Markets segments and decision making Essay Example

  • Category:
  • Document type:
  • Level:
  • Page:
  • Words:


Crocs Inc. is a shoes manufacturing company that was founded by Scott Seamans, George Boedecker and Lyndon Hanson. The company was formed to develop and distribute foam clog. The company has been in the market since year 2000 and has since diversified its markets into the global markets. The company operates in the apparel industry that covers the wholesale industry, the consumer and retail services industry and clothing and apparel accessories industry ( This case study analysis evaluates the marketing strategies that the company uses to effectively address the challenges and opportunities that are available in its market. The analysis specifically evaluates the marketing aspects of segmentation, targeting and positioning and how it manages them.

1. Briefly describe the industry market for your organization and evaluate current trends in: Growth, Profitability and the Macro environment (PESTLE factors)

Keegan and Green 2017). The global business industry continues to be influenced many factors that revolve around technology, the economy, social and environmental factors among others. These factors also influence the markets in the local jurisdictions. However, the apparel industry market is anticipated to be good but not spectacular in the coming years. The industry is expected to have a market growth rate of about 6 to 8 percent. Much of this growth will be driven by the international growth opportunities and the direct-to-customer channels (

The profitability of the industry is also anticipated to be modest, but may be greatly influenced by prevailing economic conditions that continue to be tight both in the local and international markets. This is mainly attributed to loss of possible disposable income in the industry market to home-related products, rent, healthcare, cars and electronics. Consumer traffic in the industry is also expected to reduce or grow at a slowing rate with negative implications on the profitability of the industry, given the increasing fixed costs. The analysis of the industry indicates that industry players will need to work harder to attract more consumer dollars in the future because consumers will have more priority spending of their disposable incomes. The profitability of the industry market will further be influenced by the changing consumer dynamics like that of younger consumers who are and will continue seeking to spend their money on experienced and services more than other retail products.

Kotler and Kotler 2010). The macro-environment factors that influence the company include the political, economic, social-cultural, technological, legal and environmental factors. Political factors continue to cha the new forces that shape the market place. Political environments in contemporarily markets are increasingly becoming complex because of reasons that re associated with economic factors. Many governments and markets have been increasingly seeking protection for local companies. To achieve this, the political establishment has been seeking to raise trade tariffs for international companies for goods sold in the local markets. For these reasons, the company may find it harder to operate in the Australian market effectively (

Kotler and Kotler 2010). Economic factors in the Australian market indicate that there is an increasing purchasing power among many Australian. The standards of living have significantly improved and their high demand for high quality products and services. The economic performance of Australia has given its currency a strong position in the global markets which makes the Australian market lucrative for the industry’s performance. Concerning the social trends, the demand for apparel products and accessories across Australia has had a high regard to the environment. This implies that companies with products that are eco-friendly are highly preferred. Crocs Inc. is known for products and services that are environment friendly. The legal factors influencing the industry revolve around the legislations on products and service that meet the environmental needs of the market and imposition of tariffs that aim at protecting the local markets. Trends in technology have been significant in the industry. Industry players have been using technology to advance their value proposition, developing of business model and business and marketing strategies. Technology has also been a source of deriving competitive advantages in the industry and a way for achieving higher exposure and visibility in the industry and the market (

2. Outline and examine the major market segments for your organization and identify your primary and secondary target markets.

Keegan and Green 2017). Market segments in the apparel industry are divided into various groups and clusters of potential customers that have different characteristics. The company has also ranked its market segments basing on their response to the marketing strategies used by the company in various markets. The ranking of the marketing segments has also been based on homogeneity of various factors such as customers with similar needs, interests, locations and social cultural factors. Therefore, basing on these aspects, the segmentation of the apparel industry for the company is divided into two main segments that include the consumer or mass market segment and the business or specialty market segment (

The consumer market segment overs the widest range of consumers of the company. This market segment is also divided into other segment like the branded market which for now is not within the scope of this discussion. The mass market has products with national and international labels as well as private names that are of brands within the local markets that are sold through individual company stores. The consumer market segment drives large volumes of the products and services that are marketed by the company. The mass market segment is responsible for supplying the organization’s products to the retailers and distribution channels and works well within the large production requirements, short delivery timelines and works hand in hand with the international shipping lines, ports at usually very low prices.

Kurtz, 2014). The second major market segment is the business market segment which comprises of various market niches that have unique customer needs focus. This market segment include the designer apparel, uniform apparel and work apparel needs that address customer needs like those for health care workers, prisons, food service workers, special clothing, bridal wear among others. This segment also includes the special and high-tech products that take into account of the ultramodern finishing techniques (

Kerin and Hartley 2018). The primary target market for the company is that of the universal customer which targets normal customers across different ages and sexes that consume brands. These customers have adequate disposable incomes that they use to service their customer needs through various products and services. These customers also have adequate information on the various products and services that are offered by the organization to make informed choices about their consumption needs. Customer needs to address in this segment include the affordable luxury targets customers through provision of alternative products that are within the financial reach of customers. Products in this segments are also aimed at achieving a amass appeal with some levels of popularity and exclusivity. The segment at times offers discount brands for sales strategies and to meet the needs of low-income customers. The secondary target segment is that of the luxury product segment that seeks to meet the needs of high-end customers that have very high disposable incomes. Things that this target segment addresses include the price and quality aspects that re meant to go with the high disposable incomes by the customers. Products for these segments are mainly custom-made to satisfy the needs of the customers (

3. Discuss the level of involvement your primary segment is likely to have towards your organization in terms of the decision making.

