Commercial Success of the All-Embracing Retail Conglomerate - Term Paper Example

Urban Outfitters Inc. Introduction Headquartered in Philadelphia, Pennsylvania, Urban Outfitters is a huge clothing conglomerate that operates in the retail industry. Its operations are present in many nations. These countries include the United States of America, Denmark, Ireland, Germany, France, Canada, Belgium, Netherlands, Sweden and the United Kingdom. It was established in 1970 by Richard Hayne, Scott Belair and Gabriel Tham-Morrobel. Urban Outfitters basically trades in footwear, apparel and housewares. The company is largely successful and has tremendously grown over the years. This positive growth can mainly be attributed to their coherent marketing strategies which otherwise are sometimes controversial. In addition, its choice of target markets and their persuasive promotions also add to its valuable status. The human capital that drives all these aspects of the business, under the able and innovative leadership of Richard Hayne, forms the backbone of the corporation’s success. Marketing Strategies Urban Outfitters has many successful brands. They all fall in their business range of products that include clothing, accessories, footwear, cosmetics, housewares and music. Their products have completely unique sense of style that makes it possible for them to penetrate the market, both locally and internationally. These styles are antiquated, outmoded, tacky, nonconformist and sometimes a hilarious irony. The styles are what feature predominantly in their five brands, namely Urban Outfitters, Anthropologie, Free People, BHLDN and Terrain. The Product Brands Urban Outfitters is a brand that specifically targets young grown-ups who are aged between 18 and 30. Their delivery in terms of the available products is apt to the point that it enslaves the customers. In any particular store, a variety of products are stocked and this compels people to make purchases. The young people are stylish, refined and classy, and sensitive acceptance among their peers is a huge point of esteem for them. Items in this brand include up-to-date fashion for clothes worn by men and women, luxurious accoutrements and footwear. Moreover, the Urban Outfitters stores offer a heterogeneous mix of flat commodities and presents. The paraphernalia for house decorations are carpets, cushions, hangings, night-lights, and originalities. One store is about 9000 square feet in size; that makes the space for purchase large enough to accommodate a significant number of clients. Disappointments in terms of stocks running out are rare since the stocks are always available. The stores are located in major cities where the population is high, inside particular universities where there are plenty of stylish young people and within shopping malls. The stores are designed in such a manner that people can socially engage and interact with each other. An example of a trendy male clothing Anthropologie is a brand that targets women aged 30-45. The stores are welcoming to high class females. Their range of assorted and exclusive products include females’ spontaneous clothing and fittings, home fixtures and a wide collection of exotic and ornamental objects (Ferla 6). Home fixtures are mostly equipment, illumination, mats, antiques, tabletop items, bedclothes and aids. The sizes of the stores have considerable space and are specifically situated in special zone areas of retail outlets, upmarket avenue shops and in shopping malls. An Example of Home Decorations The Free People brand typically provides unique products aimed at young people but of the female gender. The target group for this brand are individuals aged between 25 and 30. The stores’ products are branded Free People. They also are a mix of women’s casual clothing, add-ons and favors. They are not as large as Urban Outfitters but have sufficient space not just for selling but also social interaction and peer bonding. The stores are actually open to both retail and wholesale clientele. Terrain is a brand that is sharply created to capture men and women of any age who are creative and bold in their selections for open-air living and propagation practice. Expanded and open standing spaces complete with a greenhouse feeling define the terrain stores. Items normally on sale include but are not limited to exotic home and garden stuffs plus antiques, live florae, exercise products and fittings. Terrain stores are the largest and nearly cover a whole 21,000 square feet of environmentally inviting stuffs. In addition, there is an extended two acres of space that is not indoors and is used for the living shrubberies and gear. Other than the movable product line of business, it also diversifies into service delivery. Landscape architecture and scheme resolutions are just but the few examples. An example of Home Equipment BHLDN is a new idea that has a superb vision and style of celebrating females’ most cherished accomplishments like weddings and anniversaries. A traditional kink caps it all. This line includes wedding gowns, jewelry, lingerie and unimaginable decorations. The targets are brides aiming at impressing guests and creating a lasting memory. The marketing strategy employed is completely unique. The company has first defined itself through brands that exclusively appeal to people’s emotions. Their idea is to create products that leave their worldwide customers emotionally friendly and attached to their products. The deliberate polarization of the multitudes is the greatest pillar of survival (csi market company ,. Overtime, they have managed to establish themselves as an embodiment of creativity. They have gone miles in understanding their target customers completely. Their brands are clearly captivating and divergent. In the realization of their fundamental strategy, every brand targets a distinct group of the masses and consequently avails a product very few of them can ignore. To stay afloat, the creative aspects adopted by each brand is made to be sustainable over a long period of time. The stores themselves are made to be a fascinating place to be in. The resultant emotional empathy is a huge win for the company as it creates consistent and catastrophic sales levels (Csi market company 2). Promotions Urban outfitters runs an admirable promotional strategy. They have websites and catalogues for their brands. The catalogue document the products they offer. Each brand boasts of a catalogue and a website that are independently run. These catalogues aid people in building helping to build their brands. In essence, the company uses its own clients to attract others, both physically and via social media. The catalogues and websites go a long way in intensifying their networks of supply, growing trademark consciousness. The websites also accept direct requests from clients. Situating stores next to their target market makes it easy for the brands to promote themselves thereby reducing the resources, both time and money, that could have been used. The distribution of arts and gifts is also an innovative way of promoting their brands. Their logos and trademarks are kept original, mostly altered after a period of six months. Courting controversy seems to have done their brands more good than damage. Many times, controversial products are produced. These are mostly meant to intentionally instigate public