Boden is a popular British clothing retail selling primarily by mail order, catalogue and online medium. The company was founded in the year 1991 as mail order business. It is mainly based on United Kingdom. However, the organization also operates in USA, Germany, Australian and France. The value of the company has been estimated at £300 million (Boden.co.uk 2018). Boden offers uniquely designed patterned, bright and casual clothing to the customers. The collection of the company is made up for men, women and children. Out of United Kingdom, Boden has grabbed largest market in USA. Moreover, USA sales percentage of Boden has been increased by 54% and the organization has grabbed 88% share in USA market. On the other hand, in UK market, Boden has grabbed almost 62.40% market share (Ashley Armstrong 2018).
Boden designs uniquely designed bright and patterned cloths as well as casual basics. The organization is mainly popular for offering summary cotton shirts and flowery dresses. The collection of the organization is made up for men, women and children. Moreover, the organization initially launched menswear and then introduced womenswear in 1992. The range of Mini Boden was actually introduced for children in 1996. Furthermore, the organization launched baby range and teen range “Johnnie B” in the year 2007 and 2010 accordingly. In the year 2011, during summer season, Boden launched maternity range as well as petite range for Boden womensawear (Boden.co.uk 2018). Later, the organization introduced limited edition online sections including Mini Boden “Party Dress” range and accessories and dresses for weddings.
Boden always uses fictional customer characters for arousing interests and curiosity among different customers. The organizational mainly uses mail order and catalogue marketing strategies for offering its products to the customers. Moreover, it has become capable of increasing its revenue through revolutionized the email in marketing context. The organization has both online and offline medium to offer its products to the customers. The website of the organization has been designed is such a manner that it gives some personalized feelings to the customers (Carmignani and Zammori 2015). The organization keeps record of all previously viewed items and offers custom-made discount codes for repeated customer purchase. The next feature of Boden is digital catalogue, which is to be added in its online store. It is a more editorial approach for premiering new seasonal items. One of the most attracting marketing strategies of Boden is its delivery commitment within 1-3 days (Das 2015).
The fashion retail Boden has recorded an uptick sales and profit in UK fashion retain industry. The recorded sales and profit of the organization are actually driven by strong sales of womenswear and increasing customer volume. Moreover, the financial report of Boden has demonstrated rising historical recorded sales revenue within 2006 to 2016. From 2012 to 2016, the sales revenue of the organization has increased through £265 in 2012, £283 in 2013-2015 and £308 in 2016 (Hellier 2015).
Boden has demonstrated itself as being positioned at “premium and mass market” and reported a rising pre-tax profit by 9.6% to £26.2m in 2016 (Singh 2017). Furthermore, two third of revenues of the organization have been generated in U.S market.
Boden is mostly based on United Kingdom, but it also operates in several other overseas markets. The organization has distributed control system both in United Kingdom and United State. The fashion retail is also planning to open some more numbers of stores and outlets in UK and U.S markets. Apart from that, the organization also operates in Germany, Australia, France and Austria. Furthermore, more than 50 countries buy the brand through the websites of these countries (Hellier 2015). However, the organization will choose UK market for targeting its new customer sections.
Boden has positioned itself for upmarket, where it offers high quality products to the customers, who are quite rich. The organization has matured customer set, where the business processes are continually improved to meet the customized demands of the customers. Majority of the sales revenues of the organization come from sales of womenswear. Moreover, the women aged from 30-39 with high household income are the prime target customers of the organization. Hence, the organization is now set to target the male customers with new types of clothing. The customers of Boden are mainly the individuals, who seek quality lifestyles. It has been estimated in 2018 that the organization has more than 1.8 million active online customers (Akalin, Turhan and Sahin 2016).
A major volume of Boden’s sales comes from online selling like mail order. The organization also faces less barriers of entry in such types of selling. However, Boden is facing tough competitive pressure from the USA brands like Joules, Brora and Land’s End. Furthermore, in UK market, the organization face tough competition from the fashion retail like Aquascutum, Ann Summers and many more (Chang et al. 2015). Moreover, the competitors are creating high level of price war among each other, which is creating huge competitive pressure for Borden.
