This report was compiled by an Accountant Executive under the instruction of a successful Marketing Communication Agent in the UK by the name Brand Spanking, who have specialized in handling multi-media campaigns, with the aim of assessing a highly competitive applicant in the job market.
The selected product is the High Street Fashion Retailer, which are primary business streets of towns or even cities particular in the United Kingdom. In most cases, it is a focal point of shops as well as retailers in city centers and the phrase has been used mostly in reference to retailing. However, currently, the phrase high street banks, has also gained its use in meaning retail banking sector in U.K. in the recent past, high street fashion retail l sector has been growing in the U.K. in previous cases, most retailers in this sector used to operate in a single city, now they have diversified their business to different cities. This is due to market expansion as well as accessibility, (Ailawadi, & Keller, 2004).
Economic factors; in this market is affected adversely by economic factors as they influence demand, prices, costs and profits. One factor is high economic status. One factor is that, economic recession has reduced effective demand for many fashionable goods due to high cost of living.
Social factors; the current trends show that British customers have moved towards one stop and bulk shopping due to social factors, hence high street fashion retailers have included non-clothing products for sale. Aging population as well as increased number of female workers has both affected market. Peoples' fashion is has been a function of their social conditions along with their conditions
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Technological factors; technology is has influenced development of fashion products in UK. The new technologies have benefited both customers and business owners. Shopping has become more conveniently through internet, shopping has become personalized. These retailers are using wireless devices, and electronic shelve labeling. Most of them have developed brands based store images, product, and customer service.
Political factors; since they are located in cities, they are highly affected by political and legislative conditions. For instance, the government encourages them to provide a mix of job opportunities. Also government legislations along with policies have direct impact on high street fashion retailers. The government control on monopoly as well as price wars affects the industry too.
Environmental factors, there has been pressure on fashion industry to forcefully be responsible to the society], and do what is demands. They have to provide products according to the fashion at that time.
With lots of competition in high street fashion retail market, there has been a dire need of better communication mix for the purpose of capturing the customer's loyalty and interests. However high street fashion retail faces the challenges of diversification of customers based on city markets. The marketing strategy used, hence ends up targeting the customer needs that originate from the distinct background that has different tastes and fashion. As a result, a high street fashion retailer has to keep in consideration all marketing aspects as well as brand accessibility in the competitive city markets, (Dunne, et al, 2002).
The main communication mix concept that retailers determines, is that of clear definition of target markets, accessibility communication as well as retail mix. Though retail mix has been a new phenomenon, it has been used to refer to the combination of merchandise price, promotion and advertising, customer service along with selling, store layout and design. The whole of these combinations are applied in the process of attracting as well as meeting the needs of target markets of a high street fashion retailer. Each and every concept of these retail mixes is very significant and fundamental to the retailer. In real life application, different high street fashion retailers adopt different combinations of retail mix, with the aim of capturing the market share, (Ambler, 1996). Some of them might use price and advertising as the main determinant theme of retail marketing, while other employ marketing niche along with customer services as the main feature of attraction. In communication mix, the following tools are applied;
Advertising; this is the use of mass media to cover a very large geographical dispersed population. Though it is considered expensive, but cost per head is too low. Also advertising costs can be very faster when TV, radio and even online mediums are used. They also have the capability of using newspapers, billboards, in buses as well as signs and posters.
Direct marketing; this marketing communication tool enables high street fashion retailers to directly reach to their consumers without any intermediate channel such as those required in advertising. This tool of communication mix includes direct mails telemarketing as well as television infomercials. If this tool is utilized very well, or if done properly, the strategy has the capability of having long term effects and may allow targeted marketing approach to specific fashion customers for the creation of along lasting relationship. In most cases, it enables retailers to make interactions with a very large number of individuals, and might encourage call Actions which in most cases is considered as a purchase. On the other hand, the side effect of this tool is that, it is always unsolicited and might be seen as a nuisance to the members of the public. In addition, telemarketing, together with e-mail spamming and junk emails has been universally dispersed. Due to these side effects, the tool has to be used with much thought and cautious, (Topalian, 1984)
Personal selling tool; though this is the most dreaded method; it is also perceived as being expensive methods of marketing fashionable products. However, if the high street fashion retailer is still s mall business or even large but has the capability of to get into selling personally and making relationships, this tool can be the most rewarding aspect than any other communication tool, both personally and professionally. Just like the old marketing schemes, successful selling starts and hand has to end with the customer. The entire process involves ascertaining needs and the creation of best solutions for customers. on the process of marketing, retailers ends up creating relations with customers and gathering significant information that concerns the process of improving ways and means of serving customers which is there reason of being in business. Both sales and marketing the very significant and vital for the survival of any business entity, and both involves the creation of customer for the sake of values customer values that retailer created. However, the difference between the two is that, sales targets on individual or entity, while the latter targets a group. However, both informs and persuades through several tools of communication.
