BSD Apparel Company’s Marketing Plan Essay

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Updated: Feb 14th, 2024

Introduction

I am an international marketing manager working for the company BSD Apparel that manufactures clothes. The company was founded in Dallas in 2005, and it produces men’s and women’s clothing. BSD Apparel has several workshops and distribution channels. However, it expands, and this process requires new customers. There are several goals that the company wishes to achieve from export sales.

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First, exporting should increase profits. Second, it enhances the flexibility of the company as it can initiate production of new goods. Also, export sales can improve the independence of the company because new markets offer many new opportunities. Therefore, the main goal the company has set is to reduce overall risks and ensure stable development. Export sales can eliminate or significantly reduce risks that the company is exposed to on domestic markets. It will subsequently lead to higher growth rates and stability.

The main products for export are planned to be men’s and women’s jeans. The HS Code for men’s jeans is 62034200 and for women’s jeans – 62046200 (“Search Import”). These are casual-style denim jeans that are very popular throughout the world. This product has been successfully distributed in the United States since the foundation of the company. Many customers highly appreciate this brand due to great quality and appropriate prices. The cotton that the company uses as a raw material is produced by different Asian manufacturers. This textile is environment-friendly.

As an international marketing manager, I need to conduct market research. There are several reasons for it. First, it is necessary to identify new possible customers and understand their needs. Second, this research can help the company set clear and concise goals and design new successful strategies. Third, there are various obstacles that might be overcome by means of market research. Finally, it will contribute to business expansion. The main goal of this paper is to conduct market research in order to identify effective marketing strategies that will help to enter three foreign markets.

Foreign Market Analysis

There are 3 targeted countries for export. These are Japan, Canada, and Germany. Japan is a complex country with rich history and culture. It is one of the biggest economies in the world. Japan has a great population of middle-class customers. This country is one of the active international traders because the market of Japan is very stable and reliable. The next destination is Canada. This country has a safe socio-economic environment that attracts new exporters. It offers various trade opportunities in different sectors. Canada is the most prominent trading partner for the United States.

Also, one of the official languages in this country is English. It is an additional important aspect that enhances the collaboration and cooperation between our countries. Finally, the third exporting opportunity is Germany. Its economy is at the fourth place in the world (“Germany – Market Challenges”). In Europe, Germany is the largest exporting partner for the United States. This country supports free-market concepts, and it has certain government regulations and social programs.

Historically, the United States have very close economic relationships with these countries. Also, due to strong economies and favorable demographic situations, potentially, it might be highly successful enterprise. These countries have big and wealthy populations. In addition, jeans are still a highly popular fashion trend in these cultures. Therefore, it is a very demanded product on these markets. The fact that the product made in the United States also attracts many customers.

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There are several marketing strategies that might be applied to promote this product. The first strategy, the use of social media, is common for any exporting market. It is necessary to find a talented social media manager who is able to put together a team of professionals to address existing challenges. Another important tactic is focusing on search engine optimization (SEO). SEO might be a very powerful marketing tool that offers many opportunities for a business as it enhances the value of a product. Although such strategies work well on most markets, it is necessary to incorporate some individual features depending on a targeted country.

In Japan, a website should provide detailed information about a product. Also, some simple introductory phrases in Japanese elicit positive attitudes in customers in this country. In Germany, it is necessary to emphasize the high quality of a product and underline its modern style. However, the best move to successfully enter Canadian market will be frequent visits to business partners in this country. It is very important to create close relationships with them as it increases chances to accomplish long-term goals.

Specific rate duties are another important aspect for export. The duty rate for jeans in Japan varies from 8.4 to 12.8 percent (“Duty Rates”). The duty rate for this product in Canada varies from 14 to 16 percent. This tariff for jeans in Germany varies from 17 to 18 percent (“Import Customs”). It is also necessary to modify our products considering fashion trends in each country. For example, traditional and vintage styles are highly popular in Japan. The German market demands ultra-modern outfit. Therefore, high-stretch jeans with low elastin featuring flex fabric will be a special modification for the German market. However, the Canadian market is very diverse, thus it is unreasonable to modify existing products.

There are different challenges for export depending on a country. Specific standards and testing requirements in Japan serve as an additional barrier for implementation of the company’s export goals. Therefore, it is necessary to study Japanese regulations regarding this issue and fulfill all demands. Export to Canada is complicated by bilingual documentation and different provincial sales tax accounting. Hence, all necessary documents will be translated into French, and tax systems of every province will be taken into consideration. However, the only challenge on the German market is its certification (“Germany – Market Challenges”). The products should abide by safety and environmental standards. However, most of them are similar to such standards in the United States, thus it will not be a significant problem for the company’s export plan.

