Strategic Marketing Management Report: Newman Apparel Analysis

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This report provides a strategic marketing analysis of Newman Apparel, an online gym apparel business based in Wellington, New Zealand. The report begins with a SWOT analysis of the business model canvas, identifying strengths like its customer segments (health-conscious individuals, first-timers, and regular gym-goers), value proposition (affordable, quality products), and strong social media presence. Weaknesses include limited key partners and customer retention challenges. Opportunities include expanding delivery services internationally and the threats include the need for more staff and better technology to handle increasing order volumes. The report then identifies potential marketing opportunities using the business model canvas, such as targeting health-conscious consumers, leveraging social media for customer engagement, and expanding into international markets. Finally, the report discusses the organizational and marketing resources required to capitalize on these opportunities, emphasizing the need for financial investment, skilled human resources, and effective marketing strategies to achieve growth in both domestic and international markets.
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Running head: STRATEGIC MANAGEMEN
Strategic Marketing Management
Name of the Student:
Name of the University:
Author’s Note:
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Table of Contents
2. SWOT analysis of business canvas model:.................................................................................3
3. Identification of the possible marketing opportunities by using the Canvas model....................5
4. Discussion of the organizational and the marketing resources to engulf the marketing
opportunities....................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
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2. SWOT analysis of business canvas model:
The strengths are as follows:
Customer segment: Since fitness is a huge industry in New Zealand, there are quite a lot
of people who enjoy going to the gym or make sure that they keep themselves fit.
Therefore, there are three types of segments that Newman apparel provides to, which are,
health-conscious people, first-timers and people going to the gym on a regular basis.
Since the three given segments use the same type of products, this proves to be a strength
for Newman apparel as they can concentrate on those segments.
Value proposition: When compared to its competitors, Newman apparel charges the least
and even offers good quality of material on their products. Since it’s a wellington-based
organization, it is highly convenient for people living in and around wellington to get
access to their products.
Channels: Since Newman apparel is an online based organization, they’ve to be up to
date with their technology and make sure that their website is up and running at all times.
Newman apparel has a strong connection with social media because all their customers
are acquired via social media, i.e. through Facebook and Instagram.
Revenue streams: Despite being just over an year old, Newman apparel has made a lot of
sales in the past year and have made a neat profit. Their revenue is determined by the
price of their products and the commissions they earn from sales.
The weaknesses are as follows:
Key partners: Newman apparel has only two key partners, i.e. their suppliers, who
supply the products to Newman apparel and the software developers, who help to
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maintain the site and keep it running 24*7. Since they’re just over an year old, they’re
not too well-known in New Zealand. This can be a weakness as other potential
partners may not prefer to work with them because they’re a small organization.
Customer relationship: Having a proper relationship with the customer is very vital
for any organization. In the case of Newman apparel, there seem to be a lot of one-
time buyers, which basically means that most of the customers buy their products
only once and don’t come back for more. This does lead to lack of customers and
customers not being loyal. Online support can be risky because upkeep of the support
site is tough, there can be a crash in the server which can cause inconvenience for
customers and even employees at Newman apparel.
The opportunities are as follows:
Key activities: Being a wellington-based organization, Newman apparel has made
delivery very easy only in and around wellington. Although they do deliver to other
regions of New Zealand, but not just as smoothly as in wellington. Apart from
delivering their products domestically, they should start delivering their products
internationally as well. For that, they’ve to study the international market and act
accordingly.
The threats are as follows:
Key resources: Being in an e-commerce business, Newman apparel ought to hire
more staff members as they do keep getting bigger orders, which makes it hard to
handle for a staff of just five people. They should get better equipment in terms of
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technology to handle big orders and also acquire better computers in order to provide
faster service for their customers.
3. Identification of the possible marketing opportunities by using the Canvas model
Business model canvas is a strategic model of management that includes different
elements of the firm. However, products, customers, firms, infrastructure, and firm are the major
components of such model (Scotch, 2017). Newman Apparel is an online shopping website
situated in the Wellington New Zeeland. Gym wares are the main item of such organization.
Based on the business canvas model analysis it can be said the product is the basic opportunity of
such organization.
