TopShop - The Marketing Story - Essay Example

?TopShop – The Marketing Story Fashion s are ever demanding for something new, original and creative for a marketer it is very tough and demanding to provide for. TopShop a leading UK chain of fashion clothing and accessories which caters for this need for the highly fashion conscious market. This store has risen to cult status and is one leading brand name in high street fashion. What makes TopShop click? TopShop implements aggressive marketing strategies. It is constantly there in the minds of people. The positioning is extremely strong. Marketing strategies have to be designed and modified according to the market conditions. This is required for the success of the strategies. We are going to analyse the designing and implementation of various marketing strategies as per the changing external environment. Let us look into history of TopShop. TopShop was launched in 1964. It is a branch of Arcadia group. It started with a concept of high end fashion. Today TopShop doesn’t attract only high end shoppers. It is a fashion destination for ramp and catwalk fashion seekers as well. It is an excellent example of high end meets catwalk. The flagship store is located at oxford circus with a whopping 90,000 square feet area where the daily footfall is 200 000 and more customers and almost more than half of them shop something or the other in the other. Marketing Strategies implemented by TopShop: 1. Logic of high end meets catwalk: Catwalk fashion is inaccessible, not wearable and expensive for a common fashion seeker. Combining the cost and the cuts makes TopShop click. This enables to provide for maximum fresh looks in a given season for the shop and increases sales. 2. Cost: TopShop costs are perfectly balanced, not being cheap and not being expensive either. 3. All in one shopping experience: TopShop provides accessories, bags, shoes, etc. under one roof. For men’s shopping it provides game zones, relaxing zones etc. So shopping is not perceived as a cumbersome and compulsory activity as usually perceived by men. 4. Supply matching with the demand: Fashion marketer needs to cater the market at a top speed. TopShop keeps pace with the demand by aggressive supply to the shops and chain it has set up. 5. Personalised services: TopShop has set up personalised advisors for guiding fashion seekers. Topshop takes pride in the fact that these style advisors are like walking catalogues on the shop and are available for help. 6. Celebrity branding: TopShop has always roped in celebrities like Kate Moss, Beyonce, Victoria Beckham for its promotion adding to the glamour quotient of the shop 7. Supporting new designers: TopShop supports upcoming designers to showcase their work. This gives the shop an advantage of setting new trends in the market with fresh cheerful designs PEST Analysis for TopShop This analysis is used for analysing external factors affecting an organization. All the marketing strategies mentioned above have helped TopShop set up in the domestic environment. As confirmed by SWOT analysis and life cycle curve, TopShop now needs to look beyond the national boundaries. TopShop with its aggressive expansion plan has already stated that it intends to move abroad for an excellent growth opportunity. Let us analyse TopShop’s current marketing strategies with respect to the external environment of emerging economies where TopShop is set to expand: 1. Political factors: Description: For business to survive, sustain and grow a stable political environment is required. The degree on intervention a government will have in businesses and economy also makes a difference for the business. Political decisions make or mar the businesses. What is also needed to be seen is the development of infrastructure and education of the workforce, both directly connected with the political factor in PESTEL affecting businesses. UK: Political environment is stable. TopShop has seen various governments coming from the headquarters of Conservative or Labour Party. However the government has managed to provide excellent infrastructure to the industry. UK from the very beginning has always been congenial to industry and growth of economy through industry. India: In an emerging economy like India change in government brings change in economic policies as well. Economic policies may change as per the party philosophy but the basic objective of development of national economy does not get affected. However in the present situation majority of the parties are not favouring foreign investment in retail industry and hence the government has put the decision on hold. This will get the development plan for TopShop on a back-foot. 2. Economic Factors: Description: This takes into account various trends in the economy. Disposable income, inflation, cost of labour and consumer confidence index in an economy affect the business in myriad ways. These factors mainly affect the profitability and sustainability of the business in any given scenario. UK: UK economy currently has problems with the possible effect of European economy on the downside. We can notice that over a period of time governments in UK have provided for a stable environment for the industry and businesses to grow. Although taxation puts a restriction on the disposable income of an individual, he will still continue to spend on fashion items as the basic cost of living is low due to stable economic environment. Consumer confidence index on the shop is high and that is proven in the constant foot fall of 200000. The cost of labour is however high. India: The best advantage of an emerging economy is the spending of surplus income by the upcoming middle class and in a country like India labour costs really come cheap. Although the inflation rate is high at the moment with the boom in services sector the country expects to ride through the tide. The current wave of recession has affected Indian economy as well but businesses can still manage to gain due to economies of scale and sheer size of the market. TopShop will have to counter small shops in India who have successfully catered to the needs of fashion of the population successfully. 