MAJOR ASSIGNMENT - Marketing Plan/Feasibility Study

DUE DATE - 7pm on Friday 20​th​ May, 2016

Feasibility Study (Group) - 40% in total (30% report and 10% video presentation)

Report 3000 (+ or - 10%) words (excluding appendices, executive summary,

headings)

Report Evaluation 30%

Presentation of Report N P C DI H
N A R D

REPORT (30%)

1. Presentation of report

a. Executive summary- stand-alone summary of what

report is about with key findings (1-2 pages) (10%)
b. Spelling, grammar, expression, structure and flow
(10%)
c. Referencing using the correct Harvard referencing

system (10%)

2. Content of report

a. Introduction to country, company and product (5%)

b. Segmentation, target market strategy including market
size assessment and diffusion (10%)
c. Competitive analysis – direct and indirect and
positioning strategy including perceptual map/s (10%)
d. Marketing mix recommendations –which strategy
used, standardise or localise and why (40%)
Product, place, market entry, promotion (summary of
your video details), price, service elements if included
like people etc.
e. Conclusion – to go ahead or not – well thought out
and clearly justified (5%)
Main content
Executive Summary (10%)​- Alec
This report provides an analysis and evaluation of the feasibility of R.M Williams
entering Crocodile leather boots into the foreign Danish market. Within this feasibility
report you will find the following methods of analysis were implemented; First and
foremostly, statistics from a plethora of websites, academic journals and so forth
were used as a basis of analysis and supporting plausible actions and claims made,
differing segmentations were analysed in order to see the different unique
characteristics and figures each segment had. For example the different
characteristics between age groups, geographical locations and many more were
analysed in order to provide sufficient reasoning as to why that particular segment
should be targeted. Consumer statistics were analysed regarding buyer behaviours,
such as the expected number of customers within Denmark and of course the
resulting expected revenue calculations. A SWOT analysis of both direct and indirect
competitors was a very beneficial tool implemented in order to view potential threats
from competitors and opportunities where R.M Williams could take market share
away from these companies. Positioning maps were useful when deciding on where
the Crocodile boot product would sit in the market in regards to its pricing.
We found that The target most appropriate segment for the best financial returns is
men from 30 to 59 years old who live in the urban area with an ​average income of
DKK450,000 annually (equals to USD68,865 or AUD91,243​)​.​ By making some
simple calculations we’d expect the potential sales volume is 22,400 pairs of boots
out of the 140,000 potential customers. Multiplying by the price of each pair ($3,500),
R.M Williams could reach the sales of AUD 78,400,000 or DKK 374,826,000. The
three largest footwear brands that have the highest percentage of market share in
Denmark are Ecco, Nike and H&M, however these brands are considered in-direct
competitors as they are selling in the medium priced segment. This leaves R.M
Williams to compete with Louis Vuitton and Gucci in the higher priced luxury
segment. After careful thought, the conclusion was made that the best entry strategy
into Denmark was to export the product directly into stores through a local sales
Representative/ Distributor within Denmark as, their local knowledge of the market
surpasses our own and by trusting them to sell to stores on R.M Williams behalf, the
boots will enter all the most appropriate stores for the product to penetrate the
market efficiently. In regards to pricing, the price of R.M Williams crocodile leather
boots is DKK 17,733 compared to DKK 6286 and DKK 19362 of Gucci and LV,
respectively. Standing in the middle, therefore filling a nieche in the market. ​The boots
are to be distributed via both physical stores and online where purchases can be made and
will be delivered via mail delivery. A retail strategy has been developed covering training
staff in how they should assist and sell the boots, to where the product is to be located in
store, and this in conjunction with the fully developed promotional strategy found within this
report will convey the message the these coots are “​Craftsman boots for a true man.”
Ultimately throughout this reports are the reasons as to why R.M WIlliams should go through
with this project and begin exporting crocodile skin Boots in the foreign Danish market.
1.
This report provides an analysis and evaluation of the feasibility of R.M Williams
entering Crocodile leather boots into the foreign Danish market. Within this feasibility
report you will find the following methods of analysis were implemented; First and
foremostly, statistics from a plethora of websites, academic journals and so forth
were used as a basis of analysis and supporting plausible actions and claims made,
differing segmentations were analysed in order to see the different unique
characteristics and figures each segment had. For example the different
characteristics between age groups, geographical locations and many more were
analysed in order to provide sufficient reasoning as to why that particular segment
should be targeted. Consumer statistics were analysed regarding buyer behaviours,
such as the expected number of customers within Denmark and of course the
resulting expected revenue calculations. A SWOT analysis of both direct and indirect
competitors was a very beneficial tool implemented in order to view potential threats
from competitors and opportunities where R.M Williams could take market share
away from these companies. Positioning maps were useful when deciding on where
the Crocodile boot product would sit in the market in regards to its pricing.
We found that The target most appropriate segment for the best financial returns is
men from 30 to 59 years old who live in the urban area with an ​average income of
DKK450,000 annually (equals to USD68,865 or AUD91,243​)​.​ By making some
simple calculations we’d expect the potential sales volume is 22,400 pairs of boots
out of the 140,000 potential customers. Multiplying by the price of each pair ($3,500),
R.M Williams could reach the sales of AUD 78,400,000 or DKK 374,826,000. The
three largest footwear brands that have the highest percentage of market share in
Denmark are Ecco, Nike and H&M, however these brands are considered in-direct
competitors as they are selling in the medium priced segment. This leaves R.M
Williams to compete with Louis Vuitton and Gucci in the higher priced luxury
segment. After careful thought, the conclusion was made that the best entry strategy
into Denmark was to export the product directly into stores through a local sales
Representative/ Distributor within Denmark as, their local knowledge of the market
surpasses our own and by trusting them to sell to stores on R.M Williams behalf, the
boots will enter all the most appropriate stores for the product to penetrate the
market efficiently. In regards to pricing, the price of R.M Williams crocodile leather
boots is DKK 17,733 compared to DKK 6286 and DKK 19362 of Gucci and LV,
respectively. Standing in the middle, therefore filling a nieche in the market. ​The boots
are to be distributed via both physical stores and online where purchases can be made and
will be delivered via mail delivery. A retail strategy has been developed covering training
staff in how they should assist and sell the boots, to where the product is to be located in
store, and this in conjunction with the fully developed promotional strategy found within this
report will convey the message the these coots are “​Craftsman boots for a true man.”
Ultimately throughout this reports are the reasons as to why R.M WIlliams should go through
with this project and begin exporting crocodile skin Boots in the foreign Danish market.
Introduction

