Marketing Assignment

Marketing Assignment Words: 2169

Also, the company has around 800 franchised stores in Mainland China, Hong Kong, Singapore, South Korea and LISA. All items of Carpenter Tan products are hand-made from 100% natural materials with Its unique design and patterns to represent an experience of traditional Chinese functional and artistic culture. The purpose of this report is to analyze current situation of Canadian combs and handicraft market and discuss the marketing mix element strategies for introducing Carpenter Tan’s products into Canadian market. This study also provides discussion and recommendation of the key success factor to enter Canadian market.

The report is organized Into six sections: Section 2 analyzes the present market of combs and antiaircraft in Canada, Carpenter Tan’s target markets, and major competitors. In Section 3, the barrier of different perceptions and the opportunity from economic situation for Carpenter Tan to enter Canadian market are discussed. The discussion of the marketing mix element strategies are provided in Section 4. The key factor for Carpenter Tan to enter Canadian market is discussed in Section 5. Finally, the major findings, recommendations for Carpenter Tan are concluded In Section 6. 2.

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Current Market Situational Analysis of Combs and Handicrafts in Canada In order to analyzing the current situation of the Combs and handicrafts industry In Canada, this market, Targeting Carpenter Tan’s customers based on the their demographic and cryptographic characteristics, and, figuring out the major competitors of Carpenter Tan. 2. 1 Market Size Potentials, Opportunities, and Segmentations Based on the IBIS World (2012) and Euro monitor International (2012)g’s classification of industry. It seems that combs and handicrafts products are not material enough to represent an industry.

It is excluded from hair care industry, which mainly stands for shampoo, coolants, and loss hair treatment. Also, personal accessory industry does not include combs and handicrafts products because it focuses on bags, Jewelry, watch, and writing instrument. The current situation in Canadian market is the products of combs are under the brands of hair-care companies such as P&G, Goody, and Contain. It is fair to say there is a huge opportunity for Carpenter Tan to enter Canadian market because the current market of combs is not mature. The market is lack of high quality wooden products.

However, Carpenter Tan need to stimulate the demand for luxury combs. The process of generating demand will be a challenge for Carpenter Tan. 2. Target Markets of Carpenter Tan and Their Characteristics in Canada Through the analysis of the current market in Canada, Carpenter Tan should use the concentrated marketing strategy. According to Armstrong et al. (2012), by using concentrated marketing strategy, the firm can get a strong market position and cam market more effectively and efficiently. It is suitable for Carpenter Tan because the market is not complete and Carpenter Tan is a new entrant for this market.

Under this positioning, Carpenter Tan should target on young adults and middle-aged well-off female. Moreover, in terms of cryptographic characteristics, . . 2. 1 Demographic Characteristics Demographic segmentation use age, gender, family size, life cycle, income, and education to separate the market into different segments (Armstrong et al. , 2012). This paper focuses on gender, age, and income because these three factors are significant for distinguishing Carpenter Tan’s target market. Although the demand of combs and handicraft products for men is existing, this type of products are mainly targeting at women.

Consumer’s needs for combs are not close relative to their age. However, the consumption decision of combs is made by young adults and middle- aged mainly. So young adults and middle-aged female are selected. In addition, income level is the most important characteristic of Carpenter Tan’s target customers. Carpenter Tan provides luxury goods, the price of the goods will be relatively high. So the firm has to consider affordability of customers. The income level group, which represents the individuals who have $50,000 and over income per year, will be reasonable targeted on.

Based on the information provided by Statistics Canada (2012), the population of this group is 6. 72 million. That means the market size, in terms of population, is big enough for Carpenter Tan. . 2. 2 Cryptographic Characteristics Server different group of customers are classified based on the social class of cryptographic segmentation, such as, lower lowers, working class and so on(Armstrong et al. , 2012). According to this theory, target customers of Carpenter Tan are upper middles and uppers. This group of customers prefers luxury products with high quality of raw material, famous stylist and excellent craft.

The most group that they use luxury products to represent their status symbol and desire. Therefore, buying luxury products have became a custom among upper middles and peppers, not only using luxury products by themselves, but also buying products as a gift. Additionally, considering about personality, there is a group of customers are detail oriented. These customers focus on the detail of products, no matter based on their background or life experience. They care about specifics in the process of buying, not only the design and craft of products, but also the display of products and the quality of services.

To related with this psychological activity, the Carpenter Tan’s products can meet their demand, because paying attention to detail and laity is the desire of luxury products’ marketers. Also, these are the tool of luxury brand to increase reputation and communication with customers. 2. 3 Major Competitors in Canada As mentioned in section 2. 1, the competition in combs and handicrafts market is not intense, especially for luxury brand. Swanson (P;G) and Goody are major competitors for Carpenter Tan. Swanson develop their combs as accessory of their hair care products. Goody mainly focus on dominating mass market.

Neither of them concentrated on the same niche market same with Carpenter Tan. Competition for Carpenter Tan is relative low. . Uncontrollable Marketing Environment in Canada Uncontrollable environment brings both threats and opportunity for Carpenter Tan to enter Canadian market. The major consideration of uncontrollable factors will be culture and economic situation. 3. 1 Culture and Perceptions From the brand name, customers easily to figure out the products of Carpenter Tan are origin from China. However, the perception of “Made in China” will bring a negative effect on Carpenter Tan.

