Customer Target of ANAC Color Store - Case Study Example

ANAC Color Store ANAC Color Store is a high quality fashioned store that deals with quality clothing. This and the fact that the fashion retailer sells his product cheaply are one of the biggest factors, which have seen the fashion retailer rise to the top of the industry in Australia. The management of ANA C believes that customers are the boss. This has enormously helped in selling the fashion retailer’s product and name in the highly competitive market. The fashion retailer plans to launch a new store in Toowoomba in January 2011. For this reason, the fashion retailer is carrying out a market research that will involve segmenting the market in order to identify its customer target. In addition, marketing research will also help the store in developing a statistical analysis, which will be aimed at showing exactly how large the market size will be. This will help the marketing team to know how to market the product in order to achieve maximum sales (Hines, 2001, p.27). Toowoomba is considered the second largest city in the inland of Australia. The city located other of Queensland has almost 128,000 residents. One of the most influential things that the fashion retailer will look at while setting up shop is the general position of the store. The fashion retailer will set up shop at the heart of the city this being the city center. In order to identify the market base fully, the fashion retailer will focus mostly on carrying out a market segmentation, which will be focused mostly on young ladies. This is because most of the products the fashion retailer sells, this being clothes shoes and accessories are specific for young women. As for now, the fashion retailer is faced with the challenge of identifying the exact size of the market in Toowoomba. However, as for market segmentation the fashion retailer is focused at selling its high products to young ladies (Muran 2007, p.12). Market Segmentation In order to carry out complete market segmentation, the fashion retailer will look at some few factors such as the weather, the city's economy, the growth rate of the city and the culture of the city. This factors put together will help in putting up complete market segmentation. First, the fashion retailer will consider the weather. For a fashion retailer, dealing with clothing, weather is an extremely influential and critical thing. The identification weather will enable the retailers position to know what clothes or shoes to sell and at what period. Toowoomba experiences four seasons yearly. In summer, the city can experience temperatures up to a high of twenty-seven degrees, while, at winter, the city experiences temperatures as low as sixteen degrees. This naturally means that the city is a warm place both in the summer and winter times. With this in mind, the fashion retailer will know exactly how to coordinate the company's market (Hines, 2001, p.29). The other most critical factor to look at while carrying out market segmentation for ANAC is the city's economy. The city gets most of its revenue through retail trading followed by housing and food production. This means that the fashion retailer is going into a highly saturated market. Considering the fact, that retail trading produced a general GDP of almost 18.9% alone in the last general year. This was by far the highest income produced by the sector since 2004. On the bright side, by looking at this one can conclude that there is a ready market for the product that the fashion retailer is selling. The economic aspect of a city while setting up or carrying out market segmentation is beneficial. This is because it provides the fashion retailer with a conclusive data of whether the business is viable or not. By looking at the economic background of Toowoomba, one can concluded that the business would be viable although it will face stiff competition (Sheridan et al 2006, p.29). The other most valuable thing that one will look at while carrying out market segmentation is the growth rate of the city. Toowoomba is consider to be one of the fastest growing cities in Australia with a recorded of 9.6 growth rate reported in the end of 2010 financial year. This means that with such a growth rate the fashion retailer has a high chance that it will last for a long time. This also means that the market will never be saturated in that customers will always be available. The reason why growth rate is crucial is because; one can uses the growth rate to tell the future of the fashion retailer. With the class of product that the fashion retailer is offering, one can use the growth rate to tell whether the fashion retailer is going to succeed in the market. For instance, Toowoomba has recorded a 6.7% increase in women, which means that the fashion retailer ANAC has a ready ever-growing market to explore (Hines, 2001, p.33). The other critical factor to consider while considering the market segmentation is the culture of the place. Toowoomba boosts of a rich heritage culture that comes from love of flowers. Every September, hundreds of individuals from the whole of Australia arrive at Toowoomba to experience the city's love of flowers. The carnival of flowers as it is called by the residents sees the city gain a high income. The facts that flowers are mostly loved by young ladies means that, during this period, a lot of income would be made by the fashion retailer. Through market segmentation, the fashion retailer will be better prepared for the market its product. The fashion retailer can even capitalize on the cultural event to maximize the profit by making sure that there is ready stock for the event to take place. This means that culture is one supremely influential and critical issue while dealing with the company’s market segmentation (Casabona 12). In order for the fashion retailer to achieve success, the marketing plan must be highly resilient. The marketing plan will contain detailed data that will see the fashion retailer achieve success in the industry. For starters, one must acknowledge that fact that the market that the fashion retailer is planning in moving into is highly competitive. However, the fashion retailer strongest edge comes from the fact that the fashion retailer is selling quality material at cheap prices. This means that, unlike other retail stores dealing with clothes, the fashion retailer is putting the needs of the clients ahead of its self. In order to achieve a successful marketing plan, the fashion retailer plans to use the 4P’s of marketing. This is the fashion retailer plans on promoting himself by capitalizing on product, price, place and promotion. This means that the fashion retailer is going to use this for factors to get an edge in the highly competitive market (Muran, 2007, p.12). 