Denmark is located in northern Europe, and had a population of 5.6 million in 2013. It
is situated between the neighboring countries of Germany, Norway, and Sweden. In
terms of business climate, Denmark prides itself on its modern market economy, in
which a free price system determines the prices of goods and services.​ According to
Coy (2013)​ Denmark has lower unemployment rate compared to the USA, lower
social inequality, higher mobility, less budget deficits, more chances for women, and
a higher level of nation happiness. This is one of the best countries for business in
the world.

According to Euromonitor International (2016), there has been an increasing

expenditure on personal care, clothing and footwear in Denmark after the economic
crisis 2008. Particularly, the sales of men’s footwear is forecasted to increase from
5,452,000 units in 2015 to 5,764,000 units in 2020 (see Appendix I). This is a great
opportunity for male boots brand to enter the market.

Figure 1. Danish expenditure on Personal Care, Clothing and Footwear 2000-2020

R.M Williams brand has been a pure Australian fashion icon since it was established
by Reginald Murray Williams in 1932 (Street, 2014). ​Being described as the
“Stockman’s Outfitter”, the company offers a range of sturdy clothes, boots and
accessories. These are commonly made out of natural textiles such as ​Kangaroo,
Veal Calf, Ostrich and Crocodile leather​. R.M Williams Crocodile boots is one of the
most luxury product lines of the brand. The boots are designed to express a modern,
elegant and luxurious look. It is completely handmade from a single piece of quality
crocodile leather which provides comfort and style for the users. A single pair is
currently sold for $3,500 AUD​ which equals to​ $16,733.00 DKK​.
2. Segmentation, target market strategy
To segment the Danish market, the two-stage international segmentation approach
is adopted. In the first stage, the national characteristics of Denmark such as
socioeconomic and culture were analyzed in the Macro report. It is seen that these
attributes of the chosen country would be suitable for R.M. Williams to step in the
market. In the second stage, Danish consumers are classified in terms of similarities
with respects to demographic, gender, age group, income, and personal needs using
statistics from Statistics Denmark (2014).

