Marketing Strategy for Launching Belstaff Jackets in Australia

Name

Institution

Table of Contents

Principles of Marketing in an International Context3

How Marketing Theory Impact Development of the Proposed Plan3

Why the Belstaff Jackets are Innovative4

Forces Affecting International Marketing5

How International Marketing Environment Influence the Marketing Strategy5

The International Marketing Environment6

Economic 6

Socio-Cultural 7

Political/Legal/Regulatory8

Technological9

International Market Research10

Strengths10

Weaknesses10

Opportunities11

Threats11

Market Need12

Segmentation. Positioning and Targeting12

Segmentation12

Positioning13

Targeting13

Marketing Communication Mix14

Product and Price15

References17

Marketing Strategy for Launching Belstaff Jackets in Australia

Principles of Marketing in an International Context

Advancement in different markets across the world creates new market opportunities for the Multinational, Belstaff. However, they take advantage of the new markets, Belstaff must confront various threats posed by the domestic companies in the new markets which are also trying to gain a competitive advantage. To overcome such issues and achieve strong competitiveness in the new Market, Belstaff ought to understand markets in the target countries, including products, services, and planning levels. Subsequently, design services and products that optimize value to the target consumers and develop channels to sell the products and services to the customers (McDonald, 2016). These activities are well established through the creation of an effective marketing strategy.

Impact of Marketing Theory on the Proposed Plan

Marketing theory explains marketing activities. It illustrates phenomena that focus on marketing. It increases scientific understanding of marketing phenomenon through a systematized structure that can explain and predict different issues of marketing. In this case, a marketing theory offers frameworks that can help put the gaps in marketing into perspective and develop strategies to create a competitive edge. The marketing theory provides ways to analyze a market and develop responsive strategies to gain a competitive advantage in an existing or new market. Overall, a marketing theory impacts the development of the business plan because it offers guidelines and framework of applying different methods to promote a product or service to the target audience (David 2017).

The marketing theory directly impacts the marketing plan. It offers approaches and frameworks that can be utilized in analyzing the internal and external market environment. It is also significant in determining the methods that can be used to develop the best marketing mix for the product. The marketing theory can help identify potentials for creating value and enhance the profitability of the firm. Using the marketing theory, one can analyze a given market and its environment and establish criteria for setting up approaches to approach it. A good marketing strategy ought to promote the business to a given audience. In this view, marketing theory offers ways through which market segmentation, targeting, and positioning can be undertaken effectively to facilitate the promotion of the new product, and it’s launching. It helps me understand the market and the customers to develop a better and effective strategy. Furthermore, the marketing theory is central in developing the brand of the business and communicating it to the targeted audience. Therefore, marketing theory has directly impacted the development of the marketing strategy through the use of its concepts and principles.

Why the New Product is Innovative

Belstaff Jackets are unique and innovative due to its design and material used for production. Since it was first produced in the early twentieth century, the jackets have undergone creative and innovative modifications to become one of the best leather jackets in the global market. The Belstaff Trialmaster Jacket is one of the most innovative products of the company. It measures approximately thirty-two and a half inches from the underneath of the collar. Its zipper is placed a higher but does not of to its end at the downside to allowing the wear flexibility when sitting down. Since it is made of leather fabrics, the jacket is fitted with little rivets at the armpits, which are expected to cool the wearer. The sleeves of the jacket stick on the hand are very smooth when one wears it. There is no part in the jacket that is made of plastic. All parts are made of leather fabrics, cotton, and metal. YKK is used to make the zipper on the Jackets.

The Belstaff Jackets are made to make a customer feel comfortable and elegant. The jackets are beyond fashion and are always in style, appealing and innately cool to men and women who go the extra mile and live on their terms. It is fitting and makes one look like a fashion star. The armholes are cut high, which to allow a wide range of movement to ensure that the arms are comfortable inside it. The sleeves are cut trim, for a taste of fashion enthusiasts. The jackets are produced in numerous unique colors. Indeed, the target customers will be fascinated with the Belstaff Jackets for their uniqueness and elegance (Brown 2016). 

