Answer to Question #200026 in Management for Asutosh sabat

Question

Mr. Ramesh of unique industries is contemplating to enter men's top end shirts category. The company already has a brand “clinger” in the middle segment (Rs350-700). The brand is popular amongst the target audience. Having got the volumes, Mr. Ramesh now wants to play the volume game and enter the top end (Rs700+) category. He knows there are some formidable brands like farow etc.. They are the pioneers of branded shirts in India. Mr. Ramesh has decided to keep the brands name as “clingers gold”.. Unique industry is simultaneously entering the readymade trousers market and shoes market. Mr. Ramesh has decided to keep the same brand name “clingers” to leverage the success of the brand name to two new categories. i. Do you think the brand name “clingers gold” is right for the top end segment? Justify your answer. ii. Which factors do you think need to be studied before making such entry in the market

Answer 1

The brand name “clingers gold” is not is not right for the top end segment. This is because the brand name is still new in the market and most of the customers aren’t well versed with it. “Clingers gold” brand is extremely unique that customer cannot be able to realize what Mr. Ramesh offers on the market. The brand will not be able to sustain the market competition from formidable brands like farow. Since the farow brand is well versed with the top end segment in the market, “clingers gold” brand will face challenges in market strategizing. Its because most of the top end customers have not heard of the brand but are well versed with clingers brand. Consequently, the volume game cannot be able to help Mr. Ramesh to win the hearts of the top end customers (Zhang, 2020). He will struggle in gaining customers’ reputation with the new brand name. Therefore, Mr. Ramesh would have introduced the new brand name in the middle segment to gain customers’ reputation before moving to an already developed market.

           Some of the factors to be considered before entering in the new market segments are the size and growth of the segment, market attractiveness, customer needs and reputation, customer behavior on the new brand and product development. Therefore, Mr. Ramesh could have developed his top end t-shirts before entering the top end market segment to attract large pool of customers. French (2017) assets that analyzing the market size and growth would also help him defining the market opportunities and gaps. An entrepreneur must analyze the market competitors, their market share and strength. Definition of customer needs and preference is also an essential factor in segment switching as an entrepreneur understands what the customers need. In a nutshell, the target volumes related to middle segments does not guarantee entrepreneurship success with the top end market segment. A successful entrepreneur must set product objectives, identify new customer segments and execute effective market planning.

 

 

 

References

French, J. (2017). The importance of segmentation in social marketing strategy. In Segmentation in social marketing (pp. 25-40). Springer, Singapore.

Zhang, J. X. (2020). Decreasing utilization and increasing prices of brand-name oral contraceptive pills: Implications to societal costs and market competition. Plos one, 15(6), e0234463.