Industry Overview: Marketing Opportunities

The increasing adoption of technology is boosting the growth of the industry’s revenue. According to IBISWorld, UK women’s clothing retailing industry has been growing steadily over the past five years due to the positive impact of the adoption of IT. Most busy consumers use online shopping.  The 2009 global recession made it more reasonable for many women to go online for the best deals. Consequently, the number of women who began using IT increased in 2009, and since IT offers a convenient means to shop online, the number of customers using this tool has been growing since then. Over the same period, however, traditional retail operators invested heavily in expanding their online operations, making a stiff competition something that Sasha’s must be prepared to deal with (Online Women’s Clothing Retailing in the UK 2017; The UK clothing market 2000).

The UK’s clothing industry is estimated to have a low-level concentration of the market share, with the top four operators accounting for approximately 18.3 percent of industry revenue. IBISWorld considers that this show that the market is highly fragmented and forecasts that enterprises will grow at 6.5 percent in 2017. The industry will continue to grow exponentially with the increased use of Internet services that support expansion.  Larger operators will tighten their grip on the industry, and this will most likely lead to an increase in market shares. Sasha’s must give invest considerably in IT and marketing to be able more competitive and be among the top four established operators (Online Women’s Clothing Retailing in the UK 2017).

The positive performance of fashion companies in the UK is an incredible indicator that other forms to succeed in the same market. However, given that most of these firms, such as the Next Plc, have a high market value, Sasha’s must have an adequate understanding of this market and have an adequate amount of resources to be prepared to compete (Long et al.  2014; The UK clothing market 2000).

Next Plc has a market value of 8.15 billion pounds, making it the largest fashion company.  It is active mainly in the retail markets in the UK, and it is from this single market where Next most of its 4.0 billion pounds of annual sale. Only two percent of its total revenue comes from international retail. This means Sasha’s can consider investing in the international market as well (Strijbos 2017).

The number two in the top five largest fashion companies in the country is Marks & Spencer. This retail giant is currently valued at over seven billion pounds. In addition, it has annual sales of approximately 10.3 billion pounds. Mark’s UK food division is ever expanding. However, its fashion and general merchandise sales have been on the decline for the past few years. The UK division, however, still accounts for about 89 percent of its total annual sales. The sale of fashion is still good. However, Sasha’s to find out the reasons for this decline and consider investing heavily in this market (The UK clothing market 2000; Strijbos 2017).

Continuing IT Adoption

Arcadia Group, with a market value of 5.9 billion pounds, is the third largest UK fashion company. This company is the not publicly traded. It chains, Topshop and Topman, are expanding internationally.  Burberry is the fourth largest fashion company, and it has a market value of approximately 5.8 billion pounds.  The brand is valuable given that it has revenue of about 2.5 billion pounds (Vorwerk & Ghanouni 2014).

Look New rounds off the top five UK-based fashion retailers. This privately held company is valued at 4.4 billion pounds, and their annual sale was over 1.5 billion pounds by 2015. The positive performance of the companies shows that Shasa’s can succeed in this market. However, it must do adequate research so as to be able to perform much better (Strijbos 2017).

Many people in the UK are currently employed in the fashion industry. This viability makes the clothing industry a strategic segment of the UK’s economy.  According to Guardian, major grants for investment in machinery and increasing orders for British made products make it possible to invest in the UK and make substantial profits. Sasha’s can target several consumer segments and exploit them (Gould 2014).

Fashion United approximates that 555, 000 people are gainfully employed in fashion, textile, and fashion retail in the UK.  The retail sale of clothing offers the highest fraction of these jobs. It employs 75 percent of the total population, with 414, 000 people employed in the sale of clothing (The UK clothing market 2000; Gould 2014).

