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1.

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.

This report will outline the segmentation, targeting and positioning of


Voir as well as their product strategy, price strategy, method of market
entry, placing strategy as well as their promotion strategy in order to
ensure their decision penetrating the garments industry in Singapore is a
success.
2.0 Discussions

2.1 Target Market


In developing global strategies, segmentation and targeting is vital
for effective organizational planning. Segmentation is by selecting market
segments which the organization can target by developing specific
marketing mixes that adapt to each particular need (Restrepo, n.d).
Selecting a particular segment may provide a competitive advantage,
thus reducing costs. According to PEST analysis conducted earlier,
Singapore would be a profitable market to penetrate as it is one of the
most rapid developed countries with mature consumers economies
(Hashim, 2009). VOIR, with country-of-origin being Malaysia, also would
have a favorable trade with Singapore due to the AFTA agreement that
would reduce trade barrier risk and profit the companys global expenses.

Though having high purchasing power parity, with widening gap of


labour, the spending patterns are estimated to be moving towards either
cheaper goods or highly luxurious products (Datamonitor, 2010). This views
market brands to either choose to be affordable or luxurious to be
profitable in Singapore consumer market in future. High rising expenditure
towards clothing is predicted of about 33.8% and competition is strong
amongst independents which lack a differentiating factor (Datamonitor,
2010). Thus, being unique in niche market is vital to survive in Singapores
concentrated market for companys sustainability.

Referring to table 1 in (See Appendix 1), as there are varieties of


consumers in the market, detailed profiling and comparisons of target
segments could improve effectiveness and explicit depth in evaluation of
marketing mix (Restrepo, n.d). In this case, VOIR is targeted to consumers
the age of 15 to 30, especially female, ranging from students to full time
workers with medium income-earned. Previous analysis shows
Singaporean, while modernized, still holds on to traditional values (Crown
Relocations, 2011). It suggests that Singaporean still embraces aesthetic
values in daily routines, including choice of clothing. Thus, it would be
more appealing for VOIR to target Fancy Frolickers due to its countrys
cultural values that would appreciate a product more if it were to poses
additional aesthetic values. Visual aesthetics could also influence
customer perceptions and distinguish with other competitors (Bloch,
Brunel & Arnold, 2003).

Moreover, VOIR could develop comparative advantage in forms of


unique selling proposition (USP) that centralize product aesthetics in
Singapore market. USP is important in setting brands apart in being more
memorable in minds of customers (Lunkwinz, 2011). With USP of clothing
aesthetics centralized within their marketing mix, VOIR could gain
recognition by being unique, current and strong brand equity in the
market.
2.2 Positioning Strategy

Diagram above shows VOIR positioning that would be


strategized. Other competitors in Singapore market is position
according to the range of product prices and current position of
brand shares by value in Singapore (refer to Appendix 2).
VOIR will be strategized to be position at low prices which
makes it affordable to the target market, Fancy Frolickers. Having
VOIR at market price would make it accessible to all types of
consumers, especially the medium income earner. Robinson &
Fornell (1985) states that due to distribution advantages of lower
production cost, companies could have low product prices and
higher purchase frequency among consumers. By having
penetration pricing of offering low prices, consumers could be more
favorable of VOIR in the sense of attractive designs with lesser prices,
thus initiating more purchases shifting from MANGO to VOIR
products.
Moreover, VOIR are targeted to achieve high brand share by
values perceived by customers. Being the highest perceived value
in existing market is MANGO, thus making it the closest competitor
of VOIR in Singapore. Thus by analyzing the competitors, firms could
capitalize opportunities in business environment, thus having
comparative advantages that differentiate themselves (Brummer &
Badenhorst, 2006). MANGO has clothing line with concept of
quality, original designs and unified brand image that is adapt and
applied to all countries it globalized in (MANGO, 2011). In
comparison with VOIR, it could have an edge of product
adaptation as MANGO does not cater specifically to Singapore
demands but standardization worldwide. By adapting to explicit
aesthetic values in clothing viewed by Singaporean could make
VOIR be more favorable to target segments in market.
2.3 Product Strategy
VOIR Group is the leading brand owner and retailer of
womens fashion and casual apparels, shoes and accessories in
Malaysia. Besides womens clothing, the mens fashion and casual
apparels and childrens wear also key contributors to the business
(Voir.com, 2008). VOIR, Applemints and South China Sea serve the
ladies market, ranging clothing complemented by shoes,
accessories and inner wear. SODA, G&H and NOIR extend its
product offerings to cover the men's market with SODA Kids serving
the children wear's market (Voir.com, 2008). The wide variety of
VOIR Group's product offerings and market coverage provides the
Group with a competitive edge over its competitors.

