Blue Ocean Strategy and Newman Apparel

This assignment requires a comprehensive analysis of Newman Apparel's marketing strategy through the lens of Blue Ocean Strategy. Students must identify the company's current position in the market, analyze its strengths, weaknesses, opportunities, and threats (SWOT), and propose potential strategies for creating uncontested market space and achieving sustainable competitive advantage using the Blue Ocean Strategy framework.

Running head: STRATEGIC MARKETING
Strategic Marketing
Management

STRATEGIC MARKETING 1
Table of Contents
Executive summary.....................................................................................................................................3
Introduction.................................................................................................................................................3
Marketing Analysis.................................................................................................................................3
SWOT Analysis of Newman Apparels....................................................................................................3
Strength OF Newman Apparel............................................................................................................3
Weaknesses of Newman Apparels.......................................................................................................4
Opportunities of Newman Apparels....................................................................................................4
Threats of Newman Apparels..............................................................................................................4
Implication of Blue ocean strategy..........................................................................................................4
BOS.....................................................................................................................................................4
Value Innovation.................................................................................................................................5
Strategy Canvas of Newman Apparel......................................................................................................6
ERRC Grid for Newman Apparel- Eliminate, Reduce, Raise, Create......................................................6
Eliminate.............................................................................................................................................7
Reduce.................................................................................................................................................7
Raise....................................................................................................................................................7
Create..................................................................................................................................................7
Marketing and Company resources for the value innovation...................................................................7
Company Resources............................................................................................................................7
Marketing Resources...........................................................................................................................8
Positioning Strategy for Newman Apparel..............................................................................................8
Marketing Mix.........................................................................................................................................9
Product................................................................................................................................................9
Price.....................................................................................................................................................9
Place....................................................................................................................................................9
Promotion............................................................................................................................................9
Strategic Marketing implementation and control.....................................................................................9
Implementation....................................................................................................................................9
Control...............................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

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Executive summary
Report is about strategic marketing of Newman Apparel situated in Wellington, New Zealand. It
is an independent online shopping website. The report will involve salient aspects of the market
analysis on the Newman Apparel offerings, strategic implications of adopting Blue Ocean
Strategy, coordination of marketing and company resources for value innovation, recommended
positioning strategies, recommended marketing mix and implementation and control of strategic
marketing.
Introduction
Strategic marketing is used by the organization to make a plan for reaching the customers and to
satisfy the needs of the customer while increasing efficiency and viability of the organization.
Basically organization create strategic marketing plan in written which will direct the type of
program of marketing is to be used for particular situation and implementation of the programs.
Strategic marketing also help business in becoming innovative and to know how to cover the
market (Freeman, 2010).
Newman Apparel is a website of online shopping and established in Wellington, New Zealand
and was founded in the year of 2016. The founder of Newman Apparel is Justin Newman. It is
solely in the business of selling gym ware at the lowest price and provide best quality products
(Newman Apparel. 2017). It offers free delivery of the cloths over New Zealand. It has its
business only in New Zealand with single office. It faces huge competition from other shopping
websites.
Marketing Analysis
A marketing analysis is a valuation that permits you to determine how appropriate a specific
market is for the business. Marketing analysis is used to evaluate the present market or search
new market (Pestle analysis. 2015). The factor of marketing analysis is SWOT analysis in which
we identify businesses strength, weaknesses, opportunities and threats (Tech Target. 2017).
SWOT Analysis of Newman Apparels
Strength OF Newman Apparel
Customer segment: People of New Zealand prefer going gym and want themselves to be fit. So,
it is a market for the companies providing products related to fitness. Therefore, Newman
Apparels have three segments such as people going to the gym regularly, first-timers and people

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who are health-conscious. The given three segments involve the use of same type of product that
is why it is a strength for Newman Apparels and can concentrate on these segment.
Prices of the product- Newman Apparels charge less prices for their offerings with qualitative
products as compared to its competitors. Even Newman Apparels do not charge any amount for
delivery of the products over New Zealand. Newman Apparels is situated in Wellington of New
Zealand, therefore it is very convenient for the people live near Wellington to access their
services.
Weaknesses of Newman Apparels
Customer base- Customer base of the Newman Apparels is very less as many customers buy the
products only one time and do not come back. To maintain the good relations with the customers
is very important for the business to survive. In the case of Newman Apparel it seems to be
missing as customer loyalty is also missing and it is a weakness of Newman Apparel.
Opportunities of Newman Apparels
Increase market share- Newman Apparel deliver their product very easily only in and around
Wellington, they should make their process smooth for delivering their product in other places.
In addition to this they should start delivering their product internationally to increase their
market share.
Threats of Newman Apparels
Resources- Newman Apparels should hire more staff members as less members cannot handle
the work future because of their expansion. They should also implement better technology and
should order new computers which will increase the speed of processing.
Implication of Blue ocean strategy
BOS- Blue ocean strategy is a set of strategic methodologies, tools and principles that provide
assistance to the business in generating an increase in value and profit by observing outside the
boundaries of outdated competitive strategy. It provide a thought to them who work in the
planning of marketing and strategies to look outside the existing demand, recreate the
marketplace and make relevant competition (Kim & Mauborgne, 2014). Value Innovation,
strategy canvas and ERRC grid are known as the key principle and tools of Blue Ocean strategy.

