Marketing ReportAlligatorGolf

Prepared by: Low Yin Ling (S8013279D)

PDIP4

Prepared for: Sharon Tan

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Executive Summary

The following marketing plan forms the basis for the launch of a new series of Golf apparel, Golf,

developed by Alligator. The analysis outlines the best strategies to follow for the achievement of the

company’s strategic goals.

Golf will be marketed as the latest technology development by Alligator, providing ultimate comfort for

golfers in style. The successful launch of Golf will bring about a bigger market segment of an estimation

9 million people, with a forecasted sales growth prospect of 15% over the next 3 years. Market shares

are expected in increase, carrying Alligator to a higher spot in the industry as a reputable market leader.

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Table of Content

1. Company Background and Company Mission Page 4

2. Environmental Analysis 42.1 Micro Analysis 42.2 Macro Analysis 62.3 SWOT Analysis 8

3. Situational Analysis 10

4. Promotional Strategy 11

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Company BackgroundFounded in 1987 by Dr Williams Jones, Alligator is a leading apparel company selling high-end products ranging from sports attire, casual wear, footwear, watches, eyewear and leather goods. In recent years, a series of perfume, and sport accessories have been launched successfully.

1.1 Company Mission With expectation for sales and market share to increase with the approaching holiday seasons, Alligator has designed a new series of apparels for golfers. The launch of this series is planned for in November 2011. Having successfully fostering brand-loyalty in consumer, Alligator now face a heavily concentration of retained consumer and is unable to capture the attention of new and younger consumer market.

Alligator targets to increase market share and to capture and penetrate into the consumer market of younger generation.

2. Environment AnalysisThis analysis aims to provide a thorough understanding of Alligator’s internal and external environment, through which key opportunities and threats can be drawn.

1.1 Micro EnvironmentUsing Porter’s Five Forces framework, we analyze the attractiveness of the apparel industry.

1.1.1 Competitive Rivalry

Alligator faces stiff competition from other leading brands such as Tommy Hilfiger, Armani and

particularly, Polo Ralph Lauren who will has been in partnership with U.S. Olympic to outfit the

U.S. Olympic Team since 2008 (Cited http://en.wikipedia.org/wiki/Polo_Ralph_Lauren, 10

December 2010). This has successfully positioned Polo Ralph Lauren as a global brand.

Alligator has to plan strategically to prevent losing our market share.

1.1.2 Barrier of Entry

With other fashion leading brand constantly expanding their products and market, Alligator has

to react aggressively to such entrants by having more promotions and marketing our brand to

more markets.

Alligator will also need to deter counterfeits which poses as a constant threat to our branding and

reputation.

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1.1.3 Threat of Substitutes

Fashion and apparel can be easily substituted by the wide varieties available in the market

worldwide. For example, there are countless of designs and brands available for a simple polo t-

shirt with price ranging from as low as SGD20. Brand loyalty is also reflected by consumer’s

willingness to spend on apparels. As such, Alligator will need to emphasize on our unique design

and fine quality to gain confidence in consumer.

1.1.4 The Power of Buyer

The bargaining power of buyers is high and with the vast variety of brands available, consumer

making brand-switch is easy. With the up-turn in economy and consumer’s spending confidence,

consumers are more willing to spend on luxurious items. Alligator will need to be able to capture

this into the sales record with competitive pricing on all products.

1.1.5 The Power of Suppliers

According to Johnson, Scholes & Whittington (2008, p.61), supplier power is determined by

these factors – concentrated suppliers, high switching costs and supplier competition threat. In

this case, Alligator do not rely on a single supplier. High expectations have been set upon

suppliers and they have to meet a set of vial criteria before engaging in long-term partnership.

With the production plant centralized in China, has given Alligator a good cost advantage.

However, Alligator will need to ensure that labour and political conflict that may arise do not

cause any delay in manufacturing and supplying of goods globally.

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1.2 Macro Environment

In order for Alligator to effectively strategize our business, it is essential to use the PESTAL

framework to analyze the macro-environment.

