Comparative analysis of the marketing mix of Valentino and Forever 21 by Caroline Davies

A COMPARATIVE ANALYSIS OF THE 4P MARKETING MIX BETWEEN A LUXURY BRAND AND A MASS-MARKET BRAND. CAROLINE HELEN DAVIES

201009275

figure 2: Valentino Rockstud Untitled Trainers

1. ABSTRACT

MASS-MARKET BRAND: FOREVER 21

2. INTRODUCTION

7.1. Overview

7.2. Product

4. METHODOLOGY

7.3. Price

CHOSEN PRODUCTS

7.4. Place

LUXURY BRAND: VALENTINO

7.5. Promotion

6.1. Overview

8. DISCUSSION

6.2. Product

9. CONCLUSION

6.3. Price

10.

6.4. Place

11. APPENDICES

6.5. Promotion

12.

FIGURE LIST

13.

BIBLIOGRAPHY

LITERATURE REVIEW

FURTHER RECOMMENDATIONS

The purpose of this investigative report is to identify the differences in marketing strategies between different market sectors. The marketing strategy will be considered with regards to the 4P marketing mix, providing the structure for the report. Using this basis, the findings prove there are fundamental differences in the marketing strategies between the market sectors. However, these differences are not detrimental to either sector, instead they allow the brands to target their consumers and potential consumers more effectively and efficiently.

ABSTRACT

Through the comparison of two aesthetically similar products, this report will analyse, discuss and compare the marketing strategies of two fashion brands, a mass-market high-street brand, Forever 21, and a luxury ready-to-wear brand, Valentino. It aims to identify the key differences in the strategies and discuss reasoning behind marketing choices, with the principle aim of evaluating the success of each strategy within the market sector.

6 Academically, MARKETING is defined as ‘a way of thinking… from the perspective of the customer or potential customer, and a management process concerned with anticipating, identifying and satisfying customer needs to meet the long-term goals of the organization.’ (Easey, 2009). The MARKETING MIX describes the ‘combination of key elements that must be balanced to develop an organization’s marketing’. (Posner, 2015) Whilst multiple structures exist, this report will highlight the elements of the 4P strategy (product, price, place and promotion). (Perreault and McCarthy, 2001) The 4P strategy describes the elements required in getting ‘the right product, to the right place, at the right time, at the right price’ (Posner, 2015)

PRODUCT simply refers to the ‘goodsand-services combination the company offers’ to ‘the marketplace that might satisfy a need’. (Kotler et al, 2017 : Easy, 2009).

PRICE ‘is the amount of money that is exchanged’ for a product or service at the point of the buyer-seller exchange. (Easy, 2009)

PLACE concerns the ‘logistics and the various methods of transporting, storing and distributing merchandise and the means by which a company’s products reach the target consumer’. (Posner, 2015)

PROMOTION refers to the ‘activities that communicate the merits of the product and persuade target customers to buy it’. (Kotler et al, 2017). These activities can be classified in the PROMOTIONAL MIX which must ‘be balanced to develop an organization’s promotional strategy.’ (Posner, 2015)

“THE RIGHT PRODUCT, IN THE RIGHT PLACE, AT THE RIGHT TIME, AT THE RIGHT PRICE” POSNER, 2015

In the construction of this report, a variety of credible sources were consulted with additional input from popular media sources to balance academia with public perception. To further enhance this, primary research was carried out in the form of store observations and the physical analyses of the products to accurately compare and contrast the two garments.

ROCKSTUD UNTITLED LEATHER JACKET Â£3,280 figure 3: Valentino Rockstud Untitled Leather Jacket

figure 4: a Valentino store interior

STUDDED FAUX LEATHER JACKET Â£37 figure 5: Forever 21 Studded Faux Leather Jacket

figure 6: a Forever 21 store front

figure 7: a Valentino advertisement

Founded by Valentino Garavani in 1960, the eponymous fashion house has earned itself a position ‘amongst the leaders of international fashion’ (Valentino, no date). One of few true Haute Couture fashion houses, Maison Valentino operates across both Haute Couture and luxury ready-towear market sectors, globally (figure 8). A brand built on ‘escapism’, boasting ‘exquisite workmanship’ and an ‘aura of art-historytinted romance’ (Mower, 2017), Valentino’s inspiring womenswear designs creates a unique and appealing aesthetic catering to a target market of fashion-concerned ‘women in their 30s or 40s or even younger’ (Stefano Sassi, 2015; cited by Chen, 2015). figure 8: market sector diagram

figure 9: a Valentino Rockstud Untitled advertisement

figure 10: the Valentino Rockstud Untitled website banner

When considering Valentino’s product mix, it should be noted that they offer goods across two product lines: menswear and womenswear, similar to Forever 21. However, Valentino offer a lower variety of product types (figure 11), each with lower width and depth (figure 12) than Forever 21 to ignite a connotation of exclusivity, causing the products to be more appealing to the conspicuous consumer, with ‘dreams of luxury’ translating to ‘purchase acts’. (Dubois and Paternault, 1995).

PRODU PRODUCT LINE womenswear

PRODUCT TYPE apparel

PRODUCT TYPE • dresses • coats & outerwear • t- s h i r t s & s w e a t s h i r t s • shirts & tops • j u m p e r s & c a rd i g a n s • skirts • trousers

PRODUCT TYPE bags

PRODUCT TYPE • tote bags • s h o u ld e r b a g s • c ro s s b o d y b a g s • handbags • backpacks • clutches

figure 11: Valentino’s product mix, correct as of 26th March 2017

PRODUCT TYPE shoes

PRODUCT TYPE • pumps & heels • b a l le r i n a s & f l a t s • sandals • boots • trainers • l a c e - u p s & lo a f e r s • wedges

PRODUCT TYPE accessories

PRODUCT TYPE • s m a l l le a t h e r g o o d s • j e w e l le r y • soft accessories • eyewear • fragrances

CT MIX PRODUCT LINE menswear

PRODUCT TYPE a p p a re l

PRODUCT TYPE • coats & outerwear • t- s h i r t s & s w e a t s h i r t s • shirts & tops • j u m p e r s & c a rd i g a n s • trousers • beachwear

PRODUCT TYPE bags

PRODUCT TYPE • backpacks • tote bags • c ro s s b o d y b a g s • clutches

PRODUCT TYPE shoes

PRODUCT TYPE • trainers • l a c e - u p s & lo a f e r s • wedges

PRODUCT TYPE accessories

PRODUCT TYPE • s m a l l le a t h e r g o o d s • j e w e l le r y • soft accessories • eyewear • fragrances

figure 12: Valentino’s coats and jackets product width and depth, correct as of 26th March 2017

PRODUC e m b r o i d e re d varsity j a c ke t

e m b ro i d e re d cotton j a c ke t

SIZE UK 6

SIZE UK 8

SIZE UK 10

PRODUCT DEPTH

compact wool cape

b i ke r j a c ke t

f e lt v a r s i t y j a c ke t

embroidered j a c ke t

SIZE UK 6

SIZE UK 8

camel coat

SIZE UK 6

SIZE UK 8

In relation to the chosen product, the product width and depth of the womenswear coats and jackets product type was analysed. It must be noted that the depth variants displayed are those indicated on the website, and are therefore the size variants left available, rather than the original availability of sizes: Valentino‘s ready-to-wear womenswear collections are available in UK sizes 4-12. The limited size availability and lack of inclusion of plus sizing has been reported to be connotated with ‘elitism’ and allows the brand to limit and predetermine the consumers able to wear their products and further enhance this notion of exclusivity related to the luxury market. (Mason, 2015) Furthermore, there are no colour variants, as are often seen in high street stores, further enhancing the exclusivity of the goods and limited availability.