Additionally, the retail sale of both footwear and leather goods offer a substantial amount of jobs in the country.  Fashion United also provides that approximately 11 percent, which is 59, 000, employers work with in this same sector.  Further, eight percent, 43, 000, are employers who are in the wholesale of clothing and footwear.  With 34, 000 and 5, 000, six percent and one percent respectively,   the least number of jobs with in this sector are found in the manufacturing of wearing apparel and the manufacturing of footwear.  The lack of many jobs in this sub-sector may mean this market has not been exploited, and based on research outcomes; Sasha’s can create more jobs in this area (Gould 2014;The clothing industry 2001).

The UK market boasts of a growing demand for women’s clothing products. The ideal reason Sasha’s should segment this market is to identify customers who are willing to buy its products. When segmenting the market, Sasha’s should focus on demographics, personalities, and needs.  These are the main segments that it should consider (The apparel production sourcebook 2010).

This consumer segment refers to young, urban women with mid-range spending habits and confident style.  They look for individuality in the clothes that they buy. These young women, aged between 18 and 35, are well aware of fashion trends but instead of depending entirely on the dictates of any particular season, they shop for clothing that suits their unique personality. The clothes are an extension of their personality (Preez 2001).

In addition, the spending of this class of women is a little above that of average women, and they lean towards the mid-range priced items. However, in special circumstances, they can splash out a costly label. Individual urban trend are not bargain shoppers. At the same time, they hardly buy a large number of items because their focus is to buy vital items for their look that they feel best suits them (Beautiful bride cut-outs, 2010).

Healthy Business Environment: Fashion Companies

Individual urban trend also prefers shops such as Gap or Henness because they feel these types of shops represent their individual styles.  In addition, they prefer smaller independent stores. They believe they are able to get clothes that will make them stand out and reflect their individualism from these independent stores.

A typical shopping trip for this particular segment will include a wander around shops that are near their place of work, where a few special or small items can be bought. In addition, they make effective use of the Internet when they want to do online shopping or to search for items that perfectly reflect their styles (Preez 2001; Woodall et. al. 2004).

When these individuals shop, they use credit cards.  Although they have these cards and use them, in most cases, they tend to avoid relying on credit to fund their clothing spending. Instead, they often use debit cards. Another key characteristic of this consumer segment is that these young women are sharing their homes with their workmates, partners, and friends and live in flats in the up-market urban areas (Kotler & Armstrong 2012).

This segment enables the UK clothing industry to make more money by producing products that meet their needs.  Since they have a high spending capacity and are looking for individuality, they have the capacity high quality items and pay more for items that they believe are an extension of their personality. Since these live with other people, especially their friends and partners, they have the ability to influence these people to go for products that uniquely defines them and reflects their styles as well (Preez 2001; Brown & Orsborn 2006).  

This segment belongs to middle-aged women who like sporty, practical styles purchased cheaply. These women have a desire to look pretty but are more concerned about buying clothes that are functional.  Their priority is achieving their purpose for the day, and not looking good. These young women, between the age of 36 and 55, are highly likely to put on their clothes until they wear out. Change or a new trend is unlikely to be one of the factors that can influence when they will buy new clothes. Women who fall under this segment category consider that they know more about fashion than anyone else. However, this is often more of a reflection of their unwillingness to conform to the demands of high fashion (Diamond & Diamond 2008; Brown & Orsborn 2006).  

These women will buy clothes whenever they are in a position to do so and in most case, they will pay with cash. This segment’s total expenditure on clothes is often below average, but their total expenditure per item so often above average.  This attributes points to the fact that these women focus on buying essential clothes rather than many cheaper alternatives.

 Further, a critical feature of these women is that they buy clothes for their children. However, there chances of buying clothes for men are incredibly low.  Women in this class are the type with the largest differential between the amount spent on men and the amount spent per item on their use.  This main reason for this difference can be attributed their practice of not buying everyday items for their men but do for their partners (Diamond & Diamond 2008).   

