This report will take a marketing plan format forming the foundation for the introduction of Daisy Roots, domestic footwear in the UK produced by the Daisy Roots footwear company limited. The product has been doing very well and that seems so unique thus needs to spread its market to the global market.
The paper will outline the best strategies to follow for the achievements of the company’s strategic goals of standing in a competitive place in the global market. Daisy Roots will be marketed as unique footwear made from chrome free leather and sheep skin while striving to reinforce the company’s status in the global market.
The marketing strategies are to be embraced targeting to reach populations in United Arab Emirates. The marketing strategy adopted will enable the company to reach an estimated market size of targeted 62,987,500 people with a forecasted sales growth prospect of 9.3% over the next four years making approximated profit of up to $986,984.92 while satisfying the needs of the market not yet served for the children and babies footwear.
The Company’s success will be reflected by a sizable capture of market share within the prior stated targeted market taking the company to the top spot as the market leader in the Daisy Roots boots segment of footwear. The Company’s potential exports will be considered in United Arab Emirates after a clear consideration of the social, religious and cultural factors that may influence the marketing of the product in those regions.
Company Description
Daisy Roots is a United Kingdom based company and also known to be one of the leading companies manufacturing gift shoes for children up to the age of four years. They manufacture pure hand made leather shoes designed attractively to fit children of any class and does not have cultural restrictions. The Company is based in Northampton-shire.
Daisy Roots is a major corporation which manufactures and distributes footwear that is solely designed for babies as well as children up to four years of age. The footwear for children offered by this company is well known for its suitable and trustworthy value and pioneering design.
With reference to children Foundation for growth, the shoes for children that are sold by the company are said to hearten healthy growth of feet. There is comfort in the Daisy footwear and a lot of fun to wears. There is a variety of projects instilled on to the shoes that makes them more good-looking and stylish in appearance.
The designers as well create the blue colored traditional boots for young boys and pink colored ones for young girls. Themes popularly included on their shoes are spades and buckets making them perfect for use on beaches. The company’s soft leather boots for children are made in the city of Northampton by human hands.
Materials such as soft suede, chrome free leather and sheep skin all of which are environmental friendly are also utilized in the production of the footwear.
Daisy Root footwear make appropriate gifts for babies on occasions like christening, baby showers and other naming ceremonies. It is recommended that you buy Daisy Roots baby footwear from numerous shops as well as online sites. There is a great demand for the Daisy footwear for babies and young children in the United Kingdom.
Daisy Roots Children’s boots History
Daisy Roots are chrome and leather free of formaldehyde Children’s boots making an attractive impression to every one’s eyes as catching gift designs which are appropriate for toddler, babies and children of the young age.
For new babies, little boys and beautiful girls’ occasion gifts Daisy Roots have proven suitable and due to their stylish presentation they make impulse which is really perfect to buy. In addition Daisy Roots has a collection of other attractive products in the category of children’s wear which include beautifully packaged gift sets other than shoes.
Target Market
Segment Identification: the product will be distinguished from others as chrome free leather; sheep skin made babies boots to be established within the functional footwear sector in the targeted countries.
Segment needs: the product with cater for both physiological and social needs within the Arab countries, that is, adding comfort , stylish, health value as well as perception of social, fun wear with a sense of belonging within peer consumer groups.
Segment Trends: the recent trends include a move away from timberland, snickers and Rubber shoes and an escalating interest for healthier/ helpful footwear for those who wish their children with an active way of life as well as the tendency of personalization via customization.
Market Potential: statistical market research expects a section growth of 1.92% over the next six years (2018) for the 0-4 year old subset.
Market Entry Barriers
As noted by Keegan and Green, (2005) a good market entry can greatly assist in the success of the product in the future. In concurring with this statement, Lee and Carter (2005), and Lull, (2000) assert that companies should invest in good market entry strategy to ensure that their products arouse interest among the targeted consumers.
