Boden Situational Analysis by jennaavdheever

ETHICS CLAUSE

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CONTENTS

Table of Contents

................................. 1

Methodology

................................. 2

Introduction

................................. 3

External Business Review

.............................. 4-5

PESTLE Analysis

.............................. 6-7

Macro Environment Trends

................................. 8

Trend Implications on Boden

................................. 9

Brand Audit

............................... 10

Competitors

........................... 11-12

Target Consumer

............................... 13

Brand Health

........................... 14-15

SWOT Analysis

........................... 16-18

Ansoff Matrix

................................ 19

Key Brand Initiatives

........................... 20-21

List of Illustrations

........................... 22-23

References

........................... 24-25

Appendix

........................... 26-33

METHODOLOGY

Through carrying out primary research, the key objectives were to further understand the brandâ&#x20AC;&#x2122;s target consumer in order to identify how Boden can connect better to their customers and also identify ways they can enhance as a brand and stay relevant in the market.

This was done through constructing an online survey on Surveymonkey.com where a sample of 100 people of a range of different demographics were asked series of questions based around the way they shop.

EXTERNAL MARKET REVIEW

As most retailers provide different methods to purchase their products, consumers are given options as to how they can buy. “Women see online-only retailers as offering good value clothing, yet there is a perception that the clothing can be of inconsistent qualty” Goody (2017) According to Goody (2017), “women show the most interest in innovations that ease the trying on process” and explains that the “interactive nature of these digital innovations could prove to enhance the shopping experience among tech-savvy shoppers” 4

EXTERNAL MARKET REVIEW Figure 1 represents the percentages of where women over the age of 16 have bought clothes in the last 12 months. The overall trend of the graph is that more respondants purchase clothes instore as opposed to online. This could be due to the fact that, according to Goody (2017) â&#x20AC;&#x153;Fit is a much greater issue among women than menâ&#x20AC;? and so therefore they prefer to shop in-store so that they can try the garments on before purchasing. Fig 1

PESTLE ANALYSIS

Political

Economical

Social

Following Brexit, KPMG (2016) exaplains that “the cost of goods purchased overseas will effectively become more expensive. The debate for retailers will then be whether to increase prices or absorb the loss into margins”

“Cost pressures include the rise in business rates and the national living wage, which coupled with weak demand, are likely to result in diminishing profit margins” (Goody 2017) Social media platforms have become important outlets in which brands can promote and attracts consumers as well as allow them to create a relationship with customers and have a larger awareness of the brands identity.

Fig 2

PESTLE ANALYSIS

“Overall spending on retail IT was projected to “Reexceed $190 billion worldtailers are understandably over- wide in 2015” - Wilson (2014) whelmed by the options and

Technological

Legal

Environmental

may adopt technologies without a clear picture of both how they fit into their strategy and, potentially more important, how shoppers will react”Inamn and Niklova (2017) According to Davies (2017), new legal regulations “will require retail businesses to ensure that they are transparent with consumers about the personal data they collect and how they use it; that they provide consumers with the opportunity to opt-in what marketing they receive...and respect those preferences”

“Air pollution from paper production can be lessened by 73 percent if papers are produced from recycled papers instead of virgin materials” - LeBlanc (2017)

Fig 2

MACRO TRENDS PREMIUMISATION

SHOPPING REINVENTED

HEALTHY LIVING

“The health and fitness market is in a strong position to continue growing, with an increased focus on active lives, healthy eating and exercise” Fricker (2017) According to

With With more more products products availavailable, at at more more price price points points than than able, ever before, before, consumers consumers can can spend spend ever more on on the the things things that that matter matter to to them them more while cutting back on those that do while cutting back on those that do not. not. This idea falls into Evans, Jamal and This idea falls into Evans, Jamal and FoxFoxal’s (2009) social group of “Young, maral’s (2009) social group of “Young, married ried and and with with children” children” which which states states that “Parents tend to spend more that “Parents tend to spend more on on clothing, clothing, housing, housing, childcare, childcare, Boumphrey food and healthcare”. food and healthcare”.

and Brehmer (2017). “Consumers are increasingly expecting retailers to engage with them in ways that suit their interests and lifestyle.”

