Marketing Plan for a Shoe Company

The report on the marketing plan for a shoe company intends to analyze the industry before the introduction of a new product for training in the United Kingdom market. The study investigates the environment through the political and legal, economic, socio-cultural, and the technological forces to assess the potential of the UK platform for the business. It establishes both the possible opportunities and the threats existing in the market through the SWOT analysis. The report reviews the state of competition in the industry for training shoes. The position of the firm is essential since it in a good level of utilizing the available opportunities to enhance their performance of the sneakers business in the UK.

The marketing objectives act as the driving force of the firm in achieving their goals prior to the launch of the new products. The company takes the initiative of developing strategies that can facilitate attaining the aims of promotions. The approach outlines the target population of potential consumers as the youths for the Hypebeast products while minimizing the costs of production to regulate the prices of the commodity in the market. The report develops a recommendation for the new trainer sneakers according to the analysis of the essential factors that may influence their performances.

Marketing Environment

PEST Analysis

Political and legal Forces

Political stability

Tax guidelines

Trade regulations

Safety regulations

Employment laws

Economic Forces

Inflation

Interest rates

Economic growth

The rate of unemployment and policies

Business cycle

Socio-cultural Forces

Customer demographics

Cultural limitations

Lifestyle attitude

Education

Technological Forces

Technological advancements

Lifecycle of technologies

Role of internet

Government’s spending on technology research

Political and legal Forces

Political stability

The main political parties in the United Kingdom include the Labor as the left-wing which is public democratic and socialist that emerged from the trade union movement. The Conservative outfit is the center-right that fosters the traditional cultural values, free market economy, and a stronger military. The Liberal Democrats party is a centrist that discouraged the war on Iraq, moderated the pro-European, and emphasized on powerful civil rights. The country has average political stability due to the absence of terrorism which develops the perception of the probability of the government being overthrown through violent means.

Tax guidelines

In the United Kingdom, the corporate tax system applies to the limited companies and other entities such as the associations and clubs. However, the duty regime does not hold to the individuals, partnerships, trusts, or the landlords of non-resident firms that obtain profits from rent in the country. Thus, the taxpayer has the responsibility for the self-assessment to determine their taxable incomes despite the application of relief, adjustments, or the regulations of anti-avoidance (Cobley 2017, 13). The corporate remittance system is well established, but it faces progressive modifications for strengthening. In 2010, the coalition government created the corporation tax with the aims of enhancing fiscal stability, attract investment, and develop a simplified and more rigid system.

Trade regulations

The footwear in the UK requires appropriate labeling for the indication of the main material used in making the upper sock and lining while the outer sole displays are in pictorial symbols. The shoe company has the obligations of at least marking one item in the pair of sneakers while packaging the products. However, the regulation applies to all footwear except the second-hand, protective, children’s wears, and boots with asbestos. In the UK, the manufacturer or the importers are liable for ensuring the accuracy of labeling to avoid misleading information to the consumers.

Safety regulations

Businesses in the United Kingdom and the national authorities have the responsibility of ensuring that the products available in the market are safe for the consumers. The entities can also inform the customers of any risks linked with the utilization of their goods (Kolios and Read 2013, 5025). Moreover, the companies should be capable of tracing the presence of dangerous items in the market to eliminate risks to the users. Therefore, the appointed national authority conducts surveillance in the industries to monitor the application the application of safety rules by businesses and manufacturers, check the condition of products, and implement the appropriate sanctions.

Employment laws

The national legislation determines the regulations that distinguish the responsibilities of workers and their rights. The law requires the employer to stipulate the job titles, the rate of payments, leave entitlements, disciplinary measures, and other essential amenities. The terms of the agreement will facilitate the recognition of the trade unions for the workers where the can apply for the central arbitration committee. In the UK, the employers are only allowed to create work councils if they govern more than 50 people in the business. The occupation laws protect the staff against discriminations due to their disability, race, age, marital status, or gender. The termination of employment requires the provision of relevant notice unless the dismissal arises from gross violations of some fundamental rules. Moreover, business has the responsibility of concealing the information and privacy of their workers according to the data protection Act 1998.   

Economic Forces

Inflation

The anticipated rate of escalation in the UK market is 2.8%, but in February it fell from 3% in the previous month to 2.7 percent. When the prices of products increase at a slow pace the inflation maintains a lower record. However, the rate of price buildup for the footwear and clothing were highest at 3.9 and 3.4 percent annually. The Brexit influenced the fall of the sterling currency that affects the cost of living for families in the UK by lowering the levels of spending power.

Interest rates

The members of the committee of monetary policy for the Bank of England declared an instantaneous hike of the costs of borrowing. The decision would discourage the businesses from seeking financial support from the financial institutions due to the higher rates of interest. Moreover, the low-income families who often survive from the cheap credit would be affected by the accelerated charges. Therefore, the portion of households with debt distress will increase and affect their expenditures on non-basic products such as the new sneakers training.