1.2.1 Political

With the opening of China, the country has been a popular choice for manufacturing industry due

to the low setup cost for production plant. Alligator will have to re-evaluate their strategy and

shift a portion, or even all, of their manufacturing facilities to China. This will allow Alligator to

lower production cost to competitively compete in the price sensitive market. However, this risk

the quality produced and Alligator will need to ensure that product quality is not compromised

and protect our reputation. By producing in a low cost country, the risk of design may also be

leaked out as control could be harder to establish.

The lack of governmental protection may also be an issue for Alligator as China is loaded with

counterfeits, which are sold to other parts of the world. This will erode Alligator’s market share

and brand equity. Also, some countries encourage their citizens to support their local brand

rather than imported brands by imposing high taxes to imported brand in order to protect the

local brand.

1.2.2 Economic

With signs of improvement after the recent recession that has rocked the whole world, consumer

confidence and spending has risen (Cotton Incorporated release, 09 December 2010). Consumers

are expected to spend more on apparel this holiday season, along with the back-to-school

apparel. Apparel will most likely figure prominently in holiday purchase.

However, price will continue to remain as an important factor in purchasing. Consumers will

look out for the best deals comparing quality. As such, Alligator would need to re-strategize their

marketing plans by placing greater emphasis and budget into promoting their value-for-money

product.

Foreign currency risk affects the profit of an organisation. Sales, costs and results of operations

may be materially affected by exchange rate fluctuations. Unable to control this, Alligator can

only manage by ensuring that the cost of raw materials and production are kept low.

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1.2.3 Social

Health and diet are getting prominence among people these days. Besides eating healthy, there is

an increase in individual joining fitness clubs and sports activities, accompanying by an increase

in demand for fitness necessities such as exercise attire and shoes. Alligator is ready to meet

surge in demand for consumer looking for sports apparel.

According to an article on the internet, one interesting aspect of the apparel market is the recent

strong growth in sales of accessories such as handbags and scarves (Cited

http://www.researchandmarkets.com/research/277f41/clothing_footwea, 09 December 2010).

These will ties in with Alligator new launch of golf accessories such as watch and head bands.

Also, in hope to boost sales in this tough economy, retailers are using an increasingly popular

technique which is to launch high-profile clothing lines from high-end designers and celebrities

(Cited http://www.cottoninc.com/pressreleases/?articleID=521, 09 December 2010). Alligator is

now in the midst of collaborating with Kate Spade to launch a series of sports bag and other

accessories.

1.2.4 Technology

Technology today is developing so rapidly that what is considered new and modern today could

be rendered obsolete tomorrow. To keep abreast of technology, Alligator places great emphasis

on continuous R&D development and invested EUR $4.5 billion on development and has over

15,000 employees in R&D which is about 24% of its total employees worldwide.

1.2.5 Environmental

Alligator is fully committed to endorse on the importance of environmental issues and actively

engaged in activities such as Earth Day. Alligator is one of the international brands to support the

“Save Your Logo” campaign initiated by the Global Environment Facility. This project allows

companies or institutions to participate in the preservation of biodiversity on the planet with a

commitment to safeguard and defend the animal that represents their logo

(http://www.saveyourlogo.org/, 10 December 2010).

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1.2.6 Legal

Workplace safety and health is one area that many local governments are concerned about.

Alligator takes the health, safety and well being of their employees seriously, which is vital to

their success. Alligator deployed an Occupational Health and Safety (OHS) unit to be

responsible on all the necessary action plans in regards to health and safety strategy for its global

employees, adhering to the labour requirements of different countries.

1.3 SWOT Analysis

Using this analysis, we summarize the key issues of Alligator’s business environment and

strategic capacity which can be used on future strategic options decision making.

Strengths

Strong and single brand name. Alligator is a renowned fashion label.

Comprehensive range of products covering from outfits to accessories.

Expertise in distribution, strong supply chain management.

Endorsed by celebrities to increase publicity.

Headquarters strategically located in the center of fashion-city.

Weakness

Higher selling price in comparison with competitors.

Lack of in-house marketing expertise. Too reliant on external marketing company.

Undifferentiated products which can be found easily at other brands.

Damaged reputation with the increase of counterfeits.

Limited to metropolitan areas only.

Opportunity

E-commerce/Online shopping which allows more flexibility for customers.

New international market.

As China gets too concentrated with manufacturing plants, new manufacturing countries

such as India is recognized.

