Running head: BRAND PROMOTION 1
Brand Marketing 12
Preliminary International Marketing Report: Brand Promotion
BUS433 | International Marketing
Marquita Watkins
Argosy University – Online
August 8, 2018
Introduction
I am currently the consultant for Trukfit Clothing Enterprises who are responsible for the distribution of specialized/work-based clothing to various markets. The company itself specializes in manufacturing clothes suited for a particular profession or task. For instance, the company supplies to factory workers who are in need of specialized overalls and boots, additionally, the company also construction clothes to construction workers and so forth. The company is currently contemplating the possibility of expanding to the U.S market. As the consultant, I need to undergo intense research on the factors that need to be wholly considered when expanding into a foreign market. Proper analysis of the factors in question will be crucial if the company is to successfully penetrate the market. Failure is by all means, not an option.
Relevant and Applicable Theories
Thorough research into the market has revealed that the company needs to take into consideration some prominent marketing concepts, which are crucial for success. The following is a compilation of some of the most important marketing concepts that need to be taken into great consideration.
Market segmentation, as the term suggests, refers to the complete specialization of market demand based on the different tastes and requirements sported by specified individuals (Heakal, 2017). For instance, as per the clothing market, there are some groups who prefer sporting attire and clothes while there is a group, which prefers official wear in the likes of suits, ties and such. In such a scenario, the individual market is segmented into two groups, those that prefer sporting clothes and those, which prefer official wear. Additionally, it is important to note that overlapping across different segments often happens. For example, a person might prefer both sports clothes and official wear. In some scenarios, overlapping is not common or is even unheard of, for instance, men, in most cases, do not prefer women’s clothing. In light of the above, segmentation is often based on a number of factors including, income, age, sex, occupation, social styles and even lifestyles to some extent (Heakal, 2017). Overall consumer behavior is the main indicator of segmentation within a particular market. For Trukfit to be able to expand into the U.S market, it needs to learn about the consumer behavior that is present at the region. The company needs to know the overall tastes and preferences of workers and organizations within the region.
Segmentation will help the organization to identify ...
1. Running head: BRAND PROMOTION
1
Brand Marketing
12
Preliminary International Marketing Report: Brand Promotion
BUS433 | International Marketing
Marquita Watkins
Argosy University – Online
August 8, 2018
Introduction
I am currently the consultant for Trukfit Clothing Enterprises
who are responsible for the distribution of specialized/work-
based clothing to various markets. The company itself
specializes in manufacturing clothes suited for a particular
profession or task. For instance, the company supplies to
factory workers who are in need of specialized overalls and
boots, additionally, the company also construction clothes to
2. construction workers and so forth. The company is currently
contemplating the possibility of expanding to the U.S market.
As the consultant, I need to undergo intense research on the
factors that need to be wholly considered when expanding into a
foreign market. Proper analysis of the factors in question will
be crucial if the company is to successfully penetrate the
market. Failure is by all means, not an option.
Relevant and Applicable Theories
Thorough research into the market has revealed that the
company needs to take into consideration some prominent
marketing concepts, which are crucial for success. The
following is a compilation of some of the most important
marketing concepts that need to be taken into great
consideration.
Market segmentation, as the term suggests, refers to the
complete specialization of market demand based on the different
tastes and requirements sported by specified individuals
(Heakal, 2017). For instance, as per the clothing market, there
are some groups who prefer sporting attire and clothes while
there is a group, which prefers official wear in the likes of suits,
ties and such. In such a scenario, the individual market is
segmented into two groups, those that prefer sporting clothes
and those, which prefer official wear. Additionally, it is
important to note that overlapping across different segments
often happens. For example, a person might prefer both sports
clothes and official wear. In some scenarios, overlapping is not
common or is even unheard of, for instance, men, in most cases,
do not prefer women’s clothing. In light of the above,
segmentation is often based on a number of factors including,
income, age, sex, occupation, social styles and even lifestyles to
some extent (Heakal, 2017). Overall consumer behavior is the
main indicator of segmentation within a particular market. For
Trukfit to be able to expand into the U.S market, it needs to
learn about the consumer behavior that is present at the region.