Boden has scope of global sourcing from more than 60 countries. It uses only responsible and ethical suppliers to have safe and fair working condition for the employees under Ethical Trading Initiative (ETI) (Erdil 2015). On the other hand, the independent auditors of the organization conduct ethical audit on suppliers for helping them in adhering with strict code of conduct. Strong supplier relationship management helps the organization to manage healthy relationship with the unique suppliers. Furthermore, Boden holds workshops for the suppliers for discussing their challenges, issues and best practices for helping them in reducing risks and creating new values.
Boden uses both online and offline medium for offering products to the customers. However, the organization sells mainly on e-commerce and some retail shops in UK for capturing different types of customers. Furthermore, the organization uses recognized customer intimacy for differentiating themselves in competition. Such channels will also help the organization to keep constant contact with the new target customers. However, it does not use CRM system for managing customers. In order to assess the new, lapsing and dormant product categories, the organization uses its own buying history database. The organization is sending emails to 90 identified grouping referrals for their 15 different creative templates for increasing customer referrals (Mitchell and Chaudhury 2014).
The current political instability of United Kingdom is likely to hamper its economic growth. The economic growth of UK held up quite better than expected in the 2nd quarter of 2016. However, the growth is expected to slow in the 1st quarter of 2018. Hence, the return on investment of Boden may get hampered in such instable political condition. On the other hand, BBC News (2018) opined that the impact of Brexit has caused loss of 1.3% UK GDP and reduced the per capita income of the people. However, the well defined Government policies to protect the citizen rights have somewhat protected the life leading status of the people. Hence, Boden can still get some hope of profit through adequate sales. Furthermore, the unemployment benefits provided by UK government to the employed people can enhance their purchasing power. Hence, such people are willing to purchase required luxurious cloths even in their employed condition.
The economic condition of United Kingdom is expected to slow in the 1st half of 2018. Furthermore, the uncertainty surrounding Brexit has reduced the high street spending and investment. In such weak economic condition, Boden is expecting low profit margin in UK market for their further business development. However, weak economic has resulted in high rate of unemployment in UK. In such job market having high unemployment, Boden can easily hire talented employees with even low salary packages. Hence, it can ultimately reduce the cost of operation of the organization by contributing in profit level.
The rising unemployment rate has reduced the earning level of the people, which has ultimately reduced their purchasing power. Hence, the consumers may be willing to avoid spending in purchasing luxurious cloths. On the other hand, high inflation rate can hamper the Boden in setting their pricing strategy as per exact market value.
The living standard of people in United Kingdom is quite high and they are always willing to maintain such high standard of life. Hence, such people are always willing to purchase luxurious clothing for maintaining their standard of life. The rise in crime is accelerating in United Kingdom, which can hamper the purchasing power of the individual consumers. Lots of migrant workers from poorer Europe countries come to United Kingdom for seeking employment (Gopalan, Sreekumar and Satpathy 2015). Hence, the employers of Boden can easily hire employees for their business development at lowest wage rate.
United Kingdom is digitally connected through mobile devices and such technological advancement can help Boden to reach at new target customer easily. On the other hand, the consumers of UK have strong purchasing power over e-commerce portals. Hence, Boden can successfully use their online mediums for offering their products to new target customers. The support from telecommunication service providers can help the organization effectively in their advertisement and e-commerce sales.
The fashion retail companies are more likely to face high transaction cost for sourcing suppliers, who comply with ethical policies. Furthermore, Boden must have to comply with British safety codes for boosting confidence of new target customers.
Boden is highly conscious about sustainable products for conducting sustainable business. Furthermore, it always focuses on environmental aspects in policies set by UK Government.
STRENGTHS
Boden has high level of brand reputation, which can help it in reaching to the new target customers easily. The organization has distinctive target group, who are highly willing to purchase luxurious clothing. Furthermore, the colourful and bright fashion wear products have uniquely established Boden to the customers (Insley and Nunan 2014).
WEAKNESSES
The limited local retail exposure can prevent the ability of Boden to expand into other segments. The sales of the organization are highly dependent on customer referrals. It can hamper the potential success of the organization to target new customers. Moreover, the shorter shelf-span of for seasonal products can hamper the overall sales of Boden (Nayak et al. 2015).
OPPORTUNITIES
The unlimited e-Commerce opportunity in UK market can help Boden in offering its products to the new customers through online sales. The 24/7 service of online shopping highly attracts the customers having different lifestyle (Boden.co.uk 2018). Furthermore, the products of Boden displayed at retail shop can attract new target customers.
