Artemis Sportswear Company
Essay Preview: Artemis Sportswear Company
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Sportswear has become the popular trend of fashion: The popular trend for teenagers and adults. Sportswear has been promoted over time by sports players such as basketball, baseball and football players as well as Olympic Gold Medal Winners. The era of sportswear has grown significantly and businesses have noticed the need for change from sports fans and spectators. Businesses began to realize that growth and profits can be made in selling sportswear. Lately, it seems as though sportswear fashion is worn on a daily basis by many individuals other then sports figures. This style has simply transferred into a type of “fashion style”. However, even though businesses realize the popularity and profits of sportswear, it is still the question of effective production as well as improvement of sales and operational costs.
Artemis Sportswear Company needs to cut operational expenses by changing their marketing strategy. Artemis needs to think, decide and act in terms of the final consumer. As a result they will know who their consumers are, and what they want and need. Artemis must tailor their offers to the consumers needs so they can get to know them and provide them with a worthwhile product. The orientation is toward the market and not to the product.
Our analyses of Artemis Sportswear are as follows: As indicated by Market Analysis there is four general categories of consumer in the sportswear industry; the Browsers, the hardcore athlete, the weekend warrior and internet sales. The browsers want to stop in for a look on the way to other destinations. They may be into various types of sports and activities or just taking a driving tour. Browsers may be travelers or locals depending upon the season or event. Hardcore athletes are very conscientious, they know the language of their sport, the gear they use and are very loyal to the brand they use; they want to look and stay cool, consequently they will provide the company with powerful word of mouth marketing. They are very serious about the sport, highly sophisticated, and want everyone to know that. The weekend warriors purchase during weekends. When the weekend warriors are playing their sports they also want to look good. Weekend warriors typically pack special events with family members and friends. This market is our target for special events and services. The internet browsers are always looking for the best deal in a very broad market which in turn drives the cost of the product down. Internet browsers can be made up of hardcore athletes and weekend warriors. Even though there are minimal overhead costs involved with internet sales the competition is great in this market.
Based on the above market analysis our new marketing strategy will focus on the following subtopics:
Benchmark the objectives for sales promotion, mass selling and personal selling.
Focus on marketing efforts for the weekend warriors and hardcore athletes.
The marketing recourses will be centered on both sales promotions (events, displays, internet etc.) and personal sales (customer service, friendly atmosphere).
Marketing promotions will be consistent with Mission Statement.
The location is very important to keep as it will give Artemis a competitive edge.
We will focus on the highly discriminating hardcore athletes first, because these are the opinion leaders. Both the weekend warrior and the browsers will follow the hardcore athletes. If we can attract and keep the hardcore athletes, they will attract others. To attract hardcore athletes, we will carry all the best high-tech equipment, know the language of their sport, and use the latest technology. Products and services are the most important factors when selling to hardcore athletes. If Artemis maintains bran name products, good selection, good location and knowledgeable, friendly employees the products will sell. Artemis will encourage impulse buying; therefore it is important that we maintain a flexible pricing strategy. To help promote this impulse buying Artemis will implement a strong sales promotion strategy. Advertising will be secondary. Hardcore athletes demand knowledgeable employees and a convenient location. Artemis has placed its stores in upscale urban areas. This strategy will keep the customers isolated from the competition; if the nearest competitor is 15 miles away and the retailer does not offer high-tech equipment and the latest technology those athletes will shop at Artemis. Since Artemis will be offering high-tech equipment and the latest technology we will see the competitor products become secondary to Artemis products. If the above tasks are completed the forecasted sales will increase at a rate of 1-2% per month for several months. As the growth continues in this urban area we expect a solid 15-20% sales growth with in the next two years.
Cutting Operational Expenses
This part of the proposal will be on cutting operational expenses. A successful company not only improves sales and profits, but it also needs to learn how to keep the money it makes. Organizations can have a great year with terrifically high profits, but if that same company cannot control their spending, they will lose money (Crawford, 2006). There are several ways for companies like Artemis Sportswear Company to cut operational expenses and keep their profits up.
Real Estate Department
Most companies that do business in the United States have a Real Estate Department. The Department and its budget consume operational expenses for buildings which they own or lease. For example, housekeeping, maintenance, utilities, and security fall under this department. Utilities, such as electric can be one area that operational costs can be reduced. Make sure lights are cut off when not in use, make sure the building is ready for cold weather with insulation and weather stripping, and keep the thermostat down when building is not in use. Check to ensure all communication plans are tailored for economical use and beneficial to meet the companies needs (Crawford, 2006). The Real Estate Department, also, negotiates leases for buildings used to house the employees and products. To save money, the leases need to be examined to see if it would be more favorable to a company to break the lease and buy or lease another building. Most of these suggestions are ways to save money and the results will be seen in the near term.
Human Resources
Labor or employees is another area where operational costs can be slashed. Overtime, outsourcing, benefits,