Methodology

In terms of Levitt’s (1980) Total Product Concept theory (see appendix f), the core product offered by Topshop is trend led fashion, priced affordably for its customers. The actual product relates to the ‘Black Faux Leather Biker Jacket’. The jacket comes in UK sizes 4 to 18 and covers both the Regular and Petite range. The actual product is reflective of a traditional biker style jacket with silver zipper fastening and studs. The outer part of the jacket is made from 100% Polyurethane. It is this elastic polymer-based material that creates the illusion that the jacket is made from real leather yet at a much lower cost to produce. The inner lining of the jacket made from 100% Polyester. The machine washable nature of the jacket reflects the lower price point. However, the central zipper adds function as well as detail to the jacket as the user is able to style the garment in different ways.

The design features two functioning zipper pockets, in which reflect the style of traditional biker jackets whilst adding to the functionality of the garment. In relation to the augmented products offered alongside the jacket, Topshop offers free standard delivery on all purchases if they live in the UK and on orders over £100 for international customers (Topshop, 2020). Topshop also offers a 28 day returns policy on all items (Topshop, 2020). It is these added value details that are included within the total product that enhances Topshop’s products and makes them more appealing to their target market. Referencing Maslow’s hierarchy of needs, Topshop’s ‘Black Faux Leather Biker Jacket’ can be categorised as part of the ‘Esteem Need’ (Maslow A.H, 1943) (appendix G.). This is because purchasing fashion items is a hedonic need as it increases confidence and self-esteem. Maslow (1943) indicated that these needs are most important amongst the younger demographic. Therefore, Topshop, who’s “target market is 16-30-year-old women” (Arcadia, 2017) has understood this theory and created garments at an affordable price point to enable these women to keep up with the latest fashions.

Figure 10. Topshop Black Faux Leather Biker Jacket (Topshop, 2020

PRICE

Topshop employs a variety of pricing strategies. Firstly, cost based pricing arises as Topshop “pay for the products they have ordered from suppliers” (Jackson T and Shaw D, 2009, p125) This price covers the production costs of manufacturing the faux leather jackets. Topshop faux leather jacket is produced in China. This therefore means there are higher transport and shipping costs as more intensive distribution channels are required in comparison to companies that manufacture closer to the stores (see appendix K). In terms of the customer-based pricing strategy, Topshop has adopted a premium pricing strategy. This higher pricing strategy is aimed at encouraging favourable perceptions amongst customers that Topshop offers higher quality product in comparison to their retail competitors. This is evident as Pull & Bear offer a similar style faux leather jacket yet price it at £25.99 (Pull & Bear, 2020). The Topshop Black Faux Leather Biker Jacket remains more expensive at £39 even after its 30% price reduction. Topshop also employs price adjustment strategies to drive sales which include 10% student discount that is available through Unidays all year long, as well as higher seasonal discounts that are available for limited time periods. Both of these can form customer loyalty towards the brand and help to attract the younger market that Topshop’s products are designed for. In terms of the price architecture of Topshop (appendix H), this brand offers a wide range of affordable to high-end garments. The price of items begins with the lowest, entry level pricing of socks at £2 to exit level at £295 for a Topshop Boutique real leather jacket. However, the average price of products in Topshop is between £30-50.

Figure 13. Topshop Black Faux Leather Biker Jacket (Topshop, 2020)