Executive Summary of Marketing
Report
Green
Nature Company manufacture and sell eco-friendly clothing in eco-friendly
labeling. Company is currently working in the market of Europe. Having deep
interest in eco-friendly and sustainable green operations now company is
interested to introduce their eco-friendly products in the market of USA. The
research objective is to collect information about target market trends, demographic
details, opportunities, risk, and potential to buy eco-friendly products. The
research used secondary data collected from online surveys, websites, and
journal articles to conclude that the USA is the best market to export
clothing. While considering the risk factors, research recommends that the
company should support their sales in the new market with strong marketing
strategies and green marketing campaigns.
Introduction of Marketing Report
on eco-friendly
Nowadays,
eco-friendly clothing and apparels are a new trend. People of developing
countries are purchasing eco-friendly products to support their countries stand
against the negative environmental impact and increase in pollution (Statista.com,
2019).
Green Nature Company is a middle sized company of Europe that provides
eco-friendly clothing and apparels to men and female of all age. With the idea
of geographical expansion, the company is interested to start up their business
in the market of the United States of America. In this market report, secondary
data is collected to present research findings of the demographic market of
USA.
Research Methodology on
eco-friendly
The research
study is a secondary research study by nature. The research study will draw a
conclusion about the targeted market of the USA for Green Nature Company based
in Europe. In this research study, secondary data collection methods are used
to collect qualitative and
quantitative data` about
the targeted market to present research findings. Secondary data collection
method provided quantitative research data from the website and online survey
results. Moreover, research data is also collected from the primary research
studies conducted and published by the researchers on similar research topics
in journal articles. Research methodology section also provides information
about limitations and ethical considerations.
Limitations of eco-friendly
Marketing
There are some limitations in this research study that should be taken
into considerations while using these results and research findings. The key
limitation is the secondary source of data. Most of the information is
collected from the websites that did not present any evidence of reliability or
validity (Baker & Hart, 2016).
Ethical Consideration of eco-friendly Marketing
All research findings are based on the analysis of collected research
data. While collecting data ethical considerations were taken into mind to
avoid unethical actions. Research findings are free from personal biases of
researchers and any kind of discrimination related to age, gender, race, or
other demographics.
Research Findings of eco-friendly Marketing
The research
finding is based on the analysis of qualitative and quantitative data` collected from the secondary data sources including
journal articles, books, online surveys and websites (Joung &
Park-Poaps, 2013).
The research findings represent the demographic characteristics of the consumer
market for GNC in the USA. Company is going to introduce eco-friendly clothing
products in the market of USA after earning success in the local market of
Europe. Research findings will demonstrate demographic characteristics,
opportunities, risk, potential, company ethos, and other results concluded from
the analysis of secondary research data.
USA Demographics of eco-friendly Marketing
The USA has a total population
of 327.2 million from which females are more than 50% of the total population(Infoplease, 2019). Research
studies of the United States of America demonstrate that the USA is the second
largest clothing purchasing state around the world (Statista.com, 2019)).
According to research, including all age male and female clothing total garments
purchased by America are more than 20 billion in a year.
Source: https://inhabitat.com/ecouterre/wp-content/blogs.dir/26/files/2014/11/infographic-fast-fashion-1.jpg
Moreover, research also concluded
that from these 20 billion garments only 2% are
manufactured in the USA (Statista.com, 2019)). Thus we can say that more than
80% of clothing is imported from other neighborhood countries. The high
tendency towards importing clothes indicate that Green Nature Company can
export garments to the local market of the USA as they are the world largest
purchaser of garments.
Source: https://inhabitat.com/ecouterre/wp-content/blogs.dir/26/files/2014/11/infographic-fast-fashion-1.jpghttps://inhabitat.com/ecouterre/wp-content/blogs.dir/26/files/2014/11/infographic-fast-fashion-1.jpg
Detailed analysis of these
findings presents that per person clothing in a year are 60 items at least.
While in a week it is just near to 11 clothing items (Joung &
Park-Poaps, 2013).
Somehow the
largest figure of import does not mean that the country is importing because
their population is more than other countries (Kotler &
Keller, 2016).
In fact, the main reason is the high trend of purchasing new clothing in the
USA market.
Source: https://inhabitat.com/ecouterre/wp-content/blogs.dir/26/files/2014/11/infographic-fast-fashion-1.jpg
The following graph extracted from
a research study concludes that clothing purchasing trend is quite high in the
United States as compared to the other countries such as China, India, and
Europe (Statista.com, 2019). Maybe a major reason for this high tendency
is the strong and stable purchasing power of USA population. According to
economic analysis per capita income of the USA is high as compared to the other
countries of the world. Graph resent that Untied State is leading the market
while after that the second largest market is European market. While local
markets of China and India are just near the bottom lines of this graph (Statista.com, 2019).
Source:http://www.imagedy.co/fast-fashion-consumer-statistics/
Now more specifically a research
study summarized the quantitative data collected on concerns about sustainable
clothing buying trend form different countries over the globe. The following
graph represents that comparative analysis (Statista.com, 2019). According to this
US market has a relatively limited concern about sustainable or eco-friendly
clothing
.
Source: http://www.imagedy.co/fast-fashion-consumer-statistics/
Opportunities of eco-friendly Marketing
US market has great
opportunities for eco-friendly clothing and apparels because there are just a
few companies working in the United States with the purpose to manufacture and
provide eco-friendly clothing. Most of the companies and fashion brands are
just famous for their traditional and modern clothing rather than organic,
green, and eco-friendly (Mallapragada, Chandukala, &
Liu, 2016).