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Source [https://deams.units.it/sites/deams.units.it/files/VALUE%20INNOVATION.pdf]
Value Innovation- Value innovation is the keystone of Blue Ocean strategy. Its main focus is that
business should give equal importance to innovation and value. If business will only focus on
creating the value of product and services without innovation then the value may increase for the
customers but it will not show anything different or will not have a successful position in the
market. Innovation only is frequently advanced and technology determined. Generally it fails to
encounter the value wants and needs of the customer’s for which they are ready to pay. It totally
avoids them. Innovation for innovation’s sake. Therefore, it is very important to have an
innovation that involve value for the success of the product or business (Lv, 2017).

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Strategy Canvas of Newman Apparel
Strategic Canvas- A strategy canvas is both an action and investigative framework for
constructing a convincing strategy of Blue Ocean. It captures the present position of the business
in the market space. This helps to analyze the investing strategy of the competitors, factors to be
considered in the product, service and delivery for the competition and what are the offerings for
the customer’s in the existing market. The horizontal axis represents the series of aspects the
business participates or invests in. The vertical axis represents the level of offers that buyer
obtains through all these key challenging factors (Tracogna, 2017). The value curve then delivers
a graphic illustration of a performance of company across business competition factors.
Value Curve- It is a tool used to make a graphical illustration of the market place of the business
covered by present assistances in the market. The tool is used to determine gainful and vacant
places (Birajdar & Mankar, 2017). Steps that are involved in this-
Step 1: Define the key aspects of price and performance.
Step 2. Plan existing offerings.
Step 3. Make value-adding adjustments to match hidden demand to vacant places.
ERRC Grid for Newman Apparel- Eliminate, Reduce, Raise, Create
Eliminate Reduce
Factors of Competitive market Local market strategy

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Raise Create
Product line Advertisement
Expand variety of product
The ERRC grid is a tool that help new business or any company to recognize the new
opportunities in the market, services or product or a model of business to distinguish it from the
competition. It assists in classifying the elements on which a company work on to stand out in
the market (Alamoudi & Alandijany, 2017).
Eliminate- The factors must be eliminated those are not adding value besides the company has
worked on lot on it to compete (Kim, 2016). Newman Apparels is not so much famous in the
market as it has started operating in 2016 year. Thus, it faces huge competition from the
shopping websites that already exist in the market. Therefore, Newman Apparel should focus on
eliminating those factors that arise in the competitive market.
Reduce- Factors that involve huge cost for maintaining them and are just giving little profit to the
business must be reduced (Gander, 2017). Local market strategies must be reduced by the
Newman Apparel if it is not increasing their market and finally the business profit will not
increase.
Raise- The factors that can add value to the existing customers should be raised in the business
(Egypt Innovate. 2015). Newman Apparel should not only focus on gym wears they can sell
other type of wear or can add a footwear option.
Create- New factors should be created that were not added before and can add value and can
attract the customers (Ng, Lau & Ismail, 2014). Newman Apparel should do attractive
advertisement to attract customers and to make their business famous. Along with this they
should expand their product line and can provide variety of products.
Marketing and Company resources for the value innovation
Company Resources- Financial resources and human resources are included in company’s
resources. For utilizing the opportunity of the business, it is very essential to manage the
resources of the company (Chuang & Lin, 2017). In the matter of Newman Apparels, business
should manage the human and financial resources properly. They should focus on providing

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quality of gym product so that health conscious people can be attracted for this they need an idea
that is innovative for improving the feature of their product. This can be achieved by properly
managing the financial and human resources. Thus, strong human resource is needed for
promoting the product through social media.
Marketing Resources
Resources of marketing are energy, expertise, money and time. These four resources are very
important for business to bring the product into the market by using the opportunities (Sok, &
Miles, 2016). In the matter of Newman Apparels, to grasp the international market opportunities
they need lot of money to invest. Thus, money is said to be the major element for the business to
hire the expertise and workforce. Though, Newman Apparel is an online based shopping website
therefore, they need expertise staff with technical and non-technical skills for marketing their
product.
For creating attractive advertisement and promoting the product to increase the number of
customers business need talented marketing executives. Technical experts should be involved
and operate the whole online marketing. Another important element of marketing is Time. For
increasing the market share of the business in the international market Newman Apparel have to
give more time to its business plan and its development. On the other side, business should give
more time in the research of market for understanding the different market needs. If Newman
Apparel want to expand their business in the international market they require an effective
marketing plan, which will time more time. Energy means the ability of a business to convey
their marketing operation.
Positioning Strategy for Newman Apparel
Newman Apparel should start delivering their products outside New Zealand so that other people
can also know about their business and can get famous. Besides this, Newman Apparel have
small office in Wellington in its Upper Hutt, they should focus on extending their business as
well as their offices in other countries. Other than this, Newman Apparel faces huge competition
from the shopping websites already existing in the market with variety of products online. Thus,
to surviving in the competitive market they should offer variety of products instead on selling
only gym wear. Further, for the development of the business and to make business famous with
increasing its profit they need to make attractive advertisements.

