The New Look Company Case Study
The partnerships been justified and both of them have been expanded as described below. PARTNERSHIP IDEA The selected partnership is Deborah Fashion. It’s a UK Company that deals with attractive UK fashion taste buds. They discovered the new trends in affordable women’s clothing UK and latest dresses, trousers, jackets and accessories like towels, mat and bags. (Debohah, ad) Maticevski is based in Melbourne in Australia and deals with ready to wear clothes for men, women and children wear. Figure 1 – Drivers of Interorganisational Relationships (Gordon, 2015, p. 295) Competitive Strategy The New look fashion company have a variety of men’s wear and women’s wear but most of the UK citizens purchases their wears from two big firms operating within city.
Those two competing firms are George that provides entry level pricing across menswear, womenswear and childrenswear, is the second firm is shop bop where people opts to buy their clothes. It’s the largest retailer in UK with almost 3000 outlets. They have a market share of about 35 percent and 65 percent respectively. The company runs campaigns and show run for their products. Through its show rooms and campaigns it have partnered with The New Look in producing ne fashion clothes for men, women and children. (News Look , 2018) They aims at increasing sales volume for The New Look fashion company and indeed their profits. Deborah and its partners contribute to fund the show room and run campaigns in all the geographical areas in UK.
The New Look at the end pays a small amount to Deborah Fashions to support the success of the campaigns and show rooms to be able to attract more audience to visit the show rooms and the campaign drives. The chosen strategy has been elaborated below considering the market’s, competitors’ and firm’s characteristics. The discussion has only elaborated the strategies of New Look as explained below. SPORTS WEAR The New Look Fashion Company would expand its business by making unique sport garments that would target sports men and women. They would include t-shirts, shorts, socks, shoes and other protective’s that are used. This would motivate the youths to take parts in games and other people to get clothing’s for physical exercises like gym and spa.
New Look mostly sells women ,men and children wears (youths). In most cases the frequent visitors are the youths in primary ,secondary and tertiary levels. It will be very simple to target them because in the their institutions they are doing physical exercise and games. (Kasemsap, 2017) RATIONAL MARKET CHARACTERISTICS Games garment and physical exercise kits have become a popular business to enter because everyone needs a healthy life through keeping the body fit. There exist so many companies like best fit company that offers general exercises. In UK the fashion industry is the backbone to its economy. According to economic guide report fashion industry contributed 28 billion Euros to the gross domestic product and about 879,990 jobs. Pink Boutique one of the fastest growing fashion brands reported that it takes designs inspiring from source including social media.
(Zopshop,nd) New Look have to consider the following firms as they are forming a big threat to their competition and market share. The likes of Bricks and Clicks which is evolving very fast. (from 30 years and below) One of the reasons a flanking attack strategy would be appropriate and successful for New Look is because currently there is limited focus on games and physical kits in the market. New Looks considered the best market segment so as they can reach new customers. The firm bases its operation in the online platform; delivery takes 1-2 days after placing an order. The firm also organizes events with its esteemed customers as a way of keeping in touch with them. It’s a global fashion market, when a company goes global its operating in different part of the world.
Sales items would be included in the £25 total, but no discount would be received on sales items. In addition, those registered on the loyalty scheme will have early access to all sale items. Objective To attract a substantial segment of the market and increase sales of quality-clothing items and compete with other firms selling games and physical exercises kits To increase the quality of News Look clothing and meet the demands of customers that is not currently by existing brands. Attract new customers from competitors’ children swear and games kits institutions and ensuring the increase of repeat purchases and brand loyalty. Rationale Market Characteristics Games garment and physical exercise kits have become a popular business to enter because everyone need a healthy life through keeping the body fit.
87% of people said clothing made in the UK would interest them (gordon, 2017). New Looks have a unique products that its easier to reach more customers. The children swear market is a profitable one which is expected to be worth around £6. 9 billion (Hardy, 2016). However, However, when the economic climate is how it is now, many customers, whether buying for themselves or their children look to trade down which allows stores such as Matalan to be more successful due to its low pricing strategy. At the end of 2017 they had 6,553 stores and its products are supermarket, hypermarket and superstore. If Matalan were to take this approach, their competitors would change from supermarkets as the increase in quality of their clothing, would inevitably increase their prices.
Therefore, this strategy would not have much effect on Tesco. However, due to the increase in quality and price, Matalan would then compete more easily with the likes of Next and TK Maxx. Next manufacture their products abroad and has been found to be taking advantage of those less fortunate through the use of child labour (Hardy, 2016). Next is one of the UK’s most popular brands and they have a firm loyalty scheme in place through their Next Directory. Being a member of the loyalty scheme gives customers access to their VIP sale (Next, nd), which is a real incentive for Next’s customers, as their sales are so popular they often sell out of the popular items before general sale is released (Baker, 2014).
Firm’s Characteristics The main objective of New Look is to provide quality products for men, women and children. Their reputation seems to concentrate on that rather than the games and physical kits. News Look sells young generation clothes especially youths. It offers exclusive offers, birthday vouchers as well as the chance to win £1,000 (New, ndd). The loyalty scheme is integrated into their app allowing customers to access their rewards more easily. As they already have the infrastructure in place, they could utilise it to create this loyalty scheme in addition, specifically for their children’s clothing. This would result in News Look having “stronger competencies” (Gordon, 2015, p. 353) than their competitors and would keep the operating cost down than creating new technology from scratch.
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