The process of the task 'retail marketing plan' is, to build up and suggest a retail marketing plan (including growth and contingency planning) for a fashion company in the inexpensive section which is in this case HUGO BOSS. In addition a time plan, the budget and budget aspects regarding the proposed strategy plan have been presented.
Background
Hugo Manager Group is one of the market market leaders in the high grade fashion and luxury goods. It struck the sales of 1 1. 56 EUR billion in 2009 2009; the business has 9000 people working for it. Hugo Manager covers the main element fashion section like classic designed and casual fasion, shoes, leather, wrist watches, perfume and kids wear
Situation Analysis
3. 1. Hugo Manager Suppliers
The supply string strategy is very important to an organization like Hugo Boss because of its impact on demand levels. Quite simply, the inventory levels determine the demand for the business's products. The increased option of these products is likely to determine improved levels of sales.
3. 2Customers
Hugo Boss provides luxury products, from high quality clothes, to sportswear, shoes and accessories, fragrances, beauty products, and others. The products are created for women and men. The business addresses customers from 20 to 60 years of age. The most important customer section that the business targets is represented by young people, professionals, and individuals in the working class.
3. 3 Competitors
There are numerous companies in the fashion industry that address different market segments. The most important competition of Hugo Supervisor are represented by Gianni Versace, Armani, and Gucci. These brands provide luxury clothing items and accessories that goal individuals with high incomes, entrepreneurs, and celebrities. Their price range is comparable.
3. 4PESTEL Analysis
3. 4. 1Political Environment
The UK is a constitutional monarchy and Commonwealth realm. The most influential political gatherings are displayed by the Conservative Get together, the Labor Get together, and the Liberal Democrats. The politics environment in the united kingdom is a well balanced one, seen as a certain contracts between the key parties in the united states determined by international and national situations (CIA, 2011).
3. 4. 2Economic Environment
The turmoil that began in the U. S. has significantly influenced countries' economic steadiness, companies' market situation, and individuals' earnings. This resulted in reduced purchasing electricity of most customers, and lower profits in the case of retailers. However, the blissful luxury segment of the fashion industry was not as affected as mass markets.
The UK has one of the best economies on earth. The united states is a respected trading electricity and financial center. The country's production capacity allows the united kingdom to sustain its important position on the global market. The country benefits from a rigorous agricultural sector that comes after European requirements. However, the UK's GDP is mostly based on its services sector that firmly relies on bank, insurance, and business services.
Although the country's economy was characterized by sustained growth and enlargement, the global crisis combined with the importance of the financial sector resulted in reduced prices on the true house market, high consumer debt, and economic slowdown. This example motivated the country's administration to build up and implement a strategy intended to energize the economy and to improve the steadiness of financial market segments. The government's target is the reduced amount of the budgetary deficit.
3. 4. 3Social Environment
The country's society grows to 62, 698, 362 million. The metropolitan populace is of 80% of the total population. The ethnic groups in the UK are symbolized by white - 92. 1%, dark - 2%, Indian - 1. 8%, Pakistani - 1. 3%, merged - 1. 2%, other - 1. 6%.
The UK benefits from a culturally diverse public environment. The country's tradition encourages and helps diversity. Therefore, this environment is able to provide important opportunities for companies like Hugo Employer.
3. 4. 4Technological Environment
The technical environment in the united kingdom is incredibly developed. As one of the leading industrialized countries, the UK advantages from high technological requirements. The country's capability to purchase technological improvements has increased the requirements of companies that want to conduct business in the UK. This also leads to increased charges for these businesses.
3. 4. 5Environmental Factors
The regulations in the UK regarding environmental issues must maintain accordance with EU laws and regulations. Therefore, companies that develop activities in the UK must take these laws into consideration. Furthermore, there are numerous organizations that deal with environmental actions which often threaten the activity of companies that do not meet up with the requirements in this domain.
3. 4. 6Legal Environment
The legal environment in the united kingdom decides certain problems for companies in this country. This is because the country's legal code is based on the British common laws that decides numerous ambiguities. Lots of the country's laws are not written, making it problematic for companies to build up activities that meet up with the requirements of these regulations. However, given the actual fact that the country must implement European union regulations in the business field, a few of these problems have been reduced.
3. 5 SWOT Analysis
3. 5. 1Strengths
The most important strengths of Hugo Supervisor are represented by the high quality of its products and by its traditions on the marketplace. This allows the company to sustain its position on the marketplace and to appeal to an important amount of loyal customers. The business's marketing strategy that is easily to adjust to characteristics of different markets is another important strength of Hugo Employer.
