Market Entry Of Hui Li Shoes Into Singapore Marketing Essay

Market Entry Of Hui Li Shoes Into Singapore Marketing Essay The International marketing which is defined as performance of business activities including price, promotions, product and distribution decision and then the task of marketing research is to systematically collect data, process it into valuable information which is important for getting marketing decision. The information of the host country on political stability, cultural attributes and geographical characteristic are required for sound for foreign markets. Information on economic general data on level of growth, inflation levels, business cycles and the levels of competition in that particular industry. These directly affect the economic viability of the product, since some of the factors affect profitability. This report examines possible feasibility of plan for china shoes company Hui Li entering the Singapore market. It indicated that despite previous successes for the company in china market significant strategic alterations to its target segmentations and marketing mixes as well as supply and distribution operations will be necessary for success in entering Singapore. It suggests that the future economic growth of the Singapore market and considering the position of international competitor already operating in the market that it is a critical objective for the company to enter the market in order to maintain long term growth of market 2. Background of Hui Li 300000876508128399649319422 During the 1970s, The Ping Pong model since 1976. By Hui Li brand sneakers were the popular shoes in China its bright and clean design a sharp contrast to the drab homogeneity of Communist China. Continuing into the 1980s, the shoe remained a status symbol for Chinese teenagers who were well-off enough to don a pair of famous Warrior models Hui Li. But as China opened up economically, so did the marketplace for sneaker brands. when the 50 year-old Hui Li name was still popular in China, it was no longer well-known as one of the premier Chinese brands. Instead, Hui Li shoes became the shoe of the working class worn by poor construction workers, elderly women and rural citizens looking for a pair of cheap, durable shoes, inexpensive brand name and mark-up. Fascinated by this story, a graphic design student from China recently released a photography book which features people wearing Warriors in various areas of China. Each copy of Book of Warriors comes with a pair of Warriors models by Hui Li. The author, Shumeng Ye, wishes to use the Hui Li brand to tell the story behind the shoes and represent a varity side of China. Not either the industrial power and economic power, but the daily life of a country with its own distinctive sneaker culture. A pair of Hui Li shoes was very expensive at the 1960s, and was popular trendy for young people at that time. Nowdays this old Chinese brands to make their comeback. 3. Market Entry of Hui Li Shoes into Singapore 01300000206900126032684190582 The main reason for entering Singapore is to increase sales and profits. Building up a branch in other town, city or state, entering a foreign market is mainly part of the relentless quest for business expansion and growth. Hui Li has a very useful business model and has gained market share in China market, the only way break into more wealth country in Asia. Hui Li targets young people. In Singapore, many young people like to wear designer, including working adults, sportspeople, schooling children, business people and the elderly. People in Singapore like to spend money on quality products, there have more dispose income, and they like to try out new products, especially from China, Japan, Korean, the USA and India. Also, there are not many shoes companies from China to Singapore; therefore, there is a possibility to market this new product brand in Singapore as the consumption size of market is actually growing. There are a range of potential routes by which Hui Li could enter this market. Ideally they have to pursue a strategy of equity investment have all control of its operations within Singapore. Whilst such a strategy carries the greatest risk it also provides the greatest reward and, most crucially, protects the integrity of the business and the brand. Hui Li has the financial resources, expertise and experience to do so and has proficiency in entering competitive market. As the decisions, which they make will directly affect every part of their business for many years in the future to Singapore. but, this is important in the decision-making process as firms assessment of the cost and risk associated with exporting their product into Singapore market. Exporting will be the best entry mode for manufacturers like Hui Li that wants active penetration of Singapore markets will look to direct export channel. Direct export has contained higher startup costs, greater information requirements and higher risks. They will choose Singapore agent channel and branch channel. Franchising is a form of licensing in which a company licenses a business system as well as property rights to an independent company or person. 