SIZE UK 8

tre

T W I DT H

ench coat

SIZE UK 6

peacoat

studded varsity j a c ke t

SIZE UK 6

SIZE UK 8

SIZE UK 10

SIZE UK 12

SIZE UK 8

SIZE UK 10

le a t h e r j a c ke t 1 le a t h e r j a c ke t 2

f i e ld j a c ke t

s a f a r i j a c ke t

SIZE UK 6

SIZE UK 8

SIZE UK 6

SIZE UK 8

SIZE UK 10

VALENTINO womenswear collections are available in UK sizes 4-12

c o t t o n j a c ke t

SIZE UK 10

atual product: fabrics, features etc....

BRAND DESCRIPTION “Inspired by Japanese “Wabisabi” philosophy, the “Rockstud Untitled” project presents a series of simple but satorial garments featuring Valentino’s signature studs”

figure 13: Valentino Rockstud Untitled Leather Jacket

19 Composition: • Outer: 100% lambskin leather • Lining: 100% silk Care: • Specialist clean only Measurements: • Length: 20.5” Fit: • Fit runs smaller than true size • Cropped fit Sizes available: • UK 4 • UK 6 • UK 8 • UK 10 • UK 12 Country of origin: • Italy Features: • Mandarin collar • Zipped side pockets • Straight front fastening zip • Additional button fastening • Stud detailing • Zipped cuffs • Belt buckles at the back (Valentino, 2017 : MyTheresa, 2017)

OBSERVATIONS • Leather was exceptionally soft, despite its heavy-duty feel • The jacket was heavier than expected, but the weight was not unusual or offputting • Zips were smooth and did not snag • All metal hardware appeared polished • Leather was smooth • Jacket was lined well • Each seam was finished well with no apparent flaws or faults

20 AUGMENTED PRODUCT

emotional appeal

TANGIBLE PRODUCT zip fastening

handcrafted

social status

Valentino label

silk lined

CORE PRODUCT a jacket

luxury packaging 14 day returns policy

zip pockets

personal shopping experience

classic style real leather

exclusivity

complimentary tailoring figure 14: total product concept diagram for the Valentino Rockstud Untitled Leather Jacket

Beyond the physical attributes of the product, are the intangible attributes (figure 14). Levitt stated that ‘consumers don’t buy products or product attributes... they purchase benefits and emotional meaning.” (1980) This is particularly true of luxury goods as the high price point can be validated by the emotional response alongside the physical attributes.

21 In accordance with Maslow’s Hierarchy of Needs (1943) (figure 15), this jacket can be considered an Esteem Need. Fashion and clothing choices carry social semiotics (Van Leeuwen, 2004) and help to determine the class, status and subculture of the wearer. Luxury goods appear to have strong ‘social function’ causing the ‘social acceptance’ of the wearer to a different group. (Weidmann et al, 2007). When considered with Veblen’s theory of conspicuous consumption, it can be assumed that this luxury jacket is purchased in order to assert wealth and status through consumption. (Basman et al, 1988). Overall, the perceived value of the product, including augmented benefits and social consequences validates the higher price point of the garment. (Weidmann et al, 2007)

figure 15: Maslow’s Hierarchy of Needs

PRICE

With regards to Valentino’s pricing strategy, it can be concluded that two main methods of pricing are employed: cost-based pricing and competition-based pricing.

figure 16: price breakdown

Cost-based pricing is defined as ‘the cost of raw materials, labour and overheads, and adding an amount to cover profit in order to arrive at the selling price’. (Easey, 2009) (figure 16) Several factors of Valentino’s leather jacket lead to expensive manufacturing costs, including real lambskin leather, handcrafting, manufacturing in Italy and silk lining. Furthermore, their business overheads will be a costly aspect of the company. Finally, it is necessary for the markup of Valentino goods to be high as they operate on a low-sales highmarkup basis to be profitable.

VALENTINO £3280

£4,100.00 £4,000.00

Price of Jacket

£3,900.00 £3,800.00 £3,700.00 £3,600.00 £3,500.00 £3,400.00 £3,300.00 £3,200.00 £3,100.00 Valentino Alexander Givenchy Balmain McQueen

Louis Vuitton

Saint Tom Ford Laurent

Gucci

Brand

figure 17: a graph showing the price of the Valentino leather jacket and similar competitors’ jackets

As a luxury clothing retailer, Valentino must compete for market share and sales; therefore, goods are also priced on a competition-based strategy creating competitive advantage, undercutting the prices of their competitors (figure 17). (Posner, 2015).

£3,600 figure 18: Louis Vuitton leather jacket

24 exit price: £6000 £3877.50

COATS entry price: £1755 exit price: £5225

£3727.50

DRESSES entry price: £1320 exit price: £3430

£2130

BAGS entry price: £830 exit price: £2435

£1767.50

SKIRTS entry price: £1100 exit price: £1940

£1275

TOPS entry price: £610 exit price: £1230

£1055

JUMPERS entry price: £880 exit price: £1195

£887.50

TROUSERS entry price: £580 exit price: £870

£870

SWEATSHIRTS entry price: £870 exit price: £880

£702.50

T-SHIRTS entry price: £525 exit price: £785

£465

SCARVES entry price: £145

figure 20: Valentino biker jacket, the product of highest value

exit price: £690 £427.50

PURSES entry price: £165 exit price: £655

£377.50

JEWELLERY entry price: £100 exit price: £555

£372.50

SHOES entry price: £190 exit price: £290

£224

EYEWEAR entry price: £158 exit price: £130

£130

TIGHTS entry price: £130 exit price: £105

£87.50

FRAGRANCE entry price: £70

figure 19: Valentino pricing architecture, correct as of 19th March 2017

figure 21: Valentino fragrance, the product of lowest value

When examining Valentino’s pricing architecture (of womenswear) (figure 19), it is apparent that coats are their most expensive goods, perhaps due to the more complex manufacturing process and the additional material required to create these goods. This is also not unusual, with Forever 21’s price architecture showing coats to be their most expensive product types.

