Top 10 Key Learnings from Mastering Fashion Marketing

1. Fashion Marketing Requires Specialized Approaches: Unlike FMCG, fashion is design-led, with consumers unable to articulate preferences until seeing products. Traditional research methods fail because trends emerge unpredictably and adoption depends on mass validation. Marketing must embrace this uncertainty while using tools like WGSN for trends and WF for consumer behavior.

2. Customer Understanding Goes Beyond Demographics: Effective segmentation combines demographics, psychographics, behavioral data, and fashion adoption levels. Modern consumers mix luxury and value (Prada/Primark shoppers), making class-based segmentation obsolete. Generational differences (Boomers, Gen-X, Gen-Y, Gen-C) reveal attitudes toward marketing, technology, and consumption more valuable than age alone.

3. Strategic STP Process Is Foundation: Segmentation identifies meaningful consumer groups, targeting selects most attractive segments matching capabilities, positioning creates distinctive perceptions. Examples like Arcadia’s portfolio (Topshop, Dorothy Perkins, Wallis) show how one company can target multiple segments without cannibalization through clear, differentiated brand positioning.

4. Marketing Mix Requires Integration: Product (design, quality, range architecture), Price (positioning tool, not just cost recovery), Promotion (integrated communications across channels), and Place (distribution strategy and service) must align consistently. Disconnection between elements confuses consumers and weakens positioning. Fast fashion success demonstrates coordinating all elements for speed-to-market.

5. Pricing Signals Brand Positioning: Price is powerful communication of value and status, particularly in luxury. Cost-plus pricing ignores demand psychology; value-based pricing aligns with perceived benefits. Markdown management is science in itself—timing, depth, and frequency impact full-price sell-through and brand perception. International price variations demonstrate local market factors override global consistency.

6. Communications Must Adapt to Fragmentation: Media proliferation means consumers access information through diverse channels. Integrated campaigns coordinate advertising, PR, events, digital, visual merchandising for maximum impact. Celebrity associations and awards ceremonies generate massive exposure. Traditional advertising declining effectiveness as consumers become skeptical; influencers and user-generated content gain trust.

7. Multi-Channel Distribution Is Imperative: Consumers expect to research online and buy in-store, purchase online and return in-store, check store inventory online. Pure-play strategies limiting; omnichannel integration essential. Each channel (own stores, concessions, wholesale, e-commerce, franchising) offers different control, investment, and margin implications requiring strategic evaluation.

8. Branding Creates Equity Beyond Product: Strong brands command premium prices, customer loyalty, and extension opportunities. Luxury brands leverage heritage, craftsmanship stories, controlled distribution, and consistent quality. Brand architecture decisions (monolithic vs. portfolio) impact coherence and flexibility. Collaborations (designer × mass retailer) democratize fashion while generating buzz. Brand dilution from overextension or poor licensing destroys equity.

9. Digital Transformation Enables New Approaches: Social media shifted power to consumers who shape brand narratives through content creation. Experiential marketing, guerrilla tactics, and co-creation engage beyond transactions. Sustainability marketing responds to conscious consumers demanding transparency. Collaborative consumption (rental, resale) and tribal marketing recognize changing ownership attitudes and community importance over demographics.

10. Planning Balances Long-Term Strategy with Tactical Agility: Strategic planning (3-5 years) provides direction on markets, positioning, competitive advantage. Tactical planning (seasonal, monthly, even weekly for fast fashion) responds to performance and enables corrections. SWOT analysis informs objectives; implementation requires cross-functional coordination; monitoring through KPIs enables adjustment. Fashion’s lead times versus short seasons create unique tension requiring frameworks balancing continuity with responsiveness.

Introduction

“Mastering Fashion Marketing” by Tim Jackson and David Shaw (2008) provides a comprehensive exploration of marketing within the fashion industry. The book addresses how traditional marketing principles must be adapted for fashion’s unique characteristics: rapid trend changes, seasonal cycles, visual communication importance, and the emotional consumer-brand connection. The authors emphasize that fashion marketing requires specialized approaches because the industry operates differently from other consumer goods sectors, being predominantly design-led rather than consumer-research-driven.

Chapter 1: The Customer and Fashion Consumption

Core Definitions and Concepts

• Customer vs. Consumer: Consumers are end-users who personally use products; customers include both end-users and business buyers. In fashion supply chains, retailers are customers of manufacturers, while shoppers are consumers.
• B2C and B2B Relationships: B2C exists between fashion brands and end-users; B2B occurs throughout supply chains (textile suppliers to manufacturers, PR agencies to brands, etc.).
• Product-Led vs. Marketing-Led Approaches: Fashion is predominantly product/design-led, with brands dictating seasonal offerings rather than researching consumer preferences first—a fundamental difference from FMCG sectors.

Consumer Behavior Frameworks

• Maslow’s Hierarchy in Fashion Context: Fashion primarily addresses social needs (group membership), esteem needs (status), and self-actualization (well-being, spiritual fulfillment). Luxury brands particularly communicate inner-directed simplicity, serenity, and “having arrived.”
• Personality Alignment: Brands design products consistent with target consumers’ psychological traits. Example: Tom Ford distinguished Gucci (rock chick) from YSL (film star) consumer profiles.
• Motivation: The drive to be fashionable each season, where physiological needs become wants through product choice. Shopping itself can become addictive—the journey being more pleasurable than the destination.
• Perception: Consumers screen out most marketing messages. Shock tactics (FCUK’s ambiguous name, Puma’s controversial Bonnie and Clyde sneakers) help cut through competitive noise.
• Learning Process: Drive → Stimuli → Cue → Response → Reinforcement. Example: A child wanting peer acceptance (drive) sees sneakers (stimuli) with a specific brand (cue) that generates positive peer response (reinforcement).
• Self-Concept: Actual self-image (how individuals see themselves), ideal self-image (aspirational), and social self-image (how others perceive them). Fashion purchases support these various identities, though workplace dress codes may require compromises.

Group Influences

• Family and Reference Groups: Family remains significant, though “family” now includes close friends for single-person households. Friends and work colleagues also influence brand awareness and purchase motivation.
• Diffusion of Innovation: Rogers’s model classifies consumers as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%), and laggards (16%). True fashion innovators create styles that become fashionable, not just early purchasers.

Customer Insight Development

• Pen Portraits: Written descriptions including demographics (name stereotypes, age, income, education, job), lifestyle (weekly activities), attitudes/interests/opinions, fashion adoption level, and user occasions.
• Visual Profiling: Photographic galleries supplement written descriptions, revealing brands consumers wear (clothing, accessories, shopping bags, phones) and providing richer insights than text alone.

Generational Categories

• Baby Boomers (1946-1964): Achievement-motivated, image-conscious, experienced significant social change, now among wealthiest segments, redefining milestone ages.
• Gen-X (1965-1980): Multicultural society natives, self and tribe-focused, creative, independent, cynical of marketing.
• Gen-Y (1981-2000): “Prosumers,” marketing-smart, unresponsive to conventional communications, wide brand choice, low political/religious interest.
• Gen-C (Content Generation): User-generated content contributors, social networkers.
• Other Categories: Ladettes (female equivalent of lads), metrosexual males (stylish urban men), tweenies (fashion-conscious pre-teens).

Life Stage Segmentation

A leading UK retailer uses: Carefree → Kids are us → Family ties → Freedom finders → Golden years.

Fashion Consumer Typologies

Based on TGI Europa/BMRB survey (25,000 British adults):

• Big spenders (“I spend a lot on clothes”)
• Label seekers (“Designer labels improve image”)
• Stylish (“I have very good sense of style”)
• Fashion-conscious (“I keep up with latest fashions”)
• Well-dressed (“Important to look well dressed”)
• Shopaholics (“I enjoy shopping for clothes”)
• Practical (“I buy for comfort, not style”)
• Sporty (“I exercise at least weekly”)
• Individualists (“I like to stand out”)

Cultural Phenomena

• Chav Culture: 2000s UK phenomenon where Burberry’s recognizable check became associated with controversial subculture. Former CEO Rose Marie Bravo viewed it as passing trend not affecting long-term strategy. Demonstrated brands’ lack of control over adopters.
• Bling and Price Tag Display: Chavs linked to conspicuously displaying price tags post-purchase, showing both high prices and reductions—demonstrating savvy shopping and affluence.
• Football Hooligan Associations: Organized hooliganism adopted English heritage brands (Aquascutum, Hackett, Stone Island, Burberry), negatively impacting positioning.

Market Democratization

• Value Fashion Credibility: Primark and supermarket fashion (Tesco, Asda “consumer couture”) shifted opinions. No stigma remains for value fashion; inverted snobbery exists among fashionistas.
• Mixed Consumption: “Prada and Primark” describes wealthy consumers mixing expensive and cheap items, finding bargains regardless of means.
• Charity Shops and Vintage: Upswing in vintage/retro fashion reinforced “low price is cool” message despite sustainability rhetoric.

Contemporary Influences

• Digital Divide: Saatchi brothers’ “digital natives vs. digital immigrants” distinction—those fully engaged with technology versus those less comfortable.
• Media Fragmentation: Computer games, specialist websites (sneakerfreaker.com), blogs compete with conventional media for attention.
• UK Consumption Data (2006):
  • Clothing multiples: 33.6% expenditure, 19.8% volume
  • General stores: 17.6% expenditure, 17.8% volume
  • Discounters/supermarkets combined: 17.6% expenditure, 41% volume
  • M&S trends: Declining expenditure share (14.5% to 13.5%, 2004-2006) but increased volume (12.8% to 12.7%), suggesting strategic entry-level pricing

Key Principle

“The customer is king” requires up-to-date customer information and insights. Fashion managers should regularly meet, talk with, and listen to customers. Not all customers are equally valuable—selective relationship management targeting profitable customers is standard practice.

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Chapter 2: Marketing Research and Information for Fashion

Fundamental Distinctions

• Marketing Research vs. Market Research: Marketing research is broad, encompassing all marketing mix aspects and competition. Market research specifically collects data about markets from external sources.
• Secondary vs. Primary Data: Secondary sources are existing data from other purposes (sales data, market reports, subscription services). Primary research collects new information for specific objectives.
• Qualitative vs. Quantitative: Qualitative data are descriptive (narratives, observations); quantitative data are numerical (statistics, measurements). Both are essential for informed decisions.

