We have looked at our profits from the past year and they have increased from the previous year, but we still are nowhere near our target goal of 50%. Opening the store in the United Kingdom has increased our profits but our sales are declining. Typically, our sales are high during the first year of college which is our first quarter. Afterward, our sales are steady in the second quarter and start to decline drastically in the third and fourth quarters.
The reason for the decline is once our target audience (college kids) graduate, they no longer buy the affordable college clothing but move towards buying business casual attire for their first professional job. This paper will examine how we can adjust our marketing and production and operations …show more content…
Using market segmentation, we can keep our college students and market to the recent graduates. Market segmentation is breaking the heterogeneous market into small, homogenous markets. We know we cannot target every customer in the United Kingdom, but we can solely focus on one or two groups. An advantage of focusing on two groups to buy our clothes is we will not waste resources or efforts. (SKS Comprehension Strategic Knowledge, 2016). We know who we are targeting and what they want.
We discovered what recent graduates wanted by using the consumer segmentation. The market segments included demographics, geographic, psychological, values and lifestyles (VALS), and behaviors. Demographics are descriptions of the customers. For example, all college students and fresh out working professionals have the same common goal of affordability. They cannot afford the high-end designers, but they want to achieve the same look at a fraction of the price. Geographic identifies the location of the customers. We might not know where each physical location the fresh outs will work, but our data can predict the most likely locations. VALS are our customers’ feelings and how they behave in certain situations. For example, fresh outs like to look professional. We could target them by providing blazers that can be worn at work and dressed up for a night on the town. The last market …show more content…
Now, we have to investigate if our clothing line will be successful with our targeted audience. To determine our success rate, we can use one or many marketing research tools such as cluster analysis for segmentation, perceptual mapping for positioning, focus groups for concept testing, conjoint for testing attributes, scanner data for pricing and coupon experiments and brand switching, surveys for customer satisfaction, or network methods to identify opinion leaders in buzz marketing. (SKS Comprehension Strategic Knowledge,
The reason for the decline is once our target audience (college kids) graduate, they no longer buy the affordable college clothing but move towards buying business casual attire for their first professional job. This paper will examine how we can adjust our marketing and production and operations …show more content…
Using market segmentation, we can keep our college students and market to the recent graduates. Market segmentation is breaking the heterogeneous market into small, homogenous markets. We know we cannot target every customer in the United Kingdom, but we can solely focus on one or two groups. An advantage of focusing on two groups to buy our clothes is we will not waste resources or efforts. (SKS Comprehension Strategic Knowledge, 2016). We know who we are targeting and what they want.
We discovered what recent graduates wanted by using the consumer segmentation. The market segments included demographics, geographic, psychological, values and lifestyles (VALS), and behaviors. Demographics are descriptions of the customers. For example, all college students and fresh out working professionals have the same common goal of affordability. They cannot afford the high-end designers, but they want to achieve the same look at a fraction of the price. Geographic identifies the location of the customers. We might not know where each physical location the fresh outs will work, but our data can predict the most likely locations. VALS are our customers’ feelings and how they behave in certain situations. For example, fresh outs like to look professional. We could target them by providing blazers that can be worn at work and dressed up for a night on the town. The last market …show more content…
Now, we have to investigate if our clothing line will be successful with our targeted audience. To determine our success rate, we can use one or many marketing research tools such as cluster analysis for segmentation, perceptual mapping for positioning, focus groups for concept testing, conjoint for testing attributes, scanner data for pricing and coupon experiments and brand switching, surveys for customer satisfaction, or network methods to identify opinion leaders in buzz marketing. (SKS Comprehension Strategic Knowledge,