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Globalized business environment has flooded Taiwan’s apparel market with high-quality and inexpensive branded clothing. The numerous product channels have also increased consumers’ bargaining power and continually elevated consumers’ taste. In addition, existing garment manufacturers of scale have dominated the market prices and other conditions by means of the advantages in the materials, production experiences, marketing channels, etc. they possess. This has obstructed the business of companies with limited resources. In face of changes in the marketing environment in this industry, how will the company under study formulate more effective marketing strategies to respond to the changes in market demand?
Through strategic marketing tools, this essay analyzed the effects, as well as the defects, of the existing marketing strategies carried out by the company under study. With cross-referencing of theories and practical experiences, strategies were laid down to reduce buyers’ costs (external cost of unit benefit, search of information, ethical crisis) and increase customers’ asset-specific costs in the future; or to create feasible new business models; or to help change the rules of game, etc. These strategies are to boost the company’s advantage in marketing strategy, so that it may share a slice of the cake in the market.
Research results and recommendations: The company under study developed product uniqueness and interest demand according to the target customers’ characteristics and needs, and successfully enhanced target customers’ asset-specific costs for its products and services. In the future, a new business model should be established to implement loyalty programs by setting up a membership system to uphold target customers’ loyalty. In terms of products, due to the high costs and low profits of
custom-made products, in the future production cost should be lowered by expanding the young customer segment and the intermediary channels, and customers’ multiple value propositions should be accommodated. In a nutshell, these may reduce the external cost of unit benefit. In terms of price, the company targeted low prices, and together with cash discounts and quantity discounts, it was able to effectively satisfy target customers’ demand for low prices. In terms of channels, the company is contacts are obviously insufficient; integrating virtual-physical communication service, and driving business performance of physical stores through online stores should be the focus in the future. In terms of marketing and sales, the best way of marketing is to have professionals inform customers of the advantages of the company’s products. In the future, traditional advertisements should be combined with online marketing and the use of APP to reduce buyers’ cost of information search. The company under study has stuck to the business philosophies of honesty, professionalism, and non-toxicity, which may effectively lower buyers’ cost of ethical crisis. In the future, an opinion mailbox (critiques and suggestions) should be installed to help the company understands customers’ needs. Furthermore, reputation-building cases must be established to secure buyers’ trust.
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