Funky Threads Market Entry in Australia: Case Study

Background of the Research

Funky Threads (FT) represents a trendy and distinctive clothing brand that has achieved success in North America and Western Europe. FT wishes to expand its market into the Asia-Pacific region, targeting Australia as its first location in the area. In conjunction with this venture, Brand Fashion Incorporated (BFI) conducted a consumer research study to determine the potential success of marketing efforts in Australia.

The research study focused on the potential loyalty of the target market in Australia, the attractiveness of the brand, and the most appealing attributes it offers. The final area of focus will serve as guidance for the identification and further exploration of the target market in Australia. The survey was divided into eight major sections, and the study design allowed aggregation of scores for the questions contained within each section. The following analysis examines the various parts of the study and discusses their relevance to the research that must be undertaken prior to the launch of the Australian branch of Funky Threads.

Brand Loyalty and Attractiveness

The first section of the research examines the likelihood of developing a loyal customer following. Five questions were included in this section of the study, all of which related to the willingness of customers to remain loyal to the brand and whether they would be willing to pay a higher price for it. Aggregate scores for these questions indicate that it would be possible to influence customers and maintain a loyal customer following.

It may be noted that the wording of these questions is subjective, leaving key parameters undefined by the customer. For instance, question one uses the term "often" but does not define what this word means. A more accurate estimate of purchase frequency would be helpful in future research — for example, how many purchases the customer expects to make within a given time frame.

The second section of research questions asks about the brand's attractiveness to the customer. The questions in this section are highly repetitive and do not differentiate what it is that makes the brand attractive or unattractive. This limits the diagnostic value of the findings for informing future marketing strategy.

Distinctiveness, Prestige, and Visibility

The third section of the research explored the distinctiveness of the brand compared to other brands the customer might purchase. Research indicated that a certain segment of the population considers FT both attractive and distinctive. However, the differences in means within the distinctiveness category are closer than those in the attractiveness category, which may indicate potential competition from rival brands.

In the category of brand prestige, scores were found to be similar between those who felt the brand was prestigious and those who did not attach a high degree of prestige to it. The questions asked whether the customer believes the brand will be prestigious. Since the brand has not yet been launched, it is difficult to determine whether it will gain a high degree of prestige. These questions consider only future customer estimates of the brand's potential, making it difficult to gauge genuine consumer reaction before the brand has been introduced to the market.

The next section of the study examined the visibility and recognisability of the brand. Results demonstrated that the brand would likely be recognisable and that the potential exists to make it highly visible. However, this remains difficult to determine given that the brand has yet to be marketed in Australia. These preliminary results indicate that it may be possible to build a recognisable brand in the Australian marketplace. An additional study should be conducted to explore this factor shortly after the brand has been officially launched. Relationship marketing will play a major role in building brand loyalty and recognition (Palmatier, Jarvis, Bechkoff, and Kardes, 2009, p. 1).