The market trends in the UK clothing industry - Coursework Example

Marketing Plan Situation Analysis Clothing in the UK market is dominant by the large retail stores that provide major sales to this industry. There is generally one influencer in the market that owns the market share in the UK clothing industry for example Philip Green own 12 percent of the UK clothing market (Time Out, 2006). Since the dominance in the clothing market is by the major retail stores hence the prices of quality clothing has increased in the UK which has provided an opportunity to bring in to the market the clothing that is of high quality but at affordable prices. This need of affordability of prices and quality clothing has increased the demand of such products in the UK market. Also because the major retail stores tend to cater to the market for personalized service that too is becoming marginalized. Market Trends The market trends in the UK clothe industry show a growing trend. As reported that the market for clothes has increased by 10% between years 2004 and 2008. It is also expected that the market will continue to grow in another three years. By the year 2014 it is estimated that the clothing industry would be worth nearly £8.6 billion experiencing an increase of 29% from the worth of today estimated at being £6.7 billion. The consumers want quality and value products and thus it’s this trend that is contributing to the growth of the industry. During the time of recession the market saw a growth of 10% per annum however it is expected that this sector will experience a 21% of growth in the next three years. Hence the clothing market in the UK will become much more competitive and there is also a price shift expected whereby the value retailers would charge at the premium to increase their margins and to maintain growth (Lowe, 2011). Market Demand According to the Market trends it is evident that the demand for the clothing products would continue to increase in the UK market. The clothing market is the one that can meet the requirements of the people in the key cities like London. Also, designers from other countries are able to provide their designs to the markets in London (Craik, 2007). However despite this easy access of designers to London and accessibility of the consumers to the key areas, the products being offered are high priced, which makes affordability a concern. This is the reason that mostly the clothes are imported from overseas to the countries so as to minimize the cost of productions. Hence these trends provide a strong basis for establishing the new firm, that includes: Increase in high priced products offering lower quality. This is mainly because the brands tend to cash on their names rather than on providing quality to the consumers. In this situation the new firm can compete with these product producers by offering quality products to the consumers at reasonable and affordable prices thus giving them value for money. The clothing market in London is considered to be oversupplied and hence is referred to as “oversupplied clothing market” (Asia, 2008). Hence this provides an opportunity to bring differentiated product in the market so as to make some differentiation with those products that are offering similar kind of products. Target Market The target market of the company includes the consumers belonging to the Middle class and the Lower class that require high quality products at affordable prices. Hence the target market for the clothing product would include those that exhibit the following characteristics: High quality products. The consumers who are geared towards having high quality products despite considering the brand names. Affordable pricing. The consumers who are seeking to find quality products at affordable prices to maximize the value for money (Lowe, 2011). The company would target the parents, teenagers, women, men and people from all strata of society who are likely to see the value of products that the company will be offering. Thus the offerings by the company would include: High quality clothing Affordable Prices The diagram below depicts the changing preferences of the consumers from 1990 – 2010 showing that the consumers preferences are shifting towards affordable products. Competitor Analysis The Currents competition faced by the firm includes: Primark- www.primark.co.uk Primark is a renowned name in UK for selling clothes on a budget. The company supplies clothes that are cheap offering simple designs and fabrics and making them in popular sizes. Products: The products offered includes, Ladies wear brands, Men wear lines, Children wear lines, Accessories lines, other lines: Primark Beauty and Primark home ASOS- www.asos.com In UK ASOS is a leading retailer of online fashion. It offers products under its own label along with other designer goods. Its target market includes people with ages 16-34. Products: Its product offerings include, high fashion clothing for women, men and children, footwear, accessories, jewelry and beauty products. Sainsbury- www.sainsburys.co.uk Products: Its product offerings include, high fashion clothing for women, men and children, footwear, accessories, jewelry and beauty products. Tesco - www.tesco.com Products: Its product offerings include, high fashion clothing for women, men and children, footwear, accessories, jewelry and beauty products. The major strength of these competitors are: Well-known brand names Good distribution points Recognition among