The company name is MarwanPerry (“MP”). The purpose for the establishment of MP is to compete in the global luxury goods market, specifically clothes for casual, office, and sportswear. It is a well-known fact that the global luxury goods market is a multi-billion industry, and MP will take a slice of it. Therefore, MP will have to contend with popular brands like Gucci, Prada and Burberry. Thus, it is important to market the MP brand as something that caters to luxury goods market, but with a competitive price. At the same time, it is important to realize that MP will have to operate in a highly competitive environment. Thus, success can only be assured depending on the pricing and segmentation strategy employed by the corporate leaders at MP.
First-Class Online Research Paper Writing Service
- Your research paper is written by a PhD professor
- Your requirements and targets are always met
- You are able to control the progress of your writing assignment
- You get a chance to become an excellent student!
It is important to point out that MP will only succeed, if the corporate leaders will utilize effective marketing strategies, such as: product strategy; pricing strategy; promotion strategy; and product distribution (Gitman & Daniel, 2009). The following pages will take a closer look at the strategies that will be utilized by the MP brand, and analyze, if these strategies can help the company succeed in the luxury goods market with a focus on clothing lines. At the same time, the proponent of this marketing strategy will outline a plan to sell MP products beyond the borders of the United States in the countries like Canada, the United Kingdom, Mexico and other countries in South America.
In the first five years of operation, MP is compelled to copy the style of Prada, Gucci, and Burberry. By doing so, the company can attract the attention of consumers and begin to make a name in the luxury goods market. It is important to follow this strategy, because MP is an unknown entity. Consumers have no idea when it comes to the quality of MP products. It is imperative to attract their attention and then entice them to try the mentioned products. However, when they purchase MP products, they will be surprised to find out that the materials used are similar to those that can be found with more established names. They will come to realize that the price difference is not real, due to the difference in quality, but only because of the brand name.
Since MP attempts to take a slice of the luxury brands market, the company must enhance its image. However, at the same time the MP brand must develop a product strategy linked to an effective segmentation strategy. The corporate leaders at MP must not mass produce their products, and sell it like a ready-to-wear line of clothing. There must be a sense of exclusivity. The customers must feel that when they acquire MP products, they belong to an elite club.
Product Segmentation and Price Strategy
It has been made clear that MP must cater to the luxury brand market. However, it has to be pointed out also that within this particular market, there are different types of customers. They have different needs, and more importanty, different purchasing power. It is, therefore, important to develop a product hierarchy. In this case, there is the MP Diamond. The second line is the MP New York. Finally, the third line is MP Sport.
MP Diamond is the most expensive of the all three clothing lines and caters to high-end customers. These are people who can truly afford luxurious clothes, and do not really care about the price of the item. They simply wanted the high-quality goods that MP can offer them. The focus for this product segmentation strategy is on people who are fashion-conscious. These customers have meticulous tastes.
The second tier is the MP New York, and it is comprised of apparel that is priced in the mid-range. Furthermore, the items that belong to this line are designed to be used in week day or work wear. Thus, the clothes that belong to this line are more affordable than those that belong to the MP Diamond line. However, it caters to people who demand quality, but less expensive clothing. These customers also want to have clothes that can be used in the offices or in their corporate work environment. The clothes that belong to the MP New York line have to be smart, and yet at the same time, with enough substance and style to capture a particular segment of the market.
Aside from the quality and the price of the products found under the MP New York line, there are also more choices for the middle-class consumer. For example, in the MP Diamond women's wear division, there are only three groups of products, and these are: coats; dresses and accessories. In comparison to the MP New York line’s women's wear division, one can find three more types of products available. In addition to coats and dresses, the MP New York product line also offers jackets, shirts, pants and sweaters.
The third and the final product line is called MP Sport. This product line is not as well developed, as MP New York, but the focus of this clothing line is sports jacket. In addition, there are also similar-type products created by the MP Company for the outdoors activity. An example of the other products in this clothing line is biker's jackets, field jackets, ski jackets, etc. The focus is on men and women.
When it comes to the promotion strategy, the MP brand will utilize the social media, such as Facebook and YouTube. In a later time, the company will finance the creation of a social networking website, designed solely for MP customers. In this website, the customers will come to share photos of them wearing the MP products that they purchased from the stores. It is also important to use the power of YouTube as an alternative promotion strategy. Customers are encouraged to create videos with regards to their passion for the MP brand, and then upload it on YouTube for everyone to see.
The distribution strategy is to make the MP brand available outside the United States in the counttries like Canada, the United Kingdom, Mexico and other countries in South America. The main strategy is to sell MP products online (Mauro, 2003). The reason why these countries were chosen as target markets is that the target consumers in these countries can understand the English language. Secondly, when they purchase online, the U.S. headquarters of the MP Company can easily ship the products to these countries. For example, in case of Mexico and Canada, the only thing required is to establish a reliable courier service that will deliver the products to the homes of the customers. In case of countries like Puerto Rico and those that can be found in South America, the company can utilize the service of courier companies, like Fedex or DHL.
The strength of the MP brand is that it is managed by entrepreneurs who are knowledgeable about the luxury goods market. Thus, they know where to get the raw materials for their products and the professionals that they can hire to manufacture high-quality apparel. They know how to develop the appropriate marketing strategy that will enable the company to take a slice of the luxury goods market, especially when it comes to developing clothing lines.
The weakness of the company is that it has no established name. The target market is not yet aware of the existence of the MP brand. However, opportunities abound for the company, because there is a demand for luxury goods, especially top of the line clothes (Weinstein, 2004). The only thing that has to be done is to carefully execute the marketing plan, in order to create a name for the MP brand.
Corporate leaders at the MP Company must look into the macro-environment and realize that it is composed of all the complex and uncontrollable variables that, when taken together, form the structure that enables it to conduct business in the local and international market (Gitman & Daniel, 2009). Thus, it must be pointed out that MP had to deal with the impact of the financial crisis that hit the United States a few years ago. Although, the U.S. market had showed signs of recovery, there is no denying the fact that economy is not as strong, as it once was, and there are many people who are unemployed. These issues can be considered as threats to the company’s survival.
The corporate leaders behind the MP brand are well-aware of the value of strategic marketing. This realization is the reason why the company developed a marketing strategy that includes product segmentation. The purpose is to attract more customers, and at the same time, make the MP brand accessible not only to high-end consumers, but those who are looking for quality clothes, but unable to purchase very expensive luxury apparel. The MP brand is poised for the success because of the Internet and social networking tools to improve its marketing strategy, as well as sell online to tap the international market.
Free Essay Sample «Marketing Plan: MarwanPerry Co»