Boden Situational Analysis NTU FMB by poppywest99

situational analysis Poppy West N0731532

contents ethics declaration................. 1

micro environment......................... 29-34

the brief.......................... 2

market health................ 30

methodology........................ 2

competitors.................. 31-32

the brand.......................... 3

Joulesâ&#x20AC;&#x2122; SWOT................. 33-34

consumer profile.................... 5-6 internal brand review.............. 7-15 brand positioning...... 8 mission statement...... 9-10

conclusion & reccomendations.............. 35-37 key issues................... 36 reccomendations.............. 37 references & bibliography................. 38-44

awareness.............. 11

appendix..................... 39

SWOT analysis.......... 12-14

photo references............. 40-41

growth analysis........ 15

references................... 42

macro environment................. 16-28 PESTLE analysis......... 17-22 key consumer trends..... 23-28

bibliography................. 43-44

ethics declaration I confirm that this work has gained ethical approval and that I have faithfully observed the terms of the approval in the conduct of this project.

Signed (student) ................................................................

Date....................................................................................

the brief The brief is to create a detailed review of the British fashion brand Boden and to analyse their current marketing environment. This report will look at Boden from both an internal and external eye, in order to assess where they can improve as a business.

methodology In order to successfully complete the brief there was a need to complete primary research in order to find out how the consumers really felt about the brand and to gather insightful information regarding the way the brands target consumerâ&#x20AC;&#x2122;s think. The research was completed through a quantitative method. An online survey was created through Survey Monkey and posted on a fashion forum, that targets the key demographic, on Facebook. The survey collected 100 results. It was decided that this form of research would be the most effective at gathering a wide range of ideas and opinions that would prove crucial in succeeding with this project. This is because the quantitative method gathers a larger number of results and respondants were more comfortable answering questions this way rather than through smaller groups (such as in interviews).

the brand Boden is a premium clothing retailer that specialises in womenâ&#x20AC;&#x2122;s and childrenâ&#x20AC;&#x2122;s wear. The family orientated brand was established in 1991 by Johnnie Boden, who started the brand with only 8 menswear pieces. Since its launch Boden has grown into a household name and a place that mothers are able to buy clothing for their entire family. Boden distribute mainly online and through a catalogue, however they recently opened up a retail store in Chelsea. Boden is a British brand that keep their rich heritage at the forefront of their business. They value quality and tradition, with their products always meeting a premium standard. As a brand, their style is timeless with a hint of fun and flirt; which they achieve though their bold use of colour and pattern.

consumer profile Woman 30+ Family orientated Loving mother and wife Middle Class Medium to high disposable income Care about appearances and perceptions Keeps a clean and tidy home Hardworking and organised Socially/politically aware Classic style

internal brand review

brand positioning As a brand Boden positionâ&#x20AC;&#x2122;s themselves as a family orientated brand that cares about the important things in life. Boden is a friendly and happy brand that pride themselves on providing flattering clothing for their customers. Their target consumer is women over 30, with a family to dress. They rely on Boden to provide flattering and high-quality products that they can dress their whole family in. They have a fairly high disposable income and so can afford to buy nicer clothing for their family; they care about the appearance of their family and how they are perceived by others. Boden provides many benefits to their consumers; they make them feel confident and fashionable in quality, investment pieces that have a modern/ fun style. Having this clear, defined position in the market allows Boden to directly appeal to their consumers and differentiate themselves from their competitors within the same market.

mission statement In terms of a mission statement, Boden stated that they “don’t have a fancy mission statement or ‘buzzwords’.” They said that for them their business is all about “honesty, friendliness and most of all, it’s about having fun” (Boden, 2017).

“honesty, friendliness IT’S ABOUT

“

having fun

and most of all, it’s about

awareness Boden is a well-known and respected brand within their target demographic, However, in a survey asking 100 respondents, out of the 96% that said they knew of Boden only 56% said they had bought from Boden (below). This shows us that even though their brand awareness may be ok, that target consumers are still not purchasing products. This may be because they are finding similar products at cheaper prices from competitors.

bought from Boden

havenâ&#x20AC;&#x2122;t bought from Boden

SWOT analysis

Strong brand identity

Limited retail support

Catalogue (stands out)

