Marketing Strategy and Plan for Activewear Startup in Australia

This report provides a comprehensive marketing strategy and plan for the activewear startup Bam-Ba-Lam, focusing on the Australian market. It begins with an introduction to the activewear industry, highlighting its growth and the company's focus on gym and yoga apparel. The report analyzes macro and micro environmental factors, industry structure, and competitive landscape, identifying key insights such as the maturity of the industry, high competition, and the increasing importance of online channels. The report also examines consumer behavior and competitor positioning. Based on these findings, the report recommends strategic shifts, including reconsidering raw materials like bamboo fibers in favor of linen, targeting the mass market with a low-price strategy, and developing robust online marketing and distribution channels. The report emphasizes the importance of a strong brand image, understanding market demographics, and adapting to consumer trends. Ultimately, the report aims to help the startup successfully penetrate the competitive activewear market by differentiating itself through innovative strategies and effective market positioning. The analysis includes insights gained from industry reports, competitor strategies, and consumer preferences.

Running head: MARKETING STRATEGY AND PLAN
MARKETING STRATEGY AND PLAN
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction......................................................................................................................................1
Summary of the Key Insights..........................................................................................................1
Recommendations............................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Active wear Industry is an industry that offers different types of apparels for the
customers from clothing, footwear, accessories and others for both men and women. Active wear
industry has significantly shown improvement over the years in the global market and is
expected to increase further due to rising demand (O’Sullivan et al., 2017). The new start up that
is being initiated by a pair of friends in the name of Bam-Ba-Lam is an active were company
offering different type of active wear products for men and women. The product aims at the
customers that like going to gym, yoga and running. The brand is focused at making active wear
clothing only for gym and yoga presently (Horton, Ferrero-Regis & Payne, 2016). The
macro environmental and micro environmental analysis has been conducted along with industry
analysis to get an insight of the market in which this new startup is operating.
The paper aims at offering key insights from the findings of previous papers based on
factors such as industry analysis, micro and environment factors, customer analysis, competitor
analysis and others. Further, the paper suggests few recommendations on key insights to help the
company attain success.
Summary of the Key Insights
In response to the findings of the previous papers it can be seen that the major insight is
on the macro environmental factors affecting the active wear industry of Australia. From the
macro environmental factors it is seen that the industry of active wear is facing high risk from
political and environmental factors and moderate risk from technological and legal factors
(Emerson, 2017). This is because there is high tariff for trade in China and US and also
polyester shortage is seen in the world which forms an integral raw material for the production of

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active wear clothing. However, other factors do not possess high risk to the industry other than
smart fabric industry which is growing rapidly with a rate of 19 percent. This possess a threat to
the active wear industry and their cost, however, also acts like an opportunity (Australia Post,
2018). Thus, it is seen that presently risks to the industry from macroeconomic factors are not
too high and is faced from few factors.
The next key findings from the previous assignments it is seen from the analysis of
industry structure and performances. It is seen that the industry faces huge competitive pressure
form the companies operating in it. This is because the industry is well established in Australia
with many companies and is at the maturity stage of life (Roy Morgan, 2019). Thus the rising
competition puts the companies under threat. In addition to this, the power of the consumers are
also seen to be high in the industry due to existence of large number of industry. Thus, the key
findings show that the active wear industry is thriving and is at a maturity stage with less scope
for further growth (Chang et al., 2015). Further, the competition is high and consumers positively
support the active wear products.
The third key insight is seen from the competitive analysis that shows the condition of the
competitors. The most direct competitors in the industry are the companies that are selling active
wear products made from organic cotton, bamboo fibers and recycled materials. It is seen that
there are many companies that are already using alternative form of raw materials to reduce the
pressure on the environment (abs, 2019). This shows that idea of bamboo fibers is already being
used by other active wear companies.
Previous findings also gave a vivid picture about the positioning strategies of all the
existing companies in Australia selling active wear clothes. From the findings it is seen that most
of the companies in active wear target the mass market with high price. There are only few

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brands targeting the niche market at high price. Moreover, none of the companies are seen to
operate with low price in niche or mass market. Thus, this situation gives an insight that there is
quite a big scope for the companies to enter the industry and position itself in the other two
quadrants of positioning strategy (abs, 2019). Moreover, it is seen that the industry heavily relies
on innovation and reduced lead times for growth.
There are key findings showing the channels through which the firms can sell their
products in the active wear industry. There are wide range of channels such as online, physical
stores and others (Nevin, 1995). Growth of e-commerce offers huge scope for the industry to
sell its products to the customers at low prices. The industry is increasingly connecting with
technologies and expectation of the consumers (Zanker et al., 2006).
Lastly, from the consumer analysis it is seen that the most casual form of customers that
the industry experiences are gym enthusiast, health conscious middle age group people.
Recommendations
From the above analysis it seen that in order to succeed in the industry it is necessary for
the companies to have a strong brand image, use online technologies for distribution
understanding of market demographics and current trends and behavior of consumers. Thus,
certain recommendations will be followed to help the new startup company help survive in the
industry and place itself strongly with all the existing competition.
Firstly it is recommended that the new company that has entered the active wear industry
with the aim to offer environment friendly raw materials should rethink about the raw materials
that they are using in production. The company is presently using bamboo fibers to manufacture
its products sustainably. However, it would be efficient if the business uses alternative fibers