Forces Affecting International Marketing

How International Marketing Environment Influenced the Development of the Strategy

Many international marketing forces affect the development of a marketing strategy. These include political, economic, social, technological, and cultural aspects.Foreign markets offer several opportunities, but the customers may not have the same needs as they are in the domestic markets. Therefore, consumer preferences based on their culture influences the development of the strategy to enter the market. Thus, the international marketing forces not only necessitate customization of the product but also customization of the marketing plans to suit the targeted demands. The global markets offer different expectations, connotations, and meaning than local markets (Epstein 2014). Therefore, a marketing strategy cannot be moved from the home nation of Belstaff to the target market. The international marketing environment influences the development of meaningful messages that can effectively connect with the audience. Besides, the global climate affects how one views the development of customized marketing strategy amidst the development of universal messages. Cultures across the globe are different. Therefore, when developing the marketing strategy, it is essential to factor the cultural aspects of the target country ensure that it suits it. Besides, the laws and the political landscape in the target country mattered when developing the strategy to ensure that there is compliance in the process.

The International Marketing Environment

Economic

The Australian economy has experienced robust growth and expansion of the last two decades without any significant interruptions. As such, it is considered as one of the most robust economies. It is a safe and low-risk environment where one can invest. Overall, it is regarded as the 14th largest economy in the world, and Belstaff can find it comfortable with investing in the Market. It is rated as an AAA in the global outlook and is said to be stable by the global rating agencies. The gross domestic product is expected to grow at an average of 2.7% over the next five years. The economy is characterized by a diverse technology and services sectors and significantly low government debt. 

The nominal GDP of the country is estimated at 1.5 trillion U.S dollars, which is about 1.7% of the global economy. The total production of the country was valued at $411 billion, which is a triple amount over the last two decades. The GDP per capita is estimated at $53,539. The manufacturing sector accounts for only 5.8% of the economy, with the service industry accounting for 62.7%. The inflation rate in 2019 was estimated at 1.8% and is expected to be 1.8% in 2020. The unemployment rate in the country is 5.3%, and the human development index is high (Yang 2018).

Australia has free trade agreements with various countries and regions, including Japan, New Zealand, Singapore, the United States, Chile, the Association of Southeast Asian Nations, Canada, Mexico, and Malaysia. It is also engaged in a trade agreement with the Peru-Australia Free Trade Agreement, the Pacific Agreement on Closer Economic Relations, Australia-European Union Free Trade Agreement (Wu 2016). In this view, through the Free Trade Agreements, Australia has expanded the market and conducive environment for multinationals such as Belstaff to operate. Therefore, one can argue that the economic overview of the Australian Market is safe for Belstaff to launch its Jackets. The per capita income and low unemployment rates demonstrate that citizens have enough income to create Market for the jackets.

Socio-cultural Environment

The demography of the Australian Market is characterized by an increasing proportion of the elderly population. The economic well being of households in Australia is relatively stable, with over 80% of the jobless families having an equivalised household income. Australians like prestige and trendy lifestyle. A majority of the youth in Australia are associated with new trends and fashion. They are well aware of the global fashion industry, and a unique and innovative product such as the Belstaff Jackets can be highly appreciated in the market. The younger generations in Australia had developed a passion for the social and environmental causes which necessitates brands to become more purpose-driven to attract their talent and consumers. There has been a significant shift in shopping experiences among Australian Consumers, with a majority starting to use technology for the discovery of fashion products. However, there is still a gap between innovation and purchase, which Belstaff has to be aware of and develop strategies to mitigate it (Bernard 2019).

The Australians have a very receptive business culture. They are straightforward and do not require to create long term relationships before doing business. They are very welcoming to new ideas. One of the most significant elements of the Australian culture that directly impact the marketing of a brand is their modesty. As such, it is essential not to over sale business in the Australian Market. The working culture in Australia is majorly collaborative, and business stakeholders always like to consult one another before making a decision. Therefore, it is expected that decision making can be slower, and patients are critical when engaging other businesses within the country. There is no language barrier in Australia since English is a standard spoken language for doing business. In this view, the Australian Market is an appropriate place to do business based on their social and cultural environment.

Political, Regulatory and Legal Environment

Political stability, sound governance, and transparent regulatory system are significant in the economic prosperity of Australia. Its effective management offers Belstaff a secure and safe environment to do business. It is rated among the global top five on the Index of Economic Freedom. The regulatory frameworks in Australia protect both the consumer and promote fair trading practices and competition. The country has a national statutory framework to enhance fair trading for both businesses and consumers. Intellectual property and other assets that associate with doing business, including designs, patents, trade markets, and secret formulas, are protected in Australia through the intellectual property laws. It encourages innovation and aims at safeguarding businesses that create original IP to enhance competitiveness. Australia has a relatively complex federal taxation system that comprises of the capital gains tax, income tax, and consumption tax. Besides, there are numerous state-based taxes, for instance, payroll tax, stamp duty tax, and land tax. As such, it is vital to understand the interaction between the charges to ensure that Belstaff can undertake a successful business in Australia and avoid penalties. Australia may apply a 40% tax for companies that avoid paying the fee or diverting its profits. Hence, the taxation frameworks of companies while operating in Australia must be transparent. Again, Australia has an international tax system, and Double Taxation Agreements, which impact on anyone doing business with other countries will involve the state. Despite the complexities in its tax regime, transparency in Australia guarantees multinationals such as Belstaff a healthy and active business environment (Stromquist 2014).