Employment Opportunities and Market Availability

These women prefer buying sporty clothing mainly because it is easy to put on and are relatively cheap. They can use their clothes to make a statement.  Whenever they do so, the purpose is to define themselves a member of their community. Their favorite shops include Sports World, JD Sports, and Woolworths.  Main items that these women buy are socks, jogging bottoms, trainers, and underwear (Diamond & Diamond 2008; Brown & Orsborn 2006).      

Practical comfort enables the UK women’s clothing industry to sell their old stock as these women are now concerned about style.  Clothing companies do not have to do a lot of research to be able to meet their needs. This factor helps the industry to cut down on wastage. The industry can also design clothes that help them to send a statement (Diamond & Diamond 2008;King 2008).  

High Fashion for Less is a term used to refer to women for whom fashion is incredibly critical and have a deep desire to always dress in the latest trends.  Nevertheless, their level of income restricts them in choice. These young women live with their parents. While this can help them to reduce their living expenses, their low income or being out of any gainful employment still makes it hard for them to buy the type of clothes that they need. From their viewpoint, however, they consider that most of their money goes to clothes. They treat shopping of clothes are a leisure activity and spend a lot of time at it.

These women consider buying the right major items as more significant than the number of clothes than they own.  Women in the high-fashion-for-less category would rather have a few expensive but perfect clothes than several low-quality clothes (Pieterse 2014).

Since these women are aware of budget constraints, price is a major consideration for them. However, given their ability to make sensible choices, they are able to get the type of clothes that they need without compromising on their unique style. They cannot let a chance to buy the right style pass as they watch, which makes their spending slightly above average. For this category of women clothes are definitely a way to express their personality. They are always pleased to experiment with new looks and brands. Factors such as durability, comfort, and practicability do not affect them. They will buy at least one item in every season for the new trends (Choi 2014).

 Some their most favorite outfit are strappy vest tops, boots, and trendy jeans. The chances of their jeans having a nice belt are quite high given that they carefully consider the types of accessories to use. For them, small details, including things such as matching the underwear, make a lot of difference.

The high-fashion-for-less group considers shops that provide the newest fashions at the most affordable rates their favorites. This factor explains the reason they are the biggest spenders at shops such as Top Shop, Dorothy Perkins, and New Look. These are young women below the age of 25 and known for their habit of spending using credit and debit cards. This market segment also enables the industry to make a lot of money since they are prepared to pay more money for clothes that are an extension of their personality.  They also value high quality accessories and are willing to pay more for quality.  Besides, since many young women fall into this category, it enables fashion companies to produce a large quantity of cheap, but trendy items, which in turn mean high volume of sales. Sasha’s can invest in diversification to win this segment (Choi 2014).

Consumer Segments Driving Growth

Women who are under this category are mothers with sensible buying habits and buy shoes for both their children and themselves. They are forced to take a rational approach simply because their budget is not high. The best place for them to shop is mainstream large stores. In these stores, they are able to buy many practical types of attire for their children. Some of the benefits of buying in these stores include the surety that the clothes will be comfortable and durable, fun to put on, and enables them to afford many clothes so they can save having the washing machine on most of the times (Grebe 2011).

This class of women is top buyers of shoes for boys and girls, underwear, shorts, trousers, skirts, cardigans, and dresses.  Besides, they have prefer shopping at out-of-town stores because they are able to find plenty choice in these large shops within an incredibly short duration without having to fight for space within the city center crowds.  Next, Tesco, and Mothercare are some of their favorite shops.

The priority of family sense women lies in saving both money and time, not trendy fashion. While they care about how they look, they do not have a lot of time to spend shopping for trendy fashion. If they had the opportunity, they would enjoy an outing for clothes.

Due to lack of exposure, they often develop a feeling that other people know about fashion than themselves. This feeling of inferiority makes it difficult for them to try the latest fashion, unless when are sure it will suit them perfectly. Nevertheless, they still constantly make attempts to catch up with the latest trends (Grebe 2011).

