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4Ps of Marketing Mixes PDF
4Ps of Marketing Mixes PDF
0 Introduction
Singapores market in consumer spending on garments formed the
biggest proportion, which leads to a total of 75% of clothing expenditures
in 2007 (Euromonitor International, 2007). According to the research done
in 2009, the Singapore womenswear market grew by 5.9% and reaches a
value of $941 Million. It is forecasted in 2014 that the market will increase
about 33.8% to a value of $1,259.4 Million (Datamonitor, 2010).In fact,
there is a rising trend of the modern Singapore male who values fashion
which contribute to the growing demand of the mens apparel
(Euromonitor International, 2009). Therefore, following the growing of
garments industry in Singapore as well as the increase in the need of the
high quality and aesthetic value at mid-range prices clothes, apparels
and accessories among Singaporeans, penetrating Singapore market is
the best decision made by Voir Group as their products offerings are
serving the needs of those customers.
Augmented
The after-sale service serves as an important function to the
Singapore consumers (Benjamin & Doreen, 1997). Since the
Singapore consumers is very particular about product quality, the
Singaporean expected VOIR to have after-sale services such as
returning policy. This is to ensure that if the item is faulty, they could
return it back and exchange it with a new one. It is very important
for VOIR to maintain its before-sale services as well as after-sale
services if they want customers keep returning to their stores.
Research shows that high level of customer satisfaction generates
repeat business (Brunner, 2008). Please refer to Appendix 3 for
product variables.
After the internationalization has been made, a firm has a
few alternatives in approaching international market whether to
standardize the product or make adaptation to the product. Similar
to Malaysia, Singapore is also a tropical climate country. Most
Singaporeans dress lightly whenever possible because of the hot
sunny weather (Euromonitor International, 2009). This suit well with
VOIR as it offers t-shirts and shorts, paired with slippers or sandals.
Moreover, the culture is quite similar to Malaysian as both countries
are Asian countries. As a result, VOIR can standardize the
production of its product range to cater both countries. This gave
an advantage to VOIR as they do not have to design and
produced the products twice.
However, VOIR need to have a minor adaptation to its
products as research shows, Singaporean are more fashion cautious
(Euromonitor International, 2009). The choices that recently offered
by VOIR are limited in terms of design. Most Singaporean is very
fashion cautious and willing to spend money on apparel because
of the increase in disposable income has been gradual and
consistent over the last decade (Euromonitor International, 2009).
Please refer to Appendix 4. This has contributed to the demand for
apparel industry. By reducing the time for products to reach the
market, VOIR can produce fashionable clothes at lower price and
turn them over quickly by selling them in its own chain of clothing
stores. It is important for VOIRs designers closely watch the latest
trends in the fashion industry and this can help them to create a
new collection in a few weeks (Squidoo.com, 2011). By continuously
introduce new design, it allows VOIR to compete effectively in
Singapore market as customer tastes can evolve quickly.
2.4 Price Strategy
As of the primary objective of the penetration in Singapore is
to gain large market share in this new market, Voir will adopt the
penetration pricing strategy. By pricing strategy, Voir will charge its
products at slightly low price compared to the other competitor
such as Giordano but still covering the production costs. This
strategy is chosen as it allows a company to generate volume sales
and achieve high market share; which will reimburse the low per-
unit return and later, increases the price gradually (Czinkota
&Ronkainen, 2010).
Furthermore, according to the analysis on Singapore social
environment, it can be concluded that Singapore penetration is
substantial as the consumption of clothing and apparels in
Singapore grew at 4.1% per annum which is relatively high, thus,
there will be a high level of demand for VOIR products as the
residents in Singapore are concern about fashion and latest trends
(Selvanathan & Selvanathan, 2007). Hence, it shows the markets is
very huge and even Voir introduces penetration strategy for its
products, a volume sales can still be achieved given the huge
demand in apparel and fashion industry in Singapore. Plus, it can
also deter the entry by new competitors who wishes to enter the
market as it will be harder for them to outdo Voir quality at lower
price. Furthermore, the apparels and garments industry of
Singapore also shows a favourable pattern; such as the growth in
womens wears market by 5.9% (Datamonitor, 2010). Plus, the
forecast of Singapore market until 2014 indicates there will be an
increase of 33.8% (Datamonitor, 2010). It means the market will
nourish and sustain for a long time and huge profit can be
generated even with penetration pricing strategy. However, it
should be noted that the price should not be very low as it can
tarnish the brand image of Voir if the low price is seen as reflecting
low quality by the consumers.
Hence, this penetration pricing strategy will allows Voir to
capture a larger market share in Singapore in short term period; thus
securing a price leadership position for the comparable products
and assuring a larger and sustainable market share in long term
basis (Calantone & Benedetto, 2007).
2.5 Place Strategy and Method of Market Entry
Voir will apply the Just-In-Time (JIT) concept for it logistic due to the
advantage of lower inventory cost as a result of lesser stock build up
(Pollard, Chuo, & Lee, 2008). For example, whenever the amount of stocks
is reduced to a certain level, the approved agents and retailers will inform
the manufacturer to add up the production. JIT method will allow Voir to
respond to the demand efficiently yet at a lower inventory costs.
One of the reasons for FDI in terms of full ownership by Voir into
Singapore is based on the government incentives offered by the home
country. The fiscal incentives such as the reduction of corporate income
tax to only 17% can be an opportunity that should not be missed by Voir.
Moreover, it has also been induced by the single-tier tax system where
income is only taxed at the corporate level (Guide Me Singapore, 2008).
Plus, as Voir falls under industrial goods and or textile, it is not subjected to
tariff in Singapore market like some other sectors such as
telecommunication (International Enterprise Singapore, 2010).
VOIR
Official Website
Source:AlexaNote: The ranking is based on 1 month traffic (daily visitors, page views) rank.
Table 1: Digital and Social Media: Top 10 Websites in Singapore
Next, VOIR used the penetration pricing strategy as this allows VOIR
to offer low price and thus, help the company to generate greater sales.
Moreover, VOIR will apply Just-In-Time (JIT) concept because they do not
have to deal with excess supply stock. Furthermore, to easily reach the
consumers, VOIR place their store in the centre attraction location such as
Orchard Road and popular shopping complex such as Vivo City Mall. In
addition, in order to adapt with today environment, it is important for VOIR
to use e-commerce as part of their business strategy. This gave an
advantage to consumers as they can easily access the products anytime
they want. Moreover, VOIR will have a full ownership FDI in Singapore.
VOIR use several promotional strategies such as sales promotion
(launching ceremony) and advertising.
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Warehouse Wing Tai Clothing Pte Ltd 0.4 0.4 0.5 0.5
Miss Selfridge Wing Tai Clothing Pte Ltd 0.1 0.3 0.2 0.2