Sophie Mattacott-Cousins N02809222 FASH30077 Stage 2 Report

Do not go where the path may lead, go instead where there is no path and leave a trail.
-Ralph Waldo Emerson

10. Strategic Focus 13. Mission 13. Strategic Action Plan 14.Methodology 14.Primary 15.Secondary

39. Consumer sizing 18. The Brand Westbeach 20. Brand 40. Competitors in Asia Communication Image and Voice -Westbeach and Competitor Positioning 22. Positioning -Westbeach and Competitor 23. Future Position Marketingrketing 24. Market Analysis Positioning 24. Japan 25. Consumers 48. Consumer Social Media Penetration - Pen profile 51. Culture Sensitivities 28. South Korea 29. Consumers - Pen profile 32. China 33. Consumers 34. Overview 36. Consumer Types By Product

contents

54. Joint Venture 57. SWOT 58. Potential Partners Partners for Japan Partners for South Korea Outcomes 62. Management 65. Risk management 66. Financial management 67. Employee performance and morals

70. Products 72. Attributes Styles, Fit and Sizing 73. Wind and Waterproofing 74. Environmental and Social impacts 75. Product life cycles 76. Presentation and Packaging 78. Product extension -Idea and design 82. Facts & Figures

86. Taxes and costs 87. Price 89. New product pricing

CONTENTS

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92. Place 96. Online and Mobile 98. Time

102. Communication strategy 105. PR 107. Email 108. Celebrity Endorsement 109. Social Media 111. Social media campaign 112. Concept 115. Implementation 116. App 122. Pop up Shop 126. Consideration

130. Implementation 132. Time line

136. Financials 137. Budget

142. Risk management 144. Measuring performance 145. Evaluation and review 146. Conclusion & Overview

CONTENTS 6

10. Strategic Focus 13. Mission 13. Strategic Action Plan 14.Methodology 14.Primary 15.Secondary

StrateGIc FocUs
The focus of this report is to deliver a cogent, effective and commercially attractive business strategy for Westbeach to implement in their expansion plan into Asia. Stage 1 sets out to analyse the global winter sport industry, to understand the current market, its future and the negative and positive effects of technology, economy, social behaviours and natural events (Mattacott. Stage 1. 2013. Ch2.2). Comparisons, positives and issues within the market were assessed which led Stage 1 to draw the conclusion that Japan, South Korea and China are markets of opportunity for expansion. Once an area of growth was highlighted, Westbeach became a clear brand ready for further expansion through analysis of its position in its current markets and compiled research on its history, heritage and values. Stage 2 focuses on the implementation of the results of Stage 1 to make the overall expansion possible. Stage 2 will deliver the basis of expansion, from partnerships and distribution to marketing plans and brand message. The Report will compile further evidence of the three markets for chosen expansion in specific relation to Westbeach, to ensure its target audience is correctly channelled. Furthermore, within each market competitors will be outlined to ensure Westbeach stays in competition as a challenger brand. Stage 2 will develop and analyse theories and past events of competitor expansion and marketing strategies to gain insight in what has previously worked and produced positive outcomes. Outside of this report, two supporting booklets have been devised; brand book & product book alongside a PR package. To help understand the Westbeach brand and motto a brand book has been created for internal company use. A product book has been devised to give greater information on new/old products and systems and a PR package to outline press releases and incentives.

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MIssIon
The aim is to provide a business expansion plan that outlines the steps Westbeach will take to move into the three chosen areas; Japan, South Korea and China. The outcome will be a successful plan for Westbeach to adopt for their future growth.

StrateGIc ActIon PLan

The strategic action plan for Stage 2 is to gain a further +2% of Japan, South Korea and Chinas winter sport markets (Mattacott. Stage 1. 2013. Ch5.7). Stage 2s overall outline of the process and stages has been outlined using the SOSTAC model to develop a clear path of expansion.

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MethoDoLoGY
PrimarY
Primary research was used to gain further knowledge of Westbeach and to inform consumer research in regards to the marketing channels devised for expansion. An interview was set up with Ed Seymour, the CEO of Westbeach, to gain greater insight on each of Westbeachs current and past marketing channels and their success. Questions were also devised to seek his opinion on the areas chosen for expansion. A focus group was organised to gain knowledge of consumer wants from social media and an app. The discussion sought to understand what attracted consumers to using an app, what made them download and what they would want from it. This gave an insight into the requirements for the app to attract people to use it. Furthermore, Westbeach competitor adverts were shown to the group to understand what they like and dislike in an advert to help devise a successful marketing campaign. Attendance to the Slide event gave greater insight into competitors and current trends within products.

To give coherent evidence for reasons of expansion and decisions made, secondary research was vital.

Secondary

Evaluation of the future competitor within the chosen markets was researched using numerous competitor websites to understand their ways of targeting the Asian consumer. Articles were used to gain greater understanding of past competitor expansion stories and current news and situation of the chosen markets. Report databases such as GMID, Fame and Laurent Vanat were vital for brand information in terms of financial aspects and winter sport industry information. International Management; culture, strategy and behaviour and International marketing strategy; analysis, developments and implementation were two books widely used for further understanding of Joint Venture strategies and how to market within Asia. Books were also used for consumer behaviour within Asia and appropriate culture understandings. To Conclude, all information collected has been used coherently to give a greater understanding on the implementation of expansion into the chosen markets and outlined where applicable.

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18. The Brand 20. Brand Communication Image and Voice 22. Positioning 23. Future Position 24. Market Analysis 24. Japan 25. Consumers - Pen profile 28. South Korea 29. Consumers - Pen profile 32. China 33. Consumers 34. Overview 36. Consumer Types By Product 39. Consumer sizing Westbeach 40. Competitors in Asia -Westbeach and Competitor Positioning -Westbeach and Competitor Marketingrketing Positioning 48. Consumer Social Media Penetration 51. Culture Sensitivities

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The BranD

Westbeach was the chosen brand for expansion through the process of elimination after assessing the winter sports market and winter sport brands ready for growth. Westbeach was considered right due to its market position and attributes wanted by Asian consumers from a winter sport brand (Mattacott. Stage 1. 2013. Ch5.1).

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BranD CommUnIcatIon, ImaGe anD VoIce

To ensure that the correct brand image is rolled out seamlessly across all three countries whilst staying coherent to its current markets a brand book has been devised as guidance for the implementation of Westbeach for employees, partnerships and guidance for all that is involved with Westbeachs expansion. Within the brand book, Westbeachs DNA, vision, logo regulations and creative design are fully referenced and explored so that the chosen distributors will understand Westbeachs image and requirements.

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USP: TechnIcaL ProDUcts, InnovatIve DesIGn, InvaLUabLe HIstorY, ActIon ImaGe

Positioning Westbeachs current position in the market is very constricted, the market within the US, Canada and EU is extremely crowded and Westbeach has reached its point of maturity (Fame. 2013. Online). Therefore to gain greater profit and widen brand recognition, moving into the Asian market will prove most effective (Mattacott. Stage 1. 2013. Ch4.4). Future positioN Japan, South Korea and China hold a collective total of 58 million winter sport participation numbers (Vanat. 2012 Pdf). Westbeachs future goal is to gain 2% of the market, accumulating to around 1,160,000 consumers, generating huge growth in Westbeachs company portfolio and greater profit. Westbeach will do this by using its USP of its high technical equipment and action image. It is a challenger brand and offers equipment that holds design as well as function and performance catering to all types of consumer. Furthermore adding to its USP is its roots, coming from Vancouver, Canada it has over 30 years experience and history within this area offering no other finer craftsman for snowboarding apparel products.

a) Westbeach will fall into decline if it does not expand or heighten brand recognition or product innovation. b) Renewal will be witnessed in Japan, South Korea and China with a potential gain and growth of a further 2% share within those markets once introduced into the countries.