Technological Environment

Technology is a cornerstone of global business today. Its rapid growth and development have significantly influenced industry not only on a country level but also on a worldwide scale (Nojavan 2017). Australia has embraced technology in its businesses. Different companies have developed world-leading technological innovations that make business easy. One of the most significant changes in the retail, and particularly the apparel industry is e-commerce. The internet and other technologies, such as artificial intelligence, have become an integral part of a business in Australia. Both the consumers and companies have embraced technology and multinational, Belstaff can find it easy to do business in this Market. The race to make digital landscape the choice for both brands and consumers, the electronic business players continue to innovate through adding value to its businesses. Data analytics and automation have enhanced a breed of start-ups to attain agile. Customers are using online platforms to identify and discover new trends and fashion in the industry. Therefore, the digital presence of a company is significant in promoting competitive advantage. The adoption of technology by many businesses in the apparel industry in Australia necessitates Belstaff to boost its presence through extensive but modest digital strategy. Overall, Australia has access to secure, reliable, and high-speed mobile communications and broadband, which is essential in ensuring that the digital presence of a Belstaff is attained. Besides, it allows many consumers to access the internet and gain new knowledge about new fashion trends. Hence, the technological environment in Australia supports the Belstaff business.

The International marketing Environment

The Australian Market research was done by conducting a SWOT analysis, which offers a useful avenue for summarizing the situation in the industry. The study was used to establish the strengths and weaknesses in the Australian fashion industry and identify the opportunities that Belstaff can take advantage of and make an investment. 

Through this process, the market need is identified based on the evaluation of the weaknesses and opportunities.

Strengths

The Australian fashion industry has been experiencing significant growth over the years, and it is valued at 14 billion dollars. There is an extensively new clothing line that is introduced to the market annually, and the Australians accept. The Australians are receptive of new fashion designs and can easily purchase a new brand in the Market without necessitating a long term relationship. The Australian fashion industry is immensely influenced by the original tends and fashions from other countries such as the United States and the United Kingdom (De Mooij 2019). The state also offers a strong economy with a stable and transparent regulatory framework that encourages investment. The profit margins for designers are considered quite high in Australia, making it a more profitable market for fashion companies. There are established commercial laws and intellectual property laws which protect the new innovative products of companies such as Belstaff. The regulatory framework also promotes fair trading and completion practices.

Weaknesses

A majority of the Australian people do not prefer flashy fashions and like to put on regular clothes that are cool and comfortable. They prefer clothes that can keep them warm during cold months and worm during the hot summer. However, the Belstaff designs will be appealing to the class of Australians who like prestigious and elegant fashions. There is a keen competition in the Australian Market with top designers who are well known globally originating from the country. Belstaff Jackets appeal to the middle-upper and high-income class who has the surplus income to spend on luxurious and prestigious products. Thus, it limits the Market within Australia that the company can take advantage of, for instance, the middle class who are the majority. The Australian Market is characterized by fragmented sectors and slow adoption of environmental and ethical practices. Despite these weaknesses, the Australian Market offers significant opportunities for Belstaff.

Opportunities

The Australian Market creates opportunities for new styles in fashion that can be attractive to the eyes of the consumers. Australians are receptive to the latest fashion trends, and Belstaff has an opportunity of introducing its unique and innovative product to the market. The high acceptance rate of new ideas enhances the company to add the new product without a challenge. There is an opportunity to use the design innovation and captivate the Market. New technology creates new opportunities through which Belstaff can utilize to reach out to the latest Australian Market. While the fashion industry drives the annual retails sales, across wholesaling, retailing, and manufacturing, their Market is not fully exploited. Besides, the fashion industry is continuously evolving. Therefore, Belstaff has an opportunity to meet the demands for new products and fashion trends in the Australian Market through producing its trendy Jacket (Bloch 2018).

