Singapore Market Entry for 2XU: A Strategic Analysis of STP

This report provides a comprehensive analysis of 2XU's potential market entry into Singapore. It evaluates various market entry strategies, including franchising, partnerships, and direct B2B retailing, considering their respective advantages and disadvantages. The report highlights the strategic importance of understanding the Singaporean market and its customers, particularly focusing on the opportunities within the sports and fitness industry. The analysis incorporates the STP (Segmentation, Targeting, and Positioning) model to identify potential market segments and develop effective marketing strategies. The report concludes by emphasizing the significance of a well-defined positioning strategy to achieve a competitive edge in the Singapore market, particularly through product class and production process differentiation. Desklib offers a wide range of resources, including past papers and solved assignments, to support students in their academic endeavors.

Table of Contents
I. Introduction.............................................................................................................................2
--Market Entry strategy and segmentation.................................................................................2
II.a) Franchising, Partnership, Direct B2B Retailing.................................................................2
II.b) Preferred market entry strategy..........................................................................................4
III. Why Singapore Market/customers.......................................................................................7
III. a) Opportunities................................................................................................................7
IV. Conclusion...........................................................................................................................7
V. References.............................................................................................................................8

Company: 2xU in Singapore
I. Introduction
In the current assessment, there will be discussion over the potential market which 2XU has
in the Singapore market as it is entering into the market. The company has also to decide their
target market and the basic population of consumers which it will target in the market to
render their products. The assessment will discuss the market segmentation of the company,
the products that the company will render, the business model which will be used by the
company in their operations and the positioning strategy of the company will also be
recommended to make sure that the company positions itself having a competitive edge over
others in the market.
--Market Entry strategy and segmentation
- Global market
The Global markets of the organisation selected expended in the country of North Western
Europe, Australia, Nordic, Norway and Sweden outlet
- Growth factors
The foremost growth factor of the organisations notice for the gradual expansion is the ability
to adapt to the changes in technology as well as the implementation of new products offered
that is attracting customers day by day
-Aims
The aim of the organisation is to make proper amendments in human daily life operation to
ensure as safe as well as Healthy lifestyle free from factors related to diseases
II.a) Franchising, Partnership, Direct B2B Retailing
It can be stated that this is a common strategy for a company entering a new market in their
operational strategy. It can be stated that the business organization operating in the same
segment are a target in accordance with their company size and the trade margin. The
company will generally look for company demanding high units of good that will be
beneficial for the company to increase the sale volume to the Singapore market. This will
prove to be significant for the company in order of entering and operating in new market.
B2B is a procedure of business which are affected by various factors which are social,
political, economic and environmental in nature. Such as the social difference and similarities
within two firms can define their relationship and trade in the future the same goes with other
factors. The same goes in case of the strategy used by 2XU there can be various factors which
can affect the operation of the company in relation to another company in the new market

which can be both negative as well as positive in nature. Geographical factors play a huge
role in B2B marketing strategy 2XU has also considered the following it can be said that the
company has focused on retail stores as well as organization which has geographical
advantages and exposure to the local consumers. This will bring high amount of demand for
the company and will increase the sales turnover of the form after its entrance in the market.
It can be said that the B2B which will comprise of all the strong local vendors in the market,
retail outlets and big marketing outlets which will provide proper exposure to the products of
the company. This will create demand for the products in the future ultimately helping the
company to create their own outlets to establish and affect direct B2C business in the
Singapore market. Although in the current situation the company will choose to enter the
B2B market segment as this will be the most suitable and viable marketing strategy which the
company can be used for increasing there consumer in the market. This will ultimately
increase the hold of the company within the market deriving higher of customer for the
company in the future days of its operations.
Franchising
The organisation also needs to consider the objective of franchising to ensure that there is a
rabbit market expansion around the society. With the implementation of Rapid market
expansion, there will be a joining of objectivity and traction where customers will be
attracted to their growing possibility (Andaleeb, 2016). With the utilisation of franchising the
organisation selected that is 2XU. The greater operation of the organisation needs to be well
presented to ensure that their business to business model does not only become unique with
franchising but also gain the understanding of strong brand recognition.
Partnership
Partnering is another strategy that the organisation the 2XU, can utilise because with it there
will be support of other partners while entering into the foreign market around the world. The
arrangement for marketing and core marketing policies could also be easily associated with
the management when there is a partnership going on within the market for the defence of
knowledge, contact and wise customers
Advantage and disadvantage
It can be said that the consumption or demand level of the different company is different in
some companies it can be high or in some companies, it can be low but there will a
significant amount of demand which will financially help the company you enter a new
market like Singapore (Sawhney et al. 2017). There is a narrow limitation in the B2B market
segmentation limits in terms of contractual rights it can be said that business can enter

