1 KMC6203 MARKETING COMMUNICATION STRATEGY Company Chosen : Machino Prepared by: STUDENT NAMES STUDENT ID SYAZA NADIA BINTI MOHD AZMI 1211101221 AUDRA ADRIANA BINTI AHMAD FUAD 1211102315 NATASHA ALIA BINTI ASRARUDDIN 1211102700 MUHAMMAD NUR ASWAD BIN JAMEL 1211104546 Prepared for : DR. NURAFIQ INANI MAN
2 "Machino" which stands for Melayu, Chinese, Indian and Others is a well-known Malaysian company that has succeeded in carving out a place for itself in the cutthroat industry thanks to its creative products and alluring marketing techniques. They are famous for their thick insole heels yet so chic in this time of era. Esther and Amy Tai, the founders who graduated with degrees in Marketing, the sisters started developing their brand and conducting research and development to create the ideal pair of shoes while working with their uncle, who owns a shoe factory that has been in operation for more than 20 years. During Malaysia's first lockdown, this occurred in March 2020. "Our goal was to make shoes that would be cozy for ladies who walk and stand for extended periods of time," continues Amy. Making intelligent use of digital media, Machino has made Instagram a vital avenue for its marketing initiatives. In order to provide insights into the brand's strengths, weaknesses, opportunities, and threats in the market landscape, this study thoroughly examines Machino's marketing strategy marketing mix and does a thorough SWOT analysis. We hope to learn more about the elements that have contributed to Machino's success through this analysis, as well as pinpoint areas where their marketing communication strategy may be strengthened and expanded upon. Behind every well-known company, their successes heavily depend on the marketing strategies that they deploy. As elaborated by Bombardier (2022), an effective business marketing strategy helps boost growth as well as the number of consumers for a business. To showcase the effectiveness of good marketing strategies on a company further, the strategies that Machino has executed that lead them to stay competitive in the market will be elaborated on. First is social media tools. With the evolution of social media, companies have been utilizing it to advertise their products. The many tools and features provided on any social media platform have been helpful for companies in enhancing their marketing. In relation to Machino, based on figure 1 shown below, Machino has used Instagram's Story Highlight feature, which can be seen on their page. The highlighted stories have featured their collections, campaigns, size guides, and more. These highlighted stories can be advantageous for them as they can widen their audience due to the easily accessible content and information. To elaborate, if new potential customers were to check out Machino's page, the featured highlighted stories could contribute to the customers' interests and attention. As a
3 consequence, this can lead to the growth of Machino's audience due to its strategic marketing plan. (Figure 1) Other than that, customer engagement is also one of the most crucial factors in marketing strategy to keep the good name of your company. Engaging with your customers is one of the best ways to maintain their trust and loyalty. As for Machino, there is no denying that they have been engaging with their customers as can be seen across their social media pages, especially on Instagram. Machino is very active in replying to customers’ comments, as seen in figure 2 below. This action can lead new potential customers to perceive Machino as a friendly and welcoming company, which can greatly contribute to the company’s good reviews and increase potential growth.
4 (Figure 2) Machino’s strategies also go beyond their own content creations. This means that they have been strategically utilising the content created by customers, or otherwise known as user-generated content. As stated by Arun (2023), user-generated content is the act of enabling your audience to involve themselves with your brand further. Similarly to Machino, figure 3 shown below is an example of how they have used content posted by their customers on their Instagram page who use their products. Not only can this strategy be cost-effective as the audience itself makes the content, but it can also increase customer engagement and loyalty, which can lead to an increase in the audience and eventually increase market growth.
