Introduction
The two co-founders of Veja Kopp and Morillion though with no experience on business have made an impact on the fashion industry, (Kim, 2010). The duo identified the need to conduct business feasibility research and settled for a unique aspect within the fashion industry. Their discovery has attributed to their dominance and continues existence in the competitive fashion industry. Their unique fashion cloths portray a unique and astounding creativity. Propelled by the vast experiences they experienced on their business adventures the two settled for an environmental manufacturing plan. Their plan can be credited by the consequential increase in other industries interest in producing ethical wears. They settled for passionate wear for both of them, the sneakers. This formed the slogan of their business “sneakers with a conscience”. The global dynamic competition in the fashion market requires the entailed firms to enact strategic plans to earn a piece of the market share. Based on the products that Veja offers to their consumers, the firm has quality products enabling them win consumer loyalty. The firm has its unique advantages presented by the market however, the competitiveness of the market calls for strategic measures to enable the firm create a competitive advantage in the market. This can be achieved through conducting analysis on their production, supply and distribution chains. The proposed strategies should reflect the organizational objectives, (Maisel, 2001).
Opportunity statement
Veja has numerous opportunities parented by their efficiency in the running of business. The worldwide campaign on environmental concerns advocates for eco-friendly manufacturing policies, (Ana, 2010). However as one of the entrepreneurs of Veja stated most of the campaigns are compounded on empty words. Organizations claiming to have enacted and acted upon the call do so on baseless and empty actions. Veja entrepreneurs took the bold step and enacted plans that direct act upon environmental conservation. This is evident on their form of products, campaigns and the production models. Though some of the manufacturing models are expensive, the firm avoids cheap production methods which may impact on the environmental pollution.
Situation analysis
Veja has vast strengths indicated by the embracement that the firm has already received in the market creates evidence on the copious opportunities for growth. The firm offers quality, durable and unique products to its consumers. The operation and relationship between the firm and the environments signified a positive trend. These strengths if aligned with an effective strategic marketing plan can help the firm grow and develop. In spite of these strengths indicated by Veja, the firm fails to have a strategic marketing plan. The firm also indicates lack of strategies in relation to production and maintains production of raw materials. The firm needs to enact strategic measures aimed at acquiring more raw materials for the production on their products, (Min, 2006). The firm has vast opportunities especially the positive public image developed. The fact also that the firm is credited with the emergence of ethical clothing offers unique attention to the firm. Veja is built under policies and values aimed at environmental conservancy, this unique aspect that gives the firm a competitive advantage. Some of the threats that the firm could be facing is the competition from companies imitating their production models, environmental changes impacting on their natural resources used for production and failure to enact competitive strategies aligning with the technological trend.
Evaluation of alternatives
Veja needs an effective marketing programs, this can be achieved by analysing the current trend enacted. Veja can achieve this by identifying market opportunities and threats and forecasting future trends in business areas of interest for the enterprise and anticipating in setting objectives and formulating corporate and business unit strategies, (David, 2006). Veja can opt to segment the market upon enactment and development of the marketing strategy. The marketing strategy aiming at achieving the set objectives should align with the segmented markets. Based on the fact that the firm has no specific production target on a particular consumer avails an advantage to the firm. The firm should segment their markets based on the reactions and response by their consumers. This can be achieved by conducting research on areas that a certain product receives optimum embracement by the consumers. Upon identification of this specific market such as London with a certain product such as shoes of a particular design, the firm should target their marketing strategies in relation to the market analysis. Segmenting the market is essential in various aspects as Veja will identify upon enactment of these strategy. Some of the essentiality of the strategies under market segmentation includes the fact that the firm will be able minimize on cost incurred when products that do not meet consumer satisfaction and avail products to the consumers based their stipulated requirements increasing consumer satisfaction. The segmented market should be supplemented with an effective strategic integrated marketing communication channel. This should be reflecting the set objectives of the strategies enacted and the organizational goals. The following steps are essential in developing and segmenting the market.
- Review the current market and the targeted markets.
- Gather and analyse data in relation to the sales, consumer satisfaction and competitors
- Segment the market based on the identified variables such as age, gender or income
- Target market under this analysis Veja should have a targeted market under which their products should be sold. The firm should first execute research on the specific market.
- Target mix this calls for the firm to develop a blend that reflects consumer needs hence aimed at satisfaction.
