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Anna Richardson 201228148 Fashion Marketing DESN 1355 Marketing Mix report Word Count: 2729
Strapless swimsuit: New Look swimsuit vs Moschino swimsuit
Contents:
Abstract Introduction Literature Review My chosen brands Methodology Low value retailer: New Look Product price Place Promotion High Value retailer: Moschino product Price Place Promotion Conclusion References Appendices Illustrations
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Abstract – This report is designed with the aim of thoroughly targeting the marketing mix and analysing the array of elements within the marketing mix across two platforms such as a high end retailer and a low value high-street brand retailer and examining how they differ across different market levels. The research I have conducted so far into different company’s and brand as a whole has allowed me to delve into different marketing strategies which reflect that of the position they hold in the market such as high-end or value retailer for example. This has translated into the way certain brands use the 4P’s; price, product, place and promotion. Added to this, this will allow for further analysis regarding the marketing mix as my report will highlight in depth the application of the marketing mix on two similar products positioned at either ends of the market.
Introduction – This body of work has been produced to allow for evaluation and exploration into the differing marketing methods used by two very different brands, regarding a similar product they both sell. Using the 4p’s; Price, product, place and promotion, the report will be able to underline the differences and similarities between the brands marketing concepts. Using primary and secondary research, I will highlight both products aesthetic and durability, allowing me to analyse the garments to uncover the differences in the products and marketing of my two chosen brands. Furthermore, the report is designed to underline the array of marketing methods used by both brands and the strategies they use to successfully sell their products. As Kotler states the marketing mix is “ a set of marketing tools that work together to engage customers, satisfy customer needs, and build customer relationships (Kotler et al, 2016. Pg. 5). This is necessary as these days’ customers are very tuned into getting the best deals and prices to suit them. This is why the marketing mix is key for companies to stay ahead and compete with different brands.
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Literature review – In this day and age Marketing is imperative for a brand to thrive as well as survive. Marketing underpins a business and interprets the opinions a customer will ascertain. Marketing is all about “anticipating, identifying and satisfying customer needs” (Easey, 2009).
In this day and age Marketing is imperative for a brand to thrive as well as survive. Marketing underpins a business and interprets the opinions a customer will ascertain. Marketing is all about “anticipating, identifying and satisfying customer needs” (Easey, 2009). Marketing includes the use of the marketing mix and the way it can be successfully integrated to so that it “consists of a set of well-planned marketing tools that aims to convey the value proposition to its target market segments”(Kotler et al, 2016). “This defines how the organisation satisfy its customer by understanding and meeting their needs” Through using the 4P’s; Product, Price, place and promotion a company can tailor to their customers’ needs and create the desired response. Using swot analysis, we can break down the strength weakness’s, threats and opportunities the business holds allowing the company to be better prepared for problems they may face See appendix C and D). Furthermore, the Boston Matrix allows us to see where the products fall in terms of growth and market share with both products targeting themselves as Stars (See Appendix B).
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Chosen brandsTo fully analyse the use of the marketing mix and different strategies chosen by brands I picked companies very different from each other. The first brand being the high end designer ‘Moschino’ and the second brand being New Look an ‘economy high-street brand.’ Moschino is a high end luxury brand which caters to a smaller target market. Where- as New look is a mass market retailer – which targets a much wider range of consumers, Selling products for very cheap prices producing high volumes of stock, cheap fast- fashion. Moschino had a distinct high-end trendy vibe which caters to a younger clientele around 20- 35 years old. They’re products are statement pieces which stand out and create a last impression.
MethodologyWhen writing my report, I chose to use a mixture of qualitative and quantitative data, to get a broader idea of both stores image and marketing strategies. For my primary research I conducted store observations, visiting my chosen stores and gaining insight into the layout, the brand image the store is trying to portray as well as the quality of the items, aesthetic and so on. I felt this would be helpful when analysing the 4P’s for each company later on. I used a lot of valid journal articles and online sources such as WGSN and Vogue, as well as reliable books to help me complete the report and my literature review.
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NEW LOOK-
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The New Look brand was founded in 1969, since then it has gone from strength to strength, to “become a leading fast-fashion brand, with 593 in the UK and 302 across Europe, China and Asia” (New Look, 2019). New look aims to help people ‘dress smart for cheap’ (Funding universe, 2019). New looks offerings include “low-priced fashions often emulating the styles of far higher priced designer labels” (Funding universe, 2019). New Look has managed to attain a strong following and share in the worlds low value fast fashion retailer market.