Opportunity to cover a large number of health conscious people through the products
Newman Apparel focuses on the gym products, which will bring a big opportunity for
them to cover a large population in New Zeeland who are health conscious. In the recent years,
fitness is the global requirement as maximum people in high-class society are health conscious
(Fernandes, Silva & Albuquerque, 2017). Hence, they have a common intention to make them
fit. Offering different types of gym products enable this organization to get customers at the
national and international level as it is an online based apparel. This organization offers the high-
quality product with low price. That is a big thing to attract the customer and to gain competitive
advantages in the market. However, consumers have a common intention to buy the good quality
product at cheap price. Hence, Newman Apparel offers this type of gym product to the customers
that lead them to get the opportunity to increase the number of customers in their business.
Product feature, price, and quality bring opportunity for Newman Apparel in the global
market. By developing new products the organization will able to gain the interest of the people
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especially the health conscious customers. However, by creating product diversification in gym
product and by offering them with the affordable price this organization will able to expand their
business by increasing the number of global customers who are health conscious. This
opportunity can be done by improving the communication level with the customers. On the other
hand, providing value to the customer choice is crucial for an organization (Plenter et al., 2017).
Newman Apparel needs to communicate with the values of the customer by identifying their
choice and needs. However, by offering health conscious products this organization can
communicate with their values as well as with the customer’s value.
Opportunity to communicate with the customers via social media application
Based on the business canvas model analysis it has been found that Newman Apparel is
an online based organization and they try to connect with their customers via social networking
sites. This brings a big opportunity for them to cover a large number of populations. Application
of the social media application enables a business organization to communicate with a large
number of customers from different geographical regions (Gonçalves & da Silva, 2017).
Newman Apparel is an online based apparel thus they need social media integration in their
business. They have made a strong connection with their customers via social media.
Application of Facebook and Instagram will enable this organization to communicate
with the existing customers as well as to find the new customers (Tomczak, Reinecke & Kuss,
2017). Social media application in business increases the brand awareness in the customer’s
domain. By creating advertising via facebook and twitter the customers those are outside of New
Zeeland are able to know about the Newman Apparel brand. This creates the opportunity for this
brand to increase the number of new customers. On the other hand, Newman Apparel can create
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brand loyalty through social media marketing that enhances their brand value as well as the
belief of the consumers. According to the business model canvas, customer segment is a big part
of a business (Liebl, 2017). However, it is important for a business to give their concern to the
need of all customers from different market segments. Newman Apparel offers their products for
different segments of customers include first-timers, health conscious and for the customers,
those are going to a gym on regular basis. Hence, social media application creates brand equity
for different segments of customers by sharing free and valuable contents regarding their
products. This will build trust in the mind of customers over the time. Apart from this social
media marketing is a crucial way for Newman Apparel to humanize their brand. This provides
the opportunity to this organization to showcase their brand personality.
Opportunity to deliver the products in the international market
Newman Apparel is a New Zeeland based online apparel and they are running their
business successfully in the domestic market. However, their market operation in the
international market is not as smooth as the domestic market. This will bring a good opportunity
for them to expand their business in international market. The value proposition is an important
component of the business model canvas (David, David & David, 2017). Based on the analysis
of business canvas model it has been received that Newman Apparel offers the good quality
product with affordable price in comparison to their competitors in Wellington. This focuses on
the needs of the market. Wellington is a highly convenient area for the people to live. Hence,
people of such area can easily access their products. Such marketing operation in the domestic
region influences this organization to expand their market share in the international market by
utilizing their business channels.
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Supply chain management is a big factor for every business based on which the image of
a brand depends (McDonald & Wilson, 2016). This organization delivers their product quickly
and smoothly in the domestic market. Such strong supply chain and social media channel will be
beneficial for such organization to expand their market share on the international level. This will
be valuable for their organization as well as for the consumers. This will improve the
organizational culture by identifying the demand of the consumers in the global market.