Threats

One of the greatest threats that Belstaff can face in the Australian Market is competition. The Australian apparel market is characterized by stiff competition both from the local and international designers. Therefore, there is a need for s strategic marketing plan that can enhance the competitiveness of Belstaff to gain a considerable market share. Besides, the international Market also threatens Belstaff due to low production costs, which make some of the products cheaper. The global financial crisis is another threat that can make it difficult for Belstaff to enter and succeed in the Australian Market. The operations cost in the Australian Market is quite high, particularly with the increasing costs of rent. Also, the Market has experienced cautious consumer spending practices in the recent past, which may affect sales (Phadermrod 2019).

Market Need

Based on the SWOT analysis of the Australian market, it is evident that there is a need for new fashion and trendy clothes. Therefore, the Belstaff will aim to meet the continuously growing demand for new trends through the production of unique and innovative Jackets. The Jackets offer the Australian consumers the comfort and warmth that they require, particularly in the cold seasons. However, the market needs in Australia can be met through overcoming different challenges such as competition. Hence, the marketing plan will give the company a strategy to gain a competitive advantage and gain a significant share in the Market (Kotler 2018). 

Segmentation, Positioning, and Targeting

Segmentation

Segmentation in the Australian market has been done based on the income levels of customers. The fashion industry has different segments, including the rich, the middle class, the upper-middle, and the lower middle class. The two markets that Belstaff focuses on in the Australian Market are the rich and the upper-middle class. However, the middle class with extra income to spend and have a sense of prestige and fashion can be customers of the company. Besides, the segmentation is also based on the geographical location. In this case, the segmentation is done based on the regions and cities. Belstaff will concentrate on the major cities of Australia in its initial process of entering the market. However, the expansion into other areas will be based on need. Demographics are also another element that influences the decision of the segmentation of the Australian Market. Segments can either be based on sex and gender, or age. Belstaff Jackets are produced for all genders and all ages. Therefore, these segments are critical in determining the specific targets for Belstaff and positioning itself in the Australian Market to gain a competitive advantage.

Targeting

Belstaff targets consumers with a high income in the Australian Market. Its Jackets are unique, innovative, and prestigious. Hence, the cost of purchasing Belstaff Jacket is quite high; thus, the need to focus on the wealthy and the upper-middle-class population in the Australian Market. The company also targets a population of 18 years and above both male and female. This is the age that has an independent choice of their fashion and can decide on which type of jacket they would wish to wear. Hence, Belstaff seeks to reach out to these groups of individuals through different marketing platforms and strategy. Besides, the target of Belstaff in the Australian Market are consumers with trendy and fashion sense who like prestigious and luxurious products. The Belstaff jackets are unique and prestigious in nature. They have been developed with high level of creativity to create a comfort and luxury to its users (Zhang (2016).

Positioning

Belstaff positions itself through creating value for its consumers. The company has strategically maintained its brand image since inception. The uniqueness of the Belstaff Jackets, distinguishes the brand from other global competitors. There are specific standards for making a Belstaff Jacket. It includes comfort, uniqueness, and prestige. The Jackets are designed in a manner that it gives the users comfort when sitting. It is also slim fit and comfortable in the hands. The message transmitted to the consumers is that Belstaff Jackets are bought by the wealthy, active, attractive, and individuals living an interesting live. Hence, the brand attracts individuals of a prestigious and luxurious class (Kanagal 2015).

Marketing Communication Mix

The marketing communication mix is a critical element in ensuring that Belstaff Jackets are introduced in the Australian Market. The communication mix is essential in ensuring that there is sufficient awareness about the product. Advertising, sales promotion, events and experiences, public relations and publicity, online and social media marketing, mobile marketing, personal selling, and direct and database marketing. A mix of these tools will ensure that there is an effective communication between the brand and the company in its entry and launching of jackets in Australia.

Marketing Communication Mix

Advertising and social media marketing will be used prior to the launching date and after the launching date to create awareness about the new product. Some of the mediums that will be used in advertising include the social media, newspapers, and televisions in Australia. The initial adverts before the product is launched will focus on advertising the launching date of the product and offer customers insights about the product. Social media shall be used in making sure that the highest number of young target population is reached. Social media is the most preferred since it is cost effective. The television and newspapers will reach the older generations who do not uses social media frequently (Lal 2020).  

Sales promotion and personal selling shall be used during the first month after launching the product. Customers will be given discounts to encourage them to purchase the new product. The use of promotions attracts consumers to the stores both online and offline to Market the product. Sales promotion shall also entail display allowances of partnering retailers in Australia. Personal selling shall be used during the launch day and the entire moth after launching. This aims to ensure that the consumers are informed about the uniqueness of the product and can interact with Belstaff staff and ask questions to understand how and why the Jackets are unique.