5 (Figure 3) Apart from having good marketing strategies, being attentive to the marketing mix in a business can further increase the chances of a company reaching its full growth potential. This enables a company to effectively reach its target market, create persuasive strategies, adapt to market conditions, and achieve marketing objectives (Chakrabarty, 2023). Therefore, with the 4Ps of the marketing mix in mind, the marketing mix of Machino will be further discussed. The first P that comes in the marketing mix is product. Brands that prioritise the needs of their customers can lead to them producing unique products. As Kenton (2024) explained, the product in the 4Ps of marketing represents an item or service designed to satisfy customer needs and wants and identifies what differentiates it from competing products or services. As for Machino, their shoes are 100% handcrafted with super thick insoles to provide comfort to the feet and support long walking and standing hours, giving the back a better support (Machino, n.d.). This proves that Machino prioritises the needs and comfort of their customers with their productions. Other than that, having products that differentiate your brand from others is what makes your brand stand out. Machino has a factor that sets them apart from other brands specialising in women's footwear. As stated on Machino's Instagram bio, they are the first brand in Malaysia to provide thick-foam insoles, distinguishing them from other brands. All in all, Machino is able to make itself unique by focusing on innovative
6 features to provide high-quality footwear that meets its customers' comfort and support requirements. Next in line comes the price. When marketing a product, it is crucial to establish a price that aligns with market trends, remains affordable to consumers, and ensures profitability for the business (Yasar, 2022). Considering that Machino is a 100% handcrafted brand that uses high-quality materials, their prices can be perceived as reasonable. Their heels are retailed for around RM130 up to RM200 and above (Lemon8, 2023), which is a strategic competitive price that can aim to attract young adults who seek trendy fashion without hurting their pockets. Moreover, Machino is also smart regarding their pricing strategy as occasionally, they would offer discounts and promotions during festive seasons such as Eid Mubarak or Chinese New Year. That way, Machino is able to attract price-sensitive customers, which eventually leads to the growth of their customers as well as their market revenue. Overall, Machino’s pricing strategy has led them to stay competitive in the market without experiencing any significant loss. With good products at reasonable prices, the placement of where the products are being marketed and distributed should also be considered to stay dynamic. Machino distributes its products through various channels, including standalone retail stores, franchise outlets, and e-commerce platforms. Choosing strategic places and platforms to market products is essential to reach a brand’s target audience. For Machino, some places they have chosen for their pop-up stores are in shopping malls and popular urban areas, such as Bukit Bintang, Puchong, and Petaling Jaya. These locations are where young adults and trend-seekers can be commonly seen. Machino is also strategic when choosing platforms to market their business. Since their target audience is more inclined toward young adults, they have been utilising Instagram and TikTok to sell their products. Since both of the mentioned platforms are largely used by their target audience, Machino is also inclusive to market their products to the older generation. Hence, Machino also uses Facebook, a platform widely used by millennials and older generations, to advertise their products. Altogether, Machino has a strong online presence due to its ability to be active on multiple platforms with a wide range of target audiences. The last factor that comes in the 4Ps of the marketing mix is promotion. Just like the name, promotion is all about spreading awareness about the products and services offered by
7 a company (CFI Team, 2022). As elaborated previously, Machino is far away from unfamiliar when it comes to marketing tactics to promote its brand and products. Machino incorporates a mix of promotion strategies to inform a broad audience of its products. One of them is by collaborating with multiple brands in Malaysia, such as Hanya, Behati, and Alia B. These partnerships can introduce Machino to the collaborators’ audiences, potentially opening up Machino to new audiences. In addition, Machino incorporates in-store promotions, such as seasonal sales and customer loyalty programs. These strategies can encourage repeat purchases and enhance customer loyalty. Machino also runs advertising campaigns on social media platforms, fashion magazines, and local TV channels to reach its target audience. On the whole, Machino’s promotion gets the word out in an effective way to a wide audience. After looking into Machino’s marketing mix, it is crucial to understand the marketing communication strategies via situational analysis. The SWOT analysis provides a framework for assessing the current state of your company and identifying areas for improvement or areas where it might grow. Finding the internal and external issues affecting your organisation can be aided by SWOT analysis (Employment, Small Business, and Training, 2023). The first element of SWOT analysis is strength, and one of Machino’s strengths is their brand recognition. They have built a strong brand identity with its distinctive designs. Machino’s products are easily recognizable which easily separates them from its competitors. The brand’s visual identity has been carefully and thoughtfully designed to combine the modern and the traditional to represent its identity and lifestyle. Aside from that, Machino is also known for their good quality products. They set an importance on quality across the board for its products. Machino takes great care to guarantee that all of its goods are not only comfortable but also long-lasting, with an emphasis on fine materials and expert craftsmanship to bring out the shoe's structure that goes into making each pair. Machino wants its customers to experience the ease of walking in shoes that fit every type of sole in addition to the beauty of traditional Malaysian colours and designs (ONZZ Malaysian Urban Brands: Footwear – Echo Media, 2022). Other than that, Machino emphasises inclusivity in its offering to a wide range of customers regardless of their age or ethnicity. They wish for every person to feel included and represented by providing a broad range of sizes, styles, and options. The all-inclusive strategy increases the brand’s appeal to a wide range of customers and helps people feel included, and enhances brand loyalty (Gaikwad, 2023).
