal and external opportunities analysis demonstrates that the brand has an ICT edge. This is both in its internal use of ICT systems and the application of such in marketing. In this regard, to maximise on its value in the market, the brand must invest heavily in the use and application of ICT systems in creating and establishing its market presence in China
4.3 Predicted costs and budgets:
To allow for an effective market entry strategy, this section offers a summarised view of the projected and estimated costs in setting up the brand entry strategy into China
| Cost Dimension | Costs Incurred (Britain Sterling Pounds) |
| ICT based marketing strategies | 15,000 |
| Costs incurred in setting up stores’ relationships | 30,000 |
| Projected amount and value of revenues within the first two years of venturing into China | 86000 |
5.0 Conclusion
In summary, the above JW Anderson brand marketing plan into China indicates feasibility. With the adoption of the recommended strategies, the brand is bound ton to realise its strategic goals and objectives in the Chinese market.
References
Babones, S., 2018. China quietly releases 2017 provincial GDP figures.
Chatterji, M. ed., 2016. Technology transfer in developing countries. Springer.
Joseph, P., 2018. Foreign Diplomacy in China, 1894-1900: a study in political and economic relations with China. Routledge.
JW Anderson, 2019, About Us. [Online] Available at <https://www.jwanderson.com/ke/?gclid=CjwKCAiA27LvBRB0EiwAPc8XWT2UeqKMtunHcThqCZwPFWEubVv9vPhbOafD2PprFBgf5sU6e0fUchoCAskQAvD_BwE> [Accessed: 5th December 2019]
Kotabe, M. and Kothari, T., 2016. Emerging market multinational companies’ evolutionary paths to building a competitive advantage from emerging markets to developed countries. Journal of World Business, 51(5), pp.729-743
Prajogo, D.I., 2016. The strategic fit between innovation strategies and the business environment in delivering business performance. International Journal of Production Economics, 171, pp.241-249.
Shen, B., Choi, T.M. and Lo, C., 2016. Enhancing economic sustainability by markdown money supply contracts in the fashion industry: China vs the USA. Sustainability, 8(1), p.31.
Shtal, T.V., Buriak, M.M., Amirbekuly, Y., Ukubassova, G.S., Kaskin, T.T. And Toiboldinova, Z.G., 2018. Methods of analysis of the external environment of business activities. Revista ESPACIOS, 39(12).
Yang, Q., Zhao, X., Yeung, H.Y.J. and Liu, Y., 2016. Improving logistics outsourcing performance through transactional and relational mechanisms under transaction uncertainties: Evidence from China. International Journal of Production Economics, 175, pp.12-23.