Sass and Bide Company Strategic Marketing Plan - Case Study Example

Strategic Marketing Plan Company Background Sass & Bide is a company headquartered in Sydney Australia that was started in 1999 by accounting graduates; Jane Clarke and Heidi Middleton (Sass & Bide. 2013). The company has its outlets in Melbourne and wellington. Sass & Bide is a fashionable company focusing on women and children’s wear and offering high quality, trendy products at discount prices (Sass & Bide. 2013). Although firm was opened fourteen years ago, and it has obtained greater-than-expected demand for its products and research has shown that the target market of most of customers would prefer buying more casual clothing as opposed to office wear. This is because women are outdoor customers who like going out on casual wear every weekend. The clothing company is also interested in expanding their product line including adding up men’s wear in future (Sass & Bide 2013). Table of Contents Company Background 1 1.0 Introduction 3 2.0 Objectives 3 2.1 Mission Statement 3 2.2 The Company’s Goals 4 3.0 Hierarchy of strategies 4 4.0 Industry Analysis 5 5.0 Five competitive forces 5 5.1 Threats of new entrants 6 5.2 The bargaining power of suppliers 6 5.3 Threats of substitute 6 5.4 The bargaining power of buyers 7 6.0 Strategic fit 7 7.0 Macro and micro level analyses 7 8.0 Relevance of the marketing research on company decision and policies 8 8.1 Product 8 8.2 Promotion 8 8.3 Pricing 9 9.0 Business strategies for the company 9 9.1 Segmentation 9 9.2 Targeting 9 9.3 Differentiation 9 9.4 Positioning 10 10.0 Conclusion 10 1.0 Introduction In the recent years, the rate of competition amongst different companies in clothing industry has significantly surged (Marketing, 2013). This has been increased by the degree of technological expertise and eased barriers to entry for new ventures, in addition to the increased rate of population, which offers the desired market for clothing products. Pride & Ferrell (2011) claims that advancement in technology has led to the effectiveness of small business ventures over the recent years that allows for competition with well-established organizations. It is this success that Sass & Bide is capitalizing on in order to expand its service in other neighboring in a period of 3 years. Based on the realization on how marketing can be a good foundation for a growing business, the major concern of this paper to Identify the weighty mission, SMART objectives and strategies that can make Sass & Bide increase its performance and dominate Australian market share. To contextualize this strategic marketing plan, the paper will analyze the industry which Sass & Bide will operate in terms of five competitive forces, macro and micro economic level. The will also look at the relevance of marketing research in the context of product, pricing, distribution and promotion policies on marketing decisions and the reason why segmentation, targeting, differentiation and positioning will be a good strategies for the business. 2.0 Objectives 2.1 Mission Statement The mission statement operates as a standard which Sass & Bide considers its actions and decisions. Sass & Bide (2013) states that the company is dedicated to making the best quality, obscure and beautiful wear that is accessible to all women and to create value through trust, provision of quality, better service, and innovation. By making cloths that are accessible to all women, the aim of this company is to target both high income and low income earning women (Sass & Bide, 2013) 2.2 The Company’s Goals Creating SMART goals will allow Sass & Bide to understand widely where its duties fit and what the company’s core competencies are. This also facilitates the company to concentrate on its performance as opposed to activities and allows it to gauge its success (Hanson, Hitt, Ireland & Hoskisson, 2011). Up to now the main target market for Sass & Bide has been the local market (Australia). However, the company aims at and “has the potential of opening it outlets in the neighboring countries like New Zealand and Indonesia amongst others” (Sass & Bide, 2013) before venturing into European nations and the US to compete with famous clothing company like “Gucci, Mark and Spencer, Burberry Fashion House and House of Diehl among others” (Marketing. 2013). First, targeting other cities within Australia is a realistic objective that if more concentration is given will take a period of 2 to 3 years. After that, global expansion can take another 3-5 years. Global expansion will be pegged on the context of its performance in the local market. 3.0 Hierarchy of strategies Each organization, regardless of its age or size, must have some kind of Hierarchy of strategies that take place at various level, that is, corporate, business, operational and functional (Sass & Bide, 2013). In young business venture like Sass & Bide, this could consist of the concepts put fourth by the founders. Corporate strategy here was to venture into fashion industry, particularly women’s wear which is a big boom in Sydney and Australia in general. Their diversification into real estate which comes as business strategy has boosted the image and performance of the company (Sass & Bide, 2013). The decision to diversify into the real estate was reached by the managers bearing in mind that Sydney has a high population that has raised demand for houses and also high prices charged on houses in that city. In a nutshell, this marketing plan becomes the functional strategy of this company. If this strategic marketing plan is not implemented by Sass & Bide, it will just remain theory. The actions taken by the company to implement this strategic marketing plan is operational strategy put in place by the manager which includes pricing, promotion, and distribution policies (Marketing, 2013). 