Amity Wishlow FDA FDM
The sweatyBetty Brand 1.0 Introduction sweatyBetty is a brand that holds strong beliefs in making a difference, not only on their customers but also on the environment. For this reason, it seems suitable for the brand to expand into the world of organic clothing and launch an all-natural active wear range. This report will allow you to gain an insight into the sweatyBetty brand covering its history, products, customers as well as a thorough background on the company as a whole, and also objectives and reasons for the launch of an organic collection for the Spring/Summer 2011 season.
1. 1 Brand History and Identity In 1998, Tamara Hill-Norton made the decision to open the first sweatyBetty store in Notting Hill due to a lack of women’s sports wear shops selling feminine and trendy active wear. Since that point, the company has snowballed not only into a successful active wear brand but also into an inspirational lifestyle and now have 24 boutiques across the UK, hold concession stands in Selfridges and Harrods department stores and have a highly established mail order catalogue and online shopping site. The sweatyBetty style is feminine and flirty but also luxurious and empowering. The brand focuses on offering performance items for a variety of sports while remaining colourful, sexy and fun. They promote an active and healthy lifestyle for women by offering free online health blogs, free in store classes and healthy living campaigns for their customers. The brand also have strong beliefs in running a sustainable company promoting recycling throughout, abandoning the use of photocopiers in store and in office and enforcing the use of paper as opposed to plastic where possible. They also have select garments made in 100% organic bamboo jersey, giving customers the option to own sustainable clothing.
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Amity Wishlow FDA FDM
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Figure 1 – sweatyBetty S/S 2010 collection
1.2 Rationale Expanding on the already available organic cotton items, sweatyBetty will be launching a 100% organic jersey collection aptly named Active Earth. This collection will be available in stores and concessions and will be aimed at the already established sweatyBetty customer. It will be for women who believe in living active and healthy lifestyles, which is the core value of the brand, and who also believe in keeping a sense of style and femininity during sports. Taking inspiration from nature, Active Earth is a collection that focuses on naturally occurring shapes, colours and textures to create an active wear range that represents the beauty of nature as well as the beauty of the person wearing the garment. Each design was created taking specific characteristics from the environment and expressing them through fabric manipulations and choice of colour. This range will focus on the use of organic jerseys and organic dyes, using the latest advancements in technology to make sure each garment not only delivers on performance but also in comfort. Having an all organic, nature inspired collection will allow sweatyBetty to prove themselves as a green company, proving that they not only believe in the well being of their customers but also the well being of the earth. A fashionable, feminine and fun organic range is what the company needs to drive in a new consumer base, one which is conscious of the environment, takes pride in making a difference and enjoys taking care of herself. When conducting an in store survey, ten customers were asked a series of six questions in relation to their interest in global issues and the launch of a new organic range for sweatyBetty. The results were a 100% positive outcome, with all ten people showing interest in the possible launch of a new collection. (see Figure 2)
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Amity Wishlow FDA FDM
Figure 2 – Results for in store questionnaire
1.3 Micro & Macro Environment Micro Environment Suppliers: The growing popularity of the brand means they need to establish a secure supplier who can meet their growing demands. Also, still being a small company they need to make sure suppliers won’t raise prices on products as they grow. Distributors: The company have an advantage of selling their products independently from boutiques, by mail order catalogues and online and also have also secured concessions in Selfridges and Harrods. Customers: The company take an active part in email, newsletter and in store promotions for loyal customers which ensures their continual return. Competition: They are one of the most successful independent active wear boutiques for women and have 24 store across the UK, creating a high market share within their category. Macro Environment Economic: As the UK begins to come out of the recession, a rise in interest rates and inflation as well as a fall in unemployment rates could mean a slight increase in disposable income, resulting in a possible increase in sales. Political: A shift in greener government policies may affect any overseas shipments or manufacturing laws, causing the company to reassess any issues that arise.
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Amity Wishlow FDA FDM
Technological: The company have a well established and successful online shopping site and the ever increasing popularity of online transactions could force the company to adapt new technology to meet this demand (see Figure 3).
Figure 3 - ‘Mail order’* retailers sales, excl. VAT, at current prices, 2004-08
Legal: The possible entry of a new political party could change internal requirements or laws for running such an independent company. Socio-Cultural: The attitudes of people towards obesity and health are ever shifting and can cause an increase in sales and demand. Demographic: As demographics shift and change, there may be an increase in demand for more shops. Environmental: Global warming and environmental issues can create a demand for natural products or changes in manufacturing techniques so the company therefore becomes more eco-conscious.
