The Use of a Blue Ocean Marketing Strategy For Market Capture in the U.S: A Case Study of the Blujade Company

Abstract

Blujade is a new company which is still in the process of capturing a market share in the United States, for this reason, we have recommended a blue ocean strategy for them. For Blujade, our recommended business model is multilevel marketing. There are several reasons for recommending this business model, which are included in our analysis above. Blujade is a young company that wants to penetrate the US market, to stand out from its competitors we have come up with a blue ocean strategy, which would allow Blujade capture market share in the US, without going head-on with large competitors, such as Etsy and Pandora. To implement the brand ambassadorship model, Blujade will incur a one-time expenditure of $10,000 for creating an App and upgrading the website with computer vision.

People will link their Instagram account to upload pictures to the APP or the website. The computer vision system will be automated at the server site. When a customer buys a product, she will be sent a link from the server site to become a brand ambassador if she wishes so. Since the link is going to be sent from the server site, it will be coded with a unique ID. So when she clicks on the link to sign up for the app to become a brand ambassador, her sales will be tracked through her unique ID. Lastly, since the multilevel marketing model works as a matrix system, meaning; people at the top level will make a commission based on what they sell, and a part of their compensation will also include what or how much the people at the bottom or the next tier sell, for this reason, the server site will also keep a tab of the links that brand ambassadors are sending to recruit other brand ambassadors. As per the survey conducted by our team, the recommended sales model will have an estimated sales conversion ratio of 20 percent. However, for the pilot program we assumed a sales conversion ratio of 3 percent. The biggest issue that we believe Blujade will have to tackle is to ensure that enough people join the App or become a brand ambassador. To address this problem, we recommend using the services of fashion influencers on Instagram to increase Blujade’s Instagram following. Also, we recommend hiring a business development officer here in Atlanta, this person will be responsible for reaching out to the 60,000-female population of university system of Georgia via events and student organizations. We believe this approach will translate into more people joining the recommended brand ambassadorship model. Based on a sales conversion ratio of 3%, our analysis concludes Blujade will be in a capacity to break even in an year by selling 3,600 units. This will translate into a net revenue of $180,000.

Keywords: International Business, Marketing Strategy, Marketing, Multilevel Marketing, Competition, Entrepreneurship

JEL Classification: A, B, C, D, E, F, G, H O, P, L, M, N, T