All the profit-making organisations set up marketing plan as it helps an organisation to generate greater revenue. An organisation’s strategy combines with all marketing objectives that may lead to one comprehensive plan. In order to set marketing strategy, an organisation needs to marketing research. Marketing strategy should focus target market of an organisation. Each of the company has its own distinct target market. This report focuses on the Australian based fashion clothing organisation Jeanswest. In the first part of the report, concept of the target market will be discussed with analyzing the selected target market of Jeanswest. In the latter part, marketing strategy of Jeanswest will be analysed through theoretical standpoint. Lastly, recommendations will be given based on the analysis.
Jeanswest is an Australia based apparel organisation which as chain stores all over Australia and this organisation is operated under Glorious Sun. Jeanswest operates mainly on casual fashion clothing, jeans, denim, men’s clothing and women’s clothing. The organisation is famous for collection of blue denim both females and males. Jeanswest has its distinct division for maternity wears for women. Jeanswear organisation has more than 218 stores in all over Australia and New Zealand. In addition, Jeanswest started its journey in the year 1972 when it established its first store in Perth (Jeanswest.com.au. 2017). In the first occasion, this organisation started its business in Western Australia. Glorious Sun made the acquisition of the organisation in the year 1994. However, it has Jeanswest Australia store in Mauritius and in the Middle East.
Jeanswest is famous for women denim jeans. This organisation has complete range of women denim and it is famous within the age range between 13 and 40. Blue denim is their best selling product under the category of women section. This organisation has its online store and customers can select their products through images with having various sizes and colour. The indigo denim for women of Jeanswest sells most in Australia for women. The denim looks like the sturdy cotton textile through which the weft in jeans passes under warp threads. The organisation sells the product of women jeans using tag line of ‘Fits Best’. The division of women denim ranges vastly, named, high wasted skinny, distressed cop, patched slim and straight jeans.
In order to set a target market of an organisation, it is needed to segregate the market segmentation. Market segmentation can be categorised into four bases. The first one is geographic segmentation and it is based on customers’ location, region, rural-urban division and classification of customers. As stated by Baker (2014), demographic segmentation is based on age, gender, occupation, socioeconomic group. Behavioural segmentation of customers is based on rate of usage of products, benefits, loyalty status and readiness to buy a product from the organisation's store. Lastly, psychographic segmentation is about personal preferences, lifestyles of customers, class and attitudes of the customers.
In this regard, segmentation of Jeanswest makes its market segmentation. This organisation follows the segments of demographic and behavioural bases. In demographic bases, the organisation mainly focuses on ages of the customers. In fashion clothing industry, teenagers and Middle Ages customers opt to choose new fashion clothes. In addition, as these products are costly according to market price, Jeanswest chooses higher earning class. Jeanswest organisation chooses both males and females as their segments of choices as both genders wear denim jeans. Moreover, in behavioural segment, the organisation focuses on loyalty of the customers. Jeanswest has a great customer base in Australia and they started ‘Frequent Flyer' loyalty programme for the customers. This loyalty programme provides great rebate and deals to the selected customers.
Therefore, the selected target market of the organisation is teenage section and middle aged individuals in denim jeans. Target market of Jeanswest is mainly upper-class people of Australia as the denim is costly. Blued denim has great demand and mainly women shop regularly from stores all over Australia and these denim jeans cost for women from $99 to $199. Target customers of Jeanswest have ‘repeat purchasing’ value as this organisation provides loyalty bonus and the customers are ready to purchase new arrivals always. Moreover, the organisation launched Butt Cam jeans for women stating that these jeans have lifetime guarantee with recognition to the valued customers giving discounts up to 15%.
In positioning of the products, the organisation selects the stores and it has more than 190 stores in Australia and other stores in New Zealand, China and the Middle East. Most of the stores are in an urban section and these are near metropolitan cities. However, Jeanswest has online stores and people all across Australia can shop from this having discounts. As stated by Weinstein and Cahill, (2014), in case of value proposition, the organisation focuses on fashionable clothing that can afford most of section of target market. Jeanswest strategy to retrain target market is to provide cutting edge fashion and that must have latest styles for women. In addition, in retaining customers, Jeanswest gives large choices to the target customers from which they can choose their clothes. Moreover, organisation reduces manufacture quantity of each product that creates artificial scarcity in the market and target customers start purchasing the products from time it hits the market.
