Abstract: 2
Product 3
Place 4
Price 4
Promotion 5
Social media 5
Televised communication 6
Personal selling 6
SWOT Analyses 6
Threats 7
Findings 7
Challenges 8
Opportunities 9
Recommendations: 9
Conclusion 11
Last US bag 14
Abstract:
The Last US Bag company is a leading company which provide its consumers customized products and services and it is the main promotional strategy of the company. The market mix explains that the company is strong in its products and are able to cover maximum areas for its supply chain. There are explanations about the company’s SWOT analysis and recommendations from which the company can enhance its performance. The company is renowned for its pricing strategy as it offers the lowest rate to clients which make the brand more popular. However, the textile based company which provide product induction from design hold up to prototyping, small shipment manufacturing in big volume sourcing. The business develops collection of market bags along with designer ones. The focal point of this reading is on the organization’s fashionable bag manufactured goods line exploring its marketing mix and how the same could be enhanced.
Introduction
The Last US Bag Company is one of the leading handbag manufacturers in the United States of America. It is a textile based production company. LUSB provides product inauguration from design support to prototyping, smaller consignment manufacturing to large volume sourcing. The organization develops mass market bags as well as designer ones. The focus of this study is on the organization’s designer bag product line exploring its current marketing mix and how the same could be improved. Recommendations will thus be provided at the end of the study. The study will largely be based on primary data, although product trends will also be identified within the industry through utilizing cost effective and LEAN principles. The company is prepared to handle quality assurance, development, sampling and pattern making plans along with production capabilities in sew and cut facilities offshore and domestically. Thus, the success of any organization selling its products is dependent on its efficacy in the development of the marketing mix, under which the company continues to bring elucidations to many industries, including design markets, retail industries, military and medical (Aaker, and George 71)
Marketing mix
The marketing mix is defined as a set of actions and tactics that an organization utilizes in promoting its brand within the market. The mix comprises of the product, price, promotion as well as the place (Aaker, and George 48)
Product
The product refers to the item or service from which customer derives value from after purchasing the product. In this particular case, Last Us Bag Company should establish a production unit where it will be producing designer bags. Often, women prefer outstanding dressing and apparel. By giving them an opportunity to decide a unique design for their bags, their willingness to purchase goods is enhanced. The bags will be developed with materials proposed by customers, although the organization will ensure that the production process remains feasible. This feasibility is enhanced by the high demand for customized products in the market (Blick, 101).
The three categories of products are Industrial & Tools Bags, under which come the rugged industrialized bags which help the companies to lift their carriers like, heavy construction, oil & gas, wind power and many more. The design is so convenient for consumers that the designers take into account that they build comprehensive life products for use which are not eco-friendly. These custom bags are crucial for the company as the product is designed to build solution for tool management, heavy lifts and asset management.
The next category of product is Cut & Sew products, under which the company provides services in the Pacific Northwest and offers complete cut and sew products in commercial, industrial, retails and medical applications.
The last product is handbags, bags and case production, which is also customized services to consumers in the United States. The pattern makers will design as the consumer demand for resale in the industrial, wholesale, storefront and retail categories. All the three are essential and crucial to the company’s success.
Product Life Cycle
The product life cycle chart below will illustrate the company’s current position in the baggage market. The current position shows that Last Us Bags has the option to opt for three positioning strategies- one is reverse positioning which will give the company chance to strip away its sacred products and add new products; the second one is breakaway positioning under which the company can associate its products with a radical distinguished category and the last one is the stealth positioning which give the company an option to attract leery customers to a novel providing by cloaking the good’s true and fair nature. Thus, Last US bag needs to alter between these strategies in order to take advantage of the product’s competitive atmosphere (Moon, 2005).
Source: Moon, (2005).
Place
This refers to the location where the product will be presented as well as the distribution channels to be employed. In this case, it will be important that the organization developed customized selling and ordering facilities in the United States. This process will ensure that the organization does not end up losing its competitive advantage of developing unique products. If the distribution process is to be outsourced to third parties, such individuals may not be in a position to deliver the same product promise as the organization (Aaker, and George 92)
Price
The organization will adopt differential pricing. Such a strategy will be dependent on the extent to which the development of the customized bags will use raw materials. It will also be dependent on the extent to which the organization will use labor. Nevertheless, the organization will ensure that the products are as affordable as possible. It will a sign only 10% profit margin on the cost of production, ensuring that as much as it will be developing quality products for its customers, such products are also affordable (Blick, 88).