25 £6000

BIKER JACKET

£4270

VARSITY JACKET

£3280

LEATHER JACKET

£3190

LEATHER JACKET

£3020

VARSITY JACKET

£2915

WOOL CAPE

£2835

CAMEL COAT

£2635

EMBROIDERED JACKET

£2445

COTTON JACKET

£2205

TRENCH COAT

£2080

SAFARI JACKET

£2045

COTTON JACKET

£1860

PEACOAT

£1755

VARSITY JACKET

£1755

FIELD JACKET

figure 22: Valentino coats and jackets pricing architecture, correct as of 19th March 2017

chosen product

To further gage the position of the chosen garment, the architecture of the coats and outerwear product type was explored (figure 22). From this it is apparent that the chosen studded leather jacket is one of Valentino’s more premium products currently offered, this is due to the more premium materials used, than those of lower jackets and the additional ornamentation.

figure 23: Valentino field jacket, the jacket with the lowest value

26 figure 24: a map of the world

A global corporation with both bricks-and-mortar stores and an e-commerce site, Valentino operates directly in Europe, America, Africa, Asia and Oceania, with boutiques in many countries within these continents (Valentino, 2017). They must, therefore, have distribution channels across the world to ensure products reach consumers regardless of geographical location. As a luxury store, Valentino will operate on a exclusive distribution basis, a traditional operation, without using intermediaries (figure 25). (Easy, 2009 : Jackson and Shaw, 2009).

manufacturer

retailer

figure 25: a basic distribution chain

consumer

28 barneys Bergdorf goodman BROWNS FARFETCH flannels HARRODS HARVEY NICHOLS

figure 26: Valentino’s concession on Selfridges’ website

LIBERTY LUISA VIA ROMA MATCHES FASHION MY THERESA NET-A-PORTER SELFRIDGES

Furthermore, Valentino operate concessions in several department stores globally and online department stores (see left, figure 26 and figure 27), increasing their accessibility to their target consumers, attracting ‘high concentrations of overseas visitors, many of whom spend considerable sums of money’. (Easey, 2009) Selling in department stores introduces another route to market, without detracting from the exclusivity of the products, as often only limited ranges are stocked in department stores.

figure 27: Harrods, London

STORE VISIT

32 With regards to the place and physical position of the jacket itself, it was hard to determine because, as of 5th April 2017, the jacket had been removed from the shop floor of the Sloane Street Boutique; however, much of the Rockstud Untitled collection was still displayed. The collection filled a sizeable room in the basement floor of the boutique (which is where the jacket had previously been). Whilst this may not appear to be at the forefront of the store, as would be expected of a premium piece and a bestseller, the underground room highlighted a sense of exclusivity and privacy. To further enhance the exclusive appeal, the room was laid out spaciously with a central mannequin and rails lining the edge of the room, unlike Forever 21â&#x20AC;&#x2122;s chaotic and crammed layout.

figure 28: a Valentino store interior

figure 29: Valentino Sloane Streetâ&#x20AC;&#x2122;s shop front

Moreover, the boutique was in an easily accessible region of Central London. Furthermore, Sloane Street is famed for its designer shopping and therefore will attract an audience similar to Valentinoâ&#x20AC;&#x2122;s target market. The neighbouring stores include Dolce and Gabbana, Gucci and Salvadore Ferragamo.

figure 30: a Valentino advertisement

35 Successful promotion strategies are a combination of a number of methods and techniques, simplified into the ‘overarching headings’ of the ‘promotional mix’. (Posner, 2015). Whilst Valentino does not employ all five categories, they have achieved a balance of promotional activities to reach their target audience.

figure 31: the promotional mix

Valentino’s advertising channels are chosen to ensure effective and targeted promotion. The publications chosen for their print media target affluent women interested in fashion and appearance. For example, publication giant Condenast reports their famed magazine, Vogue, has more than a million British female readers, with an average age of 33. (Condé Nast, 2014). Other magazines featuring Valentino advertisements include Elle, the ‘number 1 fashion magazine brand’ with more than ‘26 million readers worldwide’, the median age of which is 37.7 (Elle, 2015). Valentino is successfully targeting the slightly older, affluent women who expresses interest in keeping up with high fashion.

figure 32: a Valentino advertisement

figure 33: a Valentino advertisement

Public relations are an extremely cost effective method of promotion but can be unreliable, as it is often in the hands of the press rather than the brand. (Posner, 2015). The recent Vogue editorial (figure 34) features both a Valentino jacket and Valentino trousers; and would have come at no extra cost to Valentino, providing cost -effective promotion.

figure 34: an editorial in Vogue featuring two Valentino products

figure 35: a Valentino advertisement

Valentino succesfully combines all of these promotional elements to create a balanced and successful promotional strategy, efficient and effective in reaching their desired audience.

figure 36: a Forever 21 advertisement

41 Founded in 1984, Forever 21 quickly rose to success in America, where it is now considered the â&#x20AC;&#x2DC;fifth largest speciality retailerâ&#x20AC;&#x2122; (Forever 21, no date). A recent addition to British high streets, the brand opened its first UK store in Birmingham in 2010 with plans to expand throughout Britain (BBC, 2010). The chain now has sizeable stores in London and Liverpool, with plans for further expansion. (Forever 21, no date). The brand currently operates across North America, Europe and Asia, earning its title as a global budget brand. (Forever 21, no date) Their affordable prices and relatively quick adoption of trends has attracted a large audience of fashionconscious teenagers and young adults. However, their astonishingly low prices has led to accusations of unethical manufacturing causing waves of bad press and publicity. (Schlossberg, 2015) figure 37: market sector diagram

42 figure 38: a Forever 21 advertisement

figure 39: a Forever 21 advertisement

With a larger variety of products on offer, all at a greater depth and at greater availabilty (figure 40 and figure 41), Forever 21 reaches a large market sector. Forever 21â&#x20AC;&#x2122;s products do not offer exclusivity as Valentinoâ&#x20AC;&#x2122;s do, but instead provide affordable fashion for the masses.

PRODUC PRODUCT LINE womenswear

PRODUCT TYPE c lo t h i n g

PRODUCT TYPE • dresses • jeans • skirts • t ro u s e r s & le g g i n g s • tops • jumpsuits & playsuits • hoodies & sweatshirts • j u m p e r s & c a rd i g a n s • lingerie • swimwear

PRODUCT TYPE accessories

PRODUCT TYPE • hats • phone accessories • scarves • b e lt s • eyewear • beauty • hair accessories • socks & tights • bags

figure 40: Forever 21’s product mix, correct as of 26th March 2017

PRODUCT TYPE j e w e l le r y

PRODUCT TYPE • n e c kl a c e s • earrings • b r a c e le t s • rings • b o d y j e w e l le r y • watches • pins and brooches

PRODUCT TYPE shoes

PRODUCT TYPE • boots • heels & wedges • flats • lo a f e r s • trainers • sandals • slippers

CT MIX PRODUCT LINE menswear

PRODUCT TYPE c lo t h i n g

PRODUCT TYPE • coats & outerwear • hoodies & sweatshirts • jeans • joggers • j u m p e r s & c a rd i g a n s • s h i r t s & p o lo s • shorts • t ro u s e r s & c h i n o s • t- s h i r t s • vests

PRODUCT TYPE shoes

PRODUCT TYPE • trainers • boots

PRODUCT TYPE accessories

PRODUCT TYPE • hats • eyewear • watches • scarves • g lo v e s • socks

figure 41: Forever 21’s leather look coats and jackets product width and depth, correct as of 26th March 2017