This analysis points out the strengths and weaknesses as well as opportunities and threats in the attempts to market entry. Critically analyzing this issue we realize that it may not be easy to penetrate the market due to the culture and social setting of people living in the selected segment positioning.
A good communication strategy will greatly help the company’s market entry strategy (Mooij, 2005). Rantanen, (2005), further assert that in a globalizing market, entry strategies must be based on a culture based communication to ensure that the promotions are of relevance to the local market.
The company has to choose a precise, appropriate, very efficient method and means of communication into the market segment so as to enable it to convince the targeted group of consumers that our product is the best that suits their need (Jeannet, and Hennessey, 2004).
We have chosen the media communication where we will reach the target group through the television, newspapers and physical launching and thorough marketing of the product in the named countries and target countries. Looking at the lifestyles of the target population, one realizes that the culture of the people there reflects the Islamic religion which creates more chances of consuming our product especially because hot drink will not participate in the completion.
Through the claimed communication channels where we will launch serious psychological influencing campaigns we will emphasize on the intrinsic value possessed by the brand especially its stylish influence and the fact that it is a blend of two culturally and traditionally appealing natural product, that is, chrome free leather and sheep skin which makes it very comfortable, stylish, attractive and traditionally impressing.
In our strategy we have also considered the effective stride in the new markets, which suppose that, despite being a UK domestic brand Daisy Roots is worth being shared globally. We have ensured and invested well to secure an effective, reliable and consistent distribution channel which will enhance proper distribution of the brand to the target market all through.
Weaknesses include the fact that the product will have to rely upon line extensions which may pose a serious challenge in convincing the consumers that the product suits them. As I have previously said we have to be able to influence the people so that they can have a positive attitude towards the product usage.
The company’s strategy has included in its approaches sponsoring of programs in the countries of operation and providing offers so that it can gain immense popularity in the region. Such programs will include programs to promote healthy living by wearing of natural, comfortable and medically recommended footwear which will involve visiting of schools, hospitals, households and occupational places.
These programs will operate with a central objective of showing the people how the product is fit to be consumed and perhaps it stands a better place compared to the timberland, Gucci, Nike and Puma footwear which are being described as monotonous and uncomfortable for children by the world health organization for their positive contribution to escalating of foot diseases and conditions.
Since the product is leather made the problem of cleaning will have to be tackled by the company by coming up with a cleaning material such as sued cleaners so that the look and impression be stylish and utility considerate.
Even though there are many other products with similar aim in the market of satisfying the comfort quest, what makes this brand unique is it’s stylish and comfort value, thus the saturation of timberland Company made footwear in the market will be overcome therefore placing Daisy Roots at a superior place in the global market.
We have done research and discovered that there are high chances of brand introduction into the market and our company will take advantage of this to introduce the brand which will then compete with it substitutes, but remember as we said earlier, our brand has high chances of surviving the market objection.
We know that criticism will always be there, but in so far as we capture the largest portion of the segment our objectives will have been fulfilled. In addition, we have made our brand unique and attractive to the global partners.
The present tendency of consumer and consumers groups’ consciousness towards goods and services is both helpful and intimidating for companies in the footwear industry (Fill, 2009). Over the previous few years, concerns over fitness issues have risen in the media via an expanded and ever-growing system of “knowledge outputs” which include journals, TV channels, and the internet.
The shift of the younger age group towards a healthier way of life calls for cautious setting up and decision-making in new brands developments. Big companies can also without difficulty become the aim of consumers’ trepidation.
Conclusively in an epoch of globalization, huge intercontinental contestants can come out with relative advantages (Egan, 2007). Concerns come about when dealing with price struggle and economic intensification. Public strain which may interrupt operations in one or more fields of the company may face trade organizations.
Competition
The major competitor for Daisy Roots in the target segment will be Timberland Company, Adidas A.G, Brown Shoes Company, Gucci Group, Lacrosse footwear, Nike, Nine west group and Puma which combined represent about 78% of the total market. Gucci Group which leads in the sports shoes market poses a strong competition challenge.
