Jedwan International’s marketing strategy in Ireland
1. Introduction
Jedwan International is a hair gel manufacturer targeting the market segment of 17-21 years old in urban areas of Ireland. This group has limited financial capability but has freedom to make purchase decisions. The company wants to increase its market share in the Irish hair gel market and expand its business in the country. In order to achieve these objectives, Jedwan needs to develop an effective marketing strategy. The purpose of this report is to recommend a marketing strategy for Jedwan International in the Irish market, based on an analysis of the company, the target market and the economic environment of Ireland.
2. Jedwan’s marketing strategy
2.1 Target market
The target market of Jedwan hair gel are teenagers aged between 17 and 21 years old, who live in urban areas of Ireland. This segment has limited financial capability but enjoys freedom when it comes to making purchase decisions (Mintel, 2017). Jedwan wants to increase its share of this target market by 3% within the next two years (Jedwan International, 2018).
2. 2 Positioning
In order to increase its market share, Jedwan needs to position itself as the best hair gel for teenagers in terms of quality and price. The company also needs to focus on its unique selling proposition, which is that it is the only hair gel manufacturer that uses natural ingredients.
2. 3 Promotional mix
To achieve its objectives, Jedwan will use a mix of above-the-line and below-the-line promotion. Above-the-line promotion will include television advertising, while below-the-line promotion will include discounts and coupons in magazines aimed at teenagers.
3. The Irish market
3.1 Economic overview
Ireland is a small, open economy with a population of 4.8 million people (CIA, 2018). The country has a GDP per capita of $52,610 and an unemployment rate of 6% (OECD, 2018). The economy is export-oriented and is supported by foreign direct investment (FDI). Inward FDI stocks amounted to $461 billion in 2016 (UNCTAD, 2018). The main trading partners of Ireland are the UK, the US and Germany (Department of Foreign Affairs and Trade, 2017).
The Irish government promotes an open and transparent business climate and is committed to reducing the administrative burden on businesses ( Doing Business in Ireland, 2017). The country is ranked 5th out of 190 economies in the World Bank’s Doing Business 2018 report (Doing Business, 2018). Major challenges for businesses operating in Ireland include high corporate tax rates, skilled labour shortages and red tape ( Doing Business in Ireland, 2017). These factors make it difficult for businesses to operate profitably in Ireland and may dissuade potential investors from setting up operations in the country. However, the Irish government has introduced a number of measures to address these issues, such as reducing the corporate tax rate from 12.5% to 6.25% for profits arising from patents (Ministry of Finance, 2018). Additionally, the government has created a scheme which allows non-EEA nationals who graduate from an Irish institution with a job offer from an Irish company to obtain a work visa (Department of Justice and Equality, 2017). These measures are designed to make Ireland a more attractive destination for foreign investment and to promote economic growth.
3. 2 Doing business in Ireland
The process of setting up a business in Ireland is relatively simple and can be done online ( Doing Business in Ireland, 2017). The main steps are to register the company with the Companies Registration Office and to obtain a tax number from the Revenue Commissioners. Once the company is registered, it must comply with a number of legal requirements, such as preparing financial statements and holding annual general meetings.
businesses need to have a physical presence in Ireland in order to sell their products or services (Department of Business, Enterprise and Innovation, 2018). They can do this by opening a shop, an office or an online store. businesses selling goods will also need to register for value-added tax (VAT) if their annual turnover exceeds €37,500 (Revenue Commissioners, 2018). E-commerce is growing in popularity in Ireland, with 22% of internet users making online purchases in 2017 (Statista, 2018). This provides opportunities for businesses to reach a wider audience and to grow their sales. businesses selling online will need to ensure that their website is compliant with the EU Directive on Consumer Rights (Department of Business, Enterprise and Innovation, 2016). This Directive requires websites to provide clear and concise information on prices, delivery charges and return policies. failure to comply with the Directive can result in fines of up to €5,000.
4. Conclusion
Ireland is a small, open economy with a favourable business climate. The country has a well-educated workforce and is committed to reducing the administrative burden on businesses. These factors make it an attractive destination for foreign investment. Jedwan International should focus its marketing strategy on teenagers aged between 17 and 21 years old who live in urban areas of Ireland. The company needs to position itself as the best hair gel for teenagers in terms of quality and price. To achieve its objectives, Jedwan will use a mix of above-the-line and below-the-line promotion.