Fashion Brand Warehouse
This report focuses on the fashion brand Warehouse including its situation analysis, marketing objectives, sales forecast, positioning, points of difference, and unique selling point.
This section focuses on the history of the brand, its competitors, positioning, SWOT and PEST, pen portrait, 7 P’s and unique selling promotion.
History of the Brand. The first Warehouse store was opened in 1976 in London. The company had a vision of increasing the accessibility of high street fashion. Warehouse was cofounded by Michael Bennet, Maurice Bennet and Jeff Banks. In the 1980s, such top models as Naomi Campbell, Andie McDowell, Stephanie Seymour and Christy Turlington were wearing the Warehouse brand. The Warehouse BYmail catalogue was launched in 1985 (Warehouse para. 1).
Throughout the years, the Warehouse brand has been under Rubicon, Arcadia and Sears groups. Currently, Warehouse has over 300 fashion chains operated by Aurora Fashions, with the Chief Executive being Mike Shearwood. The brand of Warehouse has been evolved in the course of the past 30 years in order to ensure that the company is updated on the dynamic fashion industry. Some elements of the brand have been maintained including the distinctive handwriting as well as a committed in-house fashion design team that focuses on making the right looks for its customers. Warehouse has relied on stylists, fashion press, models and celebrities for branding since its establishment (Warehouse para. 1).
Competitors. Warehouse currently faces competition emanating from high street fashion houses as well as big department stores. Small boutiques are also a source of fierce competition for Warehouse. Some of the brands that compete with Warehouse include Zara, Whistles, Missguided, Miss Selfridge, Monsoon, New Look, Jigsaw, River Island, Dorothy Perkins, Oasis, Boohoo and Motel (Tungate 15). Of these competitors, Zara is the most significant competitor. This can be attributed to the fact that Zara has a global footprint in the high street fashion industry together with an established brand name and image. Zara’s strength lies on its ability to offer high street fashion to all customers in a fast manner in the sense that its designs can be delivered to customers within few days. This unique approach adopted by Zara makes it stand out in the high street fashion segment.
Positioning. Warehouse has positioned itself as a high street fashion brand for women for all occasions including style, work, play and life. It has positioned itself as the fashion brand for the modern woman with an urban lifestyle (Warehouse para. 1).
SWOT and PEST. Warehouse has a number of strengths including being known for its bright fashion as well as colorful prints; an up to date website together with a blog for communicating with customers globally; and a strong market value and brand presence. Warehouse expanded its operations to other countries such as Singapore in order to cater for the needs of international customers. In addition, the brand has established its name in the premium segment and managed to successfully use premium pricing for profitability (Tungate 15). Other strengths of Warehouse include store accessibility, diverse product offerings, established market position and brand image, numerous awards won by brand contributing to its recognition, and online presence. The Weaknesses of Warehouse include limited advertising being done to promote the brand, inability to penetrate international markets when compared against industry leaders and susceptibility of the brand to economic recession and downturns since it is one of the elite brands. Other weaknesses of Warehouse include the uniqueness and exclusivity of fashion styles offered by the store being eroded by availability; and that the company does not offer personalized customer service as is the case with small boutiques (Tungate 16).The opportunities that exist for Warehouse to exploit include the potential for global penetration, increasing its product range, opportunities to market the brand in fashion circuits, targeting young fashion enthusiasts, and opportunities for brand expansion to include men’s clothing. The threats facing Warehouse include other brands offering more fashion styles, and increased competition from small boutiques and other high street fashion brands.
The political factors that can affect Warehouse include governments changing laws that regulate the operations of businesses and different countries having restrictions that must be considered prior to entering a foreign market (Tungate 20). The economic factors in the fashion industry affecting Warehouse include the economic conditions of a foreign market and global recession, all of which have an impact on the spending habits of the consumers. An economic downturn translates to a reduction in buying. In addition, consumers may decide to switch to products offered at lower costs, which is likely to affect the profitability of Warehouse. With respect to social factors, the recent developments in social media pose the need for Warehouse to foster social media relationships in order to meet the demands of its customers. In addition, people are looking for quality and comfortable life following an increase in their disposable income (Tungate 20). Warehouse can exploit this social trend. In terms of technological factors, technological innovations such as e-commerce, computer aided designs and bar coding have played a significant role in enhancing convenience for Warehouse’s customers. Warehouse has also been dependent on technology to enhance its operational effectiveness such as creating an online platform for communicating with customers.