 Since the demand of their young families means that they have plenty of things to pursue and with many mothers being at home or employed part-time, they do not have a lot of money to spend on clothing, which makes pricing to be a central issue to them.  These mothers’ total expenditure is often far below the average, and because they do not have an adequate amount of time to hunt for sales bargains, they choose their items sensibly.  They spend mostly based on debit cards.

As family sense can browse in the evenings, the Internet provides them with an ample opportunity to look for the right items. These women are aged between 26 and 35, are living in mid-range suburban settings, and are either married or cohabiting. They help the industry to grow by helping to promote the building of stores outside the city center. In addition, since they care a lot of quantity, rather than quality, they help the industry to sell products that moist women cannot buy (Grebe 2011; Regan 2008).

This consumer segment is that type of women for who fashion matters but are not able to dress the way they need due to budget limitations.  For this reason, they buy a limited number of clothes that help them to put in a manner that they would prefer. These women often buy basics cheaply so as to keep a chunk of their money for wardrobe fundamentals. This is a sensible strategy that enables them to appear better dressed than they can afford (Adlington 2013).

Restricted wardrobe are very keen to send strong messages with the way they way put on and use much of their time putting together the right look within a small budget. One thing that is close to their hearts is buying items that are trendy. Most members of this consumer segment are young, aged between 18-35, and their income is still relatively low, or they have several items on their budgets. Some of them have just moved into their first property, a new career, or are singles with young children to clothe (Adlington 2013; Long et al. 2014).

The key items on the budgetary list of these women include an ultra-trendy pair of boots, inexpensive jogging bottoms as well as hair accessories.  These women often share flats in urban areas, and their favorite shops include River Island, Woolworths, and Top Shop. This segment helps the industry by creating a market for many cheap accessories and a few quality fundamentals (Solomon & Rabolt 2009).

Shoes and mortgages are young women, and the main focus of their budget is their family. They spend a significant amount of their time looking after their children. As a result, they have no time to keep up with fashion for the period when their focus is family.  Many of these individuals have recently taken on significantly large mortgage payments as they moved to the spacious house to take care of their family needs. Their biggest drivers for making purchases include functionality and practicality, not to new fashion trends, not brand names or quality (Solomon & Rabolt 2009).

The total spend by these women is approximately average for all females. However, a significantly higher position goes on their children. Favorite shops for shoes and mortgages include discount stores like Quality Seconds and others such as Gap and Adams Childrenswear.  The key items in their budgets are t-shirts, and they tend to be aged between 36 and 45. They create a significant market for children’s’ attires. Since all that concerns then is functionality and practicality, they help the industry to produce cheap products for both children and women in bulk (Solomon & Rabolt 2009).

Sasha’s is planning a trial launch in London in June 2017.  It has a huge target market going by the above consumer segments.  In the trial launch, Sasha’s aim is to meet the requirements of women of all ages that belong to the various segments (Suthrell 2004).

Sasha’s has to decide whether it wants to create products and then market them to its target customers or research and discover what the market wants and provide it. Sasha’s can decide to engage in both product-oriented and market-oriented plans.  If the company wants to do this, it needs to produce a wide range of products that appeal to all its target customers.  These may include formal wear, footwear, casual clothes, and lifestyle accessories like bags, belts, fragrances, and watches. Sasha’s needs a strong brand image that can tie these products together. Some of the product offerings under Sasha’s brand name are t-shirts, vests, bats, skates, and footwear (Easey 2009).

The unique selling proposition is to produce the latest fashion. However, it also wants to meet the needs of their segments of the market that are price sensitive and do not care a lot about trends. Some manufacturing units of this company should be located near the source of raw materials to ensure that new styles are available within two weeks. If it finds that any product is not selling in the stores, the marketing department can quickly pull it from the stores (Easey 2009; Hines & Bruce 2007).