3. 5. 2Weaknesses
The company's supply chain is most likely the most crucial weakness that Hugo Boss must address. In certain locations, the company is not able to properly analyze and calculate the sales for several items to be able to adapt the inventory to the demand in each region. Also, Hugo Supervisor addresses limited customer sections, which reduces the number of potential clients.
3. 5. 3Opportunities
The development of the company's international business signifies a great opportunity that Hugo Employer can exploit. The introduction of Asian markets offering great customer and creation potential has been identified by several companies in the field, and Hugo Supervisor should also develop strategies designed to address these expanding markets. Furthermore, Hugo Manager can reap the benefits of its capacity to increase its volume of stores.
3. 5. 4Threats
The strong competition in the field is the most crucial threat that Hugo Boss must take into consideration when growing its strategy. As mentioned above, companies like Gianni Versace, Armani, and Gucci are able to gain increased market talk about in comparison to Hugo Boss. Furthermore, the global financial environment can determine certain changes in the purchase behavior of the company's customers.
Objectives
The aims that Hugo Boss intends to target its strategy on are symbolized by:
Increasing market talk about by 5%
Increasing repeat purchase by 10%
Increasing volume of sales in the UK by 6%
4. 1 Increasing market talk about by 5%: THE BUSINESS'S market share is lower than that of its rivals. In order to increase its market share, it is strongly recommended that Hugo Boss address developing market segments in Asia, instead of challenging its opponents on established market segments. It is because this strategy reveals reduced hazards and bigger opportunities. By addressing these market segments, Hugo Supervisor can reap the benefits of a sustained command position that its competitors will dsicover difficult to test.
4. 2 Increasing duplicate purchase by 10%: That is a strategy which allows the company to increase its sales level with reduced investment funds, in comparison with strategies based on increasing the amount of customers. By aiming for repeated purchase, Hugo Boss can increase the loyalty degrees of its customers.
4. 3 Increasing the quantity of sales in the united kingdom by 6%: The UK market presents important development potential for Hugo Manager. Therefore, it is recommended that the business invests in the markets where Hugo Supervisor has a much better position.
5. Strategy
The strategy of Hugo Employer is dependant on addressing the following issues:
Sustained brand management and differentiation
Development of product segments
Retail concentrated orientation of the business's collections
Internationalization of distribution
Increasing profitability
The company targets sustained brand management and differentiation to be able to support its international operations. The business's brand philosophy is based on its high quality brand portfolio. The constant brand development of Hugo Employer is intended to develop a system that allows the business to improve its profit potential.
The company's brands are differentiated by fashion affirmation and price segment. Which means that the business addresses different customer segments targeted selectively with diversified communication strategies (Hugo Manager, 2009). In addition to this, the company's differentiation strategy calls for into consideration the fact that its customers relate the Hugo Manager brand with high quality.
The company's development strategy is also predicated on the development of different product sections in accordance with the requirements of customers. These advancements treat the menswear segment, the womenswear and informal fashion segment, and the shoes and leather accessories. To be able to reach this objective, Hugo Employer has blended the functional areas of brand and creative management.
Hugo Supervisor also intends to reduce some of its costs by the retail concentrated orientation of its choices. Quite simply, Hugo Boss intends to build up product amounts for flexible retail spaces. The goal of this strategy is made up in increasing the sales output.
5. 1 Product Strategy
The product strategy that Hugo Employer develops for its retail lines should be relatively modified. The company should make an effort to develop clothing items predicated on trends recognized as appealing to its customers, instead of experimenting with styles that might not help customers in the UK. It is less risky for Hugo Manager to adjust its product lines to the movements that have proven to be successful in the united kingdom.
5. 2 Costing Strategy
The price range in the UK market is likely to be similar to that in the company's local market. This is because the differences between your customers in these countries aren't significant. It is not recommended to lower the prices compared to those of competitors because it might influence the image of Hugo Supervisor.
5. 3 Distribution Strategy
Given the actual fact that Hugo Supervisor has its own retail stores, the excess sales margin allows Hugo Manager to concentrate on retailing somewhat than on wholesales. Furthermore, the company is rolling out a successful online retail activity in the united kingdom that is intended to be expanded far away also. This enables the company to boost its distribution activity and its own sales.
5. 4Promotional Strategy
The company's promotional strategy should be predicated on advertising mainly. This sort of promotional activity raises brand consciousness and informs customers about product advancements and price levels. Promotional activities on the web provide great potential in getting customers.