Brand awareness

Strong customer loyalty Position in online shopping market

Increase their online/ social media presence

Competitors rising in numbers

Expanding their international development/growth

Their relevance

Expanding their product range

US success

In terms of strengths, they have a really strong brand identity which means they can successfully position themselves in the market. They also stand out through their catalogue as not many other fashion brands run through a catalogue; this then sets them apart from their competitors who don’t use this. However, the relevance of the catalogue can be questioned as this distribution method is possibly becoming outdated. Boden also has strong customer loyalty which means they have a strong base of return customers who will buy their products again and again. Another strength is that because they launched in the early 90’s, they were “well placed to capitalise on the rapid penetration of online shopping” (Bowden, 2016). They were hence at the forefront of innovation within this area. Lastly it can be said that their US success is another strength. They expanded into the US in 2002 and since then they have been able to “capitalise on the appeal of current classic British fashion” (Bowden, 2016) to make sales.

Prefer shopping through a catalogue

Prefer shopping in-store or online

For Boden, their main weakness is that there is a limited amount of retail opportunity as they have only just recently opened up their first flagship store. This is interesting as in the survey, 62% of respondents said that they preferred to shop in store over online or through a catalogue (left), which is what Boden currently uses. In terms of this Boden could massively increase their brand awareness, which is another weakness, through the presence of more retail stores. In terms of opportunities, Boden could increase their online/social media presence to attract a wider range of consumers and maintain excitement in the ones they already have. Another big opportunity for Boden is the act of expanding their international development/growth as they have such a universal appeal, which would almost guarantee success in these markets. Lastly another opportunity that Boden could definitely capitalise on is the growth of their product’s, ranges in homeware would fit into their product ranges currently available as they align with Boden’s ethos that is in place . Threats that may affect Boden are that their competition is increasing and a “number of its competitors such as Joules are now also having a growing presence on the high street” (Bowden, 2016), which is why Boden should open up more retail stores. Their relevance is also at risk as they have the potential to become outdated and unmodern, which could push customers away from their brand.

growth and development analysis

MARKETS

PRODUCTS

WHAT BODEN DOES NOW

Womenswear Menswear Childrenswear (Boys, Girls and Babies)

Clothing in a UK and US market

HOW BODEN COULD GROW AND DEVELOP In terms of their products Boden could massively improve and grow as a business. They currently only have clothing for the whole family. They have the chance to reach out to a much wider range of consumers if they expand their product range. One product, that they would definitely have success in, is a homeware range; this fits in perfectly with their current products as well as their brand ethos which is catering towards a family. Boden could very easily market this range to their current customers (while attracting new ones) as they are concerned about their home life/family life. The consumers are always looking to improve both of these and a homeware line will allow them to do this. Boden has already released a special edition homeware line in 2017 which was deemed successful, so it would be very fitting that they would come out with a long-term collection of homeware. As well as this their direct competitors, Joules and The White Company, both have homeware lines that are successful. Another product that would be successful is an active wear line as Boden consumers are always looking to better themselves and there is a gap in the market for flattering activewear that parents can wear in everyday life and not just during exercise. Boden can definitely grow and develop their business in the US even more than what they are currently doing. Although they are successful in their growth in the US they have the opportunity to become a big household name through the push of their brandâ&#x20AC;&#x2122;s British beginnings. They could also develop more in European markets as they are a universal brand that everyone can like. As well as this Boden could collaborate with other markets such as lesuire by promoting family attractions through their own business, such as a 50% off Legoland tickets when you purchase ÂŁ100 or more from Boden.

macro environment

PESTLE analysis

POLITICAL & ECONOMIC

KEY ISSUES

Globalisation Exchange rates Brexit

IMPACT ON BODEN In terms of economic and political factors many aspects have the potential to affect Boden. Globalisation and exchange rates are economic factors and as a British business Boden could be in a difficult position. Brexit is a â&#x20AC;&#x153;rejection of globalisationâ&#x20AC;? (Elliott, 2016) and will have a big impact on the fashion market and Boden. Brexit has meant that the pound has weakened significantly and as a result the cost of clothing is increasing, which may result in Boden having to increase their prices. Brexit may also impact Boden in terms of their opportunity to expand into Europe. It may become much more difficult to expand the business in these uncertain times.