The company needs to know the overall tastes and preferences
of workers and organizations within the region.
3. Segmentation will help the organization to identify the target
segments. The above activities will help in marketing products
to that specified segment of consumers. For instance, the
company cannot market their products to homes and settlements
since there is likely to be a net less demand for the products
there. Additionally, learning segmentation is important since it
helps the organization develop resource capabilities and in the
design of value for consumers and stakeholders (Burgess, 2010).
In light of the above, developing marketing segments is an
important task since it prevents wastage of resources, which is
done when goods are marketed to the wrong segments of
consumers. One should hence be fully aware of consumer needs
and wants during marketing hence segmentation is an overall
important task.
Prior to identifying the target market, or the segment
which the goods will be wholly marketed to, the next and most
important step is to establish the marketing strategies which
will be used to market the goods to the target segment. The
strategies used usually follow a single marketing mix. Examples
of marketing strategies include the Concentrated Global
Marketing Plan, which involves targeting a specified niche in
the market. It basically involves thorough specialization and
manufacture of goods exclusively for a specified group in the
market. Trukfit, as a company, may wholly benefit from such a
strategy since they target the factory worker niche of the market
(Burgess, 2010). The efforts made should be thoroughly
directed to large prominent organizations and factories where
factory-based processing/manufacturing are thoroughly done on
a day-to-day basis. Such a strategy is crucial for the
preservation of organization resources while at the same time
getting a significant number of gains.
Standardized marketing strategy involves targeting many
niches and marketing segments at once. The overall benefit of
using the standardized marketing strategy is that awareness is
spread to a large group of individuals within a significantly
short amount of time. Such a marketing strategy will, however,
4. prove to be not useful as per Truckfit standards. The
organization is wholly focused on manufacturing goods for a
highly specialized consumer segment; it would not make sense
to target individuals who are not in need of the product they are
selling. If Trukfit had been a general clothes shop, using the
Standardized Marketing Strategy would actually make more
sense.
Competition is also a very important theoretical element,
which one needs to take into full account. Competition is
present when there is the existence of a supplier who deals with
similar goods offered by the company (Fan et al., 2015). In
Trukfit’s case, the competition will primarily consist of
organizations, which manufacture and distribute industrial
garments and accessories. Competition is more severe if the
existing company currently holds a larger share of the existing
market and it has already established itself as the recognized
brand image all around.
The reason as to why competition exists between two or
more manufacturers is the fact that they all strive to appeal to
the same segment of consumers. Since the primary goal of
various businesses is to increase profit while minimizing
expenditure, they need to sell goods to the largest number of
consumers possible. In a scenario where two or more
manufacturers strive to achieve the primary goal for their
business, competition is bound to occur (Fan et al., 2015). In
such cases, the manufactures should strive to be more appealing
to the consumers and deliver the best services and thus become
the more preferred brand compared to their competitors.
Competition with a company with over 80% market share is
often futile and leads to wastage of resources. To put the above
idea into perspective, imagine a newly formed soft drink
company attempting to compete with Coca-Cola or Pepsi. It is
often unwise to compete with monopolistic brands. Instead, one
should strive to form partnerships with such brands and
therefore make use of their resources to further expand the
business in question.
5. Stakeholders should try as much as possible to eliminate
the existence of perfect competition within the region. They
should strive to ensure that their goods are not always a replica
of the existing products, but a far more superior version. The
problem with investing in the United States is the fact that a
large number of their industries are already established and they
currently hold a significant amount of the market value (Fan et
al., 2015). By convention, this problem is existent when one
intends to invest in an already existent first world country.
Engaging in acts such as brand marketing and awareness can do
wonders in marketing. After the population has been made
aware of the goods and services offered, the next phase is to
deliver products that actually cater to a large number of their
needs. Such acts require a large degree of capital investment but
it is worth it in the end.
