The paper "Markets Segments and Decision Making - Crocs Inc" is a perfect example of a business assignment. Crocs Inc. is a shoes manufacturing company that was founded by Scott Seamans, George Boedecker and Lyndon Hanson. The company was formed to develop and distribute foam clog. The company has been in the market since the year 2000 and has since diversified its markets into the global markets. The company operates in the apparel industry that covers the wholesale industry, the consumer and retail services industry and clothing and apparel accessories industry (www. crocsinc. com).
This case study analysis evaluates the marketing strategies that the company uses to effectively address the challenges and opportunities that are available in its market. The analysis specifically evaluates the marketing aspects of segmentation, targeting and positioning and how it manages them. 1. Briefly describe the industry market for your organization and evaluate current trends in Growth, Profitability and the Macro-environment (PESTLE factors) The global business industry continues to be influenced many factors that revolve around technology, the economy, social and environmental factors among others. These factors also influence the markets in local jurisdictions.
However, the apparel industry market is anticipated to be good but not spectacular in the coming years. The industry is expected to have a market growth rate of about 6 to 8 percent. Much of this growth will be driven by the international growth opportunities and the direct-to-customer channels (Keegan and Green 2017). The profitability of the industry is also anticipated to be modest but may be greatly influenced by prevailing economic conditions that continue to be tight both in the local and international markets. This is mainly attributed to the loss of possible disposable income in the industry market to home-related products, rent, healthcare, cars and electronics.
Consumer traffic in the industry is also expected to reduce or grow at a slowing rate with negative implications on the profitability of the industry, given the increasing fixed costs. The analysis of the industry indicates that industry players will need to work harder to attract more consumer dollars in the future because consumers will have more priority spending of their disposable incomes. The profitability of the industry market will further be influenced by the changing consumer dynamics like that of younger consumers who are and will continue seeking to spend their money on experienced and services more than other retail products. The macro-environment factors that influence the company include the political, economic, social-cultural, technological, legal and environmental factors.
Political factors continue to cha the new forces that shape the market place. Political environments in contemporary markets are increasingly becoming complex because of reasons that re-associated with economic factors. Many governments and markets have been increasingly seeking protection for local companies. To achieve this, the political establishment has been seeking to raise trade tariffs for international companies for goods sold in the local markets.
For these reasons, the company may find it harder to operate in the Australian market effectively (Kotler and Kotler 2010). Economic factors in the Australian market indicate that there is an increasing purchasing power among many Australian. The standards of living have significantly improved and their high demand for high-quality products and services. The economic performance of Australia has given its currency a strong position in the global markets which makes the Australian market lucrative for the industry’ s performance.
Concerning the social trends, the demand for apparel products and accessories across Australia has had a high regard to the environment. This implies that companies with products that are eco-friendly are highly preferred. Crocs Inc. is known for products and services that are environmentally friendly. The legal factors influencing the industry to revolve around the legislations on products and service that meet the environmental needs of the market and imposition of tariffs that aim at protecting the local markets. Trends in technology have been significant in the industry.
Industry players have been using technology to advance their value proposition, developing business model and business and marketing strategies. Technology has also been a source of deriving competitive advantages in the industry and a way of achieving higher exposure and visibility in the industry and the market (Kotler and Kotler 2010).
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