3. INTRODUCTION & METHODOLOGY 4. ALICE + OLIVIA 5. TOPSHOP 6. RATIONALE: WHY DID I CHOOSE TO DEVELOP TOPSHOP? 7. SWOT ANALYSIS 8. PESTE ANALYSIS 10. RATIONALE: WHY DID I CHOOSE TO CREATE A TOPSHOP CHILDRENSWEAR RANGE? 11. CONSUMER PROFILE 12. CONSUMER PROFILE MOODBOARD 13. COMPETITOR ANALYSIS 16. PERCEPTUAL MAP 17. PRIMARY RESEARCH 19. SECONDARY RESEARCH 20. THE MARKETING MIX: PROMOTION 21. INSPIRATION MOODBOARD 22. THE MARKING MIX: PLACE & PRICE 23. THE MARKETING MIX: PROMOTION 24. PACKAGING IDEAS MOODBOARD 25. ADVERTISING IDEAS MOODBOARD 26. SUMMARY 27. BIBLIOGRAPHY 29. APPENDIX
In this brand report I will compare the marketing strategies of designer brand, Alice + Olivia with that of high street brand, Topshop. I am comparing these brands as I feel they are similar in some ways and both use interesting marketing strategies. I also think they stand out from the markets in which they reside. I then plan to create marketing strategies and design ideas for a childrenswear range for Topshop in order to compete with other high street brands. Â
Methodology I will use primary and secondary sources of research and analysis including surveys, interviews, online research, maps and graphs in order to present and justify my findings and ideas.
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ALICE + OLIVIA Alice + Olivia is a designer brand, established by Stacey Bendet. The brand is fun and quirky and has many interesting promotional strategies. Alice + Olivia makes good use of social media. The brand regularly uses Facebook, Twitter, Tumblr and YouTube to promote and keep consumers up to date with what is happening. Alice + Olivia also uses these websites to share sources of its inspiration. Alice + Olivia’s website is very interactive and directly connects to its social networking profiles. There is a section called A+O TV, which features advertisements, interviews and documentary-like clips of photo shoots. Alice + Olivia has also partaken in collaborations including synergies with MAC and the charity, Baby Buggy. These are examples of trading down as one has a lower price range and the other is a charity. Trading down is an important aspect of retail because it appeals to a wider audience and can make the brand more available to varied consumers without making it less ‘exclusive’. Working with a charity is a good promotional strategy as it makes the brand more reputable. The brand features in concessions in America and UK as well as having its own stores in America.
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TOPSHOP Topshop, established in 1964, is a well-respected high street brand. Similarly to Alice + Olivia, Topshop has used many interesting promotional strategies. Topshop frequently uses social networking websites such as Twitter, Tumblr and Facebook in order to keep its target audience interested in the brand and keep them up to date. The brand features in Vogue, which could be considered unusual as Vogue mainly focuses on high-end fashion rather than high street. Furthermore, Topshop is the only high street brand to feature in London Fashion Week, creating an advantage and making it seem more exclusive. Topshop has collaborated with well-known designers and models, which are examples of the brand trading up. This includes a synergy with Christopher Kane. The Christopher Kane for Topshop range was priced higher than the brand’s other ranges at the time, with some garments costing up to £160. Topshop has also traded up to collaborate with Kate Moss and Celia Birtwell. Trading up is beneficial to high street brands as it allows them to demonstrate a more ‘luxurious’ feel as well as appealing to a wider audience.
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RATIONALE Why did I choose to develop Topshop? I decided to develop Topshop rather than Alice + Olivia as I feel the brand has a gap in its company for a childrenswear range despite being well developed through other ranges such as a beauty range, a maternity and a baby’s clothing range. A childrenswear range will allow Topshop to compete with other high street brands.
elop Topshop
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SWOT ANALYSIS STRENGTHES - Established brand - Only brand to feature in London Fashion Week - Multi-national - Well-known and popular on the high street
WEAKNESSES - Expensive - Saturated market - Lacks originality, too populist or mainstream
OPPORTUNITIES - Room for synergies and collaborations - Create a USP to steer away from the mainstream market - Room for further brand extension - Get more involved with environmental issues and awareness
THREATS - Large market size meaning high levels of competition - The increasing cost of materials
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PESTE ANALYSIS POLITICAL - According to Dailymail.co.uk, Topshop has been criticized in the past for allegedly using slave labour. Being aware of ethical implications and laws is vital in order to abide by the law and upkeep a good reputation.
ECONOMIC - According to Guardian.co.uk, Unum (income protection provider) states that 47% of working adults have £150 or less disposable income each month. This could affect expenditure within Topshop as it has medium-high price points.