The final theoretical element, which is crucial if the
company intends to expand to foreign markets, is the product
design and packaging elements. The company should be able to
design and package the product in a manner that will be
appealing to the targeted segment. The product packaging and
design should be unique in a manner that does not draw
attention to the already existing brands in the market. The
packaging and labeling should promise quality to the consumer
and the company should go on to deliver on that promise by
supplying quality goods to the consumers. Labeling very crucial
since it often corresponds to the brand image of the
organization (Fan et al., 2015). Goods should be appropriately
labeled based on prevailing circumstances since it is also an
advertising feature to some extent. Conclusively, the packaging
and product design add to the tangibility and attractiveness of
the products hence they should be taken into account. They
strengthen the overall brand image and serve to attract
customers.
Other important elements, which need to be considered,
include competition between the already existing suppliers, the
need of the product in the already targeted market and finally
6. the different types of competition that are already existent in
the overall market.
Relevant Components of Trade between Home Country and the
U.S
Companies that intend to expand into foreign borders need
to be thoroughly aware of the laws that govern the trade
regulations of the land. In such a scenario, a PESTLE analysis
is very crucial since it provides a rough overview of important
Political, Economical and Social elements that form part of the
target country’s business environment (Fan et al., 2015). The
laws, in general, may be conducive for business expansion into
the region or they may be generally unconducive. Generally,
unconducive reasons, which may hinder expansion into the
target country, include high revenue tax, which is a portion of
income paid to the country’s government in order to facilitate
business activities. The regulations may also move on to affect
the means through which goods are generally advertised to the
public. Some countries offer exceedingly strict policies, which
restrict the use of certain terms or even featuring copyright
material in advertisements.
In order for one to fully adjust to the market, which is
being expanded to, one needs to take into through account, a
number of factors which pertain to the trade regulations of the
target country. Trade agreements are crucial for proper
expansion since it displays the terms and conditions between the
two countries which need to trade (Keegan & Green, 2015).
Trade agreements are generally implemented for the sole
purpose of regulating, the trade of goods and services and the
general flow of goods across various platforms. Prominent
American bodies, which are in charge of regulating trade
between various bodies, include the General Agreement on
Tariffs and Trade (GATT) and the North America Free Trade
Agreement (NAFTA). The GATT ensures a multilateral trade
agreement, which promotes nondiscrimination and multilateral
trade across various platforms. In order for one to trade within
the United States, he or she needs to register with both of the
7. two bodies, which will, in turn, carry out an audit test on the
company and test the goods themselves to verify authenticity
(Keegan & Green, 2015). Once the organization has been fully
authenticated, it needs to agree with the trading terms offered
by the United States before trading and expansion can actually
commence. It is important to note that the above explanation is
only a summary of the process. The entire intricate process
usually involves a series of steps and it takes a significant
amount of time to compete.
The United States is characterized by a western cultural
background, which, in general, hosts a large number of different
cultures races and ethnic societies. The United States is a
mixture of numerous cultures hence the customer segmentation
is harder to specialize (Law, 2016). Regulations that govern
trade in the region mainly cover aspects such as import tariffs,
trade barriers (The restriction as to which type of goods are
allowed to enter into the states and which are not.),
documentation, export controls and many others are present in
order to restrict unfair trade practices. For a country to expand
into the United States, they need to agree with the policies
listed above. It is important to note that the policies greatly
encourage foreign trade within the country hence the United
States is a hot investment option (Law, 2016). The only reason
as to why people may refrain from investing in it, as a country
is the fact that it is already at the brink of development hence
there are a variety of industries that produce local products
from the country. Places that are developing or that are
currently under development form the best development options.
They include third world countries and such.
To summarize, investment into the region requires
agreement to the state laws and regulations governing the
distribution of goods and services within the country and pass
through the international trade bodies, which will assess the
overall authenticity of the company and move on to process
documents that are needed for proper expansion.
