Essays on Collection of Style Australia Marketing Case Study

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The paper "Collection of Style Australia Marketing" is a good example of a marketing case study.   Collection of Style (COS) is ready to wear label which was created in 2007. The company is a sister brand to H& M which is ready to wear multinational. The company has over 40 stores worldwide and is well known for its minimalist style. This is through basing themselves as crisp and fresh style with the aim of attaining a natural look. The company has been credited for creating brands that last beyond the season.

The company has its specialisation in ready to wear for men, women, and children (COS). Despite the wide array of products that COS offers, the company does not have a luxury watch category. The market plan helps a lot in coming up with a marketing strategy for a new product. This marketing plan involves the introduction of a watch category in COS product line. The watch category will consist of different branded watches for various market segments. Situation Analysis COS’ s current and anticipated organizational resources COS have adequate resources have been in the industry for a long time.

The company has already established an extensive distribution channel across Australia and also worldwide. Being affiliated with H& M, COS has access to expertise. The company has well trained and experienced staff. The directors of the fashion house, Karin Gustaffson and Martin Anderson helps in choosing the cuts, lines and shapes. These resources give the company the capability to extend its product line without compromising the quality of the products which are already in the production (COS). Through including watches into their product lines COS will have expanded their market and increased their sources of revenue.

The watch category will include men’ s watches, women watches, luxury brands and sports watches (IBISWorld). This will make it possible to cater to all their customer needs. Competitive environment PORTER five forces The threat of new entrants There is a high threat of new entrants in the market. The investment in the watch market does not require a lot of capital and a lot of players have already entered into it. Most of the apparel companies have been offering watches as one of their product lines.

An example is Macy’ s and Gucci. The increased number of manufacturing contractors has made it possible for new entrants to use reduced capital in venturing. Despite this, the cost of advertising and creating distribution channels is high (Porter). Bargaining power of the suppliers The suppliers have low bargaining power. This is due to the fact that there are a lot of suppliers with little or no differentiation (Grundy, p.220-3). Most suppliers for the watches are little differentiated from each other. With the rise of globalisation, outsourcing has become one of the most favoured methods in countries such as China.

The manufacturers based on low-cost countries face a lot of competition. Textiles, leather and watch accessories are the main commodity that will be used by COS. Bargaining powers of the buyers Buyers in the industry have high bargaining powers. This is due to the abundance of retailers located in the industry. The switching cost is low in the industry based on brand preferences and prices. Due to high powers from the buyers, retailers are forced to offer what the buyers demand (Grundy, p.221).

This makes it vital to make sure that the products are updated based on the current trends in the industry. Retailers differentiate themselves through prices, quality and style of the watches being offered. Also, there is a huge amount of watch imitation available in the market which limits differentiation.


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