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MarKet AnaLYsIs Japan

Each markets position and consumers have been investigated to clearly identify areas Westbeach will target and tackle in expansion. Japan holds just under 40 million skier visits per year (Vanat.2012.Pdf), offering Westbeach huge potential for growth within this market. Japan is witnessing a 50/50 split in participation between ski and snowboarding (Snowjapan. 2012. Online), a further plus for Westbeach considering its strong selling points of snowboarding history and roots. However, Japans economy is at saturation point (ISN. 2012. online). It has shown very little development and with an ageing population portrays a worrying image (Mattacott. Stage 1. 2013. Ch4.1.3). The government have addressed the issue with a target plan, which will hopefully reduce government debt and move the economy forward thus creating greater disposable income within households (Snyder. 2012. online). To understand Westbeachs target audience clearly and what could potentially affect Westbeachs launch directly, analysis of the Japanese consumers has been conducted.(See Appenidix for PESTLE on Market)

ConsUmers
Japanese consumer habits have changed dramatically over the past century, previously noted as luxury and brand loyal consumers (GMID.2012.Pdf), they are now showing signs of choosing value over luxury, buying in bulk and showing flexibility towards different sales channels (Salsberg. 2010. pdf). Japanese consumers live high technology lifestyles, with growing adoption of M-commerce by young consumers (GMID.2012.Pdf). Freestyle ski and snowboarding having the medium age range between 17-35 (Hudson. 2000. Book) therefore the younger consumer is an obvious target choice highlighting the importance of mobile marketing. Additionally, though skiable areas are outside of cities, city consumers are still targets with research showing that participation is made mainly over weekends and areas of participation are under three hours away (Mattacott. Stage 1. 2013. Ch4.1.2). Furthermore, late night activities is a growing phenomenon across Japan, lifestyles and activities are 24/7 (GMID. 2012. Pdf). Japan never stops, and neither will Westbeachs consumers meaning Westbeach will need to continuously stay ahead of the game. Status, image and perceived wealth are important factors in Japans society (Mattacott. Stage 1. 2013. Ch4.1.1) implying Westbeach should understand and note the culture differences within Japan for targeted marketing. Lastly, though the Japanese consumer has experienced hardship in terms of lack of disposable incomes and the earthquake/nuclear disaster affecting many households, the latest surveys have shown that consumers are feeling much better off than a decade ago (Japan consuming. 2013. Online); this hopefully promotes greater spending on items and activities benefitting Westbeach.

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Pen profILe
The target audience for Westbeach is categorised as Young Adults. Japanese Westbeach consumer is young, ambitious and excitable. He/she has a playful, stylised image towards clothing and chooses items for their unique quality. He/She values friendship and family but is breaking away from the original traditions of early settlement and defining their own life patterns. They hold a large discretionary income which they willingly spend on pastimes and personal items. Because of a lack of family responsibilities leisure activities are very important to the Westbeach consumer. Socialising, outdoor activities, music and technical devices (TV, Laptops, Mobiles) are highly regarded within their lifestyles. The Japanese Westbeach consumer is highly receptive to change and new ideas, willingly adopting new routines, technological devices and sports. The Japanese Westbeach consumer will buy online and in-store, though they predominately like to browse and compare Westbeach products online and purchase in-store (Japan consumer.Online.2013). The consumer turns to Westbeach because of quality, style and heritage. Westbeach is a sign of status to them. They immerse themselves with Westbeach through its online site, social media and events. They follow and aspire to Westbeachs sponsors and wear Westbeach gear to any outdoor activity for style statements.

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SOUTH KOREA
South Korea witnesses a yearly rise in skier visits but currently sits at 6.5 million (Vanat. 2012. Pdf), offering Westbeach great expansion opportunities for the future. Their winter sport economy is also split by particular sport participation with snowboarding being as popular as skiing, opening Westbeach, a snowboarding apparel craftsman, to ideal opportunities. The growth in South Koreas winter sport economy is also reflected in its current economic position, with continuous growth and exciting outcomes in its technology industry (Mattacott. Stage 1. 2013. Ch4.2.1) making South Korea one of the most high tech societies, an important note for future marketing. Furthermore, the 2018 Winter Olympics in South Korea will contribute greatly to the interest and participation in winter sports within South Korea providing Westbeach with greater potential for profit, consumers and recognition. (See Appenidix for PESTLE on Market)

CONSUMER
Consumer habits of the South Koreans are ever changing due to the economys technical landscape. South Korea boasts the fastest internet download speed in the world with an average rate of 17.5 Mbps (Digitaljungle. 2012. Online). Accessible by 39 million online users accounting to 82.7% national internet penetration rate, it highlights the importance of Westbeachs online presence. Over recent years spending habits have been recorded as robust (GMID.2012.Pdf) with the traditional saving habits of the past being forgotten, opening consumers to debt. However, consumer confidence is still positive reading above 100 (consumer confidence reading) measured by the Bank of Korea. Positive consumer confidence promotes good spending and therefore South Koreans should continue to invest into the winter sports market benefitting Westbeachs expansion. Social commerce is highly important within South Korea, a reported three social media sites were operating in 2010 to over 500 in 2011 (GMID. 2012. Pdf). Westbeach will utilise this form of marketing using native sites to capture consumer attention. Internet retailing is highly important in South Koreas retail industry. With such high internet penetration and mobile rates, it is little surprise that South Koreans have adopted e-retail, clothing and fashion items accounting for the largest share of South Koreas internet retail. Mobile commerce has become a hugely popular form of purchasing and browsing products, with 60% of the nation owning a smartphone (Alcatel. 2012. Pdf). It is therefore highly important to understand and potentially adopt this retail channel to gain sales or recognition for Westbeach. The retail landscape has considerably changed over the past two decades (GMID.2012.Pdf), large retail outlets, department stores and shopping malls have become increasingly popular with consumers resulting in long opening hours, to the point of 24 hours. For Westbeach to capture the market it would be vital to place products within these department stores to receive round the clock possible sales and recognition.

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Pen Profile
Youthful, energetic, fashion conscious and technical savvy are the main attributes of the South Korean Westbeach consumer. He/She is a digital consumer, technology is essential to their livelihood, from social connections to the working lifestyle. They live an active lifestyle, they never stop, they want to access everything 24 hours a day and 7 times a week. They want to use Westbeach for all available occasions from high street style statements to practical freestyle wear. They shop in department stores for an eclectic mix of styles and convenience of having all products in one place. The Westbeach South Korean consumer is always mobile, with an active lifestyle; they constantly use tablets and smartphones to organise their life, with social media sites being the most important past time after riding along the mountain. Their social media sites keep them connected to friends around the world, in particular with other winter sport enthusiasts and friends. The South Korean Westbeach consumer is eager to learn, he/she enjoys studying and has experienced education to degree level. They are changing the traditions of South Korean culture and are eager to adopt Westbeach as a lifestyle with new and exciting paths ahead.

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chIna
China is currently witnessing 6 million skier visits per annum with a projection of continuous growth for the next decade (Vanat. 2012. Pdf). China is a heavily controlled Communist state making expansions difficult for foreign companies. To do business in China, Westbeach must acquire a joint venture partnership with a native brand to gain entry (Mattacott. Stage 1. 2013. Ch4.3.1). This means Westbeach would have to find a partner that offers its own value to grow and deliver to the expansion of the brand, something that could take time. Furthermore, Westbeach must ensure it shows the highest level of respect and understands the Chinese foreign laws. China is a heavily reliant technical country and one that is seeing huge differences in its habitants from extreme wealth to poverty (Mattacott. Stage 1. 2013. Ch4.3.1). The winter sports industry is still new to China and therefore in very early stages of development (Vanat. 2012. Pdf). However, with an overcrowding of brands that do not currently understand their target consumer or the industry, Westbeach will need to ensure it stands out from the crowd addressing its competitors failures.

consUmer
China is not a single market. It is enormous and diverse, and may be segmented geographically, culturally, and socio-economically (Deloitte.2012.Pdf)
The vast demographics and extreme differences in wealth make China a difficult country to understand in terms of consumer types. However, winter sports is a luxury concept and therefore only refers to a majority of consumer types. The most practical way to differentiate is by social class witnessed in tier areas. It would predominately be Tiers 1 (Shanghai and Beijing) and 2 (Chengdu, Jinan and Hefei) where Westbeach would witness its target consumer, representing wealthier, further advanced, modern cultures. In comparison, consumers in tiers 3 and 4 represent a more urban lifestyle in rural areas with lower incomes. By differentiating the two different types of consumers this will enable Westbeach to have a better understanding of who and where they should be targeting their consumers. Although the most profitable consumer would be the most affluent, reports within China demonstrate otherwise, with many wealthy consumers purchasing outside of China due to high tax and reported luxury goods mark ups (Kao. 2013. Online). Furthermore, within the first quarter of 2013 luxury retail spending fell to its lowest in five years, with current reports of growth slowing to single digit from double (Frank. 2013. Online). However, this does not mean affluent Chinese consumers are not spending on luxury items, they are simply purchasing abroad; Chinese consumers reportedly spent $8.5billion on luxury goods overseas in January 2013, an 18% rise on last year (Frank. 2013. Online).