outrage. Surprisingly, this move ends up giving them considerable media presence and signals massive following in social sites. In any given time span, a brand is constantly on almost everyone’s lips. This is usually achieved through the production of prints in t-shirts that generally go against a common norm ascribed to the target society. All these result in full-time broadcast in the electronic and print media and a massive word of mouth advantage. By creating offensive products, they tend to chase some people away as they motivate their customers to be even more attached to them. As this happens, traffic flows to their social sites and new sales are registered. They relate well with the public since constant and almost timely apologies are normally made as soon as offensive messages ascribed to their products hit the tabloids. However, the company rarely responds to comments whenever a controversy arises (Hilario 5). Licenses and Contractual Agreements Urban Outfitters have strict guidelines on their licenses. This is intended to protect their business interests and patent agreements. The guidelines are clear even in their official website, making it difficult for their property rights to be violated. They have protected the social media comments of their clients and fans and so people are free to express themselves. Their agreements with other companies are meant to promote their interests. For example, Island Pacific signed a deal with them. These licenses are normally given specific time durations governed by appropriate legislations. The terms can be renewed if the agreements prove beneficial to the two parties. In case any mishap, compensations for the company are normally guided by their specific legal policies. In case a poor product is sold, immediate compensations are given with subsequent gifts in their retail shops. The production of products is determined by customer desires and the suitability of that product in terms of its creativity and fascination. The company does not produce against any set regulations as this modus operandi shifts attention from the organization’s objectives and hurts their prospects for growth. Licensing keeps the company competitive because one of the cornerstones of their management policy is quality delivery. Recognized products are easier to advertise in the media; they are similarly easier to manufacture. Pricing One key feature of the prices is that they are specifically designed for the target markets. Consumers get value for their money as they do not just purchase a commodity; they also purchase the creativity and innovation that embodies the products. They offer diverse products to capture every aspect of apparel needs of the young people. The diverse nature of their products helps to not only ensure that more sales are made but that a client is completely satisfied. From housewares to wedding accessories, it simply means that there is everything for everyone in terms of gender and individual tastes. Complementary products are also offered to hold customers captive and increase sales. . Global outsourcing strategies Outsourcing is a common practice used by Urban Outfitters to develop their business. The design materials are sought from different countries after which they are shipped for manufacturing. Outsourcing is done to reduce production costs and also achieve the specifics of the brands (Trebilcock 7). The Printing of the controversial T-shirts is done in the United States where there is amazing talent. Most products are exported to different destinations to reduce time wastage and also keep the uniformity of products in particular brands. Some services are however offered depending on the sense of style and the prevailing fashion trend of given market. Outsourcing is also employed as an approach to improving business prospects. At some point, they sold limited copies of Polaroid prompt cameras in partnership with the Austrian business mogul Kaps Florian. Florian desired to make pieces of the outdated item. To address potential legal challenges, the company hires prominent legal firms to do its bidding. Production Planning The company manufactures on order as one of its production strategies. This reduces stock piles that in turn reduce store operation costs. Products are also produced and stored to meet high demand during peak seasons. Lean manufacturing and cost engineering systems go a long way in cost reduction. Talented designers also reduce production costs hence increasing the profit margins. A wholesale segment is used to channel bulk purchases that keep supplies at an all-time high. Modular sewing is a technique that guarantees the quality of products and their originality. Quality Control Procedures Urban Outfitters has put in place quality assurance programs that aim at total reduction of defects in their products, deprived workmanship and color variance shortcomings. Quality control auditing is done at their distribution points. Random sampling is done and if any defect is registered then appropriate measures are taken. The company returns the poor products to the manufacturers until the products fully conform to the objectives of the department of quality assurance. When and if the company delivers or sells a substandard item, the item can be returned and replaced. This is done to ensure that loyal customers are maintained and completely satisfied to their desired levels. The items must also meet federal and state safety measures as is enshrined in the relevant legislations. The inspection of packages before shipment by vendors is made paramount to reduce chances of poor items landing in the hands of a customer (Hoovers & Company 21). All merchandise that is received after ordering is inspected to ensure that what was ordered fully correlates with what was delivered. When poor products are received, the vendor pays the shipment costs with immediate effect. All these procedures aim at satisfying clients’ demands. The efficiency of this scrutiny guarantees the effective delivery of products and secures the brand names involved. Conclusion Urban Outfitters has designed an array of policies and strategies that seek to achieve its vision, mission and goals. The marketing strategies are succeeding in penetrating new markets while also containing present customers. By limiting itself to a specific target market and availing products that match this segments desires, the company’s growth moves on a vertical progression. To appeal to the loyalty of their clients, unique products and the emotional attachment associated with the brands achieve just that. The talents that design the products are maintained and a good customer-company relationship works magic. With the quality procedures outlined, success for Urban Outfitters is surely guaranteed. Works Cited csi market company. urban Outfitters Inc. 2014. print. 8 November 2014. Ferla, Ruth La. "Art, and Hanbags, for the people." New York Times 24 July 2014: 19-22. print. —. Art, and Handbags, for the People. 24 July 2014. New York Times. 8 November 2014. Hilario, Francis. "Urban Outfitters offends on purpose ... and the strategy is actually working, say experts." Philladelphia Business Journal (2014). Journal. Hoovers, a D and B company. Urban outfitters inc. 2014. Hoovers.com. 8 November 2014. Trebilcock, Bob. Urban Outfitters tailors its distribution process. 30 March 2011. print 8 November 2014. Read More