Why Fashion Research is Necessary

• Strategic Decisions: Long-term product/market plans (new product launches, brand repositioning) require competitor knowledge and customer perception understanding.
• Tactical Decisions: Real-time information (denim trends from WGSN’s Trend Flash, competitor pricing) influences design, styling, and promotional decisions.
• Customer Focus: Understanding who buys, why they buy, perceptions versus competitors, attitudes, beliefs, motivations—beyond what electronic sales data reveal.
• Continuous Monitoring: Product sales (qualitative and quantitative), market trends/opportunities, competitor analysis.

Unique Fashion Research Challenges

• Consumers Don’t Know What They Want: Most fashion consumers are followers requiring mass adoption for fashion to exist. They want contemporary products from credible brands without “standing out,” making advance preference research impractical.
• Trend Volatility: Sudden emergence/disappearance of trends (ponchos in 2005). Fast-fashion fads last 2-4 weeks. Bling subculture’s ostentatious logos suddenly became unfashionable, requiring brands to adapt quickly.
• Seasonal Event Cycles: Trade fairs and fashion weeks establish seasonal themes. Key trends eventually reach mass market. Speed and power vary by segment and consumer group.
• Fashion Press Calendar: Glossies and dailies report trends prior to and throughout seasons (Elle’s February spring/summer runway coverage, Daily Mail’s “top ten summer dresses”). In-season media influences demand, making pre-season certainty difficult.
• User Occasions: National/international events (awards ceremonies, Christmas parties) create predictable fashion needs, while seasonal expectations (party wear, holiday clothes, work attire) follow entrenched social attitudes.

Marketing Research Process Stages

1. Define Research Issues/Problems and Objectives: Establish what information will help resolve specific problems (e.g., entering new market requires market size, competitive structure, consumer attitudes, brand awareness, product range opportunities, optimal channel strategy).
2. Design Research Process: Select appropriate secondary sources (internal data, market reports) and/or primary research methods. Critical: sample selection accurately representing wider market.
3. Locate, Analyse, Evaluate Secondary Sources: Exhaust existing data before commissioning expensive primary research.
4. Refine Objectives and Plan Primary Research: Based on secondary findings, focus remaining knowledge gaps.
5. Collect Primary Data: Execute surveys, interviews, observations.
6. Process Data: Organize qualitative/quantitative responses.
7. Analyse Findings: Interpret patterns, relationships, insights.
8. Draw Conclusions and Make Recommendations: Translate findings into actionable marketing decisions.

Secondary Research Sources

Geo-demographic Systems:

• ACORN (CACI): A Classification Of Residential Neighbourhoods divides UK housing into ~60 types (council estates to wealthy suburbs). Housing type/value indicates wealth and purchasing propensity.
• Mosaic (Experian): Combines electoral roll, housing, financial data (~400 variables) into 61 lifestyle groups across ~50 sub-groups. Profiles area constitution, population, potential lifestyles for product range pricing.

Specialist Fashion Information:

• WGSN (Worth Global Style Network): Online qualitative trend analysis, visual fashion information, news, business journalism. ~150 employees (80 on content: 30 designers, 50 journalists/researchers). London HQ generates creative content; New York and Hong Kong report. Daily updates from global trend scouts, photographers, journalists, designers.

WGSN Categories:

• Catwalks: Runway show reviews from global fashion weeks
• Trade shows: Detailed reviews
• Trends Information: Major product and consumer trends
• City by City: Store window coverage in key locations
• Think Tank: Future macro and product-specific trend predictions
• News: Current global fashion business events
• Youth Market, What’s in Store, Business Resource, Retail Talk, The Magazine, Beauty, Active Market, Graphics

Most popular feature: Runway shows (4 million hits/month). Clients include Giorgio Armani, Daimler-Chrysler, Zara, Gap, Arcadia Group, Selfridges, Lane Crawford, Calvin Klein, Disney, Procter & Gamble, Motorola.

• WF (World Panel Fashion, formerly FashionTrak): TNS division providing quantitative market research. Continuous panel of 15,000 UK individuals aged 7-64, selected by age, social grade, heavy/light usage, TV region (London, Midlands, Tyne Tees, Yorkshire, Lancashire, South, Scotland, East, Wales/West, South West).

WF Data Collection Process:

• Memory boards recording all purchases (menswear, womenswear, childrenswear, accessories, footwear)
• Fortnightly CATI interviews gathering: brand name, price paid (full or discounted), quantity, purchase location, purchase recipient, purpose, fiber content, payment method
• Excludes second-hand items, records only respondent purchases

Example WF Data (12 months ending January 2007):

Women’s clothing/accessories retail share:

• By volume: Clothing multiples 19.8%, General stores 17.8%, Supermarkets 18.3%, Discounters 22.7%
• By value: Clothing multiples 33.6%, General stores 17.6%, Supermarkets 6.0%, Discounters 11.6%

Key retailer shares by age:

• Under 35: Topshop, New Look, River Island, Dorothy Perkins, Next
• 45+: M&S, Tesco, Debenhams, Matalan, Bon Marché
• Other Secondary Sources: Generic market reports (Mintel “Health and Beauty Retailing”), internal EPOS data, store card data, press information for PR effectiveness evaluation, continuous market data.

WGSN vs. WF Comparison:

• WGSN: Qualitative, primarily visual, online delivery, daily updates, global scope, design/trend-focused
• WF: Quantitative, numerical market data, fortnightly updates, UK-focused, sales/behavior-focused
• Both essential: WGSN for strategic trend direction, WF for tactical market intelligence
• Many brands subscribe to both for complementary insights

Internal Retailer Data:

• Merchandise Planning Systems: Track 10,000+ SKUs in real-time via EPOS. Provide customized sales/stock information for fast decision-making, buying profitability control, markdown management.
• Barcode and RFID Technology: Barcodes contain product category, style, color, size, season, price. RFID tags emit radio-frequency messages without batteries/human intervention, tracking customer habits, enabling personalized offers, combating theft (invisible to shoplifters).
• Supplier Access: Larger fashion groups allow suppliers to interrogate sales rates and stock levels via intranets, aligning supply chains with demand and enhancing supplier competitiveness.

Information from Store Staff:

• Sales staff are rich information sources about consumer satisfaction at point-of-sale—a perspective difficult to measure electronically.
• Regular surveying of trained selling staff about customer issues is underutilized but valuable.
• Prearranged management visits often yield false impressions (extra stock/staff arranged beforehand).

Mystery Shopping:

Objective, clandestine research assessing:

• Service levels received vs. expected
• Staff product knowledge
• Competitive service comparisons
• Color/size availability
• Retail standards (cleanliness, neatness)
• Transaction efficiency (queuing speed)
• Staff communication and friendliness

Expensive but invaluable for understanding actual customer experience across chains.

Primary Research Methods

Sampling Approaches:

• Probability Sampling: All population units have known, non-zero selection chance. Includes:
  • Simple Random Sample: Equal selection chance for all listed members; accuracy measured by significance level/confidence level
  • Stratified Random Sample: Population divided into mutually exclusive, collectively exhaustive strata; proportionate or disproportionate random samples drawn from each
  • Systematic Sample: Every nth unit selected (n = population size ÷ required sample size)
  • Cluster Sample: Population divided into clusters; sample of clusters selected, then units drawn from selected clusters
• Non-Probability Sampling: Not based on random chance; statistical sampling error cannot be quantified. More cost-effective (fewer respondents) but not statistically representative. Includes:
  • Quota Sample (Purposive): Required numbers with specified characteristics matching population proportions. Very reliable despite no statistical confidence level.
  • Judgement Sample: Selection based on researcher’s judgement using appropriate criteria (e.g., surveying only “very fashionable people”)
  • Convenience Sample: Units selected because conveniently accessible (e.g., surveying outside fashion college for young people—may over-represent extremely fashionable respondents)
• Sample Design Considerations: Probability sampling is best statistically but costly and time-consuming. Non-probability sampling more practical for day-to-day research. Avoid selection bias, especially with non-probability techniques.
• Low Response Rates: Undermine validity, especially in quota samples. Non-respondents’ views may significantly affect findings. Common response: increase sample size, but this risks more non-sampling errors from larger data volumes. Questionnaire fatigue is major problem; rewards/prizes encourage participation.

Qualitative Data Collection:

• Focus Group Interviews: 6-10 individuals, £4,000-£5,000 per session, up to 10 sessions. Audiovisually recorded for post-analysis revealing overlooked ideas. Facilitator asks questions generating group discussion. Used for issues requiring deeper, considered responses (e.g., understanding brand image perception). Requires thorough planning and skilled moderation—discussion should be directed not led, all participants contribute equally, one individual shouldn’t dominate.

Focus Group Planning:

1. Select sample groups (6-8 respondents)
2. Develop semi-structured questionnaire (open questions, probing prompts)
3. Plan and script session
4. Select visuals/props for prompting and clarification
5. Decide recording methods (flip chart, audio/video, written notes), third-party observation
6. Assign two researchers (one questioning, one recording)

Focus Group Implementation:

1. Start discussion, begin recording
2. Monitor time
3. Involve all members
4. Probe for clarity
5. Prompt according to objectives (e.g., advertising campaign visuals)
6. Check all objectives covered
7. Close discussion

• Depth Interviews: Qualitative one-on-one method for detailed, complex information requiring probing (feelings, attitudes, beliefs). Face-to-face or telephone. Interviewee possesses specialist knowledge (e.g., Vogue interviewing Karl Lagerfeld about collection concepts). Typically unstructured but with clear aims, preprepared questions/themes.
• Ethnography: Focuses on sociology of meaning through close field observation of socio-cultural phenomena. Researcher focuses on community, selects respondents with overview/understanding, uses chain sampling for saturation. Informants interviewed multiple times for clarification/detail. Reveals common cultural understandings. Suited to understanding symbolism/meaning in fashion subcultures and branding.
• Accompanied Shopping: Takes consumers through stores assessing reactions to trial formats, promotions, visual marketing, product presentation, customer flow routes. Useful for planning product area locations (high-value items, try-on importance), logical adjacencies, information points, advertising.
• Competitive Shopping: Observation-based visits to competitor stores gathering information on fashion lines, price points, promotions, in-store/window presentations, customer flows. Critical for fast-fashion brands making tactical decisions on stock deliveries, layouts, sales promotions, markdowns, windows.

