Chapter one
Historical background of the Company
Silk Clothing Company was established in June 2012 by entrepreneurs Neman Lucy and Russevell Nick. It is located in Beirut Lebanon. The two friends agreed to develop and market a line of clothing with an exceptional, universal imploration to the outside enthusiasts and forming the company was a step forward towards achieving their vision. Russevell, who has a degree in management, has been operating adventure businesses that organize trips to various parts of the world while Neman, who holds a degree in marketing, has been working in the clothing industry for the last seven years. The main intention behind the formation of the company was to meet the existing demand in the cloths industry and meet the customers’ needs, tastes and preferences. Additionally, improving the welfare of the community was also a major drive.
Mission statement
“To be a leading producer and marketer of high quality modified official and casual clothing that meets the requirements of our outdoors customers in all walks of life”.
Goals and objectives
- Enter new markets in Mid-Atlantic and southwestern states.
- Introduce new products that meet the needs and preferences of the rapidly changing customers.
- Contribute at least $55,800 yearly to conservation groups (Kurtz, 127).
- Increase sales revenues by 25% annually.
- Expand locally and help community members meet their clothing needs at without much hassle.
Chapter two
Environmental analysis
MICRO-ENVIRONMENT
The company started with three productions lines with 130-160 machines operated by a workforce of 400 persons and the revenues were 3 million in the first year. The company has experienced a steady growth overtime achieving annual sales of 170 million dollars. Currently it has 9000 employees and 4000 machines.
The potential competitors include: Al Skaff wears, Al Fakih Clothe Fatory, Al Kawthar clothing, Missak Narcissian Est.-Nermi Fashion, Tahini Est. For Clothes and Mohammad Al Halabi Factory For Women Wears.
MACRO-ENVIRONMENT
- Political and legal environment
The political and legal environment of Lebanon is affected by political instability. There are also inefficiencies in quality and regulatory standards set. The judiciary undermines property rights due to high rates of corruption.
- Economic situation
Since time immemorial, Lebanon has always been subjected to civil wars. The assassination of Lebanon Prime Minister created political uncertainties which affected the economic growth. The conflict with Israel and the collapse of its government in 2011 led to economic stagnation.
- Social and cultural situation
The Lebanese population has a unique ethnic diversity. It consists of both Muslims and Christians who live together in harmony. When compared to other Arab countries, it is more socially liberal. These factors will help the company to operate well in every corner.
SWOT ANALYSIS
The SWOT analysis of the Silk Clothing Company located in Lebanon is highlighted as follows:
STRENGTHS
- The Company is popular and known all over the globe for designer sportswear.
- The silk clothing is elegant with style on the clothes they manufactures.
- There is a high demand which needs to be met in Lebanon and other countries in the world (Kurtz, 97).
- The availability of cheap and affordable labor in Lebanon.
- The country is well located in terms of geographical settings.
WEAKNESSES
- They lack highly advanced technology to be used in manufacturing.
- Inadequate raw material with inconsistent prices.
- The quality control is not well standardized.
- Poor coordination between the government and the clothing market
OPPORTUNITIES
- The company has young minds that are always alert to design clothes satisfying the changing fashion.
- Market expansion to countries that they have not yet penetrated.
- The advancement of E-commerce and online retail promotes sales.
THREATS
- High competition from well established companies.
- Over-reliance from a single supplier of raw materials.
- Hyped taxes in imports changed for exporting machineries.
- The Lebanon government has allowed duty free clothing machinery.
Chapter three
MARKET ANALYSIS
- Segmentation
Silk Clothing Company segments its markets geographically. Its major markets shall be those in Beirut, Baalbek, Zahle, Habbouch and Mid-Atlantic and southwestern states. These markets have a relatively high population of people between the age of 15-60 years and whose economic prowess is considerably high (Kurtz, 162). They are well-educated, married and single individuals who understand and appreciate the significance of incomparable silk products. They are a group of people with a major interest in clothing therefore venturing into these markets will no doubt help the business achieve its goals and objectives.
- Targeting
The company uses differentiated marketing where the markets are geographically segmented and designs various different products so as to meet the varying needs, tastes and preferences of these different markets. The decision to target these markets was reached at after realizing that other operators in the industry have ignored these markets not knowing how profitable these markets can be. Considering the high demand in these markets, the company will establish branded products whose image is recognizable among consumers and offer the high value that the consumers are deeply in search of. These markets will enable the company to increase its sales revenues abundantly.
- Positioning
Our products are distinctively branded, high quality and priced at a low price to enable as many people as possible to purchase them (Kurtz, 07). Additionally, our clothes are suited to meet the divergent customer tastes and preferences while offering the unique comfort desired by the customers.
Positioning statement: “To all residents of Beirut, Baalbek, Zahle, Habbouch and Mid-Atlantic and southwestern states, Silk Clothing Company offers you a unique experience with silk and meets all your clothing needs by offering high quality, fairly priced products that gives you a reason to smile all day”.
Chapter Four
Marketing mix
The following discussion involves product, price, place and promotion elements that describe the market mix of the Silk Clothing Company.
Product
The company offers a line of high quality clothing products such as shirts, blouse, sweaters, jackets, shoes, trousers, shorts, socks, vests, t-shirts, suits and ties. All the products contain the company slogan that goes, “Get Smart” and they fall under the shopping goods categories. The company has strategically named their brands according to their colors such as sunrise pink, sunset red, and cactus red among many others.
Price
Silk Clothing Company has considered the use of the penetration pricing strategy to capture customers from the existing competitors and discourage the entrance of the new competitors in the market (Kurtz, 83). With this strategy, the company is willing to offer low priced products with an aim of capturing more customers. Since the company is new in the market, the competition-based pricing will be appropriate through setting the price lower than the major competitors in the industry.
Place
The company has chosen to concentrate on the intensive distribution through local and regional specialty shops that are scattered in various regions of Lebanon. The main distribution shops will be located at Beirut, Akkar, Tyre, Baalbek and Bint Jbeil. However, the sales of the company will be forecasted by the season and climate changes, where t-shirts, vests and light blouses will increase their sales in warm weather, while jackets and sweaters will be on demand on cold season.
The company also chooses to use the direct marketing channel where their products will be sold directly to the consumers without the intermediaries (Kurtz, 87). This will help to reduce the operating cost and hence reach the customers at lower-priced products.
Promotion
The promotional campaign of Silk Clothing Company will be based on the following promotional objectives:
- Fashion & Preserve Image for Brand.
- Develop and increase customer awareness about the products
- Provide brief and conscience information and description about the brand
- Create enhanced customer attitude and beliefs about the brand
The personal selling will be used as a core promotional mix of the company where the sellers will be required to promote the company’s product through appearance, specialist product knowledge and attitude. This will enable them to encourage and inform the potential customers to buy and try the products.
Chapter Five
Conclusion
The marketing plan used by Silk Clothing Company is one of the best and will no doubt help the company meet its goals and objectives. Its marketing mix offers a unique advantage that helps to effectively compete with other competitors in the highly competitive industry. However, it should consider expanding its markets further so as to build a strong customer base as well as increasing its sales revenues. Additionally, it should consider on concentrating more on a few products whose demand is very higher and avoid investing in activities that will compromise its profitability.
Work cited
Kurtz, Dave. Contemporary Marketing Mason, OH: South-Western Cengage Learning. 2010. Print.