4. Problems that could exist in Singapore for Hui Li Rivalry is placed in a central role for entering Singapore market. This means that company basically hastocompeting in industry effectively. It is obvious that global and local companies make intense competition for Hui Li. competitor most compete at same level of price and quality for leather shoes industry in Singapore including VANS from USA, TOPMAN from UK. The successful competitors has already got amount of market share and brand loyalty with consumer tastes over period of time. Hui Li has to be well prepared and well known Singapore market. Otherwise they May lose by those competitors. The market of china is slightly different from Singapore market, so that Hui Lis shoes may not be preferable for local consumer preferences. Consumer may only recognize the product which already established this market over decades. It may take time that makes them to accept new brand like Hui Li. Also brand loyalty has already established by their global and local competitor. It will be more difficult for them to switch their favorable brand easily. Moreover the brand reputation in Singapore is not as good as other international brand. The consumer may not choose their Hui Li product in first place even with high quality shoes. As the initial capital required for Hui Li to establish branch in Singapore, it will be huge amount of fixed and operation costs. Culture may influence on consumer behavior. Segmenting in terms of culture factors, Singapore also segment overall society in smaller subcultures. These subcultures division are based on variety sociocultural and demographic variables. Such as nationality, religion, geographic location, race, age and sex. Subcultures may have problem for Hui Li that loss of focus on to market targets. Because Singapore has multi combinations of nationalities like China, India and Malaysia. The Hui Li must determine whether the beliefs and customs shared by members of a specific subculture make them desirable choose for special marketing attention. Identification of subculture is complex in segmenting market particularly in countries like Singapore. They only enable to focus on sizable and natural segments as different members of a specific subculture have different preference of Hui Li shoes. 5. Environmental analysis of Singapore market 5.1 cultural analyses Geographical Setting A. Location Southeastern Asia, islands between Malaysia and Indonesia B. Climate Singapore is generally hot and humid. Its warm and humid year round, with the temperature almost never dropping below 20Â °C (68Â °F), even at night, and usually climbing to 30Â °C (86Â °F) during the day. C. Living condition Singapore has a very high standard of living for expatriates and the city has one of the best living conditions in Southeast Asia. Singapore people have more money to buy consumption goods. 5.2 Competitive analysis for Red Dragonfly SWOT factors Strengths good quality price affordable designed long lasting Weaknesses not international brand not popular Opportunities new affordable spending power of people in Singapore is high people like to try new things, new designs something exclusive Threat competition from leading brands price possible copying from others too many other shoe companies in Singapore 5.3 PEST FACTORS Political Environment Spore govt is very stable No problems with conflicting rulers /parties/groups/government Gets along well with other countries International countries like to promote their products in Singapore Economic Environment Spores economy is very stable Everyone has a job People in Singapore like to spend money Good jobs and good income Good education / almost everyone is educated Business-oriented Social Environment (social activities , social clubs , lifestyle of Singapore people, foreigners, ) People in Spore love clubbing, parties, gatherings Lifestyle is very rich -Many activities in many clubs, community center Multi-racial , harmony Many foreign mixture of people Mixed society Social media/interaction/very socially connected Technological Environment (internet, globalization, modernity, techno, phones, communication) People in Singapore are techno-savvy Internet is available everywhere Every home has Internet connection Most people use WIFI Latest hand-phone / smart phone technology Lots of people use social media eg. Facebook, twitter, etc Use hand-phone for everything internet, communication, discussion, conference, meetings, schools, etc The environment that needs further study will be the economic and social environment in Singapore for shoes. 