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Though reports have witnessed greater overseas spending, it does not mean brand expansion within China is unrewarded. Presence of these brands with an unattainable, luxury status project an aspirational image fuelling spending abroad. Therefore, If Westbeach established itself in China it would need to project an image and status to gain consumers attention, though it may not potentially reap the rewards initially, but may in overseas countries in the future. However, though this notion appears rewarding in the future with the estimation that ; By 2025, annual consumption in emerging markets will reach $30 trillionthe biggest growth opportunity in the history of capitalism.-(Atsmon et al. 2012. Pdf), at present, it creates a negative perception of loss in profit and potential failure in expansion. With this in mind and the implication of the Chinese winter sports market not yet fully established, Westbeach should consider leaving the expansion into the Chinese market for the next 2 years. Over this time it is hoped that the Chinese consumer would begin to recognise the brand and potentially buy into it overseas.

Overview

With the decision of expanding into China later, it would seem most appropriate to expand into Japan and South Korea simultaneously, therefore Westbeach would be well established in time for the 2018 winter Olympics in South Korea. It would also enable similar marketing and expansion strategies to be used within each country so that Westbeach develops quickly and coherently across both markets. Therefore, references will be made to China alongside core implementation strategies for South Korea and Japan.

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ConsUmer TYpes bY ProDUct NeeD

Type Who, What, Why Consumer/ Product Halo effect Product Cycle

Performance

The true winter sport enthusiasts. Considers themself as professionals. Wants the best product with innovative design.

Best

High pricedpinnacle and innovative products Changes from season to season

Westbeach will need to ensure it markets itself and appeals to all consumer areas within Asia to gain the greatest profit and sales. Westbeach already has the correct products for each consumer type, but it needs to market itself correctly to raise awareness in all Asian consumer types of this.

Fashion

Function

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A customer that enjoys winter sports on a part time basis, may like the look of the product and purchase for other activities. Does not care about print and design just the technical aspects required

Good/ Essential

Low priceessential product to ensure maximum commerciality, allowing access to the brand

stays the same year on year (possibel colour vchanges)

Performance

FUnctIon

A fashion conscious consumer, enjoys winter sports quite often, wants a cool piece of clothing for casual wear too. Is prepared to pay a bit more for individuality.

Better

Medium pricedunderpins and supports pinnacle product

fashIon

Consumers differentiate not only by demographics and cultures but also by the type of winter sport participant. A table has been drawn to give evidence of consumer types and what Westbeach has to offer them. The range of product types varies from professional to essential, however professional carries the brand recognition and essential enables consumers to purchase.

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ConsUmer sIZInG
Obesity is becoming a worldwide issue; one that is most prevalent in the western consumer especially in the US and Europe but not arising within the Asian demographics as they do not consume so many cheap, fatty foods to consume on the move. (Wex. 2008. Online). . However, it is not just food that is accountable in sizing, demographics play a huge part, lifestyles in same areas often have similarities and therefore affect each individual and genetics are another contributing factor (Wex. 2008. Online). Body shapes are larger in western cultures than Asian and this is something Westbeach must take into consideration when thinking of product distribution. Furthermore, sizes within Asia are generally smaller than European & US sizes. For example, a medium in Japan would be considered a small in America (McDermott. Online. 2013). Therefor, Westbeach will need to consider product sizes stocked in Asia, and possibly consider developing a smaller size.

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Westbeachs CompetItors wIthIn AsIa

Westbeach operates in a very crowded market, with strong competition. Many brands are global with a loyal following, however Westbeach is a challenger brand which gives strong competition with unique designs and a more approachable, consumer focused image. Few winter sport brands in Asia originated there; it is foreign brands that have been accepted by the local habitants. They see what their idols (e.g. Shaun White) wear and follow this path (Sarah. 2012. Interview). Western brands project an image of status and heritage, reflecting in South Korean eyes, quality and style, something Westbeach will play on. The native winter sport brands lack the technical aspects and are much more fashion focused (Sugarhut and STL), differentiating themselves away from the traditional and popular products produced by foreign brands. Furthermore, a substantial amount of brands currently operating within this area are priced higher than Westbeach offering Westbeach a greater selling point. Because of Westbeachs specialist area of freestyle ski and snowboarding it limits itself to a smaller consumer group with a very crowded Asian market. Through analysis, interview and research a table has been drawn of competitors within Asia. Asian snowboard brands were considered however, due to their fashion orientated image and lack of serious sport attributes they have not been included. A particular note has been made to competitors current marketing channels to understand what they are channelling.

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Brand Mizuno

Sponsors/ SM Competition/ Asian Fashion Performance/ Advertising Winter sport sponsor specification Channels function wear Google + 6/6 Ski Twitter Yes No Mizuno No Yes Yes Yes Facebook Twitter Ski 14/0 15 /1

Date of expansion in Asia Founded in Asia 1949 1977

Online store No

Brand

SM Sponsors/ Date of Competition/ Advertising Winter sport Asian Fashion Performance/ expansion in Online Channels specification sponsor store wear Asia function Facebook Twitter Vimeo Instagram Flickr Facebook Youtube Twitter Google + Twitter Facebook Youtube Twitter

686 No Yes

Yes

No

Freestyle

No

2000

No

Spyder Quiksilver

Facebook Freestyle ski/ snowboard Twitter Youtube Facebook Freestyle ski/ snowboard Twitter Youtube Facebook Freestyle/ Snowboard Twitter Youtube Facebook Twitter Instagram Snowboard Pinterest Youtube Facebook Snowboard Twitter Facebook Twitter Tumblr Snowboard/ Ski Vimeo Youtube Pinterest Instagram

Helly Hansen

Yes

Yes

Ski

5/0

1995

No

Volcom

Yes

Yes

24/0

2001

No The North Face

Yes

Yes

Ski/ Snowboard

6/4

Yes

DC

Yes

Yes

6/0

Yes No Columbia Snowboarding Nike Yes Yes Yes Ski No Yes

Burton

Yes

Yes

40+/3

1995

Yes

Bonfire

Yes

Yes

135/13

Yes

Dakine

No

Yes

37/8 26/5

1998

No

Facebook Twitter Snowboard Tumblr Vimeo Youtube Pinterest Instagram Reddit Baidu Digg Arto + many more

27/0

1980s

Yes

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Westbeach will hope to position themselves here within the Asian market against its competitors. As the challenger brand they will continue to compete and contest its competitors with innovative marketing and products whilst keeping to their price points of being affordable to many, this will hope to ensure to only gain custom and not loose it. They will also do this by sticking to their USP of technical products and action image.

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Through a perceptual map, the marketing information has been assessed to understand who is best channelling the Asian consumer;

Move iN here

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All competitors are working online to market themselves and sell products, some own their own stores but this is limited with many using distributors to sell products. Furthermore, few brands are channelling both High online, mobile and sponsorship activity, with many picking one as the main from of marketing, Westbeach could capture the market by utilizing all three areas affectively to gain greater recognition and sales.

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ConsUmer SocIaL MeDIa PenetratIon

Social media is now prevalent in many countries with Facebook and Twitter being the dominant sites for western societies but not necessarily in Asia. Japan and South Koreas top social media sites need to be researched to ensure the brand is connecting with their future consumers. Facebook, Twitter and Instagram are already being utilized by Westbeach and should continue within Japan and South Korea where there is already high penetration figures of these sites (Mattacott. Stage 1. 2013. Ch 4.1.1-4.2.1). However, additionally other popular local social media sites for each country will need to be utilized: Maxi is Japans top social media site with over 23 million subscribed users accumulating to 80% of the populations market share, followed by Twitter and Facebook (DigitalJungle. 2012. Online). Maxi is a similar style site to Facebook and therefore similar content can be posted on Facebook as on Maxi. Cyworld is South Koreas leading social media site with over 25 million subscribers. Cyworld is a mixture between a blog and personal homepage with huge differentiation of consumer types. Though Cyworld is currently the largest social media site in South Korea Facebook has started to receive the greatest amount of visitors each month demonstrating a potential rise in consumer subscription in this area (Digitaljungle. 2012. Online). This highlights the importance for Westbeach to continuously use Facebook. Across all social media platforms Westbeach will need to ensure dissemination of the right, coherent message is released. It will need to stay relevant, up to date and insightful (Savitz. 2012. Online).

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Cultural Sensitivities
When expanding into a new market it is important to fully understand the culture as these factors influence consumer and buyer behaviours (Doole et al. 2008. Book. P72). Japan and South Korea have deep embedded roots and connections to their history, traditions, values and cultures. When advertising, foreign brands, must ensure they stay respectful and aware of advertising laws. South Korean marketing codes and laws state that you should not; prevent unfair labelling and advertising of products and services likely to deceive or mislead consumers and to facilitate the provision of correct and useful information to consumers so as to establish fairness in trade and protect consumers. (http://uk.practicallaw. com/5-501-0628?source=relatedcontent#a719802) Westbeach does not produce any inappropriate adverts that would disrespect consumers however they will need to ensure they produce content in the native language to abide by the laws and to not mislead consumers. If they continue their advertisement style they will be accepted and acknowledged but Westbeach will need to ensure it has a good understanding of language and culture.

