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How the company could develop a more market oriented approach to its business and its design process in particular and would be the advantages of this?
Marketing oriented business allow the needs and wants of the customers to drive the business forward. Doing this could also help them gain potential customers in the future, in order o maximize market share. . When being marketing orientated, gaining the company's support to achieve goals is essential. If the company have long term goals, again it is essential the company's support is there, as the company may need changes it traditions.
It is essential that the company has enthusiasm, to find out the customer's needs and wants. In some cases, businesses tend to create item/products, without finding out the customer's needs and sell them. Customers usually are not driven because of the price, they look for what they desire and if it suits their needs.. When customers purchase products, they look for the benefits of the product, value for money and do concentrate on the products itself.
Each and every customer looks for different benefits in a product/service. For instance, some customers may be fussy and might purchase a car that is fitted with parking sensors and won't bother if the car doesn't have them. Some customers are not fussed and will purchase a car without parking sensors. Every customer has its own needs and wants. In some cases, some customers are never satisfied.
Huberry Fashions should execute ideas in order to have a better marketing oriented approach, to its business. For example they should do a wide range or marketing research, in order to gain ideas and what is working well in the market today. They should concentrate on the ideal benefits to customers, so customers will be attracted and may be keen to purchase the product. It seems that Huberry is concentrating on the features of the product. In the market today, must business deliver products, businesses from PC World to Pizza Hut. I feel there is room for Huberry to delivery its products and maybe also showing customers how to use the products, once they have been delivered. Also their products should come with a year warranty, if the product ruins and it is not the customers fault.
Huberry Fashions need to work outside the box and concentrate on developing the customer's needs and wants. They can do this by carrying out research, questionnaires, asking consumers and looking in market business today. This is marketing oriented approach and will improve the business. When gaining the research, the business should use it effectively, as it will help build up the development of the product. By gaining market research, this will be beneficial to the business because when they develop or sell a product, it will meet the customer's needs and there will be a better chance of the product being purchased. Huberry Fashion's are known, this could result the business to improve their products, by selling a wider range and meeting the customer's needs and wants. It is essential that the business concentrates on the benefits of the product to the customers
To summarise, with Huberry Fashions having a market oriented approach, it will benefit them as they will recognise and meet the needs of customers. When meeting the need of customers, they are more likely to be satisfied, return to the business and could gain potential new customers for the business, by informing friends and family. This would benefit the Huberry Fashion reasonably.
How could the company use market segmentation, targeting and positioning more effectively?
The reason businesses use segmentation in the market, is to concentrate on customers who are most likeliest to purchase their products/items. Businesses in the world today, tend to invest a vast amount of money to meet the needs and wants of customers. Not all businesses meet the needs and wants of customers, they look into how they can solve the problem. Separating a market into sectors, is a process of segmentation. In Huberry Fashion's case, they can separate their market into sets, such as lifestyle, social class, demographic and geographic.
The term geographic defines the customer's accordance of the location. It helps with the market segmentation. In some counties and areas, they have similar characteristics on buying products, such as clothes. To analyse particular market you could break a county down by small segments like income, hot much trade the county did. You cant use geographic segmentation on its own.
Demographic segmentation provides the business with more information about the customers. For instance the customers household such as age, sex, race, income, occupation social status and family structure. The reason for this is, different ages have different desires for needs and wants. They tend to change depending on their age. It is essential that the business targets precise products at the right age group. This could be mobile for phones for teenagers and alcohol for adults.
When looking at Huberry Fashion's business, they can use the demographic and geographic segmentation to see what types of customers they are targeting. I think Huberry Fashion is targeting consumers with people with a high income and people who are more professional.
The above diagram shows the average age of the UK propulsion is rising and is forecasted to rise. This is due to the fact the more people are living longer due to better lifestyle and excellent healthcare. Huberry fashion can use this information to change its product lines in the future.
What is the relevance of the product life cycle concept to the company's situation?
The product lifecycle in a sense is like a human. The product cycle is made, they tend to have growth, have maturity and eventually decline. The product life style goes through different stages in the market. Indentifying where products are placed in the life cycle, is recognisable to the businesses profit. When a business is marketing, it plays a part for the products lifestyle. Many businesses use the product life cycle. I think Huberry Fashions can benefit from the product life cycle, this is because using the product life cycle, the business can where their product is, what outcome they have gained from the product and what effect the product will in the future.
The product life cycle, is based on five stages
When a business creates a product, it goes through a development period, all businesses follow this method. Huberry Fashions use the development method and use research, this is because they want to make sure that their product will be successful and it will benefit customers. Businesses tend to invest a large amount in research. When creating and developing research, many sample are created and are examined carefully.
The introduction period is when the product enters the market. Businesses tend to have low sales at the start and will be in negative in cash wise, this is because, money will be invested into the marketing side to sell and promote their product. If the marketing strategies are successful, the product sales will gradually tend to rise. This is because people have acknowledged the product and are purchasing it. The losses will be covered from positive sales, this is called a breakeven point. Businesses tend to promote their product, for instance some business give samples, or let u test their products, so you may be interested. Businesses tend to invest large amounts of money into introduction stage, they want their product to be noticed by people, also people having awareness of the product.
During this process, the business can have a better idea on how well their product is doing and how much profit they have gained from sales. The business will know who its competitors are and how well the profit margins are. If the business is gaining high profit, this will lead way for new customers, who may potentially purchase the product. When the product is at its growth, the profit the business makes is at its peak. If a substitute product comes out, then they price may decrease. This is because people may opt to purchase the substitute product. Businesses will tend to hold on to their share of market and will tend to make the most of it, this is done when the business has brand loyalty and uses other marketing approach.