PESTLE analysis KEY ISSUES Rise of online shopping

SOCIAL

Rising age of population

IMPACT ON BODEN Social aspects that could affect Boden significantly are culture trends such as the rise of online shopping and the rising age of the population. Sales through online shopping are rapidly increasing (Euromonitor, 2016) and Boden needs to be aware of this change. This would impact Boden as they make most of their sales through their website. This means they need to grow their presence online to introduce more customers to their website where they can buy the products. Another social aspect is that “the population in the UK is getting older with 18% aged 65 and over and 2.4% aged 85 and over” (Statistics, 2017). David McCorquodale explains that “The age structure, ethnicity, household composition and demographic distribution of the UK population are all undergoing significant change and its implications are important for retailers to understand and anticipate” (McCorquodale, 2013). From this it can be said that Boden needs to anticipate these changes and possibly bring out a range targeting the older generation so that they are not limiting themselves as a business by cutting themselves off by a large and ever growing demographic section.

PESTLE analysis KEY ISSUES

TECHNOLOGICAL

Advancements in shopping technology Advancements in manufacturing technology

IMPACT ON BODEN Technology-wise Boden isn’t that advanced, however they do have a good website/social media accounts and an online wardrobe available to their customers. Boden needs to maintain their growth in this area if they are too keep up with competition as there are constantly advances in new technology and how clothes are being manufactured, marketed and purchased. Walter Leob stated that “technology will make shopping easier. Advancements include…personal recognition, digital wallet (Apple pay), artificial intelligence, consumer analytics and other tech driven initiatives designed to make shopping exciting both in stores and on the Internet” (Leob, 2016). From this it can be said that Boden has an opportunity to grow their business in terms of technology massively by introducing some of these aspects.

PESTLE analysis KEY ISSUES Data protection laws

LEGAL

Employment laws

IMPACT ON BODEN Legal factors that could affect Boden may be the introduction to new laws or the changing of old ones. Laws like the Data Protection Act 1998 and Employment laws would have a big impact on Boden if they were to change as they hold consumer information such as emails and date of birth; Boden additionally hire employees of many levels who need to treated appropriately and fairly in order for them to output the type of high standard servive they want their customers to recieve. .

PESTLE analysis KEY ISSUES

ENVIRONMENTAL

Consumer awareness of the environment Ethical trading

IMPACT ON BODEN In terms of the environment Boden needs to be aware that their consumers are becoming more aware of the environment and people will spend more on clothes that they know are being manufactured fairly and in an environmentally friendly way (Baker, 2015). From this Boden has to ensure they are remaining conscious of how they are manufacturing their products and what materials they are using. This is especially important as in recent years it has become more and more important to conusmers as they become more ethically aware.

personalisation & shopping reinvented

premiumisation

key consumer trends

healthy living

Shifting values and access to the internet have created a great deal of new competitors for customers. Consumers make purchases across many different platforms and merchants must be prepared to engage anytime and anywhere, expecially as buying habits shift from goods to services. The ideal customer journey weaves the brand into the entire experience, providing value before, during and after the purchase, converting a transaction into a relationship. Consumers are increasingly expecting retailers to engage with them in ways that suit their interests and lifestyle. The â&#x20AC;&#x2DC;Boden Womanâ&#x20AC;&#x2122; is very busy, and seeks for convenient ways to shop efficiently and effectively. If Boden were to introduce a tailored website for every Boden Woman, online shopping would be made much easier and more reliable, as she would be able to shop from anywhere, and according to her figure. This is important as the survey discovered that consumers find it difficult to purchase clothes that suit them and work with their body type.

personalisation & shopping reinvented

With more products available, at more price points than ever before, consumers can spend more on the things that matter to them while cutting back on those that do not. More consumers are turning inward, investing in becoming better; better organised, healthier, more responsible and more relaxed. From this it can be said that Boden should create a homeware line as their target consumer is willing to pay a premium price for good quality home ware products to make their familyâ&#x20AC;&#x2122;s quality of life better.

premuimisation

For Boden consumers their status and reputation is key, and this is why spending more on homeware is something they would strive to do to make them feel more content with their own surroundings and to create a home for friends and visitors to admire.

healthy living

Consumers are demonstrating a more holistic approach to wellness, encompassing spiritual and mental wellbeing, alongside physical health. This continued focus on health and wellbeing intails a wider lifestyle shift and evolving attitudes towards health care, nutrition, physical activity and overall selfimprovement. This provides opportunities for business to diversify, tailor and differentiate their brands by weaving health into product and service concepts.