Product diversification to distinguish Alligator from competitors.

Threats9

With free-entry to the apparel industry, increasing intensive competition.

Needs to constantly sustain current fashion trends.

Change in consumers’ lifestyle or preferences.

Global diseases, such as SARS, which forces consumer to stay home, reducing sales in

retail outlets.

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3. Situational Analysis

As stated by Duncan, 2003, segmentation and targeting seek to determine who companies want

to reach in order to build brand relationship. Understanding Alligator’s current segmentation will

allow marketing to be efficient and effective by focusing on smaller but profitable segments in

the market.

3.1 Current Consumer Market

Alligator focuses on fostering a long-term relationship with our customer and targets at

consumers aged 25 and above. Consumer from this age group comes with demographic traits of

financially independent with high spending power and increase in disposable income. As such,

they are willing to spend on the finest products priced above average. With the high quality of

product, Alligator appeals to consumer who seeks benefits from our product such as durability,

fashionable and comfort. Customers of Alligator are often heavy-users of our product. From the

benefits that they derived, they will maintain and increase the usage of Alligator’s product.

3.2 Current Target Market

Being a global brand, Alligator is undifferentiated and is found in all major cities and countries.

With such strategy, Alligator is obtainable in all location. The use of mass advertising and

distribution allows Alligator to target at a large group of consumer.

3.3 Current Competitors

Alligator’s top competitors for apparel industry are Polo Ralph Lauren (25.6%) and Tommy

Hilfiger (16.8% of the market). When combined, they represent about 40% of the total market.

Successful in fostering brand loyalty, competitors retains a large portion of the global market.

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4. Promotion Strategy

Targeting to improve Alligator’s market share and sales along with the year-end holiday

celebrations, a series of promotional activities are introduced along with the launch of our new

series of sports attire.

Objectives

To initiate strong awareness about the launch of Alligator’s new Golf shoe and gloves

throughout the country

Appeal to the younger generation market aged 15 and above, increasing our market

shares over our competitors.

Message

The new tagline for Alligator is “Score with Confidence, with Alligator”.

Concepts:

Dressed with the appropriate gear, ranging from outfit to accessories, consumer will be

able to play with comfort and full confidence.

A good spirit in a confidence body.

4.1 Targeted Consumer Market

Teenagers currently spend an estimated $153 billion a year on everything from computers to cars

to clothes (Brand, 2000). Trend conscious teens are very active in utilizing the media and

advertising in seeking out the latest products, services, and fashions (Zollo, 1995) (Cited

http://journals.cambridge.org/action/displayFulltext?

type=1&fid=216393&jid=JAR&volumeId=44&issueId=01&aid=216391, 10 December 2010).

Alligator has been successful in fostering long-term relationship with consumer, which accounts

for a large portion of Alligator’s client portfolio. Tapping early into the market of the younger

generation, Generation Y, which comprises of 25% of the population, will definitely bring about

higher market share and profit. Mostly importantly, cultivating brand loyalty.

With the expansion of targeted consumer market, Alligator aims to increase market share from

the current 23% to 32%.

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4.2 Promotion and Advertising

An article on the internet describes Generation Y as a new person with a young mind that is used

to the fast pace of life. The new generation consumer tagged the CyberGen consumer, who has

grown up in the era of iPhones and Social media networking, is not someone who would take

things lying down. (http://ayushveda.com/blogs/business/consumer-behaviour-traits-of-the-new-

consumer/, 10 December 2010). Caution selection of advertising media is required.

e-Marketing

The Millennial Generation (or Gen Y), like other generations, has been shaped by the events,

leaders, developments and trends of its time. The rise of instant communication technologies

made possible through use of the internet, such as email, texting, and IM and new media used

through websites like YouTube and social networking sites like Facebook, MySpace, and

Twitter, may explain the Millennials' reputation for being somewhat peer-oriented due to easier

facilitation of communication through technology. (Cited

http://en.wikipedia.org/wiki/Generation_Y#cite_note-geny.40work-38, 10 December 2010)

Attractive web site for online purchase

User-friendly and interactive capabilities such as 360 degree of product image, allows

consumer to have full confidence in making purchases online.

