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Marketing and Promotion

Situation Analysis for Topshop Unique AW13 Collection

Katherine Victorson VIC13389058

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Contents

Ref Title Page Number

1.0 Introduction 2 2.0 Part One 2 2.1 Marketing Environment – PESTEL Analysis 2-5 2.2 Marketing Environment – SPICC Analysis 5-7 2.3 Customer 7-11 2.4 Product 11-13 2.5 Price 13-15 2.6 Promotion 15-18 2.7 Place 18-19 2.8 People 19-20 2.9 Physical Ambience 20-21 2.10 Process 21-22 2.11 Packaging 22-23 3.0 Part Two 24 3.1 SWOT Analysis 24-25 3.2 Conclusion 25 Bibliography – Main Text 26-28 Bibliography - Images 30-32 Appendix A – Primary Research Customer Questionnaires 32-35 Appendix B 36-38  

 

 

 

 

 

 

 

 

 

 

 

 

 

Word Count: 2084

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1.0 Introduction

1.1 This report analyses the marketing activities of Topshop’s Unique AW13 Collection and focuses on Topshop’s marketing environment; customer; product; price; promotion; place; people; physical ambience; process and packaging. Topshop is part of the Arcadia Group, presently owned by Sir Phillip Green. (Arcadia 2013a)

1.2 In 1974 when Topshop was launched, as a standalone business, its target market was 13 to 25-year-olds. However, since 1989 Topshop’s product designs have become more mature, sophisticated and now attracts an older demographic of fashion-forward women between the ages of 18 and 35 years from A, B, C1 demographics. (Neep 2011; Topshop 2013b; Jackson & Shaw 2009Pg62)

2.Part One

2.0 Marketing Environment – PESTEL Analysis

2.1 Macro-environmental factors, as detailed in Fig.1, have the potential to have a significant influence on Topshop’s marketing environment and in turn their Unique AW13 Collection’s performance and success. (Kotler et al 2008:pg 43)

Figure 1: Macro-environmental factors: Sourced Professional Academy (2013)

2.1.2 The undertaking of a PESTEL (Publics, Economical, Social, Technological, Environmental and Legal) analysis, as detailed in Fig.2, enables Topshop to analyse, understand, monitor, take consideration of and adjust to the potential impact of these macro-environmental factors upon the Unique AW 13 Collection. (Kotler et al 2008:pg 43)

Figure 2: PESTEL Analysis of Topshop’s Unique AW13 Collection

Macro-environment factors Influence on Topshop/ Unique AW13 Collection Political: The political environment includes ‘laws, government agencies and pressure groups that influence and

In advertising the Unique AW 13 Collection ,Topshop is responsible for complying, where applicable, with the Advertising Standards Authority’s ‘Advertising

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limit various organisations and individuals in a given society’. (Kotler et al 2008:pg 211) This can include the lead bodies which help to control and censor the industry, but are not policed by governmental legislation, such as the Advertising Standards Authority. (Jackson & Shaw 2009:pg 300 &301)

Code’, which state that advertising:

• Must be responsible • Must not mislead, or offend

(Advertising Standards Agency 2013)

In 2011Topshop withdrew an advertisement of skinny model following complaints made a pressure group. (Gonzales 2011)

Economical: Economic factors have a significant impact on how organisations do business and also how profitable they are. Factors include economic growth, interest rates and disposable income of consumers (Easey 2009:pp 53&54) During economic downturns the fashion industry can suffer as consumers hold off purchasing. However, with the easy availability and the emergence of the ‘modern student’ a generalised acceptance of debt is encouraging the younger target market to spend rather than save. (Jackson & Shaw 2009:pg 301)

To encourage consumer purchasing products from the Unique AW13 Collection Topshop offers its target market the following financial benefits:

• 10% student discount as a means of influencing a student’s decision to purchase an item or items from the Unique A/W13 Collection. (Topshop 2013g)

• A Topshop Card, which offers the target market benefits as a further incentive to purchase products from the Unique AW13 Collection (Topshop 201c)

Social: Changes within the social structure and demographics can have a profound influence on the types and level of fashion consumption. (Jackson & Shaw 2009:pg 301) Demographics can include age, gender and income. However, it can also include physiological and social characteristics of the customer and as such it is possible for a customer to perceive a relationship between clothing and their achievement of social standing or mobility. (Easey 2009:pg 68)

Topshop’s Unique AW13 Collection’s marketing strategy is directly aimed at appealing to the target market’s physiological wants and needs by:

• Describing the type of consumer who would purchase this collection as a girl with ‘her own sense of style, be that a sartorial twist on Cruella de Vil’s penchant for Dalmation print, mastering the military trend to pin-up worthy proportions, perfecting the art of effortless femininity’. (Topshop 2013h)

Technological: ‘The technological environment is creating new products and market opportunities’. (Kotler et al 2008:pg208). Due to the current increase in technological advances, mobile media in the form of smart phones has become increasingly accessible to the fashion target market whose demographic is between the ages of 18-35 as prices have continued to drop. (Lea-Greenwood 2013:pg182)

Topshop’s Unique AW13 Collection is available to its target market via:

• Mobile phone and iPad application which can be downloaded straight to the customer’s device. (Arcadia 2013a)

Research undertaken in 2012 supports the continued use of mobile media as a good social media platform for Topshop’s AW13 Collection. Topshop was ranked second amongst women’s fashion retailers for customer social interaction and social engagement across social media platforms, such as Facebook, You Tube and Twitter in 2012, with ASOS being

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Facebook is an important part of social media communication tool for disseminating information. (Lea-Greenwood 2013:pg131)

ranked top. (Moth 2012) Please see Fig. 3 for details customer social interaction:

Figure 3: Social Volume Scores Index: Sourced Moth (2012) In November 2013 Topshop’s Facebook page, which keeps its follower up-to-date with their current lines and fashion news had 3,583,953 followers. (Facebook 2013)

Environmental: Environmental factors impacting upon the fashion industry include an increased interest and concern in ethical and sustainable issues by the consumer, growing scarcity of raw materials, increased cost of energy, as well as increased pollution and climate change. (Jackson & Shaw 2009:pg 121;Kotler et al 2008:pp 201,204 & 205)

Topshop, as part of the Arcadia Group, has a role to play in their impact upon the environment and have:

• Pledged to continue with its Carbon Reduction Commitment (CRC) by investing in better energy management and transport. (Arcadia 2013f)

• Topshop has reduced its carbon emissions by 5.4% in 2010/11 (Arcadia 2013f)

• Introduced recyclable/reusable packaging to further reduce harm to the environment.