For Boden consumers, health and vitality is very important, especially since they have a family to take care of. This is why itâ&#x20AC;&#x2122;s advisable that they should implement an activewear line.

micro environment

market health Boden’s within the Clothing Retail and more specifically the Womenswear market. Mintel (Sender Caron, 2017) stated that clothing sales will grow by “3.1% in 2017 to reach a worth of £57.7 billion…despite an uncertain economic backdrop”. However, in the Womenswear Report (Goody, 2017) it was said that for the womenswear market “sales are slowing considerably” as women are spending less on fashion. According to Goody, “the market is proving to be more challenging in 2017 as retailers are forced to pass on rising costs, due to the weakening of the pound” (Goody, 2017). One insight made by Mintel was that supermarkets are becoming fashion destinations, with more people choosing to purchase clothing during their weekly shop. This could affect Boden as their consumers may find it convenient to purchase clothing this way. Overall, even though the clothing market as a whole is growing, it can be said that womenswear is struggling as women are finding themselves placing fashion as being “less of a priority” (Goody, 2017).

competitors

Boden has a range of competitors as seen on the brand positioning map to the left, from The White Company, to Primark. Even though, Primark is an anomaly on the graph, they are still a big player in the market, because they sell the same range of products at a much more affordable price. The survey constructed stated that for 54% of the key demographic, affordability was their key concern. This is why Boden should bring out a basics range that is cheaper but still of good quality as this will attract the customers who don’t necessarily want to spend that much on clothing. In terms of Primark there is always a question of quality and ethics with their products which is the risk of cheaper having prices. Boden’s most direct competitor is Joules as they have the same target consumer and personable approach, Joules also have a successful homeware line which is another reason why Boden should introduce this to their product range. It can also be mentioned that mass market competitors M&S and Next have been struggling recently, with both having a “decline in shopper numbers” (Goody, 2017) and Boden has the opportunity to take the customers who are deciding not to shop at M&S and Next and attract these customers to their brand instead.

Other aspects are more important when shopping

Affordability is a key concern when shopping

Joules SWOT analysis

Strong brand identity

Limited retail support

Strong customer loyalty

Brand awareness outside of family and equine circles

Strong presence in equine industry Wide range of products (home and athletics)

Increase their online/ social media presence

Competitors rising in numbers

Expanding their international development/growth

Their relevance

It is important to consider the similarities and differences between Boden and their close competitor, Joules, because it gives a clear indication of how Boden could improve. The SWOT analysis (left) shows us that Joules has very similar strengths to Boden, however Joules has a strong presence in other markets such as the equine market and has a wider range of products than Boden. However, like Boden, they have limited retail support and low brand awareness. They too have the opportunity to increase their online presence and expand internationally. Again, like Boden, the competitors that surround them are increasing and as a brand their relevance is at risk.

conclusion & reccomendations

key issues

May become outdated and irrelevant Not enough of the potential customers are purchasing products. Limited product ranges. Lack of stores. 36

reccomendations Boden is already a successful brand but as they move forward they need to address a few concerns to maximise their success. One concern is that they may become outdated and irrelevant. To combat this, they need to ensure they maintain their social media accounts and constantly update their website to remain relevant. Another problem with the brand is that even though the awareness is good, that not enough of the people who know their brand actually purchase from them. To change this, they could introduce a basics range which would allow them to reach out to the consumers who feel that their brand is too expensive; they would then need to market this new range well through social media and online to get the awareness out. Another problem with the brand is that they may be limiting themselves in terms of their product ranges and hence the type of consumer that can shop there. A homeware line would be a good addition to their range as for their consumers their status and reputation is key, and this is why spending more on homeware is something they would strive to do to make them feel more content with their own surroundings and to create a home for friends and visitors to admire. Bodenâ&#x20AC;&#x2122;s lack of stores is another main issue, and to rectify this they should seriously consider opening more stores as they are a way that Boden can attract customers who donâ&#x20AC;&#x2122;t shop online and like the in-store shopping experience.

