- The industry: Thai-Lay Company is planning to enter in the UK garment industry. The UK garment industry is providing large number of customers having different tastes and needs. Therefore, Thai-Lay Company can ensure business growth in the industry.
- Industry and company: Thai-Lay Company’s business objective is to market good quality and well designed garment products in the UK garment industry. Cost effective production and marketing strategy should help the company to supply its products economically and profitably.
- The business concept: The business concept of Thai-Lay is based on creating a brand image of unique designs with economy pricing for its products. In the competitive UK garment industry this type of brand image will help the Thai- Lay products to get customer loyalty and market share.
- The product strategy: The main products supplied by Thai-Lay are casual wares and T-Shirts. Other garment products suitable to the targeted customer segments are also produced by the company.
- Entry strategy: The market entry is secured by quality and uniquely designed products. Awareness about the product features should be developed among customers by using advertising tools such as media, fashion magazines, TV adds etc.
“The competitive strategy for an established firm to start a new venture and launch a new product must be shaped by the characteristics of the firm, the market, and other environmental factors.” (Block and MacMillan, 1999).
- Growth strategy: Market growth is ensured by product diversification and setting up of more retail units in important market centres.
- Market research: Market research personnel should be appointed as advisors for supplying information relating to changing tastes and needs of customers.
- Customers: The targeted customers for the product are teenagers and youngsters belonging to the age group of 15 to 35 years.
“Selecting a target market segment for a product rather than attempting to sell to the entire market can be a more efficient use of promotion dollars, because a greater market share can be achieved by capturing most or all of a segment via a carefully directed marketing plan”. (Target Market. 2008).
- Market-size and trends: The market is characterized by large number of buyers and sellers. Competition is very strong and product design and pricing are the main criteria for product selection. The tastes of customers are always changing in nature.
- Competition: The number of suppliers in the market is large. Thus each firm in the industry wants to share the market with its rival firms. They have to compete with other firms for increasing the market share.
- Estimated market share: Thai-Lay Company proposes to get a market share of 25% within two years in the industry with a sales growth of 50 % per year.
Overall marketing strategy
- Pricing: Penetration pricing should be adopted by Thai-Lay for entering into the keen competitive garment industry of UK. Long term market control can be ensured through this strategy. Cost leadership strategy of the firm should help to follow the penetration pricing policy.
- “Cost leadership strategy is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average.” (Marketing Plan. 2008).
- Sales tactics: Sales promotions should be strengthened by appointing talented and well experienced sales personnel in the marketing units.
- Customer Service: Better customer service should be provided to the customers at the retail outlets. After-sales service must be ensured through providing warranty on color shading and quality subject to certain conditions.
- Advertising and promotion: All available Medias should be used for the brand promotion. Due to the diversified product in the market,
- Distribution: Thai-Lay’s objective is to follow retail marketing strategy by setting up retail outlets in strategic business centres. Well-trained and experienced sales personnel should be appointed in each outlet for influencing the buyers.
- Development plans: The product design and development should be based on market research. Well talented designers should be appointed for developing designs for meeting the future trends of customers.
- Difficulties and risks: The difficulties arising from changing market trends and economy should be overcome with adequate fund maintenance. A part of the profit from ongoing business should be set apart for meeting the financial risks. Product diversification strategy should help the product risks.
“Planning reduces uncertainty and makes sure everybody is committed to the achieving the goal. It also forces the staff to anticipate any changes so they can construct an appropriate response.” (Management and Organisational Planning. 2006).
- Costs: A major part of the fiancé required for the business should be met from owned funds of the company. Other sources of fiancé include banks and other financial institutions.
- Proprietary issues: The uniqueness in product designs should be well protected by patent, trade mark, contractual rights and agreements. The branding of product will solve copying problems related to designs.
“Suppliers in today’s cut throat market need to clearly differentiate themselves by evidencing to their customers what value they create for their customers’ business and showing clearly how they leave their customers better prepared to win business than other suppliers.” (Jarvis, 2006).
- Facilities and Improvement: Proper lay out should be designed for each retail outlet. Warehousing facilities should be arranged near the retail units which will help to reduce the lead time.
- Organisation: The entire business concern should be under the control of CEO. The decisions of Board of Directors should be subjected to the final scrutiny of CEO.
- Key management personnel: Separate managers for production, marketing, quality control and promotion should be appointed who are liable to the Board of Directors for their operations.
Bibliography
BLOCK, Zenas., and MACMILLAN, Ian. (1999). Innovation and Entrepreneurship: Market Entry Strategies for New Corporate Ventures. Knowledge Wharton.
JARVIS, Graham. (2006). Adapt to Changing Customer Needs to Win Sales. CRM Community.
Management and Organisational Planning. (2006). Web.
Marketing Plan. (2008). BRS: Centre for Business Planning.
Target Market. (2008). Answers. Web.