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54. Joint Venture 57. SWOT 58. Potential Partners Partners for Japan Partners for South Korea Outcomes 62. Management 65. Risk management 66. Financial management 67. Employee performance and morals

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An IJV is an equity sharing arrangement in which a foreign corporation and a local firm pool their resources, sharing risks and operational control to operate an independent business unit on a continuous basis for profit and/or to attain some strategic objectives. (Julian.C. 2005. Book. P1)
Chinese laws state that a foreign company moving into their market must do so though a joint venture. Though Westbeach expansion is not scheduled within China initially, learning points from expansion into Japan and South Korea will help understanding for future reference. By entering into an international joint venture (IJV) many firms find that partners in the host country can increase the speed of market entry when good business and government contracts are essential-(Dooloe et.al. 2008. Book. P254). Furthermore, an IJV will provide Westbeach with greater finances for expansion, helping marketing and initial set up, crucial to generate recognition, which is why this strategy has been chosen. A joint venture would provide More resources Greater capital Increased technical expertise Access to established markets and distribution channels It was queried whether a possible partner company would be able to offer ideal connections and distribution skills across all three countries of launch. However, as time progressed it became apparent that partnering with a company that specialized in each country would offer Westbeach a greater platform for expansion and knowledge. Therefore, separate partners for Japan and South Korea will be chosen, leaving China for the future.

Entry Strategy: Joint Venture

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SWOT: JOINT VENTURE

Strengths Access to new markets and distribution networks Increased capacity Sharing of risks and costs with a partner Access to greater resources, including specialised staff, technology and finance Greater capital Weaknesses Means Westbeach does not have full control over its brand The partner company has not always worked with Westbeach and therefore does not understand the companys true roots and ideologies Compulsory entry form for China OpportuNities To gain greater support and insight into the market Increased Profit Greater ability to target a larger consumer base Threats If the objectives of the venture are not totally clear and communicated to everyone involved The partners have different objectives for the joint venture There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners Different cultures and management styles result in poor integration and co-operation The partners do not provide sufficient leadership and support in the early stages.

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Japanese Partner Potentials

PotentIaL Partners
It is important to choose the right partner to do business with to ensure that equal party benefits and gains from the agreement. To find the correct partners for each country comparisons of potential partners have been drawn.

Company

Date of Launch

Companys they Already Manage Uvex Alpina Leki Reusch

Capital

Description Distributor / chain store / shop sports nationwide Import and sales of bicycle helmets Snow goggles / sports sunglasses / helmet import and sale of snow / ski pole / ski glove wholesale import safety protective equipment Business management, store management business planning business events, wholesale import business planning and sales management OUTDOOR supplies wholesale and selling business selling wholesale business, such as SKI AND SNOWBOARD business planning and management of various events overseas tour information provider Import and sales planning, action sports (surfing, boogie boarding, skateboarding, snowboarding, etc.) of equipment planning and management of school tournament event planning, sales, import and casual wear (street wear, marine hardware) accessories and shoes

Becks Sports Co., Japan c

1999

40 million yen

The appropriate Japanese partner for Westbeach will be Full Marks. Though the other two offer greater capital to the partnership and work with prestigious sporting brands, Murasaki Sports Inc works directly with one of Westbeachs main competitors, potentially causing issues within the partnership. Full Marks works with other foreign winter sport brands, however none that are in direct competition with Westbeach, offering Full Marks a greater opportunity of profit. Full Marks also offers the exact areas of expertise that Westbeach require for expansion, from business management to wholesales.

Full Marks Co., Ltd. July 2000 (FULLMARKS Inc.)

Norrona Odlo Hestra Houdini Hike Snail Racing Poc Wand Snowboards Kask Vector Glide Rojk superwear Fullmarks Burton

30 million yen

Murasaki Sports, Inc.

1973

50 million yen

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Company

Date of Launch

Companys they Already Manage

Capital US

Description We think that sincerity is most important factor as all kind of transactions. South Korea is a considerably smaller market in comparison to Japan and therefore a joint venture is not generally practised for expansion, with many of Westbeach competitors just creating subsidiary brands. However, after research Kmarket Co. Ltd. appeared to be the most favourable option for partnership and expansion over Xenocube due to their greater areas of management. They currently work only with a South Korean snowboard brand that deal in oversized fashion products. Though they have similar qualities the two brands are quite different in technicalities and function areas. The company will arrange distribution and trading, helping Westbeach to sell in greater areas currently unknown to them. Both partners already distribute snow sport apparel and accessories and therefore will have knowledge of sales channels right for Westbeachs products.

Xenocube

2002

$50 Million

With many partners in s. Korea, japan and china, we trade apparels, golf And snowboarding equipments.

KMARKET CO.,LTD.

2004

STL

$5 Million - US$10 Million

Manufacturer, Trading Company Distributor Ski wear,Snowboard wear,Rash guard,wake pants,street wear

The partnerships will both be signed to a three year initial partnership for evaluation by either party at the end of the 3 years. This will give Westbeach a chance for change if either one of the partnerships is not beneficial.

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ManaGement
The joint venture is an equity joint venture where either side of the party puts in finance. This can adjust the degree of control each company has over the partnership and business (Hodgetts et.al. 2006. Book). However, the partnerships with Westbeach between Kmarket Co.Ltd and Full Marks will have a 50/50 split in shares and control. Sharing risks, resources and capabilities can often position two companies to gain more success together than alone- (Hodgetts et.al. 2006. Book) Furthermore, Western and Asian methods of doing business are very different, and therefore it is very important for Westbeach to fully understand the differences before entering into business with the foreign partner. To form a better understanding of these differences a comparison of Asian and Western management features has been included, as shown here, devised by Frederick Swierczek and Georges Hirsch (Hodgetts et.al. 2006. Book. P279). By understanding these differences, a successful partnership will form contributing to a prosperous expansion strategy.

WesterN ASIAN

WesterN

ASIAN

ASIAN

WesterN

WesterN

ASIAN

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RIsK manaGement
A joint venture will minimise the risk of setting up Westbeach in an unknown market place. By pairing with Full Marks and KMarket Co. Ltd, Westbeach will have a greater chance in understanding and connecting with the Asian audience (Dooloe et.al. 2008. Book. P254). Furthermore, Full Marks offer Westbeach insight from over ten years experience working within Japan, and KMarket nine within South Korea. However, Westbeach will not have complete rights to their company and therefore will lose some of the control. Having two companies working on one project could result in disagreement creating a potentially hostile relationship, leading to failure to launch. The most common difference that appears in IJV is differing goals (Julian.C. 2005. Book. p88), however the goals will be clearly outlined in advance to avoid such issues. The two companies have been chosen for their professionalism, knowledge and history and therefore offer an ideal platform for Westbeach. Westbeach must insure it shows respect and consideration to any suggestions or requirements asked by Full Marks and KMarket Co. Ltd.

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FInancIaL manaGement
Full Marks and KMarket Co. Ltd offer greater investment into the launch which can be divided into different marketing strategies and further costs identified in expansion. Both companies offer good capital, and though Full Marks offers more it also covers a greater number of brands to subsidize. The financial strategy is usually carried out by the overseas affiliate or branch because little problems occur(Luthas. 2006. Book. P270) this will save moving money and having to understand new banking systems and laws if financed locally and through the partners. Westbeach will also have a better ability to finance and profit from IJV through funding even though it splits its stake in the business.

EmpLoYee performance anD moraLs

By partnering into a joint venture Westbeach can use Full Marks and KMarket Co. Ltds knowledge of employee laws and regulations. The company can ensure that Westbeach finds the correct employees and producers for the brand to ensure maximum positive brand recognition. Westbeach has little knowledge of the employee laws in Asia and therefore Full Marks and KMarket Co. Ltd can ensure that the correct legal contracts are drawn up, to guarantee no possible issues in the expansion strategy. Furthermore, an internal Code of Conduct will be implemented within the business, drawn up by the partners and Westbeach to set global policies. It will also communicate to all employees as well as suppliers and distributors on our ethics, behaviour and law, sending a coherent message globally (Daniels et al. 2011. Book).