contract for trade which will limit the and create bind between the two companies for their
future trade.
One of the prime advantages that franchising present to any organisation is the reduction of
risk in business failure. There is a possibility to make a proper step for the establishment in
market share. However, the cost may get higher than the Organisational Management team
may expect and the franchisor may also go out of business that would result in difficulty in
the selling of the franchise in the future prospect
II.b) Preferred market entry strategy
The organisation could eventually use partnership as their format of business strategy but
they would face the risk of this agreement among the partners which would lead to
irresponsibility among them. Where can also be a risk of partners leaving the organisation
which may hamper the general business management operation. However, with the
implementation of partnership, the organisation could be benefited as because there can be
high calibre workers and partners in the organisation providing them with ideas and
objectivity.
STP
Segmentation targeting and positioning are the modern day aspect of marketing which
ensures that an organisation is well equipped with understanding values and thoughts of
development opportunities. The STP model is utilised for making sure there is a creative
marketing plan communicated among the organisation. To deliver a proper format of the
Business plan and a successful business operation in the long run of Organisation (Camilleri,
2018). The focusing of the segmentation factor is actually based on determining the market
segment in characteristics wise. Under the valuation of market targeting, there is the selection
of one or more segments who will be easily lured towards the product and Services within the
organisation. Under the section of product positioning development of marketing mix as well
as the understanding of the product positioning segment for availability is discussed in
descriptive format.
Segmentation
Profile
For understanding the impact of the product that the organisation provides in the society there
is enough knowledge of the views and ideas of the customers present. On considering the
profile segmentation of Singapore Market by the organisation selected, only the people who
are based on sports industry health fitness, as well as gym freak, will be profiled properly

Demographic
On considering the democratic aspect of Singapore, It is seen and observe evidently that there
is a huge market growth for any organisation whoever is willing to invest their business
operation. In accordance to 2017 report total population increased from 5607000 in 2016 to
5613000 in 2017. This certainly clarifies that they grow in the population result in increasing
market opportunity for any organisation willing to provide their support in business operation
(singstat.gov.sg, 2018). It is noticed that the old age ratio has decreased from 5.8 to 5.5 that
suggest that healthy enough among the people around the Singapore community is increasing
day by day (singstat.gov.sg, 2018). The organisation is a sports enthusiast and providing
products related to the sport will be benefited when considering it long-term investment plan
Singapore
Psychographic
The psychographic conditions noticed that the people in Singapore are quite enthusiasts
towards health consciousness and sports. Being health conscious, most of the people are well
aware of the sports department in the society of Singapore
Targeting
The 2XU company is new in the Singapore market and is quite uncertain about the
performance of their products in the market, although there is good demand for Athletic
Garments in the market as due to the emerging athletic young generation in the city. The
market strategy used by the company is business-to-business commerce model. The company
has done already done a great profitable business in origin city but not likely to take the risk
for evolving in a new city. As a business-to-business commerce model is a much safer option
than that of business to commerce model, the company is more likely to choose for Business
to business model of commerce.
In business-to-business model there is the manufacturing company does not deal with the
customers, but the other selling company does, therefore the 2XU company does not require
to deal with the new customers. The company direct sales their product in the other company
which have already set up their retail market in the offline or online market zones. Therefore
the company does not require to establish a full market for themselves as a brand. This is an
experiment, if the market response towards the products and brand is positive then the
company can launch their products and retail store more exclusively.
The two company deals with the huge amount of products, the goods exchange between them
or the product delivered are in huge amounts. Hence creating a big wholesale market value
also, resulting in better sales of the manufacturing company that is 2XU.