Mainly young population under the age range of 18 to 25 are more interested in
these kinds of new and eco-friendly clothing. Therefore there are wide
opportunities for Green Nature Company to open a new market of eco-friendly
clothing and apparels (Baker & Hart, 2016). Limited competition
and increasing trend of adopting green and eco-friendly products in this
geographical region clearly indirect toward available opportunity for Green
Nature Company. Somehow, while
introducing products in the new market company should not forget the importance
of marketing and appropriate pricing strategies. (Mallapragada,
Chandukala, & Liu, 2016) Sometimes wrong
pricing strategies and lack of awareness in the markets causes to change the
fortune of a company.
Risks of eco-friendly Marketing
There
are some risk factors associated with eco-friendly clothing sales in the new
target market that can influence the overall profitability of the company (Joung &
Park-Poaps, 2013).
The major risk factor is that people of the US are not highly concerned about
environmentally friendly products because they want to have branded and
designed dresses by famous companies. In such a situation, Green Nature Company
will enter in the already established market with a quite new and unique
product that is currently not considered as the need-based product (Mallapragada,
Chandukala, & Liu, 2016). Basically, because
of high prices and expensiveness consumer call it a luxury product. Therefore
there are chances of limited sales only unless products are supported by marketing
campaigns and other strategies of promotion.
Potential of eco-friendly Target
Market
The selected target market has
strong potential for the products offered by the Green Nature Company. Research
findings of statista.com present that in future demand for eco-friendly apparel
will go towards increase. The results are collected from the survey of the
local market in the United States (2013). According
to the following graph, 54% of the consumer market supported the idea of growth
in demand for eco-friendly apparels (Statista.com, 2019).
Source: https://www.statista.com/statistics/259661/consumer-demand-for-eco-friendly-apparel-in-the-us/
Another research study concluded
that eco-friendly products are not the first priority of US consumers (Mallapragada,
Chandukala, & Liu, 2016). Somehow, people
usually buy green clothing or environment friendly apparels just for fun or to
try new fashion. While research also concluded that many US consumers do not
purchase such clothing because of high-cost (Gam, 2011).
Competitor Companies of eco-friendly
The key competitor companies are those
companies which have a similar product line with the Green nature company. GNC
offer green and eco-friendly clothing in US and Europe market. Other companies
that provide the same products in these markets are Ecovibe Apparel,
Alternative Apparel, Pact, People tree, Amout vert, Patagonia, and United by
Blue Company (Kotler & Keller, 2016). These
companies are potential competitor companies of Green Nature Company.
Research and Ethos of eco-friendly
Research is aligned with the ethos of the company. Research
particularly studied the potential of the targeted market to purchase
eco-friendly and green products (Gam, 2011). While the ethos of
the company is also concerned with the idea that believes in the sustainability of all of the value-chain activities
carried out by the company.
Future Work eco-friendly
Future work will discuss the limitations of
this research study to provide more comprehensive and authentic result outcomes
for future use of Green Nature Company. Future research may also cover SWOT
analysis, PESTLE analysis, and five-factor analysis of the new targeted market
to conclude whether the company should invest in the new market or not?
Conclusion on eco-friendly Marketing
Summarizing the whole discussion,
we can conclude that Green Nature Company can introduce their innovative
clothing that is basically eco-friendly and biodegradable clothing in the market
of USA. USA market research studies indicate that the purchasing power of their
population is strong and people are highly interested in buying imported
clothing. Somehow, eco-friendly clothing trend is low in the USA market but the
young generation (under age of 18 to 25) are interested to have such clothing
for fun and to try new fashion. Considering this the best option for GNC is to
introduce their clothing in the USA market but support their product by strong
marketing campaigns and social media advertisement particularly during the
introduction stage.
References of eco-friendly Marketing
Baker, M. J., & Hart, S. (2016). The
Marketing Book. Routledge.
Gam, H. J. (2011). Are fashion-conscious consumers
more likely to adopt eco-friendly clothing? Journal of Fashion Marketing
and Management, 15(2), 178-193.
Infoplease. (2019). Demographic Statistics for
United States . Retrieved from https://www.infoplease.com/us/comprehensive-census-data-state/demographic-statistics-342
Joung, H.-M., & Park-Poaps, H. (2013). Factors
motivating and influencing clothing disposal behaviours. International
Journal of Consumer Studies, 37, 105-111.
Kotler, P., & Keller, K. L. (2016). Marketing
Management. Pearson.
Mallapragada, G., Chandukala, S. R., & Liu, Q.
(2016). Exploring the Effects of “What” (Product) and “Where” (Website)
Characteristics on Online Shopping Behavior. Journal of Marketing, 80(2),
21-38. Retrieved 2019
Statista.com. (2019). Consumer demand for
eco-friendly apparel in the U.S. 2013. Retrieved from www.statista.com:
https://www.statista.com/statistics/259661/consumer-demand-for-eco-friendly-apparel-in-the-us/
Yang, Z., & Peterson, R. T. (2004). Customer
Perceived Value, Satisfaction, and Loyalty: The Role of Switching Costs. Psychology
& Marketing, 21(10), 799-822. Retrieved 06 22, 2018
Link for (Baker & Hart, 2016).
https://books.google.com.pk/books?id=wTT7CwAAQBAJ&printsec=frontcover&dq=Baker,+M.+J.,+%26+Hart,+S.+(2016).+The+Marketing+Book.+Routledge.&hl=en&sa=X&ved=0ahUKEwiDr5-O-tbhAhXB16QKHQsFCVIQ6AEIJzAA#v=onepage&q=Baker%2C%20M.%20J.%2C%20%26%20Hart%2C%20S.%20(2016).%20The%20Marketing%20Book.%20Routledge.&f=false