Tangible Product Design and Quality


It is important for VOIR to design aesthetic value products
because the fashion market in Singapore apparel industry is
fragmented where there is room for large numbers of smaller
players in this industry (Datamonitor, 2010). Among the competitors
are Giordano, Gap, Cotton On, Mango, ZARA and etc. In addition,
the brand retailers in Singapore also continue to face stiff
competition from cheap imports from China. In order for VOIR to
differentiate its product from the competitors, its important for VOIR
to continuously come out with attractive design that suits the local
taste (Dowdy, 2008). Moreover, VOIR also offers quality apparels
and accessories with affordable price. Most of Singaporean is more
sensitive to product quality over price when they make a purchase
(Mohammed & Tan, 2002). Most Singaporean purchased apparel
from department stores and specialist outlets due to the variety of
choices offered and the quality of the apparel (Euromonitor
International, 2009). Furthermore, the younger generations in
Singapore are more brands conscious and can be seen wearing
the latest fashion (Wang, 2006). In order to attract the younger
generation, VOIR has to introduce new design to its clothing line
that follows the current trends.

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.

To ensure that Voir is easily reached by its targeted segment, it will


be distributed exclusively to the famous retailers and agents around
Singapore. For example, Voir products will only available at high
reputation mall like Vivocity and from retailers in famous shopping district
like Orchard Road area (Orchard Road, 2011). This move will help Voir to
create a strong reputation and being perceived as high quality products;
on par with other market players such as Zara and Marks & Spencer that
are sell there (Vivocity, 2008). Furthermore, the area stated is also a
concentration area and easier for Voir to reach the targeted consumers.
For example, according to Hong (2007), Orchard Road is ranked as
Singapores most visited place as it attracts more than 7 million visitors
annually. Hence, Voir will be distributed exclusively through retailers and
agents at the concentrated places such as Orchard Road and Vivocity
Mall.

As technology plays a very important role in todays world, Voir will


make use of e-commerce; where it will bring together buyers, sellers,
distributors and transaction payment processors in one single marketplace.
As Singapore is a developed nation, internet connection is everywhere.
According to Internet World Stats (2010), 77.8% of the total population in
2010 is accessible via internet and this allows Voir to reach its target
consumer effectively. Voir products will be sold over the web through its
official website. This permits the targeted segments as well as potential
consumers to view the products from Voir that appeal to them. However,
many may say that it will discourage consumers to buy as they cannot
feel and touch the products compared to the brick and mortar shop
(Jessica, 2009). However, web purchase will cut shopping time for those
who do not have much time to shop at the outlets and retailers and save
time. Customers can make their orders by clicking on the items and
products on the web and pay by a secure e-payment method via Visa
and MasterCard and the products will be sent from the nearest retailer.

Next, to determine the most suitable market entry method to be


used, it should depend on the aspects of Singapore market environments
such as political and legal environment. Therefore, foreign direct
investment (FDI) in the form of full ownership has been chosen as the
market entry method due to certain reasons.

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).

Plus, as Malaysia and Singapore both share quite similar cultural


environment, there will be no problem such as unfamiliarity with the
Singapore market. The commonness in the cultural and social
environment of the market benefits Voir to gain greater insights into
changing market condition and needs of Singapore market without
relying on local partner such as in joint venture strategy.

However, a full ownership FDI is riskier as it is subjected to host


country stability such as political turmoil. The future outlook of political
condition shows that Voir should not fear of any unfavourable change or
drastic alteration of regulations in foreign investment policy such as hostile
takeover by government will happen as far as the current situation
concerns and current ruling government is keen to keep in power
(Channel News Asia, 2011). Based on the given reasons, it can be said
that full ownership FDI is the most suitable market entry method for Voir
into Singaporean market.
2.6 Promotion Strategy
In order to effectively communicate to the potential
customers in Singapore market, Voir Group may adopt several
promotional strategies which may include sales promotion and
advertising.

2.6.1 Sales Promotion


Event Marketing

Event Marketing is a type of promotion where a


company or brand is linked to an event for the purpose of
creating experiences for consumers and promoting a
product or services (Fohnson, 2008). Voirs marketer had
come out with the launching ceremony to introduce their
products offerings to the customers.

(i) The Launching Ceremony

The launching ceremony of Voir Group would be held


at their largest store in Ion Orchard Shopping Mall which is
situated in Orchard Road. Ion Orchard is being selected as
the best place for their products launching as it is regarded as
the largest shopping mall along Orchard Road in Singapore
city that is regarded as Singapores shopping street
(Singapore Shopping Guide, 2011).

In addition, the first 300 customers that purchase any


clothes, apparels or accessories worth more than SGD 50 on
the launching day itself would receive a free casual and
stylish T-shirt with Voir brand logo being printed on the T-shirt
to remind the customers of the existence of the Voir Group at
all time. The T-shirt represents a walking advertising tool for
Voir Group as when the customers wear it outside, it may
attract the other potential customers to know more about the
new brand penetrating the market.

VOIR

Figure 1: A sample of free casual and stylish T-shirt given to


the first 300 customers of Voir clothes, apparels and
accessories.

