In the present scenario, companies are growing at a greater speed in order to retain in the diverse market place in order to make the offerings to the customers and expand the market share. In order to expand across the national boundaries, different aspects are ascertained and managed to take appropriate decisions to make entry into the new market. This report discusses about the competencies that are related to the brand which helps in analysing different dimensions and perspectives that will properly evaluate the market trends. Topshop has been chosen to evaluate different strategies that will help to make the entry into new market with the new product that is offered as per the tastes and
Various competencies of brand and the ways through which they are utilized to market the product
There are several competencies that are related to the brand and essential to determine the entry of products in the new market. Competencies reflect the portfolio of business that helps Topshop in making their product offerings reach in the market and significantly, in meeting the customer needs (Canel, Bejou and Khumawala, 2015). Hence, the competencies are discussed as below:
Segment the Market: With the aspect related to expansion in global context, it is essential for Topshop to properly segment the market by keeping in mind the product through which they are entering in the market. The segmentation of market helps to effectively identify the market needs that are needed to be fulfilled. This will help Topshop in effectively marketing and selling of the products.
Define Target Customer: In order to expand globally, Topshop needs to define the target group to whom they are marketing the product. With the proper identification of target customers, it helps the organization to operate in an effective manner. As the preferences are analyzed beforehand which help to define the needs of the customers to whom they need to cater to offer their product and services. This will help Topshop in providing best services to the customers.
Allocation of Resources to Maximize the ROI: Brand provide the specific assurance while making the offering of the product to meet the needs of the customers. This helps in effective allocation of resources so that the return on investment is obtained with the offerings and operations related to the product that is offered by Topshop. With the help of effective management of the human resources to make the offering to the customer in an effective manner.
Develop Communication Strategies: It is an essential prospect that helps the particular brand in order to expand and grow globally with the increase in market share. Different strategies are adopted to make proper communication with the target group to whom Topshop is going to make the offerings. Proper strategies will help Topshop to include the palnning and control system to provide high quality of goods to the customers.
All these competencies are beneficial as they help in developing the conceptual framework that is utilized to enter in the new market with the product that they are offering to the customers as per their need specification (Kanibir, Saydan and Nart, 2014.). Topshop effectively determines the respective elements that are based on different aspects. This competency provides a clear image that can be efficaciously presented and would help Topshop to market the chosen product to the target group that is defined as per the segmentation in context to the offerings. However, with the proper development of different strategies, the resources are allocated in an effectual manner and help to maximize the return in investment that is made while making entry in the global market.
Analysis of Internal Strengths and Weaknesses Pertaining to the Brand
The internal strengths and weaknesses determine effective process to analyze the elements that help to evaluate different aspects. Topshop is a multi-branding store which they are offering to obtain competitiveness and competencies that are utilized while carrying out the operations to make offerings. Thus proper analysis will define the respective strength and weakness of the brand which will determine the different aspects that are related in order to enter into a global market with the formal shoe range. The strengths and weaknesses are stated as below:
Knowledge and Experience: It is an essential aspect that helps to effectively determine and pinpoint various opportunities that are identified by Topshop as per the knowledge and experience which is attained by making offerings reachable in the market (Hollensen, 2015. However, these aspects prove to be beneficial as they are utilized to enter in the new market.
Creativity and Innovation: In the present scenario, customers are attracted towards creative and innovative product that is offered in the market. It is because; this aspect is involved by Topshop and is used effectively to offer the products in the market of other countries.
Reputation: Along with the different dimension, it is essential for Topshop to build up a good reputation in the market place as well as in the minds of customers. Now a days, the customers are very conscious about the brand reputation as this element helps to enter in the international boundaries for the purpose to offer the product and services.
Lack of Experience: This is the prospect that led into the biggest weakness as Topshop does not have any prior experience to operate within new market of other nation. It is because; it is difficult for them to manage the entire functioning as numerous aspects are involved to carry out several operations (Kuang-Ying Loo and Hackley, 2013).
Different Brand: As the accessibility to brand is unique and exclusive, it may result in the controversy in the nation in which Topshop is offering the product and services. The brand competencies reflect deficiency and other aspects that weaken the overall functioning of Topshop.
Deficiency of Budget: While making entry in the new market, this perspective is essential as all the operations are designed while keeping in mind the functional perspective that needs appropriate budget to carry out the entire functioning and to ascertain the exact amount as deficiency may result in failure in context to the entry in new market. Thus, this weakness may hinder the performance as well as the standard of Topshop.
