Table of Contents
Marketing Mix
It represents the procedures used by a company to make their name known, to promote their brand and their products. Marketing mix is composed by Price, Product, Place and Promotion.
Price
The price of a product is important in every domain of activity, especially in the clothes stores. Hollister’s prices in USA (America being the home country of the company) are between 10$ for a T-Shirt and 300$ for a winter jacket and they are offering a free delivery service which is a benefit for the products because nothing extra is added on their price. The average salary for a US worker in terms of a full time 40 hours job is around 45000$ per year. In Brazil the average is around 7000$ which represents a 1/6 of the US citizens wage. Hollister will need to adapt their prices to the new market and this means the products must be cheaper than in the USA, they can leave off the winter items which are the most expensive ones and they can concentrate more on the summer outfits.
Product
Hollister is active in the fashion domain and they are selling a wide range of items for male, for female, for every kind of person on this planet. The products which are for sale at Hollister in all the countries where they have a store are:
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- Tops
- Bottoms
- Jackets & Coats
- Dresses & Rompers
- Bralettes
- Bras
- Undies
- Sleepwear & Lounge
- Swimwear
- Shoes & Accessories
- Fragrance & Body
The list of products it is impressive, fact which will have a great impact on the market for the future buyers. It doesn’t need to be changed it is suitable for Brazil, with only two items which should be excluded from the list of products, Jackets and Coats because the temperatures in Brazil are always over 30 degrees Celsius, so it is no need for a winter item.
Place
The place which is chosen when a new market is attractive for a company can affect the whole future of the company and it could make them rich or it can make them to fail. As a new clothing distributor, Hollister, the best areas are the main cities like Sao Paolo or Rio de Janeiro and the cities with a big coefficient of tourism for a better start and a boost in sales. Other option could be to open a store in a city where the rent is cheap, the materials are easy to get, and the spending of the business are reduced and to give everyone the option of buying online and all the country will be covered.
Promotion
To promote a company on a new market is difficult but because of the technology and because Hollister is a big and well-known brand this it will be an advantage for them. Hollister can organise some campaigns before they will open the store with some videos and photos about their company or offers on the opening day like:
- A free T-shirt when you buy two pairs of trousers
- A free pair of glasses when you buy products over 50$
They will gain some popularity straight away and by multiplying this offers and campaigns they will attract more and more customers.
The Marketing Plan
It represents the strategy of accessing a new market, some of the points which a company needs to focus on are choosing the target customers, USP and a distribution plan.
Target Customers
Hollister as a clothing brand is known in USA by most young people with the age between 16 and 35 which represents many of their sales. Following the previous sentence, in Brazil the average age is around 32 years which makes the entrance on the new market much easier because most of the population will be able to buy and to use Hollister’s products. After they decided who is the targeted audience Hollister will need to create some sort of advertising to attract the attention of the people in front of the other companies which are already on the market.
Unique Selling Proposition
Because nowadays are too many companies doing the same thing, a good idea is to make your company unique. USP is a way to make a company unique and it is a great way to attract the customers on your side to buy or to use your products. Hollister is missing this even from USA or Europe, but they can try to do it in Brazil, not just a way of promoting themselves in Brazil and as a new way of themselves all over the world. But do create something like that you need to hire an expert team, creativity and a lot of imagination and it is an investment which can be risky.
Distribution Plan
This plan is the way of selling the products, direct or using a distributor and how will the customers get in touch with the company. The best way on a new market is to sell the products directly to the customers and on the online platforms using company’s website because the customers will gain feel secure about what are they buying and it is a good way to receive feedbacks from customers this way to be able to adapt or to change the products to make the buyer happy and to make him to come back for some more items.
With this analyse of the main point of the marketing mix and some important steps in the marketing plan this report represents an opportunity for Hollister to open their gates on a new market in Brazil.
References
- Anon, (2019). [online] Available at: https://www.hollisterco.com/shop/us [Accessed 6 Jan. 2019].
- Entrepreneur. (2017). Unique Selling Proposition (USP) Definition – Entrepreneur Small Business Encyclopaedia. [online] Available at: https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp [Accessed 6 Jan. 2019].
- https://www.hollisterco.com
- https://www.statista.com/statistics/254361/average-age-of-the-population-in-brazil/
- The Balance Careers. (2018). How Much Is the Average Salary for US Workers? [online] Available at: https://www.thebalancecareers.com/average-salary-information-for-us-workers-2060808 [Accessed 6 Jan. 2019].
- The Economic Times. (2018). Marketing Mix – What is Marketing Mix? Marketing Mix meaning, Marketing Mix definition – The Economic Times. [online] Available at: https://economictimes.indiatimes.com/definition/marketing-mix [Accessed 6 Jan. 2019].
- Tradingeconomics.com. (2018). Brazil Real Average Monthly Income | 2019 | Data | Chart | Calendar. [online] Available at: https://tradingeconomics.com/brazil/wages [Accessed 6 Jan. 2019].
