Strategic Marketing Report By Amy Chappell
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Contents Introduction and Aims and Objectives -‐ page 6 Target Market – page 7 Competitor Analysis – page 8 and 9 Marketing Strategy – page 9 and 10 SWOT and PESTEL Analysis – page 11 Marketing Objectives – page 12 Analysis and Research – page 12 Product Ranges – page 13 Promotional Tactics – page 14 Evaluation – page 15
Bibliography – page 16
Appendices -‐ page 17 to page 23
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Introduction Fat Face is a fashion and lifestyle brand specializing in casual wear established on the high street. The company was founded by Jules Leaver and Tim Slade in 1988, who started up a printed t-‐shirt business in the back of their VW camper van to pay for their enjoyment of skiing. They gained most sales from British tourists so decided to open their first store in the UK between 1992 and 1993 in London. The business was originally aimed at the snowboarding and skiing market however this has expanded to other summer activities for a variety of seasonal wear. They are now a successful multi channel brand with 208 stores in the UK and Ireland, an award winning store design and strongly growing website. The companies motto is ‘Life is out there’ as they are constantly inspiring their customers and employees to seek out new adventures and experiences. The heritage of the company is of great importance to them and this continues to surface at the heart of the brands values. Fat Face’s main priority is to ensure the customers know their opinions matters to the brands reputation. By gathering regular feedback from consumers through emailing and surveys, they can immediately act upon the customers needs. Aims and objectives of report This report aims to present the challenges, issues and threats that face the company and outline current marketing strategies. Relevant marketing theory and strategies will be used throughout including a SWOT and PESTEL analysis to defining the company’s current market circumstances. Through comprehensive research the marketing objectives for Fat Face in the future can be identified and a 5 year plan for the business will be outlined that enhances market share and build on customer loyalty.
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Target Market The brand is designed to appeal to people with an active lifestyle and interest in alternative sports, with strong emphasis on British Heritage. Originally, Fat Face’s values of ‘adventurous and active’ consumers indicated that the brand targeted a young market of the twenty to thirty years old category. However over the years the brand has adopted an older loyal consumer of the 35 and over age range. Recently they attempted to redirect their products towards their original younger demographic but due to poor execution of marketing they were not successful in attracting the new generation. In order for Fat face to improve on their market share they need to appeal to the younger consumers while continuing to entice their older more loyal customers. By identifying the price of products, quality and style of ranges in store, a typical customer of Fat Face can be identified through customer segmentation. The Demographic of the current customer are men and women aged thirty to fifty years old with well paid jobs and strong household income. They can afford to go travelling on active holidays, which is reflected by the pricing of products of the brand. The psychographic analysis suggests that Fat Face aims at people who are interested in sports and enjoy adventurous outdoor activity. As the stores product ranges aim at the whole family, the customer generally has a family with young children and traditional values. Geographically, the customer tends to live in a rural area and enjoys outdoor living so benefits from the company’s varied outdoor clothing. (See appendix 1 for pen portrait)
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Competitor Analysis Fat Face’s current competitors have been analyzed n this report to illustrate where the company sits amongst the retail market. The perceptual map (see appendix 2) has been used to compare companies in a similar position to Fat Face through price and brand focus. The company sits alongside many other brands that have similar values, quality of clothing and pricing, especially in the active lifestyle range however Fat Face now needs to position itself in the market so it stands out from the rest and perhaps acknowledge what other brands are doing to keep up with competitors. Fat Face would benefit from enduring more competitor analyses to ensure they keep track of what other brands are doing to stay grounded on the high street. Two of Fat Faces main competitors have been measured against the brand to distinguish comparisons and weaknesses. White Stuff is Fat Face’s closest competitor regarding style of products, heritage and brand values which is a threat to Fat Face as they need to stand out and appear a better brand in order to gain business. The company is predominantly focused on women's wear and relies on its loyal customers similarly to Fat Face to drive the brand forward. However Fat Face already stands in a better position than White Stuff as they offer a more diverse product range and also have lost many loyal customers as they have moved away from their original ethos as an active lifestyle brand. On a positive note, White Stuff has a very attractive and website which is of great importance in todays society as one of the main sources to connect with customer is through the internet and Fat Face are beginning to accomplish this. Gap is a well-‐established international competitor that Fat Face can take positive traits from in order to gain more success as a retail brand. The brand first and foremost focuses on casual wear and the clothing is always known for being reliable and of great quality for reasonable prices. In order for Fat Face to succeed as a reliable brand for customers it is important for them to acknowledge Gap’s success internationally, their strong advertising with the use of celebrity endorsements and diverse product range.