In the functional footwear segment, that is, babies and children’s footwear Lacrosse Company and, Adidas, Nike and Puma are the recent leading in the market. Daisy Roots will launch into the current subset of the market that has yet not served, that is, the babies and children’s footwear segment, which is hitherto non-existent. It is expected that the following brands could potentially compete with Daisy Roots in the functional footwear.
The Daisy Root identity is very peculiar in the targeted market because of its branding strategy. It is made of chrome free leather and sheep skin with catchy emblems composed of its blend natural materials, that is, leather and sheep skin. The boot is produced from pure natural products blending chrome free leather and sheep skin into a naturally made footwear called Daisy Roots.
Situation analysis
Consumption
In the industry analysis, we have found that the projected volume of sales for this babies and children’s wear in the United Emirates will reach $34.2 million by 2014 for a volume of 135,000 shoes, $18.4 million for a volume of 98,000 shoes in 2015, $11.3 million; 76,000 shoes in 2016 and $19.07million; 103,910 shoes in 2017.
We anticipate a steady growth in this babies and children’s sector for the product starting 2013: an increase of 16.31% over a period of five years. The consumption rate per capita is expected to reach 231,330 boots by 2018 which will represent a 7.0% increase compared to 2013. The growth of this particular market will largely be determined by shift in consumer trends.
Trends
Through the early 1970s, Timberlands and Puma were the only well-known and established footwear which had dominated the minds of the consumers. Conversely, in 1980s and 1990s other footwear came into existence and even became more popular. Gucci and Lacrosse responded by increasing their offerings via groupings and attainments as well as by focusing efforts on portfolio diversification.
Today, while the value of the footwear industry has escalated, the volume of sales has reduced as a result of a large proposition of consumers who are opting for the trend towards healthier, comfortable and stylish choices in the segment, which include Nike sports shoes and rubber made like Puma shoes, sports Gucci boots and Timberland all weather boots.
Companies have actively been engaged in new brands developments so as to defy the growing concern about negative health, comfort effects of poor quality footwear as well as to enhance the demand in a market where product offerings are fast maturing (Deighton, and Kornfield, 2007).
New chrome free leather and sheep skin blend impression introduced and other stylish-conscious formulations have been launched in an attempt to counterbalance the decline in sales for uncomfortable and less stylish babies and children’s footwear. The practical market is anticipated to show continued growth and consumer interest in the prospect years as consumption moves to trendier, healthier and more stylish brands.
Profitability and Growth
In 2013 the concentrate producers are expected to earn 28% pretax gain on their sales, while packagers will earn 9% net gain on their sales, for a total industry profitability of 16% (Mooij, 2010). While the functional boots account for only 4.2% of the total footwear sales in the market segment estimates are focusing a growth of 7.9% in sales and 11.06% in volume consumption by 2018.
References List
Deighton, J. and Kornfield, L. 2007. Digital Interactivity: Unanticipated consequences for Markets, Marketing and Consumers. Working Paper, Harvard Business School Press.
Egan, J. 2007. Marketing Communications. London: Thompson Learning
Fill, C. 2009. Marketing Communications: Interactivity, Communities and Content. London: Financial Times and Prentice Hall.
Jeannet, J., P. and Hennessey, H., D. 2004. Global Marketing Strategies. 6th ed. Boston Mass: Houghton Miffin.
Keegan, W., J. and Green, M., C. 2005.Global Marketing.4th ed. London; Upper Saddle River, N.J. Prentice Hall.
Lee, J., and Carter, C. 2005. Global Marketing Management: Changes, new challenges and strategies. Oxford: Oxford University Press.
Lull, J., 2000.Media, Communication, Culture. 2nd ed. Oxford: Polity Press.
Mooij, M. 2010. Global Marketing and Advertising. Sage: London.
Mooij, M., K. 2005. Global Marketing & Advertising: Understanding Cultural Paradoxes. London: Sage.
Rantanen, T. 2005. The Media and Globalisation. Sage: London.