The target segment for R.M. Williams crocodile leather boots is men from 30 to 59
years old who live in the urban area with an ​average income of DKK450,000
annually (equals to USD68,865 or AUD91,243​)​.​ ​Denmark is rated 74 scores as an
individualist society (​geert-hofstede.com, 2016)​. This means there is a special need
for people to take care of themselves and their images. ​Besides, reported by
Euromonitor International (2015), eye-catching colored and patterned garments have
been increasingly popular among Danish men. ​These people would personally seek
for​ luxury product to address their self-esteem, social class and income (Wiedmann,
Hennings & Klarmann, 2012). Taking the chosen factors into consideration the table
below was able to be formulated:

Factors Sub-factor Target segment characteristics Market

s populatio
n
Geographics Urban/Rural Urban areas, big cities such as
Copenhagen,​ ​Århus , Odense, Aalborg
Demographic Age 30-59 years old
Gender Male
Income More than DKK 450,000/year
Occupation Businessman, politicians
High income jobs such as lawyers,
369,00
doctors, physicians, engineers 0*(13%
Social status High class +12%+
Psychologica VALS Achievers​ (13% of pop.): have specific 13%)
l (Value and benchmarks for social status, like
lifestyle) proven quality products; seek for status
=140,2
quo 20
Experiencers​ (12% of pop.): follow
fashion trends, spend income on
product for social needs and status.
Strivers​ (13% of pop.): image
conscious, spend money on clothing.
(Strategic Business Insights, 2016).
Behaviour Benefit Self-esteem, differentiation,
sought experiences with luxury and high
quality products.
User status New customer
User loyalty Medium to High
Figure 2. The target segmentation for R.M. Williams in Denmark

Based on geographic and demographic factors, there are 369,000 people in this
target market. Taken the psychological and behavior factors into account, the
potential customers segment in Denmark is narrowed to approximately 140,000.
According to data from Euromonitor International (2015), the number of Danish in
mid-youth (aged 30-44) and mid-lifers (aged 45-59) groups is growing constantly
(see Appendix I). As a result, the potential market for R.M Williams would expand in
the next few years promising increase in sales.

3. Expected revenue
The figure of 140,000 potential customers is adapted to the Diffusion of innovation of
Rogers (2003), the target market could be classified into five different groups:
Innovators (2.5%), Early Adopter (13.5%), Early Majority (34%), Late Majority (34%),
and Laggards (16%) (see Appendix III)
Taking this method into application, R.M. Williams could forecast it sales volume by
calculating the number of innovators and early adopters. These are customers going
to try this new product from the very first time it is introduced in the market.

Figure 3. Buyers behavior and expected number of customers

for R.M Williams crocodile leather boots

Based on these figures, the expected sales volume is 22,400 pairs of boots.
Multiplying by the price of each pair ($3,500), R.M Williams could reach the sales of
AUD 78,400,000 or DKK 374,826,000.
4. Competitive analysis and positioning strategy
According to ​Footwear in Denmark​ report of Euromonitor International (2016),
brands that have the largest proportion of market share in Denmark are Ecco
(10.4%), H&M (5.7%), and Nike (5.4%) (see Appendix IV).However, these popular
brands are considered to be indirect competitors to R.M. Williams since they are
selling in the middle price segment. Two of the strongest direct competitors in the
market are Louis Vuitton and Gucci. It is essential for R.M. Williams to have good
understandings about these competitors before entering Denmark. The SWOT
analysis for each of these brands is applied to examine their strength, weakness,
opportunities and threats. From these understandings about its competitors, R.M
Williams would be able to adopt suitable entry and positioning strategies for
Crocodile leather boots.

4.1. Direct competitors

Louis Vuitton
Strengths
● One of the oldest brands with
150 years of establishment.
● Globally recognizable by its logo
● Have its presence in the largest
shopping hubs.
● Have its own exclusive stores.
Opportunities
● The brand needs to update
current fashion trends to
compete successfully.
● Offer once discount in a year
helps the brand to expand its
reputation and sales
Weakness
● Only sell through its exclusive
store makes it difficult to reach all
customers.
Threats
● Its products are counterfeited
around the world
● Due to high prices, the company
can be hurt by economic crisis

Figure 4. Louis Vuitton Denmark’s SWOT analysis

Gucci
Strengths Weakness
● Strong brand image globally ● The brand has to invest lots of
● Distribution channels are money to maintain brand image
controlled effectively ● Risk of brand dilution due to
● Have direct operated stores diversified product offers
● Have variety product portfolio
from clothing, bags, shoes,
boots, etc…