Public relations, PR; this refers to the way in which the retailer handles his relationships with customers, as well as the flow of information with their various people who might be having a stake in or are much affected by their business. This might include the general public, employees, business competitors, partners as well as the government. PR "has been developing into a more and more crucial element of the marketing communication mix as a business or organization grows larger. Fin addition, it is still a fundamental component of the marketing communication process to think about for smaller businesses as well. The strategies tools include press and media releases, lobbying, charitable and public events, advertorials, financial reports, promotional collateral, facility tours, sponsorships, interviews and any other method for the promotion of a positive image to people." (Aaker, 1998) It has been depicted that in the fashion industry, particularly in a high street that has the highest number of retail shop, customers buy from people having the highest level of PR. However, the advantage of this tool is that, it fosters socially cautious business practices or actions. On the other hand, it epitomize in the presence of shady political lobbing, which might divert from the reality as opposed to its promotion.
Sales promotion, high street fashion retailer at the same time has the opportunity of using sales promotion. Sales promotion has been used to refer to the purchase incentive that the retailers provide to their customers with. There are different forms in which sales promotion occurs, they may include offering gifts, coupons, vouchers, discounts, financial incentives among other things like charitable promotions. The problem is that, in most cases, this tool is short lived; as the incentives which were customers being offered to customers now, push them to buy. The key takeaway is that, regardless of business size as well as business type, the retailer needs to continue looking at ways through which the creation additional value to customers ought to be done. As this will make the customer appreciate, (Melewar & Wooldridge, 2001).
Recommendations and Communications Plan
The first step is carrying out market research that should include understanding of business competitor practices. This is because markets vary depending on either business or organization concerned. But it should be noted that, for every organized practices have markets. Knowledge on markets is helpful in the assessment, valuing and planning on how to engage with it. Market research need to be based on the needed information for example market size and market segments. This will help in the formulation of strategies along with making business decisions. The basic elements and required for quantification and understanding include customer numbers, profile and mix among others.
Establishment of corporate philosophy along with business objectives or perceptions; the confirmation, and the establishment along with the validation of business aims, does differ in most cases depending on the business type basing one the owner. Since the world is changing constantly, challenging preconceptions of fundamental structure of businesses should be encouraged. Enriching few investors whilst neglecting the needs and requirements along with the involvement of others contains tensions and at a very deeper degree. It is recommended to use innovative business structure which provides a more natural, fueling and cooperative relations inherently. After confirmation of philosophical along with ethical stands of the business, it is essential to develop business objectives (Kotler, 2007).
The next thing involves the definition of the organization's mission statement. This is very useful as it tell consumers, investors and the staff as a whole the objectives of being in business. For the development of ownership and responsibility senses, it is good to involve employees in the definition and refining the statement of business mission, (Burk, 2004).
Definition of product offering, service offerings and sales proportions; d it is important to understand and clearly define what the business will be providing to the community or customers. The way business will be done and the benefits that customers will be getting from the business operations are included at this stage. One of the most significant operations in the proposition development is the translation of personal views of such services into an offer that business consumers are in a position of enjoying. This kind of definition has to make some senses has to be sensible to customers in a manner that they are advantageous and beneficial to clients. It should not be either technically good or scientifically correct to the owner. In marketing and sales terminologies, this is called translation of features into benefits. The simplest way of doing this just adding prompts, meaning taking strong feature of the business for instance it is open 24 hours , might be translated into a benefit like 'we are open 24/7'. This means that, customers can get whatever they want at any time. Fin short, the important thing is the understanding of personal services and prepositions in a manner that customers are able to recognize is as being of relevant and very beneficial, (Burk, 2004).
While writing marketing strategy, "include costs and sales, sales margins and if necessary business overheads" (Chapman, 2010). It is essential to ensure that, the plan addresses what the bossiness requires it to address. The most important thing to remember is that, marketing strategies should be rooted on cost effective, profitable causes as well as effects. The required inputs to ensure a certain output need to be identified, analysed and quantified separately for the purpose of management and measurement of relevant practices and resources.
The last but not least thing is the quantification of the business being searched from "each of the targeted market sectors segments, products and customer groupings, and allocate investment, resources and activities accordingly" (Igor, 1957).
The First Tool Is Called Ansoff Product-Market growth Matrix, or in simple terms, strategic tool; this is a very significant tool developed by Igor Ansoff. This tool helps in the understanding and assessing marketing strategies. Nike Company has a chance of selecting which strategy should be used. This is very simple and most effective in assessing strategic development. Ansoff strategies have different prospects as well as downsides of different organization, (Bradley, 2007). The best strategies for Nike Company include;
Market penetration; involves the development of existing products sales to the company existing markets. This fits the company because it has markets that are growing very fast and large enough for the growth it requires. "This is particularly in the developing nations where youth population is growing very fast", (Igor, 1957). Due to this, the company is considering if further development tin this sector might lead to diminished returns from business development activities. Strong market share indicates that there are higher returns from extending product range.
Another tool is Boston matrix model, product or service development. This is a tool that has been used by the company in the process of assessing existing as well as product development to gain market potential. The best strategy that fits Nike Company is problem child. This is based on the reason that, the company has big and growing market potential both in developed and developing nations, but existing low market share. This is because; some of their newly developed products have not yet gained the market. This area of business is some how competitive, where the company takes the risk hopping to secure good early distribution arrangements, reputations and images along with market share, (gsbapps.stanford.edu. 1998).