Online advertising

Placing online ads, for example Banner ads, Tickers and Skyscrapers, on major websites

such as yahoo.com and google.com. Relatively low in cost, but with high selectivity and

appeal.

Mobile Advertising

Placing advertisements of Alligator on mobile advertising media such as public transports

reinforce the existence of Alligator on consumer.

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Broadcasting

Media broadcasting such as TV and radio commercials are one of the most powerful

advertising tools. Consumers are constantly reminded of the Alligator’s latest products

and promotions.

Advertising in magazines, Elle, Women and Men etc, allows high geographical and

demographic selectivity with credibility and prestige.

Personal Selling

Salespeople are the most important critical to good reputation and sales record. They have been

through meticulous selections and training to provide the best service to consumers. Rigorous

and professional training are provided yearly to ensure that professionalism in all salespeople are

maintained.

Particularly, a group of 15-20 salespeople will go through training to understand all scopes of

fashion related to golf. This includes fashion styling, understand the ergonomic design of all

products etc.

4.3 Product Strategy

The Core

Alligator is the right choice for a confidence individual. Ergonomically designed for

ultimate comfort, trendy and luxurious.

The Actual Product

Full range of attire for Golf players which includes golf shirt and pant, footwear, gloves

and cap, for both male and female.

Branding

Sponsorship and Endorsement

Engage celebrities or star golfers such as Amy Alcott and Tommy Armour to endorse on

Alligator’s new Golf series.

Brand Personality

Advanced material that keeps your body dry and comfortable throughout the whole

game.

Protects your skin from the harmful sun rays.

4.4 Price Strategy14

Consumer Demand

From a consumer’s perspective, value or quality is closely related to price; “the higher the price,

the better the quality”. To be able to implement higher pricing, Alligator has to place into

consideration all the benefits and cost derivable for a consumer.

Product Lifecycle

The product life cycle concept helps marketing managers to plan alternate marketing strategies to

address the challenges that their products are likely to face. It is also useful for monitoring sales

results over time and comparing them to those of products having a similar life cycle. (Cited

http://www.netmba.com/marketing/product/lifecycle/, 10 December 2010)

Alligator has to strategically price and maintain the pricing of all continued products in the long-

run. Adjusting of price too often may reflect negative sales records or defects in the product,

resulting in a decline in reputation.

With excellent promotional mix, Alligator will also have to take full advantage during the

introduction and growth stage where consumers are fully exposed and have been proven a

success.

4.5 Placement Strategy

Retailers

Alligator is sold in all leading departmental stores strategically located in the central of all major

cities. For example, ION Orchard, where all prestigious dining and fashion are centralized,

Takashimaya, renowned departmental shop.

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Selective Distribution

Alligator practices selective distribution where products are matched to suitable resellers. For

example, winter wears are not suitable and will not be distributed to tropical countries such as

Singapore.

Authorized Distribution

For the new Golf series of apparel, authorized distribution has been given to Alligators retail

outlet located at iON Orchard. This will provide a focal point for all golfers to shop with the aid

of professional salespeople trained with Golf-fashion.

4.6 Positioning

In an article published by Jack Trout, he describes positioning as a communication tool to reach

target customers in a crowded marketplace (Cited http://www.quickmba.com/marketing/ries-

trout/positioning/, 10 December 2010).

Alligator, positioned as one of the leader in the apparel industry, seeks to increase and maintain

its market share by constantly exploring new market penetration and opportunities, embracing

new changes to technology etc.

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5. Evaluation/Conclusion

Quarterly review will be implemented to ensure that sales targets are met. Review will include possible improvements to increase sales and service.

Customer feedbacks are collect daily from all retail departments and online shoppers to ensure that the right promotion mix has been implemented and high satisfaction levels are achieved.

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6. References

Marketing: An Introduction, International Edition

Armstrong/Kotler, 7e,

Pearson Prentice Hall

http://www.euromonitor.com/Clothing_And_Footwear_In_The_US

http://lifestylemonitor.cottoninc.com/Supply-Chain-Insights/Japanese-Consumer-10-10/

http://www.chinaapparel.net/news/2004/2004-08-18/5131.shtmhttp://journals.cambridge.org/action/displayFulltext?type=1&fid=216393&jid=JAR&volumeId=44&issueId=01&aid=216391l

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