International Marketing Project.docx

7/29/2019 International Marketing Project.docx

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GAUTAM BUDDHA UNIVERSITY

INTERNATIONAL MARKETING PROJECT

ON

SPORTS CLOTHING (MENS GEAR)

MANUFACTURING & RETAILING

Tj99

SUBMITTED TO: SUBMITTED BY:

Dr. RITU SHRIVASTAVA

ASST. PROFESSOR 11/PMB/033

SCHOOL OF MANAGEMENT SEC. A

GBU


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COMPANY

COMPANY & INDUSTRY

TJ99 is a startup clothing manufacturing company located in Gurgaon (INDIA). TJ99 sells a wide varietyof male-only clothing for sports such as cycling, racing, running, cross country skiing, cricket, footballand snowshoeing. These industries have grown tremendously in recent years, and the target market has anaffinity for clothing designed by and for fellow active lifestyle athletes.

The main common element of the products for sale is NO cotton. Cotton is the worst possible fabric to

make sportswear out of, PERIOD. Cotton absorbs and holds water which is undesirable because

when saturated with water clothing loses almost all of its insulating characteristics. It also becomes much

heavier because of the water weight.

LEGAL ENTITY & OWNERSHIP

The company is organized as a Limited Liability Company in the Gurgaon( INDIA) , and is currently

owned by single person. License will be taken from the respective authority. An additional equity

percentage of the company has been set aside for new investors.

PRODUCTS

TJ99's mantra is "keep dry." The following is by no means an exhaustive list of the products that are for

sale:

Shorts Long and short sleeve shirts Tights Water repellant shells Assorted fleece wear (jackets, pants, vests, hats, gloves) Socks Briefs, including wind briefs (with a wind resistant front panel)

PRICING

The firm is not concerned with setting high prices to signal luxury or prestige, nor is it attempting to

achieve the goals of offsetting low prices by selling high quantities of products. Instead value pricing is

practiced so that customers feel comfortable purchasing new clothing to replace the old, even if it is just

because they like the new colors and fabric. The pricing strategy also makes TJ99 products good gifts

for graduations, vacations or just because. The customized clothing will sell for 500 to 800 Rs. more

than the regular TJ99 logo clothing. The luggage will be priced competitively, offering a good value

against it competition.


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COMPETITION

Competition in the apparel industry is fierce. The direct competitors are large corporations, such asHurley, Volcom, Reebok, Adidas and Puma. All of these competitors have grown very large and are nolonger solely targeting the active lifestyle market. TJ99 will carve a niche by specifically targeting the

active lifestyle market.

Indirect competition is varied and includes clothing manufacturers of all types. We do not see thesecompetitors as much of a threat, as our market segment values brand loyalty and prefers brands that arenot mainstream.

COMPETITIVE EDGE/BARRIERS TO ENTRY

Only the biggest international apparel brands have rosters comparable to ours. Our design team will beworld-class. We have taken idea from international Apparel makers, experts which are major suppliersfor organic, fitted apparel. Startups in this industry rarely have the strengths and capabilities to matchours.

DEVELOPMENT

TJ99 will start lining up manufacturers for several product lines, including tees and walk shorts, whichwill be available for sale by late Spring of Year 1. In addition to product manufacturing, a website will bedeveloped, which will further increase product awareness. In Year 2, a retail shop is planned in Srilanka,Pakistan, Malaysia and European countries- Australia, California, America, Africa, Spain . By Year 3,five more retail stores will be opened in the Los Angeles and San Diego metropolis, as well as in LasVegas.

MARKET ANALYSIS

TARGET MARKET

TJ99 will target active lifestyle participants. The demographics of this initial segment are typically aged16 - 30 males and females that have grown up near urban areas, specifically near the West Coast, beachareas. These customers are active in skateboarding, snowboarding, surfing, motocross, and other extremesports or they closely relate to those that do participate in this lifestyle. This segment frequently shops atspecialty stores located in mall areas, and can easily be reached through the internet, as well as throughvarious events and magazines. This is a trend-setting group, and they influence other audiencesnationwide. As awareness in this initial market grows, secondary markets will open up across the UnitedStates and even internationally.

MARKET SIZE

The market size for the active lifestyle segment is large and growing at a tremendous rate. The surf wearmarket alone bring in over Rs.3000000 annually. The total market size that TJ99 targets is approximately50 million people and Rs 10000000 in sales a year. As this market is large, our company will target theLos Angeles and San Diego areas later, which are estimated to be at 2 million active lifestyle participants.


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SWOT ANALYSIS

Strengths: athlete endorsements, industry expert contacts, manufacturing experts , marketingpartnerships, expandable building space, location.

Weaknesses: new brand in established market, dependent upon outsourcing for production, formaldistribution channels being created from scratch.