Economic growth

The economic progress of the UK has been lagging behind other major countries lately due to the slow rate of development. The Brexit vote triggered a sharp fall in the pound which lowered the United Kingdom’s production below the previous estimation since the rise in prices minimized the ability of the consumers to spend. The growth in business investments also declined in the last quarter of 2017 with negative net trade contributions.

The rate of unemployment and policies

The labor force survey indicates the level and rate of unemployment in the UK at 4.3 percent for the population above 16 years. The number of people without work tends to increase every year while a higher portion is absorbed in the market. The policies such as monetary guidelines can facilitate the reduction of the rates of unemployment by cutting the interest charges to increase the aggregated demand. The implementation of education and training can minimize the structural joblessness while the flexible labor markets influence simplicity in hiring and firing workers. Moreover, the geographical subsidies will attract investments of firms in the depressed regions to improve mobility and reduce unemployment. 

Business cycle

The economic activities in the UK often fluctuate according to some factors such as the government policies, advancements in technology, and the state of investments. A consistent increase in the GDP improves the consumer spending and the production of businesses while enhancing the sales of products (Gupta 2013, 37). In the UK firms experience a boom towards the end of the financial year while facing recess periods at the initials stages.

Socio-cultural Forces

Customer demographics

The UK market has various groups of social classes such as the grade A of the upper middle brand that consists of the professionals, administrators, and the higher managerial with powerful spending. The classification that involves both the skilled and semi-skilled manual workers has moderate expenditure levels. The lowest class composes of the poor, widows, and state pensioners with low incomes that depend on credits to purchase essential goods (Pospisilova 2013, 14). 

Cultural limitations

The United Kingdom has several immigrants that create diversity in cultures that affect the community spirit and social trusts. The social norms develop barriers to the use of some footwear that may negatively affect the launch of the new trainers in the market. The firm can focus on the more recent of sneakers to eliminate the trace of the initial iterations of the use of shoes.

Lifestyle attitude

The people tend to think about most essential issues such as healthcare, housing, and money that acts as the main source of anxiety for all age groups. The population is comfortable with the relations between their life and work but some are adjusting to demands for the lifetime after education (Pospisilova 2013, 20). However, the women are more obsessed with trainers than the men and they can be the most appropriate target consumers during the launch of the new sneakers.

Technological Forces

Technological advancements

The UK is one of the most developed countries in the world especially in telecommunication where a higher portion of the population has access to the internet. The country is experiencing rapid progress with innovations and increased automation of products. The businesses in the UK market must adapt to the advances in technology to attract the consumers.

Lifecycle of technologies

The technology undergoes stages of existence from longevity to getting shorter at a faster pace. The utilization of the machinery requires implementation of the long-term objectives to enhance the operation of the business (PwC 2016, 9). The lifecycle technology facilitates access to the leading technical knowledge and solutions with limited investments.

Role of internet

The computer network acts as the source of information both locally and internationally. The new shoe firm can embrace the power of the internet to reach the potential consumers of their products within short periods. 

Government expenditure on technology research

In the UK, the higher education funding council, investigation councils, and government departments are focused on supporting the engineering, science, and technology. The executive makes contributions to the advancements through innovations that may attract investments into the country. The business can utilize the government’s support in technological research to enhance their products in the market.

SWOT Analysis

Opportunity

Weakness

Integrating of technology into the new products

Implementing the street fashion designs

Developing new clients

Providing education workshop to create fitness awareness

Sports conditioning experience

Trainer sneaker shoes are expensive

Rivalry from the competitors

Opportunities

Integrating technology into the new products

The normal shoes for training often cause injuries to the users and the company can embrace the advancements in technology to enhance the performance of their sneakers. People tend to prioritize comfort over the functionality of the footwear, but the new product in the UK market can emphasize on stability and support. The firm can manufacture new trainers with less probability of developing casualties in the sporting activities to attract more potential clients (Wiggin 2001, 141). The technology can facilitate the marketing strategy of the shoe company to increase production in the UK market against their rivals.

Implementing the street fashion designs

The largest population in the UK market consists of the youth that is attracted by the stylish models. The street fashion can be the relevant investment for the shoe company since it is the most sought in the industry by potential consumers. The hypebeast sneakers can be appropriate products for the shoe in the UK since it is attractive, cool, has matching gears, the collection can be resold easily, are exciting to wear them, and are the talk of the town in the streets.

Developing new clients

The shoe company with new trainer sneakers has the potential of obtaining consumers by emphasizing on the satisfaction of their customers. The firm can offer after sale services such as free delivery of products to the customers, provide little training on the use of their goods, and repair or replacement of damaged items.

Providing education workshop to create fitness awareness

The firm can offer a series of seminars to consumers to establish the brand for the new trainers in the market. The employees can focus on providing training to the members of the health clubs as a necessary training in the sports performance while marketing the products for their business.

