RAOUL and the report evaluates the marketing management strategies
The report attempts to focus on the strategies undertaken for the purpose of introducing eco friendly products in the Singaporean market. The company that has been chosen is RAOUL and the report evaluates the marketing management strategies that have been undertaken by the company and determines the market position of the company by means of SWOT, PESTEL and competitor analysis.
Further, a detail analysis has been done to evaluate the acceptance of the eco friendly brand in the Singaporean market.1.1. Company backgroundRAOUL is one of leading exporters of fashionable garments and has been the one of the most sought-after fashion stores for the fashionable people. RAOUL has been recognized for its brand of product offerings with designs of contemporary fashion and superior quality. RAOUL was set up in the year 2002, when it produced garments for men like business shirts in relatively affordable prices (Lusch & Vargo, 2014). The company flourished due to the variety and quality of products offered.
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The company further expanded its scope and introduced garments for women in the year 2004. Currently the company is one of the leading manufacturer and distributor of fashionable garments across the globe (Armstrong et al., 2014).1.2. Product backgroundRAOUL has been one of the leading exporters of fashion garments in Singapore and is recognized globally for its brand and variety of product offerings. The company initially produced men’s garments like shirts and other outfits.
However, in the year 2004 RAOUL expanded its market reach by producing garments for women (Raoul Clothing, 2018). The company presently operates over 200 locations including Asia, Europe, and Middle East. The company today has international fame with showrooms in Milan and New York. RAOUL has also expanded on its product offerings by introducing exclusive collections on a yearly basis (U.S, 2018).2.0.
Macro analysis2.1. PoliticalThe political scenario of Singapore is stable and the government is supportive towards industrial growth. Garment industry is considered an important industry as the people of Singapore has a taste for fashionable garments. The government provides support to financial as well as infrastructural support for the purchase of the raw materials to ensure the smooth functioning and growth of the clothing industry. Due to the political stability, the economic standards of the people of Singapore have improved. This has indirectly contributed to the growth of the fashion industry.
The regulatory rules of the government are also flexible for the growth of companies like RAOUL.2.2. EconomicalSingapore is an economically developed country with a positive GDP value at the end 2017 (Ministry of trade Singapore, 2018). The average standard of living is high with most of population belonging to economically affluent families. Therefore, people with strong economic solvency are more drawn to fashion and style, which further contributes to the growth of apparel industries like RAOUL (Arnett ; Wittmann, 2014). Singapore is economically developed to cater to the requirements need for the growth of fashion industry.
2.3. SocialPeople of Singapore are culturally vibrant and have a western taste about their social, cultural and ethnic orientation. The people of Singapore have greater preference for a variety of fashionable garments and goods and spend a major part of their income on the purchase of fashionable and trendy garments. Moreover, the people of Singapore are influenced by the various fashion shows that are promoted. People are more concerned with the environmental harm that we are facing globally through the years eco-friendly fashion had gradually gain its popularity hence eco friendly products which are have quite a demand in the international market (Melissa Heng, 2017). Therefore, the market scenario is appropriate for the growth of clothing brands like RAOUL.
2.4. TechnologicalSingapore is technologically sound as it has vast reserves of technological amenities that support the growth of industry in terms of infrastructural facilities. The technology support that the country caters to contributes largely, in the growth and expansion of industries. Apparel industry is highly innovation centric and the abundance of technological and resources help in the growth of such industries (Heizer, 2016). RAOUL is a brand that caters to a variety of designer clothes and garments that requires adequate mechanical and technological support. This is catered to in fair degree in Singapore.
2.5. EnvironmentalThe environmental factors prevalent in Singapore are favorable for the growth of fashion stores like RAOUL. RAOUL is recognized for its brand of luxurious product offerings to their customers (Johnston ; Marshall, 2016). The brand is dedicated to provide its customers with superior quality garments, which are fashionable and in accordance to the current trend practices in the fashion market. The use of inorganic chemical dyes is consciously avoided, which further keeps the environment safe.2.
6. LegalThe legal factors concerning the regulatory rules as well as the financial complications that arise due to disputes between the employees and employers on matters pertaining timely payment of wages is effective catered by the company (Zhao, 2016). Therefore, RAOUL faces not much of legal problems, which further contributes to the smooth operational flow of the company. The legal regulations implemented by the government are flexible for the growth of the industry.3.0. Competitor analysisBrands Market share Target audience Positioning Price Distribution PromotionMassimo Dutti Fashion 19.