Opportunities Threats
 ● Shifting from targeting middle
age to young segment by stylish
design
● Developing competitive
advantage in different segments
4.2. Indirect competitors
Ecco (Ecco Sko A/S)
Strengths
● Global leader in innovative
comfort footwear, high-quality
and high status, comfortable and
long-lasting.
● Have a long history and more
experience for footwear, the
leader of the marketing, local
product have more
advantageous in competition.
● Provide variety classes of shoes
such as sandals, boots & running
to satisfy different needs.
Opportunities
● With the high share in marketing
value, Ecco should think about
the specific marketing especially
the high-income marketing
because Denmark customer are
more willing to buy a good one
than several low quality shoes.
● Customer in Denmark are paying
attention to health, sport become
more and more popular, and the
product which relate to sport
such as sports shoes have a
good prospect.
Figure 6. Ecco Denmark’s SWOT analysis
● Easily effected by high
competitive environment
● Product substitutions to all of its
product portfolio.
Weakness
● Does not have distinct Danish
positioning.
● Lack of ‘focus’, not focus on a
specific marketing.
Threats
● Extravagant price and the
influence of the
stagnant-to-negative
performance, and the buying
behaviour of customer, the sales
slightly decrease and hard to
establish itself among consumers
in the mid-income bracket
● Competitor might expand their
competitive edge in a certain
area, such as Nike in sports
shoes, as a result of that Ecco
might be lose the value.
Nike (Nike Denmark ApS)
Strengths
● World famous sports shoes
brand which have a huge
marketing value in sports shoe
marketing and high popularity.
● Comfort, high quality, perfect fit.
● Have large number of loyalty
customers.
Opportunities
● Healthy is become more and
more important; therefore the
sports shoes will increase the
sales volume.
● Luxury sports shoes are
gradually become a fashion in
the young group.
Figure 7. Nike Denmark’s SWOT analysis
H&M (Hennes & Mauritz A/S)
Strengths
● Promote its apparel to
consumers as trendy and
fashionable options for a
reasonable price.
● Each H&M store is adjusted to
local demand.
● Offering good designs at
reasonable prices featuring
international celebrities
● Have a different industry chain.
Opportunities
● Good global reputation will bring
a good sales volume.
● A reasonable price will bring
better economic effect.
Figure 8. H&M Denmark’s SWOT analysis
Weakness
● Sport shoes are not for
high-grade occasion.
Threats
● Customer are more willing to
purchase sports shoe in store
than shopping online because
the most important thing of
sports shoes is suitable which
online shopping is not able to
provide.
Weakness
● Company have low focus on
footwear while they sales
different product such as
clothing.
● Few kinds of footwear.
Threats
● H&M sales T-shirts, sko, Jeans
and many varieties but not focus
on a specific marketing.
● Denmark customer prefer to
invest a high quality footwear
rather than many low quality
footwear.
4.3. Positioning map
In terms of pricing, R.M. Williams is positioned in the middle of Gucci and LV. With this price
level, R.M. Williams would be able to capture the customers in the price gap between LV
and Gucci. Furthermore, R.M Williams could take over the customers of Gucci and LV due
the its considerable higher performance compared to those brands (mentioned more specific
in section 5.2)
Regarding the social status, the brand could provide user a relatively higher status quo
compared to other competitors in the market (mentioned more specific in section 5.3)
5. Marketing mix strategy and recommendations
5.1. Direct Exporting Market Entry Strategy
It is recommended for R.M. Williams to enter the Danish market by adopting direct
exporting strategy. Direct exporting is the basic form of exporting by directly sells the
products to target markets through local sales representative and/or distributors
(Business Victoria, 2016). This form of exporting helps the firm to have greater
control and flexibility over its branding and distribution.

Besides, employing the assistance of experienced local companies would help the
brand maximize potential sales and reduce the distribution costs. Wu et al (2007)
stated that direct participation in an international market could help a firm to build
relationships with local customers and their existing trading counterparts. Moreover,
it enhances labour force skills; improve the offerings and distribution through the
knowledge and technology provided by the foreign intermediaries. Since these firms
have been operating in the market for a long time, they are able to know the most
effective and financially prosperous stores to stocks and sell R.M, Crocodiles boots.

However, there are attached disadvantages to this strategy. Direct exporting requires
high investment of time, money and other resources (Reynolds and Frank, 2003)
because the company must have a good understanding and knowledge for all the
process from exporting to selling. As a result, it involves higher risk and
longer-time-to -market. Nevertheless, this is the optimized entry strategy into
Denmark because it could help R.M Williams to distribute its product in various big
cities with greater control of branding, better relationship with customers, and hence,
potentially more sales and higher profits in the long-run (Yaşar, 2013).