1.4 SWOT Analysis Strengths - strong brand, well recognized - popular and thorough online shop - well established - good distribution within the UK - strong consumer relationship - high quality product Weaknesses - specialized product, does not appeal to everyone - products for women only - depend strongly on loyal customers - very little new marketing strategies - store promotions are not very well known Opportunities - international distribution - men and children’s line - large area for new marketing strategies and promotions - advancements for online site - organic or eco-friendly clothing line (or further development of existing products)
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Amity Wishlow FDA FDM
Threats - entry of new and similar competitors - changes in consumer lifestyles and habits may affect the number of customers - as interest rates rise, business can be affected internally as well as externally
1.5 Product Analysis When the first sweatyBetty shops opened 11 years ago, they primarily offered clothing from established sportswear brands alongside a few of their own label items. In more recent years, they shifted the focus from the external brands to the sweatyBetty label, still keeping a few key names in shop. They offer items from brand names such as adidas by Stella McCartney, Asics, Havaianas, Nike, Pucci, Puma and Speedo, to name a few, and have their own range of fitness products for activities such as swimming, gym workouts, running, yoga, Pilates, dance, tennis, beach, walking, snow and a line for pregnant women. Products are arranged into categories, both in store and online, making it easy to find the product you are looking for and which activity you are looking to partake in. These include; sweat, yoga, beach and snow, and under these four categories you can find products such as jackets, bottoms, tops, bras, swimsuits, trainers, socks and a variety of fitness accessories such as bags, mats, water bottles and towels. Products range from approximately £330 for an all-in-one snowsuit to £12 for a pair of sports briefs but generally fall in the range of £40-£75. They also offer a limited number of items made from organic bamboo, which include; yoga bra at £20, seamless vest at £25 and yoga layer top at £45.
Figure 4 – sweatyBetty organic bamboo items ranging from £20-£45
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Amity Wishlow FDA FDM
1.6 Customer Profile and Segmentation Profile -
women wide range of ages: anywhere from 20 – 55 but mostly appeal to women aged 25-40, as clothing is slightly more trendy and fashionable the growth of the female population between the ages of 25-49 has seen a major growth in recent years making this the key target market within the womenswear sector, sportswear included (see Figure 5)
Figure 5 – Population by age group, Mintel Reports
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must have a keen interest in living a healthy and active lifestyle as that is the brands core value enjoys activities such as yoga, Pilates, dance, aerobics, swimming, ski, going to the gym, etc. will generally have a mid-range income with some disposable funds, as sweatyBetty clothing is of mid-range price will generally be eco-conscious and promote green living as sweatyBetty enforce a sustainable and green company
Segmentation Geographic: Consumers generally reside in urban areas and large cities within the UK as boutiques are found here, although they do offer an extensive online shop, allowing access to rural areas. Demands for image will be stronger in heavily populated areas creating a higher demand for stylish clothing. Demographic: Products are made for women only and appeal to a wide range of consumer ages, although they will mostly attract women aged 25-40. Their income will generally be mid-range as garments are slightly more expensive than the high street. Psychographic: Research proves that consumers have shown a rise in
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Amity Wishlow FDA FDM
global awareness, which is becoming a part of their lifestyles (see Figure 6). sweatyBetty pride themselves on running an eco-friendly company and offer natural and sustainable products.
Figure 6 – Ethical Attitudes, by gender, 2008, Mintel Reports
Beliefs of a healthy lifestyle are also important, as they are the companies’ core values. Behavioural: sweatyBetty tend to have a following of loyal customers as they offer exclusive promotions and campaigns for returning buyers, which creates an emotional attachment to the brand.