PRODUC

PRODUCT DEPTH

graphic moto j a c ke t

f a u x le a t h e r m o t o z i p j a c ke t

studded moto j a c ke t

f a u x le a t h e r m o t o j a c ke t

SIZE SMALL

SIZE MEDIUM

SIZE LARGE

With a product width of over 250 products in the Coats and Jackets product type alone, the product depth was instead analysed by refining this selection to ‘leather look jackets’ (figure 41) (Forever 21, 2017) A small is a UK 8/10, a medium a 12, and a large a 14, according to Forever 21, so from that

viewpoint they have a similar selection of depth variants. However, it must be considered that Forever 21 also produce a range of plus size clothes for women sized 16-22 and are therefore more inclusive than Valentino. The data used to formulate this table was collected from the website; therefore, similar to

faux le a t h e r j a c ke t

SIZE LARGE

varsity striped mo j a c ke t

SIZE LARGE

the Valentino table, and reflects only the available variants as of the 26th April. This demonstrates the greater availability of their products in comparison to Valentino because Forever 21 do not maintain an air of exclusivity and intend to optimise their sales to increase profits.

C T W I DT H

oto

studded faux le a t h e r j a c ke t

f lo r a l f a u x le a t h e r j a c ke t

patch graphic moto j a c ke t

l a c e d f a u x le a t h e r m o t o j a c ke t

metallic m o t o j a c ke t

metallic faux le a t h e r j a c ke t

SIZE SMALL

SIZE MEDIUM

SIZE LARGE

FOREVER 21 womenswear collections are available in UK sizes 8-14 WITH AN ADDITIONAL PLUS SIZE RANGE FOR UK SIZES 16-22

BRAND DESCRIPTION â&#x20AC;&#x153;A faux leather moto jacket featuring a cropped fit, notched lapels, an asymmetrical zipper front, front slant pockets, high-polish studded accents, and long sleeves.â&#x20AC;?

figure 42: Forever 21 Studded Faux Leather Jacket

49 Composition: • Body: 82% rayon, 18% polyester • Coating: 100% polyurethane • Lining: 100% polyester Care: • Hand wash cold Fit: • Generous fit • Cropped fit Measurements: • Length: 18” • Chest: 34” • Waist: 30” Sleeve length: 23.5” Sizes available: • Small • Medium • Large Country of origin: • China Features: • Asymmetrical front zip • Lapels • Silver-toned hardware • Studded accents on collar and above zip (Forever 21, 2017)

OBSERVATIONS • Garment feels plasticy • Studs glued without care, some where wonky • Front zip snagged two thirds of the way up • Faux leather was smooth and unflawed • Jacket was light but stiff • Product felt cheap but looked of relative quality • Pockets were small and difficult to open

50 AUGMENTED PRODUCT

TANGIBLE PRODUCT

water resistant

zip fastening easy care

CORE PRODUCT

fashionable

a jacket

faux leather

pockets

28 day returns policy

figure 43: total product concept diagram for the Forever 21 Studded Faux Leather Jacket

This leather jacket, unlike Valentino’s, has less valuable intangible attributes (figure 43), associated with its lower monetary value, and therefore the lower perceived value required to validate such a price. (Weidmann et al, 2007) The perception of value differs with age, and Forever 21’s younger consumers value £37 as more expensive than Valentino’s elder consumers. (Charles and Hurst, 2003)

51 Like the Valentino jacket, this Forever 21 jacket can provide its, much younger, target audience with acceptance and respect from peers and specific social groups; fashion choices can affect the protection of one’s social position, which is particularly evident in young people. (Gifford-Smith and Brownell, 2002). Therefore, this jacket meets the esteem needs of Maslow’s Hierarchy of Needs (1943) (figure 44).

figure 44: Maslow’s Hierarchy of Needs

As a cheaper retailer than Valentino, Forever 21 operate on a high volume of sales at a low markup to gain profit, resulting in affordable prices that appeal to the mass market.

PRICE

CO N S U M E R BASED PRICING

COMPETITION BASED PRICING

Forever 21 employ two main methods of pricing, to suit their consumersâ&#x20AC;&#x2122; needs: competition-based pricing and consumerbased pricing; in addition to cost-based pricing (figure 45).

CO S T BASED PRICING

figure 45: a diagram showing the elements of deciding a pricing strategy

Consumer based pricing considers the customerâ&#x20AC;&#x2122;s perception of the price and requires a strong understanding of the target market sector. Prices are balanced in view of the younger customer and the knowledge of their lower disposable income. With regards to cost, the production cost of the jacket will have been cheaper than that of the Valentino jacket, due to the cheaper materials, lower labour costs in China and machine manufacture. However, higher transport costs will have been incurred.

FOREVER 21 ÂŁ37

figure 46: a graph showing the price of the Forever 21 jacket and similar competitorsâ&#x20AC;&#x2122; jackets

Affordable clothing is a vast market with great competition, therefore it is important that Forever 21 balance their prices with the competition and undercut them where possible. The graph (figure 46) demonstrates that, aside from Boohoo, whose reputation for their quality of clothing is low, Forever 21 have undercut the other brands providing them with competitive advantage.

NEW LOOK ÂŁ49.99 figure 47: New Look studded faux leather jacket

exit price: £65 £40.50

COATS AND JACKETS entry price: £16 exit price: £47

£25.25

dresses entry price: £3.50 exit price: £39

£23.50

jeans entry price: £8 exit price: £37

£21

skirts entry price: £5 exit price: £39

£21

trousers entry price: £3 exit price: £39

£20.50

tops entry price: £2 exit price: £28

£19.50

jumpsuits entry price: £11 exit price: £35

£18.50

shoes entry price: £2 exit price: £35

£18.25

bags entry price: £1.50 exit price: £30

£17.75

jumpers & cardigans entry price: £5.50 exit price: £24

£16.50

sweatshirts entry price: £9 exit price: £28

£15.50

shorts

Similar to Valentino, Forever 21’s most expensive product type is coats and jackets (figure 49). However, as a mass market brand targeted at a younger audience £65 (figure 48) may be considered too high a price point for teenagers and their low disposable income; on average, in 2009, teenagers had a weekly spend of approximately £15 (Prabhakar, 2009), which will have increased slightly through the years, but not dramatically. Therefore, the most expensive coat could be considered an investment piece for the target audience; possibly having a negative impact on sales

entry price: £3 exit price: £28 £15

lingerie entry price: £2 exit price: £25

£14.25

swimwear entry price: £3.50 exit price: £23

£13

hats entry price: £3 exit price: £18

£10

JEWELLERY entry price: £2 exit price: £12

£7.50

SCARVES entry price: £3 exit price: £11

£7

BELTS entry price: £3 exit price: £9

figure 48: Forever 21’s embroidered duster coat, the product of highest value

£6.75

EYEWEAR entry price: £4.50 exit price: £11

£6

BEAUTY entry price: £1 exit price: £6

£3.75

SOCKS & TIGHTS entry price: £1.50

figure 49: Forever 21 pricing architecture, correct as of 19th March 2017 figure 50: Forever 21’s polka dot socks, the product of lowest value

