Fashion Marketing free essay sample

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London College of Fashion Graduate Certificate in Fashion Marketing FEEDBACK SHEET Unit Title Principles of Fashion Marketing Credit Rating 20 Staff Responsible Edwin Phiri STUDENT: A A Haseeb Uddin Project/Assignment title Marketing Plan Level 3H – Graduate Learning outcomes Define marketing concepts and their significance in contemporary fashion marketing †¢ Identify and explain fashion marketing segmentation targeting and positioning †¢ Critically evaluate consumer buying behaviour and the marketing approaches developed to meet consumer requirements †¢ Describe and explain the role of fashion public relations and other promotional techniques in communicating fashion to consumers †¢ Grade Feedback against Learning outcomes Outstanding definitions of marketing concepts and their significance in contemporary fashion clearly discussed in the report Excellent discussion regarding segmentation, targeting and positioning techniques for the selected range. We will write a custom essay sample on Fashion Marketing or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Outstanding information supplied and discussed in relation to market approaches in order to meet the consumer requirements. Very good information illustrated in the report regarding communicating with customers 86% / Distinction Additional comments: Haseeb, you have presented a very well balanced report between theory and practised that was a marvel to read. You have made specific, clear and what seems to viable and achievable suggestions and backed them with the relevant facts and figures. The standard of writing is very good and the discussion is easy to follow punctuated by headings and sub-headings to guide the reader. Harvard style was well used. Tutor’s signature (Edwin Phiri) Date 19 June 2006 IV signature where applicable Marketing Plan Exploring the potential of Children’s Wear Online Retailing in Pakistan By Abu Adham Haseeb Uddin Tutor: Edwin Phiri Principles of Fashion Marketing Graduation Certificate in Fashion Marketing London College of Fashion Marketing Plan for Retailing in Pakistan Online Children Wear Online Introduction: The application of a range of techniques and a business philosophy that centres upon the customer and potential customer of clothing and clothing related product, promoting a lifestyle and services is called fashion marketing (Easey, 2003). Likewise, the management of the objectives set to be achieved by the means of advertising and other promotional activates for fashion can also be defined as fashion marketing (McDonald, Dunbar, 1995). Fashion Marketing according to Morden (1995) is the most important managerial task within the organization of understanding the needs of the customer in the marketing in the light of fashion context (Morden, 1995). Looking reflexively into the above statements, fashion marketing is dominant and regards the designer or marketer as someone who must respond to the specification of customer requirement as established by marketing research. It is also argued that marketing constraints have strangled the creative aspects of design (Easey, 2003). Identifying a marketing opportunity requires extensive research in the target area of the proposed plan. Any action taken must start from an understanding of the market, and must work back from this to production. The first step in establishing a sustainable buyerseller partnership is therefore to establish the level of demand for the product, and to confirm that this demand will not disappear at least in the short term (Morden, 1995). The usage of Internet has revolutionalized the companies approach to target their customers and offer product in a more accessible way. Internet is now an essential element of every individual, who intends to work efficiently and resourcefully. The Internet has extensively changed the way people live or contemplate their lifestyle. In the recent years, online retailing has become an important channel of promotion and 1 of 15 distribution to fragmented markets. The Online retailing has proved to be more effective and more profitable approach for every kind of business. Similarly, Internet marketing has had a large impact on several industries including the fashion industry all over the world (Smith, Chaffey, 2001). The Internet has also become an indispensable tool in the fashion-marketing context. The use of the Internet has allowed fashion brands/retailers to establish a presence on the World Wide Web prior to a potential future transactional website. The Internet allows companies to penetrate into international, even global market without the costs associated with this strategy. Many children wear fashion houses (Mother Care, MS, Johnson Johnsons, etc) have crossed international boundaries and therefore provide opportunities for international marketing communications for global fashion brands (Easey, 2003). â€Å"A rapidly growing number of consumers are online and while there, many are shopping and buying. Even so, the sentiment surrounding e-retailing has gone from one of all blue skies and unlimited possibility to one that may more accurately reflect the business realities of e-retelling’s future. E etailing has become an accepted mode of retailing† (Whitfield, 2003). Online retailing is a type of marketing that can be defined as achieving objectives through the use of electronic communications technology such as Internet, e-mail, E-Books, database, and mobile phone. It is a more general term than online marketi ng, which is limited to the use of Internet technology to attain marketing objectives (Yips, 1989). 