Marketing activities, like all other parts of starting up a fast-food restaurant, take money. However, unlike most other investments in a restaurant, restaurant marketing has several directions although the abundance of the choices leads to difficulties in planning a decent restaurant marketing budget with it main directed at ensuring the effectiveness of the enterprise through avoiding wasteful mistakes (Cannon, et al, 2014). Hence, planning for the marketing budget requires precise and wise marketing priorities since it should be 3% to 6% of the sales. This is a general rule that requires which is mostly regarded as guidelines for a good reason for marketing (Cannon, et al, 2014). In spite of this notion, successful and struggling restaurants spending under 3% of their sales are mostly related to under investment while those above 6% are desperate hence put their eggs in one basket. In this regard, the restaurant marketing budget will embrace the moderate value between 3% and 6%.
Secondly, the marketing activity will be undertaken in two phases on a monthly basis thus adhering to the rule of timely marketing. For example, the marketing business will spend less on marketing in offseason and more during the peak seasons (Cannon, et al, 2014). This because one cannot change winter into summer without a proper and a genius marketing idea. As earlier stated, marketing approaches will be made through advertising through various internet platforms such as social media as well as through promotion.
Other than marketing in the social media platform, the marketing department will establish a suitable location to promote the products and services effectively (Cannon, et al, 2014). For example, in learning institutions, social gathering such as weddings as well as other prospective locations with the ability to purchase the products. In this regard, marketing advertising on the website is estimated at $18,000 while the ordinary promotion is valued at $7,500. However, in order to examine the Return On investment (ROI) on each approach, a survey as well as web transactional data and traffic data in the internet assessment on its contribution and also administer task-completion rates in assessing promotion related marketing strategy.
Marketing Budget and Enterprise
Every business enterprise is subjected to promoting its products and services especially to the vulnerable populations who comprise of the economically, mentally, and physically challenged as well as minority, underage and the elderly residents (Biere, 2020). In this regard, the fast food joints will have special places for people with disability from the ordinary citizens to accommodate their conditions. Similarly, the restaurant’s products will strictly adhere to health nutrition value of the foods for the elderly and the minority through including special meals (Cannon, et al, 2014).
Lastly, the restaurants will organize special days to cater for the community development such as offering free meals to the orphanages during celebrations. In observing the Corporate Social Responsibility, the enterprise will employ qualified chefs from the locale will also be adhered to improve life conditions of the local community (Gil, 2019).
Biere, N. (2020). Branding on a Budget: Marketing in the Nonprofit Sector.
Cannon, J. N., Cannon, H. M., Friesen, D. P., & Feinstein, A. H. (2014). Would You Take a Marketing Man to a Quick Service Restaurant? Modeling Corporate Social Responsibility in a Food Service Menu-Management Simulation. Developments in Business Simulation and Experiential Learning, 38.
Gil, E. L. (2019). Introducing information literacy into a marketing budget class assignment: A case study. Journal of Business & Finance Librarianship, 24(1-2), 1-16.
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Celebrity Endorsement Effect on Consumer Behaviour within the UK Fast Fashion Industry
Celebrity Endorsement Marketing Dissertation. With the growing importance of social media in a shopper’s purchase journey, companies are evolving and stepping up the endorsement game across different channels. This dissertation will explore the relationship between UK celebrity endorsements on a product and their impact on consumer purchase behaviour as a result of their involvement. It will also aim to understand the relation of traditional advertising, social media and fast fashion and what the effects of these three have on UK consumer purchase behaviour. The secondary data was collected as a result of the literature review that was related to the research question.
Primary data was collected from an online questionnaire as well as interviews that involved 10 participants. As a result of this research, a conclusion was made that it is difficult to come up with a comprehensive answer due to the fact that there are so many variables that can occur in today’s society. However, it was found that younger generations are more susceptible to social media influencers and the older generation are more vulnerable to fast fashion celebrity endorsements. There are, like always, limitations to this research – as our society grows and expands, so does our knowledge therefore some of the research that has been previously expanded on is not as valuable to the actual conclusion of the study.