Analysis of organizational external opportunities and threats pertaining to the brand
In order to expand and grow, they require ample amount of resources that help to work in order to meet new opportunities that are present in the market place in which they are trying to enter to make the product offerings (Davies, 2012). In order to expand further within the boundaries of other nation, Topshop needs proper pestle analysis for the external opportunities and threats that are discussed as underneath:
Political Factors: These factors influence greater integration of work policies as they provide proper agreement that develops new opportunities for Topshop to make the entry into new market. Threats are also involved as there is a huge gap in various factors that are associated with the offerings they lack in policy and regulation. This affect the management of different political factors and discourages the investment due to which the performance hinders to the certain extend. They have the store in 30 different countries to make the offering to the customers.
Economic Factors: As people of US are more fashion forward and opt for shopping new things, they have a unique style and attitude. The demand of the customer is related to the new product which is matching the trend of the market place and provides the opportunities to Topshop as they will satisfy the customer needs. However, the threat that is associated with it is the controversy between present brands in the market with Topshop as it is difficult to acquire the market share at an ease in the highly competitive market. The margin of the net cash deposits were of £ 205.1 m as compared to the previous year. The total sales were £ 2,706.5 m as compared to the previous which was £ 2,682.6m.
Social Factors: As people in US are more fashion oriented and they earn in order to raise their standard of living that provides new opportunities for Topshop to make entry in the market. the customers quickly adapt the product and the services as they are concerned more about the quality. On the other hand, this factor also influences the market offerings as the cultural factors play a vital role while making the purchase on customer hand from the new brand.
Technological Factors: These factors determine different aspects that help to develop the product as per the perspective that will help Topshop to meet the opportunities as the customers are very concern about modification and diversification in the product and service that is being offered to them. As the technology is expanding at a greater speed, it influences the overall performance. However, sometimes, firms are not able to use the latest techniques as it requires huge investment.
Legal Factors: The rules and regulations differ across the boundaries as the operations are different from place to place. As Topshop needs to meet the opportunities by stepping into the market, as the market of US provides ease to function and carry out different operations as it contributes in the successful entry to make the offering. However, to a certain extent, they are also restricted with certain rules as the competition is raised by the entry in new market.
Evaluation of Organization's Competitor Analysis pertaining to the Chosen Brand
In the present scenario, competition is expanding at a greater speed which influences the overall performance of Topshop as there are several aspects that are associated with the offering that they make to the customers who are present in the market of US (Coates, 2012).
The potential aspect determines and analyze several perspectives which are essential in order to compete with the other brands. There are many product and service which have the similar specifications and the mode of offerings is also similar(Santos-Vijande, López-Sánchez and Trespalacios, 2012). The customer is an essential aspect which determines the overall functioning as well as offerings of the product and services of Topshop. As topshop has the threat from the other brands such as Red/Blue Ocean which also offer the same product that cater the same age group of people and the other individuals.
This analysis helps to evaluate different strategies that are adopted by the firm as it helps to identify the weaknesses so that they can be improved and best outcomes can be attained while making offering reachable in the market of US.
The adoption of diversification strategy helps Topshop to compete within market in which it operates as they are anticipating several perspectives that determine the overall functioning of Topshop to compete with the other brands.
Evaluation of Target Market Selection and Positioning of Topshop Product & Services in US Market
Market of US is the fast growing market as it includes ample of potential factors that help in the proper evaluation of target market which is essential to create the place to make the offering related to the formal shoe range (Bartlett and Ghoshal, 2013). The target market selection process and positioning aspects are evaluated in a proper manner as they are very essential to make the offering as the targeted market is catered to the larger extent. Proper evaluation while selecting the target market helps Topshop to design respective aspects to make the offering. Each perspective is essential to select the market to which they are targeting to make the offering reachable to customers who are present in the market of US.
Topshop is a well recognised and well established brand as it emphasizes on different perspectives to strengthen their position in the market in which it is making entry with the new product (Lea-Greenwood, 2013). Topshop determines the entire perspective related to expansion and growth in the market of other nation. The perspective related to positioning in US market is related to the aspect to meet the growing needs of customers to satisfy them so that they would be able to function in an effective manner. Topshop is entering the new market to offer the shoe range for the young people and form a fashion statement for the people. They is ascertained by the effective adoption of the STP approach to select the youngsters of the US market to meet their requirement with the offering at a lower rate.
Overview of Realistic Marketing Objectives that Topshop should set in the Target Market Pertaining to the Product/Service
There are different objectives that are designed and evaluated in order to achieve the maximum profits by offering the desired product to a large number of customers. In order to attain the objective, it is essential that the specific criteria should be defined so that offering is made in an effective and efficient manner (Kuang-Ying Loo and Hackley, 2013). The overall objectives are in order to introduce innovative product to the targeted market that will be cost effective.
