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C212 Task 1

Andrew Etheredge

Western Governors University

Anthony Duran

May 19, 2023

C212 Task 1

The company that is being covered in this proposal is named Do Knot, Do Sew! (DKDS).

This company is a United States-based for-profit organization. Its business model is to match

subscription customers with pre-made suits, outfits, or entire wardrobes through an online market

based on customer needs. DKDS wishes to expand into global markets where internet access is

restricted and add some additional products or services for a more elite clientele. The two

primary new targeted global markets are China and India.

A. Proposal

A1. New Product and/or Service

DKDS has had great success in the United States. To expand its markets and clientele the

company will need to also expand its methods of business with new products and services. The

first of these new services will be onsite visits at their customer’s homes or places of business.

The clients can opt into a DKDS premium subscription plan that will provide this service.

The second new offering will be in the form of a personally tailored product. Previously,

customers would be arranged for the best-fitting premade apparel, but there was no true tailoring

or customization offered for clients with an escalated sense of fashion. This line will primarily

include business formal and evening wear.

A1a. Methods

The methods of research to determine these markets are primed were a sample review of

both countries’ evolving business-dress standards, product interest reports, and social media

followership habits.

Both India and China have many traditional stances regarding their choices in garb. They

both are evolving thanks in part to the globalization of markets and the sourcing of many labor-
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related jobs to these areas. As American and European nations send their work to these locations,

they also send part of their standards of dress and cultural workplace norms. This has affected

the demand and perception in both these markets of what is appropriate workplace wear (Gopal

& Srinivasan, 2006).

Product sales numbers within these regions for more Americanized styles have increased

from our research. Americanization has been an aspect of global influence for decades. The

significant shift in buying habits is not only due to cultural influence, but also Chinese and

Indian citizens now are more economically capable of buying. For many decades, both countries

were primarily producer markets. Now they are shifting towards consumerism.

While the use of the internet and social media is limited, monitored, or censored in some

parts of these markets, the inroads are there as well as the data it gleans. Statistics of

followership regarding style and fashion in both markets are trending towards street-style pop

culture and Americanized business formal styles. A reoccurring shortage or availability for these

styles has been noted in both areas.

A1b. Competitive Advantage

The primary competitive advantage DKDS will gain pursuing this proposal is based on

locality. As mentioned, these two markets are known for their production capacities. DKDS will

reap the benefit of having its production facilities in the same areas as its intended market. This

will decrease shipping necessities in both cost and time.

A1c. Inherent Risks

Cultural conflicts represent the first potential inherent risk with the new proposal. While

it is understood the target markets are adapting, that does not indicate that mistakes due to

cultural misunderstandings cannot occur. Consultants regarding both Indian and Chinese norms
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will be brought in to avoid potential taboos with products. Additionally, sensitivity training for

customer and partner-facing positions will be conducted.

Political intervention is the next potential pitfall. This falls heavily on the Chinese

market. There exists a minefield of potential mishandling regarding opening oneself to a Chinese

market. One of those is government regulations on its allowance of foreign products. This

includes physically produced items as well as less tangible things like services and entertainment

distribution.

A2. Customer Relationship Management Software

A2a. CRM Information

The Salesforce CRM software is what the proposal is designed around. It encompasses

the tools necessary for use in the markets to be targeted. Salesforce has the needed functionalities

to generate our customer, product, and shipping databases. Additionally, it has an AI-powered

system that can track trends and habits among customers to generate additional data we can use

to adapt our sales models and pricing. This will be critical information in a developing market

where the research on buying trends is new and changing rapidly.

A3. Distribution Channel

A3a. Key Considerations

Historically DKDS has been purely an online retailer with a direct B2C approach.

Integrating the new products and services will require some additional distribution methods. As

the continued feasibility of the plan is developed so will the methods. The first stage is to partner

with local independent contractors to fulfill onsite tailoring and custom work needs. DKDS will

provide favorable rates, customers, and supplies to the contractors within our umbrella. They will

be expected to maintain a standard of service to stay in compliance with our business goals.
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These contractors pay a fixed rate for materials from us and have set pricing options depending

on the nature of the services which they distribute.

A3b. Global Supply Chain

Regarding global supply chains, part of the efficacy is establishing our potential market

closer to production sources and shrinking the supply chain necessities. While there are

environmental factors and infrastructure issues in some areas that may cause limited direct

overland availability, it is not outside of the margin for error. Additionally, air and water

shipping methods for finished and unfinished products are a backup. Our targeted areas are

minimally impacted by these potential factors.