The market environment under which the crocs corporation operates involves very competitive legal, economic, regulatory, technological and social cultural factors. All these factors make it necessary for the company to get involved with its target customers through an effective marketing mix. Through the various forces that influence the marketing strategies of the company. He engagement of the company ion its customers is done while bearing in mind of the living standards, preferences and lifestyle needs of customers the involvement by the company include the marketing activities as well as the various decisions that the company uses as well as the decisions and actions that influence the reactions of customers through an effective marketing mix.

Jain and Jain 2012).The primary segment of the company of the company is highly influenced by the marketing forces that keep on fluctuating. The decisions that the organization needs to make include those that address efforts that hurt the marketing strategies as well as those that can create opportunities for the company. To address customer concerns, the company needs to address the marketing mix elements that include the product, its distribution, promotion and pricing. The involvement with the market in these elements include in determining strategies through which the company can develop product and services that address customer needs. The pricing decisions to make entail ensuring that the products delivered give customers total value of their money. Concerning the environmental and social factors the customers segments of the company have a significant influence because they are influenced by the government and other forces around them (

Hunt and Varadarajan 2011). Therefore, the implication of the level of involvement with the primary markets by the company is by making the company to make decisions that help it to understand and master the marketing concept. The primary decisions to undertake include satisfying customer needs by coordinating sets of activities that allow the organization to meet its business and marketing goals. Areas of involvement with customers include customer analysis, evaluating competitor activities and how customers react towards them and integrating the resources of the organization by making decisions that provide customer satisfaction and value. Other decisions that the organization makes include those of continuously altering, adapting and developing products and services that keep pace with the dynamic preferences and desires of customers. Therefore, from this analysis, the level of involvement with the target market by the company is an enduring involvement that covers every aspect of the value chain process of the organization and carried out in the long-term (

4. Describe the nature of competition in your industry. Explain and analyze your organization’s place in the market by comparing and contrasting its strengths and weaknesses to your main competitor.

Kotler and Keller 2016). The apparel industry in Australia has been recording positive growth in the recent years. The current value growth for the industry is between 6 to 8 percent which represents the profitability of industry players like Crocs Inc. emerging customer and product segments continue to drive sales in the industry. Competition among the industry players is mainly through multiple categories of products, business models and value propositions that differentiate industry players from each other. Competition among industry manufacturers has also been through the focus and launch of product designs that are trending, suitable styles for contemporary living and performance products that address diverse customer preferences and needs. However, the apparel industries have been significantly expanding their sportswear product segment as a major area of competition. Technology has also been the key driver of competition in the industry whereby industry players have sought to use modern technology to derive competitive advantages from the markets. Technology has also been used in the industry as a business and marketing platform. Specifically, technology has been used as a tool for targeting the millennial generation and customers with high disposable incomes who have access to information technology appliances. Though these competitive strategies, industry players effectively segment, target and position themselves to identify their rightful place in the market (

Baker, 2014). Through the evaluation of the Australian market, Crocs Inc. has taken a top tier position among the industry players that are present in the market. The main competitor of the company is Nike Inc., others Jones Apparel Group Inc. Under Amour, and Rose Stores among others. In comparing the strengths and weaknesses of the top competitor for the company, its main strengths include a highly innovative culture, technology, unique products, brand name and customer loyalty. When comparing these strengths with those of the listed competitors, they are all imitable. However, the company has struggled to derive unique advantages through enduring involvement with all its stakeholders. Some of the weaknesses that the company has include weak transition strategies, legal cases and safety issues. When contrasting these weaknesses with those of competitors, both companies have unique weaknesses that challenge their position in the local and global markets. Despite all, the company has claimed it’s deserved and rightful position in the market and continuously sustains it though effective business and marketing strategies (

5. Taking into consideration the primary segment, their level of involvement and the competition, create a positioning map for the market place.

Keegan and Green 2017). The positioning map for crocs Inc. is based on the value proposition that id derived from the company’s brands. Through the company’s various brands, its involvement and competition strategies aim at enhancing the company’s products in terms of convenience, comfort, unique appearance and identification, design, easy usage and appropriate pricing. Other factors that the company considers in the positioning map are the benefits that its customers get as compared to products and services that are offered by competitors. Other areas of positioning include pricing, the product, and distribution and promotion strategies (


.Marketing strategy and managementBaker, M. J. (2014). 

. Los Angeles [u.a.: SAGE.Marketing management and strategyHunt, S. D., & Varadarajan, R. (2011). 

. South Melbourne, Victoria: Cengage Learning Australia.Marketing: Planning and strategyJain, S. C., & Jain, S. C. (2012). 

.Marketing: The coreKerin, R. A., & Hartley, S. W. (2018). 

. Boston: Pearson.Global marketingKeegan, W. J., & Green, M. C. (2017). 

.Marketing managementKotler, P., & Keller, K. L. (2016). 

. Frenchs Forest, N.S.W: Pearson Australia.MarketingKotler, P., & Kotler, P. (2010). 


Markets segments and decision makingAppendix 1: Areas of positioning by crocs Inc.

Markets segments and decision making 1Appendix 2: Positioning map for Crocs Inc