Celebrity Endorsement Dissertation Contents
1 – Literature Review Consumer Behaviour Elaboration Likelihood Model Celebrities and the ELM Model Celebrity Endorsement Risks associated with Celebrity Endorsement The Celebrity Endorsement Marketing Strategy Ethical Implications of using Celebrity Endorsers Framework and models Hypodermic Needle Model Celebrity Worship Celebrity Attractiveness versus Celebrity Expertise Celebrity Attractiveness Celebrity Expertise Comparison Digital Influencers The Meaning Transfer Model Culture Endorsement Consumption Criticisms Brand Conceptualisation What is a brand? PCDL model Fast Fashion and Social Media
2 – Methodology Research Philosophy Research Purpose Research Questions and Aims Primary Research Aim Secondary Research Aim Research Design Method Primary Research Questionnaire Survey Interview Interview Design The Participants
3 – Data Analysis and Discussion Thematic Analysis Consumer Understanding & Motivation in regards to Fast Fashion Consumer Understanding and Motivation in regards to Social Media Differences in Attitudes and Behaviours Profile of People That Are Aware of Celebrity Endorsements
4 – Conclusions Research Conclusions Analysis of Research Question One Analysis of Research Question Two Observations Limitations and Ethics of Research Suggestions For Further Research
I hope you enjoyed reading this post on celebrity endorsement and how it effects consumer behaviour. There are many other titles available in the marketing dissertation collection that should be of interest to marketing students and practitioners. There are many dissertation titles that relate to other aspects of marketing such as branding, corporate advertising, marketing strategy and consumerism to name a few. I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
Science Marketing and Art Marketing: Marketing research and branding
Science Marketing and Art Marketing: Marketing research is the processes through which the marketing managers collect relevant information about their product and the customers. It also involves an evaluation of the necessary strategies required to develop the correct product that will capture the attention of the customer. It provides the basis for the development of the correct marketing mix and the correct style of marketing. Branding, on the other hand, is the process through which a business develops and creates a unique image and name for a product in the customer’s perspective.
Branding incorporates information marketing research to create a brand that is attractive and present in the customers’ mind. The information from marketing research is important as it presents the customer’s expectations. In other words, branding is the art through which the marketing management delivers the customer’s expectations. It is the means through which the marketing management showcases creativity and ability to meet the customers’ expectation. Combining the two strategies creates a mix of art and science that delivers the right product in the eyes of the customer.
Market research is the process through which managers gather important information about the product from the consumer. It is a science because it involves a combination of processes designed to gather information and knowledge. The science of market research is objective because it aims at gathering relevant information about the customers. Its main objective is to determine the viability of the product from the perspective of the customer. Market research is the process through which the company identifies the possible market and the customer base for the product. It involves understanding the needs of the customers and the means through which the company can modify the product to meet the customer’s expectation. Also, market research involves gathering the necessary information about the customers’ purchasing power and the ability to purchase the product. Through market research, the company can determine the best marketing mix that would help maximize revenue (Burns et al. 2014). Also, the company can use market research to gather information about preexisting segments in the market. Hence, market research is also useful in market segmentation and product differentiation.
Market research is an objective process that involves the identification of the desired market and the development of strategies for information gathering. The management must also analyze the data collected to extract useful information (Burns et al. 2014). It involves the collection of qualitative and quantitative data concerning the customers. The company can either correct the data directly or through existing research. Therefore, the company has to decide whether to use primary or secondary data sources. Primary data refers to the type of data that has not been used in prior research and that the company collects through primary data collection tools. Secondary data, on the other hand, refers to information gathered in a prior research.
