Marketing Assignment 2 GNMEN document roots target market profile PDF

Preview

Summary

About roots and target markets, product pricing and market status
mandatory assignment
includes promotion mix, product pricing, lifestyle...

Description

ROOTS TARGET MARKET PROFILE

MARKETING ASSIGNMENT #2

HIRAL BORIYA - 300915852 YASH PATEL - 300927216 JERIL KURIAN - 300877362

PROFESSOR DAVID BLASER

TOPIC - ROOTS LEATHER JACKET

Page 1

ROOTS TARGET MARKET PROFILE

CONTENTS

ABOUT ROOTS

3

TARGET MARKET

4

POSITION MAP OF ROOTS

5

PRODUCT LIFECYCLE

6

PRODUCT PRICING

10

PROMOTIONAL MIX

11

RECOMMENDATIONS

13

Page 2

ROOTS TARGET MARKET PROFILE

ABOUT ROOTS

Nowadays, fashion trends are changing day by day. With the help of advanced technology and media, many companies are emerged with various kinds of effective marketing and marketing messages. So, we decided to take Roots, which stays a step ahead from other companies and has proper product mix so as to satisfy the needs of the current generation by having the latest trend in the mind. Roots focus more on young generation because they will be always up to date with the trends and they are brand-conscious customers. Roots always gives important for its quality. Their major products are Sweats, Active wear Backpacks, Outdoor Accessories, Bags, Small Leather Goods and so on. In this project we try to provide new and stylish products to the market through creating quality leather jackets for men.

Page 3

ROOTS TARGET MARKET PROFILE

TARGET MARKET It is very important to target the market on the basis of the demographics, behavioural, psychographic, and geographic parameters, for effective growth of the businesses DEMOGRAPHIC SEGMENTATION

AGE

18-35

GENDER

Male, Female

LIFESTYLE

Teenagers, Youngsters, Early couple

INCOME

$25,000-$45,000; $45,000-$80,000 and above

OCCUPATION

Students, People who own huge businesses.

EDUCATION

University Graduates or Post Graduates

ETHNIC OR CULTURAL Canadian, American PSYCHOGRAPHIC SEGMENTATION SOCIAL CLASS Middle and High-Income LIFESTYLE Metropolitan, active semi-urban family PERSONALITY Highly organized and detail-oriented, outgoing BEHAVIOURAL SEGMENTATION OCCASION Based on Season BENEFITS High Quality, Best Service and Finest Economy LOYALTY STATUS Very High

POSITION MAP OF ROOT’S Page 4

ROOTS TARGET MARKET PROFILE

Position Statement: Canada’s leading lifestyle brand that aims to provide best quality leather goods.

Roots Canada’s is located in 3 different countries such as Canada, America, and Asia. There are 120 store which are located in The USA and Canada and 65 stores are located in Asia. Roots Canada has many competitors like The Gap Inc., Zara and American Eagle. Roots Canada and American Eagles are similar because they sell almost the same products, both the companies has products for men’s, women’s, baby and children. The Gap Inc. is having the similar products just like Roots have. Example the sweaters and sweat pants, and even they have all the accessories like hats, purse, hand bags and etc. Even Zara is also a main competitor because they are famous for their leather jacket and it is cheap but Roots offer better quality for a good price and Roots has its brand value.

ROOTS PRODUCT LIFECYCLE Page 5

ROOTS TARGET MARKET PROFILE

By taking a look at the above diagram we can clearly see that Roots is at maturing and stabilizing stage. This stage comes after the introduction and growth stage and is also a quite challenging stage for the manufactures as in this stage it is very important to maintain the market share of the company. The following points can clearly explain us that Roots is in its maturity stage:



By studying the diagram shown above we can see that the sales volume is on peak stage. As there is a substantial increase in the sales in the growth stage now as we even increasing the market has been saturated as we have less base for new customers as most of the customers have done purchasing.

Page 6

ROOTS TARGET MARKET PROFILE



The market share also decreases making it an important challenge for the manufactures as they have to compete with other companies who are also trying to maintain their market share.



While at this stage of maturity the profits are increasing initially but then over the time during this stage the manufactures can see the profits decrease as a result of the falling prices. The low prices are a result of rival companies competing on the price so that they can steal customers from the company.