THREATS
Possible changes in the Government regulation of UK can hamper the business process of Boden. The organization can also face business threats with the changing consumer preferences. Furthermore, Boden is facing tough competition from other mail-order competitors in UK market (Spence et al. 2014).
Assumption 1: Some things are not possible to measure
There are some factors in marketing, which are not possible to measure and track. It is not possible to assign value to abstract concepts of marketing. In case of Boden, it is not possible for the marketers to link the brand affinity to the return on investment in new marketing plan. In such situation, rather than analysing a direct and numeric measurement, it is extremely important to compile the different numbers of observations into a model.
Assumption 2: Measurements must be precise to be functional
Measurements of marketing factors do not just need to be accurate, but it should be precise. In case of Boden, the marketing managers must precisely measure the marketing factors, while comparing the performance of two marketing campaigns aiming to reach at new target customers. Hence, the marketers should numerically assess the accurate and precise measurement regarding the performance or ROI of the marketing campaigns.
Assumption 3: Just because something is high-priced does not mean it is excellent
It is the marketing assumption, where the marketers should not perceive that expensive marketing method will always lead to high level of customer attraction (Jin and Jung 2016). Moreover, the marketers of Boden must be highly crucial in investing in marketing process, which will actually lead to wide marker reach. For instance, TV commercials are extremely powerful in attracting the new customers. However, it may require certain level of customer base, market saturation and others for being highly effective.
Assumption 4: Business needs big ideas to drive high level of business performance
Innovative and big ideas are great ways of leading high level of business success. However, in some situation, big ideas become overrated and unnecessary for reaching desired business results (Armstrong et al. 2016). In case of online selling, Boden should be simple and interactive in their website design, so that it is convenient to the new target customer.
Boden will mainly segment United Kingdom for targeting its new customer group. In 2016, the population of the country was 65.6 million, which was its largest ever population. Furthermore, the annual population growth is varied across United Kingdom with 9% population growth in England, 5% population growth Wales and 5% population growth in Scotland (Lynn and Jin 2014). It has been found that population growth of England is growing quite faster than other regions of UK. Hence, the organization will mostly target the customers of England for getting access to huge customer base. Moreover, the organization will target customers mostly from urban areas; as such customers are highly willing to wear luxurious clothing.
Boden is about to target mostly young customers having age between 20-45 years. Moreover, the young generation people are more willing to build their muscle and body. Hence, they must be willing to wear muscle fit clothing for showing their muscles. The organization will also target athletics and sports person. Such customers will be highly interested to purchase active wear for their comfortableness in sports. This time, the organization will only target the male customers, who are mostly inclined to shape their muscles for having a fit and good body shape. The clothing products of the organization are generally highly priced having a luxurious looks. Hence, the organization will target the customers, which are having high household income.
Psychographic segmentation helps an organization to divide customers based on their attitude and lifestyle (Calvo-Porral and Lévy-Mangin 2014). In psychographic segmentation, Boden will target the male customers, who are having modern and healthy lifestyle. Such customers are always willing to keep them fit and healthy by building their muscle and involving themselves within different types of sports. On the other hand, the people, who are having hobbies of sports, must have to purchase active wear for their body flexibility. Hence, the organization will target people having hobbies of sports. Furthermore, Boden will target the males, who are having positive attitude towards their life and keep themselves healthy throughout their lives.
In behavioural segment, Boden will target people having high level of brand loyalty. Moreover, the high brand reputation of Boden will attract such kind of customers. With effective e-Commerce system, the organization will target the customers, who like online shopping. Furthermore, Boden will target the people, who are more likely to seek extra benefits from their purchase.
Full Justification of Target Markets
The collection of Boden Fit will be customized towards the men with big muscles. The muscle fit cloths will complement their need for hard work at gym (Stewart, Chattaraman and Teel 2014). The men with big muscles will be highly willing to purchase ultra slim fit tops for showing off their chiseled physique. On the other hand, there is no other way to show off their hard work at gym than wearing the t-shirt that fit them perfectly. Such outfits will provide them extreme comfort during their work out at gym. The sueded cotton t-shirts are designed as per the shape of chest, shoulders and torso of the men with big muscles. Such shirts and t-shirts have the ability to adapt the physique of the men regardless of their muscles size. Hence, the men with big muscles will be highly willing to purchase such types of shirts and t-shirts.