R.M. Williams is suggested to do thorough researches about its potential

intermediaries before forming the relationship with the foreign based intermediaries.
A few potential distributors include SJ Trading and DANTEXTILE as they specialize
in distributing clothes and footwear. The stores we could potentially target are
obviously any fashion and footwear retailer but more specifically Field’s a
department store renowned for their vast range of international brands.
(Visitcopenhagen, 2016) (Page et al., 2016)

5.2. Retail Pricing Strategy

Developing a pricing strategy in a new country is critical, for the sake of
understanding market integration and long term profitability. R.M. Williams’s
crocodile leather boots have been charging premium price in Australia. Following the
standardized product strategy, R.M. Williams is suggested to apply the global-pricing
contract strategy to maintain the consistency level globally. Supporting reasons for
using this strategy are: (1) From the Macro report, it is seen that the Danish are
highly global customers (2) R.M Williams crocodile leather boots features are
standardized when entering the market (see section 5.3). (3) Its crocodile leather
boots are highly positioned in the competition (see positioning maps in section 4.3).
And (4), Denmark’s government is profoundly liberal.

Brand Low (AUD/DKK) High (AUD/DKK)

Louis Vuitton 1230/5880 4050/19362
Gucci 630/3011 1315/6286
RM Williams 3500/17733
Figure 12. Leather boots competition pricing

The price of R.M Williams crocodile leather boots is DKK 17,733 compared to DKK
6286 and DKK 19362 of Gucci and LV, respectively. Standing in the middle, the firm
would be able to sell the customers who get stuck in the gap between Gucci and
Louis Vuitton. Moreover, it could take over the customers of those two competitors
thanks to the performance and social status benefits.

The currency, Danish Krone (DKK) itself is stable like many EU nations and does not
need to be factored for dynamic fluctuations (XE Live Exchange Rates. 2016).
Besides, it is equally important to consider how taxation will affect such an import in
terms of price and thus desirability. Danish taxes are high and influence how this
product will be received both in terms of sale and consumer disposable income. The
VAT (GST) for a pair of high textile boots in Denmark is 25%, this is very impactful to
our pricing strategy.

According to statistics collected from Jim Rollo (2011) and Fedex Express (2016), a
pricing structure table is established as below:

Figure 13. Costing Estimates per Unit of R.M. Williams crocodile boots exporting to
Denmark.
AUD DKK Fluctuatio Impact Current
n Freq. Condition
Manufacturing $226.59 Medium High Stable

Export from AUS

Distribution $10.02 Low Medium Stable
Packaging $35.92 Low Medium Stable
Insurance $22.00 Low Low Stable

Import to DEN
Customs Charge 605.5 Low High Stable
17.3%
sales price

Agent $21.55 Medium Low Pending

Distribution/Handl
ing

Total Cost Estimate $921.58

Less Tax
Value Added Tax $875.00
(VAT)
Total Cost Estimate $1796.58
Sale Price $3500.00 $16851.10
Profit Margin $1703.42 $8202.06

5.3. Standardization product strategy:

Leather product has always been perceived as both luxurious item and a status
symbol around the global. From the target customer analysis in section 2, it is proven
that the customers in this segment need for high status quo goods. This is what R.M.
Williams boots have been providing in Australian and global market. It was given in
the Macro report that the Danish, whose behaviours are relatively similar to
Australian, are highly global customers. Furthermore, Denmark is one of the most
liberal countries in the world which provide R.M Williams to enter the market without
many restrictions .According to these three out of five common forces for
standardization (common customer needs, global customers, economies of scale,
time to market and regional market agreement) ​(Kotabe et al., 2014)​, R.M. William is
recommended to take the standardization product approach. The firm should
maintain its crocodile leather boots designs and features while entering Denmark
market. This could help the brand to (1) represent the promotion of a unique brand
globally and (2) cut the cost of customization (Madar & Neacsu, 2010).

Below are the three product levels (core, actual and augmented - see Appendix I) of
R.M. Williams crocodiles leather boots to be applied in Denmark market.