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P
70. Products 72. Attributes Styles, Fit and Sizing 73. Wind and Waterproofing 74. Environmental and Social impacts 75. Product life cycles 76. Presentation and Packaging 78. Product extension -Idea and design 82. Facts & Figures

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Products

Westbeach produces apparel and soft products that provide the complete package required for any snow sport athlete to take part in a winter sport. Westbeach is a craftsman in winter sport apparel; all products are of the highest quality, they are tested and re-tested by winter sport athletes to ensure there are no better products available. The products have high technical and innovative design aspects, a known valued attribute by the Asian consumer for outdoor wear. Attributes and issues with products have been discussed to understand potential issues and positives for the Asian market. Further product information can be found in the two supporting documents; Brand book and Product book.

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Attributes

Styles, Fit & Sizing

Westbeach categorise their products into these areas: Classic, Tall, Bomber, Loose and Slim. These names give reference to the way the garment will look and style of shape, they do not refer to size. Within South Korea and Japan snowboarding is hugely popular and therefore all shapes are ideal for boarding.

wInD anD waterproofInG

Technical & wind and water proofing systems The Japanese and South Korean consumers are known to like high wind and waterproofing systems due to the technical aspects (Cholin. 2012. Interview). Therefore, Westbeachs high technical waterproofing/wind proofing products (Atlus & Cocona) will more likely sell within Asia necessitating larger stocks of these to be kept in stores and online initially. Westbeachs wind and water proofing systems are noted to in the brand book

Westbeach currently operates with sizes from extra small to extra extra large in European standards. Asian consumers have a smaller size frame than the European/ Western consumer so a referral in product sizing should be addressed to ensure it caters directly to that consumer. Furthermore, Asian consumer arm lengths, ankles and wrists are smaller (Seymor. 2013. Interview) meaning Westbeach may have to look into its jacket and trouser fit to ensure the product would be compatible with the consumer. However, many of Westbeach jackets currently have Velcro wrist bindings to fit all, and trousers would fit around the boot not the ankle, so this would most likely not be an issue. If a smaller size was created this could be rolled out across the rest of Westbeachs consumer community as the smaller size could also attract a younger western age group. In conclusion, Westbeach should produce a smaller shape, in Western terms XX small, which in Asian sizing counts for XS. Furthermore, the XX large sizing in Westbeachs product lines will not be needed for Asia and so by substituting XXS for XXL no extra material costs will be incurred.

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Westbeach understands the importance of environmental factors within Asia and the need to decrease CO2 emissions, a direct cause towards global warming which constitutes a worrying factor for the winter sports market (Mattacott. Stage 1. 2013. Ch2.2.5). With this in mind Westbeachs new green products will be a strong selling point and one to be continuously advertised. Cocona is a new waterproofing system that is made from activated carbon from recycled coconut shells. The green technical wash reaches a high 20k/30k waterproof-breathability rating and therefor offers the desired aspects for the Asian consumer. This product will be highly advertised and pushed within the market as a pivotal USP for Westbeach.

Westbeach holds classic collections that are staple pieces in its product range. These products do not differentiate between each season, they hold the same cut, fit and sizes however occasionally a new colour will appear or disappear. Though these products have reached early maturity within their life cycle they are still selling and continuously sell through other seasons and will be important to take to Asia. In regards to collections that seasonally change, the best sellers from each collection will need to be identified for Asia. Furthermore Asias snow season lasts between mid December to April (welovesnow. 2013.Online), therefore the season comes slightly later than America and Europes. As a result before products begin to ship, market sales within Europe and US can be evaluated to ensure guaranteed profit products are being featured to primarily attract the Asian market when first launched.

EnvIronmentaL anD SocIaL Impacts ProDUct LIfecYcLes

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PresentatIon anD PacKaGInG

Products currently come with swing tags holding product information, from sizing to waterproof systems. Similarly these will, apply to products destined for Asia but produced in the native language. Westbeach currently creates film clips of each garment and posts them onto its Vimeo site to provide further product information. A QR code will be placed onto the swing tags for a consumer to scan with a smartphone, which will screen the film clip of the item as witnessed online generating Further engagement and information. Furthermore, with products that are ordered online the product will be sent with a lookbook for the consumer to browse Westbeachs collections further.

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ProDUct EXtensIon
Technical aspects in everyday products are becoming increasingly popular due to competition between brands. Having digital experiences integrated into products enhances the consumer experience and brand image. Oakley is the newest winter sport brand to produce an innovative product; high-tech Airwave goggles. The goggles have the ability to allow you to view, all within your goggles, what seems on a 14 wide screen to be your precise location, how far youve travelled and to track your altitude and speed on piste alongside the other statistics pulled from your last run or jump (Polliciono. 2012. Online). This technology sets the future for goggles. The industry is already seeing links within branded snowparks and technology with cameras (Mattacott. 2013. Stage 1. Ch3.5) but this is outside of products. Westbeach competitors, North Face and BCA made avalanche airbag rucksacks to help the winter sports athlete ride to the top of the avalanche instead of under it (Nicholson. 2012. Online). All of these innovative ideas help brands stay ahead of their competitors whilst enticing and capturing consumers. Therefore, If Westbeach were to produce a rivalling and innovative product this could help expansion and capture the market. Japan has the best powder in the world, they have deep snow and vast terrain which the Westbeach consumer could explore. If Westbeach created a jacket which offered the avalanche protection alongside its already many technical aspects it would stand as a pivotal point in the industry forging ahead of its competitors. The product would be in synch with Westbeachs proposed app (discussed in marketing chapter). If the air release toggle for the airbag was pulled it would send a signal to the app which if not deactivated would then send a further signal to the closest help and safety point with the riders individual reference number. Evidently in each resort and surrounding areas the software could be installed to the resorts help & safety points, so this strategy would act as a roll out plan, initial introduction in main resort areas followed by less well known resorts once the product has taken off. The product would initially just be for the launch into Asia to entice the consumer as a limited, first available offer, generating hype and interest into the brand and product.

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The IDea & DesIGn

Airbags inflate out of here SYstem fits iNto here

Air Release Toggle fits here

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Facts & FIGUres

The ABS system has been questioned and researched over the past year a considerable amount due to the increase in sales within this area. Research has shown that If caught in a avalanche you stand an 81% rate of survival. However, with the ABS system you stand a 97% rate. 262 activations occurred during the ABS testing cycle, 3% died, 97% were visible on the surface, and 84% were uninjured and able to self rescue (Tremper. 2013. Online). This promotes ideal results for the equipment. Though many argue its false advertising as brands state the result is 97% down to their product alone, the product does improve chances by 16% and further improves chances of being uninjured and available at the surface (Tremper. 2013. Online). These statistics offer the New Product a great leverage and selling point. Even though its only a 16% greater chance that still can count for a lot in terms of lives, and it does exceedingly heightens the chance of being uninjured.

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86. Taxes and costs 87. Price 89. New product pricing

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TaXes anD cost

South Korea and Japan both have consumption tax rates on goods, however not to the same level as in Europe. Japan currently charges a 5% rate (4% national, 1% prefectural), but is scheduled to be increased to 8% in April 2014 and to 10% in October 2015. South Korea charges a 10% rate, but a 0% export rate. The increase within Japan will have to be continuously measured to ensure no loss is incurred on product revenue. Shipping Westbeach currently manufacture in China and Vietnam and therefore shipping from there will incur very little cost in comparison to what they pay to the US and EU. This offers Westbeach the opportunity to potentially lower their product pricing. However, to stay coherent across the markets and keep within the higher market price, they can take additional profit and possibly apply the finances to other divisions within that company to increase growth.

PrIce
Pricing is a very important component to expansion; Westbeach will need to appropriately price their products to gain consumer interest. They will need to ensure that they stay within a budget to maintain revenue. Westbeach products currently have a range of prices depending on each product

Products Jacket Trousers Gilet T-shirt Hoodie Jumper Bags Gloves/Hats

Mens 90-250 130-180 100 17 50-80 40 30-50 20-60

Womens 90-180 125-130 100 17 50 40

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Analysis of top competitors price ranges : Product Jacket Trousers T-shirt Hoodie Jumper Bags Gloves/Hats Quiksilver 69.99-297 150-89 9.99-40 35-99.99 30-119 22-89.99 11.99-60 BurtoN 120-535 115- 335 22-40 55-80 45-70 40-185 22-130 BoNfire 130-250 109-140 14-60 30-70 20-40 50 15-59.99 Dakine 80-305 110-239 11.99-59 15-72.99 50-70 17.99-126 12.99-82 North Face 59.99-290 45-320 19-40 54-140 24-54 36-199 13.99-99

New Product Pricing

The new product however will be priced high. This is because of the technical aspects and the halo effect. The price has been established through competitor similar product pricing and own product pricing.