IMPLICATIONS OF TRENDS ON BODEN

PREMIUMISATION

SHOPPING REINVENTED

HEALTHY LIVING

For Boden consumers, health and vitality is very important, especially since they have This is why in terms a family to take care of. This is why they of Premiumisation, Boden should implement an activewear line. In terms should develop their own homeware of their competition, Marks and Spencer’s offers line. For Boden consumers their status and a quality sportswear line at an affordable price. reputation is key, and this is why spending Boden did launch an active wear line in 2014, as there is evidence of social influencers wearing and more on homeware is something they would promoting Boden activewear in their blogs. Possibly, strive to do to make them feel more “content with Boden attempted to implement activewear into the their own surroundings and to create a home for brand, but their timing was wrong, as in 2014, acfriends and visitors to admire” as mentioned by tivewear was not an up and coming trend. Whilst Jane Westgarth (2017) , Senior Market Analyst now, “athleisure is on the rise, with people inThrough conducting corporating it in their daily life rather than for Mintel. In terms of their competition, both the primary research survey, just during exercise” as mentioned by Joules and The White Company have successit was discovered that through Helen Fricker (2017) Senior Leifully launched premium homeware and pet mainstream online shopping, some sure Analyst for Mintel.

lines, whereby they are encompassing the whole family life within the brand.

respondents said that they find it difficult to purchase clothes that suit them and work with their body type. With this being said, Boden can adapt their virtual wardrobe on their website by making it more personal to the customers specific body type and therefore provide an accurate image as to how the garment will fit them.

Boden started out in 1991 with primarily just a menswear collection before expanding and providing fashionable quality products for the whole family at prices which reach the higher end, upper market. Despite the brand evolving over time, Boden (2017) reassures customers that “the They basic idea remains the same: to create stylish clothes also promote that look great and never stint on quality”. Their prodtheir brand through ucts range anywhere from £10 to £200 and their target their social media platconsumers tend to have more disposable income to spend on high quality products. Boden distributes forms such as Instagram, where they often get celebrity their products through catalogues, their online website, and through concessions in John Lewendorsements such as Holly is. Boden promotes their business through Willoughby, who reflects their emails, their blog and their the ideal ‘Boden Womwebsite.

BRAND AUDIT

an’ image.

In an interview with Drapers (Rogers 2015), Johnnie Boden admits that he would “like to phase out the catalogue because we’d make lots more money, but we’re not going to because it’s a hugely important part of the brand”

COMPETITORS

As Figure 3 shows, Boden has a range of different competitors within in the market, from The White Company to Primark, which have similar product offerings to Boden.

Fig 3

COMPETITORS

“Women are already feeling less confident about their financial situation than men...clothing is likely to become less of a T h e priority” - Goody graph measures the (2017) brands against their afforda-

bility as well as exclusivity. Boden’s most direct competitor is Joules as they have the same target consumer as well as offering a similar personal approach to their customers as Boden. Additionally, even though Primark is an anomaly on the graph, they are still a big player in the market as they sell a similar range of products as Boden at a much more affordable price. Furthermore, in relation to this, primary research through the online survey proved that to 54% of women, affordability was their key concern when shopping.

TARGET CONSUMER The typical consumer loves Boden because it is convenient. She can easily order clothes for her whole family online. They also shop at M&S, and do their foodshop at Waitrose. She watches cooking shows and TV shows like This Morning. She reads magazines like Marie Claire in her spare time, when she is not taking her kids to their various afterschool activities in their range rover.

38-year old mum with three kids, who dresses her family in Boden, because of the quality and the style. Her husband is a full-time banker in London, while she runs a small florist business from home. They live in a townhouse in Kent. They have a cockapoo dog who the kids love to play with.