Last US bag needs to understand that the U.S. market continues togrow in handbags and accessories sector, but as an individual retailer, the market growth rate is slower as 2015 record shows that the segment was expected to grow to 11.7 billion dollars (3%). The United States of America market for textiles is rebounding and due to differential pricing strategy, the company is able to expand its venture and capabilities to provide robust production solutions.
The differential pricing strategy has enabled the company to be more responsive, fast and over & above highly competitive. This pricing strategy offers a certain number of consumers to pay less for similar products than others. The strategy’s main agenda is avoiding conflicts or unfair treatments by those,whoare not be eligible for discounts. LUSB provides small orders and work on prototypes by rapidly changing its product lines.
The company is able to follow these pricing strategies as the company purchase materials in bulk from foreign and US suppliers. The company has also added additional service of free shipping to client’s locations as it is presenting itself as the lowest cost company solution of textiles in sewn cases and bags.
This differential strategy has benefited the company in expanding its consumer base, whereas lowest prices are crucial elements to make the business more efficient and attractive to target groups. LUSB sales are increasing because of enhanced consumer base. The differential pricing also includes strategies, such as rebates, sales or coupons, whereas to attract the new consumers, the company also utilizes initial discount, which give chances to consumers to continue buying their products at full price also, where there is no such offers.
Promotion
Social media
There are three key approaches that the organization will use in promotion of the product. In promotion of the unique customized designer bags, the organization will rely heavily on the social media. It is by sharing images of their unique bags on the social media between friends and family members that brand awareness will be enhanced. The organization will also enjoy a high level of referrals.
Social media will help the company to enhance its range and make it cost effective for consumers. It also assists in reaching international and wide audience, especially in countries where companies take long time to increase their presence. Such as: LUSB will encompass to shun print and box publicity to contemplate on construction a digital presence.
Coach, which is the luxury goods produceris also usingthe internet to increase sales. LUSB also needs to accelerate its involvement in social media sites, for example: SinaWeibo, Pininterest, Instagram, Twitter and Facebook in order to generate excitement about brands, ensure band announcements and reach to the maximum consumer demographics. Thus, the company also understands that it requires to plan transformation to make its product reach to the maximum audience. (Zarrella, 2010)
Televised communication
Televised communication will also be carried out (Blick, 92) through televised communication the organization will be able to create awareness of its products in the market. Through the use of televised communication, the organization will be in a position to reach a higher number of customers. Moreover, the consumers also get to know that the company offer customized bags as per their convenience and requirements. Television communication is considered to be strongest promotional technique which is available to the maximum number of the people.
Personal selling
In promotion of the organization’s products, the organization will use personal selling in promotion of the product. Through personal selling, the organization will be in a position to communicate, to convince consumers on the superiority of its products with clear demonstrations.Here, the company is famous for personal selling as it provides customized service to clients. The clientswho want to order their products can call the company’s agents to their place and explain their requirements. This strategy makes the company know more about different clientage requirements (Zarrella,2010)
SWOT Analyses
Strengths
The organization enjoys a strong brand. The brand is well known and customers are very aware of the existence of the product in the market. This strength makes the brand a top of mind brand among the customers. The organization is also equally financially stable
Weaknesses
The brand lacks high variety of its products. Equally, consumers have the feeling that the brand does not meet their unique needs. This indicates a need for the organization to match product quality with the needs of its clients. It is important to make clients develop the feeling that they are realizing value from the products that they receive from the company. The company needs to work on consumer segment and analyze that through which trends it can increase its consumer turnover ratio(The Last U.S. Company, 2017)
Opportunities
The demand of bags, especially among women has been on the rise. As a result, such individuals are in a position to exploit these opportunities. At the same time, the organization will enjoy the increased demand for designer clothes and apparel. In the market, it will also be important that the organization exploit increased economic performance In US. This will increase the feasibility of such markets
Threats
The organization is faced with stiff competition. This has led to potential customers who would have purchased goods from the organization preferring the purchase of such products from competing firms. Equally, the organization will be dealing with diverse raw material types if it is to meet the customized needs in its operations. The complete US market pricing is moving downward in the case of handbags. Thus, even luxury brands are expanding their wings and offering attractive offers and discounts to their clients.
Findings
From the survey, it was evident that many people would offer to purchase designer and customized clothing as opposed to the mass products. Many ladies want uniquenessto wear and hence the target market is viable. Nevertheless, with the demands that they were putting in regards to design, it was clear that the venture would also come with a high level of costs. It is often difficult to enjoy economies of scale when it comes to the production of such products. This challenge emerges since there is no one product that resembles the other in the production process. Nevertheless, in overall the study indicated that the venture is viable. Here, the company is under pressure to produce unique and different products but on the other side, also adopt the economies of scale in order to provide cost effective pricing to consumers.