55 £37

£37

£34

£30

figure 51: Forever 21’s Varsity Striped Moto Jacket, the leather look jacket of lowest value

studded faux leather

chosen product

studded moto

floral faux leather

faux leather

£30

faux leather moto

£30

graphic moto

£30

metallic moto

£30

patch graphic moto

£28

laced faux leather

£27

metallic faux leather

£24

varisty striped moto

As with product depth, the architecture of the leather look jackets was further analysed (figure 52) and it was determined that the chosen jacket was the most expensive in this refined analysis. This can be validated by the additional embellishment on the jacket, and therefore the further cost incurred.

figure 52: Forever 21 pricing architecture for leather look jackets, correct as of 26th April 2017

56 figure 53: a diagram of a supply chain with an intermediary wholesaler

MANUFACTURERS

RETAILERS Operating across three different continents, Forever 21 must consider their channels of distribution to ensure products are available to their consumers regardless of geographical location. Firstly, it must be noted that the range plan does differ slightly between country; however, the key pieces remain the same. (Forever 21, 2017). This stock strategy is in place to ensure the product meets the needs of consumers, with regards to factors such as temperature and culture. As a large retailer with high volumes of stock, Forever 21 operateS through a wholesaler (Jackson and Shaw, 2009) (figure 53), simplifying the transfer from manufacturer to retailer. Therefore, they follow a selective distribution pattern, distributing products from the wholesaler to their stores across the world.

figure 54: Forever 21’s home page

In addition to their stores, Forever 21’s products are available on their e-commerce website (figure 54), providing additional accessibility for those unable to reach their stores. This complicates transportation and distribution further, as individual orders have to reach customers. It should be noted that Forever 21’s delivery policy is less advanced than other online clothing retailers, for example, ASOS offer next day delivery for orders placed before midnight (ASOS, 2017), whereas Forever 21’s only delivery option is 3-5 days in the United Kingdom (Forever 21, 2017) which could be having a detrimental effect on Forever 21’s online sales.

figure 55: London Oxford Street

STORE VISIT 05.04.2017

figure 56: the interior of a Forever 21 store

figure 57: Oxford Street Forever 21â&#x20AC;&#x2122;s shop front

figure 58: a map of the Oxford Street Forever 21 and the surrounding area

The Oxford Street store is situated directly opposite Bond Street station (figure 58), ensuring high levels of footfall. Furthermore, it is surrounded by a number of high street chain retailers such as H&M and Gap. This is advantageous for Forever 21, as they share a similar target consumer to H&M and therefore, that specific area of Oxford Street will gain attention from the desired consumer. It is difficult to comment on the position of the jacket itself, within the store as, according to a sales assistant, the jacket had sold out in store. In general, the aesthetic of the store, in comparison to Valentino, could be considered chaotic, clothes were displayed over four tiers across the walls and there appeared to be a lot of products in a small space (figure 56). This is understandable when considering the business model: high volumes of sales at a low markup; therefore, meaning the more products on display the higher the chance of sales.

62 figure 59: a Forever 21 advertisment

63 With regards to the promotional mix (figure 60), Forever 21 balance elements of promotion to create an effective promotion strategy to reach their target consumer. Advertising is effective in gaining the interest and attention of the customer or potential customer, in accordance with the AIDA model (figure 61) (Rath et al, 2012). Forever 21 advertise in London bus shelters and on Underground station platforms, which is successful as the relatively young consumer with a small disposable income is likely to commute to school, university or work on public transport.

figure 61: the AIDA model

figure 60: the promotional mix

figure 62: Forever 21’s Instagram page

Social media use has been increasing steadily and in 2015 it was reported that 67.1% of young people ‘actively used social media’. (Richards et al, 2015) Therefore, Forever 21’s social media activity provides vital engagement between the retailer and the consumer.

figure 63: Forever 21â&#x20AC;&#x2122;s Facebook page

With approximately 13 million followers on social media platforms such as Instagram and Facebook (Instagram, 2017: Facebook, 2017) (figure 62 and 63), it is apparent that Forever 21â&#x20AC;&#x2122;s social media activity is received well and the brand are successfully engaging with their consumers. The brand share outfit inspiration, new products and sales announcements across the platforms to incite interest amongst their followers.

figure 64: Forever 21â&#x20AC;&#x2122;s Canadian website homepage during a sale

A short-term marketing tool, sales promotion provides benefits for both the brand and its consumers (Jackson and Shaw, 2009). Forever 21’s end of season sales offer ‘up to 50% off’ to customers (Forever 21, 2017) and provide the brand with the ability to clear old stock (figure 64). Further benefits include the attraction of new customers and the improvement of the conversion rate between footfall and purchasing. Direct marketing in the form of emails has been deemed ‘the most powerful tool for building customer relationships’. (Sterne and Priore, 2000). Forever 21 offer an email newsletter to customers who have signed up to such a benefit (figure 65). The newsletter features products, exclusive discounts and new launch previews adding an element of exclusivity to the mass market brand as well inciting desire and action with regards to the AIDA model, resulting in additional sales.

figure 65: an email newsletter from Forever 21

The cheaper product under examination, the Forever 21 Studded Faux Leather Jacket, demonstrates the speed at which fast fashion companies adopt high fashion trends which have disseminated into mainstream high street fashion through the trickle-down theory. (Sproles, 1981). This is apparent due to the popularity and history of the Valentino Rockstud range which has been providing studded goods for almost a decade (Beyfus, 2015) and has been adopted by other retailers. The Forever 21 jacket provides this element of style and sophistication to its own target market, allowing the trend to be achieved by those without the means or access to the Valentino jacket.

From this comparative analysis, it can be concluded that the differences in implementation of certain elements of the marketing mix prove the freedom available within the marketing mix. The two brands considered, Valentino and Forever 21, despite their differences in strategies, have understood their target consumer in a detailed manner so that they are able to target and engage with their desired consumer effectively. The success of this can be measured when considering the chosen products, leather and faux leather jackets that bare visual similarity, with the knowledge that, instore, both products had sold well, proving they appealed to the consumer. Conclusively, this report demonstrates how all fashion brands must carefully customise their marketing strategy through the elements of the marketing mix to achieve the success of the two aforementioned brands.

Recommendations for further study and expansion on the topic area include analysis of additional products from the same brand and the addition of another brand from the same sectors to further validate the findings. Furthermore, the addition of another brand from a bridging sector, such as an affordable luxury brand or a diffusion line would enhance this study, bringing a further dimension to the study and an avenue for additional comparison and contrast.