The use of prior research implies that secondary data collection involves another entity. When a company chooses to use primary data collection methods, the management has to decide on the objective of the research. The management can decide to collect answers to previously identified issues. Therefore, the management identifies areas of concerns and seeks to collect answers to the questions through market research. The management may also choose to identify new issues in the market. Using this route, the management seeks to collect an array of questions that the customers would like answers to. Whether the company chooses secondary or primary data, the main purpose of market research remains the same, the company seeks to fulfill a certain set of objectives.
Market research is mostly applicable or put into use when an organization seeks to venture into a new market. It is also necessary when the company seeks to rejuvenate its market competitiveness or brand position. Organizations may also opt to identify the characteristics and needs of a special group in its marker. Researching the market may also be necessary when the company seeks to introduce a new product in its existing market (Burns et al. 2014).
Based on the reason behind market research, every form of research will have different objectives and strategies for obtaining the required set of information. For example, a company seeking to venture into a new market has to conduct an investigation of the current interest for the product in the new market. In other words, the organization must collect information to justify the viability of the new product in the target market. Based on the outcome of the research and information gathered, the management can then decide on whether to actualize the plan. If the company establishes that the customers have a viable interest in the product, the move to invest in the new market becomes feasible. However, interest alone is not enough to make a decision to venture into the new market. The organization also has to investigate the price viability and customers’ ability to purchase the product. Hence, the management must develop a strategy that answers all the necessary questions
Branding is the means through which the management answers to the expectations of the customer by providing the product in a manner that the customers are likely to accept. It involves positioning the product in the mind of the customer and presenting the product in a likable manner. It is an art because it involves the use of knowledge and skills to develop a product. The art of developing a brand is subjective to the information gathered and the need to present a final product that meets the customer’s needs and expectations. Branding involves the development of the product and means to position the product in the minds of the customers (Latif et al., 2014). Therefore, the art of branding involves the physical aspect of designing and developing the brand in form of the product appearance and composition. The physical aspect of branding involves the development of an attractive and memorable product. The physical aspect of branding involves creatively designing the aspects of the company that relates directly to the customer. One is the physical appearance of the product. A good example of vigorous branding is the Fanta brand of Coca-Cola that continuously changes shape and appearance to capture the customers’ attention.
Similarly, physical branding involves the development of the company’s logo in a unique and appealing manner. The logo is the main identifier for any given organization. Its uniqueness determines the company’s ability to position itself in the market (Latif et al., 2014). Therefore, the company must design the logo uniquely and outstandingly. It also involves the development of a company slogan. The slogan must reflect the values of the company and appear in a manner that keeps it viable in the eyes of the customers. Like the logo, the slogan will most likely be visible to the customers at all times. Hence, the slogan must stand out in the market. Most companies identify by the brand. A well-established brand often appears to be similar to the company. Most customers consider the brand to be the same as the company (Latif et al., 2014). Even for companies that have a brand name different from the company name, customers often confuse the company with the brand.
The art of branding involves several aspects that define the company’s position in the market. Brand positioning is particularly important in marketing (Latif et al., 2014). It involves the setting up the brand in a manner that is noticeable and memorable. The brand position is a marketing strategy that is directed at creating a unique appearance to the customers. Other than the design of the logo and the slogan, positioning the brand may also include printing the brand name, logo, and slogan on the company products. The art of positioning has evolved to include online presence and ease of accessibility of information in social media and on the internet. The company can also improve the position of the brand by carefully placing the logo or the slogan in the customers’ daily activities. The Coca-Cola Company is usually very active in brand positioning. For example, the share a coke market campaign positions the company logo and slogan at the heart of summer celebrations. The company also uses promotional campaigns to position the brand in sports and other activities to keep the brand in the customer’s minds.