As the manufacturing company does not involve the customers and the market interference,
they are in the more softer side. There comes the point market predictability, this company
does not require predicting what the possible market will in the future. If the sales of their
product will decrease they will alter in the production or manufacturing line, as the market of
the given city requires it. Hence, if involved in more business opportunities and advancement
in the business market will beneficial for the company.
As the sales unit for the 2XU company is high, due to the reason of the wholesale unit
provided by the company, the company have lower manufacturing cost and a chain of high-
profit-margin as sales are in huge numbers.
Another main reason for choosing the business to the business model for commerce purpose
is the data-centric process. As the business is done in huge numbers the time are consumed
are less and productivity is very high also the profit is also huge. The error occurs in this field
is very low as the maturing unit does manufacture in huge numbers. In addition, there is more
detailed way calculation the data statistic of the sales and revenue as the number of entries are
less and the amount on those are very high.
These are few of the justification used in order to justify the need for choosing the business to
business commerce model the particular market field rather than the business to consumers
commerce model type (Schlegelmilch, 2016).
Positioning
Market strategies for any new emerging company in a new market, like 2XU
company in Singapore, is very important, as the market strategies decide the rest of the
performance of the products in the current market. The positioning strategy for the product of
the 2XU is based on product class and production process as they are the best way for the
firm especially in the new market condition where the people don’t know about the brand
image of the company. The advertisement for the products must be based on the production
process, the material used while making the athletic garments, in order to get the attention of
the public market as an individual person. The production process has shown the market
advertisement should consist of some extra popular items that are not used by the competitor
in the same athletic garment field (Tanner & Raymond, 2015). The innovative ideas that the
company used in the production process making the production must be chosen as the
requirement of the public in the market they are selling it. The company should also know the
market requirements for the product process, product manufacturing and company
advertising strategies. As the needs of the customers, the company should change in the
manufacturing unit and at the same time show the market about the change they have made

for the respective customers (Phillips, 2016). This step creates an unconscious state in the
customers back of the mind that the given company is providing what they need and thus they
need to buy the company products in order to fulfill their requirements. The company should
also enroll new idea, new graphics schemes in order to grab the attention the consumers and
the market, also adding challenge for their competitors in the same market. The company
should always introduce new ideas in the manufacturing unit in order to stay in the market
and also stay ahead of the competitors. The ideas and the new innovation the new market
always helps in growing new company and stay in the market, it also helps in keeping a brand
image stable (Pyo, 2015).
It can be said that product should be used as a differentiating tool for the company to
effectively differ and have a competitive advantage over the competitors in the market. It can
be stated that product differentiation will be done based on the quality of the products that
will be rendered by the company in the Singapore market. The company will tend to have an
effective product promotion strategy to the advantages and advancement that are there in the
garment and how they are better than the products currently existing in the market. In this
way, the company will be able to position different from its competitors in the market. In this
way, the firm will be able to display its product dominance with respect to other products in
the market. Taking such steps in the upcoming market in Singapore can help the 2XU
company to grow and maintain the sales in the market and thus helping the business to be a
profitable one (Zia & Kumar, 2016).
III. Why Singapore Market/customers
III. a) Opportunities
The rise in the population and the better awareness of heath management among Singapore
people is the sole reason to make investment in the community of Singapore. The huge love
of body fitness and celebrity endorsement in keeping body fit makes Singapore best place to
be invested upon
IV. Conclusion
Concluding in the context of the above discussion it can be stated that 2XU is following a
B2B commerce and marketing segmentation model which will help the firm to effectively
operate and enter the Singapore market. In accordance to the positioning strategy, the
company will tend to use a production process based positioning strategy in which product

will be a tool to differentiate the company to its competitor in the market this is suitable for
the company to gain customers in the new market in an effective manner.

V. References
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Marketing Management in Asia: Case Studies and Lessons across Industries (pp. 179-
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Camilleri, M.A., (2018). Market Segmentation, Targeting and Positioning. In Travel
Marketing, Tourism Economics and the Airline Product (pp. 69-83). Springer, Cham.
Phillips, A. (2016). How books are positioned in the market: Reading the cover. In Judging a
Book by its Cover (pp. 41-52). Routledge.
Pyo, S. (2015). Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), 253-281.
Sawhney, M., Grayson, K., Dupree, P., Hsu, C., Metzger, R., Obuchi, F., ... & Wilson, K.
(2017). Ontela PicDeck (B): Customer Segmentation, Targeting, and Positioning.
Kellogg School of Management Cases, 1-6.
Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In
Global Marketing Strategy(pp. 63-82). Springer, Cham.
singstat.gov.sg, (2018) Retrieved from from
https://www.singstat.gov.sg/-/media/files/publications/population/population2017.pdf
Accessed on 7 October 2018
Tanner, J., & Raymond, M. (2015). Principles of marketing. University of Minnesota
Libraries Publishing.
Zia, M., & Kumar, N. (2016). A Three Dimensional Vertical Differentiation Model:
Implications for Segmentation, Targeting and Positioning.