Market Level Channels of distribution

Global availability

Head office Product lines Additional ranges Price range of goods (across womenswear line) Approximate median value of goods (across womenswear line) Target consumer Returns policies Delivery prices and times

VALENTINO luxury ready-to-wear Haute Couture online instore concession in department stores Africa Americas Asia Australasia Europe

FOREVER 21 mass market high street online instore Asia Europe North America

Milan, Italy women men

Los Angeles, USA women men plus size

£70 - £6,000

£6 - £65

£3,035

£35.50

young to middle age adults (Reuters, 2008) 14 days standard shipping: (4-6 days) express shipping (1-3 days): £20

teenagers (Bhasin, 2013) 28 days collect in store (2-5 days): free standard delivery (2-5 days): £3.95

73 Brand

Forever 21

Product Name Price (GBP) Collection Material

Collection Sub-Collection Body fabric Coating Lining

Care instructions

Valentino Rockstud Untitled Leather Studded Faux Leather Jacket Jacket £37 £3,280 Rockstud Main collection Rockstud Untitled 82% Rayon, 18% Polyester 100% Lambskin Leather 100% Polyurethane 100% Polyester 100% Silk Hand wash cold Specialist clean only Small: UK 8/10 Medium: UK 12 Large: UK 14

UK 4 UK 6 UK 8 UK 10 UK 12

18”

20.5”

Product Features

Cropped fit Notched lapels Asymmetrical zip fastening Front slant pockets Studded accents

Side pockets Straight front fastening zip Additional button fastening Stud detailing Zipped cuffs Belt buckles at back

Made in

China

Italy

Sizes

Fit (Small)

Promotional Discounts

Garment Length

Discount Discount eligibility Students Promotional time frame All year round Price with discount applied

10%

£33.30

PRODUCT COMPARISON

Price Architecture Data of Valentino Womenswear Data correct as of 19th March 2017 Category

Entry Price Exit Price Midpoint Price

Coats and Outerwear

£1,755.00 £6,000.00

£3,877.50

Dresses

£1,320.00 £5,225.00

£3,272.50

£830.00 £3,430.00

£2,130.00

£1,100.00 £2,435.00

£1,767.50

Shirts and Tops

£610.00 £1,940.00

£1,275.00

Jumpers and Cardigans

£880.00 £1,230.00

£1,055.00

Trousers

£580.00 £1,195.00

£887.50

Sweatshirts

£870.00

T-shirts

£525.00

£880.00

£702.50

Scarves

£145.00

£785.00

£465.00

Purses

£165.00

£690.00

£427.50

Jewellery

£100.00

£655.00

£377.50

Shoes

£190.00

£555.00

£372.50

Eyewear

£158.00

£290.00

£224.00

Tights

£130.00

£70.00

£105.00

£87.50

Bags Skirts

Fragrance

Price Architecture Data of Valentino Womenswear Coats and Outerwear Category Data correct as of 19th March 2017 Product Name

Price

Biker jacket with rhinestones

£6,000.00

Varsity jacket in embroidered felt

£4,720.00

Rockstud Untitled leather jacket

£3,280.00

Rockstud Untitled leather jacket (no studs)

£3,190.00

Embroidered varsity jacket

£3,020.00

Compact wool cape

£2,915.00

Rockstud Untitled camel coat

£2,835.00

Embroidered jacket in gabardine

£2,635.00

Embroidered cotton jacket

£2,445.00

Rockstud Untitled Trench Coat

£2,205.00

Embroidered safari jacket

£2,080.00

Embroidered cotton jacket

£2,045.00

Rockstud Untitled Peacoat

£1,860.00

Studded varsity jacket

£1,755.00

Rockstud Untitled field jacket

£1,755.00

Price Architecture Data of Forever 21 Womenswear Data correct as of 19th March 2017 Category Coats and Jackets

Exit Entry Price Price

Midpoint Price

£16.00

£65.00

£40.50

Dresses

£3.50

£47.00

£25.25

Jeans

£8.00

£39.00

£23.50

Skirts

£5.00

£37.00

£21.00

Trousers and Leggings

£3.00

£39.00

£21.00

Tops

£2.00

£39.00

£20.50

£11.00

£28.00

£19.50

Shoes

£2.00

£35.00

£18.50

Bags

£1.50

£35.00

£18.25

Jumpers and Cardigans

£5.50

£30.00

£17.75

Hoodies and Sweatshirts

£9.00

£24.00

£16.50

Shorts

£3.00

£28.00

£15.50

Lingerie and Sleepwear

£2.00

£28.00

£15.00

Swimwear and Beachwear

£3.50

£25.00

£14.25

Hats

£3.00

£23.00

£13.00

Jewellery

£2.00

£18.00

£10.00

Scarves

£3.00

£12.00

£7.50

Belts

£3.00

£11.00

£7.00

Eyewear

£4.50

£9.00

£6.75

Beauty

£1.00

£11.00

£6.00

Socks and Tights

£1.50

£6.00

£3.75

Jumpsuits and Playsuits

Price Architecture Data of Forever 21 Womenswear Leather Look Jackets Data correct as of 26th April 2017 Product Name Price Studded faux leather jacket £37.00 Studded moto jacket £37.00 Floral faux leather jacket £34.00 Faux leather jacket £30.00 Faux leather moto zip jacket £30.00 Graphic moto jacket £30.00 Metallic moto jacket £30.00 Patch graphic moto jacket £30.00 Laced faux leather moto jacket £28.00 Metallic faux leather jacket £27.00 Varsity striped moto jacket £24.00

76 Figure 1:

Front page Comprised of images from: Pinterest. no date. Leather background. [Online]. [Accessed 30 April 2017]. Available from: https://uk.pinterest.com/pin/546905948476762507/ Valentino. 2017. Valentino Rockstud Untitled Leather Jacket. [Online]. [Accessed 30 April 2017]. Available from: https://www.valentino. com/gb/jackets-and-coats_cod41644259kw.html Forever 21. 2017. Studded Faux Leather Jacket. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21. com/UK/Product/Product.aspx?Br=F21&Category=outerwear_coats-and-jackets&ProductID=2000212926&VariantID=02&gclid=CjwKEAjw85DIBRCy2aT0hPmS1jkSJAC1m9UvvZHW5Kf80BFxh0JLuCZSNpL34xFehpjrIDSaVUHfmBoCzZ7w_wcB

Figure 2:

Valentino Rockstud Untitled Trainers End Clothing. 2017. Valentino Rockstud Untitled Sneaker. [Online]. [Accessed 30 April 2017]. Available from: https://www.endclothing. com/hk/valentino-rockstud-untitled-sneaker-ly0s0931bxe-0no.html

Figure 3:

Valentino Rockstud Untitled Leather Jacket Valentino. 2017. Valentino Rockstud Untitled Leather Jacket. [Online]. [Accessed 30 April 2017]. Available from: https://www.valentino. com/gb/jackets-and-coats_cod41644259kw.html

Figure 4:

a Valentino store interior Pinterest. no date. Valentino store. [Online]. [Accessed 30 April 2017]. Available from: https://uk.pinterest.com/explore/valentino-store/

Figure 5:

Forever 21 Studded Faux Leather Jacket Forever 21. 2017. Studded Faux Leather Jacket. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21. com/UK/Product/Product.aspx?Br=F21&Category=outerwear_coats-and-jackets&ProductID=2000212926&VariantID=02&gclid=CjwKEAjw85DIBRCy2aT0hPmS1jkSJAC1m9UvvZHW5Kf80BFxh0JLuCZSNpL34xFehpjrIDSaVUHfmBoCzZ7w_wcB

77 Figure 6:

a Forever 21 store front Forever 21. 2017. Store locator. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21.com/UK/Mobile/Store/StoreLocator.aspx?br=f21

Figure 7:

a Valentino advertisement Aldenton, S. 2015. Valentino continues with otherworldly campaign formula to success for A/W 15. [Online]. [Accessed 30 April 2017]. Available from: https://www.wgsn.com/blogs/valentino-continues-with-otherworldly-campaign-formula-to-success-for-aw-15/

Figure 8:

market sector pyramid Original figure with data from: Posner, H. 2015. Marketing Fashion: Strategy, Branding and Promotion. 2nd Edition. London: Laurence King Publishing Ltd.