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Marketing Strategy Fat Face’s current marketing strategy can be identified by the use of Kotler and Armstrong 7 p’s theory, which accurately breaks down the essential parts of the business and observes the areas they need to focus on. Product Fat Face’s current product range includes casual clothing for men, women and children aged 4-‐14 years. They have recently launched a new product range called Activ88 that tailors to the active lifestyle market segment and is a good step for the company in becoming more sports incorporated. The brand is much more style conscious than they used to be with a wide variety of quirky prints and stylish colours that reflect the brand identity. The main factor that customers find successful about their products is that they are comfortable, durable and adaptable for all seasons. Price Fat Face sells their products at a better price in the market than their competitors White Stuff, resulting in consumer appreciation for the brand. Due to acknowledging the benefits of investing in quality, style and value for money, fat face trade predominantly with a full price offer on products-‐ restoring their integrity. Promotion The company uses many sale promotions including an offer of 2 for £18 on selected plain tees for women and free gift-‐wrapping for jewellery pieces to encourage customers to buy gifts. They use word of mouth to promote including channel strategies such as social media where they can reply personally to their loyal consumers. Fat Face would benefit from applying above the Line promotional tactics to boost profits and reputation.
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Physical Regarding the changes in climate happening presently, fat face has to ensure that they produce products that are durable and less specific to seasons. They use a varied amount of products in store that will benefit every type of weather condition and to protect the company from losing sales due to the wrong products. Place The fat face stores have very strong visual merchandising and window displays that have won the company awards in the past for its stylish store layout and decoration. There website is strong and appeals to an adult market as it is simple, easy to use and not too distracting. It is made with the customer in mind and expresses the values and aspirations of the brand. Fat Face can also be found in John Lewis concessions and high footfall travel hubs reaching out to the international market. People At Fat Face they believe in happy and engaged employees so organize various events and management development programs so their employees can embrace the active values of the brand. Also they encourage employees to take part in initiatives that benefit local communities e.g. beach cleans. Process The brand knows it is important to ensure the customer knows where to go for advice or other services. They can contact them through phone, by email or via social media. This guarantees positive feedback and the return of loyal customers and perhaps new ones as well by word of mouth.
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SWOT Analysis In order to identify Fat face’s strengths, weaknesses, opportunities and threats internally, a SWOT analysis has been executed. (See appendix 3). From this it is evident that Fat Face has significant strengths such as their visual merchandising in store, a strong head office team and high quality products. The company is becoming more active on their social media platforms and should continue this to provide wider options for communication and engage a wider demographic of consumer. However they are currently struggling to aim their campaigns at the right target market so would benefit from more analysis and research in order to keep their loyal customers and also apply more research on other competitors in the retail market. Fat face need to correct their weaknesses to ensure they do not become threatened by factors such as growth in fast fashion and more demand for durable clothing. PESTEL Analysis The external environment has been examined using a PESTEL indicating the significant factors that could potentially affect the company. (See appendix 4). An important factor that fat face incorporates in their company already is there actions environmentally. Fat face encourages better waste management and energy efficiency by using smart meters to monitor emissions in stores across the UK. As the weather has become more unreliable in recent years due to climate change, Fat face needs to ensure that they continue to product durable clothing that can be worn in all weather conditions, as customers will continue to buy products regularly. Also, as technology develops more people are shopping online instead of high street stores meaning fat face must ensure their current visual merchandising reputation with holds and develops and keep their website and Facebook active and appealing to customers.
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Marketing Objectives After conducting a situational analysis of the company, the marketing objectives have been identified. • Increase brand awareness by attracting younger target segment to degenerate brand values without manipulating loyal customers. • Continue to develop various social media platforms and keep website updated to ensure better communication with customers. • Carry out more analysis on retail competitors in order to increase market share and appear a more reliable company. In this report the first objective of increasing brand awareness has specifically been focused on and conducted in a five-‐year plan for Fat Face. Analysis Fat Face has seen a significant improvement from their sales since 2012. Looking at their financial statement from 2012 and 13, in 2012 its sales revenue was 163,528,000 and has increased in 2013 to 178,620,000. According to their EBITDA has increased by 29% since 2012, resulting in an increased cash flow allowing the company room to expand on their current product ranges. Research for New Product Range To establish the particular product range that would be suitable to produce, research has been conducted to identify the products Fat Face’s main competitors are presently lacking. It is evident that most are lacking a maternity or newborn range. A recent report in the guardian (see appendix 5) mentioned that nearly half of all births in Britain and Wales are from mothers over 30 years old signifying that women over the age of 39 will be searching for alternative high street shops to shop for maternity wear that suits their age range. Fat Face can direct this range towards the older loyal consumers while catering to a younger demographic as well.