Sports conditioning experience

The firm can employ the sporting experience it has in enhancing the effectiveness of the new trainers in the UK market. The staff with fitness knowledge can implement their skills in the shoe company business to attract loyalty from their clients. The business can develop interaction with sports firms to provide information on the need to attain their fitness objectives.

Threats

Trainer sneaker shoes are expensive 

Trainers’ sneakers shoes are more expensive and seem no to make any difference from others since they still cause running-related injuries. The user may prioritize on normal footwear that cheaper but serves the same purpose.

Rivalry from competitors

 The industry is a free trade with fewer entry barriers that attracts more business offering their products at lower prices that attract most consumers in the market (Pospisilova 2013, 71). The sporting brands are integrating technology into their latest footwear collection to win the clients against their competitors.

Competitive Review

The trainer shoe firms in the UK market are mostly resellers that meet at premier footwear festivals for socializing, collection, and trading on the sneakers. The process facilitates the provision of cheaper products that heighten the state of competition in the industry against new items. The Hypebeast commodities from the resellers are placed in the market at relatively lower costs than the shoe company. The most vibrant competitors in the UK for footwear are Nike, Reebok, Puma, Fila, and Adidas due to the strategies of promotion and interactions with the consumers (Wiggin 2001, 22). The firms in the industry have focused on other items such as the sports accessories, perfumes, and deodorants to boost their performances. Therefore, the companies are devising unique strategies of standing out in the business for trainers in the United Kingdom.

Positioning

The hypebeast products for the street fashion have high demand since everyone wants them while only a few can provide them. In the UK streets, the teenagers would be spotted making a queue to get a test of the latest designs when released which indicates the needs for the items. The consumers of the products travel for hours to get to the stores and spend much to obtain them. The goods have developed a business opportunity in the region for the shoe companies (Wiggin 2001, 124). The firm with the new trainer sneakers can fill the loophole in the industry by producing brand items to attract the ready market. Despite the constant evolutions and limited releases of the commodity, the company has the potential of developing their niche in the street fashion for dominance and higher performance.

Marketing Objectives

The provision of information about the features on the new trainer products in the UK fitness market

To create awareness for the fresh Hypebeast street fashion design among the targeted consumers. To seek customers’ satisfaction by obtaining feedbacks from sales of their products in the UK market

To adopt and utilize the power of innovations and technology in the manufacture and marketing of the company’s products 

Marketing Strategy

The development of promotion plan targeting particular consumers such as the youth which is composed of the largest population in the UK. The firm can collaborate with the artists to attract the attention of the young people who are the potential customers (Pospisilova 2013, 32). The development of the brand with influencers requires making it authentic to foster their marketing objectives. Therefore, consumer empowerment is an essential aspect of promoting the products for training.

The advancement in technology is an element that can facilitate the promotion of the firm’s new trainer products in the market. The digital platform can influence the dissemination of information about the sneakers at higher speeds and relatively lower costs. The internet access can facilitate the marketing objectives of the shoe firm by developing adverts in web network. However, the technology often changes rapidly and the business needs to keep up with the latest and appropriate medium of communication.

Recommendations

The shoe company can choose the Hypebeast trainers for the street fashion since they attract higher demands among the largest population in the UK market. The commodity has a good resale value that accommodates various collections resellers in the industry. Hypebeast sneakers are produced with higher technology within shorter periods and for better performance among the users. The company can prioritize on investing in the training shoes since they are stable, comfortable, and attractive among all the age groups. However, the new product needs adequate financial support to enhance their promotion in the market to win confidence of the potential consumers. The Brexit has an environmental impact on the factors affecting business in the UK such as inflation, and fluctuation of interest rates and the firm needs that while launching their products. Therefore, the firm can turn their threats into opportunities for the new trainers in the UK market.

References

Cobley Desborough Tax guide 2016-17 Northampton:

https://www.cobsdes.co.uk/briefings/latest/tax-guide

Gupta, A. (2013). Environment & PEST Analysis: An Approach to External Business

Environment. Internal Journal of Modern Sciences, 2(1): 34-43.

Hackitt, J. (2015). A Guide to Health and Safety Regulation in Great Britain: Health and Safety

Executive.

Kolios, A., and Read, G. (2013). A Political, Economic, Social, Technology, Legal and

Environmental (PESTLE) Approach for Risk Identification of the Tidal Industry in the United Kingdom. Energies journal Review, 2013(6): 5024-5035.

Pospisilova, A. (2013). Analysis of Consumer Behavior in the UK footwear Market. Queensgate,

Huddersfield: University of Huddersfield.

PwC (2016). The UK “Premium lifestyle” Clothing, Footwear, and Accessories Market. PwC

Strategy

Wiggin, E. (2001). UK Clothing & Footwear. 2001 Market review (Key Note Ltd), pp.7-149.

https://www.just-style.com/store/samples/39819.pdf