4.0 Industry Analysis According to Marketing (2013) Australian fashion industry is recognized globally for its fresh, innovative and quality designs along with strong branding. The industry has also faced intense competition, high cost of rent costs. Women's wear and fashion is certainly the mainstay of this industry, since women tend to use a high amount of their disposable income on wear and clothing in general. It is this potential that Sass & Bide is venturing into women’s and children’s fashion. The company has the capacity to apply its strengths and opportunities in building a competitive advantage in the clothing industry (Pride & Ferrell, 201, p.301). 5.0 Five competitive forces Despite having bright future based on the number of customers it has attracted it is obvious that the Sass & Bide faces a strong competition from different well-established fashion companies in Australia. The Australian market is like the worldwide clothing market, full of world leading fashion company leaders such Sass & bide, Austral Clothes Hoists, Hughes Clothing Company, Cutting Edge Clothing Manufacturer, Golden Star Clothing and Vervena Clothing among others. The competitive setting is a vital indicator of the industry’s (Nijssen & Frambach, 2001, p.39). In following the paper will employ the Five Forces model to assess Sass & Bide competitive environment in the Australian market. 5.1 Threats of new entrants Sass & Bide over the last years have managed to take the industry by storm and now command a lot of customers (Sass & Bide, 2013). The company has managed to pump a lot of resources making it difficult new entrants to overtake it, in terms of sales and customer service. The company occasionally switches costs which scares away new entrants. Its expansion strategy has made it to command large network of customers who are also willing to pay for its products (Nijssen & Frambach, 2001). 5.2 The bargaining power of suppliers The bargaining power of suppliers in clothing industry in Australia can be regarded to be a middle level following a close analysis. Suppliers to retailers are, by description, the producing wholesalers. They usually have slightly lower bargaining power than the retailers. Marketing (2013) claims that Sass & Bide that has managed to attract more customers and now can be said to influence the market; definitely they now have an advantage and influence over the suppliers. 5.3 Threats of substitute The presence of close substitute increases the tendency of consumers to change to alternatives in reaction to price raises. Sass & Bide specializes on women wear competes with other companies that offer other substitutes like official and sportswear. The well-known official and sporting brands provide these close substitutes at attractive price; customers can decide to buy official for office wear while sporting brands for weekends instead of buying casual dress at Sass & Bide (Marketing, 2013). 5.4 The bargaining power of buyers Marketing (2013) claims that even though there is a growing stiff competition, with much more brands and labels getting into the Australian market each day, buyers' bargaining power is still weakened. The main reason for this is because the growing ability of the Australian national to pay for quality, instead of looking for low price products. This act to the advantage of Sass & Bide; its customers are always willing to pay for its products. 6.0 Strategic fit In terms of strategic fit Sass & Bide is using both prospect and analyzer strategies to achieve its objectives. Just like any other entrepreneur, the company normally spots an opportunity and tries to be the first one to grab it ahead of their competitors (Kotler & Keller, 2006). This is the strategy they are in expanding into new markets to kindle new opportunities. They actively pursue product development and quality. This has attracted large number of customers where they serve, therefore acquiring extra market share. 7.0 Macro and micro level analyses The Australian clothing industry is an outsized and highly fragmented. In 2008 the industry went through low moment during economic crisis. However, the industry is now growing and, is shaped by various factors pricing, bargaining power of the buyers, economic factors, technological changes, low on exports and globalization among others (Hanson, Hitt, M., Irelan & Hoskisson, 2011). It is irrefutable market that the market is expanding and customers are turning more brand-conscious and fashionable, particularly amongst the urban ladies (Allen, 200, p.107). 