5 13

BRAND HEALTH

“Two-fifths of revenues are now generated in the US” (Armstrong 2017)

According to a recent report from The Telegraph by Armstrong (2017), Boden follows a “successful overseas push” and “profits rose nearly 10pc to £26.2m in 2017”. Therefore, it is apparent that Boden is expanding internationally and the products are successful in other countries. 14

BRAND HEALTH Boden’s ambition is “to become a multichannel business” by incorporating “technolThis coincides with ogy that will make [their] the health of the macro environment as Goody (2017) stated that customers lives easier” “digital innovations could prove to enhance (Tesseras 2014). the shopping experience” so the brands growth

strategies demonstrate an awareness to the broader market. Furthermore, Tesseras (2014) also explains that “[Boden] wants to attract a younger clientele; it uses social media and has a cross section of contributors writing on its blog”. With this being said however, as well as enhancing the brand online, Boden reinforces the fact that “people shop for clothes in store 3.5 times more than online in the UK” (Terreras 2014). So therefore, in terms of growth, the brand is aware that in order to become the “multi channel business” they want to be, they must expand their social media presence to remain relevant in the market as well as “extend its network of retail outlets” (Tesseras 2014).

SWOT ANALYSIS Strengths: Strong brand identity Stand out through use of catalogue Customer loyalty

Opportunities: More online/social media presence International development and growth

Weaknesses:

Figure 4 presents a SWOT analysis diagram which was carried out in order to evaluate Seen as a ‘mum’ brand Bodens strengths and weaknesses as well Lack of brand awareness as potential opportunities and threats which according to Dibb (2012), is “a fundamental aspect for developing a marketing strategy, as an organization must have an awareness of its capabilities” and “an awareness of the marketing environment may lead to strategic windows of opportunity.”. Due Threats: to the fact that Boden has such a strong brand identity, they are successful in attaining good customer loyalty. However, their lack of retail stores can Increasing competition be proven detrimental to them as they have only just store in the UK which opened Erosion of USP earlier this year. Relevance and modernity Limited retail stores

Other lines (Homeware, activewear) Fig 4

SWOT ANALYSIS

Fig 5

“An awareness of the marketing environment may lead to strategic windows of opportunity.” Dibb (2012)

Additionally, through carrying out the survey, it was apparent that 62% of Boden’s target market would prefer to shop in store as opposed to online or through a catalogue. In addition to this, this data supports the threat of the erosion of their USP as only 1% of consumers would purchase through a catalogue. Therefore, not only would this lead to loss of customer loyalty through a lack of stores but also affect the brands identity.

SWOT ANALYSIS

In terms of opportunities, Boden could build their presence through international development and growth by introducing additional lines such as homeware and activewear.

Threats to Boden are increasing as competition from companies that offer similar quality products at cheaper prices such as Primark. The erosion of their USP, which is their catalogue, is also a major threat to Boden as it is becoming outdated; in our survey we see only 1% of the respondents would shop through a catalogue, showing that it is becoming an inconvenient way of shopping. In turn, their relevance and modernity is also threatened.

ANSOFF MATRIX EXSISTING MARKETS

EXSISTING PRODUCTS

NEW PRODUCTS

- UK and parts of Europe

- Homewear

- Womenswear

-Maternity Wear

- Menswears

- Virtual Wardrobe with range of different body types

- Childrenswear

- Plus size and petite ranges NEW MARKETS

-Expand globally eg. to USA and China

- Activewear - In store technology

Fig 6

KEY BRAND INITIATIVES

IIt can be concluded that Boden would strategically benefit from bringing out new lines such as homewear and activewear as the target consumer would benefit from a lifestyle brand that offers everything for the whole family. This strategy would position Boden above its competitors and they have the ability to broaden their horizons successfully expand their product range to suit their niche consumers.

The challenges that Boden may face in branching out and evolving into a lifestyle brand is that their niche audience have a large amount of disposable income and so they are able to purchase products somewhere else. Therefore, they may not embrace and accept the change of the brands identity.

KEY BRAND INITIATIVES

Online shopping would be made much easier and more reliable if Boden were to introduce a tailoring and personalised website as the target consumer would be able to shop from anywhere, and according to her figure. The customer could imput her body measurments before she starts browsing in order to visually see how her personal body type would fit s pecific garments.

Boden has already began offering a way in which customers can virtually build outfits themselves through their â&#x20AC;&#x2DC;Outfit Makerâ&#x20AC;&#x2122; on their website. However, there is only a model of one body type which does not accommodate to customers of different shapes and sizes. Therefore, they could develop this idea further through a new product development and this new and unique innovation will attract new as well as existing customers as it makes shopping online easier and more effective.

LIST OF ILLUSTRATIONS

Image taken by author 17/11/17

Image available at www.instagram.com/ boden_clothing