(Arcadia 2013e) Legal: Legal factors include for example consumer protection, employment law (national and international) and industry-specific regulations Health and Safety (Easey 2009:pp 35, 36 &37) It is important that an organisation understands the laws at a local, national and international levels and how it affects them. (Kotler et al 2008:pg 214)

The Unique AW13 Collection is available to buy online and is subject to the Distance Selling Regulations which:

• Allows a customer can cancel their order at any time before the expiry of the period of seven working days beginning the day following receipt of their order.

• Ensures Topshop, will then provide a full refund and the customer but must return the cancelled items to Topshop.

(Topshop 2013b)

Products within the Unique AW13 collection are manufactured aboard. To ensure ethical practices are adhered to the Arcadia Group’s Code of Conduct applies to suppliers, manufacturers or any other person involved in supplying goods to Topshop. The code is part of Arcadia’s terms and conditions and is based on:

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• International Labour Organisation (ILO) conventions and recommendations

• United Nations legislation, such as the Universal Declaration of Human Rights 1948, International Covenant on Civil and Political Rights 1966.

(Arcadia 2013c)

2.2 Marketing Environment – SPICC Analysis

2.2.1 Topshop’s Unique AW13 Collection’s marketing environment is also affected by micro-environmental factors. (Kotler et al 2008:pp 179&180)

2.2.2 The undertaking of a SPICC (suppliers, publics, intermediaries, competition and customers) analysis, as detailed in Fig.4, enables Topshop to analyse, understand, monitor, take consideration of and adjust to the potential impact of these micro-environmental factors upon the Unique AW 13 Collection. (Kotler et al 2008:pp 179&180)

Figure 4: SPICC Analysis

Micro-environment actors Influence on Topshop/ Unique A/W13 Collection  

Suppliers: Suppliers provide organisations with the materials they need to carry out their business activities. A supplier's behaviour will directly impact the business it supplies, therefore it is important that an organisation has a close supplier relationships as an effective way to remain competitive and secure quality products. (Kotler et al 2008:pp 180 &18)

Topshop’s Unique A/W13 Collection is supplied by suppliers contracted by the Arcadia Group:

• Arcadia Group work with 700 suppliers that manufacture goods

• 46 countries worldwide including China, Romania, Turkey, Mauritius and India

• 48% of the suppliers have been with Arcadia for three years or more

• The top 20 suppliers provide 44% of Arcadia’s goods

• Arcadia do not own or operate factories and work with approximately 1060 factories, including 47 UK based factories

(Arcadia 2013g) Publics: A public is any group which has a potential or actual interest in/or impact on an organisation’s ability to achieve to achieve its objectives: (Kotler et al 2008:pg 183) Media publics – These are the mediums that carry news, features and editorial opinions and include newspapers, magazines, radio and television. Media is one of the most powerful public’s to affect the fashion market. Organisations need to manage the media so that the media help promote the positive things about the organisation and reduce the impact of a negative event on their reputation. Some organisations will even employ public relations Public Relations (PR) consultants to

Media Publics: Topshop employs Press Officers within their Public Relations Department whose responsibility it is:

• To liaise with the press, magazines, television to get media coverage of the Unique AW13 collection

• To organise events and catwalk shows to which the media are invited.

(Topshop 2011d) Topshop is the only high street brand to show ‘on schedule’ at London Fashion Week with their in-house designed Unique AW13 Collection.

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help them manage a particular event or incident. (Kotler et al 2008:pg 143; Easey 2009:pg 34)

General public – It is important that a company is concerned about the general public’s attitude towards their products and activities, as the general public’s image of a company will directly affect its buying. In this sense organisations spend a considerable amount of time on their public image, one of the ways an organisation can do this is through supporting ‘goodwill’. (Kotler et al 2008:pg 184)

(Arcadia 2013a) General public: Topshop has worked on its public image during 2013 by supporting charities such as, Centrepoint, a homeless charity and:

• Raising £83,000 through the sale of NEWGEN t-shirts , created to mark the brand’s 10th anniversary of supporting young designer talent at London Fashion Week

• Raising £43,000 from the sale of bracelets at till points

(Arcadia 2013d, Topshop 2013e)

Intermediaries: Intermediaries are organisations within a distribution channel, such as agents, distributers, wholesalers and retailers all of whom make it possible for an organisation to deliver its product to customer without the need to own the whole supply chain. (Blythe 2009:pgs 143&144) Physical Distribution Firms - Are the companies that help the organisation to move products from the point of origin to their final destination. When working with warehouse and transportation companies it is important that the organisation determines the best ways to store and ship goods whilst balancing the cost, speed, delivery and safety. (Kotler et al 2008:pg181) Financial intermediaries – Include banks, insurance companies and credit companies who help to finance transactions or insure the risks associated with buying and selling of goods. .(Kotler et al 2008:pg 182) The majority of companies and customers rely on financial intermediaries to finance transactions.(Kotler et al 2008:pg 182)

Physical Distribution Firms: Topshop’s Unique AW13 collection manufactured by international and UK-based suppliers is transported to Topshop stores by in-house and third party carriers that have supported the Arcadia Group for a number of years. These include:

• Ocean freight firms – Maersk, Nippon Yusen Kaisha Group and Neptune Orient Lines

• Air freight firms - Allport Cargo Services

• In-house delivery fleet

(Arcadia 2013h) Financial intermediaries: Customers are able to purchase items from the Unique AW13 Collection using their Topshop Card. Topshop offers card holders incentives to finance their purchases with their Topshop Card by offering benefits such as:

• £5 off Topshop voucher is redeemable in-store or online at Topshop.com when a customer spends £50 or more in a single transaction.