- Guardian.co.uk also states that UK unemployment rates are high (7.9%) which could also result in a fall in revenue as clothing from Topshop could be considered a luxury rather than a necessity.
SOCIO-CULTURAL - According to Keynote.co.uk’s Clothing Retailing 2011 Report, consumers are being more cautious and resorting to cheaper alternatives, connoting that Topshop’s customer base could decline as consumers turn to cheaper brands. - The National Institute of Economic and Social Research states that it is probable the current coalition government policies will create a rise in income inequality, inferring that the middle class will be lesser in comparison to the working and upper classes. Topshop’s prices infer that the brand is aimed at the middle class, thus the brand could see less repeat business or a fall in revenue.
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TECHNOLOGICAL - Mintel.com states that online fashion sales have increased by 152% in the past 5 years. The online market was valued at £4.3 billion in 2010, this is visible in Topshop’s use consistent of social networking and online promotion. - However, Mintel.com states that 58% of consumers are still nervous to shop online but with the help of new technology, including smartphone and tablet apps, consumers will overcome this fear. The present reluctance to shop online could be why Topshop has not got a smartphone shopping app, although the brand did integrate an app called ‘SCVNGR’ which was aimed at students.
ENVIRONMENTAL - Topshop stocks a concession called People Tree which is a fair trade and organic fashion brand, this demonstrates that Topshop is aware of the environment and the need to be eco-friendly in the current worry about global warming. - Topshop has also shown environmental awareness through the series of environmentally friendly events in 2008 named ‘Topshop Wants Your Rubbish’. The events involved workshops that helped raise awareness about the environment and a stylist demonstrating how to modify old clothing.
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RATIONALE Why did I choose to create a Topshop childrenswear range? I decided that creating a Topshop childrenswear range would make sense as it already stocks a baby clothing range; Topshop Mini, as well as a maternity range. Furthermore, Topshop’s main competitors, River Island, H&M and Zara, all stock childrenswear ranges, therefore Topshop is at a disadvantage without childrenswear and could lead to less repeat business or a fall in revenue.
elop Topshop
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CONSUMER PROFILE As Topshop’s current consumer profile is an independent, fashionconscious female professional or student, it would be plausible to aim the childrenswear range at a similar consumer; an independent, fashion-conscious professional with female children between 2 and 10. The consumer would have sufficient disposable income to shop on the high street. Gender is not as important for a childrenswear range as the consumer is buying for their children although it is likely to appeal more to women due to Topshop selling womenswear. I feel it is necessary to use Topshop’s current consumer profile as the childrenswear range is more than likely to appeal to regular Topshop customers who have children. The brand is not aimed at a particular age but a particular attitude which could be applied to my brand extension as parents vary in age.
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COMPETITOR ANALYSIS River Island River Island introduced a childrenswear range called Boys & Girls in 2010. The range is now available in store and online but was originally only available in seven stores – this is a good strategy for trialling the range to see if it proves popular. Boys & Girls is aimed at ages 3 – 12 and is inspired by River Island’s adult ranges. The range is promoted in various ways, including a YouTube account, documenting photo shoots for Boys & Girls. In addition, River Island blog about the range on River Island Style Insider, attracting consumers via competitions, for example teaming up with Alton Towers and also creating an online mailing list for the childrenswear range. Prices span from £2.99 to £45 with the range including dresses, tops, jeans, trousers, leggings, coats, jackets, shoes, boots and accessories such as winter products, jewellery and hair accessories.
elop Topshop
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COMPETITOR ANALYSIS H&M H&M Kids is divided into three different age groups; this idea could be something to consider for my Topshop brand extension as designs and tastes change as a child gets older. The H&M kids range is available to buy in store and online, as well as being available worldwide. H&M promote this range in various ways; including the use of YouTube, which involves television adverts and promotional videos, including a ‘flash mob dance’ where children gave a dance performance to promote the range. H&M’s prices span from £1.99 to £29.99; proving H&M are cheaper than River Island. H&M Kids includes a wider range of products. As well as all of the products River Island sells; H&M also sells outdoor clothing, fancy dress, underwear and nightwear. H&M’s wider variety could be down the fact it has been established for longer and has had more time to develop. According to H&M’s website, one of the brand’s main focuses for childrenswear is quality. This is an important competing factor to consider for the marketing mix of my childrenswear range.
elop Topshop
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COMPETITOR ANALYSIS Zara Zara carry a kids range for children between the ages of 2 and 14; catering to a wider audience than River Island but similarly sized to H&M. The range is available in store and has recently been made available online when Zara launched its online shopping site in September 2011. Like River Island and H&M, Zara has a YouTube account featuring advertisements promoting Zara Kids. In addition, Zara’s website features a ‘Lookbook’ showing the range. The range is available to buy worldwide, creating a larger customer base.
elop Topshop
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PERCEPTUAL MAP
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PRIMARY RESEARCH My primary research includes a survey aimed at parents with young female children. The results show that there is interest in a Topshop childrenswear range; 69.2% said they would consider buying childrenswear from here.