Marketing objectives of the organisation Jeanswest are:
- To increase customer satisfaction
- To continue to grow by extending Jeanswest fashion brand globally
- To extend market share by 5% by the end of 2018
- To increase brand awareness among consumers and profitability
Jeanswest organisation focuses mainly on the brand loyalty of the organisation and setting a target market with middle ages and teenagers. Jeanswest organisation brings the latest design in world and the customers have the best fabric and blue denim. Marketing of Jeanswest is based on the position in the market. Jeanswest organisation has competitors in the Australia, the competition in market are, David Jones, Myer, Pop-up retail, Country Road and Cue. Jeanswest needs to have a good marketing strategy in order to cope up in market. Philip Kotler stated that marketing mix is a combination that should be controlled by the organisation to motivate customers to buy products. Marketing Mix of Jeanswest:
As commented by Hennart (2014), products of an organisation can be both tangible and intangible. All the products of an organisation must have product life cycles. Organisation’s marketing team should know the unique selling proposition and benefits that products offered. Jeanswest organisation is a fashion brand that makes apparel for both male and females. Jeanswest organisation sells best apparel in market of Australia and their blue denim jeans are famous. Moreover, the organisation has great range of female jeans and blue denim have a great customer base. In addition, this organisation has brought a range of maternity jeans for women with large waist size. Jeanswest organisation researches the market according to the needs and desires of the customers. Their products suit the Australian weather and culture and college going girls and middle aged women largely buy their products. Jeanswest has brought long straight jeans for Middle East women and they have bought Icon jeans for men. It makes clear that variety and quality both are important for Jeanswest.
Price is all about the amount that the end users have to pay for a product. Pricing has perceived value of a product rather than the objective cost (Poon et al. 2017). An organisation must have a pricing strategy before sells a product and it must achieve the revenue target of the organisation. Jeanswest organisation takes higher-pricing strategy as price is higher than the local market. It makes a sense that organisation sells quality product to the customers with global name. The other brands with affordable clothing are competitors of Jeanswest. Jeanswest’s price strategy can be called price skimming as the organisation charges highest price and the customers need to pay the price initially. In this way, the demands of products get satisfied, Jeanswest lowers the price in the more-price sensitive segment. Customers of Jeanswest are mainly fashion conscious and they are from upper-income group millennial. In female jeans products, the ranges of product in pricing are various and customers can choose among various price range. As stated by Bharadwaj (2015), the customers provide values to product pricing. In this way, if values are positive, then the products will be a ‘hit’ in the market. In recognising the perceived value of a product, Jeanswest can make a survey in the market through social media.
As opined by Lueg et al. (2015), place is related to concept of where the customers can get the products. In making choice about place, the organisation needs to set the distribution channel. The place strategy of products to the stores plays a vital role. David Jones, the rival in the market of Jeanswest sends the new products in the stores within 30 days of the launching and this strategy sells the products more. Accessing products in large quantity and proper place is needed by customers. In Australia, Jeanswest organisation has more than 190 shops and online presence. However, the organisation is trying to expand the online stores and it would enable the organisation to reach a large number of customers. All stores of the organisation are near large city; customers can check new design through online and buy them in the stores.
Promotion is the market communication strategy to the target customers, in this respect; the organisations select the promotional activities. These strategies include social media advertisements, television advertisements and hoardings. Promotions increase public relation to organisation and increase brand value (Brito et al. 2105). The promotion makes the connection to organisation and end-users. In entire marketing function, promotion is the communication aspect. In selling their new denim or designer clothing, Jeanswest organisation does not make aggressive advertisements. Jeanswest uses word-of-mouth public relation. Jeanswest tries to make customers happy as the organisation sells best quality products. The distribution and pricing strategy of the organisation play an important role in promotion. Sometimes, the Jeanswest organises fashion week to promote their newly launched ranges of products. This increases brand popularity. Moreover, in a social network, the organisation has strong presence. Jeanswest engages the customers in social media and they make loyalty programme. In making advertisement campaign, the organisations can arrange promotional partners and in fashion retail industry, power of partnership is very important (McAlexander et al. 2016). Most importantly, Jeanswest organisation focuses on the ethical sourcing in production of jeans and denim. The organisation follows standard code of conducts in manufacturing the products with signing the cotton pledge on the website of the organisation.
Jeanswest organisation is not in the industry and it has several competitors in the market. However, this organisation is trying to make its foothold as a global organisation. Jeanswest organisation follows vertical integration in merchandising the products in the Australian market. However, in marketing the products and correcting the target market, some of the recommendations as follow:
Jeanswest organisation can target through interested fashion trends of the customers. Of late, customers are getting more fashion conscious; Jeanswest organisation can target the customers who are conscious about their looks. The people who like to shop and socialise can be new target customers.
Jeanswest organisation takes price skimming strategy; however, affordable pricing strategy would help the organisation to penetrate to middle-class people. Reaching a large number of consumers will eventually increase the sales. EDLP (Everyday Low Price) strategy will increase customer base
Social media marketing is not strong of the organisation; however, it has social networking pages on Facebook, Twitter, Instagram and You Tube. Jeanswest has 1,33,000 (approx) likes on Facebook. Social media marketing is cost-effective and can reach the customers easily with attractive images and contents. Jeanswest organisation needs to take social media strategy effectively with community support programmes that will enhance their CSR.
Jeanswest organisation is one of the largest fashion retail organisations that sell mostly luxury denim jeans. Jeanswest’s target markets are selective and the organisation needs to flourish it. The organisation needs to alter the pricing strategy in order to reach large market segment. Visual branding is now important, Jeanswest organisation can start digital marketing through social media and best quality images must be posted there. In a country like Australia, fashion retail and apparel industry have scope to flourish and Jeanswest organisation with focusing mainly demand of the consumers rather than competition.
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