• 15% off Topshop voucher is redeemable in-store or online at Topshop.com when a customer spends £80 or more in a single transaction

(Topshop 2013c) Competition: Competitors are those who sell the goods and services of a similar description to the same target market,

The main competitors for the Unique AW 13 Collection sold in store and online are:

• Rihanna’s River Island Autumn Winter

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through the same distribution channels and marketing mix-strategies. Analysis and monitoring of a competitor is crucial if an organisation is to maintain or improve its position within the market. If a business is unaware of its competitor's activities they will find it very difficult to beat their competitors. (Kotler et al 2008:pp 461,462,463,464 &465)

2013 (River Island 2013)  

• Isabel Marant’s H&M Collection AW13 (H&M 2013)  

• Oasis AW13 Collection – (Oasis 2013)  

• Zara AW 13 Collection (Zara 2013)  

• Miss Selfridge – AW13 Trend Edit (Miss Selfridge 2013)  

Customers: A customer is an organisation’s consumer market, such as an individual or household, who buy the products for personal consumption. By monitoring customer needs as they evolve a customer-centred company can focus resources and deliver superior value to its target market. (Kotler et al 2008:pp182 & 487)

In order create a consumer-centred approach to their company Topshop:

• Recognise that no two customers are alike

• That everyone needs a little help sometimes when purchasing products and Topshop offers a Personal Shopping Service, in some of their stores.

• Customers can build up relationships with their Personal Shoppers, who have an ‘encyclopaedic knowledge of what’s in store at any one time’ and be notified when pieces from the Unique AW13 collection.

• Personal shoppers can also help new customers to purchase items for the collection.

(Arcadia 2013a)

2.3. Customer

2.3.1 It is a challenge for fashion retailers to appeal equally to all customers. Retailers must develop a strategy to concentrate its resources and activities on a specific area of the market. (Posner 2011:pg50)

2.3.1.2 By using the marketing strategy Segmentation, Targeting, Positioning (SPT), as detailed in Fig.5, Topshop had developed a well-defined target audience and increase the effectiveness of its efforts. (Posner 2011:pg50)

Figure 5: Topshop’s Unique AW13 STP

Topshop’s Unique A/W13 Collection STP

Segmentation

Topshop utilises demographic segmentation in order to divide the total market of customers into a market that would most likely purchase from Topshop’s Unique AW13 Collection. Topshop does this by dividing the market based on ‘age, gender, family size, family lifecycle, income, occupation, education, religion, race, generation and nationality.’ (Kotler et al 2008:pg 413)

Topshop describes its customer as:

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“students, professionals, fashion taste makers and high profile A-List stars alike. United by their desire for the latest forward thinking trends, these shoppers enjoy both the store's exclusive cult status and accessibility simultaneously. With over one million customers visiting stores every week in pursuit of an up-to-the minute fashion fix, the average customer is a loyal follower of the brand. She cannot be defined by her age - which can range from early teens to fifty something's - but instead her attitude. Style conscious and independent, she is addicted to fashion but is not dictated to. Instead she throws away the rulebook and aims for a unique look.” (Topshop 2013a)

Targeting

A target market is a set of buyers that share common need or characteristics that the company aims to serve. Demographic segmentation is one of the most favourable ways of segmenting customer groups, as demographic variables are easier to measure than other types of variables. (Kotler et al 2008:pp 413&424) Topshop’s target audience for the Unique A/W13 Collection is as follows:

• The Unique AW13 Collection shopper is the ‘aspiring single.’ (Acorn 2013:pg46)

• ABC1 segment classification • Single • Student or in the early stages of their career • Female • 18 to 35 • Income of £12,000/year and up • Urban setting • Rents a house or flat • Purchases for style and design • Outgoing, friendly, resourceful, enjoys social outings • Shops often and enjoys sales, but doesn’t mind spending more on

a piece that is of good quality or will set them apart • Shops mainly on the weekend or online • Both a planned and impulse shopper • Uses public transport • “Highly confident with new technology and likely to be a regular

user of the internet for a wide range of purposes.” (Acorn; 2013:pg39;Topshop 2013a)

Primary Research undertaken in November 2013 of Topshop customers confirmed that:

• 55% of customers who completed the Topshop Questionnaires were aged between 18-24 years of age, with 32% being aged between 25-35 years of age.’’ These percentages are consisted with Topshop’s target market.

• 70% of customers ‘agreed’ that if wearing products from the collection they would feel ‘fashionable’. Whereas, only 2% ‘strongly disagreed’ with this statement.

• 65% of customers ‘agreed’ that they would follow the collection online. This is again a reflection on the age range of the customers.

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• As indicated in below, the greatest influence for Topshop customers when purchasing products is their price followed equally by Brand and Quality of the products.

Appendix A Table:4 (see Appendix A for full analysis of Topshop Customer Responses)

Positioning

In positioning Topshop’s Unique AW13 Collection, Topshop aims to portray a ‘unique’ brand identity to its customers. (Kotler et al 2008:pg 986) Topshop informs that the collection is “the only high street brand to show on schedule at London Fashion Week and the in-house design team work all year round to produce a collection of pieces worthy of the catwalk. From Cruella de Ville and woodland critters to outer space and Cleopatra, their sources of inspiration abound and each season is a sartorial surprise. ‘Think luxe pieces with a big hit of street savvy style.” (Topshop 2013h) In mentioning that their Unique AW13 collection is the only high street brand to show at London Fashion Week, Topshop positions itself apart from its competitors. Furthermore, Topshop informs customers that the collection is produced in house, thus positioning itself in terms of quality. (Kotler et al 2008:pg 986)

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4  

8  

0  

4  

0  

0  

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Main  Criteria  for  Selec9ng  Garments  

Quality  

Price  

Comfort  

Style  

Material/Colour  

Ethical  

Brand  

Criteria  for  Selec-ng  Garments  Chart    

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2.3.2 The most accurate indicator of Topshop’s performance is ‘the conversion rate, as it is the most precise way to predict future sales.” (Shepperd, 2013)

2.3.3 Primary research undertaken on the Sunday 24th November 2013, as detailed in the Fig.7, recorded store traffic for a 30-minute period at Topshop’s London store.