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such as linen in place of bamboo fibers. This is because from the key insights it is seen that
bamboo fibers are already being used by many active wear companies in Australia to
manufacture environmental friendly clothing. Moreover, they also make use of viscose fibers and
recycled fibers that is extracted from polyester by products. Further the findings shows that the
percentage of polyester generation is reducing and thus it is beneficial to replace it by some other
raw materials (Moazzem, Daver & Wang, 2016). Linen will not only help the new
company in protecting itself from reducing polyester production, however, it will also allow
them to gain competitively by offering different types of product.
Secondly, it is recommended for the new company to expand its market targeting plan
and target the early adopters and middle income group people with their products. This will help
them to sell their products to large number of customers easily and also improve their market
approach (Kotler & Keller,2016). In such a competitive environment it will be useful for the
company to target mass customers rather than and niche market. Moreover, till date no company
has position itself in low price and mass market quadrant and such positioning will also offer
competitive strength.
Thirdly, it is recommended that the company should plan for its distribution and
marketing strategy so that it is able to reach to its customers effectively and bring their products
in picture even in such competitive environment in Australian active wear industry (Nevin,
1995). For the purpose the company should focus on online marketing and distribution channel
such as through creation of strong website, advertising about the website in social media, content
creation and others (Gurău, 2008). Further, the brand can also make use of well-developed e-
commerce websites to sell their product to potential customers who are loyal or regular
customers in these e-commerce websites. This will be an effective marketing and distribution

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strategy for the new company to target its potential customers at low cost (Graham, 2008).
Moreover, it is seen from the key insight that the customers of active wear also prefer to
purchase from online platform.
Fourthly, it is recommended that the company should plan for their positioning strategy
so that it can place itself in the market in such a way that customer will demand its products.
From the key insight it is seen that the major positioning strategy of the competitive firms in the
industry is at high price and mass market with some of them focusing at high price niche market
(Dou et al., 2010). However, there are no firms seen to target low price product at mass or niche
market. The new company should the focus on low price and mass market positioning. This will
not only be a different type of positioning strategy, however, it will also help the firm to target a
wide range of the market. The firm will find it easy to target the customers with low price,
especially the middle income customers who has not been targeted by any other firms. Thus, this
is type of penetration strategy the firm can use to enter the market (Meyer & Tran, 2006).
Conclusion
In conclusion it can be said that the new firm should plan strategies that is beneficial for
it for short and long term. Further, the strategies should be one that is different from the
competitors so that it can place itself differently in front of the customers. This will allow them
to make use of penetration strategy for entering the market and reduce initial cost with the aim to
generate broad profit margin.

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References
Australia Post. (2018). Inside Australian Online Shopping - 2018 eCommerce Industry
Paper. Sydeny: Australian Post.
Australian Bureau of Statistics - Employee Earnings and Hours, Australia, May 2018. (2019).
Retrieved from https://www.abs.gov.au/ausstats/abs@.nsf/mf/6306.0
Chang, H. J., Cho, H. J., Turner, T., Gupta, M., & Watchravesringkan, K. (2015). Effects of store
attributes on retail patronage behaviors: Evidence from activewear specialty
stores. Journal of Fashion Marketing and Management, 19(2), 136-153.
Dou, W., Lim, K. H., Su, C., Zhou, N., & Cui, N. (2010). Brand positioning strategy using
search engine marketing. Mis Quarterly, 261-279.
Emerson, G. (2017). Perspectives of contemporary sustainability knowledge
and practice in the Australian Fashion Industry.
Graham, H. (2008). Marketing strategy and competitive positioning. Pearson Education India.
Gurău, C. (2008). Integrated online marketing communication: implementation and
management. Journal of communication management, 12(2), 169-184.
Horton, K., Ferrero-Regis, T., & Payne, A. (2016). The hard work of leisure:
healthy life, activewear and Lorna Jane. Annals of Leisure Research,
19(2), 180-193.
Kotler, P., & Keller, K. (2016). Marketing Management, 15th Edition. Pearson.

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Meyer, K. E., & Tran, Y. T. T. (2006). Market penetration and acquisition strategies for
emerging economies. Long Range Planning, 39(2), 177-197.
Moazzem, S., Daver, F., & Wang, L. (2016). Modelling of carbon footprint of
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Nevin, J. R. (1995). Relationship Marketing and Distribution Channels:
Exploring Fundamental Issues. Journal of the Academy of Marketing Science,
327-334.
O’Sullivan, G. A., Hanlon, C., Spaaij, R., & Westerbeek, H. (2017). Women’s activewear trends
and drivers: A systematic review. Journal of Fashion Marketing and Management: An
International Journal, 21(1), 2-15.
Roy Morgan (2019) Who's Shopping Online? Nearly 9.5 million Australians. Retrieved from
http://www.roymorgan.com/findings/7612-whos-shopping-online-nearly-9point5-
million-australians-201806080733
Zanker, M., Bricman, M., Gordea, S., Jannach, D., & Jessenitschnig, M. (2006, September).
Persuasive online-selling in quality and taste domains. In International Conference on
Electronic Commerce and Web Technologies(pp. 51-60). Springer, Berlin, Heidelberg.