The men with big muscles have high level of positive attitude and they are always willing to differentiate themselves from others by shaping their bodies perfectly (Green and Kaiser 2016). Hence, the Boden t-shirts and shirts will help them in looking differently from the others. Furthermore, the organization will also target the men with high source of income. The muscle fit clothing of the organization will be quite expensive for its luxurious looks and high quality materials. Hence, the men will high source of income, positive attitude towards life and healthy lifestyle will be willing and able to afford such types of expensive muscle fit clothing.
Customer Profiling for Boden Fit
|
Description |
Boden will target the men with big muscles, who spend a large amount of time at gym. Such customers are inclined to high level of work out for shaping their muscles and showing off their physic. |
|
Age Range |
20-45 Years will be the target for the company, as they are mostly willing to show off their body physic |
|
Most Important for Men with Big Muscles |
Healthy and good body physic is extremely important for these customers. They prefer to work out more at gym for shaping their body and muscles. |
|
Ways to Market |
Social media marketing is highly important for attracting the new generation men with big muscles. The organization can also use e-mail coupons and discounts for attracting such customers. Mobile marketing can also be highly influential for attracting these customers with keeping them updated every time with important product information. |
|
Preferred Channels |
Retail shops, online sales and own stores of Boden |
Table 1: Customer Profiling for Boden Fit
(Source: Created by Author)
|
Customer Positioning for Men with Big Muscles |
|
|
High Product Quality |
Boden will provide high quality muscle fit cloths to the customers for differentiating itself from its rival. Moreover, soothes and comforts of the cloths will make Boden unique to the customers. |
|
Luxurious Design |
Boden will offer luxurious design in the muscle fit cloths, which will attract the highly customers. Such cloths will help the men with big muscles to show off their body physic perfectly. |
|
Attractive Discounts |
The organization will use attractive discounts for creating a unique position to the customers. |
|
Premium Pricing |
The premium pricing strategy can be expensive for the customers. However, it will make a positive and unique perception about the products to the customers. |
|
Intensive Distribution |
Intensive distribution channels will enhance the convenience of the customers to get access to the products. Hence, such distribution channel will make Boden unique to the customers. |
Table 2: Customer Positioning
(Source: Created by Author)
Borden Sports: Sports Wear/Active Wear
Full Justification of Target Market
Boden will target the sporty men and women for offering sportswear and active wear. Moreover, active wear will help these women to look and feel their best during their sports and exercise. Most of the athletes wear combination of different types of sportswear and active ware for their comfort and safety reasons during sports and exercise (Han 2016). Hence, the organization will target the women, which are highly inclined towards sports and exercise. On the other hand, the organization will also target men for offering the sport ware like sports shoes, shirts, helmets and others. The men, who are highly inclined towards sports, are willing to purchase comfortable sportswear for their comfort and safety. Furthermore, the organization will mostly target athletes for offering sportswear on their need of appearance and comfort. The target of Boden for Boden Sports is the men and women having high household income source. The sports cloths of the organization will be set at high prices for its premium quality and luxurious design. Hence, the customers having high household income source will be able to afford the expensive sport cloths of the organization. Apart from that, the organization will target the customers having high level of positive attitude towards life. Such people are more likely to live healthy lifestyle through participating in different types of sports and exercise. Hence, such customers will definitely be willing to purchase the sportswear and active wear.