ProductThe New look strapless swimsuit is a very similar design to the Moschino swimsuit offering a similar aesthetic, as well as both products offering removable straps. The product also offered a host of added value features, these included, the belted clip front waist and the colour block design. Also, the removable straps are an added feature. However, the New look swimsuit is considerably cheaper with a price tag of £25.99 (See Appendix A). This product is clearly for a one time holiday use as the material suggests it might not last till next summer or your next holiday. The product consists of, Shell: 80% Nylon, 20% Elastane. Lining: 85% Polyester, 15% Elastane
These are cheap materials which are widely used in fast fashion products. The highest percentages being polyester and Nylon which are both synthetic fabrics, Nylon is commonly more durable, and this is why it is used in this case for swimming costumes. Nylon is more expensive to produce than polyester, (Diffen, 2019), which would explain why this product is more expensive than some of the similar swimming costumes on the New Look site. The product only come in one set of block colours; White and black. When I went into the store to analyse the costume you can see the material looks quite cheap and tacky (see figure 9). The product was thin and not very well made, it was obvious to why the price tag was so low. The plastic buckle belt was of very low quality and didn’t sit right on the swimsuit (see fig 11). The fit when tried on was unattractive as it didn’t do much for my figure. The product was badly designed and unflattering and strongly suggested poor craftsman ship as well as cheap materials.
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PRICE-
New Look uses a range of pricing strategies to entice customers this includes a price penetration strategy. This entails keeping the prices low but selling high volumes of clothing and products, to produce high sales volumes and allow the company to buy in bulk for cheaper and therefore make a profit. This also means they can raise the prices when their market share increases thanks to the high level of products sold. This is also a tactic to undercut competitors such as Primark and ASOS, to gain more customers as they have the cheapest products to offer. This low- cost strategy allows for the maximisation of profit through high volumes being produced and sold for cheap. However, “Herein lies the problem. Fast fashion is built to maximise profit for a select few, and churn out a huge volume of cheap clothing. Its vision, characteristics and need to expand and conquer means there is no long term� (Siege, 2018).
Furthermore, New Look offer a constant flow of discounted products to attract customer attention and give them incentive to shop in New Look. The problem with this method is that it devalues the store and it can be seen negatively in the consumers mind.
PromotionTo promote their products New Look, use a range of techniques in order to keep their customer updated and interested. Firstly, New looks online platform is the main way they promote their products. they “have over 2 million fans on Facebook and a growing base across over the social sites” (etail, 2018). Along with this they have a following of 2.2M on Instagram which adds to their online presence and promotional activities. The company states “What we offer and how we communicate with our customers is about more than selling clothes; it’s also about the emotions that come alongside buying a new outfit. We’re always listening to them to make sure we really understand their needs” (New look, 2019). Furthermore, New Look is creating in-store experiences to increase the footfall into the store and make the customers experience more enjoyable. For example, New Looks flagship store in Oxford Street, London offers consumers the chance “to visit the hair salon, makeup bar and an embroidery station where they can personalise their denim purchases” (GEOGHEGAN, 2017).
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Place-
With over 300 stores internationally and nearly 600 in the UK, New Look has expanded significantly from its first shop in Taunton in 1969. Nowadays in order for low- value retailers to keep up with the fast fashion and “To provide super-cheap, on-trend clothing they must outsource to factories in textile hotspots (such as Bangladesh) that can provide low-cost labour” (Siegle, 2018). “Sourcing is another area of focus to speed up delivery to market while keeping costs low. The bulk of supply is from China and Bangladesh” (GEOGHEGAN, 2017). This means New look has less control over the craftsman ship and quality of its products, which is reflected in the clothing. The companies mass distribution strategy requires high volumes to be constantly produced and shipped out across the world (see appendix E). Furthermore, it is clear to see how New Look can afford to keep their prices low as they employ cheap labour overseas to produce the fast fashion low quality garments.
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Moschino
Moschino was founded in 1983 by Franco Moschino. The brand caters to the highend ready to wear fashion market and is not afraid to be bold and controversial. “Since Jeremy Scott took on the role as creative director in 2013, Moschino has catapulted itself into the spotlight with its logoed designs, slogan T-shirts and popculture favourite phone cases being spotted on everyone from Rita Ora to Scott's other BFF and collaborator Miley Cyrus“ (Pike, 2015). Moschino is very chic and trendy catering to a younger target market around 25-30 years old. Also, offering a children’s wear line.