3. Social Factors: Description: This factor contains components such as demographics, lifestyle changes, population shifts, education, trends, and diversity in population, living standards, attitude towards work and leisure and earning capacity in a society. UK: Stable economy and government also gives rise to stable social culture. The population base in UK is mostly homogenous. The trends can be predicted and forecasts in case of social factor do not vary much. The living standards are high and spending of disposable incomes is also on a higher level. The value and quality of the product and service are weighed against the price paid. Also the population is aware of its rights and duties and functions accordingly. This also binds the businesses to provide what is best for and not take its customers for granted. India: This factor will affect the marketing strategies of TopShop the most in Indian economy. The population is extremely diverse and the cultural values play an enormous role on the buying decision of an individual. The spending pattern starts from family and ends at individual level which is exactly reverse compared to developed economies. This restricts his or her purchasing choices. The average consumer already knows the mix and match fashion strategy which is cultivated by TopShop in UK. This strategy is required to be modified in this market. Opening small shops across the country is a desirable strategy rather than opening of big shops as mega stores impersonal staff tends to frighten the Indian consumer away. The factor that will however affect the most is the culture of the society. The traditional clothing and styles are preferred. The garments presented in Indian chain need to be traditional yet chic. The climatic conditions change from region to region. TopShop will have to take the climate changes into account while picking material and styles for the garments. This poses a severe constraint against the aggressive supply management the chain so relies on. To maintain a high end fashion marketer image the strategy hence needs to be changed. Unlike UK where the average consumer is aware of the fashion trends happening on the ramp, Indian consumer is detached from the catwalk fashion. Fashion at work and fashion at ramp are distinctly different. If TopShop has to bridge the gap then it is a huge task in India. Not many of Indian consumers are even aware of the brands created by Indian fashion designers and hence creating awareness becomes first step in marketing in India. Celebrity endorsements work wonders in price sensitive market such as India. 4. Technological factors: Description: These mean inventions, communications, internet usage, information technology, technological advances in marketing and manufacturing UK: Internet has revolutionised the way we communicate today. The easy availability of communication media and channels at a low cost will always boost communication in an economy like UK India: Information technology has vastly revolutionised the economy of India since its implementation of globalisation policy since 1991. Development and advancement in IT has boosted the growth of middle class sector. The technological advancement and knowledge have opened the gates for economic development. India is also an advanced communication market with mobile telephony becoming cheap and available. With the opening of multiple domestic airlines the transportation for people and cargo both have become easy. This can help the marketing strategy of TopShop immensely. The infrastructure is picking up which will also provide better connectivity with the internal markets. TopShop has strategies which are immensely successful in UK market. For western markets businesses take certain factors such as infrastructure, technological advancements etc. for granted. But for developing economies, as the comparison shows these factors pose a challenge for a business house. Hence it is essential for a giant like TopShop to take into account these factors and changes its marketing strategies accordingly to become successful Outcomes: 1. Indian Retail industry is an upcoming market. People are eager to buy and spend money. The marketing strategy needs to be modified for this particular segment. 2. Cultural factors need to be taken into account as they play a major role in decision making process of an Indian buyer. The outfits need hence need to be traditional yet chic. 3. TopShop’s social angle can be presented very well in Indian market. They can encompass the Indian local industry and align with them. This will take care of the apprehension of local industry being shut down with foreign investors and brands coming in the country. 4. There are a lot of talented designers in India who need a platform. TopShop can implement the talent hunt and launch program in India on a wide scale. This will also give a new friendly face to the company. 5. Local hand embroidery industry can receive a boost through TopShop and can be revived. 6. Most importantly human touch is the unique selling point of Indian markets. Hence TopShop needs to keep this perspective in mind while penetrating in the market. Conclusion: Every industry faces pressures from external environment. Marketing although an essential function constantly needs to be modified and aligned with the pressures of the external environment. When marketing strategies are designed for an international market or market other than home market, they need to be adapted as per the political, social and cultural factors of that particular country. Only then the organisation can hope to be successful and profitable in the market. References: 1. Marketing Management: Philip Kotler and Keller 13th edition 2. http://www.topshop.com 3. http://www.fashionising.com 4. http://www.prnewswire.co.uk 5. http://www.thegeminigeek.com 6. Global marketing: A decision-oriented approach : Svend Hollensen 7. International Marketing Strategies For Global Competitiveness: http://ivythesis.typepad.com 8. Topshop Enters the Internet Marketing Fray: http://blog.onlinemediadirect.co.uk 9. Why Kate Moss’s Topshop Line Got The Ax: http://jezebel.com 10. http://www.businessoffashion.com 11. PESTEL analysis of the macro-environment: http://www.oup.com 12. http://marketingteacher.com 13. http://marketing.wharton.upenn.edu 14. Indian Retail Industry - http://www.studentsmart.in 15. India Political and Economic Outlook 2010-2014 : http://ecoggins.hubpages.com 16. Current Indian Political Scenario—Problems That Take Priority: http://www.worldpress.org 17. The Economic factors affecting business environment – A Pushparaj http://www.publishyourarticles.org 18. Cultural and social factors that affect development http://makewealthhistory.org 19. India's embroidery market growing at 20% per annum: http://www.expresstextile.com 20. Facts and Figures in the UK fashion industry : http://www.fashionunited.co.uk 21. Background Note: United Kingdom: http://www.state.gov 22. http://www.conservatives.com: Business and economy 23. http://www.labour.org.uk/ 24. Eurozone crisis: http://www.guardian.co.uk 25. 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