This marketing report outlines Alligator's plan to launch a new Golf apparel line called Golf. Golf will provide comfort and latest technology for golfers. The goal is to increase Alligator's market share by 15% over 3 years and capture a new segment of 9 million potential customers. Promotional strategies include online, mobile, broadcast and personal selling advertising targeting both current customers aged 25+ and younger consumers aged 15+. Product strategies center around ergonomic design, function and luxury positioning of the new Golf line.
3. 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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4. Table of Content
1. Company Background and Company Mission Page 4
2. Environmental Analysis 4
2.1 Micro Analysis 4
2.2 Macro Analysis 6
2.3 SWOT Analysis 8
3. Situational Analysis 10
4. Promotional Strategy 11
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5. Company Background
Founded 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 Analysis
This analysis aims to provide a thorough understanding of Alligator’s internal and external
environment, through which key opportunities and threats can be drawn.
2.1 Micro Environment
Using Porter’s Five Forces framework, we analyze the attractiveness of the apparel industry.
2.1.1 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.
2.1.2 Barrier of Entry
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6. 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.
2.1.3 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.
2.1.4 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.
2.1.5 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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7. 2.2 Macro Environment
In order for Alligator to effectively strategize our business, it is essential to use the PESTAL
framework to analyze the macro-environment.
2.2.1 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.
2.2.2 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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8. 2.2.3 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.
2.2.4 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.
2.2.5 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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9. 2.2.6 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.
2.3 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.
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10. Threats
• 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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11. 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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12. 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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13. 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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14. 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 Strategy
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15. 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
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16. 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.
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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17. 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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18. 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/acti
on/displayFulltext?type=1&fid=216393&jid=JAR&volumeId=44&issueId=01&aid=216391l
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