8 Nonetheless, Machino also faces some weaknesses that can potentially prevent its growth in the market. For instance, they are handcrafted; therefore, there is limited production through every release. As opposed to mass manufacturing methods, handcrafts usually need more time and labour to produce the best and consistent quality. Consequently, it would be difficult for the brand to effectively increase its business as it might encounter difficulties satisfying rising demand without sharply raising prices or compromising quality. Moreover, Machino also struggles to keep up with customer demand due to limited supply. This can be seen in the comments section of their Instagram in figure 4. (Figure 4) Long customer wait times and frequent product shortages could lead to lost sales opportunities. On that note, if the problem is not sufficiently resolved, potential customers may look for substitutes from competitors who can meet their demands more consistently (Taylor, 2022). Besides that, based on the observation on their Instagram, another weakness of Machino is that their focus is crafting footwear exclusively for women, particularly heels and sandals. Due to its limited product selection, the brand may not attract many male customers or those looking for different kinds of shoes. However, Machino presents several opportunities to capitalise on the business, one of which is having the ability to change the style and lifestyle of their consumers. They may
9 develop creative designs that incorporate traditional elements while also keeping an eye on changes in lifestyle demands, such as the need for comfortable and versatile footwear and fashion trends. With that, Machino is able to stand out in the market and draw in potential customers while maintaining its existing customer base. Another opportunity that can prosper is the expansion of the market. Machino can create a presence for expansion by utilising local or nearby events as a market research method. For example, their recent involvement in opening a Raya booth in Singapore leaves an opportunity to test market demand, interact directly with potential customers as well as present its products to a new audience. A successful growth strategy requires an understanding of the prospective demand, customer preferences, and customs of the new geographical areas (Golhar, 2023). In other ways, Machino can also find an opportunity through their limited quantity releases as it leads to the fear of missing out (FOMO) among its existing customers as well as potential customers. They could capture customers' attention by building anticipation and desire surrounding each new launch on their Instagram. This strategy not only helps create buzz and word-of-mouth advertising, but it also strengthens the brand's perceived worth and exclusivity among customers as it creates a sense of urgency (FOMO in Marketing: Scarcity Sells | Mailchimp, n.d.). Along with opportunities come threats that Machino could face. First and foremost are the threats from competitors from other local footwear brands as well as mass-produced brands. Competitors may provide comparable styles at cheaper pricing points or gain from economies of scale, which would put Machino's profitability and market dominance at risk. And for that reason, Machino could potentially face other threats, such as the risk of outsiders' production of counterfeit and knockoffs. People might try to imitate Machino’s designs and offer knock-off goods at a reduced cost, which can damage the company’s reputation as a high-quality and genuine brand (4 Ways That Counterfeiting Affects Brands, n.d.). Aside from that, dealing with counterfeiters can also result in legal costs and harm to a brand’s reputation, taking resources away from essential business operations. Lastly, fluctuations in raw materials prices are another one of the threats faced by Machino. Unexpected increases in the price of raw materials, leather, rubber, or textiles can have a big impact on production costs and reduce profit margins. Furthermore, the price changes could cause production delays and negatively impact distribution systems, hence making it harder for Machino to promptly complete customers’ orders.