Science Marketing and Art Marketing
Marketing requires a combination of science and art to achieve its objectives. The application of scientific strategies in marketing allows marketing managers to collect sufficient data. It allows managers to track marketing expenditure and effectiveness. According to Gross (2017), the ease of data collection and marketing research through digital marketing enables the success of marketing strategies. Such a scenario indicates the importance of data collection and market research. According to Gross (2017), the integration between science and art in marketing guarantees the success of any marketing campaign. The organization must find a balance between the art and science of marketing in order to achieve the objectives set. Strategic marketing management is the simply the development of strategies that combine the art and science in marketing. It involves developing the necessary skills and techniques that enable the company to achieve its marketing objectives.
Therefore, market research and branding are simple methods of defining a multifaceted and complex science and art marketing. The discipline involves developing a synergy between the science in market research and the art in branding. The data collected in market research is helping the company to design and develop a unique and lasting market brand. Other marketing strategies whether art or science come into play to make the processes successful. For example, marketing managers can employ strategic marketing to develop strategies for the implementation of research and branding. Similarly, the marketing managers can employ product design in branding as described above to position the brand on the products. By combining marketing science and art, marketing managers develop strategies to achieve marketing objectives. Therefore, the two forms of marketing must work together for the betterment of the marketing department.
Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing research (Vol. 7). Harlow: Pearson.
Gross, J. (2017). Marketing: The Convergence of Art and Science. Forbes. December 1. 2017.
Latif, W., B. Islam, A. & Mdnoor, I. (2014). Building Brand Awareness in the Modern Marketing Environment: A Conceptual Model.
I hope you enjoyed reading this post on Science Marketing and Art Marketing. There are many other titles available in the Marketing Dissertation Collection that should be of interest to marketing students and practitioners. There are many dissertation titles that relate to other aspects of marketing such as branding, corporate advertising, marketing strategy and consumerism to name a few. I would be grateful if you could share this post via Facebook and Twitter. Feel free to add your thoughts in the comments section. Thank you.
The word “selfie” has become rooted in the vernacular of the millennial generation from all corners of the globe. This phenomenon is usually associated with taking portraits and posting them accompanied with a caption on social media networking sites (Rettberg 22). As a fact, selfies tell others who you are. Mostly, they are used for entertainment. However, business owners can exploit the potential of selfie behavior grow their businesses (Wan et al. 1). This implies that selfies posted in social media can be used as marketing tools to attract and maintain customers. Studies have shown that companies and corporate are incorporating self images and other photos in their marketing plans (Kiprin Para 7). This has made selfie advertising a major sales-driving force in the current market.
Research has also asserted that selfies are also used in the promotion of certain brands such as Coca-Cola and Samsung. Therefore, selfies can be used in marketing; business organizations can use self images to drive their customer engagement, show their personality, give social proof, show the humanity of a brand, and ‘share a laugh’.
What marketers have realized is that selfies are not only taken and viewed by the millennial generation, but also by the elder generations. On the other hand, social media networking sites are widely used all over the world. This makes them the two (social media sites and selfies) huge tools that marketers can use to facilitate wider reach to potential clients (Rettberg 23). Additionally, the use of these sites is simple and completely free. Users can, therefore, open an account and connect with others by posting photos and selfies within a short period. In this regard, social media networking sites offer cheap and simple methods that various businesses can use to promote their businesses (Rettberg 23).
Companies can use selfies to share the “story” of their company or the zeal that they have for their businesses through selfies (Kedzior 13). Simply put, self images offer a free way for marketers and business owners to visually show their potential customers why they should consider their businesses. For instance, many companies and businesses are using Instagram to display their new products and new ideas. It is free, fast and has limitless potential regarding the number of people marketers can reach.
Moreover, the wider reach of clients is facilitated by the fact that selfies have become viral. This implies that when selfies are posted on social media networking sites, many people will share and react to them, which increase their effectiveness and reach (Wan et al. 2). Therefore, the use of selfies in marketing enables products to be viewed wide and fast.
There are various ways that companies
and businesses can use selfies to drive their customer engagement (Wan et al.
