Market Search Proposal

Market Search Proposal

Name

Institution

Year

Cover Letter

Market search and sales capitalization is on one of the main ways to grow a company. By looking for new markets, a company is able to increase its product outlet margins and thus more revenue and capital generation. Beau & Ro Bag Company being a thriving company in its New York markets, it is high time the company’s management thinks of aboard markets that can help increase sales and revenues. The right way to get into a new market is to capitalize on already existing channels in a new country or adopt a join venture. Beau & Ro Bag Company will in this case choose a joint venture approach with a Malaysian ladies’ handbags company by the name Mel and Molly. The company seeks to operate under the Mel and Molly’s brand name and use its existing marketing channels to sell its handbags. The ultimate goal is to increase sales by fetching the growing Malaysian market.

Company Description

Beau & Ro Bag Company is a ladies’ hand bag company located in New York with its markets spready all across the U.S. The company has had a healthy financial growth due to the increasing market share that has seen its revenues increase steadily over the five years (Cateora et al., 2020). Beau & Ro Bag Company, Inc. is located in New York, NY, United States and is part of the Textile Manufacturing Industry. Beau & Ro Bag Company, Inc. has total employees across all of its locations and generates $86,000 in sales (USD). Beau & Ro Bag Company was Incorporated In 2014 where it has managed to grow tremendously in terms of market size and sales thus adding to its revenue basket. With the company seeking more markets abroad, the management targets the Asian markets that area very promising in terms of sales volume outlet (Išoraitė, 2016). Beau & Ro Bag Company has managed to take a considerable share in the U.S. handbag market that has positioned it strategically for future growth.

Marketing Strategy

The target market for Beau & Ro Bag Company will be Malaysia where it will take a joint venture approach with Mel and Molly. The reason for going abroad is to capitalize on a new niche that already promises great future in sales due to the growing middle class. Beau & Ro Bag Company majors in the sale of Clutches, crossbody bags, fanny packs, backpacks and wine totes that are a key product line that will also fetch good attraction from Malaysian customers (Cateora et al., 2020). The target market in Malaysia offers both growth and stability as already seen in other South Asian countries.

Proposal

The main goal of moving into Malaysia is to take advantage of the rising middle class that offers a potential market for the company’s products. In line with this, the company seeks to operate a joint venture with Mel and Molly an already market giant in Malaysia. Through this move, Beau & Ro Bag Company will be able to increase and adopt new markets that will add to its corporate growth agenda. The external market in Malaysia is already promising with Mel and Molly already fetching good outlet for its products (Othman et al., 2019). The joint venture will not only benefit Beau & Ro Bag Company btu also add to Mel and Molly’s ambitious growth plans by adding more knowledge and insights into the sale of ladies’ handbags. For this reason, the joint venture appears to be the most lucrative approach that will benefit both firms in their growth agenda. By adopting joint venture with Mel and Molly, Beau & Ro Bag Company will be in a position to integrate with the Malaysian market with ease by using the already established supply chains.

Marketing Mix (4Ps)

Product

The product being introduced into the market is a collection of ladies’ hand bags and accessories. To be precise, Beau & Ro Bag Company seeks to sell Clutches, crossbody bags, fanny packs, backpacks and wine totes to the new market. By joining hands with Mel and Molly, Beau & Ro Bag Company will be able to introduce the new designs and bags to the Malaysia market.

Pricing

The pricing will be determined by the local market averages to ensure that the prices are favorable and affordable to the local customers. Going by the current pricing by Mel and Molly, the medium hand bags will sell at $45.55. The crossbody bags will retail at $33. The clutches will vary depending on the size and design where the average price will be $57.

Placement

Product placement is a modern merchandising strategy for brands to reach their target audiences without using overt “traditional advertising. Beau & Ro Bag Company will try to reach out to the established market already being fed by Mel and Molly (Othman et al., 2019). This approach will save on advertising cost and thus build on an already stable and strong market.

Promotion

The promotion avenues for the Beau & Ro Bag Company’s products will be done through the already established channels by Mel and Molly. The main avenue will be to use the Mel and Molly’s websites where the product and prices will be advertised. The other promotion avenue will be the social media as the company seeks to reach the young women. Malaysia has extensive internet coverage and high number social media users that makes it a favorable avenue o reach out the young women (Išoraitė, 2016). Key sites to be used in promotion include Facebook, Instagram, and Twitter in the promotion activities.

Financial status and goals

Beau & Ro Bag Company has made remarkable achievements in terms of revenue generating over its five years history. The company has managed to gain steady revenue growth that makes it strategically positioned to broaden its market. The company’s revenue stands at 55,600 million dollars where it seeks to invest 20% of this into Malaysia. The total amount to be invested into the new market is $12,350 that will go into the marketing and establishment of the new sales channels in Malaysia. The projected sales will vary but the current target is to gain a revenue of $8000 in the first year of operation. These projections will also vary with the market demand where the turnover rate is projected to remain at 25% after sales. This will therefore translate to a profit marketing of 45% or $10,000 in the first one year.

References

Cateora, P. R., Meyer, R. B. M. F., Gilly, M. C., & Graham, J. L. (2020). International marketing. McGraw-Hill Education.

Išoraitė, M. (2016). Marketing mix theoretical aspects. International journal of research granthaalayah, 4(6), 25-37.

Othman, B., Harun, A., Rashid, W., Nazeer, S., Kassim, A., & Kadhim, K. (2019). The influences of service marketing mix on customer loyalty towards Umrah travel agents: Evidence from Malaysia. Management Science Letters, 9(6), 865-876.