Quantitative Data Collection:

• Closed Question Types:
  • Dichotomous: Yes/no answers
  • Multiple-Choice: List of alternatives plus “other—please specify”
  • Likert Scale: 5 or 7 options from “Strongly Disagree” to “Strongly Agree” measuring attitudes/opinions
  • Semantic Differential: Bipolar scale (typically 5 levels) measuring feelings about attributes (Cheap-Expensive, Friendly-Unfriendly, Good Service-Bad Service)
  • Importance Scale: 5-point rating (Extremely Important to Not At All Important)
  • Rating Scale: 1-10 scale (1=poor, 5/6=average, 10=exceptional), like marking students’ work
  • Intention-to-Buy Scale: 5-point likelihood (Definitely Buy to Definitely Not Buy)
• Open Question Types:
  • Completely Unstructured: Allows personal thought-flow, can be hard to analyze but delves into subconscious
  • Word Association: First thing coming to mind; used for brand name decisions
  • Other Types: Story/picture completion, thematic apperception tests (rarely used in fashion)
• Survey Administration Methods:
  • CAPI (Computer-Aided Personal Interviewing): Responses keyed directly into computer, programme checks invalid responses, avoids subsequent editing/keying
  • CATI (Computer-Aided Telephone Interviewing): Interviewer guides respondent through questions, fast and accurate, enables quick changes as patterns emerge, can use speech recognition or live interviewers
  • Continuous Panels: Market research tool for frequently purchased items. Thousands of respondents represent large population. TGI: 25,000 individuals covering nearly all consumer products. WF: 15,000 respondents focusing exclusively on fashion. Longitudinal, detailed data collected frequently, monitor consumption/market/consumer changes over time.

Luxury Consumer Research Challenges

• Identification Difficulty: Not found in high streets/malls, elusive, internationally mobile, homes worldwide.
• Market Size: Global luxury goods market worth $150-$250 billion (varies by report source).
• The Hasley Group’s “Luxury Decoded Panel”: Specialist tracking study sampling luxury consumers buying across multiple segments (travel, automotive, electronics, food/drink). Tracks values, brand perceptions, product ownership, lifestyle activities, media consumption, buying behavior (purchase/rejection reasons). Provides complete brand assessment for full comparison across luxury goods/services sectors.

Research Limitations and Error Sources

• Sample Design Errors: Inappropriate respondent mix, high non-response rates, selection bias.
• Inappropriate Methods/Techniques: Poor questionnaire design, biased interviewing.
• Unclear Objectives: Erroneous or unclear initial research aims.
• Poor Analysis: Wrong deductions from data/information.
• Cost Considerations: Marketing research is expensive; resources must be used wisely. DIY research by untrained staff often wastes money delivering valueless information.
• Professional Standards: MRS maintains member lists and experts. Use trained market researchers for credible results.

Historical Business Failures

UK fashion businesses that ceased trading, had problems, or required rescue: Allders, Army & Navy Stores, Etam, Pilot, Ciro Citterio, Kookai, Mark One, Dolcis. Many likely failed to subscribe to/utilize available research assessing market position and changing customer perceptions. Easy to cut research budgets when doing well, believing in organizational invincibility. Arrogance is particularly dangerous in fashion.

Final Research Principles

• Exhaust Secondary Sources First: Never spend money on primary research until certain information doesn’t already exist (libraries, Internet, internal data, subscription services).
• Link Research to Strategy: Misinterpreting or wrongly using information is costly and dangerous.
• Continuous Review: Keep reviewing research objectives as projects progress and more information emerges.
• No Perfect Solution: But ignoring research is foolish; continuous monitoring (panels, mystery shopping, competitive analysis) is essential.
• Innovative Methods: Supplement conventional approaches with cheaper, creative techniques.

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Chapter 3: Fashion Marketing Segmentation, Targeting and Positioning (STP)

Segmentation Fundamentals

• Market Segmentation Definition: Dividing heterogeneous markets into smaller, homogeneous sub-markets (segments) with similar characteristics, needs, or behaviors, allowing targeted marketing strategies.
• Why Segment?: Markets are too diverse to treat identically. Segmentation enables efficient resource allocation, relevant product development, focused communications, competitive advantage through specialized positioning.
• Fashion-Specific Considerations: Fashion markets are highly fragmented with numerous niche groups (“tribes”). Traditional demographic segmentation (age, gender, income) insufficient; lifestyle, attitudes, and fashion adoption levels equally important.

Main Segmentation Methods in UK Fashion

• Demographic: Age, gender, income, occupation, education, family status. Foundation level but limited predictive power for fashion purchases.
• Geographic: Region, urban/rural, climate, postcode (links to geo-demographic systems like ACORN/Mosaic).
• Psychographic: Lifestyle, personality, values, attitudes, interests, opinions. Critical for fashion given emotional/expressive nature of consumption.
• Behavioral: Purchase occasion, benefits sought, user status, usage rate, loyalty status, readiness stage, attitude toward product. Fashion adoption level (innovator/follower) particularly relevant.

Socio-Economic Classifications

• Traditional NRS Social Grades (National Readership Survey):
  • A: Higher managerial, administrative, professional
  • B: Intermediate managerial, administrative, professional
  • C1: Supervisory, clerical, junior managerial
  • C2: Skilled manual workers
  • D: Semi-skilled and unskilled manual workers
  • E: State pensioners, casual workers, unemployed
• New Socio-Economic Classifications: More nuanced, reflecting modern employment patterns, though still debated for fashion relevance given democratized consumption.
• Declining Social Class Relevance: Mass-market fashion no longer homogenous. Consumers’ tastes driven by niche reference groups and fashion “tribes” rather than class. Value retailers (Primark) and supermarket fashion (Tesco, Asda) shifted credibility perceptions. No stigma for mixing luxury and value brands.

Fashion-Specific Segmentation Influences

• Youth Dressing Styles by Decade (influential UK subcultures):
  • 1950s: Teddy Boys
  • 1960s: Mods, Rockers, Hippies
  • 1970s: Punks, Glam Rockers
  • 1980s: New Romantics, Casuals
  • 1990s: Ravers, Grunge
  • 2000s: Chavs, Emo, Hip-hop

These subcultures demonstrate how fashion segments form around cultural movements, music, and shared identities beyond demographics.

Targeting Process

• Evaluating Segments: Assess each segment’s attractiveness based on:
  • Size and Growth: Revenue potential, expansion prospects
  • Structural Attractiveness: Competition intensity, substitute availability, buyer/supplier power
  • Company Objectives and Resources: Fit with capabilities, strategic goals, resource availability
• Target Selection Strategies:
  • Undifferentiated (Mass Marketing): Single offering for entire market (rare in modern fashion)
  • Differentiated (Segmented): Different offerings for multiple segments (e.g., Arcadia Group’s multiple fascias)
  • Concentrated (Niche): Focus on single segment (e.g., luxury brands, plus-size specialists)
  • Micromarketing: Individual or local customization (bespoke tailoring, personal shopping services)

Arcadia Group Example

Leading UK fashion retailer demonstrates differentiated segmentation strategy:

Arcadia Fascias and Target Segments:

• Topshop: Young women (16-24), fashion-forward, trend-conscious, modest budgets
• Topman: Young men (16-24), style-aware, urban
• Dorothy Perkins: Women (25-45), mainstream fashion, value-conscious
• Burton: Men (20-40), classic styling, middle market
• Miss Selfridge: Young women (18-25), fashion-focused, more sophisticated than Topshop
• Wallis: Older women (35+), classic, quality-conscious
• Evans: Plus-size women (all ages), fashion-forward
• Outfit: Multi-brand concept (Topshop, Topman, Dorothy Perkins, Burton under one roof)

This portfolio strategy allows parent company to capture multiple segments without cannibalization, each fascia having distinct positioning.

Positioning Strategies

• Positioning Definition: Creating distinctive place in target customers’ minds relative to competitors. How consumers perceive brand on key attributes.
• Perceptual Mapping: Visual tool plotting brands on two axes representing important attributes (e.g., price vs. fashion-forwardness, classic vs. trendy). Identifies:
  • Competitive positions
  • Market gaps/opportunities
  • Overcrowded segments
  • Repositioning needs
• Positioning Bases:
  • Product Attributes: Quality, design, innovation (e.g., Dyson for technology)
  • Price/Quality: Value positioning (Primark) vs. premium (Hermès)
  • Use/Application: Occasion-specific (evening wear, sportswear)
  • Product User: Celebrity associations, aspirational lifestyles
  • Product Class: Luxury vs. accessible luxury vs. mass market
  • Competitor: Direct comparison or differentiation from key rival
  • Cultural Symbols: Heritage, nationality (British tailoring, Italian leather)

Positioning Statements

Concise articulations of brand positioning typically include:

1. Target Market: Who the brand serves
2. Frame of Reference: Category/competitive set
3. Point of Difference: Unique benefit/advantage
4. Reason to Believe: Support for claimed difference

Example: “For fashion-forward young women (target) seeking affordable runway trends (frame), Topshop (brand) delivers the latest catwalk looks within weeks (difference) through direct relationships with emerging designers and rapid supply chains (reason).”

Repositioning Challenges

• When Necessary: Changing consumer preferences, new competition, market evolution, brand staleness, expanding/contracting target.
• Risks: Confusing existing customers, losing core equity, failing to attract new targets, “stuck in the middle” with unclear positioning.
• Marks & Spencer Example: Struggled in late 1990s with unclear positioning—too expensive for value seekers, too unstylish for fashion consumers. Multiple repositioning attempts through 2000s aimed to recapture “quality, style, value” perception.

STP Integration

Effective fashion marketing requires:

1. Segment markets based on meaningful differences using multiple criteria
2. Target most attractive segments matching company capabilities
3. Position brand distinctively in targets’ minds through coherent marketing mix
4. Monitor continuously as segments evolve and competitive positions shift

Fashion’s fragmentation and rapid change make STP ongoing process rather than one-time exercise.