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To increase brand awareness and further sales, alongside this they could introduce a baby range for babies aged 0-‐3 years. This would essentially give pregnant women and new mothers twice the reason to shop at Fat Face and generate double the sales. It also becomes more convenient for them as they know where to shop for both themselves and their baby. Maternity range Product Details The maternity range will include many of the same styles, silhouettes and prints featured in the women’s wear products, as they are easily adaptable due to the shape and materials used. The collection will be developed for Summer 2016 as this allows enough time to design, develop and promote the product to consumers. The range will be durable for all seasons and highlight the brands active lifestyle value. The products suitable for maternity and the season featured in the women’s wear range would be tunics, Camille dresses and maxi dresses, skirts, light knits and linen blouses. The pricing will be the same as the women’s wear range as both ranges of products are very similar and this will serve as another incentive for women to shop at Fat Face. Baby Range Product Details The newborn range will also include many of the same styles featured in the children’s wear however many styles of the various tops will be adapted into baby grows and clothing suitable for a young baby. The pricing will sit slightly lower than the children’s wear to reflect the rate at which babies grow which is normally very fast at such a young age. The Baby range will also be developed for summer 2016 along side the maternity range so the clothing colours and prints will be adaptable for this period.
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Promotional Tactics In order for the product ranges to become a success, it is important to signify how they would be promoted to the public in the best way to reach the right target market. Two examples of promotional tactics have been established. Fat Face Film As Fat Face does not incorporate above the line promotions such advertisements in magazines, instead they produce Fat Face campaign films on their website that illustrate the new trends every season and emphasizes the brand values. Fat Face could introduce the new maternity and baby ranges to consumers by producing an online film similar to previous ones featured. The film would include a young baby and pregnant mother embracing the outdoors wearing the new trends for summer 2016. (See appendix 6). The film will feature on the website and on their social media platforms. Promotional Launch Event Also the company could promote an exclusive launch event for all new mothers and soon to be mothers to introduce the new products for Summer 2016. Many mother of small babies and women in pregnancy find it difficult to find time to socialize with others and this event gives them the chance to do this along with getting a first glimpse at the new collections. The event will be promoted via the website, in store and on Fat Face’s social media sites (see appendix 7), as social media and the internet are becoming the main ways in which companies can communicate with customers.
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Evaluation Once the product ranges are launched, Fat Face will have increased their brand awareness and profit while engaging a younger demographic and being able to preserve their loyal customers as well. These product ranges will allow the company to expand and increase their market share, as they will appear a more reliable and diverse brand amongst competitors. The product range will be evaluated by monitoring whether the company has made a profit or loss. The success of the products affect on the public can be measured by the amount of people who come to the launch event. Each person from the event will be surveyed and from that Fat Face gain feedback from customers on their feeling towards the new collections. Overall these product ranges succeed many objectives of the brand. They will help increase brand awareness and help Fat Face to stay grounded amongst competitors and reach a wider target audience, catering to a demographic that is very often forgotten about in the retail market.
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Bibliography FAT FACE, 2007. Fat Face website. [online] [viewed 15 February – 13 March 2014]. Available from: http://www.fatface.com/ GAP, 1997. Gap Website. [online][viewed 5 March 2014]. Available from: http://www.gap.eu/ WHITE STUFF, 1996. White Stuff website. [online][viewed 6 March 2014]. Available from: http://www.whitestuff.com/ BICKLE, M., 2011. Product, Price, Distribution and Placement. In: O.KONTZIAS, ed. Fashion Marketing: Theory, Principles and Practice. Fairchild books, A division of Conde Nast Publications, pp. 45-‐53 MEIKLE. J, 2013. Nearly half of births in England and wales are to mothers over 30. [online][viewed 9 March 2014]. Available from: http://www.theguardian.com/uk/2013/jan/24/half-‐births-‐ mothers-‐over-‐30 ANON, 2010. Trend observation: Fashion maternity wear in the mainstream. [online][viewed 9 March 2014]. Available from: http://academic.mintel.com/sinatra/oxygen_academic/display/id=5 27328?highlight
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Appendix 1
Pen Portrait
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Appendix 2
Perceptual Map
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Appendix 3
SWOT Analysis
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Appendix 4
PESTEL Analysis
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Appendix 5
Mintel Report on Maternity Wear
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Appendix 6
Fat Face Film Mood board
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Appendix 7
Launch event Poster
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