5. 5Position
The company's current market position on international level is that of a follower. This is because Hugo Boss did not manage at increasing its market talk about in comparison to its rivals. Companies liked Gianni Versace, Armani, and Gucci have a much better position on the marketplace. However, the business's price range will not allow Hugo Employer to contend in other market sections.
The objective of this strategy is to improve the company's market talk about. This would allow Hugo Boss to become an important challenger to the control position in the forex market. Also, by extending its activity in expanding countries, Hugo Boss can reap the benefits of strong market positions in these countries that would permit the company to improve its relationship with its competitors.
Implementation
The promotional mix for Hugo Supervisor will concentrate on
In the UK using Television advertising to boost the brand awareness considering the pursuing aspects which lead for sufficient ad: Time of the year, time of the day, the route and the distance of the commercial. Hugo Manager can also take an advantage of it advertising cost decrease as a result of wide choice that viewers now have with intro of dish.
Internet promotional activities (Muhlbacher et al, 2006). Utilizing the service of internet to improve their e-commerce and extend the service feature in the UK using the same learning been used in Germany when the relaunched their online shop at the beginning of Sept.
Hugo boss provides sponsorship for sports activities events to be able to promote its sportswear brand and for other occurrences that the targeted customers are interested in (Chaston, 2009).
6. 1 Prices strategy
Given the global financial environment that affects companies' activity, Hugo Manager should address the UK market with demand based pricing. The business's position on the market and its aims don't allow Hugo Boss to practice prices quite up to its competitors. But the difference between their prices cannot be extremely significant, because this might lead to incorrect assumptions from customers.
6. 2 Hugo manager BCG MATRIX
In the BCG matrix, Hugo Employer on the UK market can be viewed as a question mark. This is because the investments created by the business in this market did not produce high levels of profits (NetMBA, 2010).
6. 3Store design
Hugo boss shop designed from the above marketing plan will focus on to have the pursuing aspects: architectural style and fine detail, colors and textures. A store in a Victorian brownstone building, for example, will display images associated with the building's architectural age, such as warm, attractively and comfortable.
As well as focusing on the store sign can be an essential element to identify the store by the clients, so by employing new techniques like adding movements, or using three sizes lettering as well as using unique lamps.
Store entry: whether outside the house or inside environment. Such as for example Mall retail they ought to create a seamless entry from the mall to the store and make an effort to produce an wide open storefront, either by removing storefront obstacles or by creating an unobstructed view into the store with cup windows.
Control and Monitoring
7. 1 Survey
The investments created by Hugo Supervisor on the UK marker must be attentively monitored and measured. Client satisfaction is vital in the retail sector. To be able to measure it, the company must identify customer objectives. On the united kingdom market, Hugo employer must examine its customers' anticipations by conducting some surveys. These studies should be directed to customers and to the sales force.
7. 2Customer satisfaction
Based on the evaluation of these targets, Hugo employer should develop its product and costing strategy. Furthermore, the company should perform other studies each season to be able to judge whether customers' targets were met. In addition to these research, Hugo Supervisor should monitor the many websites about fashion that analyze the business's activity.
7. 3Employee determination and training
The activity of employees must be evaluated. This is because some of customers' satisfaction relies on the services they receive in Hugo Employer stores. This means that the business should pay great focus on the motivational strategy it evolves and implements regarding salespeople. Although this is mirrored in increased costs, the return on investment is likely to improve.
7. 4Budget
Marketing expenses are likely to require significant budget allocations. It's important that Hugo Employer invests in its promotional strategy on the united kingdom market, given the business's position and its own objectives. Furthermore, it is strongly recommended that Hugo Supervisor also displays the evolution of its opponents' market share. How big is its competitors and their strategies determines specialists to consider that companies in this market will probably develop oligopolistic habits. It is because the strategy of 1 of the companies determines similar strategic replies from its competitors.
Contingency plan
Alternative plan has been made to help Hugo manager avoid any sophisticated problems they could be face through the implementation of the recommended plan.
Technology is growing faster every day so Hugo manager can stress more on online shopping and improve the supply string and distribution channel, in addition to use unique promotion techniques to notify and persuade new customers and remind the old customers that Hugo Supervisor has powerful online futures.
Recommendation
If the advised plan works competently and reach the targets within the next three years, then Hugo Boss should enter a fresh segment, interior design. web site well be suitable for the customers to personalize their choice of furniture.
Conclusion
This marketing plan has been created to improve the sales, earnings and customers satisfaction of Hugo Employer.