8.0 Relevance of the marketing research on company decision and policies Market research is applied by Sass & Bide to find out the best method to market to the company’s target audience. Daft & Marci (2011, p.146) argue that by employing market research, the outcomes provide the company’s management team with techniques on how the brand is currently being recognized by the audience in terms of product, price, promotion and distribution. 8.1 Product The product image of Sass & Bide targets on high, middle and low income consumers looking for basic fashion at sound prices. Consequently, effective operation in Sydney and Melbourne is able to build a strong product image in fashion market so as compete with other local and international operators (Sass & Bide, 2013). Sass & Bide provides a range of wardrobe basics which are high quality, typically styled, casual wear for women, and children. 8.2 Promotion Media promotion and celeb endorsement are well-liked in Australia. It can elevate the brand consciousness of many people and motivate customers who observe them in ads to buy the product (Hitt et al, 201, p.130). A good reputation bestows Sass & Bide with competitive edge which can be employed to assist facilitates a more effective expansion to a new market. Nijssen & Frambach (200, p.39) claim that it is apparent that majority of the customers will be attracted by famous celebs and TV ads when it is linked with that certain brand. 8.3 Pricing Price is the most dynamic factor that the company changes in accordance with the marketing mix (Kotler & Armstrong, 2004). The prices of the company products vary according to quality and the target. Sass & Bide has been switching cost in its strategies to sustain competition and to satisfy psychological needs. 9.0 Business strategies for the company 9.1 Segmentation Sass & Bide ensures that they cater for every segment in places they are serving. The segmentation will can help the company serve most of the customers in the cities bearing in mind that women urban dweller and fashionable and brand conscious compared to upcountry. Jacobs (2010) postulate that they can also set different particular prices for the various market segments because the society is actually divided into class. 9.2 Targeting Just as stated in its mission, the company makes or design wears that accessible to all women. In other words, the company targets all women irrespective of the age. The fact that women and children wears has been a big business in Australia has helped the company improve its sales over the last three years they have been in operation. 9.3 Differentiation Sass & Bide entry into the market was to bring a unique and quality brand to the targeted customers. Their excellent services bring a unique experience to the customers. The company carters for both need of the high income and low income earners in terms of price. The Sass & Bide differentiation revolves around product, service and prices (Marketing, 2013). 9.4 Positioning The positioning approach of Sass & Bide is focused on evaluating on what they can offer while challenging the competition. After market research the company initially identified Sydney, Adelaide and wellington as populous and effective markets for women’s wears (Sass & Bide, 2013). Their positioning in these places has created some niche where they can influence the markets (Proctor, 2000). 10.0 Conclusion For Sass & Bide to be successful in the global market, such elements as segmentation, market mix structures and constant market research must clearly be analyzed by the management. From the observation, Sass & Bide is a promising a company in the fashion industry in spite of fierce competition in that sector. By diversifying a fast rising real estate market size, the Sass & Bide in the coming enhancing its results and brand awareness. 11.0 References Allen, M. (2001). Analyzing the Organizational Environment. New York: Select Knowledge Limited. Daft, R. & Marcic, D. (2011). Understanding Management, Mason, OH, South-Western Cengage Learning. Hitt, M. A., Ireland, R. & Hoskisson, R. (2011). Strategic Management: Competitiveness & Globalization Concepts 9th edition. Mason, South – Western: Cengage Learning. Hanson, D., Hitt, M., Ireland, R & Hoskisson, R. (2011). Strategic Management: Competiveness and Globalization (4th ed.). South Melbourne: Cengage Learning Australia. Jacobs, D. (2010). Mapping strategic diversity: strategic thinking from a variety of perspectives, New York: Routledge. Kotler, P. and Armstrong, G. (2004). Principles of Marketing, 10th edn: Upper Saddle River. NJ: Pearson Education. Kotler, P. and Keller, K. (2006). Marketing Management 12th edn. Upper Saddle River, NJ: Pearson Education. Marketing. (2013). Retailers focusing on the ‘shopping experience’ to win back shoppers. Retrieved 5th August 2013 from http://www.marketingmag.com.au/tags/sass-and- bide/#.UgAPq9KORFY Nijssen, E. & Frambach, R. (2001). Creating customer value through strategic marketing planning: a management approach. Netherlands & Boston: Kluwer Academic Publishers. Pride, W. & Ferrell, O. (2011). Foundations of Marketing. Mason: South Western, Cengage Learning. Proctor, T. (2000). Strategic marketing: an introduction. Routledge: London. Sass & Bide. (2013). Australian Fashion Guide. Retrieved 5th August 2013 from http://www.sassandbide.com/the-story/ Read More