According to Kraft (2010), one of the challenges for multinational cooperation from China is “Made in China” faces the barrier to increase nonuser awareness in the Western marketplace. “Made in China” does not usually represent a high quality product. It is a threat for Carpenter Tan. 3. 2 Economic Situation of Canada The economic recession, which started from 2007 to 2009, affected Canada through several transmission channels since three quarters of Canadian exports are destined for markets in the United States. As a result, the GAP of Canada declined by 3. Percent over three quarters (Bank of Canada, 2011). The economic recession brings persistently high rate of unemployment. Because of the financial crisis, there were 30,000 Canadians unemployed in three quarters until July 2009(The Canadian Press, 2012). However, the good news is the recovery of Canadian economy is quicker and more complete than other major industrialized countries. From Statistics Canada in 2011, Canada was the only country being praiseworthy with quicker economic recovery in Conation and became stabilizing in the middle of 2009(Statistics Canada, 2011).

The positive prediction is defiantly an opportunity for Carpenter Tan to enter Canadian market. 4. Suggested Carpenter Tan’s Marketing Mix Strategies Based on the threats and opportunities from the current Canadian market situation ND uncontrollable environment, the possible marketing mix strategies will be The key components for Carpenter Tan’s products to enter Canadian market are functional features, design features, and brand image. Carpenter Tan’s products take 100% natural materials which have no negative side-effects for users.

Also, the materials which they chosen have different health care functions. For instance, they usually choose some special woods like sander wood and peach wood or ox horn as their products’ raw materials. Generally, these kinds of materials have a certain effect to the symptom of losing hair. Moreover, Carpenter Tan focus the design of their products. Each Carpenter Tan’s comb has been carved their copyright logo, it also been painted or carved some typically pictures such as traditional Chinese pattern, which represents auspicious meaning, and the most typically zodiac of China, at the same time.

This carving procedure is all handmade that needed handcrafted labors spend times to sculpture. Based on these characteristics of the Carpenter Tan’s product, Carpenter Tan’s products should set in high-end level and as its high quality become a good choice of gift. No matters in domestic market or export to foreign arrests, Carpenter Tan use the standardization to ensure every customer can enjoy the same quality of their goods.

In addition, Carpenter Tan should keep its brand name because it can emphasize the country of origin and 100% handmade, which are the unique selling points of Carpenter Tan for customers. 4. 2 Price Strategy Carpenter Tan should take skimming price strategy for their marketing, because of the high cost of the producing and the high quality, target customers are price insensitive, and skimming price strategy also help Carpenter Tan to build their luxury brand image. The prices of Carpenter Tan’s combs are much higher than the same mind of products.

That leads to their target markets and customers are not the common ones. As their target customers are insensitive to the price and focus the reputation of brand, Carpenter Tan not only can take the advantage of high profits, but also can establish their brand image. Thus, this price strategy helped Carpenter Tan’s products maintain their high-end position and aimed at their target customers. The price of Carpenter Tan will be set up at around 10 times higher than normal wood combs in Canadian market. For example, a 5 pieces gift set will be price at $180. 4. 3 Promotion Strategy

Carpenter Tan will not use a lot of sales promotion for practicing the promotion strategy. The promotion strategies which Carpenter Tan adopted are adverting and public relationship. Advertising is important for establishing new brand; it is necessary and effective to increase the customer awareness of the brand name. More specifically, Carpenter tan will focus on delivering their advertisement through prestigious magazines. This channel is not only costs less than television advertisement, but also has a straightforward purpose of diffusion that targeting customers.

In addition, building the relation and sponsoring some culture related vents will also be a good strategy for Carpenter Tan. For example, Carpenter Tan can sponsor annual Vancouver Chinese Culture Festival to expend the popularity of the brand. 4. 4 Distribution Strategy Operate specialty chain retail store is Carpenter Tan’s distribution strategy for entering the Canadian market at first time. On one hand, as their products’ high price and high-end level position, it is not suitable enter mass market, by building their selling point for their customers.

On the other hand, selling through chain retail store is an effective way to release gray market issue. That is because Carpenter Tan use heir own distribution to distribute their products to every chain retail store, and then there are no opportunities for middleman to redistribute or resell to other markets. Furthermore, when the brand image has been well established, Carpenter Tan also can choose licensing as a distribution strategy to increase the availability of Carpenter Tan’s products. 5.

Discussions and Suggestions for Carpenter Tan’s Key Success Factors to Enter Canadian Market The key success factor which used by Carpenter Tan to enter Canadian Market should be product strategy. Carpenter Tan’s products are unique. The high quality, 100% natural material, handmade, and unique design of the product gives a chance for Carpenter Tan to attract their target customers. Without these unique products, it is impossible for Carpenter Tan to enter Canadian market as a luxury goods producer. Wither Carpenter Tan can build a luxury brand image, which based on their product characteristic is the key.

The major task for Carpenter Tan is building their brand image, when they first enter Canadian market. Although, other market mix strategies are not as important as product strategy. The combination of skimming price strategy, advertisement on the registries magazine, and specialty retail stores will also contribute to the brand image building. Based on the discussion from this paper, It is clear that an effective product strategy will be the key factor for Carpenter Tan to get successes in Canadian Market. 6.

Conclusion Although there are several barriers, difficulties of increasing customer awareness and perception of “Made in China”, for Carpenter Tan to enter Canada market, the advantages are much more than the disadvantages which brought by these challenges. Since the high quality and typically design of Carpenter Tan’s goods loud change the prejudice of “Made in China”, their promotion strategy and skimming price strategy would not only overcome the difficulties but also imprinting on consumers’ mind. Also, the distribution strategy of Carpenter Tan will contribute to their Canada market entering.

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Marketing Assignment. (2019, Oct 11). Retrieved October 24, 2019, from https://anyassignment.com/art/marketing-assignment-31716/