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According to my survey, the factors that parent consumers are most attracted to when buying childrenswear are the quality, the price, the style and convenience – I asked to see if people were attracted to the brand, however the result was 0% which connotes that the marketing of my brand extension should not focus solely on the brand name.
In order to compete with Topshop’s competitors, I should focus firstly on quality and price, then style. My survey results illustrate that 53.8% of my participants usually spend £21 - £40 each month on childrenswear and 46.2% spend £0 - £20. In order to appeal to high street brand consumers and contend with the prices of the other competitors, I shall use a medium price range.
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SECONDARY RESEARCH According to the Keynote.co.uk Childrenswear 2011 Report, the industry was worth £5.91bn – a 6.5% increase on 2009, this bodes well for my brand extension as it proves there is a gap in the market for Topshop to introduce a childrenswear range. Furthermore, Keynote.co.uk predicts that between 2011 and 2015, there will be continual growth in the childrenswear market, with an estimated worth of £6.99bn in 2015. In addition, the website predicts that the media will help influence children’s opinions, for example, imitating current adult fashion trends. Thirdly, Keynote.co.uk predicts that advances in technology and a greater presence of online retailers will boost sales in the childrenswear market. These predictions suggest that I should consider promoting a Topshop childrenswear range through magazines, television and the Internet. Following on from my primary research, more evidence of interest in a Topshop childrenswear range is that of an article from Junior Magazine Online by Matthew Holroyd, containing the quote; “But the question on the fashion department's lips here at Junior is when are Topshop going to launch their childrenswear range?” This suggests that there is a demand from the media as well as consumers.
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THE MARKETING MIX Product I will produce a Topshop childrenswear range for the ages 2 – 10 years in order to compete with River Island and Zara’s age ranges and H&M’s middle age category (18 months – 8 years). The range will be aimed at girls due to Topshop being aimed at women and the brand having a separate menswear store, Topman. The main colour of the brand will be a light shade of pink, a colour associated with young girls, alongside black and white, two main colours already used within the brand’s identity. My survey states one of the most important factors was quality; therefore the range will be made from good quality materials such as cotton. This will also allow me to contend with my competitor, whose products are mainly made with cotton and polyester. I could also use organic materials, which are better for the environment and are appealing in consumption today. A synergy with a children’s television/film character for my range could be an appealing factor. Some of H&M’s designs feature Disney characters and Hello Kitty. Collaboration could attract children and thus, encourage their parents to buy from the range. I will name the range Topshop Teenies. ‘Teenies’ is a colloquial word referencing the age range between babies and teens, which is my target age range. The name ‘Topshop Teenies’ does not refer to one gender, which allows room for extension into a Topman boys’ range.
elop Topshop
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Place It will be beneficial to sell Topshop Teenies in flagship stores for the first 3 months in order to test for interest in the range. If the range proves popular, it will be added to more stores gradually. As Topshop sells worldwide, Topshop Teenies will also be available to the same countries. It is important to consider selling online as well as in store due to the growing interest in online shopping.
Price As the results of my survey denoted that ÂŁ21-40 was the average amount parents spent on childrenswear each month, a medium price point will be attractive to high street consumers. I will use competitive pricing to allow Topshop Teenies to contend with its competitors. It will be beneficial to price below the competition in the beginning to attract consumers to the range over other choices. If the range proves popular, prestige pricing could be considered.
elop Topshop
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Promotion Promoting Topshop Teenie’ is vital to integrating the range into the market. It is important to use multiple media platforms to gain more interest and reach a wider audience. As Topshop already make good use of online social media, Topshop Teenies will be promoted similarly to alert an established audience. Topshop could also use YouTube to compete with other brands by featuring interviews about the new range, advertisements to present it and portray the tone of Topshop Teenies. Further promotion could include advertisements in women’s magazines and magazines such as Junior Magazine, which is aimed at parents. As well as this, a launch party would be a way of attracting consumers and the media. The party would be aimed at the consumer’s children and would take similar form to a children’s birthday party so as to appeal to children, encouraging parents to buy into the range.