Supply Chain

Raw Material Suppliers

One of the main denim suppliers to BSD Apparel is Chinese manufacturer Haining Bafang Weaving Co., LTD. It is a professional textile producer that works under the supervision of China Cotton Textile Association and Zhejiang Cotton Textile Association (“Company Profile”). This company has performed for more than 50 years. Haining Bafang Weaving is a prominent global producer that offers different types of denim. Another important supplier to our company is Zhejiang Jinsuo Textiles Co., LTD. It is also a Chinese company located in the Economic Development Zone. This company was founded 20 years ago, and now it occupies approximately 260,000 square meters (“Zhejiang Jinsuo Textile”).

The firm specializes in denim fabric and clothing. The workshops of this company are equipped with modern machines and tools. Zhejiang Jinsuo Textiles offers several types of denim fabric that include 100% cotton, stretch, strip and many others. Its textile is exported to more than 50 countries including the United States. Also, some of the company’s raw material suppliers are located in India. Aarvee Denims is one of the leading textile manufacturers on the global market. It was established in the late 1980’s (“Who We Are”). It specializes in the production of yarn and denim fabric. The company ensures permanent quality control at every stage of manufacturing.

It quickly responds to demands of the global market, offering new types of products. Another prominent supplier from India is Group Ashima. It is one of the largest textile manufacturers in the world. This group unites three companies: Ashima LTD, Ashima Dyecot LTD, and Atrium Exports LTD (“Group Overview”). These firms offer a wide range of textile products that include denim fabric, dyeing yarn, and fusing interlining.

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Supply Chain Flow

Supply chain flow has many different functions. However, there are several most important strategic areas. The most successful models are made up of five stages: planning, sources, production, delivering, and returning. Material flow implies a stable flow of final products from a producer to customers. The main tool that ensures a stable material flow is warehouses. It is necessary to control this process to avoid delays and stops.

Products have to move quickly because it enhances the effectiveness of a whole enterprise. Another important aspect is a backward flow. It takes place when customers send products that need to be repaired back to a producer. Establishing of various agencies is crucial to ensuring this type of a flow. The first element in a supply chain flow for raw materials is a vendor. There are four main vendors that are described above that offer their products to BSD Apparel. Sourcing is the next stage that involves managing the procurement of required components. The vendors provide our company with all necessary materials for the best possible prices.

All deliveries and payments are scheduled by contracts. The next important aspects of a material flow are transportation and inbound storage. Our company developed an effective transportation system that includes airfreight, shipping, road and railway transport. Also, BSD Apparel has several warehouses located in different parts of the United States in order to ensure inbound storage. The next stage is the production of goods. After all necessary components are obtained, manufacturing processes start in several workshops. Finally, delivering and returning are two very important stages that are also included in production.

International Marketing Perspective

Global markets become more engaged in macroeconomics across different nations. Therefore, it is necessary to design and conceptualize marketing strategies to adhere to the customers’ demands. There are various approaches that might be adopted to address this issue. First, the transaction cost method is applied to study the development of global markets. This concept allows making effective decisions on entering international markets. Uncertain environments might be determined by means of the transaction cost method. It is an assessment tool that is widely used among exporting companies.

Second, the adaptation method involves examining all possible advantages of adjustments to local markets. Standardization of different elements of products might be even more effective than adaptation to the needs of new customers. Third, in order to shift resources between international markets, the global integration method might be applied. This approach is necessary to deal with competitors that enter the same markets. Also, this method allows developing strategies for the promotion and distribution of products. Finally, the evolutionary method is applied to evaluate the business operations that will change over time due to the expansion of the company.

However, there are several measures that can help to adapt the company’s products and services to international markets. At a specific point, it might be very helpful to establish contractual agreements with local firms that will ensure promotion and distribution. It can be implemented via licensing, franchising, or joint enterprises. Also, the products might be modified to satisfy demands of local customers. Such modifications are related to design and a visual effect. However, the adaptation of the product should be based on a thoroughly conducted customer and export research that allows determining customer needs and strategies for expanding a business.

The Role of Supply Chain Partners

Supply chain management assists in the organization of a supply partner network. This system should operate effectively and steadily. Relationships among partners play the main role in this process. Therefore, the improvement of collaboration is one of the main goals of BSD Apparel. In order to provide customers with the high-quality products, our company works with different international business partners. Supply Chain Group is a firm that develops and integrates highly effective supply chain systems. It offers various solutions to establish stability and high speed of a product flow (“Our Success”). Our next partner is Consulting LLC.

This company specializes in engineered labor norms. Different management systems, standards, and courses help to enhance the overall performance of BSD Apparel. BFS Consulting is a firm that offers supply chain, logistics, promotion, and distribution schemes through which our company can implement exporting goals. CBRE is one of the global leaders in real estate business. This company provides up-to-date information about global real estate markets (“Our Success”). It conducts analytical research of existing offers to satisfy needs of its clients. To establish effective collaboration with our supply chain partners, it is necessary to share all required data very fast. Hence, it demands transparent communication and constant monitoring of the system’s inner processes.