2.3.4 Findings from this research showed Topshop’s conversion rate to be 31.6%.

Figure 7: Topshop Conversion Rates: 24th November 2013

2.4 Product

2.4.1 Product is anything that is offered to a market for acquisition or consumption that might fulfil a need or want and is the most important element of the marketing mix for Topshop’s women’s Unique AW13 Collection as it is:

• The focus for the other elements of the marketing mix

• What the customer buys

• A representation of the Unique AW13 Collection’s brand style, design and quality

• The primary influence on Topshop customer’s experience of the brand And

• Allows customers to demonstrate how fashionable they are and their sense of style

• It can have a societal role as it can enhance a customer’s sense of self-esteem

(Jackson & Shaw 2009:pp 87, 88, &94; Easey 2009:pg 147; Kotler et al 2008:pp 507&994)

2.4.2 The product mix is the assortment of products within the Unique AW Collection for sale by Topshop at any one time. (Easey 2009:pg 163) See Fig 8 for the Unique AW13 Collection product mix.

Observations Total People who passed by Topshop:

636

Customers who went in to Topshop:

318

Customers who left with a purchase:

100

Conversion Rate: (Purchases ÷ Store Traffic = Conversion Rate) (100 ÷ 318) x 100 = 31.6% (Shepperd 2013)

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Figure 8: Topshop’s Unique AW13 Collection Product Mix

Unique AW 13 Collection Product Line: 33 products Product: Width Number

of Product Varieties (Depth)

Product: Width

Number of Product Varieties (Depth)

Product: Width

Number of Product Varieties (Depth)

Shirt/tops

Image: 14

6

Skirts

Image: 15

2

Shoes/boots

Image: 16

7

Jumpers

Image: 17

6

Jumpsuits

Image: 18

2

Handbags

Image: 19

4

Dresses

Image: 20

3

Trousers

Image: 21

3

Please see Appendix B for the full Unique AW13 Collection

(Topshop 2013h)

2.4.3 A customer’s decision on whether to purchase a product from the Unique AW13 Collection will depend on their perception of the product’s value for money and the differentiated benefits they will receive, as detailed in Fig.9. (Jackson & Shaw 2009:pg 89 &90)

Figure 9: Fashion Product Benefits

Fashion product benefits Benefits to customer

Core benefit i.e the warmth of a coat

Actual product benefits Product characteristic; product quality; product performance; brand image; fashion attitude

Augmented product benefits Store card facility; store ambience; stock availability; after-sales policy; staff product knowledge;

(Jackson & Shaw 2009:pg 89 &90)

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2.4.4 The fashion product lifecycle of the Unique AW13 Collection is ‘finite’ and can be plotted over a specific seasonal period, as outlined in Fig10. (Easey 2009:pg 171)

Figure 10: Fashion Product Lifecycle

Stages of fashion product lifestyle

Impact on product

Introduction into market place • Product takes time to gain acceptance • Some customers more innovators • Low sales/negative profits • High cost per customer • Selected promotion will emphasise image

and high fashion nature • Size of market will be limited • Distribution selective

Growth • Competition increases • Gains exposure and begins to have a wider

appeal • Rising profits • Increased promotion to attract mass market • Distribution selective • PR emphasis on broadening exposure

Maturity • Gained mass appeal

• Prices reduced to appeal to a very wide market low cost per customer

• Distribution will be wide • PR emphasis on reinforcement • Now established fashion • Falling profits

Decline • Product going out of fashion

• Competitors eliminated • Sales and profits fall • Prospects of being left with unsold stock • May try to extend product’s life – intensive

advertising; extending distribution, searching for new segments

• Very low cost per customer

(Easey 2009:pgs 171,172 &173)

2.5. Price

2.5.1 Price is the amount of money charged by Topshop for their Unique AW13 Collection and the sum of values consumers exchange for the benefits of having the products. (Jackson & Shaw 2009:pg 124)

2.5.2 The main aims of pricing for Topshop’s Unique AW13 Collection are to:

• Optimise sales • Generate revenue • Increase profits • Provide customers with value

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• Reflect brand’s positioning

(Jackson & Shaw 2009:pg124; Kotler et al 2008:pg 639)

2.5.3 To generate revenue Topshop employs Cost-based pricing. The Cost Price (CP) of buying the product from the supplier is marked-up in order to accomplish the intended Retail Selling Price (RSP). (Kotler et al 2008:pp 644&129)

2.5.4 The approximate mark-up for Topshop, as a high street retailer is: RSP = CP x 3.5 to 4.2 times. There are four main determinants in setting the RSP, see Fig1. (Jackson & Shaw 2009:pp 125&130)

Figure 11: Determinants in Setting RSP

Determinants in setting RSP

Examples

Cost of making the garments

Fabric, trimmings and labour

Overall costs and overheads of running the operation

Staff costs and rents

The level of profit taken at each level of the supply chain

Manufacturers and wholesalers.

The value of the buyer’s own national currency in relation to the currency that the product is purchased in

Items may retail at UK currency in pounds, but be bought by a US citizen in dollars.

(Jackson & Shaw 2009:pg127)

2.5.5 Topshop’s pricing is also determined by a combination of internal and external factors, as outlined Fig.12: (Easey 2009:pgs 180&183)

Figure 12: Factors to Consider When Setting Prices; Sourced ExpertsMind (2013)

2.5.6 For the Unique AW13 Collection’s pricing to be successful it must observe the following:

• A logical price-point policy • Logical price architecture • Have a significant lead in price

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• Indicate a comparative value of the garments • Have memorable key price points • Be easily transacted • Competitive within its market.

(Jackson & Shaw 2009:pp 141,142&148)

2.5.7 The price range of the Unique AW13 Collection from its lead-in price to its top price makes it easy for the customer to determine the level of quality of each item as they move through the products. See Figure 13 for the price architecture’ of each garment category within the collection. (Jackson & Shaw 2009:pp 141,142&148)

Figure 13: Unique AW13 Collection Price Architecture

Type of Garment

Steps in Price: (Lead-in to Top price)

Shirts/Tops

£85.00, £95.00, £100.00, £130.00, £150.00,

£175.00, £200.00

Jumpers

£75.00, £80.00, £250.00, £295.00

Dresses

£155.00, £180.00, £225.00, £250.00

Trousers

£175.00, £185.00, £190.00

Skirts

£150.00, £250.00

Shoes

£135.00, £155.00, £175.00

Jumpsuits

£250.00, £350.00

Handbags

£325.00, £600.00, £750.00

(Topshop 2013h)

2.6. Promotion

2.6.1 Promotion is the dialogue through which Topshop communicates with its customers and provides their target market with information that will assist them in making a decision to purchase a product (Blythe 2009:pg131).