3% Upper class audience Diverse product range, 100% reliability of material, personal tailoring 1350 – 11200 Selective Internet marketing, public relation, personal selling, advertisingValentino 21.7% Upper class audience Wedding dresses, designer dresses, perfumes 2500 – 47000 Selective Advertising, internet selling, public relationGAP 22% Middle and lower class audience Maternity, plus size clothes, dresses for younger generation 250 – 700 Extensive Advertising, public relation, personal sellingCharles ; Keith 15% Middle and lower class audience Kids clothes, shoes, accessories 300 – 2000 Extensive personal selling, advertising, internet marketingAll dressed up 7.8% Upper and middle class audience Special occasions and daywear for ladies 200 – 15000 Selective Internet marketing, public relation, personal selling, advertisingFigure 1: market share of apparel industry (Singapore)The market share here has been developed along with the division of the fiscal year. The market share can be gained by adding the total revenue that is earned by the organization. After the addition of the total revenue earned by the organization, the revenue earned by the entire industry has to be calculated. The market share can be calculated based on the result gained from the division of the firm’s earning by the industry’s earning. Based on the number of product sales, it is evident that GAP and Massimo Dutti Fashion are the leaders in the apparel market share of the company (Massimo Dutti India, 2018).
These two brands are the most preferred brands in the apparel market in Singapore. From the market share, it is evident that most of the companies are targeting the upper class of the society as they can afford luxurious products of the company. Thus, the mentioned company, Raoul has the opportunity to explore the market for the lower and the middle-class people.4.0. SWOT analysisA SWOT analysis helps in the determination of the micro environmental factors or the internal factors that are associated with the smooth operation of the company (Shabanova et al., 2015).
There are many factors in the industry and area of operations, which directly influences the operational flow of the company. A SWOT analysis helps in the estimation of the strengths weakness opportunities and threats of an organization so that effective strategies can be undertaken effectively (Ho, 2014). To analyze the market position of RAOUL, SWOT analyses have been conducted.Strengths? The biggest strength of RAOUL is that the company has a good collection of designer clothes that are trendy and are inspired by German folk art (Solomon, 2014).? The capital strength of the organization is strong enough to support the new intention of introducing the eco friendly fashion brands for the cautious customers.? RAOUL provides a variety of customers to its customers and are unique in their productions with respect to the color and quality of fabrics Weakness? One of the major weaknesses of RAOUL is that while the company is most famous in United Kingdom, it is not very reputed in the other parts of the world.? RAOUL has a good brand value, but it only caters to the demand for luxury products that are far beyond the reach of ordinary people.
? A limited customer base affects the brand value of the company.Opportunities? RAOUL makes use of the abundant technological resources to attract a wide range of customers by means of online promotion (Chiarini, 2015).? RAOUL makes extensive application of the various advertising and promotional strategies to attract customers across the globe? Internationally, the demand for the eco friendly fashion retail brands have been increasing from time to time.Threats? The biggest challenge to the company is the threat posed by the rival companies such as Masssimo Dutti and the likes.? The financial fluctuations often affect the purchasing capacity of the customers.? There have been threats of duplicity and brand imitations that have affected the reputation of the brand in the recent years.The SWOT analysis of RAOUL helps in the analysis of the potential strengths weakness opportunities and threats of the company, helps them in the implementation of proper strategies, which would enable the company to withstand the threats of the rival companies, and helps the company to secure the competitive advantage.
This allows them to strengthen the market position in the fashion industry. The evaluation of the strengths weaknesses opportunities threats serves to present a guideline according to which the company can adopt proper rules and strategies to ensure that the company can proceed towards its goal of growth and expansion.5.0. ConclusionIn conclusion, the variety of product offerings that RAOUL ensures effective customer value along with its effective strategic management helps them to secure a high degree of competitive advantage. This is the sole reason why the organization have been considering of introducing eco friendly product line in the market. The policies of marketing mix and other strategies have been effectively undertaken to ensure that the company is able to hold its market position as one of the leading fashion exports of the world as well as step into the world of the eco friendly fashion brand.