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Chapter 4: Marketing Mix – The Fashion Product

Product in Fashion Context

• Fashion Product Definition: More than physical garment—includes design, quality, brand name, styling, fit, fabric, color, trims, packaging, labeling, after-sales service. Augmented product concept critical.
• Product Levels:
  • Core Benefit: Fundamental need satisfied (warmth, modesty, self-expression)
  • Actual Product: Physical item with features, quality, styling, brand
  • Augmented Product: Additional services and benefits (alterations, returns policy, warranty, brand associations)

Fashion Product Hierarchy

• Major Fashion Product Genres:
  • Haute couture: Custom-fitted, one-of-a-kind, extremely high-price, limited clientele
  • Ready-to-wear (Prêt-à-Porter): High-quality, designer collections, runway shows, mass-produced in limited quantities
  • Mass market: Volume production, accessible pricing, trend-following, wide distribution
• Product Categories: Women’s wear, menswear, childrenswear, accessories, footwear. Each subdivides extensively.
• Product Groupings:
  • Outerwear: Coats, jackets
  • Tops: Shirts, blouses, T-shirts, sweaters
  • Bottoms: Trousers, skirts, shorts
  • Dresses
  • Underwear/lingerie
  • Nightwear
  • Hosiery
  • Accessories: Bags, scarves, jewelry, belts, hats
  • Footwear: Shoes, boots, sandals, trainers/sneakers
• Major Garment Types: Further classification by style, occasion, season, function (e.g., men’s shirts subdivide into formal dress shirts, casual shirts, polo shirts, T-shirts, etc.).

Men’s Shirts Example

Category and Subcategory Descriptors:

• Formal: Dress shirts (plain, striped, patterned), tuxedo shirts
• Casual: Button-down, short-sleeve, denim, lumberjack
• Sport: Polo shirts, rugby shirts
• T-shirts: Crew neck, V-neck, long-sleeve, graphic

Each subcategory then varies by: fabric (cotton, silk, synthetic blends), color, fit (slim, regular, loose), collar style, pocket details, sleeve length, price point.

This complexity across all product categories demonstrates why merchandise planning and inventory management are critical fashion functions.

New Product Development (NPD) in Fashion

• Fashion NPD Process:
  1. Trend Research: Analyze runway shows, trade fairs, street style, WGSN, competitors
  2. Range Planning: Determine product mix balancing fashion/core items, price architecture, color palettes
  3. Design Development: Sketches, CAD, technical specifications
  4. Fabric/Trim Sourcing: Selection, testing, ordering
  5. Sample Development: Initial samples, fit sessions, revisions
  6. Range Selection: Editing process choosing final styles
  7. Production: Placing orders, manufacturing, quality control
  8. Distribution: Allocation to stores, replenishment planning
• Timeframes: Traditional cycle 6-12 months ahead. Fast fashion reduced to 2-6 weeks for trend-responsive items while maintaining core collections on longer cycles.
• Design vs. Commercial Balance: Tension between creative vision and commercial viability. Buyers typically have final say on ranges, tempering designers’ most avant-garde ideas.

Product Quality and Sizing

• Quality Dimensions:
  • Design Quality: Aesthetic appeal, on-trend elements
  • Technical Quality: Fabric performance, construction, durability
  • Fit Quality: Accuracy to size standards, flattering silhouettes
  • Value Quality: Quality perception relative to price
• International Clothing Sizes: Significant variation between countries and manufacturers. UK sizes differ from US, European, and Asian systems. Even within countries, sizing inconsistency across brands creates consumer frustration

Size Comparison Examples:

• UK 12 = US 8 = EU 40 = Japan 11
• UK 14 = US 10 = EU 42 = Japan 13
• Footwear Sizing: Also varies internationally (UK 6 = US 8 = EU 39). Half-size increments add complexity. Width fittings (narrow, medium, wide) not universally available.
• Vanity Sizing: Practice of labeling clothes with smaller sizes than actual measurements to flatter customers. Creates sizing inflation over time and inconsistency between brands.

Product Range Architecture

• Width: Number of different product categories/lines offered
• Depth: Number of variants within each category (colors, sizes, styles)
• Consistency: How related products are to each other and brand positioning

Fashion retailers balance breadth (appealing to diverse needs) with depth (adequate choice within categories) while maintaining focused brand identity.

Fashion Product Life Cycle

• Introduction: New style launched, limited awareness, low sales, high promotion costs
• Growth: Increasing adoption, rising sales, improving profitability, competitors entering
• Maturity: Mass adoption, peak sales, intense competition, market saturation
• Decline: Falling sales, reduced profitability, style becomes dated, markdown/clearance
• Fashion-Specific Considerations: Cycles can be extremely short (weeks for fads) or span multiple seasons for classics. Same style can be in different lifecycle stages across market segments (innovators vs. laggards).
• Planned Obsolescence: Fashion inherently designs for limited lifespan. Seasonal newness drives consumption, though sustainability concerns now challenging this model.

Corporate Social Responsibility (CSR) in Fashion

• Main UK Fashion CSR Issues:
  • Labor Practices: Fair wages, working conditions, child labor prevention in supply chains
  • Environmental Impact: Sustainable materials, reduced water/chemical use, textile waste
  • Animal Welfare: Fur, exotic skins, ethical sourcing
  • Supply Chain Transparency: Knowing where/how products made
  • Local Community Impact: Factory workers’ communities, UK manufacturing job losses
  • Product Disposal: Encouraging recycling, take-back schemes
• Consumer Attitudes: Growing awareness and concern, though price often trumps ethics in purchase decisions. “Conscious consumer” segment willing to pay premium for ethical products.
• Brand Responses: Some brands (People Tree, Patagonia) built on ethical foundations. Mainstream brands adding ethical lines or improving practices while balancing commercial realities.

Branding Preview

Though detailed in Chapter 8, product decisions are inseparable from brand strategy. Product design, quality, styling, and positioning express brand identity. Fashion products are primary brand touchpoints, embodying brand values and promises.

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Chapter 5: Marketing Mix – Pricing in Fashion

Price vs. Value

• Price Definition: Monetary amount charged for product/service
• Value Definition: Customer’s perception of benefits received relative to costs paid (monetary and non-monetary)
• Fashion Paradox: High prices can enhance perceived value (prestige, exclusivity) rather than diminish it, particularly in luxury segments

Pricing Objectives

• Survival: Short-term, maintaining cash flow during difficulties (heavy discounting, clearance)
• Profit Maximization: Setting prices to achieve maximum financial return (requires understanding price elasticity)
• Revenue Maximization: Emphasizing volume over margin (value retailers like Primark)
• Market Share: Pricing aggressively to capture/defend market position (H&M, Zara competitive pricing)
• Quality Leadership: High prices signaling superior quality (luxury brands)
• Brand Positioning: Price supporting desired market position (accessible luxury priced between mass and true luxury)

Fashion Pricing Considerations

• Cost Structures: Material costs (fabric, trims), manufacturing, transportation, duties/tariffs, overheads. Fashion’s global supply chains create complex cost calculations.
• Categories of Business Activity and Profit Margins:
  • Luxury brands: 60-70% gross margins (high markups on low volumes)
  • Designer/premium: 50-60% margins
  • Middle market retailers: 40-50% margins
  • Value retailers: 25-35% margins (low markups on high volumes)
  • Discounters: 20-30% margins

These are approximate and vary significantly by business model, product category, and market positioning.

• Cost Price (CP) Uplifts: Fashion retailers typically apply multipliers to landed cost:
  • 2.5-3x CP = mainstream retail price
  • 4-6x CP = designer/premium retail price
  • 8-12x CP = luxury retail price

Example Calculation:

• Dress CP: £20
• Mainstream markup: 2.5x = £50 retail price (50% margin)
• Designer markup: 5x = £100 retail price (80% margin)
• International Price Comparisons: Same products often priced differently across countries due to:
  • Local market conditions and competition
  • Cost variations (rent, labor, taxes)
  • Currency exchange rates
  • Consumer willingness to pay
  • Parallel import/gray market prevention

Example International Price Variations (2006 data):

• Levi’s 501 jeans: UK £50 vs. US $40 (£22) = 127% more expensive in UK
• Designer handbags: Japan typically 20-30% more expensive than US/Europe
• Fast fashion (Zara, H&M): More consistent international pricing due to business model

Price Comparison Over Time (UK Market 2000-2006)

Fashion clothing prices declined in real terms during this period despite:

• Increased cotton/fabric costs
• Rising oil prices (affecting synthetics and transportation)
• Increased shipping costs

Contributing Factors:

• Sourcing shifts to lower-cost countries (China, Bangladesh, Vietnam)
• Improved manufacturing efficiency
• Fast fashion business models (quick turnover, reduced inventory costs)
• Increased competition (supermarket fashion, value retailers)
• Currency advantages (strong pound vs. dollar)

Example Price Reductions:

• Women’s basic T-shirt: 2000 average £8.50 → 2006 average £4.00 (-53%)
• Men’s jeans: 2000 average £35 → 2006 average £25 (-29%)

This deflationary period contrasts with most consumer goods, demonstrating unique fashion market dynamics.

Pricing Strategies

• Penetration Pricing: Setting low initial price to gain market share rapidly (Primark entering new markets, supermarket fashion launches). Risk: difficult to raise prices later without repositioning.
• Skimming Pricing: Setting high initial price, lowering over time. Captures early adopters willing to pay premium, then broadens market (designer collaborations with mass retailers: initially full price, then marked down).
• Competitive Pricing: Setting prices based on competitors’ levels (most middle-market retailers match key competitors on core items).
• Cost-Plus Pricing: Adding standard markup to costs. Simple but ignores demand and competition.
• Value-Based Pricing: Setting price based on perceived value to customer rather than costs. Luxury brands excel at this.
• Psychological Pricing: Using price to influence perception:
  • Charm Pricing: £19.99 instead of £20 (appears significantly cheaper)
  • Prestige Pricing: £500 instead of £499.99 (premium goods avoid cheap-looking prices)
  • Price Lining: Set price points (£25, £35, £50) creating quality tiers

Dynamic Pricing in Fashion

• Seasonal Pricing: Full price early season, progressive markdowns as season ages. Typical cycle:
  • Launch: Full price (8-12 weeks)
  • Mid-season: 10-20% off selected items (4-6 weeks)
  • End-season: 30-50% off (2-3 weeks)
  • Final clearance: 50-70% off (1-2 weeks)
• Event-Based Discounting: Black Friday, Boxing Day, Summer sales. Consumers increasingly wait for sales, affecting full-price sell-through.
• Dynamic Online Pricing: Real-time price adjustments based on demand, inventory levels, competitor pricing. Technology enables sophisticated algorithms though risks alienating customers if perceived as unfair.