The market is very large and have ample amount of offering within same market and in order to cater the large customer base, it is required that Topshop must create proper awareness among consumers related to the formal shoe range which they are offering in the US market. This will help Topshop to cater the ample resources to meet the and offer the product to the customers.
While making offering Topshop can build up the high satisfaction level among the customer as the customer obtains the clear picture related to the product. The offering will benefit them as it will increase the sale of the product as Topshop offers the product with the perspective to meet the needs specification of the customers.(Coates, 2012). This will be an encouraging factor for Topshop as the product will be less expensive and would be within budget as they can offer discounts or offer the product at a reasonable price. This is the influencing factor as customers are provided with quality product which helps Topshop to attain the main objective that is related to get entry in the US market.
Analysis of entry mode strategies that Topshop should pursue in the new market
Topshop is a multi-clothing brand that offers ample number of products and services related to different segments of customers in order to meet their needs specification in an appropriate manner (Hollensen, 2015). Topshop is entering in the US market to expand its offering criteria with the adoption of different strategies by providing variety of options so that customers would have lots of options to choose as per their needs. In order to enter in the market, objectives of Topshop are clearly defined that will help to adopt the strategies that can be exercised to meet the desired aspect related to the product offering.
Proper analysis is being done to conquer the larger market share by offering products through adopting diversified strategy as they are selling the product that is not present in the market of US (Baker, 2014). Main objective behind the strategy is to expand. This strategy is beneficial as the US market is fashion oriented and it is more concerned about the new product that adds on high standards with the adaptation of new product.
The diversification strategy involves marketing of clothing and fashion products to the customers in US market. This helps to analyze various opportunities that can be availed by them after making entry in the new market.
Evaluation of international marketing-mix strategy that Topshop should follow to launch the new product in new market
Topshop is the retail outlet that has to be followed in order to launch the shoe product in the market of US to expand their market share and also, to increase the market offerings. All strategies evolve against the perspective related to the marketing mix which helps Topshop to launch the shoe product (Powers and Loyal, 2010).
Proper evaluation of international marketing-mix strategy helps Topshop to adopt essential four elements for establishing the place for the product in US market. Topshop should effectively and efficiently adopt these elements to yield the market share and to generate huge profit out of it. The elements are explained as below:
Product: It is an essential element as it provides basis for the purpose that makes existence of business in the market place. The quality of product which is being offered by Topshop is the lifeline for them while launching the formal shoe range in the market of US. It offers the product with proper evaluation of the needs which are to be met by them (Kuang-Ying Loo and Hackley, 2013). Also, the offering is made by keeping in mind that it suits with the modern trends that are present in the US market.
Price: The price plays a crucial role while making entry to launch the shoe product in the market of US. It is evaluated that the people are more concerned about the quality that they are offering rather than the price as they are more conscious about the quality as it enhances the sustainability of shoe product.
Place: As Topshop is new in the market of US and the place where is operates is not so large, it can be in the form of franchisee within available stores so that it would provide time to step up its foothold for the establishment in the market to launch a new product. This will help Topshop to build up the ideal place in the market by offering new product. As the market is very advance and fast growing Topshop can effective make the effective place in order to make the offering.
Promotion: This marketing-mix strategy provides a clear picture as they are targeting youngsters as well as professionals who have equal importance for the formal shoes. With the help of events, the product will be advertised and will create the stir among youngsters as the product which is offered by Topshop is more trendy and stylish. With the proper selection of the target group the product will be promoted in an effective manner.
Analysis of Internal Marketing Budget Strategy Relevant for Topshop Plan
The entire functioning of Topshop evolves against the most important aspect that reflects the requirement of different perspectives that needs to plan the entire functioning related to the offering of different products and services (Kanagal, 2014).
The budget strategy helps to identify and analyze different aspects that are relevant in order to make entry in the US market with the formal shoe range. These strategies provide a proper analysis of required prospects that will ensure that the plan of Topshop to make entry in the US market is carried out in an effective and efficient manner.
This perspective is essential as the operations are designed by keeping in mind the functional aspect that needs an appropriate budget strategy to carry out the entire functioning. This helps to ascertain the exact amount as inefficiency in the amount will not help to execute the entrance plan in the market which is new for Topshop. (McCormick and et.al., 2014).
From this report, it can be concluded that with the proper analysis of different strategies, Topshop get support to enter in the new market. This results in the expansion and growth by meeting the requirement of people in a specific manner. With the proper evaluation, it is also determined that the diversified strategies strengthen the position in the target market in which offering is made to the customers in order to increase company’s scope.
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