Product levels Benefits Description

Core product Luxury The core benefit of R.M Williams crocodile leather
status boots is luxury status quo. R.M. William (2016)
quo argues their boots as “Rare and luxurious, Crocodile
is a leather synonymous with prestige and style”.
Wearing a pair of crocodile skin boots help the
consumers to differentiate themselves by addressing
financial (e.g., high earning), social class (e.g., high
 status and prestige), functional (e.g., excellent
product quality), individual (e.g., personal
satisfaction) (Wiedmann, Hennings & Klarmann,
2012). Consequently, marketers can use these
understandings to penetrate the Danish male
metropolitan segment. The promotional strategy in
section 4.6 will focus on promoting this core product
benefits to the target customers.

Actual Quality All boots of R.M. Wililams are handcrafted. Each of

product them are made from a single piece of high quality
leather by only one seam at the back. It is one of the
unique features of R.M. William boots what
contributes to its outstanding quality. Furthemore,
leather sole is breathable which provide user great
comfort.
As proven in prior Macro Environment Research,
there is now an even greater level of demand for
quality of all products in Denmark. Focusing in
delivery the best quality boots would be beneficial for
the brand.

Fashion Crocodiles leather boots are distinctly recognisable

and with intricate scaling patterns which make sure a
style first-class look and feeling. This product is ideally
match with formal dressing.

Brandin R.M Williams brand is a pure Australian icon since it

g has a long and proud history from 1932 (Street,
2014). Street (2014) also argued that R.M. Williams
boots are preferred by Australian politicians, for
example, Tony Abbott- former prime minister of
Australia. Consequently, the brand and the product
quality of the company are exceptionally high
perceived in Australia and global market. Lobban
(2014) profoundly wrote that R.M Williams is the
number one Aussie brand to be bought in the world.

Augmented Delivery Products are shipped within 3-5 business days

product domestically and 10 business day internationally.

Warrant Faulty boots can be returned if customers received

y them in damaged condition, or because of
manufacturing fault occur within 6 months after
purchase.
All R.M. Williams crocodile leather boots have
lifetime warranty.
 Return R.M. Williams wants their customers to be
completely satisfied with its products. Therefore, for
any reason the boots are not as customer's
expectation, they may exchange, replace or credit
their purchase when the product is returned with
tags attached and saleable condition within 30 days
of delivery. This has been the return policy of the
company both for domestic and international market.

Figure 13. Three product levels of R.M Williams crocodile boots offering in
Denmark’s market

With these exceptional benefits, R.M. William crocodiles leather boots would provide
Danish customers not only a comfortable, high quality and stylish footwear with
excellent services but also a great social status.

5.4. Distribution Strategy

5.4.1. Physical stores
Following the direct exporting strategy, it is essential to distribute R.M. Williams’s
boots in the major regions to reach the most of potential customers. The company is
recommended to contract with foreign sales branches which are located in some the
cities of Denmark where class A of Danish citizens live. ​According to Okonkwo
(2007), the most important thing in retail is location, especially for luxury brand. R.M.
Williams’ retailers should only have their stores available in exclusive and high-status
district. Consequently, except the main store in Copenhagen, RM Williams can
choose one retailers in each other biggest cities of Denmark, such as Århus - Central
Jutland, Odense - South Denmark and Aalborg - North Denmark. These stores are
located in the highest traffic locations such as central station and shopping malls to
guarantee the brand’s visibility. The number of stores is limited to one only per city.

5.4.2. Website
According to Euromonitor International (2016), consumers within Denmark are
currently looking for online options; even luxury brands are selling online to meet
growing demand in countries where brick and mortar is expensive. Internet retailing
has captured double customer expenditure – from DKK 15,304 million to DKK
30,872 million- in five years from 2009 to 2014, and it is continuing to grow at a
record pace of 11%. Online shopping reduces the elements of product comparison
open to consumers, with price standing as universally applicable when deciding to
make a purchase. Luxury brands like R.M Williams would significantly benefit from
developing a great internet retailing service when entering Denmark. The boots are
stored and then shipped to customers from local sales branch warehouse after
purchase confirmation.
5.5. Retail strategy
5.5.1. Physical stores
Despite the original store of RM Williams in Copenhagen, by using ​direct exporting
strategy, RM Williams has to consider about retail strategy. ​Retail stores’ design and
sales force’s experience are also a significant factor for luxury products​. ​According to
Amatulli and Guido (2012), there are two main elements that need to be delivered in
retail, which luxury branding and professional sales force. Crocodile boots will be
branded through a series of materials from entrance to the shoe shelves. Sales
persons will be trained to assist the selling process (see Appendix V)

In order for this strategy to be successful, factors to be considered include: branding

alliance with the unique famous retailer stores; delivery channels; content, duration
and format of training program; sales representative recruitment policy. The sales
representative is our physical customer service in Denmark, through getting into
deals with customers. Consequently, they are the key to help customers have better
understanding of our RM William crocodile boots and also gain more trust via the
shopping experience (see Appendix VI for more requirements for R.M. Williams’s
stores).