Westbeach will use a competition and product line pricing strategy to stay brand coherent and still be competitive. This means Westbeach will not need to change its pricing significantly as it currently operates this strategy in the US and EU. If Westbeach were to increase their pricing they would find themselves in direct competition with Quiksilver and Burton; at the moment they compete against these brands but have the advantage of being slightly lower priced. If they decreased their prices they risk cheapening the brand and giving the impression that the quality of their products is not as good as their higher priced competitors. By continuing their current price they can gain an image through price, still be in competition with their main competitor, but potentially reach out to greater consumer types.

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92. Place 96. Online and Mobile 98. Time

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JapaN
Chosen Retail Stores Store Name Nom of Stores Operating Revenue Description

PLace
Westbeach will be partnering with Full Marks and KMarket Co. Ltd in a joint venture strategy for its connections with distribution and therefore will be using them as the main researcher and positioner for Westbeach products. This will be particularly appropriate for snow sport specialist stores known for generating high sales (SIA. 2012. Online). Department stores however, for reasons of accountability, accessibility and recognition will be another form of selling. A number of department store chains have been identified as sales channels to reach all areas of the two countries and present greater sales opportunity. The stores chosen are shown in the two tables. By placing Westbeach in these high end, high profile department stores it will enable Westbeach to reach a much wider demographic and open itself up to new consumers generating greater profit. Furthermore, many other foreign snow sport brands sell using this channel giving Westbeach a direct chance of competing against its competitors. Takishimaya 20, Also has stores in Taipei, Paris and Singapore

869,476m Yen

Founded1829 Sells Apparel, home furnishings, appliances, jewellery, and personal items. It also has its own restaurants inbuilt into their stores

Sogo & Siebu LTD

24 stores

817,927m Yen

Founded 2009 Sogo & Siebu LTD control sister stores; Loft, Robinson Department Store, Sogo, and Seibu Department Stores. It is a subsidiary of Seven & I Holdings Co., Ltd.

Isetan

6 stores in Japan. Also has stores in China, Malaysia, Singapore, Taiwan, and Thailand

365,923m Yen

Founded 1886. Sells apparel, home furnishings, appliances, jewellery, and personal items. The company also operates restaurants and offers real estate, financial, and travel services.

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South Korea
Chosen Retail Stores Store Name Nom of Stores Revenue Description

Shinsegae

10

1,430,600,000,000

Founded 1955. Shinsegae was originally part of Samsung Group, separated in the 1990s. Operates from luxury to mainstream fashion. Also works across hotels, It and Mall developments

Lotte Department Store

36 stores, stores in China, Vietnam and Indonesia

439.57 bn

1979, we have led the progress of Koreas distribution industry by offering classy shopping environment, quality merchandise, superior service, and advanced distribution system. During the past three decades, we have grown as Koreas leading distribution firm in terms of size, sales, and service.

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OnLIne anD MobILe Commerce

To ensure contact and connection with all consumers across Asia a native online store will also be set up as seen in Europe, US and Canada. The store will be available across Japan and South Korea and set up immediately for expansion. M-Commerce was recorded to be hugely popular and on the rise (GMID.2012.Pdf). Therefore, a mobile site will be introduced into the Asian market also enabling the Asian consumer to access Westbeachs site anywhere at anytime on their smartphone, hopefully generating greater sales and profit.

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TIme
Westbeach will need to be precise on their season of expansion and entry into the market. Soft products sell much earlier than hardwear (SIA. 2013. Online), and therefore it is important to move into the market to catch the initial sales. Sales begin as early as October (SIA. 2013. Online) and therefore Westbeach needs to ensure that it is in place for sales from the end of September. Products can then be in place within the department stores, snow sport shops and online for the coming season and re-evaluated by the end of the snow season.

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102. Communication strategy 105. PR 107. Email 108. Celebrity Endorsement 109. Social Media 111. Social media campaign 112. Concept 115. Implementation 116. App 122. Pop up Shop 126. Consideration

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PropositioN Communicatring to the Westbeach Consumer Enticing new consumers Capturing 2% of the Asian winter sport market Challenging competitors

Role of media To engage & target potential consumers To entice To gain global recognition To increase sales Widen market share Provide consumers with information

MarKetInG

When looking at the Asian market it is important not to assume Asian consumers are connectable through the usual media seen in the EU and US. Westbeach mainly operate online, selling and advertising, which will transpire well into the Asian market due to high online penetration rates (Mattacott. 2013. Stage 1 ch5.5). However, Westbeach must address traditional methods of advertising within the Asian market to assure its targeting all possible consumers.

Challenges Will not understand the culture Will need to learn the advertising laws Will have to appeal to different consumers Will need to find ways thats most effective to market Need to understand the local language

TV Mobile

Media options Online Editorial

Event Radio

CommuNicatioN Strategy

A communication strategy has been devised for clear objectives, aims and targets of the marketing outcomes and inputs within the Asian market.

Appropriate media Online- social media, website, email Mobile- mobile site, app Editorial- Press releases to local newspapers, specific magazines, Event- pop-up shop

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Level of launch Online and Mobile- Gold media status, high penetration and global access Editorial- Silver status, markets to specific consumer types which is a positive but can also not reach everyone as effectively as the others Event- Bronze status- The pop-up shop will enhance sales, widen recognition and provide free advertising, but it is only situated in two places making it inaccessible to many.

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PR
To ensure integrated PR news of Westbeachs expansion will be disseminated to local news broadcasters a press pack has been devised. Different press releases will be given to the media to leak at certain stages of the expansion plan. For example, the first release will be to make the announcement of a new brand expanding over to their country, the second, to shout about launch and the availability, and so on. Press will also be sent an invitation for the Industry launch event of Westbeach due to take place at its Pop-up store to encourage word of mouth and articles on the event, brand and collection. For full press pack information see external document.

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EmaIL
Westbeach currently offer consumers a chance to subscribe to receive emails regarding current Westbeach news and information from products to sponsors successes. E-mail is a hugely effective way of marketing, Digital Strategy Consulting research has found: 67% of customers give their email addresses to companies to receive discounts and promotions (Hotz.2012.Online). 57% of customers say they are more apt to buy a product in a store after receiving an email (Hotz.2012.Online). Furthermore, with such high smartphone subscriptions it is becoming increasingly popular for people to open and read emails on their phone, enabling brands to target their consumer at any time of the day. Westbeach will therefore continue to adopt this form of marketing within Asia on the same basis as it does in Europe, Canada and US.

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SocIaL MeDIa
Social media is a growing phenomenon within Japan and South Korea. It connects Westbeachs potential consumers and therefore is an ideal way to market to them. As discussed previously in chapter 2 (page 48), the social media sites being used to market are: Facebook, Twitter, Cyworld and Maxi. Mixi and Cyworld has very similar ideals to Facebook, meaning that no new content will need to be created for these sites. What is posted on one will be available on others, however the social media pages that are specific to that country, for example Maxi for Japan, certain news on that specific country or area promotions will be posted. Video sharing Video sharing on social media sites is very popular across Asia on both web and mobile platforms. It is an effective way to educate and inform consumers. Westbeach currently use Vimeo and Youtube the latter will continue to be used due to its popularity in Japan and South Korea. However, Westbeach uses Youtube as a way to share videos of its sponsors and not its products, this is done on Vimeo, so efforts will need to made to ensure product information features additionally on Youtube. Furthermore, in January 2013 the second most used area of the online web, after search services, was to watch online videos (Amanda.2013.Online) highlighting the importance of using such a marketing tool.

CeLebrItY EnDorsement
Westbeach currently sponsors two Japanese snowboarders; Tomohide Inoue and Ryoki Ogawa, generating recognition within Japan. However, they do not sponsor anyone from South Korea, so, it would be important to find sponsors within these areas to show respect and integrate itself in the local country. South Koreas snowboard market and contestants are still relatively untapped in the shape of sponsorship, however a budding snowboarder is Gun Woo Kim. In 2011 he came 3rd at the North Face snowboard competition (a global event). He is young, adventurous and impressive, with incredible skills. Assessable to fans, he consistently rides at Phoenix Park, the most famous snow park in South Korea increasing his fan base. He is also not new to social media as he has documented some of his rides previously and continuously updates his site and status. . By sponsoring local athletes Westbeach will manage to achieve greater media coverage and required image perception within that countries snowboarding & freestyle community. Furthermore, the greater the sponsored athlete, the greater their personal brand and fanbase, therefore providing a greater opportunity to target consumers (Bezamat. 2012. WGSN).

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Concept

Concept Specific

Description With such high video and photo sharing witnessed in Asia, the campaign has been built around this concept, initiating consumer and brand interaction.