However, in some segments, the company has a few problems to sort out. Key among the factors is the lack of seasonal variations in range. It needs to deal with and cope up with the cultural needs of the local people .which is a major challenge. Sasha’s is working towards reaching out to the local people by creating designs that integrate modernism with local traditions for women who want to catch up with new styles but fear that they may not fit (Linsenman & Kingaard 2011).

The way the public views Shasa’s has a direct impact on its performance.   Its image should represent a stability of quality and meaning associated with the collections of a designer that will carry over for a long period.  The best way to brand is adverting as it appeals to selective instead of primary buying motives (Linsenman & Kingaard 2011).

From TV channels that are dedicated to matters relating to fashion to fashion magazines, it is clear that the company can use mass media to promote its fashion brand. Through the media, it can learn many new seasons’ fashion trends and adopt the most attractive ones immediately. This will help segments that want to learn about fashion to fear to do it in public (Galloway et al. 2011; Mooij 2004).

Sasha’s can collaborate with media artists to promote its image. When key media personalities endorse their products that improve its brand image. Hollywood celebrities, for example, are considered representatives of fashion and they can help the company promotes its image (Lawson & Dyson 2008).

Other than the above-the-line approach, which uses media over which the company has limited control, Sasha’s should use below-the-line strategy as well. This other strategy involves using the media over which it has control such as direct mailing. This alternative can give more reasonable responses and be more cost-effective.  By using these two strategies, it will succeed at informing many people about the products, and through this increase the desire of customers to buy its items (Linsenman & Kingaard 2011).

Sasha’s should carefully evaluate the markets in which its products are aimed at and set an appropriate price match.  It can consider some pricing strategies. One of them is cost-based pricing. In this case, it has to set a selling price that covers the cost of manufacture. An alternative is market-oriented pricing, which considers some factors (Kotler & Armstrong 2012).

These factors make it possible for a new product to penetrate the market with ease without making losses. One them is market penetration.  In the beginning, Sasha’s can use this approach and price its products low so as to attract a considerable volume of sales. The next approach is market skimming.  In this case, the company must be prepared to use premium pricing so as to give high revenue volumes while the items are still unique in the market (Standish 2016).

Other approaches are premium pricing and economy pricing. In the case of the former, the company ensures that the product is unique and exclusive to enable it to command a high price.  Economy pricing is also popular. It applies to basic products, such as accessories for meeting the needs of shoes and mortgages segment. The manufacturing cost and marketing cost are kept to a minimum (Kotler & Armstrong 2012).

Sasha’s should consider that the price of its items needs to relate to their perceived value. If it charges low prices, it should expect a higher volume of sales. However, it should expect fewer sales of luxury products. If these luxury products meet the needs of its target market, the company can charge higher prices for high fashion for less or individual urban trend segments and realize the same revenue.

The company should have a system for detecting where products are positioned in the market.  Each item that it produces will behave in a different way. Its “aspirational” products such as designer gear are more likely to be bought at high prices. They are not priced sensitive because most people are prepared to pay premium prices for the latest styles or individuality (Kotler & Armstrong 2012).

Low-priced items usually copy the market leaders and are generic brands like the ones manufactured by supermarket chains.  In this case, the price is used to indicate value-for-money, and one should not expect that customers will show loyalty if these are the products in the store (Miles 2014).

Sasha’s should consider using traditional distribution channels. The company should use its own stores where its brand is strongest.  For this strategy to be helpful, it needs to invest in stock, property, and sales people (Prasertsri 2013; Chuter 1995).

The other critical distribution channel is independent fashion stores.  These stores are best when a company is offering its unique limited amounts of stock. The cost of processing is, however, higher for smaller orders. Sasha’s can also use department stores. It allows these stores to buy from a central place. However, if they buy in bulk, they may order in bulk and subsequently lead to the reduction of the company’s profits.