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SUMMARY Throughout this report I have found that despite the market size of childrenswear being quite large, there would only be three main competitors for Topshop if they were to introduce a childrenswear range, connoting that there is still room for the brand to extend. Furthermore, according to my perceptual map, I have discovered that in order to contend with competitors, I must create a range that is quite loud and also that is somewhere between serious and playful in order to stand out from the rest of the market. I have also found that in the current recession, a medium price point would be satisfactory for consumers whilst still adhering to Topshop’s other price ranges. Lastly, my research findings tell me that there is an interest in a Topshop childrenswear range therefore children’s clothing is the correct choice for a brand extension within Topshop.
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BIBLIOGRAPHY Purves, M. (2010). Alice + Olivia Designer Stacey Bendet Eisner's New Pad. Available: http://www.elle.com/Life-Love/EntertainingDesign/Alice-Olivia-Designer-Stacey-Bendet-Eisner-s-New-Pad. Last accessed 30th November 2011. ANON. (2010). River Island Launch Childrenswear. Available: http://www.juniormagazine.co.uk/fashion-news/river-island-launchchildrenswear/913.html. Last accessed 30th November 2011. Brayford, C. (2010). River Island has Childrenswear All Wrapped Up for Easter. Available: http://www.express.co.uk/posts/view/166098/RiverIsland-has-childrenswear-all-wrapped-up-for-EasterRiver-Island-haschildrenswear-all-wrapped-up-for-EasterRiver-Island-has-childrenswearall-wrapped-up. Last accessed 30th November 2011. Holroyd, M. (2010). Topshop Mini's Cool New Designs for Fashion Forward Babies. Available: http://www.juniormagazine.co.uk/fashionnews/topshop-minis-cool-new-designs-for-fashion-forwardbabies/3178.html. Last accessed 30th November 2011. ANON. (2011). Our Fashion Concepts. Available: http://about.hm.com/gb/abouthm/factsabouthm/ourfashionconcept s__concepts.nhtml. Last accessed 30th November 2011. Bridgewater, D. (2011). Eenie, Meenie, Mini-Me. Available: http://fashion.telegraph.co.uk/news-features/TMG8724722/EenieMeenie-Mini-Me.html. Last accessed 30th November 2011. ANON. (2011). Childrenswear Market Report 2011. Available: http://www.keynote.co.uk/marketintelligence/view/product/10438/childrenswear?highlight=childrenswe ar&utm_source=kn.reports.search. Last accessed 30th November 2011.
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Sheft-Ason, J. (2011). Zara to Launch Online Shopping in September. Available: http://www.forbes.com/sites/jessicasheftason/2011/08/03/zara-to-launch-online-shopping-in-september/. Last accessed 30th November 2011. ANON. (2011). H&M Quality Assurance. Available: http://about.hm.com/gb/corporateresponsibility/aboutourproducts/q ualityassurance__qualitytests.nhtml. Last accessed 1st December 2011. ANON. (2010). Baby Buggy and Alice + Olivia Host Charity Event. Available: http://www.wwd.com/eye/parties/baby-buggy-and-aliceolivia-host-charity-event-3398035 . Last accessed 1st December Elliot, L. (2011). Unemployment Rises Above 2.5m Milestone. Available: http://www.guardian.co.uk/business/2011/sep/14/unemploymentrises-2-5-million . Last accessed 1st December 2011. ANON. (2011). What Would You Give Up to Increase Your Disposable Income?. Available: http://www.guardian.co.uk/worklifeuk/live-q-awhat-would-you-give-up-to-increase-your-disposableincome?CMP=KNCSPRTXT10184. Last accessed 1st December 2011. Ramesh, R. (2011). Social Mobility of young people 'being held back by government policy'. Available: http://www.guardian.co.uk/society/2011/nov/01/social-mobility-heldback-government . Last accessed 1st December 2011. Sender, T. (2011). Online Fashion Clicks with Brits as Market increases 152% in Past 5 Years. Available: http://www.mintel.com/presscentre/press-releases/695/online-fashion-clicks-with-brits-as-marketincreases-152-over-past-five-years. Last accessed 1st December 2011.
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APPENDIX Online Survey: 1. How much do you spend on your children’s clothing each month? - £0 – £20 - £21 - £40 - £41 - £60 - £61 - £70 - £71+ 2. Where do you shop mainly for your children’s clothing?
3. Are you conscious of children’s clothing trends? - Yes - No 4. What attracts you to the places you shop for children’s clothing? - The quality - The price - The brand - The style - Convenience 5. Are you conscious of which brands your children are wearing? - Yes - No 6. Would you ever consider buying your children’s clothing from Topshop? - Yes - No 7. If yes, explain why.
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