The Social Media Campaign Concept

Profession Name/Place Description

Campaign Idea

Video + Photo Sharing

Title

How Far Will You Go?

The title has been chosen as an open question for consumers to interpret/ answer it how they feel fit.

Place

Niseko

Niseko has the second heaviest resort snowfall globally and is one of the largest resorts in Japan. It caters from the beginner to the extreme sport enthusiast and therefore offers a wide range of areas for shooting photos. (http://www.niseko.ne.jp/en/) Westbeachs Sponsored athletes will be used as the models in the shoot to broaden their recognition and build association with that person and Westbeach. Furthermore, by putting a recognisable athlete with Westbeach it highlights the seriousness of Westbeach as a brand. A specialist photographer in snowboarding/ skiing in extreme conditions. commissions for advertising, editorial, brochure and catalogue work and produce creative stock images which are distributed through a global network. Has worked with many recognisable winter sport brands such as NorthFace and Regatta (Woodhall. 2012. Online). Ross Woodhall will produce the right image for Westbeach and show the product and the athlete to the best ability.

Sharing

#IGOTTHERE

The hashtag concept will enable wider broadcasting of peoples responses generating greater brand awareness.

Person

Westbeachs Sponsored Athletes:

Social Media

Share, Post, Tweet

Consumers will upload their image of their goal/experience/success with the attached hashtag to the social media pages, noting it back to Westbeach

Photographer

Ross Woodhall

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Advertising

Sponsor endorsement

Westbeachs sponsored athletes will be pictured/videoed in print ads and clips to spread the message and advertise the campaign.

111

CONCEPT

112

113

IMPLEMENTATION

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App
Apps have developed and become increasingly popular, featuring highly in day to day life. With such dominant technical industries within Japan and South Korea it is important to find relevant and up to date ways to connect with consumers. Many of Westbeachs competitors have produced an app to work for their consumers, Burton has partnered with Nokia to produce Nokia Push (Mattacott. 2013. Stage 1. Ch3.2.1), an app that records the riders journey and Quiksilver produced an app designed for New Zealand and Australia giving information on current conditions of resorts and runs, ratings and info. By creating apps that enhance your consumers connection and experience with their sport you are creating a positive brand image and loyal fan base. Therefore to connect successfully with the target audience it is appropriate to challenge their competitors by creating a rival app encouraging greater consumer brand connection. Westbeach once tried to launch a gaming app, however it failed due to technology not being sufficiently advanced and at that time smartphone penetration rates were not as high as now. Burton have very successfully managed to get brand recognition in games through their sponsorship of Shaun White (Top Snowboarder), who appears in many snowboard games. By producing a gaming app this engages the

consumer outside of participating in the sport, and potentially helps introduce and gain winter sport engagement and participation. However, Westbeach wants to still appear top of its game and technical. The Asian consumer was noted to like technicalities in products and therefore the app could have two facets to it; a gaming side and its technical information side, both continuously advertising the brand and encouraging purchase. More than ever, games reach a broader and more diverse audience, and developers in Asia have led the way in creating content for this wider market- (Akhavan. 2013. Online) Within Asia the gaming community and culture is hugely important and used by a huge demographic. By producing an app Westbeach opens itself up to a much wider demographic than potentially available to it on social media. To create an app of this extent however, greatly increases the price of up to a possible 250,000 (Thomas. 2013. Online). However, Westbeach is launching into hugely technical industries, where major telephone and digital companies were founded. LG and Samsung are two of the biggest home and personal technology product providers. They both originated in South Korea and have battled to be the best, creating huge advancements in the technology world. To produce the app, Westbeach can collaborate with either one of these companies, raising the app profile and gaining greater insight into app technology, similar to what Nokia did with Burton. Furthermore, in this way the cost would be less and would work as a marketing tool for both parties.

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Samsung is the larger company with greater global recognition, but they may not be interested as they have very little past history in winter sports where as LG has had a long standing presence within this area. LG have previously sponsored winter sport events and even own the most popular snow park in South Korea; Phoenix Park. By pairing with Westbeach LG can continue their involvement within this market, whilst furthering their potential consumer. The app would also be created on the android platform instead of Apple, due to higher Asian penetration and increasing the ability to use the app on different devices instead of constriction to Apple products. The aspects of the app will involve gaming and information as explained here: The game- Snow Rider The game would be similar to Westbeachs past efforts in an app. It would be a simple idea of roleplay, the gamer would be the boarder or skier on the screen and would have to have the rider overcome each ski run. The further you get and more points you collect you are able to purchase more equipment, with the idea of the avalanche jacket being the top desired piece, thus promoting the jacket. Furthermore, the gamer can dress the icon in Westbeach clothing with the original styles and as he collects more points he can continuously upgrade the outerwear. If the gamer wanted to purchase the apparel worn by its player he can click on the product which will take you onto Westbeachs website, where the gamer can browse further products or purchase.

The technical information- SKNOW The other side of the app is an informative piece. It will give you resort and run information; altitude, weather information, maps. It will also be able to record distance travelled that day and calculate calories burnt to create a personal touch and entice the female winter sport participant. Lastly, in connection to the new avalanche airbag jacket, the consumer can put his unique identity jacket reference number into the app to enable connection to the jacket and closest help & safety centre, the participant however must ensure he is connected into the right resort and surrounding area to be in sync with the help centre. Due to the size of the app the technical information will only be downloadable up to five resorts at a time to keep GB space down but when changing resort the past resort can be deleted and new resort downloaded.

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120

121

Pop-Up Shop
Pop-up shops have been used continuously over the past decade as a form of growing interest, hype and sales. A pop-up shop can act as a type of safety net, pop-ups dont hold the same financial fears in terms of signing up to a long-term lease and the associated pain of sky-high business rates. -(Thomson. 2012. Online) By having a pop-up shop this will help decide on a future store for Westbeach within the market. Furthermore, whilst acting as a safety net to test the market it also provides hype and interest. A limited timed shop would generate interest, which could prolong and establish Westbeach into the market.

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The pop-up shop would be designed as a place to attract and target consumers whilst also generating brand recognition and potential sales with a sensual experience. The shop will have: Gaming corner- publicizing the app, with an allocated section for consumers to play on screen through augmented reality. Product sample area- where you can try on, feel and understand product information and make an online purchase Winter Weather room- Consumers can experience and try products in freezing and snowy temperatures/conditions. This concept would be new to the consumer and generate excitement and recognition. Furthermore visitors to the store will receive a 15% discount on the items as a form of saying thank you from Westbeach. Only two pop-up shops will be created in the capitals of each country; Seoul and Tokyo. This is to save cost but also it will be a place to visit, something special and unique which consumers will want to visit. Furthermore, the news of the location of the pop-up shop will be much wider recognised and reachable by the rest of the country. The two shops will be placed in Ochanomizu district for Tokyo Nonhyeon-dong for Seoul These areas are both key districts for outdoor goods and busy areas, offering huge potential for recognition. The shops will be placed in a busy open area, such as a square.

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Channel

How

Who With

When

Magazines

Publish print adds and press releases in specific winter sport magazines to target the exact consumer

OutdoorJapan Snowboarder TransworldJapan snowboarding

NowRelease news alongside the other forms of marketing to reach out to the target consumer.

ConsIDeratIon
Other advertising channels considered:

TV

Release the video clips made for online video sharing and Westbeach TV as TV advertisements

Sports Channels Outdoor and traveling channels

Future- depending on how well the other marketing channels work

TV Billboards

Screen the video clips made for online purposes to be shown on TV billboards in major cities

In major cities with the city council

Within the next yeardepending on how well the other marketing channels work

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130. Implementation 132. Time line

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ImpLementatIon
Timing will be key in expansion; Westbeach must ensure it rolls out the appropriate marketing pieces on the correct platforms at the correct time so not to miss any potential profits. Because of the technical aspects of expansion, Japan and South Korea will be targeted simultaneously as stated previously and China will be re-evaluated for expansion once a successful implementation is witnessed in Japan and South Korea. The overall plan is devised to take place over 2 years. Goal 1: to set up appropriate business partnerships for smooth running of initial expansion Goal 2: to devise and outline retailer avenues and distributors Goal 3: to gain Asian consumer recognition (through marketing) Goal 4: To become a strong competitor and sole winter sport consumer choice for apparel Goal 5: witnessing high profits Once each goal is successful within South Korea and Japan, China will be reevaluated and expansion will begin.

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tImeLIne
September September 2013 2013 March March 2014 2014
Department Department stores stores

The timeline of each launch is highly important to ensure each marketing aspect complements the other. Furthermore, by releasing certain news and information at certain times, industry and consumer anticipation will build, generating a greater incentive for visiting the pop-up shop or watch and follow Westbeach.