Besides, these local branches will have access to prepared sales package,
implemented from the RM William head office in Australia, with unlimited access to
all supporting features, such as full list of product offerings of material, size, quality,
colour; the inventory and new arrivals of RM William crocodile boots.

5.5.2. Website
On the other hand, RM Williams also can use its own website to allow target Danish
males to order online. Besides of physical department stores, well reputed
e-commerce websites are good channels for retailing as well.​ Regarding online
payment methods, debit/credit cards are the most popular choices for Danish.
Besides, reported by Mark Wraa-Hansen -head of the MobilePay division at Danske
Bank (Euromonitor International, 2016), there is increasingly number of payment
made my smart phones. Thus, it is suggested to R.M. Williams to develop its
payment system on mobile phones to optimize its convenience to customers.

Moreover, R.M. Williams is suggested to build a professional websites that allow

customers to view detail information and make order internationally in their own
currency. In other words, Danish customers will see the products in Danish Krone
which make them feel more comfortable when buying online (see Appendix VII for
website design example)
5.6. Promotional strategy
While adopting the product standardization strategy, R.M Williams is recommended
to customize their promotion strategy in Denmark market. The main reason is the
some culture differences between two countries. All advertisements would be
translated into Danish since 98% of population speaks Danish compared to 86%
English (European Commission). However, the key message and slogan is kept the
same in English to maintain the consistency of branding. According to Euromonitor
(2015), the Danes like using very direct form of communication. Following the
characteristics of the target market in section 2, the marketing activities will focus on
promoting the craftsmanship, quality and status quo. A combination of above the line
and below the line advertising is adopted to help R.M. Williams reach the highest
number of potential customers.

Figure 14. Key message, marketing channel and goals

Target High class men aged 30-59
Key message Craftsman boots for a true man
Channels - Newspapers
- Men, business and fashion magazines.
- Billboards at central stations, shopping mall
- Event sponsorship
- Social network and online press
Goals Awareness, branding, customer relationship, sales

5.6.1 Launch strategy (the first six weeks)

a) Objectives
- Increase the awareness of high status R.M Williams crocodile leather boots in the
selected cities
- Encourage purchase to the innovators segment
- Build relationships and trust with high class customers
- Create word-of-mouth trends among the high class men in urban areas
b) Marketing activities
Above the line Activities
Newspapers Full-page advertisement continuously in the first four weeks
after launch on the most popular newspaper such as
Morgenavisen Jyllands-Posten (132,000 daily copies),
Politiken (112,000 daily copies), Berlingske Tidende
(108,000 dailicopies) (Source: Jauert, 2015)
Magazines Sponsored magazine articles on This Is Scandinavia
(fashion), IN (fashion), SE og HØR (celebrity lifestyle)
(Source: w3newspapers.com).
These articles will write about R.M. Williams’s story and its
high quality of crocodile leather boots.
Online press Publish news about R.M. Williams stories and boots
Online fashion websites Banner advertisement that links to R.M. Williams websites
Outdoors First 6 weeks of:
- Billboards at shopping malls
- Banners at city central stations (see Appendix VII for
example)

Below the line Activities

Public relation Invite and encourage famous journalist to write about R.M
Williams’s stories and market entry.
Social network Build social sites such as Facebook, Instagram, Twitters in
Danish.
Publish news about the launch of R.M. Williams crocodile
leather boots in Denmark

c) Action plan

5.6.2 Long term promotion strategy (12 months)

a) Objectives
- Increase the brand awareness and image nation wide
- Capture customers purchase from both innovators and early adopters segment
- Build customers profiles, maintain relationship and loyalty.
- Capture 20% of the expected sales volume which is 4480 pairs of shoes.

b) Marketing activities

Above the line Activities

Newspapers Reduce the numbers of newspaper advertisement to twice
a month
Magazines Magazine advertisement on some other magazines for
men
Online fashion Continue advertising by website banners that link to R.M.
website Williams websites.
Outdoors Continue advertising on:
 - Cities central stations
- Shopping malls