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ProductThe Moschino glittered logo swimsuit is designed to ‘Refresh your poolside style’ (Moschino, 2019). The swimsuit is made to stand out, is it well-crafted with attention to detail. The garment also “features a removable neck strap and back tie fastening to the cut-out area. Finished with a branded elasticated trim to the top and the brands signature logo emblazoned in a glittered design all over.” (Moschino, 2019). The garment is made from 91% polyamide which is a strong and durable form of Nylon. “Polyamide fabrics tend to have a better feel, because they have softer and more flexible fibres, though they produce more static. This softness was because they were initially designed as an alternative for silk. This high strength-flexibility combo drives up their cost” (Chavan, 2018). This suggests Moschino use good quality materials in their production, which allows for the premium price tag. As Moschino is a high-end luxury brand it is much less accessible than the New look strapless swimsuit. Due to the nature of the Moschino swimsuit and the material used, it would suggest the garment would have a much longer product life cycle than the New Look swimsuit and could be a staple piece in a wardrobe. It is also machine washable, making it practical and easy to wash.
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Fig 19 PriceMoschino uses a premium pricing strategy to stay in line with their luxury brand status, “Moschino mostly offers high quality products at high prices. The customer segment they target is the upper class” (Mbaskool,2019). Moschino uses a price skimming strategy, setting prices high to attract early adopters and lowering prices over time, to allow it to be slightly more accessible to a wider audience. Moschino also adopts product line pricing, this consists of pricing products at different price positions, again using this to appeal to a wider audience and make it more accessible for them. This can appeal “to middle class potential customers. This includes making same product with different benefits and different levels of usage so as to make the price vary accordingly. In the same product line, the cheapest products by Moschino are very simple designs and the costliest product features complex designs and more stylish approach” (MBAsKool, 2019). With the price of the Moschino swimsuit being £184.00 we could regard this an entry level product which would be more accessible to a bigger market compared to Moschino’s high level products catering to a more niche market.
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PlaceMoschino uses a selective distribution strategy, they sell to consumers through their online website and through flagship stores and high-end department stores such as Selfridges. Moschino’s selective distribution strategy allows them to sell from a number of high end department stores and online stores which gives them a competitive advantage as consumers can access their products from a number of places. Added to this it allows Moschino to still be viewed as a luxury brand in the mind of the consumer allowing Moschino to keep its high prices.
PromotionTo promote their products Moschino had a strong online presence making sure their social media is constantly up to date and fresh to draw consumers in with new collections. Furthermore, Moschino uses print media to advertise such as, Vogue, ELLE and W magazine. This helps to reach their target audience as many buying these magazines will have money to spend on high-end luxury clothing. Moreover, Moschino did a collaboration with H&M which was sold in H&M stores. Some would argue this is making Moschino’s brand more inclusive and accessible to a wider audience and could damage its reputation. Also, “ collections like MOSCHINO [tv] H&M are simply perpetuating a vicious cycle of fashion that is harmful to both people and the planet” (Dalton, 2018). This could have a negative impact on their promotional campaigns as sustainability is a massive issue in today’s society.
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Conclusion-
Overall, my report has concluded that both Moschino and New Look’s pricing strategies highlight the position of both brands within the market and the products are a reflection of this. Moschino produces high quality statement pieces which target a niche market choosing to use a selective distribution strategy to sell their products. Focusing mainly on printed and social media to promote their brand. They also use a price skimming strategy to attract early adopters and lower their prices slightly over time. Whereas New Looks adopts a mass distribution strategy, which produces high volumes of clothing sold at low prices but are of a very low quality. Their penetrative pricing strategy is effective and helps to keep the competition at bay as well as their low-cost strategy and use of outsourcing although this compromises quality. Their strong social media presence is effective and necessary to keep their high volumes of sales up and allows them to bring the customer in and increase footfall. In Conclusion, my research has highlighted that even high-end brands can be as unethical as mass market low value retailers. They may use better fabrics, but they still be made in an unethical way. This report has allowed me to identify the stark contrast in the use of the marketing mix by high -street low value retailers and high end premium brands and how they are represented within the market.