June 2014 June 2014

9. Approach May 2014 May 2014 9. Approach sponsors sponsors 7. Send 7.out Send out press release of press release of Westbeach Westbeach arrival arrival

November2014 November2014
13.out Send out August August 2014 2014 13. Send 11. Sign 11. Sign sponsors sponsors new product new product press release press release

March March 2015 2015 December2014 December2014 17. Send 17.out Send out April 2April 015 2015

1. Form 1. Joint Form Joint Venture Venture 3. Design 3. Design new new product Partnerships Partnerships product with Full Marks with Full Marks and KMarket and KMarket Co.Ltd Co.Ltd

with Sign with December December 2013 2013 5. Sign5.

September September 2015 2015

21. Launch 21. Launch new new product product

industry night night industry 19. Launch 15. Hire 15. a Hire shopa shop invitation invitation for 19. Launch for Website Website fitting fitting company company pop-up launchlaunch pop-up for Pop-up shop shop for Pop-up

September September 2015 2015

23. Press 23. Press release release on appon app launchlaunch

January January 2014 2014

4. Approach 4. Approach distributor distributor channels channels

May 2014 May 2014 April 2April 014 2014

6. Create 6. Create Asian Asian Westbeach Westbeach Website Website

October October 2014 2014

12. Test 12. and Test and sign off new sign off new product product

February February 2015 2015

8. Build 8.and Build and

launchlaunch Social Social Media Media sites sites

November November 2013 2013

2. Begin 2. to Begin to DesignDesign App with App with LG LG

July 2014 July 2014

10. Find 10. Find appropriate appropriate space for popspace for popup shop shop up

16. Film 16. Film 24. Release 24. Release 20. Pop-up 20. Pop-up shop shop appropriate appropriate promotional promotional unveiling unveiling and and marketing marketing video video September September April 2April 015 2015 industry December December 2014 2014 videos videos industry night night showing showing off new off new 2015 2015 event event product and and 18. Send 18.out Send out 14. Sign 14. off Sign on off on product sponsor within within press release sponsor press release of of pop-up pop-up shop shop 22. Launch 22. Launch app app Japan Japan and and website launchlaunch website space space South South Korea Korea

September September 2015 2015

September September 2015 2015

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133

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136. Financials 137. Budget

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FInancIaLs
To expand into new markets Westbeach will need to keep track of their financial situation to understand and comprehend costly areas. Costs need to be measured to ensure Westbeach do not begin to lose revenue and profit. However, financial investment from Westbeachs potential partners will promote greater revenue within the company and therefore an easier financial situation within expansion.

BUDGet
Westbeach will need to ensure vital budget and resource considerations are integrated in to the overall planning process to ensure all planned actions are affordable. A marketing budget has been created for Westbeach to gain a greater understanding of costs within this area and for the future. Westbeach is expanding into new markets and therefore will need a slightly higher marketing budget than usual due to initial start up costs and wider broadcasting. Allocating a specified percentage of sales revenue is one of the most popular methods for developing a marketing budget, with an allocation of between 5%-12% (Paul. 2011. Online), however in peak growth period it can reach up to 20% (Scott. 2013. Online). Because of the size of Westbeach the initial budget size will be just 5%, this equals the budget to be within 246,263 (Fame. 2013. Online). The costings have been devised through professional quotes from a specialist within each area.

136

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Sponsorship AREA OF MARKETING App Website Mobile site Social Media PRICE 55,000 10,000 1000 0 Photographer Editor/Designer The Campaign Sponsor 4,000 1,000 Built within Contract= 0 5,000 Total OVERALL COSTT 55,000 10,000 1000 0 Lookbook Launch Party

15,000 x 3 Party Planner 1800

45,000

Catering Invites DJ 7500

1650 71 800

4,321

7,500 220,446

Editorial adverts Email PR employee (oversee email and social media marketing)

9000 (6 publications in six issues) 0 3040 Retail Space Shop Fitters Equipment Employees Flyers Other 45,250 15,000 10,595 5,760 1500 2480

9000 0 3040

The overall marketing costs come under the marketing budget enabling Westbeach to have greater financial movement around the overall costs and a safety net if greater costs occurred. The Budget price was also set within Westbeachs means and therefore would be open to growth from the other side of the partnership.

Pop-up shop

80,585

138

139

10

142. Risk management 144. Measuring performance 145. Evaluation and review 146. Conclusion & Overview

140

141

RISK AREA

RISK ISSUE Potential for Joint Venture to Not work

Joint Venture

Consumers

Non Connection with native consumers Dont understand the Culture and Language

Culture & Language

Sales

Dont see profit as soon as first thought

DESCRIPTION AND OUTCOME There is the risk that either one of the joint ventures do not work and therefore the expansion wont work, this is mainly subject to the relationship between Westbeach and either of the partners. The outlines and outcomes of the partnership must be clearly outlined, discussed and negotiated to ensure this does not happen. If the partnership still does not work for each country there was a choice of different partners and therefore another partner could be contacted and spoken to as a replacement. As Westbeach is moving into a new market unknown to them they may find it harder to connect with consumers as not used to their ways. They must ensure they understand their new consumer fully to understand how to connect and target with them. Within this report consumers where outlined and therefore if Westbeach cater to these types they will be successful in connection. There is a risk of Westbeach not fully understanding the culture and language. This could affect its marketing and acceptance by natives. Westbeach will work with its partners to ensure that they have the correct terms and linguistics, whilst also being knowledgeable of cultures and sensitivities within all their Westbeach and consumer interaction. There is a risk for brand acceptance and sales taking longer than first thought within the new markets. Westbeach will need to be prepared for this and have funds available to them to ensure they can continue to market and position themselves within Asia until re-assesswhere where they begin to see benefits and profit. They can also re-asses their marketing channels and working and failing and compare against successful competitors.

RIsK ManaGement

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measUrInG performance
To understand if the expansion plan was successful certain areas of measurement will be assessed. The overall success of campaign will be measured through sales and profit which will be collectively assessed at the end of the season. Collecting sales figures from each department store chain, distributors and online sales, will complete this. Yahoo is Asias top search engine (DigitalJungle. 2012. Online), Westbeach can use Yahoo analytics to evaluate how their consumers are shopping and being trafficked onto Westbeachs online store. They can measure their online marketing channels for greater knowledge of high areas of consumer trafficking to the online store to ensure they continue to utilize and push targeted sales and consumers in this fashion. Furthermore, they can understand what search terms are leading potential consumers to Westbeachs online store to once again develop greater knowledge of their consumer wants and high sales products. They can assess performance through social media likes and shares on its online campaign. Lastly Westbeach will send consumer surveys out to natives to understand if brand recognition has occurred and find what they like about Westbeach The success will be if brand recognition and profit has occurred.

EvaLUatIon anD RevIew

Once Westbeach has moved into Japan and South Korea, certain aspects of the initial plan will have to be formally re-evaluated after six months, though a constant evaluation will be on-going up to that time. The Joint Venture will be assessed and re-evaluated after 3 years

Sales and Distribution will need to be evaluated in terms of its current high sales points and low performers. Because Westbeach distributed its products to a high volume of retailers, they can see where they are gaining more custom and sales. This will help the company decide where to continue its retailing, where they need to enhance brand recognition and who they should possibly cut from their sales channel. Products will be measured in terms of what sells best Marketing channels will be evaluated to see what worked effectively Understand if the pop-up shop generated greater brand recognition and sales and if so possibly look into creating own stores in the future.

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concLUsIon
To conclude, Westbeach has an ideal opportunity for expansion and relevant media to do so. They have the chance to connect with credible partners for a Joint venture strategy within both countries, providing greater investment and knowledge within those markets. Though there are already many foreign competitor brands within both markets this should not affect Westbeach considerably after the initial launch. With the competitor pricing strategy Westbeach will continue to act as a challenger brand within the market, generating greater consumer appeal. A marketing strategy has been devised and budgeted to ensure all the appropriate methods are channelled whilst also creating something that will differentiate Westbeach from its competitors. By creating an app and pop-up shop it facilitates wider recognition and consumer attraction. Furthermore, by launching a new product this will differentiate Westbeach from the rest of the industry, cause a buzz and excite snow sport enthusiasts. Westbeach will need to ensure it generates huge excitement and anticipation for the launch to excite both countries and stand a chance for quick acceptance and expansion. Overall, Westbeach has an ideal opportunity to generate greater profit, capture a larger industry share and become an innovator using the strategy outlined within this report.

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