6. Evaluation of the Marketing Mix (the 4 Ps) for possible adaptation Product Fashion designed with high technologies Popular in China Good quality Price Affordable price Priced for quality Priced for Brand Affordable for the Singapore market Promotion Visual merchandising such as store design and layouts Poster Newspaper advertisements / magazines Place -Located their retailer store at orchard road -Main shopping mall -Local partners 7. Conclusion of Analysis I think that Hui Li has perspective future in SG market. According to cultural analysis, we have brief knowledge about Singapore. The living condition of Singapore has a high standard of living. People like to buy more product, Hui Li may possible to entry this market to increase sales. And the climate has indicated that Hui Li need to decide what type of shoes can meet consumer needs in order to weather of generally hot and HUMIND in Singapore. Competitive analysis Hui Li will go through external and internal factors. There is no question that the phenomenon makes both opportunities and threats to Hui Li who looking for compete successfully in the international market. There is growing power for developing nations where Singapore presents significant business opportunities for Hui Li in entering. Local people would like to try new brand product with high quality and affordable price, even the brand is not international. However, most of competitors are international brand that Hui Li have to compete with them for market share and consumer loyalty, they need to differentiate their shoes to meet people needs. Finally the deciding mainly depends on an analysis of both external environmental conditions. Pest has provided general ideals that macro environment of Singapore. The factors indicated that economic of Singapore is growing and people have higher disposable income, political environment has encouraged foreign investment with lower tax rate. Society in Singapore is harmony with multi-racial foreign mixture of people. The macro environment for Singapore hat great impact for Hui Lis entering. The analysis of marketing mix in Singapore market has significant effects on Hui Li entering. And it is reasonable to recommend that a well know brand name has major impact on strategic planning process. All of 4p help Hui Li to build their brand successful in Singapore. Hui Li may local their retailer store at Orchard Road and main shopping mall. Orchard Road is main center for peoples attention and shopping around. The brand recognition can increase by locating this market place. The ownership of the Hui Li brand can cooperate with local partners will be able to help them access the Singapore distribution systems more effectively. They may promote main emphasis on visual merchandising such as layouts of store can be necessarily impact on communication tools with consumer and advertising on TV and newspaper. As the price of leather shoes are affordable and the product is well designed with quality one. All of analysis indicted that it is great opportunity for Hui Li to entry this ma rket. 8.Strategic Marketing Plan Marketing Plan for Hui Li Shoes 1 2. 1.Marketing objectives A. Target market B. Expected sales year 20 C. Profit expectation year 20 D. Market penetration and coverage Adaptation Core component B. Packaging component C. Support service component A. Adults, all ages B. 2 million dollars C. Three hundred thousand dollars D. Advertising, lower prices Main shopping center Such as: Orchard Road, Bugis. Well-designed shoes with high quality Delicated package Feedback 3. Promotion mix Advertising Objective Media mix Message Costs Sales promotion A. Objectives B. Coupons C. Costs Other promotional methods A. Promote products B. Magazine and TV C. Fashion product and high quality D. 40000 Promote new brand Newspaper Discount for the new buyer C. 50000 Poster 4 Distribution from origin to destination Port selection Origin port Destination port 2.Mode selection AD/DIS Air carrier packing A. Marking and labeling regulations B. Costs Documentation required A. Bill of lading B. Dock receipt C. Air bill D. Commercial invoice E. Proforma invoice F. Shippers export declaration G. Statement of origin 5.Insurance claim China port Singapore port A. AD Quick and convenience DIS may not get permission to entry and quotas A. Shoe box B. 10000 All needs 5. 10000 5 Channel of distribution Retailers Type and number of retail stores Retail markups for products in each type of retail store Methods of operation for each type 5 center stores B. Store Cash and credit card Scale of operation for each type Import and exports agent Warehousing A. Type B. Location D. Large A. Stores B. Bugis Orchard Road 6 Price determination 1.Cost of the shipment of goods 2.Transportation costs 3.Handling expenses A. Loading and unloading charges 4.Insurance costs 5.Customs duties 6.Import taxes and value-added tax 7.Wholesale and retail markups and discounts 8.companys gross margins 9.retail price 1. 10000 2. 15000 A.3000 4.30000 5.4000 6. 7% 7. 20% 8. 30% 9.50-100 7 Methods of payment 1.Cash in advance 2.Open accounts 3.Consignment sales 4.Sight, time or date drafts 5.Letters of credit Cash in advance Open account