Rational
8. There is a specified rational in the company’s decision to
choose to expand into the United States. The market, as already
described above, is large and very conducive to external traders
who wish to wholly invest in the country. Prior to penetrating
and making their way to the U.S market, prominent investors
have found it to be wiser to actually maintain shares and
relations within the market (Heakal, 2017). Further research has
indicated that companies are able to pinnacles of commercial
success if they present a strong product that speaks for itself
and generally outshines the competition by a large number of
factors. Additionally, investors also thrive in the United States
when they develop a comprehensive marketing strategy and
finally enact a strong distribution and sales network all
throughout the region. In general, investors should always
ensure they have the upper hand while investing in an already
established market such as the United States.
In terms of positioning, Truckfit has a variety of different
products, which satisfy different roles all around the
manufacturing plant. The attire offered by the company may
also appeal to casual garden workers, masons and so forth. As
already described above, the most important theoretical aspect,
which will be considered while penetrating the market, will be
the means through which the goods will be marketed to
consumers. Individuals need to be aware that Trukfit’s goods
are available in the market and they need to learn the various
means, which they may get access to them. Additionally, the
consumers need to know Trukfit’s products are better than the
already existing competition’s products. In light of the above,
the company needs a solid marketing mix, which will help them
achieve awareness. Popular awareness forums in the likes of
Facebook, Twitter, and other popular social media platforms
should be extensively used to ensure proper awareness. Most
marketing initiatives should, however, be focused solely on the
target segmentation of factory workers and
manufacturing/processing organizations. Selling unique and
forms of the factory clothing will allow the organization to have
9. a unique signature and thus will be wholly preferred compared
to other organizations (Burgess, 2010).
Developing a Brand Strategy
Developing a brand strategy is crucial since it will help the
company in the establishment of products within the United
States. Branding, as already described above is very crucial
since the brand is more often than not, a depiction of the
company’s image. Strategies, which may be used to ensure the
brand brings out an overall positive company image, include
attitude branding, multigrading, nation branding and
introducing brand extensions. Attitude branding can drive on
the idea that the consumer is a human being and he or she
deserves to be treated like one. The consumer will hence be able
to perceive the idea that the organization exists only to satisfy
human needs. Additionally, brand extension will also market the
various industrious implements, which the organization offers
such as gas masks, fire extinguishers and so forth. It is
important to note that the main emphasis will be laid on the
factory worker clothes and accessories.
In most scenarios, it is important to note that already
existing competition can be effectively overcome by
establishing a proper brand image of the good or service in
question. Truckfit will, therefore, focus on building a strong
brand image and appealing to the consumers in their newly
founded market (Burgess, 2010). Additionally, marketing
should be wholly concentrated on the target segmentation since
the goods offered target specified groups of people more than
others. Conclusively, proper marketing and the establishment of
an increasingly strong brand image is crucial toward the success
of Trukfit. In light of the above, such tasks will be paramount
as per the establishment process.
Proper penetration into the market requires Trukfit to first
take its time to evaluate the prevailing market conditions. It is
important to note that in some scenarios, the thorough
evaluation may actually reveal that it is not conducive to
expand into the United States Market, in light of this; a more
10. suitable expansion option may be sought after. The United
States will then be considered for expansion once the
organization has grown large enough to overcome the
constraints offered by the U. S market. Based on the research
undertaken, the United States Market is very conducive for new
and foreign businesses. The regulations and policies ensure that
the businesses are able to grow within the region. Additionally,
they also encourage further investment by already existing
investors. The United States market is hence a good place to
invest in, although it has its fair share of downfalls. For
instance, there are a large number of already existent industries
hence investment may lead to an intense amount of competition
all throughout.
Conclusion
The businesses that established in the United States some
time ago hold a large portion of the market share within the
region and hence trying to compete with them may prove in vain
in the end. The company hence needs to investigate the factory
garment distribution industry very thoroughly in order to
actually ascertain whether it would be worthwhile to invest in it
(Burgess, 2010). As already described above, the research may
actually reveal that there are more plausible options for
investment such as Canada which borders the United States at
the north and even the currently developing countries that are
found in Southern America.
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