Challenges
Last Us Bag Company is faced with some challenges as identified in the primary research. In regards to its price, the organization sells its products at significantly higher prices as compared to that of competing firms in the market. This high price has kept off many of its customers who would have preferred buying affordable products. This process will significantly boost the demand for its products. It is likely to attract a wider market share through reduced prices.The only attraction of lower prices is not the solution as other competitors also start this strategy and will impact company’s performance drastically(Zarrella, 2010)
The next challenge facing the organization is that of low product promotion. The organization has adopted aggressive marketing strategies in the promotion of its products. In spite of this, it seems to have assumed that the level of its market awareness is enough, investing less in promotions. Low promotion is a challenge to the organization as there is a high number of new customers that it needs to make aware of its products. As indicated above, the organization will significantly boost its performance in the industry if it is to invest more in promotions. The company’s current promotional strategy is not working that efficientlywhich it should be, because of which the sales are not increasing much.
The third challenge faced by the organization is competition. Competing firms have products with competing features to those of Last Us Bag Company’s products. There is thus a need for the organization to assess ways through which it can make its products sustainable in the market, amidst the current level of competition. Now, even luxury brands are offering low prices in order to make the consumer’s satisfied. This trend has pressurized LUSB to offer better services and products to consumers. (Aaker and George 45)
Opportunities
In regards to products, the organization has the potential of developing unique bags within the market. This process will increase its ability to serve customers
The second opportunity that the organization faces in the market is increased sales through the cutting of prices. The demand for designer bags have increased as both males and females become trendy. The organization is thus likely to make huge sales volume if it is to position its operations in the right manner.
While the demand for bags is on the rise generally, there is a unique demand for apparel within the market.The term is simply used in economics that once the demand of the consumers is met, then increase in demand will force the company to increase supply. This unique opportunity will increase its sales volume if well exploited. By meeting demand in the market, the organization will significantly boost its overall level of profitability. Nevertheless, this will only be realized if its products are affordable. This approach will significantly enhance its overall level of performance in the market. Once the performance of the company is increased, the motive to attract maximum number of consumers will be fulfilled. (Apple inc. 25)
Recommendations:
Based in Vancouver, the company is considered to be the vertically integrated supplier of sewn products, webbing, bags, carrying cases, sewn goods, textile products and soft goods. The company is a producer which serves to technical, military, dental, retail and medical markets as 100% Asian and US production source manufacturer. The company has tremendous space around 35,000 square feet in the northwestfor manufacturing. Thus, it recommended to the company to provide for more effective cost strategies which will make the company offer the lowest priced products.
This process will make such product more affordable to the general population. Increased affordability will end up raising the overall level of profit that the organization realizes from the market (Kotler, 48). The need for hand bags cuts across the social, economic divide. Both poor and rich have the need for mobile phones. As a result, the organization may develop a wide range of products that are priced differently. The poor and the rich would then afford its products, as there will be a wide product price range. Consumer needs will thus be met, and the organization will end up having a competitive edge in the market as compared to other competing firms
The second recommendation to the organization is that it should intensify product promotion activities. As much as the consumers are aware of its brand in the market, there is a need for increased social media marketing communications. This approach will play a significant role in increasing the overall level of demand for its products within the market. In implementing this recommendation, social media presence will be enhanced. In particular, advertisements will be made through Facebook and Twitter. The product images will be shared online, increasing awareness of such products among customers, and increasing the chances of the organization to make the higher level of sales. In social media, the company can advertise that it has constructed three models which will be fully beneficial for consumers, such as 100% USA made products which provide strong quality control measures and fast deliveries.The second model will be hybrid builds and the last one is import production.
The third recommendation to the organization is for it to increase its product lines. These products will give its clients a wider range from where they can choose products. The ability of the organization in meeting customer needs. The organization needs to adopt more customized products in the market. (Blick, 87)The company needs to work more on its value pricing as there are other luxury brands also which are shifting their concept from higher price to consumer preferences.LUSB needs to analyzeconsumer demand in detail in order to know that to which segment the increase in product line will be fruitful. Should the company move toselling totes and other large-medium bags or it should offer the numerous creative and simple cross body purses and clutches?