2). This implies that business people can use selfies in their marketing
strategies. Marketers can use the selfies to attract customers by showcasing
the personal side of their businesses, and by providing an innovative outlet
that they can use to show their products (Rettberg 21). Moreover, selfies can
be used to create awareness about a business by showing a client what a
business does and setting up a familiarity between a company and its potential
Companies can use selfies to show their personality. Traditionally, customers view authenticity as a top feature they look for when connecting and doing business with companies. Self images are very personal. Additionally, company selfies tell more about the conditions and the employees of a company (Kedzior 14). In this sense, they are very effective for connecting to clients and customers.
For instance, a selfie of smiling employees may be understood to mean that the company employees are satisfied, friendly and social. If such a selfie is posted by a company that specializes in giving services, it may help attract many clients because of the notion that the company’s staff is friendly (Rettberg 28). This is a marketing technique that is used by many companies to portray their good personality and thus, attract customers.
Selfies are also used by companies to give social proof. This mostly happens when customers post selfies in social media networking sites with a company’s products. This acts a recommendation of the product. Mostly, selfies are accompanied by captions. A good message on the caption is equally important. Since this selfie comes from a customer and not the company, it is interpreted that the customer is satisfied with the product and thus, serves as a good advertisement (Rettberg 33).
It is also assumed that clients will not post what they do not like. In this regard, many companies have hired celebrities to take selfies with their brands (Kiprin Para 7). When these selfies are posted on social media networking sites, there is a possibility that many people will be aligned to buy and consume a brand that is associated with their favorite celebrities.
Marketers also use selfies to ‘create and share a laugh.’ Wittiness can be widely used to promote various types of brands. Marketers post funny and hilarious photos because they have a great ability to go viral and spread all over the web. These hilarious selfies can carry certain messages that the marketers want to deliver (Wan et al. 5). In this way, they do not only create and share a laugh, but also pass their marketing messages over a wide area.
Selfies also show the humanity of a
brand. Connecting with people is much easier than connecting with abstract
concepts such as companies. Thus, posting selfies helps companies show that
there are actual people behind their brands (Kedzior 13). This creates strong
emotional connections for those associating with the company’s products. For
instance, selfies of a company’s staff make customers realize that they are
talking to actual people. In this way, companies have been using selfies to
promote their brands.
Though selfies can be good marketing tools, they also pose a great risk. A competing business, companies or people with malicious ideas about ones’ business may post self images that a company may not be willing to associate with its brand. Though marketers can edit selfies posted on their websites and their social media networking sites, they have no control over what is posted by others on their sites. This is a big challenge for many marketers. They have to be watchful on what others are posting on their sites.
All in all, this paper discusses the use of selfies as a marketing tool. This marketing strategy is not only cheap but also fast and simple. Marketers can make use of self images to promote a company’s brand, attract, and retain customers. Selfies are innovative ways that marketers can use to create awareness of their brands and persuade consumers on the superiority of their brands. Though selfie marketing is a good way to promote a company’s products, marketers should also be watchful of selfies that may damage the reputation of their brands.
Kedzior, Richard, D. Allen, and J. Schroeder. “The selfie phenomenon–consumer identities in the social media marketplace.” European Journal of Marketing Special issue (2015).
Borislav. “Go Selfie Yourself!.” (2013).
Rettberg, Jill W. Seeing ourselves through technology: How we use self images, blogs and wearable devices to see and shape ourselves. Springer, 2016.
Wan, Jinlin, Tailai Wu, and Yaobin Lu. “The Effect of Product Endorsers in Social Media: The Role of Self-Disclosure and Social Interactivity.” (2015).