This part is when the sales growth goes downs and the level of the product decreasing or has even stopped. Businesses will have to reduce their production level and marketing expenses. This also means competition has increased from the market due to the prices being driven down. Businesses tend to give sale offers and advertise. In most cases when maturity has happened, businesses tend to invest and develop/create into a new product.
When looking at Huberry Fashions situation, the business has been successful during its 90 years but during the past couple of years, sales are beginning to decrease. With the market today for clothing, there are many interesting and attractive fashion designs, that attract customers attention and purchase from other brands. Huberry Fashion's clothing look uninteresting and the fashion look old fashioned. I believe Huberry Fashion may have to improve their fashion designs, up to date. Give good promotional offers to customers, who have always stuck by the brand. Also by having a marketing plan, they can advertise their products, this will encourage customers to purchase the product and sales will may rise.
This is when the product has died out and in there are new product in the market, which are advanced and also means the competition is high. This results profits to decrease as sales are low. In Huberry Fashions case, they should concentrate on products that are the heart of the business and are selling well . They should not concentrate and remove products that are not selling well.
When a product is declining, the business may use a strategy, for instance the product Nokia N97 didn't do well on sales and was about to decline. Nokia acknowledge the situation and released a Mini Nokia N97, this boosted sales and is currently doing well in the market.
How can the company protect and build on its brand name and image?
Brands in the market are used to gain a status. People have different desires on what brand they desire, this could be for clothing, cars, food or even the name of a holiday flight company. This categorises an individual and his behaviour. Brands have no physical attributes. For instance Red bull have a slogan that says 'it gives you wings'. For businesses branding can help produce new products, this is based on consumers awareness.
To differentiate our brand name and image from imitation we will concentrate more on design of the product. The cheaper imitation in the market could not compete in this field. For example Apple faced a similar problem, there were lots mp3 in the market to stad out they produced a uniqe desgined which meant they were the market leader.
When businesses have strong image, it works well with customers. I feel that Huberry Fashions could create an image n a brand name. I think Huberry should focus on the quality of the product, having good quality products, encourages customers to purchase it. The price of the product is essential, if the product is expensive, consumers are less likely to purchase it. On the other hand, if the product was cheap, customers are most likely to purchase it. The business will have to focus on how the product will benefit the consumer, they will need to acknowledge how it will benefit customers and make customers feel satisfied. The location is essential, this is because the business will know if we target customers or do they locate us. They might decide to open stores in major cities, nationwide.
In the light of the current economic recession and aggressive competition how should the company respond with regards to its future pricing strategies?
When selling a product, the price of the product is essential and it plays a key factor. this is because it may determine how many sales the business does and if customers are will to pay or purchase the product. There are many price strategy such as price skimming. Businesses will have to take on board and consideration the worth of the product and the most hey would pay for the product. the term '"the price the market will bear' states this. The value is generally recognised by marketing, the package and reputation of the business/product.
Price skimming is when the price is high, this is when the product has just been released and is new in the market. The purpose of price skimming is to, gain customers who are willing to pay more and want the product as soon as possible. The price usually deceases when consumers who wanted the product early, falls. For instance X Box 360, has a high price at the start and now have lowered their price, due to demand. Some business sell their product at a lower price, this is because some high prices do not produce a good response.
Hubbery fashions should use this stragedy becuse set price , gain customers who are willing to pay more and want the product as soon as possible.
Set the price high if we don't get enogh sales we can lower price, but it will be more difficult to raise price that lowering it.
Price penetration for products are set to a low, this is in order to gain market share. Usually when a business has gained market, prices tend to increase. When prices are reduced, based on the image, this is usually when customers think of quality with price, this is a disadvantage. For example Sony's Playstation 3, price was not lowered during the credit crunch/recession. I believe Huberry Fashions should not lower and follow this plan, due to its brand. Lowering the price may result people to think negative and this will be destructive to the brand.
This is when prices are high due to, customer service, location and how exclusive the product is. Some retailers have a great deal of high stock, which may not be obtainable in different locations. Also the price will be higher than competitors but still sell.
This is when the cost of manufacturing and marketing are kept to a low/minimum. I believe there are businesses that have been successful with economy pricing, such as Jet2. They are a airline company, that has a huge amount of customers, they don't concentrate on their brand image and marketing. Huberry Fashions should not this economy pricing on board, because of its brand image. As the business has been here for ninety years, economy pricing will be a negative to Huberry image.
Home bargins is a classic example that lots of stock that they pile hige but to save money they do not hire lots of staff, there service you recis=ve is not the same as you will recive in Marks and spanser or waitroes.
How could market research help the company?
Doing market reaserch helps the business to identyfy trends that may occure. The trend for the past ten years has seen customer shop online rather that instore. Having this informasion could help the business decide if it wasn't to open more stores or expand it internet operasions.
Market research Huberry Fashions could use:
- Product- the business should decide what product to create, this is done when business carry out research in the market. This will help you notify what customers desire and what they are likely to purchase.
- Price - Huberry should do market research, this is because it will help them to make a decision on how much, they should sell their products for. High prices results the business not gaining many sales, as low prices tends to increase sales.
- Place- Huberry Fashion should decide where they should be located. They can have as store or customers could visit and shop on their website.
- Promotion- This is when advertising is used and businesses carry out a great deal of research. For instance, example put adverts on youtube.