Pen Portrait. She is aged 25-35 years and is aware of the current fashion trend. She prefers the designs displayed on the runway. She wants to look fabulous while at the same time feel comfortable in her clothing. She has a preference for little details and classic designs at a reasonable price. She is ambitious and hardworking and minds her appearance irrespective of the occasion. She usually goes for drinks or dinner dates following a day of work. She exhibits self-confidence. She is urban and lives a fast-paced lifestyle (Tungate 21).
7P’s (Product, Place, Price, Promotion, Physical, Process, People). The product of Warehouse is a women’s clothing garment. With respect to place, Warehouse’s products are distributed in stores found in main streets and malls. They can also be ordered online. The pricing strategy used by Warehouse is premium pricing (Shearman para. 2). In terms of physical packaging, there is no special packaging of the garments sold by Warehouse. The stores have a recognizable “Warehouse” sign. The physical stores are also well lit, clean, have good paintwork, are located conveniently and articulate a vibrant culture (Hendriksz para. 5).The promotional strategies used include website, direct marketing, advertising, social media, using store location as a promotional strategy, celebrities endorsement and working with models and renowned designers. With regard to processes, Warehouse has a blog for communicating with customers and social media presence. Staff usually greets customers upon arrival. In addition, staff is available to offer assistance in case it is needed. The stores also ensure that staff is informed on the current trends. Each store has two operating sides to facilitate speedy transaction (Tungate 23).
The objective of this marketing strategy is to facilitate Warehouse’s entry into Chinese market, enhance product awareness in that market and establish the brand in the industry. In order to achieve this objective, stores will be opened in strategic locations in the various malls in China as well as high streets in the country. The marketing department will be in charge of marketing Warehouse’s presence in China, and developing an effective communication and marketing strategy to ensure that the brand sets a foothold in the market.
Sales Forecast and Financials
It is expected that establishing operations in China will cost about $ 1 billion for setting up initial two stores in prime locations. It is also expected that that sales will increase at an annual rate of 10% during the first three years of operation in the Chinese market.
I have excellent marketing skills that can ensure an effective entry of Warehouse into the Chinese marketplace. My marketing skills can be helpful in marketing Warehouse products in the Chinese market. Specifically, I have reputation in marketing communications and social media marketing. There is no doubt that communication is an important aspect of marketing since it helps in communicating the message to the intended audience. Communication focuses on understanding the needs of the intended audience and developing the best way to communicate such as face-to-face communication, direct marketing, advertising and newsletters among others. I am also competent in social media marketing, which is a helpful tool in targeting specific consumer groups in a cost effective manner. Social media sites enable the marketer to communicate deeply with customers as well as prospective customers and gather feedback. Social media can also be used in brand development. My greatest strengths are communication and interpersonal skills, which are important for markets because of the need to understand the customers and their requirements. In addition, interpersonal skills are important in ensuring teamwork to develop an effective marketing campaign. My most differentiable and valuable skills are information technology (IT) skills, which are crucial particularly in the era of digital marketing. The personality trait that makes people interested in me is creativity. My greatest accomplishment so far has been the successful completion of a market research.
Points of Difference
The product is high quality fashion merchandise for women. The garments are trendy wear developed by designers although affordable. The pricing strategy for the Chinese market is premium pricing. More unique styles will be developed for the market. With respect to place, the products will be distributed through exclusive distribution in stores located at the prime locations. The aim is to make Warehouse a destination store; thus, the store will have a bigger entrance and brighter colors to enhance visibility. Online distribution via the website and social media will also be used. Other distribution channels will include ordering online and delivery within one hour, home delivery after ordering in store, and reserving product online and collecting in store. The promotional strategies will include the use of social media, website, window display, strategic location of stores to act as a marketing strategy, celebrity endorsement, print advertisement, working with renowned designers and models, and direct marketing. In terms of physical evidence, the store environment will have a recognizable and readable sign; it will have good paintwork, will be clean, and will have adequate lighting and space. In addition, the store will have relaxing music and will be characterized by a non-rushing atmosphere. Other elements that will be incorporated in the store environment include brochures, bags and magazine. The store will also be made to appear upscale. In terms of processes, the design of the website will facilitate easy usage. In addition, multiple points of service will be incorporated in the store to facilitate faster transactions. In addition, the staff will be friendly and approachable. As regards to people, Warehouse will look for young sales assistants in order to target a younger audience. In addition, employees will receive a uniform allowance. Moreover, the store will be more customer-oriented.
USP – Unique Selling Proposition
Warehouse’s USP is to design the latest trends with attention placed on design and detail. The latest designs are to be availed in stores within one week. The aim is to deliver the latest high street fashion in a fast manner.