Events and experiences shall be used during the launching of the product. The main event will be the event for launching the product. It will be characterized by a run way fashion show where different models both male and female will wear the various designs of the jackets and showcase their uniqueness. The launch will attract the stakeholders in the fashion industry including the consumers. During the event, the company staff will explain to the audience the innovative and unique nature of the Belstaff Jackets and why every Australian should purchase it. The launch shall be covered by different media houses to ensure that it reaches as many people as possible (Fill 2016).

Product and Price

Belstaff Jacket is unique and innovative. It differentiates itself from other products in the Market based on the design and the form of products used to develop it. It is created using leather, cotton and metal to give it a unique and comfortable touch. Its designs offer comfort, warmth, and cooling effect to customers. It is smooth and slim fit to give the users a modern and stylish look. Indeed, Belstaff jackets cannot be compared to any other in the world and it offers prestige to the customers. Its packaging identifies the brand and offers descriptive and persuasive information. The packaging facilitates protection and transportation of the product. Overall, the Belstaff jackets can be described as unique and superior to other jackets (Camilleri 2018).

Promotional and geographical pricing methods shall be used as the entry pricing strategies. Promotional pricing shall be used to stimulate sales and offer rewards to specific consumers (Richards 2016). Primarily, the promotional pricing will be based on the point of sale discounts. The stores shall have the amount off percentages. This pricing strategy aims at increasing customer traffic at the stores particularly in the Australian Market where consumers are budget conscious. The promotion pricing will last for only one month after which the geographical pricing shall be implemented in totality. Geographical pricing is used to reflect the geographical costs and demands. The strategy ensures that the company can maximize revenue in the Australian Market. Belstaff management ought to consider different aspects of production in Australia and associated costs to determine the price.

References

Bernard, A. B., Moxnes, A., & Saito, Y. U. (2019). Production networks, geography, and firm performance. Journal of Political Economy, 127(2), 639-688.

Bloch, H., & Metcalfe, S. (2018). Innovation, creative destruction, and price theory. Industrial and Corporate Change, 27(1), 1-13.

Brown, S. (2016). Brands and branding. Sage.

Camilleri, M. A. (2018). Integrated marketing communications. In Travel marketing, tourism economics and the airline product (pp. 85-103). Springer, Cham.

David, M. E., David, F. R., & David, F. R. (2017). The quantitative strategic planning matrix: a new marketing tool. Journal of strategic Marketing, 25(4), 342-352.

De Mooij, M. (2019). Consumer behavior and culture: Consequences for global marketing and advertising. SAGE Publications Limited.

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Fill, C., & Turnbull, S. L. (2016). Marketing communications: brands, experiences and participation. Pearson.

Kanagal, N. B. (2015). Innovation and product innovation in marketing strategy. Journal of Management and marketing research, 18(2015), 1-25.

Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing management: an Asian perspective. Pearson.

Kraus, S., Meier, F., Eggers, F., Bouncken, R. B., & Schuessler, F. (2016). Standardization vs. adaption: a conjoint experiment on the influence of psychic, cultural and geographical distance on international marketing mix decisions. European Journal of International Management, 10(2), 127-156.

Lal, B., Ismagilova, E., Dwivedi, Y. K., & Kwayu, S. (2020). Return on Investment in Social Media Marketing: Literature Review and Suggestions for Future Research. In Digital and Social Media Marketing (pp. 3-17). Springer, Cham.

McDONALD, M. A. L. C. O. L. M. (2016). Strategic marketing planning: theory and practice. In The marketing book (pp. 108-142). Routledge.

Nojavan, S., Zare, K., & Mohammadi-Ivatloo, B. (2017). Optimal stochastic energy management of retailer based on selling price determination under smart grid environment in the presence of demand response program. Applied energy, 187, 449-464.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.

Richards, T. J., Liaukonyte, J., & Streletskaya, N. A. (2016). Personalized pricing and price fairness. International Journal of Industrial Organization, 44, 138-153.

Stromquist, N. P., & Monkman, K. (2014). Defining globalization and assessing its implications for knowledge and education, revisited. Globalization and education: Integration and contestation across cultures, 1, 1-21.

Wu, C. W. (2016). The international marketing strategy modeling of leisure farm. Journal of Business Research, 69(4), 1345-1350.

Yang, M., & Gabrielsson, P. (2018). The interface of international marketing and entrepreneurship research: Review, synthesis, and future directions. Journal of International Marketing, 26(4), 18-37.

Zhang, K. Z., & Benyoucef, M. (2016). Consumer behavior in social commerce: A literature review. Decision Support Systems, 86, 95-108.