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The company has allocated $30,000 which will be used in conducting the market research in all market segments. This will be imperative, because the company will be able to understand various needs and desires of customers at different segments. Also, this will help the company to produce products that satisfy the needs and preferences of all customers in different market segments (Mehta, 2008).
In order to penetrate to all segments in the market, the 21st Wear Company has allocated $50,000 that will be used in advertising the products of the company and enhancing the public relations with the current and prospective customers. The 21st Wear Company will apply the print media, such as newspapers and magazines to promote various brands of products. Also, the company uses broadcast media, such as TVs and Radio stations to create awareness on different products presented in the market, and different places where customers can obtain the products that satisfy their needs and wants.
Other than advertising, the 21st Wear will employ 10 salespersons who will report directly to the regional sales managers. This initiative will help the 21st Wear to reach a large number of customers in all market segments. The salespersons will be responsible for conducting field sales and promoting various brands of products in the market. As a way of motivating them, all salespersons will be entitled to a basic salary and a commission depending on the income from sales (K. R Balan, 1991). Additionally, the sales force will undergo comprehensive training and development to increase their knowledge and skills. This will enable the salespersons in the field to apply their full potentials, and work hard in order to maximize the sales volume. In some brands of products, the 21st Wear will apply vertical strategy, where the company will still keep on providing the same brands of products, but offer them at different levels of product distribution chain.
Channels of Distribution
The 21st Wear will use its sales force to distribute various products in different market segments. Additionally, the company will still use retailers and permit some distributors to distribute some brands of their products. This will enable the company to reduce the cost that would be spent on conducting field sales (Coe, 2004). The company will choose specific distributors in all market segments to ensure that all customers can access to a variety of products that satisfy their needs and preferences.
In order to reach all customers in all market segments, the 21st Wear will use the combination of advertisement, personal selling, public relations and printed materials, such as brochures and catalogues. These materials will enable customers in the target market to be aware of a variety of products available in the market, and a place where they can access such products.
In developing a communication strategy, the 21st Wear will open a Website to allow all customers to access any information about the company and its products online. This Website will also enable all customers to post their questions on various products, provide their opinions and recommendations.
Furthermore, the company will apply social networks, such as Facebook and Twitter as a marketing strategy. These social media will enable customers from different market segments to chat with the company staff by asking questions and providing their views on various brands of products or the operations of the company. The company’s staff will be able to respond to all matters raised within a short time. The use of the social networks, such as Facebook and Twitter will mostly be used in a market segment that comprise of young people. This is because such social media are mostly used by young people. This will build a mutual relationship between the company and customers (Tosdal, 1957).
1. Barry, Callen. 2010. Manager’s guide to Marketing, Advertising, and Publicity. New York:
McGraw-Hill Company, Inc.
This book provides valuable facts about advertisement environment in countries like the United States of America. The writer of this book urges the management of any business organization to be conscious when developing the marketing strategies, and be aware of the most efficient and effective technique and principles in marketing and all advertising campaigns. Additionally, the writer of this book states that it is imperative for all communication strategists, who hold various positions in the advertising industry, to be sensitive of marketing techniques. This will enable them to create the successful and relevant messages to their customers, and position the company or a product as a powerful competitor in the market.
2. Argenti, Paul. A. and Courtney M. Barnes. 2009. Digital Strategies for Powerful Corporate
Communications. New York: McGraw-Hill.
Basically, this book provides an insight on how social media and Web play a key role as a strategy for communications in a business. This book states that the purpose of the digital communications is not only a business strategy, but it also plays a critical role in ensuring the effective brand positioning. The book incorporates effective and practical digital approaches that are vital in developing a powerful brand positioning.3. Briggs, A., & Burke, P. (2002). Processes and Patterns. A Social History of the
Media. Cambridge, UK: Polity Press.
This book provides the comprehensive information on how advertisement process has changed consistently as a result of communication technology. This book explains the developments of advertisements through evolution of communication technology. For instance, it provides information on how businesses started using the Broadcast media like radio and print media, such as newspapers to advertise their products in communicating with their customers.
Major Disadvantages in the Target Market
1. Stiff competition - there is a very stiff competition from well established companies such as Nike, Reebok, Addidas, Puma and Fila among others. This is the biggest challenge in the market, since such companies have a large capital base and well established distribution channels in all market segments compared to the 21st Wear.
2. Inadequate funds- Although the company has allocated a substantial amount of money on market analysis and promotion, the money is not sufficient to carryout the comprehensive promotions in the target market. This makes it difficult to compete with companies which are well established in the market. Therefore, in order to gain a competitive advantage over other companies, the 21st Wear must allocate more funds in promotions and expansion.
3. Market penetration strategy is an expensive and time consuming exercise. For example, advertising products on the broadcast media like TV and Radios, as well as in print media like Newspaper or magazines is extremely costly. On the other hand, field sales consume a lot of time, because they involve travelling from one place to another to ensure that customers in the target market become aware of the products available in the market.