APPENDIX
APPENDIX Appendix I - Distribution Channels
Appendix F - Levitt’s Total Product Concept
Globalisation has enabled easing of international trade restrictions, faster and more reliable communications, “increased wealth and saturated domestic markets have all encouraged companies to trade beyond their original national boundaries” (Jackson T and Shaw D, 2009, p205). Companies in different levels of the fashion market opt to utilise different distribution channels in order to get their products to the right consumers.
Figure 30. Levitt’s Total Product Concept (Posner H, 2015, p43)
Appendix G - Maslow’s Hierarchy of Needs
Figure 33. Distribution Channels (Jackson T and Shaw D, 2008, p206)
Figure 7.1 indicates a distribution channel that is typical of a mass market brand like Topshop. On the other hand, figure 7.3 highlights the relationship between a luxury brand like Acne Studios and their consumers. Appendix J - Company Integration
Vertical Integration is an “arrangement in which the supply chain of a company is owned entirely by that compa-
Figure 31. Maslow’s Hierarchy of Needs (Jackson T and Shaw D, 2009, p5)
Appendix H - Price Architecture
ny, from the raw material through to the finished product” (Skinner M, 2016, p308). Vertical integration enables brands to shorten turnaround times therefore reducing the lead time. Horizontal Integration is a strategy where “a company diversifies its operations by expansion, merger or takeover to give a broader capability at the same stage of production” (Skinner M, 2016, p308). This method of integration is most common with mass market fashion brands like Topshop that outsource their production to a variety of factories globally that they do not own just subcontract to manufacture their products. Luxury brands also operate horizontal integration strategies as they also don’t directly own the factories they produce their products in, however they impose stricter labour standards. Appendix K - Distribution Methods
Intensive Distribution : The company aims to sell as many of each product as possible. There is no monopoly so the
product is widely available. With accessibility and affordablity the main criteria, the product operates at a much smaller profit margin per item (Logkizidou M, 2020, Marketing Mix - Price & Place)
Selective Distribution : The product is only distributed to a select number of outlets within a defined geographical area (Logkizidou M, 2020, Marketing Mix - Price & Place). Exclusive Distribution: The product is only available in one outlet within a defined geographical area. These products are usually in low demand as they are more expensive speciality products. Consumers are more likely to travel to purchase these items, which adds to the exclusivity (Logkizidou M, 2020, Marketing Mix - Price & Place). 24
Figure 32. Price Architecture (Posner H, 2015, p46)
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