2.6.2 To promote Topshop’s Unique AW13 Collection a number of integrated promotional strategies, as shown in Fig.14, in the Marketing Communications Mix are employed. (Kotler et al 2008:pg 697)

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Figure 14: Marketing Communications Mix diagram: Sourced Kotler et al 2008:pg 697

2.6.3 The purpose of advertising is to move Topshop customers through a series of stages from awareness of the Unique AW13 Collection to purchase. The AIDA model, Fig.15, demonstrates how advertising achieves this transitional process. (Lea-Greenwood 2013:pg13)

Figure 15: AIDA Model

Stage of process

Methods used by Topshop’s Unique AW13 Collection

Attention

Topshop utilises its social media platforms in the form of their Website, Facebook, Twitter and ‘Inside Out’ blog pages to advertise and attract their target market’s attention in the Unique AW13 Collection. (Arcadia 2013a)

Interest

In order to generate interest in the Unique AW13 Collection Topshop streamed their catwalk show in February 2013 live to audiences globally. Thus giving potential customers the opportunity to view the garments before the collection is on the high street. (Topshop 2013f)

Desire

Topshop stimulated desire in the Unique AW13 Collection based on the psychological and sociological needs and wants of their target market. (Easey 2009:pg 68) Topshop placed young model Cara Delevigne at the forefront of the campaign by making her the main model at the London Fashion Week show. Thus, appealing to their young target market as Cara’s age and style is reflective of the audience that Topshop aims to reach. (Topshop 2013f)

Action

In gaining the target market’s attention, interest and desire for the collection, Topshop is able to increase the likelihood of customers coming in-store or visiting their online store to browse and potentially purchase garments from the collection. (Lea-Greenwood 2013:pg13)

2.6.4 The use of marketing communication mix strategies enables Topshop to promote the Unique AW13 Collection effectively attracting the customer’s attention, generating interest and encouraging desire and action. (Lea-Greenwood 2013:pg13) See Fig.16 for examples of Topshop’s Marketing Communication Mix.

Consistent,  clear  and  compelling  company  and  

brand  messages  

Personal  Selling  

Public  Rela9ons  

Direct  Marke9ng  

Sales  Promo9on  

Adver9sing  

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Figure 16: Marketing Communication Mix for Topshop’s Unique AW13 Collection

Marketing Communication Mix elements

Topshop’s Marketing Communication Mix Strategies for the Unique AW13 Collection

Advertising: Advertising is a non-personal presentation and promotion of products that is paid for and includes Above the Line Advertising' and 'Below the Line Advertising'. (Kotler et al 2008:pg985; Bohdanowicz & Clamp 1994: pp 123 & 125) Above the Line Advertising: Comprises of media-based activities, such as the press and magazines. This form of advertising according to the DRIP theory is both informative and persuasive, as it informs the target market about the collection and persuades them to take an interest. (Lea-Greenwood 2013:pg13; Bohdanowicz & Clamp 1994: pp 123 & 125) Below the Line Advertising: Consists of non-media advertising activities. (Bohdanowicz & Clamp 1994: pp123 & 125)

Above the Line Advertising

• Topshop utilised the Press and media coverage of the upcoming Oxford Street Fashion Showcase in September 2013 to help promote the Unique AW13 collection. (Pithers 2013)

Image: 22

Below the Line Advertising

• In February 2013 Topshop strategically made use of consumer based advertising when they collaborated with Google+ to broadcast their Unique AW13 Collection live at London Fashion Week straight to audiences.    

Topshop’s Unique A/W13 collection is the only High Street brand to show on schedule at London Fashion Week. (Businessoffashion 2013)

Sales Promotion: The aim of ‘sales promotion’ is to increase sales by offering the target market additional motives to buy. This can include strategies such as in-store displays, events, fashion shows and discounts. (Bohdanowicz & Clamp 1994:pg 125)

Topshop offers their student customers a further incentive to purchase products from their Unique AW13 Collect by offering 10% discount with valid student ID. (Bohdanowicz & Clamp 1994:pg127; Topshop 2013g)

Image: 23

Personal Selling: Personal selling is vital to the success of an organisation, as it is the interpersonal element of the

Topshop employs a sizeable sales force to ensure that there is staff on hand to provide customers with a ‘personalized’ service by providing social support and practical help when required. (Topshop 2013a)

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promotion mix whereby face-to-face interaction can help build up a buyer’s preferences to purchasing a product from the collection. (Kotler et al 2008: pp: 714&780) Buying fashion items is also a ‘high involvement’ process which involves ‘customer identity’. (Bohdanowicz & Clamp 1994: pg139)

As detailed in Figure 4: SPICC Analysis, Topshop also employs Personal Shoppers to support customers decisions when choosing to purchase a garment from the Unique AW13 Collection. (Arcadia 2013a)

Public Relations: Public relations (PR) are the activities that an organisation undertakes to communicate with its target market, but does not directly pay for. Organisations can employ staff to circulate and manage information and organise events and fashion shows. (Kotler et al 2008:pp 714&761 ; Bohdanowicz & Clamp 1994:pg138)

Topshop employs in-house PR staff whose role is to liaise between Topshop and the Press including:

• Magazine • Television • Radio • Newspapers • Online

Topshop’s PR staff are also responsible for promoting new campaigns and products and organising events and catwalk shows. (Topshop 2011d)

Direct Marketing: Direct marketing is the direct communication with carefully targeted customers and encompasses all types of online communication. Moreover, it is a powerful tool for building customer relationships. (Kotler et al 2008:pp 823&825)

Due to the convenient and instantaneous nature of Topshop’s:

• Facebook page • Twitter • Tumblr • Award winning blog, Inside Out

Topshop is able to ensure that information about Topshop’s Unique A/W13 collection can be reached at anytime and anywhere enabling their consumers a greater measure of control as they can receive information immediately from the comfort of their own homes or whilst on the go. (Kotler et al 2008:pg 825; Arcadia 2013a)