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References:
Chavan, 2018, Difference between polyamide and polyester [online] [accessed 28 April, 2019] Available from: https://homequicks.com/polyamide-vs-polyester-fabric
Dalton, 2018. Moschino X H&M proves high end designer need to stop endorsing fast fashion [online] [accessed 28 April, 2019] Available from: https://wellmadeclothes.com/articles/MoschinoxHM/ Diffen, 2019, Nylon vs. Polyester [online] [accessed 28 April, 2019] Available from: https://www.diffen.com/difference/Nylon_vs_Polyester Easey, M. 2009. Fashion Marketing. Third ed. Chichester Wiley-Blackwell
Etail, 2018. New Look interview [online] [accessed 28 April, 2019] Available from: https://etaileurope.wbresearch.com
Funding universe, 2019. New Look group plc history [online] [accessed 28 April, 2019] Available from: http://www.fundinguniverse.com/company-histories/new-look-group-plc-history/
GEOGHEGAN, 2017. A new era as New look sharpens its strategy [online] [accessed 28 April, 2019] Available from: https://www.drapersonline.com/people/the-drapers-interview/a-new-era-as-new-look-sharpens-its-strategy/7024919.article
Kotler P, Armstrong, G, Harris, L,C, Piercy, N. 2016.principles of marketing seventh edition. London, Pearson
MBAsKool, 2019. Moschino marketing mix. [online] [accessed 28 April, 2019] Available from: https://www.drapersonline.com/people/the-drapers-interview/a-new-era-as-new-look-sharpens-its-strategy/7024919.article
Moschino, 2019. Moschino [online] [accessed 28 April, 2019] Available from: https://www.moschino.com/gb_en/
New look, 2019. New Look about us [online] [accessed 28 April, 2019] Available from: https://www.newlook.com/uk/homepage
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Pike, 2015 . Why is everyone so crazy about Moschino? [online] [accessed 28 April, 2019] Available from: https://www.vogue.co.uk/gallery/moschino-a-fashion-history-jeremy-scott
Siegle, 2018. The high price of New Looks low cost strategy [online] [accessed 28 April, 2019] Available from: https://www.theguardian.com/commentisfree/2018/jun/13/new-look-fast-fashion-high-price-low-cost
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Appendices: Appendix B:
Boston Matrix: Ansoff Matrix, 2014. [online] [accessed 7th May 2019] Available from: https://www.tutor2u.net/business/reference/bostonmatrix-and-product-portfolios
Opportunities
Moschino- Appendix C Strengths
Weaknesses
Higher disposable incomes in third world countries -growing Media influence growing
Threats Global brand awareness lower than some high end designers America Moschino is less known therefore leaving a high population out to sell to
Creative trendy designs Higher end market but has different price points Strong presence across the world
Very cut-throat competitive market Substitutes available Threat from business-s copying the designs
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New Look- Appendix D
Prices are affordable Access to lots of stores Caters to a wider age range They use celebrity endorsements Supply the latest fashion trends
Threats
Rebranding the stores and giving them a more modern feel The layout of the store could be improved, quite cluttered
Opportunities
Weaknesses
Lots of competition from stores like Primark, river island etc. May not to be up to date with fast fashion as Primark for example
Strengths
Low quality products Not always good customer service Can’t always get the same products online and in-store
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Image References: Fig 1: own image
Fig 2: Flannels, 2019. Moschino glittered swimsuit [online] [accessed 6th May 2019] Available from: https://www.flannels.com/moschino-glittered-logo-swimsuit354608?colcode=35460803&gclid=Cj0KCQjwzunmBRDsARIsAGrt4ms1F3TiVlianZjcCzMsiZ1jFcdksXoideAKI9kUVzAb 2e1_QRQgmZAaArllEALw_wcB&gclsrc=aw.ds Fig 3: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 4: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 5: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 6: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html
Fig 7: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage
Fig 8: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage
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Fig 9: Own image Fig 10: own image Fig 11: own image
Fig 12: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage
Fig 13: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage
Fig 14: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage
Fig 15: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage
Fig 16: New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage Fig 17: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 18: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html
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Fig 19: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 20: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 21: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 22: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html Fig 23: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html
Fig 24: [New look, 2019. New Look Home page [online] [accessed 6th May 2019] Available from: https://www.newlook.com/uk/homepage Fig 25: Moschino, 2019. Moschino home [online] [accessed 6th May 2019] Available from: https://www.moschino.com/gb_en/boutique-moschino/world-of/ad-campaign.html