Customer Profiling for Boden Sports
|
Description |
Boden will target both the men and women, who are highly inclined towards sports and exercise. Moreover, the customers will be having a healthy life style for a healthy body. |
|
Age Range |
20-40 Years |
|
Most Important for Men and Women Inclined towards Sports and Exercise |
Healthy and Sporty lifestyle is extremely important for these kinds of customers. They mostly prefer to do daily exercise and participate in different types of sports either for their profession or making healthy habits. |
|
Ways to Market |
Magazine advertisement and social media advertisement will be helpful for Boden to increase its product exposure to these types of customers. |
|
Preferred Channels |
Boden will mostly use retail channels, online mediums and own stores for offering its products to these customers. |
Table 3: Customer Profiling for Boden Sports
(Source: Created by Author)
Customer Positioning
|
Customer Profiling for Sports Wear/Active Wear |
|
|
High Quality Products |
Boden will offer premium quality sportswear and active wear to the customers. Such high quality cloths will differentiate the organization to the customer from their other competitors in the market. |
|
Unique and Attractive Design |
The unique and attractive design of the sportswear and active wear will add the customer positioning of Boden. Moreover, such cloths will give unique and attractive looks to both men and women during their sports time and exercise time. |
|
Competitive Pricing |
The competitive pricing of Boden sports will provide a positive customer perception regarding the cloths. Moreover, the pricing will be based on the pricing of the rivals companies. Hence, such pricing will help the organization to make a unique position to the customers. |
|
Attractive Offers |
The attractive offers associated with the sportswear and active wear will highly attract the customers. |
|
Intensive Distribution |
The intensive distribution channels of the organization will increase the product accessibility to the customers. |
Table 4: Customer Profiling for Sports Wear/Active Wear
(Source: Created by Author)
Marketing Objectives
|
Product Objective |
· To diversify the products for acquiring new set of customers · To increase the total revenue by 20% within three years time period |
|
Pricing Objective |
· To increase the overall profit volume of Boden by 35% within next 3 years time period · To increase the market share in UK by 10% |
|
Place Objective |
· To increase the sales volume of Boden by 25% within the next 3 years time period |
|
Promotion Objective |
· To increase the customer acquisition rate by 15% in year on year basis |
Table 5: Marketing Objectives of Boden for 3 Years Time Period
(Source: Created by Author)
Product is the first and foremost factor of marketing mix for attracting the customers. Product is an item that is produced for meeting the needs of certain group of customers. According to Kiseleva (2017), right type of products meeting the exact demands of the customers, can attract purchasing intension of the customers. In case of Boden, the organization will offer Boden Fit products, which will be the muscle fit shirts and t-shirts for the men with big muscles. Such muscle fit clothing will give comfort and dashing looks for the men during their work out time at gym. Moreover, the unique design of the muscle fit cloths help the men with big muscles to show off their attractive body physic. On the other hand, Zeriti et al. (2014) opined that unique quality of product helps an organization to gain high level of competitive advantage over the rivals. Boden will offer Boden sports, which will actually be the sportswear and active wear for the customers involved in sports and exercise. Moreover, Boden will offer unique designed sports shoes, sports pants, sports leggings, tank tops, capris, helmets and many more. The unique quality and design of active wear will give a attractive look and high level of comfort to the customers during their sports and exercise.
The price of product is actually the amount, which the customers pay for availing or enjoying it. According to Schmidt, Spann and Zeithammer (2014), pricing strategy is extremely important for determining the profitability level and survival effectiveness of an organization. Furthermore, pricing also shape the perception of customers for a certain product. In case of Boden Fit, Boden will use premium pricing strategy for the muscle fit shirts and t-shirts. In such pricing, the organization will use higher price of their muscle fit shirts and t-shirts to be offered to the men with big muscles. Such pricing will help the organization to gain profit from the sales. Apart from that, the customers will also view such premium priced cloths as more prestigious and desirable than other less priced cloths. On the other hand, Kumar (2015) opined that competitive pricing helps an organization to increase its overall sales volume. In such pricing, the organization will set pricing for active wear and sportswear as per the pricing strategy of the competitors in the market. In this way, the customers will be highly inclined towards purchasing such quality active wear at affordable price. It will ultimately increase the overall sales volume and market share of the organization in United Kingdom.
Placement and distribution is extremely important for an organization to make the products accessible to the customers. According to Ritter (2016), convenient accessibility of the products highly attracts the customer towards taking instant purchasing decision. In case of Boden, the organization will use convenient distribution channels for making the cloths easily accessible to the customers. Moreover, the organization will mostly use online mediums for the offering their products to the customers. In online distribution channel, the customers will order for the cloths through the website of the organization and get delivery of the products at their home. They do not need to visit the physical stores by giving extra time and effort for shopping. Such online distribution channels will highly attracts the customers having busy schedule and online shopping tendency. On the other hand, Athanasopoulou, Giovanis and Avlonitis (2015) opined that retail distribution channels extend the geographical reach of the products offered by an organization. Hence, Boden will use successfully use retail distribution channel for acquiring huge customer base. Moreover, the organization will sell its products through well positioned and popular retail chains, where it will get access to huge customer base. Furthermore, the organization will also use its own stores for offering the cloths to the customers, who do prefer online shopping. In this way, the intensive distribution channels will help the organization towards enhancing its customer acquisition volume.