The UK fashion clothing market has been hit by many changes in the last decade. The UK’s plan to exit from the European Union has been one of the main changes that are facing business in the UK. The EU has been regulating trade in its member states and the UK’s exit will present a new environment for fashion retail market in the country (Dhingra, Ottaviano, Sampson, & Reenen, 2016). UK Fashion retailers have been enjoying free trade under the membership of the EU. In the past cloths are presented in shops where buyers could come and buy. Then come e-commerce. Cloths are sold over the websites and marketing is done through social media, a change that many clothing retailers are struggling to come into terms with. The economic recession presents an environment where businesses struggle to grow due to low sales and the high cost of doing business. This report will refer to Zara fashion Company to analyze the key changes in the UK fashion clothing market and suggest strategies to fix the changes.
UK Fashion – An Introduction to Zara Fashion Company
Rosali Mera and Amancio Ortega founded Zara in 1975 in Galicia, Spain, under the name Zorba. They later changed the name to Zara after noticing that there was a bar several meters away which had the same name. The company opened many other outlets in Spain during the 1980s. During the 1980s, Ortega started using a group of designers rather than individual retailers to respond to the new trends in the market in the fastest way possible. He also introduced information technologies to reduce lead times. In 1988, the company started to expand internationally and by 2011, the company had many retailing shops in the UK, China, Estonia, Russia, Philippines, South Korea, India, Australia, and South Africa. The company sells over 480 million clothing items every year in its shops.
In 2010, the company launched an e-commerce site where the cloths can be sold. The site was available in the UK, Germany, France, Portugal, and Italy. After five years, its online services extended to all other countries where it has shops. In 2014, RFID technology was made available in its shops. RFID technology involves fixing RFID chips on clothes before they are sold which notify them when a cloth is sold for an immediate replacement.
Zara retails on both men and women clothes. Children cloths are also sold under the name Zara Kids (Zara.com, n.d.). Zara uses consumer trends in the market to supply the clothes. The company spends less than 15 days before new cloths reach the shops after they have been manufactured.
Changes within the UK Fashion Retail Market
A report made by the World Bank puts the UK at number fifth in the world of the largest economies. The high population of the UK and enabling infrastructure enables smooth business which makes the country attain the fifth largest GDP in the world after the US, Japan, and Germany. However, the UK was hit by the economic recession in 2008 and the recessionary conditions are just decreasing gradually. Zara has been storing new clothes in its shops twice a week but during the recession period, the target could not be achieved. The recession period presented a high cost of living to citizens making it difficult to buy cloths every time. Zara had to store its clothes in stores for a longer period than expected.
Another economic change that has hit the UK market is increased inflation rates. The inflation rate in the UK reached 3.1% percent in November 2017. This increase in inflation rates translated to increased prices on clothes which make it difficult for consumers to purchase the clothes (Cowling, Liu, Ledger, & Zhang, 2015). Zara stores cloths which have been manufactured in its plant in Spain. The inflation rates in the UK makes the cost of importation to be high which forces the company to sell its cloths at higher prices than before. The consumer confidence in the UK is depreciating due to an unexplained increase in the company’s products. The company is struggling to restore consumer confidence and at the same time sell at prices that can make it make profits.
Corporate taxes has been increasing in the UK. The corporate taxes were 17% at first before they increased to 19% and now the Labour Party promises to increase the corporate taxes from the current 19% to 21%. The corporate taxes are one of the largest expenses of the company as they account for 19% of the profits that are made. Increasing the corporate taxes will lead to a reduction of the amount of money that is shared to the owners of the business (Suárez Serrato, & Zidar, 2016). They increase the cost of doing business which forces retail companies to increase their prices.
Political Changes in UK Fashion
The UK is set to exit from the EU. The company faces uncertainties of whether the importation tariffs will increase and by how much. The company sells which have been manufactured in Spain cloths in its UK shops. The UK and Spain being member states of the EU enjoy free trade. By free trade policies of the EU, the company pays zero importation tariffs to import its goods to the UK. This means that it can sell the sale the cloths at the same prices as those in Spain.