2.7 Place

2.7.1 Place is the element within the marketing mix which is concerned with the means by which the product gets to the customer and includes distribution and logistics. (Bohdanowicz & Clamp1994:pg 75)

2.7.2 Distribution and logistics systems are the processes involved in delivering the right products, at the right time to the right place. (Blythe 2009:pg 141; Kotler et al 2008:pg 912) Through the use of a ‘multi-channel distribution systems by Topshop, see Fig. 17, the Unique AW13 Collection is available for the customer to purchase via two or more channels. (Bohdanowicz & Clamp 1994:pg 80, Kotler et al 2008:pg 892)

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Figure 17  Multi-channel distribution: Source Figure 19.5 Kotler et al 2008:pg 892

2.7.3 Logistics is central to the supply chain and is the physical distribution/movement of goods from the raw materials through to final consumption. (Blythe 2009:pg 141; Kotler et al 2008:pg 914; Arcadia 2013f)

2.7.4 The choice of transportation carriers affects the pricing of products as such the Arcadia Group has consolidated certain deliveries onto the same vehicle to reduce costs. (Blythe 2009:pg 141; Kotler et al 2008:pg 914; Arcadia 2013f)

2.7.5 Place is also the location where an exchange takes place and can include a website or store. Location is of prime importance to Topshop in terms of the positioning of its stores and reaching its target market. (Blythe 2009:pg 131; Bohdanowicz & Clamp 1994:pg 83)

2.7.6 Topshop’s London store is ideally located to attract the Unique AW13 Collection’s target market, as it attracts over 250,000 customers per week. (Arcadia 2013a)

2.8. People

2.8.1 People are central to the delivery of a service and convey important messages to customers about the quality of their experience. (Jackson & Shaw 2009:pg238)

2.8.2 Arcadia employs over 43,000 employees. Staff help to maintain Topshop and meet profit goals, see Fig.18. (Arcadia Group 2013)

Figure 18: In-store Employee Roles

Job Title Topshop Job Role

Sales Advisor

Topshop Sales Advisor’s deal directly with customers on a day-to-day basis and their role is:

• To provide a consistent service • Make sure that stock is replenished

and in the right place • Advise customers on their selections • Assist customers in completing their

purchases • Increase the likelihood of sales on

their Unique AW13 Collection (Arcadia Group 2013)

Retail Management

Retail Management staff at Topshop include: • Store managers • Brand managers and deputy brand

managers, commercial managers

Producer  

Distributors   Dealers  

Retailers  

Business  segment  2  

Business  segment  1  

Consumer  segment  2  

Consumer  segment  1  

s  

Catalogues,  telephone,  internet  

Sales  force  

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• Operations managers • Back of house managers • Visual merchandising managers. (Arcadia Group 2013)

These roles work together to ensure daily, monthly, and yearly standards are being met and high levels of service across all departments are being delivered. (Arcadia Group 2013)

Personal Shoppers

Personal Shoppers by appointment are available at stores in:

• Edinburgh • Glasgow • Leeds • Manchester • London • Liverpool

(Arcadia 2013a) Topshop is one of the first high street fashion chains to utilise this service. This specialist service aims to provide optimum levels of customer service by selecting merchandise and offering it to the customer in a comfortable and private environment. (Easey 2009: pg229)

2.9. Physical Ambience

2.9.1 Physical ambience in terms of visual merchandising and music are important. (Easey 2009:pg 231).

2.9.2 Visual merchandising is the physical representation of the Unique AW13 Collection and through creative presentation and grouping of the merchandise in store Topshop can attract the collection’s target market. (Easey 2009:pg 231)

2.9.3 Primary research was undertaken of the visual and music methodologies utilised within Topshop, London, see Fig.19 for the methods used.

Figure 19: Topshop Visual and Audio Display Methodologies: Unique AW13 Collection

Methods of Display Primary Research: Visual & Audio Representation

Topshop’s Unique AW13 Collection ensures merchandise featured in-store is just above and below eye level and in a clear sightline so that the customer’s attention is grabbed. (Jackson & Shaw 2009:pg 229;Primary Research undertaken 14th November 2013).

Image: 24

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To appeal to Topshop’s young target market, the Unique AW13 Collection’s in-store display features bold contrasting colours, such as bright pink and dark grey. “Busy environments use dramatic colours to signal vibrancy and youth.” (Easey 2009:pg 234; Primary Research undertaken 14th November 2013)

Image: 25

Topshop utilises multiple mannequins dressed in the Unique AW13 Collection in the centre of the display. By providing the customers with a vision of what the garments will look like before they have tried them on Topshop has the opportunity to encourage sales within the collection. (Jackson& Shaw 2009:pg 231; Primary Research undertaken 14th November 2013)

Image: 26

Topshop’s Unique AW13 Collection utilises a ‘boutique style’ store layout. To persuade customers to take their time browsing the collection, fixtures have been placed so that they block customers from walking around the display too quickly. This layout encourages freedom of movement within the space.(Lea-Greenwood 2013:pg99, Primary Research undertaken 14th November 2013)

Image: 27

Topshop’s Unique AW13 Collection uses spotlight-style lighting to illuminate key pieces within the collection. “Good lighting draws the customer’s eye to the product and can increase time spent browsing which can ‘drive up sales.” (Wallich 2011; Primary Research undertaken 14th November 2013)

 Image: 28

Music is a powerful way of providing non-verbal communication and mood enhancement and should reflect the target market’s tastes. (Jackson & Shaw 2009:pg 229; Lea-Greenwood 2013:pg103; Primary Research undertaken 14th November 2013)

Topshop’s music is loud and current, with the top hits appealing to the young target market.  

2.10. Process

2.10.1 The most important factors influencing repeat purchases for Topshop is ‘helpful personnel’ and Topshop aims to deliver a high level of service as a way of establishing competitive advantage. (Blythe 2009:pg 198; Topshop 2013b)

2.10.2 Optimal customer service is focused on providing the customer with an efficient, positive and enjoyable purchasing experience. (Hines 2007:pg 157) Figure 20 illustrates customer shopping experience at Topshop.  