Promotion is extremely important for an organization towards increasing its brand awareness to the customers. According to Assimakopoulos et al. (2017), promotion strategy typically covers the communication methods of an organization towards conveying the unique and attractive product information to the customers. Hence, effective promotional strategy is extremely important for attracting the purchasing intension of the customers. In case of Boden, the organization will be wide range of promotional tools for increasing the brand awareness to the new target customers. Moreover, the organization will use traditional print media advertisement for getting reach to wide customer sector. The use of billboard will help the organization to reach wide customer group with limited cost. On the other hand, the organization will also use television commercial for attracting mass section of customers towards the products. The digital and social media marketing is the most effective ways of reaching new generation customers (Finoti et al. 2017). Hence, Boden will use Facebook, Twitter, Instagram advertisement for increasing the brand exposure to the new generation customers. Furthermore, the organization will also conduct marketing campaign for increasing the public relation for gaining high level of customer loyalty.
While considering the projected marketing budget, Hanssens and Pauwels (2016) pointed out that an organization must focus on three main elements, which are national marketing strategies, advertisement strategies and social media strategies. From the above table, it can be identified that maximum expenditure will be for advertisement, which includes online, print, outdoor, radio and television. Intense advertisement will be done in the initial year, however deeper focus will be given on online mode of advertisement from the second year so that market penetration is increased.
In the first year, maximum budget will be allocated for advertisement within which highest expenditure will be for online medium. This medium will be other than social network platform and will consist of banner advertisement, pop-up advertisement, advertisement through online agencies and advertisement through official website. According to Fischer, Shin and Hanssens (2015), traditional means of advertisement has been taken over online platforms and therefore the second most expenditure is due to social media. Facebook will be utilized the maximum for advertisement. It can also be found that local marketing advertisement is consuming the lowest budget because Luxton, Reid and Mavondo (2015) pointed out that at present the people of age group within 15 to 45 in UK is engaged maximum with social networking sites.
Earlier, it has been found that the sales revenue of the organization has been rising from the year 2012. Furthermore, at the end of 2016, the revenue was £308m. Form the forecasted marketing budget it can be found that the total budget is £2,784,680. The organization will just have to spend very less in order to place the new male products in the market.
The ways through which market forecasting can be done are follows:
|
Method |
Explanation |
|
Historical Review |
Ø Boden did not have any similar products earlier and therefore it needs to evaluate the histories of its competitors Ø Historical data will highlight the ways that Boden needs to incorporate so that it does not fail Ø However, such qualitative data might lead to discrepancies as circumstances and environmental factors might not remain the same |
|
Test Market |
Ø Both the type of products can be introduced in existing market however in chunks such as using pilot sales style so that market response from retailers and e-commerce platforms is gathered Ø Boden will get to know the project gaps and modifications needed in packaging, shipping and displaying |
|
Before-after retail simulation |
Ø Instantaneous sales potentiality of the latest products can be understood Ø Boden will need to advertise products initially and gather attention within consumers Ø Then response from retailers will be gathered whether consumers are searching for such advertised brands in stores Ø Finally, the products will be placed in stores and instantaneous sales will be actualized |
Table 6: Market Forecast Techniques
(Source: Created by Author)
According to Hanssens and Pauwels (2016), market forecast is the main element of a marketing plan as it projects the future numbers, trends and characteristics of the selected target market. For the concerned marketing plan, there are two target markets, which are muscle fit wear for men and active wear for female. According to Hollands, Marteau and Fletcher (2016), more than 65% of UK population is found to be heath conscious in terms of daily consumes. Therefore, for Boden if just 50% of the total population is targeted then then it will be absolutely practical.On the other hand, Han (2016) pointed out that in the last three years the average UK population increased by 0.60%. Therefore, based on the facts collected market forecast is below.
|
Target Market Category |
UK Population |
Proposed Target Market |
Growth |
2018 |
2019 |
2020 |
CAGR |
|
Muscle-fit Male |
32,000,000 |
16000000 |
0.6% |
16000000 |
16096000 |
16192576 |
0.002396 |
|
Active-wear female |
33,000,000 |
16500000 |
0.6% |
16500000 |
16599000 |
16698594 |
0.002396 |
Table 7: Target Market Forecast for 3 Years
(Source: Created by Author)
The above table indicates that population is increasing each year and therefore exposure of the new products will be increased in future. With the increase in population size it is expected that amount of sales will be increased.