Price Architecture

• Entry Price Points: Lowest-priced items attracting customers (basics, accessories). Must be genuinely good value to build trust.
• Core Range Pricing: Main product offer at prices matching brand positioning. Largest sales volume.
• Premium Tier: Higher-priced special items (designer collaborations, limited editions, superior materials). Build aspiration and enhance brand perception.

Example Price Architecture:

• Value Retailer: Entry £3-5, Core £8-15, Premium £20-30
• Middle Market: Entry £12-20, Core £25-50, Premium £60-100
• Premium: Entry £50-80, Core £100-250, Premium £300-800

Consistent architecture reinforces positioning and helps customers navigate ranges.

Markdown Management

• Necessity: Fashion’s seasonal nature makes markdowns inevitable. Unsold inventory loses value rapidly.
• Planned Markdowns: Built into financial planning (typically 15-25% of intake depending on positioning). Result of forecasting uncertainty.
• Tactical Markdowns: Responsive to poor performance, competitive pressure, weather. Higher than planned markdowns indicate buying/merchandising problems.
• Markdown Timing: Too early: lose full-price sales potential. Too late: inventory stuck, severe discounts needed.
• Best Practices: Data-driven decisions using real-time sales information, testing small markdown increments before deeper cuts, coordinating with buying/allocation teams.

Pricing and Brand Equity

Price is powerful brand signal:

• Consistent pricing reinforces positioning
• Excessive discounting damages premium/luxury brands (Burberry overcorrected after accessibility strategy weakened luxury perception)
• “Masstige” (mass prestige) requires careful pricing: premium enough to feel special, accessible enough for target market
• Price increases must align with enhanced product/experience or risk customer defection

Pricing Ethics and Regulations

• UK Regulations: Sales must be genuine reductions from previous selling price maintained for minimum period. “Recommended Retail Price” comparisons prohibited if not genuinely recommended.
• Gray Market: Genuine products sold through unauthorized channels, often at lower prices. Luxury brands fight gray market to protect pricing and distribution control.
• Price Fixing: Illegal for competitors to collude on pricing. Suppliers cannot mandate retail prices (resale price maintenance banned).

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Chapter 6: Marketing Mix – Promotion and Marketing Communications

Communications in Fashion Context

• Promotion Definition: All methods fashion brands use to communicate with target audiences, inform about products/services, persuade purchase, build relationships.
• Fashion-Specific Importance: Visual and aspirational nature of fashion makes communications critical. Products often symbolic rather than functional; communications create desire and meaning.

Promotional Mix Elements

• Advertising: Paid, non-personal communication through media (print, broadcast, outdoor, digital). Control over message but high cost.
• Public Relations (PR): Managing relationships with media, influencers, public to gain favorable coverage. More credible than advertising but less controllable.
• Sales Promotion: Short-term incentives encouraging purchase (discounts, gifts with purchase, loyalty schemes, seasonal sales).
• Personal Selling: Face-to-face interaction between sales staff and customers. Important for luxury/premium brands where service is brand differentiator.
• Direct Marketing: Targeted communications to individuals (email, direct mail, SMS). Increasingly personalized using customer data.
• Digital/Social Media: Websites, social networks, influencer partnerships, content marketing. Most dynamic and fastest-growing area.
• Events: Fashion shows, store openings, pop-ups, sponsorships. Create experiences and media coverage.
• Visual Merchandising: In-store product presentation, window displays. Critical first impression and sales driver.

Communications Objectives (AIDA Model)

• Awareness: Making target audience aware of brand/product existence
• Interest: Generating curiosity and information-seeking
• Desire: Creating preference and intention to purchase
• Action: Motivating actual purchase or other desired behavior (store visit, website click)

Fashion communications often focus on awareness and desire, as consumers frequently shop opportunistically rather than with specific purchase intent.

Advertising in Fashion

• Print Advertising: Fashion magazines remain important despite digital shift. Glossy magazines (Vogue, Elle, Harper’s Bazaar) provide aspirational context. High production costs but targeted reach.
• Broadcast Advertising: TV expensive but mass reach. Fashion brands increasingly use during peak shopping periods (Christmas, seasonal launches). Radio less common for fashion except local retail advertising.
• Outdoor Advertising: Billboards, transit advertising, digital screens. High visibility in urban centers where fashion consumers concentrated. Used for brand awareness and seasonal campaigns.
• Digital Advertising: Display ads, search advertising, social media ads, video advertising. Highly targetable, measurable, interactive. Growing share of fashion advertising budgets.
• Celebrity Endorsements: Celebrities wearing/promoting brands. Examples: Kate Moss for various brands, David Beckham for H&M. Risks: celebrity scandals reflect on brand.
• Fashion Photography: Critical element. Iconic campaigns become part of cultural zeitgeist (Calvin Klein provocative campaigns, Benetton controversial social issues).

Public Relations in Fashion

• Fashion Press: Building relationships with journalists, editors, stylists. Editorial coverage more credible than advertising. “Credits” (product attributions in photo shoots) provide exposure.
• Press Releases: Announcing news (collections, collaborations, store openings, sustainability initiatives). Must be newsworthy to gain coverage.
• Press Days/Showrooms: Inviting press to view collections. Build relationships and secure coverage.
• Influencer Relations: Engaging fashion bloggers, YouTubers, Instagrammers. Can be more effective than traditional press for younger audiences.
• Crisis Management: Handling negative publicity (labor scandals, product failures, executive controversies). Swift, transparent response essential.
• PR Measurement: Advertising Value Equivalent (AVE) attempts to quantify coverage value but controversial. Better metrics: reach, sentiment, engagement, sales correlation.

Awards Ceremonies and Fashion

• Internationally Significant Awards (promoting designer visibility and brand building):
  • Academy Awards (Oscars): Red carpet fashion coverage
  • Golden Globes: Major fashion showcase
  • Met Gala: Fashion industry’s premier event
  • BAFTA Awards: UK equivalent
  • MTV Video Music Awards: Youth-oriented fashion statements
  • Cannes Film Festival: Red carpet prominence

These events generate massive media coverage. Designers loan gowns/suits to celebrities, gaining exposure when worn and credited. “Who are you wearing?” became standard red carpet question.

Celebrity/Brand Associations

Current Celebrity-Brand Associations (examples from book’s 2008 timeframe):

• Kate Moss: Multiple brands (Longchamp, Rimmel, Calvin Klein collaborations)
• Victoria Beckham: Marc Jacobs, Dolce & Gabbana, own fashion line
• Sienna Miller: Pepe Jeans, Burberry
• Madonna: H&M, Gap, various designer associations
• David Beckham: Armani, H&M, Adidas

Benefits: Instant visibility, aspirational appeal, press coverage Risks: Celebrity overexposure diluting impact, scandals damaging brand, high costs

Sales Promotion in Fashion

• Seasonal Sales: Traditional January and July sales now extended. Boxing Day sales major retail event. Black Friday imported from US.
• Mid-Season Promotions: “Friends and Family” events, preview sales for store card holders, VIP shopping evenings. Build loyalty without full public markdowns.
• Multi-Buy Offers: “3 for 2,” “Buy One Get One Half Price.” More common in value fashion and accessories.
• Gift with Purchase: Cosmetics/fragrance tactic adopted by fashion brands (free bag with spend threshold, free alterations, gift wrapping).
• Loyalty Programs: Store cards offering rewards, exclusive access, special offers. Gather customer data while incentivizing repeat purchase.
• Competitions: Win shopping sprees, meet designers, fashion show tickets. Generate engagement and data capture.

Personal Selling and Service

• Luxury Sector: Personal selling essential. Sales associates build relationships with high-value clients, contacting them about new products. Commission structures motivate performance.
• Personal Shopping Services: Complimentary services for premium customers. Personal shoppers select items based on customer preferences, schedule private appointments.
• Styling Advice: Training staff to advise on fit, coordination, occasion appropriateness. Differentiates from self-service mass market.
• After-Sales Service: Alterations, repairs, returns policies. Particularly important for premium/luxury positioning.

Visual Merchandising

• Window Displays: Critical for attracting passersby into store. Seasonal themes, showcase key trends, create theater. Window changers specialize in this craft.
• In-Store Layout: Store design guiding customer flow. Power walls (high-visibility areas), focal points, logical product adjacencies.
• Product Presentation: Mannequins showing complete outfits (inspiring purchases of multiple items), folded vs. hanging, color blocking, lifestyle vignettes.
• Lighting: Highlighting products, creating ambiance. Poor lighting makes colors appear incorrectly, deterring purchases.
• Signage: Category markers, price points, promotional messaging. Must be on-brand and not clutter space.
• Sensory Elements: Music, scent, tactile materials. Abercrombie & Fitch’s signature fragrance pumped into stores and sprayed on products creates distinctive experience.

Digital and Social Media Marketing

(Note: 2008 publication predates many current platforms but principles established)

• Websites: Brand showcase, e-commerce, product information, store locators. Must be visually compelling, mobile-optimized, fast-loading.
• Email Marketing: Newsletters, promotional offers, new arrivals. Segmentation enables personalization. Risk: unsubscribes if too frequent or irrelevant.
• Social Media: Building communities, engaging consumers, user-generated content. Fashion brands early adopters given visual nature.
• Blogs: Brand blogs sharing behind-scenes content, styling tips, trend reports. Third-party fashion blogs provide editorial-style coverage.
• Online Video: Runway shows, behind-scenes footage, styling tutorials, brand films. YouTube democratized video distribution.
• Mobile: SMS promotions, mobile-optimized sites, location-based offers. Growing importance as smartphone adoption increases.

Integrated Marketing Communications (IMC)

• Consistency Across Channels: Same message, visual identity, tone across all touchpoints. Reinforces brand positioning.
• Campaign Coordination: Timing advertising, PR, promotions, events, digital activity for maximum impact. Example: New collection launch combines runway show (PR), magazine advertising, window displays, email to customers, social media teasers.
• Customer Journey Mapping: Understanding different touchpoints and optimizing communications at each stage (awareness → consideration → purchase → advocacy).