However, the UK’s exit from the EU (Brexit) will come with changes in trade terms which will include the introduction of importation tariffs since the UK will no longer be a member state of the EU. The companies will have to pay importation tariffs for the goods imported from Spain. This will increase its cost and make the company increase the price of clothes. Selling the cloths at high prices than those of the competitors like Arcadia UK fashion group which sell clothes made in the UK will have adverse effects on its business.
The pre-Brexit policies have not been formulated which brings further uncertainties about how the business will be done after the UK withdraws from the EU. The minister of trade in the UK held a meeting with the UK Fashion and Textile Association in December 2018. However, a clear direction was not given to the fashion retailer on how they will do their business after the Brexit.
The UK provides one of the fasted bandwidths on the continent. The penetration of smartphones in the country has been high in the last decade. This enabling environment has made people within the market to change their shopping preferences to online shopping. People are now preferring to shop over the websites (Peng, An, & Vecchi, 2017). UK Fashion retail companies are facing this challenge by investing in e-commerce and launching shopping websites. Zara has never been left out in this campaign and in 2014, it launched its online boutique in the UK.
The recessionary period in the UK presents an environment where business finds it difficult to grow at the expected rate. In as much as Zara Company want to expand by opening more sales in the UK, the environment discourages such a move. The recessionary environment also makes it difficult to make the expected prices and abide to its policy of replacing the stocks twice a week.
In May 2018, General Data Protection Regulatory (GDPR) came into force. The policy requires every social media firm and e-commerce sites to be transparent on how customers data is used. Zara Fashion Company is affected by the regulation since it owns an online boutique launched in 2014. To avoid litigations, the company should adhere to the General Data Protection Regulatory (GDPR) regulations. In April 2018, the bill passed by the UK parliament came into force. The bill required that all companies whose employee turnover is above 250 to publish the details of the employees including their gender and their salaries. This new rule affects Zara because it has more than 250 employees.
Unlike Spain where the market comprises of one main race with similar culture, the UK market features multi-ethnic cultures. The market has different design needs which should be fulfilled. Different people living in the UK have different design preferences.
Changes within the Micro Environment
Changing trends in the UK Fashion Market
The designs in the clothing market are subject to change within a short period of time. If the clothes are not sold within a short period of time they become useless to the customer and they might never be sold (Grewal, Roggeveen, & Nordfält, 2016). The company uses a group of designers to design every new design that is introduced as a tactic to respond to the changing trends in the market. The company also sells the cloths within a week to avoid cloths saying for long in the shelves which might render them useless. The RFID tag on clothes can monitor the clothes that have spent a long period in the shelves and change them.
Change in Marketing Strategies
decades ago Television sets and the print media were the well-known and
reliable marketing channels. However, the changes in technology have brought
digital marketing where marketing can be done over the internet. Social media
marketing is also a new trend in fashion marketing. Social media sites are
being used to market fashion products. Links are created on social media pages
which lead the user to the website of the retail company (Okonkwo, 2016).
Increased Competition in the Retail UK Fashion Market
The UK market has too many too many fashion companies which bring undue competition in the market. The competition has led to a reduction of prices by some fashion retailers. Large discounts are also being offered to lure customer.
Over the last decade, consumers have a switching motive from shopping in the malls to shopping over the e-commerce sites. Some customers prefer online shopping to shopping in the shops. Retailers in the UK fashion market are exerting pressure by using e-commerce sites to sale their products. The company’s in the market are now required by the standards set by the level of competition to have both selling channels. Zara Company uses its online boutique to respond to such changes in selling strategies. The company has now used its online platform for a period of four years.
Strategies and Tactics to Employ
Open a manufacturing plant in the UK
Zara Company depends on clothes that are made in Spain and transported to the UK. After the UK’s exit from the EU, there will be tariffs imposed on the imports. The tariffs will increase the price of clothes imported by Zara Company. To avoid import tariffs Zara should retail on cloths made in the UK rather than importing its stock from Spain. Zara has four manufacturing plants where its cloths are made. The plants are in Spain, Morocco, Portugal, and Turkey. The cloths made in Spain are freely exported and sold in European Union member states including the UK, Spain being a member of the EU. However, after the Brexit, it will not be easy to transport them under free trade terms to the UK.