The departmental-stores strategy allows customers to feel they are Sasha’s stores. These stores share their marketing information on the consumer segments they are serving and the products that are in most in demand. After the company gets this information, it can provide the relevant stick to maximize revenue.  Sasha’s stores can help the company to its sales environment and increase profit (Prasertsri 2013).

These traditional distribution channels are critical to the success of Sasha’s. However, it should use new channels too. A critical fraction of its target market is found online. This fact means businesses are launching websites to provide more interactive experience for these customer segments. On websites, customers can order products, get new updates on the latest products, create an online community of followers, and markets the company.  This new strategy has helped many companies to build their brand philosophy and values (Netherton & Owen-Crocker 2010).

Integrated marketing communications ensure consistency when using various types of media to market products. Sasha’s will develop its integrated marketing communication plan using the fore-mentioned elements of marketing mix (Sandhusen 2008).

Based on the above situation analysis, long-term objectives of integrated marketing communication would be promoting the awareness about Sasha’s and marketing this brand be the one that comes to mind for elegant, colorful and ethnic clothes and increasing the popularity of the brand by 50 percent for the target customer. Other than brand awareness and brand attitude, it should boost brand purchase intention. The integrated marketing communication should help the company to get each target customer to visit Sasha’s at least yearly and win not less than an equivalent of 100 percent of existing customer base annually (Sandhusen 2008; Moreno & Singer 2008).

The key to the success of Sasha’s is to be a style mirror for the individual who puts it on. Therefore,  with the regularly updated designs, the firm’s communication have a responsibility to ensure both the old and the new customers get what they deserve and make Sasha’s the place to get the items that they would like to own or use as gifts (Gimson  & Mitchell 2008; Maroukian & Woodruff 2006).

The focus of effective marketing communication strategies is to build the desired image of the brand as well as get all consumer segments to get interested in the brand through thematic communication. Adverting is a major strategy for achieving this objective. It makes it possible to reach geographically dispersed consumers and can build a term positive image of the brand. Sasha’s can use adverticles to post new fashion trends. They are placed in additional pages of magazines that appeal to women. Other places for advertising are newspaper and magazines and TV and radio (Kidd 2005).

The second strategy is direct marketing.  This option involves the use of e-mails, in which the company can send short newsletters that can entice consumers and prospects. The e-mails should have visuals which are appealing to the eye and are easy to read. Some newsletters can be about various city happenings that are related to fashion (Burns et al. 2016).

Interactive marketing is also critical. Sasha’s website will help the company to pass across critical information and interact with their customers and potential customers. In site can offer information about the company’s beliefs and values, information about artworks, customer feedback, and complaint, environment protection effort undertaken by the company, and information about upcoming events. Social media campaigns are another essential interactive marketing strategy.  After making a community of its own, the company needs to send an invitation to customers to join on different social media sites (Miles 2014).

 Events that the company sponsor needs to be in sync with the message conveyed through the brand and its products. Sasha’s can sponsor events that are celebrating women, fashion, and artwork (Semenik 2002).

Conclusions and Recommendations

UK’s women clothing industry is viable, and any company with the right marketing strategies and adequate resources has an opportunity to exploit it. The 2009 economic meltdown affected the economic stability of many nations. However, it also prompted many women to turn to the Internet to buy clothes. With the continuing adoption of IT, the market is set to continue growing. The success of many companies in this industry, its ability to employ many people, and the many consumer segments are other pointers of its viability.  

For Sasha’s to succeed in this market, it should adopt the above marketing communication strategy and ensure its effectiveness. Sasha’s should do three things to ensure the effectiveness of its marketing communication strategy. First, it should ensure that all the marketing communication elements recommended above are used under the control of a single agency that can ensure the message is coherent on all platforms.  Secondly, this in-house agency should be tasked with developing a comprehensive marketing communication plan to guide its operations. In addition, the brand should fulfill the communicated message and make sure that its effectiveness should be a joint effort of the collection designers, merchandising planning, and operations.    

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