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Figure 20: Customer Shopping Experience at Topshop

  WHILST SHOPPING

• Large number of Sales Advisers in Topshop stores to manage high level of traffic (Arcadia Group 2013)

• Topshop’s young target market prefer to browse when locating their own merchandise (Lea-Greenwood 2013:pg103)

• Topshop offers a personal shopping experience where customers can use large, well decorated fitting rooms, refreshments and stylists with fashion expertise (Topshop 2013a)

Topshop Customer Shopping

Experience

AT THE TILL

• Customers can purchase the Unique AW13 Collection both in store and online (Arcadia Group 2013)

• In-store customers have a variety of payment options, including; cash, debit cards, major UK and International Credit Cards, Topshop Card and gift cards (Topshop 2013a)

• Student’s get 10% with Student ID (Topshop 2013g) • Order online and ‘click-and-collect (Topshop 2013a)

AFTER SHOPPING • In-store 14 days return policy for refunds, with a receipt

(Topshop 2013a) • In-store 30 days exchange policy with a receipt

(Topshop 2013a) • On-line purchase – subject to 7 days cooling off period

and 14 days return policy for refund – items must be returned by post (Topshop 2013b)

• If security tag is left on garment – will be removed in store, with receipt (Topshop 2013a)

• Topshop Customer Service available online – for customer questions and feedback (Topshop 2013a)

 

2.11  Packaging  

2.11.1 One of the main functions of packaging is that of protection and it has a functional use in its own right as it:

• Has become intrinsic to the overall status of Topshop’s brand, see Image:30

• Helps to reinforce brand through its design and image with the customer and its continued use.

(Easey 2009:pgs155&157)

2.11.2 Due to the increase in environmental concerns Topshop has reduced their packaging and are using environmentally responsible packaging materials and has seen a 10% reduction in the number of bags used, see Images 29&30. (Kotler et al 2008:pg 512, Arcadia 2013e)

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Image:29 Image: 30

2.11.4 Topshop’s Unique AW13 Collection differs from other Topshop merchandise as it is hung on wooden not plastic coat-hangers. Swing tags attached by ribbon that specify the garments are part of the Unique collection. See Image:31, image:32 and Image:33

Image 31 Image 32 Image 33

2.11.5 This differentiates the collection from other Topshop merchandise in store in order to leave customers with the impression of exclusivity. (Lea-Greenwood 2013:pg90)

 

 

 

 

 

 

 

 

 

 

 

 

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3.0 Part 2

Figure 21: SWOT Analysis Topshop Unique AW13 Collection

STRENGTHS WEAKNESSES

• Unique AW13 Collection available in over 300 UK and 140 International stores

• Personal shoppers available to notify customers of Unique AW13 when arrives in store and/or signpost the collection

• Topshop brand - good public image – supports charities

• Unique AW13 Collection - London Fashion Week.

• Fashion Footprint – positive image – paper bags/ actions to reduce CO2, costs and waste

• Topshop website - online platform superior to equivalent competitors

• Target market – A,B,C1; aged 18 to 35

• Nearly 50% of collection made in Britain

• Good conversion rate in Oxford Circus Store

• Product mix – narrow – more exclusive

• International suppliers manufacture Unique AW 13 Collection – subject to international laws and governmental policies

• Physical distribution – relies on third parties to deliver Unique AW13 Collection to Topshop stores within UK

• Price – Unique AW13 collection prices have the potential to exclude C2, D, E demographically defined customers.

• Sold online – subject to Distance Selling Regulations - 7 day cooling off period

• Lead-in price high –compared to competitors

• Product mix – narrow-compared to competitors

OPPORTUNITIES   THREATS • Technological advances – constantly

evolving • Opening more Topshop stores abroad

– increase number of customers • Further develop website opportunities

to increase customer interaction • Younger demographic (18-24)

modern students, more fashion conscious and more likely to spend than save

• Older demographic (25-35) more disposable income

• Public Relations and Marketing campaigns – Unique AW13 Collection fashion show streamed live via Google+

• Topshop 3,589,953 followers on Facebook page – good exposure of Unique AW13 Collection

• Topshop Card – for financing customer purchases

• 10% student discount • Good visual merchandising

• Competition - Oasis, Zara, Miss Selfridge and River Island’s AW13 collections and celebrity collections sold in store

• Competition from Oasis, Zara, Miss Selfridge and River Island online

• Unique AW13 Collection prices are expensive in comparison to similar competitors

• Target market – ‘modern student’- attracted to cheaper competitor prices

• Unique AW13 Collection advertising subject to scrutiny from lead bodies and pressure groups

• International suppliers manufacture majority of Unique AW 13 Collection – supply shortages, strikes, delays

(Jackson & Shaw 2009:pp 107,109,109&110)

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3.1.1 In undertaking a SWOT analysis of the Unique AW13 Collection, Topshop is able to understand the strengths and weaknesses the collection faces and identify both the threats and opportunities open to them. See Fig.21. (Jackson & Shaw 2009:pp 307 & 308)

3.1. SWOT analysis of the Unique AW13 Collection can help Topshop carve a significant and sustainable niche for the collection in their market. (Jackson & Shaw 2009:pp 307 & 308)

3.2 Conclusion

3.2.1 In conclusion, after completing extensive primary and secondary research, PESTEL, SPICC, and SWOT analyses, it is the conclusion of this report, that Topshop’s Unique AW13 Collection is competitive within its market.

3.2.2 The marketing activities and strategies employed by Topshop have effectively and successfully brought together all of the elements of the marketing mix to achieve the organisations marketing objectives by delivering to their target customers what they want and need. Focusing on their target market’s demographics, including age range (18-35 years of age) and demographic classification, A, B, C1 Topshop has been able to focus their efforts on ensuring that their advertising strategies and promotional strategies, such as streaming the Unique AW13 Collection Fashion Show live, during London Fashion Week, have positioned the collection’s style, design and quality as a ‘unique’ brand amongst their customers. By utilising social media platforms such as Facebook, Twitter and their ’Inside Out’ blog Topshop is able to attract and maintain their target market’s interest in the Unique AW13 Collection and as such is able to increase the likelihood of customers coming in-store or visiting their online store to browse and purchase items. Furthermore, by offering their target market student discount and Topshop Card holders’ additional benefits, such as money off vouchers, Topshop is able to offer their customers financial incentives and opportunities to purchase products from the collection.