4. Discussion of the organizational and the marketing resources to engulf the marketing
opportunities
Organizational Resources
Organizational resources include human resource and the financial resource. In order to
utilize any business opportunity, it is important to manage the organizational resources (Strauss,
2016). In the context of Newman Apparel, they need proper arrangement of financial resource
and human resource. To provide quality gym products to attract the health conscious people they
need an innovative idea to improve their product feature. This can be done by human resources
and manage the financial resources. On the other hand, to operate in the international market
major investment is needed. Therefore, for the advertisement of the products via social media
strong human resource is required. A large number of technical experts is needed to utilize the
social media marketing and to communicate with customers both domestic and international
market (Richter & Torstensson, 2016). In the context of Newman Apparel, they need to recruit
more staffs to expand their business in international market. Moreover, they need partnership
work to manage the fund and workforce to utilize the current opportunities.
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Marketing Resources
Money, expertise, time and energy are the basic four resources of marketing. These four
resources are crucial to market a product by utilizing the opportunities (Nenonen & Storbacka,
2016). In the context of Newman Apparel, they need huge money to invest more in the foreign
market to engulf the opportunity of international marketing. Therefore, to maintain the workforce
and hire the expertise money is the major element in this business. However, Newman Apparel is
an online based business hence, to market their product expertise like technical and non-
technical staffs are required.
Talented marketing executives are required to advertise and communicate with the
products in the customer domain to increase the customer number. Therefore, the technical
experts are mandatory to operate the entire online marketing. Time is another element of
marketing (Liebl, 2017). Newman Apparel needs to give more time during the development of
the business plan to enhance their market share in the global market. On the other hand, to
understand the needs of the different market it is important for this organization to give more
time to their market research. To expand the business in the global market a proper marketing
plan is required, which needs more time in the context of Newman Apparel. Energy refers to the
capacity of a company to carry out their marketing operation. By involving more people in the
business, this organization will build their energy and this will be helpful for them to carry out
their marketing in both domestic and international market.
Conclusion
The entire work reveals the marketing strategy in the context of Newman Apparel. This is
a New Zeeland based online apparel and popular in the domestic market of New Zeeland.
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However, the major strength of this organization is their product quality and price. On the other
hand, their customer segmentation based on the product brings a big opportunity for them to
attract the customers those are health conscious. On the other hand, use of social media in the
business is another strength of such organization to make their product popular in the
international market. In order to utilize such opportunities, this organization needs financial
resource and workforce. Therefore, time, money, energy and expertise are required as the
marketing resources, which will allow them to increase their market share in domestic as well as
in the international market.
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References
David, M. E., & David, F. R. (2017). Are key marketing topics adequately covered in strategic
management?. Journal of Strategic Marketing, 25(5-6), 405-417.
David, M. E., David, F. R., & David, F. R. (2017). The quantitative strategic planning matrix: a
new marketing tool. Journal of Strategic Marketing, 25(4), 342-352.
Fernandes, J., Silva, A. D., & Albuquerque, E. (2017). The role of destination marketing
organisation in strategic marketing management for tourism. GRA's Multidisciplinary
International (GRAM i) Journal, 1, 8-22.
Gonçalves, R. F., & da Silva, M. T. (2017, April). System Thinking and Business Model Canvas
for Collaborative Business Models Design. In Advances in Production Management
Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International Conference,
APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected Papers (Vol.
488, p. 461). Springer.
Liebl, F. (2017). What Is Strategic Marketing in an Innovation Society?. In Innovation Society
Today (pp. 165-181). Springer VS, Wiesbaden.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Nenonen, S., & Storbacka, K. (2016). Driving shareholder value with customer asset
management: Moving beyond customer lifetime value. Industrial Marketing
Management, 52, 140-150.
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Plenter, F., Fielt, E., Hoffen, M., Chasin, F., & Rosemann, M. (2017). Repainting the business
model canvas for peer-to-peer sharing and collaborative consumption.
Richter, F., & Torstensson, C. (2016). Strategic management of social media: How to design
content on Facebook and Instagram to promote interaction from followers.
Scotch, W. G. (2017). Strategic marketing management.
Strauss, J. (2016). E-marketing. Routledge.
Tomczak, T., Reinecke, S., & Kuss, A. (2017). Marketing Implementation and Management
Control. In Strategic Marketing(pp. 223-244). Springer Gabler, Wiesbaden.
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