Below the line Activities

Social network Publish content regularly to maintain customers
awareness and encourage sales
Public relation Newsletters to maintain brand awareness.
Participate in fashion events, such as Denmark Fashion
Week in February, 2016
(Source: Copenhagenfashionweek.com)
Sponsor to horse racing events in Copenhagen,
Scandinavian Open Championship in August, 2017
(Source: Horseracingintfed.com)

c) Action plan
Jan Feb Mar Apr May Ju Jul S Aug Sep Oct Nov Dec
c
n
a
Newspapers n
Magazines d
i
Online
n
fashion a
websites v
Outdoors i
Social a
n
network O
PR p
L
Event e
a n
sponsorship
u C
n h
c a
m
h p
i
o
n
s
h
i
p
S
p
o
n
s
o
 r
s
h
i
p
c
a
m
p
a
i
g
n

6. ​Conclusion – to go ahead or not (5%)-​Nick

In closing, the recommendation for R.M. Williams is to proceed with the proposed
expansion into Denmark. This recommendation takes into account a great many
factors including, the evidence that ​the sales of men’s footwear are forecasted to
increase from 5,452,000 units in 2015 to 5,764,000 units in 2020. As the identified
target market for R.M. Williams is ​men aged from 30 to 59 with an ​average income of
DKK450,000 annually this forecast creates a perfect opportunity if capitalised
effectively and timely. Through thorough research it is stated that there are ​140,000
potential customers in the target market that can be classified into five different
groups: Innovators, Early Adopter, Early Majority, Late Majority and Laggards. Based
on these figures, the expected sales volume is 22,400 pairs of boots. Multiplying this
figure by the price of each pair, R.M Williams could reach the sales of AUD
78,400,000 or DKK 374,826,000. Not only this, there is opportunity to take market
share from direct competitors such as Louis Vuitton who only sell through its
exclusive store making it difficult to reach all customers. In addition competitor Gucci
fall short with the brand investing lots of money to maintain brand image and risk
brand dilution due to diversified product offers. This gives R.M. Williams areas in
which to capitalise on the direct competition. For R.M. Williams to achieve this entry
it is recommended for the company to adopt a direct exporting strategy. This form of
exporting helps the firm to have greater control and flexibility over its branding and
distribution. In addition this can be easily and effectively implanted by applying the
global-pricing contract strategy to maintain the consistency level globally.
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Appendix
Appendix I. Forecast sales of Footwear by Category in Denmark 2015-2020

Appendix II. The Middle Youth (aged 30-44) and Mid-lifers (aged 45-59) of Denmark
2000-2020

a
Appendix III. Diffusion of Innovation. Source: Rogers, E. (2003)

Appendix IV. Footwear market shares in Denmark 2012-2015

Appendix V. Selling process for e-commerce website and local sales stores.
Action E-commerce website
1. Initial Enters customer details
consultation information, email to
Develop customer create customer account.
profile Then begin to order
crocodile boots.
2. Confirm RM Purchasing facilitator
Williams crocodile might go forward with
boots type of crocodile boots,
color, size, design and
signature changes if
required
3. Customer is given Purchasing facilitator is
a customized login sent a customized user
detail to gain access name for the customer
to the repair service account, distribute this on
and return service others design of RM
50% payment - Williams boots;
required information and video of
repair service and return
policy.
4. Purchasing Purchasing facilitator
confirmation obtains the required type
of crocodile skin, color,
Full payment size and signature
required changes on behalf of the
customer. Details are
forwarded to the
customer’s email, and
Department store
Explanation of crocodile
skin features,
introduction the Repair
Service and its capacity
to fix the form and the
various parts of the
boots.
Confirmation of customer
details for future repair
service or return.
Show sample material of
crocodile skins, color
chart, sample shoe to try
different size and take
detailed notes of required
signature changes.
Guiding to start to
familiarise with the
features of the repair
service. Available in all
stores of RM Williams.
Catalog of images of
before and after with RM
Williams boots in
different years and
designs of others RM
Williams boots.
Check and verify relevant
purchasing information,
and send back virtual
confirmation to
department store.
Make full payment for
RM Williams crocodile
boots in full.
 customer account for the
acceptance of customer.

Appendix VI. Some implications of the luxury dichotomy on retail management.

Source: Amatulli and Guido, 2012
Appendix VII. R.M. Williams’s website example in Danish Krone. Source: R.M.
Williams
Appendix VIII. Example for R.M. Williams banner andmagazine advertisement.