Figure 9:

a Valentino Rockstud Untitled advertisement Morien, C. 2016. Valentino Rockstud Untitled. [Online]. [Accessed 30 April 2017]. Available from: http://www.defuzemag.co.uk/valentino-rockstud-untitled-defuze-magazine/

Figure 10:

the Valentino Rockstud Untitled website banner Valentino. 2017. Rockstud Untitled. [Online]. [Accessed 30 April 2017]. Available from: https://www.valentino.com/gb/shop/unisex/ untitled

Figure 11:

Valentinoâ&#x20AC;&#x2122;s product mix, correct as of 26th March 2017 Original figure with data from: Valentino. 2017. Valentino. [Online]. [Accessed 30 April 2017]. Available from: www.valentino.com

Figure 12:

Valentinoâ&#x20AC;&#x2122;s coats and jackets product width and depth, correct as of 26th March 2017 Original figure with data from: Valentino. 2017. Coats and Jackets. [Online]. [Accessed 30 April 2017]. Available from: w https://www. valentino.com/gb/shop/women/pret-a-porter/coats-outerwear

78 Figure 13:

Figure 14:

total product concept diagram for the Valentino Rockstud Untitled Leather Jacket Original figure with data from: Levitt, T. 1980. Marketing Success Through Differentiation â&#x20AC;&#x201C; of Anything. [Online]. [Accessed 26 April 2017]. Available from: https://hbr.org/1980/01/marketing-success-through-differentiation-of-anything

Figure 15:

Maslowâ&#x20AC;&#x2122;s Hierarchy of Needs Original figure with data from: Maslow, A. H. 1943. A Theory of Human Motivation. Virginia: Wilder publications inc.

Figure 16:

Price breakdown Original figure interpreted from: Easey, M. 2009. Fashion Marketing. 3rd Edition. Chichester: Wiley-Blackwell

Figure 17:

a graph showing the price of Valentino leather jacket and similar competitors jackets

Original image

Figure 18:

Louis Vuitton leather jacket

Louis Vuitton. 2017. Lambskin Biker Jacket. [Online]. [Accessed 30 April 2017]. Available from: http://uk.louisvuitton.com/eng-gb/ products/lambskin-biker-jacket-nvprod330103v

Figure 19:

Valentino pricing architecture, correct as of 19th March 2017 Original image with data from: Valentino. 2017. Valentino. [Online]. [Accessed 30 April 2017]. Available from: www.valentino.com

Figure 20:

Valentino biker jacket, the product of highest value

Valentino. 2017. Biker Jacket with Black Rhinestones. [Online]. [Accessed 30 April 2017]. Available from: https://www.valentino.com/ gb/jacket_cod41632409du.html

79 Figure 21:

Valentino fragrance, the product of lowest value

Valentino. 2017. Valentino Donna 50ml. [Online]. [Accessed 30 April 2017]. Available from: https://www.valentino.com/gb/valentino-edt_cod62000814ok.html

Figure 22:

Valentino coats and jackets pricing architecture, correct as of 19th March 2017

Original image with data from: Valentino. 2017. Coats and Jackets. [Online]. [Accessed 30 April 2017]. Available from: https://www. valentino.com/gb/shop/women/pret-a-porter/coats-outerwear

Figure 23:

Valentino field jacket, the jacket with the lowest value

Valentino. 2017. Rockstud Untitled Field Jacket. [Online]. [Accessed 30 April 2017]. Available from: https://www.valentino.com/gb/ pea-coat_cod41645573vp.html

Figure 24:

a map of the world

Pinterest. no date. Maps of the World. [Online]. [Accessed 30 April 2017]. Available from: https://uk.pinterest.com/explore/ world-map-wallpaper/

Figure 25:

a basic supply chain

Original image

Figure 26:

Valentino’s concession on Selfridges’ website

Selfridges. 2017. Valentino. [Online]. [Accessed 30 April 2017]. Available from: http://www.selfridges.com/GB/en/cat/valentino/womens/

Figure 27:

Harrods, London

Edwards-Freshwater. C. 2017. Harrods’ Made With Love Campaign. [Online]. [Accessed 30 April 2017]. Available from: http://www. luxworldwide.com/magazine/watches-and-jewellery/lux-news-harrods-made-love-campaign/

80 Figure 28:

a Valentino store interior Chipperfield, D. 2015. Valentino Rome flagship store. [Online]. [Accessed 30 April 2017]. Available from: https://davidchipperfield.com/ project/valentino_rome_flagship_store

Figure 29:

Valentino Sloane Streetâ&#x20AC;&#x2122;s shop front

Google maps. 2016. Valentino Sloane Street. [Online]. [Accessed 30 April 2017]. Available from: https://www.google.co.uk/ maps/@51.4992526,-0.159574,3a,75y,88.01h,83.84t/data=!3m7!1e1!3m5!1sfUFgx3WRFnbwigq_WriYuw!2e0!6s%2F%2Fgeo2.ggpht.com%2Fcbk%3Fpanoid%3DfUFgx3WRFnbwigq_WriYuw%26output%3Dthumbnail%26cb_client%3Dmaps_sv.tactile. gps%26thumb%3D2%26w%3D203%26h%3D100%26yaw%3D63.647945%26pitch%3D0%26thumbfov%3D100!7i13312!8i6656

Figure 30:

a Valentino advertisement

Cafaro, V. 2016. Valentino stages a dance performance for Fall 2016 Ad Campaign. [Online]. [Accessed 30 April 2017]. Available from: http://www.fashionisers.com/fashion-news/valentino-fall-2016-ad-campaign/

Figure 31:

the promotional mix

Original image with data from: Posner, H. 2015. Marketing Fashion: Strategy, Branding and Promotion. 2nd Edition. London: Laurence King Publishing Ltd.