appendix, references & bibliography

appendix

photo references www.boden.co.uk

www.boden.co.uk

www.boden.jobs/aboutus

www.boden.co.uk

www.joules.co.uk

www.boden.co.uk

references

Baker, J., 2015. The Rise of the Concious Consumer: Why Busiensses Need to Open Up. [Online] Available at: https://www.theguardian.com/women-in-leadership/2015/apr/02/the-rise-of-the-conscious-consumer-why-businesses-need-to-open-up [Accessed 7 December 2017]. Boden, 2017. Why Itâ&#x20AC;&#x2122;s Great To Work For Boden. [Online] Available at: http://www.boden.co.uk/en-gb/help/what-is-it-like-to-work-for-boden.html [Accessed 6 December 2017]. Bowden, G., 2016. SWOT Analysis: Bodenâ&#x20AC;&#x2122;s China Ambitions and Bricks-and-Mortar Expanion. [Online] Available at: https://www.retail-week.com/sectors/fashion/swot-analysis-bodens-china-ambitions-and-bricks-and-mortar-expansion/7012016.article [Accessed 6 December 2017]. Elliott, L., 2016. Brexit is a Rejection of Globalisation. [Online] Available at: https://www.theguardian.com/business/2016/jun/26/brexit-is-the-rejection-of-globalisation [Accessed 6 December 2017]. Euromonitor, 2016. Conusmer Lifestyles in the United Kingdom, London: Euromonitor. Goody, A., 2017. Womenswear, UK - May 2017, London: Mintel. Leob, W., 2016. The Future of Retailing: The Technology Revolution is Now. [Online] Available at: https://www.forbes.com/sites/walterloeb/2016/08/09/the-future-of-retailing-the-revolution-to-technology-is-now/#547e740c4fc1 [Accessed 7 December 2017]. McCorquodale, D., 2013. How Will Demographic Changes in the UK Affect the Retail Sector, London: Retail Think Tank. Sender Caron, T., 2017. Clothing Retailing, UK - Ocober 2017, London: Mintel. Statistics, O. f. N., 2017. Overview of the UK Population: July 2017, London: Office for National Statisics.

bibliography Armstrong, A., 2017. Boden Marks Success with £9.3m Payout to Directors. [Online] Available at: http://www.telegraph.co.uk/business/2017/09/30/boden-marks-success-93m-payout-directors/ [Accessed 7 December 2017]. Baker, J., 2015. The Rise of the Concious Consumer: Why Busiensses Need to Open Up. [Online] Available at: https://www.theguardian.com/women-in-leadership/2015/apr/02/the-rise-of-the-conscious-consumer-why-businesses-need-to-open-up [Accessed 7 December 2017]. Boden, 2017. About Us. [Online] Available at: http://www.boden.co.uk/en-gb/help/about-us#Footer [Accessed 7 December 2017]. Boden, 2017. Our Ethical Policy. [Online] Available at: http://www.boden.co.uk/en-gb/help/our-ethical-policy#help [Accessed 7 December 2017]. Boden, 2017. Our History. [Online] Available at: http://www.boden.co.uk/en-gb/help/our-history#help [Accessed 7 December 2017]. Boden, 2017. Why It’s Great To Work For Boden. [Online] Available at: http://www.boden.co.uk/en-gb/help/what-is-it-like-to-work-for-boden.html [Accessed 6 December 2017]. Bowden, G., 2016. SWOT Analysis: Boden’s China Ambitions and Bricks-and-Mortar Expanion. [Online] Available at: https://www.retail-week.com/sectors/fashion/swot-analysis-bodens-china-ambitions-and-bricks-and-mortar-expansion/7012016.article [Accessed 6 December 2017].

Elliott, L., 2016. Brexit is a Rejection of Globalisation. [Online] Available at: https://www.theguardian.com/business/2016/jun/26/brexit-is-the-rejection-of-globalisation [Accessed 6 December 2017]. Euromonitor, 2016. Conusmer Lifestyles in the United Kingdom, London: Euromonitor. Goody, A., 2017. Womenswear, UK - May 2017, London: Mintel. Leob, W., 2016. The Future of Retailing: The Technology Revolution is Now. [Online] Available at: https://www.forbes.com/sites/walterloeb/2016/08/09/the-future-of-retailing-the-revolution-to-technology-is-now/#547e740c4fc1 [Accessed 7 December 2017]. McCorquodale, D., 2013. How Will Demographic Changes in the UK Affect the Retail Sector, London: Retail Think Tank. Mintel, 2017. UK: Boden Reported an Increase in Sales and Profit, London: Mintel. Sender Caron, T., 2017. Clothing Retailing, UK - Ocober 2017, London: Mintel. Statistics, O. f. N., 2017. Overview of the UK Population: July 2017, London: Office for National Statisics. Taylor, N., 2017. Boden to Debut Concessions in John Lewis Stores, Solid Latest Week Sales Impacted by Easter Sunday Closure, London: WGSN.

By Poppy West N0731532