Opportunities: recruit other athletes to endorse inexpensively, demos at various events and competitions(X-Games, Actions Sports Tour), forming distribution and marketing relationships, creating a new brandwith fresh designs.

Threats: competition, modest funding, manufacturers' ability to perform

STRATEGY & IMPLEMENTATION

PHILOSOPHY

TJ99 will offer high quality, stylish clothing made by athletes for athletes. Our clothing will help ourtarget audience look their best while doing what they love the most.

PRODUCT DEVELOPMENT

Product design has will begun, with manufacturing of some tees in progress. Design efforts have been ledby the management team, alongside our graphic designers. Additionally, we use fit models to ensure theapparel fits different body types as intended. We select manufacturers based on quality, price andreliability. Some manufacturing is done in, Malaysia, or, Srilanka with major products being produceddomestically.

INTERNET STRATEGY

TJ99 will employ an aggressive internet marketing campaign. This will be anchored by our onlinecommunity, where customers can interact with others, while posting videos and pictures of themselvesparticipating in their favorite active lifestyle sport. This viral marketing technique will not only attractnew consumers, but also specialty retail stores that have an interest in carrying our product line.Alongside the online community, an online store will be available for instant purchases to be made. Thiswill ensure that our products are always available, no matter what the customer's location may be.

MARKETING STRATEGY

Our marketing strategy will include targeted online and print media advertising. Major magazines, such asTransworld Motocross, Transworld Surf, and Transworld Skate are a few publications which we willregularly advertise in. Additionally we will use athlete endorsements, which will give TJ99 virtually freemedia coverage on television and in print when are our athletes excel. We will also have a strongpresence at major events, as well as hold various demos and contests to attract new customers.


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SALES STRATEGY

Our primary sales goal is to have our product available in all specialty retail outlets that focus on theskate, surf, snow, and moto markets on the West Coast. TJ99 will utilize independent sales reps to ensurethat each retailer has superior support, and that new product is being presented to every retailer. Once astrong brand image has been secured on the West Coast, we will focus on expanding sales to the rest of

the targeted area.

OPERATIONS

The team will focus on product design, sales and manufacturing initially. As distribution channels arelined up, the concentration will be shifted to marketing and online order fulfillment.

EXIT STRATEGY

It is the goal of TJ99 to follow in the footsteps of other well-known apparel companies, such as Volcomand Quiksilver. This will include an exit through either an acquisition by one of these larger companies,

which are well known to buy up-and-coming industry companies, or more preferably to go public throughan IPO. Volcom's IPO in 2005 successfully raised over $90 million, and has reached $125 million in saleswith annual profits of $25 million.

FINANCIAL PLAN

First year sales of Rs.15000000, with an annual growth rate of 25% will ensure that the company staysprofitable. With a 70% product margin, TJ99 will be able to accumulate enough cash to become attractiveas a takeover target by a larger apparel company, such as Quiksilver. Founder investments, as well asoutside equity investments, will help the company maintain cash reserves, while helping the companygrow at a rapid rate.

FUNDS REQUIRED & USE

The company will raise Rs.10000000 through founder investments, and is currently seeking an additionalRs.2000000 from an equity investor. These funds will be used to cover inventory, staffing, rent,production costs and general operating expenses.

COMPETETIVEESS

Tj99s competitive edge is its unsurpassed selection. It is able to offer the same complete selection as the

sport specific stores, but Tj99 has multi sports all under one roof. This creates a truly one stop shopping

option where a customer can stop by and have the most complete selection available.

As the demographics indicate, the target customers participate in more than one sport so the value in

being able to go to one store and find a anything you might want or need is of tremendous value. While

having a large selection is not an inherent sustainable advantage, for now there are no indicators that

would suggest that any other competitors are going to try to enter this same space. The retail space seems

to be content in not getting too specialized in any one or groupings of activities.


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INTERNATIONAL THEORY USED

Uppsala Internationalization Model

Stage 1: no regular export activities (sporadic export)In starting no exporting will be for sports apparels. These will be produced in home country itself and

developed, innovate further to make TJ99 international brand.

Stage 2: Export via independent representatives (export modes)After development in home country TJ99 will consider to go foreign market as discussed earlier and will

set up its own retail stores in many countries with the help of independent suppliers and other distribution

channels .retailing is the main and direct channel to go abroad.

Stage 3: Establishment of a foreign sales subsidiaryWhen TJ99 starts retailing it will develop its own sales subsidiary in foreign market in starting at some

places but later most of the places where we want to develop the business.

Stage 4: Foreign production/manufacturing unitsAfter developing its own sales subsidiary TJ99 will start manufacturing in other countries with help of

experts and the production team in targeted countries.

SOURCES:

http://www.morebusiness.com/

www.google.com
http://www.morebusiness.com/http://www.morebusiness.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.morebusiness.com/


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International Marketing Project.docx

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