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Hats in New Zealand Essay

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Hats in New Zealand

Introduction

In the contemporary world, the competition for limited resources such as the space for expansion, talented workforce as well as the markets for the various produced goods and services has increased more than ever before. This has made the world appear like a jungle, where only the organizations which have the necessary competitive and survival skills are deemed to survive and develop, while the others become bankrupt and eventually eliminated from the market. For this reason, most entrepreneurs are determined in embracing and implementing measures that would enhance their competitive advantage, such as allocating substantial amounts of money for research and development, encouraging creativity, product design and differentiation, retaining talented employees and others.  I am not exceptional in ensuring that my bat business that I am going to start in New Zealand will not only survive in this competitive market, but also grow and expand to international markets. In order to achieve this, I need to develop an effective business strategy. This paper entails the analysis of the business strategy that I will use while starting a hat business in New Zealand.

Starting a new hat business in New Zealand

Market research

Before making up the decision of starting a new hat business in New Zealand, I will conduct market research in order to establish whether the hat business is viable or not.

Demographics

During the recent population census, New Zealand has a total of 4, 474, 549 individuals where by 19-79 percent individuals were aged between 0-14 years, 13. 56 percent aged between 15-24 years, 40.05 percent aged between 25-54 years, 11.7 percent aged between 55-64 years, and 14.94 percent were 65 years and above (CIA World Factbook, 2016). Considering that hats are unisex (can be put on by both men and women), and taking other facts constant, the population of New Zealand is a promising market for hats. In addition, the urban population is high, and it amounts to 86.3 percent, and the rate of urbanization is high as well (approximately 1.05 percent annual rate of change between 2010 and 2015).

In addition, based on the recent reports that was released by the World Bank evaluating the economic status of a country, it was established the New Zealand scored the highest all over the globe in various indicators such as getting credits, property registration, starting a business, dealing with construction permits, among others. Out of 137 economies evaluated, New Zealand was the best in facilitating the aspect of starting and running small and medium-sized businesses. This has been made possible by the determination of the New Zealand`s government in fighting corruption.

Forms of Risks

Since the government of New Zealand has placed adequate measures of encouraging investors as well as facilitating small and medium sized businesses, numerous investors are flood this country in order to start business. This means that the chances of other new hat businesses being established in New Zealand will be high, and this will increase the level of competition. When the level of competition is high, chances for being eliminated from the market are high. In addition, the government of New Zealand protects the rights of employees, ranging from the compensation processes, working conditions, as well as the termination of the employment contract. This means that my hat business has to adhere to the employment laws in order for it to operate and survive in New Zealand.

Method of Entry

The 4P`s Business Strategy

In order to enable my hat business to penetrate in the New Zealand markets, I will embrace and implement the four 4P`s strategies, which are not limited to product, place, price and promotion.

Product/service

This aspect entails the definition of the product that is going to be offered by an entrepreneur (in this case I will be offering hats). The hats that will be offered at my business will be of different colors in order to differentiate them from the other competitors. I do contemplate that most customers need a varieties of products to choose from and, therefore, offering hats of different colors will help in satisfying the needs of most customers (Kirkland, 2014). In addition, my hat business will be offering hats of various types and sizes in order to accommodate customers in all age brackets. Some of the hats that my business will be offering are not limited to the Enzyme Washed Dad Cap, Genuine panama cavalier, Evangelina Millinery, Open weave trilby black band, RV Sheepskin Earflap cap, Callanan sinamay feather Trilby, the Deerskin Leather Cheesecutter, Traditional center crease fedora, pebble finish leather look trilby, harris tweed and deerskin flat cap, among others.

Figure 1: The 4P`s marketing Strategy

Place

This aspect entails selecting the most strategic place where the business will be located. Precisely, this factor entails locating the business in a place where there is a high concentration of the targeted customers, as well as an area which is in close proximity to the raw materials (Kirkland, 2014). The hat business will be located at Auckland, and this is due to a myriad of factors. For example, this city is densely populated (1.344 million individuals), and means that the place has a ready market for hats ((CIA World Factbook, 2016). Moreover, the place has numerous tourist attraction sites such as the Auckland sky tower, which is 328 meters high (the highest building in New Zealand), the Waitemata Harbour, Auckland War Memorial Museum, one tree hill, Auckland art gallery, the Waiheke island, Voyager New Zealand Maritime Museum, Viaduct Harbour, Kelly Tarlton`s sea life aquarium, among others (Lee, 2017). This means that the place has an influx of tourists at any given time, increasing the number of customers for the hats.

Figure 2: Auckland Sky Tower

Price

Price covers the precise amount of money that the end user of the product is expected to pay. The manner in which the product is priced has a great influence to the extent to which it sells (Kirkland, 2014). Most of the hats in the new hat business will be offered at a lower price than in the market place, and this is due to the fact the hat business will be new in New Zealand, and the need of raising awareness concerning its existence is considered. The hat business will focus on mass production in order for it to enjoy the economies of scale (mass production lowers the average production cost of one unit).

Promotion

As started in the pricing factor, the hat business will sell its products at a lower cost in order to make it known to many. Moreover, the hat business will as well embrace product advertising in various platforms such as social media, television, billboards, and on radio (Kirkland, 2014). The aim of the promotion will be raising awareness concerning the existence of the business, informing customers the products being offered and encouraging and enticing customers to buy the products being offered.

References

CIA World Factbook (2016). New Zealand Demographics Profile 2016. Retrieved from, http://www.indexmundi.com/new_zealand/demographics_profile.html

Kirkland M., (2014). Understanding the Marketing Mix Concept – 4Ps. Retrieved from, https://www.cleverism.com/understanding-marketing-mix-concept-4ps/

Lee J., (2017). 17 Top-Rated Tourist Attractions in Auckland. Retrieved from, http://www.planetware.com/tourist-attractions-/auckland-nz-au-a.htm