Boden was founded in 1991, with a mission to bring high quality, fashion and value, including ethically sourced clothing to the UK. Starting off as a mail order based company, they now have a strong UK and EU online presence. They initially launched menswear and in 1992 launched womenswear.
With its rapid growth, Borden launched childrenswear in 1996 and babywears in 2007. In 1996 they launched their first UK website and 2002 they expanded their business to America. Currently there are over 800 staff working at Boden and they have expanded the business to Germany and Australia.
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As the Marketing consultant of Boden, the author is responsible to prepare a 3 years marketing plan in the UK market. To prepare the plan, the author will first prepare a summary of an environmental appraisal analysis for the company. A SOWT analysis will be used to discuss the opportunities and threats the company will face externally as well as strengths and weaknesses they have internally. Except for SWOT PESTEL and Porters five forces analysis will also be discussed. The purpose of a PESTLE analysis is to identify all of the various external political, economic, social, technological, legal and environmental factors that might affect a business. After analyzing the environment author then will identify two new male target markets and then develop differentiated marketing mixes for each target market identified.
Environmental Appraisal AnalysisA SWOT analysts is conducted to identify company’s internal strengths and weaknesses, as well as its external opportunities and threats. Strengths and weaknesses are often internal to your organization, while opportunities and threats generally relate to external factors. Opportunities Threats External Elements New market acquisition Unpredictable Global Economy Innovative advertising Intense competition Global expansion Government rules and regulations Brand awareness Ageing customer base Customer engagement Technological advancement Social media marketing Internal Elements Strategy “S – O” Strategies “S – T” Strategies Strengths Reputed brand name Since the company already has a reputed brand name they can plan for acquiring new markets as the reputed brand name will be a distinct advantage.
Also, the company can expand the business globally by promoting through their existing diversify customer base Company can face the market competition confidently of they work on social media marketing as well as by maintaining an excellent engagement model with the existing customer base. Loyal customer base Diversify business International Market Diverse Customer Base Extended Geographical Network Unique products Weaknesses Strategy “W – O” Strategies “W – T” Strategies Not having a proper customer engagement model Lack of social media Marketing Hiring talented people to scale up services Client complaints on the booking process Catering to High Demand PESTAL Analysis POLITICAL · Geopolitical instability · New policies, Tax schemes, rate of tax levied by the government · Terrorist attacks in France, the Brexit vote in the UK, and the volatility of the Chinese stock market have created shocks to the global economy. Meanwhile, consumers have become more demanding, more discerning, and less predictable · Consumer protection and e-commerce · Government involvement in trade unions and agreements · Employment law · Import restrictions on quality and quantity of products · ECONOMICAL · BREXIT will have a direct impact on UK economy. · uncertainty around the UK’s position in the EU could have a negative impact, compared with 50% a year ago · In 2016, Britain and Germany were the fastest growing economies in the G7. But in 2017 Britain has fallen to the bottom of the table as growth in other countries has picked up, while growth in the UK has slowed. · Since the vote to leave the EU, sterling has fallen markedly, at times touching 30-year lows against the dollar. While exporters have long complained of being hindered by a strong pound, it does not necessarily follow they will get an immediate boost from a weaker currency, considering the highly uncertain trading environment. SOCIAL · Average disposable income level.
There has been a small decline in income inequality in the last 10 years, although inequality in FYE 2017 (based on the Living Costs and Food Survey) at 32.2% is broadly unchanged from FYE 2016 (31.6%). · New generations – The younger generation prefers to use digital technology to shop online. Older people will perhaps stick to their traditional methods Population growth rate · Cultural norms TECHNOLOGICAL · Social media – in the current era social media is playing a vital role in business. Specially that can help for advertising, branding and selling · Cloud technology – An example of this is the use of ‘cloud’ technology.
Cloud technology allows companies to access and buy into data storage or software ‘on demand’ through the internet. It enables companies to access a shared infrastructure. This eliminates the need for firms to buy software for every staff member or support a server to store company data and pay for staff to maintain it. This in turn reduces waste in terms of both time and money and can help a business to become more competitive by unlocking capital. This capital can then be invested in other areas ENVIRONMENTAL · Climate · Geographical areas · Pollution · Natural disasters or weather cycles such as monsoons may create too high a risk for operating regions · Weather LEGAL · Litigation changes in different countries – Government of other countries provide their own versions of trade, corporate policies and the company must alter the operation according to the set policies · Labor laws · Consumer rights Porter five forces analysis Porter five forces analysis is a framework that attempts to analyze the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry.
Elements Factors Impact level Bargaining power of suppliers 2.Identify two new MALE target markets appropriate to Boden in the U.K. market Potential markets are the most important part of a business’s future growth. A potential market is a group of consumers that show some level of interest in a market offer.The company might be very happy with the sales and performance they have today, but that does not mean that they have enough potential markets for the future. They can change this by deciding to focus on the potential market of their business.
By focusing on the potential market, they are not increasing their market share for today; they are ensuring their market share will increase for the future. The author has identified two new male target markets for Boden to focus on expanding;1. Men’s Office Wear2.