1.7 Competitors Nike -
mid-range products fairly basic designs and styles good on performance products range from £15-£60 do offer a mid-sized selection of organic clothing, although not well known
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mid-range products fashionability over performance products range from £20-£75 only offer selected men’s organic t-shirts offer designer collaborations (Alexander McQueen)
Puma
Figure 7 – Nike Vest
Figure 8- Puma Vest
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Amity Wishlow FDA FDM
American Apparel - basic styles yet highly fashionable - wide range of fabrics and colours - little or no performance although some products are made for sports activities - products range from £20-£60 - offer a very limited amount of organic garments in basic styles JD Sports - mid-range products - more fashionability than performance although performance items are available - wide range of well known brand names - offer adidas Originals range of organic cotton clothing, although very limited - price range from £15-£70
Figure 9 – American Apparel Vest
Figure 10 – Vest from JD Sports
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Amity Wishlow FDA FDM
Perceptual Map Fashionability vs. Price of Womens Sportswear
Figure 11 - Comparison between the fashionability and price of products within the women’s sports wear market
The clear difference between sweatyBetty and it’s competitors is that they pride themselves on being unique in the sense that they offer a wide range of products which not only perform during sporting activities but also hold a strong sense of style, something that is not easily found amongst its competitors. sweatyBetty products are more luxurious, further separating themselves from the competition and creating a niche for themselves within the market.
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Amity Wishlow FDA FDM
The Launch 2.0 Objectives of Launch
- sweatyBetty website The Spring/Summer 2011 season will see the launch of the Active Earth Organics collection in sweatyBetty shops and concessions across the UK. A collection of 12 outfits with interchangeable pieces will be introduced, all made of 100% organic jersey fabrics. The objectives of this launch will be to create awareness for global issues, more specifically the issues surrounding production and creation of non-sustainable clothing, and generate a realization to the benefits of organic garments. It will also allow sweatyBetty to build their reputation as a sustainable company, give customers the option to purchase organic items and generate sales while drawing in a new clientele. With this launch, there are hopes of creating a new demand for organic products from the company, allowing them to establish a permanent collection of natural clothing within stores and online. Over time, sweatyBetty hope to achieve a 25% average amount of organic products in store at any given time whilst continuing to boost sales and revenue. There is also area for further development of an online organic shop, which will include information and support on maintaining a sustainable lifestyle. Research has shown that these objectives are not only achievable but are also part of a growing gap in the market for sustainable clothing (see Figure 12).
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Amity Wishlow FDA FDM
Figure 12 – Market Value and Forecast, Ethical Clothing, UK, 2009, Mintel Reports
Over View Profitability: to raise profits by a minimum of 15% within the first 3 months of launch Market Share: to maintain the current market share, which is a high penetration of the luxury women’s active wear market Promotional: to create an awareness of the Active Earth Organics collection to current returning customers and to generate an average of 15% of new customers within the first 3 months of launch Survival: to generate enough sales and demand to allow for a permanent organic range of products in store and online Growth: to generate a 15% - 25% growth in overall sales and revenue for the company Branding: to make sweatyBetty the first choice for fashionable organic active wear for women aged 25-40 by the end of 2011
2.1 Five Force Analysis Threat of New Entrants -
introduction of new and expensive technology may allow wealthier entrants to be able to afford this before smaller companies can there may be a price war between the already existing brand and new entrants, meaning they may have to lower prices to maintain sales
Power of Buyers -
buyers may move to companies which offer a cheaper product; better values for money mass market chains may over take boutique companies small companies may viewed as replaceable
Power of Suppliers
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Amity Wishlow FDA FDM
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suppliers are not flexible meaning they may refuse to supply new products more powerful brands will have more power with the suppliers, pushing smaller companies away switching costs are high meaning it is more difficult to achieve, if need be
Threat of Substitutes -
there is the possibility of new entrants copying the product if it proves to be successful the introduction of an organic range may cause a substitutes of needs and may be something people view as unnecessary non organic products can hold the same qualities
Competitive Rivalry -
larger and more established brands may begin to sell similar products as global awareness rises, competitors will offer organic products at competitive prices advertising is key in order to keep consumers interested and informed on the product