One of the challenges in retail fashion market is the ever-changing trends in the market. A new design can register large sales today and become an old fashioned cloth with a year. If such cloth spends a year on the shelves without beings customers will start ignoring it for new fashions. Although Zara has been using trend in the market to sell its clothes, staff training is essential. The staff should be trained on how to respond to ever-changing trends in the fashion market (Dillenburger, 2017). With the incorporation of new technologies in its business process, the company should also train its staff on how to use the new technologies.
The interaction of the staff with customers is also very important in ensuring that the customer buys the product and that the customer is maintained to purchase in the future. The staff should be trained on how to interact well with the customers. Every staff member should be trained in good customer relations.
Using both traditional marketing
strategies and Digital Marketing
Both digital marketing and traditional channels like print media and television sets are useful when making advertisements. The company should employ both channels to boost its sales without ignoring either of them. Many people use the internet on daily basis and targeting those people through digital marketing is a wise idea. However, the two channels are not mutually exclusive and television sets, radios, and the print media can be used to reach people. Many people use these channels and digital marketing should never be used in place of them.
Every part of the world has cloths which are highly preferred to others. The company should be carrying research on which clothes to sell to a particular ethnic group as the market in the United Kingdom comprises of many cultures. This will reduce the risks associated with clothes being on the shelves for many days.
People in business are continuously innovating new strategies to make more sales. Retailers are not an exception and they should be innovative enough to be ahead of their competitors. A big challenge that is facing the retail market in the UK is increased competition from other retailers. Innovation is a tool that can be used to reduce competition. Innovation can involve using a shared economy by using the resources of other firms to boost sales. There are online platforms which sell various products without being fashion retailers or specializing in a particular product. Zara should partner with such firms so that the firms can be selling the products of Zara on top of Zara’s online boutique.
The Zara Company has tried to be innovative by introducing RFID chips to monitor the movement of cloths and introducing Zara online boutique to boost its online sales. The company and other fashion companies in the UK market should use the following challenges to meet the changes in the fashion market.
should open a manufacturing plant to avoid import tariffs after the Brexit. The
UK might impose tariffs on the goods imported from Spain after the UK’s exit
from the EU.
should use a variety of channels to make sales. Online shopping and shopping in
the shops are all important.
marketing is becoming popular in the retail market. The company should use both
digital marketing and traditional forms of marketing.
Innovation is the
best tool to use to have a competitive advantage over other companies. The
company should be continuously innovating to meet the challenges in the market.
litigations against a company risks its existence and loss of funds through
settling fines. The company should comply with the regulations set by the
relevant authorities. It should be transparent on user data usage and should
publish the details of its employees.
The changes in the fashion market have been a
challenge to Zara and other companies in the market. The Brexit has also
brought confusion about how cross border trade will be after the UK withdraws
from the AU. Zara retails on clothes which have been by its plant in Spain
which puts it under a threat of incurring import tariffs to the UK just after
the Brexit. This threat can be met by setting up a manufacturing plant in the
UK. Considering all channels in selling products and all forms of marketing can
help the company meet the challenges in the market.
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medium-sized enterprises in a global economic recession? UK evidence on sales
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Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of Brexit for UK trade and living standards.
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D., Roggeveen, A.L. and Nordfält, J., 2016. Roles of retailer tactics and
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in Fashion E-Commerce: A Comparison of Britain and China. In Advanced
Fashion Technology and Operations Management (pp. 277-293). IGI
Suárez Serrato, J.C. and Zidar, O., 2016. Who benefits from state corporate tax cuts? A local labor markets approach with heterogeneous firms. American Economic Review, 106(9), pp.2582-2624.
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