Men’s Sports wear Men’s Office WearBusiness attire has changed expressively over the years. Many people have forgotten why it is important to wear proper business attire. Some companies prefer to allow and even encourage employees to dress freely or casually for comfort. This tends to work well in more creative work environments (Glenn Ebersole ,2015). However, other companies will naturally encourage a more defined and professional dress code to maintain a professional image of themselves and the business, where employees routinely interact on a daily basis with prospects, clients and business partnersMen’s Sports wear According to a research report published by Global Industry Analysts, Inc., the global market for sports and fitness clothing is projected to reach $231.7 billion by 2024.
Growth in the market is driven by a growing portion of the population living healthier life styles and stronger participation in sports and fitness activities. The research also indicates that technological developments designed to improve comfort and performance has also led to the growth in sales of sports apparel. As a result, sportswear is turning into a highly popular style statement and fashion trend. The report points out that the Europe is expected to be fastest-growing region, with a CAGR of 6.
9 percent over the forecast period. The provider of strategic market research Euromonitor International, has provided data regarding the role that sports and fitness clothing plays in the apparel and footwear industry. According to a research done by Mintel in 2016 ,It seems high levels of consumer interest in health and wellness trends is also driving growth in the athleisure market. Currently, over half (53%) of UK consumers take part in sport at least once a week, with almost one in six (16%) exercising five times a week or more. Younger consumers, in particular, are taking the ‘no pain, no gain’ mantra to heart, with over one quarter (28%) of those aged 16-24 exercising five times a week or more.
As a result, younger consumers are the most likely group to have bought sports products over the past year, with three in four (75%) Brits aged 16-24 purchasing new items. A. Segmenting Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.By arranging their company’s target market into segmented groups, rather than targeting each potential customer individually, marketers can be more efficient with their time, money, and other resources than if they were targeting consumers on an individual level.
Grouping similar consumers together allows marketers to target specific audiences in a cost-effective manner.Market segmentation also reduces the risk of an unsuccessful or ineffective marketing campaign. When marketers divide a market based on key characteristics and personalize their strategies based on that information, there is a much higher chance of success than if they were to create a generic campaign and try to implement it across all segments.Marketers can also us segmentation to prioritize their target audiences. If segmentation shows that some consumers would be more likely to buy a product than others, marketers can better allocate their attention and resources Segment Evaluation DEMOGRAPHIC Officer wears Sportswear Age 25 – 55 19 -35 Gender Male Male Generation Gen Y and X Gen Z and Y Income Level 8000$ -12000$ 4000$-8000$ BEHAVIORAL Officer wears Sportswear Attitude Buyer readiness Benefits Expected Price Discounts, Promotional Packages Price Discounts, Promotional Packages Usage Rate Frequent buyer Frequent buyer GEOGRAPHIC Officer wears Sportswear Country/Region UK UK Language Skills English English PSYCHOGRAPHIC Officer wears Sportswear Category 4 Lifestyle Committed, Responsible, Social status Committed &Challenging Luxury Motivations/Interests Professional growth, Social status Fitness, Challenges Expectations Grand look, Social recognition, professionalism Comfort, look Classy Service Profiling In the modern marketing world understanding audience is crucial for brands.
The Always On consumer demands a level of service and customer profiling is a huge step towards being able to provide that service. Profiling your customers enables you to draw insights on your most valuable customers, least valuable customers and greatest opportunities Segment Profile 1- Office Wears Profile 2- Sports Wears Age 25-55 19-35 Gender Male Male Occupation Income Level Attitude Lifestyle Benefits Expected Freedom Safety Media Usage Tech Savvy Social Media Decision Making Independent Independent Purchasing Power High Moderate Targeting A target market is the market a company wants to sell its products and services to, and it includes a targeted set of customers for whom it directs its marketing efforts. Identifying the target market is an essential step in the development of a marketing plan. A target market can be separated from the market as a whole by geography, buying power, demographics and psychographicsA company invests significant amounts of time and capital to define and monitor its target market. Not all products and services are meant for all types of consumers, and consumers are often cautious with their spending power.
For this reason, target markets are typically segregated by age, location, income and lifestyle. A company defines its target market by the consumers that are likely to have a need for its product. Defining a specific target market allows a company to hone in on specific market factors to reach and connect with customers through sales and marketing efforts.
Testing of the target market often occurs in a phase before the product release. In this phase, a company may use limited product rollouts and focus groups, allowing the product managers to get a feel for which aspects of the product are the strongest. Once a product is released, the company can continue to monitor the demographics of its target market through sales tracking, customer surveys and various other activities that allow the company to understand what its customers demand.
Positioning According to the website Chron ,2018 “Positioning is a marketing concept that outlines what a business should do to market its product or service to its customers. In positioning, the marketing department creates an image for the product based on its intended audience. This is created using promotion, price, place and product.
The more intense a positioning strategy, typically the more effective the marketing strategy is for a company. A good positioning strategy elevates the marketing efforts and helps a buyer move from knowledge of a product or service to its purchase’