2.2 Marketing Plan and Communications Marketing Plan Marketing strategies for the Spring/Summer 2011 launch of the Active Earth organic collection will be an overall continuation of sweatyBetty’s established and effective advertising and promotion methods. At present they depend on the use of online promotion, in store advertising, catalogue distribution, newsletters and general press coverage. These have all been successful ways for them to raise brand awareness and given them the success they currently hold. For this reason, the launch of the new range will involve: - the distribution of flyers promoting the new range of organic active wear and also offering a discount when flyer is presented during a purchase (see Figure 13)
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Amity Wishlow FDA FDM
- these flyers will be distributed to yoga, Pilates and dance studios, clubs and fitness centres local to sweatyBetty shops, alternative health clinics, organic food markets - flyers will also be inserted into the mail order catalogue, promoting the new range and offering a discount on any organic items purchased - online newsletters to loyal customers promoting the new range and offering an exclusive discount (higher than given to new customers) when purchasing organic items - in store advertising, including visual merchandising and knowledgeable staff - online promotions, which include first point of reference being information on the new range as well as advice and information section for leading a sustainable lifestyle Proposed Flyer (Draft)
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Amity Wishlow FDA FDM
Figure 13 – sweatyBetty Active Earth promotions flyer
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Amity Wishlow FDA FDM
Marketing Communication Proposed Schedule for Release and Distribution of Promotional Flyer 1 1
Brainstorm/ Visuals
2
Improveme nts/Drafts
3
4
Finalize
2
3
Initial Design Ideas
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5
6
Quotes List Creation – Loyal Customers, Distribution Points
Improve / Amend
Finalize artwork
Idea to Printer
5
1st Draft Approve
6
Print/Finalize all Print work
Finalize Lists
Flyer Insert into Catalogue
Distribution of Catalogue
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Flyer Distribution to Health Centres, Studios.. Etc Launch of Collection
8 Horizontal Represents Weeks Vertical Represents:
1. Creative 2. Artwork 3. Print 4. Distribution List 5. Catalogue 6. In Store/Flyer Distribution
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Amity Wishlow FDA FDM
2.3 Control In order to control and assess the success of the launch of the Active Earth Organics collection there are numerous systematic procedures that must be undertaken in order to ensure the launch was beneficial to sweatyBetty. These systems include: Market Share Analysis - do they still hold the highest market share? - have they fully penetrated the market within the given areas? Competitors Analysis - are there new and powerful competitors within the market? - are the products being replicated? Sales Analysis - is the profitability on target? (rise of 15% within the first 3 months) Sales Counts - count sales per customer - count sales by segment - count sales by location Geographical Analysis - are consumers spreading out? - is this causing a loss in revenue? - do new shops need to be opened? Customer Opinion - is sweatyBetty still their first choice? - have their opinions changed? Discounts Redeemed - have consumers been using the flyers? - have the online promotions been used? - have the online newsletter for preferred customers been redeemed?
2.4 Conclusion From the data collected and taking into consideration the opinion of current sweatyBetty customers, the current need for organic clothing within the active wear market and the steady increase in global awareness, it seems that the Active Earth collection for Spring/Summer 2011 will not only benefit the company in accomplishing their hopes of becoming a successfully sustainable 16
Amity Wishlow FDA FDM
company but also aid in an increase in sales and revenue and generate new relationships with a clientele who share beliefs of a greener world.
Bibliography 1. Mintel Reports, February 2009, Ethical Clothing UK Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show &/display/id=393875 [ Accessed on March 10, 2010 ] 2. Mintel Reports, September 2009, Sports Clothing and Footwear UK Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show &/display/id=394601 [ Accessed on March 10 2010 ] 3. Sweaty Betty website Available at: http://www.sweatybetty.com/ [ Accessed on March 10, 2010 ] 4. Sportsister, October 2009, Recommended Retailer Article Available at: http://www.sportsister.com/2009/10/28/recommendedretailer---sweaty-betty [ Accessed on March 10, 2010 ] 5. The Times Online, November 2006, Sweaty Betty Article Available at: http://women.timesonline.co.ul/tol/life_and_style/women/article636485.ece [ Accessed on March 10, 2010 ] 6. Royal Mail, February 2010, Capitalising on Catalogues Article Available at: http://www.royalmail.com/portal/rm/content1? catld=82500758&mediald=84100748 [ Accessed on March 10, 2010 ] 7. Shopping Centre, May 2006, Sweaty Betty Article Available at: http://www.shoppingcentre.co.uk/news/fullstory.php/aid/1106/Sweaty_Betty.html [ Accessed on March 10, 2010 ] 8. The Fit Map, February 2010, Sweaty Betty Article Available at: http://www.thefitmap.co.uk/products/clothing/sweatybetty.htm [ Accessed on March 10, 2010 ]
Further Reading Hines, T. and Bruce, M., 2007, Fashion Marketing: Contemporary Issues, 2nd Edition, Published by Elsevier
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