Word count: 2084

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25. Victorson, K. (2013) Topshop Unique A/W13 Ceiling

26. Victorson, K. (2013) Topshop Unique A/W13 Manequins

27. Victorson, K. (2013) Topshop Unique A/W13 Store Layout

28. Victorson, K. (2013) Topshop Unique A/W13 Lighting

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29. Victorson, K. (2013) Topshop Green Packaging

30. Victorson, K. (2013) Topshop Winter 2013 bag

31. Victorson, K. (2013) Unique AW 13 Collection Lable

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33. Victorson, K. (2013) Unique AW13 Collection Wooden Hangers

33    

Appendix A Primary Research 2 Primary research is the information that is obtained direct from source and is used in this report to gain information on Topshop’s customer demographics and their attitudes towards the Unique AW13 Collection. (Bohdanowicz & Clamp 1994:pg31) During November 2013 twenty Topshop customers agreed to take part in the customer survey. Questionnaire 1 concentrated on the customer demographics and the types of influences and benefits that affected their decisions when purchasing clothing products from Topshop. Questionnaire 2 concentrated on the Unique AW Collection itself. Analysis of Questionnaire 1

1. What is your age? From the responses given: 55% of customers who completed the Topshop Questionnaires were aged between 18-24 years of age, with 32% being aged between 25-35 years of age. These percentages are consisted with Topshop’s target market.

 

  Table  1  

2.  How much money do you spend on clothing per month? 38% of customers spent between £101 -£150 per month, with 31% spending between £151-£200 per month which is consistent with the Topshop’s target market being from A, B, C1 classification  

 

                 Table  2  

0%  

55%  32%  

9%   4%  

Age  Demographic    Age  Range   18-­‐24   25-­‐35   35-­‐44   45+  

6%  

31%  38%  

19%  6%  

Monthly  Spending  on  Clothing  Per  Customer  

£0-­‐50   £51-­‐100   £101-­‐150   £151-­‐200   £201+  

34    

Appendix: A cont

3. In the last 6 months how many times have you shopped at Topshop? (online and in-store) The highest frequency of customers shopping at Topshop was those who shopped at 3-5 times per year. This figure would suggest that customers purchase items when new collections are brought into the store (seasonal basis).

 

                                     Table  3  

4. What is your main criteria when selecting clothing? As indicated in below, the greatest influence for Topshop customers when purchasing products is their price followed equally by Brand and Quality of the products.

 

                                           Table  4  

5. What would encourage you to purchase a garment from the Unique AW13? The greatest influence when purchasing an item from the Unique AW13 Collection would be from celebrity endorsement and the lowest influence would be from family recommendation.

0  

2  

4  

6  

8  

1-­‐2  per  yr   3-­‐5  per  year   6-­‐8  per  year   8-­‐10  per  year   10+  per  year  

Frequency  of  Shopping  at  Topshop  Yearly  -­‐Per  Customer  

0  

4  

8  

0  

4  

0  

0  

4  

Main  Criteria  for  Selec9ng  Garments  

Quality  

Price  

Comfort  

Style  

Material/Colour  

Ethical  

Brand  

Criteria  for  Selec-ng  Garments  Chart    

35    

Appendix A:cont

 

Table 4 Questionnaire 1 Customer responses Questions Answers 1. What is your age?    

a. 18-24 12 b. 25-34 7 c. 35-44 3 d. 45+ 0

2. How much money do you spend on clothing per month?   a. £0-50 1 b. £51-100 5 c. £101-150 6 d. £151-200 3 e. £201+ 1

3. In the last 6 months how many times have you shopped at Topshop? (online and in-store)  

a. 1-2 times per year 2 b. 3-5 times per year 7 c. 6-8 times per year 6 d. 8-10 times per year 4 e. 10+ times per year 1

4. What is your main criteria when selecting clothing?   a. Quality 4 b. Price 8 c. Comfort 0 d. Style 4 e. Material/Colour 0 f. Ethical/Fair Traded 0 g. Brand 4

5. What would encourage you to purchase a garment from the Unique AW13?  

 

a. Celebrity style 11 b. Family suggestion 1 c. Friend suggestion 8 d. Other, please specify: 0

0  11  

1  8  

0  

Factors  for  Purchasing  Garment  Celebrity  style  

Family  Friends  Other  

Influences  for  Purchasing    Products  from  Unique  AW13  Collec-on  

Series2   Series1  

36    

Appendix A:cont Analysis of Customer Questionnaire 2 The same Topshop customers were then asked to view the Unique AW13 Collection online and complete Questionnaire 2 using a scale ranging from ‘strongly disagree’ to ‘strongly agree’.

Q.1 Compared to your own sense of style, wearing these items would make you feel fashionable: 70% of customers ‘agreed’ that if wearing products from the collection they would feel ‘fashionable’. Whereas, only 2% ‘strongly disagreed’ with this statement. Q.2 Are you satisfied with the price of the Unique AW13 Collections products. 50% of customers ‘agreed’ with the price range of the collection and as such it could be argued that this response reflects the A, B, C1 classification of customer. Q.3 You would follow this collection on social media sites in order to keep up-to-date with product news and updates: 65% of customers ‘agreed’ that they would follow the collection online. This is again a reflection on the age range of the customers. Q.4 You would purchase an item from this collection: 80% of customers who completed the survey ‘agreed’ that they would purchase items from the Unique AW13 Collection. Questionnaire 2 customer responses

Question: After reviewing the Unique A/W collection (http://www.topshop.com/en/tsuk/category/clothing-427/unique-441), please answer the following and mark the most accurate description:

Strongly disagree Disagree

Don’t know/

Neutral Agree Strongly

Agree

1. Compared to your own sense of style, wearing these items would make you feel fashionable

1 2 2 14 1

2. Are you satisfied with the price of these products. 1 1 4 10 3

3.You would follow this collection on social media sites in order to keep up-to-date with product news and updates

0 0 7 13 0

4.You would purchase an item from this collection. 0 3 0 16 1