During this stage of maturity it is really important for the organizations to come up with new innovative ideas to make the company product more unique and appealing to the customers so that they can help them in maintaining or even increasing their market share. The marketing strategies that we can use during the maturity stage are as follows:

 Market Modification  The volume of sales can be increased rapidly by influencing the variants or modifying the market itself. 

The brand users can be expanded by gaining new users, beginning production in new market segments and geographically expand the market. Attract rival company’s customer base by competing the price or by introducing new products.



We should also try increasing the product usage rate. This can be done by getting the customers to use company products more frequently. Also introduce new and unique products to the customers and convince them to use it in various ways.

Page 7

ROOTS TARGET MARKET PROFILE

 Product modification 

To increase the sales during maturity stage the products must be modified to gain the attention of the customers. This can be done using the following ways:



Quality Improvement Quality improvement can be done by increasing the durability and reliability of the product.



New features Improvement in the features aims at improving the safety and usability of the products.



Improvement in the looks and style of the product.

 Marketing Mix Modification Marketing mix components can be used to increase the sales. Following are the components of marketing mix: Product Modify the product as told above to gain new customers. Place

Page 8

ROOTS TARGET MARKET PROFILE

As explained above in the market modification part that aims towards market segmentation and geographical expansion. Sales Promotion To increase sales volume or enter a new market segment sales promotion is very important Distribution Increase the number of company outlets to make more sales and hence increasing the profits. Use of new distribution channels.

PRODUCT PRICING A Pricing Strategy is to understand the Value-based pricing versus cost-based pricing. Different strategy can be used for pricing like pricing based on buyer perception or on the bases of sellers cost and even based on competitors. For a new entry of a product we can use market skimming or market penetration. In this case we use market penetration because market is price sensitive and costs falls as the volume increase so that it will help in competition and they can be kept out of market. We can also use the price adjustment Page 9

ROOTS TARGET MARKET PROFILE

strategies by putting the products for sale or by giving discount in cash or even we can keep the exchange policy open for 30 days or trade in. the more we came to know about the consumers need we will be able to be satisfy both the effectiveness of the products and the income stream. So we as looking forward to provide the product at a very cheap price. Customers will always misinterpret the price with the quality, which might affect the sale because the customers will never buy the products because they believe the product will be of cheap quality if it is sold at cheap price.

PROMOTIONAL MIX The tools in promotional mix that help the company in meeting their promotional objective are as follows:  

Advertising Sales Promotion Public relation

Page 10

ROOTS TARGET MARKET PROFILE

1

Advertising: This tool might help an organization to achieve its objective as through this tool company can acknowledge the customer about its products and services. They can also inform the customer about their any upcoming product they are launching in a market in a near future. Advertising can be important for an organization to achieve its objective as it has a power to spread the information about the products and services to the buyer all around the world. It is expensive as compare to other promotion tools although companies with smaller budget can use advertisement tool such as radio advertising or newspaper article etc.

2

Sales Promotion: Sales promotion is the tool that often work with the advertising and public relation. Sales promotion motivates consumer to buy the particular product as it provides them a short-term incentive. Most of the organization uses sales promotion as their major promotional tools as it influences the customer personally to but the product. Sales promotion is also cheaper promotion tool as compare to advertising.

3

Public Relation: Public relation is another mass promotion tools that a company can use to sell its product to the customer. Public relation can have a strong impact on public awareness at a much lower cost than advertising can (Armstrong, Kotler, Trifts, & Buchwitz, 2015, p.461). If company can able to organization interesting events, it can be covered by several different media can work as same as

advertising that

would cost millions and billions of dollars to the company. In fact, such media attention would have more impact than advertising in consumers mind.

Page 11

ROOTS TARGET MARKET PROFILE

RECOMMENDATIONS:



A company should use advertising media tools such as newspaper advertisements, internet campaign, television campaign, radio advertisement, etc. to promote its product as through



such tools company can make the customer aware about their products and services. A company can provide rebates, cash refunds, promotional discounts as a part of sales promotion. A company can also come up with promotions like buy 1 get 1 free and 30% off



discounts. As a part of public relation company can organize special events such a hot air balloon releases, charity events etc. As Roots is in clothing industry, company can organize fashion

Page 12

ROOTS TARGET MARKET PROFILE

shows where they can showcase their new designer clothes. This way they can attract the customers attention as well as they can promote their new arrival stock of clothes.

Armstrong, G., Kotler P., Trifts V., & Buchwitz L. A. (2015) Marketing: An introduction. Toronto, ON: Pearson.

Page 13...