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Transportation and Logistics Budget

Transportation and logistics budget should be carefully planned to avoid possible problems and increase profits. There are several important aspects that are necessary to take into consideration to implement short and long-term goals. First, timing is the most crucial factor. Budgeting should be completed in the first month of a fiscal year. Second, it is important to identify expectations and plan a budget regarding the overall business. Logistics have to fit into the company’s systems and strategies. Therefore, budgeting should involve comprehensive assessment of the effectiveness of logistics funding.

The main goal is to reach financial balance. Third, it is necessary to focus on data integrity to avoid miscommunication. Fourth, all expenditures including temporary labor and employee’s compensation have to be considered. It should also involve insurance coverage to address one-time exposures. Finally, another important aspect is investments in new IT systems as outdated technologies can lead to serious financial loss.

The Incoterms Rules

The Incoterm rules are essential for international trade as they guide all players in this system. Although there are many of them, BSD Apparel needs to use only several. “Carriage and Insurance Paid To” implies that the products are delivered to the carrier and the costs of transporting along with insurance against customer’s risks should be paid by the seller (“Incoterm Rules 2010”). “Delivered at Place” obliges the seller to pay for all risks related to transporting products to a specified place. “Cost and Freight” requires the seller to ship products to the named destination and pay for the possible damage. These are very favorable terms for buyers in the targeted countries. Therefore, it will not require additional negotiations as all expenses will be charged to BSD Apparel.

Action Plan

In order to achieve all exporting goals, the company should follow an action plan that covers the most important areas of international marketing. The first step is to identify target markets, emphasizing potential customer wants and needs. This step will allow the company to modify products and get abundant export orders. It will require international market research that can provide all necessary information to determine existing opportunities. The second step is to design export marketing tactics. When target markets are identified, it is very important to develop effective marketing strategies.

They should focus on entering markets, pricing, branding, distribution, and supply chains. Strategies that are based on the international market research will help the company to enter markets with the greatest potential, get into a competitive position, design products that meet the customers’ expectations, determine adequate prices, and eventually promote the brand, increasing its popularity among the local public.

Effective and elaborate tactics improve chances for successful performance on new international markets. The third step is to develop communication instruments. The company’s website, catalogs, handouts, are the most useful tools to interact with customers. They have to be informative, aesthetic, and influential to increase interest in offered products among potential buyers. The final step is to generate export inquiries. In order to accomplish this goal, it is necessary to focus on promotion.

Summary

The main goal of our company is to successfully integrate into the targeted markets to expand business and increase annual revenue. In the next 3-5 years, some of the possible achievements are increased sales and profits, a higher competitive position, diversification, the lower cost of production, and valuable knowledge and experience. Export leads to additional sales in the long term, increasing profitability. Also, exporting companies become more competitive on domestic markets. Participating in the global trade lets a company widen the range of products and reduce possible risks. It also improves business potential that leads to its expansion. Finally, international companies exchange valuable information about marketing strategies and techniques.

This research project reveals to me three major areas of exporting. The first area is a supply chain. It is a complex system that is made up of various organizations and agencies. This system facilitates the product flow between a producer and customer. Another important area is marketing strategies. There are different techniques that allow a company to promote its products on new markets. Finally, the third area is market analysis. Such analysis is necessary to identify all possible opportunities, challenges, and risks. Therefore, it is an essential part of a marketing plan as it determines all subsequent exporting actions.

The main findings of this research are the cultural differences that have the most significant impact on marketing strategies. Japanese people prefer vintage and classic style. Meanwhile, ultra-modern attire is appealing for Germans. However, Canadians are a very diverse nation that supports different fashion trends. The analysis shows that, potentially, jeans are a highly profitable product for export. Although there are certain challenges that might occur on each market, advantages of this enterprise outweigh its drawbacks.

Works Cited

“Company Profile.” BafangFabric. Web.

Japan Customs. 2017. Web.

Export.gov. 2017. Web.

“Group Overview.” Group Ashima. Web.

“Import Customs Procedures in Germany.” Trade Portal, 2017. Web.

ICC. Web.

“Our Success is Based on Strong Partnership with Great Companies.” MWPVL. Web.

“Search Import Export Data of India.” Zauba. Web.

“Who We Are.” Aarvee. Web.

“Zhejiang Jinsuo Textile.” BigTrade. Web.

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IvyPanda. 2024. "BSD Apparel Company's Marketing Plan." February 14, 2024. https://ivypanda.com/essays/bsd-apparel-companys-marketing-plan/.

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IvyPanda. "BSD Apparel Company's Marketing Plan." February 14, 2024. https://ivypanda.com/essays/bsd-apparel-companys-marketing-plan/.

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