Figure 32:

a Valentino advertisement

Brown, L. 2017. Valentino and Cristy Turlington. [Online]. [Accessed 30 April 2017]. Available from: http://www.instyle.com/fashion/ christy-turlington-valentino-pierpaolo-piccioli-interview

Figure 33:

a Valentino advertisement

Fashion Gone Rogue. 2015. Valentino gets ethereal for Spring 2015 ad campaign. [Online]. [Accessed 30 April 2017]. Available from: http://www.fashiongonerogue.com/valentino-gets-ethereal-spring-2015-ad-campaign/

81 Figure 34:

an editorial in Vogue featuring two Valentino products Vogue. 2017. What to wear, where: Big things, small packages. [Online]. [Accessed 26 April 2017]. Available from: https://search.proquest.com/vogue/docview/1868531049/B91D3A622DAA4DC3PQ/5?accountid=14664

Figure 35:

a Valentino advertisement

Figure 36:

a Forever 21 advertisement

New York Model Management. 2013. Forever 21 Campaign. [Online]. [Accessed 30 April 2017]. Available from: http://newyorkmodelsblog.com/jen-dau-forever-21-campaign/

Figure 37:

market sector pyramid Original figure with data from: Posner, H. 2015. Marketing Fashion: Strategy, Branding and Promotion. 2nd Edition. London: Laurence King Publishing Ltd.

Figure 38:

a Forever 21 advertisement Kilkus, C. 2011. Forever 21 Campaign. [Online]. [Accessed 30 April 2017]. Available from: http://chriskilkusphoto.com/forever-21-campaign-2/

Figure 39:

a Forever 21 advertisement Forever 21. 2017. Banner. [Online]. [Accessed 30 April 2017]. Available from: https://www.facebook.com/Forever21EU/?brand_ redir=86746184549

Figure 40:

Forever 21â&#x20AC;&#x2122;s product mix, correct as of 26th March 2017 Original image with data from: Forever 21. 2017. Forever 21. [Online]. [Accessed 30 April 2017]. Available from: https://www.facebook.com/Forever21EU/?brand_redir=86746184549

82 Figure 41:

Forever 21’s leather look coats and jackets product width and depth, correct as of 26th March 2017 Original image with data from: Forever 21. 2017. Leather look coats and jackets. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21.com/UK/Product/Category.aspx?br=f21&category=outerwear_leather-suede

Figure 42:

Figure 43:

total product concept diagram for the Forever 21 Studded Faux Leather Jacket Original figure with data from: Levitt, T. 1980. Marketing Success Through Differentiation – of Anything. [Online]. [Accessed 26 April 2017]. Available from: https://hbr.org/1980/01/marketing-success-through-differentiation-of-anything

Figure 44:

Maslow’s Hierarchy of Needs Original figure with data from: Maslow, A. H. 1943. A Theory of Human Motivation. Virginia: Wilder publications inc.

Figure 45:

a diagram showing the elements of deciding a pricing strategy

Original image

Figure 46:

a graph showing the price of the Forever 21 jacket and similar competitors’ jackets

Original image

Figure 47:

New Look studded faux leather jacket

New Look. 2017. Anita and Green Studded Leather Jacket. [Online]. [Accessed 2017]. Available from: http://www.newlook.com/shop/ womens/jackets-and-coats/anita-and-green-dark-green-studded-leather-look-jacket-_520519938

83 Figure 48:

Forever 21’s embroidered duster coat, the product of highest value

Forever 21. 2017. Satin Embroidered Longline Coat. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21.com/UK/ Product/Product.aspx?BR=f21&Category=outerwear_coats-and-jackets&ProductID=2000210901&VariantID=

Figure 49:

Forever 21 pricing architecture, correct as of 19th March 2017

Original image with data from: Forever 21. 2017. Forever 21. [Online]. [Accessed 30 April 2017]. Available from: www.forever21.com

Figure 50:

Forever 21’s polka dot socks, the product of lowest value

Forever 21. 2017. Polka dot socks. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21.com/UK/Product/Category.aspx?br=f21&category=acc_legwear

Figure 51:

Forever 21’s Varsity Striped Moto Jacket, the leather look jacket of lowest value

Forever 21. 2017. Varsity striped moto jacket. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21.com/UK/Product/Product.aspx?br=F21&category=outerwear_coats-and-jackets&productid=2000230637

Figure 52:

Forever 21 pricing architecture for leather look jackets, correct as of 26th April 2017 Original image with data from: Forever 21. 2017. Leather look coats and jackets. [Online]. [Accessed 30 April 2017]. Available from: http://www.forever21.com/UK/Product/Category.aspx?br=f21&category=outerwear_leather-suede

Figure 53:

a diagram of a supply chain with an intermediary wholesaler

Brassington, F. and Pettitt, S. 2003. Principles of Marketing. New Jersey: Prentice Hall

Figure 54:

Forever 21’s home page

Forever 21. 2017. Forever 21. [Online]. [Accessed 30 April 2017]. Available from: www.forever21.com

84 Figure 55:

London Oxford Street

TripAdvisor. no date. London Oxford Street. [Online]. [Accessed 30 April 2017]. Available from: https://www.tripadvisor.co.uk/Attraction_Review-g186338-d189789-Reviews-Oxford_Street-London_England.html

Figure 56:

the interior of a Forever 21 store

Pinterest. no date. Forever 21. [Online]. [Accessed 30 April 2017]. Available from: https://uk.pinterest.com/ pin/426505027184160486/

Figure 57:

Oxford Street Forever 21â&#x20AC;&#x2122;s shop front

Google maps. 2017. Forever 21 Oxford Street. [Online]. [Accessed 30 April 2017]. Available from: https://www.google.co.uk/ maps/place/Forever+21/@51.5144206,-0.1495623,15z/data=!4m2!3m1!1s0x0:0x2eafae57d38fa4a5?sa=X&ved=0ahUKEwj62qTVhMzTAhWMJ1AKHaA7AJwQ_BIIfzAK

Figure 58:

a map of the Oxford Street Forever 21 and the surrounding area

Figure 59:

a Forever 21 advertisement

ODD London. 2014. Forever 21 Campaign. [Online]. [Accessed 30 April 2017]. Available from: http://www.oddlondon.com/case-study/ forever-21/

Figure 60:

the promotional mix

Original image with data from: Posner, H. 2015. Marketing Fashion: Strategy, Branding and Promotion. 2nd Edition. London: Laurence King Publishing Ltd.

85 Figure 61:

the AIDA model Original image with data from: Rath, P. M., Petrizzi, R. and Gill, P. 2012. Marketing Fashion: A Global Perspective. New York: Fairchild Books

Figure 62:

Forever 21’s Instagram page

Forever 21. 2017. Instagram. [Online]. [Accessed 30 April 2017]. Available from: https://www.instagram.com/forever21/?hl=en

Figure 63:

Forever 21’s Facebook page

Forever 21. 2017. Facebook. [Online]. [Accessed 30 April 2017]. Available from: https://www.facebook.com/Forever21EU/?brand_ redir=86746184549

Figure 64:

Forever 21’s Canadian website homepage during a sale

Forever 21. 2016. Homepage. [Online]. [Accessed 30 April 2017]. Available from: www.forever21.ca

Figure 65:

an email newsletter from Forever 21

Captured from a personal email from Forever 21.

Figure 66:

(Front page) Leather Pinterest. no date. Leather background. [Online]. [Accessed 30 April 2017]. Available from: https://uk.pinterest.com/ pin/546905948476762507/

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BA(HONS) Fashion Marketing 3294 words may 2017