Forever21 Marketing Analysis
Category : Marketing Papers
Forever21 Marketing Analysis
Today’s market is characterised by highly competitive organisations which are all vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: firm growth. However, external factors are not the only elements which influence growth. There are also internal factors, components working within the organisation which shape the direction of the firm.
The firm’s marketing environment influences the business organisation directly. This includes the suppliers that deal directly or indirectly to the people within the business organisation, the consumers and customers who demand for the products or services offered by the firm, and other local stakeholders who influence the decision-making process or affected by the business decisions made by the business firm. In addition, this also includes the competitors of the firm. As such, the marketing environment of a particular firm describes the relationship between firms and the driving forces that control and affect their market performance. In this report, competitors of Forever21 will be considered.
A considerable number of companies have developed into an essential part of the period of global competition, increasing development, improved business paradigms, and corporate reorganization. The continuing transformation from the traditional industrial framework with its hierarchical companies to a worldwide, knowledge-founded financial system and intelligent corporations necessitates business management to realign and relocate its strategies (Mcmenamin, 1999). Along with the intense marketing nowadays, firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth (Karp & Schlessinger, 2002).
Competition is an important factor to consider before entering a business. Firms should have successful competitive strategies to be able attract, retain and grow customers. However, before the firm can plan and execute these strategies, it should be able to pinpoint its sources of competitive advantage which can be differentiated through products, services, channels, people and image (Kotler & Armstrong, 2001). Today’s market is characterised by highly competitive organisations which are all vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: firm growth. However, external factors are not the only elements which influence growth.
At present, most firms find that it not plausible to create any kind of sustainable competitive advantage based on product alone. The traditional way of viewing firm operations as an interplay between the product, the market and the organisation is completely insufficient in a world of ever-hardening competition. For an effective marketing, a competition strategy should be created. For the key to superior performance, the competition strategy must encompass an analyse of the target market (the group of people whom the organisation wants to reach) and a marketing mix (the conjunction of product, price, place and promotion) that will satisfy those customers in the target market (Smith, Grimm & Gannon 1992). Once the competition strategy of a firm is determined the whole business should be designed around the target customers` needs. It is common knowledge that every one of the successful firms sought and found a precise understanding of how it could create a customer-centered competitive advantage.
Among the largest apparel manufacturers in the world, includes Giordano, which Esprit, Bossini, G2000/U2 and Zara and others such as Marks&Spencers and other local and international retailers and franchisers which are characterized with relatively stronger local market share compared with the foreign brands in the same price range like Benetton and Mango (Cheong, 2004).
According to Cheong (2004) female executives in the late 20s to mid 40s generally buy local brands such as G2000, Bossini, Giordano Ladies, Jessica, Esprit, Moiselle, Cour Carre, Gay Giano, Episode, Color 18, Michel Rene, Daniel Hechter or foreign labels like Mango, Susuza, Benetton, Indivi, A/T, French Connection, Polo Jeans, Ralph Lauren Polo, Tommy Hilfiger, Agnes B, Kookai, DKNY, MaxMara, Prada, Nicole Farhi, Gucci, Armani Exchange, Emporio Armani and Giorgio Armani. Unlike their male counterparts, very few female executives buy tailored work wear. Moreover, specific apparel products like (a) women’s or girl’s overcoats, car coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and similar articles; (b) women’s or girl’s suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear); and (c) women’s or girl’s blouses, shirts and shirt-blouses are among the best business highlights and prospects for the female population (Cheong, 2004).
In this age of globalization and information technology, deciding which brand to choose can be a problem. Competition is evident and intense, and the marketing and management divisions of corporations are surely giving everything they can to establish their brands. Competition forces certain brand names to become stronger than others because of product loyalty and name recognition. As such, all types of communication became more involved in marketing communications, including literature, training, advertising, mail, telephone, product promotions and other contact relevant to marketing communication (Goldberg & McCalley, 1992).
Cheong, S 2004, International Market Research –Apparel, US Department of Commerce (STAT-USA/Internet), viewed 23 August 2006, <http://strategis.ic.gc.ca>.
Goldberg, R & McCalley, R 1992, Marketing Channel Development and Management. Westport, CT: Quorum Books.
Karp, RS & Schlessinger, BS 2002, The Basic Business Library: Core Resources, Greenwood Press, Westport, CT.
Kotler, P & Armstrong, G 2001, Principles of Marketing, Prentice Hall, London.