Communications Challenges in Fashion

• Media Fragmentation: Consumers accessing information through diverse channels makes reaching them more complex and expensive.
• Clutter: Consumers bombarded with messages. Breaking through requires creativity, relevance, consistency.
• Changing Consumer Behavior: Younger consumers ad-skeptical, blocking ads, trusting peers over brands. Requires shift from push to pull strategies.
• Measurement: ROI difficult to attribute when multiple touchpoints influence purchase. Fashion’s emotional nature makes rational measurement challenging.
• Budget Allocation: Balancing traditional (proven but declining effectiveness) with digital (growing but uncertain). Fashion brands typically allocate 3-8% revenue to marketing communications.

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Chapter 7: Marketing Mix – Place (Channels of Distribution and Service)

Distribution in Fashion Context

• Place (Distribution) Definition: Making products available where and when customers want them. Encompasses channel strategy, retail formats, location decisions, logistics, inventory management, customer service.
• Fashion-Specific Importance: Physical shopping experience central to fashion. Touch, try-on, immediate gratification. However, online growing rapidly for convenience and choice.

UK Retailing Milestones

Key Developments Shaping Modern Fashion Distribution:

• 1950s-60s: Department stores dominant (Selfridges, Harrods, Debenhams). Multiple specialists emerging (Burton, C&A).
• 1970s: Shopping centers/malls developed (Brent Cross 1976). Out-of-town retail parks emerging.
• 1980s: Designer boom. Niche specialists. Arcadia Group formation. Next revolutionized coordinated fashion retail.
• 1990s: Fast fashion emerges (Zara enters UK 1998). Value retailers expand (Primark growth). Online retail beginnings.
• 2000s: Supermarket fashion serious player (George, F&F, Tu). Online accelerates. International brands (H&M, Uniqlo) enter UK.

Distribution Channel Types

• Direct Channels (Brand directly to consumer):
  • Own Retail Stores: Full control over presentation, service, customer experience. Capital-intensive. Examples: Most major brands operate own stores.
  • Concessions: Space within department store operated by brand. Benefits: Department store foot traffic, reduced capital requirements. Department store takes commission (typically 20-35% of sales). Examples: Designer brands in Selfridges, Harrods.
  • E-commerce: Transactional websites selling directly. Low overhead vs. physical stores but requires fulfillment infrastructure, technology investment, digital marketing capability.
  • Mail Order/Catalogs: Traditional direct channel declining but still relevant for some demographics. Next Directory major UK player.
  • Pop-up Stores: Temporary retail spaces. Test markets, create buzz, target seasonal opportunities. Lower commitment than permanent stores.
• Indirect Channels (Intermediaries involved):
  • Wholesale: Brand sells to independent retailers who resell to consumers. Benefits: Wider distribution without capital investment. Challenges: Less control over presentation/service, lower margins. Examples: Designer brands wholesale to boutiques, department stores.
  • Franchising: Franchisee operates store under brand name following prescribed format. Rapid expansion possible with franchise capital. Brand gets royalties but less control than own stores. Examples: Benetton, some international expansions.
  • Licensing: License brand name for product categories/territories. Rapid expansion, minimal investment, royalty income. Risk: Quality control, brand dilution. Examples: Designer brands licensing eyewear, fragrances, homewares.

Channel Strategy Decisions

• Exclusive Distribution: Limited outlets maintaining premium positioning. Luxury brands (Hermès, Chanel) tightly control distribution.
• Selective Distribution: Multiple outlets but carefully chosen to match brand. Designer brands wholesale to selected department stores and boutiques.
• Intensive Distribution: Maximum outlets for maximum reach. Mass-market brands (Levi’s) in many retailers.

Fashion brands often employ multi-channel strategies using combinations simultaneously.

Clothing and Accessories Expenditure – UK Retail Shares

Annual % Retail Shares showing where consumers spend:

• High street multiples remain largest but share eroding
• Department stores stable
• Supermarkets fastest growth in volume
• Online steadily increasing
• Independent boutiques declining

This demonstrates shift toward value retailers and convenience of supermarkets/online, challenging traditional fashion retailers.

Retail Format Categories

Categories of Fashion Retailers and Brands:

• Department Stores: Broad merchandise mix including fashion. Examples: John Lewis, Debenhams, House of Fraser. Benefits: One-stop shopping, variety. Challenges: Declining foot traffic, competition from specialists.
• Fashion Specialists: Focus exclusively/primarily on fashion. Examples: Zara, H&M, Gap, Next. Benefits: Fashion authority, focused assortment, trend responsiveness.
• Value Retailers: Prioritize low prices. Examples: Primark, Matalan. Benefits: Price-sensitive consumers, high volume. Challenges: Low margins require operational excellence.
• Supermarkets: Grocery retailers diversified into fashion. Examples: George (Asda), F&F (Tesco), Tu (Sainsbury’s). Benefits: Existing foot traffic, convenience, family shopping. Challenges: Fashion credibility, perceived quality.
• Online Pure-Plays: Exclusively online. Examples: ASOS, Net-a-Porter. Benefits: Global reach, lower overhead, data-driven personalization. Challenges: Returns, fit issues, lack of physical experience.
• Designer/Luxury Boutiques: Premium positioning, exclusive products. Examples: Independent boutiques, luxury brand flagships. Benefits: Aspirational, personalized service, exclusivity.

Fashion Services vs. Products

Fashion Businesses Delivering Service Rather Than Tangible Product:

• Personal shopping
• Styling consultancy
• Fashion photography
• Fashion PR agencies
• Trend forecasting companies (WGSN)
• Fashion recruitment
• Fashion education

Fashion Businesses Delivering Mixed Product/Service:

• Retailers (product sales plus fitting advice, alterations, returns)
• Bespoke tailors (garments plus design/fitting service)
• Fashion rental services (product access plus convenience service)
• Fashion subscription boxes (products plus curation service)

Service elements increasingly differentiate fashion brands as products commoditize.

Fashion Retailers and Own Labels

Retailer Own Brands (brands created/controlled by retailers):

Examples:

• M&S: Per Una, Autograph, Limited Collection, Blue Harbour
• Debenhams: Designers at Debenhams (collaborations feeling like own brands)
• Tesco: F&F (Cherokee previously licensed)
• ASDA: George
• Sainsbury’s: Tu

Benefits of Own Brands:

• Higher margins (no supplier markup)
• Differentiation (exclusive products)
• Brand equity building
• Control over design, quality, pricing
• Supply chain flexibility

Challenges:

• Development costs and risks
• Quality perceptions
• Requires design and buying expertise

Deleted Retailer Own Brands (discontinued examples showing risks):

• M&S: Autograph (menswear version), Portfolio
• BHS: Various sub-brands consolidated
• Others that failed to gain traction

High failure rate demonstrates difficulty creating successful fashion brands. Retailers often launch, test, and withdraw brands as part of portfolio management.

Innovators of Fashion Brands in UK

Pioneering Retail Brands:

• Next: Coordinated fashion lifestyle concept, high-quality catalogues, store environment
• Oasis: Accessible fashion-forward positioning for young women
• Monsoon: Ethnic-inspired, travel/craft heritage differentiating from competitors
• Jigsaw: Sophisticated, quality-conscious positioning beyond age segments
• Whistles: Contemporary design-led fashion at accessible prices

These brands demonstrated how strong brand positioning and execution could compete with larger retailers.

Logistics and Supply Chain

• Supply Chain Components:
  1. Sourcing: Selecting suppliers (fabric mills, manufacturers) often globally dispersed
  2. Manufacturing: Production occurring in factories worldwide (China, Bangladesh, Turkey, Eastern Europe depending on product type and cost/speed requirements)
  3. Shipping: International freight (ocean for cost, air for speed)
  4. Distribution Centers: Consolidation points receiving products, sorting, allocating to stores
  5. Store Delivery: Final mile to retail outlets
  6. Returns: Reverse logistics handling returned products
• Lead Times: Total time from design/order to product in store:
  • Traditional: 6-12 months (designer collections, complex products)
  • Fast Fashion: 2-6 weeks (trend-responsive items)
  • Replenishment: Days to weeks (basic core items)
• Inventory Management: Balancing adequate stock (avoiding stockouts losing sales) with excess inventory (tying up capital, requiring markdowns). Fashion’s perishability makes this particularly critical.

Location Strategy

• Store Location Factors:
  • Demographics: Population age, income, lifestyle matching target market
  • Footfall: Customer traffic volumes
  • Competition: Presence of competitors and complementary retailers
  • Accessibility: Transport links, parking, pedestrian routes
  • Costs: Rent, rates, fitting-out expenses
  • Site Characteristics: Size, visibility, neighboring stores, anchor tenants
• High Street vs. Shopping Centers vs. Retail Parks: Each offers different advantages (high street: tradition, prestige; shopping centers: weather protection, variety; retail parks: parking, value orientation).
• Flagship Stores: Premium locations (Oxford Street, Regent Street, Westfield) building brand prestige. Higher costs justified by exposure, tourist traffic, brand-building.

Customer Service Excellence

• Service Elements:
  • Staff Knowledge: Product understanding, ability to advise
  • Fitting Rooms: Cleanliness, lighting, space, privacy
  • Till Service: Speed, friendliness, additional information
  • Alterations: Offered by premium retailers, differentiating service
  • Returns Policy: Ease of returns building confidence (though abused by some consumers)
  • Additional Services: Gift wrapping, personal shopping, click-and-collect
• Service Recovery: Handling complaints, problems, disappointments. Effective recovery can strengthen customer relationships more than problem-free transactions.

Multi-Channel Integration

• Challenges: Operating physical stores and online as separate channels creates inconsistencies (pricing, stock availability, returns policies).
• Omnichannel Vision: Seamless experience across all touchpoints. Customer can:
  • Research online, buy in store
  • Buy online, collect in store (BOPIS/click-and-collect)
  • Buy in store, deliver to home
  • Return online purchases in store
  • Check in-store stock online

Requires integrated systems, cultural change, aligned incentives between channels.

Future Distribution Trends

(Emerging in 2008 timeframe):

• Continued online growth, particularly mobile commerce
• Experiential retail (stores as brand showcases rather than pure sales)
• Concierge services for premium customers
• Sustainability in logistics (reducing carbon footprint)
• Rental and resale platforms (emerging circular models)

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Chapter 8: Branding in Fashion and Luxury

Brand Fundamentals

• Brand Definition: Name, term, sign, symbol, design, or combination identifying seller’s goods/services and differentiating from competitors. In fashion, brand encompasses reputation, associations, emotional connections, values, experiences beyond physical product.
• Brand Equity: Value brand adds to product beyond functional benefits. Strong fashion brands command premium prices, customer loyalty, and extension opportunities.
• Brand Identity vs. Brand Image: Identity is what company wants brand to represent (controlled); image is how consumers actually perceive brand (influenced but not fully controlled).