|
Target Market Value Forecast |
|||||||
|
Target Market Category |
Average £ per customer |
Market Value 2018 |
Market Value 2019 |
Market Value 2020 |
Product Attitude |
Loyalty Status |
Buyer Readiness |
|
Muscle-fit Male |
£ 110.00 |
1760 M |
1771 M |
1781 M |
Positive |
Medium |
Medium |
|
Active-wear female |
£ 165.00 |
2723 M |
2739 M |
2755 M |
Extremely Positive |
High |
Defensive |
Table 8: Target Market Value Forecast for 3 Years
(Source: Created by Author)
In the above table average currency value of a customer has been proposed to be £ 110 for male and £ 165 for female. Currency value for female is higher because their tendency of apparel purchase is higher than male. Therefore, it can be said that both in terms of value and quality female target market will generate higher sales than male category.
The control techniques of each of the elements of marketing mix can be evaluated by using key performance indicator tool.
|
Key Performance Indicator and Recommendation |
|
|
Product |
Market Research–Competitors: The latest products that competitors are placing in the existing market need to be analysed and based on that modifications will have to be done (Kiseleva 2017). Competitor Analysis: The market size of overall industry must be compared with the historical size and the market growth has Boden will determine its future |
|
Price |
Profitability Control: This will allow Boden to closely monitor its expenditure, profit and sales. Based on the outcome, pricing strategy will need to be changed. Demand Analysis: Fluctuations in market demand will need to be analysed so that manufacturing and distributing items can be increased or halted. |
|
Place |
Market Research –- Customers: Based on shopping habits and demographic terms customer base must be tracked so that market penetration is possible. This might include focusing on zip codes (Ritter 2016). |
|
Promotion |
Consumer Feedback: Maximum of the promotion will be done through online means and therefore, responses of consumers in social media sites will be tracked. Common point of dissatisfaction will have to be addressed. Review: Reviews generated in online sites along with other advertising agencies will be tracked and based on that control measures must be taken. |
|
Process |
Strategic Control: Boden will need to analyse its stakeholders and investment capabilities. If response from investors is positive it indicates good process. Cost Assessment: The various elements of expenditure will need to be analysed and the difference between proposed and projected expenditure will be calculated. Budget: Annual plan control needs to be initiated, which will involve sales analysis, market share analysis, marketing expenditure analysis, financial analysis and customer attitude tracking (Jin and Jung 2016). |
|
People |
Marketing Audit: This audit will involve all the internal and external stakeholders. Contributions made by them will be analysed and based on that measures will be taken for optimum outcome. |
|
Physical Evidence |
Feedback: Direct feedback from the consumers must be gathered who purchased only through retail stores. Cause of customer dissatisfaction will help in determining the requirement of modifications (Kumar and Kim 2014). |
Table 9: Marketing Mix Control Techniques
(Source: Created by Author)
Conclusion
While concluding the study, it can be said that Boden is a highly popular clothing retail in UK that is also highly successful in oversea markets. The catalogue marketing and mail order of the organization has helped the organization to enhance its overall sales volume. However, the organization is facing tough competition in USA as well as UK market from the other competitors. Now, the organization is about to target new customers for offering their products for developing their business in UK market. Moreover, the organization will offer muscle fit clothing to the men with big muscles and active wear to the men and women involved in sports and exercise. However, the recent political instability and economic downturn of UK can hinder the ultimate business success of the organization. On the other hand, the social development and technological advancement of UK can add to the business success level of Boden. The high level of corporate reputation will help the organization to easily attract the new target customers. The organization will target the customers aged from 20-40 having their big muscles for offering muscle fit cloths. On the other hand, the organization will also target both men and women aged from 20-45 involved in sports for offering their active wear. High quality and unique design of the cloths will differentiate the organization from its rivals in the market.
References
Akalin, M., Turhan, G. and Sahin, A., 2016. The application of AHP approach for evaluating location selection elements for retail store: a case of clothing store. International Journal of Research in Business and Social Science (2147-4478), 2(4), pp.1-20.
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