2 of 15 Marketing Proposal The Marketing Plan Aims to develop an online retailing model based of the marketing mix focusing on the customer (people), channel/online retailing content (place), cost effectiveness (price) and promotion (online and offline). The essence of this proposed model is based on the idea that it will create increased revenue and cost effectiveness for both consumer and the online fashion e retailing in Pakistan. The fashion marketing mix is the range of variables that can be controlled by the fashion marketer to meet the needs of buyer’s profitability. The marketing mix is getting the right product to the chosen market segment at the correct time, in the right place, and for the right price (Easey, 2003). Morden (1995) discusses Marketing mix as the combination of detailed strategies; tactics; operational policies, programmes, techniques and activities, to which resources may be allocated such that the company’s marketing objective can be achieved. The marketing plan focuses to implement an Online Retailing model to a Children Wear and accessories outlet for the age group of 0 – 6 . The marketing plan encompasses, from online shopping to the delivery of the product. In 1998, census conducted by the Government of Pakistan resulted that Pakistan’s total population then was approximately 134 million. However with in the next eight years, the population growth rate per annum came to an average of 2. 75% resulting in an approximate present population of Pakistan to 158 million. Out of the 158 million population of Pakistan, on average, a total of 13% of population belongs to the age group of 0 – 6. This results in almost 20. 4 million children who are living in the urban areas of Pakistan only (Federal Bureau of Statistics Pakistan, 2004). This only gives us a rough idea as how lucrative the business model may be ascertained and the potential this market possesses. According to the All Pakistan Internet 3 of 15 Association, by the end of 2005, the individual Internet usage has topped more then 8 million users all over Pakistan, at more then 109 destination (APIA, 2005). In the past few years, online retailing has had a successful penetration as a marketing tool in Pakistan. Initially the online retailing sector was used by the banking sector only. But in the past two years, the online marketing is penetrating in other businesses. Most of the companies, which are using the Internet as a marketing tool, are from the Automobiles, Electronics or service-based industry. None of the Fashion related companies have been using the Internet for online retailing or at least for the marketing of their products. However, a niche segment of the Internet users of Pakistan, look online for new fashion products but because of scarcity of Fashion House Website’ unavailability, they have to look into fashion houses in different countries. Even though the Internet usage in Pakistan is now constantly increasing day by day, people have not been able to successfully take complete advantage of the facility. The online retailing is Pakistan has yet to be explored especially in the discipline of Fashion Marketing. The retailers’ use of Internet as marketing and retailing tool has given them a great leap in their advancements. Because of the Internet, the retailers can make a huge cost difference in marketing and selling their products. The most ideal feature for the details is that the Internet has ended all geographical boundaries (Morden, 1995). Online retailing is similar to agricultural-age marketing, with direct recurring relationships between consumer and producer but with lower costs (Sheth, J. N. , Sisodia, R. and Sharma, A. 2000). 4 of 15 Environmental Analysis of the Proposal In order that marketing activities such segmentation, targeting and positioning are carried out effectively and efficiently, the company needs to make an analysis of the environmental in which it operates. This is called the environmental analysis. The company has an internal (micro) and external (macro) environment. Factor with in the internal environment can be easily controlled or manipulated by the company to suit its immediate control and are therefore are termed as ‘uncontrollable factors’ and quite unpredictable therefore constant monitoring and evaluation is important (Morden, 1995). SWOT Analysis SWOT analysis is the micro level environmental analysis tool which assesses the internal factors that would affect its marketing activities and there for competitive position. Morden (1995) discusses SWOT analysis as a tool for auditing an organization and its environment. It is first stage of planning and helps marketers to focus on key issues. SWOT Analysis considers both internal and external factors about either the whole company or a particular fashion product line or range in relation to customers, competitors and trends in the marketing environment (Easey, 2003). The identification of the key strategic issues is one of the most outcomes of the SWOT analysis, which is later, fed particularly in marketing objectives to achieve the goals. Strengths The retailing model that has been proposed, is already working in Karachi in the shape of children wear and accessories outlet. The business is being operated successfully for the past 15 years. This gives an extreme amount of experience broadly, as what are the products, which are required to fulfil the needs of children of the age group of 0 – 6. The available experience will help jumpstart the categorization of the products from the daily usage commodities to products used occasionally and used on special occasions. 