Components of Fashion Brand Identity

• Visual Identity: Logo, color palette, typography, photography style, packaging. Consistency creates recognition. Examples: Chanel’s interlocking Cs, Hermès’ orange, Louis Vuitton’s monogram.
• Brand Personality: Human characteristics attributed to brand. Burberry: British heritage, classic, quality. Diesel: rebellious, provocative, edgy.
• Brand Values: Core beliefs and principles. Stella McCartney: sustainability, no leather/fur. Patagonia: environmental activism.
• Brand Positioning: Distinctive place in consumers’ minds versus competitors (see Chapter 3).
• Brand Story: Narrative about origins, founder, heritage, craftsmanship. Luxury brands particularly leverage stories (Hermès saddle-making heritage, Chanel’s Coco revolution).

Examples of Product Categories and Brands in Luxury Sector

Luxury-Goods Market Product Categories:

• Fashion: Clothing, haute couture, ready-to-wear (Chanel, Dior, Gucci, Prada)
• Leather Goods: Handbags, luggage, small leather goods (Louis Vuitton, Hermès, Bottega Veneta)
• Footwear: Shoes, boots (Jimmy Choo, Christian Louboutin, Manolo Blahnik)
• Accessories: Belts, scarves, ties (Hermès scarves iconic)
• Jewelry: Fine jewelry, costume jewelry (Cartier, Tiffany & Co., Bulgari)
• Watches: Timepieces (Rolex, Patek Philippe, TAG Heuer)
• Fragrances: Perfumes, colognes (often licensed but brand extension)
• Cosmetics: Prestige beauty (Tom Ford Beauty, Chanel Beauty)
• Eyewear: Sunglasses, optical frames (often licensed to specialists like Luxottica)

Luxury Fashion Brands Employing Star Designers

Star Designers (celebrity designers with high personal profiles):

• Tom Ford at Gucci, then YSL (revitalized both brands in 1990s)
• John Galliano at Dior
• Marc Jacobs at Louis Vuitton (plus own label)
• Karl Lagerfeld at Chanel, Fendi
• Alexander McQueen at Givenchy, then own label (McQueen posthumously iconic)

Benefits: PR buzz, fashion credibility, innovation, press coverage

Risks: High salaries, designer ego clashes with business, dependence on individual

Luxury Fashion Brands Employing Successful Designers

Successful Designers (less celebrity but commercially effective):

• Christopher Bailey at Burberry (rejuvenated brand)
• Phoebe Philo at Céline (critical and commercial success)
• Nicolas Ghesquière at Balenciaga
• Alber Elbaz at Lanvin

Difference from “star designers”: Less personal brand fame but strong business results, lower drama, focused on brand building over personal celebrity.

Building Fashion Brands

• Brand Building Process:
  1. Research: Understand target market, competitive landscape, whitespace opportunities
  2. Positioning: Define distinctive market position and target
  3. Identity Development: Create visual identity, personality, values
  4. Product Development: Ensure products deliver on brand promise
  5. Launch: Communicate brand to market
  6. Consistency: Maintain brand identity across touchpoints and over time
  7. Evolution: Adapt to remain relevant without losing core identity
• Brand Architecture: How brands relate within portfolio:
  • Monolithic/Branded House: Single brand (Armani across all categories)
  • Endorsed: Sub-brands endorsed by master brand (Armani Exchange, Emporio Armani, Giorgio Armani)
• Pluralistic/House of Brands: Multiple independent brands (Arcadia Group: Topshop, Dorothy Perkins, Miss Selfridge kept separate)

Luxury Brand Characteristics

• Exclusivity: Limited availability, high prices creating scarcity and desirability. Hermès Birkin bag waiting lists legendary.
• Craftsmanship: Emphasis on handmade, traditional techniques, superior materials, attention to detail.
• Heritage: Long history, founder stories, archive references. Legitimizes luxury status.
• Consistent Quality: Uncompromising standards justifying premium prices.
• Controlled Distribution: Selective or exclusive distribution maintaining mystique.
• Aspirational Marketing: Selling dream, lifestyle, status rather than just products.
• Price Premium: Intentionally high prices signaling exclusivity and quality.

Accessible Luxury/Masstige

• Definition: Premium products at prices accessible to middle-market consumers. Examples: Coach, Kate Spade, Michael Kors, Tory Burch.
• Strategy: Designer/luxury aesthetic and brand building but more accessible price points (handbags £200-£500 vs. £2,000-£10,000 for true luxury).
• Risks: Not exclusive enough for luxury consumers, not affordable enough for mass market—falling between segments. Requires careful positioning management.

Brand Extensions

• Product Category Extensions: Fashion brands extending into new categories. Examples: Armani hotels, Bulgari hotels, Ralph Lauren home, Versace homewares.
• Licensing: Brand name licensed for product categories outside expertise. Common for eyewear, fragrances, homewares. Generates royalty income with minimal investment but risks brand dilution if quality doesn’t match.
• Diffusion Lines: Lower-priced lines making designer fashion accessible. Examples: Emporio Armani (below Giorgio Armani), DKNY (below Donna Karan), Marc by Marc Jacobs (below Marc Jacobs main line).

Benefits: Revenue from broader market, introducing consumers to brand

Risks: Diluting luxury perception, cannib alizing main line sales, confusing positioning

Brand Collaborations

• Designer x Mass Retailer: High-profile designers creating limited collections for mass retailers. Examples: Karl Lagerfeld for H&M (2004, groundbreaking), Stella McCartney for H&M, Jimmy Choo for H&M, numerous subsequent collaborations.

Benefits for Designers: Exposure, reach, experimentation

Benefits for Retailers: Fashion credibility, PR buzz, foot traffic

Benefits for Consumers: Access to designer aesthetics at affordable prices

Execution: Limited quantities creating scarcity, heavy PR, often selling out rapidly

• Brand x Brand: Two brands collaborating. Examples: Louis Vuitton x Supreme (streetwear meeting luxury), Nike x Off-White.

Ethical Fashion Branding – People Tree Case Study

People Tree’s Policies (pioneer sustainable fashion brand):

• Fair Trade certification
• Organic materials
• Traditional craft techniques supporting artisan communities
• Transparent supply chains
• Living wages for workers
• Environmental sustainability throughout production

Positioning: Ethical values central to brand identity, not add-on. Customers buy into values as much as products.

Challenges: Higher costs limiting price competitiveness, niche market, mainstream fashion industry slow to adopt practices.

Impact: Demonstrated ethical fashion commercially viable, influenced larger brands to improve practices, built loyal following valuing ethics.

Brand Management Challenges

• Consistency vs. Evolution: Maintaining brand identity while staying relevant. Too consistent becomes stale; too much change confuses.
• Global vs. Local: Balancing consistent global brand with local market adaptations.
• Counterfeiting: Particularly affects luxury brands. Undermines sales and brand equity. Legal battles, authentication technologies, consumer education employed.
• Brand Dilution: Overextension or inappropriate licensing weakening brand. Pierre Cardin example: licensed name to low-quality products, destroyed luxury status.
• Creator-Manager Partnerships: Balancing creative vision with commercial reality.

Examples of Creator-Manager Partnerships:

• Tom Ford (creator) / Domenico De Sole (manager) at Gucci – spectacularly successful revitalization
• Designer (creator) / CEO (manager) dynamic common in fashion, requires mutual respect and clear roles

Digital Era Brand Building

(Emerging 2008):

• Social media enabling direct brand-consumer dialogue
• User-generated content influencing brand image
• Influencers/bloggers bypassing traditional press
• E-commerce requiring cohesive digital brand expression
• Transparency expectations increasing (consumers can research supply chains, values, practices)

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Chapter 9: New Approaches to Fashion Marketing

Digital Transformation

• Internet Impact: Fundamentally changed how fashion marketed and consumed. Research, inspiration, purchase, sharing all increasingly digital.
• Social Media Emergence: Platforms enabling consumers to create/share content, connect with brands and each other. Fashion brands early adopters given visual nature.
• User-Generated Content (UGC): Consumers creating content (outfit photos, reviews, styling videos) more trusted than brand communications. Fashion brands encouraging UGC (hashtag campaigns, photo contests).

Generation C (Content)

• Definition: Consumers creating and sharing content online regardless of age. Overlaps with Gen-Y but includes older demographics active on social platforms.
• Implications: Brands losing control of narratives. Consumers shape brand perceptions through their content. Negative experiences can go viral quickly.
• Opportunities: Engage Generation C as brand advocates. Feature customer content in marketing. Co-create products/campaigns.

Experiential Marketing

• Beyond Transactions: Creating memorable brand experiences rather than just selling. Fashion particularly suited given aspirational, emotional nature.
• Pop-Up Events: Temporary installations, brand experiences, limited-time stores creating urgency and buzz. Example: Comme des Garçons guerrilla stores in unexpected locations.
• Fashion Shows Open to Public: Traditionally industry-only events opening to consumers (Topshop showing at London Fashion Week with public tickets).
• Installations and Exhibitions: Brand museums, archive exhibitions, art collaborations. Hermès traveling exhibitions showcasing craftmanship.
• Brand Cafés and Restaurants: Armani Caffè, Ralph Lauren restaurants creating lifestyle experiences beyond fashion.

Guerrilla Marketing

• Definition: Unconventional, often low-cost marketing tactics surprising and engaging consumers in unexpected ways.
• Fashion Applications:
  • Flash mobs with models
  • Street art/graffiti campaigns
  • Product placement in surprising locations
  • Viral stunts generating PR
• Benefits: Cut through clutter, generate word-of-mouth, cost-effective, media coverage
• Risks: Can backfire if seen as annoying, inauthentic, or offensive

Sustainability Marketing

• Growing Consumer Concern: Environmental and social impacts of fashion. “Fast fashion” criticism (waste, labor practices, resource consumption).
• Brand Responses:
  • Sustainable materials (organic cotton, recycled fibers)
  • Transparent supply chains
  • Fair labor practices
  • Take-back/recycling programs
  • Capsule collections emphasizing timeless design over trends
• Communication Challenges: Avoiding greenwashing (appearing ethical without substantial change). Consumers increasingly skeptical, demanding proof.
• Pioneers: Patagonia (environmental activism core to brand), People Tree (Fair Trade), Stella McCartney (no leather/fur), Eileen Fisher (timeless design, sustainable materials).

