¶ … Pacific Brands -- 'Pacific Brands responds environmental forces (takes a hammering)', page 55-7 text book. (Management: Foundations applications, 1st Asia-Pacific Edition.) REPORT OBJECTIVES you expected address objectives report
Pacific Brands: Competition and multicultural marketing in the apparel industry
Pacific Brands is an Australia-based apparel company located in an increasingly competitive industry: apparel. Rival companies operating on a lower cost model are biting at the Australian manufacturer's proverbial heels. "With the elimination of quotas in January 2005, the international textile and apparel industry is facing many challenges. Among them are the increasing number of skilled producing nations, an overcapacity of goods, and a deflation of world market prices. Currently the country with the greatest capacity for capturing the largest share of the world market is China" (Parrish, Cassill & Oxenham 2006). For many years Pacific Brands combined a niche marketing strategy related to its lines of clothing specifically targeted at workers with a more general marketing strategy for its apparel lines such as its underwear and shoe brands.
However, the specific 'niche' of all sectors of the Australian market is no longer a reliable source of revenue for Pacific Brands, forcing the company to abandon its current focus upon that national market base and to pursue a more global marketing strategy. It has long been "believed that the country of origin has an impact on consumers' product evaluations and purchasing intentions to a brand" but the popularity of a company rooted in a 'buy Australia' ethos is no longer translating into widespread sales (Peng & Zou 2007). Unless Pacific Brands can offer a more international perspective and diversify its market base, its long-term profitability is threatened. Once a proud Australian institution, because of external pressures Pacific Brands must change.
"Almost all of Pacific Brands' sales (95%) are made in Australia" and its stress upon its low cost also reflects how it caters to 'working class' Aussies: "close to half (47.8%) of sales in the 2012 calendar year came from discount department stores" (Robin 2013). However, it was recently forced to 'shed' a number of jobs in its work wear lines, due to declining demands. Those jobs were outsourced to less expensive areas of the world, causing considerable consternation amongst many consumers who had bought its clothing to support the company's commitment to remain based in Australia, employ Australian workers, and have an Australian-focused culture as a business (Cavanaugh 2013). Pacific Brands said it had no choice to do so, given declining revenue. However, in the long run, taking advantages of new global markets can be advantageous to Pacific Brands. A more globalized marketing perspective is needed for Pacific Brands to succeed given its over-exposure to the Australian market. "The most ambitious part of the Pacific Brands roadmap is to expand its key lines overseas to the UK, the U.S., Europe, China, and parts of Asia and the Middle East" (Robin 2013). Pacific Brands already markets its products abroad; now it must adopt a truly multicultural marketing strategy.
Critical discussion
Up until now, Pacific Brands has largely pursued an Australia-focused strategy and will need to reformulate this to be responsive to market needs in the areas of the international market it wishes to capture. Although a more multicultural strategy for its brand profile may initially be challenging for Pacific Brands, given that Australia itself is a multicultural society, encompassing a large immigrant population, this actually…