people However their weaknesses include: There tends to be difference in prices being charged and the quality offered as these brands tend to charge premiums on the prices Two types of qualities are sold for the same product i.e. high quality products are also sold with different quality and as a different type. The services offered by these retailers are very similar and no customization is provided by them. Marketing Mix Product The new firm will be offering an extensive range of clothing manufactured using different fabrics such as denim, cotton etc. There will be different designs, colors and prints available keeping in view the needs and demands of the customers. The products offered will cater to different age groups and will be available in different sizes ensuring comfort and availability of product for all to enjoy. Product/services features benefits T-shirts Cotton Lower price Pants jeans Good quality underwear Waist band Low price Bed sheet Cotton Low price Price The firm will initially use market penetration pricing strategy since the business is new and there is a lot of competition in the UK clothing markets. This will allow to penetrate the market by providing quality product at low price and also will help in achieving a higher sale volume. Once the company will achieve its objective it will then charge high price for customized products for value addition. Promotion The promotion of the product will include both types of Advertising, above the line and below the line. Above the Line: in this the promotion would be done on the Internet, on different social websites like Facebook, in the Magazines as well as in the News papers advertising on weekends. Below the Line: in this flyers will be distributed and be kept at grocery stores, book shops etc. and also we will offer discounts and coupons. SWOT Analysis The strengths, weaknesses, of the firm and the opportunities and threats in the clothing market are as: Strengths The firm partners have extensive knowledge of import and clothing business The firm has a good network of suppliers from Pakistan The product offered are trendy and available at affordable prices There is low delivery time of products to retail store Less middlemen involved thus keeping prices affordable Product customization services for the consumers Discounts on bundle buying Weaknesses The firm is new is business hence there is no awareness about the brand Large volume buying does not guarantee that the entire stock will be sold Cater to a wide range of customers The marketing expenses will be huge initially as extensive advertising would be required to establish the brand name Opportunities High quality clothes are expensive and the premium brands charge higher prices because of their names. The customer preferences are shifting towards affordable products with high quality The clothing sector is expected to grow massively in the UK Threats The economic recession has impacted the spending decisions of the consumers Competitors enjoy recognition in the clothing market Product Life Cycle The retail market in the UK is in its maturity stage whereby the growth is towards a slow trend. The competition is increasing as the retailers have to compete aggressively due to declining sales. However there has been a growth seen in the online retail industry whereby the growth in online retail increased by 130% between year 2004 and 2007 compared to the total retail that saw a growth of 4.6% only. Overall the product life in the fashion retail industry is very short since the trends, preferences and tastes changes are quite frequent (Anon., 2009). Given this the product life cycle observed by the firm would include: In the Introduction phase extensive marketing would make the brand known to the consumers. Using social networking websites to make product offerings known to the consumers. The next stage would be of rapid growth whereby the firm would ensure the adequacy of stocks availability to its customers. Once in the growth stage the company will promote its products by advertising in newspapers and magazine. When the company reaches the maturity stage it will start to remind people about its product offerings using different mediums. At the saturation point the prices would be lowered or sale would be announced to clear the stock remaining and make space for new products. At the Decline stage, new products will be launched keeping up with the fashion trends. Point of difference The points of difference that would make the company stand out from the competition would include: Customized services for the consumers High quality products at affordable prices Good after sale service and service delivery References Anon., 2009. The product life cycle, s.l.: The Times Newspaper Limited and ©MBA Publishing Ltd. Asia, A., 2008. Marks & Spencer cautious on outlook as profit hits symbolic 1 bln pounds. [Online] Available at: http://factiva.com Craik, L., 2007. French Invasion, s.l.: The Evening Standard. Lowe, R., 2011. Current trends and future opportunities for the UK Clothing Industry, London: Verdict Consulting. Lowe, R., 2011. Current trends and future opportunities for the UK Clothing Industry. [Online] Available at: http://www.barclayscorporate.com/inperspective/business-strategy-and-insights/retailindustryreport/ Spencer, J. & Schechner, S., 2006. Fashion: The custom craze. The Wall Street Journal, 22 December. Time Out, 2006. Movers and shakers 2006. [Online] Available at: http://factiva.com Read More