Collaborative Consumption

• Sharing Economy: Access over ownership. Fashion rental services, resale platforms, swapping.
• Examples: Rent the Runway (US), Girl Meets Dress (UK) – rent designer dresses for occasions without purchasing.
• Peer-to-Peer Resale: eBay pioneered, followed by specialist platforms (Vinted, Depop, Vestiaire Collective).
• Implications for Brands: Potential revenue loss from resale, but also market expansion (consumers accessing luxury couldn’t otherwise afford), sustainability benefits aligning with conscious consumers.

Co-Creation and Customization

• Consumer Involvement: Engaging customers in design process. Online tools enabling customization.
• Examples:
  • Nike ID (customize sneakers)
  • Burberry bespoke trench coats (personalize details)
  • Threadless (community votes on T-shirt designs)
• Benefits: Unique products, consumer engagement, data on preferences, premium pricing
• Challenges: Production complexity, inventory management, maintaining brand identity

Influencer Marketing

• Fashion Bloggers: Individuals building followings through personal style, commentary. Examples (emerging 2000s): Susie Bubble, Garance Doré, Scott Schuman (The Sartorialist).
• Brand Partnerships: Gifting products, sponsoring content, affiliate marketing, paid partnerships. More authentic than traditional advertising when done transparently.
• Measurement: Engagement rates, reach, sales attribution. Micro-influencers (smaller followings but higher engagement) can be more effective than mega-influencers.
• Challenges: Disclosure regulations, authenticity concerns, influencer scandals reflecting on brands.

Neuromarketing

• Definition: Applying neuroscience to understand consumer responses to marketing stimuli at subconscious level.
• Techniques: fMRI scanning, eye-tracking, biometric responses (heart rate, skin conductance).
• Fashion Applications: Testing packaging designs, store layouts, advertising effectiveness, optimal price points.
• Insights: Emotional responses often more powerful than rational. Luxury purchases activate pleasure centers similar to addictive substances.
• Ethics: Concerns about manipulation, privacy, using subconscious insights.

Tribal Marketing

• Concept: Consumers organized into “tribes”—communities sharing values, interests, consumption patterns. More relevant than traditional demographics.
• Fashion Tribes: Skaters, hip-hop culture, indie/hipsters, normcore, athleisure enthusiasts, sneakerheads.
• Marketing Approach: Understand tribe values, codes, aesthetics. Authentic engagement rather than superficial targeting. Tribal members influence each other, creating organic growth.
• Examples: Supreme (skateboard culture authenticity), Patagonia (outdoor enthusiasts sharing environmental values), Vans (skate/alternative sports).

Retail as Media

• Concept: Physical stores as marketing channels, not just sales points. Every aspect communicates brand.
• Implementation:
  • Flagships as brand showcases (Apple Store model influencing fashion)
  • In-store events (workshops, styling sessions, product launches)
  • Digital integration (screens, interactive displays, apps enhancing experience)
  • Social media opportunities (Instagram-worthy installations)
• Metrics: Beyond sales per square foot to brand engagement, social media reach, PR value.

Future Marketing Approaches

(Emerging trends identified 2008):

• Mobile marketing growing with smartphone adoption
• Virtual reality (VR) for immersive brand experiences
• Artificial intelligence for personalization
• Blockchain for supply chain transparency
• 3D printing enabling on-demand production
• Biomaterials and circular economy innovation

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Chapter 10: Strategic and Tactical Planning in Fashion Marketing

Planning Framework

• Strategic Planning: Long-term (3-5 years), directional, broad decisions about markets, products, positioning, competitive advantage.
• Tactical Planning: Short-term (seasonal, annual), specific actions implementing strategy, adjustments responding to market conditions.
• Fashion Planning Complexity: Must balance long lead times (manufacturing) with short selling seasons and unpredictable trends. Strategy provides continuity while tactics enable responsiveness.

Strategic Planning Process

1. Situation Analysis

• External Analysis:
  • PESTEL (Political, Economic, Social, Technological, Environmental, Legal factors affecting industry)
  • Market Analysis: Size, growth, trends, segments
  • Competitor Analysis: Strengths, weaknesses, strategies, positioning
  • Consumer Analysis: Needs, behaviors, attitudes, trends
• Internal Analysis:
  • Resources: Financial, human, physical, technological capabilities
  • Competencies: What organization does well
  • Performance: Sales, profitability, market share trends
  • Brand Equity: Strength of brand assets
• SWOT Analysis: Synthesizing internal (Strengths, Weaknesses) and external (Opportunities, Threats) analyses.

2. Objectives Setting

• SMART Criteria: Specific, Measurable, Achievable, Relevant, Time-bound
• Hierarchy:
  • Corporate Objectives: Overall organization (growth, profitability, sustainability)
  • Marketing Objectives: Market share, revenue, customer acquisition/retention
  • Marketing Mix Objectives: Specific to product, price, promotion, place
• Fashion Examples:
  • Increase womenswear market share from 12% to 15% within two years
  • Launch sustainable collection generating 10% of revenue within three years
  • Expand online sales from 15% to 25% of total revenue by end of next fiscal year

3. Strategy Formulation

• Growth Strategies (Ansoff Matrix):
  • Market Penetration: Selling more existing products in existing markets (increase share)
  • Product Development: New products in existing markets (line extensions, new categories)
  • Market Development: Existing products in new markets (geographic expansion, new segments)
  • Diversification: New products in new markets (highest risk)
• Competitive Strategies (Porter):
  • Cost Leadership: Competing on low prices (Primark model)
  • Differentiation: Unique products/brand justifying premium (designer brands)
  • Focus: Serving specific niche exceptionally (plus-size specialist, maternity wear)

4. Marketing Mix Strategy

Detailed decisions for 4Ps (covered Chapters 4-7): Product ranges, pricing structures, promotional plans, distribution channels.

5. Implementation Planning

• Action Plans: Specific tasks, responsibilities, timelines, resources, budgets
• Cross-Functional Coordination: Marketing, buying, design, merchandising, operations, IT, HR aligned
• Critical Paths: Identifying dependent activities, ensuring sequential tasks completed on time

6. Monitoring and Control

• Key Performance Indicators (KPIs):
  • Sales (total, by category, by store/channel)
  • Market share
  • Profit margins
  • Customer acquisition costs
  • Customer lifetime value
  • Brand awareness/perception metrics
  • Inventory turnover
  • Sell-through rates
  • Return rates
• Regular Reviews: Monthly sales reviews, quarterly business reviews, annual strategic reviews
• Corrective Actions: Responding to underperformance (markdown strategies, promotional activities, range adjustments)

Tactical Planning in Fashion

• Seasonal Planning: Each season requires detailed tactical plans:
  • Range architecture (breadth, depth, price points)
  • Buy quantities
  • Delivery phasing
  • Promotional calendar
  • Visual merchandising themes
  • Marketing communications campaigns
• In-Season Management: Responding to actual performance:
  • Replenishment (reordering successful styles)
  • Markdown timing and depth
  • Inter-store transfers (moving stock to better-performing locations)
  • Promotional adjustments
• Agile Planning: Fast fashion requires weekly decisions. Zara famously designs, manufactures, and delivers new styles in 2-3 weeks, requiring tactical agility within strategic framework.

Financial Planning

• Budgeting:
  • Sales budgets (by period, category, location)
  • Cost budgets (product costs, operating expenses, marketing expenditure)
  • Profit targets (gross margin, operating margin, net margin)
  • Cash flow planning (critical given seasonal peaks, inventory investment)
• Open-to-Buy (OTB): Merchandising concept planning purchases. Calculates budget available for buying new stock based on planned sales, existing inventory, planned markdowns. Ensures inventory investment aligned with sales capacity.

Contingency Planning

• Risk Identification: Supplier failures, demand miscalculations, competitive actions, economic downturns, PR crises, logistics disruptions.
• Mitigation Strategies: Supplier diversification, financial reserves, insurance, scenario planning, crisis management protocols.
• Fashion-Specific Risks: Wrong trends, weather impacts (warm winter hurting outwear sales), celebrity scandals affecting brand ambassadors.

Strategic Marketing Initiatives

• Market Entry: Entering new geographic markets requires extensive planning:
  • Market research
  • Channel strategy (own stores, franchise, wholesale, online)
  • Localization decisions (product adaptation, pricing, marketing)
  • Partnership identification
  • Regulatory compliance
  • Investment requirements and payback timelines
• Brand Repositioning: Changing brand perception:
  • Research identifying needed changes
  • New positioning definition
  • Comprehensive communications plan
  • Product range adjustments
  • Potential store refits
  • Staff retraining
  • Timeline often 2-3 years for perception shifts
• Digital Transformation: Evolving from physical-first to omnichannel:
  • E-commerce platform selection/development
  • Digital marketing capabilities
  • Fulfillment infrastructure
  • Systems integration
  • Organizational structure changes
  • Phased implementation over multiple years

Measuring Marketing Effectiveness

• Return on Marketing Investment (ROMI): (Revenue from marketing – Marketing cost) / Marketing cost
• Challenges in Fashion:
  • Multiple touchpoints complicate attribution
  • Long consideration periods
  • Emotional drivers difficult to quantify
  • Brand building effects realized over time
• Balanced Scorecard Approach: Multiple metrics balancing:
  • Financial (sales, profit)
  • Customer (satisfaction, loyalty, acquisition)
  • Internal processes (efficiency, quality)
  • Learning/growth (capabilities, innovation)

Organizational Structure for Marketing

• Centralized: Marketing function at headquarters controlling all activities. Enables consistency, efficiency, expertise concentration. Risk: disconnection from local markets/stores.
• Decentralized: Marketing distributed to regions/channels. Enables local responsiveness, entrepreneurialism. Risk: inconsistency, duplication, loss of economies of scale.
• Matrix: Combination with corporate marketing (strategy, brand, major campaigns) and local marketing (tactical execution, local activation). Complex but balances benefits.
• Fashion-Specific Considerations: Creative tensions between marketing, buying, and design requiring clear processes and senior leadership alignment.

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