1.0 Executive Summary: Foreign Market Analysis

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Foreign Market Analysis

1.0 Executive Summary


Access Man, Incorporated is a retail company based out of Columbia, South Carolina. As the name implies, Access Man, Inc (ACI) sells the latest in men accessories fashions and only focus on men accessories fashion. We have the experience and knowledge to assist men to accessories any outfit. The right accessories, whether they be hats, bags, belts or jewelry, all help to transform a traditional look into something people are happier with. For example, jeans and a tshirt is a common and most understandably basic look. However, add a trendy belt, a street style baseball cap and a touch of bling and the look is now stylish and fashionable. Accessories can also help to transform the same clothing into something radically different and more personal to the individual. Our in-store selection will be large. Additionally, ACI will take special care in developing and maintaining excellent in customer service. Having a large selection with superb customer service is the key for transforming lookers into customers.

Market research indicates over the last ten years that men accessorize more. There is growing need in the area for the products and services which Access Man, Inc offers in the market it serves. The market strategy will be based on a cost effective approach to reach this clearly defined target market. The three-phase approach will utilize resources to create awareness of the store and encourage customers to benefit from the convenience and services it offers. AMI will focus on its selection, accessibility of product, design services, and competitive pricing.

1.1 Vision AMI is built on the assumption that the fashion trend of men accessories is more likely to continue to rise in the future. The global men's fashion industry has witnessed a tremendous change in the last two decades. There has been a huge shift from simple dressing to fashion oriented dressing. Fashion accessories are now being increasingly used by men of different age groups to complement, enhance their apparel, personality and look. The history of men's fashion accessories can be traced to the early 16th century with men wearing hats, turbans, stoles etc to complement their apparels. Over the centuries, though the trend in fashion accessories have been witnessing a continuous change, but these items have been a must have for men of different age groups and strata.

Fashion accessories for men include ties, belts, jewelry, shoes and more. What to wear by occasion and season? The answer depends on individual unique style of dressing and what statement do they like to make toward that individual personal style. The fashion accessories industry for men is experiencing a boom across countries. The industry is being driven essentially by the change in the preferences of men and the fact that they have become more fashion conscious. Both local and large international companies are investing large amount of money in manufacturing different men accessories in a variety of materials and styles in response to the surge in demand of such products in the international market. The rise in demand of such products is also a result of rising middle class income in countries including India, China etc. AMI wants to be such a retail company. We serve our customers as a trusted ally, providing those with the loyalty of a business partner and help customer develop personal style. We make sure that our customers in other markets have what they need to accomplish their personal touch on style. 1.2 Objectives The marketing objective is to become a market leader in men fashion and at the same time actively support continued growth and profitability through effective implementation of the strategy. Access Man, Inc goal is to achieve long-term, sustained market entry and expansion support in Canada. 1. Increase sales by 20% within the next two year. 2. Increase gross margin to more than 25%. over the next two years. 3. Increase our non seasonal sales to 65% of the total.

2.0 Target Markets Canadas market is similar to that of the US. AMI focuses on joint ventures with Canadian representative and distributor in the local market, with special focus on the high-end mens fashion and the 520 square foot small retail office. The local representative has the leverage of

expertise, resources and connections of the Canadian government to find and establish business relationships with potential customers.

2.1 Market Definition and Segmentation We have broken our markets into groups according to standard classifications used by market research companies: education and income. An exact definition of these market segments is not necessary for our marketing planning purposes here; general definitions will suffice. We know our Canadian customers tend to be more fashion consciences, wanting high-end fabrics, people who like computing and computers. The low-end people buy elsewhere. We also know that our Canadian customers tend to be much more proficient on the latest styles, trends, and tips in mens fashion, much more likely to and want handbags, sunglasses, watches, and oversized belts to accent their personal style. And they are much more likely to pay a premium price for it.

2.3 The Market Environment The current market environment is predominant with challenges and requires careful planning of strategy. Although the Canadian retail market was not hit as hard as the U.S. was, demand has not return to boom levels but Canadian officials are optimistic about the slowdown ending soon. Most signs are pointing to an economic recovery in Canada's retail market, including a strong month of June that saw sales up 1.6% in Vancouver compared to 2008 (NuWire Investor, July 15, 2009). The conditions are ready for Canada to build on this momentum. Canada's largest markets, Toronto and Vancouver, are leading the way with the highest sales in June, figures from the retail market boards show. Toronto sales were up 0.7% compared with 2008 and in Vancouver they jumped a massive 1.8%. Here's a look at how retail sales have fared over the past year.

2.4 Buyer Behavior A strong retail sales report in May suggests that Canadian consumers may be returning to the malls in full force after several months of weakness. However, there are two risks to this view. One, price-adjusted sales rebounded in May; most of the strength may likely be from the spike in auto sales which surged over 3% on the month. Second, with continued job weakness, economic uncertainty and wage disinflation, the big question is whether this strength is sustainable, especially since higher prices accounted for a large share of the increase.

3.0 SWOT Analysis of Foreign Markets Canadian governments raise a higher share of government revenues by taxing businesses than do most countries and a lower share than most through value added taxes, such as the GST. However, value added taxation raises revenue more efficiently than either personal or corporate income tax, because it generally has a broader base and does less to discourage work, saving and investment. Nonetheless, the federal government has opted to reduce the federal GST rate from 7 to 6% and intends to cut it to 5% at some point. Provinces should take this chance to move closer to an optimal tax mix by lowering taxes on business and raising value added taxes. This would include replacing provincial retail sales taxes with value added tax structures harmonized with the GST. Doing so would provide a more productivity-friendly environment for business, without necessarily increasing the overall tax burden on consumers. If provinces do not take up this opportunity, then the efficiency of the overall tax structure in Canada will be reduced. Efficient financial markets contribute to the rate of growth. Overall, Canadas financial sector is well developed and diversified and has performed reasonably well. However, some policies, such as bank ownership restrictions and political approvals for bank mergers, may impede gains in efficiency. Further streamlining entry requirements in banking would make it easier for new players, foreign or domestic, to enter the market, thereby adding to competitive forces in the sector. Provinces currently exercise responsibility for regulating securities markets. Substantial gains could be achieved by establishing efficient and effective Canada-wide securities regulation, but governments to date have not agreed on the appropriate model to adopt. Every effort should be made to reach a decision as quickly as possible. VI. The Marketing Strategy To obtain market entry and spark interest for our company will conduct a campaign designed to promote our companys name in as many ways as possible. Our marketing strategy could be to create buzz by blanketing the local airwaves, print space, and other advertising mediums with our name, logo, and products. The task of overcoming a buyer's objections will assign to the sales team. However, we will craft marketing campaign can work toward overcoming your customers' buying obstacles before they walk in the door. Emphasizes warranties, testimonials, endorsements, and other positive reinforcement devices can not only make the buying decision easier for existing customers, but also attract new customers who hadn't previously considered buying from your business.

Next, we will focus on weekend shoppers. To attract individuals in this group, free demostration will be offered outside the store to entice these individuals to come in and browse or make a purchase. Coupons will also be distributed offering discounts on purchases.

Resources

http://www.bharatbook.com/general/customresearch.asp

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The Financial Post Statistics Canada


http://www.cba.uh.edu/~gillan/resource.htm Scotia Capital BMO Capital Markets Organization for Economic Co-Operative and Development

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