- Strategic planning, enact a plan under which the segmented market will be covered. This requires the firm to identify resources and means to facilitate the plan.
- Develop implementation team, this will enable the firm have specific individuals monitoring and facilitating the strategy. This should include competence individuals aware of the firm’s objectives and market reactions.
Implementation plan
The implementation of the strategic marketing plan in relation to segmenting the market is essential for the achieving of the organizational objectives. The preceding preview is essential in the implementation of the plan.
- Set a particular timeframe like 3 months, after which an overview on the performance will be done. The success of the first phrase should be the baseline on the full implementation of the plan.
- Plan on the number of individuals to facilitate the plan (have a team leader)
- Create a team to oversee the implementation of the strategy (they should share similar ideologies)
- Set and facilitate the resources required for the plan.
- Incorporate all the stakeholders and other business segments.
The firm should specify on a particular segmented market upon the decisions by the management. However if the management calls for an overall implementation of the plan in relation to the entire market, the firm should consider the factors within the entire market. The cooperation indicated in the last preview indicates the effectiveness and efficiency of success of the plan, this is essential. Increasing the productivity of the firm needs reliable sources of raw materials, thus calling for the firm to enact strategic strategies aimed at exploring new resources origins. The firm can achieve this by exploring new regions apart from Brazil and offering dimensional markets apart from France and London, (Etzion et al, 2005).
Performance standards and financial controls
The total investment budget of the marketing strategy in relation to market segmentation and offering the products to consumers should be equal 40% of the annual marketing budget for the imminent year.
- The breakdown of the finances or the total budget allocations within the project should account for 20 % on market research, 30% on the consumer segmentation and 50% on the facilitation of the implementation of the new markets and business segments.
- The finance team should be responsible and accountable for the expenditures with standardized financial report availed to the marketing director.
Marketing director should be reporting to the company president on the weekly bases, he should also be responsible for redirection of funds. The rate of returns in the investment of the project is projected to be high based on the vast opportunities projected by the plan. The 40% of the budget portion on the marketing funds allocation to the plan should be more than expected to double upon the execution of the plan. Contingency plans for the project include; setting back-up funds to finance expenditures arising that were not within the budget, setting up risk assessment measures and maintaining closer contacts with marketing firms. Contingency plans can be enacted especially on the production by offering varying seasonal periods on plantations of law materials (Etzion, et al, 2005).
Recommendation
Organizations observation on the recorded data, have been able to establish a customer driven marketing strategy. Through the strategy firms are able to execute promotions on products basing on the consumers purchasing behavior. This increases sales increasing the productivity of the organization and achieving the consumer expectations. Recommendation of products has been achieved through big data analyses. Basing the trends and tastes of consumers organizations are able to design and recommend various products to their customers’. Big data is normally unstructured customer data. When the information is structured it can drastically improve the organizations performance. Organizations have discovered the benefits attached on analysing the big data and implementing the information extracted. This has helped the organizations improve their consumer satisfaction rate Veja can also evaluate this recommendation into their marketing strategies.
Conclusion
The firm can also opt to segment the markets through the products that they offer. These factors provide a clear insight on the expectations and the considerations of enacting marketing programs. The ability to develop effective and competitive marketing strategies is one of the most significant essentials determining the success of the firm such as Veja. Implementation, evaluation and control are normally based on the success on developing the programs. The firm should incorporate other stakeholders when developing these programs as failure to involve them can cause minimal performance in some sections of the firm.
Reference
- Maisel, L. (2001). Performance Measurement Practices: A Long Way from Strategy Management. Balanced Scorecard Report
- Min, H. (2006).Developing the profiles of supermarket customers through data mining. Service Industries Journal 26(7), pp. 747-763
- Etzion, O., Fisher, A., and Wasserkrug, S. (2005). E-CLV: A modeling approach for customer lifetime evaluation in e-commerce domains, with an application and case study for online auction. Information Systems Frontiers, 7, 421–434.
- Ana, S.,(2010). From Fashion to Rubber. Bringing Brazil to UK
- David, H., (2006)., Exciting News on Fabrics
- Kim, P., (2010). Adidas Green. Eco Fashion World,
- Kim, P., (2010). Veja: sneakers with a conscience. Richard Ivey School of Business
- Caroline, A. T., (1987). Market Segmentation. University of Strathelyde, Glasgour
- Cornish, P (1981). Life cycle income segmentation-SAGACITY, Admap, 17-10