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Marketing Mix
The marketing mix known as the set of tactics, strategies and actions used by a business for
promoting its product in the market. The Marketing mix involve 4Ps i.e. Product, Price, Place
and Promotion (The Economic Times. 2017).
Product- Product is the item sold by the business (Patil & Bach, 2017). Newman Apparel should
provide good quality of wears they are selling and that should deliver minimum level of
performance. If it will not be done then the other strong efforts will not make any sense.
Price- Price is the amount which is decided for a product while placing it for sale in the market
or website. It is depend on the production cost, ability of the customer to pay, demand and supply
of the product. Newman Apparel provide their gym wear at low cost that makes their clothes
affordable of all the customers with best quality.
Place- Place means the point where business sell its products. The main aim of place strategy is
to catch the attention of the customers and make easy for the customer to come and buy it (Fan,
Lau & Zhao, 2015). Newman Apparel sell their products online as it is online based shopping
website. Thus, it makes easy for the customer to buy as in today’s scenario most of the public is
technology centric and feel comfortable in online shopping. Further, Newman Apparel should
deliver their product outside the boundary of New Zealand.
Promotion- Promotion involve all the activities that are important for placing the product in the
market and known to the user (Huang & Sarigöllü, (2014). Newman Apparel should promote
their product with attractive advertisement to make their business famous and to increase their
profit and customer base.
Strategic Marketing implementation and control
Implementation
In the process of strategic marketing implementation phase business should concentrate and
make sure that the use of all the business resources such as human, capital and marketing should
be efficient. Assortment of the strategy has an important influence on the preceding working of
the company, since its administrative structure need to be flexible to strategy. Effectiveness of
the Strategic marketing is mostly depends on the executive leadership level of involvement in the
marketing task implementation (West, Ford & Ibrahim, 2015). Behavior, attitude and skills of

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the staff are the factors considered very important for the implementation of the strategic
marketing.
Factors on which quality of management depends are-
 Involvement of the top management in the process of planning. It is important for the
business for smooth functioning of the business and for its success.
 It is very important to have a good coordination between the different units of the
business or organization.
 The flow of communication must be smooth and information should transfer vertical and
horizontal way.
 The selection of the personnel in the business should be done properly as they are the
resource of the business. Besides this, training and evaluation process of the staff should
be effective.
 Resources of the organization such as methods of management, building of the business,
IT system must be managed properly.
 The incentive plans of the business must be attractive that can motivate the employees of
the business to work hard and give their best in achieving the objectives of the business.
 The relation between the different units of the business should be effective which that are
part of the organizational structure.
Control
Control is another important aspect of the process of Strategic Marketing. The important points
of the control phase are-
Indicators value- Value indicators must be set properly as they observe and measure the
performance of the business and even control its performance. For example- Stock rotation,
market share and sales volume.
Tolerance range- The control phase also depends on defining the tolerance ranges from
scheduled standards.
Measurement- Value indicators such as stock rotation, market share and sales volume must be
measured.

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Comparison- Comparison of scheduled standards, to define deviations and provide clarification
of their roots.
Eliminate the deviations- Preparation of applications to remove the identified deviations or
modification of values of indicators.
Conclusion
This report is based on the strategic marketing plan of Newman Apparels of New Zealand. It is
an online based shopping website that sells only gym wears. Strategic marketing is created for
reaching the customers and to increase the market share of the business. Marketing analysis has
been done to identify the Strength, weaknesses, opportunities and threat of the Newman Apparel.
Further, Blue Ocean Strategy and its tools such as value innovation, strategic canvas and ERRC
grid is explained in this report as it provide assistance to business and will help Newman Apparel
to increase their business. Marketing and company resources will help Newman Apparel for its
success. In addition to this, marketing mix shows that Newman Apparel should focus on
promoting their products and increasing the market share by delivering their product outside
New Zealand. Therefore, Implementation and control of strategic marketing should involve the
participation of all the unit of the business as it will lead to the development of the Newman
Apparel business.

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