The purpose of carrying out the launching event is to


create brand awareness of the Voir Group. Publicity can be
gained through these people because there will be reviews
about this event through online, medias and positive spread
of word-of-mouth. This event can be known as another
advertising tool to create brand identity and providing
association of Voir Groups products offerings with unique
design in the perception of target market.
2.7.2 Advertising
i) Celebrities Endorsement

Rachel Kum, a beauty pageant titleholder who won the Miss


Singapore Universe 2009 Title, has been chosen as a spokesperson
of Voir Group. She is very influential in introducing new trend in the
clothes, apparels and accessories market (Miss Universe
Organization, 2010). She would appear in most of the Voir Groups
advertisements. Bailey (2007) has stated that celebrities
endorsement will enhance trustworthiness of the advertisements,
recalling of message and present the brand with a positive attitudes.

Figure 2: Rachel Kum


ii) Magazine

Advertising would also be done through print ads published in


the magazines. Magazine is selected as it has the ability to reach a
specific target audience, hold high reproduction quality and long
life span (Belch et al., 2009). Voir Group has selected Juice
magazine to advertise their clothes, apparels and accessories.
Juice is the best option as it is Singapores most preferred fashion
magazine among men and women, and has over 100,000
estimated readers in Singapore itself (Media Satu Group, 2007).

Figure 3: Print Ads published in magazine


iii) Internet

Official Website

Internet has also been selected as one of Voir


Groups advertising medium as it is interactive and has
the ability to target very specific group of individuals
with a minimum waste of coverage (Belch et al., 2009).
Official website of Voir Group would be set up to
provide information such as company profile, contact
information, products, warranty and service,
promotions and events. Moreover, the website will be
creatively designed to enhance the companys image
and lead to repeat visits which subsequently results in
repeat purchase.

Facebook

Voir Group will also be placing advertisement in


Facebook as it is the most visited website in Singapore
(Table 1). Banner ads, specifically side panels, will be
used in this website where it is targeted to have on
average 200 clicks per day all around Singapore
(Figure 4). By doing so, it might encourage brand
switching and subsequently become the most
preferred brand of clothes, apparels and accessories in
Singapore.
Top 10 websites in Singapore: November 2009
Ranking Internet site Description
1 Facebook Social networking site
2 Yahoo! Search option, chat rooms, free emails
3 Google.com.my Search engine
4 YouTube Video sharing
5 Google.com Search engine
6 Blogger.com Blog site
7 Windows live Search engine
8 Friendster Social networking
9 Wikipedia Online encyclopaedia
10 Microsoft Network Search option, news, free emails, shopping

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

Figure 4: Facebook advertisements (Side panels)


3.0 Conclusion
VOIR products are being marketed as low cost and quality apparel
for the teenagers and the early working people. Although VOIR offers low
price products, however, it is important to maintain the quality level as
Singapore consumers are very sensitive towards quality rather than price.
In order to penetrate to Singapore market, VOIR has to offer a variety
range of products and frequently come out with new design since
Singapore fashion market is already fragmented.

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.

In conclusion all these factors need to be considered as it is highly


important for it to succeed in penetrating and capturing the Japanese
market.
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Appendices

Appendix 1: Market Segmentation for Voir Group

Bargain Buyer Fancy Frolicker Prominent


Purchaser

Benefit Hunt for bargains Seeking casual and Prefer elegance


sought and cheap stylish designs in and exclusivity in
prices in clothing, clothing garments high class clothing
pay less for affordable and pay much
attention to prices. attention to brand
brands. names.

Lifestyle Simplicity in Focus to products Attention seeker,


needs, sceptical aesthetic values, high self-esteem
and late within acceptable and seek
adoption of new price range (Yalch recognition from
comings (Mattila, & Brunel, 1996) others (Huitt, 2007)
Karjaluoto &
Pento, 2003).

Income >SGD1000 per >SGD1400 per > SGD 2400 per


month month month (MYR6000)
(*assume
(MYR2500)
MYR 2.5: (MYR3500)
SGD 1)

Loyalty Low brand Moderate brand High brand loyalty.


stages loyalty loyalty. Will choose Will continue to
brands which purchase brand
Will switch
appeals to them as when perceived
brands for
stylish and trendy. as high quality by
bargains.
others.

Table 1: Segmentation into Singapore market


Appendix 2: Clothing and Footwear Retailers Brand Shares by Value 2007-2010

% retail value rsp excl sales


tax Company 2007 2008 2009 2010

Royal Sporting House (RSH)


Mango Ltd 2.0 2.2 5.3 5.0

Giordano Originals (S) Pte


Giordano Ltd 3.8 3.2 2.9 2.8

Royal Sporting House (RSH)


Bebe Ltd 1.4 1.4 1.4 1.3

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

Source: Euromonitor International


Appendix 3: Product Variable
Appendix 4: Annual Disposable Income per Household (Current Value) 2006-
2010

Source: National Statistical Offices, Euromonitor International.

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