10 From the SWOT analysis, it can be said that Machino is a competitive brand in the market. However, analysing Machino’s competitors can keep them in the game in the long run. There are many brands in Malaysia that can be a challenge for Machino, such as Saoi. Saoi, a fashion label established in Kuala Lumpur, is one of the prominent competitors to the local brand Machino. Saoi is a team of young creatives from various industries that specialise in bags, dresses, tops, and shoes. They are devoted to offering everyday wardrobe basics with a touch of flare. The business is founded on collaboration, working closely with professional partners, fashion designers, local entrepreneurs, and garment producers. The name "Saoi," which means "the wise one," represents the brand's idea of constant personal and professional development. They used to be known as WNS Studio, but as they rebrand and develop, the team hopes to leverage their skills and marketing strategy to offer high-quality items while remaining loyal to their passion for fashion. Likewise, Saoi is dedicated to creating a brand that not only looks great but also makes you feel like yourself. Saoi's fashion concept revolves around crafting timeless items that reflect current sensibilities, with an emphasis on meticulous craftsmanship and a commitment to simplicity without being overtly minimal. Their designs are inspired by everyday living, and they strive to produce apparel and accessories that are both unique and functional. The Saoi team believes in constantly learning and refining their designs to produce a well-curated wardrobe that can survive changing trends.
11 Despite the competition, Machino’s marketing communication strategy can be said to be effective. Firstly, Machino's marketing communication tackle effectively highlights company strengths and establishes a strong brand identity. Machino's unique designs, which combine modern and traditional aspects, are continuously presented across several platforms, especially popular ones such as TikTok and Instagram, producing a lasting image that distinguishes the brand. By emphasising handcrafted quality and inclusivity in product offers, the approach effectively appeals to a wide and varied client base. This clear and consistent messaging strengthens the company's identity, increasing brand awareness and consumer loyalty. Next, Machino also manages consumer expectations and modifies marketing messages to suit operational realities to improve the efficacy of its approach. Customer discontent is mitigated by the strategy's clarity regarding limited manufacturing capacity and probable delays in product availability. Utilising social media channels to tell clients about new releases and restocks shows how to effectively engage and enlighten the audience while lessening the negative effects of flaws like protracted wait times and recurrent product shortages. Machino's approach to marketing engagement is effective as well since it takes advantage of possibilities and minimises risks. Customers are made to feel exclusive and pressed for time by the brand's strategy of limited quantity releases, which increases sales and consumer engagement. Furthermore, Machino's participation in regional events and market research projects aids in the brand's expansion by enabling it to investigate new areas and monitor consumer demand. Machino safeguards its brand name and bolsters its distinctive value proposition by tackling challenges such as competition and counterfeiting through educational initiatives and authenticity-focused marketing efforts. These tactical methods enhance the overall efficacy of Machino's marketing communication plan, bolstering the company's expansion and market share. To sum up, Machino's market success may be ascribed to its smart marketing initiatives, robust brand identity, and creative approaches to product creation and consumer interaction. Machino has increased market growth, enhanced brand loyalty, and expanded its audience by effectively utilising social media tools, interacting with customers, using user-generated content, and maintaining a competitive pricing strategy. Its emphasis on
12 product quality, unique features, and inclusivity has also helped it stand out from competitors and draw in a diverse customer base. However, even with the challenges faced by fake goods, Machino could have taken the opportunity to create innovative designs, expand into new markets, and form strategic partnerships. Nevertheless, after all, things considered, Machino's marketing tactics, in conjunction with a careful analysis of its advantages, disadvantages, possibilities, and threats, have established the company as a credible and competitive player in the footwear industry, with room to develop and succeed going forward.
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