The last recommendation will be that the company can move for large logos in its products which will make the target audience receive more whimisical and colorful products. These logos will increase awareness regarding products, moreover, even new consumers will be added due to increasing preferences among LUSB of accessories and products without logos and labels.
Conclusion
The Last U.S. Bag company is fully dedicated to serve its soft products market by providing low to high production volume, prototyping and efficient design. It was analyzed that the company is properly using cost effective and LEAN principles in its ventures as a method in order to deliver the best elucidation to numerous industries like design, industrial, retail, military and medical industry. Thus, from this study, it is evident that primary research is a key tool for data collection. It facilitates the collection of relevant information regarding the phenomena under study. In this study, adopting the above recommendations will boost the performance of the Last Us Bag Company. From the data collected, the organization needs to cut prices and invest more in the creation of brand awareness. By increasing its product line, it will also be in a position to meet the needs of customers in a better manner. Moreover, intensifying its social media marketing will significantly boost brand awareness. Increased brand awareness will raise the level of profitability of the organization within the industry. By introducing designer bags in its product offerings, the organization will also be in a position to meet the needs of its customers in the industry.
Presently, LUSB company is continuing advances in textile design and custom sewn, both internationally and domestically. After adopting all the recommendations and suggestions, the company will be able to lead business more efficiently as the vertically oriented production company through its effective R&D in products to increase large volume production. The company will be able to ensure that it is providing well designed and economical solution to consumers in this highly consumer preferred industry worldwide. The company staffs are also working hard and have an experience of more than 60 years in this textile area and are able to deliver an unparalleled drive for professional and perfection growth.
Moreover, the company can take advantage ofits know-how to assist consumers in delivering a better and long term solution for their requirements. At last, the company has international market reach related to products, whereas the company’s soft products capitals are basically from Asia due to which the company is able to serve lower prices and generate higher volume of production. Therefore, the company performance can be easily increased if the company is able to make its products best fit as per consumer’s preferences.
Works Cited
Aaker, David, and George Day. Marketing Research. New York: Wiley, 2015. Print.
Apple Inc. Annual report, 2016. Retrieved from http://investor.apple.com/financials.cfm
Blick, Dee. The Ultimate Small Business Marketing Book. Surrey: Filament Publishing, 2013. Print.
Kotler, Philip. Marketing Management. Upper Saddle River, N.J: Prentice Hall, 2000. Print.
Moon, Y. (2005) Break Free from the Porduct Life Cycle. Harvard Business Review. Retrieved on 12th Janurary, 2017 from <https://hbr.org/2005/05/break-free-from-the-product-life-cycle>
The Last U.S. Company. About Us. 2017. 9th Janurary, 2017
<http://webcache.googleusercontent.com/search?q=cache:http://promos.lastusbag.com/&gws_rd=cr&ei=nEBzWIbgGcr_vgSQjZjYCg>
Zarrella, Dan. The Social Media Marketing Book. Beijing: O'Reilly, 2010. Internet resource.
Appendix Questionnaire
Questionnaire
: https://www.surveymonkey.com/create/?sm=5CmS5a7PswS81vLcJyRJXfgu1rYIZZrJiBWCUvYxQKY_3D#
1.How much are you willing to spend on Last us bag ($)
A 0-50
B 50-100
C100-150
D150-400
3.Design of the bags should
A be improved
B are adequate
C should be more creative
D should be customized
4.How often do you prefer purchasing Last us bag
A often
B some times
C rarely
D never
5.How much do you like the Last us Bag
A very much
B slightly
C never interest on it
D rarely
6.Are you aware that Last us bag exists
A Yes
B no
C Never heard of it
D I am used to the brand
7.How do you rate the quality of our products
A excellent
B Good
C poor
D Needs improvement
8.Is the bag size the right one
A Too big
B too small
C convenient
D needs to be changed
9..How often do you buy goods online
A very often
B some times
C rarely
D never
10.Are there Last US bag sold near your location
A yes
B it’s far from location
C have never bothered to check
D none
11.Are there Last US bag sold near your location
A yes
B its far from location
C have never bothered to check
D none
12.Would you prefer a designer bag as compared to the one sold by Last us bag
A yes
B somehow
C not really
D no
13.Cost of material
A the bag is affordable
B the bag is too expensive for me
C the bag is too cheap
D The p[rice suits my needs
14.Attractiveness of the bag
A The bag is attractive
B The design of the bags needs to be changed
C it suits my needs
D Not attractive
In a scale of one to four, how do you rate our products with one being the least attractive and four being the most attractive
A 1
B 2
C 3
D 4