5 of 15 Since the business has been in successful operation for the past 15 years, a strong customer loyalty has been established. In addition, none of the other fashion houses in Pakistan are using the internet as marketing or retailing tool, therefore it gives an advantage as the first to use the technology in the Fashion Market of Pakistan. In order to minimize internal and external threats, measures will be taken to offer more wider range of products, better quality of the products and low pricing will be introduced. Weakness Specifically in Karachi, there are many outlets who deal exclusively in children wear and accessories. Therefore pricing and delivery of the product are addressable issues. It is very interesting to find out that Online Retailing in Pakistan is now being used more then ever it has been, however shopping over the Internet has not been accepted in the general public domain due to some logistical factors. These logistical factors include the delivery of the products to the consumers and most importantly, less number of people holding Credit or Debit Cards, which can be used over the internet. How ever measures such as setting up a delivery procedure and an alternative payment method may be inducted to address such issues. Opportunities Even though the Internet usage in Pakistan (especially in Karachi) is now constantly increasing day by day, people have not been able to successfully take advantage of the facility. Very few companies in Pakistan have shown interest in setting up any electronic form of marketing and selling approach. The Apparel industry in Pakistan has hardly used the Internet as a form of marketing tool. The Online Retailing concept has yet to be explored in Pakistan, especially in the fashion industry. Currently there are many individual outlets in Karachi, who deals in the retailing of Children Wear and Accessories and some of them also have chain of outlets in Karachi and some urban areas of Pakistan. Even having chain of retail outlets, none of them 6 of 15 provide services to the customers such as online retailing or delivery services. Where as the proposed plan, provides both from shopping online to the delivery of the products. If the proposed plan is success in Karachi, it shows significant evidence that it can be expanded to other urban cities of Pakistan too. Therefore an opportunity to expand the business to the rest of the Pakistan exists. Threats As mentioned above, other business retailers in Pakistan who also specializes in the children wear and accessories are also operating, (in some cases, more then one city in Pakistan) they can be of a direct threat even when they are conducting their business offline, as they may offer competitive pricing and offers. Therefore it is very important to keep a close watch as what are they offering to their customers and at what price. 7 of 15 PEST Analysis The PEST Analysis is the acronym for Political, Economical, Social and Legal factors which is concerned with the environmental influences on a business. Identifying the PEST influences is a very useful way of summarising the external environment in which a business operates. How ever, it must be followed up by consideration of how a business should respond to these influences (Morden, 1995). Although the business is already established as a retail outlet in Karachi, PEST analysis may influence the implementation of the proposal. Political and Economical Environment: Even the textile and apparel sector of Pakistan are the main export products of Pakistan, a number of products (especially children accessories) are imported from other parts of the world. The national and local government policy changes can have effect over availability and the pricing of the products which will be imported from other countries. The financial health of the economy and other economic factors can have direct impact over the spending of the customers. Therefore once again, the pricing policy of the product will be required to review as the economical and political factors change. Legal Environment: Legal restriction and legislation can play a very important role in profitability of any business. Therefore the legal issues may be taken into account before executing the proposed plan (Morden, 1995). The legal issues majorly include purchase licence of Telecommunication and server equipment, for which the respective department of the Government of Pakistan shall be contacted. Since the proposed business is already in operation complying with all the legal obligations to operate, therefore no others legal issues should be of concern. 8 of 15 Technological: Technological factors can provide both threats and opportunities. Organizations are expected to keep up to date with changes and new equipments (Easey, 2003). One of the most technological factors that can pose a threat is that the overall Internet and telecommunication Infrastructure in Pakistan is weak, which might result in connectivity problems from the end user to the onlin