4Ps By creating what is known as a successful marketing mix composed of the 4P’s, the market will be in a better position to market itself. The first factor in the marketing plan will be the product. The fashion retailer plans to offer high quality products. Promotion Putting in mind that the company market target is young ladies the company will offer high quality shoes dress and accessories. The company plans to use its high quality products to attract its clientele. The product to be displayed and sold in the store will be used to identify the store. The store plans to use these quality products to identify its self with the clients. The products that will be offered by the market will be aimed at gearing the mind of the customers into buying from the company. While planning the marketing strategy, the product will be the most valuable thing to mention. This is because by promoting the product and mentioning that it is of quality the company will have created a strong marketing base (Hines, 2001, p.37). Product This will be used to create a strong marketing base for the product line also produces a high-end consumer line. This means that, with quality products that will be moving first in the market, the fashion retailer will be able to create more cycles, which means that, more clothes will be sold. High-end consumer line is used to promote more sales of the product in order to maximize the profit of a product. This also means that the with a high end line used to market the product, time between the product consumption and the repeat of the same chain cycle to recur will have been reduced significantly. This also means that the product will be on a fast trend, thus if all is put together, the market will have achieved to reduce the time space between production and consumption. The fashion retailer will be viewing the possibility of using the product plus quality and high-end consumer line to maximize its profit (Muran 2007, p.17). Price However, while doing all this, the fashion retailer will put in mind the consumers benefit, for the consumer to benefit and achieve a high end line of the product pricing must be right. High prices mean that time in between production and consumption will be spread meaningless profit for the company. Cheap prices mean that customers will be regularly buying the products since by buying the product they are getting value for their money. The fashion retailer is going to uses the factor of cheap, quality products to sell more. These will also attract goodwill from the public putting in Mind that a percentage of the profit made by the company goes straight to charity organizations like UNICEF. Prices are of extremely valuable uses while it comes to selling of products such as shoes and clothes. Especially at this time when the world is facing hard times with financial crisis, customers want to feel protected in that, by placing high prices on things like clothes, it will be possible for a company to gain customer loyalty (Casabona 12). The fashion retailer is planning to use this to promote itself in the market. The fact that the goods being sold are cheap and of high quality, it will see the market grows into becoming a booming business. Clothes are mostly associated with trend, which means that, if the fashion retailer sells his product in lower prices than the other retailers do, it is guaranteed that customers will opt on buying from the retailer since they fill protected. The company is keen at ensuring the customers remain the first priority. This means that by making the customer the first priority the company is guaranteed to achieve global success at a large-scale magnitude. When the price is cheaper, consumers will purchase it faster, and this means that the fashion retailer will be able to sell the products in bulks and using a consistent way (Sheridan et al 2006, p.33). Placing Placing of the store is a tremendously beneficial move when it comes to marketing the product. Customers associated trends with how and where the shop has been placed. The store has to be in a visible place where most consumers will be able to access easily. In this case, the store will be placed in the heart of Toowoomba. The central business will be the best location to place it, since many target consumers will be able to access it and access it easily. As much as it might be a cheap and high quality store, the store has to be placed in such a manner that it looks presentable. This is aimed at making the consumer feel prestigious. Promotion of the store this being advertising will take two forms. First, considering the consumer target of the company, the company will use Facebook as one of the most powerful tools in marketing. This is because the social media will achieve more attention than any other form of communication. Conclusive research shows that young women who are the main target for the business use most of their time almost six hours on the social site. This means that by using Facebook to advertise the store stands a high chance of getting a high positive reply than any other medium (Casabona 12). The company will also use the USQ’S orientation day to promote its business through providing t-shirts that will be used as sponsorship of the day. USQ is considered an extremely prestigious event in the city, and so the company aims that by sponsoring the event by use of t-shits, it will achieve a vast amount of market recognition (Muran 2007, p.22). SWOT analysis Strength Weakness The biggest strength he company has remains to be the quality of products and the price they sell the products at. The store also sources most of its strength from the fact that it donates pert of the many o charity which simply means that it cares about the community. The store also holds the biggest strength with a 7-day guarantee policy that it has. The biggest weakness is the fact that the company is moving into an already saturated market. This means that the store will face a lot of competition. Opportunity Threat The biggest opportunity is the fact that the company brings diversity and has a chance to expand into a bigger store. The biggest threat the company face will come from the already existing companies that have dominated the market. References Casabona, Liza. Retailer Forever 21 Facing A Slew of Design Lawsuits." WWD: Women's Wear Daily 194.15 (23 July 2007): 12-12. Textile Technology Index. EBSCO. Mary Couts Burnett Library, Fort Worth, Texas. 13 Nov. 2008  Hines, T. 2001. From Analogue to Digital Supply Chains: Implications for Fashion Marketing: In Fashion Marketing: Contemporary Issues. Eds. T. Hines and M. Bruce. Oxford: Butterworth Heinemann, 26-47 Muran, Lisa. Profile of H&M: A Pioneer of Fast Fashion. Textile Outlook International (July 2007): 11-36. Textile Technology Index. EBSCO. Mary Couts Burnett Library, Fort Worth, Texas. 13 Nov. 2008 Sheridan, M. Christopher M. and Karinna, N. (2006). "Fast fashion requires fast marketing: The role of category management in fast fashion positioning." Journal of Fashion Marketing and Management 10 (2006) . Read More