A4. Major Pricing Strategy

The proposal is based on a cost-plus pricing strategy for the mass market and a premium

pricing strategy for the elite clientele.

A4a. Cost Associated with Development and Launch

The cost associated with development and launch includes advertising campaigns, the

integration and licensing of the new CRM software, our market research, and the necessary time

and labor to develop local contractors within the markets. Additionally, costs will be incurred in

adapting marketing to local compliance with restrictions in place in the Chinese markets. Lastly,

the cost of consultation and training for the cultural sensitivity of our employees.

A4b. Consumer Acceptance of Price

The consumer pricing for the mass market using a cost-plus strategy will be optimal for

consumer acceptance. As mentioned, the consumerism and financial liquidity of both markets

have substantially developed in the previous decades. The price points will be optimal given the
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savings due to locality to offset the less-than-usual incomes of the regions. Further, as an

emerging market, the need for competitive or penetration pricing is not a requirement.

The premium pricing for the elite clientele is both profitable and necessary. These clients

can never have the feeling they are buying anything “off-the-rack,” and part of the brand idea is a

feeling of exclusivity. Chinese markets especially are primed with elite clientele wishing to

purchase into this echelon. An example of this mentality is the recent record-breaking online

purchase of a Patek Phillipe at $5.8 million (equivalent in U.S. dollars) by a Hong Kong-based

Chinese national (Descalsota & Duffy, 2023).

A4c. Competitor Prices

The competitive pricing running against DKDS is not direct competitors. The

competition will be in overcoming more traditional styles and the potential for lower-cost

substitution goods we expect to rapidly develop in response to our success. This proposal is

prompted on an undeveloped market making comparable competition numbers too small to be a

significant sample size. Combating substitution or “knock-off” goods comes down to

establishing a brand and quality which is not easily imitated to maintain our customer base.

Countering traditional styles will fall more under promotional strategies.

A5. Promotional Strategy

A5a. Mass and Social Media Channels

Mass media dispersion in China will have to be in accordance with all the PRC’s laws

and regulations. Streaming services both allowed and popular in China are Douyin and Toutiao.

These services due to their limitations are inherently targeting the intended demographics.
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India’s less restrictive laws allow mass media campaigns to be conducted with internet-

based targeted advertising. Firms can pursue information scraping and targeted advertisement

which can be leveraged to reach our intended consumers specifically.

In China the social media app our marketing team will be targeting is WeChat. Most

American or European-based social media platforms are not allowed or allowed with very

limited capacity to the Chinese public. As a business, DKDS must cater to these limitations.

WeChat is the most popular social media app in mainland China with over one billion users.

Chinese limitation on social media has the benefit of focusing our demographic on an easily

reachable platform (Cao et al., 2020).

MX Takatak will be the target advertising social media platform for the India campaign.

It is the second most popular social media app in that locality and has the highest percentage of

balanced gender usage as well as the age demographic of 18 to 34 years (Rakshit, 2023).

A5b. Sales Promotion Activities

The first sales promotion will be free trial subscriptions in the targeted markets for the

mass market. This will give the users a chance to test our services without the initial investment.

The free trials must be proactively opted out of to discontinue use. For the premium

subscriptions, a discount will be offered and advertised through business-related news and

channels for a six-month period.

The second promotion will be a slogan to allow people to earn credit toward

subscriptions and services through sharing themselves wearing and commenting on our products.

An example slogan would be “Share You Wear.” We would need to localize the slogan to be of a

catchy nature in the native language.

References

Cao, X., Gong, M., Yu, L. & Dai, B. (2020). Exploring the mechanism of social media addiction:

an empirical study from WeChat users. Internet Research, Vol. 30 No. 4, pp. 1305-

1328. [Link]

Descalsota, M. & Duffy, K (2023). A Patek Philippe watch just sold for $5.8 million, making it

the most expensive watch ever sold at an online auction. Business Insider India.

[Link]

million-making-it-the-most-expensive-watch-ever-sold-at-an-online-auction/

articleshow/[Link]

Gopal, A. & Srinivasan, R. (2006). The new Indian consumer. Harvard Business Review.

[Link]

Rakshit, S. (2023). Top 10 Indian Social Media Apps to Advertise in 2023. The Media Ant.

[Link]

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