Even though the overseas market for the Ozi Native Clothing has been affected by economic downturn, it is crucial to mention that the situation is not permanent. As it stands now, the US and other western economies are gradually recovering and will soon be up and running. It can be recalled that during the late 1990s, the Australian economy was in a bad state. However, this did not last for a long time. Economic downturns are temporary phenomena. Therefore, Andy Scelly should diversify his distribution and marketing strategies so that to capture even the overseas markets.
As already hinted out, it is highly advisable for Andy to diversify the distribution and pricing strategies for the clothing company. Relying solely on the traditional methods may limit expansion. Hence, Danny’s on setting up an internet site for electronic commerce is the best option for Ozi Native Clothing. Selling through the internet will also make it possible for the company to facilitate direct marketing. In addition, Ozi will most likely make 100% margin in terms of profits while maintaining the current retail price. Better still, an internet site would control of the current variable costs because no additional distribution expenses will be incurred by the company.
Transforming the clothing company into an international marketing platform implies that additional logistical costs will have to be incurred. Since internet marketing presents a number of challenges, Andy is expected to be very keen.
For instance, it would divert the conventional marketing strategy, replace the current marketing strategy, require understanding of the international marketplace and be familiar with logistical issues such as transport, insurance and custom regulations. Besides, there would be no certainty if upper market customers in other Asian countries would be sensitive to prices. Nevertheless, an internet site is still a viable alternative for Ozi Native Clothing. In order to cover logistical costs, Andy should increase internet prices for all types of clothing materials and accessories in order to cover the additional costs.
The new distribution and pricing strategy should be used alongside the tourist and souvenir shops in order to boost the volume of sales. Employing a single option canbe very risky for Ozi Native Clothing Company. In other words, the company should diversify marketing risks by not relying on a single channel of distribution or mode of pricing its products. For example, tourist and souvenir shops are the main buyers of Ozi native clothing supplies. Since it is expensive to source for Emu skins, an internet site can be used to sell more expensive products. A substantial margin is extended to retailers so that they can make profits. The decrease in tourists in late 90s affected expansion of the company. As it stands now, American visitors have increased. Downturn in American economy has also led to poor growth of Ozi Native Clothing supplies. Unless mixed methods of distributing and pricing products are adopted, the company may fail to meet its short and long-term growth targets.
The current domestic pricing strategy is sound even though Andy can still embrace and apply other choices. When the economy is not performing well, a build-up of the inventory can be realized. Hence, lowering the percentage markup can be a better option. The company should also advice retailers to lower their market prices even for the expensive Emu products. Any should not just rely on the traditional mode of distributing its products. In fact, an ecommerce platform can break several marketing limitations that the company has been facing over the years.